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HomeMy WebLinkAbout1991-069pLLw er o ORDINANCE NO AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND ALLAN PLUMMER AND ASSOCIATES, INC RELATING TO ENGINEERING SERVICES FOR THE DESIGN OF PECAN CREEK WASTEWATER TREATMENT PLANT, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the Mayor is authorized to execute an agree- ment between the City of Denton and Allan Plummer and Associates, Inc relating to Engineering Services for the design of Pecan Creek Wastewater Treatment Plant under the terms and conditions contained within said Agreement, a copy of which is attached hereto and made a part hereof SECTION II That the City Council hereby authorizes the ex- penditure of funds not to exceed Six Hundred Thousand Nine Hundred Ten and No/100 Dollars ($600,910 00) SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of , 1991 ATTEST: JENNIFER WALTERS, CITY SECRETARY - BY kiL 4 4 'In._079 APPR ED AS TO LEGAL FORM DEBRA A DRAYOVITCH, CITY ATTORNEY BY ENGINEERING SERVICES AGREEMENT FOR THE DESIGN OF PECAN CREEK WASTEWATER TREATMENT PLANT THIS AGREEMENT is made and entered into as of the 2day of 1991 by and between the City of Denton, with its principal office at 215 Ea McKinney Street, Denton, Denton County, Texas 76201, ("OWNER") and Alan Plummer and Associates, Inc , with its principal office at 841 West Mitchell Street, Arlington, Tarrant County, Texas 76013, hereinafter called the ("ENGINEER") acting herein, by and through its representative, duly authorized so to act for and in behalf of said ENGINEER WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows ARTICLE I EMPLOYMENT OF ENGINEER The OWNER agrees to employ the ENGINEER, and the ENGINEER agrees to perform professional engineering services in connection with the Project as stated in the sections to follow, and for having rendered such services, the OWNER agrees to pay to the ENGINEER compensation as stated in the section to follow The Project shall include design of wastewater treatment facilities at the Pecan Creek Wastewater Treatment Plant (WWTP) The ENGINEER agrees to exercise the same degree of care, skill and diligence in the performance of these services as is ordinarily provided by a professional consultant under similar circumstances and ENGINEER shall, at no cost to OWNER, "reperform" services which fail to satisfy the foregoing standard of performance Page 1 of 23 ARTICLE II PERIOD OF SERVICE This Agreement shall become effective upon execution by the OWNER and the ENGINEER and shall remain in force for the period which may reasonably be required for the design, aware of contract, and construction of the Project, including Additional Services and any required extensions approved by the OWNER ARTICLE III BASIC ENGINEERING SERVICES The ENGINEER shall render the following professional services for development of the PROJECT Upon execution of this Agreement the ENGINEER shall A Consult with OWNER (1) to review the scope of work, (2) to verify the OWNER's requirements for the Project, and (3) to review available data B Advise OWNER as to the necessity of OWNER's providing or obtaining data or services from others, and assist the OWNER in connection with any such services C Prepare a flow chart showing key project milestones The flow chart will be updated monthly and sent to the OWNER The ENGINEER understands that the OWNER desires the final construction phase of the project (facilities required to meet the new wastewater discharge permit requirements at a flow rate of 12 or 13 MGD) to be in operation within 30 months of issuance of the new wastewater discharge permit, however, the OWNER acknowledges that the ENGINEER is only one of the many parties involved in the project and that the ENGINEER cannot assure completion of the project by a specific date Page 2 of 23 D All formal workshops and quality control reviews will be held in the ENGINEER's office E Detailed Design Phase The ENGINEER shall provide professional services in this phase as follows I Prepare detailed plans, specifications, contract documents, designs, and layouts of improvements to be constructed 2 Provide the OWNER with advice, when requested, with respect to the making of all subsurface investigations, including borings, test pits, soil resistivity surveys, and other subsurface explorations, however, the making of such investigations and the interpretations of data and reports by special consultants are not a part of the services to be rendered by the ENGINEER, and the cost therefore shall be paid by the OWNER The ENGINEER shall monitor and review the work of testing laboratories and inspection bureaus required for the testing or inspection of materials, witnessed tests, factory testing, etc , for the Project, but the cost of such laboratory tests or inspection shall be paid by the OWNER 3 Furnish the OWNER, when requested, the engineering data necessary for applications for routine permits required by local, state and federal authorities Preparation of detailed applications and supporting documents for government grants planning advances, or discharge permit renewals will be provided as Additional Services, if required Page 3 of 23 4 Submit plans, specifications, and contract documents to the applicable federal and state agency(s) for approval, where required 5 Furnish such information necessary to utility companies whose facilities may be affected or services may be required for the Project 6 Prepare revised opinion of probable construction cost, and bidder's proposal forms (project quantities) of the improvements to be constructed 7 Conduct Quality Control (QC) workshops utilizing senior staff members with experience acceptable to the OWNER QC workshops are to be held at approximately 30, 60 and 95 percent complete milestones of Detailed Design 8 Furnish the OWNER three (3) sets of copies of plans, specifications, and bid proposals marked "Preliminary" for approval by the OWNER Upon final approval by the OWNER, the ENGINEER will provide the OWNER ten (10) sets of copies of "Final" plans As directed by the OWNER, additional sets of plans, specifications and bid documents as are necessary in the receipt of bids for construction and as are required in the execution of the project, shall be furnished by the ENGINEER and shall be paid for by the OWNER at actual cost of reproduction 9 Detailed Design will consist of the following items as shown in the Preliminary Design Report and approved by the OWNER a Design of equalization basin improvements including return pumping and mixing b Design of chlorination/dechlorination facilities Page 4 of 23 c Design of a sludge belt press installation including sludge holding and pumping facilities d Design of a centralized grit removal and flow splitting facility including required piping e Design of improvements to Aeration Basins 1 5 (north plant) f Design of blower building improvements and air piping 9 Design of a primary clarifier and final clarifier for the north plant h Design of a final clarifier for the south plant i Design of one continuous backwash filter facility Design of hydraulic improvements for 15 MGD k Design of waste activated sludge handling facilities for the north plant 1 Design of scum handling and processing equipment The project will be divided into two construction phases items required for 12 (or 13) MGD maximum monthly design flow and items required for 15 MGD maximum monthly design flow The OWNER shall notify the ENGINEER of any requested modifications of items to be included in each phase no later than ninety (90) days prior to the beginning of advertisement of the project for bids One set of prepurchase (or preselection) documents for equipment will be developed, advertised, distributed, and recommendation for award made as required to accommodate the construction schedule or equipment selection Page 5 of 23 10 In addition to Detailed Design of Items a through 1 listed above, Preliminary Design will be developed for the items listed below as Additional Services The Preliminary Designs will be presented as Technical Memorandums and incorporated into the Preliminary Design Report M Electrical distribution and alternate power supply at the Wastewater Treatment Plant n Total plant instrumentation and control o Renovation and expansion of the present Maintenance Building p Renovation of the South Positive Displacement Blower Building q Renovation of the South Plant cyclone degritter building F Prior to proceeding with Detailed Design of any of Items m through q listed above, the ENGINEER will obtain authorization in writing by the OWNER Construction Phase Services Prior to completion of the detailed phase and approval of "Final" plans and specifications by the OWNER, a detailed scope of work for Construction Phase Services will be furnished to the OWNER After written authorization from the OWNER, the ENGINEER will proceed with the performance of services in this phase as follows 1 Assist the OWNER in securing bids, issuing notice to bidders and notifying construction news publications The notice to bidders Page 6 of 23 will be furnished to the OWNER for publication in the local news media The cost for publications shall be paid by the OWNER 2 Assist the OWNER in the opening, tabulation, and analysis of the bids received and furnish recommendations on the award of contracts or the appropriate actions to be taken by the OWNER 3 Assist in the preparation of formal contract documents for construction contracts 4 Assist in conducting pre- construction conference(s) with the Contractor(s), review construction schedules prepared by the Contractor(s), and prepare a proposed estimate of monthly cost requirements of the project 5 Make two visits each month of the site (as distinguished from the continuous services of a Resident Project Representative) to observe the progress and the quality of work and to attempt to determine in general if the work is proceeding in accordance with the contract documents In performing these services, the ENGINEER will endeavor to protect the OWNER against defects and deficiencies in the work of Contractors The ENGINEER will report any observed defects of deficiencies immediately to the OWNER However, it is understood that the ENGINEER does not guarantee the Contractor's performance nor is he responsible for supervision of the Contractor's operation and employees ENGINEER shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by Contractor or the safety precautions and programs incident to the work of the Contractor 6 Consult and advise with the OWNER during construction, make recommendations to the OWNER regarding materials and workmanship, and prepare change orders with OWNER's approval Page 7 of 23 7 Review samples, catalog data, schedules, shop drawings, laboratory, shop and mill tests of material and equipment and other data pursuant to the General Conditions of the Construction Contract 8 Assist the OWNER in arranging for testing of materials and laboratory control during construction to be conducted at the OWNER's expense 9 Interpret the intent of the plans and specifications for the OWNER and Contractor(s) Investigations, analyses, and studies requested by the Contractor(s) and approved by the OWNER, for substitutions of equipment and/or materials or deviations from the plans and specifications will be considered an additional service NOTE Such studies conducted by the ENGINEER, if determined to be inadequate, due to incompleteness of ENGINEER prepared plans and specifications, will be redone without additional compensation Any defective designs, plans of specifications furnished by the ENGINEER shall be promptly corrected by the ENGINEER at no cost to the OWNER 10 Review and comment on monthly and final estimates for payment to Contractor(s), pursuant to the General Conditions of the Construction Contract 11 Conduct, in company with the OWNER's representative, a final inspection of the Project for conformance with the design concept of the Project and general compliance with the contract documents, and review and comment on the certificate of completion and the recommendation for final payment to the Contractor(s) 12 Revise the construction drawings in accordance with the information furnished by construction Contractor(s) reflecting changes in the Project made during construction One set of Page 8 of 23 reproducible prints of "Record Drawings" shall be provided by the ENGINEER to the OWNER 13 The ENGINEER will contact the OWNER's operating staff ten (10) months after the date of final acceptance to determine warranty items to be addressed by the Contractor ARTICLE IV ADDITIONAL SERVICES Additional Services to be performed by the ENGINEER, if authorized by the OWNER, which are not included in the above described Basic Services, are described as follows A Field Surveying required for the preparation of designs, drawings and plans including topographic survey of the plant site B Field layouts or the furnishing of construction line and grade surveys C Investigations involving detailed consideration of operation, maintenance and overhead expenses, and the preparation of rate schedules, earnings and expense statements, feasibility studies, appraisals, evaluations, assessment schedules, and material audits or inventories required for certification of force account construction performed by the OWNER D Making necessary property, boundary and right-of-way surveys, preparation of easement and deed descriptions, including title search and examination of deed records Providing a land agent or public relations specialist to assist the OWNER in obtaining easements Page 9 of 23 E Preparing applications and supporting documents for government grants, loans, or planning advances and providing data for detailed applications F Providing shop, mill, field or laboratory inspection of materials and equipment G Preparing any required Operation and Maintenance Manuals or conducting operator training and preparing Environmental Impact Assessments or Statements H Appearing before regulatory agencies or courts as an expert witness in any litigation with third parties or condemnation proceedings arising from the development or construction of the Project, including the preparation of engineering data and reports for assistance to the OWNER I Furnishing the services of a Resident Project Representative to act as the OWNER's on-site representative during the construction phase, if requested by the OWNER If the ENGINEER is requested to visit the site more frequently than two (2) visits each month as set forth in Section III, Paragraph F 5, the requested visits shall be considered as an Additional Service and the ENGINEER shall be entitled to additional compensation If OWNER desired the service of a resident project engineer, a separate agreement shall be executed by the parties J Assisting the OWNER in claims disputes with Contractor(s) K Performing investigations, studies and analyses of substitutions of equipment and/or materials or deviations from the plans and specifications L Assisting OWNER or Contractor in the defense or prosecution of litigation in connection with or in addition to those services Page 10 of 23 contemplated by this Agreement Such services, if any, shall be furnished by ENGINEER on a fee basis negotiated by the respective parties outside of and in addition to this Agreement M Sampling, testing or analysis beyond that specifically included in Basic Services N Preparing copies of Computer Aided Drafting (CAD) electronic data bases, drawings, or files for the OWNER's use in a future CAD system 0 Providing video camera with video tapes of construction phase to be used as a historical record and for operator training P Attendance at additional meetings beyond those specifically noted in Basic Services required by TWC, other regulatory agencies or the OWNER Q Preliminary and/or Detailed Design of support facilities and buildings, additional sludge digestion facilities, and ultimate sludge disposal facilities (sludge only landfill or additional sludge infection acreage and equipment) recommended in the 1990 Wastewater Treatment Plant Master Plan R Preliminary Design of Items m through q listed in Article III, Paragraph E 10 S Any additional services required by the OWNER not included in Basic Services ARTICLE V RESPONSIBILITIES Of OWNER The OWNER shall do the following in a timely manner so as not to delay the services of the ENGINEER Page 11 of 23 A Designate in writing a person to act as the OWNER's representative with respect to the services to be rendered under this Agreement Such person shall have contract authority to transmit instructions, receive information, interpret and define the OWNER's policies and decisions with respect to the ENGINEER's services for the PROJECT B Provide all criteria and full information as to the OWNER's requirements for the Project, including design objectives and constraints, space, capacity and performance requirements, flexibility and expandability, and any budgetary limitations, and furnish copies of all design and construction standards which the OWNER will require to be included in the Drawings and Specifications C Assist the ENGINEER by placing at the ENGINEER's disposal all available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project D Arrange for access to and make all provisions for the ENGINEER to enter upon public and private property as required for the ENGINEER to perform services under this Agreement E Examine all studies, reports, sketches, drawings, specifications, proposals and other documents presented by the ENGINEER, obtain advice of an attorney, insurance counselor and other consultants as the OWNER deems appropriate for such examination and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of the ENGINEER F Furnish approvals and permits from all governmental authorities having jurisdiction over the Project and such approvals and consents from others as may be necessary for completion of the Project G The OWNER shall make or arrange to have made all subsurface investigations, including but not limited to borings, test pits, soil Page 12 of 23 resistivity surveys, and other subsurface explorations The OWNER shall also make or arrange to have made the interpretations of data and reports resulting from such investigations All costs associated with such investigations shall be paid by the OWNER H The OWNER shall make or arrange to have made all testing sampling required at the wastewater treatment plant or in the collection system including flows, BOD and suspended solids, concentrations, aeration basin solids levels, and other pertinent information relevant to operation of the treatment plan All costs associated with such testing and sampling shall be paid by the OWNER I Provide such accounting, independent cost estimating and insurance counseling services as may be required for the Project, such legal services as the OWNER may require or the ENGINEER may reasonably request with regard to legal issues pertaining to the Project, including any that may be raised by the CONTRACTOR(s) J The OWNER shall determine, prior to receipt of construction bid, if the ENGINEER is to furnish Resident Project Representative service so the Bidders can be informed K If OWNER designates a person to represent the OWNER at the site who is not the ENGINEER or ENGINEER's agent or employee, the duties, responsibilities and limitations of authority of such other person and the effect thereof on the duties and responsibilities of the ENGINEER will be set forth in an agreement that is to be identified, attached to this Agreement, and a copy of which shall be furnished ENGINEER before such services begin L Attend the pre-bid conference, bid opening, pre-construction conferences, construction progress and other fob related meetings and substantial completion inspections and final payment inspections Page 13 of 23 M Give prompt written notice to the ENGINEER whenever the OWNER observes or otherwise becomes aware of any development that affects the scope or timing of the ENGINEER"s services, or any defect or nonconformance of the work of any contractor N furnish, or direct the ENGINEER to provide, Additional Services as stipulated in Article IV of this Agreement or other services as required 0 Provided transportation such as airline fare, automobile rental or subsistence required for the OWNER's personnel to attend project meetings or inspection trips P Bear all costs incident to compliance with the requirements of this Article V ARTICLE VI COMPENSATION A COMPENSATION TERMS 1 "Salary Cost" is defined as the cost of salary (payroll) for engineers, draftsmen, stenographers, surveyors, clerks, laborers, etc , for time directly chargeable to the Project, plus Social Security contributions, unemployment compensation, insurance retirement benefits, medical and insurance benefits, disability payments, sick leave, vacation and holiday pay applicable thereto (Salary cost is equal to 1 35 times salary ) 2 "Subcontract Expense" is defined as the expense that is incurred by the ENGINEER in employment of others in outside firms for services in the nature of foundation borings, testing, surveying, and similar services Page 14 of 23 3 "Direct Non-Labor Expense" is defined as that expense for any assignment incurred by the ENGINEER for supplies, transportation and equipment, travel, communications, subsistence and lodging away from home and similar incidentals in connection with that assignment B BASIC SERVICES For and in consideration of Detailed Design of the Basic Services (Article III, Paragraph E) to be rendered by the ENGINEER (Items a through 1 listed in Article III, Paragraph E 9), the OWNER agrees to pay based on the Schedule of Services shown in Exhibit A, with the total fee not to exceed $558,960 For and in consideration of Preliminary Design of Items m through q listed in Article III, Paragraph E 10, the OWNER agrees to pay based on the schedule of charges shown in Exhibit A The total fee for Preliminary Design of these items shall not exceed $41,950 Detailed Design shall not proceed with any of Items m through q without prior written authorization by the OWNER Prior to proceeding beyond the Detailed Design, the ENGINEER shall submit a maximum fee for Construction Phase Services and Resident Representation During Construction for approval of the OWNER Partial payments to the ENGINEER will be made on the basis of monthly statements rendered to and approved by the OWNER, however, under no circumstances shall any monthly statement for services exceed the value of work performed at the time a statement is rendered The OWNER may withhold the final 5 percent of the contract amount until completion of the project Nothing contained in this article shall require the City to pay for any work which is unsatisfactory as reasonably determined by the Executive Director of Utilities or which is not submitted in compliance with the terms of this Contract The City shall not be required to make any Page 15 of 23 payments to the ENGINEER when the ENGINEER is in default under this Contract It is specifically understood and agreed that the ENGINEER shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense or reimbursement above the maximum fee as stated without having first obtained written authorization from the OWNER ENGINEER shall not proceed to perform the services listed in Construction Phase Services, without obtaining prior written authorization from OWNER C ADDITIONAL SERVICES 1 For Resident Representation During Construction and Construction Layout For the resident representation during construction and construction layout (Article IV I), the ENGINEER shall be paid based on the Schedule of Charges in Exhibit A Payments for resident project representation and construction layout shall be due and payable upon submission of statements by the ENGINEER Statements shall not be submitted more frequently than monthly For additional services in Article IV, the ENGINEER shall be paid based on the Schedule of Charges shown in Exhibit A Payments for additional services shall be due and payable upon submission by the ENGINEER Statements shall not be submitted more frequently than monthly D PAYMENT If the OWNER fails to make payments due the ENGINEER for services and expenses within sixty (60) days after receipt of the ENGINEER's statement therefore, the amounts due the ENGINEER will be increased at the rate of 1 percent (1%) per month from said sixtieth (60th) day In addition, the Page 16 of 23 ENGINEER may, after giving seven (7) days' written notice to the OWNER, suspend services under this Agreement until the ENGINEER has been paid in full all amounts due for services, expenses and charges Any applicable new taxes imposed upon services, expenses, and charges by any governmental body after the execution of this contract will be added as necessary to the ENGINEER's compensation ARTICLE VII TIME OF COMPLETION The ENGINEER will commence work on the Project immediately upon execution of this contract The ENGINEER shall complete the work in accordance with the following schedule ITEM Preliminary Design of items listed in Article III, Paragraph E 10 SUBMIT FOR REVIEW BY OWNER 150 days after receipt of authorization to proceed Detailed Design of items listed in Article III, Paragraph E 9 270 days after receipt of authorization to proceed ARTICLE VIII OPINION OF PROBABLE CONSTRUCTION COST The ENGINEER will furnish an opinion of probable construction cost of the work, but does not guarantee the accuracy of such estimates Opinions of probable construction cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance cost prepared by the ENGINEER hereunder will be made on the basis of the ENGINEER's experience and qualifications and represent the ENGINEER's best judgement as an experienced and qualified design professional It is recognized, however, that the ENGINEER does not have control over the cost of labor, material, equipment or services furnished by others or Page 17 of 23 over market conditions or contractors' methods of determining their prices, and that any utilitarian evaluation of any facility to be constructed or work to be performed on the basis of the Report must be necessity be speculative until completion of its detailed design Accordingly, the ENGINEER does not guarantee that proposals, bids or actual costs will not vary from opinions, evaluations or studies submitted by the ENGINEER to the OWNER hereunder ARTICLE IX REVISION TO PLANS AND SPECIFICATIONS The OWNER reserves the right to direct substantial revision of the Plans and Specifications after approval by the OWNER as OWNER may deem necessary, but in such event the OWNER shall pay to the ENGINEER dust and equitable compensation for services rendered in making such revisions ARTICLE X OBSERVATION AND REVIEW OF THE WORK The ENGINEER will endeavor to protect the OWNER against defects and deficiencies in the work of contractors, by observation of the work as it progresses, by interpretation of the plans, specifications and other contract documents to and with the contractors, by the disapproval of defective work as may be observed and the issuance of stop-orders from the OWNER with respect to defective material and workmanship where they are observed, and the ENGINEER will exercise due diligence to assist the OWNER in requiring that the work be done in accordance with plans and specifications, but the CONTRACTOR will remain independent contractor with the OWNER, and the ENGINEER does not guarantee the performance of such construction contracts As set forth in Article III F 5 and Article IV I, the ENGINEER shall not be responsible for the means, methods, techniques, sequences, or procedures of construction selected by the CONTRACTOR, or the safety precautions and programs incident to the work of the CONTRACTOR Page 18 of 23 ARTICLE XI OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the ENGINEER (and ENGINEER's independent associates and consultants) pursuant to this Agreement are instruments of service and ENGINEER shall retain an ownership and property interest herein The OWNER may make and retain copies for information and reference, however, such documents are not intended or represented to be suitable for reuse by the OWNER or others Any reuse by the OWNER without written verification or adaptation by the ENGINEER will be at the OWNER's sole risk and without liability or legal exposure to the ENGINEER, or to the ENGINEER's independent associates of consultants, and the OWNER shall indemnify and hold harmless the ENGINEER and ENGINEER's independent associates and consultants from all claims, damages, losses and expenses, including attorneys' fees arising out of or resulting therefrom Any such verification or adaptation will entitle the ENGINEER to further compensation at rates to be agreed upon by the OWNER and the ENGINEER ARTICLE XII INDEMNITY AGREEMENT The ENGINEER shall indemnify and save harmless the OWNER and its officers, agents, and employees from the liability of the OWNER on account of any injuries or damages received or sustained by any person or persons or property, including court costs and reasonable attorneys fees incurred by the OWNER, proximately caused by the negligent acts or omissions of the ENGINEER or its officers, agents, or employees in the execution, operation, or performance, or performance of this Agreement In the event of liability from suits, actions, or claims arising out of or occasioned by the negligence of both the ENGINEER and the OWNER, their agents or employees, in the performance of this Agreement, each party shall contribute toward the satisfaction of the liability its proportionate share, which share shall be equal to the percentage of negligence attributable to the party Page 19 of 23 ARTICLE XIII INSURANCE During the performance of the Services under this Agreement, Engineer shall maintain the following insurance A Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less than $100,000 for each occurrence and not less than $100,000 in the aggregate B Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident and with property damage limits for not less than $100,000 for each accident C Worker's Compensation Insurance in accordance with statutory requirements and Employers' Liability Insurance with limits of not less than $100,000 for each accident D Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate E Umbrella Insurance providing not less than $1,000,000 limits in excess of the limits stated in items (A) through (D) ARTICLE XIV ARBITRATION No arbitration arising out of, or relating to, this Agreement involving one party to this Agreement may include the other party to this Agreement without the other's approval Page 20 of 23 ARTICLE XV TERMINATION OF CONTRACT This Agreement may be terminated by either party upon thirty (30) days' written notice In the event of any termination, the ENGINEER will be paid for all services properly rendered and reimbursable expenses incurred to the date of termination and, in addition, all reimbursable expenses directly attributable to termination Should the City subsequently contract with a new Consultant for continuation of services on the Project, the ENGINEER shall cooperate in providing information ARTICLE XVI SUCCESSORS AND ASSIGNMENTS The OWNER and the ENGINEER each are hereby bound and the partners, successors, executors, administrators, and legal representatives of the OWNER and the ENGINEER are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legal representatives (and said assigns) of such other party, in respect of all covenants, agreements and obligations to this Agreement Neither the OWNER nor the ENGINEER shall assign, sublet or transfer any rights under or interest in (including, but without limitation, monies that may become due or monies that are due) this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement Nothing contained in this paragraph shall prevent the ENGINEER from employing such independent associates and consultants as the ENGINEER may deem appropriate to assist in the performance of services hereunder Nothing under this Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than the OWNER and the ENGINEER, and all duties and responsibilities undertaken pursuant to this Agreement will be for Page 21 of 23 the sole and exclusive benefit of the OWNER and the ENGINEER and not for the benefit of any other party This Agreement, consisting of pages 1 to 23 with Exhibits as listed in Article XIX constitutes the entire Agreement between the OWNER and the ENGINEER and supersedes all prior written or oral understandings This Agreement may only be amended, supplemented, modified or canceled by a duly executed written instrument ARTICLE XVII RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the City shall not constitute nor be deemed a release of the responsibility and liability of the ENGINEER, its employees, associates, agents, and consultants for the accuracy and competency of their designs or other work, nor shall such approval be deemed to be an assumption of such responsibility by the City for any defect in the design or other work prepared by the ENGINEER, its employees, subcontractors, agents, and consultants ARTICLE XVIII NOTICES All notices, communications, and reports required or permitted under this Contract shall be personally delivered or mailed to the respective parties by depositing same in the United States mail at the addresses shown below, certified mail, return receipt requested unless and until either party is otherwise notified in writing by the other party at the following addresses Mailed notices shall be deemed communicated as of three days mailing If intended for the City, to City of Denton Attn Robert E Nelson, P E Executive Director for Utilities 215 East McKinney Street Denton, Texas 76201 If intended for the ENGINEER, to Alan Plummer and Associates, Inc Attn John H Cook, P E 210 West Sixth Street, Suite 400 Fort Worth, Texas 76102 Page 22 of 23 ARTICLE XIX MISCELLANEOUS A The following exhibits are attached to and made a part of this Agreement Exhibit A - Schedule of Charges B A waiver by either the ENGINEER or the City of any breach of a provision of this contract shall not be binding upon the waiving party unless such waiver is in writing in the event of a written waiver, such a waiver shall not affect the waiving party's rights with respect to any other or future breach This contact is executed incounterparts ATTEST Jen er Walters, C ty Secretary by APP VED AS TO LEGAL FORM Debra A ra itch, City Attorney by ATTEST Azzc-~ A Lee Head III CITY OF DENTON, ALAN Engin John AND ASSOCIATES, INC , Cook, Vice Presi Page 23 of 23 EXHIBIT A Staff Members Resident Representation SCHEDULE OF CHARGES (Salary x 1 35) + (Salary x 1 755) (Salary x 1 35) + (Salary x 1 355) Salary is defined as the cost of payroll of engineers, drafters, stenographers, surveyors, clerks, laborers, etc , for time directly chargeable to the Project (Salary Cost is equal to 1 35 times salary ) Subconsul tants Charg es Actual Cost Times Multiplier of 1 15 All Other Direct Exp enses Actual Cost Times Multiplier of 1 00 Other direct expenses shall include printing and reproduction expense, communication expense, travel, transportation and subsistence away from the Engineer's office other miscellaneous expenses directly related to the work, including costs of laboratory analysis, tests, and other work required to be done by independent persons or agents other than staff members or subconsultants OFFICE OF THE CITY ATTORNEY MEMORANDUM TO Jennifer Walters, City Secretary FROM Debra A Drayovitch, City Attorney SUBJECT Cooper Reservoir Raw Water Contract-Exhibit J DATE July 23, 1991 I have attached a copy of the above-referenced ordinance and con- tract which you already should have with all exhibits except for Exhibit J On July 15, 1991, I received Exhibit J to the contract I have also attached Exhibit J, which consists of five (5) docu- ments as noted below, for your records I am forwarding the only copy I have of Exhibit J and will so note in my files If you have any questions, please let me know De ra A Drayovi DAD/lkh Attachment xc Lloyd V Harrell, City Manager (memo only) Robert E Nelson, Executive Director for Utilities (memo only) crexi Dedicated to Quality Service APPLICATION NO IN THE MATTER OF § APPLICATION NO § OF SULPHUR RIVER MUNICIPAL § WATER DISTRICT AND § THE CITY OF COMMERCE, TEXAS § BEFORE THE TEXAS WATER COMMISSION WATER RIGHTS APPLICATION APPLICATION NO IN THE MATTER OF § APPLICATION NO § OF SULPHUR RIVER MUNICIPAL § WATER DISTRICT AND § THE CITY OF COMMERCE, TEXAS § BEFORE THE TEXAS WATER COMMISSION WATER RIGHTS APPLICATION This Application (the "Application") is filed by Sulphur River Municipal Water District ("SRMWD") and the City of Commerce ("Commerce") (collectively, Applicants) requesting the following actions A That the Executive Director accept for filing the contract between SRMWD and its customer cities, Commerce, Cooper and Sulphur Springs, a copy of which accompanies this Application, B That the Texas Water Commission (the "Commission") grant a contractual amendment to SRMWD's water right, Certificate of Adjudication 03-4797 ("CA 03-4797"), authorizing (1) a change in the purpose of use of 4,832 acre-feet per year of water presently authorized to be used for industrial purposes to change the authorized use to either industrial or municipal purposes, and (n) a temporary, interim transbasln diversion and additional place of use of 11,274 acre feet per year of water for municipal purposes and the 4,832 acre-feet per year of water for either municipal or industrial use as set forth in subsection (1) above, for use either in the Sulphur River Basin within the service area of SRMWD or, on a temporary, interim basis, within the Trinity River Basin, and C That the Executive Director accept for filing the contract between Commerce and the Upper Trinity Regional Water District ("UTRWD") for the sale of water from Cooper Reservoir, a copy of which accompanies this Application In support of this Application, Applicants simultaneously herewith submit the Engineering Report of HDR Engineering, Inc, the statements and information of which are hereby incorporated herein by reference (the "Engineering Report") and further submit the following I A The names, addresses, telephone numbers and tax identification numbers of the Applicants are Sulphur River Municipal Water District P O Box 536 Sulphur Springs, Texas 75482 903/885-3327 Tax I D #175-237259 6 City of Commerce 1119 Alamo Street Commerce, Texas 75428 903/886-2105 Tax I D # 1-75-600498-2 B The names, positions, addresses and telephone numbers of the persons authorized to execute this Application on behalf of the Applicants are Don R Abernathy Vice President Sulphur River Municipal Water District P O Box 536 Sulphur Springs, Texas 75482 903/395-2600 -2- Honorable James Teel Mayor, City of Commerce 1119 Alamo Street Commerce, Texas 75428 903/886 2105 C The water right which is the subject of this application is Certificate of Adjudication 03-4797 (formerly Permit No 2336) Owner Sulphur River Municipal Water District Reservoir Cooper Reservoir Stream South Sulphur River, a tributary of the Sulphur River, Sulphur River Basin, Delta and Hopkins Counties II The Comrmssion has jurisdiction of this Application pursuant to Chapter 11, Water Code, 31 TAC Chs 295 and 297, and other laws and regulations III SRMWD was created and operates pursuant to the authority of Art 8280-165, V T C S The territory of SRMWD is comprised of the city limits of the cities of Commerce, Cooper and Sulphur Springs, which are also the three member cities of SRMWD pursuant to the referenced enabling legislation SRMWD is one of three local sponsors of Cooper Reservoir located on the South Sulphur River, Sulphur River Basin, in Delta and Hopkins Counties The other two local sponsors are North Texas Municipal Water District ("NTMWD") and the City of Irving ("Irving") Each of these three local sponsors has a contract with the United States Army Corps of Engineers (the "COE") authorizing the purchase of a portion of the conservation storage space and other rights in Cooper Reservoir by each of the local sponsors A copy 3 of SRMWD's contract with the COE authorizing purchase of storage space in Cooper Reservoir by SRMWD accompames this Application Each of the local sponsors likewise has water rights from the Commission authorizing the storage of water in the respective storage space to which each local sponsor is entitled in Cooper Reservoir and the diversion and use of water from the reservoir by each local sponsor A summary of those water rights follows Cook Reservoir Water Rights SRMWD NTMWD Irving Total Water Right Storage Right Use (AF/YR) Div Transbasm No. (AF) Mun. Ind. Total Rate Diversion To CA 03 4797 81,470 16,960 11,560 38,520 Unspecified (P 2336) (26282%) CA 03 4798 114 265 54,000 54,000 Unspecified Trendy River (P 2338) (36859%) Basin CA 03 4799 114,165 44,820 9,180 54,000 Unspecified Trinity Rner (P 2337) (36859%) Basin 310,000 125,780 10,740 146,520 Unspecified (100%) A copy of CA 03 4797 for SRMWD is included in the Engineering Report IV Construction of Cooper Reservoir by the COE is expected to be substantially complete on or about September 28, 1991 In contemplation of completion of construction of the reservoir, SRMWD has entered into a contract with its three member cities authorizing diversion and use by each member city of a proportional amount of the water authorized to be used under CA 03-4797 as follows 4- Commerce 11,274 acre-feet per year for municipal purposes and 4,832 acre feet for industrial purposes Cooper 3,004 acre-feet per year for municipal purposes and 1,290 acre feet for industrial purposes Sulphur Springs 12,682 acre-feet per year for municipal purposes and 5,438 acre- feet for industrial purposes A copy of the co ntract between SRMWD and the three member cities accompanies this Application V Because construction of Cooper Reservoir took over twenty-five years to complete (due to delays from on going litigation), Commerce entered into arrangements to obtain supplemental water supplies from the Sabine River Authority (from Lake Tawakom) to meet its needs Specifically, Commerce (through the Commerce Water District) obtained a 70 year supply of water from Lake Tawakom for the period from 1976 2046 Because the contract for water supply from the Sabine River Authority is contemplated to supply sufficient water to meet Commerce's needs during the term of that contract, Commerce has entered into an agreement with UTRWD to sell to UTRWD on a temporary, interim basis the 16,106 acre feet per year of water from Cooper Reservoir to which Commerce is entitled under its contract with SRMWD A copy of the contract between Commerce and UTRWD accompanies this Application The sale would be effective for a minimum period of 50 years, with options available thereafter for Commerce to terminate all or portions of the contract, at Commerce's direction, under the terms and conditions specified in the contract The termination options to be exercised by Commerce -5- will allow Commerce to regain the right to use its share of water from Cooper Reservoir beginning fifty (50) years in the future as Commerce's contract for water from Lake Tawakom expires These arrangements thus have the combined effect of maximizing the beneficial use of water in both Lake Tawakom and Cooper Reservoir In order to effectuate the sale of water by Commerce to UTRWD, SRMWD and Commerce now apply for a contractual amendment to CA 03-4797 to authorize the 4,832 acre feet per year of industrial use water purchased by Commerce to be used for either industrial or municipal purposes and to authorize the entire 16,106 acre feet per year of municipal and industrial use water purchased by Commerce either to be used in the service area of SRMWD in the Sulphur River Basin as presently authorized or, on a temporary, interim basis, to be used in the Trinity River Basin in which UTRWD is located It is proposed that the permit provide that the transbasin diversion authority be reduced, partially or totally, as, and to the extent that, Commerce exercises termination options under its contract with UTRWD VI The proposed changes in CA 03 4797 are as follows A Purpose of use CA 03 4797 presently authorizes the diversion and use of 26,960 acre-feet per year of water for municipal purposes and 11,560 acre-feet per year of water for industrial purposes This Application seeks authorization for 4,832 acre-feet per year of the water presently permitted for industrial purposes to be used for either industrial or municipal purposes Thus, if granted, this Application would have the effect of changing the total authorization in CA 03-4797 to authorize 26,960 acre-feet per year of water for 6 municipal purposes, 6,728 acre-feet per year of water for industrial purposes, and 4,832 acre feet per year of water for either municipal or industrial purposes B Place of use CA 03 4797 presently authorizes use of the water within the service area of SRMWD in the Sulphur River Basin This application requests use of a portion of the water (16,106 acre-feet per year) also in the Trinity River Basin on a temporary, interim basis such that this water could be used either in the Sulphur River Basin or the Trinity River Basin This would constitute, and Applicants request approval of, an "interwatershed transfer" of water from the Sulphur River Basin to the Trinity River Basin pursuant to Section 11085, Texas Water Code C Rate and method of diversion CA 03-4797 presently specifies no rate or method of diversion SRMWD proposes that the water to be sold to Commerce (and thence to UTRWD) be diverted from the perimeter of Cooper Reservoir by means of a stationary pump, or pumps, with a maximum diversion rate of 202 5 cfs (130 9 mgd) SRMWD requests that additional diversion rates for its other two member cities (Sulphur Springs and Cooper) be permitted to be designated later VII After diversion, use and reuse, unconsumed water will be returned, as appropriate, either to the Sulphur River Basin of SRMWD as presently permitted or to the Trinity River Basin at points in the Elm Fork of the Trinity River or downstream thereof -7 VIII In connection with the changes in purpose and place of use requested herein, UTRWD has adopted a conservation plan, a copy of which is included in the Engineering Report This plan will effect the efficient use of the water resources of the state authorized to be diverted and used pursuant to this Application UTRWD's master plan, as discussed in the Engineering Report attached hereto, contemplates deliberate effort by UTRWD to reuse water to the maximum extent possible in accordance with Commission rules in order to maximize beneficial use of the resource IX UTRWD has appropriate condemnation authority to allow it to acquire any rights-of- way or other property necessary for construction of a pipeline or other facility to divert and transport the water from Cooper Reservoir to the additional place of use requested to be authorized herein X SRMWD's contract with the COE, the owner of Cooper Reservoir, evidences the agreement of the COE to the use of the storage space in Cooper Reservoir by SRMWD A copy of this contract accompanies this Application XI The granting of this Application will have no adverse impacts on the bays and estuaries of the State of Texas (See Engineering Report ) -8- XII The granting of this Application will have no adverse impacts on existing instream uses in either the Sulphur River Basin or the Trinity River Basin (See Engineering Report ) XIII The granting of this Application will have no adverse impacts on water quality in the State (See Engineering Report ) XIV The granting of this Application will have no adverse impacts on fish and wildlife resources, nor will any mitigation be necessary (See Engineering Report ) XV The matters requested in this Application are consistent with the Red River Basin Compact (Ch 46, Water Code) WHEREFORE, PREMISES CONSIDERED, Applicants respectfully request that this Application be granted as follows A That the Executive Director accept for filing the contract entered into between SRMWD and its member cities, a copy of which accompames this Application, -9 B That the Commission approve a change in the purpose of use of 4,832 acre feet per year of water presently authorized to be used for industrial purposes under CA 03 4797 to authorize that water to be used either for municipal or industrial purposes, C That the Commission approve a "transwatershed diversion" permit under § 11085, Texas Water Code, and additional place of use of 16,106 acre feet per year of water (11,274 acre-feet per year to be used for municipal purposes and 4,832 acre-feet per year to be used for either municipal or industrial purposes) so that the water may be used within either the Sulphur River Basin or, on a temporary, interim basis, the Trinity River Basin, and D That the Executive Director accept for filing the contract between Commerce and UTRWD, a copy of which accompanies this Application -10- Respectfully submitted, SULPHUR RIVER MUNICIPAL WATER DISTRICT ATTEST By Danny D scan Don Abernathy Secretary, Board of Directors Vice President, Board of Directors CITY OF COMMERCE ATTEST '~p By~~~ Kim Lee des H eeH ee City Secretary Mayor -11- STATE OF TEXAS § COUNTY OF DELTA § SWORN TO AND SUBSCRIBED by Don R Abernathy, Vice President, Board of Directors of Sulphur River Municipal Water District before me the undersigned Notary Public on June 28 ,1991 STATE OF TEXAS § COUNTY OF HUNT § Notary Pub State of Texas Printed Na Sheryl Parker Ketelsen My Commission Expires 11/9/91 SWORN TO AND SUBSCRIBED by James H Teel, Mayor of the City of Commerce before me the undersigned Notary Public on Printed My Col 1991 Sheryl Parker Ketelsen in Expires 11/9/91 -12 RESOLUTION AUTHORIZING APPLICATION TO TEXAS WATER COMMISSION FOR AMENDMENT OF CERTIFICATE OF ADJUDICATION 03-4797 AND APPROVAL OF WATER SUPPLY CONTRACTS RELATED THERETO WHEREAS, the Sulphur River Municipal Water District (the 'District") was created and operates under Article 8280-165, V T C S , WHEREAS, the District owns certain rights to store water in Cooper Reservoir and is the owner of Certificate of Adjudication 03-4797 ("CA 03-4797") which authorizes the District to store water in Cooper Reservoir and to use water from the reservoir for municipal and industrial purposes, WHEREAS, the District has entered into a water supply contract with its member cities Commerce, Cooper and Sulphur Springs, and the District desires to file copies of said contract with the Commission and, if appropriate, obtain the Commission's approval of the contract, WHEREAS, Commerce has in turn entered into a water supply contract with the Upper Trinity Regional Water District ("Upper Trinity") which contemplates a change in the place and purpose of use of a portion of the water heretofore permitted to be used by the District under CA 03-4797, including a transbasin diversion of water from the Sulphur River Basin to the Trinity River Basin, WHEREAS, the District desires to amend CA 03-4797 to accommodate the uses contemplated by Commerce and Upper Trinity in the contract entered into between them, and WHEREAS, the District and Commerce jointly desire to file and, if appropriate, obtain Commission approval of the contract between Commerce and Upper Trinity, NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Sulphur River Municipal Water District as follows Section 1 That the District file an application with the Texas Water Commission (the "Commission") for approval of an amendment to CA 03-4797 to accommodate a change in the place and purpose of use of a portion of the water heretofore authorized to be utilized by the District under CA 03 4797, including a permit for transbasin diversion of water under Section 11085, Texas Water Code, to authorize diversion and use of water from Sulphur River Basin to the Trinity River Basin, in order to effectuate the purposes of the contract entered into between Commerce and Upper Trinity Section 2 That the District file a copy of its contract with its customer cities, Commerce, Cooper and Sulphur Springs, and a copy of the contract between Commerce and Upper Trinity, with the Commission as required by Commission rules and, if appropriate, seek Commission approval of those contracts Section 3 That the District's President or Vice-President is hereby authorized to execute any and all documents necessary to effectuate the purposes of this resolution and the District's officers and directors, its engineers, HDR Engineering, Inc, and its attorneys, Boyle & Freeman, are hereby further authorized to take all actions necessary or appropriate to effectuate the purposes of this resolution ADOPTED June S, 1991 (SEAL) ATTEST oard of Directors Aecretat \srmwd\rasolutn 001 SULPHUR RIVER MUNICIPAL WATER DISTRICT President, Board of Direc ors -2- SECRETARY'S CERTIFICATE I, Danny Duncan, Secretary of the Board of Directors of Sulphur River Municipal Water District, do hereby certify that the attached is a true and correct copy of a resolution of the Board of Directors adopted on June 5, 1991 Danny Du an Secretary, 'Board of Directors Sulphur River Municipal Water District \srmwd\cert 001 RESOLUTION OF THE CITY OF COMMERCE AUTHORIZING FILING OF WATER SUPPLY CONTRACT WITH TEXAS WATER COMMISSION AND OTHER ACTIONS RELATED THERETO WHEREAS, the City of Commerce, Texas, has entered into a water supply contract with the Upper Trinity Regional Water District ("Upper Tnmty") to sell water to Upper Tnmty from Lake Cooper, WHEREAS, Texas Water Commission (the 'Commission") rules require the filing of such contract with the Commission, and WHEREAS, the City of Commerce desires to file such contract with the Commission and, if appropriate, obtain approval of the Commission thereof, NOW THEREFORE, BE IT RESOLVED by the City Commission of the City of Commerce, Texas, as follows Section 1 The City shall file a copy of its water supply contract with Upper Trinity with the Texas Water Commission as required by Texas Water Commission rules and, if appropriate, seek Comiission approval of the contract Section 2 The Mayor of the City is authorized to execute all documents necessary to effect such application and the purposes of this resolution The City's officers and commissioners, its attorneys, Boyle & Freeman, and its engineers, HDR Engineering, Inc, are authorized to take such actions as may be necessary or appropriate to effectuate this resolution ADOPTED June 18, 1991 CITY OF COMMERCE, TEXAS (SEAL) BY ,~i /c r~+ (ZL'-14e ames Teel, Mayor' ATTEST Kiri -Lee, City Secretary \comm\resolum 001 SECRETARY'S CERTIFICATE I, Kim Lee, City Secretary of the City of Commerce, Texas, do hereby certify that the attached is a true and correct copy of a resolution of the City Commission of Commerce adopted on June 18, 1991 71 / p-,Kim City Secretary City of Commerce, Texas \mmm\cert 001 ENGINEERING REPORT ON APPLICATION OF SULPHUR RIVER MUNICIPAL WATER DISTRICT AND THE CITY OF COMMERCE TO AMEND CA 03 4797 AND FOR APPROVAL AND FILING OF WATER SUPPLY CONTRACTS Prepared by HDR Engineering, Inc Austin, Texas June, 1991 REPORT CERTIFICATION I certify that this report was prepared by me or under my direct supervision Registered Professional Kenneth L Choffel, Engineer, Texas Date June 19, 1991 y~P~E of tF4q'h .s KEWTH L OWL yo p~ 45686 ~4; HDR Engineering 3000 S IH 35, Suite 400 Austin, Texas 78704 TABLE OF CONTENTS Page I INTRODUCTION 1 II CA 034797 3 III OTHER RIGHTS IN COOPER RESERVOIR 4 IV NEED FOR THE WATER PROPOSED TO BE SOLD BY COMMERCE TO THE UPPER TRINITY REGIONAL WATER DISTRICT AND USED IN THE TRINITY RIVER BASIN ON A TEMPORARY, INTERIM BASIS 4 V POPULATION PROJECTIONS FOR THE UTRWD SERVICE AREA 7 VI WATER REQUIREMENTS PROJECTIONS FOR THE UTRWD SERVICE AREA 8 VII WATER SUPPLIES AVAILABLE FOR THE UTRWD SERVICE AREA 10 VIII WATER DEMAND-SUPPLY COMPARISON FOR THE UTRWD SERVICE AREA 11 IX THE WATER PROPOSED TO BE DIVERTED FROM THE SULPHUR RIVER BASIN TO THE TRINITY RIVER BASIN IS SURPLUS TO THE NEEDS OF THE SULPHUR RIVER BASIN OVER THE NEXT 50 YEARS 12 X INSTREAM NEEDS IN SULPHUR RIVER BASIN 14 XI WATER QUALITY IMPACTS IN THE SULPHUR RIVER BASIN 15 XII WATER QUALITY IMPACTS IN THE TRINITY RIVER BASIN 15 XIII UTRWD WATER CONSERVATION PLAN 16 XIV POINT(S) OF DELIVERY 16 XV DIVERSION PLACE, METHOD AND RATE 16 I INTRODUCTION The Sulphur River Municipal Water District SRMWD"), owner of Certificate of Adjudication 03-4797 ("CA 03 4797"), and the City of Commerce, Texas ("Commerce") have applied to the Texas Water Commission (the "Commission") for a contractual amendment to CA 03 4797 and authority to change the purpose of use of 4,832 acre-feet per year of water currently authorized to be used for industrial purposes under CA 03-4797 to be used for either municipal or industrial purposes, and for the authority to divert from the Sulphur River Basin to the Trinity River Basin a maximum of 16,106 acre feet per year of water under CA 03 4797 to be utilized either totally for municipal purposes or, as described earlier, alternatively, 4,832 acre-feet per year of that water for industrial purposes A maximum diversion rate of 202 5 cfs (130 9 mgd) from the perimeter of Cooper Reservoir is also requested The request would authorize the 16,106 acre feet per year of water to be used either in the Trinity River Basin or Sulphur River Basin such that the present authorization for use in Sulphur River Basin remains unaffected Use in the Trinity River Basin is to be on a temporary, interim basis The request is hereafter referred to as the "Application" SRMWD has entered into a contract with its three member cities (Commerce, Cooper and Sulphur Springs) to sell its entire permitted amount to the cities in the following amounts Commerce 11,274 acre-feet per year for municipal use and 4,832 acre- feet per year for industrial use, Cooper 3,004 acre-feet per year for municipal use and 1,290 acre feet per year for industrial use, and Sulphur Springs 12,682 acre-feet per year for municipal use and 5,438 acre- feet per year for industrial use In turn, Commerce has entered into a contract with Upper Trinity Regional Water District ("UTRWD") authorizing a temporary, interim sale of its share of water from Cooper Reservoir to UTRWD for use for municipal and/or industrial purposes in the Trinity River Basin as requested herein Commerce has elected to enter into this temporary, interim sale of its share of water from Cooper Reservoir to UTRWD because when construction of Cooper Reservoir was delayed by litigation for over twenty-five years, Commerce made arrangements with the Sabine River Authority to obtain through the Commerce Water District (on behalf of the City of Commerce) a seventy-year supply of water from Lake Tawakoni Under the contract between Commerce Water District and Sabine River Authority, Commerce has been able to obtain a seventy-year supply of water from 1976 - 2046 The amount of water committed from Lake Tawakoni (8,400 acre-feet per year) should be sufficient to meet Commerce's needs during this period of time However, upon expiration of that contract in the year 2046, Commerce will need to obtain water from Cooper Reservoir or, if the contract with Sabine River Authority is renewed, Commerce will still need to obtain additional water supply from Cooper Reservoir Therefore, the contract between Commerce and UTRWD relating to sale of water from Cooper Reservoir provides that it is a temporary, interim sale Commerce has retained options to terminate UTRWD's rights periodically as Commerce needs to obtain water in the future from Cooper Reservoir to supplement or replace supplies presently being made available from Lake Tawakoni Accordingly, the Application submitted with this Engineering Report envisions the maximum 2- beneficial utilization of the water resources of the State in accordance with applicable law by coordinating the use of water supplies in Lake Tawakom and Cooper Reservoir to meet the needs of both Commerce and UTRWD This plan has been included by the Texas Water Development Board in the 1990 Texas Water Plan See pp 3-69 through 3-70 and 3 73 of that plan The purpose of the Application by SRMWD and Commerce to the Commission is to obtain approval and authorization for filing of the contracts between SRMWD and its customer cities and between Commerce and LJTRWD, and approval of appropriate contractual amendments to CA 03 4797 relating to the sale of water to UTRWD to authorize additional, alternative use of Commerce's share of water in Cooper Reservoir to be used in the Trinity River Basin on a temporary, interim basis for municipal and/or industrial purposes in addition to the present authorization to use that water in the Sulphur River Basin This Engineering Report is prepared in association with, and in support of, the Application 11 CA 03 4797 CA 03-4797 presently authorizes SRMWD to impound 71,750 acre-feet of water in the conservation storage capacity of Cooper Reservoir and 9,720 acre feet in the sediment storage capacity of Cooper Reservoir, or a total of 81,470 acre feet of storage in Cooper Reservoir, and to divert and use 26,960 acre feet per year of water for municipal purposes and 11,560 acre-feet per year of water for industrial purposes within the Service Area of 3 SRMWD in the Sulphur River Basin A copy of CA 034797 is attached to this Engineering Report III OTHER RIGHTS IN COOPER RESERVOIR In addition to the rights of SRMWD under CA 03-4797, two other water rights authorize storage, diversion and use of water from Cooper Reservoir These are CA 03-4798 of North Texas Municipal Water District ("NTMWD") and CA 03-4799 of the City of Irving ("Irving") Copies of these two certificates of adjudication are also attached to this Engineering Report Both of these two certificates of adjudication authorize transbasin diversion and use of water from Cooper Reservoir to the Trinity River Basin for each of the certificate owners IV NEED FOR THE WATER PROPOSED TO BE SOLD BY COMMERCE TO THE UPPER TRINITY REGIONAL WATER DISTRICT AND USED IN THE TRINITY RIVER BASIN ON A TEMPORARY, INTERIM BASIS The water purchased by Commerce from SRMWD (from Cooper Reservoir) and then resold by Commerce to UTRWD on a temporary, interim basis is to be delivered into the Elm Fork or East Fork of the Trinity River or downstream therefrom and to be used by UTRWD in the Trinity River Basin within the Elm Fork or East Fork watersheds or downstream thereof UTRWD is studying alternative methods to transport, possibly store and use the water A more specific location of transportation facilities and place of use in the Trinity River Basin cannot be ascertained until those studies are complete UTRWD's 4 water service area (the "Service Area") includes all of Denton County (except the area south and west of Denton Creek) plus three cities partially in Denton and Collin Counties - Frisco, Prosper, and Celina (see Figure 1) i UTRWD's Service Area is subdivided into three regions with the planned customers or participants in each region as follows North Region Sanger Pilot Point Mustang WSC Lake Cities MUA Corinth Denton Krum Aubrey Krugerville Celina Ponder Cross Roads Lincoln Park Bolivar WSC Perare Water System Black Rock WSC South Region Argyle WSC Northlake Bartonville WSC Highland Village Lewisville Flower Mound (excess over Dallas) Justin Corral City Eas$ Region Carrollton (excess over Dallas) Lake Village Little Elm Oak Point Prosper Denton County FWSD No 1 Frisco i Water Implementation Plan, Upper Trinity Regional Water District, Alan Plummer and Associates, Fort Worth, Texas, November 1989 -5- W v y w _ y Z lnp - r \CO J u w m ` zl>^ o ° z cc > c z w3w w z - a In o o a _ c? G zo s J _ _ L _ W W W Q ~ Z ar F W J G Z C® ~ W H Q Q Q Q - H In c a 3 S ~ i a x w a. > O w w ~ ? w ~ ` I e ❑ O ® x E3 u I W I ~ ~ F I p : u 1 r I I J o - I I I 1 I 4 I I n h~ f r ;"AM T 4 I "L 1 H I I ❑ I I gW I I I I I I I I ~ ` I - I - ul) II K aT MM xu 4 7 T! K ~ 1 I }03 ~~IIg 1CO 6e `~o w W I ~ ly ~4~~ ~-o tl/Ca I a~ ~ O 1✓ ~ P y~ I I\'y'Y '9 ~ o ~ a I~ I I ~ I k s \ ~ I ` I I = T~~ - I i _F- a~ 1' I V POPULATION PROJECTIONS FOR THE UTRWD SERVICE AREA The U S Bureau of the Census reported Denton County's population at 143,126 in 1980, and 273,523 in 1990 This was an increase of 130,397, or 91 11 percent during the decade of the 1980's During this decade, Denton County experienced the largest percentage increase of all counties in Texas In 1990, the population of UTRWD Service Area was reported at 244,044 by the Census Of this total, 8,896 (3 6 percent) were in the communities of Celina, Frisco, and Prosper in Collin County, and 235,148 were in Denton County Therefore, 85 9 percent of Denton County's 1990 population was in UTRWD's Service Area In updating the Texas Water Plan in 1990, the Texas Water Development Board ( TWDB") made population projections for each county and city of Texas z In the case of Denton County, the TWDB's projections for 1990 were 8 5 percent below the 1990 census population Adjusting the TWDB's 1990 projection for this difference, and utilizing the TWDB's growth rates after 1990 for Denton County, the Water Development Board's (adjusted) population projections for Denton County for the period 1990 through 2040 are as follows 2Unpublished Water Planning Data Texas Water Development Board, Austin, Texas October, 1989 7 Texas Water Developm ent Board (adjusted) Year Annual Growth Rate % Proiected Population 1980 - 143,126 1990 6 69 actual 273,523 2000 3 21 estimate 375,155 2010 2 49 estimate 479,761 2020 197 estimate 583,108 2030 167 estimate 688,140 2040 084 estimate 748,178 The UTRWD population projections for its Service Area within Denton County are quite close to the population projections that have been made using the 1990 census data and the Texas Water Development Board's growth rates, as listed above For example, UTRWD's projection for 2010 for that part of the Service Area located in Denton County is 453,513 or 94 5 percent of the 479,761 projected for the county, using the adjusted TWDB population projections For 2010, UTRWD's projection for the total Service Area, including communities of western Collin County, is 493,293 UTRWD has not made projections beyond 2010 VI WATER REQUIREMENTS PROJECTIONS FOR THE UTRWD SERVICE AREA UTRWD has developed a water supply plan for its Service Area 3 In developing the plan, projections were made of water use by each member or customer entity within UTRWD's Service Area, for the years 1990, 1993, 1998, 2005, and 2010 The 1989 projections were revised in November 1990 to take into account changes in growth rates that 3 Water Implementation Plan, Upper Trinity Regional Water District Alan Plummer and Associates, Forth Worth Texas, November, 1989 8 occurred in the late 1980's The water use projections for the Service Area are summarized in Table 14 The projections are expressed in terms of acre-feet per year The projections are in terms of total supplies needed annually for all entitles, with the exception of Flower Mound and Carrollton In these two cases, projections are in terms of quantities needed in excess of supplies presently available from Dallas, some of which are through contracts that have expiration dates during the early years of the projections period Table 1 Upper Trinity Regional Water District Service Area Water Use Projections, 1990-2040 Projected Water Use 2040 Region 1990* 1998* 2005* 2010* Low** High*** - (acre feet per year) - North 17,032 22,619 28,498 33,121 42,388 64,000 South 15,169 25,828 34,625 39,976 51,371 60,800 East 4,129 13,138 20,386 25,087 32,241 35,200 Total 36,330 61,585 83,509 98,184 126,000 160,000 *Source Upper Trinity Regional Water District, Water Implementation Plan, as revised, November, 1990 **Texas Water Development Board Water Planning Projections with conservation ***Extrapolated from 2010 Upper Trinity Regional projections The District did not make projections beyond 2010 4 Updated Average Day Water Use Projections, Upper Trinity Regional Water District Service Area (mgd), (Revised, November, 1990), Correspondence from Alan Plummer and Associates, Fort Worth, Texas, March 22, 1991 9- VII WATER SUPPLIES AVAILABLE FOR THE UTRWD SERVICE AREA Studies by the Texas Water Development Board indicate that annual recharge to the aquifers of Denton County is approximately 6,100 acre feet (5 5 million gallons per day) and that the quantity of water recoverable from storage in the aquifers is 49,000 acre feet 5 The present pumping rate is approximately 6 0 million gallons per day (mgd), exceeding annual recharge by about 0 5 mgd 6 A uniform increase in the pumping rate to 9 0 mgd would deplete storage by 2010 Thus, UTRWD's participating agencies have adopted a strategy to develop alternate supplies as soon as possible and save the remaining groundwater for an interim source of supply, for rural areas, and for peaking and emergency use within its member entities Thus, for purposes of this analysis, groundwater is not included as an element of long term supply for UTRWD With respect to surface water supplies in Denton County, the City of Denton holds water rights to 26,995 acre-feet per year of reservoir yields (Lake Lewisville -4,824 acre feet, and Lake Ray Roberts - 22,171 acre-feet) No other member entities of UTRWD have surface water rights, however, several member cities obtain surface water through contracts with Dallas 5 Occurrence, Availability and Chemical Quality of Ground Water in the Cretaceous Aquifers of North Central Texas, Volumes 1 and 2, Texas Department of Water Resources, Report 269, Austin, Texas, April 1982 6 Denton County Water and Wastewater Study, Regional Master Plan for the year 2010, Denton County Commissioners Court and Participating Agencies, Espey, Huston and Associates, Inc, March, 1988 10 VIII WATER DEMAND-SUPPLY COMPARISON FOR THE UTRWD SERVICE AREA Present water use and projected water demands clearly show that present water supplies of the UTRWD Service Area are inadequate The following comparison illustrates this point for the years 2005, 2010, and 2040 Projected Water Demands (Acre Feet per Year) 2040• 2005 2010 Low Eigh Total Projected Requirements 83,509 98,184 126,000 160,000 Less Denton Rights' 26.995 26.995 26.995 26.995 Net Project Requirements 56,514 71,189 99,005 133,005 'See Table 1 The estimated minimum quantities needed are 56,514 acre feet per year in 2005 and 71,189 acre feet per year in 2010 assuming Denton agrees to allow others to temporarily use its rights If Denton does not allow other entities use of its rights, then an additional 7,260 and 4,656 acre-feet per year is needed in 2005 and 2010 respectively By the year 2040, 99,000 and 133,000 acre-feet per year are needed 7 Denton's rights are available only for Denton's use which is not expected to reach 26,995 acre feet per year until approximately 2015 Therefore, Net Projected Requirements of UTRWD are understated prior to approximately 2015 unless Denton agrees to make temporary sales to other users in the UTRWD Service Area out of Denton's rights -11 IX THE WATER PROPOSED TO BE DIVERTED FROM THE SULPHUR RIVER BASIN TO THE TRINITY RIVER BASIN IS SURPLUS TO THE NEEDS OF THE SULPHUR RIVER BASIN OVER THE NEXT 50 YEARS According to data and projections of the 1990 Texas Water Plan, the total dependable (firm yields) water supply from reservoirs of the Sulphur River Basin (Lakes Wright Patman, River Crest, Sulphur Springs, and Cooper) plus dependable groundwater, in 2040, will be 327,321 acre-feet per year 8 An additional 32,388 acre-feet per year is expected to be imported into the Sulphur River Basin to meet needs of some water users located within the basin, bringing the total Sulphur River Basin supply in 2040 to 359,709 acre feet per year (Table 2) Projected Sulphur River Basin in-basin water requirements or demands in 2040 for all purposes are 208,653 acre feet per year, with an export demand of 89,220 acre feet per year, bringing projected 2040 water use from Sulphur River Basin sources and imports into the basin to a total of 297,873 acre-feet annually (Table 2) Taking into account in-basin needs, imports into the basin, and projected exports from the basin, the Sulphur River Basin water surplus in 2040 is projected to be 61,836 acre-feet per year Without imports of 32,388 acre-feet per year into the basin in 2040, but with exports of 89,220 acre-feet per year (Cooper Reservoir water to Irving and NTMWD), the Sulphur River Basin surplus in 2040 would be 29,448 acre feet per year (Table 2) 8'Water for Texas, Today and Tomorrow, Texas Water Development Board, December 1990 -12 Table 2 Sulphur River Basin Projected Water Demands High Population Growth High Per Capita Water Use with Conservation Year Purpose of Use 2000 2040 In Basin Demand - (acre-feet) Mumcipal 43,263 61,560 Manufacturing 48,481 116,509 Steam Electric 6,500 16,500 Mining 587 455 Irrigation 4,804 4,804 Livestock 8,825 8.825 Subtotal 122,460 208,653 Export Demands 38.963 89.220 Total 161,423 297,873 In Basin Supplies* Ground Water 7,665 7,521 Wright Patman 180,000 180,000 River Crest 10,000 10,000 Sulphur Springs 7,800 7,800 Cooper 122.00 122,000 Subtotal 327,465 327,321 Imports 16.997 32,388 Total 344,462 359,709 Surplus (Supply minus Demand) 183,039 61,836 Source Water for Texas, Today and Tomorrow, Texas Water Development Board December, 1990, pp 324 'Taking into account only the surface water supplies from existing reservoirs no supply from run of the river flows is included Population 1990 - 163,300 2040 projected range of 246,700 to 293 600 -13- X INSTREAM NEEDS IN SULPHUR RIVER BASIN As originally permitted in 1966, water use from Cooper Reservoir under CA 03-4797 was authorized to be used "within the service area of the Sulphur River Municipal Water District " When the Cooper Reservoir project was delayed, Commerce made arrangements to obtain water from Lake Tawakom in the Sabine River Basin The temporary sale of water by Commerce from its share of Cooper Reservoir water to UTRWD for use in the Trinity River Basin could theoretically9 result in a very slight change in the future volume of water spilled from Cooper Reservoir This volume would be estimated conservatively at about 50% of the municipal portion of Commerce's share of the reservoir yield (i e, what theoretically could be expected to occur as return flows from Commerce if all of its water were utilized with no reuse) or about 5,637 acre feet per year However, this potential reduction would be significantly offset by Commerce's potential for return flows from its existing water source (i a Lake Tawakom) Commerce's existing contract with the Sabine River Authority allows for the use of 8,400 acre feet per year If 50% of this water contributed to return flows, then the potential exists for future return flows of 4,200 acre- feet per year of Lake Tawakom water contributing to Cooper Reservoir inflows This volume represents about 75% of the 5,637 acre-feet per year potential reduction in return flows as a result of the requested temporary interbasin transfer As there are no water rights downstream of Commerce's wastewater treatment plant and upstream of Cooper Reservoir, this potential reduction will not affect water rights on this segment of the Sulphur River 9Commission rules (31 TAC 2971 and 29745(a) and Ch 310) now permit reuse of water within the original authorization for municipal use Therefore, no return flows are necessarily to be expected from the present use permitted under CA 03 4797 -14 Low flow releases from Cooper Reservoir (as specified by CA 03-4797 and other water rights associated with the reservoir) of 5 cfs will be unaffected by the proposed action and will continue to provide adequate flows downstream of Cooper Reservoir for instream needs Natural streamflows upstream of the reservoir and the rate of increase of existing return flows from the Commerce area will all be unaffected by the proposed action XI WATER QUALITY IMPACTS IN THE SULPHUR RIVER BASIN Essentially, there will be no change in the volume of return flows within the Sulphur River Basin and therefore no water quality impacts associated therewith The slight change in the volume of reservoir spills which could potentially occur (as described above) will not adversely affect water quality downstream of Cooper Reservoir because low-flow releases will remain unchanged The potential change in the volume of return flows (i e, 1,437 acre- feet per year) represents 0 5% of the average annual inflow to Cooper Reservoir XII WATER QUALITY IMPACTS IN THE TRINITY RIVER BASIN Water quality impacts of the temporary transbasm diversion will be limited to those stream reaches downstream of existing and future wastewater treatment plants of customers of UTRWD utilizing the transferred water Discharges from all wastewater treatment plants are regulated by the Commission and are required to meet appropriate stream water quality standards Any impacts associated with increases in return flows will be addressed by the Commission at the time wastewater discharge permits are renewed -15 XIII UTRWD WATER CONSERVATION PLAN UTRWD has adopted a water conservation plan, a copy of which is attached The plan has been submitted to the Texas Water Development Board for approval and contemplates maximum beneficial use, and reuse, of the water to the extent permitted under Commission rules XIV POINT(S) OF DELIVERY Water proposed to be diverted from the Sulphur River Basin to the Tnmty River Basin is to be delivered to the Trinity River Basin in the watershed of the Elm Fork or East Fork tributaries or downstream therefrom XV DIVERSION PLACE, METHOD AND RATE SRMWD and Commerce propose to divert water to be sold to UTRWD from the perimeter of Cooper Reservoir UTRWD is studying alternatives for diverting and transporting water from Cooper Reservoir to the Trinity River Basin for use Diversion will be by means of a stationary pump or pumps It is likely that UTRWD will utilize facilities owned by others, however, UTRWD may also construct its own facilities In either event, a maximum pumping rate of 202 5 cubic feet per second (130 9 million gallons per day) is requested The requested peak diversion rate would allow UTRWD to make off-peak use of transportation facilities constructed to meet peak needs of others Because the contract between Commerce and UTRWD is for temporary use of this water, UTRWD is investigating the possibility of acquiring the right to off-peak transportation This pumping 16- rate would allow UTRWD to pump the maximum 16,106 acre-feet per year of water to be sold to it in a period of 40 days At the maximum pumping rate, reservoir draw down would be 25 inches per day when the level of Cooper Reservoir was at 440 0 msl (top of the conservation pool), and 92 inches per day when the reservoir level is at 415 5 msl (bottom of the conservation pool) 17- LIST OF ATTACHMENTS TO ENGINEERING REPORT CA 03-4797 2 CA 03-4798 3 CA 03-4799 4 UTRWD Water Conservation Plan CERTIFICATE OF ADJUDICATION CERTIFICATE OF ADJUDICATION 03-4797 OWNER Sulphur River Municipal Water District C/o Donald W Abernathy, Sec-Treasure P 0 Box 310 Cooper, Texas 75432 COUNTIES Delta and Hopkins WATFRCOURSE South Sulphur River, tributary of the Sulphur River PRIORITY DATE November 19, 1965 BASIN Sulphur River WHEREAS, by final decree of the 202nd Judicial District Court of Bowie County, in Cause No 86-C1702-202 In Re The Adjudication of Water Rights in the Sulphur River Basin dated December 17, 1986 a right was recognized under Permit 2336 authorizing the Sulphur Ri,.er Municipal Water District to appro- priate waters of the State of Texas as set forth below, WHEREAS, by Public Law 780, 83rd Congress, 2d Session, 1954, as amended, Cooper Dam and Reservoir on the South Sulphur River in the Sulphur River Basin, a multi-purpose federal project located in Delta and Hopkins Counties, Texas, was duly authorized, WHEREAS, a contract has been negotiated between the United States of America and local political subdivisions whereby water supply storage space in Cooper Reservoir has been allocated between elevation 440 0 and 415 5 feet above mean sea level as follows Percent of Water Usable Storage Supply Space (acre-feet) Sulphur River Municipal Water District a 26 282 71,750 North Texas Municipal Water District City of Irving, Texas TOTAL 36 859 100,625 36 859 100,625 100 00 273,000 Initially in the silt storage space below elevation 415 5 feet msl there will be 37,000 acre-feet, the water in which may be, with the approval of the federal contracting officer, diverted proratably by the political subdi- visions above named in the percentages set forth, Certificate of Adjudication 03-4797 NOW, TUEREFORL, this certificate of adjudication to appropriate waters of the State of Texas in the Sulphur River Basin is issued to the Sulphur Piver Municipal Water District, subject to the following terms and con- ditions 1 IMPOUNDMENT Owner is authorized to impound in Cooper Reservoir between ele- vation 415 5 feet and 440 0 feet above mean sea level not to exceed 71,750 acre-feet of water and below elevation 415 5 feet msl not to exceed 9720 acre-feet, making a total of 81,470 acre-feet of water Station 19+00 on the centerline of the dam will be located at a point which bears S 69°30'W, 3640 feet from the uortheast corner of the W W Langham Survey, Abstract 1218, Hopkins County, Texas 2 USE Owner is authorized to divert and use from Cooper Reservoir not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the Sulphur River Municipal Water District 3 DIVERSION Owner shall, prior to construction or installation of any diversion facilities, submit to the Texas Water Commission for its approval data concerning the point and method for diversion of water and the maximum rate of diversion 4 PRIORITY the time priority of owner's right is November 19, 1965 5 SPLCIAL CONDITIONS A Water diverted but not consumed shall be returned to the Sulphur River Basin at the disposal plants of the water customers of the District B Construction or installation of all works herein authorized or required shall commence and be completed within the time limits as established by the Commission C Owner accepts this certificate of adjudication with full knowledge and consent that the State of Texas retains the right to regulate, by permit from the Commission, intro- ductions into and withdrawals from Cooper Reservoir such devel- volumes of water downstream or other sources as may be oped under the Texas Water Plan 2 Certificntc of Adjudication 03-4797 the locations of pertinent features related to this certificate are shown on Page 2 of the Sulphur River Basin Certificates of Adjudication Maps, copies of which are located in the office of the Texas Water Commission, Austin, Texas This certificate of adjudication is issued subject to all terms, con- ditions and provisions in the final decree of the 202nd Judicial District Court of Bowie County, Texas, in Cause No 86-C1702-202 In Re The Adjudica- tion of Water Rights in the Sulphur River Basin dated December 17, 1986 and supersedes all rights of the owner asserted in that cause This certificate of adjudication is issued subject to senior and superi- or water rights in the Sulphur River Basin Thin certifirate of adjudication is issued subject to the obligations of the StaLL of Texas pursuant to the terms of the Red River Compact This certificate of adjudication is issued subject to the Rules of the Texas Water Commission and its continuing right of supervision of State water resources consistent with the public policy of the State as set forth in the Texas Water Code TEXAS WATER COMMISSION s Paul Hopkins> hairman DATE ISSUED MAR 3 1 1981 ATTEST /s/ Mary Ann Hefner Mary Ann Hefner, Chief Clerk 3 Execut, and entered of record this the 12t day of Play 19'6 TEXAS WATER RIOIIPs CoMMI SION /s/ Joe D Carter Joe D Carter ~haumvi /s/ Joe R Carroll Joe R Carroll Lonunissioner /s/ Dorsey D ❑ardeman %rTEST Dorsey 0 IlardLman Conunassioncr /s/ Nary Ann Ilcfn~r Mary Ann 11L ncr S~crctary Page 2 of 2 CLLIIFICATD OF ADJUDICATION CLRTIFICATF OF ADJUDICATION 03-4798 OWNER North Texas Municipal Water District P 0 Drawer "C" Wylie, Texas 75098 COUNTILS Delta and Hopkins WATLRLUURSE South Sulphur River, trlbutarl of the Sulphur River PRIORITY DATE November 19, 1965 BASIN Sulphur River VHFREA4, b} final decree of the 202nd Judicial District Court of Bowie Count}, in Cause No 86-C1702-202 In Re fhe Adjudication of Water Rights in the Sulphur Ilfl,,r Pasin dated December -17,1986 a right was recognized under pcrwit 23~b authorizing the North Texas Municipal Water District to appropri- ate waters of the State of Texas as set forth below, WHrPFAS, by Public Law 780, 83rd Congre69, 2d Session, 1954, as amended, Cooper Dam and Reservoir on the South Sulphur River in the Sulphur River R,sin, a multi-purpose federal project located in Delta and Hopkins Counties, Texas was duly authorized, WHhRLAS, a contract has been negotiated between the United States of America and local political subdivisions whereby water supply storage space in Cooper Reservoir has been allocated between elevation 440 0 and 415 5 feet above mean sea level as follows Percent of water Usable Storage Supply Space (acre-fee[) Sulphur River Municipal Water District 26 282 71,750 North Texas Municipal Water District City of Irving, Texas TOTAL J6 859 100,625 36 859 100,625 100 00 273,000 Initially in the silt storage space below elevation 415 5 feet mal there will be 37,000 acre-feet, the water in which may be, with the approval of the federal contracting officer, diverted proratably by the political subdi- visions above named in the percentages set forth, NOW, IHFRFFORE, this certificate of adjudication to appropriate waters of the State of Texas in the Sulphur River Basin is issued to the North Texas Municipal Water District, subject to the following terms and conditions Lcrtificitc of Adjudication 03-4798 1 IMPOUNDMENT Owner is authorized to impound in Cooper Reservoir between ele- vation 415 5 feet and 440 0 feet above mean sea level not to exceed 100,625 acre-feet of water and below elevation 415 5 feet msl not to exceed 13,640 acre-feet, making a total of 114,265 acre-feet of water Station 19+00 on the centerline of the dam will be located it a point which bears S69°30'W, 3640 feet from the northeast corner of the W W Langham Survey, Abstract 1218, Hopkins County, lexas 2 USE Owner is authorized to divert and use from Cooper Reservoir not to exceed 54,000 acre-feet of water per annum for municipal purposes within the service area of the North Texas Municipal Water Dis- trict 3 DIVERSION Owner shall, prior to construction or installation of any diversion facilities, submit to the Texas Water Commission for its approval data concerning the point and method for diversion of water and the maximum rate of diversion 4 PRIORITY the time priority of owner's right is November 19, 1965 5 SPLLIAL CONDITIONS A Water diverted but not consumed shall be returned to the Trinity River Basin at the disposal plants of the water customers of the District B Construction or installation of all works herein authorized or required shall commence and be completed within the time limits as established by the Commission C Owner accepts this certificate of adjudication with full knowledge and consent that the State of Texas retains the right to regulate, by permit from the Commission, intro- ductions into and withdrawals from Cooper Reservoir of such volumes of water downstream or other sources as may be devel- oped under the Texas Water Plan The locations of pertinent features related to this certificate are shown on Page 2 of the Sulphur River Basin Certificates of Adjudication Maps, copies of which are located in the office of the Texas Water Commission, Austin, Texas 2 Certificate of Adjudication 03-4798 This certificate of adjudication is issued subject to all terms, con- dit3ona end provisions in the final decree of the 202nd Judicial District Court of Bowie County, Texas, in Cause No 86-C1702-202 In Re The Adjudica- tion of Water Righta in the Sulphur River Basin dated December 17, 1986 and superseder all rights of the owner asserted in that cause This certiti"te of adjudication ib issued subject to seniur and superi- or water rights in the Sulphur Rivei Basin This certificate of adjudication is issued subject to the obligations of the State of Texas pursuant to the terms of the Red River Compact This certificate of adjudication is issued subject to the Rules of the Texas [eater Commission and its continuing right of supervision of State water resources consistent with the public policy of the State as set forth in the Texas Watcl Lode TLXAS WATER C0141ISSION Paul Hopkins, hairman DATE ISSUED MAR 31 1987 AT1[ST /s/ Mary Ann Hefner lfary Ann Hefner, Chief Clerk 3 CL111IrTCATE OF ADJLD1CATI01~ CLPTIFICATE OF ADJUDICATION 03-4799 OWNER Citv of Irvirg P 0 Box 152^88 Irving, Texas 75015-2288 COUN1riES Delta ane Fopkins bATEPCOURS1 bouth Sulphur River, tributary of the Sulphur Rig L r PRIOPITY DATE November 10, 1065 BAS114 Sulphur River WHEREAS, bl final decree of the 202nd Judicial District Court of Bowie County, in Cause No 86-C1702-t02 In Re The Adjudication of Water Rights in the Sulphur River Basin dated December 17, 1986 a right was recognized under Permit 2337 authorizing the City of Irving to appropriate waters of the State of Texas as set forth below, WHERLIS, by Public Law 780, 83rd Congress, 2d Session 1954, as amended, Cooper Dam and Reservoir on tFe South Sulphur River in the SulpbLr Piver Basin, a multi-purpose federal project located in Delta and Hopk-iis Countie- Texas, was duly authorized, WHEREAS, a contrlct has been negotiated between the United StateG of America and local political subdivisions whereby water supply stordbc space ii, Cooper Reservoir has been allocated between elevation 440 0 and 415 5 feet above mean sea level as follows Percent of Water Supvly Space Sulphur Piver Municipal Water District forth Texas Municipal Water District City of Irving, Texaq TOTAL 26 282 36 859 36 859 100 00 Lsable Storage (acre-feet) 71,75C IOC 625 100,625 273,000 Initially in the silt storage space below elevation 415 5 feet msl there will be 37,000 acre-feet, the water in which may be, with the approval of tie federal contracting officer, diverted proratably by the political subdi- visionb abovL ridned in the percentages set forth, NOW, THEREFORE, thib certificate of adjudic>tion to appropriate w>Ltrs cf the State of Texas in thL Sulphur River Basin ib issued to tFe City of Ir%,irg, subject to the following terms and conditions Certificate of Aejudic.dtion 0j-4799 1 IMPOUND? LNT Owner is authorized to impound in Cooper Rese n oir between ele- vation 415 5 feet and 440 0 feet above mean sel level not to exceed 100,625 acre-feet of water and below elevation 415 5 feet msl not to exceed 13,640 acre-feet, making a total of 114,265 acre-feet of water Stdtion 19+00 on the centerline of the dam rill be located at a point which bears S 69°30'W, 3640 feet from the northeast corner of the W W Langham Survey, Abstrdct 1218, Hopkins County, Texas 2 USE Owner is authorized to divert and use from Cooper Reservoir not to exceed 44,820 acre-feet of water per annum for municipal purposes and 9180 acre-feet of water per arnum for industrial purposes within the service area of the City of Irving 3 DIVERSION Owner shall, prior to construction or installation of any diversion facilities, submit to the Texas Water Commission for its approval data concerning the point and method for diversion of water and the maximum rate of diversion 4 PRIORITY The time priority of owner's right is November 19, 1965 5 SPECIAL CONDITIONS A Water diverted but not consumed shall be returned to the Trinity River Basin at the owner's disposal plant and the disposal plants of the industrial users B Construction or installation of all works herein authorized or requir,d shall commence and be completed within the time limits as established by the Commission C Owner accepts this certificate of adjudication with full knowledge and consent that the State of Texas retains the right to regulate, by permit from the Commission, intro- ductions into and withdrawals from Cooper Reservoir of such volumes of water downstream or other sources as may be devel- oped under the Texas Water Plan The locations of pertinent features related to this certificate are sFown on Page 2 of thL Sulphur River Basin Certificates of Adjudication N.ps copies of which are lucated in the office of the Texas Water Commis~rcn, Austin, Texas 2 Cu tificate cf Adjudreition 03-4709 This certificate of adjudication is issued subject to dl terms, con- d-tions and pro~isioub it the final decree of the 202nd Judicial Distric, Court of Bowie County, Texas, in Cause No 86-C1/02-202 In Be The Ad ucica- tion of Water Right.. -n the Sulphur River Basin dated Decerber 17, 1986 and supersedes all rights of the owner asserted in that cause This certificate of adjudication is issued cub3ect to benior and superi- or water rights in the Sulphur River Basin This certificate of adjudication is issued subject to the obligations of the State of Texas pursuant to the terms of the Red River Compact This certificate of adjudication is issued subject to the Rules of the Texas Water Commission aua its continuing right of super%,sion of State Mater resources consistert with the public policN of the State as set forth t- the Texas Water Code TEXAS WATER COMMISSION Paul Hopkins, Chairman DNTC ISSUED MAR 3 1 1987 ATTEST Mary Ann lAdner, Chief C1 k 3 January 10 1991 UPPER TRINITY REGIONAL WATER DISTRICT REGIONAL SURFACE WATER SUPPLY WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN Prepaied by Uppei Trinity Reaional Watei District P 0 Di awei 30`) Lewisville Tp.az, 750c7 (319) 31> 1228 TABLE OF CONTENTS Title Page SECTION I INTRODUCTION 1-4 SECTION II LONG-TERM WATER CONSERVATION PLAN 5-6 SECTION III DROUGHT CONTINGENCY PLAN APPENDIX A - Copy of Drought Contingency Plan for City of Dallas APPENDIX B - Listing of Water Conservation Literature APPENDIX C - Public Information Suggestions 7 SECTION I INTRODUCTION The 69th Texas Legislature passed House Bill (HB) 2 and House Joint Resolution (HJR) 6 in 1986 commonly referred to as the Texas Water Plan this Act requires a Water Conservation Plan and Drought Contingency Plan by political subdivisions seeking financial assistance from the State Water Loan Assistance Fund or the Texas Water Development Board (TWDB) The Water Plan as outlined in HB 2 was approved by Texas voters in a statewide election on November 6 1985 becoming an amendment to the Texas Constitution The TWDB has developed guidelines for Water Conservation and Drought Contingency Flans Efficient utilization of all water resources is necessary if continued development is to occur on a statewide basis Water a basic human need will be a maior factor in development Conservation of water is necessary if we are to meet future needs at reasonable cost and without sacrificing quality of life standards The need for conservation of water resources is generally recognized to be a high priority item for the State of Texas During the 1989 regular session of the Texas Legislature HB 3112 was passed and became effective June 16 1989 to create the Upper Trinity Regional Water District The District is authorized to develop and operate regional water and wastewater systems The District is implementing a regional surface water supply pi oar am A UPPER TRINITY REGIONAL WATER DISTRICT The District was created by the Texas Legislature on June 16 1989 and will be made up of public agencies who become members Under terms of HB 3112 that created the District eligible agencies in Denton County have until June 16 1991 to become members Nonetheless 11 public agencies have already e\ecuted membership contracts of which 6 are planninq to participate in Phase I of the Regional Surface Water Supply Proqiam In addition 3 Water Supply Corporations will be participatinq in the protect ac cuetomer entities Other agPncles will iozn the regional system in later phases B PLANNING AREA-PROPOSED PROJECT The District consists of portions of cities whose city County Only a portion of participating in Phase I Nonetheless the District is capability to serve future cu Plan Denton County plus out-of-county limits are only partly in Denton the ultimate planning area is of the Regional Water System incorporating into its plans the stomers consistent with its Master Phase I consists of treated water service to Argyle Water Supply Corporation Bartonville Water Supply Corporation Town of Coiiuth City of Highland Village Lake Cities Municipal Utility Authority Mustang Water Supply Corporation Town of Northlake City of Pilot Point City of Sanger In addition the City of Denton is a participant in certain facilities The City of Denton has invited the District to be an equity partner in its new North Water Treatment Plant near Ray Roberts Lake In addition the District and Denton will be sharing capacity in certain major transmission lines A strategic element of Phase I is Denton s offer to transport water through its distribution system to avoid construction of a cross city transmission line The cooperation of the City of Denton in the Protect is indicative of the basis of the entire regional program It is founded on a spirit of sharing cooperation and mutual benefit Those values will be incorporated into the Conservation Plan Most of the entities participating in the protect presently use ground water foi all or a portion of their water supply In Denton County ground water resources are very limited One of the purposes of the project is to allow utilities to begin the process of converting to surface water The protect includes the construction of a new 10-million gallon per day water treatment plant near Ray Roberts Lake in north Denton County It is proposed that Denton own 51% of the plant and the District own 49% Transmission lines and pumping facilities will be constructed to provide for the delivery of treated water to the boundary of each customer entity The treated wate2 will be provided on a whclpsale basis each cuctomei entity will tctain total tesponsibtlity for retail sei*vice to each local customer Construction of the project is anticipated to start in 1991 and is scheduled to be complete by 1993 Each entity has contracted for sufficient capacity in the system to provide for their peak demands through 1996 according to the following tabulation Argyle Water Supply Corporation 0 4 mgd Bartonville Water Supply Corporation 1 0 mgd Town of Corinth 1 9 mgd City of Highland Village 1 0 mgd Lake Cities Municipal Utility Authority 0 9 mgd Mustang Water Supply Corporation 0 1 mgd Town of Northlake 0 3 mgd City of Pilot Point 0 2 mgd City of Sanger 1 0 mgd City of Denton 6 6 mgd *City of Denton to participate in certain facilities but will provide for their own treated water by direct ownership of treatment plant capacity When service is first available in 1993 there will be excess capacity By 1996 or 1997 it is anticipated that the peak demand will approach the plant capacity being constructed in Phase I As required subsequent phases will be constructed to provide a continuing adequate water supply for the growth of Denton County C PIANNTNC FOR WAT R ON RVATTON Participating entities who will be purchasinq water include 5 cities 1 water authority and 3 water supply corporations Each contract provides that the wholesale customer will develop a water conservation plan appropriate and adequate for local conditions and circumstances Because the cities have ordinance powers they will have greater capability to manage and enforce a water conservation program To encourage local initiative and to respond to the diversity of powers needs and circumstances the District plans to let each entity develop their own conservation program The District will provide general guidelines will implement certain county-wide activities, will make available conservation literature and will provide technical resources upon request Each entity will develop its own plan adopt itE own rules develop its own retail rates and will communicate directly with its customers D NEED FOR AND GOALS OF THE PROGRAM The project at hand is the development of a regional surface water supply system The participating entities currently rely primarily on ground water and the County has experienced a general decline in the ground water table Many of the entities are small and have limited experience with formal water conservation programs Many of the entities have experienced freauent shortages either in supply or in ability to deliver Customers have not always been able to meet their needs because of system restraints With the advent of the regional system many of the entities will have an adequate water supply for the first time Therefore it may take a few years to determine what the normal and full water supply needs are Consequently until the water supply and usage patterns stabilize it may not be possible to accurately observe or measure the results that a water conservation program may achieve The District is committed to water- conservation to avoid waste and to save costs--but most importantly to extend the adequacy of the water resources available to it Also conversion from limited ground water supplies is part of the District s Water Conservation Program Accordingly the District will provide leadership and assert a sense of urgency throughout its service area to promote water conservation SECTION II WATER CONSERVATION PLAN The District s Plan includes two facets A Activities and Programs the District will manage to directly promote water conservation on a regional basis H Review and approval of plans to be developed and submitted by member entities This plan addresses primarily the scope of part A above which will be primarily education and information A EDUCATION AND INFORMATION The ultimate success of any water conservation program is dependent on an informed public The customers must have an awareness of the benefits and needs for water conservation They must also have the knowledge of how to contribute to the plan The public education program is designed to provide information to as many of the useis as Dossible The elements of the education program are described below An InformativP~r}oQL_SY~S3aD Thi- element of the pioglam will include poster contests and classroom presentaticns including curriculum aids and materials and tpachpr workshops A t, eX tura_ Program. The District will provide conservation brochures to all customer entities The brochures will cover topics such as saving water outdoors and indQuis use of native plants and wiidflowers law flow showerheads and the use of displacement devices to reduce water consumption by toilets SGeakin Enauaements and Pioaranw The District will promote water concerva ton ideas t, env ionmental group- garden clubs senior citizen-- center-- vouth gr~)up_ and civic groups Public Service Announcements The District will promote the importance of conservation by placing radio television or newspaper announcements during the high water using seasons of spring and summer Regional Coordination The District will coordinate with other water suppliers and with customer entities to benefit all authorities in promoting water conservation within Denton County Water Rates The District has a wholesale rate policy that will promote the wise and efficient use of water by charging directly for the cost of meeting peak demands The District will also assist member entities in developing conservation oriented retail late structures Ground Water The District will monitor the performance of ground water systems and acquifers (by use of reports from TWC and TWDB) and will encourage members to continue to convert to surface water supplies is the primary water supply source B GUIDELINES FOR PLANS OF MEMBER, RETAIL UTILITIES The District will encourage each utility to develop plans tc address 1 Education of the Public and Information to each customer 2 Plumbing codes to promote conservation 3 Retrofit of existing plumbing devices where warranted 4 Conservation oriented rate structure 5 Universal metering and meter repair and replacement program 6 Water conservation landscaping practices 7 Water audits and leaf detection H Recycling and reuse of treated wastewater wherever pi actical 9 Conversion to surface water supplies 10 Implementation and enforcement 11 Drought contingency plan SECTION III DROUGHT CONTINGENCY PLAN The District will buy raw water from the City of Dallas and will accordingly be covered by their drought contingency plan Upon notification from Dallas of the implementation of any level of contingency or curtailment in accordance with their plan the District will take action as necessary to notify limit or curtail service on a pro rata basis to its customers These actions will be pursuant to the contract between the District and Dallas and can be implemented by the General Manaqer The nature of the service being provided by the District on d wholesale basis to its members dictates a limited response to drought contingencies However each of the Members (each of which operate retail utility systems) are affected in many ways by drought condition and have optional and flexible ways to address the conditions and circumstances Therefoie as part of the water conservation plan to be prepared by each of the District s members that purchase water from the District the Member will be required to include a Diouaht Contingency Plan UPPER TRINITY REGIONAL WATER DISTRICT Appendix A Listing of Water Conservation Literature Water Conservation and Diought Contingency Plan TEXAS MATER MATER DEVELOPMENT BOAxD CONSERVATION LITERATURE TITLE ALISHM ST DESCRIPTION MClli Water...Na1f-A-Iknidred Ways TMDA Pamphlet A pap" U JIM 11116 •br Awing Ideas no hphlot • Pat" for sualnea" and I"Natrye Now T• love weer Swuld" "M Pamphlet • pogo. The am New To Rove weer Moth THOS Pamphlet A Pop" IM Nam - A Neaeeeceres aid" to weer iM "M Booklet as Pop" and Rotor cosser"tt"N DAP Irrigativo TOM ►aphlet a paps" Lawn Natering Guides TMDI 11/!' a r I sides Plastic Card Toilet Tank Look Boteater TMDI I Tablets Iabletae fkmieipal and Commercial Mater TMW Pamphlet with a pap" C nservatiam Serviee" Tear-wt Guidelines for Municipal Water TMOO loose-leaf 16 paps Conservation and brought Contingency Planning and Program Development Nom To Iarlsoage NKC Pamphlet to page" Tears Sceovleontennial Native TIMMS Pamphlet S pages Plant Landscape (located in Austin) Guide for locating end Reducing v= Guidebook 70 page" Unaccounted for Water Through the Use of the Mater Audit and Look Detoetien guide for Designing Conservation 1MOS Guidebook So paps Water Reza Structures liedel Water Ordinances TMDI Guidebook IS pages The Authority of Citless Water T= Paper S pages Utilities" and Water Distrists to Regulate and enforce Water Cemervatien Neasrres Al t18i ALILNO g1 MIUMMLO-N UMM Toes Water bsourses and "M Peter S1 pops Conservation 11ftetont use M Water In pow TACK Boektot fro papa Garton and "w"Ip W1496) Lfrlsap 0 qy of Awttn Booklet Bo page. Oster Pressure bdeeteg walvo$ o Watts Amplater Booklet 11 pages Texas Native Tree and Plant TDA Seek tit paps olroeleryr 1106 0 Seurses of Loot Dotsotlen TIRO Clot 1 pages yutp.ant and lemons 0 seureos of Water Bovimp Bovbea 0 TM flat 11 Cops TM coat of conventional water TW01 raper 1 pops Supply Development and Treatment a Potent/e1 for Utilisation of IUD Paper 11 Cops Sracklsh Groundwater o Guidelines for Water buss IPA Book 105 Mies IPA-600/8-WO56 a Guidelines for Nunfolpal water I= Laose•Lcof 10 paps Conservation and orovght Contingency Planning and program Development a water conservation end Drought I= Loose-Loaf SO pops Contlnpnoy Plan Development Procedures 0 Municipal water conservation TM Notebook d sections Warkahep Notebook 0 These Item are available other In single copies or in the Municipal Water Conservation Natebook. Nomovery tin Board is net able to give out the Notebook$ but eon loan a copy for a period of two wake. Grdor to 1000 Lots. Pbrovfalloms AMA American water Works Association OA Environmental Protection Agency If1lM n Nigh plains Underground Water Conservation Vistriet No I IUM Motional lorloespe Councils Into SCi USDA • Soil Conservation Service TAtli Texas Agricultural 1Atemfon Service TDA Tones Department of Agriculture T11o0 Texac voter Development Board L"] UPPER TRINITY REGIONAL WATER DISTRICT Appendix 8 Public Information Suggestions Water Conservation and Drought Contingency Plan CONSERVATION TIPS AKIN- THE BATHROOM 1. Take a shower Instead of filling the tub and taking a both. Showers usually use lass water then tub baths. Z. Install a low-flow shower head which restricts, the quantity of flow at So pat to no more than 7.6 gallons per minute. 3. Take short showers and install a cutoff valve or turn the water off while soaping and back on again only to rinse. s. Do not use hot water when cold will do. Water and energy can be saved by washing hands with soap and cold water, hot water should only be added when hands are especially dirty. S. Reduce the level of the water being used In a bath tub by one or two inches if a shower is not available. ' i. Turn water off when brushing teeth until It is time to rinse 7. Do not let the water run when washing hands. Instead, hands should be wet, and water should be turned off while soaping and scrubbing and turned on again to rinse. A cutoff valve may also be Installed on the foucet. i. Shampoo hair In the shower. Shampooing in the shower takes only a little more water than is used to shampoo hair during a bath and much less than shampooing and bathing separately. f. Hold hot water In the basin when shaving instead of letting the faucet continue to run. -81- If. Test tolleta for leaks. To test for a leak, a few drops of food coloring can be added to the water In the tank. The toilet should trot be flushed. The customer can then watch to see If the coloring appears In the bowl within a few minutes. If It does, the fixture mods adjustment or repalrr. 11. Use a toilet tank displacement device. A one-gallon plastic milk bottle can be filled with stones or with water, recapped, and placed In the toilet tank. This will reduce the amount of"water In the tank, but still provide enough for flushing. (Bricks which some people use for this purpose are not recommended, sins they crumble eventually and could damage the working mechanism, necessitating a call to the plumber). Displacement devices should never be used with new low-volume flush toilets. 12. Intail faucet aerators to reduce water consumption 13. Never use the toilet to dispose of cleansing tissues, cigarette butts, or other trash. This can waste a great deal of water and also places an unnecessary load on the sewage treatment plant or septic tank. 14. Install a new low-volume flush toilet that uses 3.5 gallons or less per flush when building a new home or remodeling a bathroom. B. IN THE KITCHEN 1. Use a pan of water (or place a stopper In the sink) for rinsing pots and pans and cooking implements when cooking, rather then turning on the water faucet each time a rinse Is needed. 2. Never run the dishwater without a full lad. In addition to saving water, expensive detergent will last longer and a significant energy saving will appear on the utility bill. -82- 3. Use the sink disposal sparingly, and never use it for just a few scraps. Keep a container of drinking water in the refrigerator. Running water from the top until it Is coot is wasteful. better still, both water and energy an be moved by keeping cold water in a picnic jug on a kitchen counter to avoid opening the refrigerator door frequently. S. Use a small pan of cold water when cleaning vegetables rather than letting the fauat run. i. Use only a little water In the pot and put a lid on it for cooking most food. Not only does this method save water, but food Is more nutritious since vitamins and minerals are not poured down the drain with the extra cooking water. 7. Use a pan of water for rinsing when hand washing dishes rather than running the faucet. t. Always keep water conservation in mind, and think of other ways to save In the kitchen. Small kitchen savings from not making too much coffee or letting ke cubes matt in a sink can add up in a year's time. C. 114 THE LAUNDRY: 1. Wash only a full load when using an automatic washing machine (32 to so gallons are required per load). Use the lowest water level setting on the washing machine for light lads whenever possible. Ss Use cold water as often as possible to save energy and to conserve the hot water for uses which cold water cannot serve. (This is also better for clothing made of today's synthetic fabrics.) -113- 1D. FOR APPLIANCES AND PLUMBING 1. Check water requirements of various models and brands when considering purchasing any new appliance that uses water. Some use loss water than others. 2. Check all water line connections and faucets for looks. If the cost of water Is $1.00 per 1,000 gallons, one could be paying a large bill for water that simply goes down the drain because of leakage. A slow drip can waste as much as 170 gallons of water EACH DAY, or 5,000 gallons per month, and can add as much as '$5.00 per month to the water bill. 2. Learn to replan faucet washers so that drips can be corrected promptly. It is easy to do, costs very little, and can represent a substantial amount saved In plumbing and water bills. 4. Check for water leakage that the customer may be entirely unaware of, such as a leak between the water meter and the house. To check, all indoor and outdoor faucets should be turned off, and the water meter should be checked. If it continues to run or turn, a leak probably exists and needs to be located 5. Insulate all hot water pipes to avoid the delays (and wasted water) experienced while waiting for the water to "run hot." 0. Be sure the hot water heater thermostat Is not set too high Extremely hot settings waste water and energy because the water often has to be cooled with cold water before It can be used 7. Use a moisture meter to determine when house plants need water. More plants die from over-watering than from being on the dry side. -go- 1 lE OUST-OF-DOORR USE: 1. Water lewns early In the morning during the hotter summer months. Much of the water used on the lewn can simply evaporate between the sprinkler and the gross. 2. Use a sprinkler that produces large drops of water, rather then a fine mist, to avoid evaporation. 2. Turn soaker hoses so the holes are on the bottom to avoid evaporation. 4. Mater slowly fbr better absorption, and never'enter In high winds. S. Forget about watering the streets or walks or driveways. They will never grow a thing. 4. Condition the soil with compost before planting grass or flower beds so that water will soak In, rather than run off. 7. Fertilize lewns at least twice a year for root stimulation. Grass with a good root system makes better use of less water. S. Learn to know when grass needs watering. If it has turned a dull grey-green or if footprints remain visible, It is time to water. f. Do not water too frequently. Too much water can overload the soil so that air cannot get to the roots and can encourage plant diseases 10. Do not over-water. Soil can absorb only so much moisture and the rest simply runs off. A timer will help, and either a kitchen timer or an alarm clock will do. An Inch and one-half of water applied once a week will keep most Texas grasses alive and healthy. 11. Operate automatic sprinkler systems only when the demand on the town's water supply Is lowest. Set the system to operate between 4:00 a.m. and 6:00 a.m. -05- 12. Do not scalp lawns when mowing during hot weather. Taller gross holds moisture better. Rather, grass should be cut fairly often, so that only 112 to 314 Inch is trimmed off. A better looking lawn will result. 13. Use a watering an or hand water with the hose in small areas of the hewn that need man troquent watering (those near walks or driveways. or In especially hot, sunny spots). 14. Learn what types of gross, shrubbery, and plants do best In the area and In which parts of the lawn, and than plant accordingly. If one has a heavily shaded yards, no amount of water will sake roses bloom. In especially dry sections of the state, attractive arrangements of plants that are adapted to and or semi-arid climates should be chosen, 15. Consider decorating areas of the lawn with rocks, gravel, wood chips, or other materials now available that require no water at all. 16. Do not "sweeps walks and driveways with the hose. Use a broom or rake Instead. 17. Use a bucket of soapy water and use the hose only for rinsing when washing the car. -116- UPPER TRINITY REGIONAL WATER DISTRICT City of Dallas Drought Contingency Plan Water Conservation and Drought Contingency Plan 1UNCIL CHAMBER 900366 January 24, 1990 Whereas, Section 49-20 of the Dallas City Code requires the Director of Dallas Water Utilities to promulgate and submit an Emergency Water Management Plan to the City Council for approval, and, Whereas, development of a Water Conservation Plan to mitigate increases in future water demands is desirable and was required by the Texas Water Development Board (TWDB) as a condition for receiving a $100,000 grant as partial funding for Dallas' Long Range Water Supply Study , and Whereas, the Wholesale Water Customers of Dallas and the TWDB provided input to the study and to the Water Conservation and Emergency Water Management Plans, and, Whereas, the thirteen member Citizen's Advisory Committee appointed by Annette Strauss, Mayor of the City of Dallas, to represent the citizens of Dallas and to provide input to the Long Range Supply Study also provided input to both the Emergency Water Management and the Water Conservation Plans, Now, Therefore, [BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS,] Section 1 The attached Water Conservation Plan and the attached Emergency Water Management Plan revised December 22, 1989 are hereby approved and adopted Section 2 That the City Staff be directed to undertake necessary actions to implement the adopted plans Section 3 That this resolution shall take effect after its passage in accordance with the provision City of Dallas and it is accordingly so resolved APPROVED BY CITY COUNCIL JAN 84 1990 /4~ CRY Saannary AMAOVED ) / ,T t "Ovo HEAD OF DEPARTMENT 704 OF /V,ANDE JM 1NM4nEE ~ immediately from and of the Charter of the AMNOV[D IAA ADER 9W4M A EMERGENCY WATER MANAGEMENT PLAN STAGE 1 WATER WATCH Tri ggeri ng Cri teri a Total raw water supply in connected lakes drops below 55% of total conservation storage, demand exceeds 90% of deliverable capacity for three consecutive days, or short term deficiencies in distribution system limit supply capability Actions Available (applied locally or to all customers, as necessary) -The City Manager or his designee requests voluntary reductions in water use -Accelerate public information efforts to teach and encourage reduced water use -Staff will begin a review of the problems which initiated the Stage 1 actions -Notify major water users and work with them to achieve voluntary water use reduction Revised December 22, 1989 -1- -Prohibit city government use of water for street washing, vehicle washing, operation of ornamental foundations and all other non-essential use -Request a reduction in landscape watering by city government -Determine effect on wholesale customers and notify them of impact Advise wholesale customers of actions being taken within Dallas and solicit implementation of like procedures in wholesale customer cities Termination Criteria -All initiated actions will remain in effect until the condition which triggered STAGE 1 has been alleviated If STAGE 1 is initiated because of excessive demands, all initiated actions will remain in effect through September 30 of the year in which they were triggered, or until the director determines that these measures are no longer required Revised December 220 1989 -2- EMERGENCY WATER MANAGEMENT PLAN STAGE 2 WATER WARNING Triggering Criteria Total raw water supply in connected lakes drops below 50% of total conservation storage or demand exceeds 95`E of deliverable capacity for two consecutive days STAGE 2 actions will not ordinarily be taken until STAGE 1 actions have first been implemented Actions Available (applied locally or to all customers, as necessary) -Initiate engineering studies to evaluate alternatives should conditions worsen -Continue public information efforts regarding water supply conditions and conservation efforts Begin mandatory water use restrictions as follows Prohibit hosing off of paved areas, buildings or windows, operation of ornamental foundations, swimming pool draining followed by refilling, washing or rinsing vehicles by hose, using water in such a manner as to allow runoff or other water wastes Revised December 22, 1989 -3- Exceptions Vehicles may be washed or rinsed with a hose at commercial car washes, vehicles may be washed at any location with a bucket or other container Limit landscape watering at each service address to once every five days based on the last digit of the address per the schedule below Last Digit of Address 0 and 5 1 and 6 2 and 7 3 and 8 4 and9 Allowed Water Dates 5th, 10th, 15th, 20th, 25th, 30th 1st, 6th, 11th, 16th, 21st, 26th 2nd, 7th, 12th, 17th, 22nd, 27th 3rd, 8th, 13th, 18th, 23rd, 28th 4th, 9th, 14th, 19th, 24th, 29th No watering will be allowed on the 31st Apartments, office building complexes or other property containing multiple addresses will be identified by the lowest address number Where there are no numbers, a number will be assigned by the director These restrictions also apply to city government facilities Exceptions Foundations, azaleas, and new plantings (first year) of trees and shrubs may be watered with a hand-held or soaker hose on any day for up to two hours Nurseries may water plant stock only without restrictions Revised December 22, 1989 -4- Public gardens, including the Dallas Arboretum and the Dallas Civic Garden Center, may water without restrictions Golf courses may water greens and tee boxes without restrictions Other areas, including fairways, must adhere to the five-day rotational watering schedule listed in Stage 2 based on their address -Advise wholesale customers of actions being taken within Dallas and solicit enforcement of like procedures in wholesale customer cities Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Dallas' retail customers or, where applicable, may reduce rate-of-flow controller settings by 5% Enforcement -Violations of restrictions will result in a warning, and then a citation may be issued with a fine not to exceed $1,000 per incident Termination Criteria -All initiated actions will remain in effect until the conditions which triggered STAGE 2 have been alleviated If STAGE 2 is initiated because of excessive demands, all initiated actions will remain in effect through September 30 of the year in which they were triggered or until the director determines that conditions exist which will allow removal of STAGE 2 actions Revised December 22, 1989 -5- 4ERGENCY WATER MANAGEMENT PLAN STAGE 3 WATER EMERGENCY Trigge.ring Criteria Total raw water supply in connected lakes drops below 35% of total conservation storage or demand exceeds 95% of deliverable capacity for five consecutive days STAGE 3 actions will not ordinarily be taken until STAGE 2 actions have first been implemented Actions Available (applied locally or to all customers, as necessary) -Implement recommended engineering alternatives -Continue implementation of all restrictions from previous stages -Prohibit residential or commercial lawn watering and car washing between the hours of 9 a m and 9 p m on scheduled days -Foundations, shrubs, and trees may be watered with soaker or hand-held hose on the same five-day rotational basis as landscapes for up to two hours -Golf courses using treated water for grounds watering must adhere to the following schedule Greens and tee boxes may be watered only between the hours of 9 p m and 9 a m other areas, including fairways, must adhere to the five-day rotational watering schedule listed in Stage 2 based on their address Revised December 22, 1989 -6- -Public gardens, including the Dallas Arboretum and the Dallas Civic Garden Center, may water only between the hours of 9 p m and 9 a m -Nurseries may water plant stock only between the hours of 9 p m and 9 a m -Advise wholesale customers of actions being taken within Dallas and solicit enforcement of like procedures in wholesale customer cities Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Dallas' retail customers or, where applicable, may reduce their rate-of-flow controller settings by an additional 5% -All rates for retail water usage in excess of 4,000 gallons per month shall be increased by 10% Enforcement -Violations of restrictions will result in a warning, and then a citation may be issued with a fine not to exceed $1.000 per incident Termination Criteria -All initiated actions will remain in effect until the conditions which triggered STAGE 3 have been alleviated If STAGE 3 is initiated because of excessive demands, all initiated actions will remain in effect through September 30 of the year in which they were triggered or until the director determines that conditions exist which will allow removal of STAGE 3 actions Revised December 22, 1989 EMERGENCY WATER MANAGEMENT PLAN STAGE 4 WATER CRISIS Triggering Criteria Total raw water supply in connected lakes drops below 20% of total conservation storage or demand exceeds 100% of deliverable capacity for two consecutive days STAGE 4 actions will not ordinarily be taken until STAGE 8 actions have first been implemented Actions Available (applied locally or to all customers, as necessary) -Continue implementation of all restrictions from previous stages -Prohibit all commercial and residential landscape watering including golf courses with the following exceptions Nurseries' plant stock may be watered between the hours of 9 p m and 9 a m once every five days based on the last digit of their address per the schedule in Stage 2 Public gardens, including the Dallas Arboretum and the Dallas Civic Garden Center, may water between the hours of 9 p m and 9 a m once every five days based on the last digit of their address per the schedule in Stage 2 Revised December 22, 1989 -8- Golf course greens and tee boxes may be watered between the hours of 9 p m and 9 a m once every five days based on the last digit of their address per the schedule in Stage 2 Foundations may be watered for a two hour period between the hours of 9 p m and 9 a m with soaker or hand-held hose on the five-day rotational basis prescribed for landscape watering in Stage 2 -Any and all washing of vehicles is prohibited -All commercial water users may be required to reduce water consumption by a percentage determined by the director -Advise wholesale customers of actions being taken within Dallas and solicit enforcement of like procedures in wholesale customer cities Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Dallas' retail customers or, where applicable, may reduce their rate-of-flow controller settings by a percentage determined by the director This percentage reduction shall be equivalent to the reduction in consumption imposed on Dallas retail customers -All rates for retail water usage in excess of 4000 gallons per month shall be increased by an additional 10X, Revised December 22, 1989 -9- Enforcement -Violations of restrictions will result in a warning, and then a citation may be issued with a fine not to exceed $1,000 per incident Termination Criteria -All initiated actions will remain in effect until the conditions which triggered STAGE 4 have been alleviated If STAGE 4 is initiated because of excessive demands, all initiated actions will remain in effect through September 30 of the year in which they were triggered or until the director determines that conditions exist which will allow removal of STAGE 4 actions Revised December 22, 1989 APPLICATION NO IN THE MATTER OF APPLICATION NO OF SULPHUR RIVER MUNICIPAL WATER DISTRICT AND THE CITY OF COMMERCE, TEXAS BEFORE THE TEXAS WATER COMMISSION RAW WATER SUPPLY CONTRACT BETWEEN SULPHUR RIVER MUNICIPAL WATER DISTRICT AND THE CITIES OF COMMERCE, COOPER, AND SULPHUR SPRINGS, TEXAS THE STATE OF TEXAS § § RAW WATER § SUPPLY CONTRACT COUNTY OF DELTA § This raw water supply contract (the "Agreement") is made and entered into between the Sulphur River Municipal Water District ("District"), a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Article XVI, Section 59, of the Texas Constitution and Article 8280-165, as amended, Vernon's Texas Civil Statutes, and the City of Commerce ("Commerce") , the City of Sulphur Springs ("Sulphur Springs"), and the City of Cooper ("Cooper"), bodies politic and corporate of the State of Texas, incorporated and operating under provisions of the Texas Constitution RECITALS 1 The District is authorized by its enabling legislation (Article 8280-165, as amended, Vernon's Texas Civil Statutes) to acquire any and all rights in and to water conservation storage and water storage capacity in Cooper Reservoir (the "Project"), and the right to take water from the Project, pursuant to any contract which the District may make with the United States of America, acting through the United States Army Corps of Engineers (the "Government") in reference to such rights 2 The District, relying on the commitments of the Cities described below in Recital No 3 and acting on behalf of each of the Cities, entered into a contract with the Government on March 29, 1968 for the purchase of 26 282% of the water supply storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level, or 71,750 acre-feet of storage space (17,750 acre-feet for immediate use and 54,000 acre-feet for future use) On July 15, 19761 the District entered into a supplemental contract with the Government, revising and amending the responsi- bilities and rights of the District and the Government under the original contract The provisions of the above referenced contract and the supplemental contract between the District and the Government (collectively, the "Federal Contract") are adopted by reference herein for all purposes as if copied verbatim herein 3 Each of the Cities adopted resolutions in 1965 requesting and obligating themselves to the District for the respective acre- feet of water storage in the Project set forth below a Commerce - 30,000 acre-feet (8,000 acre-feet for immediate use and 22,000 acre-feet for future use), b Cooper - 8,000 acre-feet (2,000 acre-feet for immediate use and 6,000 acre-feet for future use), and c Sulphur Springs - 33,750 acre-feet (7,750 acre-feet for immediate use and 26,000 acre-feet for future use). 4 The District was granted a water use appropriation by the Texas Water Rights Commission on January 4, 1966, Permit No 2336, for 26 282% of the water supply storage space in the Project -2- between elevations 440.0 and 415.5 feet above mean sea level, with usable storage of 71,750 acre-feet of water, and the right to divert and use not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the District 5 Permit No. 2336 was subsequently adjudicated by the Texas Water Commission, the successor agency of the Texas Water Rights commission, pursuant to the provisions of the Texas Water Rights Adjudication Act, codified in Texas Water Code § 11 301, et seq , and the Texas Water commission subsequently issued Certificate of Adjudication No 03-4797 to the District on March 31, 1987, authorizing the District the right to impound 71,750 acre-feet of water in the Project between elevations 440.0 and 415 5 feet above mean sea level, and the right to divert and use not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the District 6 The District is authorized in its enabling legislation to enter into contracts with cities and others for supplying water from the Project. 7 Commerce, Sulphur Springs, and Cooper want to purchase, and the District is willing to sell, raw water from the District's share of the water conservation storage space in the Project, subject to the terms and conditions of this Agreement and all -3- applicable rules and regulations of the District and state and federal agencies AGREEMENT For and in consideration of the foregoing, and the mutual promises, covenants, obligations, and benefits described in this Agreement, the District and Commerce, Sulphur Springs, and Cooper agree as follows Section 1 Definitions The following terms and expressions as used in this Agreement shall have the following meanings, unless the context clearly shows otherwise A "Adjusted Annual Payment" means the Annual Payment, as adjusted during or after each Annual Payment Period, as provided for in this Agreement B "Agreement" means this agreement C "Annual Payment" means the amount of money to be paid to the District by each of the Cities during each Annual Payment Period as its proportionate share of the Annual Requirement D "Annual Payment Period" means the period beginning on October 1 of each calendar year and ending on the last day of September of the next calendar year, provided, that the first Annual Payment Period under this Agreement shall be the period of October 1, 1990 through September 30, 1991 E "Annual Requirement" means the total amount of money required for the District to pay all Federal Contract Payments and -4- all District Operation and Maintenance Expenses during any one-year period beginning on October 1 of each calendar year and ending on the last day of September of the next calendar year, provided, that the first Annual Payment Period under this Agreement shall be the period of October 1, 1990 through September 30, 1991 F "Cities" means Commerce, Sulphur Springs, and Cooper, cumulatively G "City" means Commerce, Sulphur Springs, or Cooper, individually H "Commerce" means the city of Commerce I "Cooper" means the City of Cooper J. "Date of Deliberate Impoundment" means the date upon which the Project becomes operational for storage of water for any purpose as authorized and provided in the Federal Contract K "District" means the Sulphur River Municipal Water District L "Diversion Facilities" means the water supply facilities owned or operated by, on behalf of, or with the consent and approval of a City, used or capable of use in furnishing water from the Project, including pumps, transmission lines, meters and metering equipment, and associated buildings and appurtenances M. "Federal Contract" means the contract, as amended, between the District and the Government as referenced in Recital No 2 of this Agreement -5- N "Federal Contract Payments" means the amounts required to be paid by the District to the Government for the District's rights in the water conservation storage space in the Project under the Federal Contract and the amounts required to be paid by the District to the Government for any other financial obligations of the District under the Federal Contract O "Government" means the United States of America acting by and through the United States Army Corps of Engineers or its successor agencies P "Operation and Maintenance Expenses" means all costs and expenses of operating, maintaining and administering the District's interest in the water conservation storage space in the Project, including (for greater certainty but without limiting the generali- ty of the foregoing) the costs of supervision, engineering, accounting, auditing, legal services, supplies, other services, administration of the District, and equipment, as necessary, to comply with the Federal Contract and with other regulatory requirements necessary to protect and preserve the District for the sole purpose of protecting the District's interest in the water conservation storage space in the Project and any sales or use taxes, or taxes, assessments, or charges of any similar nature incurred by the District from the gathering, impounding, taking, sale, use, or consumption of the water received by the Cities from the Project Q "Project" means Cooper Reservoir -6- R "Reserve Fund" means the Reserve Fund authorized in Section 11 C of this Agreement S "Sulphur Springs" means the City of Sulphur Springs Section 2. Term This Agreement shall be effective on the date it is signed by the District's authorized representative as shown on the signature page of this Agreement and shall continue in full force and effect for the useful life of the Project Section 3 Volume Subject to the limitations and conditions included in this Agreement, as well as the limitations and conditions described in the Federal Contract, the District agrees to sell raw water from the District's share of the water conserva- tion storage space in the Project to the Cities in the following amounts (a) to commerce, 11,100 acre-feet per annum for municipal purposes and 4,760 acre-feet per annum for industrial purposes, (b) to Sulphur Springs, 12,860 acre-feet per annum for municipal purposes and 5,514 acre-feet per annum for industrial purposes, (c) to Cooper, 3,000 acre-feet per annum for municipal purposes and 1,286 acre-feet per annum for industrial purposes In addition to the amounts of water indicated in this Section, the District agrees that if additional water should be determined to be available for appropriation from the District's share of the -7- sedimentation pool of the Project for use by the Cities, then such additional water may be purchased by the Cities from the District upon the same percentage basis referenced in this Section, subsequent to the District securing any required approval from the Government and any other regulatory body, including the Texas Water Commission. Further, the District agrees that to the extent its share of water conservation storage space in the Project is made available for storage of additional waters from sources other than inflows into the Project by reason of use of water from the Project by one of the Cities, then such additional water conservation storage capacity made available by reason of such use by a City shall be made available to such City for storage of waters in addition to the inflows from the Sulphur River Basin into the Project, provided, however, the utilization by any such City of such additional water conservation storage capacity made available in the Project shall not impair the ability of the District to meet its contractual obligations under this Agreement to the other Cities Section 4 Diversion The Cities, individually or jointly, may construct or cause to be constructed Diversion Facilities to divert raw water sold from the Project under this Agreement The Diversion Facilities shall be located, constructed and operated in accordance with plans and specifications approved by the District -8- and, as necessary, the Government, and vicinity maps referencing the location of such facilities from a survey corner shall be prepared prior to construction thereof Such Diversion Facilities shall be owned, operated and maintained by, on behalf of or with the consent and approval of the City or Cities who construct, or cause to be constructed, such Diversion Facilities. The District shall not be obligated in any way for payment of construction costs or operation and maintenance expenses of the Diversion Facilities Section 5 Place of Use Unless authorized by the Texas Water Commission, raw water purchased by the Cities from the District under this Agreement shall be used only within the Sulphur River Basin If a City desires to resale water diverted under this Agreement for use outside of the Sulphur River Basin, the City shall petition the District, requesting such authority, and the District shall authorize such transbasin diversion after securing Texas Water Commission approval and any other necessary approval of such transbasin diversion Notwithstanding anything herein to the contrary, however, the District shall, within thirty (30) days after receiving any request for approval of a transbasin diversion, cause an application to be filed with the Texas Water Commission requesting approval of any necessary amendments to the District's permit for water storage and diversion rights in the Project -9- Section 6 Losses The Cities agree to bear the transporta- tion and, if applicable, the evapotranspiration losses associated with or incident to the diversion and transportation of stored water from the Project to the place of use of the water Section 7. Quality. The water which the District offers to sell the Cities is non-potable, raw, untreated water from the Project The Cities have satisfied themselves that such water is suitable for their needs The District expressly disclaims any warranty as to the quality of the raw water or suitability of the raw water for its intended purpose The raw water sold by the District' is available for purchase without warranty of merchant- ability or fitness. The Cities agree that any variation in the quality or characteristics of the raw water offered for sale as provided by this Agreement shall not entitle the Cities to avoid or limit their obligation to make payments as provided for in this Agreement There are no warranties which extend beyond the description contained in this Agreement The District and the Cities shall cooperate to reasonably protect the Project from contamination Section 8 Measurement. The Cities, individually or jointly, shall acquire or construct, or cause to be acquired or constructed, and shall operate, or cause to be operated, measurement devices that will accurately measure and record the amount of water taken -10- from the Project to comply with the District's obligations under the Federal Contract When a City and the District agree on the construction of Diversion Facilities pursuant to the provisions of Section 4 of this Agreement, the location, size, design and accuracy required of measuring or metering devices shall be determined, however, the Cities agree that the District shall not be required to pay for the design, installation or construction of such metering facilities, but such facilities shall be designed, installed or constructed pursuant to the approval of the District, and each of the cities shall be responsible for payment thereof The District is specifically granted access to such measuring devices, upon reasonable notice to the City or Cities owning the devices, for the purposes of calibrating the devices or otherwise determining their accuracy If any meters are out of service or out of repair so that the amount of water diverted from the Project cannot be ascertained or computed from the reading thereof, the water delivered through the period such meters are out of service or out of repair shall be estimated and agreed upon by the District and the City or Cities, as appropriate, upon the basis of the best available data, including estimating by mathematical calculation or by estimating the quantity of waters diverted by diversions during preceding periods under similar conditions when the measurement devices were registering accurately Should the Cities share a Diversion Facility and measuring device, the measure of water taken shall be calculated from such -11- shared device after taking into account the measure of water taken by the Cities with whom the Diversion Facility and device are shared Section 9 Source and Adequacy of SuDPIV hater supplied by the District to the Cities under this Agreement shall be water impounded and captured in the District's share of water conserva- tion storage space in the Project, and from no other source The District will use its best efforts to remain in a position to furnish raw water from the District's share of water conservation storage space in the Project consistent with, and under limitations which may be imposed by, the Federal Contract The right of the District to operate and maintain its interest in the water conservation storage space in the Project in a lawful manner, and consistent with the Federal Contract, is recognized by the Cities, and regardless of other provisions contained in this Agreement, the Cities recognize that the District shall never be required to breach the Federal Contract or to act unlawfully to supply water to the cities Section 10 Pledge of Revenue Each city represents and covenants that all payments to be made by it under this Agreement shall constitute reasonable and necessary "operating expenses" of its waterworks and sewer system, as that term is defined in TEX REV CIV STAT ANN art 1113 (Vernon 1963), and that all such -12- payments shall be made from the revenues of its waterworks and sewer systems Each City represents and has determined that the water supplies to be obtained from the District's share of water conservation storage space in the Project are absolutely necessary and essential to the operation of its water system, and, accord- ingly, all payments required by this Agreement to be made by such City shall constitute reasonable and necessary operating expenses of its waterworks and sewer system, with the effect that the obligation to make such payments from revenues of such system shall have priority over any obligation to make any payments from such revenues, whether of principal, interest, or otherwise, with respect to bonds hereinafter issued by such City Each City agrees throughout the term of this Agreement to continuously operate and maintain its waterworks and sewer system, and to fix and collect such rates and charges for water and/or sewer services to be supplied by its waterworks and sewer system so as to produce revenues in an amount equal to at least (i) all payments which such city has agreed to make to the District under this Agreement and (ii) all other amounts as required by the provisions of the ordinances or resolutions authorizing revenue bonds or other obligations of such City now or hereafter outstanding Section 11 Payments by Cities. For the water supply to be provided to the Cities under this Agreement, the Cities agree to -13- pay the District, at the time and in the manner provided by this Agreement, their proportional shares of the District's Annual Requirement, and each City's proportional share shall equal each City's Annual Payment as calculated under this Agreement Each City's proportional share of the District's Annual Requirement shall be determined by multiplying the District's Annual Require- ment by a fraction, the numerator of which is the amount of water conservation storage space in the Project for which the District must pay the Government on behalf of such City under the Federal Contract and the denominator of which is the total amount of water conservation storage space in the Project for which the District must pay the Government under the Federal Contract Each City shall pay its Annual Payment to the District periodically, as necessary, to enable the District to timely pay the Federal Contract Payments and the District's Operation and Maintenance Expenses The Cities' Annual Payments shall be calculated as follows A Determination of Annual Requirement on or before the first (1st) day of June, and beginning on or before June 1, 1990, the District shall furnish each City with an estimated schedule of the Federal Contract Payments and Operation and Maintenance Expenses for the following Annual Payment Period, together with a District budget, approved by the Board of Directors of the District, with supporting budgetary or proposed budgetary data showing the basis for arriving at such schedule and budget The -14- District shall simultaneously supply the Cities with a schedule of the Annual Payments to be made by the Cities for the applicable Annual Payment Period Such schedule shall require each City to pay to the District its proportional share of the Federal Contract payments thirty (30) days prior to the date by which the District must make such payments to the Government and its proportional share of the operation and Maintenance Expenses in approximately equal quarterly installments with each quarterly installment to be paid on the first day of each quarter Each City shall have thirty (30) days after receipt of said proposed budget to file its comments thereon with the District After receipt of said comments, the District shall adopt a final budget for said period by September 30 of each year The cities shall pay their Annual Payments in accordance with the schedule At the close of the Annual Payment Period, the District shall determine the actual operation and Maintenance Expenses for the previous Annual Payment Period, and the allocation of such to each City, and the District shall utilize this determination, in part, for the purpose of establishing the Annual Payment of each City for the upcoming Annual Payment Period The Annual Payments for any given Annual Payment Period may be re-determined at any time during the year, to the extent deemed necessary by the District If the Annual Payment is redetermined during the Annual Payment Period, the District will promptly furnish the Cities with updated schedules of payments which reflect the redetermination Each City -15- shall have thirty (30) days after receipt of any proposed budget amendments to file its comments thereon with The District After receipt of said comments, the District shall adopt a revised budget for said period providing for Adjusted Annual Payments by each City B Annual Requirement It is acknowledged and agreed that payments to be made by the Cities to the District under this Agreement will be the sole sources of revenues available to the District to provide the Annual Requirement, and that due to the possible changes in the Federal Contract Payments and operation and Maintenance Expenses of the District, the Annual Requirement may change from time to time during the term of this Agreement It is further acknowledged and agreed that the Annual Requirement for each Annual Payment Period shall at all times be not less than an amount sufficient to pay or provide for the payment of the Federal Contract payments and all operation and Maintenance Expenses of the District C Reserve Fund Notwithstanding anything herein to the contrary, it is further provided that during the first ten (10) Annual Payment Periods, each Annual Requirement shall include an amount equal to 1/10th of the average annual payment required under the Federal Contract to be paid by the District to the Government for the District's share of water conservation storage space in the Project, to establish a Reserve Fund equal to one year's average annual payment to the Government for such payments Such -16- amounts shall be payable in approximately equal quarterly install- ments with each quarterly installment to be paid on the first day of each quarter Interest earnings on the Reserve Fund shall be credited against each respective City's Annual Payments. The Reserve Fund shall be used by the District solely to prevent a default by it under the Federal Contract and, when appropriate and sufficient, to pay the last remaining amounts due under the Federal Contract D Dispute If a City at any time disputes the amount to be paid by it to District, the City shall nevertheless promptly make the disputed payment or payments, but if it is subsequently determined by agreement or court decision that the disputed amount paid by the City should have been less, or more, the District shall promptly revise and adjust the City's Annual Payment in a manner that the City, or the District, will recover the amount due E Operation and Maintenance Expenses Specifically Allocable to a City The parties recognize and agree that certain operation and Maintenance Expenses may be incurred by the District for the benefit of one of more, but not all, of the Cities Notwithstand- ing anything herein to the contrary, the parties agree that in such event, such expenses shall be allocated to, and paid, by, the City or Cities on whose behalf such expenses are incurred. F Expression of Price as a Cost Per Unit of Measure if required by the rules of the Texas Water Commission, the District may perform the necessary mathematical computation to express the -17- price for water as previously provided herein as a cost per unit of measure, provided, however, such computation shall not change the cost for water as previously expressed herein, but shall solely be a re-expression of that price for regulatory purposes. Section 12. Ownersh R and Possession and Control ownership of the rights to use, and possession and control of, the water to be supplied by virtue of this Agreement shall be in the District up to its diversion by means of Diversion Facilities, at which point ownership of the rights to use, and possession and control of, the water diverted in accordance with the provisions of this Agreement shall pass to the City or its designee Section 13 Default in Payments All amounts due and owing to the District by each of the Cities, respectively and separately, shall, if not paid when due, bear interest at the maximum lawful rate of interest on prejudgment debts in Texas, from the date when due until paid If any amount due and owing by a City to the District is placed with an attorney for collection, such City agrees to pay to the District, in addition to all other payments provided for by this Agreement, including interest, the District's collection expenses, including court costs and attorneys' fees The District shall, to the extent permitted by law, suspend delivery of water from the Project to any City which remains delinquent in any payments due hereunder for a period of sixty (60) -Is- days, and the District shall not resume delivery of water while such City is so delinquent, however, a City's obligation for payment of its Annual Payment shall not be waived or suspended as a result of the suspension of water delivery which may result from delinquent payment of amounts due and owing under this Agreement The District shall pursue all legal remedies against such City to enforce and protect the rights of the District. It is understood that the foregoing provisions are for the benefit of the District's creditors, principally the Government, and for the benefit of the non-defaulting Cities In the event a default by a city shall remain uncured for a period of ninety (90) days after written notice to the defaulting City, the rights of such defaulting City under this Agreement shall be forfeited, and the remaining Cities shall have the first option at securing the rights of the defaulting City under this Agreement within thirty (30) days after receiving notice from the District of the right to exercise such option, on a basis which reflects each non-defaulting City's percentage interest in the water purchased under this Agreement, without considering the defaulting City's interest If either of the non-defaulting cities fails to fully and timely exercise its option, then the other non-defaulting City shall have an additional option to acquire the remaining portion of the rights of the defaulting City within thirty (30) days after notice from the District of its right to exercise such additional option If the non-defaulting Cities fail to exercise -19- their options to purchase the defaulting City's rights hereunder in whole or in part, within such time periods, the District shall have the right and the obligation to seek out other purchasers of the rights However, the Cities recognize and agree that the District has no adequate source of revenue to pay the Federal Contract Payments and Operation and Maintenance Expenses allocable to a defaulting city, and until a new purchaser is secured for the defaulting City's interest in the Project, the non-defaulting Cities shall have the obligation to make the payments required herein of the defaulting City to the District Section 14. Shiver and Amendment. Failure to enforce, or the waiver of any provision of this Agreement, or any breach or nonperformance by the District or the Cities, shall not be deemed a waiver by either the District or the Cities of the right in the future to demand strict compliance with, and performance of, any provision of this Agreement No waiver or waivers of any breach or default (or any breaches or defaults) by any party hereto or of performance shall be deemed a waiver hereof in the future, nor shall any such waiver or waivers be deemed or construed to be waiver of subsequent breaches or defaults of any kind, characters, or description, under any circumstances No officer or agent of the District or the Cities is authorized to waive or modify any provision of this Agreement No modifications to or rescission of -20- this Agreement may be made except by a written document signed by the District's and the Cities' authorized representatives Section 15. Consent. AMroval or Other Action Whenever this Agreement provides that the consent, approval or other action of any party hereto is required, such consent, approval or other action shall not be unreasonably withheld or delayed Section 16. Texas Water Commission Rules. The effectiveness of this Agreement is dependent upon the District and the cities complying with the rules of the Texas Water Commission, specific- ally including 31 TAC §295 101 and 31 TAC 1§297 101-108 as of the effective date of this Agreement The District will file a signed copy of this Agreement with the Executive Director of the Commis- sion as required by the rules of the Commission The cities may not divert raw water from the Project unless and until the District notifies the Cities that the District has received written notification from the commission that a copy of this Agreement has been received by the Commission and accepted for filing The Cities shall submit written reports monthly to the District, on forms provided by the District, indicating the total amount of water diverted under this Agreement for the preceding month Section 17 Other Requirements This Agreement is subject to all conditions, provisions, and limitations included in the -21- Federal Contract Further, this Agreement is subject to all applicable federal, state and local laws and any applicable ordinances, rules, orders and regulations of any local, state or federal governmental authority having jurisdiction including, but not limited to, the ratefixing power of the Texas Water Commission However, except as otherwise provided in Section 26 of this Agreement, nothing contained in this Agreement shall be construed as a waiver of any right to question or contest any law, ordinance, order, rule or regulation in any forum having jurisdiction Section 18 Remedies it is not intended hereby to specify (and this Agreement shall not be considered as specifying) an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by any party hereto and shall be cumulative Recogniz- ing, however, that the District's undertaking to provide and maintain a supply of water hereunder is an obligation, failure in the performance of which cannot be adequately compensated in money damages alone, the District agrees, in the event of any default on its part, that the Cities shall have available to them the equitable remedies of mandamus and specific performance, in addition to any other legal or equitable remedies (other than termination) which may also be available -22- Section 19 Indemnity The Cities agree, jointly and severally, to indemnify the District for and/or hold the District harmless from and defend any claim that may arise in connection with the quality, quantity, use, impoundment, transportation or measurement of water, and any claim that may arise as a result of installing, inspecting, adjusting or testing measuring and recording equipment Section 20 Force Maieure. If for any reason of "force majeurs," either the District or a City shall be rendered unable, wholly or in part, to carry out any obligation under this Agree- ment, other than the obligation of a City to make the payments required under the terms of this Agreement, then if the party shall give notice of the reasons in writing to the other parties within a reasonable time after the occurrence of the event or cause relied on, the obligation of the party giving the notice, so far as it is affected by the "force majeure," shall be suspended during the continuance of the inability then claimed, but for no longer period The term "force majeure" as used in this Agreement shall mean acts of God, strikes, lockouts, or other industrial distur- bances, acts of public enemy, orders or actions of any kind of government of the United States or of the State of Texas, or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, restraints of government and people, -23- civil disturbances, explosions, breakage or accident to dams, machinery, pipelines, or canals or other structures or machinery, partial to entire failure of water supply, and any inability on the part of the District to deliver water, or of a City to receive water, on account of any other cause not reasonably within the control of the party claiming an inability Regardless of the foregoing, however, a City's obligation to make payments required hereunder to the District shall never be excused by reason of "force majeure " Section 21 AssigMent or Sale of Rights. The Cities understand and agree that neither this Agreement nor any of a city's rights hereunder may be assigned or sold, in whole or in part, without the District's express written consent; provided, however, any City may assign or sell all or any portion of its rights under this Agreement to another city upon giving thirty (30) days prior written notice to the District, and provided further that nothing in this section shall apply to or prevent a sale of water by any of the Cities Prior to the assignment or sale of a City's rights under this Agreement to an entity other than a City, the City desiring to assign or sell its rights shall grant the other Cities a right of first refusal to secure such rights under the same terms and conditions upon which the assigning/selling City proposes to assign or sell its rights to another Upon written notice to the other Cities of a City's intent to assign or sell its -24- rights hereunder, the other Cities shall have sixty (60) days to provide a written offer to secure such rights, under the same terms and conditions upon which the assigning/selling city intends to assign or sell its rights, or this right of first refusal is waived If more than one of the Cities desire to secure the rights a City intends to assign or sell, each such City shall have the right to secure same, on a basis which reflects those Cities' percentage interest in the water purchased under this Agreement, without considering the assigning/selling city's interest Section 22 sole Aq m n . This Agreement constitutes the sole and only agreement of the District and the Cities, and supersedes any prior understanding or oral or written agreements between the District and the Cities respecting the subject matter of this Agreement Section 23. fiPLgrability. The provisions of this Agreement are severable, and if, for any reason, any one or more of the provisions contained in this Agreement shall be held to be invalid, illegal or unenforceable in any respect, the invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement and this Agreement shall remain in effect and be construed as if the invalid, illegal or unenforceable provision had never been contained in the Agreement -25- Section 24 Authorized Representatives. The authorized representative of the District is the President of its Board of Directors The authorized representative of each City is its Mayor. Section 25 Notices. All notices, payments and communica- tions ("notices") required or allowed by this Agreement shall be in writing and be given by depositing the notice in the United States mail, postpaid and registered or certified, with return receipt requested, and addressed to the authorized representative of the party to be notified Notice deposited in the mail in the previously described manner shall be conclusively deemed to be effective from and after the expiration of three (3) days after the notice is deposited in the mail Notice given in any other manner shall be effective only if and when received by an officer of the authorized representative of the party to be notified For purposes of notice, the addresses of and the authorized representa- tive for receipt of notice for each of the parties shall be shown above the signatures of the individuals who signed this Agreement on behalf of the District and the Cities Any party may change its address or authorized representative by giving written notice of the change to the other parties at least fifteen (15) days before the change becomes effective -26- SECTION 26 Place of Performance All amounts due under this Agreement, including, but not limited to, the Annual Payments or damages for the breach of this Agreement, shall be paid or done in Delta County, Texas, and Delta County, Texas is hereby acknowledged and agreed to be the place of performance of the obligations referenced in this Agreement In the event that any proceeding is brought in state court to enforce this Agreement or any provision hereof, the same shall be brought in Delta County, Texas SECTION 27 Duplicate Originals The Cities and the District acting under authority of their respective governing bodies shall authorize the execution of this Agreement by their authorized representatives in four (4) counterparts, each of which shall be an original EFFECTIVE as of the date signed by all of the authorized representatives SULPHUR RIVER MUNICIPAL WATER DISTRICT P O Box 536 Sulphur Springs, Texas 75482 TITLE DATE -27- ATTESTS APPROVED AS TO FORM AND LEGALITY BY ATTORNEY FOR THE DISTRICT CITY OF COMMERCE 1119 Alamo Commerce, Texas 75428 BY ~,/~f" " Lx TITLE i' DATE /6L1 zzz/ ATTEST 'ULPHUR SPRINGS 125 South Davis Sulphur Springs, Te[a 75482 BY TITLE DATE Iq I ATTEST CITY OF COOPER 101 N W First Street Cooper, Texas 77544/32 BY TITLE DATE 3 -(v'9~ ATTEST -29- SECRETARY'S CERTIFICATE I, Danny Duncan, Secretary of the Board of Directors of Sulphur River Municipal Water District, do hereby certify that the attached is a true and correct copy of a Raw Water Supply Contract between the District and the Cities of Commerce, Cooper and Sulphur Springs Danny D~fican Secretary, Board of Directors Sulphur River Municipal Water District mwd\cert 002 APPLICATION NO IN THE MATTER OF § APPLICATION NO § OF SULPHUR RIVER MUNICIPAL § WATER DISTRICT AND § THE CITY OF COMMERCE, TEXAS § BEFORE THE TEXAS WATER COMMISSION WATER SALE CONTRACT BY AND BETWEEN THE CITY OF COMMERCE, TEXAS AND THE UPPER TRINITY REGIONAL WTAER DISTRICT WATER SALE CONTRACT by and between the City of Commerce, Texas and the Upper Trinity Regional Water District i Dated , 1990 it~ WATER SALE CONTRACT This Water Sale Contract (the "Contract") by and between the city of Commerce, Texas ("Commerce"), a home rule city, and the Upper Trinity Regional Water District ("UTRWD"), a political subdivision of the State of Texas organized and operating under Article 16, Section 59 of the Texas Constitution, is made as of the j0_ day of , 1990 RECITALS WHEREAS, the United States Army Corps of Engineers (the "COE") is in the process of constructing Cooper Reservoir (the "Reservoir") on the Sulphur River, which Reservoir will have storage capacity to impound approximately 404,400 acre-feet of water, including 273,000 acre-feet of water for municipal and industrial water supply purposes (between elevations 415 5 and 440 0 feet msl) and 131,400 acre-feet of water for flood control storage (between elevations 440 0 and 446 2 feet msl), WHEREAS, the COE has entered into agreements with North Texas Municipal Water District ("North Texas"), the City of Irving ("Irving") and the Sulphur River Municipal Water District ("SRMWD") whereby said entities collectively have agreed to purchase one hundred percent of the water storage space in the Reservoir for municipal and industrial water supply purposes, copies of said agreements being attached hereto as Exhibits "A", "B" and "C", respectively, WHEREAS, to evidence its purchase of said water storage space SRMWD has entered into an agreement with the COE (Contract No DACW29-68-A-101 supplemented and amended by Supplemental Agreement No 1 on July 15, 1976 (jointly, the "COE/SRMWD Contract"), a copy of which is attached hereto as Exhibit "D", or for the purchase of a total of 71,750 acre-feet of water storage space in the Reservoir for municipal and industrial purposes, obligating SRMWD to pay (during years 1-50 after completion of construction of the Reservoir) for 17,750 acre-feet of said water storage space in the Reservoir as a source of initial municipal and industrial water supply ("SRMWD's Initial Water Storage Rights") and to pay (during years 11-60 after completion of construction of the Reservoir) for an additional 54,000 acre-feet of said water storage space in the Reservoir as a source of future municipal and industrial water supply ("SRMWD's Future Water Storage Rights"), WHEREAS, the COE/SRMWD Contract provides that SRMWD may, at the sole option of SRMWD, accelerate the time of payment for, and right to use of, SRMWD's Future Water Storage Rights, WHEREAS, the total annual diversion permitted by the Texas Water Commission (the "TWC") from the Reservoir by SRMWD, North Texas and Irving is 146,520 acre-feet per annum (130 8 mgd), being 70% for municipal use and 30% for industrial use, -2- WHEREAS, firm yield studies performed by various engineers have indicated the firm yield of the Reservoir to be 106 64 mgd or 81 52% of the total annual diversion amounts permitted by the TWC to SRMWD, North Texas and Irving, collectively, WHEREAS, SRMWD has obtained approval of and authorization for storage, diversion and use of water available from its water storage space in the Reservoir under Certificate of Adjudication No 03-4797 ("CA No 03-4797"), a copy of which is attached hereto as Exhibit "E", and Permit No 2336, a copy of which is attached hereto as Exhibit "F", from the TWC, WHEREAS, CA No 03-4797 authorizes SRMWD to divert and use 38,520 acre-feet of water per annum from the Reservoir for municipal and industrial purposes (being 70% for municipal use and 30% for industrial use), WHEREAS, SRMWD has entered into agreements with Commerce, the City of Sulphur Springs ("Sulphur Springs") and the City of Cooper ("Cooper") (copies of said agreements being attached hereto as Exhibits "G", "H" and "I", respectively) whereby said cities collectively have contracted to purchase one hundred percent of the water stored and made available for diversion and use by SRMWD's Initial and Future Water Storage Rights in the Reservoir, WHEREAS, Commerce, pursuant to the agreement attached as Exhibit "G" (the "Commerce/SRMWD Contract") has agreed to purchase 30,000 acre-feet of SRMWD's Initial and Future Water Storage Rights in the Reservoir, which 30,000 acre-feet consists of 8,000 -3- acre-feet of SRMWD's Initial Water Storage Rights ("Commerce's Initial Water Storage Rights") and 22,000 acre-feet of SRMWD's Future Water Storage Rights ("Commerce's Future Water Storage Rights"), WHEREAS, Commerce is entitled to 41 812% of SRMWD's 71,750 acre-feet of Initial and Future Water Storage Rights in the Reservoir and is therefore entitled under CA No 03-4797 to the diversion and use of a total of 16,106 acre-feet of water per year from the Reservoir (4,294 acre-feet per year under its Initial Water Storage Rights and an additional 11,912 acre-feet under its Future Water Storage Rights), being 708 for municipal use and 308 for industrial use ("Commerce's Available Permitted Water"), WHEREAS, Commerce's portion of the Reservoir's firm yield is a total of 13,122 acre-feet per year (3,498 acre-feet per year under its Initial Water Storage Rights and an additional 9,624 acre-feet per year under its Future Water Storage Rights), being 708 for municipal use and 308 for industrial use ("Commerce's Available Firm Yield"), WHEREAS, it is presently estimated by engineers that the firm yield of the Reservoir could possibly be increased by approximately 138 by securing permission from the COE and TWC to utilize the 37,000 acre-feet of sediment storage space in the Reservoir, WHEREAS, Commerce is willing to sell water from the Reservoir on a temporary, interim basis, only with the clear and unequivocal agreement and understanding between Commerce and UTRWD as provided -4- in this contract that commerce may terminate or curtail, either partially or wholly, the sale of such water to UTRWD for the reasons, at the times, to the extent of and under the terms and provisions provided in this Contract and may enforce such termination or curtailment by mandamus or other remedy as provided herein or by applicable law; WHEREAS, UTRWD (and its predecessor, the Upper Trinity Municipal Water Authority, Inc ) have caused various engineering studies to be made to determine the availability and cost of various potential raw water supplies to UTRWD and its member cities, WHEREAS, UTRWD intends to obtain additional water from other sources at later times to meet the further needs of its customers and agrees to timely replace the supply of water provided under this Contract at such times as water service under this Contract may be curtailed or terminated, either wholly or partially, and in that connection, UTRWD agrees to timely undertake and complete the reasonable planning and construction efforts to obtain such additional replacement water supplies, WHEREAS, UTRWD desires to acquire water from Commerce from the Reservoir on a temporary, interim basis under the terms and provisions of this Contract; and WHEREAS, Commerce desires to sell to UTRWD water from the Reservoir on a temporary, interim basis under the terms and provisions of this Contract, -5- NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and undertakings of the parties hereto, the sufficiency of which is hereby acknowledged and agreed upon, the parties hereto agree as follows ARTICLE I 1 01 Definitions "Additional Term" means a period of time beginning at the end of the Third Term and thereafter continuing for a period of 50 years "CA No 03-4797" means Certificate of Adjudication No 03-4797 issued to the Sulphur River Municipal Water District by the Texas Water Commission "COE" means the United States Army Corps of Engineers "COE/SRMWD Contract" means, collectively, that certain agreement (Contract No DACW29-68-A0101) dated March 29, 1968, as supplemented and amended by Supplemental Agreement No 1 dated July 15, 1976 between the United States Army Corps of Engineers and the Sulphur River Municipal Water District for the purchase of a total of 71,750 acre-feet of water storage space in Cooper Reservoir by the Sulphur River Municipal Water District "Commerce" means the City of Commerce, Texas "Commerce's Available Firm Yield" means Commerce's share of that amount of water which can be continuously supplied from Cooper Reservoir on an annual basis through the worst drought of record, said amount presently being estimated to be 13,122 acre-feet per year "Commerce's Available Permitted Water" means Commerce's share of the amount of water permitted under Certificate of Adjudication No 03.4797 for diversion and use for municipal and industrial purposes, said amount being 16,106 acre-feet per year "Commerce's Future Water Storage Rights" means Commerce's additional share of the available municipal and industrial water storage capacity in Cooper Reservoir for future use under the COE/SRMWD Contract by payment in years 11-60 after completion of construction of Cooper Reservoir or at such earlier time as -6- 0 Commerce and Sulphur River Municipal Water District may request, said amount being 22,000 acre-feet "Commerce's Initial Termination Option" means the right of Commerce under Section 3 02 of this Contract to partially terminate service to the Upper Trinity Regional Water District in an amount up to twenty-five percent (25%) of the water otherwise committed hereunder "Commerce's Initial Water Storage Rights" means commerce's share of the available municipal and industrial water storage capacity in Cooper Reservoir for initial use under the COE/SRMWD Contract by payment in years 1-50 after completion of construction of Cooper Reservoir, said amount presently estimated to be 8,000 acre-feet "Commerce's Second Termination option" means the right of Commerce under Section 3 03 of this Contract to partially terminate service to the Upper Trinity Regional Water District in an amount up to fifty percent (50%) of the water otherwise committed hereunder "Commerce's Third Termination Option" means the right of Commerce under Section 3 04 of this Contract to partially or totally terminate service to the Upper Trinity Regional Water District in an amount up to all of the water otherwise committed hereunder "Completion Date" means the earlier of the date of completion of construction of Cooper Reservoir as certified by the United States Army Corps of Engineers or the date upon which the Corps of Engineers permits water in Cooper Reservoir to be diverted and used by Sulphur River Municipal Water District or Commerce "Contract" means this contract "Cooper" means the city of Cooper, Texas "Delivery Point" means the point or points on the perimeter of Cooper Reservoir or as otherwise agreed herein at which Commerce agrees to provide water under this Contract to the Upper Trinity Regional Water District "Denton" means the city of Denton, Texas "Emergency" means a sudden unexpected happening, an unforseen occurrence or condition, a sudden or unexpected occasion for action, exigency, pressing necessity, or a relatively permanent condition of insufficiency of service or facilities resulting in social disturbance or distress -7- "Fiscal Year" means the period beginning each October 1 and ending the next September 30 "Initial Term" means a period of time beginning on the Completion Date and thereafter continuing for fifty (50) years "Irving" means the City of Irving, Texas "Lewisville" means the City of Lewisville, Texas "Meter" means the meter, facility, or mechanism mutually agreeable to the parties to measure the amount of water provided to UTRWD hereunder "North Texas" means North Texas Municipal Water District "Reservoir" means Cooper Reservoir on the Sulphur River "Second Term" means a period of time commencing upon expiration of the Initial Term and thereafter continuing for twenty-five (25) years "SRMWD" means the Sulphur River Municipal Water District "SRMWD's Future Water Storage Rights" means Sulphur River Municipal Water District's additional share of the available municipal and industrial water storage capacity in Cooper Reservoir for future use under the COE/SRMWD Contract by payment in years 11-60 after the completion of construction of Cooper Reservoir or at such earlier time as Sulphur River Municipal Water District may request, said amount being 54,000 acre-feet "SRMWD's Initial Water Storage Rights" means SRMWD's share of the available municipal and industrial water storage capacity in Cooper Reservoir for initial use under the COE/SRMWD Contract by payment in years 1-50 after completion of construction of Cooper Reservoir, said amount being 17,750 acre-feet "Sulphur Springs" means the City of Sulphur Springs, Texas "Termination Date" means the date upon which the obligation of Commerce to provide water to Upper Trinity Regional Water District under this Contract will totally terminate by reason of action or inaction of the parties hereto as provided herein "Termination options" means Commerce's Initial Termination Option, Commerce's Second Termination Option and Commerce's Third Termination option -S- "Third Term" means a period of time commencing upon expiration of the second Term and thereafter continuing for twenty-five (25) years "TWC" means the Texas Water Commission "UTRWD" means the Upper Trinity Regional Water District 1 02 Exhibits All exhibits attached hereto are true and correct copies of the originals of same and are hereby incorporated by reference herein for all intents and purposes ARTICLE II Sale of Water 2 01 General Commerce agrees to sell to UTRWD and UTRWD hereby agrees to purchase from Commerce an amount of raw water from the Reservoir equal to the total amount of water to which Commerce is entitled from Commerce's Initial Water Storage Rights and Future Water Storage Rights in the Reservoir under the COE/SRMWD Contract, CA No 03-4797 and the Commerce/SRMWD Contract all in accordance with the terms and provisions, and for such interim, temporary period, set forth in this Contract and all subject to, and limited by, the terms and provisions of the COE/SRMWD Contract, CA No 03-4797 and the Commerce/SRMWD Contract 2 02 ouantity Subject to the provisions of Sections 3 02 - 3 05 of this Contract, commencing on the Completion Date, Commerce agrees to sell to UTRWD and UTRWD agrees to purchase from Commerce at the Delivery Point from Commerce's Initial and/or, as appropriate, Future Water Storage Rights in the Reservoir under the Commerce/SRMWD Contract, the COE/SRMWD Contract and CA-04-4797, -9- a total maximum amount of 16,106 acre-feet per year of permitted diversion or 13,122 acre-feet per year of estimated firm yield of the Reservoir 2 03 Timing of Sales of Water from Commerce's Initial and Future Water Storage R;ahts The water agreed to be sold to UTRWD by Commerce under this Contract is based on Commerce's Initial and Future Water Storage Rights in the Reservoir Collectively, the COE/SRMWD Contract and the Commerce/SRMWD Contract provide that Commerce will pay for its share of principal, interest and maintenance expenses of the Reservoir for its Initial Water Storage Rights in annual installments during the first fifty (50) years after completion of construction of the Reservoir as certified by the COE and for its Future Water Storage Rights in years eleven (11) through sixty (60) after completion of the Reservoir as certified by the COE (the "Completion Date") However, Commerce has the right under the Commerce/SRMWD Contract to require SRMWD, pursuant to the COE/SRMWD Contract, to accelerate access to and use of Commerce's Future Water Storage Rights in the Reservoir and, in the event of such acceleration, payments by Commerce to SRMWD and from SRMWD to the COE are accelerated UTRWD hereby agrees that the amount of water to which it is entitled under this Contract during the first ten years after the completion Date shall be limited to water made available by Commerce's Initial Water Storage Rights (4,294 acre-feet per year of permitted annual diversion or 3,498 acre-feet per year of -10- th estimated firm yield) unless UTRWD notifies Commerce that it desires to accelerate access to and use of Commerce's Future Water Storage Rights during the initial ten-year period after the Comple- tion Date, in which event Commerce shall accelerate its right to Future Water Storage Rights in the Reservoir under the Com- merce/SRMWD Contract (and, correspondingly, SRMWD shall accelerate its right to commerce's Future Water Storage Rights in the Reservoir under the COE/SRMWD Contract) In the event of such acceleration, UTRWD agrees to accelerate its payments to Commerce as hereinafter provided for water made available by Commerce's Future Water Storage Rights 2 04 Agreement to Chanas Purpose and Place of Use of Water Commerce's right to divert and use water made available by its Initial and Future Water Storage Rights are designated for use only in the Sulphur River Basin and are specified as seventy percent (703) for municipal use and thirty percent (30%) for industrial use in the COE/SRMWD Contract and in CA No 03-4797 As further provided in Section 4 04 hereof, Commerce and UTRWD hereby agree to jointly use reasonable efforts to secure approval, if necessary, by the COE, SRMWD, the TWC and any other appropriate governmental or other entities of a change in the place and purpose of use of such water to add authority to divert the water for use in the Trinity River Basin within the District or its environs for up to one hundred percent (1003) municipal purpose -11- 9~ 2 05 Agreement to Reauest Use of Water from Sediment Storage Commerce and UTRWD agree to jointly use reasonable efforts to explore and discuss with, and to obtain approval of, SRMWD, COE, TWC and other appropriate entities for commerce to utilize and sell to UTRWD water made available by accessing Commerce's pro rata share of any sediment storage capacity in the Reservoir for municipal purposes for an interim or other period of time All reasonable expenses of such efforts, the amount of which shall be agreed upon prior to expenditure thereof, shall be paid by UTRWD SRMWD's share of such sediment storage is presently estimated to be 9720 acre-feet, Commerce's pro rata share would thus be 4064 acre-feet (41 812% of 9720 acre-feet) If Commerce is successful in obtaining approval to utilize water made available from Commerce's pro rata share of sediment storage space in the Reservoir, then any such additional water shall be made available by Commerce to UTRWD under the terms and conditions of, and for the interim, temporary period provided in, this Contract The only additional consideration to be paid by UTRWD for any such additional water shall be to reimburse commerce for any expenses incurred by Commerce in obtaining and providing such water if any such additional water is obtained, the parties agree to enter into a supplement to, and amendment of, this Contract in order to further evidence the sale of such additional water to UTRWD by Commerce as provided herein -12- 2 06 Delivery Point Water provided by Commerce to UTRWD under this Contract shall be provided at a point or points (collectively, the "Delivery Point") mutually agreeable to the parties hereto and subject to the approval of the COE, SRMWD and any applicable regulatory authorities 2 07 Design and Construction of Diversion and Transportation Facilities (a) UTRWD, at its sole expense, shall install all facilities necessary to divert, transport, treat and, except for the Reservoir, store water provided by Commerce under this Contract All such facilities (other than the Reservoir) shall be initially constructed, owned, operated, maintained, repaired and replaced by UTRWD Such facilities shall include a meter or other facility or mechanism acceptable to both parties (the "Meter") for the purpose of measuring the amount of water provided to UTRWD under this Contract to ensure compliance with the terms of this Contract and to allow Commerce and SRMWD to accurately report the amount of water diverted and used from the Reservoir (b) It is the stated intention and clear preference of UTRWD to enter into an interlocal agreement with North Texas and/or others to finance, construct, operate and maintain joint diversion and transportation facilities, which facilities may or may not traverse Commerce or be located in close proximity to Commerce In such event, UTRWD will provide Commerce with the location, design and construction plans and specifications of such facilities, -13- including the Meter, in advance of finalizing such plans or commencing such construction, for any comments and observations as Commerce may have In the event the Meter is shared with North Texas or other diverters, the parties shall agree, prior to diversion by UTRWD, to a method of allocating UTRWD's use of water under this Contract as a portion of the total diversion through the Meter (c) In the event UTRWD is unable to consummate an agreement as described in Section 2 07(b), UTRWD will coordinate with Commerce the location, design and construction of facilities needed to utilize the water sold herein, including the route of any new water transmission main to be constructed Commerce will assist UTRWD with any approvals required for rights-of-way within Commerce's city limits Design of, plans and specification for and construction of the raw water intake, raw water pumps, meter and raw water transmission main, or any replacements, improvements or betterments thereof, from the Reservoir through Commerce's city limits shall be subject to prior inspection, review and approval by Commerce, which approval shall not be unreasonably withheld or delayed Prior to commencing construction of any such facilities, UTRWD shall provide at least sixty (60) days written notice to Commerce accompanied by a copy of the plans and specifications for such improvements Commerce shall have the right to review and approve any such plans and specifications (and any subsequent changes to -14- or deviations therefrom), which approval shall not be unreasonably withheld Prior to commencing any such construction, UTRWD shall give Commerce at least thirty (30) days notice of its intent to commence such construction and Commerce shall have the right to periodically inspect and approve such construction to assure its conformity to the approved plans and specifications, which approval shall not be unreasonably withheld or delayed (d) To facilitate Commerce's having emergency access to a portion of the water in accordance with Section 3 09 of this Contract, UTRWD agrees, as part of its original construction, to install in its pipeline, at a location mutually acceptable to UTRWD and Commerce, an appropriate connection, tap or flange The exact location, size, nature and configuration of the connection, tap or flange shall be determined by subsequent engineering study, which study will be made available to Commerce for review and approval, which approval shall not be unreasonably withheld or delayed Any facilities desired or needed by Commerce, either initially or at a later date, in addition to the connection, tap or flange to be provided by UTRWD shall be provided, paid for, owned and operated by commerce 2 08 Meter The Meter may be calibrated at any reasonable time by either party to this Contract, provided that the party making the calibration shall notify the other party at least two (2) weeks in advance and allow the other party to witness the calibration Further, the Meter shall be tested for accuracy by, -15- and at the expense of, UTRWD at least once each calendar year at intervals of approximately twelve (12) months and a report of such test shall be furnished to Commerce However, in the event any question arises at any time as to the accuracy of the Meter, the Meter shall be tested promptly upon demand of Commerce, the expense of such test to be borne by Commerce if the Meter is found to be within 5% accuracy and by UTRWD if the Meter is found to not be within 5% of accuracy If, as a result of any test, the Meter is found to be registering inaccurately (in excess of 5% of accuracy), the readings of the Meter shall be corrected at the rate of its inaccuracy for any period which is definitely known or agreed upon or, if no such period is known or agreed upon, the shorter of (i) a period extending back either sixty (60) days from the date of demand for the test or, if no demand for the test was made, sixty (60) days from the date of the test, or (ii) a period extending back half of the time elapsed since the last previous test, and the records of readings shall be adjusted accordingly 2 09 Title to and Responsibility for Water Title to, and possession and control of, the water provided by commerce under this Contract shall remain with Commerce (or, as appropriate, SRMWD or the COE) while it is in the Reservoir Title to, and possession and control of, the water shall pass to UTRWD at the Delivery Point -16- 2 10 Ouality of Water The water supplied by Commerce hereunder shall be raw, untreated water in its natural condition in the Reservoir Water provided by Commerce to UTRWD from the Reservoir under this Contract is provided AS IS, WHERE IS, AND WITHOUT ANY WARRANTIES OF WHATSOEVER NATURE, EXPRESSED OR IMPLIED, IT BEING THE INTENTION OF COMMERCE AND UTRWD TO EXPRESSLY NEGATE AND EXCLUDE ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE AND RIGHTFUL TRANSFER CONTAINED IN OR CREATED BY THE TEXAS UNIFORM COMMERCIAL CODE 2 11 Price In consideration for Commerce's agreement to provide water under this Contract, UTRWD hereby agrees to pay to Commerce the following (1) The sum of $50,000 to reimburse Commerce for its costs in developing and administering its participation in the Reservoir to the date of this Contract The $50,000 shall be paid by UTRWD to Commerce within six (6) months after the execution of this Contract, (2) All sums (including engineering, legal administrative, travel, telephone and other out-of-pocket costs) expended by Commerce in attempting to obtain the regulatory approvals referenced in Section 4 04 of this Contract, whether or not such approvals are obtained, provided however, a proposed budget for such expenditure -17- shall be first submitted to the Advisory Committee created pursuant to Section 4 03 of this Contract for its review and approval and all subsequent expenditures shall be submitted to said Advisory Committee for review prior to payment, (3) Such amounts, at such times and in such installments, as necessary to enable Commerce to timely pay to SRMWD all amounts owed by Commerce to SRMWD under the Commerce/SRMWD Contract for Commerce's Initial and Future Water Storage Rights in the Reservoir, including all amounts to pay (i) Commerce's pro rata share of annual principal and interest payments owed by SRMWD to the COE under the COE/SRMWD Contract, (ii) Commerce's pro rata share of all amounts owed by SRMWD to the COE for maintenance expenses of the Reservoir under the COE/SRMWD Contract, and (iii) all amounts owed by Commerce to SRMWD as a principal and interest reserve fund and/or maintenance reserve fund under the Commerce/SRMWD Contract for Commerce's pro rata share of SRMWD's share of the principal and interest and/or maintenance expenses of the Reservoir under the SRMWD/COE Contract -18- All payments required to made under this sub- paragraph 3 shall be made in installments so that at least thirty (30) days prior to the time that Commerce must make such payments to SRMWD, it will have sufficient funds available Commerce shall provide UTRWD with a schedule of such payments by September 30 annually for the fiscal year beginning October 1 in order to notify UTRWD of the amount and timing of such payments, provided, however, that such schedule may be modified during the year as necessary to coincide with Commerce's obligation to SRMWD, (4) All reasonable and necessary costs incurred by Commerce directly or through SRMWD for administering Commerce's Initial and Future Water Storage Rights UTRWD shall not be obligated to pay to Commerce or any other person costs for any project or activity of such person except those costs which are directly related to Commerce's Initial and Future Water Storage Rights that are the subject matter of this Contract Commerce shall submit a statement to UTRWD at the conclusion of each fiscal year of Commerce detailing the direct costs to be paid by UTRWD under this subsection If UTRWD disputes the amount of costs to be paid by it to Commerce, UTRWD shall nevertheless pay such costs, but if it is subsequently determined by mutual agreement or otherwise -19- that the amount of such disputed costs should have been more or less, Commerce shall promptly revise and reallocate such costs in accordance with such determination, and (5) Annually on or before December 31 of each year a sum equal to five percent (5E) of UTRWD's payments under Section 2 11(3)(1) and (ii) and (4) above for the previous Fiscal Year Notwithstanding anything herein to the contrary, however, UTRWD's obligation to make payments to Commerce under this Contract shall be unconditional and independent of whether or not any water from the Reservoir is actually provided or made available to, or diverted or used by, UTRWD pursuant to this Contract 2 12 Billing and Payment on or before June 1 of each year, Commerce shall establish a preliminary budget of costs to be paid by UTRWD under this Contract for the next ensuing twelve month period beginning October 1 UTRWD shall have thirty (30) days after receipt of said proposed budget to file its comments thereon with commerce After receipt of said comments, Commerce shall adopt a final budget for said period by September 30 of each year The final budget shall establish periodic amounts, including any amounts required to be paid under Section 2 11, to be paid by UTRWD for the ensuing one year period beginning each October 1 Commerce may amend the budget during a Fiscal Year if necessary to adjust it for any unforeseen matters related to the payments under -20- Section 2 11(3)(1) and (ii) above Any such adjustment shall be adopted only upon reasonable notice to UTRWD under the circumstances which shall normally be at least thirty (30) days written notice with opportunity for UTRWD to comment on any such change prior to approval thereof payment of each periodic amount shall be due in accordance with the approved budget All late payments shall bear interest at the lesser of fifteen percent (15%) per annum or the maximum allowed by law from the due date until paid UTRWD shall be solely responsible for billing and collecting from its water customers Failure to collect from its customers will not affect UTRWD's obligation to make all payments due to Commerce Should UTRWD fail to make any payment as required hereunder, then Commerce shall utilize the reserves maintained by it on behalf of UTRWD to make such payment to the extent funds are available in such reserves In addition to all other required payments hereunder, to the extent such reserves are so used, UTRWD shall be obligated to immediately pay to Commerce an equal amount to replenish the reserve fund so depleted ARTICLE III 3 01 Terms (a) Initial Term This Contract shall become effective upon execution by Commerce and UTRWD, and thereafter, water shall be -21- 6 provided hereunder for an initial term of fifty (50) years (the "initial Term") commencing with the Completion Date (b) Second Term If, and to the extent that, this Contract or water service hereunder not be previously terminated, either partially or wholly, by either party hereto, and subject to Commerce's Initial Termination option as hereafter provided commencing upon expiration of the Initial Term, UTRWD shall have the right and obligation to continue to purchase the remaining available water from Commerce's Initial and Future Water Storage Rights in the Reservoir for up to an additional twenty-five (25) years (the "Second Term") unless UTRWD gives written notice to Commerce no later than five (5) years prior to the expiration of the Initial Term of UTRWD's desire to terminate the Contract Failure of UTRWD to provide timely notice of such election to terminate shall be deemed to be notice by UTRWD of its intent to extend this Contract for the Second Term at the end of the Initial Term The purchase and sale of water under this Contract during the Second Term shall be under the same terms and conditions as are contained in this Contract for the Initial Term (c) Third Term If, and to the extent that, this Contract or water service hereunder not be previously terminated, either partially or wholly, by either party hereto, and subject to Commerce's continuing rights under the second Termination option as hereinafter provided, commencing upon expiration of the Second Term UTRWD shall have and is hereby granted by Commerce the right -22- and obligation to continue to purchase the remaining available water from Commerce's Initial and Future Water Storage Rights in the Reservoir under the same terms contained in this Contract for an additional period of twenty-five (25) years (the "Third Term") unless UTRWD gives written notice to Commerce no later than five (5) years prior to the expiration of the Second Term of UTRWD's desire to terminate the Contract Failure of UTRWD to provide timely notice of such election to terminate shall be deemed to be notice of continuation of the Contract at the and of the Second Term The purchase and sale of water under this Contract during the Third Term shall be under the same terms and conditions as are contained in this Contract for the Initial Term (d) Additional Term If, and to the extent that, this contract or water service hereunder not be previously terminated, either partially or wholly, by either party hereto, and subject to commerce's Third Termination option as hereafter provided, commencing at the end of the Third Term UTRWD shall have and is granted by Commerce pursuant to Section 3 05 hereof a right of first refusal to use any portion of the remaining water from the Reservoir under terms similar to this Contract for an additional period of 50 years (the "Additional Term") The provisions of any contract considering such extension of the rights of UTRWD during the Additional Term which will be subject to negotiation at the end of the Third Term shall be limited to the price of water -23- (e) Effect of termination by UTRWD If UTRWD exercises its right to terminate and cancel its obligations under this Section 3 01, it shall have no obligation to pay any further amounts under this Contractf provided, however, that UTRWD will pay to Commerce any sums which had accrued to Commerce hereunder before the effective date of such termination and cancellation 3 02 Initial Termination Ootion By Commerce Up to a Total of Twenty-five Percent (25%) of Contract Amount Notwithstanding anything herein to the contrary, Commerce hereby reserves the option and UTRWD hereby grants the option to Commerce, to terminate Commerce's obligation to provide water to UTRWD under this Contract in an amount up to a total of twenty-five percent (25%) of the water available under this Contract commencing upon expiration of the Initial Term ("Commerce's initial Termination Option") Said option may be exercised once at any time after expiration of the Initial Term Commerce must give written notice to UTRWD at least ten (10) years prior to the exercise of such option At the time Commerce exercises its Initial Termination Option, Commerce hereby agrees to pay to UTRWD, for the proportionate amount of water which it reacquires the right to use under this option, the pro rata share of all principal payments (as provided in the COE/SRMWD Contract) effectively made by UTRWD as a result of this Contract prior to the effective date of Commerce's exercise of the option The amount to be paid by Commerce under this section shall not -24- include interest or operation and maintenance expenses (as provided in the COE/SRMWD Contract) effectively made by UTRWD From and after the effective date of any exercise of Commerce's Initial Termination option, payments by UTRWD to Commerce under this Contract shall be reduced for all payments, including principal, interest and maintenance expenses, attributable to that portion of the water no longer sold by Commerce to UTRWD hereunder 3 03 Second Termination Option By Commerce Uo to a Total of Fifty Pgrcent (508) of Contract Amount Commerce hereby reserves the further option, and UTRWD hereby grants the further option to Commerce, to terminate commerce's obligation to provide water to UTRWD under this Contract in an amount up to a total of fifty percent (508) of the water available under this Contract (inclusive of water, if any, previously re-acquired by Commerce by exercising its Initial Termination Option) once at any time upon or after expiration of the Second Term of this Contract ("Commerce's Second Termination Option") Commerce must give written notice to UTRWD at least ten (10) years prior to the effective date of the exercise of the option At the time Commerce exercises its Second Termination Option, Commerce hereby agrees to pay to UTRWD for the proportionate amount of water which it reacquires the right to use under this option, (i) one-half of the pro rata share of all principal payments (as provided in the COE/SRMWD Contract) effectively made -25- by UTRWD as a result of this Contract prior to the effective date of commerce's exercise of the option and (ii) the proportionate amount of the principal costs of any Reservoir improvements made by the COE, SRMWD or other entity, as appropriate, and effectively paid by UTRWD during the last twenty (20) years of the Second Term The amount to be paid by Commerce under this section shall not include interest or operation and maintenance expenses (as provided in the COE/SRMWD Contract) effectively made by UTRWD The Reservoir improvements, if any, which are within the scope of this section are those improvements (not including routine operation and maintenance expenditures) which are considered by the COE or any successor thereof as betterments or improvements that extend the life of the Reservoir or increase the available water supply in the Reservoir From and after the effective date of any exercise of Commerce's Second Termination Option, payments by UTRWD to Commerce under this Contract shall be reduced for all payments, including principal, interest and operation and maintenance expenses attributable to that portion of the water no longer sold by Commerce to UTRWD hereunder 3 04 Third Termination Option By Commerce Up to Full Contract Amount Commerce hereby reserves the further option, and UTRWD hereby grants the further and final option to Commerce, to terminate commerce's obligation to provide water to UTRWD under this Contract in an amount up to one hundred percent (100%) of the -26- water available under this Contract in one or more installments from time to time at any time upon or after expiration of the Third Term of this Contract ("Commerce's Third Termination Option") Commerce must give written notice to UTRWD at least ten (10) years prior to the effective date of any exercise of the option At the time Commerce exercises its Third Termination Option, Commerce hereby agrees to pay to UTRWD for the proportionate amount of water which it reacquires the right to use under this option, (i) one-third of the pro rata share of all principal payments (as provided in the COE/SRMWD Contract) effectively made by UTRWD as a result of this Contract prior to the effective date of Commerce's exercise of the option and (ii) the proportionate amount of the principal costs of any Reservoir improvements made by the COE, SRMWD or other entity, as appropriate, and effectively made for by UTRWD during the last twenty (20) years of the Third Term The amount to be paid by Commerce under this section shall not include interest or operation and maintenance expenses (as provided in the COE/SRMWD Contract) effectively paid by UTRWD The Reservoir improvements, if any, which are within the scope of this section are those improvements (not including routine operation and maintenance expenditures) which are considered by the COE or any successor thereof as betterments or improvements that extend the life of the Reservoir or increase the available water supply in the Reservoir -27- 3 05 Sale of Water After Expiration of Third Term but Prior to Full Exercise of Third Termination Option After expiration of the Third Term of this Contract and prior to Commerce's full exercise of its Third Termination option, UTRWD shall have a continuing right of first refusal to continue to purchase the remaining available water from Commerce's Initial and Future Water Storage Rights in the Reservoir under the same terms and provisions contained in this Contract for the Additional Term of fifty (50) years commencing upon expiration of the Third Term of this Contract, provided, however, that the price of said water shall be subject to mutual agreement of the parties and the provision of such water service is in all respects subject to Commerce's right to exercise from time to time, in installments or otherwise, its rights under the Third Termination Option Should UTRWD desire to exercise it's right of first refusal, it shall give notice of the exercise of such right to Commerce at least one (1) year prior to the expiration of the Third Term of this Contract 3 06 Non-availability. Discontinuance or Curtailment of Water Service Notwithstanding anything herein to the contrary, it is specifically understood and agreed between the parties that the obligation of Commerce to provide water to UTRWD pursuant to this Contract is subject to the availability of water to Commerce from the Reservoir pursuant to, in conformity with, and subject to all conditions and restrictions contained in, the Commerce/SRMWD Contract, the COE/SRMWD Contract and CA No 03-4797, and is also -28- subject to inability to provide water due to Emergency, force majeure, the need to curtail water service to cause repairs or improvements to be made to the Reservoir, or the need to protect the public health, safety or welfare In any of such events, Commerce (or its agents, including, without limitation, SRMWD or the COE) shall have the right, after reasonable notice to UTRWD under the circumstances, to curtail or limit water service to UTRWD under this Contract, provided that any such curtailment or limitation shall be limited in amount and duration to the minimum amount necessary 3 07 Option for Purchase of Interest in Ca2acity or Water Facilities Upon Exercise of Termination Options UTRWD agrees that Commerce, upon the exercise of any of its Termination Options shall have the option and right to acquire from UTRWD upon payment by to UTRWD of the depreciated net book value, a proportionate ownership interest or other right of use in, and appropriate title to, any facilities, capacity in facilities or contract rights in facilities owned, leased or otherwise utilized by UTRWD, including without limitation the raw water intake, raw water pumps, meter and raw water transmission main (and easements, permits, licenses or real property interests associated therewith) from the Delivery Point to the point on the transmission line where Commerce diverts the raw water for its own use, provided, however, UTRWD shall be required to convey any such interest only to the extent of its then existing legal title, rights and abilities The parties shall -29- agree on an acceptable standard of placing such value on said facilities which shall be consistent with appropriate depreciation techniques under water utility ratemaking standards of the National Association of Regulatory Utility Commissioners Uniform System of Accounts UTRWD shall execute any documents necessary or appropriate to reflect the transfer of ownership of any such facilities or interest therein to Commerce At such time as Commerce becomes the majority owner of said facilities it shall have the further and additional option of becoming the operating manager of such facilities with the costs being apportioned between the parties Capital costs and operation and maintenance expenses shall be allocated as follows: (1) capital costs based on percentage of water allocated, and (2) operation and maintenance expense, including cost of pumping, based on water usage At least six (6) months prior to the transfer of title of said facilities or any interest therein, UTRWD shall install a new meter (thereafter, the "Meter") at which point water shall thereafter be metered and provided by Commerce to UTRWD under this Contract The cost of purchasing and installing said Meter shall be prorated between the parties based on percent of water allocated to each Metering, billing and payment related to the facilities used by the non-operating party shall be on a monthly basis in an amount sufficient to pay the non-operating party's prorata share (on the -30- bases provided hereinabove) of the operating party's capital costs and expenses incurred in providing service to the non-operating party 3 08 Actions in Event of Unenforceability of Certain Provisions of Contract Notwithstanding anything herein to the contrary, if it is ever determined by any governmental or regulatory authority that provision of water by Commerce under this Contract, or curtailment, limitation or termination of water service by Commerce under this Contract, is in violation of applicable law, then Commerce, at the sole option of Commerce, may take such action as will best effectuate the intent of the parties in agreeing to this Contract and comply with applicable law or, if required or permitted by law, may terminate this Contract 3 09 Emergency Supply to Commerce If at any time during the Initial Term, Second Term, Third Term or Additional Term of this Contract, Commerce incurs an Emergency which interrupts its raw water supply from Commerce Water District, groundwater or other sources, Commerce may request that UTRWD provide water to Commerce on a temporary basis during such Emergency from the water provided to UTRWD hereunder If so requested, UTRWD agrees to use its best efforts to make available to Commerce and, to the extent so made available, Commerce shall be entitled to purchase from UTRWD water necessary to alleviate said Emergency To the extent water is provided to Commerce under this section, Commerce shall pay UTRWD the full cost incurred or agreed under this Contract to be incurred -31- 0 by UTRWD applicable to such water for the period of such use plus such other reasonable expenses, if any, as UTRWD may incur in delivering such water to Commerce During the period of any such Emergency, Commerce agrees to use its best efforts to alleviate said Emergency or to minimize the deficiency of water through conservation, development of alternate water supplies, or other means Both parties agree to cooperate during said Emergency to ensure that Commerce's reasonable needs for water are met and that UTRWD's supply of raw water is not unreasonably impaired 3 10 Actions by UTRWD Upon Notice of Termination by Commerce Upon receipt of notification by Commerce that it is exercising one of its Termination Options, UTRWD shall immediately commence preparation of necessary studies and plans by its engineers and other consultants to obtain replacement water supplies for the water to be obtained by Commerce in the exercise of any such option Within one year after receiving any such notification, UTRWD shall submit to commerce evidence of approval by its Board of Directors of a specific course of action for obtaining necessary replacement water supplies, including a copy of any engineering studies or plans related to such replacement water supplies if construction or acquisition of additional facilities is needed in order to make available the replacement water supplies, such acquisition or construction shall be commenced within four (4) years from the date of receipt of notification by UTRWD and such acquisition or construction shall be completed within eight (S) -32- years from the date of receipt of such notification After receipt of notification, UTRWD shall report in writing to commerce at least once every six months on the progress of its efforts to obtain replacement water supplies If UTRWD fails to meet any of the deadlines provided in this section for action to secure replacement water supplies, or should UTRWD be unable or unwilling to allow Commerce to timely and completely exercise any of its Termination options, then UTRWD agrees to promptly pay Commerce an amount of money sufficient to obtain alternate water supplies of equal amount and quality to those which Commerce is otherwise entitled to under any of its exercises of such options 3 it Automatic Price Adjustment Related to Water from Lake Tawokani Notwithstanding anything herein to the contrary, if it is ever determined by Commerce that the price per acre-foot of raw water available to commerce from Lake Tawokani is greater than the amount otherwise required to be paid per acre-foot by UTRWD to Commerce under this contract for water from and at the Reservoir, then, in such event, UTRWD shall pay a price for water from and at the Reservoir which is equivalent to average price per acre-foot of water from both such sources as calculated by Commerce and reviewed and approved by UTRWD, which approval shall not be unreasonably withheld or delayed -33- ARTICLE IV 4 01 Payments are ORerat ng Ex e~ nses UTRWD represents, covenants and agrees that all payments to be made by it shall constitute reasonable and necessary "operating expenses" of its water and, if appropriate, wastewater system and that UTRWD will require each of its customers to agree that each such entity's payments to UTRWD shall also constitute reasonable and necessary "operating expenses" of each respective entity's water and, as appropriate, wastewater system, as referenced in Article 1113, Vernon's Texas Civil Statutes, as amended, or other appropriate law Such payments will be made from the revenues of the water and, if applicable, wastewater systems of UTRWD and each such customer of UTRWD with the effect that the obligation to make such payments shall be treated as an operating expense of each said system and shall have priority over any obligation to make any payments from such revenues (whether principal, interest or otherwise) with respect to all bonds and other obligations heretofore or hereafter issued by UTRWD or any of its customers, as applicable, payable from such revenues 4 02 Rate Covenant UTRWD hereby agrees that throughout the term of this contract it will continuously fix and collect such rates and charges for water and wastewater services as will produce revenues in an amount sufficient to at least pay all of the -34- payments required under this Contract and its other expenses related to its water and, if appropriate, wastewater system 4 03 Advisory Committee, Coordination Commerce and UTRWD agree to establish an advisory committee regarding operations of each party under this Contract. The advisory committee shall be composed of six members, three from each party appointed by and serving at the pleasure of the governing body of each respective party Each party and the advisory committee will be given timely notice of agendas and meetings of the others where the rights or interests of each under this Contract are to be discussed so that each will have the opportunity to attend and participate Before any budgets of Commerce or SRMWD affecting what UTRWD shall pay in this Contract are adopted, UTRWD and the advisory committee shall be given opportunity to review and comment 4 04 Regulatory and Other Anorovals Assurance of Feasibility of Transportation s. Rights of Termination Commerce shall be responsible for obtaining approval, if any be required, of this contract by the TWC or other regulatory authorities With UTRWD's cooperation, Commerce will initiate the appropriate filing through SRMWD for an amendment to CA No 03-4797, in substantially the form attached hereto as Exhibit "J", authorizing the diversion and use of water as provided in this Contract from the Reservoir for municipal purposes within the District or its environs SRMWD, Commerce and UTRWD will -35- support said application with data and testimony as may be suitable and appropriate to effect a good faith application If within twelve (12) months of the effective date of this Contract the regulatory or other approvals contemplated by this Section are not obtained or UTRWD does not determine a feasible method to transport the water from the Delivery Point to the District, UTRWD reserves the right to terminate this Contract upon the giving of written notice to Commerce within three (3) months thereafter or such later time as the parties may agree to in writing In the event, but only in the event, that at the end of fifteen (15) months from date of execution of this Contract, the required regulatory or other approvals have not been obtained, UTRWD may notify Commerce that UTRWD desires to extend the period for exercising its termination option provided previously in this section for an additional one (1) year period During such extended one (1) year period, UTRWD agrees to make all payments required under this Contract During said extended one (1) year period, UTRWD shall have the right to exercise the aforementioned termination option until the earlier of (i) the end of said extended one (1) year period or (ii) within three (3) months after receipt of all required regulatory or other approvals If during said extended one (1) year period, UTRWD exercises any right to terminate this Contract under this section either for the aforementioned reasons or for the reason described below in this -36- section UTRWD shall, after such termination, nonetheless continue to be obligated to make all payments required under this Contract for an additional one (1) year period from the date of termination including all amounts accruing to Commerce as described in Section 2 11(4), provided, however, in such event Commerce agrees to use good faith efforts to find another buyer for the water contemplated to be sold in this Contract and any payments made by such a buyer during said one (1) year period after termination shall offset payments to be otherwise made by UTRWD hereunder Both parties reserve the right to terminate this contract in the event the regulatory or other approvals received contain provisions that in the opinion of either party hereto substantially impair the water rights or the ability of either party to carry out its obligations and responsibilities under this Contract Notwithstanding anything herein to the contrary, any termination option to be exercised pursuant to this section shall be exercised within three (3) months of receipt of final regulatory or other approval or such later time as the parties may agree to in writing by giving written notice to the other party If (i) UTRWD exercises its right to terminate and cancel its obligations under this section within fifteen (15) months from the date of execution of this Contract or (ii) Commerce exercises its right to terminate under this action at any time, UTRWD shall have no obligation to pay any further amounts under this Contract, provided, however, that in either of such events UTRWD will pay to Commerce any sums -37- which had accrued to Commerce hereunder before the effective date of such termination and cancellation 4 05 Indemnification UTRWD agrees to fully indemnify and hold harmless Commerce and its officers, employees, agents, contractors and related interests from and against any and all claims, losses, damages, demands, judgments, suits, liabilities and causes of action of whatsoever nature, whether known or unknown, fixed or contingent (including, but not limited to, attorneys' fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) related to or directly or indirectly resulting from or arising out of, after the date of execution of this Contract (1) UTRWD's failure to comply with this Contract, (2) the actions of persons or things other than Commerce affecting the water supplied by Commerce to UTRWD after such water reaches the Delivery Point, and (3) the interruption, curtailment or limitation of service by Commerce to UTRWD or customers served by or to be served by UTRWD as provided in Section 3 04 of this Contract 4 06 Remedies Upon Default Either party hereto shall be entitled to terminate this Contract upon thirty days written notice to the other party if, at the time of such termination, the other party is in breach of a material term of this Contract, which breach has been continuing and uncured for the shorter of (i) a -38- period of six (6) consecutive months or (ii) in the event of failure to pay a monetary obligation, then at such times as there are no reserves to pay said amount The term "material provision" shall include, without limitation, the requirement of UTRWD to pay money to Commerce hereunder It is not intended hereby to specify (and this Contract shall not be considered as specifying) an exclusive remedy for any default, but all such other remedies existing at law or in equity may be availed of by any party hereto and shall be cumulative In addition thereto, the parties specifically agree that in the event of any such default, the non-defaulting parties shall be entitled to obtain a writ of mandamus from a court of competent jurisdiction ordering and compelling the defaulting party, and its officers or representatives, to take such action as may be necessary or appropriate to cure such default and otherwise comply with the provisions of this Contract 4 07 Surplus Water or Capacity of UTRWD If UTRWD shall have surplus water or idle capacity in any of its facilities to transport water under this Contract, UTRWD agrees to negotiate in good faith a transportation and sale agreement for said water to Commerce with compensation therefor at actual cost plus a reasonable return on its investment in facilities so used 4 08 Contracts, Other Water Riahts Commerce shall have the right to enter into other water supply contracts from its other water supply sources, provided, however, Commerce agrees not to -39- L enter into any contract, other than this contract, to supply water from Cooper Reservoir to any customer located more than fifty (50) miles from Commerce's then existing city limits Nothing in this Contract shall be construed as granting any right, title, interest or claim to UTRWD or its customers in any water systems or rights owned or used by Commerce, other than the right to purchase water from Commerce from the Reservoir pursuant to the terms of this Contract UTRWD shall have the right to enter into contracts to supply water to its customers, provided, however, UTRWD shall not sell water to any person or entity located within fifty (50) miles of Commerce's then existing city limits 4 09 Force Maieure If either party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Contract other than an obligation to pay or provide money, then such obligations of that party to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period Such cause, as far as possible, shall be remedied with all reasonable diligence The term "force majeure," as used herein, shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of any governmental entity or any civil or military authority, acts, orders or delays thereof of any regulatory authorities with jurisdiction over the -40- parties, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, or any other conditions which are not within the control of such party It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of either party hereto, and that the above requirements that any force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing party or parties when such settlement is unfavorable to it in the judgment of either party hereto 4 10 Severability The provisions of this Contract are severable, and if any provision or part of this Contract or the application thereof to any person or circumstance shall ever by held by any agency or court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Contract and the application of such provision or part of this Contract to other persons or circumstances shall not be affected thereby 4 11 Modification This Contract shall be subject to change or modification only with the mutual written consent of Commerce and UTRWD -41- 4 12 Addresses and Notices Unless otherwise notified in writing by the other, the addresses of Commerce and UTRWD are and shall remain as follows Commerce City of Commerce Attn Mayor 1119 Alamo Street Commerce, Texas 75428 UTRWD Upper Trinity Regional Water District Attn President, Board of Directors 396 W Main, Suite 102 Lewisville, Texas 75067 4 13 Assionability This Contract shall be assignable by either party with the written consent of the other party, which consent shall not be unreasonably withheld or delayed 4 14 Time of the Essence Time is of the essence with respect to all matters covered by this agreement 4 15 Authority of Parties Executing Agreement By their execution hereof, each of the undersigned parties represents and warrants to the parties to this document that he or she has the authority to execute the document in the capacity shown on this document 4 16 Captions The captions appearing at the first of each numbered section or paragraph in this Contract are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract -42- IN WITNESS WHEREOF, the parties hereto have executed this Contract in multiple copies, each of which shall be deemed to be an original and of equal force and effect, effective upon the execution hereof by both parties, provided, however, for purposes of Section 4 04 only, the term "effective date" means the latter of (1) execution by the parties hereto or (2) execution of the contract between Commerce and SRMWD to be attached as Exhibit "G" hereto Executed ~unc J , 1990 CITY OF COMMERCE, TEXAS BY nayor ATTEST Cit Secretary (SEAL] -43- Executed , 1990 ATTEST Secr tary, Board of Dir tors [SEAL] \oom\water2 *on UPPER TRINITY REGIONAL WATER DISTRICT j By irge, dent, Board of Directors ZrreneraT eunse er ~~er nity Regional Water District -44- 'Exhibit A - COB/North Texas Contract .Exhibit B - COE/Irving Contract vExhibit C - COE/SRMWD Contract 'Exhibit D - Supplemental COE/SRMWD Contract Exhibit E - CA No 03-4797 Exhibit F - Permit No 2336 /Exhibit G - Commerce/SRMWD Contract Exhibit H - Sulphur Springs/SWMWD Contract Exhibit I - Cooper/SWMWD Contract Exhibit J - Application to Amend CA No 03-4797 V m\watet2 Lis CONTRACT CONTRACT BE_WEh1 THE UNITE.) AND NORTH TEXAS MUNICIPAL WATER FOR WATER STORAGE SPACE IN C01 DACn29-tt-A-3,00 TLS OF AMEFiC OF TEXAS RESERVOIR / 1N THIS CONTRACT, entered into this 29th day of March 1968 by and between the UNIT-ED STATES OF AMERIC (hereinafter called thGovernment), represented by the Contractin Officer executirg this contract, and the NORTH TEXAS MUNICIPAL WA ER DISTRICT OF TEfA.3, an agency of the State of Texas with its prin ipal office in the citf of Wylie, Texas (hereinafter called the D1 trict), WITJESSET9 TEAT WHEREAS, construction of the Cooper R servoir on South Sulphur River, Texas (hereinafter called the Probe t), has been authorized by the Act approved 3 September 1954 (Publ c Law 780, 83d Congress, 2d Session), as emended by the Act approve 3 August 1955 (Public Law 218, 84th Congress, 1st Sesstion), and WHEREAS, the North Texas Municipal We governmental agency of the State of Texas, sions of Acts 1951, 52d Legislature, State (Art 8280-141 Vernons Texas Statutes), wi and all rights in and to municipal, domest supply storage capacity to be provided in authorized by the Texas Water Rights Commi whom the Contracting Officer should negoti portion of the water supply storage in the WHEREAS, the Government is authorized 1958 (Title III of Public Law 85-500 appro by Section 10 of the Federal Water Polluti of 1961 (Public Law 87-88 approved 20 July in any reservoir project to be constructed to impound water for initial or anticipate municipal or industrial water, and, -er District of Texas, a created under the provi- of Texas, Reguiar Session ,h the power to acquire any c, and industrial water ,he Project, has been sion as an agency with .te with respect to a Project, and, by the Water Supply Act of ed 3 July 1958), as amended n Control Act Amendments 1961) to include storage by the Cutpa of Engineers future demand or need for WHEREAS, Public Law 88-140, approved 6 October 1963, makes permanent rights of states and local interests to utilize municipal and industrial storage in Corps of Enginee s' reservoirs for which they contributed, and, WHEREAS, storage space has been inclu ed in the Project for municipal and industrial water supply, and CONTRACT NO DAC429-o8-?-J1C0 WHEREAS, the District desires to utilize 100,o2) ac-e-fee- of storage space for future munipipal and industrial water supply as set forth in Article 1, and, WHEREAS, the District hereby agrees to fulfill the local interest requirements of the Water Supply Act of 1958, as amended NOW, THEREFORE, the parties do mutually agree as follows ARTICLE 1 WATER STORAGE SPACE - a The District shall have the right to utilize, from the 10th anniversary of the date of deliberate impoundment, an undivided thirty-six and eignt hundred fiftl-nine thousanaths percent (36 859%) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the District to impound water in the Project for its future muni- cipal and industrial use, and make such diversions as granted to the District by the Texas Water Rights Commission, or its successors, to the extent such storage will provide b The right described in Article 1 a above is subject to the retention by the Government ana others of the remairing undivided sixty-three and one hunared forty-one thousandths percent (b3 14l%) of the storage space for such purposes as the Government may deem advisable c The District will not make or permit withdrawals which would lower the water level below elevation 415 5 feet above mean sea level, unless expressly approved in writing by the Contracting Officer d The Government shall not be responsible for diversion by others, nor will it become a party to any controversies between users of the aforesaid storage space, except as such controversies may affect storage space reserved by the Government e The design and location of any future District installations or facilities that the District may construct at the Project for the purpose of diversions or withdrawals shall be subject to the approval of the Contracting Officer, and the cost of such installations or facilities, or any modifications thereof, _ shall be borne by the District f The Government reserves the right to take such mea- sures as may be necessary in the operation of the Project to preserve life and/or property g The Government reserves the right at all times to maintain a low flow release of 5 cubic feet per second, regardless of the elevation of the water During periods of regulation for 2 CONTRACT +0 DAVQ94C-A-0100 water supply (when the resen oir water surface is below elevation 440 0 feet above mean sea level), the District shall be entitled no percent (0 0001) of the total yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second, for a ne- od of 10 years after the date of deliberate impoundment Thereafter, the District shal $ be entitled to thirt1-si% and eigzt ,,ndred fifty-vine thousandths percent (30 8595) of the total yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second Should the rate of withdrawal of water supply, downstream release, and evapora`ion fail to maintain a recession in water level of 2/10 of a foot in any 10-day period during the months May througn October, inclusive, the Government reserves the right to obtain the above rate of recession by release of water downstream in excess of 5 c f s in the interest of mosquito control Should the inflow during the months May through October, inclusive, result in a rise in water level and require an additional expenditure in the interest of mosquito control, proportionate reimbursement for sucn expenditure shall be made by the District h To implement the provisions of this article, the Government shall, at the appropriate time and in consultation with the District, formulate a plan of operation for the Project which will achieve these objectives i The "date of deliberate impoundment" as used in this contract shall mean the date upon which the Project becomes operative for storage of water for any of the purposes contained in the authorizing act ARTICLE 2 METERING - For the purpose of maintaining an accurate record of water resources at the Project, the District shall install suitable meters or metering devices satisfactory to the Contracting Officer, without cost to the Government, at such time as the District may withdraw water from the Project The District shall furnish the Government periodically, at least monthly, a record of all such withdrawals from the Project Nothing in this article is to be construed as prohibiting participa- tion by the District in cooperative gaging programs sponsored by the United States Geological Survey or other Government agencies in the water resources field ARTICLE 3 FEDERAL AND STATE LAWS - The District shall utilize such storage space in a manner consistent with Federal and state laws ARTICLE 4 REGULATION OF THE USE OF WATER - The regulation of the use of water stored in th- water sapply spaces covered by this contract x00,625 acre-feet for future) shall be the 3 CONTRACT NO DACA29-6c-K-Olco responsibility of the District upon initiation of Darment bi the District for construction costs allocated to such Daces ARTICLE 5 CONSIDERATION AND PAY14EIT - a In gonsideration of the Government's providing the aforesaid storage space of 100,b25 acre-feet for future wate- supply use by the District, it is agreed wiat the District shall pay the following sums to the Government (1) Three million four hundred and six thousand eight hundred and forty-eight dollars (03,4ob,Wl which is the estimated cost, including irterest during construction, of providing the storage space for future water supply use in payments in the amount of one hundrea thirty-four thousand four hundred anu sixty-foix dollars ($134,464) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "B" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the 10th anniversary of the date the District is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the -first payment under this contract (2) Twelve and eight hundrea thirty-six tnousandths percent (12.83~h) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be fourteen thousand nine hundrea and fifteen dollars ($14,915) will be due and payaole within thirty (30) days following the 10th anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to twelve and eight hundred thirty-six thousandtns percent (12 836%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and twelve and eignt hundred thirty-six thousandths percent (12 836%) of the actual experienced point-use cost of ordinary operation and maintenance for the pre- ceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the 4 CONTRACT NO DACd29-oo-A-0100 Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional It operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense (3) Ten and eight hunared thirty-seven thousandths percent (11L. of the cost of seaimentation resurveys ana ,joint- use major capital replacements when incurred (4) In the event of default in the payment of the costs contained in Article 5 a (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum taereon, compounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid (5) The District may, upon written notice to the Government at any time prior to the tenth anniversary date of deliberate impoundment, advance or defer the date of first use of all or any portion of the storage space provided under this con- tract for future water supply, subject to the requirements that the entire amount of the construction costs, including interest during construction, allocated to water supply shall be repaid within the life of the project, and that repayment of the amount of such costs for any portion of the storage space used shall be made within a period of not to exceed 50 years from the date such portion of the storage space is first used for the storage of water for water supply purposes No principal or interest payment with respect to the storage space provided under this contract for future water supply is required to be made during the first 10 years following the date of deliberate impoundment unless all or a portion of such storage space is used by the District for the storage of water for water supply purposes, in which event repayment for the portion used shall be started and shall be repaid within not to exceed 50 years from the date of first use In the event the date of first use of all or a portion of the future water supply storage space is _ deferred beyond the 10th anniversary date of deliberate impoundment, interest at the rate specified will be charged for that portion from the 11th year until such time as it is first used for the storage of water for water supply purposes The District may at its option pay the interest as it becomes due or may allow the interest to accumulate until the storage space is used If this latter option is exercised the interest will be compounded annually and will be added to the principal amount 5 CONTRACT NO DAU29-068-A-0100 b In the event the actual first cost of the Project exceeds the presently estimated first cost, as set forth in exhibit "A," the aforesaid annual payments shall be _nc-eased to reflect the actual first cost, including interest during construction, as determined by the Contracting Officer In the event such first cost of the ProjeA is less than the presently estimated first cost, the aforesaid annual payments shall be decreased to reflect the actual first cost, including interest during construction, as determined by the Contracting Officer In the event the annual payments are increased or decreased, as provided above, an adjust- ment, as determined by the Contracting Officer, of payments made prior to the determination of the final Project cost shall be made in the first payment due after such costs are determined The interest rates used in this contract are for estimating purposes only The interest rate used for purposes of computing interest during construction and interest on the unpaid balance shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the project is ini- tiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from the date of issue At the time that the final Project costs are determined, the repayment schedule shall be modified to reflect the increased or decreased annual payment and such modification will form a part of this contract ARTICLE 6 NO WARRANTIES AS TO QUALITY OF WATER_ - The parties hereto recognize that the water in the storage space being made available to the District under the terms of this agreement is raw reservoir water The Government makes no representations with respect to the conditions or the potability of the water, and assumes no responsibility therefor or for treatment of the water, or for undertaking any action which might tend to reduce con- tamination from the reservoir or from other sources in the iatershed ARTICLE T PERIOD OF CONTRACT - This contract shall become effective as of the date of approval by the secretary of the Army, and shall continue in full force and effect, under the conditions set forth herein, not to exceed the life of the Project This con- tract is subject to the provisions of Public Law 88-140, approved 16 October 1963, and the District shall have a permanent right to the use of such storage space after the period of years specified for repayment under Article 5 in the contract, or as amended, subject to the following a The District must have discharged its responsibilities for payment of the costs allocated to water supply 6 CONTRAC" NO DACd29-00-A-J100 b The District must continue 0arment of its share of annual operation and maintenance costs allocated to water supply c The District must pay in a lump sum, or annually with interest,tthe costs allocated to water supply which may, at termination of the repayment period set forth in the contract or thereafter, be required for any necessary reconstruction, re- habilitation, or replacement of Project features which may be required to continue satisfactory operation of the Project Such costs will be established by the Contracting Officer Repayment arrangements will be in writing and will be made a part of this contract d Upon termination of the repayment periods set forth in the contract, the Contracting Officer shall redetermine the storage space for municipal and industrial water supply, taking into account such equitable reallocation of reservoir storage capacities among the purposes served by the Project as may be necessary due to sedimentation Such findings, and the storage space allocated to municipal and industrial water supply, shall be defined and described in an exhibit which will be made a part of this contract Following the same principle, such reallocation of reservoir storage capacity may be further adjusted from time to time as the result of sedi- mentation resurveys to reflect actual rates of sedimentation and the exhibit revised to show the revised storage space allocated to municipal and industrial water supply e The permanent rights of the District under this contract shall be continued as long as the Government continues to operate the Project In the event the Government no longer operates the Project, such rights may be continued subject to the execution of a separate contract, or supplement agreement providing for (1) Continued operation by the District of such part of the facility as is necessary for utilization of the storage space allocated to it, (2) Terms which will protect the public-interest, and (3) Effective absolvement of the Government by the District from all liability in connection with such con- tinued operation 7 CONTRACT NO DACW29-00-A-0100 ARTICLE 8 OPFRATIO*f PI4D MAT14TE4PNCE - The Gove-nment shall operate and maintain the Project owned by the Government The District shall have the righ+ to make withdrawals of water for its purposes as needed in accordance with Article 1 The District shall be responsible for operation and maintenance of all features and appurtenances which may be provided and owned by the District ARTICLE 9 RIGHTS-OF-WAY - The Government, subject to the approval of the Secretary of the Army, shall, without additional con- sideration, grant to the District, by separate instrument or instru- ments, an easement or easements as may be required for the construction, operation and maintenance of pumping facilities and water supply pipelines in, on, over, and across Government-owned lands acquired for project purposes The instruments granting such easements shall be consistent with Government contract provisions in effect at that time, with such modifications as may be necessary in each instance and as may be approved by the Government ARTICLE 10 RELEASE OF CLAIMS - The District shall hold and save the Government, including its officers, agents, and employees harmless for liability of any nature or kind for or on account of any claim for damages which may be filed or asserted as a result of the storage in the Project or withdrawal or release of water from the Project, made or ordered by the District, or as a result of the construction, operation, or maintenance of the features or appurtenances owned and operated by the District ARTICLE 11 TRANSFER OR ASSIGNMENT - The District shall not transfer or assign this contract, nor any rights acquired thereunder, nor suballot said water or storage space or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without approval of the Secretary of the Army, provided, that, unless contrary to +he public interest, this restriction shall not be construed to apply to any water which may be obtained from the water supply storage space by the District and furnished to any third party or parties ARTICLE 12 OFFICIALS NOT TO BENEFIT - No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit ARTICLE 13 COVENANT AGAINST CONTINGENT FEES - The District warrants that no person or selling aaency has been employed or retained to solicit or secure this contract upon an agreement or 8 ='iiAC- 3 J,Cd2r- _ .1 I understanding or a cowllssion, D, cent,r,, c-o,c,age, C), ^0't rL" 'r fee, excenting bona '-de e-nlcre-5 o- ..o a f,ae e.tatlls^ed com- merci-1 or sell-no iZenc es nalrtc_r_. L, he _isr-lct i.,r the purpose of seeurlrg baslne-s 7r b-sacb o v olatlo- o° *-is war^antr the Gorerr-lien} 91,e11 n,%e `ke r_g-t to r,nul th.s cortract without llab_lltl or n ita dlscre-.,)n to ^.3 `o thu contr3~` -ic.e or consideration, or othe-.rise r-rcVL', `re full a-ount of sucn comrlsslon, pe-centaec, brokerage, -r cont.roent °ee ARTICLE lb APDRO~ L nr CON--t-T - "h s contract shall be subject to the wrlt'en anoroial of he Seclctarf of the A.-r,, and shall not be binding until so approved IN WITNESS WHEREOF, the Dartles 1,e-eto have executed this agreement as of the dai and ,/_a- f_-st BDOVE ..+-.tten APPROVED Secretary of the Army 1 1 JUL 1968 DATE THE TtITED 3TATES OF A14ERICA Bj 1% Contract3y GTflcer) i NORTH TF_XA- "UNICIPAL WATER DISTRICT OF TEXAS Pres,-ent D-a ier C. Uylie, 'eras 75098 Post U,fice .,ddress ATTEST \ Secretary, North Texas / Municipal Water District/ of Texas A DDZM1 A C/tPn can r .J ALwrney, oortn 'Texas/ Municinal Water Distr ct of Texas 9 tom.-.. CONIRACI 0 DAL, 129-00- -„ICU I, C True+t ',i,th , certify that I an the Secretary of the NORTh TEXAS 211ICIPAL YIATER DISTRICT OF 'EvAS herein, a body politic ana corporate, t}iat A R -Lc --l --TT who signed this contract on behalr of the Distr-ct was then PRESIDENT of said NORTH TEXAS ITUNICI"AL LIVED DISiPICT OF TE(A , that said contract was duly signed or and on behalf o the PORT{ TLIAS MUNICIPAL MATER DISTRICT OF TEXAS by autho-ity of its governing Dody and is within the scope of its legal powers IN WITNESS IMREOF, I have hereunto affixed ray hand and the seal of said NORTH TEXAS MUNICIPA. WATER DISTRICT OF TEXAS this 2sth day of March 196 d Secretary, North Texas Municipfl Water District of Texas CORPORATE SEAL 10 EXHIBIT A I - Reservoir Storages Percent of M&I water Usable sypnly space Elevation storage(- (ft m s 1 ) (ac-ft) Water supply storage Municipal & industrial Future use, North Texas Municipal Water District 36 859 100,625 Other M&I water supply users 63 141 172,375 Total M&I water supply 100 000 415 5-440 0 273,000 storage Flood control storage - 440 0-446 2 131 400 0 Reservoir storage - 0 , 0 (1)Storage remaining after 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for future use of North Texas Municipal Water District $ 3,198,738 M&I water supply for use by others 5,479.577 Subtotal - M&I water supply #,b78.315 Texas Water Development Board participation 1,715,471 Flood Control (nonreimbursable) 10,196,503 Recreation (nonreimbursable) 5,938,711 Total 2 ,529t000 III - Costs to be Repaid by the North Texas Municipal Water 3b 859% of cost allocated to M&I water supply ( 36859 x $8,678,315) $ 3,198,738 Interest during construction (3253% x 1/2 of 4-year period) 2081110 Total $ 3,406,848 1 i IV - Allocation of Estimated Operation, Maintenance, and Major Replacements Cost NTMWD Other M&I M&I Flood Water SuD Water SuD TWDB Control Rec Total /Yr /Y~ r $/Yr lYr T/Tr $/yr Operation & maint Specific cost 0 0 0 50,600 58,600 109,200 Joint-use cost 14,915 4 25,550 8 439 4 8 37,270 8 8 30 026 116,200 4 Total ,915 1 25,550 , 39 7, 70 00 225, Major replacements Specific cost 0 0 0 0 18,600 18,600 Joint-use cost 115 197 65 - 04 179` 1 060 Total 115 197 65 500 1 779 19 V - Annual Charges for Future M&I Water Supply Use - North Texas Municipal Water District Interest and amortization of cost of M&I water supply features (see computation below) $ 134,464 Joint-use operation and maintenance costs equivalent to 12 836% of the actual ,joint-use operation and maintenance costs, computed as follows 34 824% = percent of ,joint-use 0&M cost allocated to M&I water supply 36 859% = percent M&I water supply space to be used by the North Texas Municipal Water District (34 824% x 36859) - 12 836% of the actual ,joint-use 0&M costs Estimated annual cost ( 12836 x $116,200) $ 14,915 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 10 837% of the actual ,joint-use mayor capital replacements and sedimentation resurvey costs, computed as follows 29 400% percent ,joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 36 859% = percent M&I water supply space to be used b; the North Texas Municipal Water District (29 400% x 36859) = 10 8371 of the actual ,joint-use mayor capital replacements and sedimentation resurvey costs Estimated annual cost - ( 10837 x $1,060) _ $ 115 Total annual cost for future M&I water supply $ 149,494 2 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance WHEREIN 1 1+i)n-1 D = Annual payment D = x R R = Amount to be repaid = $3,4ob,E i = Interest rate = 0 03253 n = Number of payments = 50 D = 03253(1+0 Q253) 49 x $3,40b,848 = $3,4o6,848 x 0 0394689 (1+0 03253)501 D = $134,464 3 EXHIBIT B AMORTIZATION SCHEDULE FOR COST' OF WATER' SUPPLY FOR FUTURE USE BY THE NORTH TEXAS MUNICIPAL WATER DISTRICT TOTAL COST S 3406048 NUMRFR OF PAvmFNTS 50 INTFREST RATE, PFRCFNT - - - - - - - - - - - - - - - 90 0 03253 - - - - - - - ANNIIAL - - - - - - - AMOUNT - - - - - - - - - - - - - APPLICATION - - - - - - - SALANrE PAYMFNT OF - - - - - - - - - - - ALLOC NUMBER PAYMFNT INTERFST - ALLOC POST , COST 1 134464 00 0 00 -134464 00 3272384,n0 2 134464 00 106450 65 28013.55 3244370.65 3 134464 00 105539,37 28924 63 3215446 02 4 134464 00 104698 45 29A65 55 5185580 47 5 1,14464 00 103626 93 30837 07 3154743.40 6 134464.00 102621 80 31840.20 3122903 20 7 134464 00 101588,04 32875.96 3090027.24 8 134464 nn 100518.58 33945,42 3056081.82 9 134464,00 99414.34 35049.66 3021n32.15 10 134464 00 982/4,17 36180 83 2984842.33 31 134464 00 97096,92 37367 08 2947475.25 12 134464.00 95881.37 1A582.63 2908892 62 13 134464 00 94626 27 39837 73 2869054,89 14 134464 00 93330 35 41133 65 2827921 24 15 134464 00 91992 27 42471.73 2785440.51 16 134464,00 Q0610.67 43853 33 2741596.18 17 134464 00 89184.12 45279 68 2696316.31 18 134464 On 87711.16 46752.84 2649563 47 19 134464.00 86190 29 48273.71 2601280.76 20 134464.00 84619 95 49844.05 2551445.70 21 134464 00 82998.52 51465 48 2499980.22 22 134464.00 81324.35 53139 65 2446840 57 23 134464 00 79595.72 54868 28 2391972.29 24 134464 00 77810 85 56653.15 2335319 14 25 134464 00 75Q67 93 58496 07 2276823.07 26 134464.00 74665 OF 60398.95 2216424 12 27 134464 00 72100.27 62361.73 2154060,39 28 134464 00 70071 58 64392.42 2089667,97 29 134464.00 67976 89 66487.11 2023180.86 30 134464 00 65814.07 68649.93 1954530 93 31 134464 00 63580 89 70883 11 1883647.A2 32 134464 00 61275 06 73188.94 1810458.88 33 134464 00 58894 22 75569 78 1734889,11 14 134464.00 56435 94 78028,06 1656861.04 35 134464.00 53897 68 80566.32 1576294.73 36 134464.00 51276,86 83187.14 1493107,58 37 134464.00 48570.78 85891.22 1607214.36 38 134464 00 45776,68 88687.32 i318527,04 39 134464.00 42891.68 91572.32 1226954.72 40 134464 00 39912.83 94551 17 1132403.55 41 134464 00 36837,08 97626 92 1034776.63 42 134464 00 33661.28 100802.72 933973.91 43 134464.00 30382.17 104081.83 829892.08 44 134464 00 26996 38 107467 62 722424 46 45 134464.00 23500.46 110963.54 611460.92 46 134464.00 19890,82 114573.18 496887.74 47 134464 00 16163.75 118300.25 378587 49 48 134464.00 12315,45 122148.55 256438,94 49 134464 00 8341.95 126122.05 130316,89 50 134556 00 4239 20 130316 89 0,00 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 SUPPLEMENTAL AGREEMENT NO 1 BETWEEN THE UNITED STATES OF AMERICA AND THE NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR This Supplemental Agreement No 1, entered into thiq.2.(Zf-day of 191( by and between the UNITED STATES OF AMERICA (hereinafter called the Government) represented by the contracting officer executing this agreement, and the NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS, an agency of the State of Texas, with its principal office in the City of Wylie, Texas (hereinafter called the District), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0100 with the District for the purchase of water supply storage space in Cooper Reservoir, and WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0102 with the TEXAS WATER DEVELOPMENT BOARD, an agency of the State of Texas existing under the laws of Texas (hereinafter called the Board), and WHEREAS, at the time the Board entered into Contract No DACW-29-68-A-0102, the Board had intended to construct the Sulphur Bluff and Naples Reservoirs (features of the Texas Water Plan) downstream of Cooper Reservoir, and WHEREAS, construction of these downstream reservoirs would have inundated areas now protected by existing channel and levee improvements already constructed under the Project as well as areas to be protected by future levee and channel improvements authorized to be constructed under the Project, and would have eliminated certain levee and channel improvements authorized for const-r --ion under the Project, and WHEREAS, the construction of these downstream reservoirs would operate to reduce the benefits allocable to the purpose of food control in the Project, and thus increase the costs allocated to the purpose of the municipal and industrial water supply over those allocable to such purpose in the Project as authorized, and W11FREAS, the Board in a resolution dated 27 April 1966 indicated - its willingness to bear the additional costs allocated to the purpose of munu.ipal and industrial water supply in Cooper Reservoir resulting from the construction and operation of the downstream reservairs, to the end that costs to purchlsers of municipal and industrial water supply stornge space in Cooper Reservoir would be the same both with and without construction of those features of the Texas Water Plan, and Contract No DACW29-68-A-0100 Supplemental Agreement No 1 WHEREAS, an earlier plan for development of Cooper Reservoir included storage space in the amount of 32,100 acre-feet for the purpose of water quality control, and WHEREAS, a minimum downstream release of 5 c f s from Cooper Reservoir will be sufficient to satisfy the water quality needs for the Sulphur River, thus making unnecessary the provision of storage space in Cooper Reservoir for water quality control, and such minimum release being assured by the State of Texas in accordance with state standards as approved by the Federal Water Pollution Control Administration (whose functions were incorporated into the authority of the Environmental Protection Agency), and WHEREAS, the space previously reserved for water quality control has been reassigned, in equal amounts, to the North Texas Municipal Water District and to the City of Irving by the Texas Water Rights Commission, and WHEREAS, the District and the City of Irving have previously agreed to purchase the above space, and WHEREAS, the elimination of water quality control as a project purpose would operate to increase the costs allocated to the purpose of municipal and industrial water supply, both as to total cost and cost per unit of storage space, and WHEREAS, the Board had previously expressed its intention that as a result of the Board's financial involvement in the project, the unit cost to be paid by the purchasers of municipal and industrial water supply storage space in Cooper Reservoir should be based on an alloca- tion of project costs with water quality control storage in the amount of 32,100 acre-feet included as a project purpose, and WHEREAS, in accordance with the terms and conditions expressed ill Contract No DACW29-68-A-0102, the Board had obligated itself to pay the Government the additional costs allocated to municipal and indus- trial water supply in the Cooper Reservoir, inclusive of the additional joint-use annual cost for construction, the additional joint-use cost for operation and maintenance, and the additional cost for replacements and sedimentation resurveys, when incurred, resulting from modification of the Project in the interest of the Sulphur Bluff Reservoir and Naples Reservoir features of the Texas Water Plan, and resulting from the elimination of water quality control as a project purpose, and 2 0 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 WHEREAS, by letter dated 22 March 1913 the Board advised the Government that construction of the Sulphur Bluff and Naples Reservoirs will not be likely in the foreseeable future, and accordingly, that certain downstream levee and channel improvements that previously would have been affected or eliminated by the implementation of the Sulphur Bluff and Naples Reservoirs should therefore be reinstated into the formulation of project plans, that the fiscal responsibility of the purchasers of water supply storage space should be realined to reflect differences in costs due to the elimination of the downstream reservoirs from further considerations in the development of the project, that the financial responsibility should be further realined such that the pur- chasers of municipal and industrial water supply storage space assume the increasea costs to water supply which resulted from the elimination of water quality control as a project purpose, and WHEREAS, in essence, the Board desires to withdraw as a cost- sharing cosponsor in the development of the Project with the result that all of its fiscal responsibilities in connection with the development of the Texas Water Plan and its fiscal responsibilities in connection with the elimination of water quality control as a project purpose, in so far as these obligations relate to the water supply purpose of the Project, be redistributed to the purchasers of water supply storage space in Cooper Reservoir, and WHEREAS, the remaining purchasers of water supply storage space have indicated a willingness to assume all of the fiscal responsibil- ities occasioned by the withdrawal of the Board as described above, and WHEREAS, the District has indicated its willingness to assume a proportional share of these fiscal responsibilities in accordarce with the terms and conditions set forth in the basic cuntLact as amended by this supplemental agreement, and WHEREAS, because it is the policy of Congress that the "Federal Government should participate and cooperate with states and local interests in developing such water supplies" as proclaimed in Sec 301(a) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable for the Government to incorporate into the basic contract the above realinement of fiscal responsibilities as they relate to the District NOW THEREFORE, the parties hereto do mutually agree to amend Contract No DACW29-68-A-0100 in the following manner and the basic contract is so amended to read as follows, to wit 3 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 1 Subparagraphs a(1), a(2), and a(3) of Article 5 of the basic contract are deleted and the following substituted therefor "(1) Nine million two hundred and seven thousand six hundred and thirty-eight dollars $9,207,638) which is the estimated cost, including interest during construction, of providing the storage space for future water sugoly use in payments in the amount of three hundred sixty-tree thousand four hundred and fifteen dollars ($363,415) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in Exhibit "B" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the 10th anniversary of the date the District is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first pay- ment under this contract "(2) Thirteen and eight hundred and three thousandths percent (13 803%) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be twenty- five thousand nine hundred and seventy-three dollars ($25,973) will be due and payable within thirty (30) days following the 10th anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to thirteen and eight hundred and three thousandths percent (13 803%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect t„e difference between the first payment and thirteen and eight hundred and three thousandths percent (13 803%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of opera- tion and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense "(3) Eleven and six hundred and eighteen thousandths percent (11 618%) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred " 4 Contract No DACn29-68-A-01CJ Supplemental Agreement iro 1 2 Exhibits A and B of the basic contract are replaced Dy Exhibits A and B attached hereto bearing the Contract No DACW29-68-A-0100, Supplemental Agreement No 1 3 This supplemental agreement shall be subject to the written approval of the Secretary of the Army and shall not be binding until so approved % IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No 1 as of the day and year first above written APPROVED THE UNITED STATES OF AMERICA AA~ ANyA 31stgid e tl I t s n( l Ie n nv DATE c(W,a C-NO 4 Nov 14'17 By (EARLYeJ RUSHfIIIer) Colonel, CE NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS I '?'1 ATTEST Secretary, North Texas Municipal Water District of Texas APPROVED AS TO FORM P 0 Drawer Wylie, Texa 75098 (Post office Address) 5 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 I, C TRUETT SMITH , certify that I am the Secretary of the NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS herein, a body politic and corporate, that JACK I MCJUNKIN who signed this contract on behalf of the District was then PRESIDENT of said NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS, that said contract was duly signed for and on behalf of the NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS by authority of its governing body and is within the scope of its legal powers IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS this 8th day of JUNE 1976 A North Texas Municipa District of Texas CORPORATE SEAL 6 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 EXHIBIT A Contract No DAC1429-68-A-0100 Supplemental Agreement No 1 EXHIBIT A I - Reservoir Storages I Water supply storage Municipal 6 industrial Future use, North Texas Tn~cipal Water District Other M&I water supply users Total M&I water supply storage Flood control storage Reservoir storage Percent of M&I water Usable supply space Elevation storage(1) (ft m s 1 1 (ac-ft) 36 859 100,625 63 141 172,375 100 000 415 5-440 0 273,000 - 440 0-446 2 131,400 404,400 (1) Storage remaining after 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for future use of North Texas Municipal Water District $ 8,645,182 M&I water supply for use by others 14,809,556 Subtotal - MdI water supply $23,454,738 Flood Control (non-reimbursable) 27,602,183 Recreation (non-reimbursable) 12,653,079 Total $63,710,000 III - Costs to be Reoaid by the North Texas Municipal Water District for Future Water Supply Use 36 859% of-cost allocated to M&I water supply ( 36859 x $23,454,738) $ 8,645,182 Interest during construction (3 253 x 4 of 4-year period) 562,456 Total $ 9,207,638 Contract No DACW29-68-A-0100 Supplemental Agreement No 1 IV - Allocation of Fstimlted Operation, Maintenance, and Ma NTHWD Other M&I M&I Water Water Flood Supply Supply Control Rec Total z $/yr $/yr $/yr $/yr $/yr Operation & maint Specific cost 0 0 81,939 94,893 176,832 Joint-use cost 25,973 44,491 73,229 44,475 188,168 Total 25,973 44,491 155,168 139,368 365,000 Major replacements Specific cost 0 0 0 55,819 55,819 Joint-use cost 370 633 1,702 476 3,181 Total 370 633 1,702 56,295 59,000 V - Annual Charges for Future M&I Water Supply Use - North Texas Municipal Water District Interest and amortization of cost of MsI water supply features (see computation below) $363,415 Joint-use operation and maintenance costs equivalent to 13 8032 of the actual joint-use operation and maintenance costs, computed as follows 37 44756% - percent of joint-use 06M cost allocated to M&I water supply 36 859% - percent M6I water supply space to be used by the North Texas Municipal Water District (37 44756 x 36859) - 13 803% of the actual joint-use 06M costs Estimated annual cost ( 13803 x $188,168) $ 25,973 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 11 618% of the actual joint-use major capital replacements and sedimentatiot, resurvey costs, computed as follows 31 51961% - percent joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 36 859% - percent M6I water suoply space to be used by the North Texas Municipal Water District (31 51961% x 36859) - 11 618% of the actual joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost - ( 11618 x $3,181) - $ 370 Total annual cost for future M&I water supply $389,758 Coitract No DACW29-68-A-0100 Supplemental Agreement No 1 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN i(l+i n-1 D ~ Ann,.al payment D (1+i)n_l x R R = amount to be repaid - $9,207,638 i - Interest rate - 0 03253 n - Number of payments - 50 D 03253(1+0 03253) 49 x $9,207,638 - $9,207,638 x 0 0394689 (1+0 03253)50-1 D - $363,415 A-3 Contract No DAC429-68-A-0100 Supplemental Agreement No 1 i EXHIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY NORTH TEXAS MUNICIPAL WATER DISTRICT OF TEXAS 'r I'\r I vl v1 l- I 1> 1 I\ I F, I I I I I ~~~nn1_ „11101 1 f 11 V 1 ul VI'il r1, 1'1(Ir VI I 3 4 5 6 7 K 9 11) 11 Ie 13 14 I5 16 17 I ,5 11 2V It 22 rJ J4 !5 26 d7 3'1 JI J_ 3J J li 3J J4 J7 4 1) 4'1 11 I~ 41 44 45 ,6 41 11 dl , 1 IJ'J1 ~ v vlVntl v vv Supplemeocil Arrecment No 1 EYIIIBIT B Al tI I1/11I)J 141L,1F,,1 K%NuA,0F- U JhJ415 96 J65415 91) J63415.)6 J6AIJ )6 J6J415 )6 363415 J6 J63415.)1) JoJ415 9h J,,J415 J6 I6J41S.96 J0J415 9h 363415.96 16J415.)6 Ju341'1 .96 J6J41S.9A J6J417 )h 36'141 5.90 JuJ4l5 9h JO)J41 )6 163 111). it) Jh3415.Y„ 16JAI `,.9h s6JAl5.90 JAJ410.)h 16J415 )6 3o3 it , it, 16J41.). 96 J6 J41h.)h J11~41 b. q1, JhJ415.)6 161415. )h J, J41', )r1 1, J415. )6 Jo $-`11 ti h 1„J/115 16 J,141~.v6 J„ 1,11 )6 1h J,11 1 JhJ 415 J t1 141 161 11 1 J41 /h I +nl ,.9h Jh341n )o J +741 S.9h j 1141) 5 JAIJ.)6 1,1 1+ 1 0 1 n J1S41J 'I I>S 17 U1 54 2d52J) 51 261696 51 /y0U711 11) 27/J59 411 2/4560 06 ,j/1669 5d 2b 56d5 U1 265oUJ 4b 16'4x1 64 25913b.29 155744.UI 25.'1.41 . 51 2416,'5.00 24489U d5 2411'135 l.J 23/054 19 2J2)4J.64 22>S69).JI J24J17.04 211/)x.15 l1512U.UI 1112 )O.,J 1 ~U.)JIS U1 elm) I 11 99 194561 a/ 1 r / J7,< 6U 1"71 / 10 IIIdII.5o I/I4 5 „u 165uUJ /u 1591hd ~I ISdbeA II 14Su64 42 1Jh J1U 1b IJI 61 UI 123110 IIJJI/ ,I I'll S„b /i/ )JS1 )11)11) ,4 t,rlUr /1956 62 bJJI)/ )r SJ/51.9/ 4 1 , / r +111 J S h c l S4 ' SJ I , 11441 ,1 ALLJI, LJ41 7c 36's,415.00 J6J415 96 r511J 41 181ru J7 6U 11 9 45 dJJ45.25 46056.47 bdd55.d9 91146 Jd 94IJU dd 91d12.Ad IUU9)4 32 104279.66 IU/b/l•db 111114.45 114/)U.96 1115525.1 1 122JdU 7J 12hit) 1 71 1JU472 J2 IJ4116 5d 13Y09o.91 I4Jb2J.bU I4d2J5.d$ I5J119 95 lb6lou 94 IoJ24J 96 164 554 29 1/4UJ/.J6 I/96Y6 4U 1Mb544 40 IJISbU 16 191512.26 2U424/ 09 21Ud91 25 21II51 54 ?c4SJ5 00 2321 415. d $ 2JY/uU. 69 241 491 10 203049 2h 6J ,h, / 445 II e4 laud Jo 2JJ45)•34 2911JI Yb JO/oiJ.)9 51)7J1 Jo 1J,) I J J4u0r) 3511x,3 SI t ,\Ln vt,G OILLUL L' J.') I dd44222 00 b 7 60 bUb. 6J 669UJJ2 C5 4609612 /5 d5162b/.50 d.14U211.UU dJ5►Jb5 1J t520/6Ud /5 d104bII.dd oU61U65.Jb 1966U / I . Ub 1661191.Jd 7/J4119.0U 7642945.06 /52b154 IJ 7409629.UU /2b/24d•2J IIbuddb.Su 7UJU414 19 6/SJ5b97 6J 675bJ)1.u9 b612974.dd 64o46/Y.UU 0JI1509.Ub 610J40d.IJ 59YU214 19 5d21659 bd 564/022 JU ~4t,MeJ u9 52d2J19•JI SUYU/99 19 4oY~9d6.)4 4o15d1JJ IS(S 441/d4d. 6J 4JbUU9/ Ub 4UJ52 he.u6 Jd,JJ I I J l J JJ6J412.5U JJ15Y14 J4 JU6UJb5.U) ,219hJu2 ml G51.4U5/.U9 2242144./2 1)52249 Jn IbJ2JdI.J9 IJ42111.ill u1u541•uJ JJl9oJ mI J. s ` ASSURANCI OF CO IPLL1`CL ' 11'1 THL DL" 1' r L`1 of DEFEISE DII,ELTIVL LNDER fITLI I Or 1HL LIVIL RIGHTS ACT OC 1964 S NORTH TEXAS MUNICIPAL WATER DISTIICT (hereinafter called the "District") HLRLBY AGREES THAT it will comply with title VI of the Civil Rights Act of 1964 (P L 88-352) and all rcquiremcnts imoosed by or pursuant to the Directive of the Department of DefcnSC (32 CFR Part 300, issued as Department of Defense Directive 5500 11, December 2b, 1964) issued pursuant to that title, to the end that, in accordance with title VI of that Act and the Directive, no person is the United States shall, on the ground of r~cc, color, yr nation-il origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity in connection with the collection, distribution, and use of water, for municipal and industrial purposes, from storage space in the authorized Cooper Reservoir, wnich reservoir is to be constructed by the U S Army Corps of Engineers and in connectionwith which the District will receive financial assistance under the Water Suoply Act of 1958, 43 United States Code 390b, and HEREBY GIVES ASSURANCE THAT it will imsaediately take any measures necessary to effectuate this agreement If any real property or structure thereon is provided or -mproved with the aid of Federal financial assistance extended to the District by the Department of the Army, assurance stall obligate the District, or in the case of any transfer of such property, any transferee, for the period during which the real property or structure is used for another purpose involving the provision of similar services or benefits If any personal property is so provided, this assurance shall obligate the District for the period during which it retains ownerbhiD or possession of the property In all other cases, this assurance shall obligate the District for the period during which the Federal financial assistance is extended to it by the Department of the Army THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts, property, discounts or other Federal financial assistance extended after the date hereon to the District by the Department, including installment payments after such date on account of arrangements for Federal financial assistance which were approved „afor, such date The District recognizes and agrees that such Federal financial assistance kill be extended in reliance on the representations and agreements made in this assurance, and that the United States mall have the r16ht to seek ,udicial ,.nforcement of this isbura-iCr Th_s 4 tiu-,iuLe _s bidding on the District, its successors, Lri srr.rtLS, ana asbign'Lb and the person or persous wnobe blbna,ur~, a-)mar bLIOV ire „utiorizeu to sign this assurance on behalf or the Di~trrct , Dated \ORT3l IE\ S 'LNICIPAL lvA1Ed DISTCICT (District) Ev (Fresicent, Chaitriau o, lloaid, or Lomuaiable authorized off_~ial) 'tc ~cJ TIC le 2 (Dislict's mailing address) v o CO ~dC^ `0 DMCd29-od-4-0099 COhT?ACT ^h. C .^JJ STA'Zo OF AX-:C,, ^1D Tvr. CITI OF !=VI G, T:6AS, • 7v WPTJ9 S^_O L GE SPAC:, IN 0009ER RESERVOIR THIS CO TaACT, a-terea into th.s 29th day of 'larch 196 8 by ara between the nITED STATES OF A4 RICA (hereinafter called the Government), represented by the Contracting Officer executing this contact, and the City of 1-.ring, Texas, a municipal corporation existing under tre laws of Texas, with its principal office in the city of Irving, Dallas County, Texas (hereinafter called the City), WIT\ESSETH THAT WqEREAS, construction of the Cooper Reservoir on South Sulphur River, Texas (hereinafter called the Project), has beer authorized by tre Act approved 3 September 1954 (Public Law 780, 83e Congress, V~r 2d Sessio-), as amended by the Act approved August 1955 (Public pl o X99 o, Law 218, 84th Congress, 1st Session), and, WHEREAS, the City has been authorized by the Texas Water Rights Commis3ion as an agency with whom the Contrasting Officer should ^egotiate with respect to a portion of the water supply storage in the Project, and, WHEREAS, the Government is authorized by the dater Supply Act of 1958 (Title III of Public Law 85-500 approved 3 July 1958), as amended by Section 10 of the Federal Water Pollution Control Act Ameidmerts of 1961 (Public Law 87-88 approved 20 July 1961) to include storage in any reservoir j,4.,,ect to be constructed by the I Corps of Engineers to impound water for initial or anticipated future demand or need for municipal or industrial water, and r WHEREAS, Public Law 88-140, approved 16 October 1963, makes ctrm-vent the lights of states and local interests to utilize municipal and industrial storage in Corps of Engineers' reservoirs for which they contributed, and, WHEREAS, storage space has been includea in the project for municipal ana industrial water supply, and, WHEREAS, the City desires to utilize 54-,575 acre-feet of storage space as a source of 'zitial mun.cipal and "atrial water supply as set forty in Article 1, and, ` WitEREAS, the City desires to utilize an add.tio-a1-4",50 acre- feet of storage space for future runicipal anc indust o. .ater supply as set forty in Art.clc and, 1 03 --L.CT ?0 DAC 2y-o3 -0099 4ic---- 3, t c C,tj 1c-,o, g,,es to °L-fill tie lccal interest requlrc ---t, o the natcr Sana-, nct o" 1953, as amenaed II vl, ^.rZ?ZrORL, tFe oc-ties do rutually agree as follows ILTICLE 1 I AT«R.S^.Ou-,OE S°AC:: - a The City shall have the right to utilize an undivided nineteen ana nine hundred ninety-one tnousandths percent (19 991%) of the storage space in the Project between elevations 440 0 and 415 5 feet above :ean sea level as deemed necessary by the City to impouna water in tle Project for its initial municipal and industrial use, and make such diversions as granted to the City by the Texas Water Rights Commission, or its successors, to the extent such storage will provide b The City shall further have the right to utilize, from the 10th anniversary of the date of deliberate impoundment, an undivided sixteen and eight hundred sixty-eight thousanaths percent (16 6os') of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the City to impend .rater in the Project for its future municipal and indus- tria- Lae, and make such diversions as granted to the City by the Texas 4ater Rights Commission, or its successors, to the extent such storage will provide c The rights described in Articles 1 a and b above are sibject to the retention by the Government and others of the remaining undivided sixty-three and one hundred forty-one thousandths percent (63 141%) of the storage space for such purposes as the Government may deem advisable d The City vill not make or permit witharawals which wou..d lower the water level below elevation 415 5 feet above mean sea level, unless expressly approved in writing by the Contracting Officer e The Government shall not be responsible for diversion by others, nor will it become a party to any controversies betveen users of the aforesaid storage space, except as such controversies may affect storage space reserved by the Government f The design and location of any future City installa- tions or facilities that the City may construct at the Project for the purpose of diversions or withdrawals shall be subject to the r approval of the Contracting Officer, and the cost of such installs- tions or facilities, or any modifications thereof, shall be borne by the City 2 CONTRACT 10 DACn29-68-4-0099 g The Cove-^-e reserves the right to take such -eaaures as nay be necessarl n the ope-ation of the Project to preserve life and/or p-oocrt) h Tle Gove-rrent reserves the right at all times to ra.ntain a lo+ f16w release of ) cubic feet per second, regardless of the elevation o" the wate- During periods of regulation for water sLppl) (.nen t-ie reservoir water surface is below elevation 440 0 feet above mean sea level), the Citj shall be entitled to nineteen ana nice hundrea -inety-one thousaratns percent (19 991%) of the If-ela o the aforesaid storage space after allowance of the flow of 5 cubic feet per second, for a period of 10 years after the date of deliberate impounament Thereafter the City shall be entitled to thirty-six and eight hundred and fifty-nine thousanaths percent (36 859%) of the total yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second Should the rate of w.tidrawal for water supply, downstream release, and evaporation fail to maintain a recession in water level of 2/10 of a foot in any 10-day period during the months May through October, inclusive, the Government reserves the right to obtain the above rate of re- cession by release of water downstream in excess of 5 c f s in the interest of mosquito control Should the inflow during the months Me„ through October, inclusive, result in a rise in water level and ui-a an additional expenditure in the interest of mosquito con- rol, proportionate reimbursement for such expenditure shall be made the City i To implement the provisions of this article, the Govern- ment shall, at the appropriate time and in consultation with the City, formulate a plan of operation for the project wnich will achieve these objectives j The "date of deliberate impoundment" as used in this contract shall mean the date upon which tae Project becomes operative for storage of Ovate- for ary of the purposes contained in the author- izing Act ARTICLE 2 METERING - For the purpose of maintaining an accur- ate record of water resources at the Project, the City shall install suitable meters or metering devices satisfactory to the Contracting _ Officer without cost to the Government, at such time as the City may withdraw water from the Project The City shall furnish the Govern- ment periodically, at least montnly, a record of all such withdrawals from the Project Nothing in this article is to be construed as prohibiting participation by the City in cooperative gaging programs sponsored by the United States Geological Survey or other Government agencies in the water resources field 3 CC "ACT 0 DACv29-68-A-0099 )MINLZ 3 -Z-"-.AT MD !;i,^ _ S - ire Cit.( stall Lt.ll-e -LC^ storage soak r a tyh-e- "r,.stcnt with federal and state .,S=ICL: 4 F'GCL,rl USE 0-'J TM - The regulation of the use of w..ter sto-ea i^ t,e water -upply spaces covered oy t`is cortract (54,575 ao-e-zees for initia_, 46,050 acre-feet for future) srall be the -esocns.b~lity of tae City upon initiation of payment by the City Por construction costs allocated to such spaces $RTICLE 5 CONSIDCRATION A4 D PAYVELT - a In consiaeration of the Government's providing the aforesa-d storage space of 54,575 acre-feet for initial water supply use by tre City, it is agreed that the City shall pay the follow- ing sums to the Government (1) One million eight hundrWand forty seven thousand seven hurdred and thirty-nine dollars ($1,847,739) which is the estimated cost, including interest during construction, of providing the storage space for initial water supply uas in payments in the amount of seventy-two thousand nine hundred and tventy-eight dollars ($72,028) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "B" attacned hereto and made a part hereof, and the last payment shall be aa,uited upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shay be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made Pay- ments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this con- tract (2) Six and nine hundred sixty-tvo thousands percent (6 961%) of the annual experienced point-use cost of ordinary opera- tion and maintenance of the project The first payment estimated to be eight thousand and eighty-nine dollars ($8,089) will be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made. Annual payments thereafter wil be due and payable in advance on the anniversary date of delibera.u ..poundnent and will be equal to six and nine hundred sixty-two thousandths percent (6 962%) of the actual experienced joint-use cost of ordinary operation and maintenance for the pre- ceding Government fiscal year The second payment shall be increased or decreased is an amount to reflect the diffcrcace betreen the first pa,rment and six and nine hundred sixty-two thousandths percent (6.962%) of the actual experienced point-use cost of ordinary operation 4 k CO ,tics .0 0ACr29-68-A-0099 a^i - ten-nce fa, the Orerea,rC 1,3c3L1 year Records of cost of oper- a..- ala Ta,^tL 1=lt Q, 're P,oj,c. snull LL avii.'-U1C for 113,A-t1on arc eaan.naticn by the City ..~e eAtent of opLrut.on anu rasntenance Of t`e ° oje,. 4ha2.1 ce uete- inea b+ t^e Contracting Officer and ail r~co^us ana account- 6 s ~11 ce u_nt..i^eu Oy the Contracts"e O°fice- In tte event t e City shoula require adastional ope^ation ana -".^te^ance c.S tre water supply storage over and above that ceeTed necessary by the Contracting Office^, the City shall bear the ent-re cost of Ouch add,tional exuense (3) Five and eight hi.rdred seventy-seven thousandths percent (5 877%) of the cost of sedimentation resurveys and ,joint-use aajor capital replacements when incurred (4) In the event of default in the payment of the costs contained in Article 5 a (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on sr.choverdue payments at the rate of three and two hundred fifty- three thousandths percent (3 253%) per annum thereon, compounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid b In consideration of the Government's providing the aforesaid storage space of 46,050 acre-feet for future water supply use by the City, it is agreed that the City shall pay the following sums to the Government r Jl`~ (1) One million fivelhundred and fifty-nine thousand one hundred and nine dollars ($l ~i59,3D9T, which is the estimated cost, including interest during construction, of providing the storage space for future water supply use in payments in the amount of sixty-one thousand five hundrea and thirty-six dollars ($61,536) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "C" attacned hereto and made a part hereof, and the last payment shall be adjusted upward or downward, wnen due, to assure the repayment of all capital costs oy the end of 50 years The first payment shall be due and payable within thirty (30) days following the 10th anni- versary of the date the City is notified that deliberate impoundment has been made Payments thereafter snall be due and payable within 30 days of the yearly anniversary date of the first oayment under this contract (2) Five arc eight hundred seventy-four thousandths percent (5 874%) of the arnual experienced point-use cost of ordinary operation and maintenance of tre Project The first payment estimatea to be six thousand eight hundred twenty-six dollars ($6,826) will be due and payable within thirty (30) days following the 10th anniversary 5 CUM ACT 10 DAN29-68-A-0099 , of the date the City is notlf.ed that deliberate impoundment has been made Pnnual payments therea tee- will be due and payable in advance on the enniversary date of del bcratc impoundment and will be equal five and eignt hundred se/enty-lour thousandths percent (5 874%) of the actual experienceQ ,point-use cost of ordinary operation and maintenance o" the preceding Government fiscal year The second payment snall be .ncreased or decreased in an amount to reflect the difference between the first payment and five and eight hundred seventh-four thousanaths percent (5 874%) of the actual experienced point-LVe cost of ordinary operation and maintenance for the preced- i-g fiscal yeas Recoras of cost of operation and maintenance of the Proje,-t stall be available for inspection and examination by the Citj i~a eAtent of operation and mainterance of the Project shall be aete-mined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the City should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the City shall bear the entire cost of such additional expense (3) Four and nine hundred fifty-nine thousandths percent (4 959%) of the cost of sedimentation resurveys and joint- use major capital replacements when incurred (4) In the event of default in the payment of the costs contained in Article 5 b (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty- three thousandths percent (3 253%) per annum thereon, compounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid (5) The City may, upon written notice to the Govern- 1 ment at any time prior to the 10th anniversary date of deliberate impoundment, advance or defer the date of first use of all or any portion of the storage space proviaed under this contract for future water supply, subject to the requirements that the entire amount of the construction costs, including interest during construction, allocates to water supply shall be repaid within the life of the project, and that repayment of the amount of such costs for any portion of the storage space used shall be made within a period of not to exceed 50 years from the date such portion of the storage space is first used for the storage of water for water supply pur- poses No principal or interest payment with respect to the storage space provided under this contract for future water supply is required ,o be made during the first 10 years following the date of deliber- ate impoundment unless all or a portion of such storage space is used by the City for the storage of water for water supply purposes, in which event repayment for the portion used 4h"l be startad and shall be ipald within not to exceod 50 yoars from the date of first use. 6 M Cv "iAC^ .0 DAC !2y-oQ1-A-00'()9 In the evert the date of f use o al. or o portion of the future ante- s,-_p_, sto-arm ecuce Le°e red ,.(cra tie 10th annive-sa-1 Bate o` ae_.te e .^terest at tie r.te specifies will be cnarged or 6 zcr_icn "-on t-e lltr year until sucn tine as .t is f.-st Lsen "or tie sto^ade of water °or water supply purposes Tne City ;,ay at is option ray tae interest as it becomes sue o* alIow the ,nterest to accunulate until the storage space is usec If tFis latter option is exercised the interest will be compounded arnual111 and will be added to the principal amount c In the event the actual first cost of the Project exceeds t-e presently estimated first cost, as set forth in exhibit "A," the aforesaid annual payments shall be increased to reflect the actual first cost, incluaing interest during construction, as ceternined by the Contracting Officer In the event such first cost of the Project is less than the presently estimated first cost, the aforesaid annual payments shall be decreased to reflect the actual first cost, including interest during construction, as determined by the Contracting Officer In the event the annual payments are increased or decreased, as provided above, an adjustment, as cetermined by the Contract.ng Officer, of payments made prior to tie determination of the final Project cost shall be made in the first payment due after such costs are determined The interest rates used in this contract are for estimating purposes only The -'t intereet rate used for purposes of computing interest during con- straction and interest on the unpaid balance shall be determinea by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the Project is initiated, on the basis of the computed average interest rate parable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for recemption for fifteen years from date of I issue At the time that the final Project costs are determined, the -epayment schedules srall be moaified to reflect the increased or~ decreased annual payments ana sucn modification will form a part of this contract /RTICLE 6 NO WARRANTIES AS TO QUALITY OF W4TER - The parties hereto recognize that the water in the storage space being made ava-lable to the City under the terms of this agreement is raw reservoir water The Government makes no representations witn respect to the conditions or the potability of the water, and as- sumes no responsibility therefo- c for treatment of the water, or for undertaking any action which might tend to reduce contamination from the reservoir or from other sources in the watershed ARTICLE 7 PERIOD OF CO%TRACT - This contract shall become effective as of the date of approver. by the Secretary of the A"-r, and shall continue in full force and e.fect, under the conditions set forth herein, not to exceed the life of the Project This 7 CO,.zjtCm ,0 DACV29-ub-A-0099 contract s 4Lblec' to t-e nrov.s_ons of °ub1_c _I,w 88-140, approveu 16 OCtOLC 1"JU3, alp. tic C.ty srali !a ~ p---anLnt rient to the utie of s_ i0 b_oces a`tc- ' c ner.oa of yea-o specified 'nr -COar.,,,:At uauLr ,title y .n '^e c~-' act or as amenaec, sub- _ct to tie foliowx-g a TI-e C_tj rist h~ e d.scrarged its responsxbxlxtxes for payment cf the costs allocatec to .ter supply b The City must tort.-Le pal--ent of its share of annual operation and mainterance costs allocated to watex supply c The City mast pay in lump sum, or annually with in- terest, the costs allocates to water s~ppiy which may at termination of the repaym3-t pe -od set forth in the contract, or thereafter, be required for any necessary reconstruction, renabilitation, or replace- ment of project feat.res which maj be required to continue satisfactory operation of the Project Such costs will be established by the Con- tracting Officer Repa,'raent arrangements will be in writing and will be made a part of this contract d Upon termination of the repayment periods set forth in the contract, the Contracting Officer shall redetermine the storage space for municipa~ and industrial water supply, taking into acc~Lnt >L~n equitable reallocation of reservoir storage capacities among the pi,rpoaes serves by the Project as may be nec- essa:; auo to sedime Cation Such findings, and the storage space allocated to municipal and industrial wate- supply, shall be de- fined ara described in an exhibit which will be made a part of this contract Following the same principle, such reallocation of reservoir storage capacity may be further aa,Justed from time to time as the result of sedimentation resurveys to reflect actual rates of sedimentation and the exhibit revised to snow the revised storage space allocated to municipal and industrial water supply e The permanent rignts of the City under this contract shall be continued as long as the Government continues to operate the ?roject In the event the Government no longer operates the Project, such rights may be continued subject to the execution of a separate contract, or supplement agreement providing for (1) Continued operation by the City of sucn part of the facility as is necessary for utilization of the storage space allocated to it, (2) Terms which will protect the public interest, 3 (3) Effective absolvement of the Government by the City from all liability in connection with such continued operation 8 CO -li-C: %0 DAC429-bd-A-0099 A'-:CL:: 8 01.) ?T' fAJC- - fhe Govern-ent shall o:~eral.o a^u r . ta.^ C o - Dy tie Governrent ^he City srall nerve trc -.C t to r..c iitn.rawals of aatcr ^or its purposes ..s needca r accori."rc. i 1 1 ne City snap be responsible or operation ana -a.rtenance of all features and appurtera-ces w-ion nar ue proiiaed and owned by the Cit,f ARTICLE 9 RIG`MT Or-"Af - The Government, subject to the approval of the Sec-eta-.( of the Army, shall, without additional consiaarat.on, Cra,t to the City, by separate instrurent or instruments, an easement or easerents as may be required for the oast-action, operation and raintenance of pumping facilities and water supply pipelires in, on, over, and across Government-owned lards acqui-ea foi oro,ject purposes The instruments granting such Naserents shall be coesistent with Government contract provisions in effect at that time, with such modifications as may be necessary r eec, instance and as may be ap-)roved by the Governmert ARTICLE 10 RELEAS_ OF CLAIuS - The City snall hold and save the Government, including its officers, agents, and employees ,aim-ess from liability of any nature or kind for or on account of ary claim for damages which may be filed or asserted as a result of t-e storage in the Project or withdrawal or release of water fram the Project, made or ordered by the City, or as a result of the =o1struction, operation, or maintenance of the features or appur- tenances owned and operated by the City ARTICLE 11 TRANSFER OR ASSIGWMT - The City shah not transfer or assign this contract, nor any rights acquired tnere- under, nor suballot said water or storage space or any part thereof, nor grant any interest, privilege, or license whatsoever in connec- tion with this contract, without approval of the Secretary of the Army, providea, that, unless contrary to the public interest, tnis restriction shall not be construes to apply to any water which may be obtained from the water supply storage space by the City and furnished to any third party or parties ARTICLE 12 OFrICIALS VOT mO 2L3EFIT - No member of or delegate to Congress, or resiaent commissioner, shall be admitted to any share or part of tais contract, or to any benefit that may arise therefrom, but this provision snail not be construed to extend to this contract if made with a corporation for its general benefit ARTICLE 13 COVENANT AGAINST CONTINGENT FEES - The City warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commissior, percentage, o-okerage, or con- tingent fee, excepting bona fiae employees or bona fide established commercial or selling agencies maintairea by the City for the purpose of securing business For breach or violation of this 9 C01""ACT i+0 DACw29-68-A-0099 wa--anty t^e Cole---ert ,null nwe the rignt to an-u1 this contract witioL„ l .ability or in it* aisc-et.on to add to the contract price or ~o-s.LO at.on, or ot-cr•..oe -ecover, the full amount of sacn corr-ssior, pe-ce-tape, broke-age, or cortingent fee ARTICLE 14 ADZKOVAL 0"' CO -,7 - This contract shall be suoject to the w-itten app-ova- of one Secretar, of the Army, and sha_. not be binning until so approved IN 11T'--SS 14'rXRLOF, t^e parties lereto have executed this agreement as of the uay ana year first above written APPROVED THE UNITEIISTATES OF AMERICA a p Secrets* of the Arny (Con t g Officer DATL 11 JUL 1968 CITY OF IRVING, TIOM (Mayor) Irv Tee 750 60 Post Office Address) APPROVED AS TO FORM Attorney, City of Irving, Texas 10 C0„TRACT v0 DACW29-68-A-0099 I, Marr 0.11iland , certiy that I am the City Cler}, of the cit; os Irving, :e,cas, named as City herein, that Pobert r 'Oowe- Oho signed this contract on behalf of the Citj was then MAvOF of the CITY OF IRVING, TEXAS, that said cc-t-act was duly signed for and on behalf of the CITY OF IRVI,7G, TEA.AS, by authoritfof its gove-ning body and is within the scope of its legal powers' In Witness Whereof, I have hereunto a"axed sly hand and the seal of the CITY OF IRVING, TEXAS, this 29th day of March 196'8 City Clerk, Cy of I ng, Texas CORPOan1'E SEAL 11 hAnIB1^ A I - Reservoir Storages ^ Percent of M&I water (1) supply Usable space Elevation store e (f 1 ) t m s (ac-ft Water Supply Storage Y&I water supply Initial use City of Irving 19 991 54,575 Future use City of Irving 16 868 46,050 Other M&I water supply users 63 141 172,375 Total Mol water supply storage 100 000 415 5-440 0 273,000 r^looa control storage ' - i t - 440 0-446 2 ,131400 _EL vo r s o age 404,400 II - Allocation of Estimated Construction Cost M&I water supply for initial use by the City of Irving $ 1,734,868 M&I water supply for future use by the City of Irving 1,463,870 M&I water supply use by others 4 77 Subtotal - M&I water supply $ , 78,315 Texas Water Development Board participation 1,715,471 Flood control (non-reimbursable) 10,196,503 Recreation (non-reimbursable) 5 8 7~1 Total 2 ,529,000 III - Costs to be ReDaia by the City of Irvin for for Initial ana Future M&I 'late- SL.nly Use Initial M&I water supply use 19 991% of cost allocated to M&I water supply (0 19991 x $8,678,315) $ 1,734,868 Interest during construction (3 253% x 1/2 of 4-year period) 112 871 Total l (1)Storage remaining after 100 years of sedimentation Future .,attr u5, 16 Boa; of coc ,.l.oc^tr to , sI water st.rot~ (L 10,00 < °,U78,3i5) $ 1,463,870 Inte-est cLri-; corst^,ict.oo (3 253°n X 1/2 0° 4-1 _-1 per 0,1) 95,239 total $ 1,559,109 IV - Allocation of Es~.rratea Oreration, Maintenance ana Majo- Reolace-ent Cost City of City of Irving Irving Other Initial Future M&I Flood M&I Water M&I Water Water Con- Suol SUDUly §.i-21X TWDB trol Rec Tote yr $/Yr a/yr $/yr $/yr $/Yr T/Yr Oper & Maint Specific cost 0 0 0 0 50,600 58,600 109,2 Joint-use cost 8,089 6,826 25,550 8,439 37,270 30,026 116,2 Total 8,089 6,826 25,550 8,439 87,870 88,626 225,4 Major replacements Specific cost 0 0 0 0 0 18,600 18,0 Joint-use cost 62 53 197 65 504 179 1,0 Total 62 53 197 65 504 18,779 1916 2 4 V C-_--e - :r ._1 na Fature 1&: late- tt,v L - citr dt I-1 I^it f &I water supply use Interest and arort,zation of cost of M&I water supply features (see computation below) $ 72,928 Joi-t-use operation ana naintenance costs equivalent tb 6 9o2N of the actual joint-use operation and maintenance costs, computed as follows 34 8240 percent of point-use 0&M cost allocated to M&I water supply 19 991% = percent M&I water supply space to be used by the City of Irving (initial) (34 824; x 19991)= 6 962% of the actual point-use 0&M costs estimated annual cost ( 06962 x $116,200) 8,089 Joint-use mayor capital replacement and seaimentation resurvey costs, when incurred, equivalent to 5 877% of the actual point-use major capital replacements and sedimentation resurvey costs, computed as follows 29 400% - percent point-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 19 991% = percent M&I water supply space to be used by the City of Irving (initial) (29 400% x 19991) = 5 877% of the actual ,joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 05877 x $1,060) a 62 Total annual cost for initial N,&I water supply $ 81,079 Computation of Annual Payment for Interest and Amortization l (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN [i(1+i)n-1) D = Annual payment D = R R = Amount to be repaid = $1,847,739 ((1+i)n-l] i = Interest rate = 0 03253 n = Number of payments = 50 D= 03253 1+ 03253)49 l+ 03253 _ 1 x $1,847,739 - 0 0394689 x $1,847,739 D = $72,928 3 Future wa'e- su-_- f use Inte-est a^c a:o-t_z_tior or cost of M&I water saopil "eatures (see co-p,.tat.on below) Joint-use oDe-atior a^a -aintenance costs equivalent to 5 874+ of t^e ac,-.- rirt-use operation ana maintenance costs, co-putea as follows 34 824% - percent of ,joint-use 0&M cost allocated to M&I water suoply 16 868; = tercert of M&I water s,.poly space to be usea by the City of Irving (Future) (34 b24% x 16868) = 5 874% of the actual ,joint-use O&M costs Estimated annual cost ( 05874 ,c +1106,200) Joint-use major capital replacement and sedimentation resurvey costs, wnen incurred, equivalent to 4 959% of the actual ,joint-use major capital replacements and sedimentation resurvey costs, computed as follows 29 400% - percent ,joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 16 868% = percent of M&I water supply space to be used oy the City of Irving (Future) 129 400% x 16868) = 4 959% of the actual ,joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 04959 x $1,060) = Total annual cost for future M&I water supply $ Q1,536 $ 6,826 $ 53 $ 68,415 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which oear interest on the unpaid balance) WHEREIN (i(1+i)n-1] D = Annual payment D = R R = Amount to be repaid = $1,559,109 ((1+i)n-1] i = Interest rate = 0 03253 n = Number of payments = 50 D = 03253 (1+ 03253) 49 x $1,559,109 $1,559,109 x .0394689 (1+ 03253)50-1 D = $61,536 4 EXHIBIT B AMORTIZATIOV SC-EDULE COST OF WATER SUPPL' FOR INITIAL USE BY THE CITY OF IRVING 1~J TOTAL COS . 1647739 NUMPF-4 0- D1YMFNTS 50 ,NTERECT k.-,F, RPRCENT ANNUAL PAYMENT NUMBER 1 3 4 5 6 7 R 9 10 11 12 ]3 14 15 16 17 i8 19 ?0 21 72 23 74 25 76 ?7 28 29 30 31 32 33 14 35 16 37 38 39 40 41 42 43 44 45 46 47 48 49 50 on n C3753 AMOUNT OF PAYMENT • •7?938 nn 72928 On 729,28 on 72978 On 72978 00 729?8.00 72978.00 72978 00 72978.00 72928.00 729?8.00 7?928 On 7?928.On 72928.00 77928.On 72928.00 72928.00 72928.00 72928.00 72978.00 729?8.nO 72928.00 72928.00 72928.00 720?8 nn 7202A.nn 72928.00 72928 00 72928.00 72978.00 72928 On 72928.On 72928.00 72928.00 72928 00 7?928.00 7?9?8.00 729?8.00 72928.00 72928.00 72978.00 77978.00 72928.00 72926.On 72928.00 72928.00 72928.00 72978.00 72928.00 72969.44 APPLICATION INTEREST ALLOC COST 0 00 57734 PO 57?40.36 56730 n4 56203 12 55659.06 55n97 30 54517.27 53918.36 $3299.98 5266] 48 52002 21 51321.50 50618 64 49892.91 49143 58 48'169 97 47571 00 46746 13 45A94,44 45015.04 44107,03 43169.48 42201.44 41201.90 40169.85 39104.23 38003.94 36867 86 35694,83 34483 63 33233,04 31941,76 30608 48 29231,82 27010.39 26342.71 24827 29 23262.57 21646,96 19978,79 187h6.35 16477.88 14641,56 12745.50 10787 -6 8766,3- 6679 16 4524.09 2?98,91 7292P 00 15lQl 40 15687 64 16197.06 16724 88 1726A.94 17630.70 le41n 73 19009.64 1962A.02 20266 52 20925 79 21606.50 ?2309 16 23035.09 23784,42 2455A,13 ?5357.00 ?6181.87 27033.56 27917.96 28820.97 29758.52 30726.56 31726.10 32758.15 33A23.77 34924.06 36060.14 37233.17 38444.37 39694,96 40986,24 42319.52 43696.18 45117.61 46585.29 48100,71 49665.43 51281.04 52940.21 54671.65 56450.12 56286.44 60182.50 62140.24 64161.60 6624A,84 68403.91 70670.53 I I- BALANCE ALLOC COST 1774811 00 1759617,60, 1743529 96 1727732.00 1711007 12 1693738 18 1675907,46 1657496 75 1638487,11 1618859,09 1598592 57 1577666 78 1556060.28 1533750.92 1510715 83 1486031 44- 1462373 28 1437016 28 1410834 41 1383800.85 1355887.89 1327066.02 1297308.40 1266581.84 1234855 74 1202097,59 1168273 82 1133349 76 1097289 62 1060056,45 1021612,08 981917.12 940930.88 898611.36 854915.18 809797.57 763212.28 715111.57 665446.14 614165.10 561215.89 506544.24 450094,12 301807,68 331625,18 269484 94 205323 28 139074,44 70670.53 0.00 EXHIBIT C AMORTIZATION SCnEOLZE COST OF WATER SUPPLY FOR FUTURE USE BY TFE CITY OF IRVING TG'AI rO~T $ 15=v119 .,0 AIIMArR G DAvMF`TS Fn INTt4FCT PAT PFnrr~T n 0375) _ - - - - - - - - - - _ _ - ~ - - - ANNI,AI PAYNr T AMOUII\IT APPLICATION 6 R, AALANC'e . nF . . . . . . ALLGC - _NIIMAFF PAYMFNT - - _INTFRrST ALIOr FOST COST 6.$'1, On - 0 no _ 61556.011 . - . _ 1497573.00 2 61516 31 48716 A4 12819.06 1464753,n4 3 6¢536 on 48799 01 13?56.99 1471516.05 4 61536 00 47868 41 13667.59 145784A.46 5 61576 On 47423.81 t4117.19 1443736 77 6 7 61536 00 46964.74 14571.26 1429165.0L 8 61536 00 46490.73 15045.27 1414110.74 63516.an 46n01 31 15534 69 139858r 115 9 61536.00 45495.97 160411.03 1382545,02 10 61536.00 44974.18 16561.82 1365983 20 11 61536 00 44415.43 1710n,57 1348!+8?.A3 12 61536.00 43879.15 17656.85 1331725.78 13 61536 00 43304,77 18231.23 1312994 55 14 61536 On 42711 71 18A24.29 129417f.26 15 61536.00 42099,35 19416.65 1274733.61 16 61536.00 41467 08 ?0068.92 1254F64 69 17 61536 00 40A14.24 20721.76 1233942.93 18 61536.00 40140.16 ?1395.84 1212547.09 19 61516.00 39444.15 ?2091.85 1190455.74 20 61536.00 38725.50 ?2810.50 1167644,74 71 61516.00 37983,48 73557.52 114409?.22 22 61536.00 37217.32 ?4318.68 1119773.54 ?3 61536.00 36426,23 25109,77 1094663.77 24 61536.00 35609 41 75926.59 1068737,18 75 61936 00 34766.02 26769.98 1041967 ?0 ?6 61536 no 33895.19 27640.81 1014326.19 27 61536 00 32096.03 28539.97 985786 42 28 61536 On 32067.63 29468.37 956318.05 29 61536.On 31109.02 30426.98 925891.07 30 61536.0n 30119,?3 31416.77 894474.30 31 61536.nn 29n97 24 32438.76 862035,54 32 61516.00 28042.01 33493.99 828541.55 33 61536.0n 26952.45 34483.55 793958.00 34 61536 00 25827,45 35708.55 758249,45 35 61536.00 24665.85 36870.15 7?1379.30 16 61516.011 23466,46 38069.54 683309,76 37 6136 00 7??28.06 39307.94 644001.82 38 61536,00 20949.37 40586.63 603415.19 39 61536.00 19629,09 41906.91 561508.28 40 61536 00 18265.86 43270.14 518238.14 41 61536.00 16858.28 44677,72 473560.42 42 61556 00 15404.92 46131.08 427429.34 43 61536 On 13904.27 47631.73 379797.61 44 61536 00 12354.A1 49181.19 330616,42 45 61536.0n 10754.95 50781.05 279835.17 46 61536.00 9103.04 F2432.96 227402.41 47 61536.00 7397,40 5413A 60 173263 81 48 61536.00 5636,77 55899.73 117364.08 49 61536.on 3817 85 5771A.15 59645,93 50 61586.21 1940.28 59645,93 0.00 Contract No DACA29-68-A-0099 Supplemental Agreement No 1 SUPPLEMENTAL AGREEMENT NO 1 BETWEEV THE UNITED STATES OF AMERICA AND THE CITY OF SAVING, TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR This supplemental agreement no 1, entered into this 11th day of June 1970 by and between the UNITED STATES OF AMERICA (hereinafter called the Government), represented by the Contracting Officer executing this contract, and the CITY OF IRVING, TEXAS, a municipal corporation existing under the laws of Texas, with its principal office in the City of Irving, Dallas County, Texas (hereinafter called the City), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into contract no DACW29-68-A-0099 with the City of Irving, Texas for water storage space in Cooper Reservoir, and, WHEREAS, it was represented to the City of Irving prior to such signing that modification of the contract for the purpose of reallocating storage spec from initial to future storage would be allowed; and WHEREAS, the City of Irving desires to reallocate storage space from initial to future storage] and WHEREAS, because it is the policy of Congress that the "Federal Governmen should participate and cooperate with states and local interests in develoning Each oater supplies***" as proclaimed in Sec 301(a) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable by the Government to incorporate said revised storage requirements of the City of Irving, into the basic contract U NOW THEREFORE, the parties hereto do mutually agree to amend the contract no DACW29-68-A-0099 in the following manner and the basic contract is so amended to read as follows, to wit 1 The sixth and seventh "WHEREAS" clauses of the basic contract are deleted and the following substitued therefor "WHEREAS, the City desires to utilize 46,200 acre-feet of storage space as a source of initial municipal and industrial water supply as set forth in Article 1; and, "WHEREAS, the City desires to utilize an additional 54,425 acre-feet of storage space for future municipal and industrial water supply as set forth in Article li and," n ~ r Contract No DAC429-68-A-0099 Supplemental Agreement No 1 SUPPLEMENTAL AGREEMENT NO 1 BETWEEI THE _ UNITED STATES OF AMERICA AND THE CITY OF IRVING, TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR This supplemental agreement no 1, entered into this 11th day of - June 1970 by and between the UNITED STATES OF AMERICA (hereinafter _ called the Government), represented by the Contracting officer executing this contract, and the CITY OF IRVING, TEXAS, a municipal corporation existing under the laws of Texas, with its principal office in the City of Irving, Dallas County, Texas (hereinafter called the City), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into contract no 01 DACW29-68-A-0099 with the City of Irving, Texas for water storage space in Cooper Reservoirs and, WHEREAS, it was represented to the City of Irving prior to such signing that modification of the contract for the purpose of reallocating storage space from initial to future storage would be allowed; and WHEREAS, the City of Irving desires to reallocate storage space from initial to future storage; and WHEREAS, because it is the policy of Congress that the "Federal Government should participate and cooperate with states and local interests in developing such cater supplies***" as proclaimed in Sac 301(a) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable by the Government to incorporate said revised storage requirements of the ` City of Irving, into the basic contract U NOW THEREFORE, the parties hereto do mutually agree to amend the contract no DACW29-68-A-0099 in the following manner and the basic contract is so amended to read as follows, to wit 1 The sixth and seventh "WHEREAS" clauses of the basic contract are deleted and the following substitued therefor "WHEREAS, the City desires to utilize 46,200 acre-feet of storage space as a source of initial municipal and industrial water supply as set forth in Article 1; and, "WHEREAS, the City desires to utilize an additional 54,425 acre-feet of storage space for future municipal and industrial water supply as set forth in Articlc 1; and," ~ ' is ~ 1 ' ( Contract No DAC029-69-A-009n Supplerental Agreement No . 2 Subparagraphs a and b of Article 1 of the basic contract are deleted and the following substituted therefor "a The City shall have the right to utilize an undivided sixtee and nine hundred=twenty-three thousandths percent (16 923%) of the storage space in the Project between elevations 440 0 and 415 5 feet above rean sea level as deemed necessary by the City to impound water in the Project for its initial municipal and industrial use, and make such diversions as grant( - - to the City by the Texas Water Rights Commission, or its successors, to the extent such storage will provide "b The City shall further have the right to utilize, from the l~ anniversary of the date of deliberate impoundment, an undivided nineteen a- nine hundred thirty-six thousandths percent (19 936%) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level V as deemed necessary by the City to impound water in the Project for its future municipal and industrial use, and make such diversions as granted to the City by the Texas Water Rights Commission, or its successors, to the extent such storage will provide " 3 The second sentence of subparagraph h of Article 1 of the basic contract is deleted and the following substituted therefor "During periods of regulation for water supply (when the reservoir water surface is below elevation 440 0 feet above mean sea level), the City shall be entitled to sixteen and nine hundred twenty-three thousandths percent (16 923%) of the yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second, for a period of 10 years after the date of deliberate impoundment " © 4 Article 4 of the basic contract is deleted and the following substituted therefor: "ARTICLE 4 REGULATION OF THE USE OF WATER The regulation of the use of water stored in the water supply spaces covered by this contract (46,200 acre-feet for initial, 54,425 acre-feet for future) shall be the responsibility of the City upon initiation of payment by the City for construction costs allocated to such spaces " 5 Subparagraphs a, a(1), a(2), a(3), b, b(1), b(2), and b(3) of Article 5 of the basic contract are deleted and the following substituted therefor: "a in consideration of the Government'r providing tre aforesaid storage space of 46,200 acre-feet for initial water supply use by the City it is agreed that the City shall pay the following sums to the Government 2 Contract No DACWt9-68-A-0099 Supplemental Agreement No 1 "(1) One million five hundred and sixty-four thousand one hundred and eighty-eight dollars ($1,564,188) which is the estimated cost, including interest during construction, of providing the storage space for initial water supply use in payments in the amount of sixty-one thousand seven hundred and thirty-six dollars ($61,736) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "8" bearing contract No DACW29-68-A-0099, Supplemental Agreement No l,attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract "(2) Five and eight hundred ninety-three thousandths percent (5 893%) of the annual experienced joint-use cost of ordinary operation and maintena- of the project The first payment estimated to be six thousand eight hundred and forty-eight dollars ($6,848) will be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to five and eight hundred ninety-three thousandths percent (5 893%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and five and eight hundred ninety- O three thousandths percent (5 893%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the City The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the City should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting officer, the City shall bear the entire cost of such additional expense "(3) Fuur and nine tundred seventy-five thousandths percent (4 975%) Of the cost of sedimentation resurveys and joint-use major capital replace- ments when incurred " 3 Contract No DACd29-68-A-0099 Supplemertal Agree-went No 1 "b In consideration of the Government's providing the aforesaid storage space of 54,425 acre-feet for future water supply use by the City, it is agreea that the City snall pay the following sums to the Government "(1) One million eight hundred and forty-two thousand six hundred and sixty dollars ($1,842,660), which is the estimated cost, including - interest during construction, of providing the storage space for future -water supply use in payments in the amount of seventy-two thousand seven hundred and twenty-seven dollars ($72,727) Except for the first payment, which shall be applied solely to the reduction of the orincipal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payverts are more specifically set forth in exhibit O "C," bearing contract No DACW29-68-A-0099, Supplemental Agreement No 1, attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the 19th anniversary of the date the City is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within 30 days of the yearly anniversary date of the first payment under this contract "(2) Six and nine hundred forty-three thousandths percent (6 943%) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be eight thousand and sixty-seven dollars ($8,067) will be due and payable within thirty (301 days following the 10th anniversary of the date tue City is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impound- ment and will be equal to six and nine hundred forty-three thousandths percent (6 943%) of the actual experienced joint-use cost of ordinary ~i operation and maintenance of the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the differences between the first payment and six and nine hundred forty-thr thousandths percent (6 943%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the City The extent of operation and mainten ance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the City should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the City shall bear the entire cost of such additional expense "(3) Five and eight hundred sixty-one thousandths percent (5 861%) of the cost of sedimentation resurveys and joint-use major capital replace- ments when incurred " 4 " Contract No DACW29-68-A-0099 Supplemental Agreement No 1 O 6 Exhibits A, B, and C of the basic contract are replaced by exnibits A, B, and C, hereto attached, bearing the contract No DACW29-68- A-0099, Supplemental Agreement No 1 IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No 1 asoof the 11th day of _March , 1971 - APPROVED: THE UNITED STATES OF AMERICA R BY Secretary of the Army Herbert R Haar, Jr Colonel, CE Contracting Officer 2 0 MAY 1911 DATE: CITY OF IRVING, TEXAS BY: z4z4-!'5Z- Robert H Power, Mayor 83:~r I e g &,P w (Post Office dress) ~`yaR/ 7J o 6 a Q ATTEST: City C c, C2. y of Irving exas APPROVED AS TO FORM: lz~tq~jf R~yj Attorney C.Pity of Irving, Texas 5 Contract No DACW29-68-A-0099 Supplemental Agreement No 1 I, Mary Gilliland certify that I am the City Clerk of the City of Irving, Texas, named as City herein that Robert H Power who signed this Supplemental Agreement No 1 to contract No DACW2rj-68-A-0099 on behalf of the City was then MAYOR of the CITY OF IPVING, TEXAS; that said Supplemental Agreement No 1 was duly signed for and on behalf of the CITY OF IRVING, TEXAS, by authority of its governing body and is within the scope of its legal powers In Witness Whereof, I have hereunto affixed my hand and the seal of the CITY OF IRVING, TEXAS, this 11th day of March , 1971 CORPORATE SEAL 6 Contract No DACW29-68-A-0099 Supplemental Agreement No 1 O EXHIBIT A O wpCLact No unu ncy-oo- Supplemental Agreement MIEN A F I - Reservoir Storages Percent of • M&I water supply Usable(1) space Elevation (ft 1 ) storage m s ac-ft Water Supply Storage M&I water supply Initial use City of Irving 16 923 46 200 Future use City of Irving 19 936 , 54 425 Other M&I water supply users 63 141 172.375 O Total M&I water supply storage 100 000 415 5-440 0 273,000 Flood control storage 440 0-446 2 131 400 L~ ,T Reservoir storage i 00 O II - Allocation of Estimated Construction Cost M&I water supply for initial use by the City of Irving M&I water supply for future use by the City of Irving M&I water supply use by others Subtotal - M&I water supply Texas Water Development Board participation Flood control (non-reimbursable) Recreation (non-reimbursable) Total O III - Costs to be Repaid by the City of Irving for for Initial and Future M&I Water Supply Use Initial M&I water supply use 16 923% of cost allocated to M&I water supply (0 16923 x $8,678,315) Interest during construction (3 253% x 1/2 of 4-year period) _ Total $ 1,468,638 1,730,100 5.479.577 8 8,678,315 1,715.471 10,196,503 5,938,711 $26,529,060 $ 1,468,638 1,5$ 64,188 _ (1)Storage remaining after 100 years of sedimentation Future M&I water supply use 19 936% of cost allocated to M&I water supply (0 19936 x $8,678,315) Interest during construction (3 253% x 1/2 of 4-year period) Total Contract No DACW29-68-A-CC Supplemental Agreement No F~ $ 11_,7~30,,11y0~0 1,8 42,660 IV - Allocation of bstimated Operation Maintenance and Major Replacenent Cost City of City of Irving Irving Other O Initial Future M&I Flood M&I Water M&I Water Water Con- SSuvply ~S,UPD1~_ Supply TWDB trol Rec Total /ye r yr S/Yr T/ yr / yr My -r -Yr Oyer & Maiht. Specific cost 0 0 0 0 50,600 58,600 109,200 Joint-use cost 6,848 8,06f 25,551D 8.439 37,270 0 026 116,200 Total 6,848 8,067 25,550 8,439 8T,8TO 88,626 225,40o Mayor replacements Specific cost 0 0 0 0 0 18,600 18,600 Joint-use cost 53 _ 2 19T _ 5 504 179 1,060 Total 53 62 19T 65 504 18,79 19,660 1 2 Contract No DAC029-68-A-UL Supplemental Agreement No V - Annual rhire, for Initial and Future M&I Hater Suoply Use - Uity of Irving Initial M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) Joint-use opAration and maintenance costs equivalent to 5 893% of the actual ,Joint-use operation and maintenance costs, computed as follows 34 824% = percent of ,Joint-use 0&M cost allocated to M&I water supply 16 923% = percent M&I water supply space to be used by the City of Irving (initial) © (34 824% x 16923)= 5 893% of the actual ,Joint-use 0&M costs Estimated annual cc3t ( 05893 x $116,200) Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 4 975% of the actual ,Joint-use major capital replacements and sedimentation resurvey costs, computed as follows 29 400% = percent ,Joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 16.923% = percent M&I water supply space to be used by the City of Irving (initial) $ 61,736 $ 6,848 (29 400% x 16923) = 4.975% of the actual ,Joint-use major capital replacements and sedimentation 40 resurvey costs Estimated annual cost ( 04975 x $1,060) a 53 Total annual cost for initial M&I water supply $ 68,63T Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) D= 1 1+i n-1 R ((1+i)n-1) D = 03253 1+ 03253) 49 (1+ 03253 - 1 D = $61,736 WHEREIN D = Annual payment R = Amount to be repaid = $1,564,188 i Interest rate = 0 03253 n Number of payments = 50 x $1,564,188 = 0 0394689 x $1,564,188 3 - .lay,. ~ ~ - n Supplemental Agreement No Future M&I wata3 „upply use Interest and amortization of cost of M&I water supply features (see computation be3ow) Joint-use operation and maintenance costs equivalent to 6 943% of.Lhe actual point-use operation and maintenance costs, computed as follows 34 824% - percent of point-use 0&M cost allocated to M&I water supply 19 936% = percent of M&I water supply space to be used by the City of Irving (Future) (34 824% x 19936) = 6 943% of the actual point-use 0&M costs Estimated annual cost © ( 06943 x $116,200) _ Joint-use mayor capital replacement and sedimentation resurvey costs, when incurred, equivalent to 5 861% of the actual point-use mayor capital replacements and sedimentation resurvey costs, computed as follows 29 400% - percent joint-use mayor capital replacement and sedimentation resurvey costs allocated to M&I water supply 19 936 = percent of M&I water supply space to be used by the City of Irving (Future) (29 400% x 19936) = 5 861% of the actual point-use mayor capital replacements and sedimentation resurvey costs Estimated annual cost ( 05861 x $1,060) _ Total annual cost for future M&I water supply $ 72,727 $ 8,067 62 $ 80,856 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN 1 l+i n-1 D = Annual payment D = 1--5- -1 R R = Amount to be repaid - $1,842,660 ((1+i )n-1) 1 = Interest rate = 0 03253 n = Number of payments = 50 D = 03253 (1+ 03253) 49 x $1,842,660 = $1,842,660 x 0394689 (1+ 03253)50-1 D - $72,727 4 Contract No DACW29-68-A-C Supplemental Agreement No EXHIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE CITY OF IRVING C - - - - - - - - - - - - - - - - - - - - - - - - Supplem ental-Agreement-NO TOTAL COST S 1564188 00 NUMBER OF PAYMENTS 50 T_NTFREST RATE_ PERCENT -0- 03253- - - - - - - - - - - - - - - - - _ - - ANNUAL AMOUNT APPLICATION BAIANCE PAYMENT OF - - - - - - - - - - - - } ALLOC - NUMBER- - - - - - PAYMENT - - - - INTEREST- - - ALLOC COST - - - COST - - 1 61736 00 0 00 61736 00 1502452 00 2 61736 00 48874 76 12861 24 1489590 76 3 61736 Ol 48456 38 13279 62 1476311 14 4 61736 00 48024 40 13711 60 1462599 54 5 61736 00 47578 36 14157 64 1448441 90 6 61736 00 47117 81 14618 19 1433823 71 7 61736 00 46642 28 15093 72 1418729 99 8 61736 00 46151 28 15584 72 1403145 27 9 61736 00 45644 31 16091 69 1387053 58 10 61736 00 45120 85 16615 15 1370438 43 11 61736 00 44580 36 17155 64 1353282 79 12 61736 00 44022 28 17713 72 1335569 07 © 13 61736 00 43446 06 18289 94 1317279 13 14 61736 00 42851 09 18884 91 1298394 22 15 61736 00 42236 76 19499 24 1278894 98 16 61736 00 41602 45 20133 55 1258761 43 17 61736 00 40947 50 20788 50 1237972 93 18 61736 00 40271 25 21464 75 1216508 18 19 61736 00 39573 01 22162 99 1194345 19 20 61736 00 38852 04 22883 96 1171461 23 21 61736 00 38107 63 23628 37 1147832 86 22 61736 00 37339 00 24397 00 1123435 86 23 61736 00 36545 36 25190 64 1098245 22 24 61736 00 35725 91 26010 09 1072235 13 25 61736 00 34879 80 26856 20 1045378 93 26 61736 00 34006 17 27729 83 1017649 10 27 61736 00 33104 12 28631 88 989017 22 28 61736 00 32172 73 29563 27 959453 95 29 61736 00 31211 03 30524 97 928928 98 © 30 61736 00 30218 05 31517 95 897411 03 31 61736 00 29192 76 32543 22 865867 81 32 61736 00 28134 14 33601 86 831265 95 33 61736 00 27041 08 34694 92 796571 03 34 61736 00 25912 45 35823 55 760747 48 35 61736 00 -24747 11 36988 89 723758 59 36 61736 00 23543 86 38192 14 685566 45 37 61736 00 22301 47 39434 53 646131 92 38 61736 00 21018 67 40717 33 605414 59 39 61736 00 19694 13 42041 87 563372 72 40 61736 00 183,26 51 43409 49 519963 23 41 61736 00 16914 40 44821 60 475141 63 42 61736 00 15456 35 46279 65 428861 98 43 61736 00 13950 88 47765 12 381076 86 44 61736 00 12396 43 49339 57 331737 29 45 61736 00 10791 41 50944 59 280792 70 46 61736 00 9134 18 52601 82 228190 88 47 61736 00 7423 04 54312 96 173877 92 48 61736 00 5656 24 56079 76 117798 16 49 61736 00 3831 97 57904 03 59894 13 50 61842 48 1948 35 59894 13 0 00 Contract No DACW29-68-A-C Supplemental Agreement ao O EXHIBIT C AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY THE CITY OF IRVING EXHIBIT C - - - - - - - - - - - - - - - - - - - - - - - - TOTAL COST $ 1842660 00 NUMBER OF PAYMENTS 50 INTEREST RATE, PERCENT 0 03253 - - - - - - - - - - - ANNUAL AMOUNT PAYMENT OP NUMBER - - - - - - - PAYMENT - - - - 1 - - - - - - 72727 00 2 72727 00 3 72727 00 4 72727 00 5 72727 00 6 72727 00 7 72727 00 8 72727 00 9 72727 00 10 72727 00 O 11 12 72727 00 72727 00 13 72727 00 14 72727 00 15 72727 00 16 72727 00 17 72727 00 18 72727 00 19 72727 00 20 72727 00 21 72727 00 22 72727 00 23 72727 00 24 72727 00 25 72727 00 26 72727 00 27 72727 00 26 72727 00 © 29 72727 00 30 72727 00 31 72727 00 32 72727 00 33 72727 00 34 72727 00 35 72727 00 36 72727 00 37 72727 00 38 72727 00 39 72727 00 40 72727 00 41 72727 00 42 72727 00 43 72727 00 44 72727 00 45 72727 00 46 72727 00 47 72727 00 48 72727 00 49 72727 00 50 72833 64 t,ontrac. 20 UmL. .O-00-A-Ut ej Supplemental Agreement -No -1- I^ - - - - - - - - - - - - - - - APPLICATION - - - - - - - - - - - - - INTEREST ALLOC COST 0 00 72727 00 57575 92 15151 08 57083 05 15643 95 56574 15 16152 85 56048 70 16678 30 55506 16 17220 84 54945 96 17781 04 54367 54 18359 46 53770 31 18956 69 53153 65 19573 35 52516 93 20210 07 51859 50 20867 50 51180 68 21546 32 50479 77 22247 23 49756 07 22970 93 49008 83 23718 17 48237 28 24489 72 47440 62 25286 38 46618 06 26108 94 45768 74 26958 26 44891 78 27835 22 43986 30 28740 70 43051 37 29675 63 42086 02 30640 98 41089 27 31637 73 40060 09 32666 91 38997 44 33729 56 37900 22 34826 78 36767 30 35959 70 35597 53 37129 47 34389 71 38337 29 33142 60 39584 40 ..31854 92 40872 08 30525 35 42201 65 29152 53 43574 47 27735 05 44991 95 26271 46 46455 54 24760 26 47966 74 23199 91 49527 09 21588 79 51138 21 19925 26 52801 74 18207 62 54519 38 16434 11 56292 89 14602 90 58124 10 12712 12 60014 88 10759 84 61967 16 8744 05 63982 95 6662 68 66064 32 4513 61 68213 39 2294 63 70539 01 i BALANCE ALLOC COST 1769933 00 1754781 92 1739137 97 1722985 12 1706306 82 1689085 98 1671304 94 1652945 48 1633988 79 1614415 44 1594205 37 1573337 87 1551791 55 1529544 32 1506573 39 1482855 22 1458365 50 1433079 12 1406970 18 1380011 92 1352176 70 1323436 00 1293760 37 1263119 39 1231481 66 1198814 75 1165085 19 1130258 41 1094298 71 1057169 24 1018831 95 979247 55 938375 47 896173 82 852599 35 807607 40 761151 86 713185 12 663658 03 612519 82 559718 08 505198 70 448905 81 390781 71 330766 83 268'99 67 204A16 72 138752 40 70539 01 0 00 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 SUPPLEMENTAL AGREEMENT NO 2 BETWEEN THE UNITED STATES OF AMERICA AND THE CITY OF IRVING, TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR This Supplemental Agreement No 2, entered into this8th day of ,July , 1976 by and between the UNITED cTATES OF AMERICA (hereinafter called the Government) represented by the contracting officer executing this agreement, and the CITY OF IRVING, TEXAS, a municipal corporation existing under the laws of Texas, with its principal office in the City of Irving, Dallas County, Texas (hereinafter called the City), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0099 with the City of Irving, Texas for the purchase of water supply storage space in Cooper Reservoir, and WHEREAS, on 11 June 1970, the Government and the City entered into Supplemental Agreement No 1 to the aforementioned Contract No DACW29-68-A-0099 for the purpose of reallocating storage space in the reservoir from initial to future storage, and WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0102 with the TEXAS WATER DEVELOPMENT BOARD, an agency of the State of Texas existing under the laws of Texas (hereinafter called the Board), and WHEREAS, at the time the Board entered into Contract No DACW-29-68-A-0102, the Board had intended to construct the Sulphur Bluff and Naples Reservoirs (features of the Texas Water Plan) downstream of Cooper Reservoir, and WHEREAS, construction of these downstream reservoirs would have inundated areas now protected by existing channel and levee improvements already constructed under the Project as well as areas to be protected by future levee and channel improvements authorized to be constructed under the Project, and would have eliminated certain levee and channel improvements authorized for construction under the Project, and -WHEREAS, the construction of these downstream reservoirs would operate to reduce the benefits allocable to the purpose of flood control in the Project, and thus increase the costs allocated to the purpose of the municipal and industrial water supply over those allocable to that purpose in the Project as authorized, and Contract No DACW29-68-A-0099 Supplemental Agreement No 2 WHEREAS, the Board in a resolution dated 27 April 1966 indicated its willingness to bear the additional costs allocated to the purpose of municipal and industrial water supply in Cooper Reservoir resulting from the constructiod and operation of the downstream reservoirs, to the end that costs to purchasers of municipal and industrial water supply storage space in Cooper Reservoir would be the same both with and with- out construction of these features of the Texas Water Plan, and WHEREAS, an earlier plan for development of Cooper Reservoir included storage space in the amount of 32,100 acre-feet for the purpose of water quality control, and WHEREAS, a minimum downstream release of 5 c f s from Cooper Reservoir will be sufficient to satisfy the water quality needs for the Sulphur River, thus making unnecessary the provision of storage space in Cooper Reservoir for water quality control, and such minimum release being assured by the State of Texas in accordance with state standards as approved by the Federal Water Pollution Control Administration (whose functions were incorporated into the authority of the Environmental Protection Agency), and WHEREAS, the space previously reserved for water quality control has been reassigned, in equal amounts, to the North Texas Municipal Water District of Texas and to the City by the Texas Water Rights Commission, and WHEREAS, the North Texas Municipal Water District of Texas and the City have previously agreed to purchase the above space, and WHEREAS, the elimination of water quality control as a project purpose would operate to increase the costs allocated to the purpose of municipal and industrial water supply, both as to total cost and coat per unit of storage space, and WHEREAS, the Board had previously expressed its intention that as a result of the Board's financial involvement in the project, the unit cost to be paid by the purchasers of municipal and industrial water supply storage space in Cooper Reservoir should be based on an alloca- tion of project coats with water quality control storage in the amount of 32,100 acre-feet included as a project purpose, and WHEREAS, in accordance with the terms and conditions expressed in Contract No DACW29-68-A-0102, the Board had obligated itself to pay the Government the additional costs allocated to municipal and industrial water supply in the Cooper Reservoir, inclusive of the additional joint- use annual cost for construction, the additional joint-use coat for operation and maintenance, and the additional cost for replacements and 2 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 sedimentation resurveys, when incurred, resulting from modification of the Project in the interest of the Sulphur Bluff Reservoir and Naples Reservoir features of the Texas Water Plan, and resulting from the elimination of water quality conttoi as a project purpose, and WHEREAS, by letter dated 22 March 1973 the Board advised the Government that construction of the Sulphur Bluff and Naples Reservoirs will not be likely in the foreseeable future, and accordingly, that certain downstream levee and channel improvements that previously would have been affected or eliminated by the implementation of the Sulphur Bluff and Naples Reservoirs should therefore be reinstated into the formulation of project plans, that the fiscal responsibility of the purchasers of water supply storage space should be realined to reflect differences in cost due to the elimination of the downstream reservoirs from further considerations in the development of the project, that the financial responsibility should be further realined such that the pur- chasers of municipal and industrial water supply storage space assume the increased costs to water supply which resulted from the elimination of water quality control as a project purpose, and WHEREAS, in essence, the Board desires to withdraw as a cost-sharing cosponsor in the development of the Project with the result that all of its fiscal responsibilities in connection with the development of the Texas Water Plan and its fiscal responsibilities in connection with the elimination of water quality control as a project purpose, in so far as these obligations relate to the water supply purpose of the Project, be redistributed to the purchasers of water supply storage space in Cooper Reservoir, and WHEREAS, the remaining purchasers of water supply storage space have indicated a willingness to assume all of the fiscal responsibil- ities occasioned by the withdrawal of the Board as described above, and WHEREAS, the City has indicated its willingness to assume a proportional share of these fiscal responsibilities in accordance with the terms and conditions set forth in the basic contract as amended by this supplemental agreement, and WHEREAS, bOLause it is the policy of Congress that the "Federal _ Government should participate and cooperate with states and local interests in developing such water supplies" as proclaimed in Sec 301(x) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable for the Government to incorporate into the basic contract the above realinement of fiscal responsibilities as they relate to the City NOW THEREFORE, the parties hereto do mutually agree to further amend Contract No DACW2968-A-0099 in the following manner and the basic contract is so amended to read as follows, to wit 3 Contract No DACW29-68-A-CDC" Supplemental Agreement to 2 1 Subparagraphs a, a(1), a(2), a(3), b, b(1), b(2) and b(3) of Article 5 of the basic contract, as amended, are deleted and the following substituted therefor "a In ccnsiderntion of the Government's providing the aforesaid storage space of 46,200 acre-feet for initial water supply use by the City it is agreed that the City shall pay the following sums to the Government "(1) Four million two hundred twenty-seven thousand four hundred and eighty-four dollars ($4,221,484) which is the estimated cost, including interest during construction, of providing the storage space for initial water supply use in payments in the amount of one hundred sixty-six thousand eight hundred and fifty-four dollars ($166,854) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid pay- ments are more specifically set forth in Exhibit "B" bearing Contract No DACW29-68-A-0099, Supplemental Agreement No 2, attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract 11(2) Six and three hundred thirty-seven thousanths percent (6 3375) of the annual experienced joint-use cost of ordinary operation and maintenance of the project The first payment estimated to be eleven thousand nine hundred and twenty-four dollars ($11,924) will be due and payable within thirty (30) days following the date the City is notified that deliberate impoundment has been made Annual payments thereattet will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to six and three hundred thirty-seven thousandths percent (6 3372) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and six and three hundred thirty-seven thousanths percent (6 337%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the City The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the City 4 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the City shall bear the entire cost of such additional expense "(3) Five and three hundred thirty-four thousandths percent (5 334%) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred " "b In consideration of the Government's providing the aforesaid storage space of 54,425 acre-feet for future water supply use by the City, it is agreed that the City shall pay the following sums to the Government "(1) Four million nine hundred and eighty thousand one hundred and fifty-three dollars ($4,980,153), which is the estimated cost, including interest during construction, of providing the storage space for future water supply use in payments in the amount of one hundred and ninety-six thousand five hundred and sixty-one dollars ($196,561) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in Exhibit "C", bearing Contract No DACW29-68-A-0099, Supplemental Agreement No 2, attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the 10th anniversary of the date the City is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract "(2) Seven and four hundred sixty-six thousandths percent (7 4662) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated co be fourteen thousand and forty-nine dollars ($14,049) will be due and payaole within thirty (30) days following the 10th anniversary of the date the City is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to seven and four hundred sixty- six thousandths percent (7 466%) of the actual experienced joint-use cost of ordinary operation and maintenance of the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the differences between the first payment and seven and four hundred sixty-six thousandths percent (7 466%) of the actual experienced joint-use host of ordinary operation ano maintenance for the preceding fiscal year Records of cost and operation and maintenance of 5 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 the Project shall be available for inspection and examination by the City The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the City should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the City shall bea; the entire cost of such additional expense 11(3) Six and two hundred eighty-four thousandths percent (6 2842) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred." 2 Exhibits A, B, and C of Supplemental Agreement No 1 to the basic contract are replaced by Exhibits A, B, and C, thereto attached, bearing the Contract No DACW29-68-A-0099, Supplemental Agreement No 2 3 This Supplemental agreement shall be subject to the written approval of the Secretary of the Army and shall not be binding until so approved IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No, 2 as of the day and year first above written APPROVED THE UNITED STATES OF AMERICA ~`e9~; BY .0 I~ Secretary of the-Army Early J ush III Abilf Assistant lecrrtiry of the Army Colonel CE (C&%il %Iorksl Contracting Officer DATE CITY OF VING, TEXAS By R n tkin, Mayor P O Box 3008 Irving, Texas 75061 (Post Office Address) ATTEST ~%t'~ Z City lS cretary, itY of Irving, Texas &ADT F / Attorney City of 6 Irving, Pbxas I Contract No DACW29-68-A-0099 Supplemental Agreement No 2 I, Sally A Scripter , certify that I am the City Secretary of the City of Irving, Texas, named as City herein, thatR Dan Matkin who signed this Supplemental Agreement No 2 to Contract No DACW29-68-A- 0099 on behalf of the City was then MAYOR of the CITY OF IRVING, TEXAS, that said Supplemental Agreement No 2 was duly signed for and on behalf of the CITY OF IRVING, TEXAS, by authority of its governing body and is within the scope of its legal powers In Witness Whereof, I have hereunto affixed my hand and the seal of the CITY OF IRVING, TEXAS, this 8th day of July , 1976 ~ry , City of Irving, Texas CORPORATE SEAL 7 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 EXHIBIT A Contract No DACW29-68-A-0099 Supplemental Agreement No 2 EXHIBIT A I - Reservoir Storaees Percent of (1) M&I water Usable supply space Elevation storage (ft m s 1 ) (ac-ft) Water Supply Storage M3I water supply Initial use City of Irving 16 923 46,200 Future use City of Irving 19 936 54,425 Other MdI water supply users 63 141 172,375 Total M&I water supply storage 100 000 415 5-440 0 273,000 Flood control storage 440 0-446 2 131,400 Reservoir storage 404,400 II - Allocation of Estimated Construction Cost M&I water supply for initial use by the City of Irving $ 3,969,245 M&I water supply for future use by the City of Irving 4,675,937 M6I water supply use by others 14,809,556 Subtotal - M&I water supply $23,454,738 Flood control (non-reimbursable) 27,602,183 Recreation (non-reimbursable) 12,653,079 Total $63,710,000 III - Costs to be Repaid by the City of Irving for Initial and Future M&I Water Supply Use Initial M&I water supply use 16.923% of cost allocated to M&I water supply (0 16923 x $23,454,738) $ 3,969,245 Interest during construction (3253% x k of 4-year period) - 258,239 Total $ 4,227.484 (1) Storage remaining after 100 years of sedimentation A-1 k Contract No DACW29-68-A-0099 Supplemental Agreement No 2 Future M&I water supply use 19 936% of cost allocated to M&I water supply (0 19936 x $23,454,738) Interest during construction (3 253% x 4 of 4-year period) Total $4,675,937 304,216 $4,980,153 IV - Allocation of Estimated Operation, Maintenance, and Major Replacement Cost City of City of Irving Irving Other Initial Future M&I Flood M&I Water M&I Water Water Con- supply $ yr Suppi $/yr s 1Y S Yr trol $/yr Rec $/Yr Total $/Yr Oper & Maint Specific cost 0 0 0 81,939 94,893 176,832 Joint-use cost 11,924 14,049 44,491 73,229 44,475 188,168 Total 11,924 14,049 44,491 155,168 139,368 365,000 Major replacements Specific cost 0 0 0 0 55,819 55,819 Joint-use cost 170 200 633 1,702 476 3,181 Total 170 200 633 1,702 56,295 59,000 A-2 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 V - Annual Charges for Initial and Future M&I Water Supply Use - City of Irving Initial M&I water supply use Interest and amortization of cost of M&I water $166,854 supply features (see computation below) Joint-use operation and maintenance costs equivalent to 6 $7% of the actual joint-use operation and maintenance costs, computed as follows 37 44756% - percent of joint-use 06M cost allocated to M&I water supply 16 923% - percent M&I water supply space to be used by the City of Irving (initial) (37 44756% x 16923) a 6 337% of the actual joint-use 06M costs Estimated annual cost ( 06337 x $188,168) $ 11,924 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 5 334% of the actual joint-use major capital replacements and sedimentation resurvey costs, computed as follows 31 51961% a percent joint-use major capital replace- ment and sedimentation resurvey costs allocated to M&I water supply 16 923% a percent MO water supply space to be used by the City of Irving (initial) (31 51961% x 16923) - 5 334% of the actual joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 05334 x $3,181) - $ 170 Total annual cost for initial M&I water supply $178,948 Computation of Annual Payment for Interest and Amortization (Eased on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN D Annual payment D R R . Amount to be repaid . $4,227,484 ((l+i)n-1) i Interest rate a 0 03253 n Number of payments a 50 D - 053 (1+ 03253)49 x $4,227,484 - 0 0394689 x $4,227,484 (1!'0 53) -1 D . $166,854 A-3 10 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 Future M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) $196,561 Joint-use operation and maintenance costs equivalent to 7.466% of the adxual joint-usa uperation and maintenance costs, computed as follows 37 44756% - percent of joint-use 06M cost allocated to M&I water supply 19 936% - percent of M&I water supply space to be used by the City of Irving (Future) (37 44756 x 19936) - 7 466% of the actual joint-use 06M costs Estimated annual cost ( 07466 x $188,168) _ $ 14,049 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 6 284% of the actual joint-use major capital replacements and sedimentation resurvey costs, computed as follows 31 51961 - percent joint-use major capital replacement and sedimentation resurvey costs allocated to MdI water supply 19 936 - percent of M&I water supply space to be used by the City of Irving (Future) (31 51961% x 19936) - 6 284% of the actual joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 06284 x $3,181) - $ 200 Total annual cost for future M&I water supply $210,810 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) _ WHEREIN D - Annual payment D - (i(l+1)n~11 R R - Amount to be repaid - $4,980,153 ((1+i)n-l) 1 - Interest rate - 0 03253 n - Number of payments - 50 D - 03253 11+ 03253149 x $4,980,153 - $4,980,153 x 0394689 (1+ 03253) -1 D - $196,561 A-4 Contract No DACW29-68-A-0099 Supplemental Agreement No 2 EXHIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE CITY OF IRVING f T 14 1 n nl Contrict No DACW29-68-A-0099 r r'1( t JI, I)U Supplemental Ag reement No 2 l~I is , tit, rlsrNLl v, a u3>>J EXHIB IT B /1VVIIAL AvnluJl Arr'L1Wl1IU4 HALA 4L L•. In 1Y` F NJ 1 Or ALLUL 4,04tn hAYMt vI IIj ILJb i ALLJL LJzl "41 Qovj xcl TC 1 6(, er,54.o0 1 1 I066t)4.4J 0. 66b54 43 4U6Uo29.56 > 166854.43 13l_OY2 28 J410L 15 41.025dbl 41 3 1669;4.43 IJO961 41 JSd)2.96 JYd99/4•44 4 Ih6d54.4J 129I9J.IS I J/U6U.56 JYSLyIJ.bd b I668b4.4J I2K5bd 2Y Jdd6b.14 J914641-/5 6 166654 43 127343 4) J951U 91 36751J6 61 7 16os$54.43 126U5d.20 40796.23 JdJ4J4U.59 K 166854 43 124711.10 4/_123.33 J792217.46 9 lo6d54.4J 123360 bJ 43493.60 J748723.69 10 166854.43 121/45.98 449Ud.44 31UJ815.25 11 166854.43 1de04h5.11 46J69.J2 3657445.Y4 12 166854.43 1189/6.72 47811.71 J6U956b.22 13 166854.4) 117419.25 49435.17 3560133.06 14 166954.43 1151311.13 51U4J.JO 3509Ud9.7d 15 166854.41 114150.b9 527U3.14 J4S6J86.UJ 16 166854.43 112436.44 S441b.19 JAU19b7.64 17 166954.43 lIU666.01 56186.41 J34S719 44 IH 166H54.43 1068314 11 58016.22 32d776J.22 19 166854.43 106950.94 S9YU3.49 32d7d59./2 20 1661454.4) 105002 2b 61bS2.15 3166UU/.56 11 16bdb4.43 10299U 13 6Jb64 2U J1U2143.Jd 22 166954.43 100912.71 65941.70 JUJ62U1.69 23 166954.41 914767.64 68066. 7b 296d114.Y1 44 166954. 4J 96552.ld IUJ111.65 2d91d1J.25 25 166K54.4J 941-65.I$I 7db?J8.5b dd25224.69 16 1661;4.43 919U4.S6 74949.61 2/5U214.d1 27 166H54.43 b946o.44 17381.99 Cb7dbdb dl ,;s 14 16nHS4.4J 86)41.U1 19YU5.4d 25YLY8 1.41 29 Io68b4 4J 64J49.66 He 5u4.74 2SIU4/6 66 JO 166554.43 81665.61 d51bd 62 14252bd UJ it 1h6H54.43 IHU94.62 141959 dl dJJ7Jed.dd 32 1A6854.43 76UJJ.2) 90821 14 2d4o5U1 09 31 166 1 54.4J IJO14.hi YJ/75.55 2152131.SJ J4 1h6t554.4J /OUIH.Jb 96826.07 LU559U5.41 35 166h54.4J 66tf/K. 61 99975.82 1955929.66 36 1666 54.4J 63626.J9 IUJLLd.UJ lUbd7Ul.6J 3/ 1668 o4. 4J 6U266 .J-3 I1/65h6.04 1146115.5d 39 166,554 4J 568u1.14 11Uu5J.e) IbJ6U6d JU 39 1A6h54.41 SJ211.I1 1116JJ.Je Ibdd42b.9d 44) 1n6t554.4J 495v4.6, II/313) dt I4U5U99.11 41 1665J4.4J 4510/.rSo 121146.Sb IddJ952.OJ 413 166854.4J 41166.95 1dbUb1.45 Ilbbdb5.17 43 166444.43 J109/.6d 12Y156.z4 1DLY/Ub.6J 44 16b>554.4J JJ496 4` 1JJ35H UO K963511 bJ 45 166354 4J 291its. 29 IJ1696 14 /5io54 49 46 166H54.4J /.4679 Ili 142I75.J9 blb47).UY 41 166`554.4J dUU54 (so 146r5UU J6 469b/d /J 44 166H54. 9J 152/8 b5 1515/7 In JIb1Ud.9b 49 1*6554.4J 1 OJ4/.15 ) 1565U6.J4 16159 b.44 511 166 .SJ. 1 T 5256 1 1 1 61 596 rr 0. Contract No DAC'a29-68-A-0099 Supplemental Agreement No 2 EXHIBIT C AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY THE CITY OF IRVING - t'+ I j1 11)n I) j.Oil r It Nn I r '11 , jn Contract No DACW 29-68-A-0099 111 ~ , I t „t,r 41 0 U 11 SJ Supplemental Agreement No 2 EXHIBIT C ANV'u1L \J 1141 Aet L iw111JN UALA4UL Av,rF JT 0P ALLUL NAYMtNI 1N1Ei<E~I ALLUL LdS1 t,Jzi l ~QG, j, 6EM Te, 1965 G I, nn 1 IV h54)1,4Y 0, 196561 49 47835YI.5U 2 1965b;.4Y 155610 2J 40951 26 474,e640.G5 7 I9u561.49 154[73.09 4GL8J.41 47UUJ56.8d 4 1961)61,4) I52)02.61 41bbd.bd 4656b9d.UU 5 196561.4) IS14,4G.39 45U7Y,ll 4611618.dd A 196561.49 I:DOU15.96 46545.5J 4565U7J.J1 7 196561.49 14d51/1.d4 4dU59.66 451IUIJ,6J H 190b,31 .49 1469J)1.45 4962J.04 44b7JY0.56 9 1)6561.49 1453,14 GI SIGJ/.2iS 441615J.J1 10 196561.49 143u57.47 S2YU4.UJ 4J6Jd49.J1 Il 1)6561.49 141Y36.5U 54624.99 4JUd624.31 Il 196561.49 14015).55 504U1 95 4252222.36 13 190561.49 1J6314.1) bd2Jb.7U 419J9d5.b9 14 19h561.49 1J64J0.J5 60131.14 41JJd54.56 lb 196561.49 134474.[9 6208/ G1 4U/1/67.04 16 196561.49 IJ4:454,5) b41U6 9U 40U16*0.44 17 196561.49 IJUJ69.19 661Ye JO 3)41468.13 Ili 196561.49 1.x,1115.96 64J45.54 Jd/31[2.59 19 196561.49 1259V2.68 lobbd.d2 JdOG55J.7d LO 196561.49 IG369I,Wi 72da4.4G 3/296dY.3d 21 19h561 49 121326.79 /5GJ4.7U J654454,69 12 19h5bl.49 IIdd7Y,41 II6161d.Uh J576114.59 2i 196561.49 116J52.41 dUG1.19.016 J49656J.50 24 19n561.4) IIJI4J GI dGdId.td 0411745.22 25 I965hl.49 111U49.1J 85512 Jb JJtd23G.d4 16 19b5/i1.4) IO6G67.41 t, tSG94.0U J2JYYJd,75 l7 196bol.49 105395.2! Y116h 1.9 J14d/72,47 18 1965hl 49 ItN 429.5/ 94131.9J JU54040.5J 2) I)bb6l.49 99J6/.40 )71Y4.U4 2957446.50 30 196561.49 96205.14 IUUJ55.76 2d57UY0.I5 31 I9h561.4) 91941 16 1 UJulU.JJ 2/5J47U.41 32 1)6b6l.4Y 3Y57U J) IU69Yl IU [646419 J1 JJ 194)561.4) 16OK9.97 110471.52 GSJbUU7.Its 34 196561.4`) 6G4Y6.JJ 114Ub5.16 G42194G.aj 35 19.).1(31. 4) 781115 79 11/171./U GJ04166.Y4 JA _ 196bOl 49 14954.55 let 6O 6.94 GId25bU.VU 37 19F551. 49 /U)M 611 125562.d2 eUbb9Y7.lY 31 1)65u1.4) tin) 14.11 14964/ JO 1)G/J49.rf1 J) 1706561.49 614)96.69 1 JJbb4 4)U I/YJ4d5.0G 4U I9h5bI.4) JdJ42.UI IJ,S219. 4J Ib55Gh5. 5Y 41 116J,n10 4i 5J•S4ti9 141/15.71 1512549.d9 4, 1)h.)61.49 4)2UJ Gu 147JtM.35 1Jb5191.64 41 196561.49 4440).66 154151.,11 121JUJY.bJ 4,4 196561 49 4)4w) IY 15/101 it I055NJd.5G 45 194561.49 JAJ49 6.1 162211 61 69J/26 IU 46 19h561 49 2)UIe.)J 16/435 b6 /G62Jd,14 4/ 196561.49 1J 624.jJ I/G9J6 Y/ 55JJUI.1/ 43 1905(,1.49 17991.d9 I/6561 1,1 J74/Jd.SI 49 1)hj6l.4) I)I)it 15 Id4J/1 /5 I)UJ67.JG ASSJ-\." C-- Cc CCt"?LI C_ T D %PA.RT, C: T OF DEFZi'SZ DI^-'C:. V' L_1 :IT.... VI OF Te ; CIVIL RIGhM ACT 0^ 1964 C_T: 0^ I4'i"Gr(icre.RPfter called the "City") HEREBY AGRZES THAT it will cczpl wit' t_tle VI o: tie Civil RiGhts Act of 1964 (P L 88-352) ana all roc,u,-e-cnts imposea by or Pursuant to the Directive of the Departrert of Defense (32 CFR Dart 300, issued as Department of Defense Directire 5500 11, Dece-ioer 28, 1964) issued pursuant to that title, to the end t-at, in accordance with title VI of that Act and t.e Directive, no person in the Lnited States shall, on the ground of race, color, or rational origin be eAcluded from participation in, be denied tie benefits of, or be otherwise subjected to discrimination under any program or activity in connection with the collection, dis- tribution, and use of water, for municipal and industrial purposes, from storage space in the authorized Cooper Rese:woir, which reservoir is to be constructea by the U S Army Corps of Engineers and in connection w.th rnich the City will receive financial assistance under the Water Supply Act of 1958, 43 United States Code 390b, and IM23Y OIVI;S ASSURA:+CE THAT it will immediately take any measures necessary to effectuate this agreement If any real property or structure thereon is provided or improved with the aid of Federal financial assistance exte~u:ed to the City by the Departmert of tre Army, assurance shall obligate the City, or in the case of a^y transfer of such property, any transferee, for the period during whicn the real property or structure is used for another purpose involvi,g the provision of similar services or benefits If any personal property is so provided, this assurance shall obligate the City for tae perioa during which it retains ow-ership or possession of the property In all other cases, tiis assurance shall obligate the City for the period during whicn tae Feaerai financial assistance is extendea to it by the Department of the Army. THIS ASSU=ANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts, property, discounts or other Federal fananciai assistance extended after the date hereon to the City by the Department, including installment payments after such date on account of arra-'gements for Federal financial assis- tance which were approved be:ore such date The City recognizes and agrees that such Federal financial assistance will be extended in reliance on the representati^ns and agreements made in this assurance, and that the United States shall have the right to seek judicial eif0:C2^2^t G Ps3uraice T is a33urance is bindir," On the C.tf, its 3"CesoO`s, t^F.'sf0^e0s, cna assiZ-e3, d^d the person or persons whose sic,^atures a ;ea- below are a,tno:ized to sign this assu-ante on bena_f o_ the City Dated t~) ,4 He t 7 b~+r~ 7~o6d res en , Chairman of Boara, or comparable authorized official) CITY OF IRVIN'G (C ty) P id t 2 4 Exhibit C CONTRACT RO DACW29-68-A-0101 CONTRACT BETWEEN THE UNITED STATES OF AMERICA AND SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR THIS CONTRACT, entered into this 29th day of March 1968 by and between the UNITED STATES OF AMERICA (hereinafter called the Government), represented by the Contracting Officer executing this contract, and the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, an agency of the State of Texas with its principal office in the city of Commerce, Texas (hereinafter called the District), WITNESSETH THAT WHEREAS, construction of the Cooper Reservoir on South Sulphur River, Texas (hereinafter called the Project), has been authorized by the Act approved 3 September 1954 (Public Law 780, 83d Congress, 2d Session), as amended by the Act approved 3 August 1955 (Public Law 2189 84th Congress, lot Session), and, WHEREAS, the Sulphur River Municipal Water District of Texas, a governmental agency of the State of Texas, created under provisions of Acts 1955, 54th Legislature, State of Texas, Regular Session, approved 13 May 1955 (Art 8280-165, Vernon's Texas Statutes) with the power to acquire any and all rights in and to municipal, dorestic, and industrial water supply storage capacity to be provided in the Project, has been authorized by the Texas Water Rights Commission as an agency with whom the Contracting Officer should negotiate with respect to a portion of the water supply storage in the Project, and, WHEREAS, the Government is authorized by the Water Supply Act of 1958 (Title III of Public Law 85-500 approved 3 July 1958), as amended by Section 10 of the Federal Water Pollution Control Act Amendments of 1961 (Public Law 87-88 approved 20 July 1961) to include storage in any reservoir project to be constructed by the Corps of Engineers to impound water for present or anticipated future demand or need for municipal or industrial water, and, WHEREAS, Public Law 88-140, approved 16 October 1963, makes permanent rights of states and local interests to utilize municipal and industrial storage in Corps of Engineers' reservoirs for which they contributed, and, CONTRACT NO. DACW29-68-A-0101 WHEREAS, storage space has been included in the project for municipal and industrial water supply, and, WHEREAS, the District desires to utilize 17,750 acre-feet of storage space as a source of initial municipal and industrial water supply as set forth in Article 1, end, WHEREAS, the District desires to utilize an additional 54,000 acre-feet of storage space for future municipal and industrial water supply as set forth in Article 1, and, WHEREAS, the District hereby agrees to fulfill the local interest requirements of the Water Supply Act of 1958, as amended Now, THEREFORE, the parties do mutually agree as follows ARTICLE 1 WATER STORAGE SPACE - a The District shall have the right to utilize an undivided six and five hundred two thousandths percent (6 502%) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the District to impound water in the Project for its initial munici- pal and industrial use, and make such diversions as granted to the District by the Texas Water Rights Commission, or its successors, to the extent such storage will provide b The District shall further have the right to utilize, from the 10th anniversary of the date of deliberate impoundment, an undivided nineteen and seven hundred eighty thousandths percent (19 780x) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the District to impound water in the Project for its future municipal and industrial use, and make such diversions as granted to the District by the Texas Water Rights Commission, or its successors, to the extent such storage will provide c. The rights described in Articles 1 a and b above are subject to the retention by the Government and others of the remaining undivided seventy-three and seven hundred eighteen thousandths percent (73 718%) of the storage space for such purposes as the Government may deem advisable d The District will not make or permit withdrawals which would lower the water level below elevation 415 5 feet above mean sea revel, unless expressly approved in writing by the Contracting Officer 2 CONTRACT NO DAM29-68-A-O101 e The Government shall not be responsible for diversion by others, nor will it become a party to any controversies between users of the aforesaid storage space, except as such controversies may affect storage space reserved by the Government f. The design and location of any future District installations or facilities that the District may construct at the Project for the purpose of diversions or withdrawals shall be subject to the approval of the Contracting Officer, and the cost of such installations or facilities, or any modifications thereof, shall be borne by the District g. The Government reserves the right to take such measures as may be necessary in the operation of the Project to preserve life and/or property h. The Government reserves the right at all times to maintain a low flow release of 5 cubic feet per second, regardless of the elevation of the water During periods of regulation for water supply (when the reservoir water surface is below elevation 440.0 feet above mean sea level), the District shall be entitled to six and five hundred two thousandths percent (6 502%) of the yield of the aforesaid storage space after allow d6a of the flow of 5 cubic feet per second, for a period of 10 years after the date of deliberate impoundment. Thereafter the District shall be entitled to twenty-six and two hundred eighty-two thousandths percent (26 282%) of the total yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second Should the rate of withdrawal for water supply, downstream release, and evaporation fail to maintain a recession in water level of 2/10 of a foot in any 10-day period during the months May through October, inclusive, the Government reserves the right to obtain the above rate of recession by release of water downstream in excess of 5 c f s. in the interest of mosquito control Should the inflow during the months May through October, inclusive, result in a rise in water level and require an additional expenditure in the interest of mosquito control, proportionate reimbursement for such expenditure shall be made by the District I. To implement the provisions of this article, the Government shall, at the appropriate time and in consultation with the District, formulate a plan of operation for the project which vill achieve these objectives. j The "date of deliberate impoundment" as used in this contract shall mean the date upon which the Project becomes opera- tive for storage of water for any of the purposes contained in the authorizing Act 3 CONTRACT NO DACN29-68-A-0101 ARTICLE 2 METERING - For the purpose of maintaining an accurate record of water resources at the Project, the District shall install suitable meters or metering devices satisfactory to the Contracting Officer without cost to the Government, at such time as the District may withdraw water from the Project The District shall furnish the Government periodically, at least monthly, a record of all such withdrawal@ from the Project. Nothing in this article is to be construed as prohibiting participation b) the District in coopera- tive gaging programseponsored by the United States Geological Survey or other Government agencies in the water resources field. ARTICLE 3 FEDERAL AND STATE LAWS - The District shall utilise such storage space in a manner consistent with Federal and state lava ARTICLE 4 REGULATION OF THE USE OF WATER - The regulation of the use of water stored in thevater supply spaces covered by this contract (17,750 acre-feet for initial, 54,000 acre-feet for future) shall be the responsibility of the District upon initiation of payment by the District for construction costs allocated to such spaces ARTICLE 5• CONSIDERATION AND PAYMENT a In consideration of the Government's providing the aforesaid storage space of 17,750 acre-feet for initial water supply use by the District, it is agreed that the District shall pay the following Bums to the Government (1) Six hundred thousand nine hundred and fifty-nine dollars ($600,959), which is the estimated cost, including interest during construction, of providing the storage space for initial water supply use in payments in the amount of tventy-three thousand seven hundred and nineteen dollars (=23,719) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "B" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, vnen due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has oeen made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract 4 COMACT 30 DACW29-68-A-0101 (2) Two and two hundred sixty-four thousandths percent (2.264%) of the annual experienced point-use cost of ordinary operatioh and maintenance of the Project The first payment estimated to be two thousand six hundred and thirty-one dollars Wj631) will be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made. Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to two and two hundred sixty-four thousandths percent (2 264%) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and two and two hundred sixty- four thousandths percent (2.264%) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be de- termined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense (3) One and nine hundred twelve thousandths percent (1.912%) of the cost of sedimentation resurveys and point-use major capital replacements when incurred (4) In the event of default in the payment of the coats contained in Article 5 a (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty-three thousandths percent (3.253%) per annum thereon, compounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid b In consideration of the Government's providing the aforesaid storage space of 54,000 acre-feet for future water supply use by the District, it is agreed that the District shell pay the following sums to the Government (1) One million eight hundred and twenty-eight thousand two hundred and seventy-one dollars ($1,828,2T1), which is the esti- mated cost, including interest during construction, of providing the storage space for future water supply use in payments in the 5 CONTRACT N0. DACW29-68-A-0101 amount of seventy-two thousand one hundred and fifty-nine dollars ($720159) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3.253x) per annum on the unpaid balance. The aforesaid payments are more specifically set forth in exhibit "C" attached hereto and made a part bereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due Lad payable within thirty (30) days following the tenth anniversary of the date the District is noti- fied that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract (2) Six and eight hundred eighty-eight thousandths percent (6.888%) of the annual experienced point-use cost of ordinary operation and maintenance of the Project The first payment estimated to be eight thousand and four dollars ($8,004) will be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impound- ment and will be equal to six and eight hundred eighty-eight thousandths percent (6 $88%) of the actual experienced point-use cost of ordinary operation and maintenance of the preceding Govern- ment fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and six and eight hundred eighty-eight thousandths percent (6 888%) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense 6 CONTRACT 30 DACN29-68-A-0101 (3) Five and eight hundred fifteen thousandths percent (5.815x) of the cost of sedimentation resurvey$ and joint- use major capital replacements when incurred (L) In the event of default in the payment of the costs contained in Article 5.b (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum thereon, com- pounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid (5) The District may, upon written notice to the Government at any time prior to the tenth anniversary date of delib- erate impoundment, advance or defer the date of first use of all or any portion of the storage space provided under this contract for future water supply, subject to the requirements that the entire amount of the construction costs, including interest during construc- tion, allocated to water supply shall be repaid within the life of the project, and that repayment of the amount of such costs for any portion of the storage space used shall be made within a period of not to exceed 50 years from the date such portion of the storage space is first used for the storage of water for water supply pur- poses. No principal or interest payment with respect to the storage space provided under this contract for future water supply is required to be made during the first 10 years following the date of deliber- ate impoundment unless all or a portion of such storage space is used by the District for the storage of water for water supply pur- poses, in which event repayment for the portion used shall be started and shall be repaid within not to exceed 50 years from the date of first use In the event the date of first use of all or a portion of the future water supply storage space is deferred beyond the 10th anniversary date of deliberate impoundment, interest at the rate specified will be charged for that portion from the 11th year until such time as it is first used for the storage of water for water supply purposes The District may at its option pay the interest as it becomes due or may allow the interest to accumulate until the storage space is used If this latter option is exercised the interest will be compounded Annually and will be added to the principal amount c In the event the actual first cost of the Project exceeds the presently estimated first cost, as set forth in exhibit "A," the aforesaid annual payments shall be increased to reflect the actual first cost, including interest during con- struction, as determined by the Contracting Officer In the event such first cost of the Project is less than the presently estimated first cost, the aforesaid annual payments shall be decreased to reflect the actual first cost, including interest during construction, 7 CONTRACT NO DACW29-68-A-0101 as determined by the Contracting Officer. In the event the annual payments are increased or decreased, as provided above, an adjustment, as determined by the Contracting Officer, of payments made prior to the determination of the final Project cost shall be made in the first payment due after such costs are determined The interest rates used in this contract are for estimating purposes only. The interest rate used for purposes of computing interest during construction and interest on the unpaid balance shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the Project is initiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from date of issue At the time that the final Project costs are determined, the repayment schedules shall be modified to reflect the increased or decreased annual payments and such modification will form a part of this contract ARTICLE 6 NO WARRANTIES AS TO QUALITY OF WATER - The parties hereto recognize that the water in the storage space being made available to the District under the terms of this agreement is raw reservoir water The Government makes no representations with respect to the conditions or the potability of the water, and as- sumes no responsibility therefor or for treatment of the water, or for undertaking any action which might tend to reduce contamination from the reservoir or from other sources in the watershed ARTICLE 7 PERIOD OF CONTRACT - This contract shall become effective as of the date of approval by the Secretary of the Army, and shall continue in full force and effect, under the conditions set forth herein, not to exceed the life of the Project This contract is subject to the provisions of Public Law 88-140, approved 16 October 1963, and the District shall have a permanent right to the use of such storage spaces after the period of years specified for repayment under Article 5 in the contract, or as amended, subject to the following a The District must have discharged its responsibilities for payment of the costs allocated to water supply b. The District must continue payment of its share of annual operation and maintenance costs allocated to water supply c The District must pay in lump sum, or annually with interest, the costs allocated to water supply which may at termin- ation of the repayment period set forth in the contract, or thereafter, 8 CONTRACT $0 DACW29-68-A-0101 be required for any necessary reconstruction, rehabilitation, or replacement of PFoject features which may be required to con- tinue satisfactory operation of the Project Such costs vill be established by the Contracting Officer Repayment arrangements will be in vriting and will be made a part of this contract. d. Upon termination of the repayment periods set forth in the contract, the Contracting Officer shall redetermine the storage space for municipal and industrial water supply, taking into account such equitable reallocation of reservoir storage capacities among the purposes served by the Project as may be necessary due to sedimentation. Such findings, and the storage space allocated to municipal and industrial water supply, shall be defined and described in an exhibit which will be made a part of this contract Following the same principle, such reallocation of reservoir storage capacity may be further adjusted from time to time as the result of sedimentation resurveys to reflect actual rates of sedimentation and the exhibit revised to show the revised storage space allocated to municipal and industrial water supply e The permanent rights of the District under this contract shall be continued as long as the Government continues to operate the Project. In the event the Government no longer operates the Project, such rights may be continued subject to the execution of a separate contract, or supplement agreement pro- viding for (1) Continued operation by the District of such part of the facility as is necessary for utilization of the storage space allocated to it, and (2) Terms which will protect the public interest, (3) Effective absolvement of the Government by the District from all liability in connection with such continued operation ARTICLE 8 OPERATION AND MAINTENANCE - The Government shall operate and maintain the Project owned by the Government The District shall have the right to make withdrawals of water for its purposes as needed in accordance with Article 1 The District shall be responsible for operation and maintenance of all features and appurtenances wnich may be provided and owned by the District ARTICLE 9 RIGHTS-OF-WAY - The Government, subject to the approval of the Secretary of the Army, shall, without additional CONTRACT no. DACW29-68-A-0101 consideration, grant to the District, by separate instrument or instruments, an easement or easements as may be required for the construction, operation and maintenance of pumping facilities and water supply pipelines in, on, over, and across Government- owned lands acquired for project purposes The instruments granting such easements shall be consistent with Government con- tract provisions in effect at that time, with such modifications as may be necessary in each instance and as may be approved by the Government. ARTICLE 10 RELEASE OF CLAIMS - The District shall hold and save the Government, including its officers, agencies, and employees, harmless from liability of any nature or kind for or on account of any claim for damages which may be filed or asserted as a result of the storage in the Project or vithdraval or release of water from the Project, made or ordered by the District, or as a result of the construction, operation, or maintenance of the features or appurtenances owned and operated by the District ARTICLE 11 TRANSFER OR ASSIGNMENT - The District shall not transfer or assign this contract, nor any rights acquired thereunder, nor suballot said water or storage space or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without approval of the Secretary of the Army, provided, that, unless contrary to the public interest, this restriction shall not be construed to apply to any water which may be obtained from the water supply storage space by the District and furnished to any third party or parties ARTICLE 12 OFFICIALS NOT TO BENEFIT - No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit ARTICLE 13 COVENANT AGAINST CONTINGENT FEES - The District warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or con- tingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the District for the purpose of securing business For breach or violation of this warranty the Government shall have the right to annul this contract 10 4, r ~ CONTRACT NO. DACU29-68-A-olol without liability or in its discretion to add to the contract price or consideration, or otherwise recover, the full mount of such commission, percentage, brokerage, or contingent fee ARTICLF 14 APPPCVAL OF CONTRACT - This contract shall be subject to the written approval of the Secretary of the Aiay, and shall not be binding until so approved IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written APPROVED, THE UNITED STATES OF AMERICA Secretary of the Army Contrac g Officer DATE: 11 JUL 1968 SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS President r- 1910 Monroe Street Commerce, Texas t5428 Post office aadress ATTEST Secretary, Sulp !g?Riv-er Municipal Water trict of Taxes APPROVED FORM Attorney, Sulphur River Municipal Water District of Texas 11 .NO. DACW29-68-A-0101 Is N ''('Z✓r'j~' j~~' , certify that I am the Secretary of the SUI JR RIVER MUNICIPAL WAT D S~ TAIC „pF FQf S herein, a body politic and corporate, that vho signed this contract on behalf of the District vas then i PRESIDENT of said SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, thn: said contract vas duly signed for and on behalf of the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS by authority of its governing body and is within the scope of its legal povers. Ia Witncos Whoreof, I have horeunto affixed ny hand and the Aleal of said SUUfrIUA RIVE" MIMIC ;AL WATER DISTRICT OF TEXAS this Z;L day of Fq 196_ ,`x+.. . Water District of Texas CORPORATE SEAL 3 . 12 EXHIBIT A I - Reservoir Storages Percent of M&I water Usable supply space Elevation ator (1 ft -as 1 ) ac-fte i I I Water supply storage Municipal water supply Initial use Sulphur River Municipal Water District 6.502 17,750 Future use Sulphur River Municipal Water District 19 780 54,000 Other M&I water supply users 73 T18 201,250 Total water supply storage 100 000 415 5-440 0 273,000 Flood control storage 440 0-446 2 131,400 Reservoir storage 0 , 00 (3.)Storage remaining after 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for initial use of Sulphur River Municipal Water District $ 564,249 M&I water supply for future use of Sulphur River Municipal Water District 1,716,590 Md,I water supply for use of others 6,397,476 Subtotal - M4I water supply $ 86678,315 Texas Water Development Board participation 1,715,471 Flood Control (nonreimbursable) 10,196,503 Recreation (nonreimbursable) 5,938,711 Total $26,529,ooo 1 III - Initial M&I rater supply use 6.502% of cost allocated to M&I vater supply (0 06502 x %8,678,315) i 564,249 Interest during construction (3.253% x 1/2 of 4-year period) 36 710 Total i 50,959 Future M&I vater supply use 19.780% of cost allocated to M&I vater supply (0 19780 x $8,678,315) =1.716,590 Interest during construction (3 253% x 1/2 of 4-year period) 111 681 Total $1 271 Iv - Operation and maint. Specific cost Joint-use cost Total Mayor replacements Specific cost Joint-use cost Total SRMWD SRMWD Other M&I M&I M&I Initial W S Fut W S W S Vyr Vv_r 0 0 0 2.631 8 004 29 830 2, 31 ,,;6 29-,830 TWDB /Yr 0 8,39 Flood Control Rea UT"- a7 50.600 58,600 37 270 0 026 T", B_ o 889"2 Total n 109,200 116 200 225, t; 0 0 0 0 0 18,600 18,600 20 61 20 231 504 231 5 50 179 1-8,779 1 060 -1;t6-6;- 2 V_ Initial M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) Joint-use operation and maintenance costs equivalent to 2.264 of the actual point-use operation and maintenance costs, computed as follows- 34.824% a percent of point-use OL4 cost allocated to M&I water supply 6.502% - percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (34.824% x .06502 a 2.264% of the actual Joist-use 0&M costs Estimated annual cost (.02264 x ;116,200) Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 1 912% of the actual joint-use major capital replacements and sedimentation resurvey costs, computed as follows 29 400% a percent joint-use major capital replacement and sedimentation resurvey costs allocateA to M&I water supply 6 502% ■ percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) $ 23,719 $ 2,631 (29 40o% x ,06502) a 1.912% of the actual Joint-u e major capital replacements and sedimentation resurvey costs Estimated annual cost (.01912 x %1,060) 20 Total annual cost for initial M&I water supply $ 26,370 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) D i l+i n-1 [(1+0%1) R D • 03253 1+ 032 49 1+.03253) - 1 x D a $23,719 WHEREIN D - Annual payment R . Amount to be repaid a $600,959 i - Interest rate e 0 03253 n Number of payments - 50 $6oo,959 - 0 0394689 x $600,959 3 Future M&I water supply use Interest and amortisation of cost of M&I water supply features (see computation below) $ 72,159 Joint-use operation and maintenance costs equivalent to 6 6886 of the actual joint-use operation and maintenance costs, computed as follows 34 8246 = percent of joint-use 0&M cost allocated to M&I water supply 19 780% ■ percent of M&I water supply space to be used by the Sulphur River Municipal Water District (Future) (34.824% x .19780) = 6.688% of the actual point-use 0&M costs Estimated annual cost (.06888 x $116,200)= $ 8,004 Joint-use mayor capital replacement and sedimentation resurvey costs, when incurred, equivalent to 5 8156 of the actual point-use mayor capital replacements and sedimentation resurvey costs computed as follows 29 400% = percent point-use mayor capital replacement and sedimentation resurvey costs allocated to M&I water supply 19 780% = percent of M&I water supply space to be used by the Sulphur River Municipal Water District (Future) (29 400% x 19780) ■ 5 815% of the actual point-use mayor capital replacements and sedimentation resurvey costs Estimated annual cost ( 05815 x $1,o6o) _ $ 61 Total annual cost for future M&I water supply $ 80,225 Computation of Annual Payment for Interest and Amortization (Based on 50 paymente,49 of which bear interest on the unpaid balance) D = 03253 (1+ 03253)49 (1+.03253)50-1 D = $72,159 WHEREIA D = Annual payment R ■ Amount to be repaid = $1,828,2T1 i = Interest rate = 0 03253 n = lumber of payments ■ 50 x $1,828,271 ■ $1,828,271 x 0394689 4 T EO3IIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT Y 'OTA-LC•OS .T'S. 06.00;5 w 10 . . . . . . . . . . . . w . . . . . • NUMBFR OF PAYMENTS 50 INTEREST RATE. PERCENT 0903253 . . . . • . . . . . . • . . . . - - . • . . . . . . . ANNUAL AMOUNT APP LICATION BALANCE PAYMENT OF - • - - - ALLOC NUMBER PAYMENT INTERFST ALLOC COST COST 1 23719.00 0.00 23719.00 577240.00 2 23719.00 18777.61 4941.39 572298.61 3 23719.00 18616.87 5102.13 567196,48 4 23719.00 18450,90 526P.10 561928.38 5 23719.00 18279.53 5439.47 556488.91 6 23719.00 18102.58 5616.42 550872.49 7 23719.00 17919.68 5799.12 545073,37 8 23719.00 17731.23 5987,77 539085.60 ' 9 23719,00 17536.45 6182.55 532903,05 10 23719.00 17335.33 6383.67 526519.38 it 23719.00 17127,67 6591.33 519928.05 12 23719.00 16913.25 6805.75 513122.30 13 23719.00 16691,86 7027.14 506095.16 14 23719.00 16463.27 7255.73 498839.43 15 23719.00 16227.24 7491.76 491347.67 16 23719.00 15983.53 7735.47 483612.20 17 23719.00 15731.90 7987.10 475625,i0 i8 23719.00 15472.08 8246.92 467378.18 19 23719.00 15203.81 8515.19 458862.99 20 23719.00 14926.81 8792.19 450070.80 21 23719.00 14640.80 9078.20 440992,60 22 23719.00 14345.48 9373.52 431619.08 23 23719.00 14040.56 9678.44 421940.64 24 23719,00 13725.72 9993.28 411947.36 25 23719.00 13400.64 10318.36 401629.00 26 23719,00 13064.99 10654.01 390974,99 27 23719.00 12718,41 11000059 379974.40 28 23719.00 12360.56 1135R,44 368615.96 29 23719.00 11991.07 11727.93 356888,03 30 23719.00 11609,56 12109.44 344778.59 31 23719.00 11215,64 12503.36 332275,23 32 23719.00 10808.41 12910.09 319365.14 33 23719.00 10388.94 13330.06 306035.0e 34 23719.00 9955.32 13763.68 292271.40 35 23719.00 9507.58 14211.42 278059,98 36 23719.00 9045.29 14673.71 263386.27 37 23719.00 8567.45 15151.05 248235.22 38 23719.00 8075.09 15643.91 232591.31 39 23719.00 7566,19 16152.81 216438.50 40 23719.00 7040.74 16678.26 199760.24 41 23719.00 6498.20 17220.80 182539.44 42 23719.00 5938,00 17781.00 164758.44 43 23719.00 5359.59 18359.41 146399.03 44 23719.00 4762.36 18^56.64 12'4'2.39 45 23719.00 4145.70 19573.30 107869.09 46 23719.00 3508.98 20210 02 87659,07 47 23719.00 2851,F4 20867.46 66791.61 48 23719.00 2172.73 21546.27 45245.34 49 23719.00 1471.83 22247.17 22998.17 50 23746.30 748.13 ?2998.17 0.00 E MIBIT C AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT 9TAt ,ACT t s8?827 10 JMBFI, (IF PAYMENTS 50 IkTERE'4T RATE. PERCENT 0.03253 ANNUAL AMOUNT APPLICATION BALANCE PAYMENT OF . . . • . . . . . . ALLOC NUMBER PAYMENT INTEREST ALLOC COST COST I 72154.00 0.00 72159.00 1756112.00 2 72159.00 57126.32 15032.68 1741079.32 3 72159.00 56637.31 15521.69 1725557,63 4 72159.00 56132.38 16026.62 1709531.01 5 72159.00 $5611.04 16547.96 1692983.05 6 72159.00 55072.73 17086.27 1675896.78 7 72159.00 54516,92 17642,08 1658254,70 8 72159.00 53943.02 18215.98 1640038.72 9 72159.00 53350.45 18808.55 1621230.17 10 72159.00 52738.61 19420.39 1601809.78 11 72159.00 $2106.87 20052.13 1581757,65 12 72159.00 51454.57 20704.43 1561053.22 13 72159.00 $0781.06 21377.94 1539675.28 14 72159 00 50085.63 ?207347 1517601,91 15 77159.00 49367,59 22791.41 1494810,50 16 7?159.00 48626.18 23532.82 1471277.68 V 72159.00 47860.66 24298.34 1446979.34 18 72159.00 47070.23 25088.77 1421890.97 19 72159.00 46254.10 25904.90 1395985.67 20 72159.00 45411.41 26747.59 1369238.08 21 72159.00 44541.31 27617.69 1341620,39 22 72159.00 43642,91 28516.09 1313104.30 23 72159.00 42715.28 29443.72 1283660.58 ?4 72159 00 41757.47 30401.53 1253259.05 25 7215940 40768.51 31390.49 1221868.56 26 72159.00 39747,18 32411.62 1189456.94 27 72159.00 38693.03 33465.97 1155990,97 28 72159.00 37604.36 34554.62 1121436.35 29 72159.00 36480.32 35678.68 1085757.67 30 31 72159.00 35319.69 36839.31 1048918.36 72159.00 34121.31 38037.69 1010880.67 32 72159.00 32883.94 39275.06 971605,61 33 72159.00 31606,33 4055?,67 931052,94 34 72159.00 30787.15 41871.85 889181.09 35 72159.00 28925.06 43233.94 845947.15 36 72159.00 27518,66 44640.34 801306.81 37 72159.00 26066.51 46092.49 755214,32 38 72159.00 24567,12 47591.88 707622,44 39 72159.00 23018.95 49140.05 658482,39 40 72159.00 21420.43 50739.57 607743,82 41 72159.00 19769,90 52389.10 555354.72 42 72159.00 18065.68 54093.32 501261.40 43 72159.00 16306.03 55852.97 445408,43 44 72159.00 14489.13 57604,87 387738.56 45 72159.00 12613.13 59545.87 328192.69 46 72159.00 10676,10 61482.90 266709.79 47 77159.00 8676.06 63482.94 203226,85 48 49 72159.00 6610996 65548.04 137678,81 72159.00 4478.69 67680.31 69998,50 50 72275.55 2277.05 69998.50 0.00 , Exhibit D Cont CL No DACW29-68-A-0101 Supplemental Agreement No 1 SUPPLEMENTAL AGREEMENT NO 1 BETWEEN THE UNITED STATES OF AMERICA AND THE SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR day of JA This Sup$plemental Agreement No. 1, entered into this/. 1970 by and between the UNITED STATES OF AMERICA (hereinafter a le the Government) represented by the contracting officer executing this agreement, and the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, as agency of the State of Texas, with its principal office in the City of Commerce, Texas (hereinafter called the District), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0101 with the District for the purchase of water supply storage space in Cooper Reservoir, and WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0102 with the TEXAS WATER DEVELOPMENT BOARD, an agency of the State of Texas existing under the laws of Texas (hereinafter called the Board), and WHEREAS, at the time the Board entered into Contract No. DACW-29-68-A-0102, the Board had intended to construct the Sulphur Bluff and Naples Reservoirs (features of the Texas Water Plan) downstream of Cooper Reservoir, and WHEREAS, construction of these downstream reservoirs would have inundated areas now protected by existing channel and levee improvements already constructed under the Project as well as areas to be protected by future levee and channel improvements authorized to be constructed under the Project, and would have eliminated certain levee and channel improvements authorized for construction under the Project, and WHEREAS, the construction of these downstream reservoirs would operate to reduce the benefits allocable to the purpose of flood control in the Project, and thus increase the costs allocated to the purpose of the municipal and industrial water supply over those allocable to such purpose in the Project as authorized, and WHEREAS, the Board in a resolution dated 27 April 1966 indicated its willingness to bear the additional costs allocated to the purpose of municipal and industrial water supply in Cooper Reservoir resulting from the construction and operation of the downstream reservoirs, to the end that costa to purchasers of municipal and industrial water supply storage space in Cooper Reservoir would be the same both with and without construction of those features of the Texas WaLnl Plan, anj Contract No DACW29-68-A-0101 Supplemental Agreement No 1 WHEREAS, an earlier plan for development of Cooper Reservoir included storage space in the amount of 32,100 acre-feet for the purpose of water quality control, and WHEREAS, a minimum downstream release of S c f e from Cooper Reservoir will be sufficient to satisfy the water quality needs for the Sulphur River, thus making unnecessary the provision of storage space in Cooper Reservoir for water quality control, and such minimum release being assured by the State of Texas in accordance with state standards as approved by the Federal Water Pollution Control Administration (whose functions were incorporated into the authority of the Environmental Protection Agency), and WHEREAS, the space previously reserved for water quality control has been reassigned, in equal amounts, to the North Texas Municipal Water District of Texas and to the City of Irving by the Texas Water Rights Commission, and WHEREAS, the North Texas Municipal Water District of Texas and the City of Irving have previously agreed to purchase the above space, and WHEREAS, the elimination of water quality control as a project purpose would operate to increase the costs allocated to the purpose of municipal and industrial water supply, both as to total cost and cost per unit of storage space, and WHEREAS, the Board had previously expressed its intention that as a result of the Board's financial involvement in the project, the unit cost to be paid by the purchasers of municipal and industrial water supply storage space in Cooper Reservoir should be based on an alloca- tion of project costs with water quality control storage in the amount of 32,100 acre-feet included as a project purpose, and WHEREAS, in accordance with the terms and conditions expressed in Contract No. DACW29-68-A-0102, the Board had obligated itself to pay the Government the additional costs allocated to municipal and indus- trial water supply in the Cooper Reservoir, inclusive of the additional joint-use annual cost for construction, the additional joint-use cost for operation and maintenance, and the additional cost for replacements and sedimentation resurveys, when incurred, resulting from modification of the Project in the interest of the Sulphur Bluff Reservoir and Naples Reservoir features of the Texas Water Plan, and resulting from the elimination of water quality control as a project purpose, and a 2 % Contract No DACW29-68-A-0101 Supplemental Agreement No 1 WHEREAS, by letter dated 22 March 1973 the Board advised the Government that construction of the Sulphur Bluff and Naples Reservoirs will not be likely in the foreseeable future, and accordingly, that certain downstream levee and channel improvements that previously would have been affected or eliminated by the implementation of the Sulphur Bluff and Naples Reservoirs should therefore be reinstated into the formulation of project plans, that the fiscal responsibility of the purchasers of water supply storage space should be realined to reflect differences in costs due to the elimination of the downstream reservoirs from further considerations in the development of the project, that the financial responsibility should be further realised such that the pur- chasers of municipal and Industrial water supply storage space assume the increased costs to water supply which resulted from the elimination of water quality control as a project purpose, and WHEREAS, in essence, the Board desires to withdraw as a cost- sharing cosponsor in the development of the Project with the result that all of its fiscal responsibilities in connection with the development of the Texas Water Plan and its fiscal responsibilities in connection with the elimination of water quality control as a project purpose, in so far as these obligations relate to the water supply purpose of the Project, be redistributed to the purchasers of water supply storage space in Cooper Reservoir, and WHEREAS, the remaining purchasers of water supply storage space have indicated a willingness to assume all of the fiscal responsibil- ities occasioned by the withdrawal of the Board as described above, and WHEREAS, the District has indicated its willingness to assume a proportional share of these fiscal responsibilities in accordance with the terms and conditions set forth in the basic contract as amended by this supplemental agreement, and WHEREAS, because it is the policy of Congress that the "Federal Government should participate and cooperate with states and local interests in developing such water supplies" as proclaimed in Sec 301(a) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable for the Government to incorporate into the basic contract the above realinement of fiscal responsibilities as they relate to the District NOW THEREFORE, the parties hereto do mutually agree to amend Contract No DACW29-68-A-0101 in the following manner and the basic contract is so amended to read as follows, to wit 1 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 1. Subparagraphs a, a(1), a(2), a(3), b, b(1), b(2), and b(3) of Article 5 of the basic contract are deleted and the following substituted therefor. "a In consideration of the Government's providing the aforesaid storage space of 17,750 acre-feet for initial water supply use by the District, it is agreed that the District shall pay the following sums to the Government "(1) One million six hundred and twenty-four thousand two hundred and forty-five dollars ($1,624,245), which is the estimated cost, including Interest during construction, of providing the storage space for initial water supply use in payments in the amount of sixty-four thousand one hundred and seven dollars ($64,107) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in Exhibit "g" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the and of 50 years The first payment shall be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made Payments there- after shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract "(2) Two and four hundred thirty-five thousandths percent (2 435%) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be four thousand five hundred and eighty-one dollars ($4,581) will be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to two and four hundred thirty- five thousandths percent (2 435%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and two and four hundred thirty-five thousandths percent (2 435%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District. The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting vtficer In the event the, District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense 4 Contract No DACW29-68-A-0101 Supplemental Agreement No. 1 "(3) Two and forty-nine thousandths percent (2 0492) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred. "b. In consideration of the Government's providing the aforesaid storage space of 54,000 acre-feet for future water supply use by the District, it is agreed that the District shall pay the followins sums to the Governments • "(1) Four million nine hundred and forty-one thousand one hundred and eighty-three dolalrs ($4,941,183), which is the estimated cost, including interest during construction, of providing the storage space for future water supply use in payments in the amount of one hundred and ninety-five thousand and twenty-three dollars ($195,023) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance. The aforesaid payments are more specifically set forth in Exhibit "C" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract. "(2) Seven and four hundred and seven thousandths percent (7 407%) of the annual experienced joint-use coat of ordinary operation and maintenance of the Project. The first payment estimated to be thirteen thousand nine hundred and thirty-seven dollars ($13,937) will be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to seven and four hundred and seven thousandths percent (7 407%) of the actual experienced joint-use cost of ordinary operation and maintenance of the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and seven and four hundred and seven thousandths percent (7 407%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer - 5 Conttuct ho DACW29-68-A-0101 Supplemental Agreement No 1 In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense. "(3) Six and two hundred thirty-five thousandths percent (6 235%) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred." 2. Exhibits A, 8, and C of the basic contract are replaced by Exhibits A, B. and C, attached hereto bearing the Contract No. DACW29-68-A-0101, Supplemental Agreement No. 1 3. This supplemental agreement shall be subject to the written approval of the Secretary of the Army, and shall not be binding until so approved IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No 1 as of the day and year first above written APPROVED e e! 2" , ? 0 0, -4 Z Secretary o th Army X61 A.va at, Lioiii or nic Army DATE (Lail P 3res) I I I el U I THE UNITED STATES OF AMERICA Q r By, ~'✓~ti (Co cting Officer) EARLY J RUSH III Colonel, CE SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS tr (Prgsident) (Post Office ad ream) ATTEST Secretary, Sulphur River Municipal Water District of Texas APPROVED AS TO FORM Attorney, Sulphur River Municipal Water District .of Texas Contract No. DACW29-68-A-0101 Supplemental Agreement No 1 Le7l(T1L, t'f)i ? hit lrtify that I am the Secretary of the SULPHUR RIVER MUNICIPAL WATER ISTRICT F TEXAS herein, a body politic and corporate, that 12 ~ •.e4j who signed this contract on behalf of the D e let was then PRESIDENT of said SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, that said contract was duly signed for and on behalf of the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS by authority of its governing body and is within the scope of its legal powers. IN WITNESS WHEREOF, I have hereunto affixed my hand and the peal of said SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS this -`fday of 2tL4n, 197 c / iI may' Z Secretary, u phur River Munic pal Water District of Texas CORFORAT.. SFAL Contract No DACW29-68-A-0101 Supplemental Agreement No 1 EXHIBIT A Contract No DACW29-68-A-0101 Supplemental Agreement No 1 EXHIBIT A I - Reservoir Storages Water supply storage- Municipal water supply Initial use Sulphur River Municipal Water District Future use Sulphur River Municipal Water District Other M&I water supply users Percent of M&I water supply space Elevation (ft ms l.) 6 502 19,780 73 718 Total water supply storage 100 000 415 5-440 0 Flood control storage 440 0-446 2 Reservoir storage (1) Storage remaining after 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for initial use of Sulphur River Municipal Water District M&I water supply for future use of Sulphur River Municipal Water District M&I water supply for use of others Subtotal - M&I water supply Flood Control (non-reimbursable) Recreation (non-reimbursable) Total A-1 Usable storage (ac-f t) 17,750 54,000 201,250 273,000 131.400 404,400 $ 1,525,027 4,639,347 17.290.364 $23,454,738 27,602,183 12.653.079 $63,710,000 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 III - Initial M&I water supply use 6.5022 of cost allocated to M&I water supply (0.06502 x $23,454,738) Interest during construction (3.253% x h of 4-year period) Total Future M&I water supply use 19.780% of cost allocated to M&I water supply (0.19780 x $23,454,738) Interest during construction (3 253% x k of 4-year period) Total Wa $1,525,027 99,218 $1,624,245 $4,639,347 301,836 $4,941,183 IV - Allocation of Estimated Operation, Maintenance, and Maior Rep lacement Cost SRMWD SRMWD MfiI M6I Other Initial Future M&I Water Water water Flood Supply Supply supply Control Rec Total $lyr $lyr $lyr $lyr $/Yr $/yr Oper 6 Maint Specific cost 0 0 0 81,939 94,893 176,832 Joint-use cost 4,581 13,937 51,946 73,229 44,475 188,168 Total 4,581 13,937 51,946 155,168 139,368 365,000 Major replacements Specific cost 0 0 0 0 55,819 55,819 Joint-use cost 65 198 740 1,702 476 3,181 Total 65 198 740 1,702 56,295 59,000 A-2 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 V - Initial M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) $ 64,107 Joint-use operation and maintenance costs equivalent to 2 4352 of the actual joint use operation and maintenance costs, computed as follows 37.447562 - percent of joint-use 06M cost allocated to M&I water supply 6.5022 - percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (37 447562 x 06502 - 2 4352 of the actual joint-use 03M costs Estimated annual cost ( 02435 x $188,168) - $ 4,581 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 2 D49% of the actual joint-use major capital replacements and sedimentation resurvey costs, computed as follows 31 51961 - percent joint-use major capital replace- ment and sedimentation resurvey costs allocated to M&I water supply 6 5022 - percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (31 519612 x 06502) ■ 2 049 of the actual joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 02049 x $3,181) $ 65 Total annual cost for initial M&I water supply $ 68,753 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN D - Annual payment D - ((1+i)n-l) R R - Amount to be repaid $1,624,245 1 - Interest rate - 0 03253 03253 (1+ 03253)49 a ' Number of payments - 50 D (1+ 032531 -1 x $1,624,245 - 0 0394669 x $1,624,245 D - $64,107 A-3 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 Future M&I water supply use Interest and amortization of cost of M&I water supply features (has computation below) $195,023 Joint-use operation and maintenance costs equivalent to 7.407% of the actual joint-use operation and maintenance costs, computed as follows 37.44756% - percent of joint-use 06M cost allocated to M&I water supply 19.780% - percent of M&I water supply space to be used by the Sulphur River Municipal Water District (future) (37.447562 x 19780) - 7 4072 of the actual joint-use O&H costs Estimated annual cost ( 07407 x $188,168) $ 13,937 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 6 235% of the actual joint-use major capital replacements and sedimentation resurvey costs computed as follows 31.51961% - percent joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 19 780% - percent of M6I water supply space to be used by the Sulphur River Municipal Water District (future) (31 51961% x .19780) - 6 235 of the actual joint-use major capital replacements and sedimenta- tion resurvey costs Estimated annual cost ( 06235 x $3,181) 198 Total annual cost for future M&I water supply $209,158 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN li(1+io-1) D ■ Annual payment D • ((1+i)n-1) R R ■ Amount to be repaid - $4,941,183 1 - Interest rate - 0 03253 n - Number of payments - 50 D - 03253 (1+ 0325309 x $4,941,183 - $4,941,183 x 0394689 (1+ 03253) -1 D - $195,023 A-4 Contract No DACW29-68-A-0101 Supplemental Agreement No. 1 EXHIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT Cont . DAC1129-68-A-0101 Suppl. ntal Agreement No. 1 gl1T111. 611., I 604.'4:,.11() EXHIBIT B V1 h41`r K UP pI) Yelp V I., 1,11 IVthoEyl xAl►s rt1.6I:g1 O.OJdbJ 1144UAL MOM AMNL1LA1144 UALANiL nAYD16NT 01. NUMAr.N MAYMt.4f IN IEaLbf ALLUL LJ41 ALLUt, LUo1 l 64107.27 0. 64107.1/ IbbulJ1.IJ Y, 641111.97 b0/b1.2d IJJbb.YY 1#46761.7() 3 64101.0 5011b.K1 IJIYU.4h IbJ2Y9Iodd 4 64107.27 4966U.dI 14dJ9.U7 IbId/bd.dd b 64107.27 4V4Ub.01 141U2.2b IbU4U4).Yb 6 6410/eLt 4dld6.lb IbldU.b3 I46ddb9.4d 1 64107.27 4K4Jd.9d Ib674.3b I41JIYb.Ud K 64101.97 47923.04 16164.14 I4b7UI0.d4 9 64107927 4/JY6.56 1611001 144010U.14 10 64107927 46Ubd.96 (/254.31 1423045.83 11 6410/.97 46991.66 17dIb.b9 I4UbdJU.dJ 12 6411)7.27 45712.14 ldJ9b.IJ 13d66Jb.11 13 64101.27 4b11J.7b Id993.bJ IJb7d4I.its 14 6410/.21 4449b.K) 19611.39 IJ4ddJU.1) IS 11411)/.C/ 4JdDl.)J dU.J41.J4 lJa711d1O.44 16 641UI..'7 4JIY9.Gd 2U9ud.u6 1JU7U7d.7d It 641111.2/ 4GbIY.0" dIbdd.IY Iddb4d4.b9 lb n4101.3I 41b16941 dddYU.4b IdbJ194.14 19 4111/.,'7 410)1.11 dJUIb0DI Id4V1ld.Sd 20 64107.,:7 4UJ4J.U1 dJ164.d6 Id16414 Jl 41 64107927 JYbu9.96 d4bJ/.JI llYldll.UU Y,' 641U1.d1 JK/11.16 GbJJb.bI I100b41.4d Y.J b4lh/.dl 371J41.b0 d61b9.b$ 1104UJdl.dl d4 64101.4/ JIUV b.b.1 G/UlU.6b l1IJJ11.16 db 64107. 7 J6d17.)b L7dd9.J1 IUUb4dl.d4 ,1b 64101., I JbJ111.7d ddIV 6.bb IUbb6db.JU Y.l 64101.i/ JAJ/J.97 dYIJJ.JU lud6Ybd.UU Yi 64107.21 JJ41)6.7D JI)MO.b. 9Y6dbl.46 I) 641U7.01 J240J.Uh J169Y.41 Y64Jbe.d7 3o 641 U1..0 1 J1Jlb.d1) Jd1JU.J9 9JIddl.dd J1 64147.27 3oJi2.17 JJ/9b.ll d9dudo./l 34 64107.21 4Y/.Id.dI J4d94.46 66J1 J2.J1 JJ 641U/.,'I 4KU71.69 JbUd9,bd ddIIUC.7J 34 64107.21 d690b.6b 314U1.64 /dVYUI.ld 3b 64111/.dl ,'J69S.4A Jd411.7Y 7bl4d9.JJ J6 64107.`17 d444b.9b JybbI.J2 11lddd.UI $1 6411)1.,'7 e31J5./b 4u9bl.bl 6/Ud/b.w JK 6410/.'/ dI11dJ bI 4d.dJ hh bdoJ9d.d4 J9 6410/.4/ J0 44el.IJ 4Jbb9.lb bK4YJJ.lU 4U 1141010,'1 1YU&1.1.) 4bJ/).Jd bJyKb4.Jd 41 n4101.27 17b61.4b 46()4().01 4YJJUK.bl 42 64101.11 11)(347.JJ 4iUb9.95 44Dd4d.bb 43 6410/.d/ I44dJ.)4 4YbtJ.J4 J9bbdb.", 44 *411)/.1/ lddb9.69 bldJl.Dd J44JK1.64 4%) 6411)7.,'/ 11dud 9J Dd9U4.J4 dY14dJ 3U 41, 6411)1.dI 94d1.9b D40jdD.Jd dJbKD1.yes 47 64101.47 7104 )Y b64Ud.dd IbU4bb 7U AH 64101.,'7 b14MOdd b8dJ7.UJ ldddld.bb d) 641U7.1/~ J97b.// 6UIJI.bJ odud/.Ib 50 h41116. 4b !1)19 10 h,'uK7. I b U. Contract No DACW29-68-A-0101 Supplemental Agreement No. 1 EXHIBIT C AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT Con lc. No DAC1129-68-A-0101 P191. t,u,I 4~ 4)Oil 1lJ.uu Supt_cmental Agreement No 1 111.I1`,ttt, I r 1014T 1 ► 4Ia b9 EXHIBIT C 14frntiT KAfF) Pt)tCL4i U.UJdbJ AVOtAL ANOOI Are l.16mi It M bALAMLr. PAYo,t91 tip ALLJ%, M)1,MyF n MAYMeV 1 1111 LntJ f ALLJ(, Wb t LJa 1 1 I9bOJJ.J9 O. IYbOd3.J9 4146lbY.bJ It 19bO2J.J9 3h4JYd.b1 4U6JU.H1 4/Ubbdd.bl J IYbudJ.J9 lbJUlu.bb 41Vital .bp 4u6Jb7o-db 4 19bOdJ-J9 lbl706*lJ 4JJl/edb 46dUC5Y-UU b 195043.JH IbOd97.U3 447d6. Jo 4blbbJd.63 A I9bUCJ.J') I th 4d9UK 461d1.J1 4bd9Jbl.Jl 1 1950d10J9 I47J3Y.do 47h83-bY 44dl6b/.7b li 1)bUdJ.J9 14bllfb.6b 492J404 44JC4JJ.UU Y 19bU1J.JY 14410.04 bUdJ6-J4 4JlfIbY6.6Y 10 19bo2j, J9 I4dti3.34 bd49U.Ub 4JCYIU6.6J 11 19bOJJ-39 I40Hdb.)I4 b4197.bb 4d7490Y.Ub ld IYbudJ.J9 IJ9Ubd.71 bb96U-bU 4did94d 44 Ii IVbOd3.39 IJ744d.39 b7/hu.Yy 4161161.44 14 19!AUJ3.J) IJb36d-III b966U.61 41UIbub Hl IS 19b111J-J) IJJ4dJ. UJ 616UI.J1 4UJ))U6.44 io 19bOJ.JeJ9 IJl41H914 hJ6Ub.db J9I6JUU.IY I/ 19bUd 10 JY Id9J4Y-U4 Ebb 14. J4 J91 ubdb. 64 let 19bJGJ.J9 IW7dld.66 6101U./J Jb4ddIb.IJ 19 19bJGJ0 J) I TbU1)f6- Its IUU1 6. b1 J / Id 19d. bu JO IYbudJ-JY IYd/d9.1J Idd94.):b J70UDU4.db YI I`/bOCJ.3Y IdUJI194U 7464b.YK J6dbbbb.db via IYbU2J-J) I11)4Y.11 1to 14.I'd Jb4bIU4.Uo di I9bud3-J9 116441.96 79.) 11 44 J4b9dUd.6J J4 I))1123.J9 11CNbJ.1it bdl/U-[J Jib Wild 41 Ob 1Ybud).J9 IIII Ido.Ib h4r,4J.JJ_ JJUdloY 19 Y.6 19bUJJ.39 1014JU.41 b1601.17 JJ146bb UU J7 l9bUd 1.J9 IU4J111.405 )U4bd Yu Jl. tlliJ u9 r)1 i9b04d3.J) It)lbdB.UD 9JJ9b-J4 3UJU7JI,7b 19budJ9IY Y1 b+S9.9J 964JJ.4Y dVJ4JU4.dt) J) 1 ).1,)JJ.J) 9646..Yd YPOO 47 dtSJ41JJ. /d Jl I9b01!).J9 9edIJ-Kit IuddU9.Du d/JI)d4..-b JJ_ ISO WWI I J9 HN+169. So IUUl bJ.1)Y dbd617U. 41 JJ I961)dJ J) 4b416.J1 IuY60i.ud dblbloJ J4 34 19bud I.J9 1,1 +it). I) IIJI /J J) d4UdVYU.76 J7 196.)S3 J! ),t IUy.dy 116364.11) ddK61Jb bh 111 1).)1141 Ji I4J6b.OJ I1!Ubb6 Jb dlub4ol _K Jl Idb11'J.J) 71)4eiJ.II Id461,J.db cUAIU9U1 UU Jt, IIJII/J- i7 o6Jh1-b1 Id„4Jd Ito 1914ddob Ii JY 1)511JJ.J) 6.+.)06.01 1JMI I - Ju 171V46U.isi 411 1)bO,;J.J9 b/K<J.b4 IJIIJ/.Lib I64dJId.YJ 41 19bJd1-J'! bJ4d4.4&1 1AIbYH.)7 IbuuII4.ub 4, 1 )bur'.)-J9 AdU111.J_J 14bdub. to IJb4611b.b9 4J 1961)LJ.J9 441161.11 IbUvol.J.I 1duJ`-1.61 44 1)5udJ-JY JYIbl.41 1JbHI10Yd IU41_ by 4) 1)budJ.Jy )411)1).49 IhUY4d.bu Hb6,JJ 19 44 1)b')d)-J9 Jbo4b.4J Ib611I.Yo Idubbb di 41 IvbUJJ.J9 9!J4J9-bb IIIbt1J Id b4bYll bl 41 1951)1}-J) I/bbd-1)4 II/Iub.J4 J7IdU6.16 40 1 ).)UdJ.J 1 I UY40.4b I,4d)Jh bJ IdUd I /.6J b1) I Ib1)/1 .11, 11 14.. 1 i I n1,), l l I+J u ASSURANCE OF CG MLIANCE WITF THE DEPARMilT OF DEFENSE DIRECTIVE UU'DCR TITLE VI OF THE CIVIL RIGHTS ACT OP 1964 SULPHUR RIVER MMICIPAL HATER DISTRICT (hereinafter called the "District") HCRZ?f AGREES THAT it will comply with title VI of the Civil Richts Act of 1964 (P.L 88-352) and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 300, issued as Department of Defense Directive 5500.11, December 28, 1964) issued pursuant to that title, to the end that, in accordance with • title VI of that Act and the Directive, no person in the United States shall, on the ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity in connection with the collection, distribution, and use of water, for municipal and industrial purposes, from storage space in the authorized Cooper Reservoir, which reservoir is to be constructed by the U S Army of Engineers and in connection with which the District will receCorps financial assistance under the Hater Supply Act of 1958, 43 United States Coue 390b, and HEREBY GIVES ASSURANCE THAT it will immediately taKe ary waasures necessary to effectuate this agreement If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extendea to the District by the Department of the Army, assurance shad obligate the District, or in the case of any transfer of such property, any transferee, forthe period during which the real property or structure is used for anotner purpose involving the provision of similar services or benefits If any personal property is so proviaed, this assurance shall obligate the District for the period during which it retains ownership or possession of the property In all other cases, this assurance shall obligate the District for the period during which the Federal financial assistance is extended to it by the Departmen. of the Army THIS ASSURANCE is given in consiaeration of and for the purpose of " obtaiziag any and all Federal grants, loans, contracts, property, disco4nta or other Feaeral financial assistance extended after the date hereon to the District by the Department, incluaing installment payments after such data on account of arrangements for Federal financial assistance which were ?proved before suc~ date The District recognizes and agrees that such Feaeral financial assistance will be extended in reliance on the representations and agreements made in this assurance, and that the United States shall have the right to seek judicanl enforcement of thin nasurance. This assurance is binding on t1ty District, its successors, trapisferees, and assignees, and the j person or persons, whose signatures appear below are authorized to sign this assurance on behalf of the District. Dated 12 April 1967 SULPHUR RIVER IWICIPAL WATER DISTRICT (District) (president, Chairman of Boa d, or comparable authorized official) 1910 Monroe St, Coamerce, Texas y District's sailing address r'~.. j r ' 1 2 + CERTIFICATE OF ADJUDICATION CERTIFICATE OF ADJUDICATION 03-4797 OWNER Sulphur River Municipal Water District C/o Donald W Abernathy, Sec-Treasure P 0 Box 310 Cooper, Texas 75432 COUNTIES Delta and Hopkins WATFRCOURSh South Sulphur River, tributary of the Sulphur River PRIOFITY DATE November 19, 1965 BASIN Sulphur River WHEREAS, by final decree of the 202nd Judicial District Court of Bowie County, in Cause No 86-C1702-202 In Re The Adjudication of Water Rights in the Sulphur River Basin dated December 17, 1986 a right was recognized under Permit 2336 authorizing the Sulphur River Municipal Water District to appro- priate waters of the State of Texas as set forth below, WHEREAS, by Public Law 780, 83rd Congress, 2d Session, 1954 as amended, Cooper Dam and Reservoir on the South Sulphur River in the Sulphur River Basin, a multi-purpose federal project located in Delta and Hopkins Counties, Teas, was duly authorized, 14HLREAS, a contract has been negotinred between the United States of America and local political subdivisions whereby water supply storage space in Cooper Reservoir has been allocated between elevation 440 0 and 415 5 feet above mein sea level as follows Percent of Water Usable Storage Supply Space (acre-feet) Sulphur River Municipal Water District a 26 282 71,750 North Texas Municipal Water District City of Irving, Texas TOTAL 36 859 100,625 36 859 100,625 100 00 273,000 Initially in the silt storage apace below elevation 415 5 feet msl there will be 37 000 acre-feet, the water in which may be, with the approval of the federal contracting officer, diverted proratably by the political subdi- visions lbove named in the percentages set forth, Certificate of Adjudication 03-4797 NOW, TNEREFORL, this certificate of adjudication to appropriate waters of the State of Texas in the Sulphur River Basin is issued to the Sulphur Piver Municipal Water District, subject to the following terms and con- ditions 1 1MPOUNDMENT Owner is authorized to impound in Cooper Reservoir between ele- vation 415 5 feet and 440 0 feet above mean sea level not to exceed 71,750 acre-feet of water and below elevation 415 5 feet msl not to exceed 9720 acre-feet, making a total of 81,470 acre-feet of water Station 19+00 on the centerline of the dam will be located at a point which bears S 69°30'W, 3640 feet from the northeast corner of the W W Langham Survey, Abstract 1218, Hopkins County, Texas 2 USE Owner is authorized to divert and use from Cooper Reservoir not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the Sulphur River Municipal Water District 3 DIVERSION Owner shall, prior to construction or installation of any diversion facilities, submit to the Texas Water commission for its approval data concerning the point and method for diversion of water and the maximum rate of diversion 4 PRIORITY 1he time priority of owner's right is November 19, 1965 5 SPLCIAL CONDITIONS A Water diverted but not consumed shall be returned to the Sulphur River Basin at the disposal plants of the water customers of the District B Construction or installation of all works herein authorized or required shall commence and be completed within the time limits as established by the Commission C Owner accepts this certificate of adjudication with full knowledge and consent that the State of Texas retains the right to regulate, by permit from the Commission, intro- ductions into and withdrawals from Cooper Reservoir of such volumes of water downstream or other sources as may be devel- oped under the Texas Water Plan 2 Certificste of Adjudication 03-4797 1he locations of pertinent features related to this certificate are shown on Pate 2 of the Sulphur River Basin Certificates of Adjudication Maps, copies of which are located in the office of the Texas Water Commission, Austin, Texas This certificate of adjudication is issued subject to all terms, con- ditions and provisions in the final decree of the 202nd Judicial District Court of Bowie County, Texas, in Cause No 86-C1702-202 In Re The Ad9861and tian of Water Rights in the Sulphur River Basin dated December 17, supersedes all rights of the owner asserted in that cause This certificate of adjudication is issued subject to senior and superi- or water rights in the Sulphur River Basin This certificate of adjudication is issued subject to the obligations of the State of Texas pursuant to the terms of the Red River Compact This certificate of adjudication is issued subject to the Rules of the Texas Water Commission and its continuing right of supervision of State water resources consistent with the public policy of the State as set forth in the Texas Water Code TEXAS WATER COMMISSION s Paul Hopkins, hairman DATE ISSUED MAR 3 1 1981 ATTEST /s/ Ann Hefner Maly Ann Hefner, Chief Clerk 3 PERMIT TO APPROPRIATE S7 ATE MATER APPLICATION NO 2414 PERNUT NO 2336 TI PE Regular Permittee Sulphur River Niumcipal Address 1910 fonroe Stieet Water District Commerce Texas Received September 22 19co Filed Novembei 10 19no Granted January 4 19o6 Counties Delta and Hopkins u atercourse South Sulphur Rive- tribu- Watershed Sulpha River tary of Sulphur Riv er VHEREAS the Texas Rater Rights Commission has caused due notice publi- cation and hearing of the abote application to be made and at the conclusion of the hearing granted the application with the condition that permit would issue upon receipt b) the Commission of a negotiated contract between the United States of America and the applicant for storage rights in Cooper Reservoir and WHEREAS by Public Law 780 83rd Congress 2d Session 1954 as amended Cooper Dam and Reservoir on the South Sulphur River in the Sulphur River Basin a multi purpose federal project located in Delta and Hopkins Counties Texas was duly autho^ized and _ - WHEREAS a contract has been negotiated betu een the United States of America and local political subdivisions vthereb) water supply storage space in Coope- Reser voir has been allocated between elevation 440 0 and 415 a feet above mean sea level se follows " Percent of V ater Usable Storage Supply Space (acre feet) Sulphur River Alumcipal Rater District 26 282 71 750 No-th Texas \lumcipal liate- District 36 8o9 100 625 City c Irving 'Texas 36 859 100 625 TOTAL 100 00 273 000 lmtialn in the silt storage space below elevation 415 5 feet msl the-e t ill be 37 000 acre feet the water in v hich may be with the approval o the federal con tractmg off car d.verted pro ratably by the polit cal subdivisions above named in the percentages set forth IvOV THEREFORE this permit to impound and use -he public watc^s of the State o` Teas is hereby issued to Sulphur River Municipal l ater Dist- ct st.blect to the folio ing terms and conditions I' POLN"DNfEN'T Permittee is autho^ized to impound in Coomc^ Feservo-r between elevations +15 5 and 440 0 mss not to exceed 71 700 acre feet of water and below elevation 410 5' msl no to exceed 9720 acre feet making a total of 81 470 acre feet Station 10.00 on the centerline of the dam is located at a point which Dears a 69 30' V 3640 feet from the northeasterly cc-ne^ of the W V Langham Original Survey Abstract No 1218 Hopl_ns Count) Texas I o 2 2 USE Permittec is author seed to divert and use from Coopcr RescrNoi- notto exceed 26 960 acre feet of water per annum fo^ riunicipal pt poses and 11 560 acre-feet of mater per annum for industrial purposes witnm the service area of Sulphur Riter Municipal Water District and uncon sumed water will be returned to the Sulphur River Basin at the disposal plants of the water customers o the District 3 DIVERSION Permittee shall prior to the construction or installation of any diversion facilities submit to the Commission for its approval data concerning the point and me.nod for diversion of mater and the maximum rate of diversion 4 TIME LI.MITATIMS Construction or mstallatton of all mortis here n authorized or required shall be commenced within lino (2) years and com- pleted mithin six (6) years unless extended by the Comm ssion Permittee accepts this permit with full knowledge and consent that the State of Teas retains the right to regulate by permit from the Commission introductions into and withdrawals from Cooper Reservoir of such volumes of mater from domn- stream or other sources as may be developed under the Texas 1l star Plan Permittee agrees to be bound by the terms conditions and provisions contained herein and such agreement is a condi ion precedent to the granting of this permit All other matters requested in the application which are not specifically granted by this permit are denied This permit is issued subject to the rules and regulations of the Texas Vate~ Rights Commission and to its right of continual supervision Date Issued An-i12, 1968 _ (SEAL) Attest /sf Audrey Strandtman Audrey Strandtman Secretary /a/ Joe D Carter Joe D Carter Chairman /s/ O F Dent O F Dent Commissioner /s/ W E Be-ger W E Berger Commissions- c 2 EXHIBIT G, H, I TO COMMERCE UTRWD CONTRACT (This document is Exhibit G, H and I for the reason that only one contract was signed between SRM" and its three member cities THE STATE OF TEXAS § § RAW WATER § SUPPLY CONTRACT COUNTY OF DELTA § This raw water supply contract (the "Agreement") is made and entered into between the Sulphur River Municipal Water District ("District"), a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Article XVI, Section 59, of the Texas Constitution and Article 8280-165, as amended, Vernon's Texas Civil Statutes, and the City of Commerce ("Commerce"), the City of Sulphur Springs ("Sulphur Springs"), and the City of Cooper ("Cooper"), bodies politic and corporate of the State of Texas, incorporated and operating under provisions of the Texas Constitution RECITALS 1 The District is authorized by its enabling legislation (Article 8280-165, as amended, Vernon's Texas Civil Statutes) to acquire any and all rights in and to water conservation storage and water storage capacity in Cooper Reservoir (the "Project"), and the right to take water from the Project, pursuant to any contract which the District may make with the United States of America, acting through the United States Army Corps of Engineers (the "Government") in reference to such rights 2 The District, relying on the commitments of the Cities described below in Recital No 3 and acting on behalf of each of the Cities, entered into a contract with the Government on March 29, 1968 for the purchase of 26 282% of the water supply storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level, or 71,750 acre-feet of storage space (17,750 acre-feet for immediate use and 54,000 acre-feet for future use) On July 15, 1976, the District entered into a supplemental contract with the Government, revising and amending the responsi- bilities and rights of the District and the Government under the original contract The provisions of the above referenced contract and the supplemental contract between the District and the Government (collectively, the "Federal Contract") are adopted by reference herein for all purposes as if copied verbatim herein. 3 Each of the Cities adopted resolutions in 1965 requesting and obligating themselves to the District for the respective acre- feet of water storage in the Project set forth below a Commerce - 30,000 acre-feet (8,000 acre-feet for immediate use and 22,000 acre-feet for future use), b Cooper - 8,000 acre-feet (2,000 acre-feet for immediate use and 6,000 acre-feet for future use), and c Sulphur Springs - 33,750 acre-feet (7,750 acre-feet for immediate use and 26,000 acre-feet for future use) 4 The District was granted a water use appropriation by the Texas Water Rights Commission on January 4, 1966, Permit No 2336, for 26 282% of the water supply storage space in the Project -2- between elevations 440 0 and 415 5 feet above mean sea level, with usable storage of 71,750 acre-feet of water, and the right to divert and use not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the District 5. Permit No 2336 was subsequently adjudicated by the Texas Water commission, the successor agency of the Texas Water Rights Commission, pursuant to the provisions of the Texas Water Rights Adjudication Act, codified in Texas Water Code § 11 301, et seq , and the Texas Water Commission subsequently issued Certificate of Adjudication No. 03-4797 to the District on March 31, 1987, authorizing the District the right to impound 71,750 acre-feet of water in the Project between elevations 440 0 and 415 5 feet above mean sea level, and the right to divert and use not to exceed 26,960 acre-feet of water per annum for municipal purposes and 11,560 acre-feet of water per annum for industrial purposes within the service area of the District 6 The District is authorized in its enabling legislation to enter into contracts with cities and others for supplying water from the Project. 7 Commerce, Sulphur Springs, and Cooper want to purchase, and the District is willing to sell, raw water from the District's share of the water conservation storage space in the Project, subject to the terms and conditions of this Agreement and all -3- applicable rules and regulations of the District and state and federal agencies AGREEMPM For and in consideration of the foregoing, and the mutual promises, covenants, obligations, and benefits described in this Agreement, the District and Commerce, Sulphur Springs, and Cooper agree as follows Section 1 Definitions. The following terms and expressions as used in this Agreement shall have the following meanings, unless the context clearly shows otherwise A "Adjusted Annual Payment" means the Annual Payment, as adjusted during or after each Annual Payment Period, as provided for in this Agreement B "Agreement" means this agreement C "Annual Payment" means the amount of money to be paid to the District by each of the Cities during each Annual Payment Period as its proportionate share of the Annual Requirement D "Annual Payment Period" means the period beginning on October 1 of each calendar year and ending on the last day of September of the next calendar year; provided, that the first Annual Payment Period under this Agreement shall be the period of October 1, 1990 through September 30, 1991 E "Annual Requirement" means the total amount of money required for the District to pay all Federal Contract Payments and -4- all District Operation and Maintenance Expenses during any one-year period beginning on October 1 of each calendar year and ending on the last day of September of the next calendar year, provided, that the first Annual Payment Period under this Agreement shall be the period of October 1, 1990 through September 30, 1991 F. "Cities" means Commerce, Sulphur Springs, and Cooper, cumulatively. G "City" means Commerce, Sulphur Springs, or Cooper, individually. H "Commerce" means the City of Commerce I "Cooper" means the City of Cooper J. "Date of Deliberate Impoundment" means the date upon which the Project becomes operational for storage of water for any purpose as authorized and provided in the Federal Contract K "District" means the Sulphur River Municipal Water District L "Diversion Facilities" means the water supply facilities owned or operated by, on behalf of, or with the consent and approval of a City, used or capable of use in furnishing water from the Project, including pumps, transmission lines, meters and metering equipment, and associated buildings and appurtenances M "Federal Contract" means the contract, as amended, between the District and the Government as referenced in Recital No 2 of this Agreement -5- N "Federal Contract Payments" means the amounts required to be paid by the District to the Government for the District's rights in the water conservation storage space in the Project under the Federal Contract and the amounts required to be paid by the District to the Government for any other financial obligations of the District under the Federal Contract 0 "Government" means the United States of America acting by and through the United States Army Corps of Engineers or its successor agencies P "Operation and Maintenance Expenses" means all costs and expenses of operating, maintaining and administering the District's interest in the water conservation storage space in the Project, including (for greater certainty but without limiting the generali- ty of the foregoing) the costs of supervision, engineering, accounting, auditing, legal services, supplies, other services, administration of the District, and equipment, as necessary, to comply with the Federal Contract and with other regulatory requirements necessary to protect and preserve the District for the sole purpose of protecting the District's interest in the water conservation storage space in the Project and any sales or use taxes, or taxes, assessments, or charges of any similar nature incurred by the District from the gathering, impounding, taking, sale, use, or consumption of the water received by the Cities from the Project Q. "Project" means Cooper Reservoir -6- R. "Reserve Fund" means the Reserve Fund authorized in Section 11 C of this Agreement S. "Sulphur Springs" means the City of Sulphur Springs Section 2. Term. This Agreement shall be effective on the date it is signed by the District's authorized representative as shown on the signature page of this Agreement and shall continue in full force and effect for the useful life of the Project Section 3 Volume. Subject to the limitations and conditions included in this Agreement, as well as the limitations and conditions described in the Federal Contract, the District agrees to sell raw water from the District's share of the water conserva- tion storage space in the Project to the Cities in the following amounts (a) to Commerce, 11,100 acre-feet per annum for municipal purposes and 4,760 acre-feet per annum for industrial purposes; (b) to Sulphur Springs, 12,860 acre-feet per annum for municipal purposes and 5,514 acre-feet per annum for industrial purposes, (c) to Cooper, 3,000 acre-feet per annum for municipal purposes and 1,286 acre-feet per annum for industrial purposes In addition to the amounts of water indicated in this Section, the District agrees that if additional water should be determined to be available for appropriation from the District's share of the -7- sedimentation pool of the Project for use by the Cities, then such additional water may be purchased by the Cities from the District upon the same percentage basis referenced in this Section, subsequent to the District securing any required approval from the Government and any other regulatory body, including the Texas Water Commission Further, the District agrees that to the extent its share of water conservation storage space in the Project is made available for storage of additional waters from sources other than inflows into the Project by reason of use of water from the Project by one of the Cities, then such additional water conservation storage capacity made available by reason of such use by a City shall be made available to such City for storage of waters in addition to the inflows from the Sulphur River Basin into the Project, provided, however, the utilization by any such City of such additional water conservation storage capacity made available in the Project shall not impair the ability of the District to meet its contractual obligations under this Agreement to the other cities. section 4 Diversion The Cities, individually or jointly, may construct or cause to be constructed Diversion Facilities to divert raw water sold from the Project under this Agreement The Diversion Facilities shall be located, constructed and operated in accordance with plans and specifications approved by the District -8- and, as necessary, the Government, and vicinity maps referencing the location of such facilities from a survey corner shall be prepared prior to construction thereof. Such Diversion Facilities shall be owned, operated and maintained by, on behalf of or with the consent and approval of the City or cities who construct, or cause to be constructed, such Diversion Facilities. The District shall not be obligated in any way for payment of construction costs or operation and maintenance expenses of the Diversion Facilities Section 5 Place of Use Unless authorized by the Texas Water Commission, raw water purchased by the Cities from the District under this Agreement shall be used only within the sulphur River Basin If a City desires to resale water diverted under this Agreement for use outside of the Sulphur River Basin, the City shall petition the District, requesting such authority, and the District shall authorize such transbasin diversion after securing Texas Water Commission approval and any other necessary approval of such transbasin diversion Notwithstanding anything herein to the contrary, however, the District shall, within thirty (30) days after receiving any request for approval of a transbasin diversion, cause an application to be filed with the Texas Water Commission requesting approval of any necessary amendments to the District's permit for water storage and diversion rights in the Project -9- Section 6 Dosses The Cities agree to bear the transporta- tion and, if applicable, the evapotranspiration losses associated with or incident to the diversion and transportation of stored water from the Project to the place of use of the water Section 7 4uality. The water which the District offers to sell the Cities is non-potable, raw, untreated water from the Project The Cities have satisfied themselves that such water is suitable for their needs The District expressly disclaims any warranty as to the quality of the raw water or suitability of the raw water for its intended purpose The raw water sold by the Districr is available for purchase without warranty of merchant- ability or fitness The Cities agree that any variation in the quality or characteristics of the raw water offered for sale as provided by this Agreement shall not entitle the Cities to avoid or limit their obligation to make payments as provided for in this Agreement There are no warranties which extend beyond the description contained in this Agreement The District and the Cities shall cooperate to reasonably protect the Project from contamination Section 8 Measurement. The Cities, individually or jointly, shall acquire or construct, or cause to be acquired or constructed, and shall operate, or cause to be operated, measurement devices that will accurately measure and record the amount of water taken -10- from the Project to comply with the District's obligations under the Federal Contract When a City and the District agree on the construction of Diversion Facilities pursuant to the provisions of Section 4 of this Agreement, the location, size, design and accuracy required of measuring or metering devices shall be determined, however, the Cities agree that the District shall not be required to pay for the design, installation or construction of such metering facilities, but such facilities shall be designed, installed or constructed pursuant to the approval of the District, and each of the Cities shall be responsible for payment thereof The District is specifically granted access to such measuring devices, upon reasonable notice to the City or Cities owning the devices, for the purposes of calibrating the devices or otherwise determining their accuracy If any meters are out of service or out of repair so that the amount of water diverted from the Project cannot be ascertained or computed from the reading thereof, the water delivered through the period such meters are out of service or out of repair shall be estimated and agreed upon by the District and the City or Cities, as appropriate, upon the basis of the best available data, including estimating by mathematical calculation or by estimating the quantity of waters diverted by diversions during preceding periods under similar conditions when the measurement devices were registering accurately. Should the Cities share a Diversion Facility and measuring device, the measure of water taken shall be calculated from such -11- shared device after taking into account the measure of water taken by the Cities with whom the Diversion Facility and device are shared. Section 9. Source and Adequacy of Suooiv. Water supplied by the District to the Cities under this Agreement shall be water impounded and captured in the District's share of water conserva- tion storage space in the Project, and from no other source The District will use its best efforts to remain in a position to furnish raw water from the District's share of water conservation storage space in the Project consistent with, and under limitations which may be imposed by, the Federal Contract The right of the District to operate and maintain its interest in the water conservation storage space in the Project in a lawful manner, and consistent with the Federal Contract, is recognized by the Cities, and regardless of other provisions contained in this Agreement, the Cities recognize that the District shall never be required to breach the Federal Contract or to act unlawfully to supply water to the Cities Section to Pledge of Revenue. Each City represents and covenants that all payments to be made by it under this Agreement shall constitute reasonable and necessary "operating expenses" of its waterworks and sewer system, as that term is defined in TEX REV CIV STAT ANN art 1113 (Vernon 1963), and that all such -12- payments shall be made from the revenues of its waterworks and sewer systems Each City represents and has determined that the water supplies to be obtained from the District's share of water conservation storage space in the Project are absolutely necessary and essential to the operation of its water system, and, accord- ingly, all payments required by this Agreement to be made by such City shall constitute reasonable and necessary operating expenses of its waterworks and sewer system, with the effect that the obligation to make such payments from revenues of such system shall have priority over any obligation to make any payments from such revenues, whether of principal, interest, or otherwise, with respect to bonds hereinafter issued by such City Each City agrees throughout the term of this Agreement to continuously operate and maintain its waterworks and sewer system, and to fix and collect such rates and charges for water and/or sewer services to be supplied by its waterworks and sewer system so as to produce revenues in an amount equal to at least (i) all payments which such City has agreed to make to the District under this Agreement and (ii) all other amounts as required by the provisions of the ordinances or resolutions authorizing revenue bonds or other obligations of such City now or hereafter outstanding Section 11 payments by Cities. For the water supply to be provided to the Cities under this Agreement, the Cities agree to -13- pay the District, at the time and in the manner provided by this Agreement, their proportional shares of the District's Annual Requirement, and each City's proportional share shall equal each City's Annual Payment as calculated under this Agreement Each City's proportional share of the District's Annual Requirement shall be determined by multiplying the District's Annual Require- ment by a fraction, the numerator of which is the amount of water conservation storage space in the Project for which the District must pay the Government on behalf of such City under the Federal Contract and the denominator of which is the total amount of water conservation storage space in the Project for which the District must pay the Government under the Federal Contract Each City shall pay its Annual Payment to the District periodically, as necessary, to enable the District to timely pay the Federal Contract Payments and the District's Operation and Maintenance Expenses The Cities' Annual Payments shall be calculated as follows. A Determination of Annual Requirement On or before the first (1st) day of June, and beginning on or before June 1, 1990, the District shall furnish each City with an estimated schedule of the Federal Contract Payments and Operation and Maintenance Expenses for the following Annual Payment Period, together with a District budget, approved by the Board of Directors of the District, with supporting budgetary or proposed budgetary data showing the basis for arriving at such schedule and budget The -14- District shall simultaneously supply the cities with a schedule of the Annual Payments to be made by the Cities for the applicable Annual Payment Period Such schedule shall require each City to pay to the District its proportional share of the Federal Contract payments thirty (30) days prior to the date by which the District must make such payments to the Government and its proportional share of the Operation and Maintenance Expenses in approximately equal quarterly installments with each quarterly installment to be paid on the first day of each quarter Each city shall have thirty (30) days after receipt of said proposed budget to file its comments thereon with the District After receipt of said comments, the District shall adopt a final budget for said period by September 30 of each year The cities shall pay their Annual Payments in accordance with the schedule At the close of the Annual Payment Period, the District shall determine the actual Operation and Maintenance Expenses for the previous Annual Payment Period, and the allocation of such to each city, and the District shall utilize this determination, in part, for the purpose of establishing the Annual Payment of each City for the upcoming Annual Payment Period The Annual Payments for any given Annual Payment Period may be re-determined at any time during the year, to the extent deemed necessary by the District If the Annual Payment is redetermined during the Annual Payment Period, the District will promptly furnish the Cities with updated schedules of payments which reflect the redetermination Each City -is- shall have thirty (30) days after receipt of any proposed budget amendments to file its comments thereon with The District After receipt of said comments, the District shall adopt a revised budget for said period providing for Adjusted Annual Payments by each City B Annual Requirement it is acknowledged and agreed that payments to be made by the Cities to the District under this Agreement will be the sole sources of revenues available to the District to provide the Annual Requirement, and that due to the possible changes in the Federal Contract Payments and Operation and Maintenance Expenses of the District, the Annual Requirement may change from time to time during the term of this Agreement It is further acknowledged and agreed that the Annual Requirement for each Annual Payment Period shall at all times be not less than an amount sufficient to pay or provide for the payment of the Federal Contract payments and all operation and Maintenance Expenses of the District C Reserve Fund Notwithstanding anything herein to the contrary, it is further provided that during the first ten (10) Annual Payment Periods, each Annual Requirement shall include an amount equal to 1/10th of the average annual payment required under the Federal Contract to be paid by the District to the Government for the District's share of water conservation storage space in the Project, to establish a Reserve Fund equal to one year's average annual payment to the Government for such payments Such -16- amounts shall be payable in approximately equal quarterly install- ments with each quarterly installment to be paid on the first day of each quarter. Interest earnings on the Reserve Fund shall be credited against each respective City's Annual Payments The Reserve Fund shall be used by the District solely to prevent a default by it under the Federal Contract and, when appropriate and sufficient, to pay the last remaining amounts due under the Federal Contract D. Dispute If a City at any time disputes the amount to be paid by it to District, the City shall nevertheless promptly make the disputed payment or payments, but if it is subsequently determined by agreement or court decision that the disputed amount paid by the City should have been less, or more, the District shall promptly revise and adjust the City's Annual Payment in a manner that the City, or the District, will recover the amount due E Operation and Maintenance Expenses Specifically Allocable to a City The parties recognize and agree that certain operation and Maintenance Expenses may be incurred by the District for the benefit of one of more, but not all, of the Cities Notwithstand- ing anything herein to the contrary, the parties agree that in such event, such expenses shall be allocated to, and paid, by, the City or Cities on whose behalf such expenses are incurred. F. Expression of Price as a Cost Per Unit of Measure if required by the rules of the Texas Water Commission, the District may perform the necessary mathematical computation to express the -17- price for water as previously provided herein as a cost per unit of measure, provided, however, such computation shall not change the cost for water as previously expressed herein, but shall solely be a re-expression of that price for regulatory purposes section 12. Ownership and Possession and Control ownership of the rights to use, and possession and control of, the water to be supplied by virtue of this Agreement shall be in the District up to its diversion by means of Diversion Facilities, at which point ownership of the rights to use, and possession and control of, the water diverted in accordance with the provisions of this Agreement shall pass to the City or its designee Section 13 Default in Payments. All amounts due and owing to the District by each of the Cities, respectively and separately, shall, if not paid when due, bear interest at the maximum lawful rate of interest on prejudgment debts in Texas, from the date when due until paid If any amount due and owing by a City to the District is placed with an attorney for collection, such City agrees to pay to the District, in addition to all other payments provided for by this Agreement, including interest, the District's collection expenses, including court costs and attorneys' fees The District shall, to the extent permitted by law, suspend delivery of water from the Project to any city which remains delinquent in any payments due hereunder for a period of sixty (60) -is- days, and the District shall not resume delivery of water while such City is so delinquent, however, a City's obligation for payment of its Annual Payment shall not be waived or suspended as a result of the suspension of water delivery which may result from delinquent payment of amounts due and owing under this Agreement. The District shall pursue all legal remedies against such City to enforce and protect the rights of the District it is understood that the foregoing provisions are for the benefit of the District's creditors, principally the Government, and for the benefit of the non-defaulting Cities In the event a default by a City shall remain uncured for a period of ninety (90) days after written notice to the defaulting City, the rights of such defaulting city under this Agreement shall be forfeited, and the remaining cities shall have the first option at securing the rights of the defaulting City under this Agreement within thirty (30) days after receiving notice from the District of the right to exercise such option, on a basis which reflects each non-defaulting City's percentage interest in the water purchased under this Agreement, without considering the defaulting City's interest If either of the non-defaulting Cities fails to fully and timely exercise its option, then the other non-defaulting City shall have an additional option to acquire the remaining portion of the rights of the defaulting city within thirty (30) days after notice from the District of its right to exercise such additional option If the non-defaulting Cities fail to exercise -19- their options to purchase the defaulting City's rights hereunder in whole or in part, within such time periods, the District shall have the right and the obligation to seek out other purchasers of the rights. However, the Cities recognize and agree that the District has no adequate source of revenue to pay the Federal Contract Payments and Operation and Maintenance Expenses allocable to a defaulting City, and until a new purchaser is secured for the defaulting City's interest in the Project, the non-defaulting Cities shall have the obligation to make the payments required herein of the defaulting City to the District Section 14. Waiver and Amendment. Failure to enforce, or the waiver of any provision of this Agreement, or any breach or nonperformance by the District or the Cities, shall not be deemed a waiver by either the District or the Cities of the right in the future to demand strict compliance with, and performance of, any provision of this Agreement No waiver or waivers of any breach or default (or any breaches or defaults) by any party hereto or of performance shall be deemed a waiver hereof in the future, nor shall any such waiver or waivers be deemed or construed to be waiver of subsequent breaches or defaults of any kind, characters, or description, under any circumstances No officer or agent of the District or the Cities is authorized to waive or modify any provision of this Agreement No modifications to or rescission of -20- this Agreement may be made except by a written document signed by the District's and the Cities' authorized representatives Section 15. Consent, Approval or Other Action Whenever this Agreement provides that the consent, approval or other action of any party hereto is required, such consent, approval or other action shall not be unreasonably withheld or delayed Section 16. Texas Water Commission Rules. The effectiveness of this Agreement is dependent upon the District and the Cities complying with the rules of the Texas Water Commission, specific- ally including 31 TAC $295.101 and 31 TAC 55297 101-108 as of the effective date of this Agreement The District will file a signed copy of this Agreement with the Executive Director of the Commis- sion as required by the rules of the Commission The Cities may not divert raw water from the Project unless and until the District notifies the Cities that the District has received written notification from the Commission that a copy of this Agreement has been received by the Commission and accepted for filing The Cities shall submit written reports monthly to the District, on forms provided by the District, indicating the total amount of water diverted under this Agreement for the preceding month Section 17. other Regpirements. This Agreement is subject to all conditions, provisions, and limitations included in the -21- Federal Contract. Further, this Agreement is subject to all applicable federal, state and local laws and any applicable ordinances, rules, orders and regulations of any local, state or federal governmental authority having jurisdiction including, but not limited to, the ratefixing power of the Texas Water Commission. However, except as otherwise provided in Section 26 of this Agreement, nothing contained in this Agreement shall be construed as a waiver of any right to question or contest any law, ordinance, order, rule or regulation in any forum having jurisdiction. Section 18. Remedies it is not intended hereby to specify (and this Agreement shall not be considered as specifying) an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by any party hereto and shall be cumulative Recogniz- ing, however, that the District's undertaking to provide and maintain a supply of water hereunder is an obligation, failure in the performance of which cannot be adequately compensated in money damages alone, the District agrees, in the event of any default on its part, that the Cities shall have available to them the equitable remedies of mandamus and specific performance, in addition to any other legal or equitable remedies (other than termination) which may also be available -22- Section 19. Indemnity. The Cities agree, jointly and severally, to indemnify the District for and/or hold the District harmless from and defend any claim that may arise in connection with the quality, quantity, use, impoundment, transportation or measurement of water, and any claim that may arise as a result of installing, inspecting, adjusting or testing measuring and recording equipment Section 20 Force Ma Burs. If for any reason of "force majeure," either the District or a City shall be rendered unable, wholly or in part, to carry out any obligation under this Agree- ment, other than the obligation of a City to make the payments required under the terms of this Agreement, then if the party shall give notice of the reasons in writing to the other parties within a reasonable time after the occurrence of the event or cause relied on, the obligation of the party giving the notice, so far as it is affected by the "force majeure," shall be suspended during the continuance of the inability then claimed, but for no longer period. The term "force majeure" as used in this Agreement shall mean acts of God, strikes, lockouts, or other industrial distur- bances, acts of public enemy, orders or actions of any kind of government of the United States or of the State of Texas, or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, restraints of government and people, -23- civil disturbances, explosions, breakage or accident to dams, machinery, pipelines, or canals or other structures or machinery, partial to entire failure of water supply, and any inability on the part of the District to deliver water, or of a City to receive water, on account of any other cause not reasonably within the control of the party claiming an inability. Regardless of the foregoing, however, a City's obligation to make payments required hereunder to the District shall never be excused by reason of "force majeure." Section 21. Assignment or Sale of Rights. The Cities understand and agree that neither this Agreement nor any of a City's rights hereunder may be assigned or sold, in whole or in part, without the District's express written consent; provided, however, any city may assign or sell all or any portion of its rights under this Agreement to another City upon giving thirty (30) days prior written notice to the District; and provided further that nothing in this section shall apply to or prevent a sale of water by any of the Cities. Prior to the assignment or sale of a City's rights under this Agreement to an entity other than a City, the City desiring to assign or sell its rights shall grant the other Cities a right of first refusal to secure such rights under the same terms and conditions upon which the assigning/selling City proposes to assign or sell its rights to another Upon written notice to the other Cities of a City's intent to assign or sell its -24- rights hereunder, the other Cities shall have sixty (60) days to provide a written offer to secure such rights, under the same terms and conditions upon which the assigning/selling City intends to assign or sell its rights, or this right of first refusal is waived If more than one of the cities desire to secure the rights a city intends to assign or sell, each such City shall have the right to secure same, on a basis which reflects those Cities, percentage interest in the water purchased under this Agreement, without considering the assigning/selling City's interest. Section 22. Sole Agreement. This Agreement constitutes the sole and only agreement of the District and the Cities, and supersedes any prior understanding or oral or written agreements between the District and the Cities respecting the subject matter of this Agreement Section 23. Severabilitv The provisions of this Agreement are severable, and if, for any reason, any one or more of the provisions contained in this Agreement shall be held to be invalid, illegal or unenforceable in any respect, the invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement and this Agreement shall remain in effect and be construed as if the invalid, illegal or unenforceable provision had never been contained in the Agreement -25- Section 24 Authorised Representatives. The authorized representative of the District is the President of its Board of Directors The authorized representative of each City is its Mayor. Section 25 Notices. All notices, payments and communica- tions ("notices") required or allowed by this Agreement shall be in writing and be given by depositing the notice in the united States mail, postpaid and registered or certified, with return receipt requested, and addressed to the authorized representative of the party to be notified. Notice deposited in the mail in the previously described manner shall be conclusively deemed to be effective from and after the expiration of three (3) days after the notice is deposited in the mail Notice given in any other manner shall be effective only if and when received by an officer of the authorized representative of the party to be notified For purposes of notice, the addresses of and the authorized representa- tive for receipt of notice for each of the parties shall be shown above the signatures of the individuals who signed this Agreement on behalf of the District and the Cities Any party may change its address or authorized representative by giving written notice of the change to the other parties at least fifteen (15) days before the change becomes effective -26- SECTION 26 Place of Performance All amounts due under this Agreement, including, but not limited to, the Annual Payments or damages for the breach of this Agreement, shall be paid or done in Delta County, Texas, and Delta County, Texas is hereby acknowledged and agreed to be the place of performance of the obligations referenced in this Agreement In the event that any proceeding is brought in state court to enforce this Agreement or any provision hereof, the same shall be brought in Delta County, Texas SECTION 27 Duplicate Originals The Cities and the District acting under authority of their respective governing bodies shall authorize the execution of this Agreement by their authorized representatives in four (4) counterparts, each of which shall be an original EFFECTIVE as of the date signed by all of the authorized representatives SULPHUR RIVER MUNICIPAL WATER DISTRICT P.0 Box 536 Sulphur Springs, Texas 75482 Byr% l° TITLE DATE -27- ATTEST APPROVED AS TO FORM AND LEGALITY BY ATTORNEY FOR THE DISTRICT CITY OF COMMERCE 1119 Alamo Commerce, Texas 75428 BY TITLE DATE ATTEST iULPHUR SPRINGS 125 South Davis Sulphur Springs, Teca 754,802, BY r W1 TITLE J DATE 4,2 1 ATTEST CITY OF COOPER 101 N W First Street Cooper, Texas 75432 BY TITLE DATE 3 (v 9 ATTEST -29- APPLICATION NO IN THE MATTER OF § APPLICATION NO § OF SULPHUR RIVER MUNICIPAL § WATER DISTRICT AND § THE CITY OF COMMERCE, TEXAS § BEFORE THE TEXAS WATER COMMISSION WATER RIGHTS APPLICATION This Application (the "Application") is filed by Sulphur River Municipal Water District ("SRMWD") and the City of Commerce ("Commerce") (collectively, Applicants) requesting the following actions A That the Executive Director accept for filing the contract between SRMWD and its customer cities, Commerce, Cooper and Sulphur Springs, a copy of which accompanies this Application, B That the Texas Water Commission (the "Commission") grant a contractual amendment to SRMWD's water right, Certificate of Adjudication 03 4797 ("CA 03-4797'), authorizing (i) a change in the purpose of use of 4,832 acre-feet per year of water presently authorized to be used for industrial purposes to change the authorized use to either industrial or municipal purposes, and (u) a temporary, interim transbasin diversion and additional place of use of 11,274 acre-feet per year of water for municipal purposes and the 4,832 acre-feet per year of water for either municipal or industrial use as set forth in subsection (i) above, for use either in the Sulphur River Basin within the service area of SRMWD or, on a temporary, interim basis, within the Trinity River Basin, and C That the Executive Director accept for filing the contract between Commerce and the Upper Tnmty Regional Water District ("UTRWD") for the sale of water from Cooper Reservoir, a copy of which accompanies this Application In support of this Application, Applicants simultaneously herewith submit the Engineering Report of HDR Engineering, Inc, the statements and information of which are hereby incorporated herein by reference (the "Engineering Report") and further submit the following I A The names, addresses, telephone numbers and tax identification numbers of the Applicants are Sulphur River Municipal Water District P O Box 536 Sulphur Springs, Texas 75482 903/885-3327 Tax I D #175-237259-6 City of Commerce 1119 Alamo Street Commerce, Texas 75428 903/886-2105 Tax I D # 175-600498-2 B The names, positions, addresses and telephone numbers of the persons authorized to execute this Application on behalf of the Applicants are Don R Abernathy Vice President Sulphur River Municipal Water District P O Box 536 Sulphur Springs, Texas 75482 903/395-2600 2 Honorable James Teel Mayor, City of Commerce 1119 Alamo Street Commerce, Texas 75428 903/886 2105 C The water right which is the subject of this application is Certificate of Adjudication 03-4797 (formerly Permit No 2336) Owner Sulphur River Municipal Water District Reservoir Cooper Reservoir Stream South Sulphur River, a tributary of the Sulphur River, Sulphur River Basin, Delta and Hopkins Counties II The Commission has jurisdiction of this Application pursuant to Chapter 11, Water Code, 31 TAC Chs 295 and 297, and other laws and regulations III SRMWD was created and operates pursuant to the authority of Art 8280 165, V T C S The territory of SRMWD is comprised of the city limits of the cities of Commerce, Cooper and Sulphur Springs, which are also the three member cities of SRMWD pursuant to the referenced enabling legislation SRMWD is one of three local sponsors of Cooper Reservoir located on the South Sulphur River, Sulphur River Basin, in Delta and Hopkins Counties The other two local sponsors are North Texas Municipal Water District ("NTMWD") and the City of Irving ("Irving") Each of these three local sponsors has a contract with the United States Army Corps of Engineers (the "COE") authorizing the purchase of a portion of the conservation storage space and other rights in Cooper Reservoir by each of the local sponsors A copy 3 of SRMWD's contract with the COE authorizing purchase of storage space in Cooper Reservoir by SRMWD accompanies this Application Each of the local sponsors likewise has water rights from the Commission authorizing the storage of water in the respective storage space to which each local sponsor is entitled in Cooper Reservoir and the diversion and use of water from the reservoir by each local sponsor A summary of those water rights follows Water Right Storage Right Use (AF/YR) Div Transbasm No. (/iF1 Mun. Ind. Total Rate Diversion To SRMWD CA 03 4797 81470 26,960 11560 38,520 Unspecified (P 2336) (26282%) NTMWD CA 03 4798 114,265 54,000 54,000 Unspecified T}mdy Rm (P 2338) (36859%) Basin Irving CA 03 4799 114,265 44,870 9,180 54,000 Unspecified Trendy River (P 2337) (36859%) Basin Total 310 000 125 780 20 740 146 520 Unspec lied (100%) A copy of CA 03 4797 for SRMWD is included in the Engineering Report IV Construction of Cooper Reservoir by the COE is expected to be substantially complete on or about September 28, 1991 In contemplation of completion of construction of the reservoir, SRMWD has entered into a contract with its three member cities authorizing diversion and use by each member city of a proportional amount of the water authorized to be used under CA 03-4797 as follows 4 Commerce 11,274 acre-feet per year for municipal purposes and 4,832 acre- feet for industrial purposes Cooper 3,004 acre-feet per year for mumcipal purposes and 1,290 acre-feet for industrial purposes Sulphur Springs 12,682 acre-feet per year for municipal purposes and 5,438 acre- feet for industrial purposes A copy of the contract between SRMWD and the three member cities accompanies this Application V Because construction of Cooper Reservoir took over twenty-five years to complete (due to delays from on-going litigation), Commerce entered into arrangements to obtain supplemental water supplies from the Sabine River Authority (from Lake Tawakom) to meet its needs Specifically, Commerce (through the Commerce Water District) obtained a 70-year supply of water from Lake Tawakom for the period from 1976 2046 Because the contract for water supply from the Sabine River Authority is contemplated to supply sufficient water to meet Commerce's needs during the term of that contract, Commerce has entered into an agreement with UTRWD to sell to UTRWD on a temporary, interim basis the 16,106 acre-feet per year of water from Cooper Reservoir to which Commerce is entitled under its contract with SRMWD A copy of the contract between Commerce and UTRWD accompanies this Application The sale would be effective for a minimum period of 50 years, with options available thereafter for Commerce to terminate all or portions of the contract, at Commerce's direction, under the terms and conditions specified in the contract The termination options to be exercised by Commerce 5 will allow Commerce to regain the right to use its share of water from Cooper Reservoir beginning fifty (50) years in the future as Commerce's contract for water from Lake Tawakom expires These arrangements thus have the combined effect of maximizing the beneficial use of water in both Lake Tawakom and Cooper Reservoir In order to effectuate the sale of water by Commerce to UTRWD, SRMWD and Commerce now apply for a contractual amendment to CA 03-4797 to authorize the 4,832 acre-feet per year of industrial use water purchased by Commerce to be used for either industrial or municipal purposes and to authorize the entire 16,106 acre-feet per year of municipal and industrial use water purchased by Commerce either to be used in the service area of SRMWD in the Sulphur River Basin as presently authorized or, on a temporary, interim basis, to be used in the Trinity River Basin in which UTRWD is located It is proposed that the permit provide that the transbasin diversion authority be reduced, partially or totally, as, and to the extent that, Commerce exercises termination options under its contract with UTRWD VI The proposed changes in CA 03 4797 are as follows A Purpose of use CA 03-4797 presently authorizes the diversion and use of 26,960 acre feet per year of water for municipal purposes and 11,560 acre-feet per year of water for industrial purposes This Application seeks authorization for 4,832 acre-feet per year of the water presently permitted for industrial purposes to be used for either industrial or municipal purposes Thus, if granted, this Application would have the effect of changing the total authorization in CA 03 4797 to authorize 26,960 acre-feet per year of water for -6 municipal purposes, 6,728 acre feet per year of water for industrial purposes, and 4,832 acre feet per year of water for either municipal or industrial purposes B Place of use CA 03-4797 presently authorizes use of the water within the service area of SRMWD in the Sulphur River Basin This application requests use of a portion of the water (16,106 acre feet per year) also in the Trinity River Basin on a temporary, interim basis such that this water could be used either in the Sulphur River Basin or the Trinity River Basin This would constitute, and Applicants request approval of, an "interwatershed transfer" of water from the Sulphur River Basin to the Trinity River Basin pursuant to Section 11085, Texas Water Code C Rate and method of diversion CA 03 4797 presently specifies no rate or method of diversion SRMWD proposes that the water to be sold to Commerce (and thence to UTRWD) be diverted from the perimeter of Cooper Reservoir by means of a stationary pump, or pumps, with a maximum diversion rate of 202 5 cfs (130 9 mgd) SRMWD requests that additional diversion rates for its other two member cities (Sulphur Springs and Cooper) be permitted to be designated later VII After diversion, use and reuse, unconsumed water will be returned, as appropriate, either to the Sulphur River Basin of SRMWD as presently permitted or to the Trinity River Basin at points in the Elm Fork of the Trinity River or downstream thereof -7 VIII In connection with the changes in purpose and place of use requested herein, UTRWD has adopted a conservation plan, a copy of which is included in the Engineering Report This plan will effect the efficient use of the water resources of the state authorized to be diverted and used pursuant to this Application UTRWD's master plan, as discussed in the Engineering Report attached hereto, contemplates deliberate effort by UTRWD to reuse water to the maximum extent possible in accordance with Commission rules in order to maximize beneficial use of the resource ix UTRWD has appropriate condemnation authority to allow it to acquire any rights-of way or other property necessary for construction of a pipeline or other facility to divert and transport the water from Cooper Reservoir to the additional place of use requested to be authorized herein X. SRMWD's contract with the COE, the owner of Cooper Reservoir, evidences the agreement of the COE to the use of the storage space in Cooper Reservoir by SRMWD A copy of this contract accompanies this Application XI The granting of this Application will have no adverse impacts on the bays and estuaries of the State of Texas (See Engineering Report ) 8 XII The granting of this Application will have no adverse impacts on existing instream uses in either the Sulphur River Basin or the Trinity River Basin (See Engineering Report ) XIII The granting of this Application will have no adverse impacts on water quality in the State (See Engineering Report ) XIV The granting of this Application will have no adverse impacts on fish and wildlife resources, nor will any mitigation be necessary (See Engineering Report ) XV The matters requested in this Application are consistent with the Red River Basin Compact (Ch 46, Water Code) WHEREFORE, PREMISES CONSIDERED, Applicants respectfully request that this Application be granted as follows A That the Executive Director accept for filing the contract entered into between SRMWD and its member cities, a copy of which accompanies this Application, -9 B That the Commission approve a change in the purpose of use of 4,832 acre- feet per year of water presently authorized to be used for industrial purposes under CA 03-4797 to authorize that water to be used either for municipal or industrial purposes, C That the Commission approve a "transwatershed diversion" permit under § 11085, Texas Water Code, and additional place of use of 16,106 acre-feet per year of water (11,274 acre-feet per year to be used for municipal purposes and 4,832 acre feet per year to be used for either municipal or industrial purposes) so that the water may be used within either the Sulphur River Basin or, on a temporary, interim basis, the Trinity River Basin, and D That the Executive Director accept for filing the contract between Commerce and UTRWD, a copy of which accompanies this Application 10- Respectfully submitted, ATTEST Danny Duncan Secretary, Board of Directors ATTEST Kim Lee City Secretary SULPHUR RIVER MUNICIPAL WATER DISTRICT By Don R Abernathy Vice President, Board of Directors CITY OF By James H Teel Mayor -11 STATE OF TEXAS § COUNTY OF DELTA § SWORN TO AND SUBSCRIBED by Don R Abernathy, Vice President, Board of Directors of Sulphur River Municipal Water District before me the undersigned Notary Public on , 1991 Notary Public, State of Texas Printed Name My Commission Expires STATE OF TEXAS § COUNTY OF HUNT § SWORN TO AND SUBSCRIBED by James H Teel, Mayor of the City of Commerce before me the undersigned Notary Public on , 1991 Notary Public, State of Texas Printed Name My Commission Expires -12- SECRETARY'S CERTIFICATE I, Kin Lee, City Secretary of the City of Commerce, Texas, do hereby certify that the attached is a true and correct copy of a Water Sale Contract by and between the City of Commerce, Texas, and the Upper Tnmty Regional Water District /Y1Li , k Kim Lee City Secretary, City of Commerce, Texas \mmm\mrt 002 APPLICATION NO IN THE MATTER OF § APPLICATION NO § OF SULPHUR RIVER MUNICIPAL § WATER DISTRICT AND § THE CITY OF COMMERCE, TEXAS § BEFORE THE TEXAS WATER COMMISSION WATER CONTRACT BETWEEN THE UNITED STATES OF AMERICA AND SULPHUR RIVER MUNICIPAL WATER DISTRICT FOR WATER STORAGE SPACE IN COOPER RESERVOIR CONTRACT NO DACW29-68-A-0101 CONTRACT BETWEEN THE UNITED STATES OF AMERICA AND SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR THIS CONTRACT, entered into this 29th day of March 1968 by and between the UNITED STATES OF AMERICA (hereinafter called the Government), represented by the Contracting Officer executing this contract, and the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, an agency of the State of Texas with its principal office in the city of Commerce, Texas (hereinafter called the District), WITNESSETH THAT WHEREAS, construction of the Cooper Reservoir on South Sulphur River, Texas (hereinafter called the Project), has been authorized by the Act approved 3 September 1954 (Public Law 780, 83d Congress, 2d Session), as amended by the Act approved 3 August 1955 (Public Law 218, 84th Congress, lst Session), and, WHEREAS, the Sulphur River Municipal Water District of Texas, a governmental agency of the State of Texas, created under provisions of Acts 1955, 54th Legislature, State of Texas, Regular Session., approved 13 May 1955 (Art 8280-165, Velmon's Texas Statutes) with the power to acquire any and all rights in and to municipal, dorestic, and industrial water supply storage capacity to be provided in the Project, has been authorized by the Texas Water Rights Commission as an agency with whom the Contracting Officer should aegot.ate with respect to a portion of the water supply storage in the Project, and, WHEREAS, the Government is authorized by the Water Supply Act of 1958 (Title III of Public Law 85-500 approved 3 July 1958), as amended by Section 10 of the Federal Water Pollution Control Act Amendments of 1961 (Public Law 87-88 approved 20 July 1961) to include storage in any reservoir project to be constructed by the Corps of Engineers to impound water for present or anticipated future demand or need for municipal or industrial water, and, WHEREAS, Public Law 88-140, approved 16 October 1963, makes permanent rights of states and local interests to utilize municipal and industrial storage in Corps of Engineers' reservoirs for which they contributed, and, CORTRAOT RO DACW29-68-A-0101 WHEREAS, storage space bas been included in the project for municipal and industrial water supply, and, WHEREAS, the District desires to utilize 17,750 acre-feet of storage space as a source of initial municipal and industrial eater supply as set forth in Article 1, and, WHEREAS, the District desires to utilize an additional 54,000 acre-feet of storage space for future municipal and industrial voter supply as set forth in Article 1, and, WHEREAS, the District hereby agrees to fulfill the local interest requirements of the Water Supply Act of 1958, as amended NOW, THEREFORE, the parties do mutually agree as follows ARTICLE 1 WATER STORAGE SPACE - a The District shall have the right to utilize an undivided six and five hundred two thousandths percent (6 502%) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the District to impound water in the Project for its initial munici- pal and industrial use, and make such diversions as granted to the District by the Texas Water Rights Commission, or its successors, to the extent such storage will provide b The District shall further have the right to utilize, from the 10th anniversary of the date of deliberate impoundment, an undivided nineteen and seven hundred eighty thousandths percent (19 780%) of the storage space in the Project between elevations 440 0 and 415 5 feet above mean sea level as deemed necessary by the District to impound water in the Project for its future municipal and industrial use, and make such diversions as granted to the District by the Texas Water Rights Commission, or its successors, to the extent such storage will provide c The rights described in Articles 1 a and b above are subject to the retention by the Government and others of the remaining undivided seventy-three and seven hundred eighteen thousandths percent (73 718%) of the storage space for such purposes as the Government may deem advisable d The District will not make or permit withdrawals which would lower the water level below elevation 415 5 feet above mean sea -evel, unless expressly approved in writing by the Contracting Officer 2 CONTRACT NO DACW29-68-A-olol e The Government shall not be responsible for diversion by others, nor will it become a party to any controversies between users of the aforesaid storage space, except as such controversies may affect storage space reserved by the Government f. The design and location of any future District installations or facilities that the District may constrict at the Project for the purpose of diversions or withdrawals shall be subject to the approval of the Contracting Officer, and the cost of such installations or facilities, or any modifications thereof, shall be borne by the District g The Government reserves the right to take such measures as may be necessary in the operation of the Project to preserve life and/or property h The Government reserves the right at all times to maintain a low flow release of 5 cubic feet per second, regardless of the elevation of the water During periods of regulation for water supply (when the reservoir water surface is below elevation 440 0 feet above mean sea level), the District shell be entitled to six and five hundred two thousandths percent (6 502%) of the yield of the aforesaid storage space after allcua.c of the flow of 5 cubic feet per second, for a period of 10 years after the date of deliberate impoundment Thereafter the District shall be entitled to twenty-six and two hundred eighty-two thousandths percent (26 282%) of the total yield of the aforesaid storage space after allowance of the flow of 5 cubic feet per second Should the rate of withdrawal for water supply, downstream release, and evaporation fail to maintain a recession in water level of 2/10 of a toot in any 10-day period during the months May through October, inclusive, the Government reserves the right to obtain the above rate of recession by release of water downstream in excess of 5 c f s in the interest of mosquito control Should the inflow during the months May through October, inclusive, result in a rise in water level and require an additional expenditure in the interest of mosquito control, proportionate reimbursement for such expenditure shall be made by the District i To implement the provisions of this article, the Government shall, at the appropriate time and in consultation with the District, formulate a plan of operation for the project which will achieve these objectives j The "date of deliberate impoundment" as used in this contract shall mean the date upon which the Project becomes opera- tive for storage of water for any of the purposes contained in the authorizing Act 3 CONTRACT AO DACW29-68-A-0101 ARTICLE 2 METERING - For the purpose of maintaining an accurate record of water resources at the Project, the District shall install suitable meters or metering devices satisfactory to the Contracting Officer without cost to the Government, at such time as the District may withdraw water from the Project The District shall furnish the Government periodically, at least monthly, a record of all such withdrawals from the Project Nothing in this article is to be construed as prohibiting participation b) the District in coopera- tive gaging programs sponsored by the United States Geological Survey or other Government agencies in the water resources field ARTICLE 3. FEDERAL AND STATE LAWS - The District shall utilize such storage space in a manner consistent with Federal and state laws. ARTICLE 4. REGULATION OF THE USE OF WATER - The regulation of the use of water stored in thevater supply spaces covered by this contract (17,750 acre-feet for initial, 54,000 acre-feet for future) shall be the responsibility of the District upon initiation of payment by the District for construction costs allocated to such spaces ARTICLE 5 CONSIDERATION AND PAYMEWT - a In consideration of the Government's providing the aforesaid storage space of 17,750 acre-feet for initial water supply use by the District, it is agreed that the District shall pay the following sums to the Government (1) Six hundred thousand nine hundred and fifty-nine dollars (5600,959), which is the estimated cost, including interest during construction, of providing the storage space for initial water supply use in payments in the amount of tventy-three thousand seven hundred and nineteen dollars ($23,719) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance The aforesaid payments are more specifically set forth in exhibit "8" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, vnen due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has coon made Payments thereafter shall be due and payable vitnin thirty (30) days of the yearly anniversary date of the first payment under this contract 4 CONTRACT NO DACW29-68-A-0101 (2) Two and two hundred sixty-four thousandths percent (2.264x) of the annual experienced ,joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be two thousand six hundred and thirty-one dollars ($2,631) will be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made. Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to two and two hundred sixty-four thousandths percent (2 2645) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and two and two hundred sixty- four thousandths percent (2 2645) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be de- termined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense (3) One and nine hundred twelve thousandths percent (1 9125) of the cost of sedimentation resurveys and ,joint-use major capital replacements when incurred (4) In the event of default in the payment of the costs contained in Article 5 a (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty-three thousandths percent (3 2535) per annum thereon, compounder annually, and such amount equal to interest shall be charged from the date such payments are due until paid b. In consideration of the Government's providing the aforesaid storage space of 54,000 acre-feet for future water supply use by the District, it is agreed that the District shall pay the following sums to the Government (1) One million eight hundred and twenty-eight thousand two hundred and seventy-one dollars ($1,828,271), which is the esti- mated cost, including interest during construction, of providing the storage space for future water supp4 use in payments in the 5 COSTRACT NO DACN29-68-A-0101 amount of Seventy-two thousand one hundred and fifty-nine dollars ($72,159) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall Include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 2535) per annum on the unpaid balance. The aforesaid payments are more specifically set forth in exhibit "C" attached hereto and made a part hereof, and the last payment shall be adjusted upward or dovnvard, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the tenth anniversary of the date the District is noti- fied that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract (2) Six and eight hundred eighty-eight thousandths percent (6.888x) of the annual experienced point-use cost of ordinary operation and maintenance of the Project The first payment estimated to be eight thousand and four dollars ($8,004) will be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impound- ment and will be equal to six and eight hundred eighty-eight thousandths percent (6 888%) of the actual experienced point-use cost of ordinary operation and maintenance of the preceding Govern- ment fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and six and eight hundred eighty-eight thousandths percent (6 8885) of the actual experienced point-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense 6 CONTRACT NO DACN29-68-A-0101 (3) Five and eight hundred fifteen thousandths percent (5 815%) of the cost of sedimentation resurveys and joint- use mayor capital replacements when incurred (h) In the event of default in the payment of the costs contained in Article 5 b (1), (2), and (3), the amount of such payments shall be increased by an amount equal to interest on such overdue payments at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum thereon, com- pounded annually, and such amount equal to interest shall be charged from the date such payments are due until paid (5) The District may, upon written notice to the Government at any time prior to the tenth anniversary date of delib- erate impoundment, advance or defer the date of first use of all or any portion of the storage space provided under this contract for future water supply, subject to the requirements that the entire amount of the construction costs, including interest during construc- tion, allocated to water supply shall be repaid within the life of the project, and that repayment of the amount of such costs for any portion of the storage space used shall be made within a period of not to exceed 50 years from the date such portion of the storage space is first used for the storage of water for water supply pur- poses No principal or interest payment with respect to the storage space provided under this contract for future water supply is required to be made during the first 10 years following the date of deliber- ate impoundment unless all or a portion of such storage apace is used by the District for the storage of water for water supply pur- poses, in which event repayment for the portion used shall be started and shall be repaid within not to exceed 50 years from the date of first use In the event the date of first use of all or a portion of the future water supply storage space is deferred beyond the 10th anniversary date of deliberate impoundment, interest at the rate specified will be charged for that portion from the 11th year until such time as it is first used for the storage of water for water supply purposes The District may at its option pay the interest as it becomes due or may allow the interest to accumulate until the storage space is used If this latter option is exercised the interest will be compounded annually and will be added to the principal amount c In the event the actual first cost of the Project exceeds the presently estimated first cost, as set forth in exhibit "A," the aforesaid annual payments shall be increased to reflect the actual first cost, including interest during con- struction, as determined by the Contracting Officer In the event such first cost of the Project is less than the presently estimated first cost, the aforesaid annual payments shall be decreased to reflect the actual first cost, including interest during construction, 7 CONTRACT 10 DACW29-68-A-0101 as determined by the Contracting Officer. In the event the annual payments are increased or decreased, as provided above, an adjustment, as determined by the Contracting Officer, of payments made prior to the determination of the final Project cost shall be made in the first payment due after such costs are determined The interest rates used in this contract are for estimating purposes only. The interest rate used for purposes of computing interest during construction and interest on the unpaid balance shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction of the Project is initiated, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations, which are neither due nor callable for redemption for fifteen years from date of issue At the time that the final Project costs are determined, the repayment schedules shall be modified to reflect the increased or decreased annual payments and such modification will form a part of this contract ARTICLE 6 NO WARRANTIES AS TO QUALITY OF WATER - The parties hereto recognize that the water in the storage space being made available to the District under the terms of this agreement is raw reservoir water The Government makes no representations with respect to the conditions or the potability of the water, and as- sumes no responsibility therefor or for treatment of the water, or for undertaking any action which might tend to reduce contamination from the reservoir or from other sources in the watershed ARTICLE T PERIOD OF CONTRACT - This contract shall become effective as of the date of approval by the Secretary of the Army, and shall continue in full force and effect, under the conditions set forth herein, not to exceed the life of the Project This contract is subject to the provisions of Public Law 88-140, approved 16 October 1963, and the District shall have a permanent right to the use of such storage spaces after the period of years specified for repayment under Article 5 in the contract, or as amended, subject to the following a The District must have discharged its responsibilities for payment of the costs allocated to water supply b The District must continue payment of its share of annual operation and maiateaance costs allocated to water supply c The District must pay in lump sum, or annually with interest, the costs allocated to water supply which may at termin- ation of the repayment period set forth in the contract, or thereafter, 8 CONTRACT NO DACW29-68-A-0101 be required for any necessary reconstruction, rehabilitation, or replacement of Project features which may be required to con- tinue satisfactory operation of the Project Such costs will be established by the Contracting Officer Repayment arrangements rill be in writing and will be made a part of this contract d Upon termination of the repayment periods set forth in the contract, the Contracting Officer shall redetermine the storage space for municipal and industrial water supply, taking into account such equitable reallocation of reservoir storage capacities among the purposes served by the Project as may be necessary due to sedimentation. Such findings, and the storage space allocated to municipal and industrial water supply, shall be defined Lad described in an exhibit which will be made a part of this contract Following the same principle, such reallocation of reservoir storage capacity may be further adjusted from time to time as the result of sedimentation resurveys to reflect actual rates of sedimentation and the exhibit revised to show the revised storage. space allocated to municipal and industrial water supply e The permanent rights of the District under this contract shall be continued as long Ls the Government continues to operate the Project In the event the Government no longer operates the Project, such rights may be continued subject to the execution of a separate contract, or supplement agreement pro- viding for (1) Continued operation by the District of such part of the facility as is necessary for utilization of the storage space allocated to it, (2) Terms which will protect the public interest, and (3) Effective absolvement of the Government by the District from all liability in connection with such continued operation ARTICLE 8 OPERATION AND MAINTENANCE - The Government shall operate and maintain the Project owned by the Government The District shall have the right to make withdrawals of water for its purposes as needed in accordance with Article 1 The District shall be responsible for operation and maintenance of all features and appurtenances which may be provided and owned by the District ARTICLE 9 RIGHTS-OF-WAY - The Government, subject to the approval of the Secretary of the Army, shall, without additional 9 CONTRACT 30 DACW29-68-A-0101 consideration, grant to the District, by separate instrument or instruments, an easement or easements as may be required for the construction, operation and maintenance of pumping facilities and water supply pipelines in, on, over, and across Government- owned lands acquired for project purposes The instruments granting such easements shall be consistent with Government con- tract provisions in effect at that time, with such modifications as may be necessary in each instance and as may be approved by the Government ARTICLE 10 RELEASE OF CLAIMS - The District shall hold and save the Government, including its officers, agencies, and employees, harmless from liability of any mature or kind for or on account of any claim for damages which may be filed or asserted as a result of the storage in the Project or withdrawal or release of water from the Project, made or ordered by the District, or as a result of the construction, operation, or maintenance of the features or appurtenances owned and operated by the District ARTICLE 11 TRANSFER OR ASSIGNMENT - The District shall not transfer or assign this contract, nor any rights acquired thereunder, nor suballot said water or storage space or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without approval of the Secretary of the Army, provided, that, unless contrary to the public interest, this restriction shall not be construed to apply to any water which may be obtained from the water supply storage space by the District and furnished to any third party or parties ARTICLE 12 OFFICIALS NOT TO BENEFIT - No member of or delegate to Congress, or resident commissioner, shall be admitted to Lay share or part of this contract, or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit ARTICLE 13 COVENANT AGAINST CONTINGENT FEES - The District warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or con- tingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the District for the purpose of securing business For breach or violation of this warranty the Government shall have the right to annul this contract 10 CONTRACT NO. DACW29-68-A-0101 without liability or in its discretion to add to the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee r M-11CLF 14 APPPCVAL OF CONT?4CT - This contract shall be subject to the written approval of tae Secretary of the Azzy, and shall not be binding until so approved IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written APPROVED THE UNITED STATES OF AMERICA 3 0 Secretary of the Arzy 41ntrac g officer DATE 11 JUL 1968 SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS By 7e- 1~i~ ri•~9e/ President 1910 Monroe Street Commerce, Texas t5428 ATTEST Post office aadress Secretary, Sulp River Municipal Water trict of Texas APPRO~ FORM Attorney, Sulphur River Municipal Water District of Texas 11 NO DACW29-68-A-0101 I, {?✓.'^G'' T " , certify that I am the Secretary of the silo UR RIVER MUi1ICi?AL WATES D~IS~TRI~CT~ F QQ~S herein, a body politic and corporate, that .'u~ -/""1, vho signed this contract on behalf of the District vas then PRESIDI:7T of said SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, the' Faid contract was duly signed for and on behalf of the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS by authority of its governing body and is vithin the scope of its legal povers In Witneas Whereof, I brave hereunto affixed my hand and the seal of said STjrTUR RIVE" MUNICIPAL WATER DISTRICT OF TEXAS this day of y~ 4" -q 196r cretsry, Sulphur iver Mu Water District of Texas CORPORATE SEAL 12 i I I EXHIBIT A I - Reservoir Storages Water supply storage Municipal water supply Initial use Sulphur River Municipal Water District Future use Sulphur River Municipal Water District Other M&I water supply users Total water supply storage Flood control storage Reservoir storage Percent of M&I water supply space 6 502 19 780 73 718 100 000 (I)Storage remaining otter 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for initial use of Sulphur River Municipal Water District M&I water supply for future use of Sulphur River Municipal Water District M&I water supply for use of others Subtotal - M&I water supply Texas Water Development Board participation Flood Control (nonreimbursable) Recreation (nonreimbursable) Total 1 Elevation ftmsl ) 415 5-440 0 440 0-446 2 Usable stor e(1 ac-ft 17,750 54,000 201,250 273,000 1_3.,14 00 404,400 $ 564,249 1,716,590 6,397,476 S 8,678,315 1,715,471 10,196,503 5,938,711 $26,529,000 III - Initial M&I water supply use 6.502% of cost allocated to M&I water supply (0.06502 x $8,678,315) $ 564,249 Interest during construction (3.253% x 1/2 of 4-year period) 36 T10 Total y6000, 59 Future M&I water supply use 19 T80% of cost allocated to M&I water supply (0.19T8o x $8,6T8,315) $1,T16,590 Interest during construction (3 253% x 1/2 of 4-yeax period) 111 681 8: Total $1,52 271 IV - i SRMWD SRMND Other M&I M&I M&I Flood Initial W S / - Put W S $/r W S $//Yr TWDB /n Control TT Rec $7- Total T Operation maiat Specific cost Specific 0 0 0 0 50.600 58,600 109,20-1 Joint-use cost Total 2 631 2^,b31 :8 0044 C 004 29 830 29-;830 8 439 b, 3 37 270 78-,870 30'02-6 88 626 116 2C ` , , 225 0 Mayor replacements Specific cost 0 0 0 0 0 18,600 18,600 Joint-use cost 20 61 231 65 504 179 1 060 Total 20 231 5 50 119,779 11 2 V- Initial M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) $ 23,719 Joint-use operation and maintenance costs equivalent to 2,264% of the actual point-use operation and maintenance costs, computed as follows 34 824% ■ percent of joint-use OL4 cost allocated to M&I water supply 6,502% ■ percent M&I vater supply space to be used by the Sulphur River Municipal Water District (Initial) (34,824% x 06502 ■ 2.264% of the actual point-use 0&M costs Estimated annual cost ( 02264 x $116,200) 2,631 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 1 912% of the actual point-use major capital replacements and sedimentation resurvey costs, computed as follows 29 400% - percent joint-use major capital replacement and sedimentation resurvey costs allocateA to M&I water supply 6 502% - percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (29 400% x 06502) ■ 1 912% of the actual ,joint-Lse mayor capital replacements and sedimentation resurvey costs Estimated annual cost (.01912 x $1,060) $ 20 Total annual cost for initial M&I water supply $ 26,370 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN D ■ Annual payment D ■ ji(1+i)n-l) R ■ Amount to be repaid - $600,959 ((1+i)a-1J R i ■ Interest rate - 0 03253 n ■ Number of payments - 50 D ■ 03253 03253)49 (1+,0325 253)5 - 1 x $600'959 - 0 0394689 x $600'959 D ■ $23,719 3 Future M&I vater supply use Interest and amortization of cost of M&I vater supply features (see computation belov) = 72,159 Joint-use operation and maintenance costs equivalent to 6 888% of the actual point-use operation and maintenance costs, computed as follovs 34 824% = percent of joint-use 0&M cost allocated to M&I eater supply 19 780% = percent of M&I vater supply space to be used by the Sulphur River Municipal Water District (Future) (34 824% x 19780) = 6.888% of the actual point-use 0&M costs Estimated annual cost (.06888 x $116,2oo)= $ 8,004 Joint-use mayor capital replacement and sedimentation resurvey costs, vhen incurred, equivalent to 5 815% of the actual point-use mayor capital replacements and sedimentation resurvey costs computed as follovs 29 400% = percent point-use mayor capital replacement and sedimentation resurvey costs allocated to M&I vater supply 19 780% = percent of M&I vater supply space to be used by the Sulphur River Municipal Water District (Future) (29 400% x 19780) - 5 815% of the actual point-use mayor capital replacements and sedimentation resurvey costs Estimated annual cost ( 05815 x $1,060) = $ 61 Total a=usl cost for future M&I vater supply $ 80,225 Computation of Annual Payment for Interest and Amortization (Based on 50 payments,49 of which bear interest on the unpaid balance) ((l+i)n-1) D - 03253 (1+ 03253) 49 (l+ 03253) 0-1 D - $72,159 WHEREIN D - Annual payment R - Amount to be repaid - $1,828,271 i - Interest rate - 0 03253 n - Number of rayments = 50 x $1,828,271 ■ $1,828,271 x 0394689 4 EMIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT 4 TOTAL COST S 60095 Ip • • . _ . . . . . . - NUMBFR Of PAYMENTS 50 INTEREST RATE, PERCENT 0,03253 ANNUAL AMOUNT APPLICATION BALANCE PAYMENT Of - - - - - NUMBER . . . . . . PAYMENT . . . . . . . . INTERFST . . . . ALLOC COST ALLOC COST 1 23719.00 . . 0.00 . . . . . . . 23719,00 . 577240 00 2 23719,00 18777.61 4941.39 . 572298,61 3 23719.00 18616 87 5102,13 567196 48 4 23719.00 18450.90 526P,10 . 561928 38 5 23719,00 18279 53 5439.47 . 556488,91 6 23719,00 18102.58 5619.42 550872,49 7 8 23719.00 17919,88 5799.12 545073,37 9 23719.00 17731.23 5987,77 539085.60 23719,00 17536.45 6182.55 532903.05 10 23719.00 17335.33 6383.67 526519.38 11 23719.00 17127.67 6591.33 519928.05 12 23719.00 16913.25 6805.75 513122.30 13 23719.00 16691.86 7027.14 506095.16 14 23719.00 16463.27 7255,73 498839.43 15 23719.00 16227.24 7491.76 491347,67 16 23719.00 15983,53 7735.47 483612.20 17 23719,00 15731.90 7987,10 475625,10 SB 23719.00 15472.08 8246.02 467378,18 19 23719.00 15203.81 8515.19 458862.99 20 23719.00 14926.81 8792.19 450070,80 21 23719.00 14640.80 9078,20 440992.60 22 23719.00 14345,48 9373.52 431619.08 23 23719,00 14040.56 9678,44 421940.64 24 23719.00 13725.72 9993 28 411947.36 25 23719.00 13400.64 10318.36 401629,00 26 23719.00 13064,99 10654 01 390974.99 27 23719 00 12718,41 11000.59 379974.40 28 23719.00 12360.56 1135A.44 368615,96 29 23719.00 11991.07 11727.93 356888.03 30 23719,00 11609,56 12109.44 344778.59 31 23719.00 11215.64 12503,36 332275.23 32 23719.00 10808,91 12910.09 319365.14 33 23719.00 10388,94 13330.06 306035 08 34 23719.00 9955.32 13763,68 , 292271.40 35 23719.00 9507,58 14211.42 278059,98 36 23719.00 9045,29 14673.71 263386 27 37 23719,00 8567.45 15151.05 , 248235,22 38 23719.00 8075,09 15647,91 232591.31 39 23719.00 7566.19 16152 81 216438.50 40 23719.00 7040.74 16678.26 199760.24 41 23719.00 6498,20 17220.80 182539.44 42 23719.00 5938.00 17781.00 164758.44 43 23719.00 5359.59 18359.41 146399,03 44 23719.09 4762.36 40"6.64 12'4.2.39 45 23719.00 4145 70 19573.30 107869 09 46 47 23719.00 3508,98 20210 02 , 87659,07 48 23719.00 2A51954 20867 46 66791.61 23719.00 2172.73 21546.27 45245,34 49 23719.00 1471.83 22247.17 22998.17 50 23746.30 748.13 22998.17 0000 E aLIBIT C AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR FUTURE USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT 1 9TAI a9T.1; 8?827 1p _ _ JMBFti CIF PAYMENTS 50 IkTEREST RATE, PFRCENT 0.03253 ANNUAL AMOUNT APPLIC ATION PAYMENT OF NUMRER . . . . . . PAYMENT . . . . . . . INTEREST ALLOC COST 1 . 72154.00 . . . . . . . 0.00 . . . 72159,00 2 72159,00 57126.32 15032.68 3 72159.00 56637.31 15521.69 4 72159.00 56132 38 16026.62 5 72159.00 55611.04 16547,96 6 72159.00 55072.73 17086,27 7 72159.00 54516,92 17642.08 8 72159.00 53943.02 18215.98 9 72159.00 53350.45 18808.55 10 7?159.00 52738.61 19420.39 11 72159.00 52106.87 20052.13 12 72159.00 51454.57 ?0704.43 13 72159.00 50781.06 21377.94 14 72159.00 50085.63 ?2073.37 15 7?159.00 49367,59 22791.41 16 7?159.00 49626.18 23532.82 17 72159.00 47860.66 24298.34 18 72159.00 47070.23 25088.77 19 72159.00 46254,10 25904.90 20 72159.00 45411,41 26747.59 21 72159.00 44541.31 27617.69 22 72159.00 43642.01 28516 09 23 72159.00 42715.28 29443.72 ?4 72159.00 41757 47 30401.53 25 72159.00 40768,51 31390.49 26 72159.00 39747,18 32411.62 27 72159.00 38693.03 33465.97 28 72159.00 37604,38 34554.62 29 72159.00 36480.32 35678.68 30 72159.00 35319.69 36839,31 31 72159.00 34121.71 38037.69 32 72159.00 32883.94 39275.06 33 72159.00 31606.33 4055?,67 34 72159.00 30?87,15 41871.85 35 72159.00 28925.06 43233.94 36 72159.00 27518,66 44640.34 37 72159.00 26066,51 46092.49 38 72159.00 24567,12 47591,88 39 72159.00 23018,95 49140.05 40 72159.00 21420.43 50739.57 41 72159.00 19769,90 52389,10 42 72159.00 18065.68 54093.32 43 72159 00 16306,03 55852.97 44 12159 00 14489,13 5766:,87 45 72159.00 12613.13 59545.87 46 72159.00 10676.10 61482,90 47 7?159.00 8676.06 63482.94 48 72159,00 6610.96 65548.04 49 72159.00 4478.69 67680.31 50 72275.55 2277,05 69998,50 BALANCE ALLOC COST 1756112,00 1741079.32 1725557,63 1709531.01 1692983.05 1675896.78 1658254.70 1640038,72 1621230,17 1601809.78 1581757,65 1561053,22 1539675,28 1517601.91 1494810.50 1471277,68 1446979,34 1421890.57 1395985,67 1369238.08 1341620,39 1313104 30 12AI660 98 1253259.05 1221868,56 1189456.94 1155990.97 1121436.35 1085757.67 1048918.36 1010880.67 971605,61 931052.94 889181.09 845947,15 801306.81 755214.32 707622,44 658482,39 607743.82 555354.72 501261.40 445408,43 3877'08.56 328192.69 266709,79 203226.85 137678.81 69998,50 0 ,00 h` Cont cL No DACW29-68-A-0101 Supplemental Agreemoic No 1 SUPPLEMENTAL AGREEMENT NO 1 BETWEEN THE UNITED STATES OF AME%ICA AND THE SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS FOR WATER STORAGE SPACE IN COOPER RESERVOIR ~ day of Aa Tb is Supplemental Agreement No 1, entered into thie/ 4 , 197Z- by and between the UNITED STATES OF AMEPICA (hereinafter le the Government) represented by the contracting officer executing this agreement, and the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS, an agency of the State of Texas, with its principal office in the City of Commerce, Texas (harei-iafter tailed the District), WITNESSETH THAT WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0101 with the District for the purchase of water supply storage space in Cooper Reservoir, and WHEREAS, on 29 March 1968, the Government entered into Contract No DACW29-68-A-0102 with the TEXAS WATER DEVELOPMENT BOARD, an agency of the State of Texas existing under the laws of Texas (hereinafter called the Board), and WHEREAS, at the time the Board entered into Contract No DACW-29-68-A-0102, the Board had intended to construct the Sulphur Bluff and Naples Reservoirs (features of the Texas Water Plan) downstream of Cooper Reservoir, and WHEREAS, construction of these downstream reservoirs would have inundated areas now protected by existing channel and levee improvements already constructed under the Project as well as areas to be protected by future levee and channel improvements authorized to be constructed under the Project, and would have eliminated certain levee and channel improvements authorized for construction under the Project, and WHEREAS, the construction of these downstream reservoirs would operate to reduce the benefits allocable to the purpose of flood control in the Project, and thus increase the costs allocated to the purpose of the municipal and industrial water supply over those allccable to such purpose in the Project as authorized, and WHEREAS, the Board in a resolution dated 27 April 1966 indicated its willingness to bear the additional costs allocated to the purpose of municipal and industrial water supply in Cooper Reservoir resulting from the construction and operation of the downstream reservoirs, to the and that costs to purchasers of municipal and industrial water supply storage space in Cooper Reservoir would be the same both with and without construction of those teetures of the Texas Water Plan, ari Contract No DACW29-68-A-0101 Supplemental Agreement No 1 WHEREAS, an earlier plan for development of Cooper Reservoir included storage space in the amount of 32,100 acre-feet for the purpose of water quality control, and WHEREAS, a minimum downstream release of 5 c f a from Cooper Reservoir will be sufficient to satisfy the water quality needs for the Sulphur River, thus making unnecessary the provision of storage space in Cooper Reservoir for water quality control, and such minimum release being assured by the State of Texas in accordance with state standards as approved by the Federal Water Pollution Control Administration (whose functions were incorporated into the authority of the Environmental Protection Agency), and WHEREAS, the space previously reserved for water quality control has been reassigned, in equal amounts, to the North Texas Municipal Water District of Texas and to the City of Irving by the Texas Water Rights Commission, and WHEREAS, the North Texas Municipal Water District of Texas and the City of Irving have previously agreed to purchase the above space, and WHEREAS, the elimination of water quality control as a project purpose would operate to increase the costs allocated to the purpose of municipal and industrial water supply, both as to total cost and cost per unit of storage space, and WHEREAS, the Board had previously expressed its intention that as a result of the Board's financial involvement in the project, the unit cost to be paid by the purchasers of municipal and industrial water supply storage space in Cooper Reservoir should be based on an alloca- tion of project costs with water quality control storage in the amount of 32,100 acre-feet included as a project purpose, and WHEREAS, in accordance with the terms and conditions expressed in Contract No DAC1429-68-A-0102, the Board had obligated itself to pay the Government the additional costs allocated to municipal and indus- trial water supply in the Cooper Reservoir, inclusive of the additional joint-use annual cost for construction, the additional point-use cost for operation and maintenance, and the additional cost for replacements and sedimentation resurveys, when incurred, resulting from modification of the Project in the interest of the Sulphur Bluff Reservoir and Naples Reservoir features of the Texas Water Plan, and resulting from the elimination of water quality control as a project purpose, and 0 2 % Contract Nu DACW29-68-A-0101 Supplemental Agreement No 1 WHEREAS, by letter dated 22 March 1973 the Board advised the Government that construction of the Sulphur Bluff and Naples Reservoirs will not be likely in the foreseeable future, and accordingly, that certain downstream levee and channel improvements that previously would have been affected or eliminated by the implementation of the Sulphur Bluff and Naples Reservoirs should therefore be reinstated into the formulation of project plans, that the fiscal responsibility of the purchasers of water supply storage space should be realined to reflect differences in costs due to the elimination of the downstream reservoirs from further considerations in the development of the project, that the financial responsibility should be further realined such that the pur- chasers of municipal and industrial water supply storage space assume the increased costs to water supply which resulted from the elimination of water quality control as a project purpose, and WHEREAS, in essence, the Board desires to withdraw as a cost- sharing cosponsor in the development of the Project with the result that all of its fiscal responsibilities in connection with the development of the Texas Water Plan and its fiscal responsibilities in connection with the elimination of water quality control as a project purpose, in so far as these obligations relate to the water supply purpose of the Project, be redistributed to the purchasers of water supply storage space in Cooper Reservoir, and WHEREAS, the remaining purchasers of water supply storage space have indicated a willingness to assume all of the fiscal responsibil- ities occasioned by the withdrawal of the Board as described above, and WHEREAS, the District has indicated its willingness to assume a proportional share of these fiscal responsibilities in accordance with the terms and conditions set forth in the basic contract as amended by this supplemental agreement, and WHEREAS, because it is the policy of Congress that the "Federal Government should participate and cooperate with states and local interests in developing such water supplies" as proclaimed in Sec 301(a) of the Water Supply Act of 1958, Public Law 85-500, approved 3 July 1958, it is deemed advisable for the Government to incorporate into the basic contract the above realinement of fiscal responsibilities as they relate to the District NOW THEREFORE, the parties hereto do mutually agree to amend Contract No DACW29-68-A-0101 in the following manner and the basic contract is so amended to read as follows, to wit i Contract No DACN29-68-A-0101 Supplemental Agreement No 1 1 Subparagraphs a, a(1), a(2), a(3), b, b(1), b(2), and b(3) of Article 5 of the basic: contract are deleted and the following substituted therefor "a In consideration of the Government's providing the aforesaid storage space of 17,750 acre-feet for initial water supply use by the District, it is agreed that the District shall pay the following sums to the Government "(1) One million six hundred and twenty-four thousand two hundred and forty-five dollars ($1,624,245), which is the estimated cost, including interest during construction, of providing the storage space for initial water supply use in payments in the amount of sixty-four thousand one hundred and seven dollars ($64,107) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance. The aforesaid payments are more specifically set forth in Exhibit "g" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made Payments there- after shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract "(2) Two and four hundred thirty-five thousandths percent (2 435X) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be four thousand five hundred and eighty-one dollars ($4,581) will be due and payable within thirty (30) days following the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to two and four hundred thirty- five thousandths percent (2 435%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and two and four hundred thirty-five thousandths percent (2 435/) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be mdintained by the Contracting vrricer In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense 4 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 "(3) Two and forty-nine thousandths percent (2 049%) of the cost of sedimentation resurveys and joint-use major capital replacements when incurred. "b In consideration of the Government's providing the aforesaid storage apace of 54,000 acre-feet for future water supply use by the District, it is agreed that the District shall pay the followins sums to the Government. "(1) Four million nine hundred and forty-one thousand one hundred and eighty-three dolalrs ($4,941,183), which is the estimated cost, including interest during construction, of providing the storage space for future water supply use in payments in the amount of one hundred and ninety-five thousand and twenty-three dollars ($195,023) Except for the first payment, which shall be applied solely to the reduction of the principal, all payments shall include accrued interest at the rate of three and two hundred fifty-three thousandths percent (3 253%) per annum on the unpaid balance. The aforesaid payments are more specifically set forth in Exhibit "C" attached hereto and made a part hereof, and the last payment shall be adjusted upward or downward, when due, to assure the repayment of all capital costs by the end of 50 years The first payment shall be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Payments thereafter shall be due and payable within thirty (30) days of the yearly anniversary date of the first payment under this contract "(2) Seven and four hundred and seven thousandths percent (7 407%) of the annual experienced joint-use cost of ordinary operation and maintenance of the Project The first payment estimated to be thirteen thousand nine hundred and thirty-seven dollars ($13,937) will be due and payable within thirty (30) days following the tenth anniversary of the date the District is notified that deliberate impoundment has been made Annual payments thereafter will be due and payable in advance on the anniversary date of deliberate impoundment and will be equal to seven and four hundred and seven thousandths percent (7 407%) of the actual experienced joint-use cost of ordinary operation and maintenance of the preceding Government fiscal year The second payment shall be increased or decreased in an amount to reflect the difference between the first payment and seven and four hundred and seven thousandths percent (7 407%) of the actual experienced joint-use cost of ordinary operation and maintenance for the preceding fiscal year Records of cost of operation and maintenance of the Project shall be available for inspection and examination by the District The extent of operation and maintenance of the Project shall be determined by the Contracting Officer and all records and accounting shall be maintained by the Contracting Officer 5 Conttuct ho DACW29-68-A-0101 Supplemental Agreement No 1 In the event the District should require additional operation and maintenance of the water supply storage over and above that deemed necessary by the Contracting Officer, the District shall bear the entire cost of such additional expense. "(3) Six and two hundred thirty-five thousandths percent (6 2355) of the coat of sedimentation resurvey& and joint-use major capital replacements when incurred of 2. Exhibits At B, and C of the basic contract are replaced by Exhibits At B, and C, attached hereto bearing the Contract No. DACW29-68-A-0101, Supplemental Agreement No 1 3 This supplemental agreement shall be subject to the written approval of the Secretary of the Army, and shall not be binding until so approved IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No 1 as of the day and year first above written APPROVED THE UNITED STATES OF AMERICA By M~ A Secretary o ch Army (Co cling Officer) OXil A.1.1 rl (.10111 of flit Army EARLY J RUSH III DATE _ 1Liti~l t ~r~e1 4il~-11 lie/ Colonel, CE SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS IL (L L_ (Pr sidenc) (Post Office ad ress) ATTEST Secretary; Sulphur River Municipal Water District of Texas APPROVED AS TO FORM Attorney, Sulphur River Municipal Water Dlstrigt .of Texas Contract No DACW29-68-A-0101 Supplemental Agreement No 1 I,fiTh ['a')f (C (y 1~o7- Atbrtify that I am the Secretary of the SULPHUR RIVER MUNICIPAL WATER ISTRICT F TEXAS herein, a body politic and corporate, that t2-i ! -lw,7who signed this contract on behalf of the Dfy+ict was then PRESIDENT of said SULPHUR RIVER MUNICIPAL WATER DISTRTCT OF TEXAS, that said contract was duly signed for and on behalf of the SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS by authority of its governing body and is within the scope of $to legal powers. IN WITNESS WHEREOF, I have hereunto affixed my hand and the peal of said SULPHUR RIVER MUNICIPAL WATER DISTRICT OF TEXAS this day of 12ZL~/.n-o 19)Z) ,rte: Secretary, Sulphur River Muni c pal Water District of Texas CORFORAT., SFAL Contract No DACW29-68-A-0101 Supplemental Agreement No 1 EXHIBIT A Contract No DACW29-68-A-0101 Supplemental Agreement No 1 EXHIBIT A I - Reservoir Storages Water supply storage- Municipal water supply Initial use Sulphur River Municipal Water District Future use Sulphur River Municipal Water District Other M&I water supply users Percent of M&I water Usable supply space Elevation storage (ft m s 1 ) (ac-ft) 6 502 19,780 73 718 Total water supply storage 100 000 415 5-440 0 Flood control storage 440 0-446 2 Reservoir storage (1) Storage remaining after 100 years of sedimentation II - Allocation of Estimated Construction Cost M&I water supply for initial use of Sulphur River Municipal Water District M&I water supply for future use of Sulphur River Municipal Water District M&I water supply for use of others Subtotal - M&I water supply Flood Control (non-reimbursable) Recreation (non-reimbursable) Total 17,750 54,000 201,250 273,000 131,400 404,400 $ 1,525,027 4,639,347 17.290.364 $23,454,738 27,602,183 12.653.079 $63,710,000 A-1 Contract No DACW29-68-A-0101 Supplemontal Agreement No 1 III - Initial M&I water supply use 6 5022 of cost allocated to M&I water supply (0 06502 x $23,454,736) Interest during construction (3 2532 x h of 4-year period) Total Future M&I water supply use 19.7802 of cost allocated to M&I water supply (0 19780 x $23,454,738) Interest during construction (3 2532 x h of 4-year period) Total $1,525,027 99,218 $1,624,245 $4,639,347 301,836 $4,941,183 IV - Allocation of Estimated Operation, Maintenance, and Major Replacement Cost SRMWD SRMWD M&I M&I Initial Future Water Water Supply Supply $/yr $/yr Oper 6 Maint Specific cost 0 0 Joint-use cost 4,581 13,937 Total 4,581 13,937 Major replacements Specific cost 0 0 Joint-use cost 65 198 Total 65 198 Other M&I water Flood supply Control Rec Total $/yr $/yr $/yr. T/5 _r 0 81,939 94,893 176,832 51,946 73,229 44,475 188,168 51,946 155,168 139,368 365,000 0 0 55,819 55,819 740 1,702 476 3,181 740 1,702 56,295 59,000 A-2 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 V - Initial M&I water supply use Interest and amortization of cost of M&I water supply features (see computation below) S 64,107 Joint-use operation and maintenance costs equivalent to 2.435% of the actual joint use operation and maintenance costs, computed as follows 37.44756% - percent of joint-use 06M cost allocated to M&I water supply 6 502% a percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (37 44756% x 06502 a 2 435% of the actual joint-use 06M costs Estimated annual cost ( 02435 x $188,168) - $ 4,581 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 2 049% of the actual joint-use major capital replacements and sedimentation resurvey costs, computed as follows 31 51961 m percent joint-use major capital replace- ment and sedimentation resurvey costs allocated to M&I water supply 6 502% - percent M&I water supply space to be used by the Sulphur River Municipal Water District (Initial) (31 51961% x 06502) - 2 049 of the actual joint-use major capital replacements and sedimentation resurvey costs Estimated annual cost ( 02049 x $3,181) $ 65 Total annual cost for initial M&I water supply $ 68,753 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN (i(1+i)n-1) D Annual payment D ((1+i)n-1) R R Amount to be repaid $1,624,245 1 - Interest rate a 0 03253 n Number of payments - 50 D 03253 (1+ 03253)49 x $1,624,245 (l+ 03253) -1 0 0394689 x $1,624,245 D - $64,107 A-3 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 Future M&I water supply use Interest and amortization of cost of M&I water supply features (Lee computation below) $195,023 Joint-use operation and maintenance costs equivalent to 7.407% of the actual joint-use operation and maintenance costs, computed as follows 37.44756% - percent of joint-use 06M cost allocated to M&I water supply 19.780% - percent of M&I water supply space to be used by the Sulphur River Municipal Water District (future) (37.44756% x .19780) - 7 407% of the actual joint-use 06M costs Estimated annual cost (.07407 x $188,168) $ 13,937 Joint-use major capital replacement and sedimentation resurvey costs, when incurred, equivalent to 6 235% of the actual joint-use major capital replacements and sedimentation resurvey costs computed as follows 31 51961% percent joint-use major capital replacement and sedimentation resurvey costs allocated to M&I water supply 19.780% percent of M&I water supply space to be used by the Sulphur River Municipal Water District (future) (31 51961% x 19780) - 6 235 of the actual joint-use major capital replacements and sedimenta- tion resurvey costs Estimated annual cost ( 06235 x $3,181) - $ 198 Total annual cost for future M&I water supply $209,158 Computation of Annual Payment for Interest and Amortization (Based on 50 payments, 49 of which bear interest on the unpaid balance) WHEREIN n-1 D R D - Annual payment ((1+1)n-1) R - Amount to be repaid - $4,941,183 i - Interest rate w 0 03253 n a Number of payments - 50 D w 03253 (1+ 0325309 x $4,941,183 a $4,941,183 x 0394689 (1+ 03253) -10 -1 D - $195,023 , A-4 Contract No DACW29-68-A-0101 Supplemental Agreement No 1 EXHIBIT B AMORTIZATION SCHEDULE COST OF WATER SUPPLY FOR INITIAL USE BY THE SULPHUR RIVER MUNICIPAL WATER DISTRICT Contr^ DACU29-68-A-0101 Eupplk ntal Agreement No 1 TfIT11 1,.1rI A,'4,'45 on LXNIBIT B 1411148 rl: Or N11r1'IL4I.) ,n IVTFDEpI ItAlr* I j*,6Lgj 000J95J A4.4JAL AIOOUVI AeftILAIIj UALA t.L nAY%IdN7 U1 NUIMI'il,k MAYA6.14 r IN I ErttS r ALLUL LJ4I ALLUI, LJa I 1 64107.27 00 64107.2/ I5bU1Jl•/J Y. 641111.17 50/bl•9d IJJ55.YY ID467d1•75 3 64101.97 50J1 b.H1 IJIYU.46 15JLYY1.9d 4 64107.1217 4Y86U.91 14dJY0 U7 151d/59.96 5 64107.97 4Y4U5901 I4/U2.26 15U4U41.Y2 6 641U1•2/ 4d9L6.15 151dU.53 14dd8b9.4d 1 64107.27 4d4Jd•Y2 Ibb74 3D 141JIY5•U8 14 641111.97 47923.04 16184.94 1457UIO•d4 9 64107.27 4/JY6.56 16110.71 144010U.14 10 64107.27 4059.96 1/954.31 1423045.83 11 6411)1.17 46991.68 17615.59 I4UDdJO.9J 12 64107.27 45710.14 18J95.IJ 13d68J5.11 13 64101.27 4blIJ.75 18993.5) IJb7d41.o8 14 64101.91 44495.") 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I Ily4.r4b 1 ^d)!n bJ I dk$$S II 6J SII 1 Ibr I" I .t( 1.14" 1 / I nhn 11 r)J u ASSJRM'CE OF CG'LIANCE WITP Th% DEPARrj MJT OF DEFENSE DIRECTIVE U7 DER TITLU VI OF THE CIVIL RIGHTS ACT Or 1964 SULPHUR RIVER Wit+ICIPAL WATER DISTRICT (hereinafter called the "District") HDRZ?r AGREES THAT it will conply with title VI of the Civil Riahts Act of 1964 (P L 88-352) and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 300, issued as Department of Defense Directive 5500 11, December 28, 19640 issued pursuant to that title, to the end that, in accordance with title VI of that Act and the Directive, no person in the United States shall, on the ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any p-ogram or activity in connection with the collection, distribution, and use of water, for municipal and industrial purposes, from storage space in the authorized Cooper Reservoir, which reservoir is to be constructed by the U S Array Corps of Engineers and in connection with which the District will receive financial assistance under the Water Supply Act of 1958, 43 United States Coue 390b, and HEREBY GIVES ASSLRA.%CE THAT it will immediately tare army measures necessary to effectuate this agreement If any real property or structure thereon is provided or improved with the aid of Feaeral financial assistance exteraea to the District by the Dep =*tment of the Army, assurance shad obligate the District, or in the rase of any transfer of such property, any transferee, for the period du-ing which the real property or structure is used for anotner purpose involving the provision of sinilar services or oene°its If any personal property is so proviaed, this assurance shall obligate the District for the period during which it retains ou-nership or possession of the property In all other cases, this assurance shall obligate the District for the period during vhicn the Federal financial assistance is extended to it by the Departmen. of the Army THIS ASSURANCE is given in consiaeration of and for the purpose of obtainiag any and all Federal grants, loans, contracts, property, discounts or other Feaeral financial assistance extended after the date hereon to the District by the Department, incluaing installment payments after such data on account of ar-angements for Federal financial assistance which were a?proved before sLc~ date The District recognizes and agrees that such Feaeral financial assistance will be extended in reliance on the representations and agreements made in this assurance, and that the United States shall have the right to seek 1 ~ J judicaal enforcement of this 4asurance This assurance is binding on the District, it3 31rcccazors, transferees, and assignees, and the ) per4on or persons v;ose 31gnatvures appear below are authorized to sign this assurance on beaalf of the District. Dated 12 April 1967 SULPHUR RIVER 1ALMICIPAL WATER DISTRICT (District) ` (President, Chairman of Boafd, or coclparable authorized official) 1910 Morros St. 1 • Commerce, Texts _ ]istr.ct's mailing address .r , • \ r ,r • 2