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HomeMy WebLinkAbout01-28-1976 I]~ p.Ylr'.'flu ry t 111,,. 1 A S17FED4 la Jgaoa .1976 M r j 4 ?!r. James W. White City Manager of Denton Municipal Building r,. Denton, Texas 76201 i~ Dear Mr. Whites i am iaclosing dltatt,lfy$*t vs o}t tootraeks ~1~ ,~q " for your use in preparing for the continuing Taxes Vater R~i G`oitirdission ! Clearing tentatively set for 17 February 1976. I have included the latest i draft contracts between the Government and the cities of Denton and Dallas ! in accordance with our telerhone conversation on 20 January 1976. The three sets of contracts inclosed show the submissions in January, June, and November 1973 and the changes associated with sack. f I appreciate your update concerning the timetable of events necessary to 1 move Aubrey Lake to a construction start. If I can be of further assistance to you, please call on sae. Sincerely yours. Y ii 3 Intl RAY L. BROGLEY, JR. As stated Chief, Program Development Braneh i rr r 1i 1 ~.w rvr,4 I~IY n.. v1~ r L 1~.M ' Y y iur♦ i i. ':Y.I / .i i ` , i ~ Y i +,c r y ` DEPARTMENT OF THE ARMY IL; FORT WORTH DISTRICT. CORPS OF ENGINEERS P. O. BOX 17300 i j FO.T7 WORTH. TEXAS 76102 ~i7`n1TJ~ M. SWFED-PC '16 January 1975 i SUBJECT: Aubrey Lake - Additional Data for Design Memorandum No. 2 - General and Local Interests Participation Division Fnglneer, Southwestern E i 1. Refer to: . Letter SWFED-PC dated 25 September 1974, subject: Aubrev Lake, a [bsf Memorandum No. 2 - General; Project Formulation, Supplemeltal Information. b. Letter SWFED-PC dated 3 October 1971+, subject: Allocation of three Indorsementse with ' Costs of Improved Housing Standards, 2. Inclosed are a letter of assurances of cooperation In subject project frog the city of Dallas and a letter from the Texas Parks and Wildlife f Department which are forwarded for inclusion In exhibits 4 and 5, respectively, of :he report subnitted by reference le, I 3. We understand that these letters will provide the remaining information I needed by the Office, Chief of Engineers to approve the Aubrey Lake Genera Design Memorandum and the project cost allocation. 4, Inclosed also are draft copies of the water supply and recreat'onal devalcpment contracts .olth the cities of Dallas and Denton for your review iii and comments. These drafts are base In final project data In the rto the submitted by reference ia. They titles for execution when approval of the General Design Memorandum is recelvei. 54 The water supply contracts have three deviations from the standard format directed by ECI A-X13.3, ER 1180-1-1. For ready location, these are the first copy of Tasterisks In he deviations h are margins of marked r 3 d and pencil foilows: a: Article 5s(2)• Annual payments are mare due the inniv operational date of notification by the Contracting Officer that the project 1 ' SU8JECTC 16 January 1975 1 SUBJECT: Aubrey Lake - Additional Data for Design Memorandum No. 2 - General and Local Interests Participation i for water supply purposes in lieu of on the anniversary date of the first payment. We feel this wording will avoid the possibility of a delinquent first payment raising a moot question regarding the proper due date. b. In Article 5b, we feel that the costs of project sedimentation re- surveys should also be shared by the water supply function of the project, and this provision has been included. c. in Article 5c, the requirement for payment of operation and maintenance charges covers a general annual period, and no due date is ! specified. Contract administration problems will be avoided if collection terms are more specific. We have added language which we feel will make the agreement more clearly understood by both parties. The recreational development contracts are in accordance with the standard f for.nat of ECI A-311. The guidance in reference lb has been followed In j determining project costs to be reimbursed by local Interests as shown in I the Inclosed contracts. 6. We recommend expedited approval of the Aubrey Lake GDM and the contract deviations presented above so that execution and approval of the contracts I ) can be obtained and a construction start achieved in FY 1975. FOR THE DISTRICT ENGINEER: i JLJ 6 Inci C1. I 1. Ltr assurances-Dallas (11 cys) *0ePutVDIss 2. Ltr Texas Parks b Wildlife t Eng ineer Dept (11 cys) 3, w/s contr draft-Dallas (quint) 14. w/s contr draft-Denton (quint) 5. Rec day contr draft-Dallas (quint) 6. Rec dev contr draft Denton (quint) Copy furnished: HQDA (DAEN-CWE-B) w 20 cys of inclosures I and 2 _ 2 - 1 Contract No. DACW63-75-C-0000 DRAFT CONTRACT I',FlIWI:L'N TIlr. L'I41.7'I:D STATES Or AMLRICA AND 111E 4'ITY OF DAM AS, TJLvAS rOR WATER STORAGE SPACE IN tIBKEY AIM MISVILLE LAKF,S, TEXAS k THIS CONTRACT, entered into this day of between the United Stat(c of America (hereinafter called theractGov1975, b and represented by< the Contracting Officer tr.ecuCing this cont e, rnandmenthet), City of Dallas, Dallan County, Texas (hereinafter called the City), WITNESSETH MAT: t VHUF.AS, the River and Harbor Act of 1965 (79 Stat. 1091) authorize) the construction, operation, and maintenance of Aubrey Lake (hereinafter called the Project) on the Elio Fork of the Trinity River in the State of Texas] and WHEREAS, the Project will include storage for flood control which will permit the transfer of flood control storage to the Project from Lewisville Lake (immediately downstream from the Project) and make available in I Lewisville Lake an equivalent amount of storage for additional water supply f for municipal and industrial uses; and WHEREAS, the City desires to contract with the Government for the use of storage included in the Project and the additional storage to be made available in Lewisville Lake for municipal and industrial water supply, and ' Sur payment of the cost thereof in accordance with the provisions of the Hater Supply Act of 1958, as amended (43 U,S.C. 390b); and r ? WHEREAS, the City is empowered so to contract with the Governmen is vested with all the necessary powers for accomplishment of th e t and of this contract, including those required by Section 221 of theFlood oControl Act of 1970 (42 U.S,C. 19624-5b); NOW, THEREFORE, the Government and the City agree as followst ARTICLE 1, Water storage svoice. as Project construction. Vie Government, subject to the directions of Federal taw and any }.imitations imposed thereby, shall design and construct the Project so as to include therein space for the storage of water by the City and space for the storage of floodwaters which will permit the reallocation of flood control storage in Lewisville Lake to municipal and industrial water supply storage, b. ' Right a of the City, 74.0 (1) The City shall have the right to utilize ;a) an undivided percent (estimated to contain 5:40400 acre-feet after adjustment for r y 1 , l i~ sediment deposits) of the total storage space in the Project bctvLL-n elevations 550,0 feet above ncan sca levc"1•ond 632.5 fce-L above mo.m so-. Ievel, which total storage spree is estt.aated to cuntain 749,200 acre-feet after adjustment for sediment deposits, and (b) an undivided 74.0 percent (estimated to contain 102,100 acre-feet after adjustment for sediment deposits) of the total storage space in Lewisville Lake between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea Ievel, which total storage apace is estimated to contain 136,000 acre-feet after 1djUSLmont for sediment deposits. The storage space in Lewisville: Lake is to be used to impound water ( for present demand or need for municipal and industrial water supply; and the storage space in the Project is to be used to impound water for present and anticipated future demcatds or needs far municipal and industrial water supply. In the Project, 50 percent (an estimated 277,200 acre-feet) of the space which the City has a right to utilize is for present use water storage, 50 percent au and { estimated 277,200 acre-feet) is for future use water storage. City lakes, (2) The maderbyhtheoCovwithdraw ernmentwthroughothehoutlet works in the dams, subject to the provisions of Article 1c and the aforesaid storage spaces will provide; and shall have theright htoextent construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose of diversions or withdrawals, subject to the approval of the Contracting Officer as to design and location. The grant of easements for right-of-way across, in, and upon land of the Government at the Project and at Lewisville Lake shall be by a separate instrument in a form satisfactory to, the Secretary of the Army, without additional cost to the City, under the authority of and in accordance with the provisions of 10 U.S.C. 2669. Subject to the conditions of such easements, the City shall have the right to use so much of the Project and Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges U herein granted. c. Rights reserved. The Government reserves the right to lower the water in the Project to elevation 632.5 feet above mean sea level and to lower the water in Lewisville Lake to elevation 522.0 feet above mean sea level during such periods of time as is deemed necessary, in its solo discretion, for flood ccntrol purposes. The Government further reserves the right to take such measures as may be necessary in the operation of the Project and Lewisville Lake to preserve life or property. d. Quality or availability of water. The City recognizes that this contract provides storage space for raw water only. The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor, or for the treatment of water. ARTICLE 2. Regulation of and right to use-of water. The regulation of the use of water withdrawn or released from the aforesaid storagu space shall be the sole responsibility of the City. The City has the full responsibility to acquire in accordance with state laws and regulations and, if necessary, to establish or defend, any and all water rights needed for utilization of 2 sear k the storages provided under thin: cuntracl. The'Sovernment shall non Ue responsible for diversions by others, nor will it become a party to any controversies involving the use of the storage space; by the City except as such controversies may affect the operations, of Lhc Government, ARTICLE 3, Operation and mainu-nince. The Government shall operate and maSninin the Project and Lewlsvi2lc Luke and the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5, The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the diversion or vitlidrawal of water from the two lakes, and shall bear all costs of construction, operation, and maintenance of such inetsllstions and facilities, I ARTICLE 4, Measurement of withdrawala and releases, The City agrees to furnish and install, without cost to the Government, suitable meters or measuring devices satisfactory to the Contracting Officer for the measurerient of water which is withdrawn from the Project or Lewisville Lake by any means other than through the Oroject or Lewisville Lake outlet works. The City shall furnish to the Covernment monthly statements of all such withdrawals. Releases from the water supply storage spaces through the Project or Lewisville Lake outlet works shall be made in accordance with written schedules furnished by the City and approved by the Contracting Officer and shall be subjact to Article lc. The measure of all such releases shall be by means of a rating curve of the outlet works, or by such other suitable means as may be agreed upon prior to use rf the water supply storage space or spaces. I ARTICLE 5. Payments. In consideration of the right to utilize the aforesaid storage spaces in the Project and Lewisvillt Lake for municipal and { industrial water supply purposes, the City shall pay t:.e following sums to the Covernment: a. Project investment coats. l) Interest onthe~ unpaid balanceeasyheto the reinafter especified, the amoun"s n stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amo mt of the constructio., costs, including interest durinf; con- struction, allocated to the water storage rights acquired by the City under this contract. The interest rate to be used for purposes of computing int-:rest, during construction and interest on the unpaid balance will 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 set forth in the Water Supply ;,:t of 1958, as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1975) is 4.371 percent. The City shall repays 74 percent of the construction cost of specific water supply facilities, estimated at $ 107,300 $3.143 percent of the total Project joint use construction cost, estimated at $65,3830600 Interest during construction, estimated at $ 59930,600. , Total estimated amount of Project investment cost allocated to 74 percent of the water supply $72,427,300 3 9 ' is A + f V. F(qp 7 77 ( The Project indicated In in Article lb inas vestment cost allocated to the storage spaces (1) being provided for present demand 14 currently estimated at $37140312500 on the basin of the costs prco-,ented in E:•:hi}it A of this contract, The amount of the Project iuvestrcent cost allocated to the storages for present demand shall be paid in 50 consecutive annual pay%cat:+, the first of which shall be due and payable within 30 days after thn City is notified by the Contracting Officer that the Project is coripletcd and operational for water supply purposes. Annual palanents thereafter will be due and payable on the anniversary date of said notification by tl,e Contracting. Officer. Yxcept for the first payment, which will be applied solely to the retirement of principal, all interest on the unpaid balance at the rate provided above. inThedlastcanrual payment shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storages for present demand within 50 years. (3) The amount of the Project investment cost allocated to the remaining portion of the storage space that currently estimated at $35,ulB,250 on the basic ofdthefcoststpresented In Exhibit A. No principal or interest rayment with respect to this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply unless all or a portion of such storage is used during this period, j7he { amount to be paid for any portion of such storage which is used shall be determined by multiplying the percentage of the total storage for future water supply which is placed in use by the total amount of the Project investment cost allocated to future water supply, Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water su 1 r i, from the tenth (10th) year f g pp y hich is not being used the water supply purposes until theotime when dsuch tstorageeis first~~used. The or City may at its option pay the interest cs it becomes duo or allow the interest to accumulate until the storage is used. If this er the interest will be compounded annually and addedltotthepoptinc pal is exercised, When any portion of the storage for future water supply isused amount, both principal and interest for the portion used must be started,pand thein amount of the Project investment cost allocated thereto, with interest m the unpaid balance as provided above, shall be-paid within the life of the.Project in not to exceed 50 consecutive annual payments beginning within 30 days after' the data of first use of such portion. (4) An estimated schedule of annual payments for the storages provided for presctt demand is attached as Exhibit B of this contract. The annual payments as provided therein shall be made until the actual construction costs of the Project are determined. When the actual construction costs of the Project are degermined, the annual payments due thereafter w'll be adjusted to reflect. any increase or decrease in the actual costs, including interest during construction, from the estimated amounts shown in Lch'bit A. Payment schedules for the storage provided for future water supply ;remands will be furnished by the Contracting Officer when use of such storage is started, and if based or. estimated coats will be subject to revision when actual coats are known. 4 l „IlY1>. YllN f • (5) If the city shall fail to mace any of the aforesaid payment% when due, then, the overdue payments shall bear interest compounded annually at the rate provided above until paid. The remount charged on payrenLs overdun for a period of less than one year ;,hall be figured on a monthly bv5ia. For example, if the payment is made within the first montli after being cverduc (31 to 60 days after the anniversary date), one month'.- interest shall be charged. Thip provision shall not be construed as giving the City it choice of either making payments when due or paying, interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might result from any default by the City. (6) The City shall have the right at any lime it so elects to prepay the indebtedness under this Article 5a, in whole or in part, with accrued interest thereon to the date of such prepayment, i b. M_a.or ca ital replacement costs and sedimentation resurveys costs. The City will be required to pay 74 percent of the costs for any major capital replacement of specific water supply facilities at the Project. In addition, 1 the City shall pay to the Government 24.315 percent of the costs of joint use major capital replacement items at the Project until such tine as the storage for future water supply is used. As the storage provided for future water it supply demands is used, the share of the joint use major capital replacement items costs, which the City will be required to pay in addition to the major I capital replacement costs of the specific water supply facilities, will be increased commensurate with the percentage of the water supply storage being used up to a total of 48.629 percent of such costs, The City will be required to pay 27.446 percent of the cost of sedimentation resurveys at the Project I until such time as the storage for future water supply is used. As the J storage provided for future water supply demands is used, the share of the sedimentation resurveys cost which the City will be re-,oired to pay will be increased commensurate with the percentage of the water supply storage being used up to a total of 54.891 percent of such coats. The City will be required to pay 11.115 percent of the cost of sedimentation resurvey9 at Lewisville Lase. Payment shall be made either in lump sum or annually ttith intere.;t on the unpaid balance. If paid annually, the first payment sh,,ll be made with the first annual payment on the Project -investment cost be.oming due after the dote said major capital replacement costs or sedimentation resurveys costs are incurred. e. Annual operation and maintenance costs. The City will be required to pay 74 percent of the annual experienced operation and maintenance costa of specific water supply facilities at the Project. In addition, the City shall . pay 21.195 percent of the annual experienced joint use operation and maintenance costs of the Project until such time as the storage for future water supply is used. As the storage provided for future water supply 4emande is used the share of the annual experienced joint use operation and mainte- nanca costs, which the City will be required to pay in addition to the operation and maintenance costs of tha specific water supply facilities, will be increased commensurate with the percentage of the water supply storage being used, up to a total of 42.389 percent of such costs. The City will be ~ S 1 n yy~~ PWIY„ n r pq i 1 required to pay 5.324cl arpercusient of the total annual _xpuricnced operation aitd maintenance costs, ve rf the operation anti m~intcnance costs for Jand management and public utilization, of Lewisville Lalte for the additional water supply storage therein, The first payment for operation and S1aJIILe- nonce costs will be due and payable in advance within 30 days nftcr the Contracting Officer notifies the City that the Project i:a corpleted and operational for water supply purposes. The first payment will be for the 1 period beginning on the date the Project is operational frr water supply purposes and ending on 30 September following, and will amount to the pro rata share for this period of the estimated initial annual payment of $65,564. The second payment, for the ensuing Government fiscal year ending 30 September, in the estimated amount of $65,564, will be du? and payable is advance on 1 October following the date the project is operational for water supply purposes. Annual payments thereafter, for each government fiscal year ending 30 September, will be due and payable in advance on 2 January following, and will be costs for the computed based on the actual rxperienccd preceding increased or decreasedbyoanramount fiscal p y,_nt shall be therdifference rbetweet, the sum of the first and second payments as computed based on the actual costs experienced for the stated periods and the sum of the first and second { payments by the City based on the estimated costs for the sane pe,-iods. ARTICLE 68 Construction cost ad ustments, amounts In this contract, includ g'those in the EAll xhibits, rareitent tivaollly, based on the Government's best .stimates. They will be adjusted upward or downward by the Contracting Officer when final construction costs become known, f and the contract will be modified to reflect the adjustments. ARTICLE 7. Duration of contract. This contract shall be effective a when approved by the Secretary of the Army and shal.I continue in full force and effect for the life of the Project and Lailsville Lake. ARTICLE 8. Permanent rights to storage. Upon completion of payments by the City, as Provided in Artfcle Sa heroin, the City shall have a permanent 43 right, under the provisions of the Act of 16 October 1963 (Public Lm 88-1400 , to) andULewisville)Lake astheprovidedus( of spaces In followi0 Project 8 as The City shall continue payment of its share, as provided in Article 5c, of the annual operation and maintenance costs allocated to water supply. b. The City shall bear 74 percent of the costs allocated to (1) water supply for the Project and (2) the total storage space between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level for Lewisville Lake of any necessary reconstruction, rehabilitation, or replace- ment of Project or Lewisville Lake features which may be required to continue satisfactory operation of the Project or Lewisville Lake. Sucb costs will be established by the Contracting Officer. Repayment arrangements, including schedules, will be in writing and will be made a part of this contract. I r 6 1 I c. Upon completion of payments by thr. City as provided in Article 5a herein, the Contracting Officer shall redetermine the storage spaces for municipal and iudustrial water ;;upply, taking into account such equitnblv reallocation of lake stornpe capacities among the purposes served by tho Project and Lewisville Lake as may be necessary clue to sedimentation. Such findings, and the storage spaces 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 lake storage capacities 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 revived storage spaces allocated to municipal and industrial water supply. d. The permanent rights of the City under this contract shall be continued so long as the Government continues to operate the Project and Lewisville Lake. In the event the Government no longer operates the Project or Lewisville Lake, such rights may be continued subject to the execvti.on of a separate contract, or additional supplemental agreement providing for: { (1) Continued operation by the City of such part of the facility f as is necessary for utilization of the water supply storage spaces allocated to its (2) Terms which will. ~ protect the public interest; and (3) Effective absolvement of the Government by the City from all liability Li connection with such continued operation. ARTICLF. 9. Release of claims. The City shall hold and save the Government, including its officers, agents, and employees harmless from liability of avy nature or kind for or on account of any claim for damages which may be filed or asserted as a result of the storages in the Project and Lewisville Lake, or withdrawal or release of water from the Project or Lewisville Lake, made or ordered by the City or as a result of the construction, operation, or maintenance of the features of appurtenances owned and operated by the City, provided, that this shall not be construed as obligating the City to hold and save the Government harmless from eamages or liability resulting fret the sole negligence of the Government or its officers, agents, or employees and not involving negligence on the part of the City or its officers, agents or employees. . ARTICLE 10. Assignment. The City shall not transfer orsassign this contract or any rights acquired thereu..,der, nor sub-allot said water supply storage spaces or any part thereof, nor grant any interest, privilege, or license whatspever in connection with this contract, without the approval of the Secretary of the Army, rod vided that, unless contrary to the public interest, this restriction shall not be construed to apply to any water that may obtained from the water supply storage spaces by the city and furnished to any third party or parties, nor any method of allocation thereof. l trw ARTIOT 11. Officials not to heneflt. No member of or delegate to Congress, or a.•a dent Com:nlssl3ncr, shall be admitted to any share or part of this contract, or to any benefit chat may arise therefrom; but this provisi,~:, shall not be construe,! to extend to this contract if made with .a corporcti••t for its general benefit. ARTICLE 12. Covenant n;ainst contf2Zent fees. The City warrants that n secure thi contract o person or selling agency has been employed or retained to solicit or percentage, brokerage,or contingent nfeerexcepting nbona fideaemployceaoor bona III fide established comaercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract 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. ARTICLE 13. Environmental quality. During any construction, operation, and maintenance by the City of any facilities, specific action will be takes: to control environmental pollution which could resul~ from such activity and to comply with applicable Federal, State, and local laws and regulations I concerning environmental pollution. Particular attention should be given :o (1) reduction of air pollution 3y control of burning, minimization of dust, containment of chemical vapors, and control of engine exhaust gases, and of omoke from temporary heaters; (2) reduction of water pollution by control of sanitary facilities, storage of fuels and other contaminants, and control of i turbidity and siltation from erosion; (3) minimization of noise levels; (4) onsite and offsite disposal of waste and spoil; and (5) prevention of 1 landscape defacement and damage. ARTICLE 14. Federal and State laws. a. In acting under its rights and obligations het under, the City a^reen to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davis-Bacon Ac.t (40 U.S.C. 276a et seq); the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3. D. The City furnishes, as part of this contract, an assurance (Exhibit C) tl'at it will comply with Title YI of the Civil Rights Act of 1964 (78 Stat. 2410 42 U.S.C. 2000d, et seq) and Department of Defense Directive. 5500.11 issued pursuant thereto and published in Part 300 of Title 320 Code of Federal Regulations. ARTICLE 150 DEFINITIONS. a.' Joint use coats - The coats of features used for any two or more Project purpcses, b. Project investment costs - The initial cost of the Project, Including: land acquisition; construction; interest during construction on •8 -10 . Mai KRM~ the value of land, labor, and materials used for planning and construction of the Project, e. Specific costs - The costs of Project features nor one particular Project purpose, orally carving only d. Interest during construction - An amount of interest which accrues on expenditures for the establishment of Project scrv~cen during the period between the actual outlay and the time the Project is first made available to the City for water storage. AkTICLE 16. A roval. This contract is subject to the written approval of the Secretary of the Army, and shall not be binding until so aPProved i I 1 ' J ~ f • 1 , r 1 IN WITNESS i•AIEREOF, the parties have executed this contract as of the day And year first above written. E APPROVED: THB DNITFD STATES OF &IMP ICA t BY Secretary, of the Army JOE tl. S1I::ARD Colonel, CE Contracting Officer • J • , Date CITY OF DALLAS, TEXAS . By GEORGE R. SCHRADER City Manager I, Harold G. Shank, certify that I am the City Secretary of the City of Dallas, Dallas County, Texas, named as City herein; that George R. Schrader who signed this contract on behalf of the-City of Dallas was then City Manager of the City of Dallas, Texas; that said contract was duly signed for and on behalf of the City of Dallas, Texas by authority of its governing body and is-within the scope of its legal powers. IN WITNESS WJEREOF, I have hereunto affixed r7 hand and the seal of said City of Dallas, Texas, this day of 19754 . HAROLD G. SHANK Secretary, City of Dallas, Texas ' CORPORATE SEAL , 10 r \ J -10 7 1 ' F Contract No. DACW63-75-C-OOGO AUBREY 111Y.R MIMIT A 3 I ' I - PROJECT STORACES In Aubrey Lake Percent Percent of Gross Usable of water Elevation storage storage usable supply Feature (feet msl) (acre-f.oet) (acne-feet) storage fitora.;e Flood control 632.5-640.5 265,000(1) 260,800 25.822 j Water supply 550.0-632.5 7999600(2) 7499200 74.178 100.0 (City of Dallas) 550,0-632.5 (5549400) (54,891) (74.U) (City of Denton) 550,0-632.5 ~19b 800) 19.287) (2ri.0) Totals 1,0640600 190105000 100.000 (1) Includes 4,200 acre-feet sediment reserve. (2) Includes 50,400 acre-feet sediment reserve. i In Lewisville Lake • Percent Percent of • Gross Usable of water Elevation storage storage usable supply Feature feet m51Z (acre-feet) (acre-feet) storage storage i Flood control 522.0-532.0 341,300 (1) 3069700 340825 ` Water supply 481,0-522,0 648,400 (2) 5741000 65.175 1 Existing lake 481.0-515,0 (4640500) (4369000) (49.506) 100,0 (City of Dallas) 481.0-515.0 4159000 47.122 (95.2) LJ (City of Denton) 481,0-5)5.0 210000 2.384 (4.8) Raised w/o pool 515.0-522.0 (183,900) (138,000) (15.669) 100.0 (City of Dallas) 515.0-522,0 1020100 11.593 (74.0) (City of Denton) 515.0-522.0 35,900 4.076 (26.0) Totals 99,700 880,700 10.000 (1) Includes 34,600 acre-feet sediment reserve, (2) Includes 74,400 acre-feet sediment reserve.' • 11 - PROJECT CONSTRUCTION COST Estimated Federal construction cost ¢1490603,000 . Estimated nonreimbureable costs (unallocable) (1) 5 840,000 Estimated project cost to be allocated 1 3,763,000 Estimated interest during construction on allocable cost 11,6111M (2) Estimated project investment to be'allocated 155,374,000 (1) Relocation of roads above replacement-in-kind standards. (2) Interest rate - 3.25%. Interest rate for reimbursable amounts will be set • as of the beginning of the fiscal year in which construction of the Project is started. A-1 r 1 e . y r~ 6 • III - nr.r.ocnrirr,~ oic_~~~rsrnncrro~a_r,r_vr_sr~r~:rrr (Separable costs - remaining benefits mellwJ) Water Recreation and su~,p3,7 fish and wildlife Totals 1. Estimated specific facilities cost $ 145,000 $1E;7030000 Aubrey Lake (145,000) $ 18,848,000 Lewisville Lake (12,433,000) (12,578,000) 2, Estimated joint use (0) (20270,000) (202d'700000) facilities cost 89,707,600 Aubrey Lake 5'207'400 124,9150040 Lewisville Lake (86'7419200) (3400430400) (120,785,000) .12,066,.000) (1,154, 000) (4,330 , OCO) Subtotals - cost $89,852,200 $53,910,400 3. Estimatcd interest $14307630000 during construction 89022 400 Aubrey Lake ' 3,588,200 11,611,000 (3.) Lewisville Lake (7'757'300) (3,410,800) (111168,100) 4, Estimated total (265.100) (177,800) (442~goo allocation $9708750000 (2) $57,499 000 Aubrey Lake (94643,900 , $155,374,000 Lewisville Lake ) (5398870200) (148,5310100) (3 .231,100) (3,611,800) {6,842,900) ~I (i) Interest rate - 3,2' 1 Interest rate for reimbursable amounts will be act as of the beginning of the fiscal year in which Project is started constriction of the . (2) Investment cost to bP repaid by: t City of Dallas $72,427,500 - 74% f` City of Denton 25,447,500 - 26% ¢97,875,000 IV --ALLOCATION OF ESTIMATED.O_PERATION AND HAINTENMCE COST Aubrey Lake Water Recreation and • U2,ly fish and wildlife Total 1. Specific cost $ 479700 $435,000 2. Distribution of joint use $482,700 coat (percent) 57.283 42.717 100.000 34 Allocated joint use cost _81,Soo . 4. Total allocation 61.000 142.800 $129,500 $496,000 $615,500 To be paid by the City of Dallas: 74% of Specific coat of water supply $35,298 42.389% of project joint use cost 60 532 Total 95,830 • 95,830 = 65,500 x 100 15.321% of total acnual operation and maintenance cost, A-2 "Hirai -10 mum, 4 i' LCwiSYilie ),nki r Existinr ro ect flood Water control __Au 211L_ Totni 1. Specific cost 2. Allocated Joint use cost $17,261• $ 1,511(1) $18832 3. Total allocation 21- 012 I1y558(2) 38'630 $44$33 $13,129 (1) Operation and maintenance of outlet structure exclusively for Dallas, (2) 4.82 paid by Denton + $554, (3) Exclusive of operation and maintenance costs for land management and public utilization, S~2 57 x 100 a 21.92 of total annual operation and maintenance cost Raised water sMZI yool Flood Water control supply T---- al 1. Specific cost 2. Allocated joint use cost $170261 $ 29068(1) $19,329 j i 3. Total allocation 23 414 1_ S 216(2)(3) 38,630 t 40,b75 $17,284 $579 59(4) (1) Operation and maintenance of outlet structure exclusively for Dallas. j (2) Water supply storage in raised pool - 574.000 Water supply storage in existing pool ■ 43b,000,- 1.3165 $ 1,571 x 1.3165 - $ 2,068 1 , (3) $12,0538 68 x $.19571a-$15,216 ` $ $15,216 - $11,558 0 497 ' $1502 1 + $ 3,658 74% of $3,658 ■ $2,707 $ 2,707 - $130711 $20068 + $13071 - $159779 (4) Exclusive of operation and maintenance costs for land management and public utilization. 15 779 $57,959 x 100 27.2242 of total annual operation and maintenance cost, 27.2242 - 21.900% a 5.3242 of total annual operation and maintenance cost allocated to Lallas for operation and maintenance of the additional water supply Storage in Lewisville Lake. Sedimentation resurveys3 Raised water supply pool RX13ting project water supply pool 58.715% ' 4•6002 Difference allocated to additional water supply pool 11.1152 • A-3 V - COMPUTATION5 Fox ANNUAL PAYT1E1VrS FOR 1NTI P'.1:5T AND A`f01;9'I%A7'lb;i Present water suADly; I Lewisville Lake $ 31231,100 x 0.74 $ 2,'391,000 Aubrey Lake $94,643,900 x 0.74 x 0.50 35,0)8 250 Amount to be amortised - $37,40),250 Based on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 4,371 percent. A - P P - annual payment P 1 A - amount to be re aid - i + c P $3704090250 i - interest rate ■ 4.371% C - amortization coefficient for 49 years - ,006125257063 _ $373409,250 - P P - 1 0.04371 i 0.006125257063 20.06611501P $37,409,250 - P f 21.06611501P - $310409,250 P $1,775,802.04 P4iture water a'.ys1 Aubrey Lake amount to be amortized ~ I S35t018,250 f &teed on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 4.371 percent. A - P P - annual p. 1 payment A - amount to be repaid - $350018,250 i + c i - interest rate ■ 4.371% c - amortization coefficient for 49 535.018,25Q - p Years ,006125237063 P 1 0.04371 + 0.006125257053 20.06611501P - $35,018,250 - P 21,06611501P - $3500180250 P - $1,662,302.23 ' A-4 4 Contract No. UACW63-75-C-0000 AUBREY ull"li PAYlfJ-.R-' f.CIIliDU1,E Yq• PAYUNT T3 PAY4;,l*lT T7 T0TAL :3A 1.4t11'S NO. INT£'1£ST P2I'ICI?AL PAY:IINT 1) 37409?50.00 1 0.00 177580?..04 1775302.04 35633447.06 2 1557538.01 218264.03 177530?.0/ 35115133.1 1 3 1547997.69 22780/1.35 1775303.01 351'M79.5'3 4 1533040.36 ?37761.69 1775503.04 34949-517.90 5 1527697.50 24Ir5154.24 1775102.04 34701463.06 6 1516800..93 259001.06 1775802.01 3444?15'?.%,l 7 1505480.04 270322.00 1775302.04 34172113.50 8 1493564.27 282137.77 1775802.01 3399000'2.?3 9 1481332.02 294470.02 1775302.04 33595532.91 10 1468460.74 307341.30 1775302.04 33233191.51 11 1455026.F35 320775.19 1775332.04 3?967410.32 12 1441005.77 331796.27 1775502.04 3?633620.05 13 1426371.82 349430622 1775802.04 32233139.33 14 1411098.23 364703.81 1775802.04 319184°5.02 / 15 1395157.02 380645.02 1775802.04 31537441.33 16 1378519.03 397283.01 1775802.04 31140557.99 17 1361153.79 414648.25 1775802.04 30725909.74 013 1343029.51 432772.53 1775302.04 30293137.21 19 1324113.03 451689.01 1775802.04 29643443.20 j 20 1304369.70 471432.34 1775802.04 29370015.86 21 1283763.39 492033.65 177500204 281377977421 I 22 1262256.38 513545.66 1775802.04 28364431.55 23 1239809.30 535992.74 1775802.04 27028439.31 24 121 6361 .06 559420.98 1775802.04 2727 r).11 7.8'3 25 1191928.77 583873.27 1775802.04 26Wj144,55 i 26 1166407.67 609394.37 1775802.04 26075750.19 27 1139771.04 636031.00 1775902.04 25439719.19 28 1111970.13 663831.91 1775802.04 24775387.23 29 1082954.03 692848.01 1775802.04 24083039.27 30 1052669.65 723132.39 1775802.04 23359906.83 31 1021061.53 754740.51 17?5802.04 2605166.37 32 988071.82 787730.22 1775802.04 21817436.15 33 95364003 822161.91 1775802.04 20995274.24 34 917703.44 858093.60 1775802.04 20137175.64 35 860195095 895606.09 1775802.04 19241569.55 36 841049.01 934753.03 1775802.04 18306516.52 37 800190.95 975611.09 1775902.04 17331205.43 38 757546.99 1018255.05 1775802.04 1631?950.33 39 713039.06 1062762.98 1775802.04 152501;7.40 40 666585.69 1109216.35 1775802.04 1410971.05 41 61810104 1357700.20 1775902.04 12983270.35 42 567493.77 1208303.27• 1775802.04 117''4967.53 43 S1448Z.83 1261118.21 1775802.04 10513849.37 44 459560.35 1316241.68 1775802.04 9197637.69 45 402027.43 1373774.61 1775802.04 7823833.08 46 341979.74 1433822.33 1775802.04 6390010.79 4'7 27930707 1496494.67 1?75302.04 4593516.11 48 213895.59 1561906.45 1775302.04 3331609.65 49 145624.56 1630177.38 1775802.04 1701432.23 50 74369.60 1701432.25 1775801.88 0000 Ask 0 i i Conttccr :'o, DACS753-7,-C_UOOO &U RCy )A* FY.11''_•JRIT C ASSU'W.lCE Or COJPLIA11C.- '.J1T11 'f HE DEPAR'fI1l1rT Ul' DEr'l:t„5F, 1)IPk4'IVE UidDE TITLE VI OF 771E CIVIL P, fiIGll'1'.S ACT OF 1964 The City of Dallas, Dallas County, Texas (hereinafter called "Applicant- Recipient") comply with title VI of the Civil Rhts A~tfFR):BY AGREES 7'fiAT it will and all requirement, imposed b or g of 1964 {Public Law 88-352) purnn Department of Defense (32 CPR Part 3 00~ sUis:,, ec 0 as the DiDeparrectmenttive of of the Defense Directive 5500 11, Decembc-r 28, 1964) issu.r pirsuant to that title, to the end that, in accordance with title VI of 0.tt the Direct no f person in the United States shall, on the c•roundtofnrace, ccolor,ior'nation origin be excluded from participation in, F., denied the benefits of, or be otherwise subjected to discrimination uncle any program or activity for which the Applicant-Recipient receives Fede_al i;,sncial assistance from the U. S. Army Corps of Engineers and HEREBY CIVF.S ASSMANCE TT it Immediately take any measures necessary to effectuate thisagreement,will If any real property or structure thereon is provided or improved aid of Federal financial assistance extende3 to the Applicant-Recipienttby the U. S. Army Corps of En8ineers, assurance shall obligate the Applicant- Recipient, or in the case of any transfer ol ouch property, any transferee, for the period during which the real property or structure is used for a purpose for which Federal financial asst pur ose stance is extended U Involving the provision of similar ser, fees or benefits. another personal property is so provided, this assurance shall obligate thef any APplicant-Recipient for the period during which it retains ownership or possess.on of the property. In all other cases, this assurance shall obligate the Applicant-Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers. • THIS ASSURAKCg Is j' obtainin AS en given in consideration of and for the purpose of loans or othergFederaldfinancialrassistance extendedoafter the date hereof I . Property, discounts Applicant-Recipient b wh ch g installment payments after such date on account OftarrangementstfornFedc-ral financial assistan et the were approved before such date. The Applicant-Recipient recognizes and agrEas that such Federal assistance will to extended in reliance on the representations and agreements made in this assurance, and that the United States shall have the right to seek C-1, . owl Judicinl enforcement of this assurance. This assurance is Appllcant-1;eciPirnt, SCE succcssor birnlinl; on the arson or s, tran„ferep. c,nd an~iF,nec's, and the ' assurance onrbehalfllofethelApplicantPlccipient.~ arc authorized to si.rn this THE CITY OF DALLAS, TEXAS Dated j $Y GEOR_GE R• ,SEJRADEP, City Manager i (Hailing address) ATTEST: I 11 HAROLD c. sllAltx Secretary, City of Dallas, Texas ' i , C-2 i M ~9lW.R. • 1 • MM] Contr.ut No. DAM63-75-C-0000 AUERIiY LAYr EXA33T D OPINION OF COUNSEL I hala reviewed and approved contract number DACW63-75-C-0000 betw:cn. the UNITCD STATES Or MERICA and Cie CITY OF DALLAS, TEXAS, Particularly I have considered the effect of Section 221 of Public Law 91-611 (42 U.S.C. 1962d-5b) and am of the opinion that the City of Dallas, Texas -has the requisite legal authority to enter into and comply with this k agreement as required by the aforementioned statute. a dote) N. ALFDC SICKLEY I City Attorney I City of Dallas, Texas , t f } • Q-1 i Contract No, DAM.163-75-C-0000 DRAB' CONTRACT BETWEEN Tlll' UNIT):D STATES OF A'.rtrJCA AND 211E CITY OF DUMN) TEXAS FOR WATER STORAGE SPACE 734 AUBMY AHD LYMSVILLE LN=F TEXAS T11IS CONTRACT, entered into this day of 1915 b and between the United States of fwerica (hereinafter called the Government), represented by the Contracting Kficer executing this contract, and the City of Denton, Denton County, Texas (hereinafter called the City), WITNESSET'11 21LAT: W11ERL.S, the River and Harbor Act of 1965 (79 Stat, 1091) authorized the construction, operation, and maintenance of Aubrey Lake (hereinafter called the Project) on the Elm Fork of the Trinity River in the State of I Texas; and WHEREAS, the Project will include storage for flood control which will permit the transfer of flood control storage to the Project from Lewisville Lake (immediately downstream from the Project) and make available in Lewisville Lake an equivalent amount of storage for additional water supply for municipal and industrial uses; and I k WHEREAS, the City desires to contract with the Government for the use of storage included in the Project and the additional storage to be made available in Lewisville Lake for municipal and industrial water supply, and for payment of the cost thereof in accordance with the provisions of the Water Supply Act of 1958, as amended (43 U.S.C. 390b); and . WHEREAS, the City Is' empowered so to contract with the Government and is vested with all the necessary powers for accomplishment of the purposes of this contract, including those required by Section 221 of the Flood Control Act of 1970 (42 U.S,C. 1962d-5b); NOW, THEREFORE, the Government and the City agree as followat ARTICLE 14 Water storage s ace. a, Protect construction. The Government, subject to the directions of Federal law and any limitations imposed thereby, shall design and construct f the Project so as to include therein space for the storage of water by the City and space for the storage of floodwaters which will permit the reallocation of flood control storage in Lewisville Lake to municipal and industrial water supply storage. be Rights of the City, (1) The City shall have the right to utilize (a) an undivided 26.0 percent (estimated to contain 194,800 acre-feet after adjustment for Ry , sediment deposits) of the total storage space in the Project betucen elevations 550,0 feet above mean sea level and 632.5 feet above mean sca level, which total storage space is estimated to contain 749,200 acre-feet after adjustment for sediment deposits, and (b) an undivided 26,0 percent (estimated to contain 35,900 acre-feet after adjustment for sediment deposits) of the total storage space in Le-Usville Lake between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level, which total storage space is estimated to contain 138,000 acre-feet after adjustment for sediment deposits. The storage space in Lewisville Lake is to be used to impound water for present demand or need for municipal and industrial water supply; and the storage space in the Project is to be used to impound water for present and anticipated future demands or needs for municipal and industrial water supply. In the Project, 50 percent (an estimated 97,400 acre-feet) of the space which the City has a right to utilize is for present use water storage, and 50 percent (an estimated 97,400 acre-feet) is for future use water storage. (2) The City shall have the right to withdraw water from the two lakes, or to order releases to be made by the Government through the outlet works in the dams, subject to the provisions of Article lc and to the extent the aforesaid storage spaces will provide; and shall have the r.eht to construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose Of diversions or withdrawals, subject to the approval of the Contracting Officer as to deign and location. The • grant of easements for right-of-way across, in, and upon land of the Government f at the Project and at Lewisville Lake shall be by a separate instrument in a f form satisfactory to the Secretary of the Army, without aiditional cost to 1 the City, under the authority of and in accordance with the provisions of 10 U.S.C. 2669. Subject to the conditions of such easements, the City shall have the right to use so much of the Project and Lewisville Lake binds as may reasonably be required in the exercise of the rights and privileges herein granted. c. Rights reserved. The Government reserves the right to lower the y water in the Project to elevation 632.5 feet above mean sea level and to lower the water in Lewisville Lake to elevation 522.0 feet above mean Lea level during such periods of time as is deemed necessary, in its sole discretion, for flood control purposes. The Government further reserves the right to -take such measures as may be necessary in the operation of the Project and Lewisville Lake to preserve life or property. i d. Quality or availability of water. The City recognizes that this contract provides storage space for raw water only. The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor, or for the treatment of water. ARTICLE 2. Regulation of and right to use of water. The regulation of the use of water withdrawn or released from the aforesaid storage space shall be the sole responsibility of the City. The City has the full responsibility to acquire in accordance with state laws and regulations and, if necessary, to establish or defend, any and all water rights needed for utilization of 2 f the storages provided under this contract. The Government 611,111 nut be responsible for diversions by others, nor will it become a party to any controversies involving the use of the st.)rage spaces by the city except as such controversies may affect the operations of the Government, ARTICLE 3. j, ratfon and maintenance, The Government shall operate. and maintain the Project and Lewisville Lake and the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5. The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the diversion or withdrawal of water from the two lakes, and shall bear all costs of construction, operation, and maintenance of such installations and facilities. ARTICLE 4. Measurement of withdrawals and releases. The City agrees to furnish and install, without cost to the Governrocnt, suitable meters or measuring devices satisfactory to the Contracting Officer for the measurement of water which is withdrawn from the Project or Lewisville Lake by any means other than through the Project or Lewisville Lake outlet works. The City shall furnish to the Government monthly statements of all such withdrawals. Releases from the water supply storage spaces through the Project or Lewisville Lake outlet works shall be mau in accordance with written.schedules furnished by the City and approved by the Contracting Officer and shall be subject to Article lc. The measure of all such releases shall be by means of a rating curve of the outlet works, or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces, ARTICLE 5. Pa ents- In consideration of the right to utilize the aforesaid storage spaces In the Project and Lewisville Lake for municipal and j industrial water supply purposes, the City shall pay the following sums to I the Government: I~ i a', Pro ect investment costs. (1) The City shall reps, to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amount of the construction coati, including interest during con- struction, allocated to the water storage rights acquired by the City under this contract, The interest rate to be used for purposes of computing interest during construction and interest on the unpaid balance will 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 set forth in the Water Supply Act of 19580 as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1975) is 4,371 percent, The City shall repays 26 percent of the construction cost of specific water supply facilities, estimated at 18,672 percent of the total Project joint use 370700 construction cost, estimated at Interest during construction, estimated at 2X23,324,000 ,085,800 Total estimated amount of Project investment cost allocated to 26 percent of the water supply g2s,aa7,soo w p.Ttllt! Y C]I (2) The Project Investment cost allocated to the storage spaces Indicated in Article lb(1) as being provided for present dopmn7l i:r currently estimated at $13,143,800, on the basis of the coats presented in Exhibit A I .of this contract. The amount bf t?c Project investment cost allocated to the ( storages for present demand shall be paid in 50 consecutive annual pawaents, the first of which shall be due and payable within 30 days after the City is notified by the Contracting Officer that the Project is completed and operational for water supply purposes. Annual pay:wnts thereafter will be due and payable on the anniversary date of said notification by the Contracting Officer. Except for the first payment, which will be applied .+E f solely to the retirement of principal, all payments shall include accrued I interest on the unpaid balance at the rate provided above. The lar;t annual payment shall be adjusted upward or downward when due to assure repayme^t of all of the investment cost allocated to the storages for preseni demand within 50 years. (3) The amount of the Project investment cost allocated ro the remaining portion of the storage space, that provided for future use, is currently estimated at $12,303,700 on the basis of the costs presented in Exhibit A, No principal or interest payment with respect to this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply purposes, unless all or a portion of such storage is used during this period. The amount to to paid for any portion of such storage which is used shall be determined by multiplying the percentage of the total storage for future water supply which is placed in use by the total amount of the Project investment cost allocated to future water supply. Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water supply which is'not being used 4 h from the tenth (10th) year following the sate the Project is operational for + water supply purposes until the time when such storage is first used. The City may at its option pay the interest as it becomes due or allow the interest to accumulate. until the storage is used. If this latter option is exercised, the interest will be compounded annually and added to the principal amount. When any portion of the storage for future water supply is used, payment in both principal and interest for the porting, used must be started, and the amount of the Project investment cost allocated thereto, with interest to the unpaid balance as provided above, shall be paid within the life of the Project In not to exceed 50 consecutive annual payments beginning within 30 days after the date of first use of such portion. (4) 'An estimated schedule of annual payments for the storages provided for present demand is attached as Exhibit B of this contract. The annual payments as provided theiain shall be made until the actual construction costs of the Project are determined. When the actual construction costs of the Pt-2ject tre determined, the annual payments due thereafter will be adjusted to ;iflect any increase or decrease in the actual costs, including interest during construction, from the estimated amounts shown in Exhibit A. Payment schedules for the storage provided for future water supply demands will be furnished by the Contracting Officer when use of such storage is started, and if based on estimated costs will be subject to revision w%en actual costs are known. 4 r (5) If the City shall fail to make any o: the aforesaid payments when due, the., the overdue payments shall bear interest compounded annually at the rate provided above until paid. The amount charged on payments overdue for a period of less than one year shall be figured on a monthly basis. Yor example, if the payment is mzde within the first month after being overdue (31 to 60 days after the anniversary dati), one month's interest shall be charged. This rrovision shall not be construed as giving she City a choice of either making payments when due or paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might resul from any default by tt,e City. (6) The City shall have the right at any time it so elects to prepay the indebtedness under this Article 5a, in whole or in part, with accrued interest thereon to the date of such rePa P yment. b. 14afor capital replacement costs and sedimentation resurvevs costs. The City will be required to pay 26 percent of the costs for any major capital replacement of specific water supply facilities at the Project. In addition, the City shall pay to the Government 8.543 percent of the costs of joint use major capital replacement items at the Project until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the joint use major capital replacement 1 items costs, which the City will be required to pay in addition to the major capital replacement costs of the specific water supply facilities, will be increased commensurate with the percentage of the water supply storage being -jF used up to a total of 17.086 percent of such costs. The City will be required to pay 9.644 percent of the cost of sedimentation resurveys at the Project until such time as the storage for future water supply is used. As the storage provided for future water supply demands is usei, the share of the sedimentation resurveys cost which the City will be required to pay will be increased comme,-urate with the percentage of the water supply storage being I I used up to a totai of 19.287 percent of such costs. The City will be l~ required to pay 4.060 percent of the cost of sedimentation resurveys at Lewisville Lake. Payment shall be made either in lump sum or annually with -j~ Interest on the unpaid balance. If paid annually, the first pay~.ent shall be made vrith the first annual payment on the Project investment cost becoming due after the date said major capital replacement costs or sedimentation resurveys costs are incurred, c. Annual operation and maintenance costs. The City will be required to pay 26 percent of the annual experienced operation and maintenance costs of specific water supply facilities at the Project. In addition, the City shall pay 7.447 percent of the annual experienced joint use operation and maintenance costs of the Project until such time as the storage for future water supply is used. As the storage p ovided for future water supply demands is used, the share of the annual experienced joint use op-ration and mainte- uance costs, which the City will be required to pay in a6.ition to the operation and maintenance costs of the specific water supply facilities, will be increased commensurate with the percentage of the water supply storage being used, up to a total of 14.894 percent of such costa. The City will be ~ S i r • 7 I r i required to pay 1.597 percent of the total annual experienced operation and maintenance costs, exclusive of the operation and maintenance casts for ]and management and public utilization, of Lewiwi.llc Lake for the additional water supply storapc therein. The first payment for operation and mainte- nance costs will be due and payable in advance within 30 days after the Contracting Officer notifies the,City that the Project is completed and operational for water supply purposes. The first payment will be for the period beginning on the date the Project is operational for water supply purposes and ending on D September following, and will amount to the pro rata share for this period of the estimated initial annual payment of $23,036. The second payment, for the ensuing Government fiscal year ending 30 September, in the estimated amount of $23,036, will be due and payable in advance on 1 October following the date the project .s operational for water supply purposes. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following, and will be computed based on the actual experienced costs for the preceding Government fiscal year. The third payment shall be increased or decreased by an amount being the di:ierence between the sum of the first and second payments as computed based on the actual costs experienced for the stated periods and,the sum of the first and second payments by the City based on the estimated costs for the same periods. ARTICLE 6. Construction cost ad ustments. All construction cost dollar amounts in this contract, including those in the Exhibits, are tentative only, based on the Government's best estimates. They will be adjusted upward or downward by the Contracting Officer when final construction costs become known, and the contract will be modified to reflect the adjustments. i f ARTICLE 7. '.luration of contract. This contract shall be effective when approved by the Secretary of the Anny and shall continue in full force and effect for the life of the Project and Lewisville Lake. ARTICLE 80 Permanent rights to storage. Upon completion of payments by the City, as provided in Article 5a herein, the City shall have a permanent right, under the provisions of the Act of 16 October 1963 (Public Law 88-1400 43 U.J.C. 391e), to the use of the water supply storage spaces in the Project and Lewisville Lake as provided in Article.1, subject to the following: a. The City shall continue payment of its share, as provided in Article 5c9 of the annual operation and maintenance costs allocated to water supply. b. The City shall bear 26 percent of the costs allocated to (1) water' supply for the Project and (2) the total storage space between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level for Lewisville Lr.'xe of any necessary reconstruction, rehabilitation, or replace- ment of Project or Lewisville Lake features which may be required to continue satisfactory operation of the Project or Lewisville Lake. Such costs will be 1J established by the Contracting Officer. Repayment arrangements, including schedules, will be .°..a writing and will be made a part of this contract. 6 ; RUM c, Upon completion of paynents by the Cit herein, the Contracting officer shall redetermine spaces le municipal and industr~al the storage su 1 y as provided !n Article 5a PP y,•taking into account such equitable reallocation of lake storage cap,icitics anion For rroject and Lewisville Lake as may be necessary purposes served b findings, and the storage spaces allocated to municlp~lsandrindustrial'wach - Su Cupplys shall be defined and descrihed in an exhibit which will ter part of this contract, be made a take storage Following the same principle such reall f ocaticn of capacities may be further adjusted from,time to time as the result r ~dimentatlon resurveys to reflect actual rates of sedimentation and V bit revised to show the revised storage spaces allocated to .muricil, •d industrial water supply, d, The permanent rights of the City under this contract shall be Continued so long as the Government continues to operate the Project and Lewisville Lake, In the event the Government no longer operates the Project or Lewisville Lake, such rights may be continued subject to the execution of a separate contract, or additional supplemental agreement (1) 'Continued operation by the city providing for: as is necessary for utilization of the water suf lush part of the facility to it; pp y storage spaces allocated (2) Terms which will protect the public interest; and (3) liability Effective a5solvement of the Government by j in connection with such continued operation, the City from all I~I ARTICLE 4, Release of cla ims. The City Governments including its officers, agents, andhemployeesaharmless tfrom ` liability of any nature or kind for or on account of any claim for damages y be filed or asserted as a result of the storages in the Project and Lewisville Lake, or withdrawal or release of water from the Project or Lewisville Lake, made or ordered by the City operation, of maintenance of the features of ar as a result of the construction, ppu rtenan and by the City, rovided, that this shall not be construedces obligatingotheaCit to hold and save the Government harmless from damages or linbilit from the sole negligence of the Government or its officers' agents, y employees and not involving negligence on the y resulting , agents cr employees. part of the City or its s officers, ARTICLE 10, Assignment. contract or an The City shall not transfer or assiL, this any rights acquired thereunder, nor sub-allot said water supply storage spaces or any part thereof, nor grant any interest license whatsoever in connection with this contract, without the approval the Secrets , Privilege, or ry of the Army, rovided that, unless contrar ublic of interest, this restriction shat not be construed to &P an y to the public may be obtained from the water supply storage spaces bypthetCity andter that furnished to any third party or parties, nor any method of allocation thereof, . r ARTICLE 11. Officials not to benefit. No member of or delegate to i 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 :.^t be construed to extend to this contr.irt if mide with a corporation for its general benefit. i . ARTICLE 12. Covenant2rainst 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 commission, percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract 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, ARTICLE 13, Environmental quality. During any construction, operation, and maintenance by the City of any facilities, specific action will be taken to control environmental pollution which could rest-It from such activity and to comply with applicable Federal, State, and local laws and regulations concerning environmental pollution.. Particular attention should be given to (1) reduction of air pollution by control of burning, minimizztion of dust, i containment of chemical vapors, and control of engine exhaust gases, and of smoke from temporary heaters; (2) reduction of water pollution by control of sanitary facilities, storage of fuels and other contaminants, and control of turbid.ty and siltation from erosion; (3) minimization of noise levels; (4) onsite and offaite disposal of waste and spoil; and (5) prevention of landscape defacement and damage. ARTICLE 14. Federal and State laias, a, In acting under its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davis-Bacon Act (40 U.S.C, 276a et se q); the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulationa, Part 3. b. The City furnishes, as part of this contract, an assurance (Exhibit C) that it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat, 241, 42 U.S.C. 2000d, et seq) and Department of Defense Directive 5500,11 issued pursuant thereto and published in Part 300 of Title 32, Code of Federal Regulations. ARTICLE 15, DEFINITIONS. a. Joint use costs - The costs of features used for any two or more Project purposes. , b. Project investment costs - The initial cost of the Project, including: land acquisition; construction; interest during construction on 8 ' I I 1 , F the value of land, labor, and materials used for planning and construction of the Project. co Specific costs - The costs of project features normally serving only one particular Project purpose, 1 d. Interest during construction - An amount of interest which accrues on expenditures for the establishment of Project services during the period between the actual outlsy and the time the Project is first made available to the City for water storage, I ARTICLE 16. Ap royal. This contract is subject to the written appr i of the Secretary of the Army, and shall not be binding until so approved oval i i I LJ i 1 0 , k , 1 t IN WITNESS WHERE02', the parties have exerkted this contract as of the day and year first above written, APPROVED., THE UNITED STATES OF A21ERICA Secretary of the Army ny X02: ~i. s2;EARD Colonel, CE Contracting Officer Date i CITY OF DENTON, TEXAS B BI L NEU Mayor Is Brooks Holt, certify that I am the City Secretary of the City of Denton County, Texas, named as City herein; that Bill Neu who signedDthisn; contract on behalf of the City of Denton was then Mayor of the City of Denton, Texas; that said contract was duly signed for and on behalf of the City of Denton, 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 City of Denton, Texas, this day of ,1915. f ' i BROOKS HOI.T Secretary, City of Denton, Texas t CORPORATE SEAL, , I 10 ' Contract J2p, DAC1463-.75-C-0000 a.UI31tIiY 1.41;~: ' F~:11I:SIT A I PP,ORIT STOFJt.GF S In Aubrc Like Gross Percent Percent of Elevation E Usable of water Feature atora story e Ge 'sable supply feet msl) acre-feet ) (.icrc-feet)1oraee storn,C Flood control 632.5-640,5. 265,000(1) Water supply 550.0-632.5 799,600(2 260980o 200800 5..922 r (City of Dallas) 550.0-632.5 4.178 100.0 (City of Denton) 550.0-632,5 (554,400) (54.891) (74,0) Totrils 194 800) _(19.287) (26.0 1,064,600 i,01(j,000 100.0U0 ) (1) Includes 4,200 acre=feet sediment reserve. (2) Includes 50,400 acre-feet sediment reserve. In Lewisville Lake Percent Percent of { Cross Usable of Elev.-.tion storage water F~tt!r~ fee: ms1 storage usable supply acre-feet) acre-feet stOra a stota e f ----a Flood control 522,0-532,0 3411300 1 a ' Nater supply ( 3060700 349825 } Flier 481,0-522,0 648,400 (2) 574,000 65.175 ` g lake 481.0-515,0 (464,50U) (436,000) (49,506) 100.0 (City of Dallas) 481,0-515,0 (City of Denton) 481,0-515,0 415,000 47.3122 84 (95.2) Raised w/a pool 515,0-522,0 (183 900) 21'000 2.384 (4,8) ' (138,000) (15.669) (74.0 (City of Dallas) 515.0-522,0 102]100 11 r (City of Denton) 515.0-522,0 .593 (74,0) li Totals 35,900 4,07E (26,0 989,700 880 700 100.000 ) (1) Includes 34,600 acre-feet sediment reserve. ( (2) Includes 74,400 acre-feet sediment reserve. i1 II - PROJECP CONSTRUCTION COST Estimated Federal construction cost y , Estimated nonrpimbursable costs (unallocable) (1) $149,603,000 Estimated project cost to be allocated 5 840!000 Estimated interest during construction on allocable cost 5163,400 Estimated project investment to be allocated 11,6- 11'000 (2) F $15503140000 (1) Relocation of roads above replacement-in-kind standards. (2j Interest rate ' - 3.252. Interest rate for reimbursable amounts will be set as of the beginning of the fiscal year in which construction of the Project is started. A71 -1 t III - ALLOT ATIOY OT C2?75Ti;UCTTON• I??L'EST14rV'f (Saparablc costs - rcmainiuL bcnetit~ mctho'd) Water. Recreation and ~i supply fish and wlldlffe Tot.,). 1. Estimated specific . facilities cost S 1453000 $180703,000 Aubrey Lake (145,000 $ 1848,000 Lewisville Lake } (16 433 000) (16,,578,ODO) 2. Estimated joint use (0) (2,270,000) (21270,000) facilities cost 89,707,600 351207,400 Aubrey lake (860741,600) (349043,400 124'9150000 Lewisville Lake 2 966 000 ) (120,785,OD0) 164 0 Subtotals - cost $89,852,60 3. ) $53,910,400 (4.1301 000) Estimated interest $143,763,000 during construction Aubrey lake 8,022,400 31588,600 1116110000 (1) Lewisville Lake (79757,300) (3,410,800) (11,1680100) 4. Estimated total (265,100) (177,800) (442,900) allocation $97,8750000 (2) $57;49900o Aubrey Lake r $155,374,000 Lewisville Lake (94,6430900) (53,887,200) (148,5319100) (3,232,100} (3,611,800) (61842S900) (i) Interest rate - 3.15X. Interest rate fo reimbursable as of the beginning of the fiscal year in whichconstructiontofwthe be set Project is started.. (2) Investment cost to be repaid by: City of Dallas $720427,500 - 74% City of Denton 25,447,500 - 26% $97,875,000 a IV - ALLOCATION OF ESTIMATED OPERATION AND MAINTENANCE COST Aubrey Lake Water Recreation and sA2 l;_ fish and wildlife Total 1. Specific cost $ 41,700 2. Distribution of joint use $435,000 $482,700 cost (percent) 57.283 42.717 3. Allocated Joint use cost 81.600 100.000 4. Total allocation 61.000 142.800 + $129,500 $496,000 r $625,500 To be paid by the City of Dentonr 26% of specific cost of water supply = $129402 14.594X of project Joint use cost 21.268 Total $33,670 , 33,670 625,500 x 100 5.383% of total annual operation and maintenance cost; A-2 "~9•.'ri pJwT'ii~OQ ltillllPhMa.:nn.... . Y' J FM r Lcn'icvilIe Lai;c Fxist project Flood Water control :5 1. Specific cost 2. Allocated joint use cost $1?,261 $ 1,571(1) $18,83? 3. Total allocation 27,072 11558(2) 33(.30 $44,333 $13,129 $57,462(3) (1) Operation and maintenance ( 2) 4,8X paid by Den ton - $554of,outlet structure exclusively for Dallas, (3) Exclusive of operation and maintenance costs for land management and public utilization. IL4 57,462 x 100 1.0% of total annual operation and maintenance cost, i ' Raised water kU~ply popl Flood Water control supper Total 1. Specific cost 2. Allocated joint use cost $17,261 $ 2,068(1) $19,329 3. Total allocation 23;414 15,216(2)(3) 630 F $40,675 $179254 $5,959(4) (1) Operation of outlet structure exclusively for Dallas. (2) Water supplydatoragenince raised Water supply storage in existing 574.000 - 1.3165 $ 1,S71 x 1.3165 - $ 2,068 g pool 436,000 . $110558 x 1.3165 - $159216 ' (3) $150216 - $119558 - $3,658 h% of $3,658 - $951 $554 + $951 - $19505 (4) Exclusive of operation and maintenance costs for land management and public utilization. M 1 505 x 100 • 57,959 2.597% of total annual operation and maintenance cost, 2,597% - 1.000X - 1,597% of total annual operation and maintenance cost allocated to Denton for operation and maintenance of the additional water supply storage in Lewisville Lake. Sedimentation resurveys: Raised water supply pool Foisting projec.: water supply pool 6.46OX Differenct allocated to additional water su 1 2.400% PP Y pool 4 , p604 , A-3 -F e(s ~ ~Aw V - COMPUTATIONS FOR A INUAL PA IMSTS FOR INTEREST AND AM0P'%TJ%ATIO%4 Present water supply: Lewisville Lake $ 3,231,100 x 0.26 $ 8409100 j Aubrey Lake $94,643,900 x 0.26 x 0.50 12,303,700 Amount to be amortized $33,1430600 Based on 50 equal payments, 49'of which bear interest on the unpaid balance at the rate of 4.371 percent, 1 A - P P - annual payment P 1 A - amount to be repaid . $13,143,800 i + c i . interest rate a 4.371% c = amortization coefficient for 49 years . .006125257063 $139143,800 - P P. 1 + 0.04371 + 0.006125257063 { 20.06611501P M $13,143,800 - P } 21.06611501P - $13,143,800 P n $623,930.90 i Future water supply: 9 I? Aubrey Lake amount to be amortized $12,3030700 Based on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 4.371 percent. + A - p P u annual payment p . 1 A - amount to be repaid .$12,303,700 i + c ' i . interest rate s 4.371% c amortization coefficient for 49 years + .006125257063 $12,303,700 = P P.m 1 0.04371 + 0.006125257063 ' 20.06611501P - $12,303,700 - P 21.06611501P w $12,303,700 ' P r $584,051.69 ' A-4 1 1 1 ' Contract No. DACW63-75-C-0000 ' • AU1S1tCY TAI, I, PAYM.*vl' sCIINbt1T.E YR. PAYMENT T3 PAY:JE'JT T7 TQITAL 3A LAN GS N0. INTE3FST P111f4C1?AL PAYMENT D']S 1 13!4330).0) 0100 623930.90 623930.90 1?5t935?.10 2 547243.43 76687.4? 523930.90 12/414 3 543391.47 60039.43 31.1?-?6 4 540392.95 623930.90 12363113.?; 5 536741.50 83537.95 6239.30.90 123,796111. 30 87189.40 6P3930. 90 1?192414.00 6 532930.46 91000.44 63 7 528952.33 3936.?.1 12101-414.4s j 94978.07 623930.90 12006435.39 8 524801.33 99129.57 623930.90 11907306.92 9 520463.38 103462.52 623930.90 10 515946.03 107984.87 62393 .,2 I1£i03349,43 1 11 511226.42 .90 -1(.~r~5a 1 1 P', 0.4.88 623930.90 11583194.55 is 506299.69 117631.21 623930.S0 11465523..14 13 501158.03 122772997 623930.90 11342750.47 1 4 495791.62 128139.28 623930.90 !1214611.19 I'S 490190,66 16 484344.87 13740.24 623930.90 11083373.95 13•.586.03 623930-90 10.941?34.9.2 17 478243.56 145687.34 623931.90 18 471875.57 10795597.58 19 465229.23 151055-33 623930.90 !0643512.35 20 154701.67 623930.93 ID484340.51 I ' 21 458292.38 165638.5? 623930.9? 1031920?.06 451052.32 1728;8.58 623930.90 101463?3.43 4 22 443495.80 180435.10 623930.90 9965333.33 23 435608.96 108321.92 623930.90 24 427377.43 196553.47 9777516.96 j s 25 418786.08 205144.8? 623930.97 9531012.99 f 26 409819.20 623930.90 9375859.17 27 400460-3g 214111.76 623930.90 9161756..17 j 28 390692.48 223470.5? 623930.90 8935?85.05 2 9 380497-u3 233233.42 623930.91 3705047.53 30 389857.16 243433.27 623930.90 8461614.?6 31 254073674 623930.93 8207540.53 358751.60 265119.30 623930.90 7942361.2? 32 347160.61 276770.29 623930.90 7665590.93 33 335062.98 288867.92 623930.90 73767?3.01 34 322436.56 30149404 623930.90 70752?3.67 35 309259.25 314672.65 623930.90 36 24550:.90 6760556.03 328427.00 623930.90 37 .281148-3E 342792.54 623930.90 6432129-0? as 266165.33 357765.57 623930990 6089345.43 39 250527.40 373403.50 5731585.91 40 234205.^3 623930.93 5353177.41 41 389724.97 633930.90 4963452.44 217171-36 406759.84 623931.90 0 42 19935'-58 424539.32 456169 ..59 43 180834-97 6? .3930.91 4137153.23 44 161457.28 443095.93 6?3930.90 3694057.35 45 462463.65 623930-90 3231593.7) 141252.96 482677.94 623930-90 2749915.75' 46 47 120155.11 503775.79 623930-93 2245139.97 98135-07 525795-83 623930.90 1719344.14 48 75152.53 548778.37 623930.90 49 51165.43 572765-47 1170555. 7 50 26129.85 623930.90 597810.30 597830.31 623930.15 0000 8-1 jyr rt) 1 1 I A Contract 1;o, DACld63-75-C-0000 i AUBREY IAYF. EXHIBIT C ASSURANCE OF COMPLIA.ICE WITH Tl]E DEPARTMENT 01' DEFENSE DL?:1iCT1Vli UI1DF.p, { 'TITLE VI OF 711E CIVIL RIGHTS ACT OF 1964 f {j The City of Denton, Denton County, Texas (hereinafter called "Applicant-Recipient") HEREBY AGRIM S 711AT it will comply with title VI of the Civil Rights Act of 1964 (Public Law 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 i end that, in accordance with title VI of that Act and the Directive, no perscn in the United States shall, on the ground of race, color, or national origin bn excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the Applicant-Recipient receives Federcl financial assistance from the U, S. Army Corps of Engineers bnd HEREBY GIVES ASSURANCE THAT it will irmuediately take any measures necessary to effectuate this agreement. If any real property or structure thereon is provided or improved with the 4 } aid of Federal financial assistance extended to the Applicant-Recipient by i the U. S. Army Corps of Engineers, assurance shall obligate the Applicant- Recipient, 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 a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property so provided, this assurance shall obligate the ,'Applicant-Recipient for the period during which it retains ownership or possession of the property. In all other cases, this assurance shall obligate the Applicant-Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers. 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 alter the date hereof to the Applicant-Recipient by the Department, including installment payments after such date on accou:it of arrangements for Federal financial assistance winch were approved before such date. The Applicant-Recipient recognizes and agrees that suc`. Federal assistance will be extended in reliance on the representatious and agreements made in thih assurance, and that the United States shall have the right to seek C-1 f V ~ >I ~ i A • 1 ,judicial enforcement Of this assurance. This assurance is binding an the J Applicant-Recipient, its.sucdessors, transferees and assignees, and the 1 person or persons whose signatures appear below are nuthoriaed to sign this assurance on behalf of the Applicant-Recipient, THE CITY OF DrdiTOV, TEXAS y Dated B--------------- I BILL tiEl1 Mayor I . i (Bailing address} t i ATTEST: i i I i a BROOKS J10LT Secretary, City of Denton, Texas i C-2 ~Y • 1 1 Contract 1do, 1)ACW63-75-C-0000 I' f r AUIIRF~F ' F7{IIIls1T D OPINION OF COUNSEL I have reviewed and approved contract number DAC1163-75-C-0000 between j the UNITED STATES OF AAIFRICA and the CITY OF DENTON, TEXAS, i Particularly I have considered the effect of Section 221 of Publir, Law 91-611 I (42 U •Gc•C. 1962d-5b) and am of the opinion that the City of Denton, Texas f ~ has the requisite legal authority io enter into and comply with this ~ i agreement as required by the aforementioned statute. t ~ date) I W. RALPH leANN I City Attorney ' City of Denton, Texas 1 1 I • • r 1 ~ • D-1 ' wG. WSM.W 1 ' 4 SWFED-PC 18 June Iti75 SUBJEM Aubrey Lake - Final Draf a of Pater Supply contracts Division Enginetr, Souttomstern f I 1. Refer to letter SV.'FED-PC dated 16 January 1975. subject: Aubrey take - Additional Irata for VcsIVn licr.vrand," Ho. 2 - General and Luca) interests Participation, with throe Indorsements, 2. Inclosed are subject rolitract draf $T t he second Indorsonent of referenced letter approved as a basis for final ne.jotlations tFe contract drafts subml;tcd 16 January 1975. The in,;iosed drafts Incorporate ti,o revisions resulting from no;otlattoos with tha cities of Wiles and Denton, the rovljlons required by the rofcrereed r•vi(m indorsements, and further { it revisions proposed by the district. 3. The negotiated revisions desired by the cities are as followse I a. In Article lb(l), project storages are expressed in terns of gross storage capacities In lieu of net after adjustment for sedloont deposits. i b. In Article lb(2), and all subsoquent contract phrases where appli- cableo the cities are granted the ricjht to transfer mater to and from tha `rater supply storages In the two takes. This provision Is needod for the cities to use those lakes, as ray be needed, as part of a proposed futurs syskem for Intrabasin and Interbastn transfers of water to supply diverse newts In the north central Texas motroplex area In the most eccoomical manner. e. Article 5d Is added In the city of Dallas contract at the request of the city. This language lintts repayment to being made from Dallas' surplus revenues from waterworks and sanitary saver operation but oxim Its the city to establish a rate which will Insure that the contract payments are mot. The city wishes to avoid financing the project as an unconditional obligation of the city because they believe that by so 4-cc roaslno the ayailable debt nsrgin of the city the Interest rate .ch would have to be give; In order to sell future ytneral obligation bosids would be Increased. Accoriitngly, the city wishes to finance the obligation solely out of rcvarues of the water and server systan. Financing the present contract out of systaa I StiFEci-PC iJ Jurne 1975 SULLCT: Aubrey Lnku - Firal crafts of tJatcr Supply Contracts rcvcrucs !s ux~pllcatcJ by tt,n varicas uv::nants nich the city has given in Its currently outst~"ndfn;y u~nas, First, the city i;as baj,u; Itself to settlnl rates and rokiny kayn,enta as follow is j 'The City will fix tend wafr,tain r.itas for the services of the System, F %,filch will produce In or,na suiPlcient at all tires to: (1) Fay all r operotiun, vaintun.iree, dcpreciaticr,, r:_plecc:v,ent and bottormcnt chard)" (Syst(.rn fund); (1.) Cst:.blish and ;.iaktaln the Special Watert,orks end Sanit.,tir•) 5c:or Syrtem i:,;vCnue lend ,tetlr%,nrent and Cuserve Fund (Loud Fc:r,d); (3) Fay the requirur•ents of all other outstsnding lawful Int1ebtCJn05S against tine System." All revenues of the system are first placed lit the system fund and are used to pay till operation end rsalntenurce w:penses of the system. The city is also rt;quired to maintain the bout fund, tdilch arountr to an escrow account for the payrrnt of the next rioturln5 stxnlannual v ir4cipal .:nd Interest j payment plus onn year's avcrc.ye prhirlpil and Interest payments. Any rwnles left in the systc:r:r fund after dlrciurce of the Wi r.nd botld fund requirements are defined by the covunants as surplus rev(;"o and r.iy be used for prior rstircYUent of the bonds or any other city lurpcso, lk4 over, the Dallas city ehgrtar declares the receipts from the water utilities department to be a { 113aered fund" which shall never bo oivertcd to any purpose outside the utilities system. Therefore, slnca the system fund wears operation and maintenance expenses and bortd rope,yW631t through the bond fund, the combined effect of the surplus roveni,a covenant and tfta "sacred fund" charter pro- vision Is to lhilt the use of surplus revenues for band repaycient or for capita) expenditure purposes within the system. Tho bond covenants further require tlwt the city "will riot contract with any portion, first, corporation, or public Instrumentallty, involving the purchase of rater for tho City or the disposal of the City's sowato unless: (1) This city's obligation under such contrect is financed as a capital expenditure; or (2) The City has secured from an Independent Certified Public Accountant a certificate showing that for the previous fiscal year the stet revenue of the System Is equal to at least the mInloum annual payments due uu'er any such contract, and 1,50 times the maximum annual principal and Interest requiranonts of all bonds thou outstanding which are payable solely from the System's net revenues." Accordingly, If the present contract Is to be financed out of system revenue, It roust be treated by tho city as a capital expenaituro and paid out of "surplus revenue," Over the past 14 years, Dallas has generated surplus ' revenue In each and every year ranging from a low of 4.2 million dollars to a high of 13.7 million dollars. J. In Article 70 the last sentence re,jarding project formulation based h on 100-yesr economic life Is added. The additional language which states the economic basis upon which the Prv joct was formulated Is added to give greater definition to the "life of the project" in thn first sentence of Article 7 and permanent rights of the city uncsor Article ud, This csunge was made at the requost of the city of Uallas In an attempt to den.unstrate, for the sake of present and future bondholders, that the city's rights under this contract liavo a finito value slml;nr to an equity In a property. 2 cool I fi SilFits-pL SUdJLCT; Aubrey Lake - Fina! L-rafts of later Supply cifitractsi; Juno 1y/5 4. In part, revisions re,;ulred by the rrvlrwr (r,Jorsw,,vnts of refercrced letter era zs follows; a. Tlra previously approved revisi;:n to "krtlcie 53{4) Is incluJud per If Paragraph W) of the S'Ivkb-T Ist Iu orsW cot, b. A section is added to rxhlblt A to .i-.rn+ the dcrlvatlcx► of rajor capital rep)ar,sr)*nts and sedir.,entation resurvuys costs par para;jruph 2b of the UALN-Wi-H 2d Indors",xint. I 5. Re,3arding paragraph 2d of tha PAEli-CVt-e 2d lncorsereent, the eeriputation j i r'"''thod shorn¢ does not account for tin cyst of future recreation facilities In the project, Our analysis of the eliovrable deferr.,ent Is as follows: initial construction cost Construction cost of future recreation facilities $14405(10,00%) Total estiruted project construction cost h, 45 co ~O 007 Total project cost allocated to water supply 30 percent of total project cost s 14 st x,5oo 00 Local Interests must take for present supply x`23 S Present supply3 City of Dallas yJD $34042,662 City of Denton 12 Ovsrsubserlptlav 46 409 300 owing 60 Pertinent to the revisions proposed by the district Is the following S discussion. ` Aubrey Lake has been formulated on the basis of serving water supply l\ sod recreation purposes. Although flood protect and fits wi basin are not Increased by the project, the lakeiwill beSene for la the lood control oleo, Including flood control storage In Aubrey Lake allows for the transfer of an equivalent portion of the flood control function out of LL.risvlile Lake to Aubrey L&Pe, This transfer of flood control storogo will permit the conservation pool level of Lewisville Lake to be raised Inereasiny the water supply capacity of the two lakes system and the Cecreation potential opportunities at Lewisville Lake. To permit this storage transfer, some supplementary construction work must be because of the Incroased recreation potential done heiLewlavllle Lake, Also, additional recreation facilities will be developed atLewisvilleeLal(u)nndOCr'ol' the provisions of Public Law ~9-72, These construatlon costs at Lewisville Lake are considered to be and areal of the truction of and have been Included In thatformulation studiescInsthe capital develr take cost of Aubrey Lake, Ths supplar,entery construction cost at Lewisville lake (not Including pryant maintenance costs ataAuoreyvLi,ke aretconsldercufto becjointluse costsn and 3 L M . 1 1 18 Juno iJ75 j SUWLLTt Aubroy Lake - Final Drafts of Water Supply Contracts appl[cable to Aubrey Lrka as servlr% the far:-ulnted functions for o;ater supply and rccrcatlcm anu hava Uo.or4 dlstrlLutud as such In the cost r~llocctir.~ stuJy for f,ubrey L:;ko. Bono of tho costs Involved In tha dr .vclci:.rcnt of ku„r'~y Lake have been allocated to or ch;•rr,cd to flc:.d roatrol. After owbrey Lalm is completed and In oinrat[ai, Loilsvillo L:ika tail continuo, as It Is prosently, to be operated for flc~ol cvvr;rol, hr::tar su{: ly, and recreation, with all operation and ruinttnance costs Incurred beinej applicable only to Luwlsvil[o Lake. Operation and h+alnten,:nce of the neat recreation ~cvelo}xnent at Lewisville Lake will be the responsibility of local Interests. Reduced flood control .,nd Increased c-inter supply In Lewisville Lake leads to a presumption that flood control uferetion and calntanonce costs should deereaso and ti:ater supply operation and maintenance costs :should 1 Ircrease; horevar, an analysis of operation sad maintenance requirements and costs for the project c'oas riot support this presuf.ptlon. Following is shorn the porFUnent field personnel campicrwnt operating the Lewisville Lake projects r Eosin Engineer, GS-13 1/6 Reservoir Haintenance Workerst Basin EryjIneer's Clerk, GS-05 1/6 Lead Foreman, WS-07 1 Reservoir manager, GS-11 i Uorkers, 4-03 2 Reservoir Ranger, GS-07 3 ibrkers, WG-05 2 Reservoir Rar,•sr, GS-05 1 Laborers, Vfj-03 2 Clerk, GS-05 I M analysis of personnel requirements at the project when tole conservation f pool level is raised from 515 feet roman sea level to 522 feet roan sea level Indicates no essential chance from the current staffing, Itedueing the flood U control capacity of the lake by about one-third will not materially affect the basic project staffing requirements or cost of operation of the project for the flood control purpose. Since the Government will retain operation end maintenance control of recreation featdros at Lewlsvilla Lake not addea by the development of Aubrey Lake, t.ie costs assoulated therewith are expected to ram I In essentially un"nged also. Water for water supply from Lewisville Lake is released, upon request from local Interests, under the control and direction of the district Lake Hydraulics Section. AlthouGih the raised conservation pool will provide about 25 percent more rater available for rnsnlcipal and Industrial water supply, we do not anticipate that any significant change will occur In the level of personnel activity and other operation and maintenance O argos for water supply. lie expect the oporating situation and cost of annual operation and mtalntenance at Lewisville Loko to be essentially unaffected by tine transfer of storage change In the normal pool level. The cities of Gallas and Denton are paying under the existing grater supply contracts 22.9 percent of the total annual operation ind maintenance costs, excluslye of operation Red seinteeancet costs for isnd management and public utilization, of A w e .,I r { SWFFa?-PC 1d June 1975 5U.bJLCT: Aubrey Lake - Final Prafts of tinter Supply Contracts Lewisville Lake. Sinco the percent to to maid ,.as estobllshod based on total proltct operation ona r.'3int.:nance ro ts, any inceaase In costs which ral Pub possibly develop, Lhc u~.h rat cx+~ ctcJ, vould be shared whit the Governrr,nt by the cities In an erjultcbic ;grunt. It may also be roasoned that If Inck,cJ there should be decreased flood i control operation and tiaintepooce costs anu Increarc s water cuppty operation and iwintenance costs at Lt-wisville Lake because of the storago transfer and r,>,d(fied operation for the two purposes, than 5uch costs have also been transferred to twbrey Lake In the form of th,a costs for operating Aubrey Lake for flow control. And that thusc costs at Aubrey Lake have been equitably distributed In the cost allocation analysis, 00 w,3ter suppl; bearing Its share for Its Increased water supply being node available In Lewisvllla Lake and recreation bearing Its share because of the hx reased recreation potential and benefits resulting from the ralsbd pool at Lewisville Lake, 83sed on the above analysis, we believe It to be unnecessary to Include In the Aubrey Lake contracts any provision for treatment or consideration of operation and mointenancu costs at Lewisville Lake because these are already. L reasawbly and equitably covered in existing contracts for Lewisville Lake E and the financial allocations approved for Aubrey Lake. We believe tho Inclosed contracts as now composed equitably treat the operation and inOnts- nanee charges for the two projects. i 7. With consideration for the foragaing discussion tie believe and 2c of the Witt-ME-3 2d Indorsmant are covered ~to the following revisions proposed by the district, i a. The first whereas paragraph Is reworded to define the capital cost of Aubrey Lake to Include the capital cost required at Lewisville Lake to develop the Aubrey Lake project. The previous second whereas paragraph Is delete'. b. At the and of Article 5a(9), three sentences are added to provide for annual payments and Interest In like manner to Article 5a(2)o e. In Articles 5b and 5c the requlrement for payments for Lewisville Lek* Is removed, and Article 5c is rewritten better to define the operation and maintenance payments for both present and future.wour supply. d. Exhlblt A Is revised as follows: (1j In Section 1, reference to the storages In Lewisville Lake below elevation $15.0 feet mil Is deleted to avoid the city of WI lasr contention that the storage conditions of the existing contract GA-41-443-ens-2453 ore affectod If such storages are referenced fn the Aubrey Lake contracts. S i r I~ Mr. Ivers/vvt/2203 l i' St.f [0- PC 18 Juno 1975 / SOWECT: Aubrey Lake - 11esjI Drafts of 14atur Supply Contracts I j~ (2) In Section III, footnota (2) is expanded better to defines ttra Investment cost to be repald anJ to support tho Iao0uago of Articla 5a, i (3) Section IV Is revised Lotter to shat the operation and malntenanee costs cc,"putattons. to provide for the ceotilexl of cxiputation of the future operation and maintenance payments reyulrcxl as stated In Article 5c, and to r delete Lewisville Luke. In Section VI (previously Section V), fig»res for future Water supply krtlcie Artlclo mkos provision for use of thn future i stay ants arinc itte s since (q') provides for tho Contract•rrj Offi.er to furnlsh rcpaymnt schedules as required. We recoam nd that the Inclosed drafts be approved for presentation to the cities for approval and execution, { 2 Inc) (quint) JOE H. SHEARD i. w/s contract draft - Dallas Colohal, CE I 2. w/s contract draft - Denton District Englnee, Copies furnished: j Ook of Couns w Incl j Prog Dev Or FTT wfo In tl 8AL fED-P BMSWFGC ~ lRO~ R)FED-G A~~00 F /Fw HAWKINS SWFEX Q LTC TRACY 5 D COL SHEARD S I MAIL RETURN To Coord Sec, Oil b Gas Bldg 6 r; DRAFT Contract No. DACW53-75-C-0000 CONTRACT BETWEEN THE UNITED STATES OF AMERICA AND THE CITY OF DENTON, TEUS FOR WATER STORAGE SPACES IN AUBREY AND LEWISVILLE LAKES, TEXAS Tt7IS CONTRACT, entered into this between the United States of America day of 1915 b represented b (hereinafter called the Cove by and by the Contracting Officer executing this contract, and ten, City Denton, Denton County, Texas (hereinafter called the City), he) WITNESS SSETH THAT; VHERF.AS the River and Harbor Act of 1965 (Public Law 89-298, 79 Stat. 1091) authorized the construction including as a part thereof operation and maintenance of Aubrey Lewisville Lake Lake, such supplementary existing e fromt construction at the will permit the transfer of ;immediately downstream from the Aubrey dam) as will e Aubre portion of the flood control storage in Lewisville Lae to y LSPA and make available in Lewisville Lake an equivalent storage for additional water supply for municipal and industria amount of l sea (hereinafter called the Project) on the Elm Fork of the Trinity River In the State of Texas; and +EREAS, the City a eiree to contract with the Government for the use of li storage included in AuD- Lake and the stora to available is Lewisville Lake for municipaldand industrialewateresupply a + for payment of the cost thereof in accordance with the provisions of t Supply Act of 1958, as amended (43 U.S.C. 390b); and he Water E ' KMRFA5, the City is empowered so to contract with the Government and ~ L vested with all the necessary of this contract, including those prequired bycSection 221 offthe the Purposes Act of 1970 (42 ti S C ~ .1962d-5b), Flood Con Control I' NOW, THEREFORE, the Government and the City agree as follows: ARTICLE 1. Water storage e ace, a. Pro act construction. ' Federal law and an -The Goverment, subject to the directions of the Project so as any limitations imposed thereby, shall design and construct the Pit to include in Aubrey Lake space for the storage of water b y and space for the storage of floodwaters which will permit the reallocation of flood control storage in Lewisville Lake to municipal and by industrial water supply storage, Is. AiBhts of the Ci w , (1) The City shall have the right percent (estimated to contain 2070900 acre feetugrossestoragesincluding26,0 storage for sediment deposits) of the total storage space in Aubrey Lake below elevation 632.5 feet above mean sea level, which total storage space is estimated to contain 799,600 acre-feet gross storage, including storage for sediment deposits, and (b) an undivided 26,0 percent (estimated to contain 461200 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Lewisville Lake between elevations 51510 feet abo';e rean sea level and 522,0 feet above mean sea level, which total storage space is estimated to contain 1779600 acre-feet gross storage, including storage for sediment deposits. The storage space in Lewisville Lake is to be used to impound water for present demand or need for municipal and industrial water supply; and the storage spat.; in Aubrey Lake is to be used to impound water for present and anticipated future demands or needs for municipal and industrial water supply. In Aubrey Lake, 50 percent (an estimated 103,950 acre-feet) of the space which the City has a right to utilize is for present use water storage and 50 percent (an estimated 103,950 acre-feet) is for future use water storage. E (2) The City shall have the right to withdraw or transfer water from or transfer water into either or both of the two lakes, or to order releases to be made by the Government through the outlet works in the dame, subject to the provisions of Article lc and to the extent the aforesaid storage spaces will provide, and shall have the right to construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose of transfers or withdrawals, subject to the approval of the Contracting Officer as to design and location. The grant of easements for right-of-way across, in, and j upon land of the Government at Aubrey Lake and at Lewisville Lake shall be by separate instrument in a form satisfactory to the Secretary of the Army, without additional cost to the City, under the authority of and in accordance with the provisions of 10 U.S.C. 2669. Subject to the conditions of such easements, thq City shall have the right to use so much of Aubrey Lake and Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges herein granted. c.' Rights reserved, The Government reserves the right to lower the water in Aubrey Lake to elevation 632,5 feet above mean sea level and to j lover the water in Lewisville Lake to elevation 522.0 feet above mean sea level during such periods of time as is deemed necessary, in its sole discretion, fnr flood control purposes. The Government further reserves the right to take such measures as may be necessary in the operation of Aubrey Lake and Lewisville Lake to preserve life or property, d, alt or availabili of water, The City recognizes that this contract provides storage spaces for raw water only, The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor or for the treatment of water. ARTICLE 2. Regulation of and right to use of water. The regulation of the use of water withdrawn or released from or transferred to or from the aforesaid storage spaces shall be tha sole responsibility of the City, The City has the full responsibility to acquire in accordance with State laws and regulations, and if necessary to establish or defend, any and all water rights needed for utilization of the storages provided under this contract. The Government shall not be responsible for withdrawals, transfers, or diversions by others, nor will it become a party to any controversies 2 involving the use of the storage spaces by the City except as such contro- versies may affect the operations of the Government. ARTICLE 3. Operation and maintenance. The Government shall operate and maintain Aubrey Lake and Lewisville Lake, and the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5. The City stall be responsible for operation and maintenance of all installations and facilities which it may construct for the transfer into or out of or withdrawal of water from either or both of the two lakes and shall bear all costs of construction, operation, and maintenance of such installations and facilities. E ARTICLE 4. ".,asurement of withdrawals and releases. The City agrees to furnish and install, without cost to the Government, suitable meters or measuring devices satisfactory to the Contracting Officer for the measurement of water which is transferred into Aubrey Lake or Lewisville Lake or is with- drawn or transferred from Aubrey Lake or Lewisville Lake by any means other than through Aubrey Lake or Lewisville Lake cutlet works. The City shall furnish to the Government monthly statements of all such withdrawals or trans- fers. Releases from the water supply storage spaces through Aubrey Lake or Lewisville Lake outlet works shall be made in accordance with written schedules furnished by the City and approved by the Contracting Officer and shall be sub- ject to Article lc, The measure of all euch releases shall be by means of a rating curve of the outlet works or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces. ARTICLE 5. Payments. In consideration of the right to utilize the aforesaid storage spaces in Aubrey Lake and Lewisville Lake for municipal and i industrial water supply purposes, the City shall pay the following sums to ff the Government: 1 1 a. Project investment costs. i I (1) The City shall: repay to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amount of Vat construction costs, including interest during con- struction, allocated to the water storage rights acquired by the City under this contract, The interest rate to be used for purposes of computing interest during construction and interest on the unpaid balance will 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 set forth in the Water Supply Act of 19580 as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1975) is 4,371 percent. The City shall repay: 26 percent of the construction cost of specific water supply facilities, estimated at $ 37,700 '8.672 percent of the total Project joint use construction cost, estimated at 23,3249000 Interest during construction, estimated at 2,085,800 Total estimated amount of Project investment cost allocated to 26 percent of the water supply $251447,500 3 i (2) The Project investment cost allocated to the storage spaces indicated in Article lb(1) as being provided for present demand is ca.rrently estimated at $139143,800 on the basis of the costs presented in Exhibit A of this contract. The amount of the Project investment cost allocated to the storages for present demand shall be paid in 50 consecutive annual payments, the first of which shall be due and payable within 30 daps after the City is notified by the Contracting Officer that the Project is completed and operational for water supply purposes. Annual payments thereafter will be due and payable on the anniversary date of said notification by the Contracting Officer. Except for the first payment, which will be applied solely to the retirement of principal, all payments shall include accrued interest on the unpaid balance at the rate provided above. The last annual payment shall be adjust-ed upward or downward when due to assure repayment of all of the investment cost alltcated to the storages for present demand within 50 years. (3) The Project investment co,t allocated to the remaining portion of the storage space, that provided in Aubrey Lake for future use, is currently estimated at $12,303,700 on the basis of the costs presented in Exhibit A. No principal or interest payment with respect to this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply purposes unless all or a portion of such storage is used for purposes of withdrawal of water from or transfer of water into or from Aubrey Lake during this period. The amount to be paid for any portion of such storage which is used shall be determined by multiplying the percentage of the total storage for future water supply which is placed in i use by the total amount of the Project investment cost allocated to future water supply. Interest at the rate provided above will be charged on *'r,e amount of the Project investment cost allocated to the storage for future water supply which is not being used from the tenth (10th) year following the date the Project is operational for water supply purposes until the time when such storage is first used. The City may at its option pay the interest as it becomes due or allow the interest to accumulate until the storage is csed. If this latter option is exercised, the interest will be compounded annually and added to the principal amount. When any portion of the storage for future water supply is used, payment in both principal and accrued interest for the portion used must be started, and the amount of the Project investment cost allocated thereto shall be paid within the life of the Project in not to exceed 50 consecutive annual payments beginning within 30 days a=t".r the date of first use of such portion. Annual payments thereafter for the said portion will be due and payable on the anniversary date of first use. For any portion, except for the first payment which will be applied solely to the retirement of principal (including accrued interest), all payments shall include Interest on the unpaid balance at the rate provided above. The last annual payment for any portion shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the st:rage within the repayment period. (4) An estimated schedule of annual payments for the storages provided for present demand is attached as Exhibit H of this contract. The annual payments as provided therein shall be made until an interim estimated 4 y TM1 h Kai determination of cost or a final determination of cost is made. Within two years after the Project is completed and operational for water supply pur- poses, the Conty;icting Officer shall make a revised interim estimated determination of construction costs, including interest during construction and taking into account the actual costs to the extent they are then known. In like tanner, further interim determinations shall be made at two year intervals until all actual costs are known, at which time the Contracting Officer shall prepare a final cost determination, including interest during construction. On each occasion of an interim determination, or on final determination, the annual payments thereafter due shall be changed so as to provide for the payment of tae balance due in equal payments during the remaining life of the repayment period; and a revised schedule of annual payments shall be furnished to the City. Payment schedules for the storage provided for future water supply demands will be furnished by the Contracting Officer when use of such storage is started, ana if based on estimated coals Will be subject to revision when actual costs are known. (5) If the City shall fail to make any of the aforesaid payments when due, then the overdue payments shall bear interest compounded annually at the rate provided above until paid. The amount charged on payments overdue for a period of less than one year shall be figured on a monthly basis. For example, if the payment is made within the first month after being overdue i (31 to 60 days after the anniversary date), one month's interest shall be charged. This provision shall not be construed as giving the City a choice j of either making payments when due or paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equityo which might result from any default by the City. (6) The City shall have the right at any time it so elects to prepay the indebtedness under this Article 5a, in whole or in part, with accrued interest thereon to the date of such prepayment. b. Major capita; replacement costs and sedimentation resurveys costs. The City will be required to pay 26 percent of the cost for any major capital replacement of specific water supply facilities at Aubrey Lake. In addition, the C.ty shall pay to the Government 8.543 percent of the costs of joint use major capital replacement items at Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the joint use major capital replacement i capital tems costs, which the City will be required to pay in addition to the major Increasedecommensurateswithfththe specific e percentage water water facilities, of e the supply supply i storage lbeing used up to a total of 17.066 percent of such costs. The City will be required to pay 9.764 percent of the costs of sedimentation resurveys at Aubrey Lake latil such time as the storage for future water supply is used. As the storsze provided for future water supply demands is used, the share of the sedimentation resurveys costs which the City will he required to pay will be increased commensurate with the percentage of the water supply storage being used up to a total of 19.528 percent of such costs. Payment shall be made either in lump sum or annually with interest on the unpaid balance at the rate 5 r•.e ~sti.r FM provided above. If paid annually, the first payment shall be made with the first annual payment on the Project I ,vestment cost becoming due after the date said major capital replacement costs or sedimentation resurveys costs are incurred. co Annual operation and maintenance costs. The City will be required to pay 26 percent of the annual experienced operation and maintenance costs of specific water supply facilities at Aubrey Lake. In addition, the City shall pay 7.447 percent of the annual experienced joint use operation and maintenance costs of Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the annual experienced joint use operation and maintenance costs, which the City will be required to pay in addition to the operation and maintenance costs of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used up to a total of 14.894 percent of such costs. The first payment for operation and maintenance costs of Aubrey Lake will be due and payable in advance within 30 days after the Contracting Officer notifies the City that the Project is completed and operational for water supply purposes, will be for the period beginning on the date the Project is operational for water supply purposes and ending on 30 September following, and will amount to the pro rata share for this period of the estimated annual payment of $23,036 computed based on the cost estimates shown In section IV of Exhibit A and the percentage (50 percent) of the total water supply storage in use for present supply. The second payment, l for the ensuing Government fiscal year ending 30 September, in the amount of the estimated annual payment of $23,036, will be due and payable in advance on 1 October following the date the Project is operational for water supply purposes. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following and will be computed based on the actual experienced costs for the preceding Government fiscal year. The third payment shall be increased or decreased I by an amount being the difference between the sum of the first and second payments as computed based on the actual costs experienced for the stated periods and the sun of the first and second payments by the City based on the estimated costs for the same periods. * en each and any portion of the future water supply storage is placed in use, the first payment of the additional amount of the joint use operation and maintenance costs required to be paid for such storage use will be due and payable in advance within 30 days after first use of such storage, will be for the period beginning on the date of said first use and ending on 30 September following, and will amount to the pro rata share for this period of an annual payment for the portion. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on the dates corresponding with the payments due !or present use storage and will be computed based on actual experienced costa for the preceding Government fiscal year, except for the second payment only In the event it should be due and payable on 1 October. In the event the second aayment is due and payable on 1 October, it will be based on the annual joint use cost estimate in section IV of Exhibit R and adjusted for actual experienced costs in the third payment in the manner described above for present use Supply Payments. Annual payments shall be computed as shown in section IV of Exhibit A. 6 I ARTICLE 6. Construction cost adwstments. All construction cost dollar amounts in this contract, including those in the Exhibits, are tentative only based on the Government's best estimates. They will be adjusted upward or downward by the Contracting Officer when final construction costs become known, and the contract will be modified to reflect the adjustments. ARTICLE 7. Duration of contract. This contract shall be effective when approved by the Secretary of the Army and shall continue in full force and effect for the life of Aubrey Lake and Lewisville Lake. Both Aubrey Lake and the additional storage to be made available in Lewisville Lake have been formulated on the basis of 100 years economic life, ARTICLE 8. Periaanent rights to storage. Upon completion of payments by the City as provided is Article 5a herein, the City shall have a permanent right, under the provisions of the Act of 16 October 1963 (Public Law 88-140, 43 U.S.C. 390e), to the use of the water supply storage spaces in Aubrey Lake and Lewisville Lake as provided in Article 1, subject to the following: a. The City shall continue payment of its share, as provided in Article 5c, of the annual operation and maintenance costs allocated to water supply. b. The City shall bear 26 percent of the costs allocated to (1) water supply for Aubrey Lake sad (2) the total storage space between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level for Lewisville Lake of any necessary reconstruction, rehabilitation, or replace- ment of Aubrey Lake or Lewisville Lake features which may be required to continue satisfactory operation of Aubrey Lake or Lewisville Lake. Such costs •'1I be established by the Contracting Officer. Repayment arrangements, iw-lading schedules, will be in writing and will be made a part of this ~`J1 contract. c. Upcn completion of payments by the City as provided in Article 5a herein, the Contracting Officer shall redetermine the storage space for municioal and industrial water supply in Aubrey Lake, taking into account such e.tuitable reallocation of lake storage capacities among the purposes served by Aubrey Lake as may be necessary due to sedimentation. Such findings, and the storage apace allocated to municipal and industrial water supply, shall be defined and described in an exhibit which will be made a paic of this contract. Following the same principle, such reallocation of lake storage capacities may be further adjusted from tip i 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. d. The permanent rights of the City under this contract shall be continued so long &a the Government continues to operate Aubrey Lake and/or Lewisville Lake. In the event the Government no longer operates Aubrey Lake or Lewisville Lake, such rights may be continued subject to the ex,acution of a separate contract, or supplemental agreement, providing fox; I 7 r R 1Ktr 1 (1) Continued operation by the City of such part of the facility as is necessary for utilization of the water supply storage spaces allocated to it; (2) Terms which will protect the public interest; and (3) Effective absolvemant of the Government by the City from all liability in connection with such continued operation. ARTICLE 9. Release of claims. The City shall hold and save the Government, inclu3ing its officers, agents, 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 storages in Aubrey Lake and/or Lewisville Lake, or withdrawal or release of water from or transfer of water to or from Aubrey Lake or Lewisville Lake made or ordered by the City, or as a result of the construction, operation, or maintenance of the features of appurtenances owned and operated by the City, provided, that this shall not be construed as obligating the City to hold and save the Government harmless from damages or liability resulting from the sole negligence of the Government or its officers, agents, or employees and not involving negligence on the part of the City or its officers, agents, or employees. ARTICLE 10. Assignment. The City shall not transfer or assigr this contract or any rights acquired thereunder, nor sub-allot said water supply storage•spoces or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without the approval of I the Secretary of the Army, provided, that unless contrary to the public interest, this restriction shall not be construed to apply to any water that my be obtained from the water supply storage spaces by the City and furnished to any third party or parties, nor any method of allocation thereof. ARTICLE 11. 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 12. 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 agreement or understanding for a commission, percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty, the Government shall have the right to annul this contract 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. ARTICLE 13. Environmental quality. During any construction, operation, a..' maintenance by the City of auy•facilities, specific actions will be taken 8 -S to control environmental pollution which could result from such activity and to comply with applicable Federal, State, and local laws and regulations concerning environmental pollution, Particular attention should be given to (1) reduction of air pollution by control of burning, minimization of dust, containment of chemical vapors, and control. of engine exhaust gases and smoke from temporary heaters; (2) reduction of water pollution by control of sanitary facilities, storage of fuels and other contaminants, and control of turbidity and siltation from erosion; (3) minimization of noise levels; (4) oneite and offsite disposal of waste and spoil; and (5) prevention of landscape defacement and damage. ARTICLE 14. Federal and State laws, r a. In acting under its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davis-Bacon Act (40 U.S.C. 276a et seq.); the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3. b. The City furnishes as part of this contract an assurance (Exhibit Q that it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat. 241, 42 U.S.C. 20004 et seq.) and Department of Defense Directive 5500.11 issued pursuant thereto and published in Part 300 of Title 32, Code of Federal Regulations. ARTICLE 15. Definitions. I a. Joint _use ;Date. Pro The coats of features used for any two or more Project Purposes. b. Project investment costs. The initial cost of the Project, thIncl e valiue oflland, labor, i and materials i used Interest for r duringndcoconstructionnstruction of the Project, C. Specific costs. The costa of Project features normally serving only one partie ar Project purpose, d.nditure ints ferestor Burin construction. An amount of interest which accrues on expe the establishment of Project services during the period between the actual outlay and the time the Project is first made available to the City for water storage. ARTICLE 16. Oproval. This contract is subject to the written approval of the Secretary o the Armyy, and it shall not be binding until so approved. 9 f IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. j APPROVED: THE UNITED STATES OF AMERICA By ' Joe H. Sheard Secretary of the Army Colonel CE Contracting Officer E Date r CITY OF DENTON, TEXAS By Tom D, Jester, Jr, Mayor i, Brooks Holt, certify that.1 am the City Secretary of the City of Denton, i Denton County, Texas, named as City herein; that Tom D. Jester, Jr. who S signed this contract on behalf of the City of Denton was then Mayor of the City of Denton, Texas; that said contract was duly signed for and on behalf of the City of Denton, Texas by authority of its gove'.ning body and is within the scopa of its legal powers. IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said City of Denton, Texas this day of 1975, Brooks Holt Secretary City of Denton, Texas CORPORATE SEAL 10 gg -y "Oil Contract No. DACU63-75-0-0000 AUBREY AND LEWISVILLE LAKES ' 111BIT A • I -LAKE STORAGES AubreS Lake Gross Percent Percent of Elevation Feature storage of gross water supply feet ms1 -(acre-feet) stora e j . s tors Re Flood control 632.5-640.5 265 000 Mater supply below 632,5 092 799' 24.108 (City of Dallas ,600 75.108 100,0 ) below 632.5 (591,700 ) (55,580) (City of Denton) below 632.5 (74,0) Totals 207 900 19.528 (26.0) 100649600 100.000 Lewisville Lake } Gross Percent Percent of Feature Elevation storage (1) of gross _ (acr_e feet, water storagesupply store e 2 ' Flood control 522.0-532.0 3369100 I Water supply 515.0-522.0 177,600 3465.427 .573 (City of Dallas) 515.0-522.0 (131.400) 100.0 (City of Denton) 515.0-522,0 (25.584) (74,0) Totals 46 200 8.989) (26.0) 5139700(2) 100.000 (1) 1985 condition. (2) Between elevations 515.0 and 532,0 feet msi. II - ?IMF" ESTIMATED CONSTRUCTION LNVESTMENT TO BE ALLOCATED Federal construction cost Nonreimbursable costs (unallocable) (l) 6149,6030000 Project cost to be allocated --5.840,000 Interest during construction on allocable cost $I9,761,000 Project construction investment to be allocated 11 611 06v (2) 155,3 4,000 (1) ltrlocation of roads above replacement-in-kicd standards, (2) Interest rate - 3,252. Interest rate for reimbursable amounts will be set as of the beginning of the fiscal year in which construction of the Project is started. ' A-1 f IEI - ALLOCATION OF ESTIMTED CONSTRUCTION TNvEsTmM (Separable costs - remaining benefits method] Water supply Recreation Totals 1. Specific facilities cost: $ 145,000 $18,703,000 $ 189848,000 Aubrey Lake (14500OG) (16,433,000) (16,576,000) Lewisville Lake (0) (20270,000) (292700000) 2. Joint use facilities cost: EQ,707,600 3592070400 124,9150000 Aubrey Lake (86,7412600) (340043,400) (120,785,000) Lewisville Lake _J? a966 009 1 164 000) (4,130,000) c ! Subtotals - cost $89 852 690 $539916$400 $1430763,000 { 3, Interest during c Aesibt=ectLake (1) 8 022 400 395889600 11,611,000 Y (71757,300) (394100800) (1191680100) Lewisville Lake (265,100) (177,800) (442,900) 4. Total allocation- investment: $97,8759000 (2) $57,499,000 $155 374 000 Aubrey Lake , Lewisville Lake (94,643,900) (53,8879200) (148,531,100, (392310100) (3,6111800) (6,8429900) (1) Interest rate - 3,252. Interest rate for reimbursable amounts will be set as of the beginning of the fiscal year Sn which construction of the Project is started. } (2) Investment cost to be repaid by: Lewisville Lake Aubrey Lake Totals City of Dallas - 74% 2,391,000 $700036,500 $J2,427,5T0 Present water supply (29391,000) (3590189250) (37,409,250) ! Future water supply (0) (3500180250) (35,018,250) City of Denton - 26% 8409100 249607,400 2594479500 Present water supply (840,100) (12,303,700) (1301439800) ` Future Totals supply (0) (12,303,700) (12,303.700) $3,231,100 $949643,900 $97,875,000 IV - ALLOCATION OF ESTIMATED OPERATION AND MAINTENANCE COSTS Aubrey Lake Water supply Recreation Total 1. Specific coat $ 470700 $4359000 $4820700 2. Distribution of joint use cost (percent) 57,283 42,717 100.000 3. Allocated joint use cost 81J00 61.000 142.800 4. Total allocation 1299500 4960000 25,500 i To be paid by the City of Denton; i 262 of specific cost for water supply facilities $120402 Aubrey Lake joint use cost: Present w/a (0,50 x 0.26 x 0.57283 x $142,800) 10 634 Future w/s (0.50 x 0.26 x 0.57283 x $1420600) (1) 10634 r Total $33o670 A-2 (13 Additional annual amounts of joint use cost required to be paid as • future water supply storage is used will be computed as follows: Percent of future w/s storage placed in use I00 x 0.50 x 0.14894 x annual joint use cost* *Estimated or actual, as applicable, V - ALLOCATION OF ESTIMATED MAJOR CAPITAL REPLACEMENTS COSTS AND SEDINMNTATION RESLIRVEYS COSTS L. Major capital replacements coats: (1) Au_ brey Lake Water i, Specific coat su I Recreation Total 2. Distribution of joist use coat 1.100 $10` 800 $108,900 3. Allocates joint use cost (percent) 65.714 34.200 100.000 86 4. Total allccatioa 2 300 1.200 3.500 3,400 y209,000 $112,400 To be paid by the City of Denton: 26X of specific cost for water supply facilities Aubrey Lake joint use cost: $286 Present w/o (0,50 x 0.26 x 0.65714 x $3,500) Future w/o (0,50 x 0.26 x 0.65714 x $3,500) (2) 299 Total 299 I } m 1 (1) Estimates of average annual charges are used for determination of Lj allocated percentages. All charges will be based on the indicated per- 1 centages of actual costa if and when they are incurred, (2) Additional amounts of joint use crat required to be paid as future water supply storage is used will be computed as follows: Percent of future w/s ' storage placed in use 100 x 0.50 x 0,17086 x actual joint use coat 8. Sodimentation resurvero W Aubrey Lake Sedimentation resurveys costs allocates the City of Denton are -d to water supply and to be paid by based Lake representedbythe n stothe rage rright gof thehCityoss storage in of thia Exhibit A. Y - nee sestina I Present water supply • ij x 19,5282 a 9.764% Future water supply Percent of future w/o stora a laced in use loo x 9.7642 C A-3 r y t -10 t F VI - OOMPUTATIONS FOR AN:QL'AL PAYMENTS FOR INTEREST AND AMORTIZATION Present water supply; Amount to be amortized: Lewisville Lake $ 3,231,100 x 0.26 $ 8409100 Aubrey Lake $94,643,900 x 0.26 x 0,50 12 303 700 Total 13,143,800 Based on 50 equal payments, 49 of which bear interest on the unpaid balance r \E1 at the rate of 4,371 percent. i P A- P Where: P- annual payment A - amount to be repaid - $13,143,800 i + c i - interest rate - 4,3712 I c - amortization coefficient for 49 years - 0.006125257063 $13.143,800 - P p - 1 0.04371 + 0,006125257063 20.06611501P - $13,143,800 - P 21.06611501P - $13,143,800 P - $623,930.90 a , A-4 ^r ~N i 1 y i Contract No. DACW63-75-C-0000 AUBREY A!-'ILL qW.TSITLLE LAKES EXHIBIT B PAYM£~T SCHEDULE YR. ?AY'4E"1T T3 ?A`.AT'IT TIR TIT1L N2. INTE't-ST ?RINCCIII1L oA. DUE „YIs.I. T?~ 1 13143300.00 0.00 623937.90 623937.97 1^51935?.l7 2 547243.43 76637.4? 5?3130.90 12443131.6? 3 543391.47 60039.43 623930.97 Io- 4 540392.95 83537.95 6? c 123631-x_._?1 5 536741.50 87189.47 3 30.90 14.30 6 53293x.45 91003.44 633939300.90 12311924924114.40 9 f 45 7 528952983 94978.07 623930.90 12[0[4.3 8 524801.33 99129.57 62.97 120064366.39 9 520463.38 103462.52 ,3930.99 11907306.3? 10 515946.03 107984.87 623930.90 11695359.43 11 511226.02 112704.33 623930.91 11583154.55 12 506299.69 117631.21 633930.90 11465533.34 13 501158.03 122772.97 623y200.90 11342750.47 14 49S791.62 128139.28 623930.90 11214611.19 1.5 490194-66 133740.24 623930.90 11087370.95 16 484344.87 139586.03 623933.90 10941?34.92 17 478243.56 145587.34 623931.90 10795597953 18 471875.57 152055.33 623930.93 10643542.25 19 465229.23 153701.67 623937.9? 10484340.53 f 20 458292.38 k 21 451052.32 165638.52 623930.90 10319202.06 22 443495.80 172878.58 623930.90 101463?3.43 i 23 180435.10 623930.90 9965338.39 E 24 4 435608*98 27377.43 188321.92 623930.90 9777566.46 196553.47 623930.90 9581012.99 25 418786.08 205144.6? 623930.90 9375869.17 26 409879.20 214111.70 623930.90 9161756.47 27 40046048 223470.5? ~ 28 390693.48 ~ 6_o3930.90 8934285.95 2 9 380497.63 233238.4. 623930.91 3705047.51 243433.27 623930.90 8461614.26 ! 30 369857.16 254073.74 623930.90 8207543.52 j 31 358751.60 265179.30 623930.90 7942361.2? 32 147160.61 276770.29 6?3930.90 7665591.93 33 335052.98 288867.92 623930.90 7376723.01 34 322436.56 301494.34 623930.90 35 309254.25 314672.65 7075225-0 2 36 295503.90 6_3930.90 6760556.03 37 28!148.36 32842,.00 623930.90 6432129.0? 38 266165.33 357765.57 623930.90 57311580.91 39 250527.40 373403.53 633930.90 40 234205.93 389724.97 5353177941 41 217171.06 6-23930.90 4968452.44 42 199391.56 4067S9.84 623977.90 4561691.50 43 180$34.97 424539.32 623930.91 413715.1.23 44 161467.25 443095.93 623930.90 369405!.35 45 462467.65 623930.90 3231593.70 141252.96 482677.94 623930.90 2749915.76 46 120155.1i 50377509 623930.90 23 47 98135.07 525795.83 45139.97 4 7 8 52-S3 75135.07 623930.90 1719304.14 49 51165-43 548778.37 623930.90 1170565-7? 4 572755.47 623933.90 5914:0.30 26129.85 597833.33 623930.15 0.70 0-1 ~wsrw w 1 s Contract No. DACW63-75-0-0000 AUBREY AND LEWISVILLE LAKES n.BIT C ASSURANCE OF COMPLIANCE WITH THE DEPARTMENT OF DEFENSE DIRECTIVE UNDER TITLE V: OF THE CIVIL RIGHTS ACT OF 1964 The City of Denton, Denton County, Texts (hereinafter called "Applicant- Recipient") HEREBY AGREES THAT it will comply with title VI of the Civil Rights Act of 1964 (Public Law 88-352) and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 3000 Issued as Department of Defense Directive 5500.11, December 28, 1964) Issued pursuant to that title, tc 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 for which the Applicant-Recipient receives Federal financial assistance from the U. S. Army Corps of Engineers and ' HEREBY GIVES ASSURANCE THAT it will immediately take any measures necessary to effectuate this agreement. I If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the Applicant-Recipient by the U S Army Corps of Engineers, assurance shall obligate the Applicant- Recipient, or in the case of any transfer of such property, auy transferee, U for the period during which the real property oc structure is used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If eny personal property is so provided, this assurance shall obligate the Applicant-Recipient fer the period during which it retains ownership or possession of the property. In all other cases, this assurance stall obligate the Applicant-Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers. 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 hereof to the Applicant-Recipient b- the Department, including installment payments after such date on account ;ot arrangements for Federal financial assistance which were approved before such date, The Applicant-Recipient recognises and agrees that such Federal 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 C-1 judicial enforcement of this assurance. This assurance is binding on the Applicant-Recipient. its successors, transferees, and assignees; and the person or persons whose signatures appear below are authorized to sign this assurance on behalf of the Applicant-Recipient. THE CITY OF DENTON, TEXAS i Dated By Tom D. Jester, Jr. Mayor t 1 ATTEST: i Brooks Holt { Secretary City of Denton, Texas ~ I C-2 3 I Contract No. DP.CW63-75-C-0000 AUBREY AND LEWISVILLE LAKES i - EXHIBIT D OPINION OF COUNSEL E I have reviewed and approved contract number DACW63-73-C-0000 between I the United States of America and the City of Denton, Texas. Particularly I have considered the effect of Section 221 of Public Law 91-611 (42 U.S.C. 1962d-5b) and am of the opinion that the City of Denton, Texas has the requisite legal authority to enter into and comply with this agreement as required by the aforementioned statute. 1 Dated Paul C. Isham City Attorney City of Denton, Texas D-1 PR ..A Z , /JJi~N 7J D RAFT Contract No. DACW63-75-C-0000 CONTRACT BETSTM THE UNITED STATES OF AMERICA ADD THE CITY OF DALLAS, TEXAS FOR WATER STORAGE SPACES IN AUBREY AND 1EWISVILLE LAKES, TEXAS THIS CONTRACT, entered into this day of 1975, by and between the United States of America (hereinafter called the Government), represented by the Contracting Officer executing this contract, and the City of Dallas, Dallas County, Texas (hereinafter called the City), WITNESSETH THAT: WHEREAS, the River and Harbor Act of 1965 (Public Law 89-298, 79 Stat. 1091) authorized the construction, operation, and maintenance of Aubrey Lake, including as a part thereof such supplementary construction at the existing Lewisville Lake (immediately downstream from the Aubrey dam) as will permit the transfer of a portion of the flood control storage in Lewisville Lake to Aubrey Lake and make available in Lewisville Lake an equivalent amount of storage for additional water supply for municipal and industrial uses, (hereinafter called the Project) on the Elm Fork of the Trinity River in the State of Texas; and WHEREAS, the City desires to contract with the Government for the use of storage included in Aubrey Lake and the additional storage to b^ made i available in Lewisville Lake for municipal and industrial water supply and for payment of the cost thereof in accordance with the provisions of the Water Supply Act of 1958, as amended (43 U.S.C. 390b); and 1 WHEREAS, the City is empowered so to contract with the Government and is vested with all the necessary powers for accomplishment of the purposes of this contract, including those required by Section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b); NOW, THEREFORE, the Government and the City agree as followst ARTICLE 1. Water storage space. a. Project construction. The Government, subject to the directions of Federal law and any limitations imposed thereby, shall design and construct the Project so as to include in Aubrey Lake space for the storage of water by the City and space for the storage of floodwaters which will permit the reallocation of flood control storage in Lewisville Lake to municipal and industrial water supply storage. b. Rights of the City. (1) The City shall have the Tight to utilise (a) an undivided 74.0 percent (estimated to contain 591,700 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Aubrey Lake below elevation 632.5 feet above mean sea level, which total storage space is estimated to contain 799,600 acre-feet gross Storage, including storage for • sediment deposits, and (b) an undivided 74.0 131,400 acre-feet gross storage, including percent (estimated to contain storage for sedimeits of the total storage space in Lewisville Lake b etween elevationsn515.0ofeet)above mean sea level and 522.0 feet above mean sea level, which total storage space is estimated to contain 1779600 acre-feet gross storage, including storage for sediment deposits.' The storage apace in Lewisville Lake is to be used to impound water for present demand or need for municipal and indt,striai water the storaya orppresent and ineedss to a nd water water supply. In Aubrey Lake, 50 percent (an estimated 295,850acre-feet)sofial indu the space which the City has a right to utilize is for present use water storage and 50 percent (an estimated 295,850 acre-feet) is for future use water storage, (2) The City shall have the right to withdraw or transfer water from or transfer water into either or both of the two lakes, or to order releases to be made by the Government through the outlet works in the dams, subject to the F provisions of Article lc and the extent the aforesaid storage spaces w!ll provide, and shall have the right to construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose or withdrawals, subject to the approval of the Contracting Officer oasttonsfers design and location. The grant of easements for right-of-way across, in, and upon land of the Government at Aubrey Lake and at Lewisville Lake shall be by f separate instrument in a form satisfactory to the Secretary of the Army, without additional cost to the City, under the authority of ana in accordance 4 with the provisions of 10 U.S.C. 2669. Subject to the conditions of such easements, the City shall have the right to use so much of Aubrey Lake and Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges herein granted. c. Rights reserved water in Aubrey , The Government reserves the right to lower the rey Lake to elevation 612,5 feet above mean sea level and to lower the water in Lewisville Lake to elevation 522,0 feet above mean sea level during such periods of time as is deemed necessary, in its sole discretion, for flood control purposes, The Government further reserves the right to take such measures as may be necessary in the operation of Aubrey Lake and Lewisville Lake to preserve life or property, d. Quality or availability of water. The City recognizes that this contract provides storage spaces for raw water only, The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor or for the treatment of water. ARTICLE 2, P.egulation of and right to use of water. The regulation of the use of water withdrawn or released from or transferred to or from the aforesaid storage spaces shall be the sole responsibility of the City, The City has the full responsibility to acquire in accordance with State laws and regulations, and if necessary to establish or defend, any and all water rights needed for utilization of the storages provided under this contract, The Government shall not be responsible for withdrawals, transfers, or diversions by others, nor will it become a party to any controversies 2 r involv_ng the use of the storage spaces by the City except as such contro- versies may affect the operations of the Government. ARTICLE 3. 2peration and maintenance. The Government shall operate and maintain 'ubrey Lake and Lewisville Lake, and the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5. The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the transfer into or out of or withdrawal of water from either or both of the two lakes and shall bear all costs of construction, operation, and maintenance of such installations and facilities. { ARTICLE 4, Measurement of withdrawals and releases. T t furnish and install, without cost to the Government, suitableemetersaog=ees to measuring devices satisfactory to the Contracting Officer for the measurement of water which is transferred into Aubrey Lake or Lewisville Lake or is with- drawn or transferred from Aubrey Lake or Lewisville Lake by any means other than through Aubrey Lake or Lewisville Lake outlet works, The City shall furnish to the Government monthly statements of all such withdrawals or trans- Pers. Releases from the water supply storage spaces through Aubrey Iake or Lewisville Lake outlet woks shall be made in accordance with written schedules furnished by tbi City and approved by the Contracting Officer and shall be sub- E Ject to Article Ic. The measure of all such releases shall be by means of a rating curve of the outlet works or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces. I ARTICLE 5. Pa meats, In consideration of the right to utilise the aforesaid storage spaces in Aubrey Lake and Lewisville Lake for municipal and + industrial water supply purposes, the City shall pay the following sums to the Government= i a. Proleet investment costs. (1) The City shall repay to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire structi n,al ocatedtto theswateristoragesrighttsuacquired e by s he City under this contract. The interest rate to be used for purposes of computing interest during construction and interest on the unpaid balance will be determined by~ the Secretary of the Treasury as of the beginning of thavHaca_1'year in"Which construction of the Project is initiated on the basis set forth in the Water Supply Act of 19580 as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1915) is 4.371 percent. The City shall repay; 74 percent of the construction cost of specific water supply facilities, estimated at $ 1076300 53.143 percent of the total Project joint use construction cost, estimated at 6603830600 Interest during construction, estimated at 51936, 608 Total estimated amount of Project investment cost allocated to 74 percent of the water supply $7294270500 3 nVy. hK • (2) The Project investment cost allocated to the storage spaces indicated in Article lb(1) as being provided for present demand is currently estimated at $37,404,250 on the basis of the costs presented in Exhibit A of this contract. The amount of the Project investment cost allocated to the storages for present demand shall be paid in 50 consecutive annual payments, the first of which shall be due and payable within 30 days after the City is notified by the Contracting Officer that the Project is completed and operational for w;Cer supply purposes. Annual payments thereafter will be due and payable on the anniversary date of said notification by the Contracting Cfficer. Ex:ept for the first payment, which will be applied solely to the retirement of principal, all payments shall include accrued interest on the unpaid balance at the rate provided above. The last annual payment shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storages for present demand within 50 years. (3) The Project investment cost allocated to the remaining portion of the storage space, that provided in Aubrey Lake for future use, is currently estimated at $35,018,250 on the basis of the costs presented in Exhibit A. No principal or interest payment with respect to this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply purposes unless all or a portion of such storage is used for purposes of withdrawal of water from or transfer of water into or from Aubrey Lake during this period. The amount to be paid for any portion of such storage which is used shall be determined by multiplying the percentage of the total storage for future water supply which is placed in h 3 use by the total amount of the Project investment cost allocated to future water supply, Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water supply which is not being used from the tenth (10th) year following the date the Project is operational for water supply purposes until the time when such i storage is first used. The City may at its option pay the interest as it becomes due or allow the interest to accumulate until the storage is used. If this latter option is exercised, the interest will be compounded annuali.y and added to the principal amount. When any portion of the storage for future water supply is used, payment in born principal and accrued interest for the portion used must be started; and the amount of the Project investment cost allocated thereto shall be paid within the life of the Pruject in not to exceed 50 consecutive annual payments beginning within 30 days after the date of first use-of such portion. Annual payments thereafter for the said portion will be due and payable on the anniversary date of first use. For any portion, except for the first payment which will be applied solely to the retirement of principal (including accrued interest), all payments shall include interest on the unpaid balance at the rate provided above. The last annual payment for any portion shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storage within the repayment period. (4) An estimated schedule of annual payments for the storages provided for present demand is attached as Exhibit B of this contract. The annual payments as provided therein shall be made until an interim estimated 4 1i 41M! h.16if i determination of cost or a final determination of cost is made. Within two years after the Project is completed and operational for water supply pur- poses, the Contracting Officer shall make a revised interim estimated determination of construction costs, including interest during construction and taking into account the actual costs to the extent they are then known. In like manner, further interim determinations shall be made at two year intervals until all actual costs are known, at which time the Contracting Officer shall prepare a final cost determination, including interest during construction. On each occasion of an interim determination, or on final determination, the annual payments thereafter due shall be changed so as to provide for the payment of the balance due in equal payments during the remaining life of the repayment period; and a revised schedule of annual payments shall be furnished to the City. Payment schedules for the storage provided for future water supply demands will be furnished by the Contracting Officer when use of such storage is started, and if based on estimated costs will be subject to revision when actual costs are known. (5) If the City shall fail to make any of the aforesaid payments when due, then the overdue payments shall bear interest compounded annually at the rate provided above until paid. The amount charged on payments overdue for a period of less than one year shall be figured on a monthly basis. For example, if the payment is made within the first month after being overdue (31 to 60 days after the anniversarv date), one month's interest shall be I charged. This provision shall not be construed as giving the City a choice I of either making payments when due or paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might result from any default by the City. i (6) The City shall have the right at any time it so elects to prepay j i the indebtedness under this Article 5a, in whole or in part, with accrued N interest thereon to the date of such prepayment. b. Major-capital replacement costs and sedimentation resurveys costs. The City will be required to pay 74 percent of the cost for any major capital replacement of specific water supply facilities at Aubrey Lake. in addition, the City shall pay to the Government 24.314 percent of the costa of joint use major capital replacement items at Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the joint use major capital replacement items costs, which the City will be required to pay in addition to the major capital replacement costs of the specific water supply facilities, will be increased commensurate with tFe percentage of the water supply storage being used up to a total of 48.628 percent of such costs. The City will be required to pay 27.790 percent of the costs of sedimentation resurveys at Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the sedimentation resurvey& costs which the City will be required to pay will be increased commensurate with the percentage of the water supply storage being used up to a total of 55.580 percent of such coats. Payment shall be made either in lump sum or annually with interest on the unpaid balance at the rate ' S s+ ♦ri~ provided above. If paid annually, the first payment shall be made with the first annual payment on the Project investment cost becoming due after the date said major capital replacement tests or sedimentation resurveys costs are incurred. c. Annual operation and maintenance costs. The City will be required to pay 74 percent of the annual experienced operation and maintenance costs of specific water supply facilit:r3 at Aubrey Lake. In addition, the City shall pay 21,195 percent of the annual experienced joint use operation and maintenance costs of Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, I the share of the annual experienced joint use operation and maintenance costs, I which the City will be required to pay in addition to the operation and maintenance costs of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used up to a total of 42,389 percent of such costs. The first payment for operation and maintenance costs of Aubrey Lake will be due and payable in advance within 30 days after the Contracting Officer notifies the City that the Project is completed and operational for water supply purposes, will be for the period ff beginning on the date the Project is operational for water supply purposes and ending on 30 September following, and will amount to the pro rata share for this period of the estimated annual payment of $65,564 computed based on the cost estimates shown in section IV of Exhibit A and the percentage (50 percent) of the total water supply storage in use for present supply. The second payment, for the ensuing Government fiscal year ending 30 September, in the amount of the estimated annual payment of $65,564, will be due and payable in advance on 1 October following the date the Project is operational for water supply purposes. Annual payments t-iereafter, for each Government fiscal year ending E 30 September, will be due and payable in advance on 2 January following and will be computed based on the actual experienced costs for the preceding Government fiscal year. The third payment shall be increased or decreased by an amount being the difference between the sum of the first and second payments as computed based on the actual costs experienced for the stated periods and the sum of the first and second payments by the City based on the estimated costs for the same periods. When each and any portion of the future water supply storage Ls placed in use, the first payment of the additional amount of the joint use operation and maintenance costs required to be paid for such storage use will be due and payable in advance within 30 days after first use of such storage, will be for the period beginning on the date of said first use and ending on 30 September following, and will amount to the pro rata share for this period of an annual payment for the portion. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance , on the dates corresponding with the payments due for present use storage and will be computed based on actual experienced costs for the preceding Government fiscal year, except for the second payment only in the event it t'nould be due and payable on 1 October. In the event the second payment is due and payable on 1 October, it will be based on the annual joint use cost estimate in section IV of Exhibit A and adjusted for actual experienced costs in the third payment in the manner described above for present use supply payments. Annual payments shall be computed as shown in section IV of Exhibit A. 6 i r d. Assurance of funds for contract pav~aents, The Government agrees that all payments contracted hereunder shall be secured solely by a pledge of surplus revenues of the City's combined waterworks and sanitary sewer system remaining after payment of all expenses of operating and maintaining such system and after providing for payment of all debt service, reserve, or other requirements in r')nnection with the City's Waterworks and Sanitary Sewer System Revenue Bonds now outstanding or those hereafter issued on the same f~ basis as the outstanding bonds or on such other basis as may be approved by the Contracting Officer. The City agrees to fix and collect such razes and 1 charges for services of said combined system as will, in consideration of any other funds legally available and reasonably assured for the purposes, make possible the prompt payment of all the aforementioned requirements including payments contracted hereunder. Payments made by the City as Project investment cost and as major capital replacement costs and sedimentation resurvey costs shall be regarded as capital expenditures. ARTICLE 6. Construction cost adjustments. All construction cost dollar amounts in this contract, including those is the Exhibits, are tentative only based on the Government's beat estimates. They will be adjusted upward or downward by the Contracting Officer when final construction costs become known, and the contract will be modified to reflect the adjustments. I ARTICLE 7. Duration of contract. This contract shall be effective when approved by the Secretary of the Army and shall continue in full force and effect for the life of Aubrey Lake and Lewisville Lake. Both Aubrey Lake and the additional storage to be nude available in Lewisville Lake have been formulated on the basis of 100 years economic life. ARTICLE 8. Permanent ri hts to storage. Upon completion of payments I by the City as provided is Article 5a herein, the City shall have a permanent ` right, under the provisions of the Act of 16 October 1963 (Public Law 88-140, 43 U.S.C. 390e), to the use of the water supply storage spaces in Aubrey Lake and Lewisville Lake as provided in Article 1, subject to the following: a. The City shall continue payment of its share, as providtJ in Article Sc, of the annual operation and maintenance costs allocated to water supply. b. The City shall bear 74 percent of the costs allocated to (1) water supply for Aubrey Lake and (2) the total storage space between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level for Lewisville Lake of any necessary reconstruction, rehabilitation, or replace- ment of Aubrey Lake or Lewisville Lake features which may be required to continue satisfactory operation of Aubrey Lake or Lewisville Lake. Such costs will be established by the Contracting Officer.. Repayment arranpenents, including schedules, will be in writing and will be made a part of this contract, e. Upon completion of payments by the City as provided in Article 5a berain, the Contracting Officer shall redetermine the storage space for 7 l i a r municipal and industrial water supply in Aubrey Lake, taking into account such equitable reallocation of lake storage capacities among the purposes served by Aubrey Lake as may be necessary due to sedimentativa. Such findings, and the storage space allocated to municipal and industrial water supply, shall ie defined and described in an exhibit which will be made a part of this r atract. Following the same principle, such reallocation of lake atorah- zapacities may be further adjusted from time to time as the result it sedimentation resurveys to reflect actual rates of sedimentation and thf. exhibit revised to show the revised storage space allocated to municipal and industrial water supply. d. The permanent rights of the City under this contract shall be continued so long as the Government continues to operate Aubrey Lake and/or Lewisville Lake, In the event the Government no longer operates Aubrey Lake or Lewisville lake, such rights may be continued subject to the execution of a separate contract, or supplemental agreement, providing for: operation (1) Continued b h y of such part of the as is necessary for utilization of the water supply storage spaces allocated to it; (2) Terms which will protect the public interest; and Effective abs,ilvement of the Government by the City from all E liability in connection wita such continued operation. ~ f ARTICLE 9, Release of claims, The City shall hold and save the j 1 Government, including its officers, agents, and employees, harmless from liability of any nature or kind for or on account of any claim for damages or asserted as a ' z Lake LeewisvillebLake, or withdrawal or releasetoffwatersfromgor is Aubrey of wa and/or or from Aubrey Lake or Lewisville Lake made or ordered bytheaCity, or is a result of the construction, operation, or maintenance of the features orA_/ appurtenances owned and operated by the City, rovided, that this shall not-be construed as obligating the City to hold and save the Government karmless from damages or liability resulting from the sole negligence of the Government or its officers, agents, or employees and not involving negligence on the part of the City or its officers, agents, or employees. ARTICLE 10. Assignment, The City shall not transfer or assign this contract or any rights acquired Php tinder, nor sub-allot said water supply storage spaces or any part thereof,--nor grant any interest, privilege, or license whatsoever in connection with this contract, without the appruval 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 that may be obtained from the water supply storage spaces by the City and furnished to any third party or parties, nor any method of allocation thereof. ARTICL 11, Officials not to benefit. No member of or delegate to Congress, r resident Commiasioaer, shall be admitted to any share or part • 8 f waive was RY1 l* 'MRl?J'~ 7 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 12, 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 agreem_nt or understanding for a commission, percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty, the Government shall have the right to annul this contract without liability or in its discretion to add to the co,itract price or consideration or otherwise rec.:',ar the 'lull amount of such commission, percentage, brokerage, or contingent fee. ARTICLE 13. Environmental quality, During any construction, operation, and maintenance by the City of any facilities, specific actions will be taken to control environmental pollution which could result from such activity and to comply with applicable Federal, State, and local laws and regulations concerning environmental p4 lution, Particular attention should be given to (1) reduction of air pollution by control of burning, minimization of dust, containment of chemical vapors, and control of engine exhaust gases and smoke frog temporary heaters; (2) reduction of water pollution by control of sanitary facilities, storage of fuels and other contaminants, and control of turbidity and siltation from erosion; (3) minimization of noise levels; (4) onsite and offsite disposal of waste and spoil; and (5) prevention of landscape defacement and damage, q I ARTICLE 14, Federal and State laws. I a. In acting under its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davie-Bacon Act (40 U.S.C. 276a et seq.); the Contract Work Hours and Safety Standards Act (40 U,S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3, b. The City furnishes as part of this contract an assurance (Exhibit C) that it will comply with Title VI of the Civil Rights Act of 1964 (73 Stat, 241, 42 U.S.C. 2000d et seq.) and Department of Defense Directive 5500,11 issued pursuant thereto and published in Part 300 of Title 32, Code of Federal Regulations, ARTICLE 15. Definitions, a. Joint use costs. The costs of features used for any two or more, Project purposes, b. Project investment costs. The initial cost of the Project, including: land acquisition; construction; interest during construction on the value of land, labor, and materials used for planning and construction of the Project, 9 d C. Specific costs. The costs of Project features normally serving only one particular Project purpose. d. Interest during construction. An amount of interest which accrues on expenditures for the establishment of Project services during the period between the actual outlay and the time the Project is first made available to the City for water storage. ARTICLE 16. Approval. This contract is subject to the written approval of the Secretary of the Army, and it shall not be binding until so approved. ~ I l i Ii { f 14 i IN WITNESS WHEREOF, the parties hereto bave executed this contract as of the day and year first above written. i APPROVED: THE UNITED STATES OF AMERICA Bq Joe K. Sheard rte-- Secretary of the Army Colonel, CE Contracting Officer Date a - CITY OF DALLAS, TEXAS 87► George R. Schrader City Manager I, Harold G. Shank, certify that I as the City Seciatarq of the City of Dallas, Dallas County, Texas, named as City herein; that George R. Schrader j { who signed this contract on behalf of the City of Dallas was then City !tanager I of the City of Dallas, Texas; that said contract was duly signed for and on f behalf of the City of Dallas, Texas by authority of its governing body and hI is within the scope of its legal powers. k IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said City of DalL i, Texas this day of 1975. Harold G. Shank Secretary City of Dallas, Texas CORPORATE SEAL 11 . l . Contract No. DACW63-~-C-0000 AUBREY AND LEWISVILLE LAKES i EXHIBIT A I - LAKE STORAGES Aubrey Lake Gross Percent Percent of Elevation storage of gross water supply Feature feet msl (acre-feet) storage storage Flood control 632.5-640.5 265,000 24.892 Water supply below 632.5 7996600 75.108 100.0 (City of Dallas) below 632.5 (5910700) (55.580) (74.0) (City of Denton) telow 632.5 (207,900 19.528 (26.0) Totals 3.90649600 100.000 + Levisville Lake ' Gross Percent Percent of Elevation storage (1) of gross water supply Feature (feet mal) (acre-feet) storage(2) storage i Flood control 522.0-532.0 3369100 65.427 1 Hater supply 515.0-522.0 177,600 34.573 100.0 (City of Dallas) 515.0-522.0 (1319400) (25.584) (74.0) (City of Denton) 515.0-522.0 (46,200 ) (8.989) (26.0) Totals 513,700(2) 100.000 (1) 1985 condition. (2) Between elevations 515.0 and 532.0 feet mal. II - PROJECT ESTIMATED CONSTRUCTION INVESTMENT TO BE ALLOCATED Federal construction cost $149,6030000 Nonreimbursable costs (unallocable) (1) 5,340000 Project coat to be allocated 143.763,000 Interest during construction on allocable cost 11,611,000 (2) Project construction investment to be allocated 15 ,3 ,000 (1) Relocation of roads above replacement-in-kind .'andards. (2) Interest rate - 3.25%. Interest rate for reimbursable amounts will be set as of the beginning of the fiscal year in which construction of the Project is started. A-1 i r III - ALLOCATION OF ESTIMATED CONSTRUCTION IA'VESTML.a (Separable costs - remaining benefits method) Rater supply Recre tion_ Totals 1. Specific facilities cost: S 145,000 Aubrey Lake (1450000) $16,703,000 $ 18,848,000 Lewisville Lake (O) (16,433,000) (16,578,440) 29 Joint use facilities coat: 84,107,600 (2'270'000) (2,270,000) Aubrey Lake (86,741,600) 35,207,400 124,915,000 f n Lewisville Lake 2 466 000 (34.043,400) (120,785,000) 4 Subtotals - cost 1 164 000) (4,130 000) 3. Interest during $89,852,600 $539910040C $143o7630000 construction: (1) 80022,400 Aubrey Lake 39588,600 11,6111000 Lewisville Lake (707579300) (39410,800) (111168,100) 4, Total.allocation- 265 100) 117 800) 442 900) ~ investment- Aubrey Lake $9798750000 (2) $57,4996000 $1550374,000 Lewisville Lake (94.643,900) (53,8879200) (14895313100) (3,231,100) (3,6110800) (608420900) (1) Interest rate - 3,25X. Interest rate for reimbursable amounts will be set as of the beginning of the fiscal year in which construction oc the Project is started. (2) Investment cost to be repaid by: Lewisville Lake Aubre Lake Totals City of Dallas - 742 Preaeat water supply 2,391,000 70,036,500 72,427,500 Future water supply (2,391,000) (35,0181250) (37,4099250) City of Denton - 26X (359018,250) (35,028,250) I ) Present water supply 840,100 24,607,400 25,4470500 Future water supply (840,100) (22,303,700) (139143,800) Totals 0 12 303 700 12 303 700) 3,231,100 94,643,900 $97,8750000 IV - ALLOCATION OF EST MTED OPERATION AND MAINTENANCE COSTS Aubrey Lake Water s. ~PLly Recreation Total 1, Specific cost $ 470700 2. Distribution of joint use 94359000 $48Y~7nn cost (percent) 57,283 3. Allocated joint use cost 81 800 6142.717 142 800 4. Total allocation 129,500 ' 000 142,800 $4961000 $625,500 To be paid by the City of-Dallast 742 of specific coat for water supply facilities Aubrey Lake Joint use coats $359298 Present w/o (0.50 x 0.74 x 0.57283 x $142,800) 30 266 Future w/o (0.50 x 0.74 x 0.57283 x $142,800) (1) 30,266 Total $95,830 A-2 (1) Additional annual amounts of joint use cost required to be paid as future water supply storage is used will be computed as follows: Percent of future w/s storage placed in use x 0.50 x 0.42389 x annual joint use costa 100 *Escimated or actual, as applicable. V - ALLOCATION OF ESTIMATED MAJOR CAPITAL RF.PLACEMENTS COSTS AND SEDIMINTATION FESURVEYS COSTS A. Tta or ca ital replacements costs: (1) I Aubrey Lake Water su Recreation Total 1. Specific cost 1100 $107,800 $1080900 2. Distribution of joint use cost (percent) 65.714 34.286 100.000 3. Allocated joint use cost 2,300 1,200 3,500 4. Total allocation $39400 $109,000 5112,400 To be paid by the City of Dallas: 742 of specific cost for water supply facilities $ 814 Aubrey Lake joint use costs } f Present w/o (0.50 x 0.74 x 0.65714 x $3,500) 851 Future w/o (0.50 x 0.74 x 0.65714 x $3,500) (2) 851 Total 2,516 (1)'Estimates of average annual charges are used for determination of S ' allocated percentages. All charges will be based on the indicated per- centages of actual costs if and when they are incurred. (2) Additional amounts of joint use cost required Lo be paid as future water rupply storage is used will be computed as follows: Percent of future w/o 'storage placed in use x 0.50 x 0.48628 x actual joint use cost 100 D. Sedimentation resurveye costs: Aubrey Lake Sedimentation resurveys coats allocated to water supply and to be paid by the City of Dallas are based on the percentage of the gross storage in Aubrey Lake represented by the storage right of the City - see section I of this Exhibit A. Present water supply a 4 x 55.5802 - 27.790% Percent of future w/o Future water supply storage placed in use x 27.7902 100 A-3 VI - COMPFJTATIONS FOR AD7SSilAL PAYMENTS FOR INTEREST AST) AMORTIZATION Present water suc~l : Amount to be amortised: Lewisville Lake $ 3,231,100 x 0.74 Aubrey Lake $94,643,900 x 0,74 x 0.50 $ 29391,000 To.aL 35,018,250 '~7, 409, 250 Based on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 4.371 percent. A- P Where: P o annual Payment A , amount to be repaid - $37,409,250 i - interest rate m 4.371% c ` amortisation coefficient for 49 years 0.006125257063 $37.409 250 - P P a 1, .0 371 + 0.006125251063 20.06611501P - $37,4099250 - P 21,06611501P = $37,409,250 P a $1,7759802.04 ~ f i i I A-4 Y I . Contract No. DACU63-75-C-0000 AUBRFY A`M LC4ISVILI.E LAKES • E {HIBI T B ' PAYMENT SCHEDULE YR. PAY*I---IJT T3 P.4YAZIT Ta T'3TAL 3AL4'J:c 40. INTEI£ST ?MCI?AL ?AY:1E`JT 3'35 37409?50.03 1 0.00 1775902.3. 177590?.04 35633447.c5 2 1557538.31 218364.03 1775302.04 35415t33-?3 3 1547997.69 227804.35 1775303.34 35137379.53 4 1538040.36 237761.69 177590?.04 34949617.90 5 1527647.80 248154.24 177590?-04 34701463.66 b 1516800.98 259001.06 1775813.04 3444?45?.50 7 1505480.04 273322.00 1775902.34 .34172140.60 I 8 1493664.27 292137.77 1775802.04 33890002.83 9 1481332.02 294470.02 1775903.04 33595533.31 10 1468460.74 307341.30 1775502.04 33233191.51 11 1455036.85 320775.19 1775332.04 :32967416.3? 12 1441035.77 334796.27 1775802.04 32632620.05 13 1426371.82 349430.22 1775802.04 32233139.33 I 14 1711099.23 364703.81 1775802.04 31918445.02 IS 1395157.02 38064502 1775802.04 31537341.00 16 1378519.03 397283.01 1775802.04 31140557.99 17 1361153.79 414648.25 1775802.04 30725909.74 18 1343029.51 432772.53 1775302.04 30293137921 19 1324113.01 451689.01 1775802.04 29841448.20 20 1304369.90 4714302.34 1775802.04 29370015.96 21 1283763.39 492038.65 1775802904 28877977.21 22 1262255.38 513545.66 1775802.04 28364431.55 23 1239809.30 535992.74 1775802.04 27828439.91 24 1216381.06 559420.98 1775802.04 27279017.83 25 1191928.77 583873.27 1775802.04 26685144.56 26 1166407.67 609394.37 1775802.04 26075750919 27 44139771.04 636031.00 1775802.04 25439719.!9 28 1111970.13 663831991 1775802.04 24775887.?8 29 1082954.03 692848.01 1775802.04 24083039.27 30 1052669.65 72313209 1775802.04 23359906.83 31 1021061-S3 754740.51 1775802.04 22605166.37 32 988071.82 787730.22 1775802.04 21817436-15 33 953640.13 822161.91 1775802.04 20995274.24 34 917703944 858098.60 1775802.04 20137175.64 35 880195.95 895606109 1775802.04 192415E9.55 36 841049.01 934753.03 1775802.04 18306916.53 37 800190.95 97561109 1775802.04 17331205.43 38 757546.94 1Oi8255.05 1775802.04 16312950.38 39 713039.06 1062762.98 1775802.04 15250137.40 40 666565.69 110921605 1775802.04 14140971.05 41 618101.84 1157700.20 1775802.04 12983270.55 42 567498.77 1208303.27 1775802.04 11714967.58 43 514683.83 1261118.21 1775802.04 10513949.37 44 459560.36 1316241.68 1775802.04 9197637.69 4$ 402027.43 1373774.61 1775802.04 7823833.08 46 341979.74 1433822.30 1775602.34 6390010.7? 47 279307.37 1496494.6'' 1775802.04 4393516.11 48 213895.59 1561906.45 177540?.04 3331609.65 49 145624.56 1630177.39 1775802.04 1701432.29 50 74369.60 1701432.29 1775801.89 0000 E-1 w Contract No. DACW63-15-C-0000 AUBREY AID LEWISVILLE LAKES EXHIBIT C ASSURANCE OF COMPLIANCE WITH THE DEPARTMENT OF DEFENSF DIRECTIVE UNDER TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 The City of Dallas, Dallas County, Texas (hereinafter called "Applicant- Recipient") HEREBY AGREES THAT it will comply with title VI of the Civil Rights Act of 1c64 (Public Law 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 for which the Applicant-Recipient receives Federal financial assistance from the U. S. Army Corps of Engineers and HEREBY GIVES ASSURANCE 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 extended to the Applicant-Recipient by the U. S. Army Corps of Engineers, assurance shall obligate the Applicant- Recipient, 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 a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is so provided, this assurance shall obligate the Applicant-Recipient for the period during which it regains ownership or possession of the property. In all other cases, this assurance shall obligate the Applicant-Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers. THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts, property, discounts, or o*.her Federal financial assistance extended after the date hereof to the Applicant-Recipient by the Department, including installment payments after such date on account of arrangements for Federal financial assistance which were approved before such date. The Appacant-Recipient recognizes and agrees that such Federal 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 C-1 Judicial enforcement of this assurance. This assurance is binding on the Applicant-Recipient, its successors, transferees, and assignees; and the person or persons whose signatures appear below are authorised to sign this assurance oa behalf of the Applicant-Recipient, THE CITY OF DALLASO TEXAS Dated Sq George R, Schrader City Manager i i ATTEST: Barold G. Shank I Secretary d City of Dallasq Texas E , a Lj C-2 • r Contract No. DACW63-75-C-0000 AUBREY AND LEWISVILLE LAKES EXHIBIT D OPINION OF COUNSEL I have reviewed and approved contract number DACW63-75-C-OLMD between i the United States of America and the City of Dallas, Texas. Particularly I have considereu the effect of Section 221 of Public Law 91-611 (42 U.S.J. 1962d-5b) and am of the opinion that the City of Dallas, Texas has the requisite legal authority to enter into and comply with this agreement an required by the aforementioned statute. I ~ Dated . I N. Alex Bickley City Attorney City of Dallas, Texas n V y~ ♦1 4 • D-1 r. ~p 1 t • 1 k 51r~Li1-YG 7 1 '~G , ' ?13 St eJLGT1 Autrey Lake - final lrraits of 4?uter Supply Contracts I i Livisiou Engineer, Foutlydastorn I I. ZEfct to= a. Letter Sa-L"0-PC fated 18 Jame 1975 with above subject, with two ialaraowents. b. Letter 314°iD-Pt: datr.d 17 October 1975, eiibjeeti Lakeview Labe - final Draft of Water Supply Coatract, with 6h1uLU-NW lot indorsament. 2, Inclosed are subject drafts. 'ibeso drafts incorporate the raview cowments } and require ante of roference a and additional revis!one made by the district, 3. itavisions required by the review in&rsemants are as followas j a. The first and second whereas elauee, have been restructured as I requested. b. The final ph=ase of Article la bas been added as requested. c. 11w costs allocated to future water supply have been reduced to 02,5746434, which is 3554,466 leas than the allowable 443,123,900, by allocating 51 percent of Aubray water ripply storaco space to present use in tt lieu of 5u percent as previously presented. Affected aucsbors sad computations V throughout the contracts have been ravisod. d. Interest and project Umeatniant amounts have been revised througLout the contracts to use the fiscal year 1914 interest rate of 5.116 percent for reimbursable amounts. a. 11A previously presented Article 5d.nov appeara as Article 5a in the contract with Usllas. 1ha prior wordiug of this article was disapproved by OCE; the wording, now used was furnisbod to us for use as a result c_° coordination between OQ and city of imlias repracentstives. f M• y ~au•w n ass i ~ 1 I SLW CI: Aubrey Lake - Final h••afta of slater Supply Contracts ~ f. Article Sc has been divided into paraZraphs (1) and (2). 4, The district has made the following rwisions to the previously reviewed drafts. a, In irticla 5a(4) refermca is wade to the provisions of Article G and the rest of the wordin3 providin.; for interi-a and final cost dettrnitwtions is transferred to Article C. (k,%rtruttion cost adavstuents. %S I^el tills is a better arrangement of contract f ovlei.onc and llows tine UU; &%Urested revision as proaonted in reference b. 1 b. Article Sa(S) of the standard format has been relocated as Article 5d, with thn subtitle, Ctanr!;es for dnlincluer,t pnya¢e'~ts. It appears that located under Article 5a, the F;ovisioua for Tc1 Llquent parmente. apply only to project investment costa. They oo!~ht also to apply to ether user charges, which they will do if located as Article 5d. This change wne also presented in reference b. c. In Article 5b the wording of sentences 6 and 7 has been revised. j It appears that the intent of the approved worditig is either a lump sun payment when costs are incurred or a sin<^le pny:acut, is total, of the Incurred I costs at the close of the year in witich the costs were incurred, with interest charged betwew the time incurred and the payment at the close of the year. Z: paymeac over a number of ! years to to be permitted, some schedule of due dates and amounts must be eatablisLed to maintain fiscal control. This change was also yresentea in reference b. 4. Article Sc has been rewritten from the previous submissiou. The proper collection and financial management under the stated conditions in the contract of operation and maintcnaace costs are difficult unless the terms and methods of determiuai:ion are clearly stated and understood by the parties. Operation and maintenance charges are collectible in advance; and the differences in obligations for specific and joint use costs and the options available to local interests in the ura of future water oupply bake it difficult to provide terms covering all contia?enciee clearly and concisely. Wen for future crater supply, it is possible for the user to opt to begin use after the dam is closed and before experienced costs are available for use in determining charges. Through the use of detailed formulas in Exhibit A, va feel we have covered the rossibilities in the briefest and clearest way possible to accomplish proper collection. We have tested the provisions thoroughly and believe they will yield the desired results. Payments are set to be clue on 2 January following the close of a ficcal year to allow time for Finance and Aceountin4s Tranch to close the books, complete year and reports, compute the charcea, and bill the user. This does not effect the date due and amw.mt due the Government, only the date when it is payable, ' T "MOM k I 1 Mr. Ivers/vvt/2024 N i SwFF:h-1C 6U2sJl:c,T: Aubrey Lake - Final Drafts of Water Supply Contracts s e. Mho t+ordin4, in Article 9, lino 7, Las been changed to recd "foatores h~ and appurtoaancos. . 5. Pa rtem.4iond that the incloscsi contracts be approved for presentation I to the cities for approval and execution. 1 I ' 2 Intl (quint) JOE H, SIXARD 1. vfs coar - Dallas Colonel, CE ! 2, v/s contr - Damon District fnBinaor f Copies furnished: Ofc of Couns - v incl Prog Dev Br v/o Intl ~I BALL SWFED-P BROG N S ED-G B WFCC WOOD F~ BURKETT S4J1<MOI LTC TRACY M FM COLS SwFDE MAIL RETURN TO Coord Sec, Oil b Gas Bldg 3 TI RA FT Contract No. DACW63-76-C-0000 D CI E N O V 14 1975 CONTRACT BETWEEN THE UNITED STATES OF AMERICA f AND THE CITY OF DMTON, TEXAS FOR WATER STORAGE SPACES IN AUBREY AND LEWISVILLE LAKES, TEXAS THIS CONTRACT, entered into this day of 1975, by and betw^,en the United States of America (hereinafter called the Goverment), represented by the Contracting Officer executing this contract, and the City of Denton, Denton County, Texas (hereinafter called the City), WITNESSETH THAT: WHEREAS, the River and Harbor Act of 1965 (Public Law 89-248, 79 Stet. 1091) authorized the construction, operation, and maintenance of Aubrey Lake including modification of Garza--Little Elm Reservoir, since renamed Lewisville Lake, (hereinafter called the Project) on the Elm Fork of the Trinity River in the State of Texas; and i WHEREAS, in accordance with the authorized modification, Lewisville Lake (located immediately downstream from the Aubrey Dam) will be modified to permit the transfer of flood control storage from Lewisville Lake to Aubrey Lake for an equivalent amount of water supply storage in Lewisville Lake for municipal and industrial uses; and WHEREAS, the City desires to contract with the Government for the use of storage included in Aubrey Lake and the additional storage to be made available in Lewisville Lake for municipal and industrial water supply and f for payment of the cost thereof in accordance with the provisions of the Water Supply Act of 1958, as amended (43 U.S.C. 390b); and WHEREAS, the City is empowered so to contract with the Government and is vested with all the necessary powers for accomplishment of the purposes of this contract, including those required by Section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b); NOY9 THEREFORE, the Government and the City agree as follows: ARTICLE 1. Water storage space. a. Project construction. The Government, subject to the directions of Federal law and any limitations imposed thereby, shall design and construct th3 Project so as to include in Aubrey Lake space for the storage of water by the City and space for the storage of floodwaters which will permit the, reallocation of flood control storage in Lewisville Lake to municipal and industrial water supply storage, a portion of which will also be utilized'by the City. b. Rights of the City. (1) The City shall have the right to utilize (a) an undivided 26.0 percent (estimated to contain 207,900 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Aubrey Lake below 1 i as elevation 632,5 feet above mean sea level, wl,ich total storage space is ' estimated to contain 799,600 acre-feet gross storage, including storage for sediment deposits, and (b) an undivided 26.0 percent (estimated to contain 46,200 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Lewisville Lake between elevations 515,0 feet above mean sea level and 522,0 feet above mean sea level, which total storage space is estimated to contain 177,600 acre-feet gross storage, including storage for sediment deposits. The storage space in Lewisville Lake is to be used to impound water for present demand or need for municipal and industrial water supply; and the storage space in Aubrey Lake is to be used to impound water for present and anticipated future demands or needs for municipal and industrial water supply, In Aubrey Lake, 51 percent (an estimated 106,000 acre-feet) of the space which the City has a right to utilize is for present use water ( storage and 49 percent (an estimated 101,900 acre-feet) is for future use water storage, (2) The City shall have the right to withdraw or transfer water from or transfer water into either or both of the two lakes, or to order releases to be made by the Government through the outlet works in the dams, subject to the provisions of Article le and to the extent the aforesaid storage spaces will I provide, and shall have the right to construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose of transfers or withdrawals, subject to the approval of the Contracting Officer as to design and location. The grant of easements for right-of-way across, in, and upon land of the Government at Aubrey Lake and at Lewisville Lake shall be by separate instrument in a form satisfactory to the Secretary of the Army, without additional cost to the City, under the authority of and in accordance with the provisions of 10 U.S.C. 2669, Subject to the conditions of such easements, the City shall have the right to use so much of Aubrey Lake and Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges herein granted. I j ` c. Rights reserved, The Government reserves the right to lower the I water in Aubrey Lake to elevation 632,5 feet above mean sea level and to lower the water in Lewisville Lake to elevation 522,0 feet above mean sea level during such periods of time as is deemed necessary, in its sole discretion, for flood control purposes. The uovernment further reserves the right to take such measures as may be necessary in the operation of Aubrey Lake and Lewisville Lake to preserve life or property, d. Quality or availability of water. The City recognizes that this contract provides storage spaces for raw water only, The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor or for the treatment of water, ARTICLE 2, Regulation of and right to use of water. The regulation of the use of water withdrawn or released from or transferred to or from the afores,id storage spaces shall be the sole responsibility of the City, The City has the full responsibility to acquire in accordance with State lava and regulations, and if necessary to establish or defend, any and all water rights needed for utilization of the storages provided under this contract. The Government shall not be responsible for withdrawals, transfers, or diversions by others, nor will it become a party to any controversies 2 involving the use of the storage spaces by the City except as such contro- versies may affect the operations of the Government. ARTICLE 3, Operation and maintenance. The Government shall operate and maintain Aubrey Lake and Lewisville Lake, n.nd the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5. The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the transfe- into or out of or withdrawal of water from either or both of the two lakes and shall bear all costs of construction, operation, and maintenance of such installations and facilities. ARTICLE 4. Measurement of withdrawals and releases. The City agrees to furnish and install, without cost to the Government. suitable meters or measuring devices satisfactory to the Contracting officer for the measurement of water which is transferred into Aubrey Lake or Lewisville Lake or is with- , . . . . drasni`or'transferred from Aubrey'Lake 'or Lewisville' Lake'by any means oEfier than through Aubrey Lake or Lewisville Lake outlet works. The City shall ~,..c furnish ito the Government monthly sta.tementsrof all such withdrawals or trans Sera. Releases"from the water supply storage spaces through Aubrey Lake or Lewisville Lake outlet works shall be made in accordance with written schedules furnished by the City and approved by the Contracting Officer and shall be sub- means of a ject Co Article le. The measure of all such releases shall be by rating curve of the outlet works or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces. ARTICLE 5. Payments. In consideration of the right to utilize the aforesaid storage spaces in Aubrey Lake and Lewisville Lake for municipal and industrial water supply purposes, the City shall pay the following sums to the Government: a. Project investment costs, LJ (1) The City shall repay to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amount of the construction, costs, including interest during con- struction, allocated to the water storage rights acquired by the City under this contract. The interest rate to be used for purposes of computing interest during construction and interest on the unpaid balance will be determined by the Secretary of the Treasury as of the beginning of the Government fiscal year in which construction of the Project is initiated on the basis set forth in the Water Supply Act of 1958, as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1916) is 5.116 percent. The City shall repay: 26 percent of the construction cost of specific water supply facilities, estimated at 319100 18.612 percent of the total Project joint use 23,3240000 construction cost, estimated at 3283,400 Interest during construction, estimated at Total estimated amount of Project investment cost 645,200 allocated to 26 percent of the water supply $260 3 Inv] r Y 1 (2) The Project investment cost allocated to the storage spaces indicated in Article lb(1) as being provided for present demand is currently estimated at $14,020,100 on the basis of the costs presented in Exhibit A of this contract. The amount of the Project investment cost allocated to the storages for present demand shall be paid in 50 consecutive annual payments, the first of which shall be due and payable within 30 days after the City is notified by the Contracting Officer that the Project is completed and operational for water supply purpose;. Annual payments thereafter will be due and payable on the anniversary date of said notification by the Contracting Officer, Except far the first payment, which will be applied solely to the retirement of principal, all payments shall include accrued 1 interest on the unpaid balance at. the rate provided above. The last annual payment shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storages for present demand within - . I 50, years I` (3) The Project investment cost allocated to the remaining portion storage.,spage, that provided. in, Aubrey Lakg for. future -use, is. Currently,,. ; estimated at $12,625,000 on the basis of the costs presented in Exhibit A, No principal or interest payment with respect to this storage for future water supply is required to be made during the'first 10 years following the date the Project is operational for water supply purposes unless all or a portion of f such storage is used for purposes of withdrawal of water from or transfer of C water into or from Aubrey Lake during this period. The amount to be paid for any portion. of such.storage which is used shali.be determined by multiplying. . , , 11 the percentage of the total storage for future water supply which is placed in use by the total amount of the Project investment cost allocated to future water supply. Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water supply f which is not being used from the tenth (10th) year following the date the } Project is operational for water supply purposes until the time when such storage is first used, The U City may at its option pay the interest as becomes due or allow the interest to accumulate until the storage is used. If this latter option is exercised, the interest will be compounded annually and added to the principal amount. When any portion of the storage for future water supply is used, payment in bot', principal and accrued interest for the portion used must be started; and the amount of the Project investment cost allocated thereto shall be paid within the life of the Project in not to exceed 50 consecutive annual payments Beginning within 30 days after the date of first use of such portion. Annual payments thereafter for the said portion will be due and payable on the anniversary date of first use. For any portion, except for the first payment which will be applied solely to the retirement of principal i (including accrued interest), all payments shall include interest on the unpaid balance at the rate provided above. The last annual payment for any portion shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storage within the repayment period. ! (4) An estimated schedule of annual payments for the storages provided for present demand is attached as Exhibit B of this contract. The annual payments as provided therein shall be made until an interim estimated 4 Mia7r 1 ' i determination of cost or a final determination of cost is made as provided in Article 6, Payment schedules for the storage provided for future water supply demands will be furnished by the Contracting Officer when use of such storage is started, and if based on estimated costs will be subject to revision, as provided in Article 6, until actuel costs are known. (5) The City shall have the right at any time it so elects to prepay the indebtedness under this Article 5a, in whole or in part, with accrued interest thereon to the date of such prepayment. f b. Major capital replacement costs and sedimentation resurveys costs, The City will be required to {ay 26 percent of the cost for any major capital replacement of specific water supply facilities at Aubrey Lake, In addition, the City'shall pay to the Government 8.714 percent of the costs of joint use it major capital replacement items at Aubrey Lake until 'such time as the storage :.....t., .,-for. future.water supply is -used.. -As -the storage'provided for future water supply demands is used, the share of the joint use major capital replacement items costs, which the City will be required to pay in addition to the major Y ri eapical-replacement, costs of the specific' water-6upply-facilities , sill' be ""-""I' ..increased commensurate with the percentage of the water supply storage being used up,to• a total of 17.086 percent of such costs, .The City will also be required to pay 9,959 percent of the costs of sedimentation resurveys at Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the sedimentation resurveys costs which the City will be required to pay will be t '-increased commensurate with the percentage' of the"1 titer`supply storage being used up to a total of 19.528 percent of such costs. Payment shall be made either in lump sum on demand at the time such costs are incurred or annually with interest on the unpaid balance at the rate provided in Article Sa(1). If paid annually, payment shall be made with the first annual payment on the ' Project investment cost becoming due after the date said major capital replacement costa or sedimentation resurveys costs are incurred. e. Annual operation and maintenance costs, (1) The City will be required to pay 26 percent of the annual experienced operation and maintenance costs of specific water supply facilities at Aubrey Lake. In addition, the City shall pay 7.596 percent of the annual experienced joint use operation and maintenance costs of Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the annual experienced joint use operation and maintenance costs, which the City will be required to pay in addition to the operation and maintenance costs of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used up to a total of 14.894 percent of such costs. The first ptfinent fir operation and maintenance costs of present use water supply in Aubrey Lake will be due and payable in advance within 30 days after the Contracting. Off icer notifies the City that. the Project is completed and operational for eater supply purposes, will be for the period beginning on the date the Project is operational for water supply purposes and Wing on 30 September following, and will amount to the sum of 5 I . • + the first payment, Ps, for specific water supply facilities costs and the first payment. Pj, for joint use costs computed as shown in parts B and C, respectively, of section IV of Exhibit A. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following the close of the prior fiscal year and will be the sum of payments Ps and Pi computed consecutively as shown in parts B and C. respectively, of section IV of Exhibit A. (2) When each and any portion of the future water supply storage is placed in use, the first payment of the additional amount of the joint use operation and maintenance costs required to be paid for such storage use will be due and payable in advance within 30 days after first use of such storage, Will be for.the period beginning on the-date of said first use and ending on 30 September following, and will amount to) the first payment,.P', computed, as „ . .R 1...:,• .,r. . shown in part D of section IV of Exhibit A. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in "advance oa 2 January following the close`of'the'prior'"fiseal''year and`wil3°" ' amount to payments Pj computed consecutively as shown in part D of section IV of. Exhibit A. d. Charges for delinquent payments. If the City shall fail to make any of the aforesaid payments when due, then the overdue payments shall bear interest compounded annually at the rate provided in Article 5a(1) until paid., 'The whount' Char ed 'on payments overdue for a'peiiod'of'less than one year shall be figured on a monthly basis. For example, if the payment is made within the first month after being overdue (31 to 60 days after the anniversary date), one month's interest shall be charged. This provision shall not be construed 1 t as giving the City a choice of either making payments when due or paying J interest, nor shall it be construed as waiving any other rights of the U Government, at law or in equity, which might result from any default by the City. ARTICLE 6, Construction cost adjustments. All construction cost dollar amounta in this contract, including those in the Exhibits, are te:tative oaly based on the Government's beat estimates. They will be adjusted upward or downward by the Contracting Officer when final construction costs become known, and the contract will be modified to reflect the adjustments. Within two years after the Project is completed and operational for water supply pur- poses, the Contracting Officer shall make a revised interim estimated determination of construction costs, including interest during construction and taking into account the actual costs to the extent they are then known. In like manner, further interim determinations shall be made at two year intervals until all actual costs are known, at which time the Contracting Officer shall prepare a final cost determination, including interest during construction. On each occasion of as interim determination, or on final determination, the.annual payments thereafter due shall be chased so as to provide for the payment of the balance due in equal payments during the remaining life of the repayment period; and a revised schedule, or schedules as necessary, of annual payments shall be furnished to the City. 6 yQr 1 WWI 1 ' ARTICLE 7, Duration of contract. This contract shall be effective when approved by the Secretary of the Army aid shall continue in full force and effect for the life of Aubrey Lake and Lewisville Lake, Both Aubrey Lake and the additional storage to be made available in Lewisville Lake Nm a been formulated on the basis of 100 years economic life. ARTICLE 8, Permanent rights to storage. Upon completion of payments by the City as provided in Article 5a herein, the City shall have a permanent right, under the provisiols of the Act of 16 October 1963 (Public Law 83-140, 43 U.S.C. 390e), to the u;e of the water supply storage spaces in Aubrey Lake • and Lewisville Lake as provided in Article 1, subject to the following: I a, The City shall continue payment of its share, as provided in Article.5c, of the annual operation and maintenance,costs allccated to water , s:.•~. supply. b. The City shall bear 26 percent of the costs allocated to (1) water supply~,for Aubrey Lake and (2) the total storage space between elevations ~l~,b feet above mean sea Level and 522;0'feet above mean sea`levei for Lewisville Lake of any necessary reconstruction, rehabilitation, or replace- 'merit of Aubrey Lake or 'Lewisville Lake features which may be required to. continue satisfactory operation of Aubrey Lake or Lewisville Lake. Such costs will be established by the Contracting Officer. Repayment arrangements, including schedules, will be in writing and will be made a part of this c. Upon completion of payments by the City as provided in Article 5a herein, the Contracting Officer shall redetermine he storage space for r i municipal and industrial water supply in Aubrey Lake, taking into account such equitable reallocation of lake storage capacities among the purposes served by Aubrey Lake 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 lake storage capacities 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, d. The permanent rights of the City under this contract shall be ccntinued so long as the Government continues to operate Aubrey Lake and/or Lewisville Lake., In the event the Government no longer operates Aubrey Lake f or Lewisville Lake, such rights may be continued subject to the execution of a separate contract, or supplemental agreement, providing for; (1) Continued operation by the City of such part of the facility as is necessary for utilization of the water supply storage spaces allocated to it; (2) Terms which will protect the public interest; and 7 16 i I (3) Effective absolvement of the Government by the City from all liability in connection with such continued operation. ARTICLE 9. Release of claims. The City shall hold and save the Government, including its officers, agents, 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 storages in Aubrey Lake and/or Lewisville Lake, or withdrawal or release of water from or transfer of water to or from Aubrey Lake or Lewisville Lake made or ordered by the City, of as a result of the construction, operation, or maintenance of the features and appurtenances owned and operated by the City, rovided, that this shall not be i construed as obligating the City to hold and save the Government harmless from damages or liability resulting from the sole negligence of the Government or its officers, agents, or employees and not involving negligence on.the part : of ^the City or its officers, agents, or employees. ARTICLE 10. Assignment. The City shall not transfer or assign this any.righ,ts acquired,,hereunder,, nor.sub-allgt said yate; supply. , w.r_.. storage spaces or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without the approval of ''the Sedeetary of the Army,' rovided, that'unless contrary Eo the public Interests this restriction shall not be construed to apply to any water that may be obtained from the water supply storage spaces by the City and furnished to any third party or parties, nor any method of allocation thereof. ARTICLE 11. 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 herefrom; but this f provision shall not be construed to extend to this contract if made with a corporation for its general benefit. ARTICLE 12. 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 agreement or understanding for a commission, percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the 'ity for the purpose of securing business. For breach or violation of this warranty, the Government shall have the right to annul this contract 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. ARTICLE 13. Environmental quality. During any construction, operation, and maintenance by the City of any facilities, specific actions will be taken to control environmental pollution which could result from such activity and 1 to conply with applicable Federal, State, and local laws and regLO ations concerning environmental pollution. Particular attention should 'e given to (1) reduction of air pollution by control of burning, minimization of dust, containment of chemical vapors, and control of engine exhaust gases and smoke from temporary heaters; (2) reduction of water pollution by control of i i t g isanitary facilities, storage of fuels and other contaminants, and control of turbidity and siltation from erosion; (3) minimization of noise levels; (4) onsite and offsite disposal of waste and spoil; and (5) prevention of landscape defacement and damage. ARTICLE 14, Federal and State laws, a. In acting unler its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State lags and regulations, including but not limited to the provisions of the Davis-Bacon Act (40 U.S,C, 276a et seq.); the Contiact Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3. i b, The. City furnishes as part of. this contract an .assuiance y~ (Exhibit C) that it will comply with Title VI of the Civil Rights Act of l 19'64'(78 Stet; 242, 42 V.S.C. 2000d et' seq.) and Department of Defense Directive 5500,11 issued pursuant thereto and published in Part 300 of •,.1„, ,T~tle.,92, Code,of Feder 1 e ~R. 8ula4.tops,....., it ~.~,ii i%t'1•.,1,r ~u I' ,i.,),Y..4 y~;Y ••H ARTICLE 15. Definitions, a. Joint use costs. The costs of features used for any two or more Project purposes, b.., Pro ect investment costs...,.The -initial coet.'of the Project, including; land acquisition; construction; interest during construction or. the value of land, labor, and materials used for planning and construction j of the Project, e. Specific costs. The costs of Project features normally serving only one particular Project purpose, U d. Interest during construction, An amount of interest which accrues on expenditures for the establishment of Project services duriag the period between the actual outlay and the time the Project is first made available to the City for water storage. ARTICLE 16. A rovil. This contract is subject to the written approval of the Secretary of the Army, and it shall not be binding until so approved. 9 . wool p 1 IN WITNESS WHEREOF, the parties hereto have executed this contract as of E the day and year first above written. APPROVED: THE MTED STATES OF kIERICA By_ Joe H, Sheard I Secretary of the Army Colonel, CE Contracting' Officer Date N CITY OF DENTON, TEXAS OVA. .•n•+~.~ `K 'n..y,~l. a!%.. a\• ::'~.a.i•w•:1wrR. :ar•P 'Y .••;i..::+.-::•✓J•r. 1 i Tom D. Jester, Jr, E j Mayor 1. Brooks Halt, certify that I am the City Secretary of the City of Denton, { ixnton County, Texas, named as City herein; that Tom D. Jester, Jr. who signed tLis contract on behalf of the City of Denton was then Mayor of the City of Denton, Texas; that said contract was duly signed for and on behsif of the City of Denton, Texas by authority of its governing body and is within the scope of ita legal powers, IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said City of Denton, Texas this day of 1975. Brooks Holt Secretary City of Denton, Texas CORPOR•ITE SEAL 10 I "Owl is i' r , Contract No. DACW63-76-C-0000 AUBREY AND LE141SVILLE LAKES EXHIBIT A I - LAKE STORAGES Aubrey Lake .,Percept_.,. Percept of I Elevation' storage of gross water supply .,.:.Peature ' -(feet msl ) (acre-feeC} store a storage" ' Flood control 632,5-640,5 265,000 24.892 11a'ftr supply' : below'632;5 719;646 " `75.103 ' 1b0.0'l. . . a^ (City of Dallas) below 632,5 (591,700) (55,580) (74,0) I - , .(Citycf•Den ton) below 632,3. 207i900)' 19.528 (26.0) r Totals 1,0649600 100.000 r ~ Lewisville Lake Cross Percent Percent of Elevation storage (1) of gross water supply Feature feet msl) (acre-feett atorage(2) store e i f Flood control 522,0-532.0 336,100 65,427 Water supply 515.0-522,0 1779600 34,573 100,0 (City of Dallas) 515,0-522.0 (131,400) (25,584) (74,0) (City of Denton) 515,0-522,0 46 200) 8.989) (26.0) Totals 5130700(2) 100.000 (1) 1985 condition. (2) Between elevations 515,0 and 532,0 feet msl. II - PROJECT ESTIM(iTED CONSTRUCTION INVESTMENT TO BE ALLOCATED h Federal construction cost $15297450000 Noureimbursable costs (unallocable) (1) .5840 000 Project cost to be allocated 146,905,000 Interest during construction on allocable cost 16,343#900 (2) Project construction investment to be allocated $16392480900 (1) Relocation of roads above replacement-in-kind standards. (2) Interest rate for flood control and Federal share of recreation - 3.25X,' Interest rate for water supply and non-Federal share of recreation - 5.116x. A-1 IIi ALLOCATION OF EST LkTED CONSTRUCTION I14VES (Se?arable costs - remaining benefits m- ethod~MENT Water Recreation - Totals 1, Specific facilities cost; $ 1451000 Aubrey Lake $210645,000 $ 212990,000 Lewisville Lake (1450000) (19,575,000) (19,720,000) 2, Joint use facilities cost; 49,707,6(0) (20270,000) (2,2700000) Aubrey Lake 35,207.400 124,915,000 Lewisville Lake (86,9660 00) (34,0431400) (120,7859000) 1 Subtotals cost (2'-'- 9b6 00-) _(1,164 000) 4 130 000 ! $ 89,8520600 $57,052,400 • 3. Interest during $146,905,000) ! construction; 1206280400 ) 3,715,50o Aubrey Lake 161343,900 Lewisville Lake (12,2110100) (315160500) (15,727,600) ` 4` Total allocation- (417.300) (191.000) {6161300). lavestme Aubrey Lake S102P48,604 (1j' $60;767,400 $163;248 '900 (999 0970 700) (57,134,900) (156,232,600) ..,,••,(3,383,300), .i3,k33,000 „ (1) Interest rate for water supply --5.116% (fiscal year 1976). Interest rate ' for ieimbursement'for eater supply will be set•as of the'begianing of'the- fiscal year in whirh construction of the Project is started, (2) Investment cost to be repaid by City of Dallas - 74X ' Lewisville Lake Aubrey Lake Totals r Present ,water su 1 $2j5030600 $73, 331, 300 $ '75.835,900 Futaen water apppy (2,503 600) .._.(371,399,500). (39,9Q3,100.). City of Denton - 26X (0) (35,9320800) (351932,800) Present water supply 879,700 25,765,400 26l6459100 1 1 ' Future water supply (879,700 $ (Oj (120625g 000) (14'0200100) i Totals .S._._.___~___) _(12,625,000) 3,383,300 $999097,700 $102,481 p rV -ALLOCATION OF ESTIMATED OPERATION AND MAINTENANCE COSTS Anbtev Lake A, Allocation of estimated total annual costs: Water supply Recreation Total 1, Specific cost $ 470700 2. Distribution of joint use $435,000 $482,700 cost (percent) 57,283 3, Allocated joint use cost 81 800 61 41. 000 117 1 142 2 8 00 4. Total allocation ,800 1290500 $S 9pp $625,500 To be paid by the City of Denton: 262 of specific cost for wat.r supply facilities Aubrey Lake joint use cost; $121402 ' Present via (0.51 x 0.26 a 0,57283 x $142,800) 10 Future w/s (0,49 x 0.26 x 0,57183 x $1420800) 10,847 421 Total $33,670 A-2 9 4 B. Determination of payments by the City of Denton for operation and maintenance costs of specific water supply facilities: S Total experienced specific water supply facilities costs for the preceding Covernment fiscal year. R Total experienced specific water supply facilities costs for the next preceding Government fiscal year. Ps Payment to be made by the City of Denton for specific water supply facilities costs. 1st payment, Ps - 0,26 x $47,700 x No. months 2 1st period 12 2nd payment, P. 0.26(S x No. months inllst period + S) - lst payment 3rd payment, Ps - 0,26(2S - A), where A - S x 12 No. months in 1st payment ..from the 2nd PAY"nt t•,. 'Subsequent payment,-P 0.,26(25 R)' 8 j C. Determination of payments by the City of Denton for joint use_ operation., %dairitenance costs:"a11oc'aEed' to "pie sent 'use water' supply: ~•J;•-..Total. experienced~jo£nt-use costa,for'the preceding-Government fiscal i year. i I - Total experienced joint use costs for the next preceding Government fiscal year. j P. - Payment to be made by the C ay,of,Denton for.Joint•uge„costa 411ocated'to water'supply. I I ...lot payment, Pj - 0.07595 x $142,800 x No. months 12 let period I 2nd payment, P = 0.07596(J x 12 + J - 1st j No. months in 1st period ) payment 3rd payment, P - 0.07596(2J - B), where B = J x 12 J No. months In 1st period from the 2nd payment Subsequent payment, Pj - 0.07596(2J - I) D. Determination of payments by the City of Denton for additional amounts of joint use operation and maintenance costs allocated to future use water supply: J - Total experienced joint use costs for the preceding Government fiscal year, I - Total experienced joint use casts for the next preceding Government fiscal year. Pj - Payment to be made by the City of Denton for joint use costs allocated to water supply. lot payment, Percent of future w/s P storage placed in use No. months in 1st period j 100 x 0,07298 x J x 12 A-3 1` 9 Y'. k lad payment, Percent of future w/s pi atoraL a placed in cse NO, months in i 100 x 0,07298(1 x 1sc Period 12 + J) - Ist payment Percent of future w/s Subsequent payments, P . atora a placed in use 1 100 x 0.07298(2? - I) NOTE: The computations above in first payment being the coats foraat full rGoveznment fiscalhe yea of Project operation, In the event the first use of futurerwater supplsy should be made prior to completion of a full Government fi ! i cal year of Project operation, make one of the following adjustments: (1) If the preceding Government fiscal year was a ti r ~A .`•y,; , partial year of ~rq,~ect operation, .substitute J x. 11 for J in computing the 1st 'ND' months Project in operation f` be.computed as shown., payment. All remaining payments will . (2) If first use of future water supply occurs in the first year of C Project operation, use the estimate of $142,800 for J in com- :Puling t4, first Aaymeai,,.,us.e J x; 12 for J in computing the 2nd NO• months Project in operation' J ,!2 payment, and use 'J x'~ tenths Project in operation from the 2nd payment for'I is f computing the 3rd payment, All remaining payments will be computed as shown, A-4 I • i V - ALLOCATION OF ESTIMATED MAJOR CAPITAL REPLACEMENTS COSTS AhD SEDIMEN'f,1TI0N RESURVEYS COSTS A. Ma or capital replacements costs: (1) Aubrey Lake Water -221Y Recreation Total 1. Specific cost 2, Distribution of joint use cost $1,100 $107,800 $108,900 3, Allocated joint use cost (percent) 65,714 34,286 100,000 4 ~'otal.al,location 2 300 .'1 200. 3~Spp, . 1 . •+r•. 3.400,.. , $1,093.000 . S112, 4,00,., , To be paid by the City of Denton; .,26z"of specific cost.for.water. supply. facilities.,- Aubrey Lake joint use cost: ,l~ $286••;, Present w/p (0,51 x,0,2b x.Q,b5714 x $3,500) { &tare w/9 ''(p,49 x 0,26 •x 0,65734 x $3,500) 305 1 Total 293 , 84 (1) Estimates of average annual charges are used for determination of allocated.percentages.• All charges will be based on the indicated•per- i centages of actual co::ts if and when they are incurred, .•(2) Additional amounts of joint use cost required to be paid as future water supply storage is used will be computed as follows; Percent of future w/s storage placed in use 100 x 0,49 x 0,17086 x actual joint use coat B, Sedimentation resurve s costs; Aubre_~k~ Sedimentation resurveys costa allocated to water supply and to be paid by the City of Denton are based on the percentage of the gross storage in Aubrey Like represented by the storsge right of the City - see section I Of this Exhibit A. Present water supply 0,51 x 19,5282 - 9,959% Percent of future w/s Future water supply store a laced in use 100 x 9,569% A-5 f t 7 t VI - COMPUTATIONS FOR ANNUAL PAYMENTS FOR INTEREST AND MORTIZATION Present water supply. Amount to be amortized; Lewisville Lake $ 3,383,300 x 0,26 $ 819,700 Aubrey Lake $99,097,700 x 0,26 x 0,51 13 140 400 Total $I , 0 20 00 ! Bared on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 5.116 percent, i A " P Where: P - annual payment A -.amount to be repaid - $14,0209100 , . . tncgrest rate 5.116X. e amortization coefficient for 49 Q years 0.004859195617 _ti,.•.$14 0201100 - .P i• 'M"rp...Y *h•.. .a •r.. 0.0511 +..0.004859195617 17.85102390E - $1490203100 - P s• i 18.85102390P - $140020,100 P $7431731.48 r, ,.c.. 1 f i i t 1 G I i 1 A-6 owl Contract No. DACW63-76-C-0000 AUBRRY P~i1t TEWTS,VTLLE IJtK&13 MJBI s • PAYITITT SCIIED!)LE Yri. PAYc~h,vl 10 P•sY:,_A'i' it) i0iAL ::•':L",.u;r .~G• IN1,eae.51 r1n1NL;Itl L eAviwrvI LiJr 1r,),:,rl I)-,, 0•JJ /d+3/3k.If r 74:Sf3!•~Ir. 13-"!6A- 2 61Y219•UI CA:fl8 4/ 1411J1.4o I3'..I1::...; 3 61591ts-b6 o1612•yr 143 13 10 4d I.SIb+JIf j.1! 4 6'/2449•X9 712."2.23 143/31.42 13)It1!-)•)) 5 66nb02.49 /Sve'J•J,1 143/31.4:. 1~t Y~1, ) 1 •r 1 6 66496J•Jo /x/62.4) 143'/3I.4C l:_•,lv)'-v.1)1 I 66Uv39.59 62191 •r.9 /A3/:51641n l'~cV•:! b 65614J3aVe; 81021•;2 7431 3l.4c l.:t•.~: 9 65e2y1.6d 914/y•C9 14.51,41 'in k2 91T!•)•'rI •.-5z' 96159. 9•r lp3If 31•.•+r. t~,l•`.1;J. . 10 "64Y611 .6426,bl..y6 .-•,.1UI;1Y9r,5J•, 1.4.1.13.l~ta;,......ie!i~~),S;S;J,•.J? , 12 631410. 75 1 ).250• Jj 743131 .4.0 1%a,r.%i;J. 13 631J44.v1 111 91 /4'131.4^ 1 !r r.a•:t I 1>it;, ,...b.B6341•..0 C..:•... 3 I•YyJ:1..uJ . ,.,../k37d~ ..4o. , .I-e-ke Z4 i 1,,. 15 623324.bb 163470.60 /43131. I c !c'?llI -et 1,6 ,'614)11.40 1,29/20•JCS 743'131 . 4, 11o1sJ,.•~~ 17 647314.9'2 139356.56 743731 . r:a 1 1 73570'). t l I b 603390• J2 If 43332•5 u 143131 .40 11 5.0 of ..+I f 1 9 593066-J2 1 b.)6O3.46 /43/31 .if? t 10', It ! 1 20 565357.93 Ibo373.50 '/4'3'/31.48 112eilit •3: 21 5771 S5. y9 1'554'/5,)-i 743131.4 11119r~k.h: . j f 22 56b73b•6C 174vve.c•J 1437:il •4 c. I iv41: 23 559766.05 1b3y4b-43. 743731.•465 10'15,'lye4•~3 t 24 550375.40 143356.Jh '143731.4b 19554b(•t!415 + 25 540463.31 273~146-17 ?43731.43 10361s19.y'5 26 b3UJdb.13 813646.35 /43131.4:,1 101 it 1(y/3•• .5 • 2/ 51915 0-OF0 e?4J,160b) 143731.r^, 9~s23)•rl•I I 2b SJ7665.69 e36J(.5-o3 143131-96r7J,51..4.) 210 4955:':••9'2 846142.90 44;5731.06: yh3~cSr..3 30 4t58a93.53 26.)d3Y-95 743131 04c 921E ?900 3) > 31 469549.J5 274102.42 743131.46 c):)3e610v1 3e 455521,ev 2CC2J9•Sy 743731+'4± r, 619(•!:r..IZ4 j 33 44077'/.Ut+ 3)29b4.4J '/43/;!1.4- C31r1?u. v: 34 425277.94 318453.54 743731+4: 1yy4259 -44 35 40d9b5-05 33474_ 43 74~131.4c '16yyyJ4•^1 36 391660.21 3blb71..?,1 744'12!.4• 7307633•GJ 31 3/3b5o.S3 a69t'1e.N5 743731.4 6y3•116J-(.z) 3tS 354y35-t3 3bb7vbp 665 143731.4: 05Ift -.06b 39 33504b.Jb 4JC6b6.43 743731.4•; 61it )z7r.b'1 40 314136.65 42)594.63 741711 .4r 511ilP03.114 41 29215b05b 451572.9) 743731.48 b?!>lI10ab4i 42 269056.11 4%46/5.3/ 14J131 0 4n 41d4r,+y•Of l 43 244'111 -'/'2 4Vevb96 76 743731 .42 4245474. 11 44 219244.94 5e4466.94 7431JI.4c 45 192412.21 551319.21 14JN1.4b 3r1)966i.vJ 46 164206.11 579524.77 743731.46 263)145.13 41 134b5c •G2 6391 73.26 743731 -4C 2'0'2 1 671 • ~.,I 48 103:192•')': 6403JC-96 74,)/31.48 I3bJh33.31 49 7)633•2U 673)96.26 7437J1.4b '/)7535403 560 36197.4ki 7075J5.JJ 74373e.52 3.07 B-1 owl i Contract No. DACW63-76-C-0000 AUBREY AND LEWISVILLE LAKES EXHIBIT C ASSURANCE OF COMPLIANCE WITH THE DEPARTMENT OF DEFENSE DIRECTIVE UNDER TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 j The City of Denton, Denton County, Texas (hereinafter called "Applicant- Recipient") HEREBY AGREES THAT it will comply with.title VI of the Ci•jil j Rights Act of 1964 (Public Law 88-352) and all requirements imposed by " or "pursuant tb the Directive of the Department of Defense (32 CFR`Pait'300, 1..'..' Issued as Department of Defense Directive 5500,11, December 28, 1964) 1.4;sued pursuant to, that„title, co the end that,,•in.aecordange with,tiF1R„VL y 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 denied the benefits'of, 'or be"otherwise' subjected'to discrimination under, any program or activity for which the Applicant-Recipient receives Federal financial assistance from the U. S. Army Corps of Engineers and HEREBY GIVES ASSURANCE THAT it will immediately tpke any measures necessary W effectuate this.agreement,. , If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the Applicant-Recipient by the U. S. Army Corps of Engineers, assurance shall obligate the Applicant- Recipient, or in the case of arty transfer of such property, any transferee, for the period during which the real property or structure is used for a i purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is so provided, this assurance shall obligate the Applicant-Recipient for the perioi, during which it retains ownership or possession of the property. In all other cases, this assurance 9:6,11 E obligate the Applicant-Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers, THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal rants loans contracts property, discounts other Federal financial assistance extended after the date hereof tohe, Applicant-Recipient by the Department, including installment payments after such date on account of arrangements for Federal financial assistance which were approved before such date, The Applicant-Recipient recognizes and agrees that such Federal 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 C-1 e t Judicial enforcement of this assurance. This assurance is binding on the Applicant-Recipient, its successors, transferees, and assignees; and the person or persons whose signatures appear below are authorized to sign this f assurance on behalf of the Applicant-Recipient, i t THE CITY OF DENTON, TEXAS Dated 'By i Tom D, Jester, Jr, Mayor Brooks Holt Secretary City of Denton,,Texas C-2 ri 1~l w,- rwr b • 1 Contract No. DACW63-76-C-0000 AUBR£Y AND LFk'ISVII,LE LAKES , EXHIBIT D OPINION OF COUNSEL -76 I have reviewed and approved contract number DACW63-C-0000 between the United States of America and the City of Denton, Texas. Particularly I have considered the effect of. Section 22,1 of Public Law;91,:611 j of Denton, Texas f w.:: , ,F....,.. (42 U.S.C. 1962d-5b) and am of the opinion that the City authority to enter into and comply with this ~e the •equ~site legal agreement-ad required by•tbe'aforementioned staiute. • i Dated___-_T Paul C. Isham City Attorney City of Denton, Texas i . D-1 »n DRAFT 11 h Contract No. DACW63-76-C-0000 111OV 1 19r' OOTRACP BETb'EEN THE UNITED STATES OF ! AMERICA AND i THE CITY OF DALLAS, TEXAS FOR WATER STORAGE SPACES IN AUBRE Y AND LEWISvILLE LAKES, TEXAS THIS CONTRACT, entered into this between the United States of America (hereidayo of called thelGo~ercuyoent), represented as the Contracting Officer executing this contract, and the City of Dallas, Dallas Count Te WITNESSETH THAT. Y~ xas (hereinafter called the City), WHEREAS, the River and Harbor Act of 1965 1041) authorized the construction, operation and maintenance Law 89-298, 79 Stat. the Slate including of Texas; modification of Garza-Little Elm Resnvoiainte since renamed O amubrLewisville eyLake Lake,. (hereinafter called the Project) on the Elm Fork of the Trinity River in W~REAS, in accordance with the authorized mod (located immediately downstream from the Aubrey Dam)fw ilibe modified Lewisville Lake Permit the transfer of flood control storage from Lewis11 be m Aubrey Lake for an equivalent amount of water supply storage in Lewisvil Lake le Lake for i municipal and industrial uses; and F WHEREAS, the City desires to contract with the Government for the use of storage included in Aubrey Lake and aditional storage to be made available In Lewisville Lake for municipal for payment of the ^ost thereof in accordance d wiihutheial water supply 1 Supply Act of 19589 as PP1Y and ! , amended (43 U.S.C. 390b and Provisions of the Water j ; WHEREAS, the City is empowered so to contract with the Government and I` of this vested wit contracth necessary Powers for accomplishment of the purposes Act of 1470 (42 U S C ncluding those • . 1962d-5b); squired by Section 221 of the Flood Control NOW, THEREFORE, the Government and the City agree as follows: ARTICLE 1. Water ,tors e space. } a, Project construction, The Government, subject to the directions of federal law and an limitations imposed thereby, s 1. the Project so as co include in Aribrey Lake s hall design and con pace for the City and space for the storage of floodwaters shichthewillstorage perm of water by it t reallocation of flood control storage in Lewisville Lake to municipal hand industrial water supply storage, a portion of which will also be utilized by the City, b. Rights of the City. (1) The City shall have the right to utilize (a) an undivided 74.0 percent (estimated to contain 594700 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Aubrey Lake below F F a +er~ tj which total storage space is elevation 632.5 feet above mean sea level, including storage Car estimated contain 799,600 acre-feet i1niivided gross 74.0 percent*(estimated to contain sediment dep eposits, and d (b) (b) an o acre-feet grass storage , including storage for sediment deposits) of the to the total storage space in Lewisville Lake between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level, which total storage for storagea e is estimated to contain 177,600 acre-feet gross storage, including sediment deposits. The storage space in Lewisville Lake is to be used to for mu trial water impound water for present demand AubreydLake isntoibelused todimpound water supply; for pr and the storage spa for present and anticipated future ands or needs for municipal and estimated 01,800 acre-feet) of i water supply. In Aubrey Lake, acrfor present for future use water water the space which rcent City (an estimated 289,e-feet) ~900i ~ t storage and 64 pe : . storage. ..r (2) The City shall have the right to withdraw or transfer water from or transfer water into either or both of the two lakes, or to order releases to, o.:~ • ti ^bg 6ide by th'e' Goveii6ihEthioUgh' the outlet"worke''In' the dami, subject to e i ovisions of G provide, and shall c have c thedright h to constrULt all such works, plants, pwpalines, P and convenient for the purpose of transfers and appliances as may be necessary or withdrawals, subject to the approval of the Contracting Officer as to t in, and design and location. The grant of easemens for right-of-waq across, i E upon land of the Government at Aubrey Lake and at Lewisville, Lake shall be by separate instrument in a form satisfactory thetauthorityaof and in accordance without additional cost to the City, % with the 4 casements, thesCity shall have the6right stoiuse so much of Aubrey Lake and of 10 U. S.C. Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges herein granted, to lower mean raeatlevel and toe ed The elevation 632.5n feet reserves c, Rights Lake to water in Aubrey in its rule elevatio lower the water in Ltioda ofetiameeeaois deemednnecessaryeL above moan sea a level luring such pe f roses. The Government further reserves discretion, for flood control Pu p f • the right to take such measures as may be necessary in the operation of Aubrey Lake and Lewisville Lake to preserve life or property. i d. liailability of water. The Conly. ity recognizes that this Government makes no contract provides storage spaces for raw wateer availability Goverment water and representations with respect to the.quality a of assumes no responsibility therefor or for the treatment of water. ARTICLE 2, Re lation of and r1 ht to use of water. The regulation of ; the use of water withdrawn or released from or transferred to or trom the aforesaid storage spaces shall be the sole responsibility of the City, The City has the full responsibility to acquire in accordance with State laws and regulations, and if necessary to establish or defend, any and all water utiliz The Governmeenntfshall notabtieonreofspthe 2 -10 diversions by others, nor will it become a party to any controversies involving the use'of the storage spaces by the City except as such contro- versles coy affect the operations of the Government. ARTICLE 3. Operation and maintenance. The Government shall operate and maintain Aubrey Lake and Lewisville Lake, and the City shall pay to the Government a share of the costa of such operation and maintenance as provided in Article 5. The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the transfer into or out of or withdrawal of water from either or both of the two lakes and shall bear all costs of construction, operation, and maintenance of such installations and facilities. ARTICLE 4. Measurement of withdrawals and releases. The City agrees to furnish and install, without cost, to the Government, suitable meters or measuring devices satisfactory to.the Contracting Officer for the measurement. . of water which is transferred into Aubrey Lake or Lewisville Lake cr is with- ` drawn or transferred from Aubrey" Lake or Lewisville Lake 'by'any meari a other than through Aubrey Lake or Lewisville Lake outlet works. The City shall ish to„the, Government ninthly statements q( all such wi~hdrpwals off; trans-, fers. 8eleases from the water supply storage ,paces through Aubrey Lake'or f Lewisville Lake outlet works shall be made in accordance with written schedules 'furnished by the City and approved by the Contracting Officer and shall be sub- Jett to Article Ic. The measure of all such releases shall be by spans of a rating curve of the outlet works or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces. ARTICLE 5. Payments. In consideration of the right to utilize the aforesaid storage spaces in Aubre, Lake and Lewisville Lake for municipal and industrial water supply purposes, the City shall pay the following sums to the Gove.cnment: I ' a, Project investment costs. M (1) The City shall repay to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amount of the construction costa, including interest du:.ng con- struction, allocated to the water storage rights acquired by the City under this contract. 17he interest rate to be used for purposes of computing interest luring construction and interest on the unpaid balance will be determined by the Secretary of the Treasury as of the beginning of the Government fiscal year in which construction of the Project is initiated on the basis set forth in the Water Supply Act of 1958, as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1976) is 5.116 percent. The City shall repay: 74 percent of the construction cost of specific water f supply facilities, estimated at $ 1072300 53,143 percent of the total Project joint use construction cost, estimated at 6693830600 Interest during construction, estimated at 9,345,000 Total estimated amount of Project investment cost allocated to 74 percent of the water supply $759835,900 3 1 i i (2) The Prol:ct investment cost allocated to the storage spaces indicated in Article lb(l) as being provided for present demand is currently estimated at $39,903,100 on the basis of the costs prrsented in Exhibit A of this contract. The amount of the Project investment cost allocated to the j storages for present demand shall be paid in 50 consecutive annual payments, the first of which shall be due and payable within 30 days after the City is notified by the Contracting Officer ti.at the Project is completed and operational for water supply purposes. Annual payments thereafter will be due and payable on the anniversary date of sail notification by the Contracting Officer, Except for the first payment, to the retirement of principal, all which will be applied interest on the unpaid balance at the rate'provided above.Incl Thedlastcannual payment shall be adjusted upward or downward when due to assure repayment of all of the Investment cost allocated to the storages for present demand within 50 years. " . (3) The Project investment cost a,located to the remaining portion .,,.Of the,. storage space, that provided In.Aub: 11 bake, for eatimated *at $35,932,800 on the basis of tl osts presented eInsExhibit Ar m oyr principal or interest payment with respect .u this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply purposes unless all or a portion of i such storage is used for purposes of withdrawal of water from or transfer of water into or from Aubrey Lake during this period. The amount to be paid for any, po=tion of such storage which is used shall be,determined.by mul6iplying..., the percentage of the total storage for future water supply which is placed in use by the total amount of the Project investment coat allocated to fur re water supply, Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water supply 1 which is not being used from the tenti. (10th) year following the date the t Project is operational for water supply purposes until the time when such Ftorage is first used, The City may at its option pay the interest as it becomes due or allow the interest to accumulate until the storage is used. If this latter option is exercised, the interest will be compounded annually aid added to the principal amount. When any portion of the storage for future water supply is used, payment in bot;. principal and accrued interest for the portion used must be started; and the amount of the Project investment cost allocated thereto shall be paid within the life of the Project in not to exceed 50 consecutive annual payments beginning/within 30 days after the date of first use of such portion. Annual payments t ereafter for the said portion will be due and payable on the anniversary date of first use. For any portion, except for the first payment which will be applied solely to the retirement of principal (including accrued interest), all payments shall include interest on the unpaid balance at the rate provided above. The last annual payment for any portion shall be adjusted upward or downward when due to assure repayment of all of the investment cost allocated to the storage within the repayment period. (4) An estimated schedule of 'annual provided for present demand is attached as ExhibiteBtoffthishcontract , The annual payments as provided therein shall be made until an interim estimated 4 i r 1 n I y I determination of cost or a ,,u'ticl final determination of cost is made as provided 6, Payment schedules fur the store demands will be furnished b S- Provided for future water supply de ands wi and f based on este Contracting Officer when use of such storage provided in Article 60 until actualecoststarejknown.subject to r evasion, as tF.e indebte) Theand City shall have the right any time so elects to prepay Interest thereon to the date of such rein whole or in p payment, part, with accrued b, Ma or ca ita2 re lacement costs and sed I 1 The City will be required to pay 74 percent of theecostiforranurve s costs, replacement of specific water supply the City shall PPly facilities at Aubre Lakey major capital addi Pay t th ate meat 244800 percent of the costs of jointuse ~Jor capital replacement ite times the storage • • fgr.,futµre water supply to used ms used. a.,t AubAubreey Lake until such storage: apply demands is used, the share of the Joint use Provided for future water ' items costs, which the City will be required to a major capital replacement capital replacement costs of-the specific water sup in addition to the major P2y facilities; Will tie"' increased commensurate with the percentage of the water suPP1Y storsS used up•to a total of. 48,628 percent of such costs, . The City required to e b eing Aubrey Lake p ay 8.346 percent of the costs of sedimentation z surveysoate until As the storage such time as the storage for future water su bethe provided for PP2y demands is used, the share of veys Costsewhichrthe City will he requiredyto pas will ppl is u. reased commensurate with the echth a of the water Bu f being used up to a total of 53 . 580 thi! P S g " wade either in 1 Percent of such men storage' ump sum on demand at the time such coats, Payment shall be annually with interest on the unpaid balance a the~rate are incurred or Article 5a(l), If paid annually, payment shall be Provided in 1 Payment on the Project investment cost becoming made with the first any; ' capital replacement costs or sedimentation resurveys casts aredincurred• jor c. Annual o eration artid maintenance costs, (1) The City will be required to pad 74 percent of the a nual experienced operation and maintenance costs of specific water Supply facil at Aubrey Lake In addition, the City shall pa 21.ercent of experienced Joint use operation and maintenanceycostslof puubrey Lakehuntinaleg such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the annual experienced joint use operation and maintenance costs, which the City will be required to pay in addition to the operation and maintenance coats of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used up to a total of 42.389 percent of such costa, casts of present use water supply The first payment for operation and maintenance advance within. 30 days after the Contracting Lake will be due and Pa In the Project is completed and operational n8 Officer notifies ose,wi yablell be City that for the period beginning on thedatethe Project water is Supply Purposes, water supply purposes and ending on 30 September following, and will amount to the 5 o~ 1Wr I 3 t sum of the first payment, Ps, for specific water supply facilities costs and the first payment, Pj, for joint use costs computed as shown in parts B and C, respectively, of section IV of Exhibit A. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following the close of the prior fiscal year and will be the sum of payments Ps and Pi computed cony :utively as shown in parts B and C, respectively, of section IV of Exhibit A. (2) When each and any portion of the future water supply storage is placed in use, the fi:st payment of the additional amount of the joint use { operation and maintenance costs required to be paid for such storage use will f be due and payable in advance within 30 days after first use of such storage, will be for'the period beginning on the date of said first use and ending on -30 September following; and will amount 'to the'first payment, Pj; computed- as shown in part D of section IV of Exhibit A. Annual payments thereafter, each Government fiscal yrar ending. 30 September, will• be due and payable In advance on 2 January following the close of the prior fiscal year and will j amount to payments Pj computed consecutively as shown in part D of section IV of Exhibit A. d. Charges for delinquent payments. If the City shall fail to make any of the aforesaid payments when due, then the overdue payments shall bear interest compounded annually at' the rate provided in Article Sa(2) until paid. The amount charged on payments overdue for a'period of less than one year shall be figured on a monthly basis. For example, if the payment is made within the first month after being overdue (31 to 60 days after the anniversary date), one month's interest shall be charged. This provision shall not be 1 E construed as giving the City a choice of either making payments when due or 1 paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might result from any default by the City. e. Assurance of funds for contract payments, The City warrants that all payments contracted hereunder shall be secured by a pledge of surplus revenues of the City's combined Waterworks and Sanitary Sewer System remaining after payment of all expenses of operating and maintaining such system and after providing for payment of all debt service, reserve, or other requirements in connection wifb the City's Waterworks and Sanitary Sewer System Revenue Bonds now outstanding or those hereafter issued on the same basis or on such other basis as may be approved by the Contracting Officer, provided, that in the event such surplus revenues are not available to meet the payments contracted hereunder, the City shall either issue additional Waterworks and Sanitary Sewer System Bonds or it shall fix and collect such rates end charges foz services of sa!.d combined system as will make possible the prompt payment of all the aforementioned requirements including payments contracted hereunder. Payments made by the City as Project investment cost and as major capital replacement costs and sedimentation resurvey costs shall be regarded as capital expenditures. b R' wftw~ amounts TInLthis contract, Construction cc), based on the , All construction cost dollar Exhibits Governments best estimates, The a y are tentative only downward by the Contracting Officer when final construction and the contract will be modified to reflect the awill be djustments. upward or after the Project is completed and o eras! costs become known, Contracting aft P onal for water su Within two Year; Officer shall make a revi Ppun rs construction costs, Including sed interim estimated determination ~ ophe account the actual costs to thenextent turing are construction and taking into actual costs are In like manner, awn, at which time thea Contracting Of intervals until all' cost determination, including in 8 Officer shall pr0pare a occasion of an interim determination,orrontfinald during ete construction. O n each Payments thereafter due shall be charged so as to , thn eacah ~1a• the balance due in equal provide for the a ant of period; and a revised Payments during the remaining life.of.therrepayment. schedule, or schedules as necessary, of a•, shall be furnished to the City, nnual Payments ` ARTICLE..;,:..,:,,Y ................r,w...r..,.:. en "V. 7. Duration of contract, This contract shall ~be leffective w approved by the Secretary of the Army and shall.continue in full force and effect for the life of Aubrey Lake and Lewisville Lake, and the additional storage to be made available in Lewisville BLake Ahave ybeen formulated on the basis of 100 years economic life. Lak' e 'DTI U g. Permanent ri hts to store e, by the City as provided in Upon completion of payments i rt 5a the rights under the provisions of ithe Acthofe16~Octobert1963a(Publhave a 43 U.S.C. 390e permanent ic Law 88-140 and Lexisville)Lake ass use o the Arwater ticle lply store8.e provided spaces in Aubrey Lake subject to the following; ~ a. The City shall continue Article Sc, of the annual nt nue payment of its share, as supply, operation and maintenance costa alprovided located ito water b. The City shall bear 74 supply for Aubrey Lake and 2 percent of the costs allocated to (1) water 515.0 feet above mean sea leveltandt522.0afeet above mean sea level for Lewisville Lake of any necessary reconstruction rehab itbetween elevations tion, meat of Aubrey Lake or Lewisville Lake features which may re or replace- continue satisfactory operation of Aubre, Laka Lewisville be required to will be established by the Contractin ~ °r epaymenta Lake. Such costs including schedules, will be in g Officer. Repayment arrangements, contract. writing and will be made a part of this C. Upon completion of payments by the City as provided in Article 5a herein, the Contracting Officer shall redetermine the stcrage space for municipal and industrial water sup ouch equitable reallocation of lake sto age capacitiestamong then account Purpo served by Aubrey Lake as may be necessary due to sedimentation. Such ses 7 1 r 4 1 1 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 lake storage capacities 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, . d, The permanent rights of the City under this contract shall be continued so long as the Government continues to operate Aubrey Lake and/or Lewisville Lake, In the event the Government no longer operates Aubrey Lake ff or Lewisville Lake, such rights may be continued subject to the execution of 3 a separate contract, or supplemental :o eement, providing for: (1) Continued operation by the City of such part of, the•facility as is accessary for utilization of the water supply storage spaces allocated to its (2) Terms which will protect the public interest; End (3) Effec'tive' absolve'ment of the Government'by the bity from'all liability in connection with such continued operation,. ARTICLE 9. Release of claims, The City shall hold and save the Dove-nment,•including its officers, agents, and employees, harmless from . liability of any nature or kind for or on account of any claim for damages which may be filed or asse_ted as a result of the storages in Aubrey Lake and/or Lewisville Lake, or withdrawal or release of water from or transfer of water to or from Aubrey Lake or Lewisville Lake made or ordered by the City, or as a result of he construction, operation, or maintenance of the features and appurtenances owned and operated by the City, provided, that this shall not be construed as obligating the City to hold and save the Government harmless from damages or liability resulting from the sole negligence of the Government or its officers, agents, or employees and not involving negligence on the part of the City or its officers, agents, or employees. ARTICLE 10. Assignment, The City shall not transfer or assign this contract or any rights acquired hereunder, nor wb-allot said water supply storage apaces or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without the 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 that may be obtained from the water supply storage spaces by the City and furnished to any third party or parties, nor any method of allocation thereof. ARTICLE 11. Officials not to benefit. No member of or delegate to F. Congress, or Resident Commissioner, shall be admitted to any share or part of this contract or to any benefit that may arise herefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit. 8 rte,..-. r s i ARTICLE 12, 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 agreement or understanding for a cununission0 percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty, the Government shall have the right to annul this contract 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. ARTICLE 13. Environmental cuality. During any construction, operation, and maintenance by the City of any facilities, specific actions gill be taken to control environmental pollution which could result from such activity and c "0 'with' applicable Federal, State, and local laws and'iegulations concerning environmental pollution. Particular attention should be given to (1) reduction of air pollution by, control of burning, co&tainment bf'chemical vapors, and control of engine exhaustgases a dust smoke from temporary heaters; (2) reduction of water pollution bycontrol of sanitary facilities, storage of fuels and other contaminants, and 'control of turbidity and siltation from erosion; (3) minimization of noise levels; ` (4) onsite and offsite disposal of waste and spoil; and (5) prevention of II landscape defacement and damage. ARTICLE 14. Federal and State laws, ' 1 a,' In-acting under its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davis-Bacon Act i (40 U.S.C. 276a et seq.); the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3. b. The City furnishes as part of this contract an assurance j (Exhibit C) that it will comply with Title VI of the Civil Rights Act of 1964 (:S Stat. 241, 42 U.S.C. 2000d et seq.) and Department of Defe.ise Directive 5300.11 issued pursuant thereto and published in Part '00 of Title 32, Code of Federal Regulations. ARTICLE 15. Definitions. a, Joint use costs. The costs of features useJ for any two or more Project purposes. b. Project investment costs. The initial cost of the Project, ixluding: land acquisition; construction; interest during construction on the value of land, labor, and materials used for planning and construction of the Project. c. Specific costs. The coats of Project features normally serving only one particular Project purpose. ' 4 l 1 , i Intere`ring construction, An amount of intee a on exppe enditures for the establishment of Project servicesrdst which accrues between the actual outlay and the time the Project is fire[ to the City for water storage, urine the parted made available ARTICLE 11. A royal, This contract is subject to the tritten aPProvF1 Of the Secretary of the Army's and it shall not be binding until so a . pproved. I • i { 10 l • i~ i IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. APPROVED: THE UNITED STATES OF AMERICA t I By Joe H. Sdeard Secretary of the Army Colonel CE Contracting Officer Date , TEXAS. I ~ BY George R. Schrader City Manager f I I, Harold G.'Shank, certify that I am the City Secretary of'the City of Dallas, Dallas County, Texas, named as City herein; that George R. Schrader who signed this contract on behalf of the City of Dallas was then City Manager of the City of Dallas, Texas; that said contract was duly signed for and on behalf of the City of Dallas, 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 Citir of Dallas, Texas this day of 1975. Harold G. Shank Secretary City cf Dallas, Texas CORPORATE SEAL . 11 r f { i t . Contract No. DACW63-76-C-0000 i AUBREY AND LEWISVILL_ E LAKES E LS IT A i - LAKE STORAGES Aubrey Lake I Gross Percent Elevation storage of Percent Feature feet ms! Bross water supply .,(acre-feet) stora~ store e Flood control 632,5-640,5 265,000 892 Water supply, below 632,5 24. 799,b00 24.892„ O1Ey of Dallas) below 632,5 (591,100) 170.0, (55.580) {74.0) (City of Denton.) below 632,5 (207.900) 19.528) Totals 100649600 10 0`00 (26,0) Lewisville Lake GIOsik Percent Percent of Feature Elevation storage (1) of gross water supply feet msl) (acre-feet) et2rage(2) __sto_ rage Flood control 522,0-532,0 336,100 65,427 s Water supply 515,0-522,4 177,600 34,573 100.0 (City of Dallas) 515,0-522,0 (131,400) (25,584) (74,0) (City of Denton) 515.0-522,0 46 200) (8.989) Totals 513,700(2) 100.OOp (26.0) (1) 1985 conuition, (2) Be.ween elevations 515.0 and 532,0 feet Mal. II -PROJECT ESTIMATED CONSTRUCTION INVESTMENT TO BFBF A_ATED Federal construction cost Nonreimbursable costs (unallocable) (1) $152,745,000 Project cost to be allocated 5 840 000 Interest during construction on allocable cost 1 6,905,000 Project construction investment to be allocated _ 16.343'-900 (2) $163.248,9`00 (1) Relocation of roads above replacement-in-kind standards. (2) Interest rate for flood control and Federal share of recreation - 3.25%. + Iatereat rate for water supply and non-Federal' share of recreation - 5.116X. i A-1 ~1 ' 1 -Y f II1 -ALLOCATION OF ESTI*tATED CONSTRtICTION INVESTMENT Separable coats - remaininbe nefits method) } Water supply Recreation --Totals ~ 1. Specific facilities cost: $ 145,000 $2198450000 Aubrey Lake (145,000) (19,575 000) $ 21,990,000 Lewisville Lake (0) (2,270,000) (19,720,000) 2, Joint use facilities cost: 8907070600 35 207 400 (29270,000) Aubrey Lake {86,741,600) ' ' 124,915,000 Lewisville Lake (34,0436400) (120,785,000) (2,966,000) ~ (1 ,164,ON --4!1 Subtotals -cost _$89,852,600 $57 , 052, 40h 14630,000) • 3. Interest during ,805,000 construction: 120628,400 (1) Aubre,r Lake 3,715,500 Lew 1603432900 (12,211,100) (3,510,500) (15,727,600) Lewisville Lake •(4172300) _ (199,000) 4. Total allocation- (616,300) inveetQeat: $102,481;000`(2)' $6o767900 Aubrey Lake (99,097,700 $163',248,900 Lew isville Lake 3 383 300) (57,134,700) 025602320600) ,{3, 6331000) {7, 016$ 00) (I)' Interest rate for water supply - 5,216% (fiscal year 1976). Interest rate for reimbursement for water supply will be set as of the beginning of the- fiscal year in which construction of the Project is started, (2) Investment cost,to be repaid by, Lewisville Lake Aubrey Lake Totals City of Dallas - 74% $2,503,600 $7303320300 $75,835,900 + Present water supply , (?.503,.090) ..(37,399,500) (39,903,100) Future water supply I City of Benton - 26X (0) (35,932,800) (35,432,800) water supply 879,700 25,7650400 26,6450100 Present 9,700) (139140,400) (14,020,100) 'I Future water supply (87 + Totals ----~0) 12 625 000)112,625,000) ` $3,3830300 $9990970700 $10294810000 IV - ALLOCATION OF ESTMATED OPERATION AND MAINTENANCE COSTS Aubrey e A. Al. acation of estimated total annual costs: Water s- upply Recr_ eation Total 1, Specific cost $ 479700 $435,000 $4820700 2. Distribution of joint use cost (percent) 57,283 42,717 100.000 3, Allocated joint use cost 81.800 _61,000 4: Total allocation 142,800 ,129,500 $490,000 $6259500 To be paid by the City of Dallas: 74X of specific cost for water supply facilities $35,298 Aubrey Lake joint use cost: Present w/s (0,51 x 0,74 x 0.57283 x $142,800) 30 871 Future w/s (0.49 x 0.74 x 0,57283 x $142,800) 291661 Total $95,830 P-2 COW" B. Determination of payments by the City of Dallas for operation and maintenance costs of specific water supply facilities: S - Total experienced specific water supply facilities costs for the preceding Government fiscal year, R - Total experienced specific water supply facilities costs for the next preceding Government fiscal year. Pa - Payment to be made by the City of Dallas for specific water supply facilities costs, lot payment, Ps - 0.74 x $47,700 x No. months in 1st period (j 2nd payment, Ps a 0.74(S x 12 12 No, months in 1st period + S) 1st payment 3rd payment, Pa - 0.74(2S - A), where A - S x 12 No, months in 1st payment from the 2nd payment Subsequent payment, Ps . 0.74(2S -'R)' C. Determination of payments by the City of Dallas for joint use operation and maintenance costs allocated to present use water supply: • v. . J - Total experienced joint use costs for the preceding Government fiscal year. I - Total experienced joint use costs for the next preceding Government fiscal year. P w Pa j yment to be made by the City of Dallas for joint use costs allocated to water supply, lot payment P . " . . J. 0,21618 x $142,800 x No. months in 1st period 12 j 12 f 2nd payment, P - 0.21618(J x No. months in let period + J) - 1st payment 3rd payment, Pj - 0,21618(2J - B), where B - J x 12 No. months in lot period from the 2nd payment Subsequent payment, Pj - 0.21618(2) - I) D. Determination of payment's by the City of Dallas fer ac:ditional amounts of joint use operation and maintenance costs allocated to future use water supply: J - Total experienced joint use costs for the preceding Government fiscal year. I - Total experienced joint use costs for the next preceding Government fiscal year, Pi - Payment to be made by the City of Dallas for joint use costs allocated to water supply. lot payment; Percent of future w/o P -storage placed in use No. months in lot eriod j 100 x 0.20771 x J x 12 A-3 v . .r 1 ' 2nd payment, Percent of future w/s months in P storage placed in use NO. 100 x 0.20771(1 x lbt period 1- 2 ` f J) - 1st payment Percent of future w/s Subsequent payments, p storage placed in use j 10^ 0 x 0.2077] (21 _ I) NOTE: The computations above in part D are based on J ' in the first Payment being the costs for a full Government fiscal Project operation. In the event the first use of futu erwater MUPPlY should be made prior to completion of a full Government j fiscal year of Project operation, make one of the following adjustments: (1) If the preceding Government fiscal year was a Partial year of Project 'operation, •subs.Itute J x 12 for J In computing the 1st go. months Project In operation be computed as shown, Payment. All remaining payments will (2) If first use of future water supply occurs in the first year of Froject operation, use the estimate of $142,800 for J in corn- { -puting the' first payment, use J x 12 for J in computing the 2nd .7- months Project Ir. operation 12 payment, and use J x . f W. months Project in operation from the 2nd payment for I in computing the 3rd payment. All remaining payments will be 11 computed as shown. A-4 f.F Igys•I{ ~R20 Y V - ALLOCATION OF ESTIMATED lSA10R CAPITAL REP1ACEtlEY1~ CO5'fS AfiD SEDL`iENTA'1'IO~ RGSliltyi:YG COSTS A. 11a~or capital replacements c, osts: tl) kubre~y Lake Water Total su 1 Recreation $11100 $107,800 $108,900 1. Specific cost rCent) 65,714 34.286 100.000 2• Distribution of joint use cost (Pe 2.300 1 200 y i { 3, Allocated joint use cost $30404 104,000 $112,400 .4• Total allocation id by the city of Dallas: $ 814 To be Fa supply facilities 74% of specific co, t for Water Aubrey Lake joint use costs. 868 present w/s (0.51 x ) .74 x 'r .65714 x $3,500) 834 Future W,Is (0.49 x 0.74 x 0.65714 x $3,500) (2), 2,51b Total nnual char be based donnthenindicated per- (1) Estimates of average age ware ill used allocnted percentages. All charges are-incurred-i s if, and wben they •.centages of actual cost coat required to be paid as future water j L (2) Additional amounts of joint use 1 i supply storage is used will be computed as followst Percent of future w/s joint use cost etorage placed in use x 0,49 x 0.48628 x actual 100 Sedimentation resurve a costs: Aubr Lake Sedimentation resurveys costa allocated to water supply and to be paid by the City of Dallas are based oonathe percright e0tage Of the gr ss8storage In I Aubrey Lake represented by h the City ea sect of this Exhibit A. present water supply ■ 0.51 x 55.580% ■ 28.3462 Percent of future W/o storage olaeed in use x 27,234% Future Water supply ' 100 A-5 Yil-1.g' VI - COMPUTATIONS FOR ANNUAL PAYMENTS FOR INTEREST AND h*fORTIZATION Present water supply: Amount to be amortized: Lewisville lake $ 3,383,300 x 0,74 ; 21503,600 Aubrey Lake 0,99,097,700 x 0.74 x 0,51 37 399 500 Total 39,903,100 c . Based an 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 5.116 percent, i A - P Where: P - annual payment P 1 A = aaaunt to be repaid - $39,903,100 i + c i'- interest rate - 5,116% .J r. ..L r... a •l. 'r' 'it-amor'tiaation coaffici'enE for 49' years - 0.004859105617 $39.9039100 - P 0,0511 + 0.:;04859195617 17.85102390P - $39,903,100 - P 18.85102390P - $39,903,100 { f P - $2,116,760.35 . i i r A-6 ; MYV~J T Mew 7 Contract No. DACH63-76-C-oooo pIJI1R°Y A'!n TT-4T:WlM:7-: _T,AvE3 Lk l I9I T,21 s PAY" !IT SCIIFT)T7, i Yii• PAYa.c'vl lU e'•?Yf,r.,r'f fJ iUTAL LL` IN 00 ivlhiii.S'i s,C I PAL r'A 01 T 39v'J31)J•J) t 0.00 2.11ei1! 7.3n 1167cJ0 ~j b 311_.,3 1933149.14 1b3bI t •21 2I I(jY(,J•35 S'I# iO2'f 8 3 19237 55 . `.,y l 931)0r+ '11616)•35 3'f4'.9 Yi'..t.i•c •"IG q 1913bd1.46 6le•b9 21107h0.3`+ 4 14 5 1'1035o~•ld 213'25n•11 2116760.35 3Gvvj5c'.v 1, t G 1692591.!39 2241Gts•4G 2!16760.35 yr.Yr,yhld•1' ~I 7 1#slsll23.43 835636.62 21t676J•35 36`~33Ycl.~+c~ 41Gv2.10 Ll107OJ•35 3 :-e )ev•lrs 2 lb6906b•25 g 9 lobG396.32 2GJJ64.03 2116700.iS 36Je 'x25.11 10 1b43376 I :10 273644.94, ~116160,.J,5.,..,. 57f314,4.`~ a.l.......,1.b29)TA-ri1 2a",1.6 5 . 12 IES14356.4Q 302403•`)5 2116760.35 351i1450• 211F:76J•3b 3:,r:440'r5• 13 1'19ii 60 5.41 317A74994 .3341.3,7 x42. ..2116!,,64!35 alu.,19.99JOS 1 .y....,.'.if+.~. 1'1 62022,•43....,,••.' 1 5 176552b•46 351231.6`) 2316.16}.35 3415,10 • 16 1747559.44 369?90.91' 2116,760.35 33Yev~iS•hI 33~01~1f• .12 3ow)e9.23 2116760.35 4 1 72dG7 1 Sr 111 7Ub316.47 4}I94J•bc 211676J•Jto vv'iliI l 19 1661946•Jr. 42ct14•2 9 2116'l00 .3SS 32t,4h';:,r•al E 5•'> 0 166600'1.92 4oJI58.43 211b'/bJ•3, 3.I1 3 vJ 3 . 1y dl1GYi .3S 311~,'7j; •)rf.,.. 21 • x1642910,41. 47't)5I P, l 22 1610 to/. I6 2116760.35 JJGIbS'i4i•eG, 23 . 15')3286. 10 52;15p . 59 2116760.35 30001•71 ' 24 15654424'16 550317.57 25 1538206.53 b?64'/l•C•'2 21167!',0.35 2rr;~155r~•C`~ i 1 26 1bOr6d3.92 bUciJb0•4y 61 21 147*1 be 5.2•~ lb- I1 ~•3t) -l 1r J~• 1• 26 1444bn5•J4 611815•.31 2 f 29 1410511.97)6'-8lot•45 ?l1,1,,l•ob r 1~. 3J 13143o.).L,i 14:3:,)• 1'c LI3 r',}.d~ l i"rl . 31 13364J_'•iu It)3G'J•2v 211Ar(')•!'o 4bLlar:Y.i~ 3'2 1396476:d3 ba0?t'3.52 211:7.,J•3S 33 1254511.12 062249.23 '?116760.35 236a%i?73.43 34 1210391i•45 976361.90 2L1676J•35 22752716.5•.3 35 1164026.90 952731.37 2116'16J•35 21 16 36 111525'1424 10'31473•!! 2116760.35 237 98!~I'P.0a 31 10G4')!i1•h,d IJ5?.'I)o•41 211676J•35 1974bS)361-6 38 lOlDV)5.3I 1136565.04 21 16760.35 I'o63 d;~' 36a114 39 953533.44 1163176.91 211675JOS 17476? 61 •F,3 40 694075.31 12)426b5•VI 21161 5J•35 16'~63316 0 1.>r 41 831522.75 12b5237.60 2116'160.35 14960136.99 42 165169699 135J99J•36 2116760.35 136171 4606J 43 696653.32 142JI)7.03 2116760.:!5 !2!9'1041•x,) 44 6240)0.63 1 2 75 21 L676J • 35 l j-1011~~: i •9J ' 49v~• 73 G1 45 547631.06 15G91'2v•29 2116760.35 41351 5c3• 7435746.6/ 46 467354.41 1641)406.94 '2116'160.35 47 3629'IJ•b) 1733769.55 21167(;O035 57:519I~7• I'1 48 2942'IJ.13 1b22f1`)J.22 211676J•35 3y2940t,0 9') 49 201031.53 1915726.62 2116760.35 201373~s0J 50 103022.64 2013736,06 B_1 211676J•9e rsnr, j~ i Contract No, DACW63-76-C-0000 AUBREY AND LEWISVILLE LAKES EXHIBIT C ASSURANCE OF COMPLIANCE WITH THE f 1 ! DEPARTMENT OF DEFENSE DIRECTIVE UnDF.R { TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 The City of Dallas, Dallas County, Texas (hereinafter called "Applicant- r-O Recipient") HEREBY AGREES THAT it will comply with title VI of the Civil Rights Act of 1964 (Public Law 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) i,8s4ed 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 in,'be denied the benefits of,'or be otherwise subjected to discrimination on under, any program or activity for which the Applicant-Recipient receives Federal financial assistance from the U. S. Army Corps of Engineers and HEREBY GIVES ASSURANCE 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 extended to the Applicant-Recipient by I the U. S. Army Corps of Engineers, assurance shall obligate the Applicant- Recipient, 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 a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is so provided, this assurance shall obligate the Applicant-Recipient for the period during which it retains ownership or possession of the property, In all other cases, this assurance shall obligate the Spplicant-Recipient for the period during which the Federal financial assistance Is extended to it by the U. S. Army Corps of Engineers. 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 hereof to the Applicant-Recipient by the Department, including installment payments after such date on account of arrangements for Federal financial assistance which were approved before such data. The Applicant-Recipient recognizes and agrees that such Federal 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 C-1 Judicial enforcement o° this assurance. This assurance is binding on the personaor-personsnwhoseasignaturesaappearsbelowsarenauthorizedatoasignhthis { assurance on behalf of the Applicant-Recipient. THE CITY OF DALLAS, TEXAS Dated By George R. Schrader City Manager 1. r r~. ..~.n., .e. • ' 1 ATTEST: r Haro G.,S nk Secretary ' ! City of Dallas, Texas I C-2 F F 1 ~T~v1• 1 Contract No, 1)ACW6?-76-C-0000 \ I AUBREY AND LEWISVILLE LAKES EXHIBIT D OPINION OF COUNSEL I have reviewed and ep~roved contract number DACW63-76-C-0000 between j the United States of Aaerica and the City of Dallas, Texas. ParticularlX I have c., onsidere4,the effect of Section,221 of, Public Law, 91-611 ] (42 U.S.C. 1962d-5b) and am of the opinion that the I City cf Dallas, Texas has the re - , , , , quisite legal authority to enter into and comply with this , R agreement as required by the aforementioned statute.'' •i \ \ . Dated N. Alex BiWey City Attorney ~J City of Dallas, Texas ! a i d } ~ S 3 f D-1 1 s 10 4! :Y ff}~ M ~d:W l :y a t IE N E) I { ~V I r i , I r. I I• q