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HomeMy WebLinkAbout08-1976 CERTIFICATE OF ACCEPTANCE I, Jimmie J. Jones, Director of Community Development of the City of Denton, Texas, do hereby certify to the Honorable City Council of said City that the work of improving the fol- lowing streets and portions thereof in the City of Denton, Texas, has been completed by Jagoe Public Company in accordance with the terms of a contract entered into by and between the City of Denton, Texas, and the said Jagoe Public Company dated November 4, 1975, and in accordance with the terms of ordin- ance No. 75-4c, passed and approved on the 4th day of November, A. D. 1975, ordering such improvements, and that such improve- ments have been constructed and completed in full compliance with the terms of such contract, and with the plans and speci- fications therein contained or referred to, and I do hereby recommend that the Honorable City Council accept and receive said work and improvements as constructed by the said Jagoe Public Company, the said streets and portions thereof being as follows, to-wit: STREET UNIT NO. FROM TO 1. DONNA ROAD HIGHWAY 77 830' NORTH OF HWY. 77 2. DEL DRIVE DONNA ROAD PINEY ROAD 3. RINEY ROAD HIGHWAY 77 DEL DRIVE Respectfully submitted this the 3rd day of August, 1976. IE L . , CTOR CO UNI Y VEIA 'NT r b: r; R s \j r F V r t i 4a" W M v • r i •~rrr ° ~i.~ r 7 !C 1 N j t;,. r lk 'p.1ll i M' , ?4 II~r, 4( rvr ?}x t s 6i" 'gip ° f ej ~ ('I~~,+1t,f rv n.r R~y.~~ v~Y~ l'~ 4149 AT A REGULAR MEETING OF T1IE CITY COUNCIL OF THE CITY OF DYNTON, TEXAS, HELD IN THE !i'JNICIPAL BUILDING OF SAID CITY ON THE 3RD DAY OF AUGUST, A. D. 1976. tr, R E S 0 LUTI0N b„ WHEREAS, Denton County Community Council is a medium through which interested citizens, organizations, agencies, and departments of government can work and coordinate together the needs of the community} and WHEREAS, the Community Council is working towards the prevention and elimination of conditions which cause or per- petuate social problems; and WHEREAS, the Community Council has, 1s a purpose, the collecting, organizing and disseminating of information concern- ing social service needs and the resources within the community 'for meeting such needs; and I WHEREAS, the Denton County Community Council is sponsoring a proposal entitled "A Comprehensive Development Grant for Single Heads of Households with Children" to be submitted to the Texas Department of Community Affairs by Community Services Inc.; and WHEREAS, the City Council.of the City of Denton supports the functions of the Denton County Community Council, and encour- ages the Community Council to seek such a grant for the benefit of the citizens of the city and county; , NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE ,CITY OF DENTON, TEXAS: That the City Council support the Denton County Community Council in seeking a grant for the "Comprehensive Development for Singlo Heads of Households with Children", and that the Texas Department of Community Affairs give favorable consideration to such grant request and the benefits that such a grant will bestow on the citizens of the City of Denton and Denton Co•.,nty, PASSED and APPROVED this the 3rd day of August, A. D. 1976. ® C•-o t' ELINOR UUGH~ MA)FOR CITY OF DENTON, TEXAS ATTEST: i4KS-HOLTj IT SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: MUL C. , CITY CITY OY DENTON, TEXAS I 1 i p r. c r r C' 44 N0. 7 (r' 3 5 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY AMENDING ARTICLE It CHAPTER 9 OF THE NATIONAL ELECTRICAL CODE, 1975 EDITION TO SUBSTITUTE A NEW SECTION 210-8 (a); PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING PENALTIES FOR VIOLATIONS THERE- OF; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: PART I. That Article I, Chapter 9, Section 9-1 National Electrical Code, of the Codo of Ordinances of the City of Denton, Texas, is hereby amended and shall hereafter read as follows: ARTICLE I. IN GENERAL. Section 9-1. COMPLIANCE WITH NATIONAL ELECTRICAL CODE, 1975 EDITION, REQUIRED. The National Electrical Code, 1975 Edition as previously adopted is hereby amended by deleting Section 210-8 (a) in its entirety and substituting a new Section 210-8 (a) which shall read as follows: Section 210-8 (a) Residential Occupancies. For residential occupancies all 120-volt, single-phase, 15 and 20 ampere receptacle outlets installed out-doors and in bath- rooms may have ground-fault circuit protection for personnel. Such ground-fault; circuit protection may be provided for other circuits, locations, and occupancies, and where used, will provide additional protection against line-to-ground shock hazard. J PART I.I. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinan a3, and the City Council of the City of Denton, Texas, hereby decla:'es it would have enacted such remaining portions despite any such invalidity. PART III. Any person who violates any provision of this ordinance shall be deemed guilty of a misdemeanor, and, upon conviction, shall be punished by a fine not to exceed Two Hundred Dollars ($200.00). Each day such a violation shall continue or be permitted, shall be treated as a separate offense. PART IV. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED This the 3rd day of August, 1976. 11 MINOR HUGHES. MAYOR CITY OF DENTON, TEXAS ATTEST' OLT, CITY SECRETARY ITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: L C. ISH , CITY ;W;~Y CITY OF DENTON, TEXAS d' r7 l' . A ~ ~1 j ~ C ~ ~ r F", ~ ~i I N . . r, , a~ q q .1 1 . R [i x + y, l 1 Y.~ ld .A~, ~ J~ ~r ~dL~ t. ,ec. ~ tea`. i. wit ~ .~~:~°v i r - AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HELD IN THE MUNICIPAL BUILDING OF SAID CITY ON THE 3RD DAY OF AUGUST, A. D. 1976. R E S O L U T I O N WHEREAS, on June 10, 1976, the City of Denton, Texas, submitted to the Texas Aeronautics Commission an application for a grant-in-aid for an airport development project at the Denton Municipal Airport; and WHEREAS, the Texas Aeronautics Commission has issued a Grant Offer for TAC Project No. 762-12, dated June 17, 19761 which, if duly accepted, provides a commitment of 12 1/28 of all allowable project costs of said project, not to exceed a maximum obligation of $20,000; and WHEREAS, the City of Denton, Texas, has available a like amount of matching funds, in cash or in kind, which have been appropriated and designated for airport development pur- poses] and WHEREAS, it is determined to be in the best interests of the citizens of the City of Denton, Texas, to accept this Grant Offer and thereby enter into a Grant Agreement with the Texas Aeronautics Commission; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: That the City of Denton, Texas, does hereby enter into a Graft Agreement with the Texas Aeronautics commission by accepting the Grant Offer for TAC Project No. 762-12, dated June 17, 1976; and, be it further RESOLVED, that the City of Denton, Texas, shall be bound by the provisions or said Grant Agreement, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all legal purposes; and, be it further RESOLVED, that Jim White, the City Manager be, and he is hereby authorized and directed to execute said Grant Agree- ment on behalf of the City of Denton, Texas. PASSED and APPROVED this the 3rd day of August, 1976, ELINOR HUGHES, MAWR CITY OF DENTON, TEXAS ATTEE K HOLT $ TY SECRETARY /RWO CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: UL C. ISHAM, CITY A TltT OMM CITY OF DENTON, TEXAS y r 4 ur., City of Denton o Rliniicipal Bitilding, Denton, Pm 76201 August 10, 1976 Texas Aeronautics Commission P. 0. Box 12607 Capitol Station Austin, Texas 78711 Dear Sir: Attached to this letter is an executed Grant Agreement offered by the Texas Aeronautics Commission to the City of Denton on June 17, 1976. The City of Denton City Council for- mally approved the Grant Agreement at the regular meeting on Tuesday, August 3, 1976. A certified copy of the official Resolution is attached as per your instructions. You will note that the Grant Agreement is signed by Jack Owen, Assistant City Manager, rather than City Manager Jim White. Jack Nen is authorized by the City Council Resolution to perform the duties of the City Manager in his absence. I have enclosed for your Information a copy of this Reso- lution authorizing Jack Owen to sign for Jim White. Mr. White is currently on vacation and will not return until after the deadline for submitting this Grant Agreement. Should this arrangement present any problem, please let me know as soon as possible so that it might be corrected, Many thanks for your assistance in improvements at Denton Municipal Airport. Sincerely, William K. Cole Assistant to the City Manager WKC/Js Attchs. TEXAS AERONAUTICS COMMISSION GRANT AGREEMENT Part 1 - Offer Date of Offer: June 17, 1976 TAC Project No: 762-12 TO: Denton, Texas (herein referred to as the "Sponsor") FROM: The State of Texas, acting through the Texas Aeronautics Commission (Flerein referred to as the "Commission") WHEREAS, the Sponsor has submitted to the Commission an application for grant dated June 10, 1976 , for a project for development of the Denton Municipal Airport rport, together with plans and speci- fications or sue project w c app"Dcation for grant as approved by the Commission is hereby Incorporated and made a part o t is grant by refer- ence so as to ave the same effect as though repeated ere n; an WHEREAS, the Sponsor certifies that it has available in cosh and/or in other acceptable form the resources for the undertaking and successful completion of this project; and WHEREAS, the Commission has approved a project for development of the Airport (herein called the "Project") consisting of the following described airport development: Acquire land in the south clear vone to runway 35 TAC ORIGINAL TAC FORM 100 (Rev. 12/74) Page 1 of .5 NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of the Texas Aeronautics Comml.;;sfon Act as amended, and in consideration of (a) the'Sponsor's adoption and ratification of the conditions comprising this Offer as hereinafter provided, and (b) the benefits to accrue to the State of Texas and the public from the aa:omplishment of the Project and the operation and maintenance of the Airport as herein provided, THE TEXAS AERONAUTICS COMMISSION, FOR AND ON BEHALF OF THL STATE OF TEXAS, HEREBY OFFERS AND AGREES to pay, as the State of Texas' share of the allowable costs incurred in accomplishing the Project, 12~% per centum of all allowable costs, or the maximum o igat ono t ie tate payable under this-Offer, whichever is the lesser. This Offer is made on and subject to the following terms and conditions: 1. The period of this agreement shall be twenty (20) years from the date of Sponsor's acceptance. 2. The maximum obligation of the State of Texas payable under this offer shall be $20,000 3. The Sponsor shall; a, Begin construction on or before Net applicable Failure to do so will constitute just cause or termination of the oi,ligatfons of the State of Texas hereunder by the Commission, unless at the Sronsor's request, the Commission grants additional time in writing. a b. Carry out and complete the Project without undue delay and in accordance with the plans and specifications which are Incorporated herein. The Commission has the option to withhold the payment of any State funds unless the plans and specifications have been completed and approved by' the Commission, c. Make every reasonable attempt to complete the project on or before Make every reasonable attempt w complete the project before January 1, 1977. 4. The allowable costs of the Project shall not Include any costs determined by the Commission to be ineligible for consideration as to allowability. TAC FORM 100 (Rev. 12/74) Page 2 of 5 i . 5. Payment of the State of Texas' share of the allrnrable project costs will be made pursuant to and in accordance with the established procedures approved by the State Comptroller and the Commission. final determination as to the allowability of the costs of the project will be made at the time of the final grant payment. b. The Commission reserves the right to amend or withdraw this Offer at any time prior to its acceptance by the Sponsor. The acceptance period cannot be greater than 60 daysafter issuance unless extended In writing by the Commission. 7. The Commission will not become a part of any contract or commitment which the Sponsor may enter into or assume in carrying out this Project. Progress payment from the grant will be paid to the Sponsor periodically as development is satisfactorily completed. The Sponsor in turn shall settle all project encumbrances and financial obligations. 8. Approximately ten (10) per cent of the total grant will be withheld by the Commission, to be paid only after all work has been completed, inspected and approved by the Commission, or its designated repre- sentative, 9. Any and all fees collected for use of the airport or navigational facilities constructed In part with funds granted herein shall be reasonable and non-discriminatory. The amount realized from fees so collected will be used solely for the operation, maintenance and upkeep of the airport, and for further development of the airport as funds permit. (See also V.'1'. C. S. Art. 46d-11) It. The Sponsor will, if requested by the Commission, on September l of each and every year submit to the Commission an itemized statement of revenue received from the airport and expenditures made thereon for the preceding year. 11. All future development of the airport will be consistent with a current master airport layout -tan, approved by the Commission and maintained by the. Sponsor. A rcproduccable copy of said plan, and all subsequent modifications thereto, shall be filed with and approved by the Commission. 12, Where the authorized airport development project includes the installation of lighting, the Sponsor hereby agrees unconditionally TAC FORM 100 (Rev, 12/74) Page 3 of 5 that such lighting system will, whether automatically or manually, be in operation from sunset to sunrise. SPECIAL CONI)1TIONS; 13, No payment of funds will be made until the title has been approved. Breach Of primary importance to the Commission is compliance with the terms and conditions of this agreement. If, however, after all reasonable attempts to require compliance have failed, the Commission finds that Sponsor is un- willing and/or unable to comply with any of the terms and conditfons of this agreement, or the application incorporated herein, the C,'ommiss:on may, in its discretion, require a pro rata refund of money granted herein, depending upon the time of breach, The Sponsor's acceptance of this Offer and ratification and adoption of appli- cation for grant incorporated herein shall evidenced by execution o t s 3tistrument by the Sponsor, as eretnafter provided, and said Offer and Acceptance shall comprise a Grant Agreement, constituting the obligations and rights of the State of Texas and the Sponsor with respect to the accom- plishment of the Project and the operation and maintenance of the Airport. Such Grant Agreement shall become effective upon the Sponsor's acceptance of this Offer and sh: ll remain in full force and effect throughout the useful life of the facilities developed under the Project, but in any event not to exceed oventy (20) years from the date of said acceptance, STA11 OF '11iXAS TEXAS AERONAUTICS COMMISSION . 1~Y Zli arcs u , r or TAC FORM 100 (Rev. 1.2/74) P gc 4 o Part 11 - Acceptance The City of Denton does hereby ratify and adopt all statements, representations, warranties, convenants and agreements constituting the described Project and incorporated materials referred to in the foregoing Offer, and does hereby accept said Offer, and by such acceptance agrees to all of the terms and conditions thereof. Executed this 10th day of August 19 76 (Sea l ) The City of Denton (Sponso Attest: By; Title: City Secretary Title; ssistant City Manager TAC FORM 100 (Rev, 12/74) Page 5 of 5 CITY OF DENTON MEMORANDUM DATE: October It 1971 T0: Brooks Holt, City Secretary FROM: James W. White, City Manager SUBJECT: Administrative Officer Pursuant to Section 5.04 of the Charter of the City of Denton, this is to advise all concerned that I designate Jack Owen, Assistant City Manager, as the administrative officer to per- form the duties of, and to act as, City Manager during my absence or disability until I shall return or my disability shall cease, or until the City Council by resolution desic,- nates another officer of the City to perform such duties. This letter is to remain in your active files until revoked by me, or by act of the City Council. iT MANAGER A AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HELD IN THE MUNICIPAL BUILDING OF SAID CITY ON THE 26Th DAY OF AUGUST, A. D. 1969. R E S O L U T I O N BE IT"RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS: That Jack Owen, appointed Assistant City Manager on the 12th day of August, 1969, by the City Manager, which appointment is in all respects approved by the Council, is empowered to act for, and perform the duties of, the City Manager in his absence, is hereby expressly authorized to sign all checks, vouchers or warrants for the withdrawal of money from the City Depository, when required during the absence of the City Manager, to be countersigned by the Director of Finance. That the said Jack Owen shall file a signature card with the City Depository, along with a copy of this resolution, and shall provide a surety bond with such surety and in such amount as is required of the City Manager. That this resolution shall be effective upon itr passage and approval, and remain in full force and effect as long as Jack Owen Is Assistant City Manager, unless sooner revoked by act of the Council or of the City Manager. PASSED iND APPROVED this 26th day of August, A. D. 1969. L L. A. 'L ON, !MAYOR CITY OF DENTON, TEXAS ATTEST: i B KS HOLT, CITY SECRETARY 4CITY OF DENTON, TEXAS !APPROVED AS TO LEGAL FORM: Q. BARTO , CIT TTORNE TY OF DENTON, TEXAS I, 14~ f I F i ISM ~ ' t Dti. v w. 1. Ail r No. ?b- 3L AN ORDINANCE AMENDING CHAPTER 4 "ANIMALS AND FOH'L", ARTICLE It SECTIONS 4-5 AND 4-61 AND ARTICLE III0 SECTIONS 4-40, 4-41, 4-43,4-44, 4-45 AND 4-49, OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING A PENALTY; PROVIDING A SEVERABILITY CLAUSE AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HERESY ORDAINS: PAR: I. That Chapter 4 "Animals and FowlArticle It Sections 4-5 s and 4-6 and Chapter 4, Article Iii, Sections 4-40, 4-41, 4-43, 4-44, 4-48 and 4-49 are hereby amended as follows: ARTICLE I. IN GENERAL SECTION 4-5. KEEPING OF CERTAIN STOCK IN THE CITY. HOGS. It shall be unlawful for any person to feed, breed or keep any hog or hogs, pig or pigs, in any lot, pen, building, stable or other enclosures in the city, any part of which lot, pan, building, stable or other enclosure is nearer than one thou- sand (1,000) feet to any occupied building. OTHER ANIMAL. It shall be unlawful for any person Lo feed, breed, stable, pasture ~r keep any cow(s), goat(s), horse(s), mule(s), donkey(s), or uheep in any lot, pen, building, stable or other enclosure in the city, any part of which lot, pen, building, stable or other enclosure is within two hundred (200) feet of any occupied building. SECTION 4-6. ENCLOSURE REQUIRED IN KEEPING CERTAIN ANIMALS. SIZE OF LOTS. It shall hereafter be unlawful for any person to stable, pasture, feed, breed or keep any hog(s), pig(s), cow(s), goat(s), horse(s), mule(s), donkey(s), or sheep in any lot, pen, building, stable or other enclosure in the city, smaller in size, and dimensions than is required by the following specifications: For one cow, sheep, goat, horse, mule, donkey, hog or pig, a lot, pen, building or other enclosure of not less than four hun- dred (400) square feet shall be required. For each additional cow, sheep, goat, mule, donkey, hog, or pig in any such lot, pan, building or other enclosure, an additional four hundred (400) square feet shall be required. MANURE BOXES. Each and every lot, pen, building, stable, or other enclosure in the city in which any of the above named animals, or other species are kept, fed, bred, stabled, pastured or housed shall have a manure box not less than four (4) feet square and not less than three (3) feet deep in which all manure and droppings shall be placed each day. Each such box shall be securely screened or otherwise protected from flies, vermin and rodents and shall be thoroughly cleaned out and disinfected at least once each week. It shall hereafter be unlawful to pile or stack manure in open stacks in the city. ARTICLE III. DOGS AND CATS SECTION 4-40. VACCINATION REQUIRED. It shall be the duty of the owner or keeper of each and every animal which is a member of the cat family or the canine family, herein referred to as dog, owned, kept, possessed, harbored or allowed upon the premises of any such person and under his control in the city, to have such dog or cat vaccinated against rabies by a legally licensed veterinarian at least once each year. Vaccination is defined as a protective inoculation against rabies by inoculation with antirabic vaccine recognized and approved by the U. S. Depart- ment of Agriculture given in an amount sufficient to provide an immunity. SECTION 4-41. DOGS NOT PERMITTED AT LARGE. it shall be unlawful for any dog owned, possessed, kept, or harbored by any person to be at large on any street, sidewalk, alley or other public place or on private premises, including the pre- mises of the owner except when confined within u fenced area, within the limits of the City of Denton, Texas, except while %uch dog is under the immediate and physical control of the owner .~r custodian, such as by leash or chain adequate to control and hold it. Dogs going at large are declared to be a nuisance and dangerous to the public health and safety. -2- SECTION 4-43 - SUMMARY DESTRUCTION OF VICIOUS DOGS OR CATS. If any dangerous, fierce, or vicious dog or cat is found at large and cannot be safely taken up and impounded, such dog or cat may be slain by any officer or agent of the city. Proof of the fact that such dog or cat has attacked or bitter, any person or animal at any place where such person or animal is legally en- titled to be shall be prima facie evidence that such dog or cat is vicious, fierce and dangerous within the meaning of this article. SECTION 4-44 - DEFINITION OF "AT LARGE". "At large" shall mean not under the immediate physical con- trol of the owner or custodian by leash or chain adequate to con- trol and hold it or not confined within an area properly fenced in order to assure that such animal will remain in the fenced area. SECTION 4-48 - DOGS OR CATS WHICH HAVE BITTEN PERSONS. If any person shall make written complaint before the city manager, city attorney or judge of the municipal court that any dog or cat has bitten any person within the limits of the city, it shall be the duty of the chief of police to direct the owner or keeper of sucK dog or cat '.o keep such dog or cat securely confined so as to absolutely prevent such dog or cat from being in contact with person or animal for not less than ten (10) con- secutive days and to release such dog or cat only upon written permission of the city health officer, or to keep such dog or cat confined at a veterinary hospital for the same period of time at the expense of the owner or keeper. SECTION 4-49 - DISPOSITION OF RABID DOGS OR CATS. Any dog or cat suffering a bite from a rabid :og or cat or which displays symptoms of rabies shall be quarantined is a veterinary establishment at the owner's expense for a period of at least six (b) months thereafter or shall be confined for such period in such other place and manner as may be approved by the city health officer in writing; provided, that if the owner or r~~~r keeper of any such dog or cat cannot be readily i&nntified or located after reasonable diligence, upon written direction of the city health officer, such dog or cat shall be destroyed humanely by or under the direction of the chief of police, PART II. Any person who violates any provision of this ordinance shall be deemed guilty of a misdemeanor, and, upon convic`-ion, shall be punished by fine not to exceed Two Hundred Dollars ($200.00). Each day such a violation shall continue or be permitted, shall be treated as 3 separate offense. PART III. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect tho validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. PART IV. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED This the day of August, A. D. 1976. ~,~.71,br IA. ELIOR2H S, CITY OF DENTON, TEXAS ATTEST Y SECRET CITY OF DENTON, TEXAS VED AS TO LEGAL FORMt J589ko. ~11~ UL . I H , IT TTO Y CITY OP DENTON, TEXAS -4- ~j p C i ~ l f F . S i OATH OF OFFICE I, EDWARD J. COOKS, JR. do sclemnly swear (or affirm) that I will faithfully execute the duties of the office of Board of Adjustment of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. 6L 94, Subscribed and sworn to before me the undersigned on this the 10 day of August , A.D. 19 76 To certify which witness my hand and seal of office. EC T R CITY OF DENTON, TEXAS c~ cis T3NITEI] PACIFIC INSURANCE COMPANY HOME OFFICE, TACOMA, WASHVNOTON September 9, 1976 CER ".IFIED MAIL RETURN RECEIPT n's,VII,UESTED City of Denton Mayor, Tom Jester Denton, Texas Bond No. U79 52 91 Principal ALAN VAN NOSTRAND C/o MILLARD HEATH & CO., INC. ' I You are hereby notified that the captioned bond, effective on or about 6-14-76 and executed by UNITED PACIFIC INSURANCE COMPANY, assurety, on behalf of ALAN VAN NOSTRAND c/o MILLARD HEATH & COMPANY, INC., P.O.DRAWER 19 ,DENTON T 6201 described as T. f'FNSF IN" FOR THE CITY OF DE>,'ON 1000.00 is here b ance a ffective _ 10-U-76 or if such specified date does not provide a sufficient number o notice, as required, then upon the earliest date permitted, The issuance of this Cance;lation Notice shall not, however, operate to extend the effective date of cancellation, if such bond has been canceled upon an earlier date tinder the conditions and provisions of said bond. UNITED PACIFIC INSURANCE COMPANY shall not be responsible thereunder for any acts or defaults committed or loss occurring after the effective date of cancellation, nor for any losses not discovered in accordance with the provisions of such bond. Yours way truly, UNITED PACIFIC INSURANCE COMPANY 026~ By Attorr,ey-Ir4act Helen N. Smith CCt ALAN VAN NOSTRAND C/0 MILIM HEATH & CO.~ INC. CCs MILLERMAN & M1:d.ERMAN 9bt61416 Ed,171 J ~O C ti LAss ciatlon o6 North Texas Cities f. 1, 901 0433. FARAIA1 IAA"M ttu4 75331 August 17, 1976 Mayor Eilnor Hughes City of Denton Civic Center Denton, Texas 76201 Dear Mayor Hughes: The Association of North Texas Cities will meet in Carrollton, September 22nd and hear a discussion we know you will find both timely and informative. Ray Hutchison, an attorney and an authority on the vagaries of the Texas Legislature, will discuss, "Water for North Texas the Economic, Legal and Political Necessities for the Future". As you know, this is an issue of vital importance to the North Texas area. Because of Ray's stature in the state, we urge you to invite not only o rur statop elected an te representative andisenatorias your associates, but well. pp Please make a note on the meeting date now on your 22ndwill meeting. you withimoreninformation.aboutletter Septemberfollow . Sincerely yours, George G.~f3rimmer President GGG,.cjm ' P. S. Lot me urge you to mail in or bring to the meeting a resolution making your organization a member of the Association of North Texas Cities. Thore will be much to be gained through participation with us. 41114 HAMILL IAMII 11011111/ 111161161 1, 4410914 IA. 41 f~ AAt1A1 tll N fu ~11r1 H411t11 (1YN`ic IA1111lot11•u 11Y1141`+tA11AAt/1A 46WAt alrl11 ~A1411tN1 t,~SS CIQt1011 0~ ~ North Tees Cities 1/l J{{JJ, /AAMU! IzANCN, T[lA! 7J!!1 June 24, 1976 Mayor Eilnor Hughes City of Denton Civic Center Denton, Texas 76201 Dear Mayor Hughes: As president of the newly formed Association of North Texas Cities, I am writing you to bring you up to date on actions taken by the Association and urge your city to join with us in identifying and achieving our common goals. The Association began on June 16, 1976, when bylaws were ratified (copy enclosed) and officers elected. Named to serve with me were Dr. Eugene Blackwell, councilman from the City of Wilmer, vice president; and Davis Hopkins, councilman from the City of Grand Prairie, secretary/treasurer. Following formation of the Association, representatives voted to take their first step toward the common good: A strongly worded resolution was adopted which urged the Texas Water Rights Commission to recognize and safeguard the water rights of all communities within the watershed of the Elm Fork of the Trinity River. A copy is enclosed. I am also enclosin; copies of two resolutions by.which the City Council of Farmers Branch unanimously joined= the Association and appointed a delegate and alternate to the Association. We urge you to consider similar actions. Join us at. our next meeting July 7. We will gather socially at 6:30 p.m. (dinner at 7:00 p.m.) in the Holiday Inn in Carrollton ( I. H. 3S east service road north of Valwood Parkway). Sincerely yours, m mer Gcoige Vri PresidGGG:cjm ENC4a W1111 1, LIIMrv1A 11, tY1111t IIACMYIII IAy H M/f11M{ MAf11, 1114 •f forest! Otto$% 111"CIL Cllr1of Wilmer 11101111Ij1tilly of grand Jrrlrl• ~LtL H1M1 ~ Ilt~ /1111A1 lllAll/TIIA{YAt1 BYLAWS • ' .•O i~ ► „ . ' ASSOCIATION OF NORTH TEXAS CITIES F , 1. STATEMENT OF PRINCIPLES A. THERE Am TWO BASIC IDEAS WHICH UNDERLINE THE PURPOSE OF THIS ASSOCIATION: EXISTING CITY COVERNMtNTS, AS THOSE CIOSFST TO THE PEOPLE, SHOULD BE q'~ f q ! MAINTAINED AND CONTINUE TO HAVE PRIMARY RESPONSIBILITY FOR MUNICIPAL SERVICES TO THEIR CITIZENS. . 2. -CHANGES IN MUNICIPAL SERVICES AND NEEDED REGULATIONS, RESULTING FROM SCIENTIFIC AND TECHNICAL ADVANCES, HAVE MADE SOME OF THESE SERVICES AND REGULATIONS PRACTICAL OR ECONOMICAL ONLY WHEN PROVIDED Oi A LARGE SIZE OR VOLUME BASIS, POSSIBLY INVOLVING MANY CITIES. S, FUNDAMENTAL PURPOSE OF THIS ASSOCIATION IS TO PROVIDE A FORUM FOR DISCUS- SION OF COMMON PROBLEMS AND EXPLORATION OF POSSIBLE SOLUTIONS. IN THIS CONNECTION, THIS ASSOCIATION SHALL ALSO SERVE AS A CHANNEL FOR INFORMATION ABOUT AND COORDINATION WITH EFFORTS OF OTHER AGENCIES AND ORGANIZATIONS IN TUTS REGION CONCERNED WITH COM4UNITY DEVEWPHENT. ITEMS TO BE CONSIDERED, -BUT NOT LLHITED 103 1. PROTECTION OF AND THE OBTAINING OF WATER ON A FAIR AND REASONABLE BASIS FOR ALL PERSONS WITHIN THE MEMBER CITIES AND TO EXERT A UNIFIED FRONT . r-, FOR SUCH PURPOSES. 7 . Z. TO MEET OTHER LOCAL GOVERNMENT NEEDS VIiICH FUTURE DEVELOPMENTS MAY PRO- . DUCE. C. A SECONDARY PURPOSE OF THIS ASSOCIATION IS TO PROVIDE A VEHICLE FOR ESTAB- LISHING, ON A VOLUNTARY BASIS, COOPERATIVE LOCAL SERVICES IN AREAS DEEMED APPROPRIATE BY THE PARTICIPATING CITIES. THESE SERVICES iiAY BE ACHIEVED :i•;,;'THROUGH JOINT ACTIVITIES, CONTRACTUAL ARRANGEMENTS, OR OTHER SUITABLE DE- VICES. It.. jA%A? ORGANIZATION A. TEX NAME OF THIS ORGANIZATION SHALL BE "ASSOCIATION OF NORTH TEXAS CITIES", III. PRINCIPLE PLACE OF BUSINESS A.'- '1'HB PLACE WHERE THE PRINCIPLE BUSINESS OF IRIS ASSOCIATION SMALL BE TRANS- ACTED SHALL 83 DETERMINED BY MAJORITY VOTE OF THE ASSOCIATION. IV, TERM OF ASSOCIATION A. THE TERM FOR WHICH :'CIS ASSOCIATION SHALL EXIST IS FIFTY (50) YEAkS FROM AND AFTER DATE OF ORGA4IZATION. ' V. kmzksgll A. MEMBERSHIP IN THIS ASSOCIATION r.i.'.F.L BE VOLUNTARY AND WILL BE DETERMINED BY PASSAGE OF A RESOLUTION BY ITS INDIIIDUAL GOVERNING BODY, AND SHALL BE OPEN TO ANY INCORPORATED CITY, MUNICIPALITY, TOWN, VILLAGE, COUNTY OR SPECIAL DIS- T'RICT WITHIN THIS REGION OF TEXAS, THE RESOLUTION SHALL INCLUDE RATIFICATION OF THESE B'TLAWS, .18 ORGANIZATION ' V A. .111E COUNCIL OF DELECATBS SHALL BE THE 004ERNINC BODY OF THIS ASSOCIATION. )MERSHIP OF THE COUNCIL SHALL CONSIST OF ONE DELEGATE FROM EACH MEMBER , ENTITY CHOSEN BY TILE GOVERNING BODY OF THAT CITY OR ENTITY. F C~ IN ORDER TO INSURE REPRESENTATION AT ALL MEETINGS, EACH MEMBER ENTITY SHALL 1SEEND E AS ONE MANY I DELEGA7 ALTERNTOATETHEDELMEETINGSEGATE. ALE RNATEOSHALLZVOTEN VAY ONLY IN nit ABSENCE OF 711E PRINCIPAL FROM HIS CITY. `''•'i logo 1 VI. ORGANIZATION (eontianad) D. THE GOVERNING BODY SHALL BE RESPONSIBLE FOR THE CENERAL POLICIES AND 40 PROGRAMS OF THIS ASSOCIATION, FOR THE ELECTION OF OFFICERS, AND FOR ' 04MENTS TO THESE BYLAWS. A QUORUM SHALL CONSIST OF DELEGATES FROM MAJORITY Of THE MEMBER CITIES. A QUORUM SHALL BE REQUIRED FOR ALL ANNUAL MEETINGS AND FOR ALL OTHER MEETINGS AT WHICH OFFICIAL ACTON IS TO BE TAXEN. F. VREN A QUORUM OF THE ASSOCIATION IS PRESENT AT ANY MEETING, THE MAJORITY VOTE OF THE VOTING MEMBERS, OR THEIR ALTERNATE, PRESENT SMALL DECIDE ANY QUES'T'ION, UNDER CONSIDERATION EXCEPT BYLAWS. 0. EACH DELEGATE SHALL REPRESENT HIS CITY IN THE MEETINGS OF THE COUNCIL AND SHALL REPORT TO THE GOVERNING BODY OF HIS CITY REGARDING ACTIVITIES OF THE COUNCIL AND OF 711E ASSOCIATION. IT SHALL BE THE RESPONSIBILITY OF 1 LAO{ COUNCIL MEMBER TO PILESL47 TO HIS CITY ANY RECOWNDATIONS FROM -THE COUNCIL FOR OFFICIAL CITY ACIION AND TO REPORT TO THE COUNCIL THE ACTION IM SUCH RECOMMENDATIONS. IRl. OFFICERS O: THE COUNCA OF DELEGATES :'A: THE ASSOCIATION SHALL ELECT A PRESIDENT, VICE-PRESIDENT, AND A SECRETARY/ TREASURER OF THE ASSOCIATION. VACANCY OF ANY SUCH POSITION SHALL BE FILLED BY ELECTION AND SHALL HOLD OFFICE UNTIL THE EXPIRATION OF THE TERM OF HIS PREDECESSOR. TER.'MS OF OFFICE OF SUCH OFFICERS SHALL BE FOR ONE YEAR WITH LLECTIONS TO BE HELD IN MAY OF EACH YEAR. ALL SUCH OFFICERS WILL CONTINUE TO SERVE IN THEIR RESPECTIVE POSITIONS UNTIL A REPLACEMENT HAS BEEN DULY ELECTED. 1. DUTIES OF THE PRESIDENT SHALL BEe 1. PRESIDE OVER ALL MEETINGS OF THE ASSOCIATION, ' 2,;° CALL SPECIAL MEETINGS AS REQUIRED HEREIN, y, 3.I'PERFORM ALL ACTS AND DUTIES USUALLY PERFORMED BY PRESIDENT, SIGN ALL SUCH PAPERS OF THE ASSOCIATION AS HE MAY BE AUTHORIZED OR DIRECTED TO SIGN BY THE ASSOCIATION FROM TIME TO TIME, AS WELL AS ALL OTHER PAPERS PROVIDED BY LAW. Co DUTIES OF VICE-PRESIDENT •'1, THE VICE-PRESIDENT SMALL PRESIDE OVER COUNCIL MEETINGS IN THE ABSENCE OF THE PRESIDENT. IN THE EVENT OF A VACANCY IN THE ...OFFICE OF PRESIDENT, HE SHALL SUCCEED TO THAT OFFICE FOR THE U AIMDER OF WS TEAM OF OFFICE. 6. DUTIES OF SECRETA YITREASUREA 1. TdE SECRETARY/TREASURER SHALL KEEP THE MINUTES OF ALL MEETINGS, 2,, SHALL RECEIVE ANY MONIES PAID TO THE COUNCIL OR TO THE ASSOCIA- ' TION AND PROVIDE FOR THEIR DEPOSIT AS INSTRUCTED BY TUR COUNCIL, 3. ALL CHECKS OR DEMANDS FOR HONE! OF THE ASSOCIATIO4 SHALL BE SIGNED BY THE PRESIDENT AND THE SEC,IE'IARY/TREASURER, OR SUCH PERSONS AS THE ASSOCIATIOY MAY FROH IT& TO TIME DESICNATE, L. SHALL KEEP ACIbUNTS OF ALT• RECEIPTS AND EXPENDITURES AND REPORT THESE TO EACH COUNCIL MEETING, Y11I, MEETINGS , A. ASSOCIATION MEETNGS SHALL BE HELD MONTHLY UNLESS OTHERWISE DESIGNATED BY THE ASSOCIATION. SUCH MEETINGS SHALL BE HELD FOR 711E PURPOSE OF AMENDING BYLAWS, ELECTING OFFICERS AND CONDVC71NO ANY OTHER BUSINESS WIIICH MAY BE DEEMED APPROPRIATE. B, WLI77EN NOTICE OF THE ASSOCIATION MEETiNO SHALL BE SERVED UPON OR ?AILED 10 EACH MEMBER AT LEAST SEVEN DAYS PRIOR TO A MEETING. C, SPECIAL MEETINGS, FOR ANY PURPOSES OR PURPOSE, SHALL BE CALLED BY THE PRF.SI- DENT AT THE WRITTEN REQUEST Of AT LEAST 10 PERCENT OF THE TOTAL MEMBERS OR AT Tilt WILL OF THE PRESIDENT, BUSINESS TKANSACTED AT ALL SPECIAL MEETINGS SHALL BE CONFINED YO nit OBJECTS AND BUSINESS TO BE TRANSACTED AS IN WRITTEN NOTICE OF SUCK SPECIAL MEETINO WHILIT SHALL ALSO STATE THE TIME AND PLACE OF SUCH SPECIAL MEETING. DUES AND BUDCET • A. THE ASSOCIATION BY MAJORITY VOTE, SHALL HAVE TUE POWER TO CREATE AND UT'ABLISH A WORKING CAPITOL FOR THE SUCCESSFUL OPERATION OF THE AFFAIRS 01 THIS ASSOCIATION AS FOLLOWS: 1. ESTABLISHMENT OF DUES FROM EACH MEMBER, 2. ALLOCATING ANY UNUSED SURPLUS FUNDS ON HAND FROM DUES PAID BY W HERS OR DONATIONS, 3. SOLICITATION OF FUNDS IN THE FORK OF DONATIONS. B. THE FISCAL YEAR OF THE ASSOCIATION SMALL BEGIN ON THE FIRST DAY OF OCTOBER IN EACH YEAR. C. SHE ANNUAL BUDGET, INCLUDING THE DUES STRUCTURE, FOR THE ASSOCIATION SHALL BE PREPARED, APPROVED, AND ADOPTED BY THE ASSOCIATION ON OR BEFORE THE LAST DAY OF SEPTEMBER OF EACH YEAR, AFTER A HEARING THEREON. D, NEW KEMERS MAY JOIN THE ASSOCIATION UPON A PRO-RATA PAYMENT OF DUES FOR THE REMAINING PORTION OF THE CURRENT FISCAL YEAR. to A FINANCIAL REPORT SHALL BE MADE AFTER THE CLOSE OF THE FISCAL TEAR AND BE MADE AVAILABLE TO ALL MEMBERS. WAIVER OF NOTICE ' A. WHENEVER ANY NOTICE IS REQUIRED TO BE GIVEN UNDER THE PROVISIONS OF THE BYLAWS TO ANY MEMBER, A WAIVER THEREOF IN WRITING SIGNED BY THE PERSONS ENTITLED TO SUCH NOTICE, WHETHER BEFORE OR AFTER THE TIME STATED THEREIN, SHALL BE DEEMED EQUIVALENT THERETO. !I. AMENDMENTS A. THESE BYLAWS MAY BE ALTERED, AMENDED OR ADDED TO BY WRITTEN BALLOTS FROM THE IfEMBERS, PROVIDED: 1. THAT NOTICE OF THE CHANCES SHALL CONTAIN A FULL STATEMENT OF THE PROPOSED AMENDMENT OR AMENDMENTS. 2. THE ENACTMENT OF THE AMENDMENT SHALL REQUIRE A MAJORITY VOTE OF THE ASSOCIATION AND SHALL NOT BE ADOPTED UNTIL RATIFIED BY THE GOVERNING BODIES OF TWO-THIRDS (2/3) OF THE MEMBER CITIES OF THE ASSOCIATION. R1 t. POWERS AND DUTIES OF THE COUNCIL OF DELEGATES A. THE COUNCIL OF DELEGATES HAVE THE POWER ANA DUTY TO EXPLORE AND DEFINE SUBJECTS AND/OR AREAS FOR COOPERATIVE OR JOINT MUNICIPAL ACTION AMONG THE ?EMBER CITIES. 3. IT SHALL DETERMINE THE MOST APPROPRIATE METHOD FOR ACCOMPLISHING SUCH ACTION AND RECOMMEND AIOPIIOH OF THAT METHOD TO EACH MEMBER CITY. IT SHALL PREPARE, OR CAUSE TO BE PREPARED, ANY ORDINANCE OR DOCUMENT NEC- ESSARY FOR ADOPTION BY THE MEMBER CITIES. C. IMO RECOMMENDATION OF THE COUNCIL SHALL BE EFFECTIVE UNLESS AND UNTIL OFFICIALLY ADOPTED BY THE GOVERNING BODIES OF THE HF?1BER CITIES. 5 ' AAffA pap 3 i uMRS RESOLUTION NO. 76-016 WHEREAS, there has been formed an organization called the Association of North Texas Cities for the purpose of providing a unifying framework for meeting local government problems and needs, and WHEREAS, a single municipality has very little impact on the Regional, State and National level, and WHEREAS, an effective organization of municipalities could be very effective. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS: SECTION 1. That the City of Farmers Branch does hereby join the Association of North Texas Cities. • SECTION 2. That the By-Laws of the Association of North Texas Cities, a copy of which is attached, are hereby ratified. DULY PASSED BY THE CITY COUNCIL OF THE CITY OF FARMERS BRANCII, TEXAS, on this the 2t day of Juno ~ --o 1976. , / f VI May r NVney AS TO FORM: ATTEST= 0 ' City ,§ecretary i IPnit :n7:y. r•.I~.I.fPA plLL'A','NL~H~.a~L~l.:~lRq'19.'~P',11 'LYJ ~!.!Y- 7'!17 Ernn.- D" I' Mb1.b+ FE. i SMS RESOLUTION NO. 76-017 WHEREAS, the City Council of the City of Farmers Branch, has joined the Association of North Texas Cities, and WHEREAS, the City of Farmers Branch has approved the By-Laws of the Association of North Texas Cities. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 'FARMERS BRANCH, TEXAS: SECTION 1. That Mayor George Grimmer is appointed as delegate I to the Association of North Texas Cities and that Mayor Pro rem Mitt 13inford is appointed as alternate member to the Association of North Texas Cities from the City of Farmers Branch. The terms of office es- tablished by the By-Laws to expire in may, 1977. DULY PASSED BY THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS on this the 21day of _ Tune„ . 1976. j APPR VED: Ma r ~ AP OVED AS TO FO'RM'S ATTEST: Do,, City Att Wney City ecrotary LI! J i O'MA t!1,hCdy •'J 1.:1 (:ITV 014&h1111:!li7J ll. df7: I 1 1'JJAI 0 L$1 u: 1+1,A1.1 11•,.,1JA I% 11f1! I lt,l.& 4!-IJ11.0 I c 1 f~ r SUPPLEMENT TO Pt,-APPLICATION FOR FEDERAL AS...STANCE DATED MAY, 1976 SUBMITTED BY CITY OF DENTON TEXAS TO IMPROVE DENTON MUNICIPAL AIRPORT DESCRIPTION OF WORK TO BE ACCOMPiSHEO ITEM OF WORK TOTAL SPONSORS FAA ESTIMATED DATE A ESTIMATED COST FUNDS FUNDS WORK WOULD REQUESTED COMMENCE NO. DESCRIPTION B C 0 E 1. Land Acquisition for South Clear Zone, North-South Runway 158,200 39,550 118,650 2. Land Acquisition for 800-Soot Extension, North End, North- South Runway, For North Clear Zone and for MALSR installation and Middle and Outer Marker Site 26%850 67,462.50 202, 387.50 3. Strengthen Existing 4150- foot North-South Runway and Taxiway System 506j000 126, 500 379,500 4. Extend North-South Runway and Taxiway 1050-feet to South. 491,000 122,750 368,250 5. Extend North-South Runway and Taxiway 800-feet to North. 343,000 85,750 7.57,250 - 6. Relocate Farm Road 1515 on North end, North-South Run. way, 84l000 210000 63, 000 7. Construct Medium Intensity Runway Lighting System on 6000-foot North-South Runway and Taxiway System and con. struct Rotating Deacon, Lighted Windcone and Seg- mented C.rclo 800000 20, 0d 600000 8. Relocate Existing VASI-2 and Convert to VAST-4. 250000 61250 18, 750 ' SUPPLEMENT TO Pk,APPLICATION FOR FEDERAL ASS1JTANCE DATED MAY, 1976 SUBMITTED BY CITY OF DENTON TEXAS TO IMPROVE DENTON MUNICIPAL AIRPORT DESCRIPTION OF WORK TO 8E ACCOMP:SHEO ITEM Or WORTS TOTAL SPONSOFes FAA ESTIMATED DATE A ESTIMATED COST FUNDS FUNDS WORK WOULD REQUESTED COMMENCE NO. DESCRIPTION B C D E 9. Construct Precision Instru- ment Marking on 6000-foot North-South Runway and Taxiway. 36,500 9,125 27,375 10. Strengthen and Extend Existing Aircraft Parking Apron, 1 a4, 000 46j000 138, 000 11. Clear Approach Areas on North and South End, 6000- foot North-South Runway. 20000 500 11500 12. Mark and light TP&L 139kv Power Transmission Line on South End, North-South Runway. 3, 500 875 2o625 13. Mark and light TP&L 60kv Power transmission line on North End, North-South Runway. 50000 10250 3, 750 - 14. Relocation Costs Z00000 50000 150-000 TOTALS 202080050 552, 012. 50 , 656, 037. 50 .JL ITEM I - LAND ACQUISITION FOR SOUTH CLEAR ZONE, NORTH-SOUTH RUNWAY Item 1 consists of acquiring approximately 45 acres of land, fee simple title, at the south end of the North-South Runway for clear zone. ESTIMATE OF COST Item Description Quantity Unit Unit Price Amount 1 Land for Clear Zone 45.2 Acres $3,500 $158,200 Total $158,200 ITEM 2 - LAND ACQUISITION FOR 800-FOOT EXTENSION, NORTH END, NORTH- SOUTH RUNWAY FOR NORTH CLEAR ZONE AND FOR MEDIUM APPROACH LIGHTING SYSTEM - RUNWAY END IDENTIFIER IGHTS (MALS-R) 4 Item 2 consists of a {quiring land as follows: 1. Approximately 10. 24 acres of land for an 800-foot extension on the north end of the North-South Runway. 2. Approximately 64.26 acres of land for a clear zone on the north end of the North-South Runway. 3. Approximately 3.4 acres of land for the installation of a Medium Intensity Approach Lighting System with Runway End Identifier Lights (MATS-R). -1- 1 4. Approximately 0. 1 acres of land for middle marker site located 2, 000 feet to 6,000 feet from the runway threshold and an outer marker site located 4 to 7 miles from the runway threshold. ESTIMATE OF COST I Item Description Quantit Unit Unit Price Amount 1 Land for 800' ExL°nsion 10.24 AC $3,500 $ 35p840 2 Land for North Clear Zone 64.26 AC 3,500 224,910 3 Land for MALSR 2.4 AC 3,500 8,400 4 Land for Middle Marker 0.1 AC 3,500 350 5 Land for Outer Marker 0.1 AC 3, 500 350 Total $269,850 ITEM 3 - STRENGTHEN EXISTING 4150-FOOT NORTH-SOUTH RUNWAY AND TAXI- WAY SYSTEM Item 3 consists of constructing abituminous pavement overlay of the existivg 41501 x 150' portland cement concrete North .South Runway and Taxiway. A study of potential aviation activity at Denton Airport in- dicates a need to improve the facilities to accommodate business jet aircraft. Included in the required improvements is strengthening the existing runway and taxiway pavement to accommodate aircraft having a maximum gross weight of 60, 000 pounds. Investigations have determined that the existing concrete pavementvaries in thickness from 5. 5 inches to 7 inches, and that the flexural and compressive strengths are high. -2- Although plate bearing tests on the existing runway and taxiway pavement' were not within the scope of the preliminary investigation, other tests indicate that tha modulus of subgrade reaction (K) of the subgrade beneath the existing pavement is in the range of 90 pounds per cubic inch. A preliminary analysis of the overlay thickness required for the runway and taxiway is as follo•.vs: r Design Aircraft Weight: 60, 000 pounds on Dual Gear Traffic Level: 1200 Annual Departures Approximate Modulus of Subgrade Reaction (K) = 90 PCI Working Stress = Flexural Strength = 650 - 372 psi Safety Factor 175 Existing Thickness (he) = 6 inches Overlay Thickness (t) = 2. 5 (Fn - Cb he) Where F = Factor which controls cracking of base pavement. h = Single Thickness of rigid pavement required for design conditions. Cb = Condition Factor for base pavement. He = Thickness of existing rigid pavement in inches. Based on a K value of 90 and an annual traffic of 1200 departures the F value is 0. 90. The Condition Factor (Cb) has been judged to be 1. 0. _3_ For Design Conditions: Working Stress = 372 K = 90 A/C Wt = 60, 000 h = 8. 4 inches (Fig 3-11 AC 150/5320/6B) Therefore: t =2.5 (0.9x8.4 - 1.0x6) t = 3. 71 USE 4" BUdminw.-s Overlay on N -S'. Runway & Taxiway Cross sections of the existing 4150' x 150' N IS Runway were used to establish preliminary grades and cross slopes on the proposed surface of the bituminous overlay pavement. Quantities of bituminous overlay pavement used in the prelimin->ry estimate were calculated from the cross sections. ESTIMATE OF COST Item Description Quantity Unit Unit Price Amount 1 Rout exist redwood expansion joints 80 300 L. F. $ 0.50 $ 40150.00 2 Reseal expansion joints 8,300 L. F. 0.45 3,735.00 3 Rout existing longitudinal construction joints 190 700 L. F. 0.50 9,850.00 4 Reseal longitudinal con- struction joints 26,250 L. F. 0.45 11, 812.50 5 Clean transverse joints L L. S. 5$000 5,000.00 6 Tack Coat 100000 Gals. 0.60 6, 000.00 7 Hot Mix Asphaltic Concrete 21,150 Tons 18.00 380, 700.00 Subtotal $421,247.50 Contingencies and Engineering 84o752.50 Total $506, 000.00 .4- ~ k~ . ~ • '7 . EASEMENT THE STATE OF TEXAS X DEfD RECORDS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON X 14713 That JOE A. BELEW AND ERNEST F. SIMPSON of Denton County, Texas, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration in hand paid by the City of Denton, receipt of which is hereby acknowledged, do by these presents grant, bargain, sell and convey unto the City of Denton, Texas, the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following describ3d property owned by them and being situated in the County of Denton, State of Texas and more particularly described as follows: All that certain lot, tract or parcel of land lyit, being situated in the City and County of Denton, State of and being part of the Wm. Loving Survey, Abstract No, 759, eing part of a tract of land as conveyed from Jimmy L. Madewo, It Edwin L. Owens, J. Glen Savage and Joe Belew by deed dated November 5, 1974, and recorded in Volume 726, Page 543 of the Deed Records of Denton County, Texas, and more particularly des- cribed as follows: FIRST TRACT BEGINNING at a point in the south boundary line of said tract, same being the north right of way line of Highland Street, said point of beginning being 80.25 feet south 890 52' west of the southeast corner of said tract, same being the intersection of the north right of way line of Highland Street and the west right of way line of Center Street; THENCE south 890 52' west along the south boundary line of said tract, same being the north right of way line of Highland Street, a distance of 16 feet to a point for a corner; THENCE north 00 08' west a distance of 46 feet to a point for a corner; THENCE north 890 52' east a distance of 16 feet to a point for a corner; THENCE south 00 08' east a distance of 46 feet to the place of beginning and containing 736.OO,square, feet of land, more or less. SECOND TRACT BEGINNING at a point in the south boundary line of said tract, same being the north right of way line of highland Street, said point of beginning being 343 feet south 890 52' west of the south- east corner of said tract, same being the intersection of the north right of way line of Highland Street and the west right of way line of Center Street= THENCE south 896 52' west along the south boundary line of said tract, same being the north right of way line of Highland Street a &istance of 16 feet to a point for a corner; i VOL 797 PAGE 637 VOL 797 PAGE 638 THENCE north 0° 08" west a distance of 166.8 feet to a point for a corner; THENCE north 890 52' east a distance of 60 feet to a point for a corner; THENCE north 0° 08' west a distance of 13 feet to a point for a corner; THENCE north 890 52' east a distance of 16 feet to a point for a corner; THENCE south 01. 08' east a distance of 13 feet to a point for a corner; THENCE north 890 52' east a distance of 176.2 feet to a point for a corner; THENCE north 00 08' west a distance of 13 feet to a point for a corner; THENCE north 890 52' east a distance of 16 feet to a point for a corner; THENCE south 00 08' east a distance of 13 feet to a point for a corner; THENCE north 890 52' east a distanceof 74.8 feet to a point for a corner, said point being a distance of 16 feet west of the east boundary line of said tract, same being the west right of way line of Center Street; THENCE south 00 08' east a distance of 16 feet to a point for a corner; THENCE south 890 52' west a distance of 327 feet to a point for a corner; THENCE south 00 08' east a distance of 108.8 feet to a point for a corner; THENCE north 890 52' east a distance of 42 feet to a point for a corner; THENCE south 00 08' east a distance of 16 feet to a point for a corner; THENCE south 890 52' west a distance of 42 feet to a point for a corner; THENCE south 00 08' east a distance of 26 feet to the place of be- ginning and containing 8,988.8 square feet of land, more or less. And it is further agreed that the said City of Denton, Texas in consideration of the benefits above set out, will remove from the property above described, such fences, buildings and other obstructions as may now be found upon said property. For the purpose of constructing, installing, repairing and perpetually maintaining public utilities, in, alc,.,g, upon and across said premises, with the right and privilege at all times of the grantee herein, :his or its agents, employees, workmen and representatives having ingresF, egress, and regress in, along, upon and across said premises for the purpose of making additions to, improvements on and repairs to the said public electric util- ities or any part thereof. TO HAVE AND TO HOLD unto the said City of Denton as aforesaid for the purposes aforesaid the premises above described. WITNESS our hand this the day of August, A. D. 1976. &Zz~_ JOE A. BE E LE na o ERNEST F. MPSON THE STATE OF TEXAS X COUNTY OF DENTON X BEFORE ME, the undersigned authority in and for said County, Texas, on this day personally appeared JOE A. BELEW and ERNEST F. SIMPSON, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they exe- cuted the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This the day of August, A. D. 1976. i .tit0i3!3p WARY PUBLIC IN AND FOR 1., DENTON COUNTY, TEXAS , 7 My Commission expires June 1, 1977. ~ i !VOL 7G7 Put 639 , t vot V NacE 640 k, n~ 0 6 tt i W H I ^ ` v H s 2 1 a FfAgY 0 f11L'_ C•~J. r~~ ~ i 000:1 NOW rum - k O 1.1 • i ' ~ r 1 ` `r 4 ,a ~'.,~d"~i"I..E" I~,~,: ad ."'i'lf,. <i'i+r.'•~^~ it~ry, 1" tr ,'s 'In .~1kY7f^ ~I. Ail r P I J i r- - t ~ r y ka ~ .aY , 4 Y } J e MEN r ti ORDINANCE NO. 76-39 AN ORDINANCE by the City Council of the City of Denton relating, to the relationship of the City of Denton with the Texas Municipal Power Agency; approving, the construction of an electric generating, facility by the Agency, to be known as Bryan Lignite Number One, as well as certain System Development and Re- liability Expenditures and Development Pro- jects and the issuance of bonds by the said Agency for such purposes; approving a Power Sales Contract and providing for its exe- cution on behalf of this City; enacting other provisions incident and related to the purp,ise of the ordinance, and repeal- ing conflicting ordinances or resolutions, and declaring an emergency. 11L'IREAS, this governing body has received the request of the Board of Directors of the Texas Municipal Power Agency that this governing body approve (1) the construction of an electric generating, facility by the Ay,ency, to be known as Bryan Lignite Number One, anti (2) certain System Development ;end Reliability Expenditures, and (3) certain Development Projects, and (4) a Power Sales Contract; and WHEREAS, thi:, governing body has and does hereby deter- mine that it is in the best interest for the City and its inhabitants to approve the same and the issuance of bonds by the Agency to provide a portion of the funds which will be required; T>w, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DENTON. TEXAS: SECTION l: That attached hereto (and made a part hereof Tor M purposes) is a copy of the Resolution adopted by the Board of Directors of the Texas Municipal Power Agency, which, among other things, descrilcs and approves Bryan Lii•,nite Number one as a Project, certain System Develop- ment and Reliability Expenditures, Development Proj., and a Power Sales Contract. SEC'T'ION 2: That this. governing body' hereby approves: (a) Bryan Lignite Number One as a Project; and (b) The System Development and Reliability Expenditures described in the attached Resolution; and The DeveZ!pment Projects described in (c) the attached Resolution, and (d) the issuance of Bonds by the Agency in the principal amount of $5u,U00,000. Such approval is given irrespective of whether the ultimate the enueprojects Sfinanced by and ownership int.,est of the Agency Texas Municipal Power Agency the Texas Municipal Power Agency Revenue Bonds, Series 1976, is 100% or 60% or some percentage between 60% and 1001;, it being; ttnderstuod that no entity other than the Agency, Brazos Electric Power Cooperative, Inc., will initially have an owmership interest. As gito keep gThis encyC with Brazos proceed, the Agency is requested advised of progress. SFrTTON 3: This governing body reserves consideration of San ;;iguer-Lignite Number One, and the save is not, cat this time,'approved as a Project. SECTION 4: That the form of bond resolution (being designat:,3-as "Proof of 8-23-76") which embodies the suf!.gested terms znd conditions ',ender which $50,000,000 in principal amount of the bonds of the Agency shall be issued (such bonds to be dated September 1, 1976, with interest payable semiannually thereafter on March 1 and September 1 of each year) is hereby approved. It is un.lerstood that certain final details of thr bonds will be inserted and other blanks completed, but no :..obstantial change is to be made in Article III through Article VI nor shall any change be made which would cause the Bond Resolution to be contrary to the Power Sales Contract. SECTION 5: That the Power Sales Contract by and between the Texas~gunieipal Power Agency and this City (the same being identical contracts between said Agency and the Cities of Bryan Denton, Garland, and Greenville), being attached hereto, is hereby approved. The Mayor of this City is hereby authorized to execiite said as the act and deed of this City and its governing body. SEC'T'ION 6: All ordinances or other actions heretofore taken-wFi c are it may be contrary to the ,provisions hereof or the provisions of the Power Sales Contract authorized to be executed are hereby repealed. SECTION 7: That the public importance of this measure and tfid-fact Lhat it is to the best interest of the City to approve certain documents and the execution of a Power Sales Contract with the Texas Municipal Poorer Agetrcy at the earliest possible time in order that the joint project of the Cities of BryanI Denton, Garland and Greenville t(to be accomplished through said Agency) may proceed, i ~ • , I 1 emergency and urgent public necessity requiring that this ordinance take effect and be in full force from and after its passage, and it is so ordained. PASSED AND APPROVED this the cZT day of August, 1976. i coo CZ^~+.Oe _ a- Mayor, City- of Dentogi Texas ATTEST: City Secrye ary, City o Denton, Texas (City Seal) I I 1 ■ i 1 E X H I B I T A RESOLUTION by the Board of Directors of the Texas Municipal Power Agency relating to the approval of Bryan Lignite Number One as a Project; approving certain expenses as System Development and Reliability Expenses and Development Projects; making provision for notification of the adoption of this resrllution to the governing bodies of the Cities of Bryan, Denton, Garland, and Greenville; approving a Poser Sales Contract and providing for its execution; resolving other matters incident And related to the purpose of this resolution; repealing a certain resolution heretofore adopted; and providing an effective date. WHEREAS, this governing body has reviewed the necessity for the immediate institution of a program to acquire a new electric generating unit so as to provide the electric power and energy which will be needed to supply the needs of the Cities of Bryan, Denton, Garland and Greenville; and WHER`?AS, the Brazos Electric Cooperative, Inc. (hereafter called Brazos) has heretofore acquired a 3% undivided ownership interest in the project financed with the proceeds of the "Texas Municipal Power Agency Revenue Bonds, Series 1975", and for a two year period after the retirement of such bonds may give notice of its intent to increase its ownership up to 40%; and VJEREAS, the Board of Directors of Brazos has heretofore adopted a resolution (on the 28th day of July, 1976) indicating a possible desire to adjust its percentage ownership in the previous and proposed projects, a copy of such resolution being attached hereto; and WHEREAS, this board has, in the course of discussions and negotiations, been assured that Brszrd is willing to give further consideration to :he Agencq's acquisition of an ownership interest in or a firm right to purchase power and energy from the San Miguel Uric One lent (up to 25%, which would be one-half of the interest of Brazos which is now being developed by Brazos in cooperation with the South Texas Electric Cooperative, Inc.; and WHEREAS, San Miguel Unit Number One is presently scheduled to be operative in 1980 at approximately 40% of capacity and in 1981 at approximately 80% of capacity, such unit being designed to provide 400 1fd; and WHEREAS, the load studies of the electric systems of Brazos and the Cities completed by the Agency indicate there is need for two generating units of the capacity of San Miguel Number One and Brazos Lignite Number One to be placed in service in order to meet the projected load requirements of the Cities and Brazos, but that it would not be necessary for Brazos to increase its ownership interest (and therefore the right to take power and energy in direct proportion to its percentage of ownership in Bryan Lignite Number One) unless the Agency acquires an ownership interest in or firm right to power and energy from San Miguel Unit Number One, and that the foregoing is also the current position of Brazos in the negotiations; and WHEREAS, it appears to this Board that consideration should be given to the suggestion of exploring the possibility of making both the San Miguel Unit Number One and Bryan Lignite Number One joint Projects of the Agency and Brazos; and WHEREAS, at the time of the prior approval of Bryan Lignite Number One by this Board it was contemplated by this Board that the undivided ownership interest of Brazos would be 1% and the Agency 99%, and in the light of the foregoing it is proper for this Board to reconsider Bryan Lignite Number One as a Project; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TEXAS MUNICIPAL P014ER AGENCY: SECTION 1: That all of the recitals contained in the preamble herd are found to be true and are adopted as findings of fact by this Board. The resolution of the Board of Directors of Brazos (mentioned in the preamble) shall be attached to this resolution and is made a part hereof for all purposes. SECTION 2: That Bryan Lignite Number One is hereby approved as a Project of the Texas Municipal Power Agency, such Project being described as follows: 1 An electric generating plant (including land), steam boiler; steam turbine, electric generator; cooling facilities; associated transmission, transformation and switching facilities so as to connect the plant to existing or proposed facilities; a lignit& mine; railroad siding; shops; warehouses; construction camp; office; dwellings and other structures, fixtures, equipment, supplies or other items which this Board finds are needed or useful in connection with the construction, maintenance, and operation of the plant (and providing fuel for the same) so the electric generating plant shall be placed in service as an operating utility. SECTION 3: It is anticipated that such initial generating plant will nu'6_ea steam turbine acting as the prime mover of an electric generator of approximately 400,000 kilowatts (net). The steam boiler, steam turbine and electric generator will be of the outdoor type with all other equipment relating to plant services and control enclosed in appropriate buildings. It is planned that plant cooling facilities are to be in the form of a pond supplied from underground water supply or the water purchased from an existing water-storing entity in the area for make-up water or by impounded water. The strip mining operation includes equipment for excavation and transportation and the Project includes communication equipment; all necessary permits, licenses; developmental rights; easements, right-of-way; approvals certificates of state and federal agencies where applicable; real estate and interest in properties where necessary. That the System Development and Reliability Expenditures include: I A r i J (a) Olinger - Greenville Transmission Line - the estimated balance required to provide survey, right of way, line construction, interconnection and engineering for a new 20 mile 138 KV transmission line from Greenville to Olinger. (b) Bryan Capacitors Bank - to prevent Bryan from experiencing severe voltage drop during certain pooling contingencies, 21.6 MVAR of 69 KV capacitor banks are to be placed in service. (c) Bryan interconnection - a 20 mile 138 KV line from Hearne to Bryan to provide transmission interconnection and reliable back up for the new 100 MW Dansby unit scheduled for completion in 1978. (d) Garland 345 MVA line (right of way) - to deliver power from Comanche Peak and Bryan Lignite Number One to Garland and Greenville, a 345 KV line, two double circuit 138 KV lines, and a 500 MVA 345/138 KV autotransformer will be required. A 345 KV substation is to be located in Northeast Garland. Right of way is to be acquired at this time since the completion date is now scheduled as June, 1980. (e) Denton interconnection - improvement program to provide firm transmission supply to over 231 MW of lead in Denton and Roanoke area, including the conversion )f portions ;f an existing 69 KV transmission system to 138 KV operation .ind two new 138 KV interconnections. Rights of way and substation site purchases are to proceed immediately. (f) Fuel exploration and acquisition program - the search for fuel for projects other than Bryan Lignite Number One. (g) Microwave Communication - continuation of the development of a communication system begun with the initial financing of the Agency. (h) Economic Dispatch Studies - continuation of studies (begun with proceeds of initial financing by the Agency) operating the most efficient and economical generating units. ty ' SECTION 4: That it is proposed that bonds of the Agency be issued inert a-principal amount of $50,000,000, that the bond proceeds be expended for the purposes shown below: I. Application of Proceeds (Estimated) Construction Fund $27,050,855 Capitalized Interest (2 years at 7-1/2%) 7,500,000 Capitalized Reserve 4,074,145 Legal, Fiscal 750,000 Refunding of ries 1975 Bonds 10 625.2.000 TOTAL, *Plus accrued, unpaid interest thereon. . II. Application of Construction Fund A. Projects - $22,664,000 1. Bryan Lignite B. System Development & Reliability $3,386,885 1. Transmission a. Greenville/Olinger Line b. Bryan Capacitor Bank c. Bryan Interconnection d. Garland 345 MVA Line (right of way) e. Denton Interconnection 2. Other a. Fuel exploration and acquisition Program b. Microwaive Communicatioi.s System c. Economic Dispatch System C. Development Protects - $1,OOO,GO10 1 - o lTage Sendic Pumped Storage 2. Miscellaneous Preliminary Projects That the estimated expenditures are subject to adjustment and finalization as preliminary estimates at such time as the bonds of the Agency are sold and definative construction bids are received. A tentative budget shall be prepared when bonds of the Agency are sold and then revised as construction bids are received. SECTION 5: Approval is given to Bryan Lignite Number One as a Project, and the System Development and Reliability Expenditures and Development Projects are also approved, irrespective of whether the ultimate ownership interest of the same by the Agency is 100% or 60% or some Percentage between 60% and 100%. The Executive Director is authorized to cause representatives of the Agency to work with representatives of Brazos to determine the amount of ownership interest that Brazos is to acquire. SECTION 6: That a copy of the preliminary engineering report of R. W. Beck and Associates has heretofore been supplied to each of the Cities of Bryan, Denton, Garland and Greenville and to Brazos. A copy of this resolution shall also be transmitted to each of said Cities with the request that the Project (B-yan Lignite Number One), System Development and Reliability Expendi- tures and the Development Project be approved by them. Neither the Agency nor Brazos have approved (at this time) the partici- pation of the Agency in the San Miguel Number One Unit, and the Agency recognizes the same would be submitted to the Cities for consideration as a Project prior to the time a firm agreement with Brazos is possible, assuming determinations are made that the two units should be joint Projects of the Agency and Brazos. A copy of this resolution shall also be forwarded to the Exectuive Vice-President and General Manager of Brazos as an indication of the intention of this Board to consider the matters suggested in the attached resolution and endeavor to reach a mutually satisfactory agreement. SECTION 7: That the Power Sales Contract by and between this ggency and each of the Cities of Bryan, Denton, Garland and Greenville, Texas, the same being attached here- to and made a part of this resolution for all purposes, is hereby approved. The President of the Board of Directors is hereby authorized and empowered to execute the said contract for and on behalf of Texas Municipal Power Agency and as the act and deed of said Agency and this Board of Directors. SECTION 8: The resolution of this Board adopted on the 15th a~f-7uly, 1976, being entitled as follows: "A RESOLUTION by the Board of Directors of the Texas Municipal Power Agency relating to the approval of Bryan Lignite Number One as a Project; approving certain expenses as System Development and Reliability Expenses and DP•;elepment Projects; making provision for notificrtion of the adoption of this resolution to the governing bodies of the Cities of Bryan, Denton, Garland, and Greenville; resolving other matters incident and related to the purpose of this resolution." is hereby repealed. SECTION 9: This resolution shall be effective upon adoption. PASSED AND APPROVED this 26th day of August, 1976. /s/ C. E. Duckworth res ent, oar o rectors Texas Municipal Power Agency ATTEST: /s/ Jim White Secretary, oar o rectors Texas Municipal Power Agency CERTIFIED CbPY OF REOLUTION AUTHORIZING PARTICIPATION IN TMPA PROJECTS On motion by John Fought and seconded by Bill Parker s the following resolution was adopted: WHEREAS, the Brazos Electric Power Cooperative, inc. on September 15, 1975 entered into a participation agreement with the Texas Municipol Power Agency for a minimum of 3% participation in joint TMPA - Brazos projects with an option for Brazos to participate up to 40°1° and with Brazos guaranteeing 25°n' of the $10 million loon procured by TMPA under the dote of October 30, 1975; and WHEREAS, It was the intent of TMPA to obtain additional loan funds within a 12monih period of time for further development of the projects initiated with the $10 m111Ton loan and to repay she $10 million loan with the proceeds of such new loon; and WHEREAS, TMPA in order to accomplish such objective must act before September 15, 1976 and has informed Brazos that its legal counsel reports that unless Brazos participates in + such new loan at least to the extent of 10% TMPA will be unable to sell or interchange with Brazos any portion of a generation project which may be developed from such new loon; and WHEREAS, Brazos is desirous of maintaining its position of flexibility to pcrticipote in projects Brazos is developing with TMPA, more specifically the ITgnTte project in the vicinity of Bryon, Texas; and WHEREAS, such flexibility is Imperative in the light of current ne,7otiotions with TMPA for its participotion in the Brazos - South Texas Electric Cooperative Sor Miguel project; NOW, THEP.EFORE, BE IT RESOLVED that Ross A. Segrest, Execut':ve Vice President end General hiarvsger of the Brazos Electric Power Cooperative, inc. F,e and hereby is authorized to enter into an agreement with the Texas Municipal Power Agency which guarantees portfcipotian by Brazos to the extent of 1`>0 of projects des eloped under the $50 million bond issue proposed by TMPA and with the provision that Brazos can participote with TMPA in the ownership of generation and transmission projects with such minimum owner- ship being 1% but with an option for Brazos to acquire up to 40% with such ogreement being subject to tho approval of the Brazos Power Committee and the Rurol Electrification Administration; and BE IT FURTHER RESOLVED that the above described agreement will be substituted for and replace the current 3°io participation ogreement with TMPA and relieve Brazos of the obligation for guaronfeaing any percentogo of the $10 million loon heretofore procured by TMPA or the $50 million loan proposed to be procured by TMPA with the undentonding that such funds which Brazos has already paid under the 3% porticipotion agreement be applied toward its obligation under the 1%participation agreement. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I, Robert H. Bunting, Secretory of the Brazos Electric Power Cooperative, Inc, do hereby certify that the above and foregoing is a true and correct copy of a resolution duly passed at a specfat meeting of the Board of Directors of said Cooperative, held at Waco, Texas on the 2341 dap of July, A.D. 1976. 3Tv2n under my hand and teal of said Cooperative, this the 28th day of July 1976. z1. Robert Bunting, "retary r l . POWER SALES CONTRACT BETWEEN TEXAS MUNICIPAL POWER AGENCY AND CITY OF BRYAN, TEXAS CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE. TEXAS • Ditcd: Scptcmbcr 1, 1976 k y ~ J TABLE OF CONTENTS Pogo Section 1: Term of Contract. . 1 Secd.,n 2: Definitions. 1 Section 3: Sale and Purchase of Power and Energy 3 Section 4: Performance of Certain Services. 4 Section 5: Delivery of Power and Energy. 5 Section 6: Annual System Budget. . , 5 Section 7: Rates and Charges... 6 Section 8: Meter Readings and Payment of Bills. . 7 Section 9: Meter Testing and BiIling Adjustment . 7 Section 10: Payments to Constitute Operating Expenses of City System. . . 7 Section 11: City Rate Covenant 7 Section 12: Covenants of the Agency 7 Section 13: Proje:t Approval and Rights of Cities when a Project is not Approved, 8 Section 14: Debt Service Guarantee; Operating and Maintenance Expenses 10 Section 15: Remedies in Event of Default . 11 Section 16: Recreation of Agency 12 Section 17: Payment Due Dates and Delinquency 12 Section 18: Power Sales Contracts . , . 13 Section 19: Continuation of Services . 13 Section 20: City Not to Sell its Electric System 13 Section 21: Assignment of Rights of a City.. . . 13 Section 22: Dissolution of the Agency 13 Section 23: Force Majeure . 13 Section 24: Insurance. I4 Section 15: Reports . 14 Section 26: Records and Accounts. . . 14 Section 27: Access 14 Section 28: Governmental Rates, Regulations and Laws. 14 Section 19: Easements 15 Section 30: Cancellation of Prior Contract 15 Section 31: Notices . i5 Section 32: Severability . IS Section 33: Contracts to be Separate . 1s Exhibit A 17 Schedule B 19 0) POWER SALES CONTRACT BETWEEN TEXAS MUNICIPAL POWER AGENCY AND CITY OF BRYAN, TEXAS CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS This Contract, made and entered into as of the 1st day of September, 1976, by and between the Texas Municipal Power Agency, a municipal corporation and political subdivision of the State of Texas, and the City of Bryan, the City of Denton, the Pity of Garland, and the City of Greenville, Texas each of which cities is a municipal corporation of the State of Texas and a home rule city (herein collectively called "Cities" or individually called "City"). WITNESSETH: WHEREAS, each City has need for an economical, reliable source of Power and Energy to meet the growing demands of its customers and has determined to purchase such Power and Energy from the Agency; and WHEREAS, the Agency proposes to construct or acquire electric generating plants and transmission lines or to acquire ownership interests therein, and to purchase or otherwise obtain Power and Energy for the purpose of supplying Power and Energy to each City and others; and WHEREAS, each City desires to purchase, and the Agency desires to sell Power and Energy on the terns and conditions herein set forth; Now, THEREFORE, in cons;deration of the mutual undertakings herein contained, the Agency and each City agree as follows: Section It Term of Contract. This Contract shall become effective upon the delivery to the Agency of the proceeds of the initial series of Bonds. Subject to the provisions of Sections 16 and 19 hereof, this Contract shall remain in effect for a period of thirty-five (35) years from the date hereof or until such time as all of the Debts of the Agency shall have been paid (or provision for such payment shall have been made), whichever is later. Section 2. Definitions. As used herein: (a) "Act' shall mean Chapter 166, Acts of the 63rd Legislature, Regular Session, 1973, as amended by Chapter 143, Acts of the 64th Legislature, Regular Session, 1975, and all 1-ws amendatory thereof or supplemental thereto. (b) "Agency" shall mean the Texas Municipal Pov,.r Agency as created and established (pursuant to the Act) by concurrent ordinances adopted by the Poverning bodies of the Cities, or its successor. (e) "Annual System Costs" shall mean, with respect to a Contract Year, and to the extent not paid or to be paid from the proceeds of Bonds or other funds legally available to the Agency, all costs and expenses of the Agency that are paid or incurred during such Contract Year and are allocable to the System, including, but not limited to the payment of the Operating and Maintenance Expenses of Au w, ST 1 1 i I}yl f' H ~-1 o r y a fry r c-~ n n rn c rn ~ ~ ro ' c'n n H ~ y r -n ~n ~ ~ M ~ f V rf Denton I S D School District (DISTRICT) and City of Denton STATE OF TEXAS COUNTY OF AFFIDAVIT OF SWORN TESTIMONY: I~ S P46-" A do solemnly swear or affirm that the testimony I shall Dresent to this 19]4 Board of Equalization is true and correct to the best of my knowledge and belief. SWORN or AFFIR`4ED to on this day of 19:9 by ew,~ s Witness: 1 p.~. i , ter t f 22 1. ,'xk. ..1 1 z~ ~ V c fl- t CITY OF DENTON Minutes of thi Board of Equalization for Year 1976 The Board of Equalization convEned August 2, 1976 at 9:30 A. M. in the Tax Office of the Denton Independent School District, 215-B East Oak Street, Denton, Texas, Present: Board members, Raymond Pitta, George Bertine, Robert 9peake, 'Tax Assessor-Collector L. Ludwig, of the Denton Independent School District and Tax Assessor-Collector Hugh Mixon, of the City of Denton, The Ogth of Office was given the Board members, Raymond Pitta, was elected Chairman of the Huard and was informed that due notices of the Board of Equalization meetings had been given and proper publication had been made, Chairman Pitts, stated that the Board was now ready for business; whereupon the Board proceeded with the following Protests: Monday, August 2, 1976 9:30 A, M. City Value Set Name Account No. Rendered Assessed By Board 40% 40% 40% Charles Davis for Denton Concrete 9030-00600 1460000. 440000, Cliff Reding for Reding Advertising 9180-01303 1,300, 200. r Jerry 2eff for Skillerns #6044 9190-03700 21,710. 609000, 60,000. Skillerns 06057 9190-03703 16,920. 520000, 529000, Zale's Corp. 9260-00100 13,710. 320000, 250000. R. C. Storrie for Travelstead Auto Parts 9200-03600 17,000. '.70000. S. Be Frost for Frost Oro., Car Wash & Service Station 9050-02800 81000. 40160. (Recess 11:40 to 1:30) Terminex International by letter 9200-01115 160. 160. Bill Utter for Bill Utter Ford 9210-01600 110,710, 1109710. (lease care included in this account) Be W. Conn for One Hour Martinizing 9150-00400 39000. 20000, Kelso Tractor Co. 9090-00600 4 49800. 30200. (service station at N. locust & Univ. Dr.) United Presbyterian Church USA NO ACTION Jim Normile for Barney's Auto 9010-01300 40120. 2,600. W. C. Orr, Homer Bly, Mike Grandey & Don Wright for First Denton County Nat'l 9050-00801 4700168. 1,108,040. 581,370, First State Bank 9050-01000 7960590. 1,4960590, 8960590, University State Bank 9210-01200 20528981 223,320. 2029800. Western Nat'l Bank 9230-01610 494,450. 494,4SO, 4940450, Hike Rummell for Shell Gasoline 9180-03700 2490200 13,720, Mr. Delaney for Brunswick Corp. by letter 9010-05800 240640. 340000, 280000, (Board Recessed Until Tuesday, August 3rd) Tuesday, August 3, 1976 9:30 A. Me M. C. Burch School Acct, Allan L. Saxinger 2853-02200 18,670, 160020, Ruth Davis Jones School Acct, Mr, Collier for Lone Star Gas Co. & Ens6vch Corp. Adjustment on o^hool Tax (Tuesday, Aug,ist 3, 1976 cont'd) Citv Value Set Name Account No. Rendered AsseAsed Board 40% 40% 40% Yamaha of Denton 9250-01005 33,000, 10,170. Action Imports 9000-00305 63,000. 500000. C, M. Jackson School Acct, James Magill Sports Center 9120-00300 210360, 21,360. Jim Swinford for Texaco Station 9190-08300 30000, 10200. (Recessed Until 1:30 P. M.) William M. Dean School Acct. Sonny Baldridge for Alex Dickie Estate School Acct. Ben Ivey for Ben Ivey 011 Co. 9100-00500 100100. 10,100. Ben Ivey Arco Station 9100-00502 30125. 19250. Richard Swerdlin School Acct. Allis Miller School Acct, Tom Srokosz, Jr. for Denton Monogram 9190-05600 30087. 3,(80. R, R, Human 6000-01000 13,580. 13i580. Justus Corner Service Sta. School Acct. (4:30 P. M. Board Recessed Until Wednesday, August 4th) Wednesday, August 4, 1976 9:30 A. is. 00 As Bupp School Acct, Michael S. Cox & T. Foster for Oak Place Ltd. 0430-00301 28,040. 270700. If to 11 0430-00400 4060520. 3990950. Allis Miller for Laura Mae Murn 3210-00400 213430. 100770. It It to 3220-00200 36,420. 180210. Sonny Baldridge for Alex Dickie Jr. 3730-00700 210630. 18,290. Robert H. Jones 7510-02300 79160, 2,390. to 11 If 7510-02400 30250. 1,400. !::,thleen Floyd School Acct. Harold E, Pierce IMD 9160-02300 4,000. 200001 H. E, Paterson School Acct. (4:30 P. V, Board Recessed Until Thursday, August Sth) Thursday, August 5, 1976 9:30 A. M. City Value Set Name Account No. Rendered Assessed Board 40% 40% 40% Rudy Menn for Victor Equip. Co. 9220-00300 188,620, 20619,360. 21619,360. Bill Gagen for Turbo Refrigerating Co. 9200-03900 57,048. 3249710. 324,710. (Recessed Until 1:30 P. M.) Mr. Jim Collier for Ernserch Corp. 9110-02200 6440170. 966,360. 966,350. Bob Nobles for Denton Osteopathic Hos. 9030-04800 59,040. 40,900. (4:30 P. M. Board Recessed Until Friday August 6th) Friday, August 6, 1976 9:30 A. M. Sherley Bell & L. L. Allison for J. B. Hardeman 8520-00500 7711260. 770260. Hendley's Drees Shop 9070-01700 40960, 491.60. 11 " If 9070-01701 21240. 840. Barnett Jeeelers 9010-01205 200000. 12,440. (4:30 P. M. Board Recessed Until Wednesday, August 11th) Wednesday, August 11, 1976 9:30 A. M. Heinen Wilson for Wanda Massey School Acct. Joe Batcha for Dre. Patterson & Dueling 9030-06205 10,000, 30200. Grant Messenger by telephone School Acct. Jimmy Daniels by telephone 3250-00900 11,990. 11,410. James B. Francis School Acct. ` 3 „ The Board --onsidered the foregoing items. Motion was made and seconded that the values be approved. The motion carried. It was moved, seconded and carried that the schedule of values are fair and equitable and assessments made by the Assessor and Collector of Taxes are hereby approved. It was further moved, seconded and carried, that all protests not herein expressly enumerated for persons who either appeared before the Board of Equalization, or filed protests and failed to appear, are hereby expressly overruled and assessments are made by the Assessor and Collector are in all things approved. It was further moved, seconded and carried, that the valuations placed against property of persons who were given notice of such valuation and who failed to appear before the Board of Equalization are approved. The Board of Equalization, having reviewed the protests and the assessment rolls covering taxable property located within the City of Denton and the Denton Independent School District, in their entirety and after duly considering the same, are of the opinion that the assessment rolls as corrected should be in all things approved, There being no further business before the Board, their labors having been completed; it was moved, seconded and carried that the Board of Equalization sitting for the year 1976 be duly adjourned. Attests Hugh Mixon, Secretary ','qualization Poard I,. BOARD OF EQUALIZATION OATH OF OFFICE THE STATE OF TEXAS X COUNTY OF DENTON X is Raymond Pitts , George Bertine AND Roberr Speake a member of the Board of Equalization of the City of Denton, Texas, for the year, A.D. 1976. hereby solemnly swear that, in the performance of my duties as a member of such Board for said year, I will not vote to allow any taxable property to stand assessed on the tax rolls of said City of Denton, Texas, for said year at any sum which I believe to be less than its fair and uniform value: that I will faithfully endeavor to have each item of taxable property which I believe to be assessed for raid year at less than its fair and uniform value, raised on the tax rolls to what I believe to be its fair and uniform value, I further solemnly swear that I have read and underAtand the provisions contained in the Constitution and laws of this State, and the Charter and Ordinances of the City of Denton, relative to the valuations cf taxable property and that + I will faithfully perform all the duties required of me under the Constitution and laws of this State, and the Charter and Ordinances of the City of Denton, Sc help me God, w i;L7 j k THE STATE OP TEXAS X COUNTY OF DENTON X Sworn to and subscribed before me by the said javmond Pitts , CLeorgg Bar;ine , and Robert Speaks this 2nd day of August A.D. 1976, No cy Pub] i and for De ton County, Texas T X a' ~ ~ s~. r U ~,S t w f 1 C FORM 1969E 9-75 LONE STAR GAS COMPANY STATE OF TEXAS SCHEDULE OF INDUSTRIAL RATES-L FOR AGENCIES OF THE STATE OR FEDERAL GOVERNMEN r The rates of Lone Star Gas Company for industrial gas service het-einafter quoted are available to any industrial gas customer which is aa: agency of the state or federal government and can be ;:.red from and without exceeding the capacity ,f Company's existing system for industrial purposes, as classified by Company, upon the terms and conditions recited herein. Service under this Schedule of Industrial Rates is subject to Company's rules, regulations and standard operating procedures. The rates shall not be available for stand-by use, but shall be available only to customers purchasing from Company their entire natural gas fuel requirements at the premises and location at which service is rendered hereunder. The gas delivered hereunder is for tht individual use of cu. comer and shall not be resold. These rates shall not be available to residential customers where less than five dwelling units are served through one meter. These rates shall be available to schools, churches, rooming or boarding ;louses, orphanages, homes for the elderly, dormitories, hospitals, motels, hotels, apariment buildings or other buildings used primarily as living quarters, or any other use which may be considered human need, oniy if Customer has standby equipment for the use of other fuel of at least equal capacity to that normally required by the Customer, and fuel in storage in an amount adequate to fulfill Customer's fuel requirements during periods of curtailment, Interruptiot, and discontinuance of gas service. Company shall not be responsible for determining the type or amoun! of standby fuel or equipment; such determination shall be the sole responsibility of Customer. Measurement And Billing: Tl•e gas shall be measured at a single meter location and shall not be combined with gas measured through any other meter location fvt the purpose of billing under this schedule. Amounts billed shall be due and payable within ten (10) days from monthly billing data. The first step of each rate shall be apphcai..~ when the service period for which bill is rendered Is for 16 days or more. Whenever the iniViI service period is for IS days or less during a billing period, the Customer's consumption shell be carried forward and added to Customer's consumption during the next succeeding monthly service period for billing purposes. Curtailment: Subject to governmental regulation, gas service under this Schedule of Industrial Rates shall be subject to curtailment, interruption or discontinuince•in a particular service area when necessary Customer Name Account No. Service regstested at Rate Requested by read. 0 out.te9 d city Units Fiscal Year Gal Y D L hot 0 meamed ttuu T►M! Effectiva Date in th-. judgment of the Company for it to maintain Residential and Commercial Ralc service and Industrial service having a higher priority. Service shall be furnished by Company and received by Customer in accordance with the following order of priority: (1) Residential and Commercial Rate service Military Rate Service (2) Industrial Rate I service The following priorities in descending order shall be observed as sub-priorities for Rate 1: 1. Small commercial (Less than 100 Mcf on a peak day) 2. Large commercial (100 Mcf or more on a peak day) and industrial requirements for pilot lights and plant protection gas. 3. Small industrial (less than 3,000 Mcf on an average day) requirements for feedstock and process gas needs. - 4. Large industrial (3,000 hlcf or more on an average day) requirements for feedstock and process gas needs. 5. Industrial requirements not specified in priorities 3, 4 or 6. 6• (a) Boiler and other indirect flame applications (300 hlcf or less on an average day) with alternate fuel capabilities. (b) Boiler Nel and other indirect flame applications (more than 300 Mcf on an average day and less than 3,000 Mcf on an average day) with alternate fuel capabilities. (c) Boiler fuel and other indirect flame applications (3,000 blcf or more on an average day) with alternate fuel capabilities. (3) Public Schools Rate service (4) Industrial Rate 2 service (5) Industrial Rate 3 service (5) Special Electric Generation service Customer shall receiv.: service under its choice of one of the following rates, and the rate so selected by Customer shall remain in effect until changed by Customer or Company in the manner herein provided. Customer may, not later than twenty (20) days after the beginning of any fiscal year of Customer, notify Company in writing of its election to receive service during such fiscal year under anv other rate within Company's then applicable Schedule of Industrial Rates for Agencies of the State or Federal Government. Company may revise its Schedule of Industrial Rates for Agencies of the State .r Federal Government, and any such revised Schedule of Industrial Rates shall be applicable to the gas purchased by Customer from and after the end of the fiscal year in which such revision is made. For the purposes hereof the fiscal year for Federal agencies shall begin on July 1 of each year and. for State agencies on September I of each ,year. Monthly Rates: Subject to Company's limitations on the availability of each rate, Customer shall receive service under its choice of one of the following rates in accordance with the rate selected by Customer as provided in the contract: RATE I First 25 Mcf or less $10,130 All over 125 Mcf @ .82 RATE 2 First 690 Mcf or less $460.00 All rnt 630 Mcf @ 1675 RATE 3 First 1,250 Mcf or less $800.00 All over 1,250 Mcf @ .615 Adjustment for Heat Content: This Schedule of Industrial Rates is based upon the delivery of gas having an average total heat value of 1,000 British thermal units (Btu) per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 Btu per cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or h;ss than 1,000 Btu per cubic'foot. The monthly average total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square inch and at a temperature of 60 degrees Farenheit shall be determined at Company's expense by the use of standard methods and procedures. Adjustment for Gas Cosh The foregoing rate is based upon a weighted average cost of gas purchased by Lone Star Gas Company of 35 cents per 1,000 cubic feet (Mcf) based on a pressure of four ounces per square inch above an assumed a!mospheric pressure of 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit. The term, "weighted average cos! of gas purchased" as used herein, shall be the weighted average price per Mcf, adjusted to a four ounce base, paid or accrued by Company to producers, processors, transporters or other sellers for gas purchased by the Company during the latest available fiscal month and shall include any production, severance, dedication, or gathering tax paid or accrued by Company directly or by way of reimbursement to its gas suppliers with respect to gas purchased by Company. Whenever the weighted average cost of gas purchased is more or less than 35 cents per Mcf, the amount billed under this schedule shall be increased or decreased by the amount of such difference: multiplied by the consumption in Mcf. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one-hundredth of one cent. Adjustment for Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a proportionate part of all taxes or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance or contract for the use of the public streets, alleys and thoroughfares in the conduct of Company's business, or because of Company's occupation; and Customer shall pay Company an amount equivalent to a proportionate part of any new tax or increased tax or any other governmental imposition, rental, fee or charge levied or charged after Iuly 1, 1974, (except state, county, city, and special district ad valorem taxes, taxes on net income and any production or similar tax included in the weighted average cost of gas as provided in the gas cost adjustment clause). • GENERAL TER.MA S 1. Gas shall be delivered to Customer at Company's operating pressure at the point of delivery. The point of delivery of gas to Customer hereunder shall be at the point where the gas first passes from Company's equipment Into Customer's equipment, atwhichpointthe title to and ownership of the gas shall vest in Customer. Company shall not be liable for any loss, damage, or injury resulting from the gas or ltsuseafter itleavesthe aforesaid point of delivery, all risks thereof and therefrom being hereby assumed by Customer. (a) The g,.s shall be measured at a single meter location by standard meter or meters furnished and installed by and at Company's expe-cseata place mutually agreed upon. Customer shall provide, in accordance with Company's specifications, the necessary service line on Customer's premises to connect with Company's line and suitable space and easement for Company's lines and other equip- ment. Customer shall use due care to protect Company's property which is located on Customer's premises from damage and shall permit no person other than an agent of Company, or a person other than an agent of Company, or a person otherwise lawfully authorized, to tamper with, inspect or remove same. All property belonging to Company and located on Customer's premises shall be removable by Company at any time during the term of this contract and within a reasonable time after its termination or after reasonable notice of Customer's desire to have such property removed, title thereto remaining in Company at all times. Company shall have full and free Ingress to and egress from Customer's premises for the construction, inspection, maintenance, repair and removal of Company's property thereon or for any purpose connected with the service of gas hereunder. (b) Customer agrees to keep the gas-burning equipment and appurtenances which may be located on the aforesaid premises in good condition and in conformity with the requirements of any applicable city ordinance, state law, rule, order or regulationof any governmental authority having jurisdiction and to comply with all of Company's reasonable rules and regulations. (c) For the purpose of this contract the unit of measurement shall be 1,000 cubic feet of gas at the pressure at which It Is measured, except when such gas is measured at a gauge pressure in excess of 4 ounces per square inch. The volume of gas measured at a gauge pressure in excess of 4 ounces per square inch shall be adjusted by computation in accordance with the Ideal Gas Laws, corrected for deviation, to the volume thatit would occupy at a gauge pressure of 4 ounces per square inch. In such computations a value of 14.4 pounds per square inch shall be used for atmospheric pressure and a value of 60 degrees Fahrenheit shall be used for the base and flowing temperature of the gas. ' (d) Meter measurements computed by Company according to its standard operating practices shall be conclusive except where meter Is found to be inaccurate by as much as 3 per cent fast or slow cr failed to re?Ister, in either of which cases Company shall repair or replace tie meter. The quantity of gas del ; Bred while the meter was Inaccurate or failed to register shall bt determined by correcting the ei ror if the percentage of error is ascertainable by calibration test or mathemati- cal calculation. If not so ascertainable. then it shall be determined by estimating the quantity on a baste of celiveries under similar conditions when the meter was regis'<ring accurately. No adjust- ment or correction for meter inaccuracy or failure shall be made for a period longer than 90 days. ~ fII. Gas sold and service rendered hereunder shall be subject to the priority of service provided in the Schedule of Industrial Rates, and Customer agrees to select hereunder the rate which affords priority of service necessary and beat suited to Customer's particular type of operations. When notified by Company to do so, Customer agrees to curtail or discontinue the use of ga3 hereunder In conformity with such notice according to the service priority provided for in this Schedule of Industrial Rates. If Customer classifies his business and operations as being essential to the public health and safety or otherwise considers continuity of his fuel service essential, then he shaii pro- vide stand-by fuel and equipment adequate to meet his fuel requirements during periods of inter- ruption of gas service under this contract. Company cannot and does not guarantee a constant supply of gas hereunder, Inability or failure of Company to deliver or Customer to receive gaa or perform this contract shall not be the basis of claims for damages sustained by either party or for breach of contract when due to Act of God or governmental authority, the elements, labor troubles, fires, accidents, breakage, repair or change of or obstructions in pipelines, equipment or machinery, 4pletion or failure of gas supply, fluctuations in gas pressure, demands in excess of the capacity ct Company's equipment, plpellres, or sources of gas supply, or other causes or contingencies reasonably beyond the control of either party bereto. FORM 3767-L 3-74 LONE STAR GAS COMPANY SCHEDULE OF INDUSTRIAL RATES-L STAT" OF TEXAS Availability: The rates hereinafter set out are available to gas customers who can be served from, and without exceeding the capacity of, Company's existing system upon the terms, conditions, and limitations recited herein, in the contract of which this Schedule of Industrial Rates forms a part, and in reasonable rules and regulations j adopted by Company. These rates shall not be available for standby use. The gas delivered hereunder is for the individual use of Customer and shall not be resold. These rates shall not be available to residential customers where less than five dwelling units are served through one meter. These rates shall be available to schools, churches, rooming or boarding houses, orphanages, homes for the elderly, dormi- tories, hospitals, motels, hotels, apartment buildings or other buildings used primarily as living quarters, or any other use which may be considered human need, only if Customer has standby equipment for the use of other fuel of at least equal capacity to that normally required by the Customer, and fuel in storage in an amount adequate to fulfill Customer's fuel requirements during periods of curtailment, interruption and discontinuance of gas service. Company shell not be responsible for determining the type or amount of standby fuel or equipment; su:h determination shall be the sole responsibility of Customer, i This Schedule of Industrial Rates is based on Customer's use of gas service for twelve full months during the contract year. This Schedule of Industrial Rates may j be applicable to service to a Customer's temporary facilities for less than twelve full months during a contract year by the payment by Customer to Company, upon execu- tion of such temporary contract, of a non-refundable amount which shall be the I estimatedcostof installing and removing facilities necessaryto provide such service. i Measi3rement And Billing: The gas shall be measured at a single meter location and shall not be combined with gas measured through any other meter location for the purpose of billing under this schedule. Amounts billed shall be due and payable within ten (10) days from ' monthly billing date. The first step of each rate shall be applicable when the service period for which bill is rendered is for 16 days or more. Whenever the initial service period is for 16 days or less during a billing period, the Customer's consumption shall be carried forward and added to Customer's consumption during the next succeeding monthly service period for billing purposes. Curtailment: Subject to governmental regulation, gas service under this Schedule of Industrial Rates shall be subject to curtailment, interruption or discontinuance in a particular service area when necessary In the Judgment of the Company for it to maintain Residential and Commercial Rate service and Industrial service having a higher M priority. Service shall be furnished by Company and received by Customer In accord- ance with the following order of priority: (1) Residential and Commercial Rate service (1) Military Rate service (2) Industrial Rate 1 service The following priorities in descending order shall be observed as sub-priorities for Rate 1: 1. Small commercial (less than 100 Met on a peak day). 2. Large commercial (100 Mcf or more on a peak day) and industrial requirements for pilot lights and plant protec- tion gas. 3. Small industrial (less than 3,000 Met on anaverage day) requirements for feedstock and process gas needs. 4. Large industrial (3,000 Mcf or more on an average day) requirements for feedstock and process gas needs. 5. Industrial requirements not specified in priorities 3, 4, .or 6. 6. (a) Boiler and other indirect flame applications (300 Mot or less on an average day) with alternate fuel capabilities. (b) Boiler fuel and other indirect flame applications (more then 300 Met on an average day and less than 3,000 Mot on an average day) with alternate fuel capabilities. (c) Boiler fuel and other indirect flame applications (31000 Mot or more on an average day) with alter- nate fuel capabilities. (3) Public Free School Rate service (4) Industrial Rate 2 service (6) Industrial Rate 3 service (5) Special Electric Generation service Monthly Rates: Subject to Company's limitations on the availability of each rate, Customer shall receive service under its choke of one of the following rates in accordance with the rate selected by Customer as provided in the contract: RATE 1 First 126 Mot or lesE $107.60 All over 126 Mot 0 .82 RATE 2 First 600 Motor less $450.00 All over 600 Mot 0 .676 RATE 3 First 11250 Motor less $800.00 Allover 1,250 Mot 0 .615 Adjustment For Heat Content: This Schedule of Industrial Rates is based upon the delivery of gas having an average total heat value of 1,000 British thermal units (Btu) per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 Btu per cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than 1,000 Btu per cubic foot. The monthly average total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square Inch and at a temperature of 60 degrees Fahrenheit shall be determined at Company's expense by the use of standard methods and procedures. Adjustment For Gas Cost: The foregoing rate Is based upon a weighted average cost of gas purchased by Lone Star Gas Company of 35 cents per 1,000 cubic feet (Mcfi based on a pressure of four ounces per square inch above an assumed atmospheric pressure of 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit. The term, "weighted average cost of gas purchased" as used herein, shall be the weighted average price per Mcf, adjusted. to a four ounce base, paid or accrued by Company to producers, processors, transporters or other sellers for gas purchased by the Company during the latest available fiscal month and shall include any production, severance, dedica- tion, or gathering tax paid or accrued by Company directly or by way of reimburse- ment to its gas suppliers with respect to gas purchased by Company. Whenever the weighted average cost of gas purchased is more or less than 35 cents per Mcf, the amount billed under thisschedule shall be increased or decreased by the amount of such difference multiplied by the consumption in Mcf. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one- hundredth of one cent. Adjustment for Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a proportionate part of all taxes ur rentalcr which now are or which may be levied, charged or imposed by any governmental body under authority ofanylaw,ordinanceor contract for the use of the public streets, alleys and thoroughfares in the ^,onduct of Company's businass, or because of Company's occupation; and Customer shall pay Company an amount equiva- lent to a proportionate partofanynewtax or increased tax or any other governmental imposition, rental, fee or charge levied or charged after July 1, 1974, (except state, county, city, and special district ad valorem taxes, taxes on net income and any pro- duction or similar tax included in the weighted average cost of gas as provided in the gas cost adjustment clause). FORM 3261-L 1-74 1-0!41t STAR GAS COMPANY AIR CONDITIONING RIDER-L STATE OF TEXAS Application: Application to gas service under Rates 1, 2, and 3 of Company's Schedule of Industrial Rates-L, and under Company's Rate Schedule for Public Free Schools-L, when the customer uses such services for process and/or comfort cooling purposes during the months shown herein. The provisions of the rates specified above are modiffed by the attaS1ment thereto of this rider only as shown herein. Monthly Rate: 1 The following rates shall be applicable to correspond with the rate PnPClfied to the contract to which this rider is attached and shall be subject to the terms end conditions, including adjustments, set forth in the Schedule of Industrial PAtes-L. I J RATE 1 All Gas Delivered Under This Rider @ $ .66 per Mof RATE 2 All Gas Delivered Under This Rider @ $ .59 per Met RATE 3 All Gas Delivered Under This Rider 0 $ .67 per Met RATE FOR PUBLIC FREE SCHOOLS All Gas Delivered Under This Rider Q $ .66 per Met Volume Determination: The portion of the monthly gas consumption subject to this air conditioning rider shall be computed on the following basis: April 3 Mcf per nominal ton Installed capacity; May 5 Mcf per nominal ton installed capacity; June 8 Mcf per nominal ton installed capacity; July 9 Mcf per nominal ton installed capacity; August 9 Mcf per nominal ton installed capacity; September 8 Mcf per nominal ton installed capacity; October 5 Mcf per nominal ton installed capacity; November 2 Mcf per nominal ton installed capacity. Installed capacity shall mean name-plate capacity of the plant normally and regularly used for maximum conditions and does not Include standby or unused facilities. The Mcf Ao computed shall not exceed 95% of the total monthly consumption. All gas con- sumption in excess of the volumes subject to this air conditioning rider shall be billed in accordance with the terms of the Rate Schedule to which this rider is attached. Customer Name Number of tons applicable under this rider [OM 3769-L 3-74 LONE STAR GAS COMPANY RATE SCHEDULE FOR PUBLIC FREE SCHOOLS-L STATE OF TEXAS Availability: Upon the terms and conditions recited herein and in the contract of which this Rate &,hedule forms a part, the rate set out below shall be available to any fully tax supported public free school, including high school and lower grades, using gas for building heating. In suchcases this rate shall also apply to gas used for other purposes incidental to the operation of that school's facilities, including, but not necessarily limited to, water heating, home economics training, laboratory work, vocational train- p j,and food preparation for students, faculty, and persons other than the general public, provided all usage may be measured through a single meter installation. Gas delivered hereunder shall not be available for residential dwelling use, for standby use, nor.for redelivery or resale to others, nor to private schools or tax supported schools above the high school grade level. Measurement And Billing: Amounts billed shall 1 e due and payable Whin ten (10) days from monthly billing date. When any single school district or city or town has school buildings at more than one location therein, the Company will combine the volume of gas delivered to it for I the aforesaid uses for the purpose of monthly billing at this rate. + Curtailment: Servibe rendered under„this rate shall be subsect to curtailment, interruption or II dlgcontlnuance in any particular service area when necessary In the judgment of the Company for it to maintain adequate service to its' Residential and Commercial Rate enetoiriers, Military Rate customers, and Industrial customers served ;order Rate 1 of, $chedules of industrial Rate4s'but shall receive preference over service rendered i under ether rates in the Company's Schedules of Industrial Rates. Monthly, Rate: First 150 Mef @ $ .85 per blef Over 160 Mof @ .80 per Mef Minimum Monthly Bill $3.00 per Meter Installation. Adjustment For Heat Content: This rate is based upon the delivery of gas having an average total heat value of 1,000 British thermal units per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 British thermal units per cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than 1,000 British thermal units per cubic foot. The monthly average total heating value of the gas at apressure of four ounces plus 14.4 pounds per square In-h and at a temperature of 60 degrees Fahrenheit shall be determined at Company's expense by the use of standard tests or the use of recording calorimeters. Adjustment For Gas Cost: I The foregoing rate is based upon a weighted average r A of gas purchased by i Lone Star Gas Company of 35 cents per 1,000 cubic fee+ ~c.icf) based on a pressure of four ounces per square inch above an assumed atmosphE:rio pressure of 14.4 pounds per square inch. The t6rm, "weighted average cost of gas purchased", as j used herein, shall be the weighted average price per Mcf, adjusted to a four ounce brse, paid or accrued by Company to producers, processors, transporters or other sellers for gas purchased by the Company during the latest available fiscal month and shall include any production, severance, dedication or gathering tax paid or accrued by Company directly or by way of reimbursement to its gas suppliers with respect to gas purchased by Company. I Whenever the weighted average costofgaspurchasedis more or less than 35 cents per MM, the amount billed under this schedule shall be Increased er decreased by the amount of such difference multiplied by the consumption in Mcf. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one- hundredth of one cent. Adjustment For Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a rroportionate part of all taxes or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance or contract for the use of the public streets, alleys and thoroughfares in the conduct of Company's business, or because of Company's occupation; and Customer shall pay Company an amount equiva- lent to a proportionate partof any newtax or increased teat or any other governmental imposition, rental, fee or charge levied or charged after July 1, 1974, (except state, county, city, and special district ad valorem taxes, taxes on net income and any pro- duotion or similar tax included in the weightedaverage cost of gas as provided in the gas cost adjustment clause). RULES AND REGULATIONS APPLICABLE TO GAS SERVICE TO CONSUMERS .IRTICLL 1. Company will supply Consumer with gas only through the meter or meters furnished and owned by Company. ARTICLE It. Consumer shall be held responsible to indemnify Company against ar,y injury to or loss of Company owned property and equipment while it is on Consumer's premises, proximately rising out of or caused by the negligence, carelessness or willfal act of Consumer or his servants, ogcn:s. emplcyic u mw mcmhcr of his household, or any person or persons upon his premises by authority of his consent or sufferance. ART1Cl F. Ill. Comr.my shall have the right :o req.tire of each Consumer a deposit of a sum of money sufficient in the judgment of Company to secure Com,~,any in payment of all sums that may become due Company for gas and/or gas service and any and all other bills and accounts due by Consumer to Compant Consumer shall increase said deposit when requested by Company. The security deposit may be held by Company until galt sersice is discomirual. Interest at the rate prescribed by law, of the State in which deposit was made shall be paid to Consumer annually if rcvpieaed h) C-,ra mrr to dn an. Interest shall cease to accrue upon discontinuance of service, In case Con- sumer desires to discontinue use of Gampam's service, Company shall return to Consumer the security deposit plus the accrued interest, Ica any amount due Company by Consumer. ARTICLE It'. Company shat[ Into u e right to require written applications for gas service and written notices requceing diwon- tinuance of gas seriice Consumer w ill he held responsible for all gas consumed until written notice to discontinue gas service is receical by Company and final reading of meter shall bait bren made, for which purpose forty-eight (48) hours shall be allowed. ARTICLE V. Company shall not be liable for damages caused by interruption or fluctuations in service caused by acs of God or the public enemy, strikes, riots, dimirutiens, or failure or supply of gas or without limitation by enumeration herein, other events and contingencies which could not in nrdimry rn,,rse of commercial prudent management have been foreseen or prevented by Cr^mpxny. ARTICLE VI. No open light shall be taken near any escaping gas; and Consumer must shut off the gas it the house service or meter cock when leakage of gas is discovered. Company sh-!:.,ot be responsible for any damage or loss due to the escape of gas from or in Consumer's piping, appliances or equipment. Consumer must give Company notice, at its main or district office, immediately upon the dis- covery of escaping gas, Consumer shall at all times maintain his gas burning appliances and equipment in good and safe condition. Company shall nce be liable for damages resulting from or growing out of defeake appliances and equipment belonging to Consumer of the leakage of gas from or incomplete combustion of gas by Consumer's appliances, ARTICLE I'll. Company shall have the right to discontinue service to Consumer for or on account of any of the following causes or reasons or upon discoatring the existence of any of the following conditions: For failure or refusal of Consumer to repair or replace or to have repaired or replaced, any of Consumer's piping, applianc^-s, or eruipment vsheo notified by Company; for the non-payment of any bill or account when due, regardless of the amount of Consumer's secur. it) deposit, whether rendered for gas service at one or more locations, in one or more cities and towns, and whether for buslnrs or recl- dential use; for the failure or refusal of Consumer to post security deposit with Company or increase the amount of security deposit when requested by Company to do so; upon discovering any property or equipment of the Company located on Consumer's premises which has been tampered with or destroyed; for turning gas on after same has been turned off by Company; for fraudulent representations relating to the consumption of gas; for selling, delivering to or furnishing gas or gas service, without written permission from Company, to other per- sons either on or off Consumer's premises; for using gas for purposes other than as represented; for non-compliance with or violation of any of the rules and regulations of Company. ARTICLE Vill, Company shall have access to its property and equipment located upon Consumers premises st all reasonable times for any purpose connected with or in furtherance of its business operations, and uay remove such property from Consumer's premises. But Company shall he under no duty or obligation to lupect, maintain or repair the pipes, equipment of facilities of Consumer, and shall not be liable for damages thereto or srlsing therefrom. { ARTICLE 1X, In case of discontinuance of service for any violation of or non-compllisnce with any rule or regulation of Company, Consumet shall pay Company a reconnect charge In advance for re-establishing gas service on the premises of Consumer, ARTICLE X, Consumer shall be charged for go and gas service tendered Consumer the rates or charges now or hereafter promul' dated, estsbllsbed or charged by Company during rite time that such rates or charges shall be in effect. Ff ARTICLE X1. Gas service shall automatically terminate upon abandonment or removal by Company of the Portion of Its System "tle plane from which Consumer is served. s ~ F : ARTICLE X11. Company shall not be obligated to supply gas to Consumer If to do so requires a main extension in face." of what " Company Is requtred to lay under Its rules, regulations and policies, unless and until Consumer and Company execute a special ferns of con- kf Set for such main exttnalon. , ARTICLA Xhl, Any of the foregoing rules and regululoos to the contrary notwithstanding, all laws, ordinances and tesolurlons, ' tlthet is to files, thaijtts, rules, feaulstlona of otherwise hereafter legally applicable, and in force from time to time during the time that Consumer shall tkaea gas servict, shall control during the time that they shall he In effects 4 s?;t " ~ ~ ~ a ~ ~ ~ ~ ~ ~ ~ d~ ~ ~ k: ~aa . S ~~j - y,~~ . ~ „~Yi~ . , i d Lone Star Gas Company DIVISION OF DISTIIWTION 319 West Oak Street Denton, Texas 76202 August 30, 1976 TO THE HONORABLE MAYOR AND GOVERNING BODT*OF DENTON, TEXAS: Attention: City Secretary Enclosed, for filing with your honorable body, is a copy of Lone Star Gaa Company's Contract for Industrial Gas Service, General Terms and Conditions, and Schedule of Industrial Rates - L and Schedule of Industrial Rates - M. Rate M is the Schedule of Industrial Rates currently in effect for industrial customers, except for those indus- trial customers, if anyp whose one-year contracts under Rate L have not yet terminated. New industrial customers will be served on Schedule of Industrial Rates M or any applicable future industrial rate schedule if such customer meets the availability requirements for industrial service outlined in the rate schedule. Also enclosed for filing is the appli- cablo Rate Schedule for Public Free Schools in your municipality and the Rate Schedule for Agencies of the State or Federal Government. We are enolosing in addition a schedule of our service charges and rules and regulations relating to gas service. You alretdy have on file our general service rate for residential and commercial customers passed by your governing body, subject to reduction for Bummer air conditioning use as shown in the attached Rate Schedule 391. This filing does not represent any change in current rates, not does it require any action on your part, but is made in compliance with Public Utility Regulatory Act. Very truly yours, LONE ST.AR- GAS- C.CORPANY By .~~wml. G /~GL?~' LTIE ..-,,TAR GA3 COMPANY RA'rE SCHEDULE NO. 300 Connection and Reconnection Charge Computer Input Code 1 Reconnection 0-.arge $ 4.00 l/ 3 Reconnection Charge 5.00 2/ 4 Connection and Reconnection Charge 20.00 3/ 11 Cities of Cockrell Bill, Dallas, Highland Park, and Univerisity Park - Reconnect charge made only following non-pay turn off for same customer. Additional charge of $8.00 for reconnection after regular working hour's (8:00 A.M. to 5:00 P.M.), Sundays, and holidays. 4 21 All cities and towns except Cockrell Hill, Dallas, Highland Park, Trving, and University Park - Additional charge of $19.00 for reconnection after regular working hours (8:00 A.M. to 5:00 P.M.), weekends, and holidays. Should customer insist service be reconnected after normal working hours and workload require technician be called from home to execute request, $38.00 is added to regular $5.00 charge. No reconnection charge for new premises being occupied for first time. 3/ City of Irving - All connections and reconnections at any hour $20.00. Charge also applies to new premises being occupied for first time. i Note: Additional c'.arges must be entered in Customer Information System using Miscellaneous Money Transaction. Issued May 280 1976 L014E STAR GAS' COt,TANY RATE SCHEDULE NO. 301 ^ Appliance, Cas Light, and Air Conditioning Service Charges ` Appliance Service Charges Schedule Hourly Charge 8:00 A.M. to 5:00 P.M. Monday through Friday - $ 13.50 5:00 P.N. to 8:00 A.M. Monday through Friday - 19.00 Saturdays, Sundays, and holidays - 19.00 When necessary to call personnel from home I:o perform service, at customers request - 38.00 minimum An additional charge of $11.00 added to the above charges when a second employee (helper) is required. Time in excess of one hour prorated in 15 minute increments, as follows: Standard Non-Standard Increments Working Hours Working Hours 15 minutes $ 3.35 $ 4.75 30 minutes 6.75 9.50 45 minutes 10.12 14.25 60 minutes 13.50 19.00 Standard working hours defined as 8:00 A.M. to 5:00 P.M. Monday through Friday. Gas Light Service Service Charge Cleaning, mantle replacement, and replacing external parts - $ 5.00 Painting (black or white) in conjunction with other gas light service on same unit - 4.00 Air Conditioning Service Schedule Hourly.Charge Any hour Sunday through Saturday and holidays $ 17.50 Time in excess of one hour prorated in 15 minute increments, as follows: Increments All Hours 15 minutes $ 4.38 30 minutes 8.75 45 minutes 13.13 60 a+inutes 17.50 Issued May 28, 1976 A Page 2 All new company-sold air conditioning units serviced free of charge for 30 days from date of installation. No additional charge for second employee (helper). Labor charges in excess of factory allowances will be passed on to the customer. Factory labor allowances are as follows: Bryant Air Conditioners Labor Allowances Model Part serviced or replaced 36-453 48-453 60-452 90 b 120-452 Generator - Analyzer $ - $ - __$_5 0 $ - Generator 50 50 - 100 Chiller Coil 30 30 50 99 i Vapor Check Valves 24 - - - { Ruptured Pulser Repair (Initial I34 Repair) 65 65 65 70 100 Hour-Filter Replacement 20 30 - - 400 Hour-Filter Replacement 20 - - - Black Solution Repair with Modular Generator Kit 50 50 - - Black Solution Repair with Regeneration Assembly Kit - - 50 75 Regeneration Assembly Kit - - 50 75 ^ Rectifier - - 50 75 (120 only) No labor allowance for field repair of leaks. Arkla Air Conditioners Labor Allowance Service All Models For part or assembly replacemen4 on sealed unit - $ SO Fop leak repair on sealed unit 25 Whirlpool Air Conditioners Labor Allowances Model Part serviced or replaced- BTC ALL Replace Solution Pump $ 100 $ - Replace Evaporator 50 Repair Leak - Ammonia or 011 - 40 Change Henry Valve - 40 Change Pressure Relief Valve - 40 Replace Capillary Tube (Restrictor) - 40 Labor Allowance for replacing a BMC, BRC or BTC model with a complete BIG unic is $50.00. EFFECTIVE IN ALL CRIES AND TOWNS Issued May 28, 1976 LANE .)TAR GA3 COMFANY r Main Line Extension Rate RESIDENTIAL The charge for extending mains beyond the 100 foot free limit established by Lone Star Gas, or any free limit established by city franchise is $4.50 per foot. r Established in the following cities and towns: All l Issued May 28, 1476 FORM 1116 1-77 CONTRACT FOR INDUSTRIAL GAS SERVICE LONE STAR GAS COMPANY, called "Company", agrees to sell and deliver natural gas to called "Customer," %h-se mailing address i:; and Customer agree,,, to purchase and receive such gas from Company to meet Customer's natural gas requirement at Customer's premises located in County, State of Texas, and more fully described as: subject to and in accordance with all the terms and conditions contained in this contract. This contract shall be effective as of the date of execution shown hereon and shall cover service for a period of one (1) contract year and from year to year thereafter; provided that either party may terminate this contract at the end of any contract year by giving written notice to the other party at least fifteen (15) days prior to the end of any contract year. The first contract year shall commence on the first official meter reading date after the date gas is first delivered to Customer hereunder and shall terminate at the end of the twelfth (12th) monthly billing period thereafter. This contract covers Customer's entire natural gas requirements in the aforesaid premises, I and Customer shall not use gas under this contract for service other than that classified by Com- pany as industrial. Customer has elected to receive and pay for gas under this contract during the first contract year in accordance with Rate within the attached Schedule of Industrial Rates which is incorporated herein and-made a part of this contract. For any succeeding contract year Customer may, at his option, and upon written notice to Comppany of his intent to do so, elect to receive service under this contract at any rate within the Com- pany's then applicable Schedule of Industrial Rates, provided Customer makes such election and gives such notice within twenty (20) days after the beginning of such contract year. During the term of this contract the rate salected by Customer shall remain to effect until changed by Cus- tomer or the Company in the manner herein provided. Bills rendered for gas delivered hereunder shall be payable at Company's office located at , Texas. This contract includes the additional terms, provisions and conditions contained in Articles through VI, entitled "General Terms," which are attached hereto and shall be a part of this agreement and such "General Terms" shall be applicable to the service rendered hereunder. This contract shall be binding upon Company, its successors and assigns, but shall not be assignable by Customer without the written consent of Company. WIT NESS THE EXECUTION HEREOF as of the day of _ 19_ . LONE: STAR GAS CON113ANY By - BY Title Title "CUSTOMER" 0.I . 1 Sales 'fax Exempt-Yes Cl No ❑ Customer's Deposit inside Outside City Limits Approved Otis Is ® Is not ❑ measured thru TINS Date Service 1neu,qurelrd contract Year Commener+ Form 1111 • ■ • Rev. 144 GENERAL TERMS r. (a) Company may revise its Schedule of Industrial Rates in the future, and any such revised Schedule of Industrial Rates shall be applicable to the gas purchased and sold under this contract from and after the end of any contract year in which such revision is made, pro- vided that the Company shall give Customer not less than forty-five (45) days' notice prior to the end of the contract year of su& revised Schedule of Industrial Rates. If Customer does not desire to continue the purchase of gas under this contract In accordance with such revised Schedule of Industrial Rates, Customer shall give the Company written notice cancelling this contract not less than fifteen (15) days prior to the end of the then current contract year as provided above. If Customer fails to give the Company such written notice of cancellation than this contract shall be continued as provided above. The notices herein provided for shalt be deemed to have been given when forwarded by the party giving the same addressed to the other party at the address shown in this contract by first class mail, postage prepaid. (b) At Company's request Customer shall from time to time deposit with Company such amount of money as Company may determine is reasonably necessary to guarantee the pay- ment of gas bills hereunder and all other bills due by Customer to Company. All money depos- ited by Customer with Company shall bear interest at the rate prescribed by law. Interest shall be payable annually at Company's office from which bills are rendered under this con. tract. Upon the termination of this contract, said deposit, plus any accrued interest thereon, less any amount due Company by Customer, shall be refunded to Customer. if. (a) The gas shall be measured at a sinfle meter location by standard meter or meters furnished and installed by and at Company s expense at a place mutually agreed upon. Cus- tomer shall provide, in accordance with Company s specifications, the necessary service line on Customer's premises to connect with Company's line and suitable space and easement for Com- pany's lines and other equipment. Customer shall use due care to protect Company's property which is located on Customer's premises from damage and shall permit no person other than an agent of Company, or a person otherwise lawfully authorized, to tamper with, inspect or remove same. All property belonging to Company and located on Customer's premises shall be removable by Company at any time during the term of this contract and within a reasonable time after its termination or after reasonable notice of Customer's desire to have such property removed, title thereto remaining In Company at all times. Company shall have full and free Ingress to and egress from Customer's premises for the construction, inspection, maintenance, repair and removal of Company's property thereon or for any purpose connected with the sere Ice of gas hereunder. (b) Customer agrees to keep the gas-burning equipment and appurtenances which may be located on the aforesaid premises in good condition and in conformity with the requirements of any applicable city ordinance, state law, rule order or regulation of any governmental authority having jurisdiction and to comply with all of Company's reasonable rules and regulations. (c) For the purpose of this contract the unit of measurement shall be 1 000 cubic feet of gas at the pressure at which it is measured, except when such gas Is measured at a gauge pres. sure in excess of 4 ounces per sq-.sre inch. The volume of gas measured at a gauge pressure in excess of 4 ounces per square inch shall be adjusted by computation in accordance with the Ideal Gas Laws, corrected for deviation, to the volume that it would occupy at a gauge pressure of 4 ounces per square Inc). In such computations a value of 14.4 pounds per square inch shall be used for atmospheric pressure and a value of 60 degrees Fahrenheit shall be used for the base and flowing temperature of the gas. (d) Meter measurements computed b Company according to its standard operating prac- tices shall be conclusiv.+ except where meter is found to be Inaccurate by as much as 8 per cent fast or slow or failee to rea-Ister, In either of which cases Company shall repair or replace the meter. The quantity of gas delivered while the meter was Inaccurate or failed to register shall L~ be determined by correcting the error if the percentage of error is ascertainable by calibration test or mathematical calculation. If not so ascertainable, then it shall be determined by estimating the quantity on a basis of deliveries under similar conditions when the meter was registering accur- ately. No adjustment or correction for meter inaccuracy or failure shall be made for a period longer than 90 days. III. Gas shall be delivered to Customer at Company's operating pressure at the point of deliv- ery. The point of delivery of gas to Customer hereunder shall be at the point where the gas fir; t rasses from Company's equipment into Customers equipment, at which point the title to and ownership of the gas shall vest in Customer. Company shall not be liable for any loss, damage, or injury resulting from the gas or its use after it leaves the aioresald point of deliv- ery, all risks thereof and therefrom being hereby assumed by Customer. W. ta) Company shall have the right at any and all times, with or without notice, to imme- diatelly discontinue, in whole or in part, the supply of gas hereunder if in the opinion of Com- pany a continuation of the supply under this contract would adversely affect, jeopardize or threaten adequate service to Company's domestic or commercial customers or hazard, jeop- ardize or threaten adequate servic: to other industrial gas customers having priority of service under Company's Schedule of Industrial Rates; and Customer hereby authorizes Company so to do and agrees that Company shall never be liable in damages or otherwise on account of having exercised suc,i rights. (b) Gas sold and service rendered hereunder shall be subject to the priority of service provided in the Schedule of Industrial Rates, and Customer agrees to select hereunder the rate which affords priority of service necessary and best suited to Customer's particular type of operations. When notified by Company to do so, Customer agrees to curtail or discontinue the use of gas hereunder In conformity with the service priority provided for in this contract and In the Schedule of IndustrILI Rates. If Customer classifies his business and operations as being essential to Oe public health and safety rnd considers continuity of his fuel service essential to the public wei'are, then he shall provide stand-by fuel and equipment adequate to meet his fuel requirements oaring periods of interruption of gas service under this contract. Company cannot and does not gtarantee a constant supply of gas hereunder. Inability or failure of Company to deliver or Customer to receive gas or perforn this contract shall not be the basis of claims for damages sustained by either party or for breach of contract when due to Act of God or governmental autho-ityy, the elements, labor troubles, fires, accidents, breakage, repair or change of or obstructions Ir, pipelines, equipment or machinery, depletion or failure of gas supply, fluctua- tions In gas pressure, demands in excess of the capacity of Company's equipment, pipelines, or sources of gas supply, or other causes or contingencies reasonably beyond the control of either party hereto. • V. If Customer shall fail to pay bills for service within twenty (20) days from date they are rendered hereunder or shall otherwise default under this contract, Company may without notice, suspend service and deliveries of ggas and such suspension shall not prevent enforcement by Company of any other of its legal rights. Waiver by Compan of a particular default here- under stall not be deemed a waiver of subsequent defaults whether similar or dissimilar. VI1 This contract supersedes and exthiguishes all prior contracts between the parties or their respective predecessors In interest, for gas at the location and for the purposes herein desig- nated; and constitutes the entire contract between the parties. No representation or statement o: any representative of Company shall be a part of this contract nor an inducement to the exe- cution hereof unless Incorporated fully herein. LONE :;D•A GAS COMPANY _ RATE SCHEDULE NO. 391 ^ CLASS OF SERVICE: 1 , Residential and Commercial Summer Air Conditioning. MONTHLY RATE: Applicable to gas consumed by Texas residential and commercial summer air conditioning customers between the meter reading dates in May and Octeber each year. Residential: The regular general service rate shall apply to the first 8,000 cubic feet consumption (regular consumption) per month. Beginning with tha first step, the regular general service rate less 25% shall be applied to all gas used in excess of 8,000 cubic feet. These amounts will be combined to determine the total bill. A bill is also calculated by applying the regular general service rate to the total consumption. The two bills are compared and the lower of the two is the amount billed 3 to the customer. Commercial: There are two ways of determining the air conditioning consumption on a commercial account. One way is to com!,ute the air conditioning MCF per nominal ton installed capacity from :he following schedule: June - 8 MCF per nominal ton installed capacity July - 9 MCF per nominal ton installed capacity August - 9 MCF per nominal ton installed capacity September - 8 MCF per nominal ton installed capacity r ~ October - 5 MCF per nominal ton installed capacity The other way of determining the air conditioning MCF is to have a separate meter that measures the air conditioning consumption. In either case, the air conditioning consumption cannot exceed 95% of the total consumption. The regular general service rate shall apply ' to gas consumed for all'purposes other than for summer air conditioning. Beginning with the first step, the regular general service rate less 25% shall be applied to the air conditioning consumption. These amounts are combined to determine the total bill. A bill is also calculated by applying the regular general service rate to the total consumption. The two bills are compared and the lower of the two is the amount billed to J the customer. w PROMPT PAYMENT PROVISION: Net rate shall apply to all bills paid within ten days from monthly billing date. Thereafter, gross rate shall apply. i'. Issued M.,y 28s 1976 LANE ;TAR GA:; COMPANY i I (Rate Schedule No. 391, Page 2) ' OTHER PROVISIONS: The normal gas cost adjustment applicable in each town will be applied to the total :onsumption including gas consumed for purposes other than air conditioning. Any other billi~,g adjustments applicable to the regular rates shall also apply to billing under this rate. EFFECTIVE IN THE FALLOWING TOWNS: r This supplemental rate is available to all residential and commercial summer cir conditioning customers throughout the company's Texas operating area except in those towns set out on Rate Schedule No. 390. • Iasucd May ?R• 1916 FORM 7289 11-75 Lone Star Gas Company RATE SCHEDULE FOR PUBLIC FREE SCHOOLS • M STATE OF TEXAS Availability: Upon the terms and conditions recited herein and in the contract of which this Pate Schedule forms a part, the rate set out below shall be available to any fully tax supported public free school, including high school and lower grades, using gas for building heating. In such cases this rate shall also apply to gas used for other purposes incidental to the operation of that school's facilities, including, but not necessarily limited to, water heating, home economics training, laboratory work, voca- tional training, and food preparation for students, faculty, and persons other than the general public, provided all usage may. be measured through a single meter installation. Gas delivered hereunder shall not be available for residential dwelling use, for standby use, nor for redelivery or resale to others, nor t.i private schools or tax supported schools above the high school grade level, Measurement And Billing: Amounts billed shall be due and payable with!n ten (10) days from monthly billing date. When any single school district or city or town has school buildings at more than one location therein, the Company will combine the volume of gas delivered to it for the aforesaid uses for the purpose of monthly billing at this rate. Curtailment: Service rendered under this rate shall be subject to curtailment, interruption or discontinuance in any particular service area when necessary In the judgment of the Company for it to maintain adequate service to its Residential and Commercial Rate customers, Military Rate customers, and Industrial customers served under Rate I of Schedules of Industrial Rates, but shall receive preference over service rendered under other rates in the Company's Schedules of Industrial Rates. Monthly Rate: First 150 Met @ $1.36 per Mcf Over 150 Mcf @ 1.31 per Mel Minimum Monthly Bill $10.00 per Meter Installatiun. Adjustrrent For Hest Content: This rate is based upon the delivery of gas having in average total heat value of 1,000 British thermal units per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 British thermal units per cable foot, the measured volume forsuch period shall be increased or decreased, respectively, in the percen- tage by which the average heating value of such gas is greater or less than 1,000 British thermal units per cubic foot. The monthly average total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square inch and at a tempera- ture of 60 degrees Fahrenheit shall he determined at Company's expense by the use of standard tests or the use of recording calorimeters. J Adjustment for Gas Cost: The foregoing rates are based upon a weighted average cost of gas purchased by Lone Star Gas Company of 80 cents per 1,000 cubic feet (Mcf) based on a preuure of four ounces per square inch above an wsumed atmospheric pressure of 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit, The "weighted average cost of gas purchased;" as used herein, shall be cimputed by dividing the total amount paid or accrued by Company (as reflected by Company's Gas Purchase Accounts), including any product'lon, severance, dedication or gathering tax paid or accrued by Company directly or by voy of reimbursement to its gas suppliers, to producers, processors, transporters, or other sellers of gas in the latest available fiscal month by the total volume of pipeline quality gas in Mcf purchased by Company during said period. Whenever the weighted eveiage cost of gas purchased is more or less than 80 cents per Mcf, the amount billed under this schedule shall be increased or decreased by the amount of such difference multiplied by the consumption in Mcf, without adjustment for heating value, In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one-hundredth of one cent Adjustment For Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a proportionate part of all taxes or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance or contract for the use of the public streets, alleys end thoroughfares in the conduct of Company's business, or because of Company's oc- cupation; and Customer shall pay Company an amount equivalent to a proportionate part of any new tax or increased tax or any other governmental Imposition, rei.t•,1, fee or charge levied or charged after July 1, 1975, (except state, county, city, and special district ad valorem taxes, taxes on net income and any p•oduction or similar tax included In the weighted average cost of gas as provided In the gas cost adjustment clause). 40 FORM 3167 rr-75 tone Star Gas Company SCHEDULE OF INDUSTRIAL RATES • M STATE OF TEXAS Fvailability: The rates hereinafter set out are available to gas customers who can be served from, and without exceeding the capacity of, Company's existing system upon the terms, conditions, and limitations recited herein, in the contract of which this Schedule of Industrial Rates forms a part, and in reasonable rules and regulations adopted by Company. These rates shall not be available for standby use. The gas delivered hereunder is for the individual use of Customer and shall not be resold. These rates shall not be available to resioential customers and shall be available to schools, churches, rooming or boarding houses, orphanages, homes for the elderly, dormitories, hospitals, motels, hotels, apartment buildings or other buildings used primarily as living quarters, or any other use which may be considered human need, only if Customer has standby equipmv.1 for the use of other fuel of at feast equal capacity to that normally required by the Customer, end fuel in storage in an amount adequate to fulfilf Customer's fuel requirements during periods of curtailment, interruption and discontinuance of gas service. Company shall not he responsible for determining the type or amount of standby fuel or equipment; such deter. mination shall be the sole responsibility of Customer. This ;chedule of Industrial Rates is based on Customers use of gas service for twelve cull months during the contract year. Thir Schedule of Industrial Rates may he applicable to service to a Customer's temporary facilities for less than twelve full mont' s during a contract year by the payment by Customer to Company, upon execution of such temporary contract, of a nor refundable amount which shall he the estimated cost of installing and removing facilities necessary to provide such servi.e. Measurement And Billing: The gas shall be measured at a single meter location and shall not be combined with gas measured through eny other meter location for the purpose of billing under this schedule. Amounts billed shall be due and payable within ten (10) days from m mthly billing date. The first step of each rate shall be applicable when the service period for which bill is rendered is for 16 days or more. Whenever the initial service period is for 15 days or less during a billing period, the Customer's consumption shall be carried forward and added to Customer's consumption during the next succeeding monthly service period for billing purposes. Curtailment: Subject to governmental regulation, gas service under this Schedule of Industrial Rates shall be s%.:;ect to curtaii,rent, interruption or discontinuance in a particular service area when necessary in thejudgment of the Company for it to mair'°in Residential and Commercial Rate service and Industrial service having a higher priority. Service shall be furnished by Company and received by Customer in accordance with the following order of priority: l , • (1) Residential and Commercial Rate service (1) Military Rate service (2) Industrial Rate 1 service The following priorities in descending order shall )e observed as sub-priorities for Rate 1: 1. Small commercial (less than 100 Mcf on a peak day). 2. Large commercial (100 Mcf or more on a peak day) and industrial requirements for pilot lights and plant protection gas. 3. Small industrial (less than 3,00G Mcf on an average day) requirements for feed- stock and process gas needs. 4. Large industrial (3,000 Mcf or more on an average day) requirements for feedstock and process gas needs. 5. Industrial requirements not specified in priorities 3, 4, or 6. 6. (a) Boiler and other indirect flame applications (300 Mcf or less on an average day) with alternate fuel capabilities. (b) Bo;ler fuel and other indirect flame applications (more than 300 Mcf on an aver- age day and less than 3,000 Mcf on en average uay) with alternate fuel capablities. (c) Boiler fuel and other indirect flame applications (3,000 Mcf or more on an aver- age day) with alternate fuel capabilities. (3) Public Free School Rate service (4) Industrial Rate 2service (5) Industrial Rate 3 service (5) Special Electric Generation service (6) Dump interruptible sales made subject to interruption or curtailment at Seller's sole dis- cretion under contracts or tariffs which provide in effect for the sale of such gas as Seller may be egreeable to selling and Buyer may be agreeable to buying from time to time. Monthly Rates: Subject to Company's limitations on the availability of each rate, Customer shall receive service under its choice of one of the following rates in accordance with the rate selected by Customer as provided in the contract: RATE 1 First 125 Mcf or less $ 171.25 IUI over 125 Mcf @ 1.33 RATE 2 First 600 Mcf or less $ 756.00 All over 600 Mcf 0 1.185 RATE 3 First 1,250 Mcf or less $1,431.50 All over 1,250 Mcf 1.125 Adjustment For Heat Content: This Schedule of loaustrial Rates is based upon the delivery of gas having an average total heat value of 1,000 British thermal units (Btu) per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 Btu Vier cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than 1,000 Btu per cubic foot 'rho monthly aver- age total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square inch and at a temperature of 60 de- grees Fahrenheit shall be determined at Company's expense by the use of standard methods and procedures. Adjustmen' for Gas Cost: Tie foregoing rates are based upon a weighted average cost of gas purchased by Lone Star Gas Company of 80 cents per 1,000 cubic feet (Mcf) based on a pressure of four ounces per square inch above an assumed atmospheric pressure cf 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit. The 'Weighted average cost of gas purchased;' as used herein, shall be computed by dividing the total amount paid or accrued by Company (as reflected by Company's Gas Purchase Accounts), including any production, severance, dedication or gathering tax paid or accrued by Company directly or by way of reimbursement to its gas suppliers, to producers, processors, transporters, or other sellers of gas in the latest available fiscal month by the total volume of pipeline quality gas in Mcf purchased by Company during said period. Whenever the weighted average cost of gas purchased is more or less than 80 cent: per Mcf, the amount billed under this schwule shall be increased or decreased by the amarnt of such difference multiplied by the consumption in Mcf, without ad- justment for heating value. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one. hundredth of one cent. Adjustment for Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a proportionate part of all taxes or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance orcontract for the use of the pubile streets, alleys end thoroughfares in the conduct of Company's business, or because of Company's oc- cupation; and Customer shall pay Company an amount equivalent to a proportionate part of any new tax or increased tax or any other governmental imposition, rental, fee or charge levied or charged after July I, 1915, (except state, county, city, and special district ad valorem taxes, taxes on net income and any production or similar tax included in the weighted average cost of gas as provided in the gas cost adjustment clause). i i FORM 3:6e ++-7s lone Star Gas Company AIR CONDITIONING RIDER - M STATE OF TEXAS Application: Applicable to gas service under Rates 1, 2, end 3 of Company's Schedule of Industrial Rates-M, and under Company's Rete Schedule for Public Free Schools-M, when the customer uses such services for process and/or comfort cooling purposes during the months sho,in herein. The provisions of the rates specified above are modified by the attachment thereto of this rider only as shown herein. Monthly Rate: The following rates shall be applicable to correspond with the rate specified in the contract to which this rider is attached and shall he subject to the terms and conditions, including adjustments, set forth in the Schedule of Industrial Rates-M or in Rate Schedule for Public Free Schools-M. RATE I All Gas Delivered Under This Rider @ $1.26 per Mcf RATE 2 All Gas Delivered Under This Rider @ $1.11 per Mcf RATE3 All Gas Delivered Under This Rider @ $1.11 per Mcf RATE FOR PUBLIC FREE SCHCOLS All Gas Delivered Under This Rider @ $1.24 per Mcf Volume Determination: The portion of the monthly gas consumption subject to this air conditioning rider shall be computed on the following basis: April 3 Mcf per nominal ton installed capacity; May 5 Mcf per nominal ton installed capacity; June 8 Mcf per nominal ton installed capacity; July 9 Mcf per nominal ton installed capacity; August 9 Mcf per nominal ton installed capacity; September 8 Mcf per nominal ton installed capacity; October 5 Mcf per nominal ton installed capacity; November 3 Mcf per nominal ton installed capacity. Installed capacity shall mean name-plate capacity of the plant normally and regularly used for maximum conditions and does not include standby or unused facilities. The Mcf so computed shall not exceed 95% of the total monthly consumption. All gas consumption in excess of the volumes subject to this air conditioning rider shall be billed in accordance with the terms of the Rate Schedule to which this rider is attached. Customer Name Number of tons applicable under this Eder FORM 5655 7-76 LONE STAR GAS COMPANY STATE OF TEXAS SCHEDULE OF INDUSTRIAL RATES-M FOR AGENCIES OF THE STATE OR FEDERAL GOVERNMENT The rates of Lone Star Gas Company for industrial gas service hereinafter quoted are available to any industrial gas customer which is an agency of tha state or federal government and can be served from and without exceeding the capacity of Company's existing system upon the terms, conditions, and limitations recited herein. Service under this Schedule of Industrial Rates is subject to Company's rules, regulations and standard operating procedures. The rates shall not be available for standby use, but shall be available only to customers purchasing from Company their entire natural gas fuel requirements at the premises and location at which service is rendered hereunder. The gas delivered hereunder is for the individual use of customer and shall not be resold. These rates shall not be available to residential customers and shall be available to schools, churches, rooming or boarding houses, orphanages, homes for the elderly, dormitories, hospitals, motels, hotels, apartment buildings or other buildings used primarily as living quarters, or anY other use which may be considered human need, only if Customer has standby equipment for the use of other fuel of at least equal capacity to that normally required by the Customer, and fuel in storage in an amount adequate to fulfill Customer's fuel requirements during periods of curtailment, interruption and discontinuance of gas service. Company shall not be responsible for determining the type or amount of standby fuel or equipment; such determination shall be the sole responsibility of Customer. Measurement And Billing: The gas shall be measured at a single meter location and shall not be combined with gas measured through any other meter location for the purpose of billing under this schedule. Amounts billed shall be due and payable within ten (10) days from monthly billing date. e first step cf each rate shall be applicable when the service period for which bill is rendered is or 16 days or more. Whenever the initial service period is for 15 days or less during a billing period, the Customer's consumption shall be carried forward and added to Customer's consumption during the next succeeding monthly service period for billing purposes. Curtailment: Subject to governmental regulation, gas service unde,- this Schedule of Industrial Rates shall be subject to curtailment, interruption or discontinuance in a particular service area when necessary Customer Name Account No. Service request0 at Rate Requested by road. ❑ outside ❑ city Lim Its Fiscal Year 6u is ❑ is not ❑ ramund thou ?PMS Effective Date in the judgment of the Company for it to maintain Residential and Commercial Rate service and Industrial service having a higher priority. Serviceihall be furnished by Company and received by Customer in accordance with the following order of priority: I (1) Residential and Commercial Rate service (1) Military Rate Service (2) Industrial Rate l service The following priorities in descending order shall be observed as sub-priorities for Rate 1: L Small commercial (Less than 100 Mcf on a peak day) 2. Large commercial (100 Mcf or more on a peak day) and industrial requirements for pilot lights and plant protection gas. 3. Small industrial (less than 3,000 Mcf on an average day) requirements for feedstock and process gas needs. 4. Large industrial (3,000 Mcf or more on an average day) requirements for feedstock and process gas needs. 5. Industrial requirements not specified in priorities 3, 4 or 6. 6. (a) Boiler and other indirect flame applications (300 Mcf or less on an average day) with alternate fuel capabilities. (b) Boiler fuel and other indirect flame applications (more than 300 Mcf on an average day and less than 3,000 Mcf on an average day) with alternate fuel capabilities. (c) Boiler fuel and other indirect flame applications (3,000 Mcf or more on an average day) with alternate fuel capabilities. (3) Public Schools Rate service (4) Industrial Rate 2 service (5) Industrial Rate 3 service (5) Special Electric Generation service (6) Dump interruptible sales made subject to interruption or curtail- ment at Seller's sole discretion under contracts or tariffs which provide in effect for the sale of such gas as Seller may be agreeable to selling and Buyer may be agreeable to buying from time to time. Customer shall receive service under its choice of one of the following rates, and the rate so selected by Customer shah remain in effect until changed by Customer or Company in the manner herein provided. Customer may, not later than twenty (20) days after the beginning of any fiscal year of Customer, notify Company in writing of its election to receive service during such fiscal year tinder any other rate within Company's then applicable Schedule of Industrial Rates for Agencies of the State or Federal Government. Company may revise its Schedule of Industrial Rates for Agencies of the State or Federal Government, and any such revised Schedule of Industrial Rates shall be applicable to the gas purchased by Customer from and after the end of the fiscal year in which such revision is made. For the purposes hereof the fiscal year for Federal agencies shall begin on July I of each year and for State agencies on September 1 of each year. Monthly Rates: Subject to Company's limitations on the availability of each rate, Customer shall receive service under its choice of one of the following rates in accordance with the rate selected by Customer as provided in the contract: RATE 1 First 125 Mcf or less S 171.25 All over 125 Mcf @ 1.33 RATE 2 First 600 Mcf or less S 756.00 All over 600 Mcf @ 1.185 RATE 3 First 1,250 Mcf or less $1,437.50 All over 1,250 Mcf @ 1.125 Adjustment for Heat Content: This Schedule of Industrial Rates is based upon the delivery of gas hating an average total heat value of 1,000 British thermal units (Btu) per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 Btu per cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than 1,000 Btu per cubic foot. The monthly average total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square inch and at a temperature of 60 degrees Farenheit shall be determined at Company's expense by the use of standard methods and procedures. Adjustment for Gas Cost: The foregoing rates are based upon a weighted average cost of gas purchased by Lone Star Gas Company of 80 cents per 1,000 cubic feet (Mcf) based on a pressure of four ounces per square inch above an assumed atmospheric pressure of 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit. The "weighted average cost of gas purchased," as used herein, shall be computed by dividing the total amount pa'd or accn:ed by Company (as reflected by Company's Gas Purchase Accounts), including any production, severance, dedication or gathering tax paid or accrued by Company directly or by ;.'3y of reimbursement to its gas suppliers, to producers, processors, transporters, or other sellers of gas in the latest available fiscal month by the total volume of pipeline quality gas in Mcf purchased by Company during said period. Whenever :he weighted average cost of gas purchase J is more or less than 80 cents per Mcf, the amount billed under this schedule shall be increased or decreased by the amount of such difference multiplied by the consumption in Mcf, without adjustment for heating value. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one-hundredth of one cent. Adjustment for Taxes, Licenses, Fees, Charges, And Rentals: Customer shall pay Company an amount equivalent to a proportionate part of all tax, s or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance or contract for the use of the public streets, alleys and thoroughfares in the conduct of Company's business, or because of Company's occupation; and Customer shall pay Company an amount equivalent to a proportionate part of any new tax or increased tax or any other governmental imposition, rental, fee or charge levied or charged after July 1, 1974, (except state, county, city, and special district ad valorem taxes, taxes on net income and any production or similar tax included in the weighted average cost of gas as provided in the gas cost adjustment clause). a~ GENERAL TERMS 1. Gas shall be delivered to Customer at Company's operating pressure at the point of delivery. The point of delivery of gas to Customer hereunder shall be at the point where the gas first passes from Company's equipment into Customer's equipment, at which point the title to and ownership of the gas shall vest in Customer. Company shall not be liable for any loss, damage, or injury resulting from the gas or its use after it leaves the aforesaid point of delivery, all risks thereof and therefrom being hereby assumed by Customer. H. (a) The gas shall be measured at a single meter location by standard meter or meters furnished and Installed by and at Company's expense ata place mutually agreed upon. Customer shall provide, In accordance with Company's specifications, the necessary service line on Customer's premises to connect with Company's line and suitable space and easement for Company's lines and other equip- ment. Customer shall use due care to protect Company's property which Is located on Customer's pre:-qises from damage and shall permit no person other than an agent of Company, or a person other then an agent of Company, or a pet son otherwise lawfully authorized, to tamper with, inspect or remove. same. All property belonging to Company and located on Customer's premises shall be removable by Company at any time during the term of this contract and within a reasonable time after its termination or after reasonable notice of Customer's desire to have such property removed, title thereto remaining in Company at all times. Company shall have full and free ingress to and egress from Customer's premises for the construction, inspection, maintenance, repair and removal of Company's property thereon or for any purpose connected with the service of gas hereunder. (b) Customer agrees to keep the gas-burning equipment and appurtenances which may be located on the aforesaid premises ingoodconditionandin conformity with the requirements of any applicable city ordinance, state law, rule, ordrror regulation of any governmental authority having jurisdiction and to comply with all of Company's reasonable rules and regulations. (c) For the purpose of this contract the unit of measurement shall be 1,000 cubic feet of gas at the pressure at which it is measured, except when such gas is measured at a gauge pressure in excess of 4 ounces per square inch. The volume of gas measured at a gauge pressure in excess of 4 ounces per square inch shall be e.ijusted by computation in accordance with the Ideal Gas Laws, corrected for deviation, to the volume that it would occupy at a gauge pressure of 4 ounces per square inch. In such computations a value rf 14.4 pounds per square inch shall be used for atmospheric pressure and a value of 60 degrees Fahrenheit shall be used for the base and flowing temperature of the gas. (d) Meter measurements computed by Company according to its standard operating practices shall be conclusive except where meter is found to be inaccurate by as much as 3 per cent fast or slow or failed to register, in either of which cases Company shall repair or replace the meter. The quantity of gas delivered while the meter was inaccurate or failed to register shall be determined by correcting the error if thepercentageof error Is ascertainable by calibration test or mathemati- cal calculation. If not so ascertainable, then it shall be determined by estimating the quantity on a basis of deliveries under similar conditions when the meter was registering accurately. No adjust- ment or correction for meter Inaccuracy or failure shall be made for a period longer than 90 days. III. Gas sold and service rendered hereunder shall be subject to the priority of service provided in the Schedule of Industrial Rates, and Customer agrees to select hereunder the rate which affords priority of service necessary and best suited to Customer's particular type of operations. When notified by Company to do so, Customer agrees to curtail or discontinue the use of gas hereunder in conformity with such notice according to the service priority provided for in this Schedule of Industrial Rates. If Customer classifies his business and operations as being essential to the public health and safety or otherwise considers continuity of his fuel service essential, then he shall pro- vide stand-by fuel and equipment adequate to meet his fuel requirements during periods of inter- ruption of gas service under this contract. Company cannot and does not guarantee a constant supply of gas hereunder. Inability or failure of Company to deliver or Customer to receive gas or perform this contract shall not be the basis of claims for damages sustained by either party or for breach of contract when due to Act of God or governmental authority, the elements, labor troubles, fires, accidents, breakage, repair or change of or obstructions in pipelines, equipment or machinery, depletion or failure of gas supply, fluctuations in gas pressure, demands in excess of the capacity of Company's equipment, pipelines, or sources of gas supply, or other causes or contingencies reasonably beyond the control of either party hereto. A~96-WARRANTY DEED-With Cmc.l. d Capomtioe AekmvWjmmU MARTIN S"=wy Co. Danu THE STATE OF TEXAS, I Know All Men By These Presents: County of...... DENTON DEED RECORDS That VELLETTIA MOONEYHAM, Sarah Francis M. Miller, Bobby Jean M. Paraske%rc Gussie Dell M. Minnigh and Rose Augustine M. Usry. 18306 of the County of Denton State of Texas for and in consideration of the Eum of Five thousand eight & 40/100 DOLI.ARS, to me, in band paid by the City of Denton, Texas, a Municipal Corporation bave Granted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto the said City of Denton, Texas, a Municipal Corporation Of the County of Denton , State of Texas all that certain All that certain lot, tract or parcel of land lying and being situate, in the City and County of Denton, State of Texas, and being part of the A. Hill Survey, Abstract No. 623, and being part of a tract of land as conveyed from W. H. Parker to R. C. Mooneyham by deed dated June 28, 1937 and recorded in Volume :64, Page 562 of the Deed Records of Denton County, Texas and more particularly described as followst BEGINNING at the northwest corner of said Mooneyham Tract, said point of beginning lying in the existing south right of way line of Eagle Drive at the intersection of the south right of way line of Eagle Drive and the east right of way lino of new Carroll Boulevard and also being the northeast corner of a tract of land conveyed by James H. Normile to Joseph L. Normile by deed dated February 9, 19501 THENCE east along north boundary line of said Mooneyham Tract, same beinc the south right of way line of Eagle Drive a distance of 169 feet to a point for a corners THENCE south 820 53' west a distance of 104.8 feet to a point, said point being 13.0 feet south of north boundary line of said tract, same being the south right of way line of Eagle Drivel THENCE west 13 feet south of and parallel with the north boundary line of said tract, same being the south right of wa1 of Eagle Drive, a dis- tance of 65.0 feet to a point: for a corner on the west boundary line of said traotl Hot 804 w 2U 114ENCt north along the west boundary line of said I.ract a distance of 13 eat to'the vl~ca of beginning and containing 1,52:,00 square feet of an , more o ess..., a, L IN Yep 804 wE 214 TO HAVE AND TO HOLD the above described premises, together with all and singular, the rights and appurtenances thereto in anywise belonging unto the said City of Denton, Texas, a Municipal Corporation, its successors 11f7rand assigns forever; and I do hereby bind myself, my heirs, executors and administrators, to Warrant and Forever Defend all and singular the said premises unto the said City of Denton, Texas, a :4unicipal Corporation, its successors WW and assigns, against every person whomsoever lawfully claiming, or to claim the same, or any pin thereof. VAuws my hand at Denton, Texas this day of Witnesses at Requ tor: r.. r rrrr.._._..r...rC~o,4s L......rr..r..r . J, qTTIAy~IE,Y w.. N.. N. W.YY. Mr.W.~..~.rrr.r.... r r. r..r.urr..rrrrw.. !y~77~/ r•".`N4/~/~A/~. ✓.h lr r!~~~~r,ir..~/..•IIiMN... 1'CSyCuI'/+-..I.R.~~•w1..4.Jq. r r..r ACKNOWLEDGMENT THE STATE OF TEXAS, i BEFORE ME, the undersigned authority, DENTON 1{ .FranC S_ ........_...I.......-.-......... _ 1a and for raid County, Tau on this day personally appeared._ Vellettia Monne ham Sarah. M. Miller and Bobbie Jean M, Paraskevas known to me It .whose namt.SAU %ubs:n'bed to the foregoing instrument, and acknowledged to me that they :,exlcbte¢theiuob Purposes and consideration therein exprasea GI I6ER h&, HANQ jk1 D SEAL OF OFFICE, 'I'bis.. OT4 A.D. 191A.... - rr• C ` Notary Public,- Denton...----..-_County, Tau My Commission Expisq June..__ -.._...__l._............ 19-11 ACKNOWI.EDCHENT THE STATE OF TEXAS, _ BEFORE ME, the undersigned authority, COUNTY OF_cI~IQ__.._..._ . ~1 1 to and for said County, Tt-a, on this day personally appeared._..y,p~0ee....4 _d7n i ` f IEbowa to me to' Tke penoo_.~_..whox name...........GA._.--.aubxa'bed to the foregoing Instrument, sad acknowledged to me that _.he~exwuW the same for the purposes and con& Itration therein expressed. Ain /y r GIVEN UNDER MY HAND AND SEAL OF OFFICE, Thls._7A ~ydxy~ Of....... A.D. 19!~ 40 40 0 (US rip # 1 Notary Pubbc. E R I E-V UUE•$&b1W4- -...County, Tan Notary Publk In and for 1 4bd% Cou;ty"Tnu My ComyntfPJiPy It g~ircs' iur» k; }4TH _ 19 CORPORATION ACKNOWLEDGMENT THE STATE OF TIE S, TI £Gs N t T1 _ BEFORE ME, the undersigned authority, COUNTY , I In and for said County, Tens, on this day penonaRy appeared_ YrCdlJ% :Qr_ r_.._._._......., known to me to be the person Lod officer whose name 1; subscribed to the foregoing Instrument and acknowledged to me that the same was the act of the said............ a corporation, and that be executed the same as the ad of such corporation for the purposes and consideration tbenln espresad, and in the capacity therda stated A.D. 1Q 4 GIVEN UNDER MY HAND ..ND SEAL OF OFFICE, This ........~C~......day ofi iii (LS.) . Notary PubBc,__ &44 c- k ~Ar G My Commission Expires June .................._Ir..7 .....-.,L._...., THE STATE OF TEXAS, COUNTY County Get% of the Coualy Court of said County, do hereby certify that the fcregoing instrumnn of writing dated an ....day ef_ _ A.D. 19....._, with lu Certldcote of Autheatiutfon, wu filed for record is my office ca lba__..............day A.D. 19-_._., at........ ._...o'clock.__....__ M., and was duly recorded this....__...... dty A.D. 10_. at................. o'cIodL__.._..__f, In the Records of said County, In Vol- o[ U a _ , oo Pagtsr WITNESS my hand and seal of the County Court of said County, at my office to _ _ 1ha day and year last above written. II Clerk Couay CouR. _ p County, Twat Deputy. i coo . 61 L[ d3S ~ NgLPadws~s n ssce►'~o 9°S'fol~ ~ . fPwoW 0 N w l oco,, q 4a~ 1: 1 k~j a maiaq 1 i ai HnP saM Dos aown V it :i4 v }1Nf10~ 141 Oad~ si ~uno~ oolu •11871 sfYal pow m I g r 1 .f;d i E i v 39Yd O NA ] r I ( d t ti tiF. n Statement by President C.C. Nolen of North Texas State University before Denton City Council meeting Tuesday, July 20, 3.976. • Statement by Academic Vice-President Or. Miles Anderson of North Texas State University before Denton City Council meeting Tuesday, July 10, 1916. L C Aj EXHIBIT B THE STATE OF TEXAS X AFFIDAVIT OF COUNTY OF DENTON X MILES E. ANDERSON Before me, the undersigned authority, personally appeared MILES E. ANDERSON, who was duly sworn by me and on his oath V stated the following: "I am Miles E. Anderson, Vice-President for Acaeemic Affairs ad interim at North Texas State University. • "I was furnished with a detailed study of the educational program and facilities requirements of the Department of Health, Physical Education and Recreation of North Texas State University prepared by a committee appointed for that purpose by the University President. The Committee was made up of faculty members and students in this department and of the associate dean of the College of Education of the University, and was known as the Committee on Physical Facility Needs for Health, Physical Education and Related Areas. "The Committee was formed because existing facilities for health, physical education and recreation had been found to be inadequate on the basis of a comprehensive campus plan prepared for the University by the planning firm of Caudill Rowlett Scott of Houston, Texas. "The foregoing planning process revealed that existing facilities for health, physical 'education and recreation are seriously inadequate on tt,e criteria of size, suitability for program, age and condition of facilities, and location on the campus. "To provide professional assistance in planning new facilities for health, physical education and recreation, the Board of Regents of North Texas State University retained tho firm of Jarvis Putty Yarvis of Dallas, with Mr. Donald E. Jarvis as project architect. "The aforementioned Committee made a determination of the assignable apace required for the health, physical education P--page 1 of' 3 pages and recreation program of the University. This was based on a detailed study of the weekly student contact hours required for organized classes, class laboratories, and activity instruction, together with the office and research space needed for the department's faculty. "The existing program at current enrollment levels requires 205,000 square feet of assignable building space. At present, all of the University's facilities for this purpose total 90,000 square feet. Much of this is too old and unsuitable for the proper conduct of the program. "The design for the health, Physical Education and Recreation Center accommodates the requirement for assignable space by providing new facilities to be used in conjunction with existing facilities in the Men's Gymnasium and the Coliseum. "Furthermore, the Committee study determined that the existing outdoor activity space for the Department falls short of meeting program needs and that an additional 520,000 square feet of outdoor activity space is required. The design for the Health, Physical Education and Recreation Center provides for 141,000 square feet of outdoor space toward this requirement. "The Health, Physical Education and Recreation Center must be located within the planning boundaries approved by the Board of Regents of North Texas State University and sub- sequently by the Coordinating Board, Texas College and University System s "The project architect has thus prepared a design for tho Health, Physical Education and Recreation Center which (1) complies with campus boundaries established by the Coordinating Board, (2) consolitates in one area activities now being conducted in nine scattered facilities, (3) provides adequato educational facilities not now in existence, and XAhibwt D.-page 2 of 3 pages l J (4) replaces obsolete! facilities which are inadequate and l unsuitable for the existing program. "The site selected for the Center is the only one which can accomplish all of these purposes, and this cannot be done unless the area now occupied by Avenue D between Highland and Chestnut an4'%;y Prairie Street between Avenues C and E is uzed as an integral part of the site." MILES E. ANDERSON SWORN TO and SUBSCRIBED by MILES E. ANDERSON before me the undersigned authority on this 3rd day of March 1976. iJ } Notary Public in and for Denton County, Texas i Exhibit B--page 3 of 3 pages .w r Statement of Architect Donald Jarvis read by Dan Collingsworth, University Architect at North Texas State University, before Denton City Council meeting Tuesday, July 20, 1976. THE STATE OF TEXAS X AFFIDAVIT Or COUNTY OF DALLAS X DONALD E. JARVIS Before me, the undersigned authority, personally appeared DONALD E. JARVIS, who was duly sworn by me.and on his oath stated the following: "I am a registered professional architect in the State of Texas and have been retained by North Texas State Univ- ersity as proj?ct architect for the design of a Health, Physical Education and Recreation Center for the University. In recommending a final location for these new facilities the following criteria were deemed to be controlling: "1. Locate the new facilities close to existing physical educational buildings, especially the Men's Gymnasium, for efficiency in staffing, economy of operation, and more practical multiple use of dressing and activity areas. "2. Locate the facilities where students may move from dressing rooms to outdoor activity fields without crossing streets. 13. Locate the activity fields on terrain that is relatively open and not sharply sloping or heavily wooded. 04. Locate the facility where student pedestrians may approach it easily from main campus walkway systems and where vehicular access is convenient from the west. 05. Locate the facility where its construction can be accomplished in a logical sequence. "The ground area required by the open activity fields and buildings is considerably larger hhan any of the separate blocks bounded by existing streets. To meet the criteria set forth herein above, it is necessary to close certain city streets to obtain the required area for the construction of these facilities. "The specific site selected for this purpose required that Avenue D be closed as a city street between Highland and Chestnut and that Prairie Street be closed between Avenues C and E. This is the only area within the planning boundaries as designated and approved by the Coordinating Board, Texas College and University System for North Texas State University which satisfies the aforementioned criteria as the site for the Health, Physical Education and Recreation Center at the Unl;~riity." DONALD E. JA IS SWORN TO and SUBSCRIBED by DONALD E. JARVIS before me the undersigned authority on this 3rd day of March 1976. Notary Public in and for Dallas County, Texas Letter from Robert A. Nichols, Denton businessman, read by his son, David Nichols, Denton businessman, before Denton City Council meeting Tuesday, July 20, 1976. q Statement and letters from NTSU Regent Ken May of Lubbock and Denton native and businessman Newton Rayxor, read by Dr. Roy Busby, Assistant to the President and Secretary to the Board of Regents at North Texas State University, before Denton City Council meeting Tuesday, July 20, 1976. Statement by Dr. John Douthitt, Chairman, Department of Health, Physical Education and Recreation at North Texas State University, before Denton City Council meeting Tuesday, July 20, 1976. - r' July 13, 1976 Dear Mayor and Councilmen= Please accept the following as this citizen's judgment concerning NTSU's request for street closings on Avenue D and Prairie Street: (1) The 12 million dollar physical education complex is needed for North Texas to continue in its pursuit of excellence for its stu- dent body. The land requested is essential for a first class facility, other- wise North Texas would not be making the request. (2) This complex would encourage the continuing growth of the University and all segments of the Community that depend upon the University. Surely no one can say that North Texas is not Denton's main Indus- try. To encourage the growth of the University is to assure the pros- perity of all who live and work in this city. A recent article in the Enterprise told of only 41 single family building permits for the first five months of this year. At a rate of only S houses per month, after allowing for demolitions and obsolescence, this is practically ,a no growth status for our town. In fact we ranked only fourth in Denton County and only slightly ahead of Lake Dallas in building! This should be alarming to anyone who is interested in our community. (3) This project should not be viewed so much as a street closing as an opportunity to build. There is nothing sacred about street closings. Witness the City's own initiative in closing Austin street, Oakland street and re-routing Parkway for the benefit of the Federal government, the City and the County. The street sections asked to be closed are not' main arteries and at present serve essentially only the University community. (4) Some say "Let the Courts settle it". Is this good reasoning? The courts can only decide who has legal rights. The people of the City of Denton should decide what is bdstefor their community. A decision on the legal right to condemn 'Will actually settle nothing in a substantive way for the citizens of this community. (5) It is easy to say "no"- or pass the buck to the Courts - but I believe our City Council has the wisdom and foresight to act affirma- tively in this matter. This does not have to be a "give away?" - but neither does it have to be a bargain and sale. Surely the University would bear its share of the expense# including alternate routing of traffic. ~SSin~cerely# D Robert A. Nichols I 0,1 ~ ~ c ~ j ~l rU ~ G y~ V r))?p~ ~ i October 7, 1975 Continued (C) ORDINANCE NO. 75-33 AN ORDINANCE ANNIAING A TRACT OF LAND CONTIGUOUS AND ATIJACENT TO UIE CITY OF DINMN, TEXAS; BEING ALL TIEAT LOT, TRACT OR PARCEL OF IAND CONSISTING OF 188.9 ACRES OF LAND LYING AND BEING SITUATED IN T19" COUNTY OF DENTON, STATE OF TEXAS AND BEING IN 1111: J. SMIT'11 SURVEY, ABSTRACT NO. 1180, F. MMS1Y SURVEY, ABSTRACT No. 11021 T & P RAILROAD CUMANY SURVEY, ABSTRACT NO. 1536, AND TIE R. KNIC,IIT SURVEY, ABSTRACT NO. 702, DF.NT)N COUNTY, TEXAS; CLASSIFYING TIM SAME AS "A" AGRICULTURAL DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. t Motion was made by Mitchell, seconded by King that the ordinance be pissed. On roil call vote Stephens voted "ay:'', Ilughos voted "aye", Hitchell voted "aye", King voted "aye" and Jester voted "aye". Motion carried. 17. The Council considered an Ordinance setting rates on water and sewer. The Council was briefed by the City Manager who stated that the rates had been recommended for approval by the Utilities Board. Motion w-as made by Stephens, seconded by Mitchell that the Ordinance be tabled until a study session has been held. Motion carried. 18. (A) The following Resolution was presented: A RESOLUTION BY TIM CITY COUNCIL OF WE CITY OF DEMON, TEXAS, REIATIMI, TO CERTAIN DOCUNUMS AND CONTRACTS BETWEEN TIIE TEXAS WNICIPAL MN E_R AGENCY AND 111IRD PARTIES: RESOLVING THAT SUCII DOCLMN`fS BE FILED IN TIE- OFFICIAL RECORDS OF THE CITY; AND PROVIDING AN EFFECTIVE DATE. RHERI:AS, this governing body has heretofore authorized the execution of a contract by and between this City and the Texas Municipal Power Agency; and MI£REAS, this Council has been supplied with other documents relating to the same transactions which are to be executed by other parties, and this Council deems it proper that such documents be filed with the City Secretzry of this City in order that an official record will be maintained of all of the proceedings contemplated in connection with the financings of said Agency; therefore, BE IT RESOLVED BY WE CITY COUNCIL OF TI1E CI'T'Y OF DENPON, TEXAS: SECTION 1: That receipt of the documents entitled: (1) Preliminary Participation Agreement, (2) Contract for Development of Fuel Resources and Planning Electric Generation Facilities, (3) Contract for the Performance of Certain Duties, (4) Specification of the Manner in which Part of the Maintenance And Operating Expense's of the Corporation will be Paid by the Agency, (5) Articles of Incorporation of Texas Power Pool, Inc. (6) By-Laws of Texas Power Pool, lrc., (7) By-Laws of Texas Municipal. Power Agency, and (8) Resolution by the Board of Directors of the Texas Municipal Power Agency, relating to the authorization and issuance of $10,625,000 "TEXAS NAINICIPAL P0WER'AGR0 REVENUE BONDS, SERIES 1975". is hereby acknowledged and made a part hereof for all Iarposes. This resolution and such documents shall remain a part of the files of the city. SECTION 2; :Jothing herein shall be construed as requiring the approval of this governing bocy of any document amendatory or supplemental to the instruments attached hereto carless the same is required by the "Contract for the Development of Fuel Resources, Planning Electric Ger.aration Facilities and Performing Certain Duties", or unless the same is required by the documents attached hereto. a (Documents filed in Packet #47S0 in the City Secretary's File) • NO. 74.37 AN ORDINANCE RECEIVING AND ACCEPTING THE WORK OF IMPROVING CERTAIN DESIGNATED STREETS IN THE CITY OF DENTON, TEXAS. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HERESY ORDAINS, THAT Ordinance No. 75-46 , ordering the improvements of the hereinafter named streets and levying the assessments was pass- ed on the Gth day of November , 1975 A. D., and the work of improving the streets descr`_bed on Exhibit A, which is made a part hereof and attached hereto, has been completed, the Director of Community Development of the City of Denton having measured, examined and caused to be tested the finished improvements by the means and in the manner provided by the terms of suc?i contract and of plans and specifications therein contained, and the Director of Community Development having found that such improvements have been constructed and completed in full compliance with the terms of said contract and the plans and specifications therein contained, and having approved and accepted saia improvements, and having recommended that the City Council accept said work and improvements, it is, accordingly, ordered that said work and improvements have been found by the Mayor and City Council of the City of Denton to k~tve been per- formed and completed in full compliance with the terms of the said contract and plans and specifications, and the same is now hereby accepted and approved by the City of Denton, Texas, PASSED AND APPROVED this 3rd day of August ,A.D. l~r 76 , ELI OR HUGHES, MA R CITY OF DENTON, T AS ATTES S HOLT, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: 4UL D . I HA , C~~ATTORNEY CITY OF DENTON, TEXAS i the System, all costs, charges, and expenses of replacements and renewals of the System and all taxes, assessments or other governmental charges lawfully imposed on Agency or on the revenues of the System or payments in lieu thereof, and the deposit or payment of any and all amounts which the Agency may now and h-rearter become obligated to dept,,it into any fund or pay from revenues of the System, by law, contract, or any Bond Resolution. (d) "Annual System Budget" shall mean, with respect to a Contract Year, the budget of the Agency prepared in accordance with Section 6 her.of for such Contract Year or, in the case of an amended Annual System Budget, for the remainder or each Contract Year. (e) "Approved Project" shall mean a Project which has been approved pursuant to Section 13 of this Contract, The term does not include Projects which may be approved after the Agency is recreated pursuant to Section 16 of this contract. (f) "Bonds" shAl mean all bonds issued by the Agency pursuant to the Bond Resolution. (g) "Bond Rcsolutinn" ball mean the resolution authorizing the issuance of the "Texas Municipal Power Agency Revenue Bonds, Series 1976," and any resolution subsequently adopted by the Agency which authorizes the issuance of Bonds, including refunding Bonds, on a parity wip¢ the said Series 1976 Bonds. Subject to the provisions of paragraphs (e) and (f) of Section 14, in either of the events that (i) a City disapproves a Project (pursuant to Section 13 hereof) and elects Option One or (ii) the Agency is recreated parsuan, to Section 16 hereof and entities other than all of the Cities of Bryan, Denton, Garland and Greenville contract with the Agency to provide moneys for the payment of any obligation of the Agency, obligations [hereafter issued shall not be on a parity with the Series 1976 Bonds, and such obligations, if any, shall not be deemed to have been issued pursuant to the Bond Resolution. (h) "Contract Year" shall mean the fiscal year of the Agency as from time to time determined by the Agency; provided, however, the first Contract Year of the Agency shall begin on the effective date of this Contract and shall end on the last day of [he fiscal year of the Agency within which this Contract becomes effective. (i) "Debts" shril mean Bonds and Subordinated Indebtedness, as defined in the Bond Resolution, together with interest [hereon, and redemption premiums, if any. (j) "Debt Service" or "Debt Service Requirements" shall mean, with respect to any period, the net aggregate of the amounts required to be paid during said period on any Debts outstanding as the tame shall become due. (k) "Development Project" shall mean any one or more of the following: (i) repairs, replacements, or modifications to an existing generating facility owned In whole or in part by the Agency, and which are designed to increase or maintain an operating efficiency of the facility or (ii) preliminary and developmental work to determine whether any work should be undertaken as a Project, or engineering, legal, and financial studies in connection with the planning, development or utilization of power resources, rr (iii) any purpose for which proceeds of Bonds may be expended under the Act, except a Project. The Agency may issue Bonds (in a separate series or combined with Bonds being issued for other purposes) to provide funds for a Development Project upon compliance with the provisions for the issuance of Bonds as set forth in the Bond Resolution, but the approval of the Cities, pursuant to Section 13 hereof, shall not be required. (1) "Energy" shall mean kilowatt-hours (kwh). (m) "Piet Energy For Load" shall mean a City's net Energy generation plus Energy received from others minus Energy delivered to others at the Points of Delivery during the period under consideration. (n) "Operating and Maintenance Expenses" sly,ill mean all expenses incurred in the operation and maintenance of the System and the Agency which ure properly ace tinted for such purpose under 2 generally accepted accounting principles. Such term does not include depreciation or obsolescence charges or reserves therefoi, interest charges and charges for the payment of principal, or amortization, of Bonds or other indebtedness of the Agency. (o) "Points of Delivery" shall mean the points on the system of, or available to the Agency, as set forth in Exhibit A, as amended from time to time by the Agency and the City concerned, at which Power and Energy are made available to a City pursuant to this Contract. (p) "Power" shall mean kilowatts (kw). (q) "Project" shall mean one or wore of the following: (i) any power generating facility (or interest therein) to be constructed or acquired by the Agency as well as fuel therefor and any trans- mission facility required to connect or interconnect such generating facility with a City or otters, or (ii) any addition or improvement to a power generating facility which is then owned, in whole or in part, by the Agency, or (iii) any contract right to puchase or receive a power supply or transmission capacity (a) by the making of a pref3yment of capital costs which are associated with the supply or capacity so purchased, or (b) the execution of a take or pay contract having a duration .,f more than 10 years, including any renewals thereof, or (c) the execution of a contract to purchase Power or Energy (either or both) on an all requirements basis. The term does not include any facility financed with the proceeds of Special Contract Obligations as permitted under and defined in the Bond Resolution. (r) "Rated Capacity" shall mean the maximum load expressed in net kilowatts (kw) that a generating source (as identified in the definition of Project) is capable of supplying under good operating conditions. (s) "System" shall mean the Agency's interest in all properties (owned or operated by or on behalf of the Agency) which are financed, in whole or in part, through the issuance of obligations by the Agency for Approved Projects, System Development and Reliability Expenditures, and Development Projects, prior to the time one of the Cities disapproves a Project under the provisions of Section 13 and elects Option One under paragraph (d) of Section 13. The term also includes any contract for providing services or Power and Energy, either or both. The initial System is hereby designated as System A. The term does not include the Agency's interest in any facility financed with the proceeds of (i) Special Contract Obligations issued by the Agency as permitted under and defined in the Bond Resolution or (ii) bonds Issued to finance any Project which is not approved by all of the Cities if a City or Cities which disapprove a Project elect Option One under Section 13, (t) "System Development and Reliability Expenditures" means those expenditures which the Agency determines, under prudent utility practices, should be e: pended over a given period of time for (i) transmission and related facilities to increase the reliability r,f the delivery of Power and Energy by the Agency or (ii) the exploration for, development of or the acquisitjpn of a fuel supply or supplies in order to provide fuel for generating facilities which are not then owned or in the process of construction for and on behalf of the Agency, or (iii) repairs, replacements, or modifications to an existing generating facility (owned in whole or In part by the Agency or under construction by it) which are designed to increase the :died Capacity of such generating facility, Such expenditures which are to be paid from the proceeds of a series of Bonds shall be considered a single Project. (u) "Uniform System of Accounts" and all other accounting methods and terminology contained or referred to in this Section or elsewhere in this contract means accounting princip'es, methods and terminology followed and construed, as nearly as practicable, in conformity with the Uniform System of Accounts for Class A and Class B Public Utilities and Licensees and accounting rules and regulations thereunder prescribed by the Federal Power Commission for privately owned power companies which are subject to its Jurisdiction and engaged in business comparable to the business of the Agency, as amended from time to time, or such other system as may be required by any regulatory agency. Secdoa 3s Safe and Purchase of Power and Energy. (a) Each City during the time this Section is applicable shall: (1) Purchase and receive from the Agency all Power and Energy which it stall require for the operation of Its electric system In excess of the amount (1) supplied by any generation and 3 transmission facilities owned by it on the effective date of this Contract. tuding generating and transmission facilities under construction on such date, and improvements or extensions of generating facilities which increase the Rated Capacity of same so long ac the inere;,se during any period of two successive Contract Years does not exceed 1014 of the seme's Rated Capacity at the beginning of such period, provided the Cities and the Agency may, in writing, waive such 10% limit, and (ii) supplied from any generation facility primarily fueled fro- ^nd the construction and operation of which is incidental to the disposal of solid waste that is h.,( ,f? r constructed and owned by one or more of the Cities, together with any transmission facilities that are necessary for the transmission of Power and Energy therefrom; and (2) Binds itself to pay for al: Power and Energy purchased or otherwise acquired by it from the Aeency pursuant to this Section 3, said payment to be made at the rates and charges established pursuant to Section 7 of this Contract. The foregoing provisions or this Subsection (a) shall have no application to the purchase or exchange of Power or Energy (i) on an emergency, maintenance, or stand-by basis or (ii) on the basis of economic dispatch between the Cities and Brazos Electric Power Cooperative, Inc, (Brazos), or any one or more of such entities or (iii) under the existing pooling agreement be- tween the Cities and Brazos and future pooling agreements among the foregoing and others, all, or any combination thereof, and the Agency. (b) In the event that the Agency is not able to supply the Power and Energy required or re- quested under its power sales contracts, it shall allocate its available Power and Energy monthly among cite (i) Cities pro rata in accordance with their respective Net Energy for Load during the corresponding month of the preceding Contract Year o 'oss a governmental agency requires a different allocation and (ii) other power purchasers as may be provided by contract. The Agency shall devote its best efforts ir the acquisition, by purchase or otherwise, of the Power and Energy :squired to meet the requirements of its power sales contracts. Daring the period the Agency is unable to supply Power and Energy required or requested under its power sales contr .cts, so that an allocation of Power and Energy is made, the Cities shall be permitted (during such period) to purchase only such amounts of Power and Energy as are not supplied by the Agency. (e) The provisions of this Section do not apply to any City from and after the effective date a City (i) disapproves a Project under the provisions of Section 13 and (ii) elects Option One; nor shot the provisions of this Section apply to a City which disapproves a Project and elects Option Two. Section 4: Performance of (icrlaln Services. (a) In addition to the delivery of Power and Energy hereunder and the performance of all acts and actions incident thereto, the Agency agrees that, to the extent not performed pursuant to or as a consequence of any other Section of this Contract, it will either perform or cause to be performed, in a prudent and economical manner, the following services concerning the interrelated activities of the Agency, the Cities and otherr, as well as various combinations of such parties: (1) comprehensive planning for Power and Energy and the transmission thereof to mutt ally agreed upon load centers; (2) undertake or coordinate and monitor the design, construction and operation of joint facilities; (3) plan for and undertake or coordinate and monitor the economic dispatching of Power and Energy of the System and the systems of the Cities and other entities (to the extent permitted by contract) to which such systems are interconnected, pursuant to subsequent agreement(s) be- tween the Cities, the Agency and any other entity; (4) provide accounting and cost allocation services; and 4 (5) such other services as the Agency and a City, from time to time, shall determine to be appropriate and necessary. (b) City hereby binds itself to pay for the cost of the services [hat are to be provided by the Agency pursuant to Subsection (a) of this Section 4, such payment to be made at the rates and charges established pursuant to Section T of this Contract. Section S: Delivery of Power and Energy, (a) The Power and Energy to be furnished under this Contract shall be alternating current, sixty (60) hertz, three-phase, subject to conditions of delivery and measurement as hereinafter provided. (b) The Points of Delivery, del;very voltage and other conditions of service shall be in ;accordance with the service specifications set forth in Exhibit A attached to this Contract, as amended by the Agency and the concerned City from time to time. (c) The City shall make and pay for all connections between its facilities and the System owned by or available to the Agency at the Points of Delivery. The City shall install, own and maintain any necessary substation equipment at the Points of Delivery from the System of or available to the Agency and shall install, own and maintain switching and protective equipment of adequate design and sufficient capacity beyond such Points of Delivery to enable the City to take and use the Power and Energy supplied under this Contract without hazard to the System. In the event that the Points of Delivery set forth in Exhibit A arc not on the City's electric system, the City shall arrange for transmission of Power and Energy sold under this Contract to its system, including the installation and maintenance of any facilities required for it to receive such Power and Energy into its system. (d) Except as otherwise agreed, metering equipment shall be furnished, installed and maintained by the Agcocy at each Point of Delivery to the City at the low voltage side of the transforming cqulpment located there. Loss adjustments for lo.v voltage side or remote metering shall be as specified in said Exhibit A or as otherwise agreed by the parties. Section 6: Annual System Budget (a) The Agency shall prepare or cause to be prepared an Annual System Budget at feast ninety (90) days prior to the beginning of each Contract Year which shall itemize estimates of Anuual System Costs and all revenues, income or other funds to be applied to such Annual System Costs for and applicable to such Contract Year, Stich Annual System Budget shall also utilize and take into account forecasts, which shall be furnished by each City to the Agency at least one hundred twenty (120) days prior to the beginning of such Contract Year, of the monthly peak Power and Energy requirements estimated to be obtained from the Agency during such Contract year. (b) After consideration of any comments of the Cities, the Agency, not less than thirty (30) days prior to the beginning of such Contract Year, shall adopt an Annual System Budget for such Contract Year and the rates and charges for Power and Energv to be furnished and the services to be performed during such Contract Year and shall cause copies of uch Annual System Budget and rates and charges to be delivered to the Cities. Provided, however, the Annual System Budget for the first Contract Year shall be prepared, considered, adopted and delivered in the manner which the Agency deems best. (c) If, at any time or from time to time after the adoption of the Annual System Budget in accordance with Subsection (b) of this Section 6, the Agency estimates that the Annual System Costs or revenues for the Contract Year or any part thereof for which such Annual System Budget applies will be greater or less than the Annual System Costs or revenues set forth In the Annual System Budget, or that the amount of Power and Energy which the Agency expects to deliver during such Contract Year or any part thereof is greater or less than the amount of Power and Energy which the 5 i r t Agency estimated at the time of adoption of the Annual System Budget would have been delivered during such Contract Year, then the Agency may prepare an amended Annual System Budget. The amended Annual System Budget shall be timely adopted by the Agency and transmitted to the Cities. (d) In the event a budget for the ensuing Cont act Year has not been adopted on or before the first day of the Contract Year, the total amount t udgeted for the preceding Contract Year shall be the total amount of the temporary budget for such purposes for the ensuing Contract Ycar. The temporary budget shall be effective only until such time as a permanent budget has been finally adopted and approved. The chief administrative ofliccr of the Agency shall be responsible for the allocation for expenditure of the total amount of the temporary budget until a permanent budget is adopted and approved. Section 7: Rates and Charges: (a) The rates and charges of the Agency to the Cities for Power and Energy and for servic;~s supplied shall be: (1) non-discriminatory, and (2) fair and reasonable, and be based upon the cost of providing the Power and Energy or providing the service with respect to which the rate or charge is based, and (3) adequate (after taking into consideration other moneys received or anticipated to be recel,,d) in each Contract Year to pay or make provision for paying Annual System Costs. (b) When the Board of Directors proposes to establish a new rate or charge, as determined under Schedule B, it shall give e:;-.h City written notice that it proposes to establish a new rate or charge for Power and Energy or for services (setting forth such charge) on a date certain (which shall not be less than 120 days from the mailing of the notice to each City, all such notices to be mailed simultaneously). Except as provided in paragraph (c) hereof, no charge or adjustment in any rate or charge made by the Agency shall be ef.ective if any City, uy resolution or ordinance of its governing b iy, enters an objection to such adjustment in a rate and charge by causing to be filed with the chief administrative officer of the Agency a copy of such resolution or ordinance mure than 30 days prior to the suggested effective date of the proposed new rate or charge. In the event a City enters an objection to the charge or adjustment in a rate or charge, the effective date of the charge or adjustment shall be postponed pending the resolution of the dispute in the following manner. (1) The Cities may jointly select an independent con-;u tant or consultants to prepare a rato evaluation and schedQe of proposed rates and charges, provided if such joint selection Is not made within 30 calendar days of the filing of an objection (evidenced by the passage of a resolution or ordinance) such independent consultant shall be appointed by the Board of Directors of the Agency; (2) the report of the independent consultant shall be submitted to the Agency and each City for consideration; and (3) If the report of the independent consultant is approved by the governing bodies of the Agency and the Cities the same shall be effective as of the dale originally suggested by the Agency in its notice. If the adjustment is not approved or an agreement reached within 15 days after the receipt of the report of the independent consultant, then the Agency and the Cities shall each have all of the rights and remedies at law and in equity except that in no event shall any City be relieved of its obligation to the holders of Bonds under Section 13 or 14 of this Contract. 6 W The Board of Directors of the Agency may change or adjust any rate or chtrge for Power and Energy or for services s,jpplicd by it to a City, if such Board determines that (i) an emergency exists and 01) the emergency adjustment meets the criteria established in paragraph (a) of this Section. The emergency adjustment shall be effective for a period of 180 days (unless the notice from the Agency specifies a lesser period) and shall be effective 33 days after the mailing of notice to the Cities (all of which notices shall be mailed simultaneously). Section S: Meter Readings and Payment of Bills. The Agency shall read meters or cause meters to be read and bill the City for Power and Energy furnished under this Contract at monthly intervals. I` It shall also bill each City monthly for services rendered pursuant to Section 4 of this Contract. Section 9: Meter Testing and Billing Adjustment. The Agency shall test and calibrate meters or cause meters to be tested and calibrated by comparison with accurate standards at intervals of twelve (12) months, or such other intervals as the partiesotgrce. The Agency shall also make or cause to be made special meter rests at any time at a City's request. The costs of all tests shall be borne by the Agency, provided, however, [hat if any special meter test made at a City's request shall disclose that the meters arc recording accurately, the requesting City shall reimburse the Agency for the cost of such test. Meters registered not more than 6,2 of I% above or below normal shall be deemed to be accurate. The readings on any meter which shall have been disclosed by test to be inaccurate shall be cor- rected from the beginning of the monthly billing period immediately preceding the billing period during which the tests are made in accordance with the percentage of inaccuracy found by such test, provided, that no correction shall be made for a longer period unless the Age-ocy and City involved mutually agree Ihcreio. Should any meter fail to register, the Power and Energy delivered during such period of failure shall for billing purposes be estimated by the Agency and the City from the best information available, The Agency shall notify the City or cause the City to be notified in advance of the time of any meter reading or test so that the City's representative may be present at such meter reading or test. Section 10. Payments to Constitute Operating Expenses of City System Each City's obligation to make the payments under this Contract shall constitute an operating exper s of its electric system payable solely from the revenues and receipts of such electric system. Each _ity shall be bound and obligated to make such payments and die obligation to make the payments under Section 14 of this contract shall be unconditional, Section lit City Rate Covenant. Each City shall establish, maintain and collet rates and charges for the electric service of its electric system which shall produce revenues at least sufficient, together with other revenues available to such electric system and available electric system reserves, to enable it to pay to the Agency, when due, all amounts payable by such City under this Contract. Section 121 Covenants of the Agency. (a) After first satisfying the Power and Energy requirements of the Cities, as such requirements are established from time to time, and the requirements of other power purchasers, the Agency shall use its best efforts to market and dispose of any and all surplus Power and Energy available from the System or which tha Agency is obligated by contract to purchase or otherwise acquire, and which Is in excess of the requirements of all Cities and other power purchasers, upon the most economically advantageous terms and conditions obtainable, to the extent that it may legally do so. (b) The Agency shall use reasonable diligence to provide a constant and uninterrupted supply of Power and Energy hereunder. If the supply of Power and Energy shall fail, or be interrupted, or become defective by reason of force majeure as hereinafter provided, the Agency shall not be tiable therefor or for damages caused thereby, 7 c , , (c) The Agency shall diligently enforce and take all reasonable steps, actions and proceedings necessary for the enforcement of all terms, covenants and provisions of any power sales contracts. The Agency shall not amend this Contract without first having secured the prior written consent of all Cities, but no amendment shall be made in Section 14 or Sectiof, 16 of this Contract. (d) The Agency covt•n3nts and agrees that it will operate, maintain and manage; its System or cause the same to be operated, maintained and managed in an effircnt and economical manner, con- sislent with sotmd utility practice and in accordance with standards normally used by utilities owning like properties. (e) The Agency covenants that it will not make a change in any Bond Resolution so as to create additional Funds (except those now established by Article V of the resolution authorizing 1 the issuance of the Series 1976 Bonds) without the approval of such changes by the governing body of each City, nor shall any change be made in the amounts required to be paid Into, accumulated In or maintained in the Bond Fund, Reserve Fund or the Contingency Fund, except as provided in the resolution authorizing the Series 1976 Bonds, without such approval. Section 13. Project Approval and Rights of Cities when a Project is not Approved: (a) Except as to Bryan Lignite Number One (hereby approved as a Project) prior to the issuance and sale of Bonds to pi nide money for each Project, the Agency shall submit a written notice to each City as requit !d by the provisions of paragraph (b) of this Section. It a Project has been approved pursuant to paragraph (c) of this Section, the Agency may thereafter issue, sell and deliver Bonds in order to fatly provida funds for such Project, including the design, construction, and the placing of same in commercial operation, or to meet any requirement of law, in- cluding those of a regulatory agency having jurisdiction, or to pay judgments or casualty losses not covered by insurance, or to meet a safety or overriding public necessity. (b) A written notice of the Agency's intention to provide funds (through the issuance of Bonds) for a Project shall contain a general descript!ot of the Project, the projected source, and uses of funds for all aspects of the construction and testing of the Project, and a statement to the effect that, in the opinion of the Agency, the Project is ri :,-Rary for the Agency to meet its commi,ments under power sales contracts and is economically feasible, together with an explanation of the Agency's basis for this opinion. Within 60 days after receipt of such notice, each City shall give the Agency written notice of its approval or disapproval of the Project, If a City fails to give the Agency such written notice within such 60-day period, then said City shall be deemed to have approved the Project. (c) if all of the Cities (who have approved all previously Approved Projects) approve a Project then the Agency may proceed with the issuance, sale and delivery of Bonds to provide such Project. If one or more (f such Cities should disapprove the Project, then the Agency shall give each such City written notice which of the Cities approved the Project and which of the Cities disapproved the Project. Any of the Cities who approved the Project may then give the Agency written notice of its or their desire that the design and construction of the Project be commenced; and, if the Agency de- termines that the Project is still feasible, it may proceed with the issuance, sale and delivery of such Bonds, but the City which failed to approve such Project shall be required (within 60 days of being notified by the Agency thrt it will proceed with the issuance, sale and delivery of Bonds for such project) to elect to limit its responsibilities under this Contract under Option One or Option Two as set forth in paragraph (d) of this Section. (d) If any City disapproves a Project, then within the time specified In paragraph (c), such City shall, by a resolution or ordinance adopted by its go-arning body, elect which of the following options shall govern its future responsibilities under this Contract. If the City disapproving a Project hereunder fails to timely communicate to the Agency as to the election of an option under the provisions of this Section, it shall be conclusively presumed that Option Two has been elected, g ~ (1) Option One: - (a) Each City shall be entitled to schedule and receive, each month for its own account, the same proportion of the available Power and Energy from the System as its Net Energy for Load relates to the total Net Energy for Load of all the Cities for the corresponding month of the completed Contract Year next precceding the effective date of the option, (b) As consideration for such Power and Energy, and the right to purchase the same, each City shall, each month, pay to the Agency its proportionate share of the Annual System Costa equal to the percentage of it's Net Energy for Load of the Net Energy for Load of all Cities for the Contract Year next precceding the effective date of the option. (c) Each City's obligation under Section 14 of this Contract shall be equal to the percentage as calculated under the prcceeding sentence. (2) Option Two: (a) During the balance of the term of this Contract after the effective date of the option, the amount of Power and Energy required by the City exercising the option to be purchased under Section 3 of this Contract shall be limited. Such City shall, in each cal- endar month, take or pay for an amount of Powcr and Energy equal to the amount of Powcr and Energy pu%hascd by such City from the Agency during the corresponding month of the 12 consecutive month's period preceding the calendar month of the effective date of the exercise of the option, it such other amount of Power and Energy as may be from time to time agreed upon by the City, the A,cncy and the other Citics: and the Agency shall no longer be required to provide any Powc• and Energy in excess of such amount, and the City shall be relieved of its obligation to purchase all of its requirements from the Agency, The Power and Lnergy furnished to such City shall be billed by the Agency at rates and charges as from time to time adopted pursuant to Section 7 of this Contract. The calculation of the limiting City's obligation under Section 14 of this Contract shall assume such City's Net Energy for Load for the purposes of said calculations is equal to such City's Net Energy for Load in the completed Contract Year next preceding the effective date of the option. (e) In the case of each option: (1) The effective dato of the option shall be the first day of the Contract Year which Is more than 90 days after the date a City disapproves a Project, as permitted in paragraph (c) of this Section. (2) The right to schedule Power and Energy Is subject to outages for maintenance and operating emergencies. (3) The amount due from a City (which disapproves a Project) [under paragraph (d)(1) or paragraph (d)(2)] shall be due and payable irrespective of whether any Power and Energy Is delivered or made available for delivery to such City. (This also applies to all Cities after the effective date of the exercise of Option One by any City.) (4) The City which exercises an option, pursuant to paragraph (d) shall not thereafter be entitled to approve or disapprove any subsequent Projects. (S) Amounts due from entities other than the Cities shall be taken into account in cal- culating the amount due from the Cities. (0 After a City has disapproved a Project under paragraph (c) of this Section, it may thereafter revoke such action and approve the Project provided: (1) the Agency and each of the Cities approve the revocation, and 9 1 (2) in order to pay a pro rata part of expenses incurred (including Debt Service) since the Project was disapproved, the City agrees to assume or pay such amount as may be determined by the Agency and the Cities. Section 14: Debt Service Guarantee; Operating and Maintenance Expenses. (a) In any instance where the amount of money on deposit in the Bond Fund (created by the Bond Resolution) is not the full amount then required to be on deposit therein, without giving consideration to transfers made from other than the Revenue Fund or from Bond proceeds (provided that transfers may be made from the Reserve Fund to the Bond Fund for not more than two (2) consecutive calendar months) each City shall be obligated to make a payment the aggregate amount of which shall be the amounts that are necessary to establish or reestablish the amount then required, under the terms of the Bond Resolution, to be on deposit in the Bond Fund, the Reserve Fund, t.nd the Contingency Fund. The percentage share of the payment to be made by each City shall initially be as follows: City of Bryan, Texas: ......................22.73% City of Denton, Texas: . ............20.34% City of C irland, Texas:.. . ..............................47.66% City of Greenville, Texas: 9.27% Except as set forth in Section 13(d) such percentage share of :he payment to be made by each City shall be adjusted at the beginning of each Contract Year. Such adjustment shall be made by calculating the percentage relationship that each City's Net Energy for Load for the Contract Year immediately preceding the Contract Year in which the adjustment is being made bears to the total aggregate Net Energy for Load of all Cities for such Contract Year, and the sum of the adiusted percentages shall equal 10011c. The payments requir:d to be made to said Bond Fund, Reserve Fund or Contingency Fund (any one or all of such Funds) shall be paid by the Cities in the percentage shares determined above and such payments shall be made direct to the custodian of the respective Funds as established in the Bond Resolution. Each City unconditionally covenants the payment will be made, if required, in the amount and in the manner prescri9ed. The provisions of this covenant are for the benefit and protection of the Agency, the Cities and the owners and holders of Bonds, it being recognized that the holders of such 3onds shall be third-party bcneficiarica of this covenant, and it is understood by the contracting parties that the purchaser of Bonds has and will agree to the purchase of Bonds conditioned upon this covenant. (b) In any instance, except that occasioned by the failure of a City or other power purchaser to pay the amount it is required to pay for the purchase of Power and Energy, in which the funds of the Agency are Insufficient to pay Operating and Maintenance expenses or other expenses (except those for which provision is made in paragraph (a) hereof) payments shall be paid to the Agency by the Cities in the percentage share determined under paragraph (a) of this Section 14. (c) A new power purchaser (with the approvrl of the Agency and the Cities) may assume primary liability for the obligation to make payments under this Section with respect to Debts of the Agency incurred prior to its becoming a power purchaser, but the same shall not discharge the liability of those who were obligated when such Debts were incurred (who shall remain secondarily liable), (d) In the event the Agency is held to be in default under th provisions of the Bond Resolution (by reason of the inadequacy of payments required to be made the Cities under the provisions of this Contract), the Cities shall cure the default by making paymer in the same proportion es provided in paragraph (a) of this Section. (e) In the event a City disapproves a Project under Section 13, or if a City elects to with- draw from the Agency under Section t6, then each City shall continue to be obligated under para- graph (a) of this Section with respect to Bonds theretofore issued and Bonds thereafter issued to fully provide funds for each Project (as contemplated by the second sentence of Section 13(a)) and in 10 addition, if a City elects option One. then all of such Cities shall be obligated under paragraph (a) of this Section with respect to Bonds the-after issued for Development Projects described in clause (1) of the definition of that term. If a City elects Option Two, then all of such Cities shall also be obligated under paragraph (a) of this Section with respect to Bonds thereafter issued for Development Proje;ts and for System Development and Reliability Expenditures and Bonds issued for Projects thereafter approved. For and in consideration of the payments to be made by the Cities under this Contract (including those under this Section) the Agency agrees to t,se its best efforts to deliver Power and Energy from Projects, to such Cities, under the terms of .his Contract, and such payments by the Cities shall be in consideration for the Agency's agreement to deliver such Power and Energy; but the failure of the Agency to comply with such agreement shall net tclieve any City of its obligations under paragraph (a) or (d) of this section, which obligations shall b-- unconditional and absolute. (f) In the event the Agencv 1. recreated urder Section 16 so the new entity assumes primary liability for a pro-rata share of the Debts of the Agency then outstanding [as distinguished from the creation of a new system (not financed under ffe Bond Resolution) with respect to projects thereafter approved] then the new entity shall thereafter to included in the c.lculation of the percentage share of the payment to be made under paragraph (a) of this Section, fcr the purpose of determining such primary liability; but in no event shall the Cities of Brya i, Demon, Greenville and Garland be relieved of the obligation each has assumed (by the execution hereof) to collectively pay the entire amount (based upon the percentage of Nct Energy for Load) required to be paid under paragraph (a) of this Section with respect to all Bonds theretofore or thereafter issued without regard to such new entity. Section 15. Remedies In Event of Default. (a) (1) If any City fails or defaults in meeting the terms, conditions and covenants of this contract [other than a default in payment for which provision is made in subsection (b) of this Section] and such default continues for a period of 15 days, the Agency shall give notice (in the manner con- templated by Section 31 of this Contract) to the Cities. The defaulting City shall from the dale of the mailing of such notice, have a period of 30 days to cure the default. (2) If any City fails to make any payment (hereinafter called a default in payment) to the Afency that is required to be made under the provisions of this Contract, and such default in payment con- tinues for a period of fifteen (15) days, the Agency shall give notice (in the manner contemplated by Section 31 of this Contract) to Cities. The defaulting City wall, from the date of the maili.1g of such notice, have a period of thirty (30) days to pay the full amount then due to the Agency, together with interest thereon, as hereinafter provided. (3) if the City does not cure its default within such period of thirty (30) days, then, so long as such City remains in default, and in addition to any other rights which the Agency h+ts under this Contract and at law and In equity, the Agency may terminate all service to such City. Additionally, in the event of default in payment, the Agency may charge to and collect from such City each calendar month the amount which the Agency determines to be the difference between what the Agency would have received from such City under this Contract, for Power and Energy and services furnished and delivered to such City, had such City not been in default, and the amount, if any, which the Agency receives from sales of such Power and Energy and services to the other Cities, or others, either or both. Termination of service hereunder shall not reduce or change the obligation of the defaulting City under the other provisions of this Contract, (b) If the Agcncy falls or defaults in meeting the terms, conditions and covenants of this Contract, except its coven,?nt to use reasonable diligence to provide a constant and uninterrupted supply of Power and Energy contained in Section 12(b), and such default continues for a period of 15 days after a City has given the Agency notice of such default In the manner contemplated lit Section 31 of Oils Contract, then such City shall have all of the rights and remedies provided at law and in equity, except that in no event shall any of the Cities be relieved of its obligation specified in Section 14. The delivery of available Power and Energy as provided in this Contract shall be a ministerial duty of the Agency. 11 Section 16: Re-creation of Agency. Each City and the Agency recognize that pursuant to the Act the concurrent ordinances by which the Cities created the Agency reserved the right to the governing body of each of the Cities to join with the other Cities to provide for the re-creation of the Agency by the addition and deletion, either or both, of a public entity, as defined in said Act, so long as there is no impairment of obligation of any existing obligations of the Agency. Each City covenants and agrees that it will not join with tiny of the other entities to recreate the Agency so as to delete one or more entities unless (I) the then outstanding Debts of the Agency have been paid or provision made for their payment under Article XI of the Bond Resolution or (2) the Holders of at least 60% of the principal amount of the Bonds then outstanding approve the concurrent ordinance proposed for adoption by the Cities, or (3) the withdrawing el lily contracts and agrees to continue to pay a fixed percentage (as determined by tite Board) of the Annual System Costs (including the Debt Service Requirements on the then outstanding Debts of the Agency) during the time such Debts remain outstanding. Such percen;:,ke shall be fixed by calculating the percentage relationship of the withdrawing entity's Net Energy for Load (during the Contract Year in which such percentage was the highest) bears to the total aggregate Net Energy for Load of all Cities (during such Contract Year). The obligation contained in Section 14, as to the entity seeking to withdraw, shall remain unaffected until the Bonds permitted to be issued by Section 14(e) have been paid and retired. No withdrawal shall be effective until such indebtedness has been paid; and at such time this Contract, as to such withdrawing entity, shall terminate. From and after notice is given to the Agency of the intent of an entity to withdraw from the Agency, no additional Bonds of the Agency shall be issued for a new Project which involves any additional payments by or guarantee of the Debt Service Requirements by such withdrawing entity. Each City covenants and agrees that it will not join with any of the other entities to recreate the Agency so as to add one or more entities unless (1) the then outstanding Debts of the Agency have been paid or provision made for their payment under Article XI of the Bond Resolution or (2) the Holders of at least 60%of the principal amount of the Debts of the Agency then outstanding approve the concurrent ordinance proposed for adoption by the Cities, or (3) entity being added expressly either (as approved by the Agency and set forth in the concurrent ordinances) (i) assumes the primary liability for the payment of for a pro-rata share of the Debts of the Agency (which shall not discharge the liability of those obligated when such Debts were or are incurred, who remain secondiarily liable) as well as the obligation provided in Section 14(c) and assume thereafter to pay its share of the remainder of the Annual System Costs, or (ii) agrees it will be obligated only with respect to the payment of annual system costs for projects which are approved after the re-creation of the Agency. Section 17: Payment Due Dates and Delinquency. (a) In the event that a City fails to make any payment at the time herein specified, interest on such delinquent amount shall accrue at the rate of ten percent (10%) per annum from the date such payment becomes due until paid in full, and the Agency may institute a proceeding for a mandatory injunction requiring the payment of the amount due and Interest thereon, such action to be instituted In a court of competent jurisdiction. (b) All payments required to be made by the Cities under the terms of this Contract shall be due and payable within thirty (30) days following the date the Agency renders the bill, and the Cities shall have no right of setoff, recoupment or counterclaim against any payment under Section 14(a) or that. part of the Annual System Costs which are attributable to payments to be made into the Bond Fund, the Reserve Fund or the Contingency Fund by any Bond Resolution or similar Funds established for the payment and security of Subordinated Indebtedness (as defined in the Bond Resolution), which are unconditional. (c) Should a dispute as between any City and the Agency arise as to 1-Nether the Agency is in compliance with its covenants as contained herein, each City shall nevertheless be obligated 12 (1) to make tht payments provided by paragraph (a) of Section 14 l.ereof and (2) to pay such amount of the Annual System Costs as may not be in dispute pending the resolution of such dispute, provided a City may elect to pay all such Annual System Costs, including any disputed amount. In the event a disputed amount of Annual System Costs is paid by a City the same shall be placed in escrow in an interest bearing account by the Agency pending resolution of the dispute, but only the prin:ipal amount thereof shall be returned to the City, If the City elects not to pay the amount in dispute and the dispute is resolved against such City, the amount ultimately found to be due plus interest at 10% per annum (calculated from the date the same was originally due) shall be paid by the City with!, 15 days of the resolution of the controversy. Attorneys' fees shall be assessed as court costs. Section 18. Power Sales Contracts. The Agency may provide Power and Energy and services pursuant to a power sales contract, upon such terms as may be approved by the governing body of the Agency and, except as provided by Section 12(a), the Cities. Section 19: Continuation of Services. A City, unless it elects an option under Section 13 or withdraws under Section 16, shall have the right to the continued performance of services pro- vided under the provisions of this Contract for the useful life of the System by giving written notice to the Agency at .rst 5 years prior to the scheduled termination of this Contract (as speci- fied in Section 1) provided that if such termination is occasioned by making provision for the payment of the Debts of the Agency, the notice may be given within 90 days of such provision being made. Such City shall be obligated to continue paying its proportionate share of the Annual System Costs. Section 20: Cily Not to Sell Its Electric System. Each City covenants that during the tarn: of this Contract (or the extensions thereof) it will not sell or otherwise dispose of its electric utility distribution system in whole or substantially as a whole to any entity or:ier than an assignee under Faction 21 of this Contract and, in the case of such an assignee, only with the written consent of the Agency and all Cities. Section 21: Assignment of Rights of a City. A City may assign any of it-, rights under this Contract to another entity, if permitted by applicable law, but no sale or other disposition shall relieve such City of its obligations under this Contract (including the obligations under Sections 10, 11 and 14) so long as any Bonds are outstanding. Section 223 Dissolution of the Agency. At such time as the Debts of the Agency have been paid or provisions made therefor pursuant to Article XI of the Bond Resolution, and the Agency is dissolved, each City who has not madt an election under Section 13 or withdrawn under Section 16 shall be entitled to an undivided interest in the properties of the Agency in proportion to the amount paid to the Agency under this Contract. Section 23: Force flfajeure. (a) If for any reason of "force majcure" any of the parti.:s hereto shall be rendered unable, wholly or in part, to carrry out its obligations under this Contract, other than the obligation of the Cities to make the payments required under the terms of this Contra:t, then if such party shall give notice and the full particulars of such reasons in writing to the other party within a reasonable time after the occurrence of the event or cause relied on; the obligation of the party giving such notice, so far as it is affected by such "force majeure," shall be suspended during the continuance of the inability then claimed, but for no longer period, and such party shall endeavor to remove or overcome such inability with dll reasonable dispatch. The term "force majcure" as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders or actions of any kind of the Government of the United States or of the State of texas or any civil or military authority, insurrections, riots, epidemics, inn islides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraints of government and people, civil disturbances, explosions, breakage or accident to dams, machinery, pipelines, or canals or other structures or machinery, on account of any other cause not reasonably within the control of the part) claiming such inability. It is ui.derstood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty, and that the above requirement that any "force majeure" shall be 13 remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing parties when such settlement is unfavorable to it in the judgment of the party having the difficulty, (b) No damage shall be recoverable from the Agency or the Cities by reason of the causes above mentioned. Section 24: Insurance. (a) The Agency shall maintain, nr cause to be maintained in force for the benefit of the Agency, such insurance with respect to the System as shall be reasonably available and as is usually carried by municipal electric utilities constructing and operating generating and transmission facilities but, in the case of nuclear generating facilities, not less than will satisfy the requirements of federal and state law and the Nuclear Regulatory Commission regulations and such other insurance as is usually carried by municipal electric utilities owning like properties. Provided, however, in any event, the Agency shall maintain, or cause to be maintained, in force, insurance in such amounts and against such risks as required by the Bond Resolution. (b) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and employee; handling or responsible for funds of the Agency. (c) The obligation hereunder to procure and maintain insurance with respect to a Joint Project, as defineJ in the Bond Resolution, shall be met if the entity acting as the manager of the Joint Project obtains and maiutrins the insurance required for the benefit of all owners of the Joint Project, as their interest may appear. (d) The Agency may establish and create a special fund for the purpose of providing a self insurance f tnd. Amounts to be deposited in or credit;d to such fund in any Contract Year shall be accounted for as Operating Maintenance Expenses. To the exl,nt that monies are deposited in such fund, if created, such monies may be invested in Investment Securities, as defined in the Bond Resolu- tion, To the extent of the amounts held in such fund, the face amount of appropriate insurance policies may be reduced. Section 25: Reports. The Agency will prepare and issue to each City tae following reports for each fiscal year: (i) finane'A and operating statement relating to the System; (ii) status of construction for each facility constituting the System during construction; and (iii) analysis of operations relating to the System. Section 26: Records and Accounts. The Agency will keep accurate records and accounts of the System and of the transactions relating to each facility constituting the System as well as of the operct'ans of the Agency In accordance. with the Uniform System of Accounts, which shall include depreciation. Within one hundred twenty (120) days after close of each Contract Year, the Agency shall cause such records and accounts and all transactions of the Agency relating to the System with respect to such Contract Year to be subject to an annual audit by an independent certified public accountant. A copy of each such annual audit shall be sent by the Agency to each City. Section 271 Access. Each City shall at all times have reasonable access to ei-amine any and all books and records of the Agency and to examine any facility of the System. The Agency and each City will give the other the right to enter the premises of the other at all reasonable times for the purpose of repairing or removing facilities, reading meters and performing work incidental to delivery and receipt of Power and Energy furnished hereunder. Section 28: Governmental Rates, Regulations and Laws. The Contract shall be subject to all valid rules, regulations and laws applicable thereto, as promulgated by the United States of America, the State of Texas, or any other governmental body or agency having lawful jurisdiction or any authorized representative or agency of any of them. 14 Section 19: Easements: Each City agrees that the Agency or its agent shall (when permitted by existing easement) have full access to such easements or over any easements, right-of-way or property held by such City if, and to the extent, required by the Agency for any and all purposes required for the System or any Project thereof. Section 30: Cancellation of Prior Contract. In connection with the issuance of $10,625,000 TEXAS MUNICIPAL POWER AGENCY REVENUE LONDS, SERIES 1975, the Cities and the Agency have heretofore entered into a contract which is incorporated in an instrument entitled, "Contract for Develop- ment of Fuel Resources, Planning Electric Generation Facilities and Performing Certain Duties," which contract was dated September 15, 1975; that such contract provided certain payments would be made by each City to the Agency for the payment of debt service on the aforesaid Series 1975 bonds and maintenance and operating expenses of the Agency. The parties agree that upon the effective date of his Contract and the cancellation of said bonds, the prior contract shall be cancelled in its entirety and no payments shall continue to be made thereunder for any purpose and this Contract shall supersede such prior contract in every respect. Section 31: Notices. Any notice, request, demand, statement or bill provided for in this Con- tract shall be in writing and shall be considered to have been duly delivered when sent by registered or certified mail, addressed as follows, unless another address has been designated, in writing, by the party entitled to receive same: Agency: Texas Municipal Power Agency city or Bryan 7111 Bosque Boulevard P. O. Box 1000 Waco, Texas 76710 Bryan, Texas 77801 Attention: Executive Director Attention: City Manager City of Greenville P. O. Box 1049 Greenville, Texas Attention: City Manager City of Denton Civic Building Denton, Texas 76201 Attention: City Manager City of Garland P. O. Box 401869 Garland, Texas 75040 • Attention: City Manager Section 31: Severability. The parties hereto agree that if any of the provisions of this Contract should contravene or be held invalid under the laws of the Slate of Texas, such contravention or invalidity shall not invalidate the whole Contract but it shall be construed as though not containing that particular provision, and the rights and obligations of the parties shall be construed and in force accordingly. Section 33: Contracts to be Separate. This instrument embodies four separate contracts between the Agency and each City. Termination of one Contract shall not affect the others. • IS r , r , IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed in their cor. porate names and their corporate seals affixed, all by the proper officer duly authorized thereunto, as of the day and year first hereinabove written. TEXAS MUNICIPAL POWER AGENCY (SEAL) ATTEST: By:. Secretary City of Bryan, Texas (SEAL) By: ----y ATTEST: bla 'o By:.......... , ~ Cit~ttary City I Denton, Texas ' e (SEAL) By:----.Cwo.Y 4 aoBy' - ATTEAwi;;ed City of Garland, Texas (SEAL) By:- ATTEST: Mayor City Secretary City of Greenville (SEAL) By:... ATTEST: ~L 1 Mayor By : /1 1r/l~!~..~11.~J......... City Clerk 16 EXHIBIT A POINTS OF DF...fVERY Bryan: 1. Bryan Plant: Facilities included are as follows: (a) 138 KV lines (b) 200 VIVA, 138/69 KV autotransformer (c) associated breakers, bus work, switches, etc. 2. Nall Substation: Facilities included are: (a) 138 KV lines (b) 200 VIVA 138/69 autotransformer (c) 450 MVA, 345/138 KV autotransformer (d) 345 KV lines (e) associated breakers, bus work, switches, etc. 3. Snot h East Bryan Substation: Facilities included are as follows: (a) 138 KV lines (b) 200 MVA, 138/69 KV autotransformer (c) associated breakers, bus work, switches, etc. Denton: 1, Denton Plant: Facilities Included are as follows: (a) 138 KV lines (b) associated breakers, bus work, switches, etc. • 2. North Denton Substation: Facilities Included are as follows: (a) 138 KV lines 0 (b) 450 MVA, 345/138 KV autotransformer (c) associated breakers, bus work, switches, etc. Garland: 1, Apollo Substation: Facilities included are as follows: (a) 138 KV interconnection with TP&L (b) associated breakers, bus work, switches, etc. 2, Oates Substation: Facilities Included are as follows: (a) 138 KV Interconnections with TP&L (b) 450 MVA 345/138 KV autotransformer (c) 345 KV lines (d) associated breakers, bus works, switches, etc, 17 3. Ben Davis Substation Facilities included are as follows: (a) 450 A1VA, 345/08 KV autotransformer (b) 345 KV lines (c) associated breakers, bus work, switches, etc. 4. NIX= Substation Facilities included are as follows: (a) 450 hiVA, 345/138 KV autotransformer (b) 345 KV lines (c) associated breakers, bus work, switches, etc. Greenville: 1. Steam Plant Facilities included are as follows: (a) 138 KV line (b) 75 MVA, 138/69 KV autotransformer (c) associated breakers, bus work, switches, etc. 2. Diesel Plant Facilities included are as follows: (a) 138 KV line (b) 75 MVA, 138/69 KV autotransformer (c) associated breakers, bus work, switches, etc. I l 18 SCHEDULE B RATES AND CHARGES (1) RATES FOR POWER AND ENERGY The rates to be charged by the Agency for Power and Energy furnished to the Cities shall consist of a demand charge and energy charge. These charges shall be based on cost of service to the degree that is practical. The costs used in developing cost of service rates shall be based on accounting entries as outlined in the Federal Power Commission's Uniform System of Accounts. The rates for demand charges shall be established to recover costs that are related to Debt Service, (including coverage ratios), other *rdinarily predictable stable Operating and Maintenance Expenses and such other reasonable fixed costs as these costs relate to plant and transmission capacities utilized. The demand charges shall be based on the above listed costs in proportion to total KW that the Agency has available. Proper consideration shall be given in the demand charges for such factors or coincident peak demands, diversity factors, load factors, etc, of the Cities. Energy charges shall be based on fuel costs, operating personnel costs, variable Operating and Maintenance Expenses, postage stamp type transmission losses, station service energy, and other such reasonable variable costs as these costs relate to energy provided to Cities. r The rate making methods used to develop these demand and energy charges shall be consistent with standard utility wholesale rate making procedures. These methods shall be applied as appropriate to the System. It is recognized that these rates shall be developed in a reasonably equivalent manner as similar wholesale power suppliers, State Utility Commission guidelines, and FPC rate regulations as applied to like power systems. (2) RATES FOR SERVICES PROVIDED TO ALL CITIES Various services shall be provided to all Cities as directed by the Board of Directors and will be paid for by the Cities at a rate per kilowatt-hour which shall be established from time to time by the Board of Directors. Each City's share of such charges shall be that portion of the total represented by the ratio of his share of the net energy for load to the total net energy for load of all of the Cities. Billings will be made in advance on estimates of loads and paid evenly throughout the year, (3) RATES FOR SPECIAL SERVICES PROVIDED TO A SPECIFIC CITY Special services may be provided to a member from time to time at the r -quest of a City. ReirnlArsemem for these services will 6e made at cost by the City receiving the services. 19 A RESOLUTION by the Board of Directors of the Texas Municipal Power Agency, relating to the authorization and issuance of "TEXAS MUNICIPAL POWER AGENCY REVENUE BONDS, SERIES 1976," for the purpose of providing fm,ds with which to discharge certain costs and expenses of the Agency in connection with the acquisition or construction of certain electric facilities; to provide engineering, planning and financing expecses; for the purpose of paying off, discharging, cancelling, refunding and in lieu of "TEXAS MUNICIPAL PowER AGENCY REVENUE BONDS, SERIES 1975," presently outstanding; and for the purpose of setting aside certain amounts for payments into the Bond Fund and the Reserve Fund herein rcabluhed; providing the terms and conditions and specifications for such Bonds and other obligations; pledging certain revenues of the Agency in payment of such obligations and Interest thereon; and providing recitals and covenants incident and relevant thereto. WHEREAS, the Texas Municipal Power Agency has heretofore been created as a municipal corporation, a political subdivision of the State and a body politic and corporate, pursuant to the provisions of Chapter 166, Acts of the 63-d Legislature, Regular Session, 1973, as amended by Chapter 143, Acts of the 64th Legislature, RelvIar Session, 1975, (codified as Article 1435a, Revised Civil Statutes of Texas, 1925, P.:, amended); and WHEREAS, it has been determined that the Agency should proceed with the authorization and issuance and delivery of revenue bonds in order that appropriate planning, engineering and other services may be provided and certain facilities and properties may be acquired or constructed by the Agency, and this Board has determined that the Agency Is fully empowered to issue its revenue bonds for the purposes and under the provisions, conditions and In the manner hereinafter set forth; therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TEXAS MUNICIPAL POWER AGENCY: 08743-0-Texas Municipal-Proof of P,-234"teck-Warlick--Phone (214) 631-3130 ARTICLE 1 Definition of Tenn. SECTION 1.01: Definitions. Unless the context shall indicate a contrary meaning or intent, the terms below defined, for all purposes of any Bond Resolution or any resolution amendatory or supple- mental thereto, shall be construed, are used and are intended to have meanings as follows: "Act" - Chapter 166, Acts of the 63rd Legislature, Regular Session, 1973, as amended by Chapter 143, Acts of the 64th Legislature, Regular Session, 1975, and all laws amendatory thereof or supplemental thereto. "Additional Bonds" - Bonds authorized to be issued under the provisions of Section 7.01 hereof. "Agency" - the Texas Municipal Power Agency, a municipal corporation, a political subdivision of the State of Texas and a body politic and corporate, duly organized and existing under the Act. "Annual Budget" - the Annual Budget, as amended or supplemented, adopted or in effect for a particular Fiscal Year as provided in Section 6.18. "Authorized omcer" - the President, Vice President or Secretary of the Board or the Executive Director of the Agency and any other person authorized by resolution of the Board to perform the act or sigrt the document in question. "Average Annual Debt Service"-the annual arithmetic average (Fiscal Year basis) of the principal of and interest on all Outstanding Bonds becoming due from the date of calculation to the earlier of the date of maturity of such Bonds or to the date such Bonds are required to be called for redemption. "Board" - the Board of Directors of the Agency. "Bond Fund"-the Fund by that name established in Section 5.02. "Bond Resolution"-the resolution authorizing the issuance of the "Texas Municipal Power Agency Revenue Bonds, Series 1976;" and any resolution subsequently adopted by t116 Agency which authorizes the Issuance of Bonds, including refunding Bonds, on a parity with the said Series 1976 Bonds. "Bonds"-Series 1976 Bonds, Additional Bonds and any refunding Bonds delivered pursuant to p the provisions of Section 7.03 hereof. "City or Cities" - individually or collectively the Cities of Bryan, Denton, Garland and Greenville, Texas. "Collateral Securities"-(1) Investment Securities and, (ii) obligations issued or guaranteed by any state of the United States or District of Columbia, or any political subdivision of any such state or District, provided such obligations are rated for investment purposes at not less than A (or its equivalent) by a recognized rating service such as Moody's Investors Service, Inc. or Standard do Posies Corporation; and repurchase agreements with solvent banking or other financial institutions with respect to any of the obligations or securities referred to herein. "Construction Fund" - the Fund by that name established In Section 5.07. "Contingency Fund"-the Fund by that name established by Section 5.02. "Contingency Fund Requitement"-as of any date of calculation, the sum of $2,000,000 or such greater amount as may be determined by the Agency and the Cities. 2 :08743-0--Texas Municipal-Proof of 8.23.74- Steck-Warlick-Phone (214) 631.3130 • "Cost of Acquisition and Construction" - the Agency's costs and expenses attributable to the planning, designing, acquiring, construction, reconstruction, installing and financing of facilities, placing the same in operation, decommissioning and disposal of any generating facilities of the System if financed by the issuance of Bonds, and obtaining all governmental approvals, certificates, permits and licenses with respect thereto, and shall include reimbursement to the Agency for any of the above items there- tofore paid by or on behalf of the Agency. "Coupon Bonds"- Bonds not In fully revstered form. "Coupons" - those issued under the Bond Resolution and evidencing interest o.; the applicable Coupon Bond. "Date of Commercial Operation"-the date of completion or acquisition of a Project which has been certified by the Engineer to be ready for commercial operation. "Debt Service"-shall mean, with respect to any period, the aggregate amounts required to be paid during said period on Outstanding Bonds, less those amounts or. deposit for the payment thereof, as the same shall become due. "Depository" - any bank or trust company selected by the Agency as a depository of moneys and securities beld under the provisions of the Bond Resolution. "Engineer"-at any time the engineer or engineering firm appointed pursuant to Section 6.17. "Financial Newspaper" - a financial journal or newspaper selected by the Board which is of general circulation in New York, New York (which is published at least five days in each week), and a journal or newspaper selected by the Board which is published in the State of Texas. "Fiscal Year" -the 12 month period ending September 30 of each calendar year, or such other 12 consecutive month period as may be established as a Fiscal Year by the Board, provided the Fiscal Year may not be changed more than once in any three year period. "Fuel Reserve Account" - the Account by that name established as a part of the Revenue Fund by Section 5.02. "Generally Accepted Accounting Principles" and all other accounting methods and terminology contained or referred to in any Bond Resolution - accounting principles, methods and terminology followed and construed, as nearly as practicable, in conformity with the Uniform System of Accounts for Class A and Class B Public Utilities and Licensees and accounting rules and regulations thereunder potscr'bed by the Federal Power Commission for privately owned power companies which are subject to its jurisdiction and engaged in business comparable to the business of the Agency, as amended from time to time, or such other system as may be required by any regulatory agency. "Gross Revenues"-the entire income and revenue of the Agency derived from the operation of the System or ownership of properties constituting the System, The term does not include payments received by the Agency (1) from a City upon its withdrawal from the Agency, or (ii) as proceeds of insurance (except business interruption insurance) or eminent domain, or (Iii) as proceeds from Bonds or Subordinated indebtedness, or (lv) except as provided in Section 7.05, from amounts received from leases, installment sale payments, or other agreements entered into by the Agency in connection with the Issuance by the Agency of Special Contract Obligations, or (iv) investment income of the Construction Fund. "}colder" or "Bondholder'- when used in cot.junction with a Coupon means the person in possession and the apparent owner, and when u,,ed in conjunction with a Bond means the person in whose name such Bond is registered on the registry books of the Registrar pertaining to such Bond, or the person in possession and the apparent owner of a Bond which Is not registered; when not used in conjunction with a Coupon or Bond such term inciuoes the apparent owner of a Coupon, or a Coupon Bond or the registered owner of a registered Bond, 3 48743.0--Texas Municipal-Proof of 8.23.76- Steck•Warlick--Phone (214) 631.3130 "Investment Securities"-any of the fotowing securities, if and to the extent that the same are at the time legal for investment of Agency funds: (1) Direct obligations of the United States of America; obligations which In the opinion of the Attorney General of the United States are general obligations of the United States and backed by its full faith and credit; obligations guaranteed by the United States of America; and (ii) Evidences of indebtedness of the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Federal National Mortgage Associ- ation, Federal Financing Bank Participation Certificates in the Feieral Assets Financing Trust, New Housing Authority Bond and Project Notes fully subscribed by contracts with the United States of America, or any other Agency or Instrumentality of United States of Amtrica; bonds secured by the general credit of the State of Texas; and certificates of deposit of any bank or trust company which are fully secured (to the extent not Insured by the Federal Deposit Insurance Corporation) by obligations in which the Agency may invest under the provisions of this definition. "Joint Project" -a project undertaken by the Agency in cooperation with any other entity (as ~ such term is defined by the Act) where the Agency and such entity each have an undivided ownership interest therein. "Net Revenues" - for any period, the Gross Revenues during such period less the Operating and Maintenance Expenses during such period. "Operating and Maintenance Expo -all expenses incurred in the operation and mainte- nance of the System and the Agency wh,,,: are properly accounted for such purpose, under Generally Accepted Accounting Principles. Such term does not include depreciation o: obsolescence charges or reserves therefor, interest charges and charges for the payment of principal, or amortization, of bond or other indebtedness of the Agency. "Outstanding"- as of the date of calculation, all Bonds theretofore executed, issued and delivered by the Agency except - (i) Bonds theretofore cancelled by a Paying Agent or surrendered to the Paying Agent for cancellation; (b) Bonds in lieu of, or In substitution for, which other Bonds shall have been executed, Issued and delivered by the Agency pursuant to the terms of Section 3.05 or Section 7.03; (e) Bonds for the payment or redemption of which moneys, equal to the principal amount or Redemption Price thereof, as the case may be, with interest to the date of maturity or redemption date, shall be held under the Bond Resolution and set aside for such payment or redemption (whether at or prior to the maturity or redemption date), provided that if such Bonds are to be redeemed, notice of such redemption shall have been given as in Article IV provided; and (d) Bonds deemed to have been paid as provided In subsection (b) of Section 11.01. "Paying Agent"-any bank or trust cor:pany and its successor designated as a Paying Agent for the Bonds of any Series. "Power Sales Contract"-those certain contracts by and between the Agency and the Cities of Bryan, Denton, Garland and Greenville, which contracts are dated the Ist day of September, 1976, and any amendments or supplements thereto. "Project"--one or more of the following: (i) any power generating facility (or interest therein) to be constructed or acquired by the Agency as well as fuel therefor and any transmission facility required to connect or interconnect such generating facility with a City or others, or (ii) any addition or Improvement to a power generating facility which is then owned, in whole or In part, by the Agency, or (ill) any contract right to purchase or receive a power supply or transmission capacity 4 08743-0-Texaa Municipal-Proof of 8-234"teck-Warlick-Phone (214) 631-3130 (a) by the making of a prepayment of capital costs which are associated with the supply or capacity so purchased, or (b) by the execution of a take or pay contract having a duration of more than 10 years, including any renewals thereof or (c) by the execution of a contract to purchase power or energy (either or both) on an all requirements basis. The term does not include any facilities financed with the proceeds of Special Contract Obligations, as permitted under and defined in Suction 7.05. "Redemption Price" - with respect to any Bond, the principal amount thereof, plus the applicable premium, if any, payable upon redemption thereof pursuant to such Bond or any Bond Resolution. "Registrar" -the Registrar of a particular Series Bonds named in the Bond Resolution authorizing such Series in conformity with Chapter 431, Acts of the 64th Legislature, Regular Session, 1975, cs amended. "Reserve Fund"-the Fund by that name established in Section 5.02. "Revenue Fund" - the Fund by that name established in Section 5.02• "Series" - all of the R-mcls designated as being of the same Series, and any obligations delivered in lieu thereof or In substitutior thereof under Section 3.05. "Series 1976 Bonds" - the Texas Municipal Power Agency Revenue Bonds, Series 1976 delivered pursuant to the provisions of Article If hereof. "Subordinated Indebtedness" - any evidence of debt referred to In, and vomplying with the provisions of, Section 7.04. "System" - the Agency's interest in all properties (owned or operated by or on behalf of the Agency) which are financed, in whole or in part, through the issuance of obligations by the Agency for Approved Projects and Development Projects, prior to rte time one of the Cities disapproves a Project under the provisions of Section 13 of the Power Sale; Contract and elects Option One under paragraph (d) of said Section 13. The term also includes any contract for providing services or power and energy, either or both. The Initial System is hereby designated as System A. The term does not Include the Agency's Interest in any facility financed with the proceeds of (1) Special Contract Obllga- dons Issued by the Agency as permitted under and defined in the Bond Resolution or (it) bonds Issued to finance any Project which is not approved by all of the Cities if a City or Cities which disapprove a Project elect Option One under Sa•don 13 of the Power Sales Contract. "Written Certificate of the Agency," "Written Request of the Agency" and "Written Statement of the Agency" - an instrument in writing signed on behalf of the Agency by an Authorized Officer. SECTION 1.02: Construction of Terms. Except where the context otherwise requires, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include firms, associations, trusts, corporations or governments or agencies or political subdivisions thereof. SECTION 1.03: Resolution to Constitute a Contract, Bonds on a Parity. In consideration of the acceptance of the Bonds, the issuance of which Is authorized hereunder, by those who shall hold the same from time to time, each Bond Resolution shall be deemed to be and shall constitute a contract between the Agency and the. Holders, and the pledge made In each Bond Resolution by the Agency and the covenants ahd agreements set forth therein to be performed by the Agency shall be for the equal and proportionate benefit, security and protection of all Holders, without preference, priority or distinction as to security or otherwise of any of the Bonds or Coupons authorized thereunder over any of the others by reason of time of issuance, sale or delivery, S 08743.0--Texts Muiddpal-Proof of 8-23.76- Steck•Warlick-Phone (214) 631.3130 ARTICLE II Provisions Relating to the Series 1976 Bonds SECTION 2.01: Limitation of Provisions of this Article. The provisions of this article relate only to the Series 1976 Bonds. SECTION 2.02: Purpose for Which S.-4es 1976 Bondr are Authorized; Their Date. In orrlet to borrow the sum of Fifty Million Dollars ($50,1ri+0,000) for the purpose of providing funds with which to discharge certain costs and expenses of the Agency in connection with the acquisition cc construction of certain electric facilities to provide engineering, planning and financing expenses, for the purpose of paying off, discharging, cancelling, refunding and in lieu of the outstanding "Texas Municipal Power Agency Revenue Bonds, Serits 1975," and for the purpose of setting aside certain amounts for payment into the Bond Fund and the Peserve Fund, the Board has determined there shall be Issued and those is hereby ordered to be issued a Series of Coupon Bonds In the total principal amount of Fifty Million Dollars ($50,000,000) to be designated "Texas Municipal Power Agency Revenue Bonds, Series 1976." The Bonds shall be dated September 1, 1976. SECTION 2.03: Denomination, Maturity and Redemption of Series 1976 Bonds. The Series 1976 Bonds shall each be in denomination of Five Thousand Dollars ($5,000) and be numbered consecutively from 1 upward (numbered from 1 through 10,000) and shall mature and become due on September 1 In each of the years as follows: M. awry Amount 6 08743-0-Texas Municipal-Proof of 8-234"teck-Warlick-Phone (214) 631.3130 The Series 1576 Bonds shall be subject to redemption at the option of the Agency on or after September 1, . , as a whole at anytime, on any interest payment date thereafter, at the respective Redemption Prices (expressed as percentages of the principal amount of the Series 1976 Bonds to be redeemed) set forth below, in each case together with accrued interest to the redemption date: Period During Which Redeemed Redemption (both dares inclusive) Price The Series 1976 Bonds maturing September 1, 2012 shall be called for redemption prior to maturity on and on each 1 thereafter, at the price of par and accrued Interest, as follows: 1 Amount In lieu of calling bonds for redemption, the Agency may deliver Series 1976 Bonds to the Paying Agent (prior to the date of publicadon of the notice of redemption) in the princIpr1 amount up to the amount scheduled to be called for redempton In any one year and the principal amount of bonds so delivered shall be credited against the amount of bonds required to be called for redemption in that year. SeCTiox 2.04: Interest on Series 1976 Bonds. The Series 1976 Sonds shall bear interest from their date until paid at the rates per annum as follows: (1) Bonds maturing In each of the years through at (Il) Botids maturing In each o; the years through at (iii) Bonds maturing In each of the years through at (iv) Bonds maturing In each of the years through at , . (v) Bonds maturing In each of the years through at (vi) Bonds maturing in each of the years through at ....95. (vii) Bonds maturing in each of the years through at o. (vill) Bonds maturing in each of the years through at ....'''o. (Ix) Bonds maturing In each of the years through at elo. (x) Bonds maturing In each of the years though at h. Such Interest shall be evidenced by proper Coupons attached to each of such Bonds and said interest shall be payable on March 1, 1977, sad semiannually thereafter on September I and March 1 In each year. 7 081434-Texas Munlcipel-Proof of 8.23.76-Stect-Wariiclt-Phone (114) 631.3130 SECTION 2.05: Paying Agents. The principal of, i,_emium, if any, and interest on Series 1976 Bonds shall be payable at the office of the Paying Agents. Subject to tl-c provisions of Section 3.06. the Paying Agents for the Series 1976 Bonds shall be the Mercantile National Bank at Dallas, Dallas, Texas and the Manufacturers Hanover Trust Co., New York, New York and the Registrar for such Bonds shall be the Mercantile National Bank at Dallas, Dallas, Texas. SECTION 2.06: Characteristics of Series 1976 Bonds. The Series 1976 Bonds shall be Issued as Coupon Bonds, subject to registration as to principal only. SECT:nN 2.07: Form of Series 1976 Bonds, Coupons, Registration Ledger and the Certificate of the Comptroller of Public Accounts. The form of Series 1976 Bonds, Coupons, Registration Ledger and Certificate of the Comptroller of Public Accounts of the State of Texas shall be in substantially the following forms: SECTION 2.08: Application of Proceeds from Sale of Series 1976 Bonds. The proceeds derived from the sale of the Series 1976 Bonds shall be applied by the Board for the following purposes: (a) payment Into the Bond Fund of that portion of such proceeds that is allocable to accrued interest; (b) payment into thr '3ond Fund of such amount as, when added to the amount paid therein pursuant to the provisions t the preceding clause (a), will equal interest accrued and to accrue on the Series 1976 Bonds to September t, 1978. (c) payment into the Reserve Fund of an amount equal to the Average Annual Debt Service on the Series 1976 Bonds. (d) payment of the principal of and Interest on Texas Muncipal Power Agency Revenue Bonds, Series 1975, after application of the balance of the Reserve Fund created for the payment and security of the Series 1975 Bonds. (e) payment of the balance of said proceeds into the Construction Fund. SECTION 2.09: Execution of Bonds. The seal of said Agency may be impressed upon each Bond or in the alternative a facsimile of such seal may be printed thereon. Such Bonds and Coupons, If any, may be executed by the imprinted facsimile signatures of the President and Secretary of the Board, and execution in such manner shall have the same effect as if such Bonds and Coupons had been signed by th3 President and Secretary In person by their manual signatures. Inasmuch as such Bonds are required to be registered by the Comptroller of Public Accounts for the State of Texas, only his signature (or that of a deputy designated in writing to act for the Comptroller) shall be required to be manually subscribed to such Bonds in connection with his registration c.;rti8cate to app:ar thereon, all in accordance with the provisions of Article 717j-1, Revised Civil Statutes of Texas, 1925, as amended. In case any officer or officers who shall have executed any of the Bonds or Coupons, if any, shall cease to be such officer or officers of the Agency after delivery of such Bonds, but before the Bonds so executed shall have been actually authenticated and delivered to the purchasers thereof, such Bonds may nevertheless be delivered as though the person or persons who executed and sealed such Bonds had not ceased to be such officer or officers of the Agency upon compliance with Article 716, Revised Civil Statutes of Texas, 1925, as amended. 8 08743-0-Texas Munlcipsl-Proof of 8.23.76-Steck•Wartick--Phone (214) 631.3130 SECTION 2.10: CUSIP Numbers. CUSIP numbers are to be printed on the Bonds herein authorized. ' It is expressly provided, however, that the presence or absence of CUSIP numbers on the bonds shall be of no significance or effect as regards the legality thereof and neither the Agency nor attorneys approving said bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed on the bonds. SECTION 2.11: Printed Legal Opinion On Bonds. The purchasers' obligation to accept delivery of the Series 1976 Bonds herein authorized is subject to their being furnished a final opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. Printing of a true and correct copy of said opinion on the reverse side of each of such Bonds with appropriate certificate pertaining thereto executed by facsimile signature of the Secretary of the Agency Is hereby approved and authorized. SECTION 2.12: E$crt of Mandatory Redemption Provisions: The date of mandatory redemption sball be considered a principal payment date. 9 08743-0-Texas Municipal-Proof of 8.23.76- uck•Warlick-Phone (214) 631.3130 ARTICLE III Tarns and Provisions of Bonds SECTION 3.01: Terms. (a) Additional Bonds may be issued in such Series as may from time to time be established and authorized by the Agency in a Bond Resolution. Each Bond shall bear upon its face the designation so determined for the Serves to which it belongs. (b) The principal of, premium, if any, and interest on the Bonds shall be payable in lawful money of the United States of America at the office of the applicable Paying Agent. (c) Additional Bonds of any Series may be issued as Coupon Bonds which may be registrable as to principal only, or In fully registered form without coupons and be numbered and be In such denomination or denominations and contain such other provisions as specified In the Bond Resolution authorizing such Series, (d) From and after the issuance of the Bonds of any Series, the findings and determinataoas of the Agency respecting that Series shall be conclusive cvidence of the existence of the facts so found and determined. The recital contained in any of the Bonds that the same are issued pursuant to the Act shall be conclusive evidence of their validity and of the regularity of their issuance. As provided In the Act, Bonds shall be incontestable from and after their approval by the Attorney General of Texas. SECTION 3.02: Transfer of Coulon Bonds. All Coupon Bonds shall be negotiable and transferable by delivery, unless registered as to principal in the manner provided in Section 3.03. The Agency and any Paying Agent may treat the bearer of any Coupon Bond which shall not at the time be registered as to principal, whether or not such Bond shall be overdue, and the bearer of any Coupon, whether or not such Coupon shall be overdue, as the absolute owner of such Bond or Coupon for the purpose of receiving payment thereof and for all other purposes whatsoever, and the Agency and any Paying Agent shall not be affected by any notice to the contrary. SECTION 3.03: Registration of Coupon Bondi. (a) Upon presentation of any Coupon Bond at the principal office of the Registrar for such purpose by the Holder thereof, the Registrar will register or cause to be registered, on the books required to be kept pursuant to Section 3.04, itt the name of such Holder or his nominee, the owner- ship of the principal of such Bond, such registration being noted on the Bond. After such registration and notation, no transfer of any such Bond registered otherwise than as to bearer shall be valid, unless made on sail books at the request of the registered owner or by his duly authorized attorney and similarly noted on the Bond; but such Bond may be discharged from registration by being in like manner transferred to bearer, and thereupon negotiability and transferability by delivery shall be restored; and such Bond may again and from time to time be registered or transferred to beater, as before. Such registration, however, shall not affect the negotiability of the Coupons, but every such Coupon shall continue to be negotiable and transferable by delivery merely and shall r-main payable to dearer, and payment thereof to bearer shall fully discharge the Agency and any Paying Agent In res t of the interest therein mentioned, irrespective of whether the Bond therein mentioned be at the time registered as to principal. (b) AEI transfers, registrations and discharges from registerei n of Coupon Bonds shall be made under such reasonable regulations as the Registrar may prescribe and shall be without expense to the Holder of the Bonds; except that any taxes or other governmental charges required to be paid with respect to the same shall be paid by such Holder requesting such transfer, registration or discharge from registration as a condition precedent to the exercise of such privilege. (c) As to any Coupon Bond registered as to principal, the person In whose name the same shall be registered s:;all be deemed the owner thereof for all purposes of any Bond Resolution, and payment of or on atxount of the principal of such bond shall be made only to or upon the order In writing of to 08743-0-Texas Municipal-Proof of 8-23-7"teck-Wsrilck-Phone (214) 631-3130 such registered owner, but such registration may be changed as hereinbefore provided. All such pay- meats shall be valid and effectual to satisfy and discharge liability upon such Bond to the extent of the sum or sums so paid. SECTION 3.04: Bond Registration Books. The Registrar will keep or cause to be kept, at its office, sufficient books for the registration and transfer of the Bonds, which shall at all times be open to inspection by the Agency; and, upon presentation for such purpose, the Registrar shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, Bonds as hereinbefore provided. SECTION 3.05: Replacement of Damaged, Destroyed, Lost or Stolen Bonds. The Agency may issue Bonds to be exchanged for any theretofore lawfully Issued and Outstanding damaged or mutilated Bonds and as replacements for any theretofore lawfully Issued and Outstanding destroyed, lost or stolen Bonds, all in accordance with and under conditions specified or permitted by Article 7153, Revised Civil Statutes of Texas, 1925, as amended, relating to the subject. SECTION 3.06: Paying Agents, Appo!nrment and Removal. The Agency shall appoint a Paying Agent or Palling Agents for the Bonds of each Series In the Bond Resolutions. The Agency shall pay or cause to be paid from the Bond Fund to the Paying Agents for all Series of Bonds funds required for the prompt payment of the Bonds. The Agency may remove any Paying Agent and any successor thereto, and appoint a successor or successors thereto. SECTION 3.07: Fees, Charges and Expenses of the Paying Agents and Registrar. The Paying Agents shall be entitled to payment of a fee for paying each Bond and each Coupon, and for acting as Registrar, 1 i 11 08743-0-Texas Municipal-Proof of 8.23.76-Steck-Warllck-Phone (214) 631.3130 ARTICLE IV Redemption of Bonds SECTION 4.01: Privilege of Redemption of Bonds. Any Series of Bonds subject to redemption prior to maturity pursuant to a Bond Resolution shall be redeemable, upon notice being given as provided in this Article, at such times, at such Redemption Prices and upon sc-h terms (in addition to and consistent with the terms contained in this article) as may be specified in the Bond Resolution authorizing the Issuance of the Bonds of such Series. SECTION 4.02: Selection of Bonds for Redemption. If less than all of the Bonds of any Series maturing on any single date are called for redemption, the Agency shall select the Bonds to be re- deemed, by lot from the Outstanding Bonds of such Series maturing on that date not previously called for redemption, unless the applicpbie Bond Resolution makes other provisions. In determining the St.-ies of Bonds to be redeemed (in whole or in part) the Board shall exercise its discretion, wblcb when exercised shall be conclusive. SECTION 4.03: Notice of Redemption. (a) Notice of redemption (except as provided below) shall be given by publication at least once prior to the redemption date in the Financial Newspaper, such publication to be not less than thirty days before such redemption date. If any Bond called for redemption is registered as to principal or Is fully registered, notice of redemption thereof shall also be mailed, not less than thirty days prior to the redemption date, to the registered owner thereof, bit neither failure to mail such notice nor any defect in any notice so mailed shall affect the sufficien.y o: the proceedings for the redemption thereof. Each notice of redemption shall state the redemption date, the place of redemption, the principal amount and, if less than 0, the distinctive numbers of the Bonds to be redeemed, and shall also state that the interest on the Bonds in such notice designated for redemption shall cease to accrue from and after such reL;:mpdon date and that on said date there will become due and payable on each of said Bonds the Redemption Price thereof plus accrued Interest. If at the time of giving notice of redemption no Bonds are Outstanding except Bonds registered as to principal or fully registered Bonds, publication of such notice shall be deemed to have been waived if the Registrar executes a certificate to the effect that such notice was mailed to each registered owner of such Bonds at his address as it appears on the Bond Ledger of the Registrar or at such address as he may have filed with the Registrar for that purpose. (b) Notice of redemption shall also be given in writing to the appropriate Paying Agent. (c) Notice of redemption shall be given by an Authorized Cdicer. The Agency shall deposit with, or otherwise make available to, the appropriate Paying Agents ti. money required for payment of the Redemption Price plus accrued Interest to the redemption Mate on ail Bonds then to be called for redemption at least three business days before the data fixed for such redetption. SECTION 4.04: Effect of Redemption. If notice of redemption has been duly given as aforeslld, then such bonds shall, on the redemption date designated In such notice, become due and payabl., at the Redemption Price specified in such notice plus accrued Interest. If sufficient moneys for payment of the Redemption Price plus accrued Interest on the bonds to called for redemption is held by the appropriate paying agent, then from and after the date so designated for redemption, interest on the bonds so called for redemption shall cease to accrue, and Coupons thereon maturing subsequent to the redemption data shall be void and Holders of such Bonds shall have no rights in respect thereof except to receive payment of the Redemption Price thereof plus ac^rued interest. An un- paid Interest installments represented by Coupons which sball have matured on or prior to the date of redemption designated In such notice shall continue to be payable to the bearers severally and respectively upon the presentation and surrender of such Coupons. SECTION 4.03: Dapositton of Redeemed Bonds. All Bonds redeemed pursuant to the provisions of this Article or purchased by the Agency and the appurtenant Coupons, if any, shall be cancelled by the appropriate Paying Agents and shall tbereaftr be delivered to, or upon the order of, the Agency. 12 0810-0---Texas Munlclpal-Proof of 8.234"teck-Warlick-Phone (214) 631-3130 . ALTICLE V - Pledge Creation and Administration of Funds SECTION 5.01: Pledge. The Bonds shall be and are hereby declared to be payable solely from and, subject to the provisions of this Resolution permitting the application thereof for the purposes and on the terms and conditions set forth herein, equally secured by an irrevocable first lien on and pledge of (1) the Net Revenues and (6) all Funds (including the investments therein) established by this Bond Resolution, other than the Revenue Fund. SECTION 5.02: The Revenue Fund. The Revenue Fund is hereby created and established and shall be held by a Depository. The Gross Revenup of the Agency shall be deposited as received Into dle Revenue Fund. Money on Deposit in the Revenue Fund shall be used In the following order of priority: (1) For the payment of Operation and Maintenance Expenses of the System as the same become due. (2) For deposits into the Bond Fund hereby established and created for the payment of the principal of, premium, if any, and interest on the Bonds as the same become due or are required to be called for redemption, as required by Section 5.03, and to the purchase of Bonds as permitted by Section 2.03. The Bond Fund shall be used only for such purposes. (3) For deposits Into the Reserve Fund hereby established and created for the security and payment of the Bonds when there is a deficiency of money available for such purpose In the Bond Fund, as r„ quired by Section 5.04. (4) For deposits into the Contingency Fund hereby established and created to the extent required by Section 5.06. (5) To cure a deficiency in the Bond Fund, the Reserve Fund, and the Contingency Fund, in that order. (6) For any lawful purpose, Including (a) deposits Into a Fuel Reserve Account (hereby established as a part of the Revenue Fund) for use In paying the cost of fuel acquisition or replacement or fuel working capital, and uninvested money therein shall be applied only to the cost of acquisition, leasing, reprocessing and replacement and disposal of fuel and fuel resources, assemblies, materials, services and components; and (b) for distribution to the Cities on such basis as the Board may determine would be fair and equitable if the Board determines an amount of money (and investments) will not be required for the purposes mentioned in this Section. SECTION 5.03: Bond Fund. The Bond Fund shall be held in trust as an acco-mt of the Agency by the Mercantile National Bank at Dallas, Dallas, Texas as custodian of said Fund, said Fund to be held in trust for the benefit of the Holden. The Agency may remove such bank as custodian and designate another bank (within the State of Texas) as custodian of said Fund. In conjunction with the preparation of the annual budget, and Immediately following the delivery of a Series of Bonds, the Board shell cause a determination to be made (I) of the amount then on deposit In the Bond Fund for the purpose of paying and discharging (a) Interest on Outstanding Bonds to become due, and (b) the principal to become due, by reason of maturity or mandatory redemption, and 13 08743-4-Texas Munldpal-Proof of 8-23-76-Steck-Warlick--Phone (214) 631.3130 00 the amount required to be deposited each month so as to provide, in equal monthly installments, the full amount required to pay such p,incipal and interest as the same becomes due. The Board shall (on or before the 25th day of each month) cause the amount so determined [in clause (ii) of the preceding paragraph] to be transferred from the Revenue Fund to the Bond Fund. In addition to the amounts provided for bond interest and principal requirements, the Agency shall make appropriate arrangements for meeting the fees and charges of the Paying Agents. In the event the amount on hand and available in the Revenue Fund for transfer to the Bond Fund is insufficient to permit the required deposit in full in accordance with provisions of this Section, then the amount of any deficiency shall be transferred by the Agency to the Bond Fund from other Funds crerted and established by this Resolution as herein provided. SECTION 5.04: Reserve Fund. The Reserve Fund shall be held 1:1 trust as an account of the Agency by the Mercantile National Bank at Dallas, Dallas, Teems as custodian of said Fund, said Fund to be held in trust for the benefit of the Holders. The Agency may remove such bank as custodian and designate another bank (within the State of Texas) as custodian of said Fund. The amount to be accumulated and maintained in the Reserve Fund shall be the Average Annual Debt Service of the Bonds Outstanding calculated as of the date of and after giving effect to the last Series of Bonds delivered. In the event monies in the Revenue Fund are not adequate to fully make any required transfer to the Bond Fund (as required by Section 5.03) an amount equal to the deficiency shall be transferred to the Bond Fund from the Reserve Fund unless such amount has been transferred to the Bond Fund from the Contingency Fund. In the event money in the Reserve Fund is transferred to the Bond Fund monthly 6eposits into the Reserve Fund shall be made on or before the 25th day of each month (not more than 36 equal monthly Installments) until the amount required to be on deposit in the Reserve Fund has been restored. SECT104 5.05: Limitations upon Deposits to the Bond Fund and the Reserve Fund. Whenever amounts in the Bond Fund, together with amounts in the Reserve Fund, shall be sufficient 10 pay the p.-inclpal of and Interest on all Bonds then Outstanding in accordance with their terms, and shall be available for such purposes, then and so long as such amounts shall continue to be available and fully sufficient for such purposes, further transfer of moneys from the Revenue Fund to the Bond Fund or Reserve Fund shall not be required. Whenever all Bonds at the time Outstanding shall have been called for redemption and amounts then In the rind Fund, together with amounts in the Reserve Fund, shall be sufficient to pay the Redemption Price of all such Bonds and interest due thereon to the redemption date, and shall be available for such purpose, then and so long as such amouu•,ts shall continue to be available and fully sufficient for such purpose, further transfers of moneys to the Bond Fund or to the Reserve Fund shall not be required. Any amounts on deposit in the Reserve Fund which are In excess of the amount required to be on deposit therein shall be transferred to the Bond Fund to make up any deficiency therein, and if there be no such deficiency, may be transferred to the Revenue Fund. SECTION 5.06: Contingency Fund. The Contingency Fund shall be held by a Depository. On or before the Date of Commercial Operation of the initial electric generating facility owned (in whole or in part) or of gated by or on behalf of the Agency, the sum of not less than $2,000,000 shall be deposhed in the Contingency Fund from proceeds of Bonds or other funds of the Agency legally available therefor. The amount to be accumulated and maintained in this Fund may be Increased if the same is accomplished In the manner provided In the Power Sales Contract. 14 08743-0--Texas Municipal-Proof of 8.234"teck-WarUck-Phone (214) 631-3130 In the event the amount on hand in said Fund Is less than the Contingency Fund Requirement, monthly deposits shall be made from the Revenue Fund on or before the 25th day of each month (not more than 36 equal monthly installments) until the full amount of the Contingency Fund Require- ment is on deposit therein. Any emount on deposit in the Contingency Fund which is In excess of the Contingency Fund Requireme; t shall be transferred to the Bond Fund or Reserve Fund to make up any deficiency therein, and if there be no such deficiency, shall be transferred to the Revenue Fund. Money in the Contingency Fund may be used, it funds are not otherwise available for such purpose, for any one or more of the following purposes: (a) to pay the cost of extraordinary renewals, replacements and additions to anti extensions of the System which are required for the continuing operation of the System or any part thereof; and (b) to pay the cost of extraordinary operation and maintenance costs, including extraordinary costs of fuel and the cost of preventing or correcting any unusual loss or damage (Including major repairs), to the System, or the retirement from service, decommissioning or disposal of facilities of the System, and (c) for the security and payment of the Bonds when there is a deficiency of money available for such purpose in the Bond Fund, the Reserve Fund, either or both. SECTtoN 5.07: Construction Fund. (a) The Construction Fund is hereby established and created and shall be held by a Depository. There shall be paid into the Construction Fund the amounts required to be so paid by the provisions of any Bond Resolution and any moneys from other sources which the Board may elect to deposit therein. Amounts in the Construction Fund, except as otherwise provided herein, shall be applied to the payment of the Cost of Acquisition and Construction. (b) The Agency may establish within the Construction Fund a separate project account for each project of the Agency but in any event shall provide for accounting controls with respect to the expenditures of amounts from the Construction Fund as to assure application of moneys therein as required by the Bond Resolution and applicable law. (c) The proceeds of insurance maintained pursuant to the Bond Resolution against physical loss of or damage to the System, or of contractors' performance bonds with respect thereto, pertaining to the period of construction thereof of any project wall be paid into the Construction Fund. (d) Notwithstanding any of the other provisions of this Section, to the extent that other moneys are not available therefor, amounts in the Construction Fund shall be applied to the payment of the principal of, premium, if any, and interest on Bonds when due. (e) Amounts in the Construction Fund shall be invested and reinvested to the fullest extent practicable in Investment Securities as directed by the Agency., Earnings from such Investments shall be retained in the Construction Fund. (f) The substantial completion of construction or reconstruction of each project shall be evidenced by certificate of the Authorized Officer, which shall be filed with the Depository of the Cotstruction Fund, stating (1) that such project has been completed substantially in accordance with the plans and sped- fieations applicable thereto, (il) the date of such substantial completion and (Iii) the amounts, If any, required for the payment of any remaining part of Cost of Acquisition and Construction of such project. Upon the filing of such certificate, the balance in the Construction Fund allocable to such project In e,..ess of the amount, if any, stated in such certificate shall be deposited in the Bond Fund or Reserve Fund, to the extent of any otficiencies therein, and to the extent there are no such deficlencles, may be deposited in the Bond Fund for use in retiring Bonds in advance of their regularly scheduled maturity or used for other proper expenditures from the Construction Fund as the Agency may direct. IS 08743-0-Texas Munleipal-Proof of 8.23.76--lock-Warlick--Phone (214) 631.3130 ARTICLE VI Covenants of the Agency SECTION 6.01: Punctual Payment of Bonds. The Agency will punctually pay or cause to be paid the principal of, premium if any, and interest on the Bonds in strict conformity with the terms of any Bond Resolution, and according to the true intent and meaning thereof. SECTION 6.02: Against Encumbrances, Exce~ t as permitted by Section 6.19, the Agency aril] not create, and will use its best efforts to prevent the creation of, ar,y mortgage or lien upon the System or any part thereof or any property essential to the proper operation of the System or to the maintenance of the revenues therefrom. The Agency will not create, or permit th; creation of, any pledge, lien, charge or encumbrance upon the revenues except only as provided iii or permitted by a Bond Resolution. SECTION 6.03: against Sale or Other Disposition of Property. Except as permitted by Section 6.19, the Agency will not sell or otherwise dispose of aay property essential to the proper operation of the System or to the maintenance of the revenues. The Agency will not enter into any lease or agreement which impairs or impedes the operation of the System or which impairs or impedes the rights of the Bondholders with respect to the Net Revenues. SECTION 6.04. Maintenance and Operation of System. The Agency, upon the acquisition or construction of an operating System, will operate the same continuously, to the extent practicable under conditions as they may from time to time exist, In an efficient and economical manner, and will at all times maintain, preserve and keep, or cause to be maintained, preserved and kept, the System, including all parts thereof and appurtenances thereto, in good repair, working order and condition, and in such manner that the operating efficiency thereof will be of high character, and the Agency will from time to time make, or cause to be made, :+ll necessary and proper repairs and replacements so that the business carried on in connection with the System by the Agency may be properly and advantageously conducted in a manner consistent with prudent mana,ement, and so that the rights and security of the Holders of the Bonds are fully protected and preserved. SECTION 6.05: Maintenance of Revenues, Power Sales Contracts. (a) The Agency will at all times comply with all terms, covenants and provisions, express and implied, of ail contracts and agreements entered into by it for electric power and energy furnished by of available to the System and all other contracts or agreements affecting or involving the System or the business of the Agency with respect thereto. The Agency shall promptly collect all charges due for electric power and energy and services supplied by It as the same become due, and shall at all times maintain and promptly and vigorously enforce its rights against any party who does not pay such charges when due. (b) The Agency shall enforce the provision of 'he Power Sales Contracts and duly perform its covenants and agreements thereunder. SECTIoN 6.06: Observance of Laws and Regulations. The Agency will well and truly keep, observe and perform all valid and lawful obligations or orders or regulation now or hereafter Imposed on it by contract, or prescribed by any law of the United States of America or of the State of Texas, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of any and every tight, privilege or franchise now owned or hereafter acquired by the Agency, Including its right to exist and eery on business, to the end that such rights, privileges and franchises shall be maintained and preser<0, and shall not become abandoned, forfeited or In any manner Impaired; provided, however, that the Agency shall not be required to comply with any such orders to long as the validity or application thereof shall be contested in good faith. SECTioN 6.07: Payment of Tares and Calms. The Agency will, from time to time, duly pay and discharge, or cause to be paid and discharged, any toes, assessments or other governmental 16 08743-0-Texas Mutildpal-Proof of 8.234"teck-Wsrtick-Phone (214) 691.3130 ' charges lawfully Imposed on it or its properties when the same shall become due, and will duly observe and conform to all valid requirements of any governmental authority relative to any such properties. The Agency will keep the System and all parts thereof free from a71 other liens, claims, demands and encumbrances to the end that the priority of the Gan of the Bond Resolution on the Net Revenues may at Ill times be maintained and preserved. Nothing herein shall be construed as requiring the Agency to pay any tax, claim assessment or governmental charge or comply with any regulation during the time the validity thereof Is being ques- tioned by the Agency. SECTION 6.08: Insurance. Subject in each case to the condition that insurance Is obtainable at reasonable rates and upon reasonable terms and conditions: (a) The Agency will procure and maintain, or cause to be procured.and maintained, at all times while any Bonds shall be Outstanding, Insurance on the System in such amounts and against such risks as are usually insurable in connection with similar systems and are usually carried by electric utilities operating similar systems. Such insurance shall be adequate in amount and as to the risks insured against, and shall be maintained with responsible insurers. (b) The Agency will procure and maintain, or cause to be procured and maintained so long as any Bonds shall be Outstanding, public liability and property damage insurance as Is usually carried by municipal electric utilities operating similar properties. (c) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and employees handling or responsible for funds of the Agency. (d) The obligation hereunder to procure and maintain insurance with respect to a Joint Project shall be met if the entity, acting as the manager of the Joint Project, obtains and maintains the Insurance required for the benefit of all owners of the Joint Project as their interest may appear. (e) The Agency may establish and create a special fund with and to be held by a Depository for the purpose of providing a self insurance fund and the amount deposited In such fund in any Fiscal Year shall be charged as an Operating and Maintenance Expense. Money In such fund, If treated, may be Invested in Investment Securities, and Interest Income or increment may be retained therein or transferred to the Revenue Fund as may be determined by the Agency as evidenced by a Written Certificate of the Agency. To the extent amounts may be held in such fund, the face amount of appropriate Insurance policies may be reduced. SECTION 6.09: Books and Recordy. The Agency covenants that proper books of record and account will be kept In which full, true and correct entries will be made of all Income, expenses and transactions of and in relation to the System, and each and every part thereof, in accordance with Generally Accepted Accounting Principles. On or before 120 days after the close of each Fiscal Year of the Agency, beginning with the Fiscal Year ending In 1976, a statement showing the gross operating Income and revenues, the operating and maintenance charges and the net operating income of the System for the Fiscal Year then last completed, and a balance sheet of the Agency as of the end of such last Fiscal Year, all certified by an Independent Certified Public Accountant, will be made available at the office of the Agency. The Agency further covenants and agrees that the System, and each and every part thereof, and ail boo' s, records, accounts, documents and vouchers relating to the construction, operation, maintenance, repair, Improvement and extension thereof, will at all times be open to Inspection of the Holden of Bonds and their representatives. SECTION 6.10: Rare: and Charges. The Agency will, at all times while any of the Bonds shall be Outstanding, establish, fix, prescribe and collect rates and charges for the sale or use of electric power and energy or services produced, transmitted, distributed or furnished by the System which, together with other Income, are reasonably expected to yield N,st Revenues equal to at least 1.23 times 17 08743.4-Texas Municipal-Proof of 8.23.76-Steck-Wartick-Phone (214) 631.3130 charges lawfully imposed on it or its properties when the same shall become due, and will duly observe and conform to all valid requirements of any governmental authority relative to any such properties. The Agency will keep the System and all parts thereof free from all other liens, clahns, demands and encumbrances to the end that the priority of the lien of the Bond Resolution on the Net Revenues may at all times be maintained and preserved. Nothing herein shall be construed as requiring the Agency to pay any tax, claim assessment or governmental charge or comply with any regulation during the time the validity thereof is being ques. tioned by the Agency. SECTtoN 6.09: Insurance. Subject h: each case to the condition that Insurance is obtainable at reasonable rates and upon reasonable terms and conditions: (a) The Agency will procurr+ 9nd maintain, or cause to be procured and maintained, at all times while any Bonds eh,n ue Outstaukling, insurance on the System in such amounts and against ' such risks as are usually insurable in connection with similar systems and are usually carried by electric utilities operating similar system!. Such insurance shall be adequate in amount and as to the risks Insmed against, avAd shall be maintained with responsible insurers. (b) The Agen%,y wftl procure and maintain, or cause to be procured and maintained so long as any Bonds shall be Outstanding, public liability and property damage Insurance as is usually carried by municipal electric utilities operating similar properties. (c) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and employees handling or responsible for funds of the Agency, (d) The obligation hereunder to procure and maintain insurance with respect to a Joint Project shall be met if the entity, acting as the manager of the Joint Project, obtains and maintains the insurance required for the benefit of all owners of the Joint Project as their interest may appear. (e) The Agency may establish and create a special fund with and to be held by a Depository for the purpose of providing a self insurance fund and the amount deposited in such fund In any Fiscal Year shall be charged as an Operating and Maintenance Expense, Money In such fund, if created, may be Invested in Investment Securities, and interest income or facrement may be retained therein or transferred to the Revenue Fund as may be determined by the Agency as evidenced by a Written Certificate of the Agency. To the extent amounts may be held in such fund, the face amount of appropriate Insurance policies may be reduced, SFr.TtoN 6.09: Books and Records. The Agency covenants that proper books of record and account will be kept in which full, true and correct entries will be made of all Income, expenses and transactions of and in relation to the System, and each and every part thereof, In accordance with Generally Accepted Accounting Principles. On or before 120 days after the close of each Fiscal Year of the Agency, beginning with the Fiscal Year ending in 1976, r statement showing the gross operating Income and revenues, the operating and maintenance charges and the net operating Income of the System for the Fiscal Year then last completed, and a balmee sbeet of the Agency as of the end of such last Fiscal Year, all certified by an independent Certified Public Accoununt, will be made available at the office of the Agency. The Agency further covenants and agrees that the System, and each and every pad thereof, and all books, records, accounts, documents and vouchers relating to the construction, operation, maintenance, repair, improvement and extension thereof, will at all times be open to Inspection of the Holden of Bonds and their representatives. 4 SBCnoN 6.10: Rates and Charges, The Agency will, at all times while any of the Bonds shall be Outstanding, establish, fix, prescribe and collect rates and charges for 6e sale or use of electric power and energy or services produced, transmitted, distributed or furnished by the System w'alcb, together with other income, are reasonably expected to yield Net Revenues equal to at Iea.t 1.25 times 17 08743-0---Texas Municiprd-Proof of 8-23.76-Steck•Warlick-Phone (214) 631.31!0 charges lawfully imposed on it or its properties when the same shall become due, and will duly observe and conform to all valid requirements of any governmental authority relative to any such properties. The Agency will keep the System and all parts thereof free from all other liens, claims, demands and encumbrances to the end that the priority of the lien of the Bond Resolution on the Net Revenues may at all times be maintained and preserved. Nothing herein shall be construed as requiring the Agency to pay any tax, claim assessment or governmental charge or comply with any regulation during the time the validity thereof is being ques- tioned by the Agency. SECTION 6.03: Insurance. Subject in each case to the condition that insurance is obtainable at reasonable rates and upon reasonable terms and conditions: (a) The Agency will procure and maintain, or cause to be procured and maintained, at all times while any Bonds shall be Outstanding, insurance on the System in such amounts and against such risks as are usually insurable in connection with similar systems and are usually carried by electric utilities operating similar systems. Such insurance shall be adequate in amount and as to the risks insured against, and shall be maintained with responsible insurers. (b) The Agency will procure and maintain, or cause to be procured and maintained so long as any Bonds shall be Outstanding, public liability and property damage insurance as is usually carried by municipal electric utilities operating similar properties. (c) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and employees handling or responsible for funds of the Agency. (d) The obligation hereunder to procure and maintain insurance with respect to s Joint Project shall be met if the entity, acting as the manager of the Joint Project, obtains and maintains the insurance required for the benefit of all owners of the Joint Project as their interest may appear. (e) The Agency may establish and create a special fund with and to be held by a Depository for the purpose of providing a self insurance fund and the amount deposited in such fund In any Fiscal fear shall be charged as an Operating and Maintenance Expense. Money in such fund, if created, may be invested in Investment Securities, and interest income or increment may be retained therein or transferred to the Revenue Fund as may be determined by the Agency as evidenced by a Written Certificate of the Agency. To the extent amounts may be held in such fund, the face amount of appropriate insurance policies may be reduced. SECTION 6.09: Books and Records. The Agency covenants that proper books of record and account will be kept in which full, true and correct entries will be made of all income, expenses and transactions of and In relation to the System, and each and every part thereof, in accordance with Generally Accepted Accounting Principles. On or before i2C days after the close of each Fiscal Year of the Agency, beginning with the Fiscal Year ending in 1976, a statement showing the gross operating Income and revenues, the operating and maintenance charges and the net operating income of the System for the Fiscal Year then last completed, and balance sheet of the Agency as of the end of such last Fiscal Year, all certified by an Independent Certified Public Accountant, will be made available at the office of 6•t Agency. The Agency further covenants and agrees that the System, and each and every part thereof, and all books, records, accounts, documents and vouchers relating to the construction, operation, maintenance, repair, improvement and extension thereof, will at all times be open to Inspection of the Holders of Bonds and their representatives. SECTION 6.10: Rates and Charges. The Agency will, at all times while any of the Bonds shall be Outstanding, establish, fix, prescribe and collect rates and charges for tha sale or use of electric power and energy or services produced, transmitted, distributed or furnished by the System which, together with other Income, are reasonably expected to yield Net Revenues equal to at least 1.25 times 17 08743-0--Texas Municipal--Proof of 8.23-76-Steck-Warlick-Phone (214) 631-3130 r the Debt Service of all Outstanding Bonds for the Fiscal Year for which such rates and charges shall apply, (but excluding amounts deposited in the Bond Fund payable as interest in such Fiscal Year which were provided from the proceeds of Bonds) and, promptly upon any material change in the circumstances which were contemplated at the time such rates and charges were most recently reviewed, but not less frequently than once in each Fiscal Year, shall review the rates and charges for electric power and energy and services and shall as necessary revise such rates and charges to comply with the foregoing requirement, provided that such rates, charges and income shall in any event produce moneys sufficient to enable the Agency to comply with all its covenants under tha Bond Resolution and to • pay all obligations of the Agency, in'ading Subordinated Indel.tedness. SECTION 6.11: Eminent Domain. If all or any part of the System shall be taken by eminent domain proceedings or conveyance in lieu thereof, the net proceeds realized by the Agency therefrom shalt be deposited in the Construction Fund. SECTION 6.12: Reconstruction of the System; Application of Insurance Proceeds. If any useful portion of the System shall be damaged or destroyed, the Agency shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted the reconstruction or replacement thereof, unless the Agency determines that such reconstruction or replacement is not in the interests of the Agency and the Bondholders. The proceeds of any insurance paid on account of such damage or destruction, other than business interruption loss insurance, shall be paid into the Construction Fund and made available for, and to the extent necessary applied to, the cost of such reconstruction or replacement, if any. Pending such applicatiof, such proceeds may be invested by the Agency in Invest- ment Secu,ides. SECTtoN.6.13: Limitations on Free Use of FarUities. None of the net electric power and energy owned, controlled or supplied by the Agency or other services shall be furnished or supplied free. U the Agency shall sell fuel or water developed or made available by or for the System, a reasonable charge therefor shall be made. SECTION 6.14: Power to Issue Bonds and Pledge Revenues and Other Funds. The Agency Is duly authorized under all applicable laws to create and issue the Bonds and to adopt this Bond Resolution and to pledge the Net Revenues and other moneys, securities and funds purported to be pledged by this Bond Resolution in the manner and to the extent provided in this Resolution. The Bonds and the provisions of all Bond Resolutions are and will be the valid and legally enforceable obligations of the Agency in accordance with their terms and the terms of the such Bond Resolutions. The Agency shalt at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Net Revenues and other moneys, securities and funds pledged under the Bond Resolutions and all the rights of the Holders urder the Bond Resolution against all claims and demand of all persons whomsoever. SECTION 6.15: Power to Construct and Operate System and Collect Rates and Fees. The Agency has, and will have so long as any Bonds are Outstanding, good right and lawful power to construct, reconstruct, Improve, maintain, operate and repair the facilities of the System and to fiat and udlect rates, fees and other charges in connection with the System, subject to the jurisdiction of any applicable regulatory authority. SECTION 6.16: General (a) The Agency shall do and perform or cause to be done and performed all acts and things required to be done or performed by or on behalf of the Agency under the provisions of the Act and the Bond Resolution. (b) Upon the date of delivery of any of the Bonds all acts, conditions and things required by law and the Bond Resolution to exist, to have happened and to have been performed precedent to and I 18 08743-0--Texas Munleipal-Proof of 8-23-76-Steck-Warlick-Phone (214) 631.3130 in the issuance of such Bonds shall exist, have happened and have been performed in regular and In due time, form and manner as required by law and the Agency will have duly and regularly complied with all applicable provisions of law and will be duly authorized to issue the Bonds under the Act in the manner and upon the terms as in the Bond Resolution provided. (c) The Agency may purchase Bonds of any Series from any available funds at public or private sale, as and when and at such prices as the Agency may in its discretion determine, but no purchase shall be made at a price exceeding the then current market price or, in the case of Bonds which by their terms are subject to redemption prior to maturity, the then current or first applicable Redemption Price. SECTION 6,17: Engineer. The Agency may retain one or more recognized independent engineers or engineering firms as appropriate for the purpose of providing the Agency with engineering counsel. Any engineer employed pursuant to this Section shall be selected with the special reference to his knowledge and experience in the matter for which he is retained. SECTION 6.18: Annual Budget. Prior to the beginning of the Fiscal Year commencing October I, 1976, and not less than 30 days prior to the beginning of each Fiscal Year thereafter, the Agency shall adopt an Annual Budget for the ensuing Fiscal Year which shall set forth in reasonable detail the amount of money on band, estimated Gross Revenues and Operating and Maintenance Expenses and other expenditures of the System for such Fiscal Year and the estimated amount to be de• posited during such Fiscal Year in the Funds established by the Bond Resolution. At the end of the sixth month of each Fiscal Year the Agency shall review its estimates of Gross Revenues and Operating and Maintenance ixpenses for such Fiscal Year, and in the event such estimates do not substantially conespond with actual Gross Revenues or Operating and Maintenance Expenses, the Agency may adopt an amended Annual Budget for the remainder of such Fiscal Year, The Agency may also at any time adopt an amended Annual Budget for the remainder of the then current Fiscal Year. SECTioN 6.19: Acquisition and Disposal of Fuel Resources. In connection with the acquisition of fuel resources the Agency may from time to time encumber, as a purchase money mortgage, any land or rights in land or fuel resources and execute a deed of trust note as additional security therefor and such note may be made payable as provided in Section 7.04. Fuel may be sold by the Agency, as contemplated by Section 6.13, if the Board determines such sale would be in the best interest of the Agency. SECTION 6.20: Covenants as to Power Sales Contracts, other Agreements. The Agency covenants that it will not do any act or omit to do any act which would cause a breach of contract or cause the Agency to be In default of any covenant, condition or provision of the Power Sales Contract or any agreement with respect to any Joint Project and it will enforce all the terms and conditions of such contracts against the parties thereto. SECTION 6.21: Sale of an Ownership Interest in Electric Facilities. In the event another entity (as defined in the Act) acquires or increases its ow-iership interest in a Joint Project (as permitted by the Act) the money received by the Agency shall be placed In a construction fund so as to complete and provide the facilities constituting the Joint Project or other projects which the Agency is empowered to provide. In no event shall the Agency permit the acquisition of an oAmetswp interest in electric facilities in a manner that would cause the interest on Bonds to become subject to federal income taxation. SECTION 6.22: Sale of Properties Constituting a Part of the System. In he cvent properties constituting a part of the System are not no-oded for the efficient operation and maintenance of its electric facilities and the same are sold, the proceeds therefrom may he placed in the Construction Fund for the acquisition of additional properties or may be deposited in the Bond Fund provided that proceeds from the sale of fuel resources shall be deposited In the Fuel Reserve Account. 19 08143-0-Texas Municipal-Proof of 8.23-16- Steck-Warlick-Phone (214) 631-3130 ARTICLE VII Additional Bonds and Refunding Bonds . SECTCON 7.01: Additional Bonds Generally. (a) Subject to the provisions hereinafter appearing with relation to conditions precedent which must first be met, the Agency reserves the right to issue, from time to time as needed, Additional Bonds for the lawful purposes of the Agency with respect to the System, (including the payment of the prin- cipal of, interest on and redemption premium, if any, on Subordinated Indebtedness issued by the Agency for such purposes pursuant to Section 7.04 hereof). All such Additional Bonds and require- ments ascribed to them shall be payable from the same source and secured in the same manner on a parity and of equal dignity with all other Bonds. Additional Bonds shall be made to mature on + March 1, or September 1, either or both. (b) In the discretion of the Board, the Additional Bonds may be authorized and issued in such form as shall be lawful and deemed the most advantageous under the circumstances at the time. More specifically but without intending any limitation, they maybe (i) in coupon form, without privileges of registration as to principal; (ii) in coupon form with privileges of registration as to principal; (iii) ii registrable form with privileges of conversion to cour-n form; (iv) in coupon form with privileges of conversion to registrable form; (v) made to mature serially or as "term" or "sinking fund" Bonds wiLP arrangements for mandatory redemption. Should Bonds be issued as "term" or "sinking fund" Bonds with provisions for mandatory redemption, the date of mandatory redemption shall be considered a principal payment date. (c) It is further provided that should in the fixture there be developed any characterization for evidence of indebtedness or debt instruments differing from those used hereunder, the Agency shall have thi right to employ those characterizations in its tinancing arrangements and to provide that such evidence of indebtedness o- debt instruments may be payable from the same source and secured in the same manner as the Bond., on a parity therewith, provided that the same conditions precedent herein required for the authorization and issuance of Additional Bonds first be met as conditions precedent to the authoriza ion and issuance cf any such other evidence of indebtedness or debt instruments. SECTION 7.02: Additional Conditions for Issuance of Additional Bonds. The Additional Bonds may be is red in one or more Series; provided, however, that ro Additional Bonds shall be issued unless e.nd until the following conditions have been met: (a) The Agency, as evidenced by a certificate of an Authorized Officer, is not in default (i) as to any covenant, condition or obligation prescribed by the Bond Resolution authorizing the issuance of the Outstanding Series 1976 Bonds or Additional Bonds or (il) in the payments of Subordinate Indebtedness. (b) The laws of she State of Texas effective at the time of the authorization of such Additional Bonds shall permit their issuance; (c) The Bond Resolution authorizing the Additional Bonds: (f) reaffirms the provisions of Section 5.03 hereof with respect to deposits being made in the Bond Fund in an amount adequate to pay the Debt Service on the Bonds as the same become due and sets forth the amount of Bond proceeds, if any, to be deposited in any Fund established by this Resolution, and (u) provides that there be deposited in the Reserve Fund (out of the proceeds of the Addl- flosal Bonds or from other sources of the Agency legally available for such purpose) any addi- tional sum required so that the amount then on deposit therein is equal to not less than the Average Annual Debt Service on all Bonds then Outstanding, after giving effect to the issaance of the proposed Additional Bonds; and (d) The Agency shall have (1) obtained a certificate from each City which has executed the Power Sales Contract with the Agency showing a forecast of operating results of its electric system which show the ability of each City to meet its obligations payable from the revenues of such electric system for the period (the "forecast period") of (a) ten ensuing fiscal years of each City or (b) each 20 08743-0--Texas Municipal-Proof of 8-23-76--Steck-Warlick-Phone (214) 631.3130 ensuing fiscal year o'. each City until the third fiscal year after the latest estimated ecmpledon date of any project which has been I eviously approved by the Cities, whichever is later and (2) the Engineer has reviewed such forecasts and executed a certificate, stating in effect that in his opinion such forecasts are reasonable and based thereon (and such other factors as he deems prudent) the Agency will have the ability to meet its obligations during each fiscal year for the forecast period. (e) The Agency shall have obtained a report from an independent certified public accountant showing that the Net Revenues (i) for the Fiscal Year next preceding the date of the Additional Bonds or (ii) for 12 consecutive months out of the 18 months next preceding the date of tie Additional Bonds, were equal to at least 1.25 times the Debt Service (excluding amounts deposited in the Bond Fund for the payment of interest which were provided from the proceeds of Bonds) for such period; provided however, the requirement of this paragraph (e) shall not be applicable to Additional Bonds issued for the purpose of completing the financing of a Project for which a Series of Bonds has been issued. SUM-; 7.03: Refunding Bonds. The Agency shall retain the right t1 issue refunding Bonds to refund all or any part of its Outstanding Bonds as permitted by and in accordance with any lawful method thereunto appertaining, it being provided, however, that no refunding boltds shall be issued which (i) shall enjoy a lien on Net Revenues superior to that possessed by Outstanding Bonds and (ii) the Debt Service for the refunding Bonds are in each year less than the Debt Service for the Bonds being refunded or, if less than all Outstanding Bonds are refunded, the proposed refunding Bonds shall be considered as "Additonal Bonds" under the provisions of Section 7.02 (e) and meet the requirements thereunder but the report required shall give effect to the issuance of the proposed refunding Bonds (and shall not give effect to the Bonds being refunded following thew cancellation or provision being made for their payment). SEcrzoN 7.04: Subordinated Indebtedness. The Agency retains the right to issue evidence of indebtedness secured by a pledge of such amounts in the Revenue Fund as may from time to time be available for the purpose of payment thereof (after the payments required to be made into the Bond Fund, the Reserve Fund, the Contingency Fund or any additional Fund created and established by the Bond Resolution), or which are secured by a vendor's lien in the properties acquired, including notes heretofore or hereafter given in connection with the acquisition of lrad, or rights in land or fuel resources, provided, however, that such indebtedness shall be incurred only for any one or more of the purposes set forth in the Act. SECTtoN 7.05: Special Contract Obligations. The Agency retains the right to issue bonds or other obligations for the purpose of financing the construction or acquisition of electric facilities (as defined in the Act) which are to be initially owned as co-tenants or co-owbers by the Agency and another entity, or entities, and such bonds or other obligations, for the purposes of the Bond Resolution, shall be Special Contract Obligations. Special Contract Obligations shall not be payable from Gross Revenues, nor shall the expense of operating and maintenance of such ele.tric facilities be an Operating and Maintenance Expense, nor shall the electric facilities so financed be a part of the System, as such terms are herein defined. Such Obligations shall not be on a parity with the Bonds or be considered as having been issued pursuant to the Bond Resolution. Any lease payments, fnstal(ruent sale payments, or other payments or receipts of the Agency which are received by reason of the acquisition or financing of such electric facilities with any proceeds of Special Contract Obligations shall be kept separate and apart from any Funds created or established under the Bond Resolution, provided that any amounts received by the Agency in any Fiscal Year in excess of that required to pay operating and maintenance expenses, the principal of, premium for redemption (if any) and interest on such Special Contract Obligations, the amounts required to establish or replenish any fund established for the payment and security of such Obligations, and the fees of the paying agent, registrar, or trustee (any or all), shall be deposited in the Revenue Fund herein created and shall be applied, from that time forward, as Gross Revenues, 21 08743-0-Texas Municipal-Proof of 8.23-76-Steck-Warlick--Phone (214) 631.3130 ARTICLE VIII Modification or Amendment of Bond Resoludooe SECTION 8.01: Amendments Permitted. (a) This Bond Resolution and any Bond Resolution and the rights and obligations of the Agency and of the Holders of the Bonds and the Coupons may be modified or amended at any time or with the written consent, (i) of the Holders of at least sixty per cent in principal amount of the Bonds then Outstanding, and (u) in case less than all of the several Series of Bonds then Outstanding are affected by the modification or amendment, of the Holders of at least sixty per cent in principal amount of the Bonds of each Series so affected and then Outstanding, and provided, however, that if such modification or amendment will, by its terms, not take effect so long as any Bonds of any specified Series remain Outstanding, the consent of the Holders of Bonds of such Series shall not be required and Bonds of such Series shall not be deemed to be Outstanding for the purpose of 'any calcula- tion of Outstanding Bonds under this section. No such modification or amendment shall (f) extend the maturity of any Bond, or reduce the principal amount or Redemption Price thereof, or reduce the rate or extend the time of payment of interest thereon, without the consent of the Holder of each Bond so affected, or (ii) reduce the aforesaid percentage of Bonds required for the affirmative vote or written consent to an amendment or modification of this Bond Resolution or any Bond Resolution with- out the consent of the Holders of all of the Bonds then Outstanding. (b) Any Bond Resolution or supplemental resolution and the rights and obligations of the Agency and of the Holden of the Bonds and the Coupons may also be modified or amended at any time by a supplemental resolution, without the ecmsent of any Bondholders, but only to the ecteat permitted by law and only for any one or more of the following purposes - (1) to add to the covenants and agreements of the Agency in the Bond Resolution contained, other covenants an:i agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the Agency. (2) to make such provisi; ns for the purpose of curing any ambiguity, or of curing or correcting any defective provision contained in the Bond Resolution, or in regard to questions arising under the Bond Resolution, as the Agency may deem necessary. • SECTION 8.02: Amendment by Written Consent. The supplemental resolution shall became effec- tive when there shall have been filed with the Agency the written consents of the necessary number of Holders of the Bonds then Outstanding and g notice shall have been published as hereinafter in this Section provided. It shall not be necessary for the consent of the Bondholders under this Section to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent shall approve the substance thereof. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 12.03. Any such consent shall be binding upon the Holder of the Bonds giving such consenr and on any subsequent Holder thereof (whether or not such subsequent Holder has notice thereof) unless such consent is revoked in writing by the Holder of the Bonds giving such consent or a subsequent Holder thereof by filing such revocation with the Agency prior to the date when the notice hereinafter in this Section provided for has been published. Notice of the fact of the adoption of such supplemental resolution shall be published at least once in a Financial Newspaper after the data of adoption of such supplemental resolution. 22 08743-0-Taxes MunWpal--Proof of 8-23-76- Steck-Warlick-Phone (214) 631-3130 ARTICLE DC Events of Default and Remedies of Holders SECTION 9.01: Events of Default. Each of the following occurrences or events shall be and Is hereby declared to be an "Event of DefaWV to wit; (a) The failure to make payment of the principal of any of the Bonds when the same shall become due and payable; (b) The failure to pay any installment of interest when the same shall become due and payable; (c) Default in any covenant, undertaking or commitment contained in the Bond Resolution, the failure to perform which materially affects the rights of the holders of the Bonds to be repaid and the continuation thereof for a period of sixty (60) days after notice of such default by any Holder of any Bonds; (d) If there shall occur the dissolution or liquidation of the Agency or the filing by the Agency of a voluntary petition in bankruptcy or the commission by the Agency of any act of bankruptcy, or adjudication of the Agency as a bankrupt or assignment by the Agency for the benefit of its creditors, or the entry by the Agency into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Agency in a proceeding for its reorganization instituted under the provisions of the general bank- ruptcy act, as amended, or under any simila- act in any jurisdiction which may now be in effect or hereafter enacted SECTION 9.02: Remedies for Default. Upon the happening and continuance of any of the Events of Default as provided in Section 9.01 bereof, then and in every case any Holder may proceed against the Agency for the purpose of protecting and enforcing the rights of the Holders of Bonds or Coupons under the Bond Resolution, by mandamus or other suit, action or special proceeding in equity or at law, In any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing 'which may be unlawful or in violation of any right of the Holder hereunder or any combination of such remedies. Each such right or privilege shall be in addition to and cumulative of any other right or privilege and the exercise of any right or privilege by or on behalf of any Holden shall not be deemed a waiver of any other right or privilege thereof. % SECTION 9.03: Priority of Payments. If an Event of Default has occurred then moneys of the Agency shall be applied first to the payment of interest on Bonds that has become due and second to the pro-rata reduction of the principal amount of Bonds Outstanding which have become due. 23 08743.0--Texas Municipal-Proof of 8-23-76--Steck-Warlick-Phone (214) 631.3130 ARTICLE X • Depositories of Moneys, Security for , Deposits and Investment of Fonds SECTION 10.01: Depositories. (a) All moneys held in the Bond Fund and in the Reserve Fund shall be deposited with one or more Depositories in the name of the Agency and shall be held in trust for the benefit of the Holders and applied only in accordance with the provisions of the Bond Resolution. (b) Each Depository shall be a bank or trust company organized under the laws of the State of Texas or a national banking association located wthin this state willing and able to accept the office on reasonable and customary terms and authorized to act in accordance with the provisions of the Bond Resolution. SECTION. 10.02: Deposits. (a) Nc moneys shall be deposited with apy Depository having capital stock and surplus aggre- gating less than $5,000,000 in an amount exceeding 25% of the amount which an officer of such Depository shall certify to the Agency as the capital stock and surplus of such Depository. (b) All moneys held by any Depository may be placed on demand or time deposit, if and as directed by the Agency, provided that such deposits shall permit the moneys so held to be available for use at the time when needed. No officer or employee of the Agency shall be liable for any loss or depreciation in value resulting from any Investment made pursuant to the Bond Resolution. Any such deposit may be made in the commercial banking department of any Depository which may honor checks and drafts on such deposit or may be deposited in the banking department on demand or, if and to the extent directed by the Agency on time deposit, provided that such moneys on deposit be avail- able for use at the time the Board estimates it will 4e needed. Such Depositories shall allow and credit on such moneys such interest, if any, as it customarily allows upon similar funds of similar size and under similar condition or as required by law. (c) All moneys held under the Bond Resolution by any Depository shall be continuously and fully secured for the benefit of the Agency and the Holders of the Bonds and Coupons (A) with Col- lateral Securities, or (B) in such other manner as may then be required or permitted by applicable laws and regulations of the United States of America or the State of Texas regarding security for, or granting a preference In the case of, the deposit of trust funds. (d) All moneys deposited with the Paying Agents and each Depository shall be credited to the pa-ticular Fund or Account to which such moneys belong. SecnoN 10.03: Investment o/ Certain Funds. (a) Moneys held in the Bond Fund and the Reserve Fund shall be Invested and reinvested by the custodian thereof to the fullest extent practicable in Investment Securities provided, however, that the custodian thereof shalt make such investments only in accordance with Instructions received from in Authorized Officer of the Agency. Moneys held in the Revenue Fund and the Contingency Fund may be invested and reinvested by the Agency In Investment Securities. (b) Net interest earned on any moneys or investments and any increment in any investment of the Revenue Fund, the Rmrve Fund, the Contingency Fund, and the Bond Fund shall remain a part of the respective Fund, but the same may be transferred if permitted by Article V. (c) In computing the amount in any Fund created under the provisions of the Bond Resolution, obligations purchased as an Investment of moneys therein shall be valued at the amortized cost of such obligations. 24 08743-0-Texas MuNdpal--Proof of 8-23-76-Stock•Wadlck-Phone (214) 631-3130 ARTICLE XI Discharge of Indebtedh,v ' SECTION 11.01; Discharge of Indebtedness. (a) If the Agency shall pay or cause to be paid, -)r there shall otherwise be paid, to the Holders of all Bonds the principal of, premium, if any, and interest on such Bonds, at the times and in the manner stipulated therein and in the Bond Resolutions, then the pledge of any Net Revenues, and other moneys, securities and funds pledged under the Bond Resolutions and all covenants, agreements and other obliga- tions of the Agency to the Bondholders shall thereupon cease, terminate and become void and be discharged and satisfied In such event, the Depositories and Paying Agents shall cause an accounting for such period or periods as shall be requested by the Agency to be prepared and filed with the Agency and, upon the request of the Agency shall execute and deliver-to the Agency all such instruments as may be desirable to evidence such discharge and satisfaction, and the Depositories and Paying Agents shall pay over or deliver to the Agency all moneys or securities held by them pursuant to the Bond Resolutions which are not required for the payment of the principal of, premium, if any, or interest on Bonds. If the Agency shall pay or cause to be paid, or there shall otherwise be paid, to the Holders of any Outstanding Bonds and the Coupons appertaining thereto the principal of, premium, if any, and interest on such Bonds, at the times and In the manner stipulated therein and in the Bond Resolutions, such Bonds shall cease to be entitled to any lien, benefit or security under the Bond Resolutions, and all covenants, agreements rind obligations of the F gency to the Holders thereof shall thereupon ceaso, terminate and become vrid and be discharged and satisfied. (b) Bonds or Coupons or interest installments for the payment or redemption of which moneys shall have been set aside an3 shall be held in trust by the Paying Agents (through deposit by the Agency of funds for such payment or redemption or otherwise) at the maturity or redemption date thereof shall be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section. All Outstanding Bonds of any Series and all Coupons appertaining to such Bonds shall prior to the maturity or redemption date thereof be deemed to have been paid within the meaning and with the effect expressed in subsection (a) of this Section if (1) in case any of such Bonds are to be redeemed on any date prior to their maturity, the Agency shall have given notice of redemption as provided I,t Article IV of such Bonds on said date, (2) there shall have been deposited with the Paying Agents either moneys in an amount which shall be sufficient, or Investmtnt Securities (including any Investment Securities issued or held in book-entry form on the books of the Department of the Treasury of the United States of America) the principal of and the interest on which when due Will provide moneys which, together with the moneys, if ,my, deposited with the Paying Agents at the same time, shall be sufficient, to pay when due the principal of, premium, if any, and Interest to become due on such Bonds on and prior to the redemption date or maturity date thereof, as the case may be. Neither Investment Securities nor moneys deposited with the Paying Agents pursuant to this Section nor principal or interest payments on any such Investment Securities shall be withdrawn or used for any purpose other than, and shall be held In trust for, the payment of the principal of, premium, if any, and interest on such Bonds provided that any cash received from such principal or interest payments on such Investment Secaddes deposited with the Paying Agents, if not then needed for such purpose, shall, to the extent practicable, be reinvested in Investment Securities maturing at times and in amounts sufficient to pay when due the principal of, premium, if any, and interest on such Bonds on and prior to such redemption date or maturity date thereof, as the cat e may be, and interest earned from such reinvestments shall be paid over to the Agency, as received by the Paying Agents, free and clear of any tnts4 lien or pledge. Any payment for Investment Securities purchased for the purpose of reinvesting cash as aforesaid shall be made only against delivery of such Investment Securities. For the purposes of this Section, Investment Securities shall mean and include only such securities as are described In clause (i) of the definition of "Investment Securities" in Section 1.01 ww._~ ad not be subject to redemption prior to their ma~sity. SECTION 11,02; Unclaimed Moneys. Anything in the"Bond Resolutions to the contrary notwith- standing, any moneys held by a Paying Agent in trust for the payment and discharge of any of the u 08743-0--Texas Municipal-Proof of 8-23-76--Steck•Warlick--Phone (214) 631-3130 Bonds or Coupons which remain unclaimed for four years after the date when the same have become due and payable, either at thAr stated maturity dates or by call for earlier redemption, if such moneys were held by a Paying Agent at such date, or for four years after the date of deposit of such moneys it deposited with the Paying Agent after the said date when such Bonds become due and payable, shall, at the Written Request of the Agency, be repaid by the Paying Agent to the Agency, as its absolute prop- erty and free :rom trust, and the Paying Agent shall thereupon be released and discharged with respect thereto and fie Bondholders shall look only to the Agency for the payment of such Bonds and Coupons. 26 087434D- T%,w Munidpal-Proof of 8-234"teck-Warlick-Phone (214) 631.3130 ~ f ARTICLE X11 ~ Miscellaneous SECTION 12.01: Limited Liability of Agency. The Agency shall not be required to advance any moneys derived from any source of income other than those pledged (under Section 5.01) for the payment of the principal of, premium, if any, and interest on the Bonds. Nevertheless, the Agency may, but shall not be required to, advance for any of the purposes hereof any funds of the Agency which may be available to it for such purposes. SECTION 12.02. Successor Is Deemed Included in All References to Predecessor. Whenever in the Bond Resolutions either the Agency or any Paying Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof. SECTIoN 12.03: Execution of Documents by B.7ndholders. Any request, declaration or other Instru- ment which the Bond Resolutions may require or permit to be executed by Bondholders may be in one or more Instruments of similar tenor, and shall be executed by Bondholders in person or by their attorneys appointed in writing. Except as otherwise expressly provided, the fact and date of the execution by any Bondholder or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by as affidavit of a witness of such execution, duly sworn to before such notary public or other officer. Any request, declaration or other instrument or writing of the Holder of any Bond shall bind a'1 future Holden of such Bond in respect of anything done or suffered to be done by the Agency or a Paying Agent in good faith and in accordance therewith or in reliance thereon. SECTION 12.04: Waiver of Personal Liability. No member of the Board and no officer, agent or employee of the Agency shall be individually or personally liable for the payment of the principal of, premium, if any, and interest on the Bonds but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law. SECTION 12.05: Waiver of Notice. Whenever in a Bond Resolution the giving of notice by mail or otherwise is required, the giving of such notice may be waived in writing by the perv,,: entitled to receive such notice, and in any such case the giving or receipt of such notice shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 12.06: Cremation or Destruction of Cancelled Bonds. Whenever in a Bond Resolution provision is made for the surrender to the Agency of any Bonds or Coupons which have been paid or canceled pursuant to the provisions of a Bond Resolution, the, Agency may, by a Written Rcquest, direct the appropriate Paying Agent to cremate or destroy such Bonds c• Coupons and furnish to tie Agency a certificate of such cremation or destruction. SECTION 12.07: Governing Law. This Bond Resolution shall be governed by and construed In accordance with the laws of the State of Texas. SECTION 12.08: Article and Section Headings. All references herein to "Articles," "Sections" and other subdivisions are to the corresponding articles, sections or subdivisions of this Bond Resolution, and the words "herein," "hereof," "hereundee, and other words of similar Import refer to this Bond Resolution as a whole and not to arty particular article, section or subdivision hereof. The headings or titles of the several articles and sections hereof, and any table of coo'ents apfended to copies hereof, shalt be solely for convenience of reference and shall not affect the meaning, construction or effect of this Bond Resolution. 27 08743-0-Texts Municipal-Proof of 8.23-76-Steck-Warlick-Phone (214) 631.3130 • c } SECTION 12.09: Partial Invalidity. If any one or more of the covenants or agreements, or portions .t thereof, provided in this Bond Resolution on the part of the Agency (or of any Paying Agent) to be e performed should be contrary to law, then such covenant or covenants, such agreement or agreements, or such portions thereof, shall be null and void and shall be deemed separable from the remaining covenants and agreements or portions thereof and shall in no way aHact the validity of this Bond Resolution or of the Bonds but the Holders sball retain all the rights and benefits accorded to them under the Act or any other applicable provisions of law. SECTION 12.10: Repeal of Inconsistent Resolutions. Any resolution of the Agency and any part of any resolution, inconsistent with this Bond Resolution is bereby repealed to the extent of such inconsistency. SECTION 12.11: No Arbitrage, The Agency certifies that based on facts, estimates and circumstances expected to exist on the date of the issue of the Series 1975 Bonds it is not reasonable to anticipate that the proceeds thereof will be used in a manner which would cause them to be "arbitrage bonds" within the meaning of Section 103(d) of the Internal Revenue Code of 1954, as amended, or regulations there- under applicable thereto, and the officers of the Agency charged with responsibilities in the issuance of bonds are authorized and directed to make, execute and deliver certifications as to facts, estimates and circumstances in existence as of the date of the issue of said Bonds and stating whether there are any facts, estimates or circumstances which wadd materially change th► Agency's present expectations. The covenants herein made and the certifications herein authorized are for the benefit of the Holders from time to time of said Series 1976 Bonds and the Coupons appertaining thereto and may be relied upon by said Holders and by bond counsel for the Agency. SECTION 12.12: Bonds not to be Industrial Development Bonds. The Agency covenants that it will take no action or permit any action to be taken (which it may control) if the same would cause the Series 1976 Bonds to be classed as industrial development bonds under the Internal Revenue Code of 1954, as amended. 28 687434--Texas Municipal, Proof of 8-234"teck-Warlick-Phone (214) 631-3130 4+~ AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HELD IN THE MUNICIPAL BUILDING OF SAID CITY ON THE 27TH DAY OF AUGUST, A. D. 1976. R E S O L U T I O N WHEREAS, the City of Denton along with the Cities of Bryan, Greenville and Garland, Texas, have heretofore by concurrent ordinances provided for the creation of the TEXAS MUNICIPAL POWER AGENCY (TMPA) under the provisions of Article 19:;5a, V.A.T.C.S.; and + WHEREAS, the City of Denton has previously entered into a "Contract for Development of Fuel Resources and Planning Electric Generation Facilities" and a "Contract for the Performance of Certain Duties" with TMPA; and WHEREAS, the City of Denton has passed ordinance No. 76-38 approving a Power Sales Contract with TMPA, and approving a TMPA Bond Resolution in the amount of $50,000,000; and WHEREAS, the Mayor of Denton has executed the said Power Sales Contract pursuant to the authority granted to her by ordinance No. 76-38; and WHEREAS, previous to passing ordinance No. 76-39, the City Council hid passed a motion asking Te).as Power and Light Company to make a formal offer for the City of Denton Electric Utility System; and WHEREAS, in discussion prior to pa3sage of ordinance No. 76-38, legal counsel had Lnformed the city council that it would be practic&lly impossible for the City of Denton to dispose or sell its electrical utility system if the ordinance was passed and the Power Sales Contract exeouted; and WHEREAS, Section 12.0.1 of the City Charter of the City of Denton states "No sale, lease or disposal of any utility system or any part hereof essential to continued effective utility service, shall ever be made u:,les; such sale, lease or disposal is approved by a vajority vote of all the qualified electors !n the City of Denton and WHEREAS, it is the intention of the City Council of the City of Denton not to jeopardize or harm the financing and operations of TMPA or its member cities, or to jeopardize Denton's position in TMPA; and WHEREAS, it is the intention of the City Council to explore only those areas of businass relations'iips regard- ing its electric utility system with other entities that are legally permissible under the terms and condition9 of the Power Sales Contraot. t, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: that it will not do any act in regard to the sale or disposal of its electric utility system that is not permitted by state law, city charter, the Power Sales Contract, or the ordinances auth- orizing the outs,:anding City of Danton Electric Revenue Bonds, and that the City will not take any course of action that would be harmful or detrimental to TMPA, or its member cities. PASSED AND APPROVED this the 27th day of August, A. D. 1976. ELINOR HUGHES, OR CITY OF DENTON, TEXAS ATTEST- V 44- BRPOKS HOLT, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: Qam~- t94~-_ PAUL C. ISHAM, CITYPATTORNEY CITY OF DENTON, TEXAS t Ic -J6 4 r t i ' t i , t r R t Ii 3 i August 28, 1476 No 1hlCreS S0"e Unive rsity Uente `Texas 76203 Mayor Elinor Ilughes `President's City of Denton Olrice Denton, Texas 76201 Dear Mayor Hughes: I should like to propose a settlement offer from North Texas State university concerning the present litigation pending between NTSU and the City of Denton. This litigation is related to the request from NTSU that the City close two blocks on Avenue D and two blocks on Prairie Street. The offer inclu(!es a reimbursement to the City of Denton for costs incurred by the City of Denton or a contractor employed by the City for per- forming the following: 1) Moving the necessary portions of electrical transmission lines along Avenue D from Highland tc Sycamore and west one block to Avenue E, utilizing the present level of facilities and the present level of services in order to accommodate the new HPER Building, such work to commence immediately upon the approval of the settlement offer. This work is necessary to remove the harard of the lines from that portion of the campus, to enhance the appear- ance of that portion of the campus, and to make room for the actual construction of the HPER Building. NTSU will pay to the City of Denton 35 000 for per- forming this work. 2) Constructing or reconstructing all electrical, water and sewer lines disturbed as a result of the proposed closing of the streets and erection of the HPER Building, such work to be done concurrently with the work on the HPER Building. NTSU will pay to the City of Denton $500 for performing this work. 3) The City of Denton will install four-way stop signs at the intersection of Avenue C and Chestnut Street. In addition, the City will install on Avenue C a pedestrian crosswalk and necessary signs at a location between Chestnut and Highland Street wherever it is fount to be necessary to maintain maximum pedestrian safety and as expeditiously as possible. This work will be performed by the City of Denton at no cost to NTSU. r~~~re~h,', offr. • c e r ~aaa: o: a I ' Mayor Ilu-hes August 28, 1976 - page 2 - 4) The donation, acquisition or rciinbursement for acquisition of the necessary land (right-of-way) along the cast and west sides of Avenue E to widen that thoroughfare from Oak Street to the I-35 access roaJ at the south end of Avenue E. Such street improvement is necessary in order to connect Avenue L to the I-35 access road leading frorn the Avenue D bridge across 1-35E coaitingeizt upon the approval of the appropriate authorities of the City of Denton. NTSU will pay to the City of Denton $135, 000 for performin; this work. 5) The donation, acquisition or reimbursement for acquisition of the necessary right-of-way to widen Eagle Drive west from Avenue C to I-35 access road and the proportimate cost of paving and curbing that part of Eagle Drive as may be required to handle an increased traffic flow. NTSU will pay to the City of Denton $65, 000 for performing this work. 6) The proportionate cost of improving Avenue E (including paving and curbing) in order to better accommodate the flow of traffic. NTSU will pay to the City of Denton $165, 000 for performing this work. All work mentioned in items 4, 5 and 6 is to be completed by September 1, 1978. If NTSU furnishes any of 't e above-mentioned items, then that amount will be credited by the City against the total cash settlement. In addition to the above-mentioned items, I shall recommend the follow- ing resolution to the NTSU Board of Regents. (See attached) I should like to recommend to the City of Denton that the deed conveying the blocks on Avenue D and Prairie Street to NTSU will contain a•condition that if Avenue C is closed by an attempt of NTSU through any means other than action by the City Council, then the property described in the deed will revert to the City of Denton. 1 trust that due consideration may be given to this offer, that it will be found acceptable, and the present dispute between both parties is resolved. Sincerely, C. C. Nolen, President CCN:er I i `r RESOLUTION Be it Resolved: That the Board of Regents of North Texas State University for and in consideration of the granting to it certain portions of Avenue D and West Prairie strelts by the City of Denton, Texas, for the purpose of constructing an educa- tional facility known as the HPER Building, and for the extension and improvement of Avenue E by said City of Denton; hereby concurs with the recommendation of President Nolen that North Texas State University will not take any action other than a request to the City Council of the City of Denton, Texas, to close Avenue C. The intent of said recommendation is to permit the said City Council its discretion to close Avenue C, but if said City Council votes "no", then the request will terminate and no legal proceeding to close same will be commenced by North Texas State University. The Board of Regents further instructs President Nolen t6 thoroughly study every possible alternative related to retaining Avenue C within the North Texas State University Master Plan. ,,~•1 (L/ y P 'U ~I A`j(~ ~ ~ ' V'` 4 1 1 A Q. ~ rn N Y OATH OF OFFICE is CHARLES MUIRHEAD , do solemnly swear (or af=.rm) Vat I will faithfully execute the duties of the office of Board of Adjustment of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed and sworn to before me the undersigned on this the 10 day of August , A.D. 14 76 To certify ww cF- witness my an an sea of office. AYSET R CITY OF DENTON, TEXAS i k~ w 0 ory ~ .C ail { J , J U ~ n ~n • C ~ U r1 q 111r ~ ~ ~ 3 F~F rs OATH OF OFFICE I~ MRS.'JUDY STEWART do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the pest of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ord'nances of this City. Subscribed and sworn to before me the undersigned on this the Ik:k-I day of ___._aµ..4 , A.D. 14_2~d_. To certify which - witness my hand 6hd sea] of office. I CRT RY CITY OF UENTON, TEXAS I k~ ~I OATH OF OFFICE Is DOROTHY WELBOkN' , do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the lhiited States and of this State and the Charter and Ordinances of this City. %T Subscribed and sworn to before me the under gned on this the 11 day of , A.D. 19 To certify r c- witness my Tian sea of office. I C T R CITY OF DENTON, TEXAS k~ 6~ 9 C' i ~ e, m i OATH OF OFFICE I, FATHER JOE SCHUMACHER do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed an sworn to before me the undersigned on this the e7l day of , A.D. 19. To certify wch--- witness my a an sea of o fice. I CR R CITY OF DENTON, TEXAS OATH OF OFFICE • JAMES RAMIREZ , do solemnly i swear (or affirm) that I will faithfully ,xecute the duties of the ' office of MEMBER COMMUNI1Y ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed aipd swor to before me the undersigned on this the 'i day of 1 , A.D. 19 To certify Witness my hhia an seal of office, I C T R Cl Y OF DENTON, TEXAS ~ k J` oA 7 c CX4 i OATH OF OFFICE I~ MRS. LUPE PICKETT _ do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. i Subscribed a sworn to before me the unders ned on this the day of Z , A.D. 19 To certify c witness my an n sea of office. qgrSECRETARY CITY OF DENTON, TEXAS k~C l r 'b ~ OATH OF OFFICE I~ SHELTON PENDARVES , do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed a worn to before me the unde i ned on this the day of uir A.D. 19~ To certify witness my an sea of office. WTY SECRETARY CITY OF DENTON, TEXAS F OATH OF OFFICE LILLIE HUNTER do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed a sworn o before me the undersjggned on this the day of f A.D. 19 6 To certify wfi/fcfi - 4 4s, witness my a and~seal of office. f-ISKR T R i C17Y OF DENTON, ',_XAS k, 6~ c} or1 c OATH OF OFFICE I, DR. ELNEITA DEVER , do solemnly swear (or affirm) that I will faithfully execute the duties of the office of MEMBER COMMUNITY ETHNIC RELATIONS BOARD of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City, Subscribed and sworn to before me the undersigned on this the day of 4t«4L % t ii , A.D. 19-_. To certify wTiTd- witness my-hand-'And sea] of office. GITY'SECRETARY CITY OF DENTON, TEXAS i • ~c 6d, ~ r c i OATH OF OFFICE is MARTHA LEN NELSON do solemnly swear (or affirm) that I will faithfully execute the duties of the office of LIBRARY BOARD MEMBER of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Cci~stitution and laws of the United States and of this State and the Charter and Ordinances of this City. r Subscribed and worn to b fore me the undersigned on this the ~(1 day of , A.D. 19 To certify w c witness my an sea of office. op '0 CVY -SECRETARY CITY OF DENTON, TEXAS . ~ ¢~F Frr a j ~ i ~p i OATH OF OFFICE I, PEGGY HOLT do solemnly swear (or affirm) that I will faithfully execute the duties of the office of LIBRARY BOARD MEMBER of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed and sworn to before me the unders gned on this the oay of , A.D. 19 To certify c witness my an sea of office. SECRETARY CITY OF DENTON, TEXAS • s k~ r~ r r OATH OF OFFICE I, ELINOR CALDWELL do solemnly swear (or affirm) that 1 will faithfully execute the duties of the office of LIBRARY BOARD MEMBER of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and 'aws of the United States and of this State and the Charter and Ordinances of this City. p Subscribed an sworn to before me the under igned on this the ~Q day of A.D. 14 ~G To certify which witness my an an sea of office. 1 SEC TRi CITY OF DENTON, TEXAS II I I ' \ . J Cp i ~ ' rr • OATH OF OFFICE DR. DAVID SPECK , do solemnly swear (or affirm) that I will faithfully execute the duties of the office of LIBRARY BOARD MEMBER of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances of this City. Subscribed and sworn ~before rge the under igned on this the day of ./r , A.D. 1' i(. To certify wwWFc witness my an an sea o ofFfi~ce. gTYe-SECR]ETVRY-- CITY OF DENTON, TEXAS k~G ~p tcsi OATH OF OFFICE I~ JULIA KEENER do solemnly swear (or affirm) that I will faithfully execute the duties of the office of LIBRARY BOARD MEMBER of the City of Denton, Texas, and will to the best of my ability preserve, protect and defend the Constitution and laws of the United States and of this State and the Charter and Ordinances.of this City. L X c aJ ~cetr.~.e-~/ Subscribed and sKorn to before me the under i ned on this the day of , A.D. 19 To certify w c witness my hatild a sea T of office. CrTT CR 1 R CITY OF DENTON, TEXAS c~ r CITY OF DENTO N TAX A D 3 U S T M E N T S FOR THE MONTH OF AUGUST 1976 . I r Personal Property Automobiles $ 19282.30 Hugh Mixon Tax•Assessor-Colle.,tor City of Denton, Texas w C I T Y O F D E N T 0 N T A X A D J U S T M E N T S FOR THE MONTH AUGUST 1976 PERSONAL PROPERTY NAME ACCOUNT TAX TAX REASON NUMBER YEAR David Massey 9999-35130 1973 $ 5.78 Unable to locate r' 9999-31715 1974 2,72 rr to of flick Mazkoori 9999-32130 1974 14,62 " Richprd McAnally 9999-32215 1974 11.05 " Dan McClendon 9999-32585 1974 8.84 ,r v " Linda McClendon 9999-32605 1974 1.36 „ rr Lybeth McDonald 9999-32925 1974 5.10 of If " Philip Mead McMunigle 9999-33435 1974 3,06 " " " Debbie McQueen 9999-33550 1974 2.72 " " Of Ruby Meaders 9999.33610 1974 11,56 of " " Billy D. Mercer 9999-33815 1974 2,72 " " " Joan-Marra 9999-33850 1974 9.35 to it 11 Mildred Mewborn 9999-33890 1974 17,85 to If of if 11 9999-37560 1973 17.85• if 11 is Otte Michael 9999-33950 1474 5110 to a Lillian Miller 9999-34315 1974 10,20 'r " " Peggy Miller 9994-34355 •1974 2,72 " of is Bennie S. Mitchell 9999-34665 1974 11,05 " " It Janis Jane Montgomery 9999-34900 1974 6180 " " to Douglas W, More 9999-35015 1974 2,72 " It " Doyle D. Moore 9999-35020 1974 11,56 " " " .r Lad Moore 9999-35085 1974 3,06 rr it 9999-35090 1974 11.56 tr " " 9999-35095 1974 5,78 " it " Ronnie Moore 9999-35140 1974 11,05 if of " Daphne S. Morby 9999-35215 1974 8,50 of It r, Charles R. Moss 9999-35585 1974 14,62 rr it or L. A. Nations 9999-36215 1974 5,78 of of of Steven 0. Neelay 9999-36335 1974 6,80 " If " Bill M. Nelson 9999-36420 1974 2,72 It It " u " " 9999-40130 1973 5.78 rr It of Kay Lynn Neuman 9999-36525 1974 13.60 " " of Edward C. Newbold 9999-36540 1974 14,28 of to of Thomas Nhambure 9999-36655 1974 8150 it " it " of 9949-40415 1973 8.50 to " " Juanita Nicholson 9999-40530 1973 8150 " " of 9999-36775 1974 6,80 " . Michael Arthur Noble 9999-40660 1973 10603 is " it to 9999-36880 •1974 6,12 if Aliiabeth F. Nordin 9949-36945 1974 12.92 " " to Emmanuel A. Ogundipe 9999-37285 1974 8150 it " of Olen I. Oliver Jr. 9999-37300 1974 2.04 " of " Michael Ross Oneal 9999.37355 1474 8684 rr 11 to J. 8. Osborne 9949.37485 1474 5,78 ° It of Roger Owens 9999-41490 1973 5.78 " If " Andy Ozner 9999.37645 1974 12,92 " of " Mary Ann Ozuna 9499-37655 1974 2,72 " " to " " It 9999-41525 1973 5078 to to NAME ACCOUNT TAX. TAX REASON . NLNBER YKAR Charles Re Moss 9999-39295 1973 $ 17.51 Unable to locate Diane Paclik 9999-37690 1974 13.09 " It " Mary G, Parker 9999-38000 1974 2.72 ,r " of " to If 9999-41835 1973 5.78 " e u Mardel Patch 9999-38140 1974 8.50 " " of George Patee 111 9999-38155 1974 3.06 to " " Joseph Petitto 9999-39075 1974 6.46 If It to " to 9999-39080 1974 14.62 " if n Michael He Poynor 9999.39965 1974 15.98 " so 11 Richard Poynor 9999-39970 1974 5,95 " " it Ronald G. Poyser 9999-39975 1974 2.72 " 11 so Charles R. Quintero 9999-40465 1974 11.05 " to If Joseph Rabus 9999-40490 1974 2.72 " of Thomas Me Rainbolt 9999-40570 1974 2.72 it " Francisco J. Ramirez 9999-40690 1974 11.05 of If to 9999-40695 1974 11,05 Paul Randolph 9999-40790 1974 13,09 " Ray L. Raney 9999-40810 1974 8.50 if it " James C, Read 9999-40995 1974 3.40 to " " Duel Richardson 9999-41695 1974 11.05 If It 10 Jim 'Richman 6 9999-41795 1974 11,05 " " to Judy A, Riney 9999-42050 1974 2.04 If of " Lawrence Roberts 9999-42365 1974 11.73 " Orville Alan Roce 9999-42630 1974 11,56 Shelia Roce 9999-42635 1974 12.92 Terry Y. Rounsavall 9999-43000 1974 2.72 J, To Russell 9999-43215 1974 12.58 Bernard Fahimman Said 9999-43375 1974 9.35 of to e. Robert Be Salmen 9999-43455 1974 18.36 " " It Ovidio Saucedo 9999-43795 1974 11.73 is to 9999-43790 1974 11,05 " " to Juanita Scaff 9999-43880 1974 9.18 " " if Jerry Lee Scarboro 9999.43915 1974 16.32 " if to Donald D. Schamp 9999-43945 1974 8.84 " if " Karen Scott 9999-44425 1974 11.05 " " Richard He Sealy 9999-44565 1974 4.59 " " of Cornelia 0, Seymour 9999-44815 1974 17,17 to Robert Me Shaw 9999-45010 1974 1,70 to to Jan Sheppard 9999-44935 1974 .15.98 " " Steve Shimp 9999-45265 1974 8.84 If 11 of Jim Richman 9999-45785 1973 12.92 of, of " Juanita Scaff 9999-48170 1973 12492 It " Robert He Shaw 9999-49230 1973 3.40 It " 00 If of 'Henry Re Shockey Jr 9999-45340 01974 3.06 Audry Shofner 9999-45365 1974 5.78 It 10 10 to " 9999-49560 1973 8,84 to go 11 11 Mary Sibley 9999-45450 1974 5,10 to 11 Mrs, 0. Le Simien 9999-45555 1974 2,72 James Ce Singleton 9999-45805 1974 10,20 Kelly S. Smith 9999-46465 1974 3,40 ,Michael J, Smith 9999-46520 1974 7682 Richard Be Smith 9999.50980 1973 12,92, " It H of " to 9999-46620 1974 11.05 " to it Richard Smith 9999-46625 .1974 15464 of if n Sidney Lynn Smith 9999-46645 1974 15.98 n " of Trove Sprabary 9999-47240 1974 2.72 .Patrick We Stenger. 9999.47750 1974 3640• Frank Re Sughrue 9999-48600 1974 11.22 " " Thipppaya Tanghongn 9999.49010 1974 8,50 " " 'Done IS Le Tanner 9999-49015 1974 804 " 11 " NAME ACCOUNT TAX TAX REASON . NUKBER YKAR Larry Tanner 9999-49040 1974 $ 8,84 Unable to locate Hoyt Taylor 9999-49220 1974 5.78 " it " Hoyt L. Taylor Jr 9999-49140 1974 17.17 " If If T. J. Taylor 9999-49385 1974 11.05 " " " Susan M. Timmerman 9999-50095 1974 12.92 " it " Chi Kwong To 9999-50165 1974 15.98 Tomal Inc. 9999-50235 1974 25.50 Marcus C. Torti 999950340 1974 6.80 Donicio Trevino 9999-50545 1974 5.78 Michael F. Trilica 9999-50605 1974 2.72 of It to Franklin B. Tyler 9999-50945 1974 1.70 " " " U Rent M Corp. 9999-50955 1974 10.03 " if " Martin Uvalle 9999-51040 1974 8.64 if It " Genara Verver 9999-51255 1974 12.92 it if " Arthur H. Waldrip 9999-51665 1974 2.72 " to It John E. Walker 9999-51775 1974 8.50 " of it Mary Walker 9999-51800 1974 12.92 " " " Sheila V. Walker 9999-51810 1974 12.92 " " " Bill Wallace 9999-51855 1974 14.62 " It " Pat Ward 9999-52055 1974 14.11 " If " Sandra J. Weaver 9999-52400 1974 8.84 " " " James R. Webb 9999-52460 1974 2.72 to Mrs. Vivan Wesley 9999-52795 1974 16.32 Barbara M. Wheeler 9999-52970 1974 2.72 William-G. Whitsitt 3r9999-53330 1974 2.72 Layne Widkerson 9999-53595 1974 8.84 it If of Crete Williams 9999-53890 1974 11.73 of r' Ronald L. Williams 9999-54055 1974 12.58 " t Warren G. Williams 9999-54090 1974 5.10 " " " Dick Willis 9999-54235 1974 7.82 " if " Lloyd Winchester 9999-54625 1974 25.84 " to " ,Claudio G. Witteaauer 9999-54720 1974 6.80 " " " Dwaine Woods 9999-54930 1974 3.40 If it of TOTAL $19255.45 David Massey 9999-27730 1970 11.40 Too old it 9999-27735 1970 5010 " if Jill Parker 9999-33495 1970 '10.35 " " TOTAL $ 26.85 I i a s r TheTrinkty Companies August 11, 1976 P.O. Box 5028 -Dallas. Texas 75222 ~I City Clerk City of Denton Denton, Texas Bond #152913 - Goldsmith, Oliver, Inc. in favor of the City of Denton, Texas for Pest Control Bond Dear Sir: This is to notify you that we have elected to terminate this bond as of August 21, 1976. Thank you. Very truly yours, Gloria Stevens Fidelity & Surety Dept. , pw cc: Roeder & Moon Agency, Inc. 5217 Ross Avenue, Suite #710 Dallas, Texas 75206 L Trinity Universal insurance Co..Security National Insurance Co. ■Trinity Universal Insurance Co, of Kansas, Inc. k 1 4 lJne t~,ldiFFetfcYS$ FIlda:l.~ondir~ 'o..,~ianfeu 9) 4'j (e171 eJ~/lie y G^O's11/1a.#Iy 3050 STEMMONS FREEWAY P. 0, BOX SWS, DALLAS, TEXAS 75272 • PHONE 214/531-020 • JOE KIRBY, PRESIDENT August 25, 1916 CERTIFIED MAIL: 723698 City Clerk ' City of Denton Denton, Texas RE: BOND NO. 1495917(LP338050) Wilmouth W. Wright Handy Man Service Sidewalk, Curb & Gutter, Denton Gentlemen: We vish to take advantage of the cancellation clause contained in the above captioned bond, Therefore, this is our notice of cancellation by the bond terms, You are notified that this bond is cancelled end voided as of the9.th. day of October , 19 , 6 WESTE SURETY COMPANY vice President CC: Armstrongs Sanger Agency Box 1077 Sanger, Texas-76266 Mr, Wilmouth W, Wright C/O Agent be i ~ ~ . ~ ~ ~ - S Y~ Il i' THE STATE OF TEXAS X CONTRACT 'COUNTY OF DENTON I s I This Agreement, made and entered into this the 10th day of 1 1.August, 1976, by and between the Denton Jaycees, Inc., hereinafter I1 IGreferred to as First Party, and the City of Denton, Texas, a Muni- cipal Corporation, hereinafter referred to as Second Party. WITNESSETH: 11 Whereas, First Party by contract with Tai-Lyn Amusements, (hereinafter referred to as Designee is desirous of obtaining the !right to install and operate certain amusement clovices in Evers (Park in the City of Denton, Texas, and Second Party is willing to E grant such privilege and right to First Party, upon the terms and conditions hereinafter stated to be kept and performed: Now, Therefore, in consideration of the mutual covenants and agreements hereinafter stated to be kept and performed by and ;between the parties hereto, it is hereby agreed by and between the !parties as follows; (1) Second Party hereby grants unto First Party and its Designee the right and privilege of installing and operating at Evers Park in Denton, Texas, within a certain area thorein to be designated by the City Manager, commencing on the 10th day of August, 19761 and terminating on the 15th day of August, 1976 one merry-go-round, six kiddy rides, one octupus, one paratrooper, one ferric wheel, game booths and such other additional amusement devices as may from time to time be agreed upon by and between the parties hereto. (2) Second Party also grants to First Party and its banignee the right and privilege to sell ;popcorn, snow cones, and soft drinks within said area designated by the City Manager, but it is understood and agreed that First Party shall not operate such a concession at any other place in the park. (3) First Party and its Designee agree to operate said amusement devices in said park in a safe and competent manner, r 1 r f i tIshall pzovide competent and courteous attendants and employees, iishall keep and maintain said devices in good mechanical and safe II ~i Iconditi.on at all times, and shall not remove said devices from Isaid park during the term hereof without the written consent of it Second Party. i (4) First Party and its Designee shall not install or operate said amusement devices or concessions in any other muni- cipal park without the written consent of Second Party. (5) No charge as compensation foil' any single ride upon Ijany of the amusement devices d=_scribed herein shall be made uy I iFirst Party and its designee in excess of fifty (500 cents, said !charges to include all taxes on the sale of tickets therefor. (6) First Party and its Designee agree to pay the cost of the electrical wiring and electrical service to the amusement. All expenses for the operation and maintenance of said anusement devices, including utilities, shall be paid by First Party and its Designee. (7) First Party and its Designee shall not permit the accumulation of papers, trash or other rubbish in the designated area, and shall, at their own expense, keep said area free from such accumulation. I (8) First Party and its Designee shall not use said area for any purposes other than those specified herein. (9) Parking facilities shall be provided and maintained by Second Party. (10) it shall be the responsibility of First Party and its Designee to replace whatever sod is removed or disturbed upon vacation of the premises. (il) First Party and its Designee promise and agree to carry on their operations and business in accordance with the laws of the United states and the State of Texas and all rules, rejulations and ordinances now in force and effect or hereafter promulgated or enacted by the Council of the City of Denton, Texas. -2- (12) First Party and its Designee agree to save and keep " Second Party safe and harmless of and frost; all demands, claims, actions or causes of actions, losses, damages and attorney's fees i arising from or growing out of any accident, injury, debt or j damage occasioned or caused by the installation, operation, main- tenance, or dismantling of said amusement devices or concessions. (13) First Party and/or its Designee shall, upon the exe- cution of this contract, furnish, at their own expense, a public liability insurance policy indemnifying and protecting both First i Party, the Designee and Second Party from all loss, injury or damage which may be sustained by reason of the operation of the said area, amusement devices and concessions to the extent of one Hundred Thousand ($100,000.00) Dollars for each and every single claim or accident. Said insurance coverage shall be approved by the City Attorney of the Ci:f of Denton, Texas; a copy of said policy shall be filed with the City Secretary, and said policy shall be kept in full force and effect during the i term of this contract. The cancellation or other termination of any such policy shall automatically terminate all rights and privileges granted to First Party and its Designee who have fur- nished the public liability insurance herein required. (14) This contract shall be binding upon the parties here i to, their designee, heirs, devisees, executors, administrators, trustees, successors, transferees and assigns. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals, and the Second Party has caused its seal to be hereto affixed, and this contract signed by its Mayor and attested by its City Secretary, the day and year first above written. k DENTON JAYCEES, INC. BY I J 1 , P SID NT -3- t~ t I, ~J . III 11 III VIII CITY OF DENTON, TEXAS 1 BY:1-., ELINOR HUGHES, UR I! I ATTEST: BROOKS HOLT, CI Y S CRETARY it CITY OF DENTON, TEXAS ik APPROVED AS TO LEGAL FORM: AUL CCITY ATTORNEY CITY ODENTON, TEXAS I x ~i 4T Y t A r rr 1( 1 V r < 4 e f~ f~ t cl~ r 4 v ' { v l f E~~k~.'t ~ ' i k w a d*rY ~d r ktr+. u,L r ^sJ'zw ~~y°~'. i