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HomeMy WebLinkAbout09-1976 ~ 1907 i s co a 0 5' » y m 0c IL s C 0 {j~ a C ? d O w 6' o ~ m a a. a Q > ' r+> W aro Q C o g. O > x z >x o n M (A tj r rw" O j O ~ 9 z a ' o D f z lei S' x 5*4 ~I i c, ~ p ~ r, ~ ~ M P F4 165- QU 17-CLAIM DEED Tgx A*Sur4oA FonK { D-76-974 RF/sJ II :Kll[ w All Men hu 01 lyu jJrrunis: i Cottnltg of DENTON ;J That We, SAMUEL R. FULLER and wife, MARY FULLER I ! C of the County of Denton and State of Texas for and in consideration of r1 1 the sum of TEN AND NO//100 1(.00 DOLLARS I and ,.ther good and valuable consideration' - to us in hand paid by The City of Denton, Texas, a municipal corporation, of the County of Denton and State of Texas the receipt of which i; i I is hereby acknowledged, do by these presents BARGAIN, SELL, RELEASE, AND FOREVER 1 ' QUIT CLAIM unto the said THE CITY OF DENTON, TEXAS, a municipal corporation, r' their heirs and assigns, all our right, title and interest in and to that certain tract or parcel of land lying in the County of Denton State of Texas, described as follows, to-wit: I~ All that certain block, tract, or parcel of land out of the N.J. Tipps I Survey out of the R. J, Mosley League and Labor Survey, situated in 1 Denton County, Texas, on the waters of Big Elm, a tributary of the Trinity River and more particularly described on Exhibit "A", attached hereto and made a part hereof for.all purposes, RRECS 1 I ,S ZO cERT ANA r 3NtiSY OF SAC ORIG { AS -t{{SS 15 hNA PEG R9' pENSO~ FU1 O fOR pWYERS j1TL~ OF t i "Grantors herein reserve unto themselves, their heirs, successors and assigns, toe i! rights of ingress and egress over and across the dirt lane imrodiately north of and adfacent to the 2.057 acre tract described above." If r TO HAVE AND TO HOLD the said premises, together with all and singular the rights, privileges i and appurtenances thereto in any manner belonging unto the said The City of Denton, a municipal corporation, their heirs and assigns forever, so that neither we the said Samuel R. Fuller and wife, Mary Fuller, 1 nor our heirs, nor any person or persons claiming under US shall, at any time I~ hereafter, have, claim, or demand any right or title to the aforesaid premises or appurtenances, or any i; part thereof. WITNESS our hands at Denton, Texas this 21st h~ ~I day of September , A. D. 19 76 ~ _ Witness at request of Grantor/f. Esc t..,..... V / I ,Samuel R. Fuller T~ary~u. .....~k _ ~ ' ~k' \k ~ 9~ ~ ~ i~~'' v DEED RECORDS THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON THAT BILL UTTER AND WIFE, VIRGINIA UTTER 20 Q Si 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, Texas receipt of which is hereby acknowledged, do by these presents grant, bargain, sell and convey unto to the City of Denton, Texas, the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by them . Situated in Denton County, Texas, in the Robert Beaumont Survey, Abstract No. 31 All that certain lot, tract or parcel of land lying and being situated in the city and County of•Denton, State of Texas, and being part of the Robert Beaumont Survey, Abstract No. 31, and also being part of a tract of land as conveyed from J. H. Briscoe to Bill Utter and wife, Virginia by deed recorded in Volume 782, Page 533 of the Deed Records of Denton County, Texas, and more particularly dcboribed as follows: BEGINNING at a point in the north boundary line of U. S. Highway 380 (University Drive) same being the southeast corner of said Utter tracts THENCE north 880 22' 40" west along north right of way line of U. S. Highway 380 (University Drive) same being the south boundary line of said Utter Tract a distance of 456.05 feet to a point for a corner; THENCE north 456 west a distance of 22.62 feet to a point for a corner; THENCE south 880 22' 40" east 16 feet north of and parallel with the south boundary line of said Utter tract same being the north right of way line of U. S. Highway 380 (University Drive) a distance of 472.03 feet to a point in the east boundary line of said Utter tract for a corner; THENCE south 10 33' west along said Utter east boundary line a distance of 16.02 feet to the place of beginning and containing 7,424.96 square feet of land, more or less. And It to 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, along, 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 Ingress, egress, and regress in, along upon and across said premises for the purpose of making additions to, improvements on tad repairs to the said public utilities, or any part thercc;, TO HAVE AND TO HOLD unto the said City of Denton, Texas as aforesaid for the parposes aforesaid the premises above described. Witness their hand , this the day of 4 September , A. D. 1976 . i3' ' BILL-$ UTTER UTTE-R~ re VIROI~ZA vci 809 F>rc~ 7 SINGLE ACKNOVLEDGMENT mt 809 rw 8 THE STATE OF TEXAS, l COUNTY OF . DENTOhI_ BEFORE ME, the undersigned authority, in and for said County, Texas, on Chia day personally appeared _.B..; 1,1--.-SJ.tt.eY_.a311d .SetlfB i--12YS DIAL ' >JttoY---------_..-_ - known to me to be the persons whose name ..are.. subscribed to the foregoing Instrument, and acknowledged to me that t he Ycxecuted the same for the purposes and consideration lherei expressed. ` GIVEN UNDER MY HAND AND SEAT. OF OFFICE, This day of.._Septelllbe , A.D. 19.76 (L.9.) ......_..._S=S `-Rte------L~--.....~`~it.v_..... Notary Public, 1}entOD..._....... ...._'.'_,Xounty, Texas My Commission Expires June 1, 19- 7. SINGLE ACKNOWLEDG51ENT THE STATE OF TEXAS, COUNTY OF..... BEFORE ME, the undersigned authority, In and for said County, Texas, on this day personally appeared................ known to me to be the person .....-whose name.............. subscribed to the foregoing Instrument, and acknowledged to me that...... he_._ executed the same for the purposes and consideration ;herein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, day ot_- A.D. 19. Notary Public, County, Texas My rommissron Expires June 1, 19 CORPORATION ACKNOWLEDGMENT THE STATE OF TEXAS, I COUNTY OF.... J BEFORE ME, E, the undersigned ao.horitp, In and for said County, Texas, on this day personally appeared...... known to me to be the person and officer whose name to subscribed to the foregoing Instrument and acknowledged to me thnt the same was the act of the sold _ - - - _ a corporation, and that he executed the same as the act of such corporation for the purposes ■nd consldersti~~n Aerein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This day of , A.D. 19 (L.S.) Notary Public, _.__---County, Texas ~ My Commission Expires June 1, I9... CLERK'S CX4TIFIR90r rucoq THE STATE OF TEXAS! ~Y tie, county,10~ 0e 1►'~ •1 COUNTY OF co Cu' l rs esrtl4l Mt ws a sad wss duly ty 114 sX M ERs' nd Pw=i W ~T s , County Clerk of the County Court of said County, eDC fAtlM 4Astrument of writing dated on the AaTI day of d p% j39Nataalp dill iA"kflcate of Authentication, was filed for record in my office on the. . .day of ......own ]9..... at o'clock.. M., and duly recorded this ...................day of.. ,..,.,.............Q.~ ...ez2...~'A1). 19.........., at...... o'clock M., in the ......Ya' a rds-61"eald Gii~ ~ Y'~ , on pages..,..,............... WITNESS MY HAND AND SEAL OFT T o n at ofnee in s Ce. and Feat st above wre~ pWtIIY..G! "d0"............. County Clerk County, Texas. (L By , Deputy. f_?dd rI; a ,w (L ryaa 4e 4, .II f~ .r C3 -44 Pi 0 fey, r f Y M STANDARD FORM OF AGREEMENT STATE OF TEXAS X X COUNV OF DENTON X THIS AGREEMENT, made and entered into this 10 day of September A.D., 19 76 , by and between the municipal government of the City of Denton, Texas, acting through its Mayor, Elinor Hughes, thereunto duly authorized so to do, Party of the First Part, hereinafter termed OWNER, and Ed Bell Construction Company) Mr. Ed, Bell, President of the City of- Dallas County of Dallas and State of texas Party of the Second Part, herein- after termed CONTRACTOR. ' WITNESSETH: That for and in consideration of the, payments and agreements hereinafter mentioned, to be made and performed by the Party of the First Part (OWNER), and under the conditions expressed in bond bearing even date herewith, the said Party of the Second Part (CONTRACTOR), hereby agrees with the said Party of the First Part (OWNER) to commence and complete the construction of concrete sidewalk along Carroll Boulevard between Pearl Street and University Drive and all extra work in connection therewith, under the terms as stated in the deneral Conditions of the Agreement and at his own proper cost and expense to furnish all the materials, supplies, machinery, equipment, tools, superin- tendence, labor, insurance and other accessories and services necessary to complete the said construction, in accordance with the conditions and prices stated in the Proposal attached hereto, and in accordance with the Notice to Bidders, General Conditions of Agreement, Plans, and the Specifications and addenda therefor, as prepared bq the City Engineer herein entitled the ENGINEER, each of which has been identified by the CONTRACTOR and the ENGINEER, together with the CONTRACTOR'S written Proposal, and the General Conditions of the Agreement, hereto attached; all of which are made a part hereof and collectively evidence and constitute the entire contract. ~ . I _2_ The CONTRACTOR hereby agrees to commence work as soon as possible after award of the contract by the City Council and to complete the entire project on or before December 31, 1976. The OWNER agrees to pay the CONTRACTOR in current funds the price shown in the proposal, which forms a part of this contract, such payments to be subject to the General and Special Conditions of the contract. IN WITNESS WHEREOF, the parties to these presents have executed this Agreement in the year and day first above written. CITY OF DENTON, TEXAS Party o the First Part arty o t e Second Part (OWNER) (CON TV A ) By: By: h J M ehallg CPO Purchasing Agent 'U" e$"1rt g ee en Attest: y 4e14- Attest \k ~ ~ ~ ~ ~ ~ N0. AN ORDINANCE AMENDING THE ZONING ORDINANCE (ORDINANCE NO. 69-1) OF THE CITY OF DENTON, TEXAS BY PERMITTING LICENSED PRIVATE CLUBS IN CERTAIN ZONING DISTRICTS; PROVIDING FOR CONDITIONS; PROVIDING A PENALTY; AND DECLIRING AN EFFECTIVE DATE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS: SECTION I. (1) That the Zoning Ordinance of the City of Denton, Texas adopted January 14, 1969, as an appendix to the Code of Ordinances of the City of Denton, Texas as Ordinance No. 69-1, as amended, be, and the same is hereby amended as follows: "ARTICLE VII. USE OF REGULATION DISTRICTS; USE OF LAND AND BUILDINGS. A. Legend for interpreting schedule of use. 1. The Tables in 7C shall be amended to exclude the listing of "licensed private club". 2. The Tables in 7H shall be amended to include "licensed private clab" in the following districts: General Retail Service District (GR) Commercial District (C) Central Business District (CB) Light Industrial District (LI) Heavy Industrial District (HI) Planned Development District (PD) (2) 7B. CONDITIONS REGARDING LICENSED PRIVATE CLUBS The operation of licensed private clubs will be permissible in the zoning districts listed in (1) A.2. above only upon the following conditions. (a) A building utilized for the licensed private club shall be inspected and shall comply with all local building codes, fire codes, and ordinances. (b) All sales and consumption must be within the establish- ment or in an area immediately adjacent to the building and not visible from any public street or way. (o) Paved parking muss be provided on the property or im- mediately adjacent to the site at the ratio of one space for every three seats under maximum seating arrangment (minimum of five park- ing spaces). (d) A licensed private club may not operate within three (300) hundred feet of any church, public hospital, or public school, axcept North Texas State University and Texas Woman's University. (e) A licensed private club may not operate within one (100) hundred feet of any residential dwelling unit. 'Residential Dwell- ing Unit' for the purpose of this condition shall mean any single- family, two-family, or multi-family dwelling. The Measurement shall be taken ds the most direct distance between the residential dwell- ing unit and the building used for the licensed private club. (f) where the business property serving as the site of a licensed private club abuts a residential property or zoning dis- trict, a solid fence at least six feet high shall be erected for the full distance between the two properties. SECTION II. Any person violating this article shall be guilty of a mis- demeanor and upon conviction shall be punished as provided by the Texas Liquor Control Act; in the event it should be held thPt such penalty does not apply to this article, then such persons shall be fined not less than one Hundred ($100.Uu) Dollars nor- more than Two Hundred ($200.00) Dollars and each day of such violation shall constitute a separate offense. SECTION III. That if any section, s•ibsection, paragraph, aa~tence, 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 ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION IV. A That the City Council of the City of Denton, Texas, hereby finds that such changts are in accordance with a comprehensive plan for the purpose of promoting the general welfare of the City of Denton, Texas, and with reasonable consideration, encourages the most appropriate uses of land for the maximum benefit to the .2- r I I City of Denton, Texas, and its citizens. SECTION V. That this ordinance shall be in full force and effect im- mediately after its passage and approval, the required public hearings havioq heretofore been held by the Planning and Zoning Commission and the City Council of the City of Denton, Texas, after giving due notice thereof. PASSED and APPROVED this the 2 day of September, A. D. 1976. r~-,a1'' ELINOR HUGHES, MAYO CITY OF DENTON, TEXAS ATTEST: KS HOLT, CITY SECRETARY TTY OF DENTON, TEXAS APPROVED AS TO LEGAL FORMS PAUL C. ISaAM, CITY ATTORNE_ CITY OF DENTON, TEXAS' _3_ F,= ~ • ~ .r I 7 ~ r ~ Y [ ti f C ~ T ..T r .,,r i, ;~w .y I'Til3 E N ~ 1 ~ r e ~ ~i.c'~ _~3 .,iii J ~ 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 OF' SEPTEMBER 1976 Personal Property Automobiles $2400.04 Nugh Mixon Tax Assessor-Collector City of Denton, Texas 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 SEPTEMBER 1976 Personal Property NAME ACCOUNT TAX TAX REASON NUMBER YEAR Carol Abney 9999-00070 1972 $ 5,78 Unable to locate William F. Abercrombie 9999-00105 1974 3.40 " " of Joe B. Abney 9999-00115 1973 32.13 " Alexandra Rose Adams 9999-00235 1974 15.98 " If It of 9999-00230 1974 15.98 to If so William R. Acker 9999-00110 1972 3.40 " " " it of " 9999-00170 1973 1.70 " to ii Jane Adams 9999-00215 1972 12,92 if to " Ora E, Addis 9999-00420 1973 1,36 " or " Alfred Babatunde Adenir9999-00425 1973 3.40 " It If Deborah Aderhold 9999-00330 1972 6.12 " " to Joseph Adewuyi 9999-00335 1972 2,72 " " " Dale D. Agnew 9999-00405 1972 8.50 It of it Kathleen F, Ahern 9999-00525 1973 16.32 to " 11 Doris A. Akin 9999-00455 1972 11.05 of If " Susie Aldafo 9999-00525 1972 5.78 " George C. Aldrich 9999-00545' 1972 15.93 " " it All Air Int. Inc. 9999-00620 1972 6.63 If " 41 Dickie E. Allen 9999-00675 1972 5.78 to " is Harold D. Allen 9999-00690 1972 6.80 to if " " " " 9999-00695 1972 8.50 " " 11 Linda Jo Allen 9999-01225 1972 5.78 " of " to If to 9999-00895 1973 2.72 of " It Wma 00 Allen 9999-00960 1974 10.20 it It it James M. Almond 9999-00890 1972 2.72 to " 11 Daisy Anderson 9999-01025 1972 11,05 of " " James Anderson 9999-01315 1973 5110 to " " Kelsta J. Anderson 9999-01335 1973 12.92 It if it Phillip Anderson 9999-01275 1974 8.84 to It to William Eugene Andrews 9999-01190 1972 5.78 " " of Curtis F, Anderson 9999-01240 1973 2.72 " of " Victor A. Anderson 9999-01160 1972 2,72 It If If J. K. Anthony 9999-01220 1972 15.98 of it of Layttn 0. Appleberry 9999-01245 1972 5,78 is to if Clifford Joe Apratlan 9999-01495 1973 15.98 " or to Ben C. Armstrong Jr. 9999-01575 1973 11.05 " to is Michelle Armstrong 9999-01530 1974 5.10 " " of B. 4, Arnett 9999.01360 1972 6.63 If " " Janice Ruth Arnold 9999-01405 1972 8.84 to If " Eddie Arrington 9999-01695 1973 6.12 It " of Henry Ashley 0999-01510 1972 12.92 to It of of " 9999-01515 1972 5,78 to n u J. Ashok 9999-01830 1973 2x72 If " of Atlantic Pacific Long 9999.01900 1974 8150 " " " Atwood Machine Co. 9999-01980 1973 14,62 it of 11 Daryl L. Babin 9999-01860 1972 12.92 to of u Ron W. Autt:y 9999.01990 1974 6.63 It It If NAME ACCOUNT TAX TAX REASON NUMMER YEAR Glenn Ayers 9999-02090 1973 $ 2,72 Unable to locate Larry W. Bacon 9999-02195 1973 2.72 " If If Bobbie S. Bailey 9999-01925 1972 8.84 " if to Sondra C. Bailey 9999-01960 1972 13.09 " " to David Stanley Bair 9??9-02295 1973 6.63 " " " John W. Baird Jr. 9999-02000 1972 6.80 to " " Cleamo Baker 9999-02370 1973 5.78 if to Is Eddie B. Baker 9999-02385 1973 2,72 " " " " Ceorge L. Baker 9999-02360 1974 2.72 to It " " It 9999-02060 1972 8.84 it John Joseph Baldauf 9999-02505 1973 14.62 It " Barba..i Ballard 9999-02570 1973 11,05 it Terrell J. Ballard 9999-02610 1973 13.60 " Walter Carl Balmer 9999-02215 1972 9.35 to Maria Constance, Barda9999-02930 1973 6.80 is " Clifford Barkman 9999-02410 1972 7.82 If " If " 9999-02415 1972 11.22 it 11 " Charles C. Barnett 9999-03085 1973 2,72 " 0. R. Barnett 9999-03130 1973 6.63- " rr Mrs. Lynn Barnett 9999-03125 1973 11.05 " Benito Barrera 9999-03230 1973 5.78 It Mrs, Paul Bartlett 9999-03355 1973 11.05 to If it David 0. Barton 9999-02755 1972 5,10 it " " David W. Base 9999-02820 1972 5.10 " to " Miriam Bast 9999-03520 1973 6.80 If to to Charles E. Bates 9999-03535 1973 9.35 11 go 11 Gary L. Bates 9999-03540 1973 2,72 It it it to If " 9999-02915 1972 5.78 It It it Joe E. Bates 9999-02920 1972 5.78 of It Willis L. Bates 9999-03545 1973 11.73 of " to " n " 9999-02930 1972 11.05 of If " Donets Baughman 9999-03580 1973 2,1,2 It It " Charles L. Bauman 9999-03585 1973 8,84 it It Danny R. Bays 9999-03620 1973 8.84 " of Donald Bays 9999-03000 1972 11.22 if it it C It is 9999-03005 1972 17.00 " It " F' Ronald W. Basile 9999-03025 1972 5.78 is If If " " of 9999-03020 1972 8.50 " " " 3, D. Beale 9999-03065 1972 '6.63 -Allyson V. Beck 9999-03815 1973 6.80 Bill Beck 9999-03825 1973 3.06 it of so Thomas Lee Beck 9999-03850 1973 5.78 If It If .C, W. Bell 9999-04105 1973 22.95 Ray Boll 9999-03475 1972 2.72 " Stewart M. Bell. 9999-03510 1972 11.73 It " of Johmry Benavidez 9999-03585 1972 12.92 to 11 11 Mrs, M. Andrew Benz 9999-04490 1973 11,05 if it "ifenneth M. Berry 9799-04580 1973 11.05 " It If Lucille A. Biggar 9999-03895 1972 2.72 to It " Morris no Berend 9999-03740 1972 8450 If If IF Joel Do Binger 9999-04045 1972 5,10 11 to so " Melvin J. Berttian Jr9999-04270 1974 11.73 " It " Clifford M. Bishop 9999-04845 1973 11.05 to to Laity A. Black 9999-04925 1973 1,70 " of Sao. D, Blackwell 9995-04455 1974 9018 " " " it u n . 9999-04170 1972 8,50 is If 11 ir' if it 9999-05005 1973 11.56 ' If " it It if 11 B, Bi,Blacwre 9999-23435 1972 12,92 to Paul We Blackwell Jr 9999.04165 1972 6.80 it 11 1 NAME ACCOUNT TAX . TAX . REASON . N1Sh1iSSiR YFAR Robert E, Blanchard 9999-04325 1972 $ 5.10 Unable to locate Philip W. Bley 9999-04450 1972 11,05 " it " Gwen F, Bliz 9999-04460 1972 6.12 " it if Juanda Block 9999-05345 1973 6.80 " is If " It 9999-04465 1972 8.50 to It of Jerry L, Blocker 9999-04475 1972 2.72 It it David L. Bohannon 9999-04600 1972 22.95 of " " Curtis Booth 9999-04720 1972 22.95 of of " Bobbie Borger 9999-04765 1972 8.84 " " " " A. F. Boaaart 9999-04815 1972 11.05 " it Steve W. Bossart 9999-04820 1972 15.98 " " " Joy M. Boswell 9999-04845 1972 3.40 " " " Jennie M. Bowles 9999-04940 1972 12.92 A. Marie Boyce 9999-04980 1972 9.35 Ely L. Boyce 9999-04985 1972 12.92 David Boyle 9999-05120 1972 14.62 " " Carol Boyer 9999-06080 1973 5.10 Larry'C. Bracken 9999-06135 1973 1.36 James E. Bradley 9999-05180 1972 11.22' Michael T. Brady 9999-05260 1972 12.92 " to It 9999-05265 1972 9.35 It It if Jame9 H. Branch 9999-05330 1972 12.92 of to " Donald R. Brana 9999-06325 1973, 2.72 " " " David Braunschweig 9999-0645: 1973 8.50 It I. to Roy Brazeal 9999-05445 1972 5.78 ° " if Logan Brandon Bregs 9999-06480 l Q3 2.72 go If Jeffrey H. Brennan 9999-06495 1973 5.10 It " " Carolyn Brice 9999-06560 1973 8.50 " " " Ernest L, Bright 9999-05595 1972 5.78 " " " to " " 9999-05590 1972 17.17 Joe We Breman 9999-65455 1972 5.78 to If " Bill Brisco 9999-05645 1972 12.41 of " It Floyd 0. Brisco 9999-05650 1972 17.51 of " " Mike Britton 9999-05715 1972 2.38 If If " Jerry D. Brown Jr, 9999-07045 1973 8150 " Matt-T. Brothers 9999.05905 1972 12.92 if Mrs. C. P, Broughtei 9999-05910 1972 32.98 „ it " Jimmy C. Brown 9999-06090 1972 17.51 it " If Lucy Brown 9999-06125 1972 •2.04 " It " Terry L. Brown 9999-07400 1973 17.51 of " If Thomas E.,Brown 9999-06200 1972 12.92 " " " Weldon Brown 9999-07415 1973. 2.72 " " " " " 9999-06220 1972 5.78 It It B. Broeek 9999-07480 1973 5.78 " is of Abraham J.'Bshara 9999-17655 1973 22,95 u to to Robert J, Browne 9999-06250 1972 6.80 to " to Ronald Re Browning 9999-06260 1972 5.78 n " It Ben E, Brownlee 9999.06265 1972 6.80 to " " James R. Browne 9999-06285 1972 3.06 of it IN Susan Donna Buckman 9999-07700 1973 5,10 It It it Jack 0. Bulan 9999-0%720 1973 18,36 If to " Larry 04 Su1F 9999-07730 1973 12,92 it If If David Me Bunting 9999-07790 1973 8650 " to of Jtnea H. Burkleo 9999-08010 1973 11,22 " It it It of of 9999=06680 1972 14.11 Michael D. Burch 9999-07825 1973 202 " " " James D. Burger 9999.07915 1973 12.92 Is 10 " Doris L, Bullard 9999-06480 1972 1.70 " If 11 ttAAtF ArCOIWIT' TAX TAX REASON . NUMBER YEAR William G. Burge 9999-06620 1972 $ 8.84 Unable to locate Herbert Burnap 9999-06710 1972 11.05 " it is E. C. Burnett 9999-06730 1972 2.72 " It " Donald Lee Burr3 9999-06780 197: 3.40 to it to A. W. Burrows 9999-06885 1972 3.06 " it it Brian I. Burrough 9999-08160 1973 9.35 " It it Lou Ellen Bybel 9999-08410 1973 11.73 " to of Mary M. Burton 9999-06925 1972 8.50 11 IF to Mary Burton 9999-06920 1972 16.32 " of " Jerry N. Burton 9999-06915 1972 5.10 TOTAL 0 $1,537.82 . Mrs. E. B. Brown 9999-06135 1972 2.72 Deceased NAME ACCOUNT TAX• TAX REASON N111BER YEAR Ther6n tbbott Jr. 9999-00080 1970 $ 2.40 Too old D. W. Adams 9999-00130 1970 12.00 " It Max Addison 9999-00270 1970 14.10 " to Max R. Addison 9999-00275 1970 2.40 " Max Addison 9999-00265 1970 1.80 Linda Alexander 9999-00505 1970 11,40 Joseph Andrews 9999-01200 1970 9.00 Larry W. Armstrong 9999-01340 1970 12.90 Richard Be Arnette 9999-01375 1970 12,90 George To Artmier 9999-01480 1970 5.10 to is Jon-Frances Ashby 9999-01505 1970 5.10 " to At Wood Vacuum Co. 9999-01555 1970 15.45 " to Arnold Z. Bailey 9999-01830 1970 14.10 " it If of " 9999-01835 1970 14.10 " Bobbie Bailey 9999-01850 1970 11.40 of " John Baird Jr, 9999-01955 1970 9.00 to " . C. L. Balkum 9999-02115 1970 10.95 is " Terrell J. Ballard 9999-02180 1970 9.75 If " Willie Barber Jr. 9999-02295 1970 9.75' " if Victorua R, Barrera 9999-02535 1970 7.50 it to Lousie Bartts 9999-02745 1970 2.40 David W. Bass 9999-02750 1970 7.50 Be G. Bays 9999-02900 1970 11.10 Joe B. Beam 9999-02975 1970 12.90 Mrs. M,'L. Beauchamp 9999-03075 1970 2.40 of to Fred Behnkh 9999-03210 1970 11.10 to " Barbara Bell 9999-03300 1970 2.40 if 11 Reynaldo Benevides 9999-03460 1970 7.80 It Marjorie J. Bender 9999-03475 1970 5,25 " " Out Robert Bennett 9999-03520 1970 6.90 We Be Bennett 9999-03540 1970 5.10 " Ann Bennie 9999-03545 1970 5.10 it 81 Nelson Benoit Jr. 9999-03555 1970 9.75 " " 4 " Norman Berez 9999-03600 1970 14.40 of Johnny Benavidez 9999-03465 1970 2.40 " " Terry L. Bird 9999-03820 . 1970 11,40 " If Ervin Berlew 9999-03835 1970 7.80 is It Jerry Bishop 9999-03865 1970 4.50 " " u " 9999-03870 1970 '5.10 Lana Bishop 9999-03875 1970 6.00 of It Rand D. Bitetti 9999-03905 1970 11.40 " to Leo Blaisdell 9999-04080 1970. 6.75 it it Frank Blakley 9999-04115 1970 10.20 to to u It 9999-04120 19711 9100 " " Trerona Blalock 9999-04130 1970 2.40 " Joe Blandford 9999-04155 1970 5.10 " 11 " Henry P. Boardman 9999-04285 1970 7.80 to Coyle W. Bode 9999.04310 1970 12.90 " " Reginald L. Bolding 9999-04355 1970 5010 " Richard V. Bolog 9999-04380 1970 14.40 " " " Gerald Bond 9999-04410 1970 10150 to lime R. Bonnell 9999-04445 1970 10.35 " " James Boone 9999-04490 1970 5.70 It " Wayne Bourke 9999-04650 1970 12.60 of " Madonna R. Bovas 9999.04670 1970 12,60 of " Delbert Bowman 9999-04745 1970 7.80 of to PArle Bracken 9999.04935 1970 6.00 " " Do J. Brabham 9999.04925 1970 14.10 Billy James Brabham 9995-04930 1970 3.00 " NAME ACCOUNT 'FAX TAX RrASON NUMBER YEAR Alvis Bradford Jr. 9999-04950 1970 $ 9.75 Too old Jimmy Bradley 9999-04970 1970 7.80 " " Jack Brady 9999-05020 1970 11.40 It Mrs. Walter E. Braley9999-05045 1970 12.00 Roy Brazeal 9999-05215 1970 9.75 Thurman L. Bridges 9999-05335 1970 7.80 Guy Brigandi 9999-05345 1970 4.50 to " Martha Jane Briggs 9999-05370 1970 7.80 " " Clair Brim' 9999-05400 1970 9.75 it " Carlton H, Brock 9999-05470 1970 14.40 Mrs. James B. Brewington 9999-05255 1970 14.10 Rudy Browder 9999-05675 1970 .2.40 If it D. C. Brown III 9999-05740 1970 14.10 " of Charlotte Brown 9999-05730 1970 11.40 " " Sherry A. Brown 9999-05950 1970 10.95 " of Lee Brown 9999-05875 1970 2.40 John Brown 9999-05840 1970 9,00 Jerry W. Brown 9999-05825 1970 7.40' Cecil Bryant 9999-06130 1970 11,90 Wilbert W. Brown Jr. 9999-05975 1970 11.40 " Arnold Buccolo 9999-06200 1970 9.90 Mary Buckler Realty 9999-27685 1970 23,85 John Burke Jr. 9999-06475 1970 14.10 " Jimmy D, Burchard 9999-06360 1970 10.35 't " " W. H. Burchard 9999-06365 1970 8.10 if " E. Russ Burbank 9999-06510 1970 11.40 to " Kenneth Burt 9999-06695 1970 6.00 it " L. C. Burt 9999-06700 1970 8.10 It " Charles V, Bus.-ton Jr.9999-06705 1910 7.50 It, Richard A, Burns 9999-06640 1970 5.10 " Clint L. Burns 9999-06560 1970 8.10 to to Clinton L. Burns )999-06565 1970 5.10 v n 0, Drake Bush 9999-06750 1970 1.50 to of Barbara `l, Butler 9999-06775 1970 2.40 to of Randolph Butler 9999-06800 1970 6.00 " of Randy Butler 9999-06805 1970 12,90 to it Anna Buttis 9999-06815 1970 7,50 to it Joseph Bycz 9999-06875 1970 11,40 " of Donald V. Bynum 9999-06890 1970 14.10 to " TOTAL $ 859.50 A SUGGESTED PROCEDURE: An Approach to Local Authorization of Cr,uie Television e CABLE TELEVISION INFORMATION CENTER The Urban Institute 2100 M Street, N.W., Washington, D.C. 20037 PREFACE This document was prepared by the Cable Television Information Center under grants from the Ford Foundation and the John and Mary R. Marklc Foundation to The Urban Irstitute. • • The primary function of the center's publications program is to provide policy makers in local and state governments with the information and ana• lytical tools required to arrive at optimum policies and procedures for the development of cable television in the public interest. 5 INTRODUCTION This guide suggests essential steps and issues which help ensure that well- Informed decisions are made by those responsible for developing broadband communications systems for a community, The following discussion has two functions: first, it is a checklist in determining how a cable system should be established in compliance with federal regulation; and second, it is a guide to areas where assistance may be needed to assure a thoughtful process. Its objective is to set forth for public officials a general view of a process by which issues may be considered, local legislation written, an operator selected and the system constructed. The principal recommendation is that local officials take the initiative to decide the kind of cable system they want, rather than wait to decide be- tween the alternatives others present. This guide begins with a short discussion of federal guidelines and their impact on this process. This is followed by a suggested procedure, examined in each of the five phases of cable development: organization, study, legisla- tion, applicant selection and supervision-enforcement. For each phase there is a list of issues or questions which must be resolved prior to that stage of cable development and the procedure for dealing with them. The following is an outline of a suggested procedure: A Suggested Procedure 1. ORGANIZING PHASI. A. Develop Buie Understanding of Cable Issues B. Select Mechanism for Study 11. STUDY PHASE A. Establish Study Procedures B. Identify Issues for Study III. LEGISLATION PHASE A. Identify Legal Restrictions on Local Relalarlon, Federal, State and Local Limitations B. Establish Procedure for Writing and EnactlnjOrdlnance with Public Participation C. Draft Proposed Ordinance D. Enact an Ordinance IV. APPLICANT SELECTION PROCESS A. Decide How to select rranchlsee B. Prepare Application Form C. Develop Public Proceeding that will Afford Due Process D. After franchisee has been Selected, Determine What Tasks Remain before System Construction Beplns V. SUPERVISION AND ENFORCEMENT PHASE A, Determine Responsibility for Supervision and Enforcement B. Develop Process for Operation of :6e Supervisory Body 1, ARBITRATE DAY-TO DAY DISPUTES 10 7. REVIEW OVERAt!.SYSTEM OPERATION t i. GUARANTEE COMPLIANCE WITH RESPECT TO OWNERSHIP AND CONTROL 6 Federal Regulation of Cable and Its Impact on the Local Process Cable television, because it is a link in interstate communications, falls within the regulatory power of the Federal Communications Commission. The commission has set national policies and regulations which provide a framework for regulation. However, the most fundamental aspects of cable regulation, such as who will operate a system and what the ; oundarics of a service area will be, are questions determined by local governments. A local process must take into account the procedural require- ments and standards set by the FCC for local regulation. Specifically, the FCC order issuing the federal guidelines states that: before a cable system commences operation with a broadcast signal, it must obtain a certificate of compliance from the Commission. The appli- cation for such a certificate must contain (Section 76.31 (a)(1) a copy of the franchise and a detailed statement showing that the franchise author- ity has considered in a public proceeding the system operator's legal, character, financial, technical, and other qualifications, and the adequacy and feasibility of construction arrangements. We expect that franchising authorities will publicly invite applications, that all applications will be placed on public file, that notice of such filings will be given, that where appropriate a public hearing will be held to afford all interested persons an opportunity to testify on the qualifications of the applicants, and that the franchising authority will issue a public report setting forth the basis for its action. Such public participation in the franchising process is necessary to assure that the needs and desires of all segments of the community are carefully considered. A Suggested Procedure 1. ORGANIZING PHASE A franchising authority has two organizing tasks: to develop a basic understanding of cable issues, and to select a mechanism to gather the information on w:iich to base cable dec6ions. A. Develop Basic Understanding of Cable Issues Public officials will need to learn the basic dimensions of cable, what it is and how it works. They should understand the federal, state and local regulatory framework and give thought '.o the political, social, educational, economic and cultural Implications for the community. At this point In cable's development it is still possible to shape the technology to serve the public. To h:,ve a responsible influence public officials will want to understand cable corr.aunications and the issues tf,at bear on the decisions they will be required to make. B. Select Mechan,sm for Study Consideratior should be given to creating or Identifying a mechanism to gather', . Information on which to base well-informed eabla decisions. Among the concerns involved are the study's intent and We talent needed to accomplish the study. 1. STUDY INTENT] The local franchising authority has responsibility for two critical dechlons'. the kind of systen, to be built, and who will operate It, Mechanisms such as committees vary from those delegated responsibility for both functions to those limited to a very specialized area. Information gathering options include a full-scale feasabilily study, a survey of the options available to the municipality or an in-depth study of selected issues. 7 he study's scope is determined by the level of information considered necessary to make decisions, tempered by re- source and time limitations. 2. TALENT NEEDED Before selecting a study format, the community should examine the kinds of talent needed for the study and its availability. Technical ski!ls essential to the understanding and development of a cable system fall into three basic areas: legal, engineering and financial. In addition, public administrative and urban analytical skills are essential in examining potential municipal use of a cable system. All sectors of the community may be considered as resources for talent: government (elected officials and professional staff), school system (board members, administrators, teachers), university community, business and legal community, religious community, civic organizations. Any talent needs, including consultants, which cannot be met on a volunteer basis should be detailed for budgetary requirements. 3. TYPES OF COMMITTEE STRUCTURES a. Loco! Governing Body Study Committee Local legislators have four basic areas of responsibility in regulating cable television: general investigation of the issues, passage of ordinances, selection of ownership, and supervision and enforcement of regulations applying to the system. To fulfill these rMigations, policy makers must cbtain the necessary infor- mation on which to base decisions In each area. The data can be gathered and evaluated by a committee of the whole, a standing committee, or a ♦ specifically appointed ad hoc committee. The governing body may want a special study prepared by its professional staff or can consider commission- ing a study. b. Internal Municipal Studies It Is a common practice for governmental units to undertake self-con- tained studies of current issues. Some jurisdictions havt. research services which carry out studies on a regular basis; in others, the study may be done by a committee representative of city departments or under the direction of a single department-often the planning department or the office of the chief executlve. The purpose is to provide city officials with sufficient information to make decisions in the best interest of the municipality. The study can also serve to educate these officials and io collect information on possible munic- ipal uses of the cable system. c. Public StudyCanmissb), i Study commissions offer considerable flexibility because they can Include members of the public to augment the skills available within the local gcr- ernment. Such a committee's membership Includes elected officials and pro- fesslonal city staff together with educators, members of the business and legal communities, and representatives of community and civic groups. S The purpose of the commission's appointment can range fr4)m a full feasi- bility study to a survey of the community's sense about the utilization of cable television. d. Reglonol Cominisslons Because cable television is a communications medium with the capacity to interconnect with systems of adjacent governmental units, groups of neigh- boring communities often decide to evaluate cable communications issues from a regional perspective. The mechanism used for such an approach is ' generally one of the following: 1. An Existing Structure Many communities belong to regional planning commissions or area councils of government-convenient structures for comprehensive area cable studies. Using an existing mechanism provides the immediate bene- fits of a regional perspective to local issues, and perhaps additional re- sources. Typically, this type of structure can be used only to study and plan cable systems, because the mechanism rarely has the legal authority to pass legislation or grant a franchise. ii. A Structure Created Expressly for Cable Communications Study Group. Recently, some governmental units have joined together for the specific purpose of developing a regional plan for cable television. This usually has been effected by each participating municipality approving enabling legislation designating the city's representative(s) on the committee, allocdi:ng funds and defining the commission's purpose. Study/Franchise Authority. In other instances, the intergovern- mental cooperative venture could be expanded to grant a franchise, subject to the veto of each participating city. However, many state constitutional, statutory, and home-rule provisions preclude this type of action. 4. FUNDING Budgets for cable committees vary greatly depending upon the scope of their responsibility, the expertise of their personnel, and the time available. The budget should, of course, be established by the committee in conjunction with the authorizing authority. Factors to be considered when determining costs include profesdonal and clerical support staff, outside consultancy, and public information materials, The franchising authority need not be considered the sole source of funds. The federal government or local and national foundations may also be sources. In the future, funds may be available through slate planning or development departments. The selection of a study structure in a community marks the completion of the organising stage. Using this process, the franchising authority wail have assessed Its interest in terms of cable and created a procedurv for obtaining the Information necessary for its decisions on the development of cable television. II, STUDY PHASE Because of the varied problems In municipalities and the different conceivable l, possible approaches, it is impossible to establish a complete list of cable issues to be studled. The committee should follow a procedure designed to maximize resources 9 and cover the broadest range of issues. The following study phase presents an ap. proach to administrative problems and a list of substantive questions. These ques- tions by no means exhaust the issues surrounding local involvement in cable develop- ment; they serve only to indicate the scope of the issues. A. Establish Study Procedures A study will not proceed easily or automatically. Its intent will be realized only if its scope and rationale are carefully determined, its budgetary and personnel requirements precisely established, and timing or duration carefully fixed. Before embarking on any study the cable committee should define with its authorizing body: * The reason for carrying out the study * How the study will be utilized * How the public will participate (public hearings) * Budget and staff for the study * Deadlines for the study A useful procedure for coordinating a study to consider issues such as the ones Identified below in B might include the following steps: * Breaking down issues into manageable areas * Establishment of study groups (subcommittees) * Determination of need and use of consultants * Establishment of study timetables * Public participation (workplan for public Involvzment, calendar and mocha- n1sm for involvement of advocate groups and general public, community education materials, publicity, circulation of final report) B. Identify Issues for Study 1. WHAT KINDS OF SERVICES SHOULD A CABLE SYSTEM PROVIDE IN A COMMUNITY? * What kinds of services does cable technology now permit? * What are the technological developments that will affect the availability of future services as a cable system develops? * What services does the community desire? * What is the likely cost of supplying public services? * What possible sources of revenue (subscriber or non-subscriber) could sup- port public services? 2. WHAT FEATURES OF SYSTEM DESIGN INFLUENCE CABLE COM- MUNICATIONS SERVICES AND WHAT ARE THE RELATED COSTS? * What channel capacity will the community need? * What level of two-way capacity will the community require and when will Increased two-way capabilities be needed? * Flow many program originatlo, facilitieswill be required? Where should they be located? * Should the community consider channels designated for special purposes? * What costs do these Issues of system design entail for the cable system and for the community? 10 3. HOW SHOULD THE SYSTEM BE DEVELOPED TO SERVE IDENTI FIABLE COMMUNITIES AND GROUPS? * What are the socio-economic trends in the community? * Do the service requirements dictate specific areas of service? * How will possible service plans influence existing communities and rede- velopment plans? * What differences exist between a system designed for general residential subscribers and one designed to serve commercial and institutional users? How are their needs compatible? * What aspects of the system's design need to be considered with regard to service areas and their use as a mechanism for centralization and decentral- ization? * Is the system required to be technologically compatible for interconnec- tion with others? * What problems does any particular area of the city present in terms or construction and the time needed to erttnd service? 4. WHAT WILL BE THE FORM OF OWNERSHIP? * Will there be one form or several, depending on the number of service areas? * Will these include municipal, commercial, subscriber-owned, community nonprofit? * What are the issues raised by encouraging local and minority participa- tion? v(/ * What impact would form of operation have on the economy and commu- nity in terms of revenues, employment and financing construction? 5. IF THE SYSTEM IS NOT OWNED BY THE LOCAL GOVERNMENT, WHAT PROCEDURES WILL BE NECESSARY FOR REGULATION? * Who has been given responsibility for writing the ordinance? * What kind of application form should be used? * How will the applicants be selected? * What enforcement and compliance procedures for rate review should exist for complaints from both channel users and subscribers? 6. IF THE SYSTEM IS OWNED BY THE MUNICIPALITY, WHAT REGULATORY PROCEDURES WILL BE NECESSARY? * Will an ordinance be adopted to govern the municipality*sown operation of the system? * Will a city department operate the system? If so, how will problems related to government control of a communications system be resolved? If not, how will the system be operated? 7. THE ISSUES RAISED IN THE ORDINANCE OUTLINE PRESENTED IN THE LEGISLATIVE PHASE MUST BE EXAMINED The completion of the study phase should give the local franchising author. ity sufficient Information on which to base its decision concerning cable Iclevi- $ion, Once a direction has been clearly established, it is important to develop sound legislation which will protect the rights of the franchising authority not ® only during the applicant selection process, but in the system's development and use. Ill. LEGISLATION PHASE In terms of impact, this phase of the process is the most vital. In the legislative process the franchising authority makes and formalizes its decisions about cable television. All provisions it considers necessary and important to its cable system must be embodied in this ordinance. Requirements omitted from the ordinance, despite assurances to the contrary, can seldom be Implemented. In the development of its legislation, the community might take the following measures: A. Identify Legal Restrictions on Local Regulation, Federal and State and Local Limitations B. Establish Procedural Mechanism for Writing and Enacting the Ordinance With Public Participation C. Draft Proposed Ordinance The contents of the ordinance are, of course, a matter for local decision, but it might be organized as indicated: 1. PURPOSE OF THE ORDINANCE AND N %TURE OF THE GRANT- THE JURISDICTIONAL BASIS FOR THE FRANCHISING AUTHORITY'S POWER 2. SHORT TITLE © 3. DEFINITIONS 4. PROVISIONS GOVERNING THE LENGTH, RENEWAL AND TRANSFER OF CERTIFICATE OR FRANCHISE o. Length of Franchise b. Renewal c. rransfers, Assignments ' S. FRANCHISE TERRITORY-EXTENSION OF SERVICE 6. SYSTEM DES IGN a. Channel Capacity b. Channel Uses c. Access Programming For lities d. Specialized Services-Point to Point Service e. rwo. way Provisions and Subscriber Primcy f. Interconnection g. Underground and Aboveground Installation Requirements 7. TECHNICAL PERFORMANCE STANDARDS 8. LOCAL REGULATORY FRAMEWORK a. Procedure for Day-lo-Day Regulation b. Functions to be Regulated 1. Construction Timetables, Provision Of Service Upon Consumer Demand 12 II. Legislation of Specialized Services Ill. Maintenance and Alteration After Construction , iv, Rates v~ V. Franchise Fees vi, Employment Requirements vii. Consumer Complaints viii. Use of Streets, Pole Attachments c. Method for Resolving Disputes d. Records and Reports, Notice of Documents Filed With Other Agencies e. Sanctions, Penalties, Enforcement f. Indemnification, Insurance, Liability for Domages g. Foreclosure, Receivership D. Enact an Ordinance At this point, the franchise authority formally makes its decisions about the development of its cable television system and the purpose it will serve. A strong, well written ordinance protects the franchising authority and assists the applicants in preparing relevant applications. It serves as the basis for the applicant selection process. IV. APPLICANT SELECTION PHASE The ordinance defines the relationship between the franchising authority and the cable operator. At the same time, the ordinance should prescribe the method for choosing the franchisee. The skilled use of a comprehensive application form in an open public proceeding can help ensure the selection of an approprlate operator for the system. This selection process can be bypassed only if the franchising authority has decided to develop a cable system under municipal ownership. In the development of the applicant selection process, local officials must address a number of Issues: A. Decide How to select Franchisee 1. THE FRANCHISING AUTHORITY The franchising authority may wish to retain control throughout the entire application selection process and make the final decision on the franchise. 1, DESIGNATED AUTHORITY The franchising authorlty may want to designate a citizens committee, city council subcommittee, or sonic other body to make recommendations regard. ing qualified applicants who should be considered to receive the franchise. Only rarely may a mayor, city council, or board of commissioners delegate its tegisla- tive authority to such an :+ppointed group. B, Prepare An Application Form A detailed statement of the information which the franchise applicants will be required to furnish should be developed and used by each applicant. The more specific the requirements, the easier the selection unit's task of evaluating the application, 13 The application form must require information concerning the applicant's legal, 0 character, financial, technical, and other qualifications. Additionally, the franchis- ing authority must receive information relevant to the applicant's plans to provide adequate and feasible construction arrangements. The application form should reflect these and all other qualifications required by the ordinance. If the franchising authority has decided to place particular emphasis on some areas of the application, it should make that decision known to all applicants and require explicit information relevant to those areas of emphasis. C. Develop Public Proceeding that Will Afford Due Process The FCC requires that a franchising authority consider a franchisee's qualifica- tions tdoperate the system in a "full public proceeding" that will ensure that all interests in the community are carefully considered. To achieve fairness the com- mission has stated that the selection process under ordinary circumstances should Include: 1 4, PUBLICLY INVITED APPLICATIONS 2. APPLICATIONS PLACED ON PUBLIC FILES 3. NOTICE GIVEN TO THE COMMUNITY OF FILINGS 41 4. AN OPPORTUNITY rOR ALL INTERESTED PERSONS TO TESTIFY ON THE APPLICANT'S QUALIFICATIONS (in this respect the commiss on has suggested that an appropriate means of offering this opportunity would be a public hearing) 5. A PUBLIC REPORT BY THE FRANCHISING AUTHORITY SETTING © FORTH THE BASIS OF ITS ACTION D. After Franchisee has been Selected, Determine What Tasks Remain Before System Construction Begins 1. VAIVER If an,, of the franchise requirements are inconsistent with the FCC's rules, the franchising authority should ensure that the applicant will seek a waiver from the c,immission. 2. CERTIFICATION The franchising authority should make certain that all the necessary steps for FCC certification are completed and the application for certification is filed promptly. fince the franchising process Is complete, many municipalities have eonsldered their responsibilities ended. However, to ensure full use and development of a cable system, the city must continue to participate. V. SUPERVISION AND ENFORCEMENT PHASE The franchising authority should establish an efficient method of monitoring the construction and operation of the cable system and enforcing the ordinance and franchise requirements, proceeding as indicated below. However, the authority should be certain the issues considered here are first clearly specified in its ordi- nance. A. Determine Responsibility for Supervision and Enforcement « A regulatory body created for the express purpose of monitoring all facets of the cable system 14 The city council or some established government committee • The office of a city official, i.e., mayor, city manager, or new department B. Develop Process for Operation of the Supervisory Body 1. DAY-TO-DAY ISSUES a. Consumer Complaints b. Disputes among City, Operator, and Consumers c. Fair Employment Practices d. Development, Alonogement and Control of the Government Channel e. Develc;-ment of the Other Access Channels f. Rates • g. Construction Timetables and Standards 2. OVERALL OPERATION OF THE SYSTEM a. Review of Finances for Rote Adjustment b. Alodernitation of Technical Aspects e. Ensuring Adherence to Amendments to Federal and State Regulations 3. TRANSACTIONS CONCERNING OWNERSHIP OR(7~)NTROL OF FACILITIES o. Franchise Transfer and Transfer of Control of Ownership b. Franchise Renewal c. Franchise Revocatlon J d Orderly Enforcement of Buy-Back oi Lease-Back Provisions e. Receivership and Foreclosure Provisions CONCLUSION The above process, Intended to be general in its description, rapidly becomes complex when each of the issues that are raised is translated Into specifics by local communities. In approaching the consideration of cable the franchising authority should attempt to establish its own schedule for considering the many problems raised, rather than reacting to specific franchise applicants. Many issues will be politically and socially sensitive. Federal regulations are complex and continually under modification. New technology is constantly changing the state of the art. To appropi lately consider the dynamic and exciting future that cable promises, a com- munity will want to focus on two goals: * A system that meets present needs, yet is flexible enough to take advantage of future developments • Regulations that conform Lo federal requirements yet permit a community to control the development of the system sr that it can accommodate changes in technology. ~}►I t~~~ 'Fs~~~ ~ OATH OF OFFICE I, PAUL SCHUELER do solemnl; swear (or affirm) that I will faithfully execute the duties of the office of MEMBER OF ELECTRICAL CODE BOARD of the City of Denton, Texas, and will t the best of my ability preserve, protect and defend the Constit tion a 1 f the United States and of this State and the Char r and di anc s of this City. Subscribed and sworn to before me the undersigned on this the 21st day of ! September A.D. 1976 To certify wNTEF- witness my an an sea of o f ce. AJW SECRETARY ITY OF GFNTON, TEXAS f ~a c ~ AT A kEGULAR MEETING OP THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, MELD IN THE MUNICIPAL BUILDING OF SAID CITY ON THE 21ST DAY OF SEPTEMBER, A. D. 1976. R E S O L U T I O N WHEREAS, an Application for Federal Assistance dated August 31, 1976 has been submitted to the Department of Transportation, Federal Aviation Administration (FAA) requesting federal partizi- pation in the cost of certain improvements at the Denton Municipal Airport; and WHEREAS, the FAA has issued a Grant Offer which, if duly accepted, providss a commitment of $285,000.00 in federal funde for development fpecified therein; and WHEREAS, 1z is determined to be in the inter~at of the City of Denton, Texas to accept this Grant. Offer. NOW, THEREFORE, BE IT RESOLVED that the City of Denton does hereby accept the provisions of said Grant Offer, a copy of which is attached hereto and incorporated herein for all purposes, and, to evidence this acceptance, the Mayor of the City of Denton is hereby aut`:arized and directed to execute the Grant offer on be- half of the City of Denton, Texas. PASSED AND APPROVED this the 21st day of September, A. D. 19 76 . ELINO HESj MYOR CITY OF DENTON, TEXAS ATTESTi OK HOLT, CITY SECRETARY ITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: HAM, CITY. HAM, CITY A CITY OF DENTON, TEXAS ' Page I of 7 pages DEPARTMENT OF TRANSPORTATION r FEDERAL AVIATION ADMINISTRATION GRANT AGREEMENT Part l-Offer Date of Offer SEP 2 01976 Denton Municipal Airport Project No. 5-48-0067-03 Contract No. DOT FA 76-SW 8006 TO: The City of Denton, Texas (herein referred to as the "Sponsor") FROM: Tile United States of America (acting through the Federal Aviation Administration, herein referred to as the "FAA") WHEREAS, the Sponsor has submitted to the FAA a Project Application dated September 9, 1976 , for a grant of Federal funds for a project for develop- ment or the Denton Municipal Airport (herein called the "Airport"), together with plans and specifications for such project, which Project Application, as approved by the FAA is hereby incorporated herein and made a part hereof; and WHEREAS, the FAA has approved a project for development of the Airport (herein called the "Project") consisting of the following-described airport development: Acquire land (fee simple title or other property interests satisfactory to the Administrator to Parcels 2, 3, 49 5, C and D as shown on Property Map Exhibit "A"). ti all as more particularly described in the property map and plans and specifications incorporated in the said Project Application; FAA FORM Noo.o% to. 1 rl?fl) SUPERSEDES FAA FORM 1433 PG. 1 PAGE 1 Page 2 of 7 pages " NOW THEREFORE, pursuant to and for the purpose of carrying out the provisions of the Airport and Airway Development Act of 1970, as amended (49 U.S.C. 1701), and in consideration of (a) the Sponsor's adoption and ratification of the representations and assurances contained in said Project Application, and its acceptance of this Offer as hereinafter provided, and (b) the benefits to accrue to the United States and the public from the accomplishment of the Project and the operation and maintenance of the Airport as herein provided, THE FEDERAL AVIATION AD- MINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES to pay, as the United States share of the allowable costs incurred in accomplishing the Project, ninety percentim of all allowable project costs. This Offer is made on and subject to the following terms and conditions: 1. The maximum obligation of the United States payable under this Offer shall be $ 28~ 9 000.00 2. The Sponsor shall: (a) begin accomplishment of the Project within ninety clays after acceptance of this Offer or such longer time as may be prescribed by the FAA, with failure to do so constituting just cause for termination of the obligations of the United States hereunder by the FAA; (b) carry out and complete the Project without undue delay and in accordance with the terms here, f, the Airport and Airway Development Act of 1970, and Sections 152.51- 152.63 of the Regulations of the Federal Aviation Administration (14 CFR 152) in effect as of the date of acceptance of this Offer; which Regulations are hereinafter .referred to as the "Regulations"; (c) carry out and complete the Project in accordance with the plans and specifications and property map, incorporated herein, as they may be revised or modified with the approval of the FAA. 3. The allowable costs of the project shall not include any costs determined by the FAA to be ineligible for consideration as to allowability under Section 152.47 (b) of the Regula- tions. 4. Payment of the United States share of the allowable project costs will b, made pursuant to and in accordance with the provisions of Sections 152.65 - 152.71 of the Regulations. Final determination as to the allowability of the costs of the prcjrct will be made at the time of the final grant payment pursuant to Section 152.71 of the Regulations: Provided, that, in the event a semi-final grant payment is made pursuant to Section 152.71 of the Regulations, final determination as to the allowability of those costs to which such semi- final payment relates will be made at the time of such semi-final payment, " -TAA FORM 6100-r1 PO, 1 (7.74) 6UPCR!<COEf PREVIOUS COITION PAGE it Page 3 of 7 pages 5. The Sponsor shall operate and maintain the Airport as provided in the Application for Federal Assistance incorporated herein and specifically covenants and agrees, in accordance with its Assurance 20 in Part V of said Application for Federal Assistance that in its operation and the operation of all facilities thereof, neither it nor any person or organization occupying space or facilities thereon will discriminat_ against any person or class of persons by reason of race, color, creed or national origin in the use of any of the facilities provided for the public on the Airport. 6. The FAA reserves the right to amend or withdraw this Offer at any time prior to its acceptance by the Sponsor. 7. This Offer shall expire and the United States shall not be obligated to pay any part of the costs of the Project unless this Offer has been accepted by the Sponsor on or before September 30, 1976, or such subsequent date as may be prescribed in writing by the FAA. 8. It is understood and agreed that the Sponsor will provide for FAA employees adequate parking accommodations satisfactory to the Administrator at all FAA technical facilities located on the Airport. It is further understood and agreed that Sponsor will provide, without cost, adequate land for the purpose of parking all official vehicles of the FAA (government and privately owned when used for FAA business) necessary for the maintenance and operation of the FAA facilities on the Airport. Such land shall be adjacent to the facilities served. 9. The Sponsor will send a copy of all invitations for bids, advertised or negotiated, for concessions or other businesses at the Airport to the appropriate Office of Minority Business Enterprise (OMBE) representative as identifies: by the FAA Regional Civil Rights Office. The Sponsor will disclose and make information abo,it the contracts, contracting procedures and requirements available to the designated OMBE representative and minority firms on the same basis that such information is disclosed and made available to other organizations or firms. Responses by minority firms to invitations for bids shall be treated iii the same manner as all other responses to the invitations for bids. Compliance with the preceding paragraph will be deemed to constitute compliance by the Sponsor with the requirements of 49 CFR 21 Appen- dix C(a)(1)(x), Regulations of'the Office of the Secretary of Transportation. 10. It is understood and agreed that the term "Project Application" wherever it appears in this Agreement, in Specifications or other documents constituting a part of this Agreement shall be deemed to mean the "Application for Federal Assistance". Page 4 of 7 pages 11. The Airport development in this project will be that hereinabove act out and will be carried out as more particularly described on the property map attached to the Application for Federal Assistance attached hereto and made a part hereof. 12. It is further understood and agreed that FAA approval of the project included in this Agreement is conditioned on the Sponsor's compliance with applicable air and water quality standards in operating the Airport and in accomplishing any construction hereunder; further, that failure to so comply may result in suspension, cancellation or termination of Federal assistance under the Agreement. 13. Deleted 14. The Federal Government does not now plan or contemplate the construction of any structures pursuant to paragraph 27, of Part V Assurances of the Application for Federal Assistance attached hereto, and, therefore, it is understood and agreed that the Sponsor is under no obligation to furnish any areas or rights without cost to the Federal Government under this Grant Agreement. 13. Assurance Number 18 of Patt V of the project application incorporated herein is amended by including at the end of the second sentence the following language: "including the requirement that (A) each air carrier, authorized to engage directly in air transportation pursuant to Section 401 or 402 of the Federal Aviation Act of 1958, using -uch airport shall be subject to nondiscriminatory and substantially comparable rater, fees, rentals, and other charges and nondiscriminatory conditions as are applicable to all such air carriers which make similar use of such airport and which utilize similar facilities, subject to reasonable clas- sifications such as tenants or nontenants, and combined passenger and cargo flights or all cargo flights, and such classification or status as tenant shall not be unreasonably withheld by any sponsor provided an air carrier assumes obligations substantially similar to those already imposed on tenant air carriers, and (B) each fixed base operator using a general aviation air- port shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable t) all other fixed base operators making the same or similar uses of such airport utilizing the same or similar facilities. Provision (A) above shall not require the reformation of any lease or other contract entered into by a sponsor before July 12, 1976. Provision (B) above shall not require the reformation of any lease or other contract entered into by a sponsor before July 1, 1975." Page 5 of 7 pages 16. It is understood and agreed that no part of the Federal share of an airport development project for which a grant is made under the Airport and Airway Development Act of 1970, as amended (49 U.S.C, 1701 et seq.), or under the Federal Airport Act, as amended (49 U.S.C. 1101 et seq.), shall be included in the rate base in establishing fees, rates, and charges for users of the airport. 17. This project and all work performed thereunder is subject to the Clean Air Act and the Federal Water Pollution Control Act. Accordingly, (a) The sponsor hereby stipulates that any facility to oe utilized in performance under the grant or to benefit from the grant is not listed on the EPA List of Violating Facilities. (b) The sponsor agrees to comply with all the requirements of Section 114 of the Clean Air Act and Section 308 of the Federal Water Pollution Control Act and all regulations issued thereunder. (c) The sponsor shall notify the FAA of the receipt of any communication from the EPA indicating that a facility to be utilized for performance of or benefit from the grant is under consideration to be listed on the EPA list of Violating Facilities. (d) The sponsor agrees that he will include or cause to be included in any contract or subcontract under the grant which exceeds $100,000 the criteria and requirements in these subparagraphs (a),through (d). 13. It is understood and agreed that, with respect to the lands acquired or to be acquired under this project in fee title for clear zone purposes or for protection of any of the imaginary surfaces defined in Section 77.25, Su*Dpart C, Part 77 of the Federal Aviation Regulations, it will clear or have cleared such lands of existing structures designated by the Administrator for removal and will not permit any permanent structures thereon other than such structures as are necessary for aids to air navigation and those specifically excepted by the Administrator. 19. It is understood and agreed that the United states will not make nor be obligated to make any payment for land acquired under this Grant Agreement unless and until the Sponsor has furnished evi- dence satisfactory to the Administrator that it is the owner of ptvperty interests satisfactory to the Administrator in and to the land acquired. Page 6 of 7 pages 20. It is mutually understood and agreed that the United States will. not make final payment of the allowable costs of this project until the Sponsor has submitted satisfactory evidence that tho airport imaginary surfaces as defined in Section 77.25, Subpar. C. Part 77 of the Federal Aviation Regulations (14 CFR Part 77, as amended) have been protected by the adoption of a zoning ordinance and regulations or by securing avigation easements or otherwise prohibiting the creation, establishment, erection or construction in si.ch areas of obstr cations to air navigation to the extent provided for in such Regulations or approved by the Administrator as sufficient in the care of this particular airport, It is further understood and agreed that if the imaginary surfaces shall have been protected by the acquisition of avigation easements or other interests in land, the assumption of this obligation shall not operate to bar inclusion of such acquisition in a subsequent project. l 1 • Page 7 of 7 pages . The Sponsor's acceptance of this Offer and ratification and adoption of the Project Application incorporated herein shall be evidenced by execution of this instrument by the Sponsor, as herein- after provided, and said Offer and Acceptance shall comprise a Grant Agreement, as provided by the Airport and Airway Development Act of 1970, constituting the obligations and rights of the United States and the Sponsor with respect to the accomplishment 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 shall remain in full force and effect throughout the useful life of the facilities developed under the Project but in any event not to exceed twenty years from the date of said acceptance. UNITED STATES OF AMERICA FEDERAL AVIATION ADMINISTRATION By..4inC2e; . Ac(TITLE) Fort Worth Airports District ffice Part I1•Acceptanc~ The CITY OF DENTON, TEXAS does hereby ratify and adopt all statements, representations, warranties, covenants, and agreements contained in the Project Application 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. ....~.13 F day of. S.C.P4 e,*b.G!'............ 191,4.. ...Q1TX.QF. DF.NTON,. IEXAS (Name of Sponsor) By (SEAL) Title ...M4.!~Qt i Attest: I Title%.~1f.Y... ~.t4.Y.V 1.4,y........ CERTIFICATE OF SPONSOR'S ATTORNEY r 1,...P.4W}...lrr...T% ~.a . ,acting as Attorney for ...Cc.~?I...A.T...~.Cl?>~41a1~41ta5 (herein referred to as the " ponsor") do hereby certify: `l That I have examined the foregoing Grant Agreement and the proceedings taken by said Sponsor relating thereto, and find that the Acceptance thereof by said Sponsor has been duly auth- orized and that the execution thereof is in all respects due and proper and in accordance with the laws of the State of and further that, in my opinion, said Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof. . Dated at Ct...o.f.3Jeirrbt~T.Cr4sthis...l.3... day (0 CP.+CIAbdt , 19.?~. Title.lil+t~..A.Ho.togy......... FAA FORM 0100.10 ►9 0(10.11( SUPERSEDE{ FAA FORM 1632 PO 4 PAGE 4 DNB Approval No. 29-40215 FEDERAL ASSISTANCE L AJti4 NUMBER ALPPLICA- e. NUMBER CANTS TION TX 60603000 2. TYPE PiMPLICATION APPLI- b. DATE IDENTF b. DATE year, aroaa fay AcTiON ®APPLICATION CATION 19 Year '.ontk der FIER ASSIGNED 19 76 05 11) (Marl prpr aP. ❑ YINLFICAIION CF INTESIT (Opt) Elaoe ' aoi) rata REPORT OF FEDW_' ACTION B(nnk 4. LEGAL APPLICANT/RECIPIENT 5. FEDERAL EMPLOYER IDENTIFICATION N0. 1. 4PI[Cant Plenty :City of Denton 75-6000514W It, Drtentnuan Unit :Airport L C. Stnaw.0. Bast :215 E. McKinney PRO- s. HUNGER 12101" 11 101? d. Div JDentcn L Dower t Denton CRAM L T1TFE T.$bid :Texas 1.E1POWS: 76201 Feederaal Airport Development L Contact Ponca (Rama William K. Cole codalop) Aid Program ape E /elraAone A'o.) 914 3 7. TITLE AND CESCRIPT Ott O APPLICANT'S PROJECT B. TYPE OF APPLICANT/RECIPIENT A-Skh 11-0ammun it/ /cG°n A`toed Land acquisition for clear zones, Denton Municipal 1-Intermts I-KI,her Eduouaal irohtduae frsubstata J- India Tribe Airport o cad lc K-0thor tspet(!r)e E-C I► F-4.1na1 Dialect Overlay and strengthen the existing N/S runway with ~Purpose, hot mix overlay o°au SaIn.,Prapna. r.tltr© 10. TYPE OF ASSISTANCE A-!a!t Crane 04nanna 542;oonwtal Grant E-0ther Ent" apps. C-Eson Priale kara(t) 10. AREA Or PROJECT IMPACT INawra of eitia, r"iNca, It. ESTIMATED NUM- 12. TYPE OF APPLICATION Cit of Denton, SIGs. 4") DEER OF IPEr~RSONS A_Nn ""W" E-AapnenbGoo Denton 54oneral D-Castinuatipa Count rotor aPpapriak kltn 77. PROPOSED FUNDING Id. CONGRESSIONAL DISTRICTS OF: 19. TYPE OF CHALICE (Far De a Jde) L FUDERAL S S .ES a. A?PLICAJO Is. PROJECT 6-0rWonve Daliian F-0iher ISprc(frla C-lnnaaO Celli" 1. RPPLICANT .a 0-0ernaa Ouraule a. STATE I f (b IC. PROJECT START 17. FROJECT E-Gna(Istka GATE Year woalkfdy DURATION lakr= i 0. LOCO , .DO 19 7 7 1 0 .1 bfdnLAa priata kttne) a. OTHER .ED 1d. ESTIMATE) DATE TO Year enawtA for 19. EXISTING FEDERAL IDENTIFICATION NUMBER DE SUSIAIrTED TO L MAL IT 712 151 :o FEDERAL A.GENCYIt- 127f; 9 1 -1 75-1-5-48-0067-03'-76 M FEDERAL AGENCY TO RECEIVE REQUEST (Nano, city, sick. ilia coda) al. REMAAXS ADDED FAA FTW ADO P. 0. Box 1689 Fort Worth Texas 76101 a Yee in NO _ 2L I. to the bed at in karldJe and belief, It. It r"UjNd by OMB Cirautar A45 VIII appliutind Iran Submitted, Funus t k la- No ran R.rAO tw dab Fi WIS. Prappllcationhppltau.n are ntndial Denin, to Ippnprlata elarireh°usa and III ISIPama All Ittaledl -Pena aa.oeAed THE but end anal, thn dxu•Gert bet bass APPLI= dory lotw2pd by Do adwrn1 Ida 44 { CERTIFIES the I*Icank and LSO Wpllant will col (1) Previ0usly submitted) ❑ THAT Is, rith the aibeld nesonnta R the aalet- ❑ ❑ Inn Is apArad. rJ) ❑ ❑ !3 a. TYPED )AWE AND TITLE L SICKATUBE a DATE SIGNED CERTIFYING rear teach day REPRE- James W. White 1 BENTATIVE City Manager 24. AGENCY NAME 25. PLICA- Year nwna day ECEIVED 19 Federal Aviation Administration I RTION 2L ORGAN2ATIONAL UNIT 27. ADMINISTRATIVE OFFICE 2L FEDERAL APPLICATION Fort Worth Airports District Office ASW-660 T41 TIPICA6TIDN03 !9. ADDRESS 3% FED¢RAL GRANT P. 0. Box 1689, Fort Worth, Texas 76101 5T4'8IFIOTION03 12. ACTION TAKEN 32. FUNDING Yar tneslA day 34. Year M41116 day STARTING a. AWARDED I. FEDERAL 3 .00 31. ACTION 00) E p 19 DATE 19 L REJECTED L APPLICART eO 35. CONTACT FOR ADDITIONAL INFORM,, 3L year arowit day TION (Now" and tdophene alasSer) 13t. JUM(UttD FDA a. STATE ,00 ENDING GATE 79 e AMEXDOW d. LOCAL to 37. REMARKS ADDED 04. DEFERRED e. OTHER .00 [3 a. WITHDRAWN 1. TOTAL II .00 ❑ Yea No 31. a. In Wind aAdta salol, any Comments rocsind Front darinshdusa %,re man. I. rEOERAL AGENCY A-S5 OrFICIAL eidere,l. II alenri nopana he ties older pn.nnas " Part Jr Oat Ctnuler A•9S. OName and folepho" u.J FEDERAL AGENCY N has boa er In being needs. A4S ACII04 424-101 STANDARD FORM 424 PAGE 3 010-75) ,n r .,'....Ian 1YVeribed Ili GSA, federal 148009 "on" cotoLor Ai4 OEPARDdENT OF TRANSPORTATION • ~RAL AVIATION ADMINISTRATION • or.e NO. 61IA0116 PART II PROJECT APPROVAL INFORMATION SECTION A Item 1. Does this assistance request require State, local, Nome of Governing Body regional, or other priority rating? Priority Rating Ye6 x Na Item 2. Does this assistance request require State, or local Name of Agency or advisory, educational or health clearances? Board Yes x No (Attach Documentation) Item 3. Does this assistance request require clearinghouse review (Attach Comments) in accordance with OMB Circular A•95? x Yes No Previously submitted Item 4. Does this assistance request require State, focal, Nome of App•oving Agency regional or other planning approval? Date Yes _X No Item S. Is the proposed project covered by an approved Check one: State r__1 comprehensive plan? Local Re,ionol IX -X- Yes No Location of plan North entrai Texas Airport System Plan Item 6. Witl thr, assistance requested serve a Federal Name of Federal installation inslcilation? Yes -x_ No Federal Population benefiting from Projsct Item 7. Will the assistance requested be on Federal fond Nome of Federal Installation or installation? Location of Federal Land _ -Yes _y_No Percent of Project Item 8. Will the assistance requested hove an impact or effect See instruction for additional information to be on the environment? provided. Yes X_ No Item 9. Number of: Will t5e assistance requested cause the displacement of Individual s Individuals families, businesses, or farms? Families Businesses Yes -X_ NO Forms Item 10. Is Were other related Federal assistance on this See instructions for additional information to be project previous, pending, or anticipated? provided. Yes x No FAAFerrn $100.100 16771 SUPERSEDES FAA FORM 6100.10 PAGES I TMRU 7 Page 2 DePARTMEN i' OF TRANSPORTATION • 0RAL AVIATION AOMiNISTRA110111 • o1AS NO. EaRVTEA PART II - SECTION B 11. SITES AND IMPROVEMENTS: Not required, Attached as exhibits Applicant intends to acquire the site through: Eminent domain, _Negotiated purchase. Olhermeans (specily) ee Part II, Sec. C. 12. TITLE OR OTHER INTEREST IN THE SITE IS OR WILL BE VESTED IN: X Applicant, Agency or institution operating the facility, Other (specify) 13. INDICATE WHETHER APPLICANVOPERATOR HAS: Fee simple title, Leaseholdintelest, -Other (specify) See Part 11, Sec. C. 14. IF APPLICANVOPERATOR HAS LEASEHOLD INTEREST, GIVE THE FOLLOWING INFORMATION: NA a. Length of lease or other estate interest and number of years to run b. Is lease renewable? Yes No e. Current appraised value of land S d. Annual Ienlal rate S 15. ATTACH AN OPINION FROM ACCEPTABLE TITLE COUNSEL DESCRIBING THE INTEREST APPL ICANVOPERATOR HAS IN THE SITE AND CERTIFYING THAT THE ESTATE OR INTEREST IS LEGAL AND VAL 17. NA 16, WHERE APPLICABLE, ATTACH SITE SURVEY, SOIL INVESTIGATION REPORTS AND COPIES OF LAND APPRAISALS. 11, WHERE APPLICABLE, ATTACH CERTIFICATION FROM ARCHITECT ON THE FEASIBILITY OF IMPROVING EXISTING SITE TOPOGRAPHY. NA 18. ATTACH PLOT PLAN. pp Fxhihi t "A11 attarhpd 19. CONSTRUCTION SCHEDULE ESTIMATES. X Not required, Being prepared, Attached as exhibits Percentage of completion of drawings and specifications at application date: Schematics : Preliminary Final 20. TARGET DATES FOR: Bid Advertisement Spring 1977 Contract Award Spring-1977 Construction Completion Spring 1977 Occupancy Spring 1977 21. DESCRIPTION OF FACILITY: Not required Attached as exhibits Drawings - Attach any drawings which will assist in describing the project, previously submitted Specifications - Atiach copies of completed OL41 ine fpW1icat1onS. (If drawings and specifications have not been fully completed, please attach copses or working drawings that have been completed.) 00019: ITEMS OR TNT! $MEET ARE SELF-EXPLANATORY{ TOt REPORE, NO IRSTROCTIORS ARE PROY10E0. l FAA form SIOD-100 1671) SLIPEASEOES CAA r^JRM $TOO- 0 PAGES I THRU 7 Pope 3 DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION DIMS NO. 04-RO209 PART II • SECTION C , The Sponsor hereby represents and certifies as follows: 1. Compatible )And Use.-The Sponsor has taken the following actions to assure compatible usage of land adjacent to or in the vicinity of the airport: Will adopt and enforce a height/hazard zoning ordinance. Zoned all airport property "Light Industrial" 2. Defaults.-The c nsor is not in default on any obligation to the United States or any agency of the United States Govern- ment relative to the development, operation, or maintenance of any airport, except as stated herewith: None 3. Possible Disabilities.-There are no facts or circumstances (including the existence of effective or proposed leases, we agreements or other legal instruments affecting use of the Airport or the existence of pending litigation or other legal proceedin which in reasonable probability might make it impossible for the Sponsor to carry out and complete the Project or carry out lie provisions of Part V of this Application, either by limiting its legal or financial ability or otherwise, except as follows: None 4: Land.-(a) The Sponsor holds the following properly interest in the fe lowing areas of land' which are to be developed or used as part of or in connection with the Airfiort, subject to the followin; exceptions, encumbrances, and adverse interests, all of which areas are identified on the aforementioned property map designated ,s Exhibit "A": Parcel 1- fee simple title, approved under ADAP '01 project. *State character of properly interest in each area and liai and identify for each aft erreplions, enrumbrunrer, and adverse interests of every kind and nalure, including liens, casements, leases, etc. The separate areas of fend nerd only be identified here by the area numbers shown on the properly reap. FAA Form 6100-100 14.761 Papa 3a DEPARUh ENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION oMe NO. 04•RO209 PART II • SECTION C (Continued) The Sponsor furtl.rr ratifies that the above is Lased on a title examination by a qualifiert atioruey or title company and that such attorney or Iitlc company has delermined that the Fporeor holds the above properly interests. (b) The Sponsor will acquire within a reasonable time, but in onv event prior to the start of any construction work under the Protct, the following pr jerty interest in the following areas of land* on which such construction work is to be performed, all of which arras are identihcil. on the aforementioned properly map desiemated a: Exhibit \ NA • (c) The Spons" will acquire within a reasonable time, and if feasible prior to the completion of all construction work u::der the Qroject, the following prop-rtv interest in the following areas of land* which are to he develolied or used as part of or in Connection with the Airport as it will be upon completion of the Project, ah of which areas are identified on the aforementioned property map designated as Exhibit "A": Parcel 2 fee simple, avigation easements and light lays easements Parcel 3 - fee simple, avigation easements and light lane easements Parcel C - Iniddle marker site - fee simple or easement (location to be determined) wcel D - outer marker site - fee simple or easement (location to be determined) Parcel 4 - fee simple Parcel 5 - avigatioit easement 5. Exelusive Rights.-There is no paint of an exclusive right for the conduct of any aeronautical activity at any airport owned or eoalrolled by the §ponaor except as follows: None 'State character o1 prnpertt' interest in each area and fist and identify fur each ah exceptions, enrambranres, and adrrrse interests of every kind any nofure, tnrludini, liens, casements, leases, efe. The separate areas of fan! need only be identified here by the area nambcro shown on the properly map. FAA roan sioo-ioo (A 761 Fap+ 3b DEPARTMENT OF TRANSPORTATION- FE AL AVIATION ADMINISTRATION aM6 NO. I0t.110111 PAR - BUDGET INFORMATION - CONS CT ION • SECTION A - GENERAL 1. Federal Oomestic Assistance Catalog No 20.102 2. Funclionll or Other Breakout - SECTION B - CALCULATION OF FEDERAL GRANT Use only revisions Tall Cod Classification Amoonl Latest Approrad Adjudmsnt Raluhad Amount ♦ or 1. Admi6stration expense $ $ S 2. Pre, iminary expense 2 500.00 3. Laodastruclufes, right-of-way _ 247,500.00 4. Architectural engineering basic fees S. Other architectural engineering fees 6. Project inspection fees 7. Land development _ 0 _ 8. Relocation Expenses 0 9, Wocation payments to Individuals and Susines,es _ 0 _ 10. Demolition and removal 11. Construction and project improvement 12. Equipment - 0 - 13. Miscellaneous 14. Total (Lints 1 through 13) 712,150.00 15. Estimated Income0f applicable) - 0 - 16. Net Project Amount (Line 14 minus 15) 712 150.00 17. Less: Ineligible Exclusions - 0 - 18. Add: Contingencies - 0 - 19. Total Project Amt. (Excluding Reh6h,,lion Grants) 719050 00 20. Federal Share requested of Line 19 640,935.00 21. Add:rehabililationGrants Requested {100 Percent) - 0 - 22. Total Federal grant requested (Lines 20 8 21) 640.935.00 23. Grantee share 35,608.00 24. Other shares (TAC Grant) 35 608.00 25. Tntalproject Wnes22,238.4) S S 5712+150.00 FAA Fo m SIDD-100 Is 731 SUPERSEDES FAA FORM 6100 .10 PAGE! 1 TNRU 7 Pore 4 60ARTMENT OF TRANSPORTATION- AL AVIATION ADMINISTRATION . oM• H SECTION C - EXCLUSIONS Cressirication Ineligible Fat Eecluded (tam Partrc lpm ion Contingency Provision 26 fl) (21 e• S f b. e. d. F. - g. Totals f S SECTION D - PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE I 27. Grantee Share S a. Securities D. Mortgages c. Appropriations (By Applicant) 35,608.00 d. Bonds e. Tax Levies f. Non Cash g. Other (Explain) h. TOTAL - Grantee share 28. Other Shares ' a. State 35 608.00 b. Other c. Total Other Shares 29. TOTAL $ 71,216.00 SECTION E - REMARKS For program narrative, see negative declaration. t PART IV PROGRAM NARRATIVE Alioch - See Instructions FAA Form S50D.10o 15-771 SUPERSEDES FAA FORM 5100.10 PAGES I THRU 7 Pogo S 111 . DEPARTMENT OF TRANSPORTATIONODERAIL AVIATION ADMINISTRATION • PART V ASSURANCES The applicant hereby assures and certifies that he will comply with the regulations, policies, guidelines and requirements, including Office of Management and Budget Circulars Nos. A-87, A-95, and A•102, as they relate to the application, acceptance and use of Federal funds for this federally-assisted project. Also, the applicant gives assurance and certifies with respect to the grant that: 1. It possesses legal authority to apply for the grant, and to conducting inspections to insure compliance with these finance and construct the proposed facilities; that a resci specifications by the contractor. Ilion, motion or similar action has been duly adopted or 9. 1 t will cause work on the project to be commenced with- passed as an official act of the applicant's governing body, in a reasonable time after receipt of notification from the authorizing the filing of the application, including all under. approving Federal agency that funds have been approved standings and assurances contained therein, and directing and that the project will be prosecuted to completion with and authorizing the person identified as the official repre- reasonable diligence. sentative of the applicant to act in connection with the 10. It will not dispose of or encumber its title or other application and to provide such additional information as may be required. interests in the site and facilities during the period of Fed- eral interest or while the Government holds bonds, which- 2. It will comply with the provisions of: Executive Order ever is the longer. 11296, relating to evaluation of flood hazards, and Execu• 11. It will comply with Title VI of the Civl' Rights Act of tW Order 11288, relating to the prevention, control, and abatement of water pollution. 1964 (P.L. 88.352) and in accordance with Title VI of that Act, no person in the United States shall, on the ground of 3. It will have sufficient funds availl.ble to meet the nun- race, color, or national origin, be excluded from , nrticipa- Federal share of the cost for coriAruction protects. Suffi• tion in, be denied the benefits of, or be otherwise subjected cient funds will be available when construction is com• to discrimination under any program or activity for which pleted to assure effective operation and maintenance of the the applicant receives Federal financial assistance and will facility for the purposes constructed. immediately take any measures necessary to effectuate this 4. It will obtain approval by the appropriate Federal agreement. If any real property or structure thereon is pro- agency of the final working drawings and specifications be- vided or improved with the aid of Federal financial assis• fore the project is advertised or placed on the market for tance extended to the Applicant, this assurance shall obli• bidding; that it will construct the project, or cause it to be gate the Applicant, or in the case of any tra tsfer of such constructed, to final completion in accordance with the property, any transferee, for the period during which the application and approved plans and specifications; that it real property or structure is used for a purpose for which will submit to the appropriate Federal agency for prior ap. the Federal financial assistance is extended or for another proval changes that alter the costs of the project, use of purpose involving the provision of similar services or bene• space, or functional layout; that it will not enter into a fits. eonstnrction contrac4s) for the project or undertake other 12. It will establish safeguards to prohibit employees from activities until the conditions of the construction grant pro• using their positions for a purpose that is or gives the ap• gram(s) have been met. pear:.nce of being motivated by a desire for private gain for 5. It will provide and maintain competent and adequate themselves or others, particular;y those with whom they architectural engineering supervision and Inspection at the have family, Iyisiness, or other ties. construction site to insure that the completed work con. 13. It will comply with the requirements of Title II and forms with the approved plans and specifications; that it Title III of the Uniform Relocat:on Assistance and Real will furnish progress reports and such other information as Pro; erty Acquisitions Act of 1970 (P,L. 91.646) which the Federal grantor agency may require. provides for fair and equitable treatment of persons dis• 6. It will operate and maintain the facility in accordance placed as a result of Federal and federally assisted pro- with the minimum standards as may be required or pre• grams. scribed by the applicable Federal, State and local agencies 14. It will comply with all requirements imposed by the for the maintenance and operation of such facilities. Federal grantor agency concerning special requirements of 7. It will give the grantor agency and the Comptroller Gen. law, program requirements, and other administrative re- eral through any authorized representative access to and the quirements approved in accordance with Office of Manage• right to examine all records, books, papers, or documents ment and Budget Circular No. A•102. related to the grant. 15. It will comply with the provisions of the Hatch Act 8. It wi I require the facility to be designed to comply with which limit the political activity of employees. the "American Standard Specifications for Mating Build. 16. It will comply with the minimum wage and maximum irtgs and Facilities Accessible to, and Usable b1, the Physi• hours provisions of .he Federal Fair Labor Standards Act, eafly Handicapped," Number A117.1.1951, as nodified (41 as they apply to rospital and educational institution em- CFA 101.17.703). The applicant will be responsible for ployees of State a id local governments. FAA Form 5100.100 16-731 SUPERSEDES FAA FoRS1 5100.10 PAGES 1 TNRV 7 Page6 DEPARTMENT OF TRANSPORTATION DERAIL AVIATION ADMINISTRATION e *Me No. sa-tsgaa SPONSOR ASSURANCES 17. These covenants shall become effective upon acceptance terms, and without unjust discrimination. In furtherance of any the Sponsotherp~,f, made r of an offer by the Federal drsthe Projectu r the covenant (but without limiting its general applicability a part of the Grant Agreement thus formed. These covenants and effect), the Sponsor apecifca ly covenants and egress: shall remain in full rorcc and effect throughout the useful a. That in its operation and the operation of all facilities life of the facilities developed under this Project, but in any on the Airport, neither it nor any person or organization event not to exceed twenty (20) years from the date of said occupying space or facilities thereon will discriminate acceptam a of an offer of Federal aid for the Project. 1lo v. against any person or class of persons by reason of race, ever, these limitations on the duration of the covenants do color, creed, or national origin to the use of any of the not apply to the covenant against exclusive rights, Any facilities provided for the public on the Airport. breach of these covenants on the part of the Sponsor may b. That in any agreement, contract, lease, or other ar. result in the suspension or termination of, or refusal to rao,gement under which a right or privilege at the Airport grant Federal assistance under, FAA administered programs, is granwc t to any person, firm, or conoration to conduct or such other action which may be necessary to enforce the or engag, in any aeronautical activity for furnishing rights of the United States under this agreement.. services to the public at the Airport, the Sponsor will in- sert and en:orce provisions requiring the contractor: (1) to furnish said service on a fair, equal, and not 18. The Sponsor will operate the Airport as such for the use unji.atly discriminatory basis to all users thereof, and benefit of the public. In furtherance of this covenant and (but without limiting its general applicability and effect), (2) to chs v! fair, reasonable and not unjustly dis- the Sponsor specifically agrees that it will keep the Airport criminafry prices for each unit or service; Pro. open to all types, kinds, and classes of aeronautical use on vided, That the contractor may be allowed to make fair and reasonable terms without discrimination between reasonable and nondiscriminatory discounts, re- such types, kinds, and classes. Provided; That the Sponsor bates, or other similar types of price reductions to may establish such fair, equal, and not unjustly discrimina. volume purthasers. tory conditions to be met by all users of the Airport as may c. That it will not exercise or grant any right or priv. be necessary for the safe and efficient operation of the Air. ilege which would operate to prevent any person, firm or tort; And Provided Further, That the Sponsor may pro- corporation operating aircraft on the Airport from per. bibit or limit any given type, kind, or class of aeronautical forming any services on its own aircraft with its own use of the Airport if such action is necessary for the safe employees (including, but not limited to maintenance and operation of the Airport or necessary to serve the civil avia- repair) that it may choose to perform. Ilion needs of the public. d. In the event the Sponsor itself exercises any of the rights and privileges referred to in subsection b, the serv- lees Involved will be provided on the same conditions as 19- The Sponsor- would apply to the furnishing of such services by con. a. Will not rant or tractors or concessionaires of the Sponsor under the pro- s permit any exclusive right for. visions of such subsection b. bidden by Section 308(a) of the Fecerai Aviation Act of 1958 (49 U.S.C. 1341(a)) at the Airport, or at any other 21. Nothing contained herein shall be construed to pro. airport now owned or controlled by it; hibit the granting or exercise of an exclusive right for the b. Agrees that, in furtherance of the policy of the FAA furnishing of nonaviation products and supplies or any serv- under this covenant, unless authorized by the Administra. ice of a nonseronautical nature or to obligate the Sponsor to tor, It will not, either directly or indirectly, grant or per. furnish any particular nonseronautical service at the Airport, rust any person, f, -m or corporation the exclusive right at the Airport, or a. any other airport now owned or con- 22. The Sponsor will operate and maintain in a sa:a and trolled b it, to conduct any aeronautical activities, in. serviceable condition the Airport and all facilities thereon eluding, but not limited to charter flights, pilot training, and connected therewith which are necessary to serve the aircraft rental and sightseeing, aerial photography, crop aeronautical users of the Airport other than facilities owned dusting, aerial advertising and surveying, air carrier op. or controlled by the United SPtates, and will not permit any erstions, aircraft aales and services, sale of aviation petro. activity thereon which would interfere with its use for air. teem products whether or not conducted in conjunction port purposes: Provided, That nothing contained herein with other aeronautical activity, repair and maintenance shall be construed to require that the Airport be operated of aircraft, sale of aircraft parts, and any other activities for aeronautical uses during temporary periods when snow, which because of their direct relationship to the operation flood, or other climatic conditions interfere with such opera- of aircraft can be regarded as an aeronautical activity. tion and maintenance; And Provided Further, That nothing e. Agrees that it will terminate any existing exclusiv- herein shall be construed as requiring the maintenance, re. right to engage in the sale of gasoline or oil, or both, pair. restoration or replncement of any structure or facility grantkd before July 17, 1952, at such an airport, at the which is substantially damaged or destroyed due to an act earliest renewal, cancellation, or expiration date applicable of Cod or other condition or circumstance boyond the con- to the agreement that established the exclusive right; and trol of the Sponsor, in furtherance of this covenant the Sponsor will have in effect at all times arrangements fort d. Agrees that it will terminate any other exclusive a. Operating the airport's aeronautical facilities when. right to conduct an aeronautical activity now'existing at required. such an airport 'before the grant of any assistance under ever the Airport am Airway Development Act. b. Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions, and 20- The Sponsor agrees that it will operate the Airport for c. Promptly notifying airmen of any condition affecting the use and benefit of the public, on fair and reasonable aeronautical use of the Airport. FAA Form 51CO-IOO114-761 Page 7 DePARTMENT OF TRANSPORTATION • F*AL AVIATION ADMINISTRATION • oMa sio. ac-nosos 23, 'Insofar As it is within its power and reasnnable, the (the total movements of government aircraft m-:!t!plicd by Sponsor will, either by the acquisition and retention of ease- rross certified weights of such aircraft) is in excess of. menu or other Interests in or rights for the use of land or five million pounds. s airspace or by the adoption and enforcement of zoning regu- Wiens, prevent the cunstructiun, erection, nltrration, or 27. Whenever so requested by the FAA, the Sponsor will growth of any structure, tree, or other object in the ap• furnish without cost to the Federal Government, for con. proach areas of the runways of the Airport, which would struction, operation, and maintenance of facilities for air constitute an obstruction to air navigation according to the tratile control activities, cr weather reporting activities and criteria or standards prescribed in Section 77.23• as applied communication activities related to air traffic control, such to Section 77.25, Part 77 of the Federal Aviation Rerula. areas of land or water, or estate therein, or rights in build. tions. In addition, the Sponsor will riot erect or permit the inns of the Sponsor as the FAA may consider necessary or erection of any permanent structure or facility which would desirable for construction at Federal expense of space or fa. Interfere materially with the use, operation, or future de• cilities for such purposes. The approximr.te amounts of areas velopment of the Airport, In any portion of a runway rip- and the nature of the property interests and-or rights so proach area in, wMch the Sponsor has acquired, or hereafter required will be set forth in the Grant Agreement relating acquires, property interests permitting it to so control the to the Project. Such areas or any portion thereof will be use made of the surface of the land. made available as provided herein within 4 months after receipt of written request from the FAA. 24. Insofar as it is within its power and reasorable, the 26, The airport operator or owner will maintain a fee and Sponsor will, either by the acquisition and retention of easements or other interests in or rental structure for the facilities and services being provided rights for the use of land the airport users which will make the Airport being re airspace by the adoption and enforceme zoning ing as possible under the circumstances existing at the Air- to or in the take igulanmmeadniiate on vicinity r oictf the the u Aiserpoofrt land d activities port, taking into account such factors As the volume of traffic th and purposes compatible with normal airport operations in. and economy of collection. eluding landing and takeoff of aircraft. 29, The Sponsor will furnish the FAA with such annual 25, The Sponsor will keep up to date at all times an airport or epeeist airport financial and operational reports as may layout plan of the Airport showing (I) the boundaries t the be reasonably requested. Such reports may be submitted on forms furnished by the FAA, or may be submitted in such Airport and all proposed additions thereto, together with manner as the Sponsor elects so long as the essential data the boundaries of all offsite areas owned or controlled by the are furnished. The Airport and all airport records and docu• S nsor for airport purposes, and proposed additians thereto: mend affecting the Airport, including deeds, leases, operation (2) the location and nature of all existing and proposed and use agreements, regulations, and other instruments, will airport facilities and structures (such as runways, taxiways, be made available for inspection and audit by the Secretary aprons, terminal buildings, hangars and roads), including all and the Comptroller General of the United States, or their proposed extensions and reductions of existing airport fa- duly authorized representatives, upon reasonable request. cilities; and (3) the location of all existing and propcse,e The Sponsor will furnish to the FAA or to the General Ac- nonavfation areas and of all existing improvements thereon, counting Office, upon request, a true copy of any such Such airport layout plan and each amendment, revision, or document. modification thereof, shall be subject to the approval of the FAA, which approval shall be evidenced by the signature of 30, All project accounts and records will be kept In ac. ■ duly authorized representative of the FAA on the face of cordance with a standard system of accounting if so pre- the airport layout plan. The Sponsor will not make or permit scribed by the Secretary. the making of any changes or alterations in the Airport or any of its facilities other than in conformity with the airport 1. If at any time it Is determined by the FAA that there layout plan as so approved by the FAA, if such changes or a any outstanding right or claim of right in or to the Airport alterations might adversely atTect the safety, utility, or roperty other than those set forth in Fart If, paragrnphs efficiency of the Airport. 4(a),4 (6). and 4(c), the existence of which creates an un. due risk of interference with the operation of the Airport or 26, All facilities of the Airport developed with Federal aid the performance of the covenants of this Part, the Sponsor and all those usable for tie landing and taking off of air. will acquire, extinguish, or modify such right or claim of craft will be available to the United States at all times, with. right in a manner acceptable to the FAA. out ctiarge, for use by government aircraft in common with other aircraft, except that if the use by government aircraft 32• The Sponsor will not enter into any transaction which Is substantial a reasonable share, proportional to such use, would operate to deprive it of any of the rights and powers of the cost oi operating and maintaining facilities so used, necessary to perform any or all of the covenants made may be charRed. Unless otherwise determine; by the FAA, herein, unless by such transaction the obligation to perform or oth wlu agreed to by the Sponsor and the using agency, all such covenants is assumed by another public agency found Substantial use of an airport by government aircraft wiP he by the FAA to be eligible under the Art and Regulations to considered to exist when operations of such aircraft are in assume such obligations and having the power, authority excess of those which, in the oyinion of the FAA, would and financial resources in carry out all such obligations. fit unduly Interfere with use of the landing area by other an arrangement is mode for management or operation of atlthorfzed aircraft, or during any calendar month that: the Airport by any agency or person other than the Sponsor or an employee of the Sponsor, the Sponsor will reserve a. Five (S) or more government aircraft are regularly sufficient rights and authority to Insure that the Airport will based at the airport or on land adjacent thereto; or be operated and maintained in accordance with the Act, the b. The total number of movements (counting each land- Regulations, and these covenants. Ing as a movement and each takrolT as a movement) of 33- Unless the context otherwise requires all terms used overnment aircraft is 300 or mare, or the gross accumu• in these covenants which are defined in tLe Act and the lative weight of government aircraft using the Airport Regulations shall have the meanings assigned to them therein. FAA Form 5100-100 t4-tsl (AMO 8/76) Pago 9 UNITED STATES FIRE INSURANCE COMPANY THE NORTH RIVER INSURANCE COMPANY ~p WESTCHESTER FIRE INSURANCE COMPANY INTERNATIONAL INSURANCE COMPANY CRUM d FORSTER INSURANCE COMPANIES CONTINUATION CERTIFICATE United States Fire Insurance Company (hereinafter called the Company) hereby continues in force: Bond No. 780016 in the sum of One Thousand and no/100 Dollars ($1,000,00) on behalf of Frauman Electric Company in favor of City of Denton, Texas for the extended term beginning December 28, 197.1 and ending on %K December 28, 1977 subject, however, to all the covenants and conditions of said bond. This Continuation Certificate is executed upon the express condition that the Company's liability under said Bond and this and all continuations thereof shall n,t be cumulative and shall in no event exceed the surn of IN WITNESS WHEREOF, the Company has caused this instrument to be signed by its officers proper for the purpose and its corporate seal to be hereto affixed this 21st day of September ig, 76 UNITED STATES FIRE INSURANCE COMPANY 1 Linda Gardners Attorney-in-ract FM.903.0.114 (10-72) ' POWER OF ATTORNEY UNITEDSTATLS FIRE INSURANCE COMPANY PRINCIPAL OFFICE, NEW YORK, N.Y. KNON'At L MEN BY'IHESE PRESENTS: That the UNITED STATES FIRE INSURANCE COMPANY a Cor. poration duly organized and existing under the laws of the Stare of New York, and having its administrative offices in the Township of Morris, New Jersey, has made, constituted and appointed, and does by these presents make, constitute and appoint Linda Gardner of Dallas, Texas its true and lawful Agent(s) and Attorney{s}in-Fact, with full power and authority hereby conferred in its name, place and stead, to execute, seat, acknowledge and deliver: Any and all bonds EXCEPT bonds on behalf of Independent Executors, Community Survivors, Community Guardians------------------------------------------- and to bind the Corporation thereby as fully and to the same extent as if such bonds had been duly executed and acknowledged by the regularly elected officers of the Corporation at its offices in Morris Township, New Jersey in their own proper persons. This Power of Attorney limits the act of those named therein to the bonds and undertakings specifically named therein, and they have no authority to bind the Company except in the manner and to the extent therein stated. This Power of Attorney revokes all previous , -)wers issued in behalf of the attorney(s)-in-fact named above, IN WITNESS WHEREOF the United States Fire Insurance Company has cauyd these pre ents to be signed and attested b its appropriate officers and its corporate seal hereunto affixed this- 9th _ day of - -JuY.. Attest: UNITED STATES FIRE INSURANCE COMPANY Assistant Secretary ice resi Richard A. Annese Harry F. Bott STATE OF NEW JERSEY) ss COUNTY OF MORRIS ) On this fth _ ___.-day of July - 1975 , before the subscriber, a duly qualified Notary Pubttc of the State of New Jersey, came the above-mentioned Vice President and Assistant Secretary of the United States Fire Insurance Company, to me personally known to be the efficers described in, and who executed the preceding instrument, and they acknowledged the execution of the same, and being by me duly sworn, deposed and said, that they are the officers of said Company aforesaid, and that the seal affixed to the preceding instrument Is the Corporate Seal of said Company, and the said Corporate Seal and their signatures as officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Company, IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my seal at the Township of Morris, the day and year first above written. (Signed) -mmoNY P. KOCH (Seaq jwARY PUBLIC OF HEW )ERSEY ~fpalolaaioaElt~rlt►Wf,b~1f1 ot, Public This Power of Attorney is granted pursuant to Article IV of the ByLaws of the UNITED STATES FIRE INSURANCE . COMPANY as now in full force and effect. ARTICLE IV Execution of Instruments. "17he Chairman of the Board, Vice-Chairman of the Board, President, or any Vice. President, in conjunction with the Secretary, or any Secretary, if more than one shall be appointed by the Board, or an Assistant Secretary; shall have power on behalf of the Corporation: (a) to execute, affix the corporate seal manually or by facsimile to, acknowledge, verify and deliver any contracts, obligations, instruments and documents whatsoever In connection with its business including, without limiting the foregoing, any bonds, guarantees, undertakings, recognizance s, powers of attorney or revocations of any powers of attorney, stipulations, policies of insurance, deeds, leases, mortgages, releases, satisfactions and agency agreements; i (b) to appoint, in writing, one or more persons for any or all of the purposes mentioned In the preceding paragraph (a), Including affixing the seal of the Corporation." This Power of Attorney is signed and sealed under and by the authority of Article III, Section 9 of the ByLawa of the kUNITED STATES FIRE INSURANCE COMPANY as now in fup force and effect. o ARTICLE 111 Section 9 Facsimile Signatures. "The signatvre of any officer authorized by the Corporation to sign any t bonds, guarantees, undertakings, recognizances, stipulations, powers of attorney or revocations of any powers of attorney and policies of insurance issued by the Corporation may be printed fecdmile, lithographed, or otherwise produced The S Corporation may continue to use for the purposes herein stated the facsimile signature of any person or persona who shall t have been such officer or officers of the Corporation, notwithstan4ing the fact that he may have ceased to be such at the time when such Instruments shall be issued." C n CERTIFICATE pp + ~1 State of New Jersey County of Morris 1. the undersigned, Assistant Secretary of the UNITED STATES FIRE INSURANCE COMPANY, DO HEREBY CERTIFY that the foregoing POWER OF ATTORNEY remains in full force and effect and has not been revoked and furthermore that the above quoted abstracts of Article IV and Article III, Section 9 of the ByI1ws of the Corporation are now In full force and effect. In Testimony Whereof, 1 have hereunto subscrib-LJ my 'name and affixed the corporate seal of the said Company, Ibis 21st day of September 1976 By Aswtanr Secretary Ernest E. Smith su. soa.o.rst Us•tsl `!'BG ~~orE j VOL 813 rncr 454 p q 'n n 9I , r ! Jri1. f ill ! I! !i ?II a., ~ III li l II ab I II q ~ ! I!I I! I ! i ~,l..._,tl.~ m '1 , m o .`o I I t I' 64 A.96-WARRANTY DEED-With Gm" Lnd Copontion AdmvWg=mu MARTIN Swkno r Ca. DOu THE STATE OF TEXAS, Know All Men By These Presents: County of.....DENTON VOL 813 PACE 452 DEED RECORD That DERBY REFINING COMPANY 23235 of the County of Denton , State of Texas for and in consideration of the sum of ---------TEN G NO/100 ($10.00----------------4)OLLARS, and other good and valuable ^_onsideration 1 to it inhandpaidby the City of Denton, Texas have Granted, Sold and Conveycd, and by these presents do Grant, Sell and Convey unto the said City Of Denton, Texas of the County of Denton , State of Texas all that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being part of the R. Beaumont Sur- vey, Abstract No. 31, and being part of Lot No. 10, Block 3, of -he Fry Addition, an addition to the City and County of Denton, and also being part of a tract of land as conveyed from Fred Harper, Jr, to Colorado Oil and Gas Corporation by deed dated December: 28, 1971, and recorded in Volume 636, Page 510 of the Deed Records of Denton County, Texas, and more particularly de4cribed as followr. BEGINNING-at the northwest corner of said tract, said point of beginning being the intersection of the east right of way line of Carroll Boulevard and the Douth right of way line of Henry Street; THENCE south 810 UP 46" east a distance of 24 feet to a point for a corner; THENCE south 470 201 51" west a distance of 32.91 feet to a point for a corner; THENCE north 10 05' 19" east a distance of 26 feet to the placa of begin- ning and containing 312 square feet of land, more or less. AND it is further stipulated that the City of Denton will relocate two area lights with their footings now located adjacent to said tract at no expense to the Derby Refining Cot-pany. r TO HAVR AND TO HOLD the above described premises, together with all and singular, the rights and appurtenances thereto in anywise belonging unto the said Derby Refining Company, its successors ttnd assigns forever; and it do hereby bind itself, its successors I, executors and administrators, to Warrant and Forever Defend all and singular the said premises unto the said City of Denton, Texas, its successors i *3ft and assigns, against every person whomsoever lawfully claiming, or to claim the acme, or any part thereof. Wittra,s our hand at Wichita, Kansas this 10th day of September ,A.D.1976 f ,,dour„ non, Wjtrteaxs'it Rcijixs LlruW~: ATS,T~; _ DERBY , FINING COMPANY :MJ......,~Y:~":i' 44roeoldcrit I ACKXOWLEDG16ENT THE STATE OF TEXAS, } f BEFORE .6 : the undersigned auWor:ty, COUNTY OF........... _ In and for Said County, Texas, on this day personally appeared........ _ known to me to be the person..___.....wbose name........... subscribed to the foregoing instrument, and acknowledged to me that be.._....... executed the same for 4`_• purposes and consideration therein t pressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This ...................day ef................... A.D. 10............ U. S.) Notary Pu'.. _.........................County. Tens My Commlasion Expires June__ 19.._..». ACKNOWLEDGMENT I THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF_......... _ r In and for said County, Texas, on this day perstnaliy a;,peared.......... known to me to be the person whose name subscribed to the foregoing I etsument, and acknowledged to me that ..._.._.he...._._.executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This day of................. (L S.) __..___._....W.. Notary Public _.....County, Team My Commission Expiry June 19...... WRPORATION ACKNOWLEDGMENT THE STATE OF KANs" BEFORE ME, the undersigned authority, COUNTY OF.._.S.edV1.Ck_...._._.._.,__ In and for said Count,, Kans on this day personally appeared .5.....IeI.,..Ii esBe}ir.._.... R;Esgjd eat..... known to me to be the person and officer whoa name is subscribed to the foregoing Instrument and acknowledged to me that the sane was the act of the said. ._..Dezby_R&fl ring... Cotap~uy..............._.... _ a corporstbn, and that he caecutcd the same u the act of such corporation for the purposes and comidelation therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE,, This........ 90t ..day of_._..»NoY._ . A.D. 19A.fi_. (LS.) VOL 813 FAu 453 ACKNOWLEDGMENT SedSw k i Connie L. Lauxman INCOMPLETE Notary Public.............. ...................County, Kansas My Commission Expires lP)M..May....a4 THE STATE; OF TEXAS, COUNTY OF...... _.w._...._...... County Clerk of the County Cosa of said County, do hereby certify that the foregoing instrument of writing dated on the ------......day of............ _ A.D. 10_.._, with Its CeMate of Authentication, was filed for record In my aMce on the.___._...........Aay of»..._.................... A.D. at and was duy recorded day . A.D. f0.... at ...............a'dock in the RecorIs of said County, In Val- um a_ _ r -1 _ , on WITNESS my bud and seal of the County Court of uld County, M my office io M .....the day and year 1ul abe" written. Clerk County Court..__.,_.... _.,.............__..County, Texas (L. 9.1 Sy _ Deputy. 35V 10A' i I E M'K ' ''tl of ~ I a 1, 101 as 8 LA Z ' r III ~ ~ ~ ~ ~ ~ ~ iI 4 Mort a9~nci. dSraroQ I e yid! p ' s tiW ON ~Pia,ka D~ rUe, 4 PiPlLGJS as k^P srw 41 /o plc sear! , r4J u ~rxa/ rryr~oW~n Ua, pal4u ko a eQ 'kart is.Qskr~j 4. ~ pus xo -~+u1 37~ ,u ►W, ( MEMORANDUM OF AGRi:EKENT TlY AND BETWEr:,N 'T'EXAS MUNICIPnI. POWER AGENCY AND BRAZOS ELE0971IC POWER COOI'1:RA'1'IvL, WHEREAS, Brazos Electric Power CooperaLive, Inc. ("Brazos") and the Cities of Bryan, Denton, Garland and Greenville, Texas, ("Cities") are the joint owners of that certain tract of land in Pant County, Texas, that is described in a deed in which they are the grantees dated May 23, 19730 recorded in Vol. 729, Page 749 of the hunt County, 'T'exas, Deed Records, together with the oil terminal which is located thereon, such real property and the improvements thereon being hereinafter referred to as the "Oil Terminal", an,'. WHEREAS, Brazos and the Cities, by and through lignite leases, options to lease and other instruments entered pursuant to or in contemplation of a Liynite Joint Ownership Agreement dated April 29 , 19U, the parties to which are Brazos and the Cities ("Grimes County Lignite Agreement"), have .icgUired jointly certain interests in real property in Grimes County, Texas, and the lignite located In and under such real property, in the name of Brazos Electric Power Cooperative, Inc, as Trustee for the Texas Municipal Power Pool, all of such interests in such real property and the lignite located in and under such real property being hereinafter referred to as the "Grimes County Lignite", and W1113REAS, the Texas Municipal Power' Agency ("Agency"), Brazos and Texas Power Pool, Inc. ("TPPI") entered an agreement dated. October 30,'1975, entitled "Preliminary Participation AgreemenL" ("Agreement") and the Agency and Brazos also enterrd a related ~ 1 ,J Via/ agreement entitled "Contract for Development of ruel Resources and Planning Electric Generation racillties" and TPPI and Brazos' entered a related agreement entitled "Contract for the Performance of Certain Services" ("Related Agreements"), and W1tEREAS, under the Agreement the Agency and Drazos were to be the joint owners of the project therein described ("Agreement Project") in the interests therein specified and TPPI was to be the project manager ("Project llanager"), and WHEREAS, the ]Agreement Project consists of a number of qub- projects ("Sub-Projects") more fully described in Section 6,3 of the Agreement, one of which was fuel development ("Bryan Lignite") for certain electric generating faci]ittes to be developed and constructed in or around Grimes County, Texas ("Bryan Lignite Generation Project"), and WHEREAS, at the time of the execution of the Agreement it was co,ttemplated that Brazos ultimately would acquire a greater percentage -interest in the Bryan Lignite and the Bryan Lignite Generation Project than the initial 3% interest that it acquired in the Agreement Project, and WHEREAS, tha Agency and Brazos desire to adjust and modify the interests in the 011 Terminal, the Grimes County Lignite and the Agreement Project; NOW, THLRErORE, in consideration of the premises and the mutual undertakings and obligations of the Agency and Brazos, Brazos and the Agency mutually agree as follows; -2- 1. Brazos shall assign, transfer and convey to the Agency, free and clear of any and all liens and en.und)rances except purchase money liens, the follawinq: (a) all. of Brazos' rights under the, Grimes County Lignite -Agreement, including any logs, cores, surveys, tests, report- and other information developed pursuant thereto,' (b) the undivided interest which Brazos has acquired in the Grimes County Lignite, (c) the undivided interest of Brazos in the Bryan lignite fuel development program and the other lignite fuel development program which are a part of the Agreement Project involving Van Zandt, Marion, Madison, Brazos, Grimes, Burleson, Fayette, Wood, Hopkins and Franklin Counties, Texas, including all logs, cores, survelv,• tests, report's and other information developed pursuant thereto, and all intereots in real property in Grimes County,lToxas, whether through ol)tions for lignite ),eases or for purchase of the fee title, lignite leases or purchases of the fee title or other items, including all of such interests in real property that have been acquired in the name of TKII or others as agent for Brazos and the Agency, (d) all of Brazos' rights in the Bryan Lignite Genoration Project, including any land acquired for a plant site, letters of iutont concerning turbines, all -1- studies in conRectior, therewith that have boon made pursuant to the Agreement, including engineering studies with respect to the turbine, and (e) all of Brazos' undivided interest in the oil Terminal. The Agency shall reimburse Brazos for capital contributions which Brazos has made for items (a), (b), (c) (d), and (e) above, in- cluding any such capital expenditures made out of Hie .15 milage charge which Brazos has been paying to TPPI. The Agency shall indemnify and hold Brazos harmless from any and all claims, suits and causes of action arising out of the acquisition by Brazos of items (a) through (d) above, including claims now asserted in the suit by Robert S. Grote against the Agency, TPPI, Brazos, et al pending in Grimes County, Texas. The Agency shall have the right to direct and conduct the defense of any such claim or suit against Brazos and Brazos shall be obligated to cooperate fully in t'ie defense of the claim or suit and to give immediate notice thereof to the Agency. 2. The Agency has not accepted Brazos' offer to the Agency to participate in the San Miguel Generation Project in the form in which it was presenL•ed and the Agency hereby recognizes and confirms that such offer is of no further force and effect. The Agency Agrees that for a period of ten years, it will noL ncquiro interests in lignite in LaSalle and WcLb Cotinties, Texas, withouL• the prior written consent of Brazos. 3. The option granted to Brazos in Sections 5.2 of the Agree- ment, as'limited by Section 3 of the AgreemenL•, and as confirmed in r. Irk the Confirmation of Agreement of even date herewith, shall be cancelled and terminated upon the assignment by Prazos to the Agency of the interests specified in Section 1 of this agreement and the assignment by the Agency to Brazos of the interests specified in Section 10 of this agracment, but in no event shall the term of such option extend beyond the term specified in the Agreement. 4. The Cities and Brazos have acquired certain rights in connection with a 106 ownership interest in Comanche Peak Steam Electric station (sometinies referred to as Comanche Peak Nuclear Plant). The Cities are entitled ro 626 of the 106 (which they may make available to the Agency) and lrazos is entitled to 386 of the 106 interest. one of the Sub-Projects under the Agreement covers an engineering study in connection with Comanche Peak Nuclear. Plant. Brazos shall be responsible for 366 of the expenditures which the Project Manager has made in connection .,'_th this study and the Agency shall be responsible for the other 626 thereof. The Agency and-Brazos agree to settle with each other on this basis. The Agency, Brazos and the cities shall all have access to and the night to use all of the information resuli-A ng from thin study. It is contemplated that the parties will negotiate with the present owners jointly for their interests in the Plant. 5. One of the Sub-Projects under the Agreement involved what is referred to in the Agreement as I'uol Studies. As it developed, the extent of this .Sub-Project was a study by PI'M Wagner, Brazos shall be.ras,)onalble for 406 of the expenditures that have been made or incurred by the Project Manager on this Sub-Project and the Agency shall be responsible for tha remaining 60t. The Agency and Brazos shall each have access to and the right to use the results of this study for its own purposes, and the Project Manager is not to pursue this Sub-Project- any further. 6. Fire of Lite other Sub-Projects under the Agreement are referred to in the Agreement as (a) Economic Dispatch, (b) Trans- mission Planning Studies, (c) Texas Interconnected System Studies, (d) Western Coal and (e) Cost of Service Studies. Brazos shall be responsible for 38 of the expenditures that have been made or incurred by the Project Manager on these Sub-Projects and the Agency shall be responsible for the remaining 978, except that, in the case of the Sub-Project referred to as Economic Dispatch, Brazos shall be responsible for 903 of the expenditures and the Agency 608. The Agency and Brazos shall each have access to the results of these Sub-Projects for its own purposes, and the Project Manager is not to pursue these Sub-Projects any further. Any Sub-Project under the Agreement t)!at is not specifically covered in other provisions of this agreement shall be owned and the capital expenditures that have been paid or incurred by the Project manager in connection therewith shall be allocated 973 to the Agency and 3t to Brazos. 7. One of Lite .Sub-Projects under the Agreement is referred to in-the Agreement as Interconnections with Private Utilities (sometimes referred to as the Oates Tic at Garland). Brazos shall transfer its intorost.in this interconnection to the Agency free and clear of any and all liens and encumbrances and the Agency shal'1 own this inter- connection facility in its entirety and be responsible for the completion of the construction thereof. Brazos shall be reimbursed by the Agency for any capital expenditures which it has mpde for this Sub-Project. Brazos and the Agency agree to enter good faith negotiations for an operating and maintenance contract in connection with this interconnection under the terms of which it will be dedicated as a Pool facility in accordance with the updated Pooling Agreement referred to in Section 11 hereof and, at a minimum, Brazos under this agreement will operate and maintain the tie breakers with Texas Power and Light Company and all relaying equipment associated there- with and the revenue meter with Texas Power and Light Company, one, to execute such a contract when negotiated. 8. One of the Sub-Projects under the Agreement- is referred to in the Agreement as the Microwave Communications System. Brazos is to construct, operate and maintain this microwave system under an ownership contract that is to be negotiated between Brazos and the 4 Agency. Brazos and the Aiiency agree to enter good faith negotiations for such conptract and to execute the same when negotiated. The capital expenditures in connection with this Sub-Project are to W apportioned between the Agency and Brazos on a mutually agreeable basis in a contract to be negotiated. One of the Sub-Projects under the Agreement is referred to in tho Agreement as the Olinger-Greenville Transco sion line. Brazos shall transfer to thu Agency its interest in this Sub- Project, including its interest in any personal and real property that has. been acquired in furtherance of said sub-Project, free and clear of any and all lienu and ineumbrances, antT the Agency shall own this transmission line in its entirety. Brazos shall be reimbursed by the Agency for any capital expenditures made for this Sub- Project. Brazos antl the Agency agree to e•iter c;ood fai.Lh negotiation.; for a contract- under the terms of which Brazos will cicsign, superviea the acquisiLion of right--of-way for and the construction of tile. transmission line, and operate.and maintain Lhe same after it is constructed; and to execute suci. a contract when negotiated. Brazos will use its best efforts and believes that it can have the transmis- sion line in operation by July 1, 1977. 10. Another Sub-Project under L-he Agreement is referred to in the Agreement as Village Bend Pumped Storage. The ownership of the Village Bend Pumped Storage Project and the capital expenditures that have been paid or incurred by the Project Manager I% connection with this Sub-Project shall be allocated 99% to Brazos and A to the Agency and Brazos shall reimburse the Agency to reflect such division. Brazos shall have full responsibility for the completion of the investigations and the feasibility study and the design, construc- tion and operation this project. In the event that the Agency chooses not to pay its proportionate share of any expenditure on behalf of the project and does not mike such payment, its ownership interest in the project will be reduced to a percentage that its capital contributions bears to the total capital expenditures for the project. 11. The Interchange Agreement ("Pooling Agreement") of September 23, 1963# as amended, hetween llrazos and the Citi.oy needs to be updated to meet current operating conclitioos and to cover tho changed Condi- tions which may result from this agreement. Brazos agrees, with the cooperation of the Cities, to negotiate in good faith to accomplish this. 12. Anything in this agreement Lo the contrary notwithstanding, the Agree,aant and Related AgrcemenL•s shall remain in force and effect in accordance with the terms thereof until the debt of the Agency as defined in Section 8.12 of the Agreement is paid off, cancelled or-refJnded. When the aforementioned debt of the Agency has been so paid off, cancelled or refunded, Brazos shall no lgpger be required to pay any expenses of the Project Manager thereafter incurred irrespective of Section 25 of the Agreement. 13. Brazos and the Agency shall be fully reimbursed for any portion of the operating funds advanced to TPPI under the contract entitled "Contract for the Performance of Certain Duties" between Brazos and TPPI and the contract entitled "Specifications of the Manner in Which Part of the Maintenance and Operating Expenses of tho Corporation Will be Paid by the Agency" between the Agency ardd TPPI which, as of September 30, 1976, remain unused and unneeded, such reimbursement to be in the saine proportion Lhat the Agency and Brazos have contributed such funds. Brazos and the Agency also shall be fully roimbursed for any contributions, '.oss depreciaL•ion, they have made to T11111 for furniLure, fixtures, e<iuipment or other personal property owncd by 'l'PP?, not otherwise accounted for in connection with a Sub-Project. Up for'poriods subsequent to September 30, 1976, Brazos should advance any further operating fund:l to TPPI under the aforementioned Contract for the Performance of Certain Duties, then such advances shall be reimbursed to Brazos. 14. To fully carry into effect the settlement provisions of this agreement Brazos and the Agency agree that an audit shall be made by Peat, Marwick 6 Mitchell of all records necessary to estab- lish the amounts to be reimbursed and paid hereunder. The cost of this audit shall be paid d's an operating expense of TPPI incurred prior to September 30, 1976. 15. The Agency and Brazoss mutually agree to proceed in goad faith to negotiate and execute documents that may be required to carry out the intentions of the parties as hei.ein set forth. All of the activities and transactions necessary to implement the terms and conditions of this agreement shall be performed by the party to this agreement which has the obligation to d,) perform in as expeditious a manner as is reasonably possible. Pending such implementation, the party which is to be the owner of the project oz facility in question may proceed with the project or facility as if stich implementation had taken place. Dated the day of September, 1976. BRA20S ELECTRIC POWER COOPERATIVE, INC. IIY : 19'a TEXAS MUNICIPAL, P014ER AGL•NCY ~6 ByI r5l ~~o l J t a 1 2626'7 AMNNDNI ,NT I'0 1'L 1;111'1' 1'0 APPROPRIATE Si':1TH 11'A'11'11 rC:1~21 `ACE417 APPLICATION NO. 1500-A PI'RMIT NO. 1706-A TYPE: Arrrendment Permitter City of Denton Address ]Municipal Building Ilerrlon, Pumas 76201 Received August 12, 1975 filed No~cmhcr 2.1, 1075 Uranlcd .1mw 22, 14176 l'ounly Il,-nt„n Watercourse h;lot fork Trinity River, Watcrshed: I•rinity Rher Pasin tributary of 't'rinity River WHEREAS, the Texas Water Rights Commission finds that jurisdiction of the application is established; and WIIFRLAS, a public hearing has been held and Specific finiings of fact and conclusions of law adopted, as required by Iaw; and WHEREAS, by contract dated November 10, 1062, City of Dallas and City of Denton agreed to jointly pursue construction of Aubrey Reservoir Project on I;lnr Fork Trinity ]liver; and WIIIs MAS, on June 4, 10641, the C'onmtission desigrralod City of 1)311:1.0 and City of Denton to be cooperating local sponsors for Aubrey Reservoir Projocl; and WHEREAS, Aubrey Reservoir Project contemplates irlcreasinl; the conserva- tion storage capacity of Lewisville I,ake by 162, 400 acre-feet under thu supervision of the U. S. Army Corps of Engineers; and W111:RI:AS, by permits of even date herewith, file Commission Iris authorized the impoundment of 790, 600 acre-feet of waler by City of 0:111nis and Cily ol• Dollf +n in Aubrey Lake to be built by the U. S. Army Corp-, of I;nl;inccrs .r r; { ,o I of Auhrcy Reservoir Project; arid MINMEAS, City of Denton has filed Application Nu. 1500-A for air amenrdnlent to its hermit No. 1706 to authorize impoundr3ent of au addilional 47,424 acre-feet of water In Lewisville Lake as conservation slorage, which rcpresents 26 of till, inereas0 In the conservation storage capacity contemplated by Aubrey Reservoir Project. NOW, THEREFORE, this amendment to Pormit No, 1706 to appi-oprialc ad•li- tional Slate water is issued to the C'ily Ili' Denton, Texas, stih,jccl to 111c frillowilig terms and conditions: 1, Il11POUND111EMT Permittee is authorized to maintain a reservoir and dam, constructed on Lim I ork 't'rinity ]liver by the 11. S. Army Corps of Engineer,,, mill to con;tinuously impound not to exceed 47, 424 acre-fret of water t,l 522. 0 feet above mean Sea level. TllV data is locaicd In ]Penton (Harry, I'l,xas. Station 149 t- 16.02 on the centerline of the clam is S ]85° 411' 1% !3,5311.27 feet front the N1t' corner of the ,1. Sutton Survey. :1b~1 r net Vo, I 1 SA, I)enton County, 'Texas. 2, USE Permittee is authorized to divert and 1190 not to exceed 47, 42.1 acre-feet of water per annum for municipal and domestic use. I of 1 3. I11VERSION 41021 FAiE418 (a) Point of Diversion: N 44" :30' 11`, 17. 000 fret front, thr Nll' corner Of the J. Sutton Sur Vey, AbStr.let No. 1156, ill DCntUn l'uunty, Pesos. (b) iUaximunl Diversion Rate: 100 efs (45, (JUO gpm), 4. TIME' L,IIIHWHONS Colt St ructiOil or inst;llkition of :rll worts lwrvvin urthoriv,ed or required shall be in accordance with Iflarrs approved by tire' ('onurtiSSion and Shall be curnmeaced within Iwo yoar5 ;111(1 comploled 11 ilhin ti c ve;u•S froilr date of issuance of this perrrtit tndess extended bF flit, ('orlrnrission 5. SPECIAL CONDCI•IONS J. (a) Permittee is authorized to serve mater to the towns of Corinth, Hickory Creel:, Shady Shores and the City of bake D;111as. (b) The priority of this hermit shall be the same as the priority of the City of Dallas' Application No. 3.1:3-C. Yermittee supplies water to cities and other public entities, and this permit is issued on the assumption ti'at lrornlittce hill conlintte the policies under which such service is provided. r r V? '1'lte rights granted by this permit arc in addition to the rights ttrarfted by d Permit No. 1706. 'i'bis permit is issued subject to all superior and Senior wales righhz ill lilt, 't'rinity River Basin. Pernitittee agrees to be bound by the terms, conditions and provisions containA-A herein and such agreement is a condition precedent to the granting of this permit. All other matters requested in the ,Ipplic,.1tion tivlrich nre not speeificollj' granted by this permit are denied, This permit is issued subject to the Rules of the 'l'ens", 11'11eU IStlsltls ('urtlmis- sion and to its right of continual supervision. • TI-AAS WA'I•I-Ai H1011 1"71 C'(1MMISSVIIN 1 t ~ r ; /toe it. Carroll, Cotnlltllssiuner J Date Issued: l ~l Scn nber 10 1976 1) arsey)3 [lalc3el~.~~p o:ns~ ;~qh0010 STATE OF TEXAS (SEAL) COUNTY OF TRAVIS i = ; 1, Mary Ann Hefff It>Ipp' Attest; We et, RI hts Commissf rr pQ }}thy ~ry(y ~F M 7LK1(q eafreSlE * i of an ~~lnstrU4fjien! rig i $s(mah[nYr `epdr~ of sak Commlaslon. r 1/. Given under my hand And th S...1 ft taile 11 1'ILLstlK° ~G Water WS Co Isslon this tM ay p181y /Af tl tlefrlCr, SC lCtary of""at, AD., 19 V Ms 14, net,, Secret ')nf3 • R w STATE OF rEW COUNTY OF COLLIN I hereby certify that this Instrument was filed on the date and time stamped here. o n by mte aan~d was 61y rccrdcd on they day of Yo~ ~umean13 ?6.1n the Qgtareco ©s of Co 1 n~Ccuntyon in the Y. . Texas, (D aaa, 1q, ww/ County Clerk Collin County, re, ~ a ~V < ti Cy-c#yt ~i rc [Tf h tT-~F'7171 n t z N Q K~ .ti N r,_ z c CA W N , 't~.Er 1 X s Si Pl;rt~irr rc) r\l'F'RI~PItU1 i I; 51'e1 !'I, 11`.17'1':I; vin 1359 FACE 408 12514 APPLICATION N0. 3528 111':ItNIIT N0. 331'? Scclion Vii, 121 1'ermittee : City of imutun, 'T'exas Address ll+uticilu,l llnilding; Ih•nt-u1, I'rxa:; 711201 Received : August 12, 197:1 Vilod Vv, lt,thrt ' 1. 1975 Granted : June 22, 197"0 C'ountics IAvtttul, Cooke and t;ravson Watercourse : Elm Fork 't'rinity I;iver, 1Valcrshctf: 1'riuily Iliver l;a,in tributary of 't'rinity River IVIII'sItLAS, the 'l'eas water Rights C•omtnissio n find-; (11,11 juri die lion of the application is established; and WHEREAS, a public hearing; IMS boon held and S1lccific finding. Of I'MA 011d cuflclnSiOnfl 01' law adopted, aS required by law; and 1Vllfr,REAS, by contract dalcd November 19, 1'162, City of Dallas, mid City of Denton agreed to jointly pursue cotuslruclion of Aubrey RrSel•\'nil• I'ro•jcci 011 1;1111 Fork 't'rinity River; and WIlls'IUMS, on June 4, 1969, the Commission dcsigiloterl C'ily of Dallas and City of Denton to be cooperating local sponsors for Aubrey Ilc.servoit• Project; and \VIWI LAS, Aubrey Reservolr Project contemplates the itttpoundtnent of 799, GUU acre-feet of water by City of Dallas and City of Denton in Auhrcy Lnkc to be built by the U. S. Army Corps of Elig;incers as part of ,ntt>rr-?' llosercoir Protect; and ; W111°,RI:AS, City of 1)cuton ho s filed Applicalion No. 35'81 for a permit to Impound 707; 893 acre-feet of water in Aubt•ey Lake, which represents 26":of the conservatfon Ftorage capacity contemplated by Aubrey Lake, Aubrey Fle.acrvoir Project. NOW, 'I''Ii;Ilkl,FOIU, this permit to appropriate State water i9 issued to 1110 City of Dc )tun, subject to tho following, lcrllw and condition: 1. IMPOUNDMENT Permttteo is authorized to maintain a reservoir and dam, to be con- atructed rn Him Fork 'T'rinity Elver, by the U. ,4. Army C'o; ps of I;n4i- neers, and to conlinuonAy Ina ound tint t, r xc•rcd 207, 896 acre-feet of water at 632, 5 feet above me-an sea level. 'I'll(, dam will bc7 located jn Denton County, Texaq, Station 93 + U9 on the ccntcrllne of the darn will he N 43" 291 W. 1!tifl feet from the Sr: corner of the 11arUta Langston Survey, ;1h~irarl No. 739, Denton County, Texas. 2, LIS> Permittee is authorized to divert .and tise not to exceed 2U70 !1114 acro- feet of water per annum fur muniripal and domostir list, by prrullttre's customers in Dentun County, 'T'eats. ~K 3. 1)I1'I•,I?SlUti (a) Point of Diversion; N 93° 211. 95' W, 1, 977. 67 h•et Il-uni the NI.: turner of the 111arlha [,ang"lort S+rrvey, Ah: tr•acl No. 7311, Denton County, Texas. (b) Aiaximum D1VC1'Si0 1l !talc: 815 c1's (3613, 1332 gpnc). 4. 'rims.: LIMI'TATMNS Construction or installation of all works herein .mthot•ized or required shall be in accordance with plnns approved by the Commission and shall be coromenceci within two yenvs and complcled wilhili h.e years from date of issuance of this permit unlc,s exlcndcd by lilt' Commission. 5. SPECIA1, C'C)NDI1'K).\S (a) permittee is authorized to rise the hod and hank. 411• the I:1111 fork Trinity (liver, to transport water, from Aubrey lake dutirn;treatil to Lewisville Lake. (b) Permitle,, is authorized to serve water to 111c towns nl' Corinth, [lickovy C'reck, shady Shores and the city of t,ala• Dallas. (c) '1111 priority of Ihis lwl-wit shall hr l1w sonic os the jwiorily of lilt, City of Dallas' Application No. 3527. Pet•mittee supplies water to cities and other public entities, and this permit is issued on the assumption that permittee will continue the policies under which such service is provided, This permit is issued subject to all superiot• and senior water Hglits in the 'T'rinity River Basin, Permittee agrees to be bound by the Toms, ccwulilion'; and provision, con- tair:ed herein and such agreement is a condition precedent to lite gi-anling of Ilds; permit. All other maltevs requested in the ;ipplicalion which arc (tot spcc•ifically granted by this permit are denied. 't'1118 permit is issued subject to 111e Itules or the Terms Wator• Itil,l,ts Conunis- stair and to its right of continual sl1p1Jt•V1Sio11, '1•I:\AS WA'I EH I31GIl'I'S C(IMMISSIC)N Joe fl, Carroll, Commissiimer Date Issued: / 1A~ 1 4yLy: i col September 1, 1070 Dorsey 11. f ll,rrd t +~nsit~K5lt~Isct STATE OF TE7fSlk, ~`y 1 COUNTY OF. TRAVtt (SEAL) I, Mary Ann NIr c+R~Q(os Ito rem- r , Water RI to co >ST a criiti}9 tlt Attest: Q 4 of en ml~u en pd)re2 c , e 0 Of said Commitsloh?y•• e. t" Y••4ui,,,, Ofven under my Il~f1VI Q a~'jr`6 Texae } ~ r Water ahle COlnmlfsloe kk tile.,"`c- day r` :L G . (c l s i~r t. Of Ala y nn Jlefner, Sect+tary MMY Hefner, sieoreta 7 or l ,5 M`4 c; trial 4un*3 V i W -i uc511 ID Wald 4u"3 vD r , J ra O C'n C ti 1 a ftPi zm 3 r~*rn ~Q33~f411ft~f4 Jftp Mp -Tj W -6 c~ N cJ ~I IV Amp 0It s w 1 u0 v'rp oo -1 r : 'Z34 Dadmfl! 0 fl!!I } lOv++l pknDO0 M 111A WLNuW tl :9 -.1 4 f, F. Z ll I Nmy" 1O ~v-q I O ILVIS J Iw I ~ i AME'NONIHNT'1'O PI,itmi,r 'rl) VO11359 PAGE40fi A1)PI;c)111jIA I; SPATE WATER 12513 APPLICATION NO. 1590-A PERMIT NO. 1706-A TYPE: .lnrcndmont Permillee City of Denton Address Municipal liirilding, Donlon. I'cxas 76201 Received August 12, 1975 Filed Nuvembrr 24, 1975 Gr^nted June 22, 1976 Comity Ucnton Watercourse NIni I ork 'T'rimly Iliver, Watcr-hcd: Trinil) Ili„'t• Itrsin tributary of I'rioil)• liivct' WIRNUI'AS, the Texas Waler Right" Commission find, that jurisdictiorr of the application is established; and WHEREAS, a public hearing has been hold and specific fiudiug.-; oi' fact and conclusions of law adopted, as required Iiy law; and WHI EAS, by contr:10 (Imed Novcmhcr 1!), 1116:',, Cil~ of }l,tlla ; ,11111 l'il* v r+l' Denton agveed to jointly pursue construcliun of Auhroy Reservoir i'rujc t ()It 1-:1111 Fork 'T'rinity Diver; and NVIINREAS, on June 4, 1969, the Commission designated Cily of Dallas and City of Denton to be cooperating local sponsors for Aubrey Reservoir Project; and WIIE:REM, Aubrey Reservoir Project contemplates increasing; the conserva- tion storage capacity of r,ewisvillc rake by 102, 400 acre-fcal undor the supervision of the U. S. Army Corps of lsn,gineers; and 1VIIEHE'AS, by pcrmils of corn date hcroMth, the Cotnmissiorr ha. authori; cd the Impoundment of 7951, GOO acre-feet of walul. b.)►C'ity of Dallas :uu1 C'ily of IJerttoal in Aubrey rake to be built by the U. S. Army Corps of I:ng;inccrs as {earl of Aubrey Reservoir Project; and WIII:RHAS, City of Denton has filed Application No. 15510-A for an amendment to its Permit No. 1706 to withori7,e Impoundment of on addilional 17.42.1 acrt. feet of water in Lewisville Lake as conservation storag o, which rc-prrscrrls 26";- of the lhivrvasv itr the conservation storage capacity contemplated by Aubrey Ieservoir I)roject. NOW, TIILRNV0lil;, this amendment to Permit No. 17UG to :tppropriale addi- tional State water is Issued to the City of D!rntou, 'T'exas, subject to the following; larms and conditions: 1. IMPOUNDMENT Perntlttee is authorized to ntainlain a rusrrcoir :urd (Rill, cou;strticicd till Elm Fork Trinity River by tire IT, S. Army C'urps of I:ngince.r :uni to continuously impound not to exceed 47, 424 ac•rc-feel of wake al 0 feet above mean sea level. 'T'he dam is luraled ire Donlon Cotuity, l'exas, Station 149 + 10. 02 on the centerline of the shun ix S 851 46' I% 8533.'27 feet from the NW corner of the J. Sutton Survey, Abstract yo. 1156, Denton County, 'T'exas. 2. US14 Permiltee Is authorized to d1voi-I and ttse not It, exceed 47, 121 acre fret of water per annum for municipal and domestic use. M 3. DIVEIt,SION (a) Point of Diversion: N 44° 30' W, 17, 000 feel from thr; NAY corner of the J. SuttOn Survey, Abstract No. trio, in Denton County, 'texas. (b) NlaxiMLIM Dtvcrsion Mato: 100 cfs (45,DUCd T;pnh). 4. TIME LIMITATIONS Construction or installation of all worhs hcl'eill autlxu'ized or required shall be in accordance with plans approved by the Comuhisshhn and 'hall be commenced Within two years and complclerd -vilhiu Iive years from date of issuance of this hermit unless extended 111N• the C'oonrhdssion. 5. SPECIAL COND111ONS (11) PC1'111itel' is authorized to soh vc gyrator to the low ns M c'orintli. Hickory Creek, Shady Shoves and the City of bake Dallas. {b) The priority of this permit shat: be the same as the priority of the City of Dallas' eXpplicalion No. 8,13-C. Permittee supplies water to cities and other public entities, tuud Ibis permit is issued on the assumption lhnt I. 'udter will colitinnr, the polieirs unrirr Mlic'lr such service is provided, The rights granted by this permit arc in addition to the rights granted by Permit No. 1706. This hermit is issued subject to all superior and senior water rights in the 't'rinity lliv.:r Basin. Permitlee agrees to be bound by the terms, conditions and provisions cohllained herein and such agreement is a condition precedent to the granting of this permit. All other matters requested in the application which are not specifically granted by this permit are denied. This permit is issued subject to the Mules of 111e 'I•exoti %vater liigws ('ommis- slon and 'o its right of continual supervision. TI-,NAS WATH'Ii It WITS t't)1IMP 51r)N ue li. ('m'oult, C•olluhhl.,siolter Unit Issued: September 1, 1076 Dorsey 3tj llardclhlan, Cot u 1 111"gioner (SEAL) STATE F TEXAS s COUNTY OF TRAVIS 1, Mary A n Hefnlr,.Shre of WINA ag. Attest: Wet)r RI his Ccmmis!o fat, re I tpet: ;fl(l, 1, Rt,~e pr~pj odpZ ~ ~ of en nrrstru ent ;hw- rj der t+<re r of sold Comisron. 1 v0 m s ~J s~•}' Glven ur my'Aend EWolter RI iommissto thZla~yv A n nerner, se rctarY ~1' ~'}s~tLx a:; a9 M" Nel to .Sear Y . vat 13 9 m.407 z i 1 t~ 7 STATE OF F[W M CUtATY OF GAAYSOd W W r P R~ ! 4"by 0944 that this insimmeM WAS rz filed on the dill and time stsmpld hear ' J e b~y dtea +s duty MOM on the Qom, '"Cep of Wo~ u~rt o att WWI Of "Voi. TWA Cv* . M1, AMENDMENT TO PERMIT 'iJ APPROPRIATE STATE WATER Qi9h~s 1~eco r 5 APPLICATION NO. 1590-A PERMIT NO. 1706-A TYPE: Amendment Permittee : City of Denton Address : Municipal Building 1.7660 Denton, Texas 76201 Received : August 12, 1975 Filed : November 24, 1975 Granted : June 22, !976 County : Denton Watercourse : Elm Fork Trinity River, Watershed: Trinity River Basin tributary of Trinity River V'HEREAS, the Texas Water Rights Commission finds that jurisdiction of the ?PPlication is established; and WHEREAS, a public hearing has been held and specific findings of fact and conclusions of law adopted, as required by law; and WHEREAS, by contract dated November 19, 1962, City of Dallas and City of Denton agreed to jointly pursue construction of Aubrey Reservoir Project on Elm Fork Trinity River; and WHEREAS, on June 4, 1969, the Commission designated City of Dallas and City of Denton to be cooperating local sponsors for Aubrey Reservoir F: oject; and WHEREAS, Aubrey Reservoir Project contemplates increasing the conserva- tion storage capacity of Lewisville Lake by 182, 400 acre-feet under the supervision of the U. S. Army Corps of Engineers; and WHEREAS, by permits of even date herewith, the Commission has authorized the impoundment of 799, 600 acre-feet of water by City of Dallas and City of Denton in Aubrey Lake to be built by the U. S. Army Corps of Engineers as part of Aubrey Reservoir Project; and WHEREAS, City of Denton has filed Application No. 1590-A for an amendment a to its Permit No. 1706 to authorize impoundment of an additional 47, 424 acre-feet of .'Water in Lewisville Lake as conservation storage, which represents 2616 of the Increase. in the ,conservation storage capacity contemplated by Aubrey Reservoir Project. NOW, THEREFORE, this amendment to Permit No. 1706 to appropriate aldt- tional Sta$e water is issued to the City of Denton, Texas, subject to the following ` - terms and conditions: s 1. IMPOUNDMENT Permittee is authorized to maintain a reservoir and dam, constructed on Elm,Fork Trinity River by the U. S. Army Corps of Engineers, and to continuously impound not to exceed 47, 424 acre-feet of water, a1 522. 0 1 , feet above mean sea level. The dam is located in Denton County, Texas. Station 149+ 16.02 on the centerline of the dam is S 856 46' E, 8538.27 y~ , feet fr6mm the NW corner o? the J. Sutton Survey, Abstract No, 1156, Denton County, Texas. 2. USE Permittee is authorized to divert and use not to exceed 47, 424 acre-feet of water per annum for municipal and domestic use VOL 1 of 2 ti MACE L t y 3. DIVERSION VCl 1 t'AGE 8 (a) Point of Diversion: N 44° 30' W, 17, 000 feet from the NW corner of the J. Sutton Survey, Abstract No. 1156, in Denton County, Texas. (b) Maximum Diversion Rate: 100 efs (45, 000 gpm), 4. TIME LIMITATIONS Construction or installation of all works herein authorized or required shall be in accordance with plans approved by the Commission and shall be commenced within two years and completed within five years from date of issuance of this permit unless extended by the Commission. 5. SPECIAL. CONDITIONS (a) Permittee is authorized to serve water to the towns of Corinth, Hickory Creek, Shady Shores and the City of Lake Dallas. (b) The priority of this permit shall be the same as the priority of the City of Dallas' Application No. 843-C. Permittee supplies water to cities and other public entities, and this permit is issued on the assumption that permittee will continue the policies under which such service is provided. The rights granted by this permit are in addition to the rights granted by Permit No. 1706. This permit is issued subject to all superior and senior water rights in the Trinity River Basin. Permittee agrees to be bound by the terms, conditions and provisions contained herein and such agreement is a condition precedent to the granting of this permit. All other matters requested in the application which are not specifically granted by this permit are denied. This permit,is issued subject to the Rules of the Texas Water Rights Commis- sion and to its right of continual supervision, TEXAS WATER RIGHTS COMMISSION oe R. Carroll, Commissioner Date Igaued: abet' 1 '1876 Dorsey. Hardeman, Commissioner A, ' • ~ Y . CJM vd S ~ ~ y II •1 I = IY ` e` glary 6 Kv4 T 10A' - I t. naw+b'x ~ ~ cu-*v ti ` ' BLS, A a~S to hutiw a ~dwe1 ut 4a aw RQuoaleu9 o pEad pw 063MO poa qaV o»i 4a6IJ e41 6Q IXA 01mar yet {galayl c4 z°M 901 a'u w, slid lull N. .61 Ri^9 5°M lu~wnil' 013 µn~ alll uo s ~Ial .4uno3 uolua9 VOL 10 31V1s VQ"'A ~9 AlN1199 %I Y' ft A, y Z r r , AK~ VOL 1 WE lO PERMIT TO APPROPRIATE STATE WATER vexes W(k'AeR, R ~L s Re ~o r~ s APPLICATION NO. 3528 PERMIT NO. 3312 YPE: Section 5.121 Permittee : City of Denton, Texas Address Municipal Building Denton, Texas 76201 Received ; Au just 12, 1975 1.7661 Filed : November 24, 1975 Granted June 22, 1976 Counties : Denton, Cooke and Grayson Watercourse : Elm Fork Trinity River, Watershed: Trinity River Basin tributary of Trinity River WHEREAS, the Texas Water Rights Commission finds that jurisdiction of the application is established; and WHEREAS, a public hearing has been held and specific findings of fact and conclusions of law adopted, as required by law; and WHEREAS, by contract dated November 19, 1962, City of Dallas and CRY of Denton agreed to jointly pursue construction of Aubrey Reservoir Project on Elm Fork Trinity River; and WHEREAS, on June 4, 1969, the Commission designated City of Dallas and City of Denton to be cooperating local sponsors for Aubrey Reservoir Project; and WHEREAS, Aubrey R^3ervoir Project contemplates the impoundment of 799, 600 acre-feet of water by City of Dallas and City of Denton in Aubrey Lake to be built by the U. S. Army Corps of F:igineers as part of Aubrey Reservoir Project; and WHEREAS, City of Denton has filed Application No. 3528 for a permit to impound 207, 898 acre;-feet of writer in Aubrey Lake, which represents 26% of the conservation storage capacity contemplated by Aubrey Lake, Aubrey Reservoir Project. NOW, THEREFORE, this permit to appropriate State water is issued to the City of Denton, Texas, subject to the following terms and conditions: 1, IMPOUNDMENT Permittee is`authorized to maintain a reservoir and dam, to be con- structed on Elm Fork Trinity River, by the U. S. Army Corps of Engi- neers, and to continuously impound not to exceed 207, 898 acre-feet of water at 832, b feet above meAn sea level. The dam will be located in Denton County, Texas, Station 93 + 00 on the centerline of the dam will be N439 291 W, 1978 t feet from the SE corner of the Martha Langston Survey, Abstract No, 738, Denton County, Texas.. Usk Permittee is authorized to divert and use not to exceed 207, 898 acre- feet of water per annum for municipal and domeatio use by permitteefs - customers In Denton County, Texabe 1, of 2 . 3. DIVERSION (a) Point of Diversion: N 43° 28. 85' W, 1, 977. 67 feet from the SE corner of the Martha Langston Survey, Abstract No. 739, Denton County, Texas. (b) Maximum Diversion Rate: 815 cfs (366, 832 gpm). 4. TIME LIMITATIONS Construction or installation of all works herein authorized or required shall be in accordance with plans approved by the Commission and shall be commenced within two years and completed within five years from date of Issuance of this permit unless extended by the Commission. 5. SPECIAL CONDITIONS (a) .Permittee is authorized to use the bed and banks of the.Eim Fork Trinity River to transport water from Aubrey Lake downstream to Lewisville Lake. (b) Permittee is authorized to serve water to the towns of Corinth, Hickory Creek, Shady Shores and the City of Lake Dallas. (c) The priority of this permit shall be the same as the priority of the City of Dallas' Application No. 3527. Permittee supplies water to cities and other public entities, and this permit is issued on the assumption that permittee will continue the policies under which such service is provided. Th's permit is issued subject to all superior and senior water rights in the Trinity River Basin. Permittee agrees to be bound by the terms, conditions and provisions con- tained herein and such agreement is a condition precedent to the granting of this permit, All other matters requested in the application which are not specifically granted by this permit are denied. This permit is issued subject to the Rules of the Texas Water Rights, Commis- sion and to its right of continual supervision. TEXAS WATER RIGHTS COMMISSION _ oe R. Carroll, Commissioner e .~F = Date Issued; / s Set 1976 Dorsey Hardeman, Commissioner NR . t>•,► va 1 Pic 11 Y r ~F 2 o12 :i f r.. v ~ a is A_ ~c {7 rOf~ Q 1rYV Wf1~ 6 d3s gL6~ o •{W ~yu0on q9 vu; W Ndw{1{ ywga~W A c9r's D~, {pu{ ~w nrtUl s 45 teVi IaN .1i U0 go, {{K 1f10J L'01{Od •)ky3l o1 rijn ur N15 %1%11 M~ ;9 E 7T (~4 y h ~ r V I OA I 1~ r . TEXAS WATER RIGHTS COMMISSIUN TO City OF DENTON, TEXAS A111,N1)III:NT TO PERMIT '1'() AI'PROPItIA'I'I; S'11 96VTE'll VOL 586 PACE 63 APPLICA11UN NO, 1590-A P1;li111 I' NO. 1706-A 1'1'1'';: lnwnllnu•nl 1'crrttiltee City of Denton Address : nitulicil:al Ruilding Denton, 1'exas 76201 Received August 12, 1975 filed : November 24, 1975 Grarrled Jlnie 22, 1976 Cc ten t' : Denton 1b'atcrcotn•:;^ H'Ini fork 't'rinity River, W[IterS110d! 1'rinilY River tributary of Trinity River WHEREAS, the Texas Watcr nights commission finds ll(at jurisdiction of ow application is established; and WIII'11NAS, a public Ilcat•ing has been held antl spvcil'ic fin(liot;.-; of kwl anti conclusions of law adopted, a.- rcyuired by law; and WIIERI;AS, by contract dated November Ili, 1962, City of D❑lhI and City of Denton agreed to jointly pursue construction of Aubrey Reservoir Project on Plitt Fork Trinity liiver; and WHE OAS, on June 4, 1969, the Cn11111lisSion dcsignalcd Cily of Dallas and City of Denton to be cooperating local sponsors for Aubrey llescrvoir Project; and WHE'R ;AS, Aubrey leservoir Project conloteplales ineruasint; the. consouvo- tion storage capacity of Lewisville fake by 182, 400 acre-feel umlrr Iht• -,uporvls-ion of tite U. S. Army Corps of Engineers; and WEll:111"AS, by permits of even dale heretsitl,, tl e Commission has autllnrized the impoundment of 799, 600 acre-feet of water by (,if,, )f mmos and ('ilv of Denton in Aubrey Lake to be built by the U. S. Army Corps of ISnginecrs as part of Aubrey Reservoir Project; and Will-INMAS, City of Denton Itay filed Application No. 1590.-A for on , niontlmrnl to'its Permit No. 1703 to arthorize ittrpoundrttent of ;ill addiliun,tl 17.424 ocrc fort of water In Lewisville Lake as conservation storage, which represents 213'') of the increase in the conservation storage capacity contemplated by Aubrey Reservoir Project. NOW, T11M IE 0112, this antendinvi t to Permit No, 1706 to appropriate addi- tional State water is issued to the ('ily of I)enton, 'l'uxas, sub,iecl to tile rollowilig terms and conditions: 1, 1111l)QUNDN1LN'l' Pernlittee is authorized to maintain a rescr:oir oud dam, cuiottrurled ou Min Fork 'i'rinily River by the U, S. Army Corps of I:nt~incor.+, rrlul to continuously impound not to exceed 47, 424 acre-Feet of water al 522. U feet above mean sea level. Tho dam is located In Trenton r onnty, I'eXas. Station 149 + 10, 02 on the centurlinc of till, dint is .5 itfi" 'Ili' 1;, 11538,'2 7 fret f`r'om the NW co tier of lilt' ,1. .Sultolt sower, Abet 1 nfwt No, 1 1.710, Denton County, '1'ex❑s, 2. USL heriniltee is atithorized to divert and use not to exceed 47, 42.1 acre-feet of water per anntlrtr for municipal alut dowostic Lime, ,s I i f,f VOL 586 PACE 64 s, r1lvlatsrON (Cl) Point Of Diversion: N 44° 30' 1V, 17,000 feet fruut the N'1' corn0r of the J. Sultoll Survey, Ahstl act No. 1156, iu Dl ,nlun Comity, I'0xa~. (b) Maximum Diversion lute: 100 cfs (45, UUO gpm), 4. TIME LIN111'A'TIONS Construction Or installitioll of all works herein authorized or required. Shall be in accordance with plans approved by the Commissiolt arid shall be commenced within two years and completed within five years faun dale of issuance of this permit unless exlcrdcd by the C'011111lissien, 5. SPECIM, CONDITIONS (a) P0l'tltitie0 is aut1l0ri•r.0d ti) serve ceutcr In the 10tcn..s of ('orintll, Ilickory Creel:, Shady Shores and the City of Lake Dallas. (b) 't'he priority of this permil shall be the same as the priority of the City of Dallas' Application No. £343-C. 13e1,111i(lec supplies water to cities and other public cnlitics, mid this perulil is issued on 1110 assumpti)n that 10rmillee will continue the p01icics undel' which such service is provided. The rights granted by this permit are in addition to Ole rights gvintod by Permit No. 1706. This permit is issued subject to 111 superior and senior water HgIlts in the 't'rinity River Misin, a Permittee agrees to be b0und by the leans, conditions and provisimis coninincil herein and such agreement is a Condplrou I+rcecd0ul to 1.110 gnutting of Illis pelvnit, All other matters requested in the applient loll which are not Specifically granted by this permit are denied. This permit is issued subjCCt to the Mules of fll0 Texas 4i'nle1- Ilif;llts (1Orllmiti- sion mid to its right of continmil. supervIsltm, TIsXAs WATI-11 i HIM ITS C'OMMISSM)N oe R. Carroll, C'ommf[s[oncr i llato Maur-d; (I , t 5 s Sc+ ttemUvl _I, 1Ji6 Dut Soy ltj llard~ ~fia/i, c"nltinifsSl++nt C I~G' STATE OF 11E11A5 1 COUNTY OF TRAVIS = r= t, Mary Ann Hefner, SScreta+y'Ote"Texd~ r. Attest; Wa r Rlohis Cemmist1o1F%,1dO hereby tertlfy,.thaC r ! 11 a trud•gnd'correct c of in lust Beat n fife "vi rrt aneat fk"o't of said COmmisslon. i 1,:I c; t Olven under my hand and the seal of t texas Water si is Co mlSSio INS the~/dSY of AA., 19 , n - Iary A it Ilefner, Se retary ary An efnef, S Secrets 2 Or 2 THE STATE OF TEXAS$CLLWtS CQtFICAIV COUNTY OF COOCE) 1, FItAM4 SC06A1N COrwy 1 .F 1 0 oboro1nd fcr.gotnq r • Ceanly Clerk, do tMyobx In YO L9 PAGE W,.. m0nf N k duty ngotd@d OF the ly me ~0cs.dr of COOKE COUFITI TEXAS. '•""•6,•r„•,.'.0 M4 my f, N.yh'j A D CAL OF OFF C this f6,,,day of .*~yJjTn 60Tnowllb, Tau, FAA IK •11 , C0 CIO k Ce0 Ci/YR ok~l ~ ~ fr T "die iSky w b3 0Sy ~ ~o TEXAS WATER RIGHTS COMMISSION TO--- CITY OF DENTON, TEXAS I'1?1311IT TO APPI Ill IA I'I'; S I'A I'I; WA "I'l:U VOL 586 PAGE 61 11596 APPLICATION NO. 3528 13I-:I311I'I' NO. 3312 TYPN: 5ecli4io 5.121 Permittee : City of Denton, Texas Addri.sa llnnicil,,,l I,trilding Denton, Tey,is 76201 Received : August 12, 1975 filed November 24, 1975 (;ranted • ,flute 22, 11976 Cottrttics llcltlon, ('uuk(' and t;ra~'son Watcreutrt'Se : Elm Fork Trinity River, Waterslted: Trinily River Basin tributary of 't'rinity River WIII ZEAS, the 't'estis Water Rights Colnntissiott finds That P11J.-tdiclion of thi, application is established; anti IMPREAS, a public hearing has been bold ;toil specific I'inilin s of foci ,111tl conclusions of law adopted, as required by law; and WIII;RtsAS, by contract dated November 17, 1!)62, C'ily of Dallas and Cily of Denton agreed to jointly pursue construction of Aubrey Reservoir Project on l:tm Ibrk 't'rinity River; and Wflt:lll:AS, on June 4, 1969, the commis.tiion dordj"11MI'd city of Millar and City of Ucnton to he cooperating luc•al spMI-401-s fur Au1)MY 1100 I'VOir ITO.it-L't; Will W IL1,11 ;AS, Aubrey Reservoir Pro,lt-rt contcmpht(- the impoundment of 799, GUO acre-feet of water by city of Dallas and City of Denton in Aubrey lake to be built by the U. S. tlrlny Corps of lsngineerrs as Dart of Aubl'Vy 110scn-volr Project; and W111:1111"A5, City of Denton has filyd Applicallon No, 352'1 t'or n p-i wit to impound 207, 896 acre-feet of wntrr in Aubrey which ro~trv-owws 21i of tho conservation storage capacity contemplalod by Aubrey Lako, Aiihrcy NeAvrvoir Project. NOW, T11HREh'OliE, this permit to appropriate State wale:' is issued to the City of 17entun, texas, subject to the, following t(rmy and conditiu,ls+. 1. lAli,OUNI?ML :T Purillitlec Is antllnrlZed to mairltoin a l'earl'Yoil' ;11111 41:1111, 11) IA' roil- strueted on I:lnl I ork Trinity Rtvrr, by the If, S. Army Corps of 1;11gi- neevs, and to carttirnunraly Impotind nut to rxceml 207, 1106 ocrv-R-of of water- at 632. 5 feet above mean lion level. The (Inm will hc- located in Denton County, 'T'exas. Station 03 l UO utt life ce itcrlim, of life darn will bo N 43' 211' W, 11178 feet from tine SP; corner of the Martha l.angslon Survey, Ab,,Irnrl No. 730, Denton County, Tvxrrst. 2. USE PCI'MitteC is aulhurlaed to (Iiv1-rt and tts e not to oxcor:d 2U7, 1;!10 ncrc- feet of water per annunt Pots mnnlch al and dolm'stle use by prrulIItee' 4 Customers in Uentoll County, 'vents. 1 ~i " 3. DIVE RS10N VOL 586 PAu 62 (a) Point of Diversion; N 43`' 211. 85' W, 1, !177.67 foot Palm i1w Sl curru>r of the niarlha Langston Sur v0,y, Abslrncl No. 7:111, Denton County, Texas. (b) ;llaXinurul Diversion 11ate; 815 cfs (3136, 8:12 qpm). 4. TRIP: LiNUTATIONS Construction or installation of all W01.1cs 1I0,rcirr :wtL.rl•ixcd or t•cquired shall be in accordance with plane approved by Cit, Commission and shall be coninieuccd wilhirl two yc;irs and comps;- ck! within tier voors from date of issuance of Ihis permit sadness extrrIJcd I+}' Ihc COW ltlltis ion. 5. SPECIAL CONDITIONS (a) Perolittee is authorized to trsc the bed and banks nl' the l;lm I'ork 'trinity liiver to transport water from Aubrey i,nko downstream to Lewisville Lake. (b) Permiltec is authorized to serve water to the towns of Corinlll, Hickory Creek, Shady S11010,a and tilt' City of LAW D,Wos. (c) The priority of this permit shall b0, the same as the priority of the . City of Dallas' Application No. 3527. Peralittee supvlics water to cities aril other public cntitics, and this permit is issued on the assumption that perillittee will ccnltimne the polivio-s undt'r which such service is provided. This IIet•mit is issued subject to 711 supe•ior and samosa. reeler rights it's the Trinity River Basin. Permittee agrees to be bound by the I0,r,ns, conditions and provisions con- tained herein and such agreement is a condition precedent to 1.110, granting of Ihts permit. All oilier matters rcyucsled ill the applic•alioll which at'-o not sl,k-cificaliy l;runl,'d by this pe, _ lit are denied. This permit is issued subject to the Rules of the 'T'exas Water Rights Colmills- sion and to its right of continual supervision, TEAS WA'rl-Ai Ii1C11l'I'S CO111IISSIt),`\' Joe I1. Carroll, C'o,nnli.siollor •.I 1. k ~1iI Data Issued: September I, 1070 Dol acy I>j. l1.,ldt~ih,in^ tYi inlikNlgrati StAtE OF rros 'r 1 courttr of TRAi!IS, (b`CAL~ 4 Mary Ann kefner, Secrefary of tlie:l weer al ht/ comM e1lQn, eo hereby cedify~ t~lr Atiest: l.A , I! a.Vue and cpge~t Cy of an Inatr ment n fite'M'per'tnahe t'jtkords of said Commisslon. Gwen under my hand and the seat of ,ft x i f 9~ t th texas Water RISK s Com sslo this the, AUI of r.day 76 ry ~a, tsa l11n y rYn lfehter, Seca ,t ry 1 r n Hefner, Seu y I " m"s CUTIFICAS T14E SPATE OF TEKASI OIN, County Ci•rk de t~an Me H~ COUNTY Of COpKfi ! 1' FR'~Nfi S 0, •nl wayrdaly neerd•d by polfor•9atu' i in VOL d • }AGE eF il• R•aardl at COOKE COUNT f.NEOxAFS~L Of WTIC~Il IM 6dnarrllla, Tax+a WITNfteY H A lf.. del C. I•rk unly. TaW GC~(• L~Y ` TfiL lk• •1 • ~I eanly a~•• FMN lY` , OapO'I G r l• ~ 71 00 :'j'. Z i t~ cal y 26268 nPP►lr)PIIrA'ri; srnri; ~,~~;~•rI,H APPLICATION NO. 3528 PF;HAII I' No. 3312 I'VIN:: 5c00111 o. 121 Perrnittee city of Denton, 'T'exas Address llunicilral Building Demon, Texas 76201 Received August 12, 1975 Filed No%ember 24, 1!175 (;ranted June 22, 11976 !'„untie:; Urulurr, Cooke ;unl Grovs„rr, Watercourse Elm Fork Trinity River, Watershed: I rinily Iltvcr liasirt tributary of 'T'rinity Itivcr• 5NIIERFAS, the 'T'exas Water flights corumi;;8inn t'Tnds that jurisdiction of thv application is eslablishccl; and WHERE'AS, a public hvarint; Kati Bern hrld and specific finding:: of foot ;rn1 conclusionS ul' law adopted, as required by lmv; and WHE''RE:AS, by contract dated November 10, inn, city of Dallas and City of Denton agreed to jointly pursue construction of Aubrey Reservoir Project Oil 1,1111 Fork Triuily lliver; and ANIINRE;AS, on ,iunc 4, 141611, the CcunnliSNiurr de8 ihn:rlud ('it)' oil' ltnllav and City of Denton to be covperating locat spow ors for Aubrvy Rusorvuir I1ro.it!0; nrrd WIIEs11NAS, Aubrey Reservoir Prujcci c0ntclnpJ;IW8 U1c iIII l:'rtrndlucnt of 7911, GUU acre-feet of water by city of Dallis and City of Denton in Aubrey l,al:c to be built by the U. S. Army Corlrs of Engineers as part of Aubrey Itesorvoir Project; and Will REsAS, City of Denton has filed Application No, 38211 fill a permit to Impound 207, 896 acre-foci of water Tn Aubrey Imko, which t-&,prur,rnt;a 261'~, of Ilrr conservation storage capacity contemplated by Aubrey Lake, Aubrvy ITesorvudr Project. NOW, T111;lW ORN, this permit to appropriate Stets water is issued to the city of Denton, Texas, subject to the following !emits and couditiuns: 1, IMPOUNDMENT Permitlec is aulhovized to Inalnl:rbra ro:;urvoir ,rnd dum, to he corl- Mructcd on lam i'ork 'T'rinity Itiver, by the U. S, 1rnr,y corps of l;ngi- teers, and to contlnuously iorpnnnd not to cxrrcd : 07. 890 ;ivrt,-I'vot tit' water it 632, 5 feet above mean sea level, The chin %%-tit bo located in Denton county, Texas. Station 03 E UO on the cenlerliuo. of the dale will bo N 4:t° 2111' 1N, 1'1111 feet from tine Sl, corner of the Martha 1,trngston 5trrvey, Abstract No. 730, Denton County, Tvxnm. 2. USE Permittee Is authorized to divert and use nut III uxrer:d 207, 1186 arro- feet or water licit annum for nrunlcipal and domoslir use by permille'r's customers In Denton Colony, Texas. 3. DIVFIISION VOL1021 PArf421 (a) Point of Diversion. N 4:1 211. 85' W, 1,'.177. 67 feet front the SI-: cornet' of the Alar•lha Langston Survoy, Abstract No. 739, Dolilon County, 'Texas. (b) Maximum Divevsiolt ]late: fllfi cfs (3 66, 8:32 gpm). 4. '1'I:1lls LIAII'1'ATIONS Construction ov installation of ;111 works heroilt anthorir,ed or r'equircd shall be in accordance with pl.,ms aplu•oved by the Commission and shall be commenced within two years and completed within five years from date of istouarce of this Ixrr aril unless exteo(Ic•d I)V the ('omutissloll. 5. SPEC'.\[, CONDITIONS (a) Permitl.:~e is authorized to use rile lWd and ball, of the I;lrtt Fork Trinity Rivet' to tvausporl watcr front Auht•cy I.aliv Cit 1VI1NIIva In to Lewisville Lake. (b) Permittee is authorized to serve wok,i- to the tomes of C'ortulh, Ifickor•y Creek, Shady Shores and the C'ily of Lake Millar:. (c) The priority of this permit shall be the saute as the priority of the City of Dallas' Application No. 3527. Pet•mittee supplies water to cities and other public Entities, and this poI.Iltit is issued on the assumption that perinittce will continuo, lilt' polivit's undEr which such service is provided, Cam! rhis i,crtttit is issued subject to all superior and senior water' rights iu the CV 'Trinity River Basin. o Permittee agrees to be bound by the tEt'ms, conditionti and provixions Cort- tained herein a, : such agreement is a condition precedent to thu granting of tais fU permit, C'S All other matters requested in the application which are not specifically, granted S.3 by this permit are denied. 'I'bis permit is issued subject to the Rules of the 'T'exas Water Rights Commis- sion and to its right of continual supervision. l'i \AS WA'1'h;R MG111'S C MIMISSION Joe It. Carroll, Commissioner I Date Issued: ~n\ 1tLo ~~teml cr 1, 1976 Dnt Sr. 1 #11;trtlt man ui~t ~~t~,• STATE OF TEXAS n ~'"1~'tt 4t COUNTY OF TRAVIS /{~a►~-•, (SEAL) I, Mary Ann Hefneas$ecr~~~ Najjer 7~t s Cominlsslorr, jfdi eb c Attest: vt'* 4k,tnk v)Icepti c`cof an tru nt off file Lrt•,p1rrwtrA• re;Or{~ of saki COmmlfslon. `1*1~//••. , „ , , Given under my hand and tRe ~e4 ofQr~ gxii Water Right Com ssion t Is thi e$ say 1 f l c L c of A.O., 19,~ft lltI ttn uertiev, y~ Seci Mary Mary Hefner, secret ry w STATE OF TEXAS COUNTY OF COLLIN I hereby certify that this Instrument was filed on the date and time stamped here. onbymeandwasduly recor recorded day of &t--A.D. t9.e6_in the Volume and pave as shown h aeon in the records of Colim County, Texas. w-1,4 'WSW Cn* auk Coro County, Tom f'V V T, wa A 1'fm H ~ txr~,. r on rn h.. f << ~ U s O C~ i r °AoAm cci nm 1> prrnWr. I y I + o A 3 n y N O G o C y o N N _ m CJ _ Cl) n w m n n 3 y~ n n N G~ j 3~ ~ ~ N c N ° i LTJ" or r A W n A 0 CL a 0 Rf ce z C, -4 z CL • ° D D C m O z x o ` n I 1~: I m 0 f r -4 r I ~ ~ D o S r a ~ f fie ti x 0 0 q $ Project No.; 5-48-0067-03 Airport Denton Municipal Location Denton, Texas RELOCATION AND LAND ACQUISITION ASSURANCES IMPLEMENTING THE UNIFOM RELOCATION ASSISTANCE AND LAND ACQUISITION POLICIES ACT OF 1970 1(A) Pursuant to Sections 210 and 305 of the Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970 (PL 91-646); Part 25, Regulations of the Secretary of Transportation, "Relocation Assistance and Land acquisition under Federal and Federally Assisted Programs" (49 CFR Part 25, 36 Fed. Reg. 9178); the Regulations; and other applicable provisions of law--the terms used in this paragraph to have the meanings assigned to them under such Act and regulations: 1. Sponsor will provide fair and reasonable relocation pay ments to displaced persons as required by Subparts E, F. and G of said Part 25; 2. Sponsor will provide relocation assistance programs for displaced persons offering the services described in Subpart D of said Part •25; 3. Sponsor will adequately inform the public of the relocation payments and services which will be available under Subparts D, E, F, and G of said Part 25; 4. Comparable replacement dwellings will be available,, or provided if necessary, within a reasonable period of time before any person is displaced; 5. Sponsor will fully comply with Subpart I of said Part 25; 6. Sponsor will adequately inform the public of the acquisi- tion policies, requirements, and payments which will apply to the project with respect to any acquisition of real property to which said Part 25 and this agreement apply; 7. When approval of the FAA is required before Sponsor may proceed with any phase of the Project and that phase will cause the " , displacement of any person Sponsor will prior to proceeding with that phase provide the FAA with written assurances satisfactory to the FAA that: (a) Based on a current survey and analysis of ava{lable replacement housing and in consideration of competing demands for that housing, comparable replacement dwellings will be available within a reasonable period of time prior to displacement, equal in number to the displaced persons who require them; and I i M The Sponsors relocation program is realistic and is adequate to provide orderly, timely, and efficient relocation of displaced individuals and families to decent, safe, and sanitary hous- ing available to persons without regard to race, color, religion, or national origin with minimum hardship to those affected. (B) With respect to every person who was displaced or from whom real property was acquired after 1 January 1971 and who would have been entitled to any payments or relocation assistance pursuant to the assurances in this agreement had this agreement been in effect at the time of such displacement or acquisition, Sponsor represents and under- takes as the case may be: (1) that such person has received or will receive all the payments and has timely been or will be timely afforded all the assistance and advantages that would have accrued to him under the provisions of this paragraph had he been displaced or the real property acquired or his entitlements as such tenant accrued subsequent to the date of this agreement; and (2) that Sponsor has timely performed or will timely perform all acts that would have been or would still be required of the sponsor had the assurances of this paragraph been appli- cable at thn. times identified in this paragraph. (C) Until and including 1 July 19729 the provisions of this paragraph, other than subparagraph l(A)(4), shall be applicable only to the extent that Sponsor is able to comply with them under applicable State.law; after 1 July 1972, such provisions shall be applicable in their entirety regardless of the extent to which Sponsor is able to comply with them under applicable State law. Subparagraph 1(A)(4) shall be applicable to all times under this agreement. (D) The obligation of the United States under this agreement to share in the allowable costs incurred by Sponsor under this-paragraph shall be subject to all the pertinent and applicable provisions, limi- tations, and conditions contained in the laws and regulations referred to in this paragraph. City of Denton (Sponsor) By 7l% -(7 T e C?ty Manager SPONSOR ASSURANCE TO ACCOMPANY PROJECT APPLICATION DATED September 9. 1976 FOR A GRANT OF FUNDS FOR THE DEVELOPMENT OR IMPROVEMENT OF THE f Denton Municipal Airport ~i The City of Denton (herein- after referred to as the "Sponsor") HERESY AGREES THAT as a condition to .receiving any Federal financial assistance from the Department of Trans- portation it will comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d, 42 U.S.C. 200Od-4 (hereinafter referred to as the "Act"), and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally- Assisted Programs of the Department of Transportation--Effectuation of Title VI of the Civil Rights Act of 1964 (hereinafter referred to as the "Regulations") and other pertinent directives, to the end that in ac- cordance with the Act, Regulations, and other pertinent directives, no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the bene- fits of, or be otherwise subjected to discrimination under any program or activity for which the sponsor receives Federal financial assistance from the Department of Transportation includiig the Federal Aviation Administration, and HEREBY GIVES ASSURANCE THAT it will promptly take any measures necessary to effectuate this agreement. This assurance is required by subsection 21.7(a)(1) of the Regulations, a copy of which is attached. More specifically and without limiting the above general assurance, the sponsor hereby gives the following specific assurances with respect to ADAP Project No. 5-48-0067-03 1. That the sponsor agrees that each "program" and each "facility" as defined in subsections 21.23(e) and 21.23(b) of the Regulations, will be (with regard to a "program") conducted, or will be (with regard to a "facility") operated in compliance with all requirements imposed by or pursuant to the Regulations. 2. That the sponsor shall insert the following notification in all solicitations for bids for work or material subject to the Regulations and made in connection witb ADAP Project No. 5-48-0067-03 and, in adapted form in all propo,als for negotiated agreements: The City of Denton in accordance with Title VI of the Civil Rights Act of 19641 78 Stat. 2529 42 U.S.C. 2000d to 2000d-4 and Title 490 Code of Federal Regulations, Department of Transpor- tation, Subtitle A, Office of the Secretary, Part 21, Page 1 Nondiscrimination in Federally-assisted programs of the Department of Transportation issued pursuant to such Act, hereby notifies all bidders that it will affirmatively insure that in any contract entered into pursuant to this advertisement, minority business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in considera- tion for an award. 3. That the sponsor shall insert the clauses of Attachment 1 of this assurance in every contract subject to the Act and the Regulations. 4. That where the sponsor receives Federal financial assistance to construct a facility, or part of a facility, the assurance shall extend to the entire facility and facilities operated in connection therewith. 5. That where the sponsor receives Federal financial assistance in the form, or for the acquisition of real property or an interest in reel property, the assurance shall extend to rights to space on, over, or under such property. 6. That the sponsor shall include the appropriate clauses set forth in Attachment 2 of this assurance, as a covenant running with the land, in any future deeds, leases, permits, licenses, and similar agreements entered into by the sponsor with other parties: (a) for the subsequent transfer of real property acquired or improved under the Airport Development Aid Program of the Federal Aviation Administration, and (b) for the construction or use of or access to space on, over, or under real property acquired, or improved under the said Airport Development Aid Program. a 7. That this assurance obligates the sponsor for the ;eriod during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property or interest therein or structures or improvements thereon, in watch case the assurance obligates the sponsor or any transferee for the longer of the following periods: (a) the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose in- volving the provision of similar services or benefits, or (b) the period during which the sponsor retains ownership or possession of the property. 8. The sponsor shall provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he delegates specific authority to give reasonable guarantee that it, other sponsors, subgrantees, contractors, sub- contractors, transferees, successors in interest, and other participants Page 2 ATTACHMENT 1 During the performance of this contract, the contractor, for itself, its assignees and successors in interest (hereinafter referred to as the "contractor") agrees as follows: 1. Compliance with Regulations. The contractor shall comply with the Regulations relative to nondiscrimination in Federally-assisted programs of the Department of Transportation (hereinafter, "DOT") Title 44, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of this contract. 2. Nondiscrimination. The contractor, with regard to the work performed by it during the contract, shall not discriminate on the grounds of race, color, or national origin in the selection and re- tention of subcontractors, including procurements of materials and leases of equipment. The contractor shall not participate either directly or indirectly iu the discrimination prohibited by section 21.5 of the Regulations, including employment practices when the con- tract covers a program set forth in Appendix S of the Regulations. 3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment. In all solicitations either by competitive bidding or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the contractor of the contractor's obligations under this -')ntract and the Regulations relative to nondiscrimination on the groundm of race, color, or national origin. 4. Information and Reports. The contractor shall provide all information and reports required by the Regulations or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of infoimation, and its facilities as may be determined by the sponsor or the Federal Aviation Administration to bm pertinent to ascertain compliance with such Regulations, orders, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish this information the contractor shall so certify to the sponsor or the Federal Aviation Administration as appropriate, and shall set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance. In the event of the contractor's noncompliance with the nodiscrimination provisions of this contract, the sponsor shall impose °-uch contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to-- a. withholding of payments to the contractor under the contract until the contractor complies, and/or b. cancellation, termination, or suspension of the contract, in whole or in part. 6. Incorporation of Provisions. the contractor shall include the provisions of paragraphs 1 through,5 in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations or directives issued pursuant thereto. The contractor shall take such action with respect to any subcontract or procurement as the sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompli%nce: Pro- vided, however, that, in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the contractor may request the sponsor to enter into such litigation to protect the interests of the sponsor and, in ad- dition, the contractor may request the United States to enter into such litigation to protect the interests of the United States. ATTACHMENT 1 Page 2 ATTACHMENT 2 The following clauses shall be included in all deeds, licenses, leases, permits, or similar instruments entered into by the city of Denton pursu?z+t to the provisions of Assurance 6(a). The (grantee, licensee, lessee, permittee, etc., as appropriate) for himself, his heirs, personal representatives, successors in interest, and assigns, as o part ci the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add "as a covenant running with the land") that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this (deed, license, lease, permit, etc.) for a purpose for which a Department of Transporta- tion program or activity is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permiMee, etc.) shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A. Office of the Secretary, Part 219 Nondiscrimination in Federally-assisted programs of the Department of Transportation-Effec- tuation of Title VI of the Civil Rights Act of 1964, and as said Regula- tions may be amended. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, _ rha city of nan:•nn shall have the right to terminate the (license, lease, permit, etc.) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (licenses, lease, permit, etc.) had never been made or issued. (Include in deeds.)* That in the event of breach of any of the above nondiscrimination covenants, the City of Denton shall have ti.e right to re-enter said lands and facilities thereon, and tht above described lands and facilities shall thereupon revert to and vest in and become the absolute property of the City of Denton and itt assigns. The following shall be included in all deeds, licenses, leases, permits, or similar agreements entered into by the City of Denton pursuant to the provisions of Assurance 6(b). The (grantee, licensee, lessee, permittee, etc., as appropriate) for himself, his personal representative,, successors in interest, and Page 1 assigns, as a part of the consideration hereof, does hereby covenant and Agree (in the case of deeds and leases add "as a covenant running with the land") that (1) to person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or .rtherwise be subjected to discrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 19649 and as said Regulations may be amended. (Include in licenses, leases, permits, etc.)* That in the event of breach of any 2f the above nondiscrimination covenants, the Cityof Denton shall have the right to terminate the (license, lease, permit, etc.) and to re-enter and repossess said lard and the facilities thereon, and hold the same as if said (license, lease, permit, etc.) had never been made or issued. (Include in deeds.)* That in the event of breach of any of the above nondiscrimination covenants, the city of Denton shall have the right to re-enter said land and facilities thereon, and the above described lands and facilities shall thereupon revert Mo and vest in and become the absolute property of the City of Denton and its assigns. r *Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. ATTACtXNT 2 - Page 2 of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Act, the Regulations, and this assurance. 9. The sponsor agrees that the United States has a right to seek judicial enforcement with regsrd to any matter arising under the Act, the Regulations, and this assurance. , THLS ASSURANCE is given in consideration of and for the purpose of ob- taining any and atl Federal grants, loans, contracts, property, dis- counts, or other 'federal financial assistance extended after the date hereof to the sponsor by the Department of Transportation under the Airport Development Aid Program of,the Federal Aviation Administration and is binding on it, contractors, subcontractors, transferees, suc- cessors in interest and other participants in the ADAP Project No. 5-48-0067-03 The person or persons whose signatures appear below are authorized to sign this assurance on behalf of the sponsor. DATED September 9~ 1976 City of Denton (Sponsor) by Tit1 City Manager Attachments 1 and 2 Part 21, Obi Regulations Page 3 .e RULES AND REGULATIONS Title 49-TWSPORTIITIOI( Appendls Activities to which this part §21.5 Discrimination prohibited. appl lea, Subtjda A-OfACe of the Setrelary Of Appendix B' Activities to whl,\ this Para Sasltes (7 1hWlen. on the person the United Transportation applies when a prtr,arr ofl;ecu•e grounds of race, or the Federal enw,cl•J aaetstance color, or natlon►1 origin be excluded I OST Docket No. I A I lstoprovldsemptoyrent from participation In, be denied the endls C'. Application of Part It to car- benefits of, or be otherwise subjected PART 21-NONDISCRIMINATION IN App ta•a Federal Finch Jet unietance of to discrimination under, any program to FEDERALLY-ASSISTED PROGRAMS the Department A Tnnrportattan which this part applies. OF THE DEPARTMENT OF TRANS- (bl SMIAc dLCerimin%tOry actions PORTATION-EFFECTUATION OF Atrrlmuvr: The provicotu of UL Part at prohibited: rsaued udder see. 603 of the Civil inghts Act ft; A recipient under any program to TITLE VI OF THE CIVIL RIGHTS ACT of IDe4 (47 B6 C. 300042-1). which t%Its part applies may not, directly OF 1964 t 71.1 Purpose. or through contractual or other ► rl:nge- The purpose of this amendment adding 9'he purpa a of this part is to effec- ments, on the grounds of race, color, or Part 71 to the Regulations of the Office tunte the provirlom of title VI of the national origin- of the Secretary of Traneporfatlon is W C1vJ ltlshta Act of 1964 thereafter •e- tell Deny a person any service, Anan- implement section 101 of the Civil Rights (erred W as the Act) to the end that no Clot aid, or other benefit provided under Act of 1964. person In the United States shall, on the the program; Section 001 of the Civil Rights Act o# grounds of race, color, or national ori- kill Provide any service, financial aid, 1904 forbids discrimination on the gin, be excluded from partici;,ation In, or other benefit to r. Person which is dlf- grounds of race, color, or national origin be denied the benents of, or Ire otherwise ferent, or V provided in A different man- under any program or activity that re- subjected to dlscrlminatlorl under any ner, from that provided to others under elves Federal Anariclal assistance. Sec- program or activity recelvlnJ Federal the program; tion 007 of the Act authorizes and d1- financial sasbialncefroht the Deportment (111) Subject a person to segregation recta each Federal department or agency of Transportation. or separate treatment in any matter that in empowered to assist any program related to tits receipt of any servlee, or aetivVy to Issue regulations 4mple- E21.3 APPIresaiuu of thlaPart. financial aid, or other benefit under the menting section 601. Accordingly, the fat This part applied tb any program program; Department ls adopting Part 71 to ac- for which Federal financial assistance Qv) &:slrlct a person in any way in eompllgh this le&]Vtve directive. Since to authorlxed under a law administered the enjoyment of any advantage or -this regulation will cover the subject for by the Department. including the privilege enjoyed by others recelving any the entire Department, Including its op- federally twisted programs and ectivl- service, financial aid, or other benert erating administrations, the applicability ties listed in Appendix A to this part. It under the program; of Part 9 of Title 16, Code of Federal Peg- also applies to money paid, property (v) Treat s person differently from ulations [Department or Coaulterce), to transferred. or other Federal financial others In determining whether he satls- the Department of Transportation to assistance extended under any such pro- flea any admission, enrollment, quota, hereby termlrated. The separate regu- gram after the effective date of this part eligibility, membership, or other require- latfona of the U.S. Coast Ouard (1J CFR Pursuant to an application approved be. ment or condition which persons must Pat 74) and the Federal Aviation Ad- fore that efftctlve date. This part does meet in order to be Provided any service, ministration (14 RFR Part 15) wdll be not apply for financial aid, or other benefit Provided canceled by separate actions of those (1) Any Federal financial assistance under the program; or organizations, by way of Insurance or guaranty (W) Deny it poison an opportunity to Since this amendment relates to gent contracts; participate In the Program Viroush the programe, notice and public procedures (7t Money paid, property transferred, Provision of services or otherwise or thereon are not required and It may bi or other assistance extended wider any afford him an opportunity W do so which madecf6ctivein less than So days. such program before the effective date U different from that afforded others In consideration of the foregoing, Sub- of this Dart, except where such assistance under the program, t101e A of Title 49 of the Cede of Federal was subject to the title VI regulations of (7) A recipient, In determining th- Retalatfons Is amended by adding a new any agency whose rerponelbllltles are typed of services, flnanclal aid, or other Part 91, As follows, effective June I6, now e s ercised by this Department; benefits, or facilities which will be pro. 11,10. (7) Any asslatance to any individual vlded under any such Program, or the This am nt is made under the au- who Is the ultimate beneficiary under class of person to whom, or the sltuatlkms 4bority, of 9Ctlon 007 of the Civil MAMA any such pr'Mram; or in which, such services, financial Met, Act of 1964 (43 ILIAC. 2000d-I) and the (4) Any employment practice, tin: •r of ter beneAG, or facilities WW be pro- 14" referred W In Appendix A. any such program, of any employer, e , ''id, t under any Such program, or the Pursuant to Motion 601 of the Civil ploymm:nt agency, or labor argandestl class of Persons to be afforded an oppar- I'll Act of 1964 e been approved d by 11, except to the extent described lunltir to Participate In any such pro- Pr s dent. has been approved by the 121.510. 9111m; may not, directly or through eon-uUllre edn The Gat that a program or activity Is ccriteria or MethodsroftadmiNrtrallon Lrnld W Washington, D.C., en June 10, not 11„ted In Appendix A W tills part which have the effect of subjecten, Ilet- 1070. shall not mean. If title VI of the Act Is sons to discrimination because Of Lteir JoNNA.Votti otherwise applicable, that Such progrant race, color, or national origin, or face • grcrrlario/E'raasPOrtatbfr, is not covered. Other programs under the effect of defeating or subatanUelly statutes now In force or hereinafter en- ImPalring aecomDliahment of the ob. If(fis i Pu:icitton LA. ~ acted may be added to Appendix A to lectives of the program with respect to ILA aAppltstrlYUlmuauan m probtwte glib)d. thbr part. Individuals of a particular race, rotor, (t 1 In any program receiving Federal or national origin. fit 'ra0d~ required, `W Assistance in the form, or for ':1 Oommppuaocaaveritta. f0f determining,the lc gt.lt Oivaduet of la•wtipfgatloaa. t acqulsltlal, of real proplrlJ or an tion of latUitiee. a a recipient or applicant ant '11.1J PMW am for effseu 14 eamPUaa e. lnlerest In rev` •..roperty, to the extent may not make selections with the pug- 91.17 aou and 1101104A. that rSuch Property AremIncluded am met dead or steer of excluding edits of, or to tr)m, 1119 Judicial review denying them the benefits off, or subject. gilt wisest oa Omer ngul .LlottA forma, and the program receiving that aeetance, ins them to dfsoriminaNon under der arty ltvatmK4$QS a. 'the DOndiecrlmlrati0n requirement of program to which this regulation applies, AIM Dedafuoaa this Pat shall extend to any facility on 041 grounds of rue, color, or national located wholly or in pat in that space, bruin; or with the purpose or 4 gt of /"Las MPAL RMIMI, VOL JJ, N0. I I6--THUMOAT, if Mg l0, 1 4fd RtjI1S AND uouiAnONS defrstlns or substantially Impairing the origin to the employment practices of (2) In the case where Yederai Man. anced,Dllahment of the objectives of the the recipient or other persons subject to clal assistance is provided in the form Act or this part, the regulation tends, on the grounds Of of a transfer of real property, structures, (t) As used in this section the stn- rue. color, or national origin, to exclude or improvements thereon, or Interest tees, financial aid. or other benefits pro. Individuals from partlelPadon in, to therein, from the Federal Government, vlded under a program receiving Federal deny them the benefits of, or to subJect the instrument effeetingor recording the financial assistance Include any service, them to dlacrlailnstion under any pro- transfer shall contain a covenant ru:v- Arivictal aid, or oU,er benefit provided gram to which Lila regulation applies, nine with the land Pssurhrg nondiscrim- In or through a facility provided with the prevl•r,s of aubpar►graph i10 of, inatlon for the period during which the the aid of Federal financial amtntar..ce. this P%ra(rrPph ►hali apply to the em- real property is used for a purpose for (S) The en urnerauon of specific forms p)oyment Oractle^,, of the recipient or which tl.e Federal financial aulstance is of prohibited divcrlmtnallon in Uua other persons subject to the resula Uon, extended or fur another purpose Involv- paragraph does not limit the gcro silty. to the extent necessary to assure equal- ing the pi'ovl5lon of similar servf:es or of the prohibition in paragraph (u of Sty of opportunlty to, and nondiscrlmina. benefits. Where no transfer of property Hies section. tu,y trea!ment of, beneficiaries. or Interest therein from the Federal Gov. Examples demonstrating the NP- ~ d) A rMpient mly not make a telec- erranent Is Involved, but property is ac- plication of the provisloa. of this section Von of a site or locatlon of a facility if qulred or Improved under a program of to certain programs of the Department Vie purpose of that selection, or its effect Federal fmancle' assistance, the reclp- of Transportatlon are contained in AP- when trade, Is to exclude Individuals lent shall agree to Include such cove. pendlx C of thJs part. 'from participation In, to deny them the mint In any subsequent transfer of such rr Thfa part dnes not orofdbit the benenta of, or to subject them to tile- property, When the property Is obtained eorMeratdon of race, colnr, or national crhnlnation under any program or ac- from the Federal Government, sualr origin if Inc Durpuac and effect are to thlty to which this rul, applies, on the eovenunt may also Include a condition remove or overcome the consequences of grounds of race, solo,, or national couPlyd with a right Lobe reservedby the prude" or impediments v ;:h have rt- ortg,n: or If the purpose is to, Jr Its effect Department to revert title to the prop- strlcted the n'allabillty of, or PartlclPa- when made will, sub.tantlallt impar the erty In the event of a breach of the cove- Lion In, the program or activity receiving ,kccomplishment of lie objcctives of this nant where, In the discretion of the Federal financial as_vlstance, on the part, Secretary, such a condition and right of grounds of race, color, or national ori reverter Is appropriate to the program Where previous discrirrinatery prac Uce 421.4 As,crancev r, quired• under which the real property is ob- or usage Lend,,, on the grounds of river. (a) General. (1) Every applicauon for termed and to the nature of the grant and color or national origin, to exclude indl- Federal financial as:lstonce to carry out the grantee. In such event If a trans. vidunls from participation In, to deny s program to which this part applies, feree of real property proposes to mort- them the benefits of, or to subject them except s program to which paragraph gate or otherwise encumber the real to discrimination under any program or ib) of this section q,phes, and every sp. property as security for financing con- "vily to which this part Applies, the pl'cation for Federal Mantel asslsrance structlon of new, or improvement of ex. applicant or recipient has an obllgetlon to provide a facility :.hall. a., a condiUon (sting, facilities to such property for to take reasonable action to remove or tr)%ts approval and the extension of any the purposes for which the property was overcome the consequences of the prior Federal financial assistance Purausnt transferred, the Secretary may agree, discriminatory practice or usage. And to to the application, contain or be accom• upon request of the transferee and if accomplish the purposes of the Act. panted by, an aasmance that the pro. necessary to accomplish such Arrant. (or Employment practices: gram willbe conducted or the facility op- Ing, and upon such conditions as he (1) Where a primary objective of . Prated In compliance with all require. deems appropriate, to subordinate such program of Federal 6nancfal asidstance ments imposed by or pursuant to this right of reversion to the lien of such to which "I Fait applies is to provide Part. Every procrarn of Federal finan• mortgage or other encumbrance. employment. a recipient or other party cial smistance shall require the aubmis- (b) Conti nufn g' State programs. Every subjtrt to this part shall not, directly or sion of such an amursnce. In the case application by a State or a State agency through contractual or other arrange- where the Federal financial aastatance to carry out a program involving con- ments, sullect a person to dlscrimins- is to provide or Is to the form of personal tinuine Federal inancial assistance to Lion on tike aroand of race, color, fir Property, or real property or Interest which this part applies (Including the national origin In ti,, employment Drat- therein or structures thereon, the assur- programs hxtrd In Appendix A to this ati under, osuch program oyment Wee- once shall ubllgate the recipient, Or, In part) shall as a condition to its approval eestdude or recruitment cludin re, tine case of a subsequent trarmfer, the and the extension of Any Federal flnsm- tru b ftASmgi Mlno, app suit , promotion, mks transferee, for the period d-Irlng which cial assistance pursuant to the applies- mring tng ter, dineg. teoboe de- the property Is used for ■ purpose for tion (1) contain or be accompanied by rates of pay or other forms of c mpensa- which the Federal nrnnelal assistance Is is statement that the program is for^ Von of ay era, selection f^,r training or extended or for snot her purpose Involv- In the case of a new program, will be) Von or benefits. use of isdut training and ins the provision of si(nller services or conducted In compliance with al3 re-&pprettic treatment of employees). Such recipient benefits, or for as hang as the reclplent qufrements imposed by or pursuant to aluU take at employee u t Leisure, retains ownership or possession of the this part and Iii provide or be accom. that sake aorta an employed, and em• property, whichever In longer. In all panted by provision for such meNads that a are treated during employment and other cases the sssurance Khali obligate of administration for the program as without rieffa e trd to their race, color. of the recipient for the perrad during which are found by fie Secretary to give without erfain. The it race, requirements color, apt Feileral financial assistahce Is extended reasonable guarantee that the applicant ' n plilicable ational to rigIn construction he employment un• to the program. In the :sse where the and all reclplen4 of Federal financial du any gulch program shall be those Assistance U sought (or the construction assistance under such program will com- derclfkd In or pursuant W Fart in se of a facility or pert of it facility, the as. Ply with all requirements imposed by or Executive Order 11218 or any Executive Iursmce dull in any event extend to the pursuant to this part. other which der 124es or entire facility and to facilities operated 121.9 Cnmplinnee Inforlnalion. ill) Federal MateLt It, -assistance t to In connection therewith. The Secretary programs under hers funded or nce shall specify the form of the foregoing (a) Cooperatfms and anlrfawce, The (stored by the Department woks sdmLn- have assurances for each program, and the Secretary shall to the fullest extent a ptimath objective the providing h ve extent to which like assurances will be practicable seek the cooperation of re- as of subgranlces, contractors and clptents In obtaining compliance with employment Include those get forth In suboontractora transferees, successors In this part ani shall provide assistance 'Appendix 8 to this part. Interest, ar d other participants In the and tuldance to reclplents to help them 111 When a prunary objective of the program. Any such assurance shall in- comply voluttarily with this part, Federal flnandal assistance is not to elude provisions which give the United (b) Compliance routs.. Each ii provide employment, but discrimination "tea it right to seek Us judicial lent shall keep such rcrwrde and submit an the gravads of race, color, or national enforcement, to this Secretary Umel,e, complete, and nOUAL aidij(ga. VOL 59 "M tti-raWSMa.rferre tt+, rare' RULES AND REGULATIONS accurate compliance reports at such Inform the recipient and the matter will (3) There has been an express Andins timer, and in such form and containing be resolved by informia means whenever on the record, after opportunity for hear. such information, u the Secretarv may possible. If It has be-:n determined that Ing, of a failure by the applicant or rc• determine to be necessary to enable :ilm the matter cannot )e resolved by in- ciplentto complywlthie requirement Im. to ascertain whether the recipient has formal means, action will be taken as posed by or pursuant to this part; compiled or Is complying with this Dart. provided for in 12113, (3) The action has been approved by In the case of any program under which (2) If An Investigation does not war- the Secretary pursuant to 131 , 17(e) ; and a primary recipient extends Federal rant action pursuant to subparagraph (e) The expiration of 00 day'3 after Anancial aaalstance to any other recip• (U of this paragraph the Secretery will the Secretary has filed with the commit. lent, such other recipient shall also sub- so Inform the recipient and the complain- tee of the House and the committeo of mit such comrllance reports to the ank it any, In writing. the Senate having leglstatlre Jurladic• primary recipient as may be necessary to (e) liitim(datory or retaliatory acts Uon over the program involved, a full enable the p•lmary reciplent to carry o•aY prohibitrd. No recipient or other per- written report of the clrcumstsncea and Its oblleadons under this part son shall intimidate, threaten, coerce, or the grounds for such action, Ici .cores to sources of information. diserimliime against any individual for Any action to suspend or terminate or tirh Each rcr aryS shall permit access b by y the purpose of Interfering wlth any flsh% to eluse to grant oto Con Llmhe Federal hours to to Secretary such y of du Its s brake, normal records. business - or privlleae secured by section 601 of the financial assistance shall be limited to , at- ' counts, and other sources of informs- Actor this part, or because he has made the particular political entity, or part non, and Its facilities as may be a complaint, testilled, assisted, or par- thereof, or other applicant or recipient Derttncnt to ascertain compliance with ticlp►ted to any manner In an Investigs- as to whom such s finding has been made re- Uon, pr.iteeding, or hearing under thfi and stfarl liFfiihlted In its effect to the this uhed par01 t. a rWhere here M any is Information the park The Identity of complainants shall partlcular program, or part thereof, In qposacssfon Of any other agency, exclusive re- lusive be kept confidential except to the extent which such noncompliance has been so tion, or person and this agency, instltu• necessary to curt' out the purposes of found. tlon, or person fails or refuses to furnhah this part. Including the conduct of any (d) Other means authorized by law. this information, the recipient shall to Investigation, hearing, or judicial pro. No action to effect compliance with title certify In Its report and shell set forth ceeding arising thereunder. VI of the Act by any other means au. what efforts It has made to obtain the 441.13 Procedure for elltmrfng eons. thorized by law shalt be taken by this Information. pli.,na. Department until- I1) The Secretary liasdeterm Lied that (d) Information to beneAciorfes and (a) General If there appears to he a compliance cannot be secured by pnrilN.paers. Each recipient shall make failure or threatened failure to comply voluntary means: available to pirtirlpants, beneficiaries, wM this part, and If the noncompliance (2) The recipient or other person has and other interested persons such In- or threatened noncompliance cannot be been notified of Its failure W comply formation Tecarding the provisions of corrected by Informal me ens, compl lance and of the action to be taken to this port and Its applicability to the with this part maybe effected by the sus- effect campllanee; and program under which the recipient re- pension or termination of or refusal to (3) The expiration of At least 10 days eeives Federal Aranclal assistance, and grant or to continue Federal financial from the mailing of such notice tr the make such Information available to unlstance or by tiny other means au• recipient or other person. During this then. In such manner, As the Secretary thorieed by law. Such other means may period of at least 10 days, additional finds necessary to apprise such penont Include, but are not limited to, (t) t efforts shall be made to persuade the of the protections against dlscrimina• reference to Uie Department of 4uspce recipient or other person to comply, with Sion assured them by the Act and this with arecommendation a,atappropriate theregufatlonandtoLake auchcorrecpve part, proceedings be brought to enforce any action as maybe appropriate, E 21.11 f:emdurt or Inve,11401l0n.. rlghtA of theUnitedStstes under any law 1 21,15 Ilearlnrk fat Periodic compliance reviews. The, of the United States Uncluding other (a) ixnff pees of the Act), or any assurance or pDo• y for hearing. When. Secretory shall from time to time re• other ctractual undertaking, and (2) ever An opportunity for a hearing is view '8epractices of recipients to deter- any aponplicable proccedVng under State required by I21.13(a), reasonable notice mine whether they are complying with, or local law. shall be given by registered or certified this part. (b) Noneompflance with 121.1. If an mail, return receipt requested, to the (b1 Complaints. Any person who be- appllcaid falls or refuses to furnish an affected applicant or recipient. This no. Sieves himaclf or any specific class of assurance required under 1 211 or other- tice shall advise the applicant or re- persons N to subjected to disc rtminstion wise fall or rcfusea to comply with a re- cipient of the action proposed to be prohibited by this part may by himself quirement Imposed by or pursuant to taken, the specific provision under which or by a representative file with the See- that section, Federal financial assistance the proposed action against It Is to be rotary a wrlttepc6mplaint.'A complaint may be refused In accordance with the taken, and the matters of fact or law must be filed not later then 90 days after procedures or paragraph (t) of this see. asserted as the barb for th61 action, and the date of the allared discrimination, tlon. The Department shall not be re- either ill fix • date not Ito than 20 unless the time for filing Is extended by quired to provi It aaalst t'Lli In such a days niter the date of such notkt within the Secretary, case during the tendency of the adminis• which the applicant or recipient may • Yl lxurrffpttfona. The Secretary will trative pweell-igs under such para. request of the Secretary Writ the matter .i is a prompt Investigation whenever graph, Ilowenr, subject W 121.21, the be scheduled for hearing or (2) advise a impliance review, report, eompiglnt, Deparment shall continue assistance the applicant or reciplent thAt the matter or any other Information indicates a during ilic pemiency of such proceedings In question has been set down for lies; Possible Ir. we to tom Ina at a stated place and time. The time pU with this part where ,uch o an apIa due and Day and place so Axed shall be reswnsble The laves Patiun wI'I lr.,tude, where able pursuant t to an aDptleapon approved and shalt be subject to change for cause. appropriate, A review of the pertinent pi lot to the effect lve date of this part. The complainant, It any, shall be advised Practice$ and policies of the recipient, (c) Tominclian 4 or fel"fal to Vital 01 the time rind place of the hesring. An the circumstances under which the poe• or to Conlinv: Federal financial tariff. applicant or recipient may waive a tlblo noncompliance with this part oc- once. N i order suspending, terminating, hearing and submit written Information cum.. end other factors relevant to a or refuring to grant or continue Federal and argument for the record. The failure d!herminAtidn As to whether the recip- financial nssistance shall become effet- of an applicant or recipient to request .Ant has failed to comply with this part Live until- a Noting under this paragraph or to tdl Jtesotul(on of matters. Ill u an (1) The Secretary runs adrlaed the ap- ap, sar at a hearing for which a date tnvestlgation punu.+nt to paragraph (e) pltunt or recipient of his failure to com- has been set shall be deemed to be a of this aecpon Indicates a failure to eom• ply and has determined that compliance waiver of the right to it hearing under ply with Shill Part the Secretary will to cannot bit secured by voluntary meats: section 1102 of the Act and 121.12 (a) and nb11At I1011tes, VOL es, NO. Ili--MISCIAT, JVNg 11, ltle l~.. 1 Rules AND RIOULAT1ONS eoneent to the making of a decision on 121.17 Dcr{stocis and aottcrC conditions, and other Provisions as are ' the basis of such Information as ts' consistent with and will efectuate the available. (a) Procedari on decisions by heart%# purposes of the Act and this part, Indud- (b) rime and pfaca of hearing. Hear. translator. II the hearing bi held by a Ing provisions designed to assure that no ings shall be held at the o2cee of the hearlni exarlilner, the hearing eaamlmse Federal financial avlstanee will there- Department in Washington, D.C., at s. shall either make an Initial decision, If so after be extended under such programs time fixed by the Secretary unless he authortrcd, or certify the entire record to the applicant or recipient determined determines that the convenience of the including his recommended findings and by such decision to be In default to Its applicant or recipient or of the Depart. proposed dcc Won to The Secretary for ot performance of An assurance given by it etent requires that another place be final decttion, and a copy of such InItW pursuant to this part, or to have oAier• selected. Hearings shall be held before decision or eertlfleation Khali be mailed wise filled to comply with this hart, tht Secretary. or At his discretion, before to the applicant or n ciplent. LYhere the unless and uutll It corrects Its nonrom- A hearing examiner appointed. In ae• Initial decision is mode by the heifring pllance and satisfies the Secretary that cordanc: with section 3105 of title 5, examiner the Applieai it or recipient 1Innay. It will fully comply with this part. United 8o;res Code, or detailed under within 30 days after t he malling of such (g) Post termination proceedings. (1) section 3344 of title 5, United States notice of 'Initial decision, file with the An applicant or recipient adversely At. Code. r&cretary his exceptions to the Initial fected by an order Issued under para. (e) Rip`t to counsel. !n all proceed. decision, with his reasons therefor. In graph (f) of this sectlonshall be restored Jingo under this section, the applicant or' the absence of exceptions, the Secretary to full eligibility toreceive Federal Anon. recipient and the Departmett shall have may, on his own motion, within 43 days clal assistance If it satisfies the terms the right to le representedIt /counsel. After the Initial dectslon, serve on the and conditions of that order for such (d) Procedures, evidence and record. applicant or recipient a notice that he eligibility or If it brings Itself Into eom• (1) The hearing, decision, and any ad- will review the decision. Upon the filing pliance with this part and provides rea- mtnlstrattve review thereof shall be con- of such exceptions or of notice of review, unable aa7ur ince that it will fully ducted In conformity adth sections 551 the Secretary shall review the'-itial de- comply rill this part. through 357 of title 5, United States cl'lon and Issue his Olin d"Won thereon r2) Any applicant or recipient ad- Code. and In accordance'wlth such rules Including the reasons Therefor. In the all- verseIv a4ceted by an order entered pur- of procedure as are proper rend not in. Rance of either excelp'wns or a notice of euant to mragraph of of this section consistent with this sectleno relating to review the Initial decision shall, subject may at any time request the Secretary the conduct of the heating, living of to paragraph cci of this section, consti- to restore fully its elieibility to receive notices Subsequent to those provided for tute the final deeLston or the Secretary. Federal financial asslatance, Any such In paragraph (a) of this section, taking (b) Decisions on record or review by request shall be supported by Informa- or testimony, exhibits arguments and the Secretary. Wherever a reeord is car. tlon showing that the applicant or briefs, requests for fi'kdings, and other, tifled to the Secretary for decision or he recipient has met the requirements of tainted maters, Sot'( the Department rrvlewa the deelsion or a Noting exam. subparagraph (1) of this paragraph. It and the applicant o: recipient shall be lner pursuant to paragraph ra) of this the Secretary deernlnes that those re. entitled to lotrodu,e all relevant evi- section, or whenever ilia Secretary con. clulrements have been satisfied, he shall CencL on the issues sd stated in the notice ducts the hearing, the npplicant or nelp• restore such eligibility. for hearing or as extermined by the am, lout shall be v.lven resscrilble uppor• 43P If the secretary denles ■ny such car conducting O.e hearing at the outset lunity to Ale with him briefly or other requrit, the applicant or recipient may oforduringtt.ehcaring. wrlttenstatemeisof a conLmtiors,and submit A request for a hearing in writ- (2) Tr;irnlcal rules of rvldence do not A w ritten copy of the- rmni Or,drlem of the Ing. Rpeclrying why It believes such apply to hearings conducted purhuant to recretary shaft be sei t to Vr applicant official to lmvr been In error. It shall this :,art, but rules or prluclrlas destined lr recipient and to I e complainant, if thereupon be given an expeditious hear- to insure production of the mast credible A' Y. Ing with a dectslon on the record in se• evidence nvalLthle and to subject texti- lei Dersfon.s in re-ord wrrre a hear- emdenc'. -"'in rules or procedures Issued tnory to test by eras-rxsmIllation Rl:all troy is waived. Wht1wver A hell t; by the Secretary. The applicant or re- bc app.1od w'hrre rersorl neeeeaary b) solved puriuknt to +21.15, a dcelelon eiplent will be restored to such eligibility the nlfu, r conducting the hcarhkg. 'rhe shall be made, by the Slcrviary on the it It proves At such a hearing that It 'hearinn officer mar exclude irreievnnt, record and a tvrlte I opy o: such deci. satisfied the requirements of subpafa- Immaterial, or ur ly rryetltlnus alit. sion Rliall be Rent is the applicant or [isph (U of thisparagraph, djviwr. AA doramrh Ls and ether evidence -reclr)lcnt, And to The complainant, 11 While prwledl"s under this par Agrsph offend or taken lot the rec.ed shell )se any. are pending, the annctions Imposed by open to examination by the partles and , (do Rull reauir, i. Faeh dectslon of the order ls,,ued under paragraph lit of dpiortil-Wy slwll be given to refute facts a hearing examiner or thr Secretary this section shah remain in effect. and argemcnts Advsncedon either side of shall set foTih his ruling on each find- 120.19 Judiclntre)ie•. Like Lssu.-R. A Iranscrlpt e.all be made of Ing, conclusion, or a teeptlon presented. the oral evidence i RCept to the extent the and shall Identify the reccuhcment or Action taken pursuant to section 103 substance t(iereol is stipulated for the requirements Imposed by or pursuant to of the Act Is subject to Judicial review reeord. All deeklons shall be bated upon this part with which It Is found that the as provided in section C03 of the Act. the hearing record and written findings applicant or rc( iplcnt hall filled to 4 21 :1 F.Ifeet oar other rrgkJnttunv shall ba,gnade. comply. rorrne, and In.trurdunim. (el Conloij,10ed or joint hearings. In (so Apprmal by 3'trrelory. Any final P&L- gDecf on other rapxtnhottr. All In which the same or related recta decision by Kn omcltTl ,d the I"Lrtment, lab re (A) S order, or flee ood, lon Are assetled to conshtete noncompliance other than the &v eAry personally, issued before the effective dote lot is this with tbL, pail wi Vi rrapect in two or which ptuvldi for he Rte-penalim or h,orenraeramsto milchfidspart nl,plies, Larminatlon of, or th•- relm,il to grant part by any officer of the Departirl or rojewompllance with this part slid the or contihue Federal 11anrlal as ilatance, which impose requirements designed to reffulathiia of one or more other Federal or the ImpoRlliun of .any other unction prohibit any discrimination against Indl• departments or agenalex issued under available under thla 1%~ rt or the Art, Khali vldusU on the grounds of face, color, or elite YI of the Act, the Secretary may, promptly be trusmhted to ilia Stare. national origin under any program to by agreement with such other depart- Lary personally, whit may ui'prove such which this part applies, and which menfs or Agencies, where applicable, pro- derision, may vacate Pi, or remit or mlt7- tuthorlite the suspension or termination vide for the conduct of Consolidated or -,ale arty sanction tmh~wed. of or refusal to grant or to continue joint hearings, and fur Use Application rh Conle•sI of ardrrs. The Anal Gal- Federal financial Lud"isce to any applt• recipiLsW, to such hearings ter rules or procedures Rion may prsn.lda file suspension or under cant for such or ogmt or arch eat cons oins failure not Inconsistent with this pa-t. Final de- termination of, or rrlu al to grant or ply with p such rrogrram for requirements. are to c etslon , in such easel, War air u this reg. continue Federal jingnetal assistance, In extent s hereby ulation Is ooncarri shall be made in K whole or In part. under the program In• superseded to the e extetint that t at t such sill. crlmination is prohibited by this part, eordaneenlti112.1T. rived. And may contain such terms, RbetAt hOitfl&. Vpt, gg, W. I14-tMVMAV, nisi ll, 1911' 1 • PULES' AND REGULATIONS ?I except that tlc"t; In th L+:crt may be LOnalder',ttlon Or at+nominal considers- of-way covering feet property under occuo( otiewdered to allele any Wrson of any Uon, or At a cons)dcntion which Is re- or the Coast OWrd 114 Va.C, as (n) Rod obIJ9XUm auumcder imposed 1 -1Iis Syr duced fr.r the purpose of LSS13tlnt the (ol). such superseded regulation, elder. In- reciplew. or In recocnition of the public 6• Utilization of Coast Ouard penortarl struct)on, or like direction before the interest to be served by such sale or lease ana faculties by any State, territory, pa. effeenve dote of t)tls part. Notlilng In to the recipient; and sau)on, or polsucal subdivwoa thereof lid Va this pert, however, supersede any Of (S1 AuY Federal agreement, arrange. c. to 1. C Use of r Coast tad petsonnol Goon the follow" (including future amend- seni other contanet which has as one in oomecuoa with th niuitlino lume instruction menu thereof) : (1) Executive Order of IN purposes the provision of asi tt• ana training by the States, t-rrltoneA, and 11:40 If CM. 1006 Sulip• p• 1671 and anco. Puerto Airo (14 Ua C. 148). regulations Issued thereunder or (2) any (d) "Primary- IPeiplent" let any 1. Vv of obsolete and other oonst OuArd other orders, rertalat)ons. Or instructions, recipient. that is authorised or required material by era Scout Si of par aeovte r Insofar as such orders, reculat)one, or to eatm l Federal financial assistance W of America, any Inenrpornteh unit of the Ln tructloat prolublt dttcrimInotion on another recipient for the purpose of covet Guard aumutary, and public body or prtvau organuaUOn not orgnurzed for prod; the Ground of race, color, or national carrying out a program. (11 VaC. 611 (a)). Odr,in In any program or altuallon too (e) "Ftolrani" Includes any ptotram. a, V S. Coast Ouird AualOery Program (H which this part is Inapplicable, or pro- prolect, or activity for the provision of V.S.C. 921-032). hlbA discrimination on any other servlres. fnannal ald, or other benefits e. Use of grants for the support of bole ground. to Indrv.duals (Including education or scientific research by oonpront Institutions (b) Forms and Instructlotu. The See- training health, welfare, rehabtlltatlon, of higher education and nonprofit organlu• retvr'y shall Issue and promptly make housin Y, or other services, whether pro. eons whole primary purpose Is Conduct of avallable to all Interested persons forms vided through employees of the recipient scleaudt rewerch (42 U.SR. 111911. and detalled instructions and procedures of Federal financial assistance or pre. 30. Use of grants made In connection with the rederal-6ld Airport Program (ssu. 1-11 for eRectuRting this part As applied to vlded by others through contracts or and 1T-20 of Us Federal Airport Act. 40 programs to which this part applies and other Sir"ancelcents with the recipient, v e.o. 1101-1314, 211e.u20). for which he is responsible. and Inebidlug b'nrk opportunities), or for 11. Vu •d U.S. land acquired for public (e) Ruperutshet and eoordlnallon. The the proi'rslon of facilities for furnishing airports uider- Secretary may from time to thne assign Services, flnanr,al aid or other benefits A. Sect/on If of the Tede Al Airport Att. to officials of the Department, or to oM- to lndlvirival,lho services, financial aid, to vit 3116; and the claim of other departments or agentle. or other benefits provider! under • pre- b. Surp lI ev I ivium Property Act Property of Act 11I44, sm 61 t2 U.e is) C, of App, . or the Government with the consent of gram receiving Federal financial assist- 1021141, and see. a of the Act of Oct. 1. 1069, such departments or agencies, resix:I Since shall be deemed to Include any 60 U e. C. App, 3e3b). bilit)es In connection with the effoctua• services, flnkr i aid, or other benefits 174 Activities carried out In eanaecuoa thou of the purposes of title V3 of the provided with the ald of Federal finan- wru, the Aviation Education Projesm of the Act and this Dart (other titan resPOnst- clal asst tance or with the aid of any Feb tat Aviation AdrnloUtrsuon vbdrr me. blllty for final decision as provided In non-Frd,'ral funds, property, or other uoei 103, Ill. and 313(x) of tnl rederal 121,17), including the achlefleent of retotuceA required to be expended or Aviation Act of less, as amended x.40 U,e O. clfect.hs coordination and maximum made &v liable for the program to meet 1340, 1361, and 1364(01. lotne ma~N 10 eon. uniformity within the Department and msWhlnr requirements or other eondi• neeu13.oa UPS with orh Urban and Mau within the Executive Branch of the TYansportauoa Government In the application of tittle cline which eder os met In order to re- capital Fe Tr oporu7d :.roan Prognm- A delve the Federal e f a , Urban amended t 1 TU 3 C O 11. Act or t0a, r VI and this part to afmaar proararns and a, rd to Include anY services, , financial ndal Lid, ON .mendeQ N9 u.e02o11, In similar altuatirim Any action taken, r ether benefits; provided (nor through a 14• Use of gram made 10 connection with determination trade or re4ulrement Im• ;acility provlderr with Vu aid of Federal Urban. Mus 1Yansportation tnucarch and poied by an vilclaI of another depart. financial assists nee or s uh non•rederal Demonstration Orant hogrun•-Urban Maw sent or Ace«cr eetin2 oaremant to an remourcr, 7Yansportatioa Act of 1964, as amended (49 lad let1). nisignment of retlloasib:lhty under this (f) ' F,41143t" m1y reAn any State, 13. Use of panto emda to eiftr on with puragraph shall halo the same effect a+ Territory, posri scion, the District of Urban Mus Transportation -rechnteal Siva. though such action tad been taken by ColunrbLl, or Puerto Pico, or any potlt• Its Oraet Propem-Urban Wrts Tntsporte. the Secretary of this DeDlitn ant. teat WLd)v1At01t thereof, or lrutru. tlon Act of 1061, as Amended J40 Ua p. 1 21.23 Flerrnlt(on- mentahta thereof, tiny public or private 1601•)• sleazy, Institution, or organization, or If. Use of grabs made In cnnneeuon with tJriless the context requires otherwise, other rnlity, or ally Individual, to any Urban Mau Trarisportwtlon Managerial As used in this part State, lerttWry, Pv4ulon, the District Vatting Orant Propam-Vrben Mw (a) "Appllcant" means a person who 7YRespertatlon Aft of 1914, a amm QrQ (11 wbmlts an application, request, or plan ^f Cotunlbia, or Panto Rico, to whom US p. 71970). rcgirired to be approved by the Secretary, Federal financial astlstance Is extended, N, Ues of parts made In tnhnrc Uon With directly ur through another recipient, Urban Mau 7Yamportatloo Crania for its. 01 uy a primar, recipient, AS a eondttion for any j,rogrant, Including any succes- North and 1Tainlna Frotrmme 1n IrI III elu;lbillty for Federal fnancial assist- air, aa.ij.r A or Lratisferee thereof, but it 'LS of Higher laarning - Vrbaa Mum sae, , and "application" mans such an such tenul does tint hlcludd any vlt)tnats 1elm Act Sir Sou, rr amended p2 r9Prlcauorl, lryuet, or plan. beneficiary und, r any such program. 0 S a C Use of ote made in eunn,rur,a with lbl "FatllllY" Includes AU Or any DItL 11f) •t,:Uetu rY" scant the Secretary the Htgb Speedn Ornuntl Ttarupuruaen Act, ,d structures, equipment, or otter real of Train iNf rlnilnn or, tleept in 121.17 441110e104ed(49USC.611.611). fir pc rnonal property or Interests therein, (e1, guy pet..+on to vrho:a L0 has dele- std the provision of facilities Includes gated 1 is Autlroritr In the matter Areast n 16 the coustme Uon, enpanslrrn, rmovstlort, otedrw I. ACTIVITIES To 1011I THIS PANT Arrurs wittw remodeling, +lterat 0n or acqula(tton of A MWXT bsJICMP or The rromast nNAN• trmoemo ell Arnwont A Cut AmirTAwca M To PROVItt SUPtgTMiNT facilftlei. (el "Federal Mancial RaAktaree"In• ACr'M IL"T6 WHICH THIS PARTAPPLIa f. Appahchla 11e11ona1 Developeienl Artat eludes; t Use , 1 grwAA made In connection with 1966 (40 US 0. App, 1 et aeq I. (I) Orst and loani of Federal p,deral-91.1 hiprway aro-tems (33 V.S.O. 101 APetwota C funds: at leg ) A►11.1c4 w oT PAST a To IWAIN s1.Deat (2) The grant or donation of Federal 9. Use I.f pants made In connection with PINANtLtt Aat114wra o► Tiros atrAAMtNT p1'operty and Interests in property; the Hlghwny S.ntety Act of lot$ (23 U5S.O, or T "MRTA"OA (3) The detail of Federal personnel; 403 at 14(1 • NondtsMmtnshoa en FMoalty AUbfe/ 1. Use of tenets In 6011rat)oh with the t4) The axle ahd Se(idit or, and the Hationnl 9YRIde add motor Yehhl gAfnr hofects permission to Usa(On other than A casual Jut or 1 NA(1S U S.C. 1191-1400,1431-148S1e (a) fMmples. 71te feltowIng.samples, or trarideint bull, Federal property or 4, Sew of real property and the Real without being ahausUve, Illustrate the ap• any lnterost in duct properly without of purest 1lemlu, Neemeots and Asti peallaaof the is"dUKidn ha Ion ;m4-lots ~1 FINIAL 11011111• VOL 33, NO. 113-11NUIdDAY, JUN1 11, 1070 RULES AND REGULATIONS 10085 ,d tnls hart on pfojec is receiving Federal the t'rban 'dvss • `1MSporlation Adnonlstrs- ses' ing, and other treatment rith rocardeto I,nhw cal is moxnce undet the programs of Lion ro as,ure public transportation, con- tLa lose of such vehicle as other persons with- scr'aln Department of Transportation otkr- venlent to the disadvantaged areas of nearby out regard to their raft, color or liAllnnal A' u,g wiministru,uns. (omor Ides to enhance emplo)meitt oppor- origin. t3I F,dr,ul Ai latson Adrnm,stralion it) tunitles for the disadvantaged and minority Iul No person who is, or seeks to be, sit 'fits avpcrt ponsor or any of his lessees, con- poptR►tlon employee of the project sponsor or lessees, r rule u:nre., or contractors may not ri tai 'Me sponsor shall assure that the coniceuionaires, contractors, lltenxea, or say cntlate between members of the public minority buslntss community In his area lb organization furnishing public transports. peruse Of rare, color, or national -origin In ndvlud of the rpportUAltiell offered by air- t:on service a a part of, or In conjunction Ivrninhirig. or fiarri rag t9, %Alting rooms, port concessions, and that bide are solicited aith, the project shall be treated less It- pawnger holding area, aircraft titdown from such qualified minority firms, and vorab;y than any other employee nr applicant arem. restaurant facilities, reatroodis. or fa- awards made without regard to race, eclat, with regard to hiring, dstntual, ade►nte. rllities operated under the Compatible land or national origin, ment, wages, or any other condlllons and me u,ncept 171 Federal Hiphmay Adm,nitirchon. 11) benents of employment, on the basis of rata, ,ill The airport sp,rpor and any of his The State, acting through Its highway de- color, or national origin. hearse, nn.resslonatres, or contrattors must partment, may not discriminate in Its mlec- Ultl No person or group of persons shall ,.ner all members of the public the sarne trim and retention of contractors. Including he discriminated against with regard to the fhrgree 11A type of %er%lce without regard without itmltatlon, those whom mrsdces are routing, scheduling, or quality of servltr of to rase, cnb:ir, or national origin This rule reulned for, or incidental to, construction, transportation service furnished as a part applies to herd base operators, re,taursnts, planning, research. hlghwal safety. engineer- of the project on the baits of race, color, or snack hors. gift shop, ticket counters, bag- ing properly mamaVPe4t, and fee tontraets national origin Frequency or service, age and gage handler,. car rental agencies, limousines and other commitments with person for sere- quality of vehicles assigned to routes, quality and tats Itanchlsed by the airport sponsor. Ices and expenses incidental to the acquisition of stations serving different routes, and Ja. l nsuraace underwriters, and other businesses of right-of-way, catlon of routes ntay not be determined on n iering to the public at the airport. fu) The State may not dlscrlminate the basis of race, color, or national origin. Wit An aircraft operator may not be re- hgalnal eligible persons In nuking relocation (ivl The location of projects requiring qulred to park his aircraft at ■ location that payments and In providing relocation ad- land acquisition and .he dlepiatement of per. is less protected, or less accnalble from the visory assistance where relocation Is netts- acts from their residences and businesses terminal facllleles, than locations ortered to slated by highway fight-of-way Mquleli may cot be determined on the basis of race, otherx, because of his race, color, or natlonal till) Federal-add contractors may not eb- ''iolnr, or national Origin. orlgln. a n. of y Dbilpallons of rile airport operator- fivi The pilot of an aircraft may not be cfirlrstminutterate C In their w;~ct:ict,l^n aandnd d ren!•teWnertioau b• I Tent ails conlractors,and concesslonatres, required to help more extensively In l contractors ms; Dot discriminate In their Each aPport operator shall require each ten. oilierations, and may not be offered less In- Ant, contractor, and concessionaire who cldental "r 1-a (such a windshield %I in l , selealon and ntentlon of aecand•tltf :uL % pro. p g contractors, who trrtlclpsto in Fedeniw's idq hny activity. i leo Ies•e contract facility , or the thin none] pilots. bemuse of his rue, wlor, highway construction, acquisition of fight airport under airport, to with, or forth. or natmnal origin. of-way and related projects. Including .hat faclAss t ri from that airport, to covenant In it a Ivl No Allot of t r eligible for ofwho supply materials and lease equlp,uet. for ri s i fined by the Administrator, Federal access to a pllal's lounge e or or to unofficial Avle.fu Adminlsvauon, that at he be will ll comply communication facilities such as • VNICOM Itvl The State may 11,01 dlscrimt late with ; I nondiscrimination requirements of frequency may be restrlcted In that access against the traveling public and business thlsg, ,t, because of 'its rate, color, or national origin: users of the federally assisted highway it 131 Notification of brnr)fctariu. The alr- Iell At'oist tb facilities maintained at the their access M and use of the facilities snr, ;,rt op•.`Iar shall Iii matt a copy of this airport by alt carriers or commercial opera. aervlces provided for public aceonunodatlnne part aveitatle at has omce for inspection stilt. tors fir holders of nrst-clwo transportation Ruch u eating, sleeping. ;eat, recrntion, Cud trig normal working hours by any person tickets or frequent users of the order's or vehicle servlclng) constructed on, over or asking for It, and fill conspicuously display Operator's service! may not be restricted on under 'ha right-of-way of such highweyl, a sign, or algna, furnished by the FAA, in the befit M ore. color, of national origin. Ivy Nelthet she State, fay ey Ser persons the main public arse or areas of the airport, (vill Pavenge's and crewmembers seeking subject to this part, nor ty eontruton and sibling that discrimination based on race, ground trahepo:L,tlon gran the airport may aubcontrseSon may d'acrlminats In their color, or national origin Is prohibited on the not be aaa;,aed to dttftroi vehicles, ar employment practicer- In donhon"On with airport. delayed or embarrssmd In assignment to highway construction projects Or other 13) Aeporlt Each sirport owner subject to vehicles, by the Airport iportaoe or his lessees, projects aaslsted by the Federal Highway this parL shall, within 16 days after be to. concessionaires, or contractors, because of Administration, ceives It, orware to the Area Manager of the race, color, of national origin, 1vl) The State shall not locate or design FAA Area In which the airport Is located a I riill Where there are two or more Was a Mghwey In such k :runner as to requite, copy of each written complaint charging alts. hki mot equal potential to serve the earn. on the basis of race, color, or national orlgln, criminatlon because of race, color, or ma. nautical needs of the area, the airport sponsor the relocation of Any persons, llonat origin by any person subject to Mo shall select the rite least hotly to adversely IvIII Ths State shall not locate, design, part, together with a statement describing affect nlsting communities. Such alto M1K• or construct is highway In such a Wanner as all actions taken to fesolve the matter, and tion shall flat be made on the basis of race, to deny reasonable accept to, and 11" thsreoy, the results thereof Each airport operator color, or national mill to any persons on the basis of race, color shill, by January 31 of each ytsr, submit to , the Area Manager of the FAA Area In which I t%) Employment at obligated alrlroru, in. or national orlgln, the air rt Is located it report lot the re- eluding employment by to Hants and con- !+t Yuan Mars Transporgaltnn Admin. ceding year In a form prescribed by the Fi d. cesdonsirre shall be Available to all regard- lelrafion. (1) Any person who Is. or ants trial Aviation Adminlatrstor. Jess of, race, creed, color, sex, of national to be, a patron of any public vehlels which origin. The sponsor shall lioordinate has air- Is operated u A part of, or In Conjuattdon IF.R, Doe. 70-7306; Filed, June 67, 1070; port plan with his loaf transit authority And with, is project shall be given the Name Meer, 6:46 e.ml FgCfgAl Will VOL $6, N0. 11►--fNIR30AY, g1AM 16, 6N0 1;9w~ . RULES AND REGULATIONS • Inapplicable, or prohibit discrimination sale or lease to the recipient, and(" any As"ta to Slate arts agenrle, f On any therground. Federal Agreement, ariangemtr.t, or prof -ts anancd productions in the aria. ib1 rms and l' fructfons. Each re- other contract which has as one of its 4 SI ors or research in the hn ar, b. Sup rt o[ edacat tonal prot,T s In the a aponsible ndowment offcial shall issue purposes the provision of assistat te. hi nanitIN Inrhlding the teal g of Stu- and promptly make available to Inter- eg) The term "program" incly0rr a any den lsanete era. ested perso fcrms and detailed Inslruc- prorram. project, or activity f1.,nlving S Assistanr to promote ,e fntercbanre tionsan d p educes foreReclue'Ingthis the Provision of services, fit nchl aid, or mrormntlon t thehu notes. part ar apnlle to programs to u itch this or other benefits to fndicid Is el acIed• 7. Assi clue to star ubIke underatard• part applies nd for which he I; Ing education or lrolning, ,ealth. hour- Ing rind appreelatlor iris h 1manlIIM responsible. hl-, or other services, alt they provided a s,q,imn of u,r 1 oration nr ar rorvlr Ici Superulefo andcoordiuation.The Ihlourh rmployecs of a reciptont of anrxc In lbe hmm~ lira. Chairman of an dowment may from Federal financial ,sdst rice at provided D.V d June 197:, time to time assign to other officials of by others through coo seta or other at- NAacr Nxs, the Endowment or ofticials of other rangcinents v.1th th rcekplent, and in- Ch 'man. deiailments or agent sof the Govern- Ouding work opoor uitlcs and casts or Net onaIEndowmentforf Arla. merit, with'the con;eu of such depart- 1,mu or other ri. U mce to tnd'vldual<1, men Ls or agencies, res ons1b41illes In or for rrovislon rt Sacllitl~ s for fur- RONM1LD S, BCMM ronnerllon with the r[fer anon of the nishino ecrrlces, rnancial rid or oY,er Chainnan,Natiori purposes of title W of the ct and this benerels to it Iduals. The service, fl- Endowmmt/orfheNurnnrsifirs, par I, Including theachievern tof eflec• nanchl aid, o other benefits provided IFR Dw 73-13302 Filed 7 3-79.6:45nml live coordination ad maxi um unk• under a Prot am iccod ing Federal ft- formily within then Endow rat and uancill a:•Sk ante shall be deemed to Title 49-Transportation within the executive branch of c Oov- Include au se*tli ts, rinanckil old, or SUBTITLE A--OFFICE OF THE SECRETARY crnment In the opplication of l10 VI other ben its prnldrd with the aid of OF TRANSPORTATION and This part of similar programs d In Federal anclal assistance or with the similar situations. Any action taken de- old of A v non-Fcdcral funds, property, IDOCI No. la; Notice 79-a1 termination made, or requirement • or out , resources Icquired to be ex- PAR7' 21-NONDISCRIMINATION IN FED. posed by an official of another • 1;endC or matte, available for the pro- ERALLY ASSISTED PROGRAMS OF THE partment or ai'ency acting pursuant t gram o meet matching requirements o. DEPARTMENT OF TRANSPORTATION- an assignment of responsibility undc othe conditions v,hich must be met In EFFECTUATION OF TITLE VI OF THE lhh subsection shall have the same effect rd 0 to receive the Federal financial as- CIVIL RIGHTS ACT OF 1964 AA though such cction had been taken by , .s once, and to Inclode any services, fl- Miscellaneous Amendments the responsible official of this agency, a o; hl n1d, or other hcnerits provided in 4 L 110.13 Defini[iona. hiou,h n factl'ty provided with the On July 19, 1972, a notice of proposed ud n,' Federal Mancial a+sWance or rielemaking was published In the FEacRAL As used Inthis;art: 11100 ou•iredersi resources, RIOUSTER (37 FR 143201 to amend Part (a1 The term "foundation" means the ihr The term 'facility" Includes all or 21 of the Regulations of the Office of the National Foundation for the Arts an any po Lion of structures, equipment, or Secretary (49 CPR Part 21)-Nondls- the Humanities, and includes the N other r d or personal property of in. rilrol etlon in Federally-Assisted Pro- tional Endowment for the Arts, the tercels t rein, and the provision of !a• prams of the Mpartment of Transporta•, tlonal Endowment !er the Humeral es, cilities by tides the construction, expon- tion, and each of their organizational Its. Mon, renov tion, remodeling, alteration All Interested parties were invited to (b) The term "Endowment" cans or acquisitl re of facilities. give their views on the proposed amend- the National Elidowment for the rte or tit The It m "recipienL" means any ment. None of the comments received the National Endowment f the Mate, politic subdivision or any State, provided a basla for change In the pro- Humanities. or Instrument Ity of any Statc or politi. posed amendment. The purpose of the. fee The term "Chairmen" ans the cal subdivision any public or private amendment Is as follows*, Chairman of the National E dowment agency, :nstitut n, or organization, or Planning or Adrfsory Board Member- for the Arts of the Chalrms of the Na- other entity or ny Individual, In any ship. Although existing 131 5(b) (vi) tlonal Endowment for the umanities. Bt9te, LO whom decal financial assist- contains a prohibition against discrlmi• (d) The term "respo le E:[dow- ante Ss extended, directly or through natory denial of the "opportunity to gar- ment of3{elal" with res to any per. another recipient, r any program, In- ticipale In the program through the pro- gram recz ving Fed al financial eluding any success , assign, or trans- vision of services or otherwise , e a", the assistance means the C airmman or any fere,• thereof, but suc term does not In- existing regulations did not specifically Endowment or other E owent officllrl elude any ultimate be flclary under any deal with the matter of planning or ad- designated bathe Chai on. such program. visory board membership. Considering (e) The term "Uri ed state'" meant (i t The term "pri ry recipients" the brood purpose of Title VI of the Civil Rights Act of 1904, the )cpastttlent or the States of the Un States, the M* means any recipient wht is authorized trlct of Columbls, alto Rico, the Vir- or required to extend Fe ral financial Transportation believes that member. gin Islands, Ame can ,lsmoa, Ouam, acslst(ince to another reef lent for the ship on such boards Is an aspect of "par. Wake ]eland the Canal Lone, and the purposes of carrying out a program. tlcipstion In the program" within the territories and salons e! tn e United (k) The term 'Ypplieant,. sans one meaning of section 601 of the Act (42 States. and the rrrt "State" means any US.C. 2000d), To make It clear that such one of the fore Ing. who submits an application, equest, or discrimination is prohibited, the Depart- The to "Fedem, financial as- plan required to be approved by a re• meat Is addlr.g a Specific reference to slstance" Includes 11) grisats and loans sponsible Endowment ofiicllil, r by a planning, advisory, and similar bodies to of Federal reda, the grant or the primary reclpient, as a conditio to elf- the other activities listed In I 21.6(b). donatbn o Fcderd property and Inter- gibility for Federal financial tance, The provi.ion applies only to the ex the In p rty, 1 the detail of Fed- and the term "application" meu such tent that the "recipient" has control over era, pere el, (4)13the sale and Lease oan application, request, or plan, board membership. It Is applicsbte, for and the .misellon to use (on other than example, where the members s.re ap- a cast' or tratlslent buW, Federal Mellen A pointed by the recipient. Where the props y or any Interest In such prop- raorxAL rIXANCrAL AeslsrAreCE To waste His board U elected and the election pro- erty Ififtut consideration or at a nom- PART APPLIa■ eedures are determined by the recipient, Lrul deratton. or at a consideration 1. Asatstsaes to groups for projects Lad such procedure Is to be nondSacrlmina- wh Is reduced for the purpose of As. productions to the sru, tors. The terns "Integral part" IS used In eL g the recipient, or in recognition of a. aunars, reMUch slid planning is the order to make It clear that reguhtiolu the publlo Interest to be served by such arts, are inapplicable to boards related orily FIDRSAL 1101511R, VOL 1e, NO. III-THURSDAY, JULY 11, 19?3 - RULES AND REGULATIONS • 11997, Otangenlially or Indirectly to a Federally time for Ming Is extended by the MArral financial assistance, on Lhe• assisted program. Secretan grounds of race, color, or national origin. Al%rmoriue action to correct and pre. To make this time period consistent Where p:lor dimr£ndnatoly practice ore rent prohibited discrimination. Existing with that nllowed under other civil rights usage tends, on the grounds of rnee, color. 121.5(b) (7) provides that consideration the Department Is changin; this or national origin to exclude individuals of race, color, or national orlgln are not time limit front 00 to 180 days. from participation in, to deny them the prohibited If the purpose and effect Is fn consideration of the foregoing, Of- benefits of, or to subject them to dis- to remove or overcome the detrimental fertire July 5, 1971, 49 CFR Part 21 criuiloation under any program or ne. results of discriminatlon. That provision is amended as folloasi Uvity to which this part applies, the ap, ntso places on the recipient of Federal 1. Section 21.3ibr Is amended by; plfeant or recipient trust take affirmative mmIstance an "obligation to take reason- i 11 Striking uut the word "or" at the nrllon to remove or overcome the effects able action to remove or overcome the end of subparagraph (1)Iv); of the prior discriminatory practice or C0114C(LuenCe5 of prior discriminatory r2) 81rIMns out the Ixrtod at the end usage. Even in the absence of prior dis- proctice or usage and to accomplish the of subparagraph ill (vi) rind sub Mituthtg erhnloatory practice or usage, a reciplent purposes of the Act". The Department's a semicolon and the word "or"; and lit administering a program or factlvity amendment to the second senterce In 171 Adding n new subparagraph (1) to nhich this part applies, is expected to 121.5(b) (7) Is to make it clear that the (I I[) at the er 1 ew Flt, to read h its set take affirmative action to assare that no recipient (1) must take aff£rmallve ac- person h excluded front participation in tlon to overcome the effects of prior dls• forth beluw, or d:nled the benefits of the program or rriminntory practice or usage, and (2) (41 Adding it new subparagraph 171 to activlty on the grounds of race, color, or Is expected to lake affirmative action to read as sct forth below. national orlgln• nssure that no person Is excluded from . participation In or denied the benefits 1 21,9 I1i•rrimtnuliun prohibficA, lA- ' lag the 1(bl (W Is s amended nded d by by add. M the reciplent's Federally assisted pro- s • ' • 3. Section 2 the folluivina new sentence attheend grams on the ground of race, color, or (b) Specific disrrlminatory actions I : national origin, prohibited: Collection of racial data. Existing (1) ' ' ' 121.9 Compliance Information. 12t.9(b) states that recipients shall keep (vii) Dmy a person the opportunity to s • • • s such records and submit such reports as participate as a member of a planning, (b) Compliance reports, s ' • In gen- the Secretary determines are necesraly. advisory, or similar body which Is an In, eral, recipients should have available for While this provision furnishes a basis for tcgral part of the program, the SeareLary racial and ethnic data requiring data on the race and national . . . • r showing the extent to which members of orlgln of poisons affected by Federally beneficiaries of pro- assisted programs, it contains no ex. 171 This part does not prohibit the miitnnuority tY groups are arc be be l tneticiari s of pro. , reference to such data. Experience consideration of race, color, or national guar. has shown that, with respect to most orlgln If the purpose and effect are to Federally assisted programs, racial data iemove or overcome the consequences of Is an essential element to implement- praclkes or impediments which have re- 123.11 [Amended! ins Title V1 of the Civil Rights Act of striated the availability of, or participa- 4. Section 21.11(b) Is amended by sub. 1964. In view of the Importance of such tion in, the program or activity receiving st£tuting "180 days" 'or 1190 days". data, the Department is adding an ex- ISM. 602; Civil Rights net of im, 41 9.9.0. Press reference to It In 1 21.9(bI. 'See wctbn 708(e) of Title VII of the 2oood-)) Time for Cling 21.1C b) regarding Iticfi. F.Civil i ua1RE8mploy Employment Opportunity Actdot )9711 Wiled in Washington, D.C., on Sep- %its One of lcomplaints ! nof 1 alleged the fit- 4a Use A. 2000c-0(el; section a10(b) of tember 21, 1972. Ntagon of state e that a of s be C filele - Title vat of the Cirri Rights Act of 1068, 43 JoHif A. Vote It, that complaint must t be d ue 0.301A(1)); and the reputations of the Or. Secretary o/ Transportation. "nut later than 00 days after the date of No of rc&rvi Cuntrie, •xmpllaace, 41 Cra tic alleged discdmf iatoll, unless the 6u-1.21. (Fn MV. 13-13291 Filed 7-3-73; 8:45sml , MOWIt NOMM, VOL. $16 RM,, fist-ANRMAt. AR1 16 19y111 a `r r ~ ~f~ 1P r' ' . s ~ ~ \ r r. S, 1 r / f ,r a r. 4 a- . :~G).1. i n. 1 ~ ~ r . ~ ~ _ ~ f~ "r'.. e r F ~ J~ i I rA '1 7 -r a + v d r ~ ~~r i rr ' ~F ~ re.; , i r+. ~ ~ e,r:.,.. Fr y .+tY FK!`~. y ~l y TRACT TWO All that certain lot, tract or parcel of land lying and being situ- ated in the City and County of Denton, State of Texas, and being part of the E. Puchalski Survey, Abstract No. 996, and being part of Lot 4, Block 7 of the Owsley Park Addition, an addition to the City and County of Denton, and also being part of a tract of land as conveyed from Joe Edd Northern and wife, Martha Gail Northern to Paul M. Haywood, Jr. by deed dated February 17, 1976, and re- corded in Volume 774, Page 713 of the Deed Records of Denton County, Texas, and more particularly described as follows: BEGINNING at the northwest corner of said Haywood Tract, said point of beginning lying in the south right of way line of Stella Street and also being a distance of 150 feet from the intersection of the south right of way line of Stella Street and the west right of way line of Avenue F; THENCE east along the north boundary line of said Haywood Tract, same being the south right of way line of Stella Street a distance of 15 feet to a point for a corner; THENCE south a distance of 70 feet to a point for a corner; THENCE west a distance of 15 feet to a point for a corner, said point being in the west boundary line of said Haywood Tract; THENCE north along the west boundary line of said Haywood Tract a distance of 70 feet to the place of beginning and containing 1,050 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 obstruc- tions as may now be found upon said property. For the purpose of constructing, installing, repairing and perpetually maintaining all purpose utilities in, along, 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 ingress, egress, and regress in, along, upon and across said premises for the purpose of making additions to, improvements on and repfirs to the said public utilities, or any part thereof. TO HAVE AND TO HOLD unto the said City of Denton, Texas as afore- said for the purposes aforesaid thn premises above described. WITNESS my hand at Denton, Texau, this the day of , A. D. 1976. M. HA4YW00D",- yx 805 pAu 289 EASE'ENT p }8 ,p DEED RECORDS .40L 005 PAGE 28 THE STATE OF TEXAS X KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON X 1 951 That PAUL M. HAYWOOD, JR., of Denton County, Texas, in con- sideration of the sum of One Dollar ($1.00) and other good and valuable consideration in hand paid by the City of Dentoi, Texas, e. Municipal Corporation receipt of which is hereby acknowledged, do by these presents grant, bargain, sell and convey unto the City cf Denton, Texas, the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the fol- lowing described property owned by him and being situated In Denton County, Texas and more particularly described as Tract One and Tract Two: TRACT ONE All that certain lot, tract or parcel of land lying and being situ- ated in the City and County of Dentog, State of Texas, and being part of the E. Puchalski Survey, Abstract No. 996, and being part of Lot No. 7 and 8, Block 7 of the Owsley Park Addition, an addi- tion to the City and County of Denton, and also being part of a tract of land as conveyed from Haghan Belcher and wife, Juanita Belcher to Paul M. Haywood, Jr. by deed dated`February 10, 1976 end recorded in Volume 774, Page 77 of the Deed Records of Denton County, Texas, and more particularly described as follows: BEGINNING at the southeast corner of said Haywood Tract, said point of beginning lying in the west right of way line of Avenue F and also being a distance of 240 feet from the intersection of the west right of way line of Avenue F and the south right of way line of Stella Street; THENCE west along south boundary line of said Haywood Tract a dis- tance of 74 feet to a point for a corner; THENCE north a distance of 65 feet to a point for a corner; THENCE east a distance of 16 feet to a point for a corner; THENCE south a distance of 49 feet to a point for a corner; THENCE east a distance of 58 feet to a point for a corner, said point being in tt.e east boundary line of said Haywood Tract, same being the west right of way line of Aver,-+e Fj ISENCE south along the-past boundary line of said Haywood Tract, same being the west right of way line of Avenue F a distance of 16 feet to the place of beginring and containing 1,,968 sgim re feet of land, more or less, THE STATE OF 1EXAS X VOL 805 racy 270 COUNTY OF DENTON X BEFORE ME, the undersigned authority in and for said County, Texaa, on this day personally appeared PAUL M. HAYWOOD, JR., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. tit's , UNDER MY HAND AND SEAL OF OFFICE, This the cv/¢tday of ~i -jlkim =k.' 1976. • 4 ' 'S t! , "+:'rSAO,{ ' DENTON COUNTY, TEXAS aignnuu~~,' My Commission expires June 1, 1977. i o r wZ7 'e. I ' K: 1 ~n xm I 7t==; , 3 S T VOL 805 rAC~ 271 COW loss owtowAl. 00406W "k 04 4* tv .oe O " dti,a°' SE4 2ft n Y y` E " A~ a LA, DEED-RECORDS I THE. STATE OF TEXAS, KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON I That The City of Denton, Texas, a Municipal Corporation 1869'7 of the County of Denton and State of Texas , for and in consideration of the sum of I & N01100 ($10.00)----------------- DOLLARS, to it in hand paid by the public 1 of the County of Denton and State of Texas , the receipt of which is hereby acknowledged, do, by these presents, BARGAIN, SELL, RELEASE, AND FOREVER QUIT CLAIM unto the said ptvfilic, their 1 heirs and assigns, all its right title and interest in and to that certain tract or par. , .a` cel of land lying in the County of Denton and State of Texas, described as follows, to-wit: d* All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas,•and being part of the R: Beaumont Survey, Abstract No. 31, and being part of Block 9, of the Headlee Addition, as recorded in Volume 4, Page 33 of the Plat Records of Denton County, Texas, and more particularly described as follows: r BEING all of a 20 foot alley, the centerline of which is described as followss BEGINNING at a point in the east right of way line of Beaumont Street, said point of beginning being 139.0 feet south of the intersection of the east right of way of Beaumont Street and the south right of way of Magnolia Street: THENCE south 870 40' east a distance of 730.1 feet to a point in the west right of way line of Bolivar :street and containing 14,602 square feet of land, more or less. SAVE AND EXCEPT the City of Denton, Texas retains an all purpose utility easement in *he above described property. TO HAVE AND TO HOLD the said premises, together with all and sin£rilar the rights, privi- leges and appurtenances thereto in any manner belonging unto the said public, their heirs and assigns, forever, so that neither the said City of Denton, Texas, its successors nor IfQtMllot• any person or persons claiming under it shall, at any time hereafter, have, claim or demand any right or title to the aforesaid premises or appurtenances, or any part there- of. MY hand at Denton, Texas this y .0,•......,. day of September A. D. 1976 l+nesses at R vest of Grantor: CITY OF IENTON, TEXAS BYs YW ELINOA. HUGHES, YOR ~,"Y.,`T~ `CITY'"SP:C1tEfiAItY L i Y0t DU i~ PACF~iTJ . "11 UP, alievLE AlhisvrrerrUliMLLNa ;VOi b05 WE 54 THE STATE OF TEXAS, 1 COUNTY OF BEFORE ME, the undersigned authority, _ f in and for said County, Texas, on this day personally appeared known to me to be the person whose name subscribed to the foregoing Instrument, and acknowledged to me that he . executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This day of A.D. 19......... (L.S,) Notary Public, County, Texas My Commission Expires June 1, 19..... SINGLE ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORS ME, the undersigned authority, COUNTY OF In and for said County, Texas, on this day personally appeared . known to me to be the person whose name subscribed to the foregoing Instrument, and acknowledged to me that he executed the same for the purposes and conjerstion therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This day of A.D. 19...._.... (L.S.) Notary Public, . County, Texas My Commission Expires June 1, 19__, _ THE ~CORPORATION ACKNOWLEDGMENT FA OF TEXAS BEFORE ME, the undersigned authority, ~r(b, TON E. : tip a8 for eal~'(~~i ty Texas, on this day personally appeared __._._lino~.r __H__u _.gh..._.....ea ..r..-.2A_dYRX'.... Q f ~.1 :.2,, of Denton k k' xa9 known to me to be the person and officer * Tttg~sf'name Is sins ibed to the foregoing Instrument and acknowledged to me that the same was the act of the said Ci`. unci _o- ..the...C tY_.Qf_Den.tozl,._.T.exas }..a..Muniaipal........ corpor{,tfon,)pndr{Fat he executed the same as the act of such corporation for the purposes and considerat'.on therein o6Xpres d, and in the capacity therein stated. I~j VEhf UNDER MY HAND AND SEAL OF OFFICE, This.. ..._.....__.day of--- h.~er A.D. 1976__ Notary Pub1 , Denton Q+naty, Teaas My Commission Expires June 1, 19_L7 CLERK'S CERTIFICATE THE STATE OF TEXASr , County COUNTY OF h f Clerk of the County Court of said County, do hereby certify that the foreg~olnn ij>t/tl ent of writing dato.d on the day of , A. D. 19 with its C jbc WMhentication, was filed for record In my office on the day of. ~'O,1~poek M., and duly recorded this da of ,,~tM01. o'clock M., in the ' ReS6 'l~~lR! , on pages _ WITNESS MY HAND AND SEAL OF THE COUNT S il#Wsunty, ace In the day a ~Fi~t n5 QWoen. s Cou .County, Texas, (L, S.) H ,rg I10..,.... Deputy. Liz) O u i Y Fret i b t ~ ~ ~ y q I I t f6 tt" -n (A hi O 1y~1--~ l7 ; rNn -C ITI f ~ ~ THE AMERICAN INSTITUTE OF ARCHITECTS AIA Document A101 Standard Form of Agreement Between Owner and Contractor where the basis of payment is a STIPULATED SUM THIS DOCUMENT HAS IMPORTANT LECAL CONSEQUENCES; CONSUITATLON WITH AN ATTORNEY 15 ENCOURAGED WITH RESPECT TO 115 COMPLETION OR MODIFICATION Use only with the latest Edition of AIA Document A201, General Conditions of the Contract for Construction. This document has been approved and endorsed by The Associated General Contractors of America. AGREEMENT made this FIFTH day of OCTOBER in the year of Nine'een Hundred and SEVENTY-SIX (October 5, 1976) BETWEEN the Owner: CITY OF DENTON COUNTY OF DENTON, TEXAS and the Contractor: MASTER CONCRETE FLOOR COMPANY DALLAS, TEXAS the Project: NEW CONCRETE TOPPING FLOOR SLAB DENTON COMMUNITY CENTER DEPARTMENT OF PARKS AND RECREATION CITY OF DENTON, TEXAS the Architect: HATFIELD - HALCOMB, INC. ARCHITECTS - PLANNING CONSULTANTS DALLAS, TEXAS The Owner and the Contractor agree as set forth below. AIA DOCUMENT A101 ~ OVVNER•CONTRACTOR AGREEMENT 0 JANUARY 1974 EDITION 4 AIA® 0 01974 THE AMERICAN INSTITUTE OF ARCHITECTS, 1715 NeW YORK AVE., NW, WASHINGTON, D.C. 2M 1 ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supple aentary and other Conditions), Drawings, Specifications, all Addenda issued prior to execution of this Agreement and all Modifications issued subsequent thereto. These form the Contract, and all are as fully a part of the Contract as if attached to this Agreement or repeated herein. An enumeration of the Contract Documents appears in Article 7. ARTICLE 2 THE WORK The Contractor shall perform all the Nrork required by the Contract Documents for Rrere imen the option duulprrve or the wort m wed on whet Conrwl Dorvmenu 1 The preparation of the existing Community Center Concrete Floor Slab and the placement, finishing, and curing of a new Buff Colored Concrete topping floor slab as described in the Contract Documents. • ARTICLE 3 TIME OF COMMENCEMENT AND COMPLETION The Work to be performed under this Contract shall be commenced within ten days of the Owner's written notice to proceed with the work. andY16O&H substantially completed within ten calendar days. r*2Exxxx"XXXXXxxx2tx91X%-XXXAxKxXXXXXXXKXXxx06xxKX"XXKKK The Owner will havE access to the floor and use of the Community Center space after substantial completion. After the required twenty-eight days curing time (as specified) the contractor shall clean the floor as required and apply the third application of curing (sealing) compound. „ For each calendar day that the work remains incomplete after the established completion date specified in the contract, or the increased time granted by the Owner, or as automatically increased by additional work or materials ordered after the Contract is signed, the sum per day given below will be deducted, from the monies due the Contractor, not as a penalty, but as liquidated damages. Liquidated Damages $50.00 per working day (Specifications - Division 89 paragraph 8.2) AtA DOCUMENT A101 a OWNER-CONTRACTOR AGREEMENT a JANUARY 1971 EDITION a AIAO a 01974 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVL, N.W., WASHINGTON, 0. C. 20006 ARTICLE 4 CONTRACT SUM The Owner shall pay the Contractor for the performance of the Work, subject to additions and deductions by Change Order as provided in the Conditions of the Contract, in current funds, the Contract Sum of Thirteen thousand, four hundred and thirty-seven dollars and no cents ($13,437.00) feta It he,t the lump mm amount, un;I prigs, or both, is desired 1 $16,911.00 Base Bid - 31540.00 Credit to Owner for approved substitution of Bonding agent per attached letter from Contractor dated 29 September 1976 $13,437.00 Adjusted Contract sum ARTICLE 5 PROGRESS PAYMENTS Based upon Applications for Payment subriiiled to the Architect by the Contractor and Certificates for Payment issued by the Architect, the owner shall make progress payments on account of the Contract Sum to the Contractor as pro- vided in the Conditions of the Contract as follows: orrec.aiUut the day of each month the proporuo Contract Sum properly allocable to labor, material, and equipmenl inc in the Work and er cent of the portion of the Contract Sum a locable to materials and equipment suitably stored at the site or other location a on in writing by the parties, up to the days prior to the date on w lication for Payment is submitted, less the aggregate of previous payments in each case; and s antial Completion mire Work, a sum sufficient to increase the total payments to per cent of the Contract Sum7a,,um'r~er,;nvd elainages as the Architect shall determi Incomplelq Work and unsettled claims, (ovrred e6ewhere In the Connxl :7urumentL here insert any prn~JSfon for )imillns or nducins th'fee' the work ruches t $fast of completion ) The Contractor shall submit his application for payment to the Owner at substantial completion of the work for the contract seam less ten percent retainage. The contractor shall make his final application for payment of the balance of the Contract Sum after the 28 day curing compound application is made and after the final completion and Owner's acceptance of the project. Any moneys not paid when due to either party under this Contract shall bear interest at the legal rate in force at the place of the Project. AIA DOCUMENT A1E1 t OWNER-CONTRACTOR AGREEMENT 0 JANUARY 1971 EDITION a AIA® a 01974 THt AMERICAN INSTITUTE OF ARCHITECTS, 1715 NEW YORX AVE., N.W., WASHINGTON, D.C. 20006 3 'ARTICLE 6 FINAL PAYMENT Final payment, constituting the entire unpaid balance of the Contract Sum, shall be paid by the Owner to the Contractor Thirty (?4) days after Substantial Completion of the Work unless otherwise stipulated in the Certificate of Substantial Completion, provided the Work lids then been completed, the Contract fully performed, and a final Certificate for Payment has been issued by the Architect. ARTICLE 7 MISCELLANEOUS PROVISIONS 7,1 Terms used in this Agreement which are defined in the Conditions of the Contract shall have the meanings designated in those Conditions. 7.2 The Contract Documents, v hich constitute the entire agreement between the Owner and the Contractor, are listed in Article 1 and, except for Modifications issued after execution of this Agreement, are enumerated as follows: 1 Wsl berow the Agreement, Concttions or the Contract Xeneral, Suppfrmentuy, and other CondaionjJ, Drawings, Specifiatiom, Addenda and accepted Ahernates, showing page or sheet numben in all cares and dates where appticoVe t Agreement: Standard Form of Agreement between the Owner and Va Contractor (AIA Document A101) dated 5 October 1976 Drawings: Sheet A-1 dated 30 August 1976 Specification: dated 30 August 1976 Letter: From Master Concrete Floor Co. to Hatfield - Halcomb, Inc, dated 29 September 1976 This Agreement executed the day and year first written above. Approved yy a i1 y Attorney, City o Denton a Attested: by: ty ecretary, City o Denton OWNER CITY CF DFN is-TFYAS CONTRACTOR KSTUt-=CRErLAOD"(-'MP9s1Y 1 jitnn= by: by AEA DOCUMENT A101 a OWNER-CONTRACTOR AGREEMENT is JANUARY 1971 ED TION a AIA® a 91974 THE AMERICAN INSTITUTE Of ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, D,C. 20006 4 1 MASTER CONCRETE FLOOR CO. swfe e,.. lsr PHONE '(214) 434.7170 DALLAS, TEXAS 75ae} 75235 1745 Hinton September 29, 1976 Hatfield-Halcomb, Inc. 810 Carillon Tower West 13601 Preston Road Dallas, Texas 75240 Ref: Bonding Topping Mr. Norman P. Hatfield Jr. I expressed in our conversation after the bid opening, my opinion about bonding topping. T would like to go on record that in my thirty-five years of experience in the cement finishing profession, I think beyond any shadow of doubt, that a mechanical bond is far better than any I know. The epoxies in my experiences are so unpredictable, sometimes they seem to do a good job and other times not so good. They are quite expensive also. It is our opinion that we could give you a good bonded topping slab at the civic center at a savings to the owner of three thousand, five hundred and forty dollars ($3, 540. 00). Very truly yours, MASTER CONCRETE FLOOR COMPANY INC. 4 Bert B. (Son) Martin 1 i, Qt a r s~ i n 4 i f SAMPLE Letter-of-Transmittal September 23, 1976 Mr. John Bruni, Project Director Area Agency on Aging North Central Texas Council of Governments 360 Place, P.O. Drawer COG 1201 N. Watson Rd. (Hwy. 360) Arlington, Texas 76011 Dear Mr. Bruni: ' On behalf of the citizens of Denton, Texas, I am pleased to submit this request for financial 'assistance through Title III of the Older Americans Act of 1965. This proposal includes preliminary plans for the development of personnel positions, travel expenses, communications utilities, consumable supplies and equipment to operate the proposed Senior Citizen's facility to be located in Civic Center Park. Prior to the completion of the new facility (July, 1977) the senior citizens program will be housed in the Saint Paul Lutheran Church fellowship hall located at 703 North Elm Street, Denton, Texas. The program will be in operation effective January 1, 1977, and will exist in this location until the new complex is completed in July. Upon completion the program, participants and staff will be transferred to the new location. The site upon which the new facility will be developed is owned by the City of Denton. The center will be centrally located within the downtown area of Denton. This site will best accomodate the older citizens of the community because of its geographical location to the heart of the city. We appreciate the opportunity to submit this pre-application for your consideration. Your cooperation in regards to this funding -equest will be greatly appreciated, Please contact Mr. Dick Huck, Director of Parks and Recreation, if additional assistance is needed. Very truly yours, Jim White, City Manager City of Denton, Texas 10 AREA AGENCY ON AGING North Central Texas Council of Governments P.O. Drawer COG Arlington, Texas 76011 GRANT PRE-APPLICATION REQUEST FORM Direct'ons for using this form. the applicant agency/organization should complete pcges two through five of this form as soon as possible and send to the Area Agency on Aging, NCTCOG. When the pre-application is received by the Area Agency on Aging it will be evaluated by the Review and Comment Sub-Committee of the Area Agency on Aging Advisory Com- mittee. When the pre-application has received a favorable endorsement from the sub- committee, the applicant will receive the Grant Application Kit. If you need assisionce in filling out this form, please coolact the Area Agency on Aging. Definitions. Please use the following definitions for responding to items 8A, 813, 8C, and 8E on page 3. Goal: A statement of who' ro be accomplished the end results to be achieved (no? ".uw it is to be done). Objective: An objective specifies one or more of the stages end/or phases (not activities) involved toward accomplishment or the goal. Method: A specific plan of activities designed to achieve the objec- Iives. Evaluation Procedure:: Procedures and criteria used to measure the project's efficiency and effectiveness. i I• AREA AGENCY ON AGING North Central Texas Council of Governments P.O. Drawer COG Arlington, Texas 76011 GRANT PRE-APPLICATION REQUEST FORM 1. Proposed Applicant Parks & Recreation Department, City of Denton, Texas Address 215 E. McKinney St. Denton, TX 76201 Telephone Number 382-9601 Profit Agency Nonprofit Agency X _ 2; Project Title Denton Senior Center 3. Anticipated Start Date and Duration: January 1, 1977 year _ 4. Anticipated Funding a. Federal Funds Requested 14,525.00 b. Grantee Match S 29,189.00 c. Other Support $ _ d. Total Project Cost $ 43,694.00 a 5. This project DOES/DOES NOT (circle one) continuo on existing program. if it does, Identify by: o. Funding Source (other than Title 111) City of Denton 6. How will this project bo funded of tho end of the grant period? The City of Denton is committed to the development of a senior center program and the building of a senior center. ( The City passed a parks and recreation bond issue which included funds for building a senior center.) The project N) be funded in_suhsegur+.nt years by City revonues. Additional W inguL be sought and is expected from the United Nay of Denton County. Grant Pre-Application Request Form (continued) 7,. Plunning activities and persons/ogencies involved prior to submission: City Council of Denton, 14s Elinor Hughes, Mayor, Parks and Recreation Board, Ms. Pat Cheek, Chairman; Advisory Committee to the Parks and Recreation Board for the development of a senior center, Parks and Recreation Director, Mr.'-Richard Huck. 8. Project Description a, Specific Goal(s) (1) Initiate~a senior center program prior to the building .of -ii sulor center so that a viell developed program wil l be rP dr to move into the new building. b.' Qbjective(s) (1) Open a senior center in existing facilities (C'Iurch recreation hall) to be operating daily Monday-Friday) within ,six 16 months. (2) Develop a full range of senior center activities within nine (9) months. 3) Achieve a daily attendance of 100 persons within one(1) year with appropriate representation from poverty and ethnic groups. c. Method(s)(1) The senior center director will devote half time to the -oro.tect during the first six (6) months. full time thereafter, (2) Onen the center for half a day initially expanding to full day (9-5) as the need is indicated. (3) Develop programs including the following areas: nutrition,(cont. on attached sheet d. Number and Kinds of New Personnel Who Will be Directly Involved in the Grant Project Senior Center Director (paid), Outreach workers (3-volunteer); Recreation leaders (4-volunteers); Counselors (8-Social Security, SPAN, Mental Health, legal, ,p„utritiunt, City-County Health Unit,, _RSVP, and Foster Grandparent) o. Evaluation Procedures The Parks and Recreation Director will conduct a continual evaluation of the project as it develops; the advisory committee will conduct a bi-annual evaluation to insure goals are being met and report results to the Parks and Recreation Board, thence tothe City Council. B. c. Cont. from page 3 of 6 recreation, outreach, counseling ( mental health, services, health, nutrition, legal), information and referral (coordinated with SPAN), and volunteers (coordinated with RSVP and Foster Grandparents). (4) Develop transportation for these with restricted mobility for up to 30 persons per day (SPAN provides). -Grant Pre-Application Request Form (continued) 4. Project Summory (juslification of need; anticipated benefits to community; services to be offered; target group and number of clients; statement of work; etc.) There are nearly 5,000 older peo le living in the City of Denton with as many living in the county towns. Of these, over 30% are below the pover_y level; many are restricted to their homes due to reduced mobility due to lack of transportation adn limited financial resources. There is no senior center in Denton County. Surveys conducted during the ast several ears show that the need for a senior center is among the top two or three stated needs by older citizens. i It is felt by the groups named in -7 above that the senior center program should t` be initiated prior to the building of the new senior center in order that the senior center program will be well established when the new building is opened. 1 (b) Anticipated benefits to community. The senior center Trill become a focal point for all senior citizen activities in the community providing meeting space for organized groups as well as a place for recreational and supportive ; activities Older persons who formerly had n p rlace to meet with other peopl e on a daily basis will be able to utilize the facilities to meet this need. By' locating the counseling services mentioned above in one place, the older people of Denton will be better served by the community. Similarly, volunteer opportunities for older people will be increased as they are expected,to take an active part in the operation of the center. (c) Services to be offered. (1) Recreation - Arts and crafts, games, and lounge area. (2) Counseling - legal service, mental health, nutrition, health, Sjcial Security, information and referral. (3) Nutrition - daily meals. Aftach additional pages if necessary. Cont. on next sheet. 9. Cont. from page 4 of 6 ;4) Outreach - contact and work witk those with restricted mobility, poverty, and ethnic groups. (5) Volunteerism - develop opportunities for older persons to serve the center and the community. d. Target group and number of clients. Efforts will be aimed at those most in need of services including nutrition. Target group is shown in 9. a. above. 'Grant Pro-Application Request Form (continued) SUMMRY BUDGET Approximate Amounts Are Permissible Federal Grantee Other Total Budget Categories Contribution Contribution Contribution Personnel 10,309.00 18,489.00 d Travel 416.00 1,560.00 Building Space 8,640.00 Communications and Utilities 2,400.00 480.00 Consumoble Supplies 1 ,000.00 ,.Equipment 400.00 400.00 0", per TOTALS 14s525.00 29,169.00 43,694.00 10, Dote Signature of Authorized Official Name Dick R. Huck Title Director, Paris and REcreation Address 216 East McKinney, Denton, TX 76201 Tolaphono382-9601 .Grant Pro-Application Request Fonn (conlinued) rof Ancncy Use Only. 1. This proposed project DOWDOLS NOT (circle ono) conform to the regional guide- lines and regional aging plan. ' 2. Circle one of the following numbers which corresponds most accurately to the priority of this project. Please sign your name. Use the following guides for selecting a number; (1) highest priority-,-project is critically needed; (2) priority project--project Is needed; (3) low priority--project would be helpful but it is not as needed as others; (4) not a priority at this time--the need for this project is low; (5) riot a priority item; project is not needed. Priority Response Staff Assigned + a. Regional 1 2 3 4 5 b. Local 1 2 3 4 5 s 3. Staff Comments 4. Dote pre-Application to be Evaluated 5. Summary of Response From Area Agency on Aging Review and Comment Sub-Committee 6. Grant Ravlow Data (If Applicable) 7. Grant Number Budget - Back-up Material (not to be included with pre-posal) Personnel Parks and Recreation Director 10% X 20,000 2,000.00 M Center Director 75% X 12,000 91000.00 Secretary 50% X 6440 3,220.00 M Custodian 50% X 5200 2,600.00 M Volunteers Recreation leaders 1 full time equivalent X 4160 41160.00 M Outreach workers full time equivalent X 4160 .2,080.00 M Counseling h full time equivalent X 4160 2,080.00 M Sub-Total 25,140.00 Benefits .(2349 -M) (1309-Fed) 14.55% (5.85 Pica; 2.7 Tuc; 6% Reti) 3,658.00 Total Personnel 28,798.00 (18,489.00) M (10,309.00} Fed. i` r. Travel Staff travel 416.00 (50 miles per week X .16 per miles X 52 weeks) Participants 6 trips per day X 260 day X 1.00 per 1560.00 M trip Total Travel 1976.00 quilding Space 1800 Sq. ft. X .40 per sq. ft. X 12 mos.8640.00 Communications and Utilities Utilities 12 mos. X 200 per month 2400.00 Phone 12 mos. X 480 per month 480.00 Total Communication & Util. 2880.00 Consumable Supplies Craft materials & games equipment 1000.00 Equipment , Television 400.00 Other Hone Total Budget 43,694.00 v zy v r~ `PETI TI0N We, the undersi;ned, do hereby petition the Denton City Council of Denton, Texas, to DENY closing or barricading McCormick Street from Underwood Street south to a point where it joins with Avenue A. We feel that this would not only be damaging to the property located nearby, but would create more hazards at Underwood and Avenue A. and certainly cause a great inconvience to the people who live in this area. b'• ~;z 7-~jyt--rte ~r• 14 L ~ 00 t k~ ~ ~ ' -b N a ' LONE STAR GAS COMPANY STATEMENT OF CREDIT TO BE APPLIED TO RESIDENTIAL AND COMMERCIAL ACCOUNTS IN THE OCTOBER, 1976 BILLING MONTH PURSUANT TO RAILROAD C0:9.`tISSION OF TEXAS ORDER UNDER GAS UTILITIES DOCKET NO. 655 DENTON q TEXAS LINE MCF AMOUNT 1 November, 1975 Overcollection (11 days in November; adjustment to City Gate Rate $.0212) 124,732.6 $ 29644.33 2 December, 1975 Overcollection (19 lays in December; adjustment to City Gate Rate ; 0354) 249,076.0 8,817.29 3 Total Overcollection - 11,461.62 4 March and April, 1975 Billing Deficiency (adjustment to City Gate Rate $.0073) 4109875.7 2.999.39 5 Net Overcollection, Line 3 less Line 4 - 8,462.23 6 Overcollection Plus Interest, Line 5 x 1.0501 - 8,886.19 7 Estimated Sales in Mcf for October 1976 90,271.5 - 8 Credit Factor to be Applied per Mcf in October 1976, Line 6 t Line 7 - 0.0984 Additional adjustments shall be made to billings it the dollar atouut credited varies by ' more than 5% of Line 6. I hereby certify that the above is true and correct to the best of my knowledge and belief. Fors Lone Star Gas Company Dates Sk P 17 76 By: Z~ L'Me~t-~. Title.* Rate ffic Assistant Controller I LONE STAR GAS CO~[PANY EXHIBIT A MODIFICATION OF CUD-588 FILING OF NOVEMBER 10, 1975 PURSUANT TO TEXAS RAILROAD COMMISSION ORDER IN DOCKET GUD-655 As Filed As Adjusted Nov. 10, 1975 GUD-655 Gas Purchased During October, 1975, From All Sources As FileC November 10, 1975 Pursuant to Docket No. GUD-588 $ 35 800 257 $ 35 800 257 Less Additional Payment Made in October, 1975, Applicable To Prior Months Pursuant to FPC Opinion 662 - 2 497 365 Adjusted Purchase Amount $ 35 600 257 $ 33 302 S92 Purchased Mcf During October, 1975, From All Sources 36 810 732 36 810 732 Weighted Average Cost of Gas $ .9725 $ .9047 Base Purchase Price GUD-588 .7229 .7229 Difference Between Base and Actual Price .2496 .1818 Gas Cost Adjustment (852) .2122 .1545 Authorized Base City Gate Rate 1.0399 1.0399 Authorized City Gate Rate Effective November 20, 1975 $ 1.2521 $ 1.1944 Modification of Weighted Average City Gate Rates 4 (Since the city gate rate covers parts of 2 accounting months, it is necessary to determine a weighted average based on number days each rate is in effect.) November, 1915 0 Original: 19 days @ $1.0421 plus 11 days @ $1.2521 . 30 days @ $1.1191 Modified: 19 days @ $1.0421 plus ii days @ $1.1944 ■ 30 days @ 1.0979 Differential: .0212 December, 11?75 Original, 19 days @ $1.2521 plus 12 days @ $1.1565 - 31 days @ $1.2151 Modit'led: 19 days @ $1.1944 plus 12 days @ $1.1565 - 31 days @ 1.1797 Differential,: .0354 . I LONE STAR GAS COMPA.\'Y EXHIBIT B MODIFICATION OF CUD--453 FILING OF JANUARY 27, 1975 PURSUANT TO TEXAS RAILROAD COMMISSION ORDER IN DOCKET GUD-655 As Filed As Adjusted Jan. 27, 1975 CUD-655 Gas Purchased During the Six Months Ended December, 1974 From Non-affiliated Suppliers Adjusted to Eliminate Retroactive Payments and Refunds as Filed on January 27, 1975 Fursuant to Docket No. CUD-453 $ 91 853 613.90 $ 91 853 613.90 Plus Additional Payment Made in October, 1975 Pursuant to FPC Opinion No. 662 - 2 497 364.95 Adjusted Purchase Amount $ 91 853 613.90 $ 94 350 978.85 Purchased Mcf During the Six Months Ended December, 1974 224 128 083 224 128 083 Weighted Average Cost of Gas $ .4098 $ .4210 Base Purchase Price CUD-507 .2053 .2053 Difference Between Base and Actual Price .2045 _ .2157 Gas Cost Adjustment (65X) .1329 .1402 Authorized Base City Gate Rate .4726 .4726 Authorized City Gate Rate $ .6055 $ .6128 Excess Adjusted Per CUD-655 Over Filed $ .0073. I RAILROAD COMMIS5I0,1 OF TEXAS GAS UTILITIES DIVISION RE: LONE STAR GAS COMPANY'S GAS UTILITIES STATEMENT OF COST OF GAS PURCHASED DURING THE MONTH DOCKET NO. 721 OF „UGUST, 1976 INTERIM ORDER • AND NOTICE OF HEARING On September 10, 1976, Lone Star Gas Company filed its State- ment of Gas Purchased during the month of August, 1976, pursuant to the • Order of the Commission of June 30, 1975, in Gas Utilities Docket No. 588. The Commission, being of the opinion that the accuracy of such statement should be verified, makes the following findings of fact and conclusions of law, and orders: FINDINGS OF FACT 1. Lone Star Gas Company transports natural gas for resale to its distribution operations, for ultimate sale to residential and commercial customers. 2. Lone Star filed its statement of c,)st of gas purchased during the month of August, 1976, with the Railroad Commission of Texas on September 10, 1976. In that statement were included $8 985,549.90 in out-of-period adjustments. 3. The month of September is traditionally a low consumption period for residential and commercial consumers of natural gas. CONCLUSIONS OF LAW 1. Lone Star Gas Company is a gas utility within tre meaning of TEX. REV. CIV, STAT. ANN. art. 6050, et seg. (1962). 2. The Railroad Commission of Texas has original jurisdiction to hear and determine this matter pursuant to TEX, REV. CIV. STAT. ANN. t art. 6053 (1962) and Re: Lone Stv Gas Com any and LSO Transtexas Co.1pany Tex. R,R. Comm., Gas Utilities Docket No. 588 (June 30, 1975). r~AS UTILIl-,LS DOCKET NO. 721 Page 2 3. T'ne public interest requires verification of t'ne accuracy of the Lone Star Gas Company's statement of gas purchased during the month of August, 1976. 4. The public interest demands that these out-of-period adjustments be collected during a low consumption month, subject to verification, to minimize the effect of the total bill to residential and commercial customers. BE IT, THEREFORE, ORDERED BY THE RAILROAD CONuyISSION OF TEXAS that Lone Star Gas Company be permitted to'place into effect a new domestic and commercial city gate rate on September 20, 1976, pursuant to the Order of the Commission of June 30, 1975, in Gas Utilities Docket No. 588; provided, however.. that the Commission herein expressly with- holds final approval of the accuracy of out-of-period adjustments included in the cost of gas statement reflecting such new city gate rate, pending hearing on the accuracy; and BE IT FURTHER ORDERED that Lone Star shall be permitted to place into effect a new domestic and commercial city gate rate on the condition that it be subject to subsequent adjustment to correct any inaccuracies found by the Commission in its statement of gas purchased during the month of August, 1976, and out-of-period adjustments thereto; and BE IT FURTHER ORDERED that a public hearing be held at 10:00 a.m., October 20, 1976, in room 812 of the Ernest 0, Thompson Building, 10th and Colorado Streets, Austin, Texas, at which time Lone Star Gas Company shall present all relevant evidence in support c,f the accuracy of and inclusion of $8,989,549.90 in out-of-period adjustments in its statement of cost of gas purchased during the month of August, 1976; and BE IT FURTHER ORDERED that a copy of this Notice of Hearing be delivered by Lone Star to each and every city, town, and village in which natural ;as and natural gas service is provided by Lone Star; and BE IT FURTHER ORDERED that any interested person may petition to intervene in and be made a party to this proceeding by filing a motion to intervene with the Director, Gas Utilities Division, Railroad Commission of Texas, P. 0, Drawer 12961, Capitol Station, Austin, Texas 78111, not later than October 11, 19761 and , L CF,S UT::-;IES OOC'ET 10. 721 ?age 3 BE IT FURTHER ORDEtEO that a copy of all testimony and exhibits which are to be presentee by Lone Star et the hearing be filed with the Coamission not later than twenty (20) c,.ys in advance of the hearing; and, in tt,e event that any parson becores a party cf record later than twenty (20) days in advance of the hearing, with 1.tat person upon being notified by the Corr;,iission that he is a party of record; and BE IT FURTHER ORDEIED that in the event that the Railroad Coc.•nission of Texas or any of its membe.°s is rot present to preside over and hold said hearing, then and in that event the 1-irector or a Hearing Examiner of the Gas Utilities Division is hercby a!npcwered and designated to hold the same and to do aid perform any act as provided in TEX. REV. CIV, STAT. ANN. art. 6519a (1975). DONE AT AUSTIN, TEXAS, this t'ie 15th day of September, 1976. RA. I AD C0KY1IS!.ION F TEXAS A~f Chai man tG✓ -r- ~ omm~ss, n :r ATTEST: " re -ire 1. a I~ , , d j y _ 4 't 5► ~j c r 9-~ ~ F ~z o, g J 4' Qi l.' r 229 West Hickory Box 618 Denton Texas 76201 817 387 6 ~ 48 U11 FE TITLE Canpany of Denton September 28, 1976 Mr. Paul Isham, City Attorney Municipal Building Denton, Texas Re: B. F. Daniel - sale - City of Denton Dear Sirs We are enclosing Owner's Title Policy No. 1 158849 in conneotion with the property purchase by the City of Denton from Mr. Daniel. If we can be of further service to you in the future, please call us. Thanking you we remain, Very truly yours, USLIFE TITLE CO. OF DENTON By: e'( ofts ere OA/bp enols if-WE TITLE INSURANCE Company of Dallas Owner Policy of Title Insurance GF#18246 USLIFE TITLE INSURANCE Company of Dallas, DALLAS, TEXAS, a Texas Corporation, HEREINAFTER CALLED THE COMPANY, for value does hereby guarantee to the herein named Insured, the heirs, devisees, executors and administrators of the Insured, or if a corporation, its successors by dissolution, merger or consolidation, that as of the date hereof, the Insured has good and indefeasible title to the estate or interest in the land described or referred to in this policy. The Company shall not be liable in a greater amount than the actual monetary loss of the Insured, and in no event shall the Company be liable for more than the amount shown in Schedule A hereof, and shall, except as hereinafter stated, at its own cost defend the Insured in every action or proceeding on any claim against, or right to the estate or inte-st in the land, or any part thereof, adverse to the title to the estate or interest in the land as hereby guaranteed, but the Company shall not be required to defend against any claims based upon matters in any manner excepted under this policy by the exceptions in Schedule B hereof or 11 excluded by Paragraph 2, "Exclusions from Coverage of this Policy," of the Conditions and Stipulations hereof. The party or parties entitled to such defense shall within a reasonable time after the commencement of such action or proceeding, and in ample time for defense therein, give the Company written notice of the pendency of the action or proceeding, and authority to defend. The Company shall not be liable until such adverse interest, claim, or right shall have been held valid by a court of last resort to which either litigant may apply, and if such adverse interest, claim, or right so established shall be for less than the whole of the estate or interest in the land, then the liability of the Company shall be only such part of the whole liability limited above as shall bear the same ratio to the whole liability that the adverse interest, claim, or right established may bear to the whole estate or interest in the land, such ratio to be based on respective values determinable as of the date of this policy. In the absence of notice as aforesaid, the Company is relieved from all liability with respect to any such inter- est, claim or right; provided, however, that failure to notify shall not prejudice the rights of the Insured if such Insured shall not be a party to such action or proceeding, nor be served with process therein, nor have any knowledge thereof, nor in any case, unless the Company shal! be actually prejudiced by such failure Upon sale of the estate or interest in the land, this policy automatically thereupon shall become a warrantor's policy and the Insured, the heirs, devisees, executors and administrators of the Insured, or if a corporationjis successors by dissolution, merger or consolidation, shall for a period of twenty-five years from date hereof remain fully protected according to the terms hereof, by reason of the payment of any loss he, they or it may sustain on account of any ED0 warranty of title contained in the transfer or conveyance executed by the Insured conveying the estate or interest in the land. The Company shtll be liable under said warranty only by reason of defects, liens or encumbrances existing prior to or at the data hereof and not excluded either by the exceptions or by the Conditions and Stipulations hereof, such liability not to exceed the amount of this policy. IN WIINESS HEREOF, the USLIFE TITLE INSURANCE Company of Dallas has caused this policy to be executed by its President under the seal of the Company, but this policy is to be valid only when it bears an authorized countersignature, as of the date set forth in Schedule A. Pre~,dml a CCh,fQf'Jf.emr1nr Ofocer Attest Senior Vre-Prerdent Serreferrend measurer Authorized S~pnelure NOW DALLAS TITLE AND GUARANTY COMPANY NOW m r 211M errs Conditions and Stipulations 1. Definitions The following terms when used in this policy mean: (a) "land": The land described, specifically or by reference, in Schedule A, and improvements affixed thereto which'oy law constitute real property. (b) "public records": Those records which impart constructive notice of matters relating to the land. (c) "knowledge": Actual knowledge, not constructive knowledge, or notice which may be imputed to the Insured by reason of any public records. (d) "date": The effective date, including hour if specified. 2. Exclusions from the Coverage of this Policy This policy does not insure against loss or damage by reason of the following; (a) The refusatof any person to purchase, lease or lend money on the land. (b) Governmental rights of police power or eminent domain unless notice of the exercise of such rights appears in the oubfic rec- ords at the date hereof; and the consequences of any law, ordinance or governmental regulation including, but not I,.mited to, building and zoning ordinances. (c) Any titles or rights asserted by anyone including, but not limited to, persons, corporations, governments or other nn,ities to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or to any land extending from the line of mean low tide to the line of vegetation, or to lands beyond the line of the harbor or bulk•iead lines as established or change(: jy any government, or to filled-in lands, or artificial islands, or to riparian rights, or the rights or interests of the State of Texas or the public generally in the area extending Irom the line of mean low tide to the line of vegetation, or their right of access thereto, or right of easement along and across the same {d) Defects, liens, encumbrances, adverse claims against the title as insured or other matters (1) created, suffered, assum )d or agreed to by the Insured at the date of this policy, or (2) known to the Insured at the date of this policy unless disclosure thoreof in writing by the Insured shall have been made to the Company prior to the date of this policy; or loss or damage which would not have been sustained if the Insured were a purchaser for value without knowledge; or the home .lead or community property or' survivorship rights, if any, of any spouse of any Insured, 3. Defense of Actions (a) In all cases whire this policy provides for the defense of any Ection or proceeding, the Insured shall secure to the Company the right to so provide defense in such action or proceeding, and ail appeals therein, and permit it to use, at its option, the name of the Insured for such purpose. Wherever requested by the Company, the Insured shall give the Company all reasonable aid in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses, or defending such action or proceeding. (b) The Company shall have the right to select counsel of its own choice whenever it is required to defend any action or pro- ceeding, and such counsel shall have full control of said defense. (c) Any action taken by the Company for the defense of the Insured or to establish the title as insured, or both, shall not be con- strued as an admission of liability, and the Company shall not thereby be held to concede liability or waive any provision of this policy. 4. Payment of Loss (a) No claim shall arise or be maintainable under this policy for liability voluntarily assumed by the Insured in settling any claim or suit without written consent of the Company. (b) All payments under this policy, except payments made for costs, attorney fees and expenses, shell reduce the amount of the Insurance pro tanto; and the amount of this policy shall be reduced by any amount the Company may pay under any policy insuring the validity or priority of any lien excepted to herein or any Instrument hereafter executed by the Insured which Is a charge or lien on the land, and tlta amount so paid shall be deemed a payment to the Insured under this policy. t) The Company shall havr fns option to pay or settle or compromise for or in the name of the Insured any claim insured against by this policy, and such payment or tender of payment, together with all costs, attorney fees and expenses which the Company is obligated hereunder to pay, shall terminate all liability of the Company hereunder as to such claim Further, the payment or tender of payment of the full amount of this policy by the Company shall terminate all liability of the Company under this policy. {d) Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the Insured, and it shell be subrogated to and be entitled to all rights and remedies of the Insured against any person or property in respect to such claim. The Insured, if requested by the Company, shall transfer to the Company all rights and remedies against any person or property necessary In order to perfect such right of subrogation, and shall permit the Company to use the name of the Insured in any transaction or litigation Involving such rights or remedies. 6. Policy Entire Contract Any action, actions of rights of action that the Insured may have, or may bring, against the Company, arising out of me tutus of the title insured hereunder, must be based on the nrovisions of this policy, and all notices required to be given the Company, and any state- ment In writing required to be furnished the Company, shall be addressed to USLIFE TITLE INSURANCE Company of Dallas, 1301 Main Street, Dallas, Dallas County, Texas 75202. 0. This policy It not transfers'9e. A y C0z3Kr-nop>>D--A i t7--j -j corny ao m ao C'?va N xi~o 0 ~aDO M ~dfoN.N~O ~ Di t2 . 0 a t _fD w CL :5 r+ v b o 7 (D O c a fn 41 J ^ ~ CD ~ y y 0 N I ro O c ^ C m .2 N y O C C C G G j a .Ci m i t n n n= v v v v v= s c o w p a n o. B. n t o 2 2 0 2 2) ] J J ] ] ~ ' ~ ~ T ~ ry Q o SCHEDULE A , Amount: $1,750.00 by Owner Policy No.-. U 1 158849 GF No. or File No.: 18246 Date of Policy: September 27, 1976 Name of Insured: CITY OF DENTON$ A Municipal Corporation 1. The estate or interest in the land insured by this policy is: Fee Simple (fee simple, leasehold, easement, etc.-identify or de;cribe) 2. The land referred to in this policy is described as follows: All of those certain tracts of land out of the Robert Beaumont Survey, in the City and County of Denton, State of Texas, and described by metes and boundo as follows: FIRST TRACT: All of that curtain lot, or tract or land out of the Robert Beat, nt Survey, in said City of Denton, Denton County, Texas, and being a part of a certain reserved strip of land lying Weat of Lot Six (6), in Block Twenty-one (21) of CARROLL PARK ADDITION (Third Filing) to the City of Denton, Texas, and described as follows: BEGINNING at a point 70 feet West of the Northwest corner of said Lot Six (6), in Block Twenty-one (21) of said Addition, same being in the West line of the original B. F. Daniel tract; THENCE South parallel with the West line of said Lot Number Six (6), in Block 'Twenty-one (21), 169.3 feet, more or less, to a point in the West line of said B. F. Daniel original tract and in the North line of Cordell Street; THENCE East along fie North line of Cordell Street 40 feet to a point in the West line of a Creek easement; THENCE North parallel with the West line of Lot Six (6), in Block Twenty- one (21) of said Addition, 169.3 feet said point being 30 feet West of the Northwest corner of said Lot Six 16), in said Block Twenty-one (21) of said Additions THENCE West 40 feet to the place of beginning. SECOND TRACT: All that certain lot or trace. of land out of the Robert Beaumont Survey, in the City and County of Denton, State of Texas, and being a part of a certain reserved strip of ]and lying West of Lots Five (5) and Six (6) in Block Fourteen %184) of CARROLL PARK ADDITION (Third Filing), to the City of Denton in Denton County, Texas, and described as follows: BEGINNING at a point 70 feet West of the Northwest corner of Lot Number Five (5) in Block Fourteen (14) of said Addition, said point being in the West line of said original B. F. Daniel tract; THENCE South parallel with the West line of Lots Five (5) and Six (6) in Block Fourteen (14) of said Addition and along the West line of said USLIFE TITLE INSURANCE Company of Dallas (CONTINUED) 13o1 main Street Dallas, Taxes 7FM r... (7) 1 fvun. is" IH. r. Attached to and made a part of USLIFE TITLE INSURANCE Company of Dallas Policy, Binder or Commitment No. 0-1 156849 original B. F. Daniel tract, 320 feet, more or less, for corner in the North line of Crescent Street. THENCE East along the North line of Crescent Street 40 feet to the West line of a creek easement for corder; THENCE North parallel with the West lines of Lots Number Six (6) and Five (5) in Block Fourteen (14) of said Addition, 320 feet for corner, said corner being 40 feet East of the West line of said original B. F. Daniel tract and 30 feet West of the Northwest corner of said Lot Number Five (5) in Block Number Fourteen (14) of said Addition, said corner being in the South line of Cordell Street in said City of Dentn, Texas; THENCE West along the South line of Cordell Street, 40 feet to the place of beginning. • y ~ a....auA+iewi*a SCHEDULE 8 Owner Policy No.: 1 958849 This policy is subject to the Conditions and Stipulations hereof, the terms and conditions of the leases or easements in- sured, i' any, shown in Schedule A, and to the following matters which are additional exceptions from the coverage of this policy; 1. Restrictive covenants affecting the land described or referred to above. 2. Any discrepancies, conflicts, or shortages in area or boundary fines, or any encroachments, or any overlapping of im- provements. 3. Taxes for the year 19_76_. and subsequent years., not yet due and payable. 4. The following lien(s) and all terms, provisions and conditions of the instrumer,r(s) creating or evidencing said lien(s): None. 5. Any portion of the captioned property falling within the boundaries of any road, street or highway. 6. Visible and apparent easements on or across the property. r n . WARRANTY DEED DEED RECORDS THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § 19~~3 That we, B. F. DANIEL and Wife, RUTH DANIEL, of the County of Dallas, State of Texas, for and in consideration of the sum of ONE THOUSAND SEVEN HUNDRED FIFTY AND N01100 ($1,750.00) DOLLARS, to us in hand paid by the CITY OF DENTON, TEXAS, a municipal corporation, have Granted, Sold and Con- veyed, 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 of those certain tracts of land out of the Robert Beaumont Survey, in the City and County of Denton, State of Texas, and described by metes and bounds as follows: FIRST TRACT; All of that certain lot or tract of land out of 4 the Robert Beaumont Survey, in said City of Denton, Denton County, Texas, and being a part of a certain reserved strip of land lying West of Lot Six (6), in Block Twenty-one (21) of CARROLL PARK ADDITION (Third Filing) to the City of Denton, Texas, and de- scribed as follows: BEGINNING at a point 70 feet West of the North- west corner of said Lot Six (6), in Block Twenty-one (21) of said Addition, same being in the West line of the original B. F. Daniel tract; THENCE South parallel with the West line of said Lot Number Six (6), in Block Twenty-one (21), 169.3 feet, more or less, to a point in the West line oc said B. F. Daniel original tract and in the North line of Cordell Street; THENCE East along the North line of Cordell Street 40 feet to a point in the Nest line of a creek ease- ment; THENCE North parallel with the West line of Lot Six (6) in Block Twenty-one (21) of said Addition, 169.3 feet. said point being 30 feet West of the North- west corner of said Lot Six (6), in said Block Twenty- one (21) of said Addition; THENCE West 40 feet to the place of beginning. i VOL 805 PALE 665. 's MMM" I SECOND TRACT: VCt 805 ME UUU All that certain lot or tract of land out of the Robert Beaumont Survey, in the City and County of Den- ton, State of Texas, and being a part of a certain re- served strip of land lying West of Lots Five (5) and Six (6) in Block Fourteen (14) of CARROLL PARK ADDI- TION (Third Filing), to the City of Denton in Denton County, Texas, and described as follows: BEGINNING at a point 70 feet West of the North- west corner of Lot Number Five (5) in Block Fourteen (14) of said Addition, said point being in the West line of said original B. F. Daniel tract; THENCE South parallel with the West line of Lots Five (5) and Six (6) in Block Fourteen (14) of said Addition and along the West line of said original B. F. Daniel tract, 320 feet, more or less, for corner in the North line of Crescent Street; THENCE East along the North line of Crescent Street, 40 feet to the West line of a creek ease- ment for corner; THENCE North parallel with the West lines of Lots Number Six (6) and Five (5) in Block Fourteen (14) of said Addition, 320 feet for corner, said corner being 40 feet East of the West line of said original B. F. Daniel tract and 30 feet West of the Northwest corner of said Lot Number Five (5) in Block Number Fourteen (14) of said Addition, said corner being in the South line of Cordell Street in said City of Denton, Texas; THENCE West along the South line of Cordell Street, 40 feet to the place, of beginning. TO HAVE AND TO HOLD the above described premises, to- geti.er with all and singular, the rights and appurtenances thereto in anywise belonging unto the said CITY OF DENTON, TEXAS, a municipal corporation, its successors and assigns forever; and we do hereby bind ourselves, our heirs, executors and ad- ministrators, to Warrant and Forever Defend all and singular the said premises unto the said CITY OF DENTON, TEXAS, a municipal corporation, its successors and assigns, against every person whomsoever lawfully claiming, or to claim the same, or any part thereof. WITNESS OUR HANDS at Dallas, Texas, this the 17th day of September, A. D. 1976. e~ b. F.' DANIEL RUTH DANIEL Page 2-WARR&M DEED ACKNOWLEDGMENT THE STATE OF TEXAS COUNTY OF DALLAS Before me, the undersigned authority, in and for said County, Texas, on this day personally appeared B. F. DANIEL and Wife, RUTH DANIEL, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowl- edged to me that they executed the same for the purposes and consideration therein expressed. ~ 1 nur ,h Given under my hand and seal of office, this,. ).'•,ti. day o A. D. 1476. •Y, r va°~ _ 1Q l Cu ~ . % ~ . otaub , Dallas y,, . Texas '''~.NfudL~~;\•,' ' ..1/IR I M•111•• NI My Commission expires: w:..~ NANCY MEANS Notary P_LA,: In And For D+:Ilas Cow ly, Te,e, M1 SOMITW3100. 70 4 , YOl 805 PAGE 667 " Page 3-WARRANTY DEED 0`1 d y ~ °l 0+ c- F!. F~ O O CF p eS ~ Cr OG 1.) F4j 0 d ? v A hr Q [r ~ vh li L ~~va c0~ ion Mot *A" PIN 6z dNS • 4 ~r M+wo~ k ~n.l •,w,,,q 4np spa 1w ar h NO*V PO#WW ON V113 uNhw wnuaa Jo A1MAO0 Ali !0rA z to cr c+ n 0 o F n r-4 t'. H F'. Cy Y" "J i? O F ~ S' L ,y V G1 H I i3 ~ O c} i ff ~r Li n V ✓ V ~J (Ak ~i (7 J. ~ LI) C 890 39Vf COR ICA! ~+1'Aw0 ~0 gglb s~sf ez a'Is ti.yw. +Nwl~OfIrot mom M p wed lug wnNn so 14 'V3 up MH sm NM04" sm ft 4M In$, '4" uewro V117 uk 'W f ~+uuo a uMrpo NM p 144 f A96-WARRANTY DEED-With Gmer.l.nd Copamion Admor.kd,tnmt. M"TIN Sutionv7 Co.. Dallu THE STATE OF TEXAS, Know All Alen By These Presents: EN . N County of..... T.Q . DEED RECORDS : VC-L bob Id6E 108 That NETTIE SHULT2, T. W. KING, JR., R. J. SAMUEL, TRUSTEES OF THE BELL AVENUE MEMORIAL CHURCH 9.8730 of the County of Denton , State of Texas for and in cowideration of the sum of--------------------------------------------------------------- -----------------------TEN 6 N01100 ($10.00)------------- DOLLARS, and other good and valuable consideration to it inbandpaidby the City of Denton, Texas bave Granted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto the said City of Denton, Texas, of the County of Denton , State of Texas all that Certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being part of the N. H. Meisenheime Survey, Abstract No. 811 and being parts of Lot Nos. 1, 2, 3 of the Lee Pool Addition, an addition to the City and County of Denton, and also be- ing part of a tract of land as conveyed from Albert W. Adkisson to V. L. McCart, T. W. King, Jr., and Al Petty, Trustees by deed dated May 20, 197 and recorded in Volume 622, Page 114 of the Deed Records of Denton County Texas, and more particularly described as followst BEGINNING at the southeast corner of said Albert W. Adkisson to V. L. Me.-Cart, et al tract, said point of beginning being the intersection of the north right of way line of Peach Street and the east right of way line of Bell Avenuef THENCE north 30 07' west, with the east boundary line of said tract, a distance of 513.64 feet to a point for a corner, same being the north- east corner of said tracts THENCE south 890 06' west with the north boundary line of said tract a distance of 60.15 feet to a point for a cornert THENCE south 30 07' east a distance of 511.87 feet to a point for a corns in the north right of way line of Peach Streets ,n THENCE south 890 13' east with the north right of way line of Peach Street a distance of 60.25 feet to the point of beginning and con- taining 30,867.85 square feet of land, more or less. 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 Nettie Schultz, T. W. Kingr Jr., and R. J. Samuel, Trustees for Bell Avenue Memorial Church, their successors end assigns forever; and we do hereby bind ourselves, our successors xAad:.pt eimtors and administrators, to Warrant and Forever Defend all and singular the said premises unto the Wd City of Denton, Texas, its successors . ~SLr#a and asatgns, against every person whomsoever lawfully claiming, or to claim the same, or any part thcreoL Aitnessour hard at Denton, Texas this day of September , A.D. 1976 witnesses at Request of Grantor: » T E ilLTZ »USTEE ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF_..... EN TON... NETTLE SHULT2, T. W. KIN(;, JR. I AND In and for said County, Texas, on this day persnally appeartd R. J . SAM TRt~STEES._.FOR..,BELL,._AVENUE_ MEMORIP,L.,.,CHURCH.......... _ . __s.•........ and off'cee gg Id alp Le the person.s~.abox name _L~.. a.e_.._.subscnbtd to the foregoing instrument, and acknowledged to me that , O'~`. he same for the purposes and consldcntion tberel ~~•r yEN'(fND MV HAND AND SEAL OF OFFICE Thb...... .day ember A.D.19.76..» ..~Ly Notary :•rV - Public,.-_._......-_.Q£fl~S)A. _County, less F1 V • K y f 1 ti VCL t J fAGE MV My Commission Expires June.._.. _.__1 14?7-.. ACKNOWLEDGMENT THE STATE OF TEXAS, BEF07E ME, the undersigned autbo,.ity, COUNTY _ _ in and for said County, Texas, on thboday personally appeared. known to me to be the person.»._.._...whose name_..._.__.._.-_..aubscribed to the foregoing instrument, and acknowledged to me that e-esecufM the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, Thb.._........_.___._day A.D. 19_ - Notary Tests My Commission Erytra 7~t _ ,19_....._... CORPORATION ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF__ In and for said County, Texas, on this day personally appeared.._._ _ . _ , known to me to be the pemoo and officer whose new Is subeuibed to the foregoing Instrument and acknowledged to me that the same was the act of the a corporation, and that he executed the same u the act of such corporation for the purposes and consideration therein expressed, and In she capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, Thlc........... _day of_......... A.D.19_~_.» Notary Public, .........County, Two > My Commission Erptres June. 19.._ THE STATE OF TEXAS, I. _ __.._.._.__.~.»_........~._._W_» . COUNTY County Clerk of the County Court of said County, do hereby certify that the foregoing instrument of writing dated on the__....._ . day of , A.D. 19,..+., with Its Certificate of Authentication, was filed for record In my office os the a•y A.D. 19 at_.__._o'clock..._.. and wu duly recorded dds..........._.. day of..._...._ A.D. 14 at.r_.._....... o'clock.___..._.__M.. In the Records of uid County, In Vol- too i on pages WITNESS sty hand and seal of the County Court of said County, at my office la _ _ _ . - - » . » the day and year Lst abow written. Clerk County .~,..._...,_......_....__-County, Tessa t .....w Deputy. o~ L b~ s,Nl L N4~ aiMiO ~ W►~a~^ooto'0 wti31~~►~0'" 1 y ~N O z i i~ ig 0~ "FE i ITLE INSURANCE Company of Dallas Cwner Policy of Title Insurance GFss 17804 USLIFE TITLE INSURANCE Company of Dallas, DALLAS, TEXAS, a Texas Corporation, HEREINAFTER CALLED THE COMPANY, for value does hereby guarantee to the herein named Insured, the heirs, devisees, executors and administrators of the Insured, or if a . corporation, its successors by disseluton, merger or consolidation, that is of the date hereof, the Insured has good and indefeasible title to the estate or interest in he land described or referred to in this policy. The Company shall not be I able in a greater amount than the actual monetary I^,ss of the insured, and in no event shall the Company be tiabie for more than the amount shown in Schedule A hereof, and shall, except as hereinafter stated, at its own cost defend the Insured in every action or proceeding on any claim against, or right to the estate or interest in the land, or any part thereof, adverse to the title to the estate or interest in the land as hereby guaranteed, but the Company shall nit be required to defend against any claims based upon matters in any manner excepted under this policy by the exceptions in Schedule B hereof or excluded by Paragraph 2, "Exclusions from Coverage of this Policy," of the Conditions and Stipulations hereof. The party or parties entitled to such defense shall within a reasonable time after the commencement of such action or proreeding, and in ample time for defense therein, give the Company written notice of the pendency of the action or proceeding, and authority to defend. The Company shall not be liable until such adverse interest, claim, or right shall have been held vt'id by a court of last resort to which either litigant may apply, and if such adverse interest, claim, or right so established shall be for less than the whole of the estate or interest in the land, then the tialitity of the Company shall be only such part of the whole liability limited above as shall bear the same ratio to the whole liability that the adverse interest, claim, or right established may bear to the whole estate or interest in the land, such ratio to be based on respective values determinable as of the date of this policy. In the absence of notice as aforesaid, the Company is relieved from all liability with respect to any such inter- est, claim or right; provided, however, that failure to notify shall not prejudice the rights of the Insured if such Insured shall not be a party to such action or proceeding, nor be served with )rocess therein, nor have any knowledge thereof, nor in any case, unless the Comr any shall be actually prejudiced by such failure. Upon sale of the estate or interest in the land, this policy automatically thereupon shall become a warrantgr's policy and the Insured, the heirs, devisees, executors and administrators of the insured, or if a corporation-its successors by dissolution, merger or consolidation, shall for a period of twenty-five years from date hereof remain fully protected according to the terms hereof, by reason of the payment of any loss he, they or it may sustain on account of any Coti warranty of tit0 contai.ed to the transfer or conveyance exe,:uted by the Insured conveying the estate or interest in the land. The Company shall be liable ur.der said warranty only by = reason of defect, liens or encumbrances existing prior to or at the date hereof and not 91EAL o excluded either l,y the exceptionlor by the Conditions and Stipulations hereof, such liability 'a not to exceed the amount of this policy. r~f~ Jf x ~5 S~n IN WITNESS HEREOF, the USLIFE TITLE INSURANCE Company of Dallas has caused this policy to be executed by its President under the seal of the Company, but this policy is to be valid only when it bears an authorized countersignature, as of the date set forth in Schedule A, Rsadenl s ch,er Ler,l,ve o/RCe, ABe,r Senior Vice President Secrelerrand rree;urer Aulhonied pnerure Formerly DALLAS TITLE AND GUARANTY COMPANY roxM m s zsns ersN Conditions and Stipulations 1. Definitions The following terms when used in this policy mean: (a) "land": The land described, specifically or by reference, in Schedule A, and impro+emer's affixed thereto which by law constitute real property. (b) "public records": Those records which impart constructive notice of matters relating to the land. (r.) "knowledge": Actual knowledge, not constructive knowledge, or notice which may be imputed to the Insured by reason of any public records. (d) "date": The effective date, including hour if specified. 2. Exclusions from the Coverage of this Policy This policy does not insure against loss or damage by reason of the following: (a) The refusal of any person to purchase, lease or lend money on the land. (b) Governmental rights of police power or eminent domain unless notice of the exercise of such rights appears in the public rec- ords at the date hereof; and the consequences of any law, ordinance or governme, regulation including, but not limited to, building and zoning ordinances. (c) Any titles or rights asserted by anyone including, but not limited to, persons, corporations, governments or other entities to tidelands, or lands comprising the shores or beds of navigable or perennial i ers and streams, lakes, bays, gulfs or oceans, or to any land extending from the line of mean low tide to the line of vegeta. Do, or to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or to filled-in lands, or artificial islands, or to riparian rights, or the rights or interests of the State of Texas or the public generally in the area extending from the line of mean low tide to the line of vegetation, or then - right of access thereto, or right of easement along and across the same. (d) Defects, liens, encumbrances, adverse claims against the title as insured or other matters (1) created, suffered, assumed or agreed to by the Insured at the date of this policy, or (2) known to the Insured at the date of this policy unless disclosure thereof in writing by the insured shall have been made to the Company prior to the date of this policy: or oss or damage which would not have been sustained if the Ins+_-red were a purchaser for value without knowledge; or the homestead or community property or burvivorship rights, if any, of any spouse of any Insured. 3. Defense of Actions (a) In all cases where this policy provides for the defense of any action or proceeding the Insured shall secure to the Company the right to so provide defense in such action or proceeding, and all appeals therein, and permit it to use, at its option, the name of the Insured for such purpose. Wherever requested by the Company, the insured shall give the Company all reasonable aid in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses, or defending such action or proceeding. (b) The Company shall have the right to select counsel of its own choice whenever it is required to defend any action or pro- ceeding, and such counsel shall have full control of said defense. (c) An action taken by the con- strued as an admission of liability, and the Companye hall not thereby be held to concede liability or dwalveoany prov s onbof this of the Insured or to establish the policy, 4. Payment of Loss (a) No claim shalt arise or be m;intair able under this policy for liability voluntarily assumed by the Insured In settling any claim or suit without written consent of the Company. (b) All payments under this policy, except payments made for costs, prtorney fees and expenses, shall reduce the amount of the Insurance pro tanto; and the amount of this policy shall be reduced by any amount the Company may pay under any policy insuring the validity or priority of any lien excepted to herein or any instrument hereafter executed by the Insured which is a charge or lien onthe!and, and the amount so paid shall be deemed a payment to the Insured under this policy. (c) The Company sh?II have the option to pay or settle or compromise for or in the nsme of the Insured any clgi:n i^sv eu agair.st by chi; policy, and such payment or tender of payment together with all costs, attorney fees and expenses which the Company Is obligated hereunder to pay, shall terminate all liability of the Company hereunder as to such claim, Further, the payment or tender of payment of the full amount of this policy by the Company shall terminate all liability of the Company u.-~der this policy. (d) Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the Insured, and it shall be subrogated to and be entitled to all rights and remedies of the Insured against any person or property In respect to such claim. The Insured, if requested by the Company, shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation, and shall permit the Company to use the name of the Insured in any transaction or litigation Involving such rights or remedies. B. Policy Entire Contract Any action, actions or rights of action that the Insured may have, or may bring, against the Company, arising out if the status of the title Insured hereunder, must be based on the provisions of this policy, and all notices required to be given the Compdry, and any state- Mont In vriting required to be furnished the Company, shall be addressed to USLIFE TITLE INSURANCE Company of 9ailes, 1301 Maio Stre *t, Dallas, Dallas County, Texas 75202. 6. This policy is not transferable. .1 . M co zggr oonDDD-4 -4 0 -I _0 C) <Tnn ao T MO L N X O a 'c y v? i < y r an d 7C N N. N. (D O CD d N N O O. N d O' d CD d (D ~ _ m ° T, n o N "co o>> m N 3 CD fD M v ~ f oz n o s~ u.~ m a~ m ^ 3 ' T7 N z0 ,nn' ri my obi x -0 m o m N m V1 r+,W+~ n D, y 7.~ y 1 n q O (n r J ~ N Z O T ~ N S G1 T ~ i T O < < < < < " v 5 v C+ z" n i T~ i n n°"= m ro ro ro ro ro"" v 2" n t c ism a n m~ u` a ~ n > ? > ? 3 " s c ~ 3 ? n • ~ ~ ZD m ~ m o • c n 0 3 >v 2 SCHEDULE A 1 q ppr~p Amount: $5,008140 by Owner Policy No.: U 1 158828 Gf No. or file No.: 17804 Date of Policy: September 16, 1976 Name of Insured: CITY OF DENTON, TEXAS, a Municipal Corporation 1. The estate or interest in the land insured by this policy is: Fee Simple (fee simple, leasehold, easement, etc. - ldrntify or describe) 2. The land referred to in this policy is described as follows: All tha; certain lot, tract or parcel of land lying and being situated 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 C. C. Mooneyham by deed dated June 28, 1937 and recorded in Volume 264, Page 562 of the Deed Records of Denton County, Texas and more particularly described as follows: 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 line 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, 1960; THENCE East along North boundary line of said Mooneyham Tract, same being the South right of way line of Eagle Drive a distance of 169 feet to a point for corner; THENCE South 826 53+ West a distance of 10418 feet to a point, said point being 13.0 feet South of North boundary line of said tract, same being th4 South right of way line of Engle Drive; , THENCE West 13 feet South of and parallel with the North boundary line of said tract, same being the South right of way of Eagle Drive, a distance of 65.0 feet to a point for a corner on the West Mboundary line of said tract; THENCE North along the West boundary line of said tract a distance of 13 feet to the place of beginning and containing 1,521.00 square feet of land, more or less. Donlon USLIFE TITLE INSURANCE Company of Dallae 1301 Maln Strout Daltao, Tutu 71202 ' ~ w I SCHEDULE B owner Policy No.: 1 158828 This policy is subject to the Conditions end Stipulations hereof, the terms and conditions of the leases or easements in- sured, if any, shown in Schedule A, anJ to the following matters which are additional exceptions from the coverage of this policy: 1. Restrictive covenants affecting the land described or referred to above. Norte of record. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments, or any overlapping of im- provements. 3. Taxes for the year 19_76_ and subsequent years, not yet due and payable. 4. The following lien(s) and all ternrs, provisions and conditions of the instrument(s) creating or evidencing said lien(s): None. 5. Any portion of the captioned property falling within the boundaries of any road, street or highway. 6. Visible and apparent easements on or across the property. r". M 7 1n..r[ 1 R➢ 411. 229Mst Hickory Box 518 Denton Texas 76201 817 387 6148 UW FE TITLE Company of Denton September 21, 1976 Mr. Paul Isham City Attorney Municipal Building Denton, Texas 76201 Re: Vellettia Mooneyham at al- Sale - City of Denton Dear Sir: We are enclosing Owners Title Policy No. 1 158828 which covers the above transaction. If we can be of further service to you in the future, please call us. Thanking you we remain, Very truly yours, USLIF'E TITLE CO. OF DENTON By: Ottis Akers OA/bp encls S~ PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER ir, 1976 5 NEW ISSUE a ~ $501000,000 o$ Texas Municipal Power Agency Revenue Bonds, Series 1976 Dated. September 1, 1976 Due: September 1, as shown below R-C Principal and semi-annual interest (March 1 and September 1, first coupon due March 1, 1977) payable at the principal office of Mercantile National Bank at Dallas, Dallas, Texas, or, at the o option of the holder, at Manufacturers Hanover Trust Company, New York, New York. Coupon d P Bonds In the denomination of $5,000, registrable as to principal only. o'a The Series 1976 Bonds are subject to redemption prior to maturity at the option of the Agency v % g on and after September 1, 1986 in whole on any date or in part on any interest payment date at a redemption price of 103% of the principal amount thereof plus accrued interest and at &M declining redemption prices thereafter, as more fully described herein. The Series 1976 Bonds due September 1, 2005 and September 1, 2011• are subject to mandatory redemption in part by lot prior to maturity at a price of 100% of the principal amount thereof plus accrued s S „ Interest, as more fully described herein. 1391 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT $ g FEDERAL INCOME TAXES UNDER EXISTING LAWS AND REGULATIONS. b q _ The Series 1976 Bonds are being issued to provide funds to pay preliminary costs in con- E v nection with a plan to secure power supply resources for the Cities of Bryan, Denton, Garland ' $ o and Greenville, Texas. A portion of the proceeds will be used to redeem the Agency's Series g 1975 Bonds. the Series 1976 Bonds are payable solely from and equally secured by the Net 3 Revenues of the Agency p'edged therefor and the Bond Fund and other funds established by the Resolution. The Citier, have entered into Power Sales Contracts with the Agency which ,,'pp 3 provida that all payments thereunder shall constitute operating expe;-es of the Cities' electric S ° systems and further provide that, as more fully described herein, whenever the amount of money on deposit in the Bond Fund is less than the amount required by the Resolution, the E v A Cities will pay directly into the Bond Fund ar, amount sufficient to establish the amount required, under the terms of the Resolution, to be on deposit In the Bond Fund. The Agency HE has no taxing power. The State of Texas shall not be liable on the Bonds and the Bonds shall 8 not be a debt of tha State. Rot MATURITIES, AMOUNTS', RATES AND YIELDS OR PRICES $13,845,000 Serial Bonds 9 r o Yield Yield ffl Due or Due or : t; September 1 _4mount•- Role Price September 1 Amount' Rate Price "~.9 1983 $6-,•0,000 1990 $ 985,000 9-32 1984 720,000 1991 1,040,000 5 ~ 1 1985 760,000 1992 1,100,000 d 1986 705,900 1993 1,165,000 1987 840,000 1994 1,235,000 a 1988 880,000 1995 1,310,000 € 1989 930,000 1996 1,395,000 919 8 0 $17,435,000 % Term Bonds due September 1, 2005 @ % 5t $18,720,000 % Term Bonds due September 1, 2011 @ % (Accrued interest to be added) Exact principal amounts to be determined upon sale of Series 1976 Bonds. The Series 1978 Bends are offered when, as and it issued and received by the Underwriters, and subject to the approval of legality by the Attorney General of the State of Texas and Messrs. Dumas, Huguenln, Boothman and S orrow, Dallas, Texas, Bond Counsel. Certain legal matters will be passed upon for the Underwriters by Messrs. - Mudge Rose Guthrie 8 Alexander, New York, New York, and for the Agency by Its General Counsel, Messrs, e Naman Howell, Smith 8 Chase, Waco, Texas. It Is expected that the Series 1976 Bonds in definitive form will V .S be available for delivery in New York, New York, on or about October 7, 1978. M-1 Salomon Brothers Merrill Lynch, Pierce, Fenner & Smith Iocorporaled Smith Ba;iney, Harris Upham & Co. Incorporated September 1976 TEXAS MUNICIPAL POWER AGENCY 7111 Bosque Boulevard, Waco, Texas 76710 817.776-4100 BOARD OF DIRECTORS Cn"LEs E. DvcxwORTH, President GARLAND TRAvis BRYAN III, Vice President BRYAN JIM WHITE, Secref M Treasurer DENTON A. P. C'HAPMAN GFSENVILLE LoHN T. GRIFFL~I CREENVILL£ D KRAvsE GARLAND ERNIE Tmim DENTON JAMES T. WRIGHT BRYAN PAUL CUNNINGHAM, P,E............................... ExEcurIvE DIRECTOR d Management and administrative services are provided to the Agency by Texas Power Pool, Inc. PAUL CVNNINGHAIN, P. E. . Executive Director A. HARDY EURANxs, III Assistant Executive Director Administration and Finance F. K. SMITH, P.E. . . . Project Director THOMAS MvRRELL, P. E. Senior Planning Engineer EDwARD CEEB, P.E........... . . Project Engineer Lm DIRTING . Resource bfam;gement Specialist GENERAL COUNSEL NAMAN, flowELL, S%fITH & CHASE'{ Waco, Texas BOND COUNSEL D MIAS, HUGUEMN, BMW' AN AND MORROW' Dallas, Texas CONSULTING ENGINEERS R. W. BECK A" AssoaAm Seattle, Washington PROJECT DESIGN -PLANT TIPPETT & GEE} Abilene, Texas MINING ENGINEERS AND GEOLOGISTS PAUL WEIR COMPANY INCORPORATED} Chicago, Illinois SITE AND ENVIRONMENTAL STUDIES TERA CORPORATION} Berkeley, Californfa FINANCIAL ADVISORS FAST SOUTHWEST COMPANY' Mercantile Bank Building Dallas, Texas 73241 • Retained by thj Agency. } Retained by Texas Power Pool, Inc, i No dealer, broker, salesman or other person has been authorized by the Texas Municipal Poker Agency or by the Underwriters to give any information or to make any representations, other than as contained in this Official Statement, and if given or made such other information or representations must not be relied upon as hating been authorized by the Agency or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds, by any person in any jurisdiction in tvhfch it is unlawful for such persons to make such offer, solicitation or sale. The information set forth herein has been furnished by the Texas Y-micipal Potver Agency and includes information obtained from other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriters. The information and expressions of opinion contained herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Agency since the date hereof. TABLE OF CONTENTS Page rage Introduction 1 Description of Certain Provisions of the The Agency 2 Resolution 21 Applicat;on of Series 1976 Bond Proceeds 2 Pledge of Revenues and Funds; Application Security for the Bonds 3 of Revenues 9.1 Revenue Fund 22 ym Operating, of Bond Fund . 42 Pa gents to Constitute Expenses , City System 3 Reserve Fund 22 Rates and Charges 3 Contingency Fund 22 Obligation of Cities to Pay Under the Construction Fund 23 Contract 4 Imestment of Moneys in Funds 23 Cities Electric Systems . 4 Additional Bonds 23 Bryan 6 Refunding Bonds 24 Denton . 6 Subordinated Indebtedness 24 Garland 6 Incurrence of Other Indebtedness 24 Greenville 7 Covenant as to Rates and Charges 24 Operating Statistics 8 Certain Other Covenants 24 Operating Results 10 Amendment of Resolution 26 Projects Under Development and Consideration.. 12 Discharge of Indebtedness , . 26 Bryan Lignite 12 Notice of Redemption of Bonds 27 Comanche Peak 13 Events of Default and Remedies of Holden . , 27 Other Studies end Facilities . 13 Litigation . 28 Texas Power Pool, Inc, 14 Tax Exemption 28 Brazos Electric Power Cooperative, Inc, 14 Certain Legal platters 28 Public Utilities Commission 14 Legal Investment hi Texas . 28 Interstate Transmission 15 Underwriting 29 i Description of the Series 1978 Bonds 15 Appendices Optional Redemption 15 Appendix A - Letter of R. W. Beck Mandatory Redemption of Term Bonds...... 16 and Associates A•1 Debt Service Requirements for Append'u B-Letter of Paul Weir Series 1976 Bonds . 17 Company Incorporated B-1 Description of Cerlaln Provisions of the Appendix C - City of Bryan- Power Sales Contract 18 Financial Statements C•1 Sale of Power and Energy 18 Appendix D-City of Denton- Purposes for Which Bonds May Be Issued; Financial Statements D•1 Approvals Required 18 AppendixE - CityofGarland - Electlon of Options Upon Disapproval 18 Financial Statements , E•1 Appends and Charges " " ' 19 Financial F-City StatemenGreenville- nt , F•1 Payments by Cities . 19 Exhibits Re-creation of Agency . 20 Exhibit I - Form of Legal Opinion Rate Covenant of Cities 21 of Bond Counsel 1.1 Sale of Electric Distribution System by Exhibit II - Glossary of Certain Terns Used Cities; Assignment of Rights 21 In the Contract and the Resolution 11.1 Amendments 21 1♦ OFFICIAL STATEMENT OF THE TEXAS MUNICIPAL POWER AGENCY Relating to its $50,000,000 REVENUE BONDS, SERIES 1976 INTRODUCTION The purpose of this Official Statement, which includes the cover page, appendices and exhibits hereto, i, to set forth information concerning the Texas Municipal P.,wer Agency (the "Agency"), the Cities of Bryan, Denton, Garland and Greenville, Texas (the "Cities"), and the $50,000,000 Reve- nue Bonds, Series 1976, being offered hereby (the "Series 1976 Bo- Is"). I The Series 1976 Bonds are to be issued pursuant to Chapter 166, Acts of the 63rd Legislature, Regular Session, 1973, as amended by Chapter 143, Acts of the 64th Legislature, Regular Session, 1975, codified as Article 1435a, R.C.S., 1925, as amended (the, "Act"), and the Bond Resolution (the "Resolution") of the Agency adopted on , 1976. The Series 1976 Bonds and any addi- tional bonds which may be issued pursuant to the Resolution are hereinafter referred to as the "Bonds". In 1961, the Cities of Bryan, Garland, and Greenville and the Brazos Electric Power Cooperative, Inc., a generation and transmission cooperative operating in central and north central Texas ("Brazos"), formed the Texas Municipal Power Pool to gain operating and economic advantages of pooling their electric generating resources. The City of Denton joined in 1969. In 1975, the Agency and Brazos created Texas Power Pool, Inc., a 'texas not for profit corporation (the "Corporation"), to pursue certain joint functions of the Agency and Brazos. In a recent mem- orandum of agreement, the Agency and Brazos have determined to discontinue pursuing joint functions through the Corporation. Most of the present generating facilities of the Cities use natural gas as the primary fuel. Rapidly increasing costs and decreasing availability of natural gas and fuel oil make it necessary that other fuels be considered for utilization ;n new generating facilities. The Agency was created by the Cities in 1975 to obtain the economic advantages of financing, constructing and operating large generating units using fuel other than natural gas and fuel oil to serve all four Cities. The Agency has entered into an Identical Power Sales Contract with each of the Cities (the 'Contract") under which the Agency has undertaken to provide power and energy to the Cities over and above amounts provided by the Cities for themselves within the limitations established in the Contract. The Contract requires the r.pproval by the Cities of any Project to be financed by Bonds. Each City's obligation to make the payments under the Contract will be an operating expense of its electric system payable solely from the revenues and receipts of such electric system. In addition to their obligation to pay for power and energy, the Cities unconditionally covenant in the Contract that, as more fully described under "Security for the Bonds - Obligation of Cities to Pay Under the Con- tract". whenever the amount of money on deposit in the Bond Fund, established for the payment of If Bonds, Is not the full amount required tq be on deposit therein, they will pay directly into the Bond Fund an amount sufficient to establish the amount required, under the terms of the Resolution, to be on deposit in the Bond Fund. The Agency Is pursling a plan to secure power supply resources to meet the needs of the Cities through 1986. The Agen; y presently contemplates (1) construction of the Bryan Lignite Project, b proposed 400-MW lignite-fueled steam electric generating plant and includes an adjoining tignlte I strip mine and related facilities ("Bryan Lignite"), (2) acquisition of a 6.2 percent ownership interest in the Comanche Peak Steam Electric Station (`Comanche Peak"), a nuclear generating plant pres- ently under construction by the Texas Utilities Company, through subsidiary coripanies, (3) expan- sion of communication and transmission facilities, and (4) fuel exploraticn and other engineering studies. Bryan Lignite, the only Project which has been approved under the Contract, is in the very early stage of steam plant design and approaching the final phase of fuel exploration and study. Acquisition of the fuel supply and related items has been started. The Agency issued in 1975 its $10,625,000 Revenue Bonds, Series 1975 (the "Series 1975 Bonds") to finance its portion of certain activities of the Corporation, primarily preliminary studies and the acquisition of certain rights to lignite reserves in connection with Bryan Lignite. The Series 1976 Bonds will provide funds to redeem the Series 1975 Bonds, to enable the Agency to maintain progress on, and refine present information with respect to, Bryan Lignite, and for certain other purposes. This Official Statement includes descriptions of the terms of Bonds, the Contract, the Resolu- tion and certain provisions of the Act. Such descriptions do not purport to be complete and all such descriptions and references to the Contract, Resolution and Act are qualified in their entirely by reference to each such document, copies of which may be obtained from the Agency or First South- west Company, Financial Advisors to the Agency. A glossary of certain of the words and terms defined in the Contract and in the Resolution appears as Exhibit If to this Official Statement. THE AGENCY i The Agency is a municipal corporation, a political subdivision, and a body politic and cor- porate of the State of Texas. It is empowered to plan, finance, acquire, construct, own, operate and maintain facilities to be used in the business of generation, transmission and sale to or exchange of electric energy with the Cities and any private entities which are joint owners with the Agency of an electric generating facility located within the State of Texas. The Agency is governed by a Board of Directors consisting of eight members. The governing bodies of the four Cities each appoint two members to the Board. Terms of membership are two years, except for the initial appointments, wherein the governing body of each City appointed one member for a one year term and one member for a two year term. An affirmative vote of five directors, plus a weighted majority vote based on energy usage of the Cities, is required for major decisions. Under the Act, the Agency has powers of eminent domain. "The property of the Agency and receipts and revenues derived from the sale of power and energy by the Agency, In the opinion of General Counsel, are exempt from taxation by the State of Texas and its subdivisions. Under the terms of certain agreements among the Agency, Brazos, the Corporation and the Cities, certain services have been provided by the Corporation. These services include (1) project development for the Agency and Brazos, such as contracting with the engineers retained for project development and the acquisition of fuel supplies, and (ii) complete management and administrative services for the Agency. The Agency intends to assume direct management and administration of 4 Its own affairs In the near future, (See "Texas Power Pool, Inc") APPLICATION OF SERIES 1976 BOND PROCEEDS Bond proceeds primarily will provide funds for lignite acquisition and other preliminary Bryan Lignite costs and for other facilities, and studies relating to the securing of power supply resources. Bond proceeds will also be used to redeem the Series 1975 Bonds at par, pay interest on the Series 1976 Bonds through September 1, 1978, deposit in the Reserve Fund an amount equal to the average annual d6t service for the Series 1976 Bonds, and pay costs of issuance of, and Bond discount on, the Series 1976 Bonds, 2 The Ayency estimates that the proceeds of the Series 1976 Bonds, excluding accrued interest, will be r.pplied approximately as follows: Bryan Lignite $22,664,000 Transmission and communication facilities and fuel exploration and acquisition 4,387,000 Preliminary power resource studies 1,432,000 Sub-Total $2S,4S3,000 Provision for the redemption of the Series 1975 Bonds, including accrued interest (net of $850,000 in Series 1(615 Bond Reserve Fund) 9,821,000 Interest through September 1, 1978 on Series 1976 Bonds 6,416,000 Deposit in Reserve Fund 3,780,000 Allowance for cost of issuance and Bond discount . 1,500,000 r Total $50,000.000 An amount equal to the interest to accrue on the Series 1976 Bonds from the date thereof through September 1, 1978 kill be deposited into the Bond Fund and be used to pay interest on the Series 1976 Bonds during such period. Additional interest during construction may be funded with each subsequent series of Bonds until Bryan Lignite is completed and in operation, presently targeted for the summer of 1941. Except as might be required to fund any ownership interest the Agency may acquire in Comanche Peak, the Agency does not presently anticipate the Issuance of additional Bonds within the nest twelve months. (See "Projects Under Development and Consider- ation.") SECURITY FOR THE BONDS Pledge The Bonds will be payable from and equally secured by an irrevocable first lien on and pledge of the Net Revenues of the Agency, the Revenue Fund subject to payment of Operating and Maintenance Expenses, and all other funds established by the Resolution. From the proceeds of the Series 1976 Bonds, an amount equal to interest oi- such Bonds through September 1, 1978, will be deposited into the Bond Fund, and an amount equal to the average annual debt service with respect to such Bonds will be deposited into the Reserve Fund. The Agency has no taxing power. The State of Texas shall not be liable on the Bonds and the Bonds shall not be a debt of the State. Payments to Constitute Operating Expenses of City System Each City~s obligation to make the payments to the Agency under the Contract will be an operating expense of its electric system payable solely from the revenues and receipts of such electric system. The Contract requires each City to establish, maintain and collect 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 the Contract. Rates and Charges The Agency has the power under the Act to, and covenants in the Resolution that it wi11 at all times, fix, establish and collect rates and other charges for power and energy, or services, sold or f uTJshed by it, which, together with other income, are reasonably expected to yield Net Revenues equal to at least 1.25 times the Debt Service (excluding capitalized interest) of all outstanding Bonds for the fiscal year for which such rates and charges shall apply. The Agency further covenants in the Resolution thet, promptly upon any material change In the circumstances which were contem- plated at the time such rates and. charges were most recently reviewed, but not less frequently than once In each fiscal year, it Wig review the rates and charges for electric power and energy and 3 se: vices and will as necessary revise such rates and charges to comply with the foregoing requirement. The Agency further covenants that such rates, charges, and income shall in any event produce moneys suf5cimt to enable the Ag~-ncy to comply win, all its covenants under the Resolt and to pay all obligations of the Agency. 'rho State of Texas reserves its power to regulate and control such rates and charges, but has pledged to the purchasers and hold.rc of obligations issued under the provisions of the Act, that "the state will not limit or alter the powers hereby, vested in the agency to establish and collect such rates and Charges as will produce revenues sufficient to pay for (1) all necessary operational and mrdntenance expenses, (2) all interest and principal on obligations issued by the agency, (3) all sinking funds and reserve fund payments, and (4) for any other charges necessary to fulfill the terms of any agreements theretofore made or in any way to impair the rights or remedies of the holders of the obligations, until the obligations, together with the interest thereon, with interest on unpaid installments of interest, and any other obligations of the agency in connection therewith, are fully met and discharged." (See "Public Utilities Commission.") Obligation o/ Cities to Pay Under the Contract Under the Contract each City agrees to purchase power and energy from the Agency in accord- ance with the provisions thereof. The Contract is hereafter describ,. 3 under the caption "Description of Certain Provisions of the Power Sales Contract". The Contract provides that in any instance where the amount of money on deposit in the Bond Fnn3 Is not the full amount then required to be on deposit therein withcut giving consideration to transfers made from other than ti.? Revenge Fund or from Bond proceeds (provided that transfers may be made from the Reserve Fund to the Bond Fund for not more than tvvo (2) consecutive calendar months) each City shall be obligated to make a payment from the revenues of its electric system, the aggregate amount of which shall be the amounts that are necessary to establish or re-establish the amount then requlred, under the terms of the Resolution, to be on deposit in the Bond Fund, Reserve Fund and Contingency Fund. The percentage share of the payment to be made by each Cray shall initially be as follows: City of Bryan 22.73% City of Denton 20.34% City of Garland A7.6Vo City of Creenville 9,27% Total 100.000/0 Such percentage- share of the payment to be made by each City shall be adjusted based on the percentage that each City's system load bears to the aggregate system load of the four Cities, as explained under "Description of Certain Provisions of the Power Sales Contract - Payments by Cities". Each City unconditionally covenants in the Contract that the above payments to the Bond Fund, Reserve Fund and Contingency Fund will be made, if required, and the Cities shall have no right of setoff, recoupment or counterclaim against any such payments. CITIES' ELECTRIC SYSTEMS Each of the Cities operates a municipal electric system, the aggregate generating capability of which Is presently 798 NINN', With the completion of two generating units in Bryan and Creen ille presently under construction, the aggregate generating capability of the Cities will be 938 DIW In 1978. In 1975 the Cities provided electric service to almost 84,000 customers. Revenues derived from sales of electilcity In 1975 were approximately $48 million and system energy requirements were slightly in excess of 2 billion kilowatt-hours. Studies prepared by the Consulting Engineers, R. W, Beck and Associates, Indicate the need for additional generating capabilit, to meet a projected 4 aggregate capability deficiency of 79 MW in 1931, increasing to an aggregate deficiency of 493 MW in 1939. Most of the generating facilities of the Cities use natural gas as the primary fuel. The Cities purchase natural gas under separate take or pay contracts with the Lone Star Gas Company ("Lone Star") and under a joint take or pay contract with Delhi Gas Pipeline Company ("Delhi"). During the twelve months ended August 31, 1976, the Cities aggregately purchased approximately 85% of their total natural gas usage from Lone Star and approximately 1570 from Delhi. The Cities' contracts with Lone Star have similar terms and conditions and expire on December 31, 1979. The Cities are negotiating for a five-year extension of these contracts. The price of this natural gas is redetermined monthly and is based on a base price plus the weighted average price of the gas puuchased by Lone Star, less 1.3¢ per thousand cubic feet. The average price to the Cities during tho summer of 1976 was approximately $1.10 per million Btu. Deliveries under the Lone Star con- tracts are curtailable. In 1973, the Cities, having been informed by Lone Star that future curtailments would be forthcoming, entered into the De hi contract which expires in 1993. Under this contract, the Cities are obligated to take or pay for 807, of the deliverable capacity of certain wells within a specified area. The Cities have taken the position that a certain amount, approximately 25p1o. of the gas now being delivered to the Cities by Delhi is not covered by the Delhi contract and therefore is not subject to the take or pay provisions of that contract. This question is presently being negotiated by the Cities and Delhi. The price of all gas delivered to the Cities by Delhi is adjusted annually, on each September 1, based on the cost of gas purchased by Delhi, plus Delhi's operating expenses associated with the gas, an amortization of capital invested in obtaining the gas, and a return on invested capital. The average cost to the Cities during the summer of 1976 was approximately $1.98 per million Btu. On September 1, 1976, the Cities and Delhi agreed that the cost of the gas pur• chased by Delhi should be $1.75 per thousand cubic feet, as compared to $1.524 for the previous twelve month period, a determination which substantially increases the cost of this gas. The other price components are being deter,nlned. Deliveries under the Delhl contract are not curtailable, but are expected to decrease rapidly as available reserves In the field dedicated under the Delhi contract are exha rsted. All such deliveries are made at Denton and the gas used by the other Cities is displaced and exchanged to them by Lone Star under a gas exchange agreement which terminates in November 1976. The Cities are negotiating with Lone Star for a continuation of such services. During the twelve months ended August 31, IWO, the Cities, primarily Bryan, aggregately experienced curtailments equal to approximately 2,47c of their total g is usage during such period. The approximate average daily gas usage for the Cities for the twelve r ionths ended August 31, 19711 was as follows: Bryan 16,700 MCF Denton 14,675 MCF Garland . _ „ 29,300 bICF Greenville 6,950 MCF Total 67,325 MCF Lone Star has not curtailed deliveries of its gas to the Cities to the extent the Cities had been led to expect in 1973. Greenville and Denton have not been taking their contract quantity of gas from Lone Star and are now negotiating Lone Star's claims of additional payments due to Lone Star under the penalty provisions of the gas supply contracts. As a result, some Cities have exchanged power between themselves in an effort to minimize the effect of the aforesaid penalty provisions. The Railroad Commission of Texas has general regulatory authority over intrastate gas pipeline companies including certain matters relating to rates and the apportionment of gas when in short supply when required in the public interest, On March 3, 1976, the Railroad Commission of Texas 5 ordered that the use of natural gas as a boiler fuel in Texas be substantially curtailed. From Jan- uary 1, 1981 to December 31, 1984, deliveries under existing contracts are to be reduced by 10% of the amount delivered in 1974 or 1975, whichever was greater. Beginning January 1, 1985 gas deliveries are to be reduced by 254$ of the amount delivered in 1974 or 1975, whiche-mr was greater. No gas transactions Involving the delivery of o-er 3,000 MCP of gas per day for use as a boiler fuel are to be subsequently entered into or extended unless the Railroad Commission determines it is in the public interest. Should the Cities and Lone Star agree to extend their contract until 1984, this approval would be required. Each City has limited fuel oil storage facil ties and xrtain gen:-acing units capable of using fuel oil as a standby fuel. The aggregate capacity of fuel oil storage facilities available to the Cities is approximately 349,000 barrels. The aggregate generating capability of units capable of using fuel oil on a continuous basis is 362 MW, with an additional 187 MW on a limited basis, Bryan The City of Bryan is the County Seat for Brazos County, and is located in the central-eastern portion of the State about 100 miles northwest of Houston. The U.S. Bureau A the Census estimated the 1973 population to be 36,583, an increase of 8.4% from the 1970 Census and 3270/c from the 1960 Census fig tres. The Bryan electric system has one generating plant with six gas-fired sir rn turbine generating units and one combustion turbine generator. A new gas-fired steam turbine generating unit having a capability of 100 MW is under construction, estimated to be completed in December 1977, which will give the City an aggregate capability of 241 MW. Bryan currently supplies the City of College Station (home of Texas A&M University, which enrolls about 21,500 students) with all of its electric energy. Such energy Is distributed among approximately 4,900 c•sstomers in that City. Bryan'- contract with College Station expires January 25, 1919, and it Is expected that Bryan will not sell energy to College Station beyond the date. The Consulting Engineers were advised to reflect no sales to College Station subsequent to the termination of the contract In their report and have done so. For the year ended December 31, 1975, College Station purchased approximately 27.87c of the electricity energy sold by the City of Bryan. The City of Bryan operates its electric, water, and sewer systems as a single municipal utility. As of September 1, 1970, the City of Bryan had $44,290,000 principal amount of utility revenue bonds outstanding. Denton The City of Denton Is the County Seat for Denton County, and is located within 38 miles of both downtown Dallas and Fort North and 18 miles from the Dallas-Fort Worth Regional Airport. The U.S, Bureau of the Census estimated the 1973 population to be 43,839, an incrrase of 9.4% from the 1970 Census and 62.5% from the 1900 Census figures. The Denton electric system has five diesel generating units and five gas-fired steam turbine units with an aggregate capability of 189 MW. The City of Denton operates itr electric svstem as a separate utility. As of September 1, 1976, ~ the City of Denton had $18,978,000 principal amount of electric revenue bonds outstanding. I Garland The City of Garland is located in northeast Dallas County, approximately 14 miles from down- town Dallas. The U.S. Bureau of the Census estimat-.J the 1973 population to be 101,099, an increase of 24.1% from the 1970 Census and 1133°1; from the 1980 Census figures. The Garland electric system hi two gas-fired steam generating plants and one diesel generating plant having an aggregate capotiaty of 428 MW. 6 Texas Power be Light Company has operated in Garland since 1915, and currently serves about 15% of the electric customers in the City. The City of Garland operates its electric, water and sewer systems as a single municipal utility. As of September 1, 1970, the City of Garland had outstanding $73,435,000 principal amount of utility revenue bonds and $5,710,000 principal amount of certificates of obligation secured by a pledge of the City's taxing power and surplus sewer system revenues. Greent>ifle The City of Greenville is the County Seat for Hunt County, and is located 45 miles northeast of the City of Dallas. The U.S. Bureau of the Census estimated the 1973 population to be 21,141, a decrease of 4.2% from the 1970 Census, but an increase of 10.7% from the 1%0 figures. The Greenville electrir system has two gas-fired steam turbine generating units, with a third unit under eonstruMion. The Cuy also has a gas fueled diesel electric generator for use during periods of peak demand. With the expected completion in May 1977 of the 42-MW unit under construction, the aggregate capability of the system will be 100 WN1. The City of Greenville operates its electric, water anti sewer systems as a single municipal utility. As of September 1, 1970, the City of Greenville had $23,504,000 principal of utility revenue bonds outstanding. i 7 Operating Statistics 1972 1973 1974 1975 1976•_ City of Bryan Average Number of Customers Residential 9,307 9,634 9,849 11,268 11,580 Commercial 9r Industrial 1,685 1,645 1,651 1,715 ],750 Other 4 4 4 4 4 Total Customers -767996 11 283 11,504 12,985 13,334 Kdowat6llcur Sales (000) Residential 87,368 92,641 99,575 101,910 109,000 Commercial h Industrial ]10,606 116,441 126,822 123,461 132,000 Other (I)(2) 153,4;18 176,591 191,411 213,519 228,400 Total Sales 351,382 585,673 417,838 438,920 469,400 Average Cost (¢/kWh) Residential . 1.85 1.97 2.17 2.57 3.46 All Other I it L26 1.41 1.83 2.43 City of Mnion Average Number of Customers Residential 10,1S4 10,268 10,850 11,030 11,290 Commercial to Industrial 1,747 2,299 1,829 2,038 2,089 Other . 47 48 273 273 277 Total Customers 11,948 -i 12 Kilotvalt-Hour Sales (000) 615 ]2,952 13,342 13,650 Residential . 105,412 104,100 106,i51 105,203 115,723 Commercial h Industrial . 227,706 238,135 251,315 276,168 282,300 Other(2) 18,002 20,603 20,906 21,105 21,471 Total Sales 351,720 362,838 378,532 402,478 419,500 Average Cost (4/kWh) Residential . 2.06 2.20 2.42 3.09 3.82 All Other 1,30 1.51 1.66 2.05 2.53 City of Carl and Average Number of Customers Residential 22,266 23„554 25,096 26,474 29,121 Commercial h Industrial 1,736 1,892 2,&14 2,061 2,267 Other , 1 1 2 2 2 Total Customers 24,003 23,447 27,170 28,537 31,390 Kilowatt-flour Sales (000) Residential 333,556 387,238 35),802 456,158 490,450 Commercial h Industrial . 318,499 418,141 417,604 466,969 533,477 Other(2) 12,362 22,123 21,059 25,670 20,200 Total Sales 694,417 827„502 838,963 948,797 1,044,127 Average Cost (0/k%V'h) Residential 1.59 1,616 1.92 2.34 2.92 All Other 1.41 1.49 1.60 2.27 2.64 City of Greenville Average Number of Cusr3mec • Residential 7,433 8,438 8,015 7,721 7,646 Commercial h Industrial . . 1,161 1,130 1,035 1,028 1,156 Other . 0 J 0 1 5o Total Customers 8,594 9,916 9,050 8,756 8,852 Kilowatt-flour Sales (000) Residential -11 87,233 92,714 93,173 73,563 70,958 Commercial h Industrial . . 58,205 61,810 62,911 103,620 108,307 Other(2) 0 0 0 5,889 5,22.1 Total Sales 145,438 154,524 158,084 193,052 184,485 Average Cost (O/kWh) _ Residential All Other # 1.89 2.00 2,20 1.73 329 Total Average Number of Customers . 55,541 58,911 60,676 63,619 67,232 Total Kilowatt Noi Sales (000)(2) 1,542,957 1,730,537 1,792,719 1,973,245 2,117,512 ' Estimated by khe Cities and reAewed by the Consulting Engineers. (1) Includes sale of power to the City of College Station. (Q) Does not Include sales to the other Cities and Brazos. 8 [THIS PAGE INTENTIONALLY LEFT BLANK) • • I P I 9 Operating Results The following table shows historical and projected operating results for the Cities. The informa- tion presented has been summarized from data contained in the Consulting Engineers' report and the Cities' financial reports. (See Appendices C, 1), E, and F for financial statements of the Cities for their fiscal years endrd in 1975) (Dollars in Thousands) Bryan(&) Electric System: 1972 1973 1974 1973 1976 Revenues: Residential $1,617 $1,829 $2,159 $2,624 $ 3,768 Commercial and Industrial 1,642 1,920 2,286 2,771 4,023 Other(d) 1,488 2`004 2,487 3,662 5.542 Total . . . . $4,747 $5,759 $6,932 19,057 $13,333 Expenses: Fuel $1,116 $1,789 $2,514 $4,163 $ 6,90°, Other 947 I u76 1,361 1,576 1787 Total $2;063 $2,865 $3,875 $5,741 L 8M Net Operating Revenues $2,684 $2,694 $3,057 $3,3.8 $ 4,641 Non-Operating Revenues (Net) (e) _ (e) {e) _ e (e) Total Electric System Net Revenues . $2j684 $2j894 $_.33057 x3,316 $ 4,641 Water and Sewer Systems: Revenue(g) $1,864 $1,882 $2,021 $1,988 S 2,251 Expenses 628 _ 702 SIG 933 1,079 Total Water tx Sewer Net Revenues 41,236 $1,160 $1,213 $1,053 $ 1,172 Other Non-Operating Revenues (Net) 348 238 254 493 4922 Total Net Revenues 44,288 $4,38) $4,524 $4,864 $ 6,305 Debt Service on tltdity Revenue Bonds(i)(I) $1,529 $1,654 $1,672 $2,095 $ 3,014 (a) Operating Results are shown for the fiscal year ended June 30 for Bryan, and for the fiscal year ended Stptember 30 for Denton, Garland and Greenville. (b) Estimated by the Cities. Electric System operating results reviewed by the Consulting EngLieers, Assumes no sales to the other Cities or Brazos since such sales In the past were not material. (c) Prior to 1975 Commercial and Industrial Revs nues were contained In Residential Revenue category. (d) For Bryan, includes sale of power to the City of College Station. (e) Included In Other Non-Operating Revenues (Net). (f) Not estimated by the City, 10 Bryan, Garland and Greenville each operates its electric, water, and sewer systems as a single municipal utility, while Denton's electric system is operated as a separate utility. (Dollars in Ihousands) Denton(a) Carland (a) Greenville( 1) 1979 1973 1974 1975 1976(b) 1972 1973 1974 1975 1976(b) 1972 1973 1974 1975 1976(b) 0 .$2,172 $2,291 $2,572 $3,252 $ 4,429 $ 5,310 $ 6,445 $ 7,685 $10,671 $14,337 $2,724 $3,180 $3,449 x:2,898 $2,593 9,946 3,602 3,900 5,656 7,181 4,575 5,745 6,684 10,524 14,130 (e) (e) (c) 1,817 3,479 347 367 147 805 677 825 1,141 838 1,044 874 42 40 73 112 924 $5x65 $6,280 57,219 59,513 512,981 $10,7x0 $13,331 $15,205 $22,239 $29,341 $2,766 $3,820 $3,529 $4,827 $6,293 $1,156 $1,882 $2,340 $4,622 $ 6,496 $ 2,112 $ 3,981 $ 4,170 $10,298 $16,146 $ 500 $ 007 $1,079 $2,568 $3,402 1,339 1,524 1,607 1=855 1,981 2,440 9,744 3,057 3,455 4,118 8W 870 919 543 1,082 $2495 $3400 $3947 $6477 $ 8,467 $ 4,552 $ 8,795 $ 7,927 $13,753 $20,264 $1,305 $1,777 $1,998 $3 Ill $4,484 $2,970 $2,874 $3,279 $3,036 $ 3,814 $ 6,158 $ 6,606 $ 7,978 $ 8,488 $ 9,077 $1,461 $1,443 $1,524 $1,716 $1,809 196 199 197 251 200 415 709 493 253 237 10 8 10 19 (i) $3,169 $3,071 $3,469 $3,287 S 4,014 L q 633 $ 7,315 $ 8,471 L §L739 S 21 11,471 $1,451 $1,534 112798 $11809 (h) (h) (h) (h) (h) $ 3,879 $ 3,849 $ 4,269 $ 5,821 $ 6,692 $ 811 $ 787 $ 804 $ 874 $1,175 (h) (h) __Jh) (h) (h) 2,210 2,496 2,817 3,367 4,402 343 348 356 413 518 $ 1,899 $ 1,353 $ 1,452 $ 2,454 $ 9,290 $ 468 $ 439 $ 448 $ 461 $ 657 (h1 (h) (h) _ (h) (h) 121 174 588 285 (1) 152 940 491 378 _ 387 1_ ,166 $5,073 $3,4W $3,281 $ 4,014 $ 8,423 S 8,842 510,511 511,478 111,304 $2,091 $2,130 $2,473 $2,567 $2,853 $1,000 $1A)5 $1,823 $l M $ 1,857 $ 3,305 1 3,765 $ 4,233 $ 4,780 $ 5,4x6 $ 845 1 77,4 $1,040 $1,080 $1,187 (g) For Bryan, 1772 through 1975 include other unallocated operating revenues (primarily interest 4 income) for the entire utility system, of which the majority were derived from electric system I operations and which amounted to $2W,735 in 1975, $258,293 In 1973, $294,£46 in 1974 and I $195,150 in 1975. (h ) Denton's water and sewer systems are operated separately from its electric system. (I) Maximum debt service scheduled as of September 1, 1976; Bryan $3,688,115 In 1981; Denton $1,875,342 in 1977; Garland $5,848,896 (not including $567,687 on certificates of ubligation- see Tities'Electric Systems - Car;and") in 1982; Greenville $1,701,206 in 1981. For Garland, does not Include debt service on certificates of obligation of $466,720 in 1975 and $513,145 in 1976. 11 PROJECTS UNDER DEVELOPMENT AND CONSIDERATION The Agency is currently developing and considering several projects as part of its plan to secure power supply resources to mcct the needs of the Cities through 1958. Those projects include the following: Bryan Lignite The first generating project to be undertaken by the Agency and approved under the provisions of the Contract is Bryan Lignite. Bryan Lignite is planned as a 400-MW lignite-fueled, enine•mouth, steam electric generating plant to be located in Crimes County, Tcxns, :cod to include an adjoining lignite strip mine and related facilities. Certain aspects of the facility will be designed to accommo- date it second generating unit, should such a unit be deemed necessary and feasible. The endeavors to date in relation to liryan Lignite include geological exploration and ;.,rtial acquisition of lignite reserves, preliminary surveys of environmental implications, study of co. ing water availability, selection of it plant site, aad partial acquisition of land therefor. Transmission arrang.ments have not been inade but arc being explored. A recently completed study of available water for cooling purposes indicates several alternta- tives, which the Agency is currently investigating to determine which would be the most advan- tageous. Permits and licenses necessary to construct and operate Bryan Lignite have not been obtained at this time from the appropriate state and federal agencies. TERA Corporation has been engaged to, among other things, Identify and evaluate the various licenses, permits and environmental requirements relating to Bryan Lignite and to coordinate the efforts required to obtain the necess try approvals. In conjunction therewith, the Agency is working toward the securing of such permits and licenses. An initial lignite exploration prograin has been completed, indicating the presence of two major lignite beds. Based on preliminary Information supplied by the Paul Weir Company, Incorporated, the Agency believes that such beds arc of sufficient quantity and quality to satisfy the requirements of the generating plant, The Paul Weir Company has prepared a preliminary estimate with respect to such lignite beds (see App(ndis 11). Ikposits acquired to date by the Agency and by others on behalf of the Agency are not sufficient to fulfiil the fuel requirements of Bryan Lignite to the end of its antici- pated useful life, The Agency, intends to use it part of the proceeds of the Series 1978 Bonds to acquire additional lignite deposits. Other interests are competing with the Agency's efforts to purchase such deposits. The A?ency Is presently in the process of identifying zlternative fuel sources for Bryan Lignite in the event it is unable to attiuire sufficient tucl dcposiL the mine site. The alternatives appar- ently available at this time are supplemental lignite deposits and bituminous coal from the western Un'tcd States. Rccent exploration indicates that other lignite deposits are located in the vicinity of Bryan Lignite. Preliminary investigations are underway to identify the location, quantity, quality and owne•.ship of these deposits. Subject to the findings of these investigations, further study may be undertaken to determine whether the Agency should pursue the acquisition and development of such deposits. The costs of converting Bryan Lignite to use bituminous coal are not known at this time. The lignite acquisition program has heretofore been based on the understanding that the lignite Is a part of the surface estate and in the majority of cases the mineral rights have not been acquired. A lower court in Texas has recently held that lignite may be a mineral right under ce,.tain eircurn- stances and not part of the surface estate. The Texas Supreme Court has been asked to review this decision, but no action has as yet been taken on the request, In light of the uncertain state of the law on the question, it may be necessary for the Agency to negotiate with holders of mineral rights In the mine area in those cases where mineral rights have not been acquired, The Agency cannot presently determine the additional cost which may be involved. Tippett br Cee, retained for design of the Bryan Lignite plant, have developed detailed cost estimates for San Miguel Unit 1, a 400-MW lignite-fueled steam electric plant similar to Bryan Lig- 12 rite, for Brazos and South Texas Electric Cooperative, Inc. The Paul Weir Company has performed fuel studies for the San Miguel and Bryan Lignite plants and has supplied a prelim-. ary estimate of the overall capital cost of the lignite strip mine proposed to provide fuel for Bryan Lignite, By extrapolating and adjusting these estimates, as described in Appendix A, the Consulting Engineers have prepar:d a preliminary estimate of the capital requirenients shown below for Bryan Lignite (see Appendix B for a letter from the Paul Weir Company). Assuming that the Agency has a 100;0 ownership interest in Bryan Lignite (sae "Texas Power Pool. Inc."), based upon an estimate prep fired by the Consulting Engineers the total preliminary cost esth:,i is, before related transmission and communication facilities, would require the issuance of Bonds m the following amounts: Bryan Lignite Plant $351,700,000 Bryan Lignite Mine _120,50,000 Total $472,200,0W ` These estimates include fuel acquisition, land costs for both plant and mine, land reclamation, interest during construction, a cash reserve fund equal to the average annual debt service on Bonds, working capital and financing costs. The Agency has recently received from Tippett & Gee a preliminary cost estimate for the Bryan Lignite plant, The estimate of construction costs included in this estimate is approximately 10c,o lower than the construction cos,, estimate for the Bryan Lignite plant r ;ed by the Consulting Engi- neers In their report. Since the Tippett & Gee estimate is presently under review and subject to modification, the Consulting Fngineers have not adjusted their studies to reflect such lower cost estimate, The Cons-ilting Engineers helieve that the targeted commercial operation date of Bryan Lignite, 1981, is reasonable, provided that the long lead-time equipment items are placed on order soon. Comanche Peak The Agency and Brazos are currently negotiating ;ointly for 0,2 percent and 3.8 percent respec- tive ownership interests in Comanche Peak, which is a nuclear, steam electric generating station currently under construction by the Texas Utilities Company, through subsidiary companies, near Glen Rose, Texas. The station will consist of two pressurized water nuclear reactors as the heat source for two steam turbine-electric generator units, each having a nar•.-plate rating of 1,150 bIW. Con- struction was begun in December, 1974, and the first unit is presently scheduled to be placed in service In 1980 and the second unit In 1982. The Consulting Engineers have estimated the Agency's share of the cost of both units, based on figures supplied by the Texas Utilities Company, to be approximately $99,OW,000. Assuming Comanche Peak is approved as a Project, and if negotiations are completed by October 1977, approximately $30,000,000 will be required to finance the Agency's share of costs incurred to that time. Any acquisition of ownership Interests in Comanche Peak by the Agency and Brazos will be subject to the approval of the Nuclear Regulatory Commission. Other Studies and Facilities Plans presently under consideration by the Agency call for construction of certain transmission facilities tnd expansion of existing microwave communication facilities, including thnse associated with Bryan Lignite. Engineering studies are to be performed to determine the equipment requ!fe- ments for economic dispatch procedures. The Consulting Engineers have estimated that the cost to the Agency for such facilities would be approximately $155,000,000 based on the assumption that Brazos would participate to the extent of 407c of such costs, such percentage being established on the basis that Brazos and the Agency's system loads bear an approximate 4Wc-6W0 relationship. (See "Texas Power Pool, Inc.") 13 TEX4S POWER POOL, INC. In 1963 Brazos and the Cities of Bryan, Garland and Greenville eat-led into an agreement form- ing the Texas Municipal Powcr Pool, In 1969, the City of Denton joined this association. The purpose of the association was to accomplish economies in generation and transmission facilities and to provide mutual reserves of electrical capacity to their respective systems. By 1972 technical and financial factors indicated that a strengthening of the mutual bcncflt arrangement, which had been functioning since 1963, would be beneficial to the Individual systems. Eiforts were initiated to accom- plish this objective and resulted In 1975 in the creation of the Agency by the Cities and the creation of the Corporation to pursue certain joint endeavors of the Agency and Brazos. The Series 1975 Bonds were issued to finance the cost to the Ary,nc , of the endeavors pursued by the Corporation. The Cities agreed to pay collectively to the Agency 751o of the debt service requirements of the Series 1975 Bonds and Brazos agreed to pay to the Agency the remaining 25 517v of such requirements. In connection. with the issuance of the Series 1975 Bonds, Brazos was given an option to acquire a substantial interest in the Agency's share of endeavors pursued by the Corporation. Brazos and the Agency have recently executed a memorandum of agreement renegotiating their relative interests in such endeavors, Ameng other things Bravos has agreed that the Agency's Interest in Bryan Lignite will be 1OOV'c and the option will terminate upon transfer of Brazos' interests in Bryan Lignite to the Agency and upon transfer to Brazos of the Agency's interest in certain other properties and endeavors. Brazos has also agreed that an update of the 1963 agreement forming the Texas MuriMpal Power Pool should he undertaken. BRAZOS LLECTRIC POWER COOPERATIVE, INC. Brazos, a not for profit Texas corporation, was formed in 1941 to provide a wholesale power supply to rural electric -:;stribution cooperatives locates! In central to north central 'Texas. Brazos presently serves 19 cooperatives providing retail service to more than 150,000 customers who in 1975 consumed 1,543,000 M%Vh of energy. Brazos presently owns and operates three electric generating plants having a combined capacity of 544.5 MW and operates approximately 1,900 miles of 69-kV and 138-kV transmission lines and other related facilities. Additionally, Brazos is presently planning, togethar with South Texas Electric Cooperative, Inc., each of which has a 50r/f ownership Interest, a 400-\1W lignite-fueled steam electric generating unit known as the San Miguel Unit L The Brazos transmission system provides the basic transm scion system for interconnecting Brazos and the Cities. PUBLIC UTILITIES COMMISSION In 1975 the Texas Legislature by statute (the "Statute") created a Public Utilities Commission (the "Commission") to regulate certain electric utility rates, operations, and services within the State. The Agency, The Agency has taken the position that under the Statute the Commission does not have jurisdiction over the Agency, but the question has not been decided. In the event it were deter- mined that the Commission has jurisdiction over rates charged by the Agency, the Agency would be subject to a rate formula, and procedures for establishing and changing rates, prescribed by the Commission However, the Act, which reserves to the State the right to regulate the rates of the Agency, provides that the State will not limit the powers of the Agency to establish and collect rates and charges as will produce revenues sufficient to pay, among other things, operational and maintenance expenses and debt obligations of the Agency (see "Security for the Bonds - Rates and Charges"). The Cities, The Cities have origins; jurls3iction over the electr!c rates, operations and services of their own systems within their bound,.rles. The Attorney General of the State of Texas has rendered an opinion that the Commission has no appellate jurisdiction over such rates, The respective original and appellate jurisdictions of the Cities and the Commission with respect to rates, operations and 14 services of the Cities' electric systems outside of their boundaries is not clear at this time, but the Statute appears to give the Commission no such original jurisdiction and appellate jurisdiction only with respect to retail sales and not sales between one City and another. The Statute provides that after September 1, 1977, the Cities may surrender to the Commission jurisdiction over "utility" rates, operations and services, but it is not clear whether this is intended to extend to jurisdiction over their own municipal systems. INTERSTATE TRANSMISSION a The Agency's plan to secure power supply resources could be substantially affected by the desires of private utilities in Texas to avoid the regulatory jurisdiction of the Federal Power Com. mission (the "FPC"). Most major pn.ate electric utilities in Texas have historically operated solely vritbin Texas and therefore have not ''oeen subject to such jurisdiction. Direct or indirect inter- connection or joint ownership of facilities by a private intrastate utility with a utility in another state or an interstate utility, including a public utility interconnected therewith, subjects such private utility to the jurisdiction of the FPC. Therefore, when in the summer of 1978 Nest Texas Utilities began transmitting electric energy into Oklahoma, other major Texas electric utilities broke off interconnections. Subsequently, the FPC found that the failure of these utilities to remain inter. connected constituted an emergency, and therefore exempted interstate sales of wholesale energy from their jurisdiction for an unspecified time. While the FFC's jurisdiction would not extend to political subdivisions, such as the Agency, operating fossil and nuclear fueled facilities, the consequences to private utilities of such interconnec- tion or joint ownership may affect both the Agency's transmissicn interconnection and generation plans. For example, if Brazos were to become interconnected with a utility in another state or an interstate utility, the Agency might have to choose between breaking interconnect;rns with Brazos and giving up its plans to participate Jr. Comanche Peak. If it broke Interecnneetions with Brazos, it would be required b change the bulk of its proposed transmission plans. This could result in substantial increases in the expenditures proposed to be made by the Agency for transmission. If the Agency remained inter- connected with Bra-.os, joint owners in Comanche Peak might require the Agency to give up any interest it might acquire in Comanche Peak, and other utilities might break interconnections with the Agency, in order to avoid FPC jurisdiction. DESCRIPTION OF eNE SERIES 1978 BONDS The Series 1978 Bonds are dated September 1, 1978 and shall bear interest therefrom payable set ii-annually on March 1 and September 1 of each year, commencing March 1, 1977 at the rates per annum, corresponding to those principal amounts maturing September 1 in each year, as set forth on the cover page of this Of lci,:I Statement. The Series 1978 Bonds shall be issued as coupon Ponds in the denomination of $5,000 registrable as to principal only at the office of Mercantile National Bank at Dallas, Dallas, Texas, the Registrar. Optional Redemption The Series 1978 Bonds maturing on or after September 1, !987 are suuject to redemption at the option of the Agency oL: and after September 1, 1988, as a whole on any date, or from time to time in part on any interest payment date, at the following redemption prices, plus accrued Interest to the date of redemption; BedempVon Period Redemption Dates G ~lasive Prices September 1, 1958 to August 31, 1988 103% September 1, 1988 to August 31, 1990 102% September 1, 1990 to August 31, 1992 102 September 1, 1992 to Aug st 31, 1994 1014 September 1, 1994 to August 31, 1998. 101 September 1, 19M to August 31, 1998 10034 September 1, 1998 and thereafter . 100 15 If less than all of such Series 1976 Bonds are to be redeem t, the Agency may select the maturity or maturities to be redeemed, and if less than all the Erinds of am), maturity are to be redeemed, the ]fonds of such maturity to be redeemed are to be selected by lot. Mandatory Redemption of Term Bonds The Series 1976 Bonds maturing on September 1, 2005 and on September 1, 2011, shall also be subject to mandatory redemption :n part by lot prior to maturity on and after September 1, 1997 and September 1, 2006, respectively, at 1000 of the principal amount thereof plus accrued interest to the date of redemption, from payments into the Bond Fund which are required to be made in amounts sufficient to redeem on September 1 of each year the principal amounts of such Bonds specified for each of the years below: 2005 Maturity 2011 Maturity Year Amount' Year Amount' 1997 S1,4S0,000 2006 S2,635,0r0 199S 1,5So,000 2007 2,510,000 1999 1,650,000 2009 3,000,000 2000 1,790,000 2009 3,205,000 2001. 1,910,000 2010 3,420,000 2002 2,035,000 2011 (maturity) . 3,650,000 2003 2,175,000 2004 2,315,000 2005 (maturity) 2,470,000 ' Exact amounts to be determined upon sale of the Series 1976 Bonds. Giving effect to the man-latory redemption set forth abo%c, tic average life of the Term Bonds due 2005 and 2011 would be approximately 25)7 years and 3225 )cars, respectively, calculated from September 1, 1976. In lieu of calling said Bonds for redemption, the Agency may deliver Series 1976 Bonds of the maturity required to be redeemed to the Paying Agent (prior to the date of publication of the notice of redemption) in the principal amount up to the amount scheduled to be called for redemption in any one year and the principal amount of said Bonds so delivered shall be credited against the amount of safd Bonds required to be called for redemption in that year. • 16 Debt SerNice Requirements for Series 1976 Bonds' (Dollars in Thousands) Year Ending Total September 30, Pr4wlpal(1) Interest Debt Service 1977 $ - $ 3,268(2) $ 3,208(2) 1978 - 3,208(2) 3,208(2) 1979 - 3,208 3,208 1930 - 3,208 3,208 1981 - 3,208 3,208 1982 - 3,WS 3,208 1983 690 3,208 3,898 1984 720 3,175 3,895 1985 760 3,139 3,899 1988 795 3,200 3,895 1987 840 3,059 3,899 1988 880 3,014 3,894 1989 930 2,965 3,895 1990 985 2,913 3,898 1991 1,040 2,857 3,897 1992 1,100 2,797 3,897 1993 1,165 2,732 3,897 1994 1,235 2,662 3,897 1995 1,310 2,587 3,897 19% 1,395 2,505 3,900 1997 1,480 2,418 3,898 1998 1,580 2,320 3,900 1999 1,680 2,215 3,895 2000 1,790 2,104 3,894 2001 1,910 1,966 3,696 2002 2035 1,859 3,894 2003 2,175 1,724 3,899 5004 2,315 1,580 3,895 2005 2,470 1,427 3,897 2006 2,035 1,263 3,898 f 2007 2,810 1,085 3,895 2008 3,000 896 3,696 2009 3,205 %3 3,898 2010 3,420 477 3,897 2011 3,650 246 _ 3,8% $50,000 $82,254 $132,254 ' Assumes Interest rates ranging from G67a to 6.75% (1) Serial maturities and mandatory redemption requirements for Term Bonds. (2) Interest capitalized through September 1, 1978 from proceeds of Series 1976 Bonds. 17 DESCRIPTION OF CERTAIN PROVISIONS OF THE PONVER SALES CONTRACT Sale of Power and Energy Except in the event a City exercises one of the options discussed below, the Contract requires such City to purchase from the Agency all of the power and energy required for the operation of the City's electric system in excess of the amount (i) supplied by any generation and transmission facilities owned by it on the date of the delivery of Series 1976 Bonds, including facilities under construction on such date and improvements or extensions of generating facilities which increase the rated capacity thereof, so long as the increase during any period of two successive fiscal years of the Agency does not exceed 10 percent of the rated capacity of such generating facility at the beginning of such period unless all of the Cities and the Agency waive such limitation and (ii) supplied from any generating facility constructed and owned by one or more of the Cities and primarily fueled from and the construction and operation of which is incidental to the disposal of solid waste. The Cities are also free to purchase or exchange power and energy with others than the Agency (f) on an emergency, maintenance or standby basis, (ii) on the basis of economic dispatch between the Cities and Brazos or (iii) under the existing pooling agreement between the Cities and Brazos and future pooling agree- ments among them and others, or any combination thereof, and the Agency. The Contract also requires the Agency to perform certain other services for the Cities including comprehensive planning, design, coordination and economic dispatch. The Agency is required to devote its best efforts to the acquisition of power and energy required to meet the requirements under the Contract. If it is unable to meet such requirements, it shall allocate its available power and energy among the Cities on a pro rata basis, unless a governmental agency requires a different allocation, and other power purchasers as may be provided by contract, and the Cities shall be permitted during said inability of the Agency to purchase only such amounts of power and energy as are not supplied by the Agency. The Contract will remain in effect for a period of thirty-five years from September 1, 1976 or until all Bonds are paid, whichever occurs later. Purposes For Which Bonds May Be Issued, Approvals Required Bonds may be issued in connection with Projects, Development Projects and System Development and Reliability Expenditures. No approval of the Cities is required for the issuance o! Bonds for a Development Project. Prior to the issuance of the initial series of Bonds to finance a Project (other than Bryan Lignite which, by the terms of the Contract, is approved) or to finance System Development and Reliability Expenditures, the Agency is required to submit a written notice to each City containing a general description of the Project proposed, the projected sources and uses of funds in connection therewith and a statement of the Agency's opinion that such proposed Project is necessary for the Agency to meet its commitments under the Contract and is economically feasible. Each City is required thereafter to notify the Agency of its approval or disapproval, and if all of the Cities indicate their approval, the Agency may Issue Bonds therefor without the necessity of any further approvals by the Cities. If one or more Cities disapprove and elect Option Two, the Cities which approved may notify the Agency of their desire to commence the Project and if the Agency determines that the Project is still feasible, it may issue Bonds therefor. If any disapproving City elects Option One, then no additional Bonds may be issued for such proposed Project or any future proposed Project. Election of tlpYons Upon Disapproval Any City disapproving a proposed Project is required to elect one of two options set forth in the Contract. The effective date of the option elected shall be the first day of the fiscal year of the Agency which is more than 90 days after the date the City disapproves a Project. Option One. If sny disapproving City elects the first option ("Option One"), all Cities shall thereafter be entitled to schedule and receive the same proportion of the available power and energy from the Systeti as their respective Net Energy for Load bears to the total Net Energy for Load of all Cities for the corre"riding month of the completed fiscal year of the Agency next, 18 preceding the effective date of said Option and shall be obligated to pay to the Agency the same percentage of the Annual System Costs. Option Two. If any disapproving City elects the second option ("Option Tyvo") and no disapproving City elects Option One, the disapproving City shall take or pay for an amount (not a percentage) of power and energy equal to the amount of power and energy purchased by such City from the Agency during the corresponding month of the 12 consecutive month period preceding the calendar month of the effective date of the exercise of said Option or such other amount as may from time to time be agreed upon by such City, the Agency and the other Cities at the rates and charges established under the Contract. The amount due from each City after any City elects Option One and the amount due from any City whirl _lects Option Two shall he due and payable irrespective of %Nhether any power and energy is delivered or made available for delivery. Rates and Charges The Contract provides that the rates and charges for power, energy, and services shall be (1) nondiscriminatory, (2) lair and reasonable and be based on the cost of pro%iding the power, energy and services with respect to which the rates or charges are based and (3) adequate (after taking into consideration other moneys received or anticipated to be received) to pay or make provision for pay- ing Annual System Costs. Payments by Cities Except in the event of the exercise by a City of Option One, in which case each City is obligated to pay its share of Annual System Costs as explained above, the Cities are obligated to pay for po%%er, energy and services pursuant to rates and charges established therefor by the Agency. In addition, each City has covenanted that whenever the amount of money on deposit in the Bond Fund is less than the full amount 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 consecutive months) it will pay directly to the custodian of the appropriate fund an amount which xvill be sufficient to estab- lish or reestablish the amount required under the terms of the Resolution to be on depos'' n the Bond Fund, the Reserve Fund and the Contingency Fund. The obligation of the Cities to make such payments is absolute and unconditional and does not depend upon whether the Agency is in compli- ance with the provisions of the Contract or %vhether power and energy are available to the Cities from the Agency. The Contract recognizes that the holders of Bonds shall be third party beneficiaries to sucL covenant. Such payments, if required, shall initially be made by each City in the following per~.entages: Bryan 22,7370 Denton 20,34e,"o Garland 47,6670 Greenville 9.2770 Except as described below, such percentages shall be adjusted at the beginning of each fiscal year of the Agency on the basis that each City's Net Energy for Load for the preceding fiscal year of the Agency bore to the total aggregate Net Energy for Load of all Cities for such fiscal year of the Agency, and the sum of adjusted percentages shall equal 100%. If any City should disapprove a future Project and elect Option One, such percentages shall be fixed for each City at the percentage its Net Energy for Load bore to the Nct Energy for Load of all Cities for the fiscal year of the Agency next preceding the effective date of said Option. If any City disapproves a Project and elects Option Two, the amount of its Net Energy for Load for the purpose of annual adjustments of 19 the percentages shall be fixed at its Net Energy for load in the fiscal year of the Agency next preceding the effective date of said Option. The relative Net Energy for Load for each of the Cities for the fiscal year of the Agency ending September 30, 1978 is estimated by the Consulting Engineers to be as follows: Bryan 22.13% Denton 19.76% Garland 49.22% Greenville 8.87% In any instance, except that occasioned by the failure of a City or other power purchaser to pay for power and energy, in which the funds of the Agency are insufficient to pay Operating and Main. tenance Expenses or other expenses (other than amounts required to be paid into the Bond Fund, Reserve Fund and Contingency Fund as described above) payments shall be made to the Agents by the Cities in the percentage shares determined as set forth above. In the event that the Agency is held to be in default under the provisions of the Resolution by reason of the inadequacy of payments required to be made by the Cities under the Contract, the Cities shall cure the default by making payments in the proportions determined as set forth above. Under certain circumstances a new power purchaser or a new member of the Agency (see "Re-creation of Agency") may assu ne primary liability for making certain payments to the Agency, including the obligation to make payments to the Custodian of the Bond Fund referred to above, but such assumption shall not discharge the liability of the Cities and the Cities shall remain secondarily liable to make such payments. The covenant of the Cities to make payments directly into the Bond Fund, Reserve Fund and Contingency Fund applies to all Bonds issued in order to fully provide funds for (i) Projects approved under the Contract, including the design, construction and placing of such Project in commercial operation or to meet any requirement of law, including those of a regulatory agency having juris- diction, or to pay judgments or casualty losses not covered by insurance, or to meet a safety or overriding public necessity, and (ii) certain other purposes. The Agency has covenanted In the Resolution that it will not issue any additional Bonds under the Resolution unless the Agency has obtained an opinion from bond counsel, selected by it, that the additional Bonds are payable from the same sources and are secured in the same manner as the Series 1978 Bonds and that the obligation of the Cities to make payments directly into the Bond Fund, Reserve Fund and Contingency Fund as described above is equally applicable to the additional Bonds, All payments by a City under the Contract, including any payments required to be made to the Custodian of the Bond Fund, shall constitute an operating expense of its electric system payable solely from the revenues and receipts of such electric system. Re-creatfun of Agency 1 Under the Act, the Cities are given the authority to recreate the Agency by the addition or dele- tion, either or both, of a public entity as defined in the Act, so long as there is no Impairment of obligation of ary existing obligations of the Agency. Unless certain procedures are followed, each City covenants and agrees that it will not join with any of the other Cities to recreate the Agency so as to delete a City but the obligation to make payments directly into the Bond Fund, Reserve Fund and Contingency Fund referred to above shall remain unaffected until the Bonds theretofore and thereafter issued for completion of Projects have been paid and retired, After the Agency receives notice of the intent of a City to withdraw, no Bonds shall be Issued for a new Project. Unless certain procedures are followed, each City covenants not to join with any other entity to recreate the Agency by the addition of an entity unless the entity being added expressly either (i) assumes the primary liability for a pro rata s"-,are of the Bonds and subordinated indebtedness of the 20 Agency then outstanding (which shall not discharge the liability of those who are obligated when such debts were incurred, who remain secondarily liable) as well as the obligation to make payments, directly to the Bond Fund, Reserve Fund and Contingency Fund referred to above, and assumes thereafter to pay its share of the remainder of the Annual System Costs, or (if) agrees that 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, but in no event shall the Cities be relieved of the obligation, referred to above, to pay the amounts required to be paid into the Bond Fund, Reserve Fund and Contingency Fund with respect to all Bonds theretofore or thereafter issued without regard to such new entity, The Agency and the Cities must approve which of these two choices is made by the new entity, Rate Covenant of Cit?es Each City covenants to establish, maintain and collect 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 mailable electric system reserves, to enable it to pay to the Agency, when due, all amounts payable by such City under the Contract. Sale of Electric Distribution System by Cities; Assignment of Rights Under the Contract, no sale or other disposition by a City of its electric utility distribution system as a whole or substantially as a whole may become effective so long as any Bonds are outstanding. A City may assign its rights under the Contract but such assignment shall not relieve such City of its obligations under the Contract during the time any Bonds are outstanding. Amendments The Contract may by its terms be arrended by the kgency with the consent of all the Cities except that the covenant to make payments directly into the Bond Fund, the Reserve Fund and the Contingency Fund, the provision relating to re-creation of the Agency and certain other provisions may not be amended. DESCRIPTION OF CERTAIN PROVISIONS OF THE RESOLUTION Pledge of Revenues and Funds; Application of Revenues The payment of the principal of, premium, if any, and interest on the Bonds is secured by an irrevocable first lien on and pledge of (1) the Net Revenues and (ii) all funds, Including investments thereof, established by the Resolution, other than the Revenue Fund, and the Revenue Fund subject to the payment of Operating and NO. t-.tenance Expenses. The Resolution establishes the following funds for the application of the revenues of the Agency: Funds Held By Revenue Fund A Depository Bond Fund Custodian of the Bond Fund Reserve Fund Custodian of the Reserve Fund Contingency Fund , A Depository Construction Fund A Depository Mercantile National Bank at Dallas, Dallas, Texas, has been appointed Custodian of the Bond Fund and the Reserve Fund. Mercantile National Bank at Dallas, Dallas, Texas, and Manufacturers Hanover Trust Company, New York, New York, have been appointed Paying Agents, and Mercantile N'donal Bank at Dallas has been appointed Registrar, for the 1976 Bonds. Under the Resolution, the Agency may change any Custodian or Paying Agent and the Registrar. There is no trustee appointed undet the Resolution. 21 io, Revenue Fund Pursuant to the Resolution, the Gross Revenues of the. Agency shall be deposited as received into the Revenue Fund. Amounts on deposit in the Revenue Fund shall be used in the following order or priority: (1) for the payment of Operating and Maintenance Expenses as they become due; (2) for deposits Into the Bond Fund; (3) for deposits into the Reserve Fund; (4) for deposits into the Contingency Fund; (5) to cure any deficiency in the Bond Fund, Reserve Fund or Contingency Fund, in that order; (8) for other lawful purposes, including: (a) deposits into a Fuel Reserve Account, established by the Resolution as part of the Revenue Fund for use in paying the cost of fuel acquisition or replacement or fuel working capital; and (b) distribution to the Cities if the Board determines that amounts so to be distributed are not required for the foregoing purpolbs. Bond Fund The Bond Fund is established by the Resolution 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, and for the purchase of Bonds for credit against mandatory redemption requirements. On or before the 25th day of each month, the Board of Directors of the Agency shall cause to be transferred from the Revenue Fund to the Bond Fund in equal monthly installments the amount determined annually by the Board of Directors of the Agency to be necessary to provide for the payment of the principal of, premium, if any, and interest on the outstanding Bonds as the same became due or are required to be called for redemption. In the event the moneys in Ole Revenue Fund are not sufficient to permit the required transfers to the Bond Fund, the amount of the deficiency shall be transferred to the Bond Fund from other hinds as provided in the Resolution. Reterce Fund The Agency shall maintain in the Reserve Fund an amount equal to the Average Annual Debt Service of the outstanding Bonds calculated as of the date of, and giving effect to, the last series of Bonds delivered. In the event that the moneys In the Revenue Fund are not sufficient to snake any required transfer to the Bond Fund, 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. Any deficiency in the Reserve Fund resulting from transfers to the Bond Fund shall be made up by not more than 38 equal monthly deposits into the Reserve Fund. Any moneys in the Reserve Fund in excess of the amount required to be on deposit therein or required to be transferred to the Bond Fund m:F be transferred to the Revenue Fund. Contingency Fund The Agency shall deposit into the Contingency Fund $2,000,000, or such greater amount as may be determined by the Agency and the Cities, on or before the date of commercial operation of the Initial electric generating facility owned in whole or in part or operated by or on behalf of the Agency. Any deficiency in the Contingency Fund shall be made up by not more than 38 equal monthly transfers from the Revenue Fund, and any moneys in the Contingency Fund In excess of the amount required shall be transferred to the Bond Fund or Reserve Fund to make up any deficiencies therein, and otherwise to the Revenue Fund, if funds are not otherwise available fr such purposes, moneys 22 k i in the Contingency Fund may be used to pay the cost of (a) extraordinary renewals, replacements and additions to and extensions of the System required for its continuing operation, and (b) extra• ordinary operation and maintenance costs of the System. If the amount of money on hand in the Bond Fund and the Reserve Fund is not sufficient to pay the principal of, premium, if any, or the interest on the Bonds when due, amounts on hand in the Contingency Fund -,hall be transferred to the Bond Fund to cure the deficiency. Construction Fund The Agency shall deposit into the Construction Fund such amounts as are required by the Reso- lution to be applied to the payment of the cost of acquisition and construction of facilities financed by the issuance of Bonds. Upon the completion of a project, moneys in the Construction Fund allo- cable to such project shall be deposited in the Bond Fund or the Reserve Fund to make up any deficiencies therein, and, in the absence of any such deficiencies, may be deposited in the Bond Fund for use in retiring Bonds prior to maturity or used for the payment of the cost of acquisition and construction of facilities financed by the issuance of Bonds, as the Agency may direct. Inrestment of Moneys in Funds Moneys in the funds under the Resolution shall be invested in Investment Securities upon Instruc- tion from the Agency, The Agency will prudently s-lect investments based on the recognition of when the moneys being so invested will be needed for the purpose for which they were originally deposited. In computing the amount in any fund, obligations purchased shall be valued at the amortized cost thereof. Additional Bonds The Agency may issue additional Bonds in one or more series as needed from time to time for the lawful purposes of the Agency with respect to the System, including payment of the principal of, premium, if any, and interest on any subordinated indebtedness issued for such purposes. All addi- tional Bonds sb^lI be payable from the same source and secured in the same manner on a parity with all other Bonds. Additional Bonds may be Issued only if the following conditions have been met: (a) The Agency is not in default under the Resolution or to the payment of subordinated indebtedness. (b) The issuance of the additional Bonds is permitted under the laws of the State of Texas. (c) The Resolution authorizing the additional Bonds (1) contains the same provisions as the Resolution with regard to deposits to be made into the Bond Fund for the payment of Debt Service and specifies the amount of Bond proceeds, if any, to be deposited in any fund established In the Resolution; and (ii) provides for the deposit in the Reserve Fund of an amount such that the total amount on deposit therein is not less than the Average Annual Debt Service on all outstand- ing Bonds including the additional Bonds. (d) The Agency has obtained a certificate from each City showing a forecast of operating results of its electric system which demonstrates the ability of each City to meet the obligations, including payments to the Agency, payable from the revenues of its electric system for the period of (I) ten ensuing fiscal years of each City or (ii) each ensuing fiscal year of each City until the third fiscal year after the latest estimated completion date of any Project previously approved by the Cities, whichever is later; and an Independent engineer or engineering firm retained by the Agency has reviewed such forecast and has executed a certificate to the effect that in his opinion such forecast is reasonable and that the Agency will have the ability to meet its obUgatlons during each fiscal year of the forecast period. 23 (e) The Agency has obtained a report from an independent certified public accountant indicating that the Net Revenues (f) 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 the additional Bonds were equal to at least 1.25 times the Debt Service for such period, excluding any Bond proceeds deposited H the Bond Fund for the payment of interest, except that such requirement is not applicable to additional Bonds issued for the purpose of completing the financing of a Project for which Bonds have been issued. (f) The Agency has obtained an opinion from bond counsel, selected by it, that the addi- tional Bonds are payable from the same sources and secured in the same manner as the Series 1978 Bonds and that the obligation of the Cities to make payments directly into the Bond Fund, Reserve Fund and Contingency Fund under certain circumstances, as described in "Description of Certa+n Provisions of the Power Sales Contract - Payments by Cities", is equally applicable to the additional Bends, (g) From and after one year from the date of commercial operation of an electric generat- ing facility, the proceeds of Bonds (other than accrued interest) may not be used for the purpose of paying interest on any Bonds issued to provide funds for such facility. Refunding Bonds The Agency may issue Bonds to refund all or any part of its outstanding Bonds, provided that the requirements for the issuance of additional Bonds shall be met, except that if the Dr' Service for the refunding Bonds gill in each year be less than the Debt Service for the Bonds 1, g refunded, the requirements described in paragraphs (d) and (e) under "Additional Bonds" above shall not apply. Subordinated Indebtedness The Agency may issue evidence of indebtedness secured by a pledge, subordinated in all respects to the pledge in favor of the Bonds, of Net Revenues 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 and any additional fund established by the Resolution. Incurrence of Other Indebtedness The Resolution does not restrict the Incurrence of other indebtedness by the Agency payable out of my source other than the Net Revenues and funds pledged for the payment of the Bonds. Covenant as to Rates and Charges The Agency covenants that it will, at all times while any of the Bonds are 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 Net Revenues equal to at least 1.25 times the Debt Service of all out- standing Bonds for the fiscal year for which such rates and charges shall apply, excluding Bond proceeds deposited In the Bond Fund for the payment of Interest in such fiscal year, 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 the Resolution and to pay all obligations of the Agency, Including subordinated, Indebtedness. Certain Other Covenants Against Encumbrances, Except In connection with the acquisition of real property or fuel resources, the Agency will not create, and will use its best effort to prevent the creation of, any 94 mortgage or lien on the System or any part thereof or any property needed for the proper operation of the System or for the maintenance of the revenues therefrom. The Agency will not create, or permit the creation of, any pledge, lien, charge, or encunmbrance upon Net Revenues or funds pledged for payment of the Bonds except as provided in or permitted by the Resolution. Disposition of Properties. The Agency will not sell or otherwise dispose of any property needed for the proper operation of the System or for the maint,naT]ee Of the revenuos therefrom, with the exception of fuel, which may be sold by the Agency at a reasonable price if the Board of Directors of the Agency determines that suer sale is in the best interest of the Agency. 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 Icspect to the Net Revenues. Nowithstanding the foregoing, the Agency, with the prior written approval of the Cihes, may sell an ownership interest in a portion of the system to another party and in consideration therefor acquire an ownership interest in property used in the generation or transmission of electric energy or other "electric facilities" ;cs defined in the Act, provided that the ownership interest so acquired shall become a part of the System and shall be an approved Project as that term is defined in the Contract. Maintenance of Revenues; Power Sales Contract. The Agency will at all times comply with all terms, covenants and provisions, express and implied, of all contracts and agreements entered into by it for electric power and energy furnished by or available to the System and all other contracts and agreements affecting or involving the System or the business eF 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 vvho does not pay such charges -mien due. The Agency shall enforce the provisions of the Contract and duly perform its covenants and agreements thereunder. Insurance. Subject in each case to the condition that insurance is obtainable at reasonable rates and upon reasonable terms and conditions, the Agency will procure and maintain, or cause to be procured and maintained, at all times while may Bonds are 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 systcnms. Such insurance shall be adequate in amount and as to the risks insured against, and shall be maintained with responsible insurers. The Agency may establish and create a special fund 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 Espensc. To the extent amounts may be held in such fund, the face amount of appropriate insurance policies may be reduced. 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 relating to the System. On or before 120 days after the close of each fiscal year, a statement for the preceding fiscal year showing the gross operating income and revenues, the operating and maintenance charges and the net operating income of t%c System and a balance sheet of the Agency as of the end of such fiscal year, all certified by an independent certified public accountant, will be made available at the office of the Agency, The Agency further covenants that the System and all books, records, accounts, documents and vouchers relating to the construction, operation, m, intenauce, repair, improvement and extension thereof, will at all tames be open to inspection by the holders of Bonds and their representatives. Reconstruction of the System; Application of Insurance Proceeds. If any useful portion of the Systems shall be damaged or destroyed, the Agency shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted 'he reconstruction or replacement thereof, unless the Agen q 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 25 available for, and to the extent necessary applied to, the cost of such reconstruction or replacement, if any. No Free Use of Facilities. None of the net electric power and energy ovvned, controlled or supplied by the Agency or other seniors shall be furnished or supplied free. If the Agency sells fuel or water developed or made available by or for the System, a reasonable charge therefor shall be made. Amendment of Contract. The Agency has covenanted that it will not permit any amendment to the Contract or give any consent permitted or required by the Contract unless the Agency has obtained an opinion of bond counsel, selected by it, to the effect that such amendment or consent will not adversely affect the security of Bondholders by lessening the amount to be paid to the Agency thereunder or changing the source or nature of such payment. (See also `Description of Certain Provisions of the P(,vvrr Salts Contract - Amendment.) Amendment of Resolution The Resolution and the rights and obligations of the Agency and of the holders of the Bonds may be modified or amended at any time with the written consent (1) of the holders of at least sixty per cent in principal amount of outstanding Bonds, and (ii) in case less than all series of outstand- ing Bonds are affected by the modification or amendment, of the holders of at least sixty per cent in principal amount of the outstanding Bonds of each series so affected, provided, however, that if such modification or amendment will, by :ts terms, not tale effect so long as any Bonds of any speci- fied 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 calculation of outstanding Bonds. 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 the Resolution without the consent of the holders of all of the outstanding Bonds. The Resolution and the rights and obligations of the Agency and of the holders of the Bonds may be modified or amended at any time by a supplemental resolution, without the consent of any Bondholders, but only to the extent permitted by law and only (i) to add to the covenants and agreements of the Agency contained in the Resolution or other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred. upon the Agency; or (if) upon receipt by the Agency of an approving opinion of bond counsel selected by the Agency, to make provisions for the purpose of airing any amb'guity, or of curing or corrrcting any defective provision contained in the Resolution. Mcharge of Indebtedness 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 and shall cease tj be entitled to any lien, benefit or security under the Resolution, and all covenants, agreements and obligations of the Agency to the holders thereof shall thereupon cease, terminate a.!d become void and be discharged and satisfied 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 of such Bonds on said date, and (2) there shall have been deposited with the Paying Agents either (I) moneys in an amount which shall be sufficient, or (11) direct obligations of the United States, obligations which in the opin- ion of the Attorney General of th? United States are general obligations of the United States backed by its full faith and credit, or obligations guaranteed by the United States, which are not subject to redemption prior to their maturity (including any of the foregoing securities Issued or held In book-entry form on the books of the Department of the Treasury of the United States), the principal of and the interest on which when due will provide moneys which, together with the moneys, if any, 28 deposited with the Pay;ng Agents at the same time, shall be sufficient, to pay -,N ben 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. Notice of Redemption of Bonds Notice of redemption (except as prosided below) shall be given by publication at least once prior to the redemption date in a financial journal or newspaper published in The City of New York and a journal or newspaper published ii. Texas, such publication to be not less than 30 days before such redemption date. If any Bond called for redemption is registered as to principal, notice of redemption thereof shall also be mailed, not less than 30 days prior to the redemption date, to the registered owner thereof, but neither failure to mail such notice nor any defect in any notice so mailed shall affect the sufficiency of the proceedings for the redemption thereof. Copies of such notice shall also be mailed to Bondholders who have furnished their names and addresses to the Agency. Each notice of rcdemption shall state the redemption date, the place of redemption, the principal amount and, if less than all, the distinctive numbers of the Bonds to he redeemed, and shall also state that the interest on thn Bonds in such notice designated for redemption shall cease to accrue from and after such redemption date and that on said date the redemption price plus accrued interest will becorac due and payable on each of said Bonds. If at the time of giving notice of redemption there are no outstanding Bonds except Bonds registered as to principal, publication of su^h notice shall be deemed to>>acc been waived if the Registrar rxecutes a certificate to the effect that such notice Nvas mailed to each registered owner of such Bonds at his address as it appears on a ledger kept by the Registrar or at such address as he may leave filed with the Registrar for that purpose. Events of Default and Remedies of Holders Events cf default specified In the Resolution include (1) failure to make any payment of principal of, premium, if any, or any installment of interest on, the Bonds, when the same become due and payable; (ii) default in any covenant, undertaking or commitment contained in the Resolution, the frdlure to perform which materially affects the rights of the holders of Bonds, and the continuation thereof for a pMe>d of 60 days after notice of such default by any holder of any Bonds; and (iii) the dissolution or liquidation of the Agcney, other than re-creation as provid•d by the Act or the Contract, the bang by the Agency of a voluntary petition in bankruptcy, the commission by the Agency of any act of bankruptcy, adjudication of the Agency as a bankrupt or assignment by the Agency for the benefit of its creditors, the entry by the Ageticy 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 p, cceding for its reorganization under a :y applicable law or statute. Upon the happening and continuance of any such event of default, any holder may proceed against the Agency for the purpose of protecting and enforcing the rights of the holders of Bonds under the 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 lava, including the specific pcrform- ance 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 under the Resolution, or any combination of such remedies. Each such right or privilege shall loc in addition to and cumulative of any other right or privilege and the exercise of any right or rrisilege by or on behalf of any holders shall not be deemed a waiver of any other right or privilege thereof. 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 payment of the prin- cipal amount of and premium, if m on Bonds outstanding wlilch have become due, 27 LITIGATION No litigation periling or, to the knowledge of the Agency, threatened in any court affecting the corporate existence of the Agency, the title of its officers to ' acir respective offices, or seeking to restrain or enjoin the issuance or delivery of the Bonds, or the collection of receipts or assets of the Agency pledged or to be pledged to pay the principal of and interest on the Bonds or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the Resolu- tion or the Contract, or contesting the powers of the Agency or any authority for the Bonds, the Resolution or the Contract. There is pending against the Agency, the Corporation, an3 other parties a suit in the District Court of Crimes County, Te.eas, filed on Jul), 2, 1978, by a gcolo! ist whose senices vwere terminated by the Corporation in june 1970. The geologist seeks approximately $7,000,000 in damages for alleged harm to his professional reputation, for work done for the Corporation, and for conversion of certain property. Pre-trial discovery has not been completcd, but in the opinion of Cencral Counsel, apparent valid defenses exist thereto and the claim is of questionable merit. TAX EXEMPTION In the opinion of Bond Counsel, interest on the Series 1976 Bonds is exempt from present Federal income taxes under existing laws aad regulations. The Agency will L ue its certiSeate, accompanied by the required legal opinion, to the effect that on the basis of the facts, estimates and circumsta,ces in existence on the date of the delivery of the Bonds, it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be "arbitrage bonds" under Section 103(d) of the Internal Revenue Code of 1951, as amended, CERTAIN LEGAL MATTERS Legal matters incident to the authorization, issuance and sale of the Series 1976 Bonds are subject to the unqualified al.proving opinion of Messrs. Dumas, Huguenin, Boothman and Morrow, Dallas, Texas, Bond Counsel, Said opinion in substantially the form attached v Exhibit I will be printed on the Bonds, The delivery of the Series 1976 Bonds is also subject to the unqualified opinion of the Attorney General of the State of Texas that such Bonds have been issued in accordance with the Constitution of the State of Texas and the Act and will be binding special obligations of the Agency. Certain legal matters will be passed upon for the Underwriters by their counsel, Messrs. Mudge Rose Guthrie h Alexander, New Fork, New York, and for the Agency by its General Counsel, Messrs. Naman, Howell, Smith & Chase, Waco, Texas. f LEGAL INVESTMENT IN TEXAS The Act provides that the Series 1976 Bonds are legal and authorized in estmcnts for banks, savings banks, trust companies, building and loan associatioms, savings and loan associations and Insurance companies and are eligible to secure the deposit of any and all public kinds of the State 1 of Texas and any and all public funds of cities, towns, villages, counties, school districts or other political corporations or subdivisions of the State of Texas, and that such obligations shall be la•.vful and sufficient security for said deposits to the extent of the principal amount thercol, or their value on the market, whichever is the lesser, when accompanied by all unmatured coupons, if any, appurte- nant thereto. 28 UNDERWRITING The Underwriters have jointly and severally agreed to purchase all, but not less than all, of the Series 1976 Bonds at a price representing an aggregate discount of 17a from the initial public offering prices set forth on the corer page hereof. The Underwriters may offer and sell Bonds to certain dealers and others at prices lower than the Initial public offering prices and the initial public offering prices may be changed from time to time by the Underwriters. • This Official Statement has been approved by the Texas Municipal Power Agency. TEXAS MUNICIPAL POWER AGENCY By President of the Board o/ Directors t 29 Appendix A R, W, BECK AND ASSCiCIATES ENGINEERS AND CONSULTANTS SEATTLE, WASHINGTON PLANNING DENVER, COLORADO DESIGN PHOENIX, ARIZONA RATES 700 lON'ER BUILDING ORLANDO, FLORIDA ANALYSES [VALUATIONS SEATTI[, WASHINGTON 98101 COLUMBUS, NEBRASKA MANAGEMENT TELEPHONE 206-622-M WELLESLEY, MASSACHUSETTS INDIANAPOLIS, INDIANA Fitt NO. September 17,1970 Texas Municipal Power Agency 7111 Bosque Boulevard Waco, Texas Gentlemen: We refer to our summary of studies addressed to you and dated August 30, 1970. It is our understanding that the Agency and Brazos Electric Power Cooperative, Inc. ("Brazos') are implementing action which (a) eliminates the 1% Brazos ownership of Bryan Lignite we assumed, (b) increases the proposed Agency ownership of Comanche Peak from the 6% we assumed to 0.2%, and (c) modifies the extent to which Brazos would participate with the Agency in certain transmission and other facilities. We have reviewed such proposed changes and have concluded that they would have no significant effect on the finding- and conclusions expressed in such summary of studies, Respectfully Submitted, Is/ R. W. BECK AND ASSOCIATES A•1 Appendix A (Continued) R.W. BECK AND ASSOCIATES ENGINEERS AND CONSULTANTS PLAWNG SEATTLE, WASHINGTON DESIGN DENVEI, COLORADO RATES PHOENIX, ANALYSES 200 TOWER BUILDING A0.2ONA EVALUATIONS SEATTLE, WASHINCTON 9a 01 ORLANDO, FLORIDA COLUMBUS. NEBRASKA MANAGEMENT TELEPHONE 206-622-SM WTLLESLEY, MASSACHUSETTS INDIANAPOLIS, INDIANA • TILE NO. August 30, 1978 Texas Mnncipal Power Agency 7111 Bosque Boulevard Waco, Texas 78710 Gentlemen: Presented herein Is a summary of our studies concerning the proposal of the Texas Municipal Power Agency (Agency") to issue $50,000,000 of Revenue Bonds, Series 1978, primarily for the pu•- pose of (a) retiring present outstanding bonds of the Agency; (b) paying a portion of the cost of acquisition and construction of a proposed 400 MW lignite-fueled, steam-electric plant, an adjoining strip mine, and related facilities (collectively referred to ns "Bryan Lignite"); and (c) paying certain preliminary expenses in connection with other projects contemplated in the Agency's power supply program. The data and opinions set forth herein in summary form are generally based on our Financial Feasibility Report, submitted to the Agency in July 1978, and reflect certain revised information that has subsequently become available, To provide all or a portion of the power requirements of the Texas Cities of Bryan, Denton, Garland and Creenville (the "Cities") through 1958, the Agency proposes to utilize City units, exist- ing and under construction, Bryan Lignite and 8Si'o of Comanche Peati Steam-Electric Station ("Comanche Poak"), a nuclear generating plant presently under construction by the Texas Utilities Company ("TV") through its subsidiary companies. The Agency also proposes to expand communica- tion and transmission facilities over and above those included in Bryan Lignite, conduct fuel explora- tion nrograEls, and study future power Supply requirements and metliods. The period considered In our s`udics Is 1977.1958, being fiscal years ending September 30, The facilities contemplated to be required to meet the loads forecasted for the Cities In the study period are preliminarily estimated, based on the assumptions set forth below, to require ultimate bond Issurs by the Agency totaling $717,700,000 as follows: Bryan Lignite Power Plant $348,200,000 Bryan Lignite \ime 119,300,000 Participation in Comanche Peak Nuclear Plant 98,000,000 Transmission and Other Facilities . 154,200,000 Total . , . #717,700,000 A-2 As authorized by the Agency Board of Directors, the Agency now proposes to issue $50,000,000 Revenue Bonds, Series 1976, $22,664,000 of the ,)rocceds of which is to be applied to Bryan Lignite. The Agency issued $10,625,000 of bonds in 1975 which will be redeemed through funds pro. vided in the 1976 issue. The proceeds of these bonds were used primarily to finance preliminary costs of lignite exploration and other costs of the projects referred to above, Additional funds are contemplated to be obtained by bond issues subsequent to the Series 1976 Bonds in a timely manner and in aggregate amounts required to complete the acquisition and construction of Bryan Lignite as well as the other projects described herein. The Agency Since 1963, the cities of Bryan, Garland and Greenville and the Brazos Electric Power Coop- erative, Inc. (Brazos) have been affiliated in relation to the planning and operation of their electric utility systems. Denton joined the group in 1969. The group is known as the Texas Municipal Power Pool, and was established by the Interchange Agreement discussed below, Legislation enacted by the State of Texas in 1975 allowed the Cities to form the Agency, which can issue revenue bonds and own facilities either independently or jointly with Brazos or other electric utility entities. The basic objective of forming the Agency and its relationship with Brazos was to secure power supply resources through joint efforts which would be more economically attractive and elect trieally reliable than if the Cities and Brazos had each acted independently. A Preliminary Power Supply Study which we prepared and submitted in March 1975, identified generation and trans- mission developments which would be adequate to supply forecasted loads in an orderly manner on the basis that such developments offered the greatest economic incentives of many plans con- sidered, The facilities contemplated herein are part of the facilities so s lentilyd, In our opinion, implementing the plan of power supply would require several contractual agree- ments among the Agency, the Cities, Brazos and others. Such agreements include: 1. The Power Safes Contract between the Agency and each of the Cities. This document provides the basic security for the Agency's Bonds. Among other things, it contains details of how projects are selected and supported. 2. Interchange Agreement. A document that was executed originally in 1963 between Bryan, Garland, Greenville and Brazos. Denton executed the same document in 1969 and the agreement continues to be operative. The agreement establishes the arrangement through which the partici- pants coordinate the pla wing and use of generation and transmission facilities, interchange reserve capacity and provide spinning reserves and specify the charges involved. It is assumed for the purpose of our studies that this agreement will be expanded to provide for cconondc dispatch of all of the generating units of the Cities ind the Agency. 's. Agreements With Brazos. An agreement or agreements between Brazos avid the Agency co:4, arng provisions relating to the joint financing and ownership of facilities. The Bore! Resolution to be adopted by the Agency, establishing the teens, conditions and security of bonds Issued by the Agency. 5. Jofnt Ownership Agreement. An agreement to be entered in`o containing provisions under which the Agency and Brazos would become joint owners of Comanche Peak with each other and subsidiaries of TU. 6. Transmission Agreements, An agreement or agreements between the Agency, the Cities, Brazos and others with respect to the transmission of power from Bryan Lignite and Comanche Peak and participation in the Texas Interconnected Syst.m, a statewide utility coordinating group (TIS). The Power Sales Contracts and Bryan Lignite have been approved by resolution of the Board of Meet( i of the Agency, The Power Sales Contracts and Bryan Lignite have been approved by the Cities as the initial project thereunder. A-3 Load Levels The aggregate load of the Cities, referred to herein as the Agency's load, wvas subject to a certain degree of moderation in growth in recent years as was the case in many electric utilities throughout the country. Load increases are forecasted how-ecer, and must be met if the Cities are to remain viable electric utilities. The Agency's loads, as forecasted in recognition of the load increases experienced in recent years, still show a capacity deficiency (including a 151,10 reserve requirement) starting in 1981 of 79 MW and increasing to 493 MW in 1956, In recognition of current trends the load fore. casts have been estimated to increase at a lower rate than that experienced prior to 1974. Historical and forecasted loads and forecasted load-resource balances are shown in the two following tables. Historical and Forecasted Peak Loads(1) (D11V) Total Plus 15% Transmission Reserves Year Bryan 1knton Garland Creenrille Total Losses Plus Losses i988 53 62 99 33 247 NA 284 1969. (>t 70 140 39 313 NA 358 1970 E9 76 137 40 322 NA 370 1971 78 81 162 42 363 NA 417 1972 95 91 193 45 424 NA 488 1973 95 93 214 46 452 NA 520 1974 105 105 233 52 494 NA 588 1975 116 106 242 51 515 NA 592 1976 129 116 292 53 590 NA 878 1977 142 124 314 57 637 NA 733 1978 118 2) 134 358 59 667 NA 767 1979 1152) 144 406 62 757 NA 838 19W 122 154 459 64 799 2 921 1981 129 166 517 67 879 6 1,017 1982 135 178 580 70 963 7 1,114 1983...... 142 190 632 73 1,037 9 1,202 1984. 150 206 879 78 1,111 10 1,288 1985... 157 220 718 80 1,175 11 1,362 1988...... 165 238 750 83 1,234 12 1,431 (1) Estimated for 1976 and subsequent years. (2) Reflects loss of City of College Station load. NA - Not Applicable Forecasted Loads and Resources (hIW) Surplus Total City (17eflclency) Agency Load Load Resources with City Resources Resource Ye_r (1) (2) _Resources (3) Balance 1(M 733 838 105 0 105 1978. 767 938 171 0 171 1979 . 838 938 102 0 102 1980 921 938 17 69 Be 1981 1,017 939 (79) 465 388 1982 1,114 938 176) 534 358 1983 1,202 938 284 534 270 1984 1,288 938 350; 534 184 1985 1,362 938 142,4) 534 110 1988 1,431 938 (493) 534 41 (1) From Table of Historical and Forecasted Peak Loads. (2) Existing and under construction by cities: Bryan 141 MW (1977), 241 MW (1978); Denton 169 MW; Garland 428 WV; Creen il)e 58 MW (1976), 100 MW (1977). (3) 1980 - Comanche Peak No. 1 09 NIW; 1981-- Bryan Lignite 396 MW; 1982 - Comanche Peak No. 2 69 M W. A•4 The magnitude of the projected capacity deficiencies, without the proposed plan, coupled with the rapidly increasing costs of natural gas and fuel oil, the March 1976 natural gas curtailment order of the Texas Railroad Commission (CUD 600), and policies of the Federal Government to discourage new generating plants from using fuel oil, act in concert to indicate that the additional generation resources now required should be of the base load category and utilize fuels other than fuel oil and natural gas. Bryan Lignite Plant and Mine The Bryan Lignite plant is a proposed "mine mouth" plant to be located in Crimes County, Texas, near the community of Carlos, Immediately adjacent to certain lignite deposits. It is contem- plated that the plant would include one steam turbine-electric generator of approximately 400 S1\V (net). Design w ould accomodate the subsequent development of a second generating unit. Extensive exploration has been accomplished in regard to the lignite reserves including the drilling and logging of many hundreds of test holes. The field data demonstrates the presence of two major lignite beds which could be used in Bryan Lignite, if acquired by the Agency. Analyses of the field data are presently in process and are expected to be available in final form in the near future. The Paul Weir Company, which has executed the exploration program and is presently analyz. ing the information, has emphasized that the material submitted to date, which has been used in the preparation of this report, must be considered preliminary. The mining cost and thus the fuel cost reflected herein must therefore be considered to be preliminary. The target date for commercial operation of Bryan Lignite is 1981. We believe that date to be reasonable, provided the long le,d-time equipment items are placed on order soon. Required Bond Issues To identify total bus-bar costs of the individual projects of the power supply program described herein, as of the time of their comming into service, we have estimated the aggregate amount of bonds to be issued on the assumption that all of the bonds for a project item vvere issued at the beginning of coustruction (e.g. 1976 for the Bryan Lignite power plant sand 1977 for the Bryan Lignite mine). The following details of bonds issxes are on that basis. While step-financing is now being initiated and may continue. leading to possibly somewhat lower interest cost during construction, we do not believe that the diffe, ence wil'- be significant in an overall analysis. The aggregate amount ce bonds to be issued for the Bryan Lignite plant and mine, respectively, represent 9Wo of cost on the vssumption that Brazos accepts a 1% owroership interest, (a) Bryan Lignite Power Plant Tippett & Coe, Consulting ingincers, have been retained to design the Bryan Lignite power plant, However, since little design has been accomplished thereon, we have relied upon basic cost data supplied by Tippett & Cee in relation to the San Miguel Lignite Plant The San Miguel Plant is a project located in southern Texas which is very similar to the Bryan Lignite power plant and is presently I•eing designed by Tippett & Coe. The Bryan Lignite preliminary power plant cost esti- mates have been developed by extrapolating and adjusting the Tippett & Coe cost estimates for San Ivf iguel. By letter to the agency dated August 13, 1978, Tippett h Coe agree that the adjustments which we made to the estimates for San Sliguel are reasonable. Nevertheless, the Bryan Lignite Plant capital costs and annual costs based thereon, as citilized for purposes of this report, must be considered to be preliminary, Relating the capital cost estimates of San Miguel to Bryan Lignite plant and assuming that the time frame and methods of development for the plaids will be similar, the Bryan Lignite plant is estimated to require the issuance of ",2W,000 of bonds, in accordance with the following tab- ulatio t A-5 ESTIMATED BOND ISSUE FOR BRYAN MGN1TE PLANT ($000's) Cost of Construction(!) $259,140 Net Interest During Construction ("Net IDC") (2) 50,862 Reserve Fund(3) 29,493 !forking Capital(4) 3,482 Contingency Fund(5) 0 Financing, Legal and Other Costs of Issuance(6) 5,223 Total Bond Issue $348,200 (1) Preliminary estimates, as of time of construction. (2) Interest cost to 1/1/81 (at 73i less investment earnings on all available funds (at 6ri4S'e). (3) One-year of level debt service at 7bVc interest, 30 maturities. (4) At 151o of bond issue. (5) Assumed to have been established in connection with Comanche Peak financing, which project is expected to be in service first. (6) At I q % of bond issue. 1b Subseauent to the preparation of the calculations used in this report the Agency received a cost estimate from Tippett h Gee for the Bryan Lignite power plant and step-up substation "based on an initial operation date of January, 1981". When adjusted to include comparable facilities the most recent estimate shows a construction cost of $229,796,000 (at 991/c Agency share). This compares with $259,140,000 used in our studies of the cost of power from Bryan Lignite. Although the most recent Tippett dr Gee cost estimate is approximately 107 lower than the cost estimrte used 'icreln, the report has not been changed. (b) Bryan Lignite Aline The most recent capital cost estimates provided by the Paul Weir Compm,y (Appendix B to the Official Statement) for the development of a mine which would produce lisnite in sufficient quantities to fuel a 400-SEW unit is estimated to be $60,200,000, In 1976 dollars. Vie extent to which these costs should be escalated to reflect an initial mining date of 1980 has not'aern identified by Weir. Similarly, a specific cash flow forecast has not been provided. In order to identify a preliminary level of bond requirements for the mine alone, it was thus necessary to assume the same cash flow pattern as was forecasted by Weir for the San Miguel Mine. For present purposes, e•c have escalated the 1978 cost figures provided by Weir and added 15% for contingencies, to which we have further added an allowance for mine land costs as estimated by the Agency ($5,942,000), with a resulting construction cost figure of $93,670,000. The Agency's share, at 99;"0, is $92,733,000. This results In an estimated bond issue of $119,300,000 for the mine as follows: ESTIMATED BOND ISSUE FOR BRYAN LIGNITE MINE ($000's) Cost of Construction (1) $ 92,733 Net IDC (2) 13,384 Reserve Fund (3) 10,200 Working Capital (4) 1,193 Contingency Fund (5) 0 Financing, Legal and Other Costs of Issuance (6) 1,790 Total Bond Issue . $119,300 (1) Preliminary estimate as of time of construction, including acquisition of land and land rights. t Notes continued on following page) A•6 (2) Interest cost to 1/1/81 (at 7rMIc), less investment earnings on all available funds (at 6tf%). (3) One-year of level debt service at 7W'C interest, 29 maturities, (4) At I% of bond issue. (5) Assumed to have been established in connection with Comanche Peak financing, which project is expected to be In service first. (6) At 1ti% of bond issue. On a preliminary basis, the aggregate dollar amount of bonds to be issued for Bryan Lignite is Indicated to be $467,500,000, before related transmission and communication facilities. Taking into account operating expenses (hereinafter discussed), as well as debt service and coverage, our estimate of the at-site cost of power reaches a level of 29.93 :ails per kilowatt-hour in 1983, assuming an 80% plant factor. The principal unresolved factors relating to Bry,.n Lignite include the completion of design; development of a mining plan; final de'rrmination of the quantity, quality and costs of lignite fuel and acquisition thereof; the kfcntification of a final transmission plan; and the preparation of final capital cost estimates by the engineers responsible for the study and design of the respective facilities. (c) Comanche Peak Comanche Peak is a joint effort of Dallas Power & Ligi;t Company, Texas Electric Service Company and Texas Power b Light Company, which are subsidiaries of TU. Construction was initiated in December 1974 on two 1,150-MW steam turbine electric generator units whose heat source to provide steam will be two pressurized-water nuclear reactors. Commercial operation of the first unit is scheduled for 1980 and the second for 1982. The plant is located in Somen,ell County, Texas, approximately five miles north-northwest of the town of Glen Rose, and 40 miles southwest of Fort Worth. The Agency and Brazos are negotiating an agreement to acquire a 107c ownership Interest in Comanche Peak. '"he Agency would acquire 61,,o and Brazos 4%, TU has furnished an estimated cost of construction and cash flow relating to Comanche Peak. Based on the TU figures, the co,t to the Agency of acquiring 6VO is indicated to be $52,643,000, excluding fuel, in view of the uncertainties regarding when ownership will be acquired, the final provisions of the joint ownership agreement, involvements before regulatory bodies and the consider. able time remaining In the construction period resulting in exposure to escalation and delays, an amount of $7,897,000 has been added to the TU figures bringing the direct cost level to $60,540,000, exclusive of fuel and IDC experienced by the Agency, The initial fuel loading is assumed on the basis of the Agency's securing yellow cake on the open market and all subsequent processing and treat- ment by TU with the Agency paying its allocated share thereof. The fuel investment to be capital- ized Is thus identified as $11,503,000. Based on the TU cash flow forecast and the Agency's total financial obligation including IDC and fund requirements, the total amount of bonds estimated to be required for the Igcncy to acquire a 6% interest in Comanche Peak is indicated to be $90,000,000 as set forth in the following tabulation; ESTIIIIATED BOND ISSUES FOR COMANCHE PEAK ($000's ) Unit No. l Volt No. i Cost of Construction and Initial Fuel (1) $48,132 $23,911 Net IDC . 7,052(2) 4,681(3) Reserve Fund (4) . . . . 5,216 2,608 Working Capital (5) 640 320 Contingency Fun . 2,000 0 Financing, Legal and Other Costs of Issuance (6) . , . 960 480 Total Bond Issue . $84,000 $32,000 (See notes on following page) A•7 (1) Amounts are based on cash flows provided by TU plus an allowaace f Nr yellow cake and contingencies. (2) Interest cost funded to 1/1/80 (at 7W/Ic), less investment earnings on all available funds (at 83170 (3) Interest cos. funded to 1/1/82 (at 7rJ%), less investment earnings on all available funds (at6>ivv). (4) One year of level debt service at 71/2Sc interest, 35 maturities. (5) At 1%a of bond issue. (6) At 1 S491o of bond issue. Taking into account operating expenses (hereinafter discussed) as well as debt service and coverage, our estimate of the at-site cost of power based on 1993 operation of both Comanche Peak units at 750,1L, plant factor is indicated to be 18.9 mills per kilowatt-hour. There are obvious unresolved problems relating to participation In Comanche Peak. Of principal significance is the absence of an agreement between the parties through which the Agency would purchase an ownership interest. A draft agreement has been the subject of negotiations for the past two years but it is presently not known when agreement might be reached by all pa-1-s. Negotiations are continuing. Of substantial significance in relation to the terms of the join, ownership agreement is the question of whether the Agency must supply yellow cake from purchases on the open market or whether it would participate in that function with TU in the same manner that it will participate In all other capital and annual costs relating to Comanche Peak. The forecast differential of fuel costs are substantial, being the difference between 3.3 to 4 mills and 7.5 mills per kilowatt hour, et a 1980 level of cost. We have used 7.5 mills in our present calculation of expenses. Still to be resolved is the acquisition of ownership Insofar as approval is required by the Nuclear Regulatory Commission (NRC). NRC must process information and the applications relating thereto under certain regulations and requirements. Although this regulatory process has been initiated, it Is not possible to determine the complete magnitude, scope and time requirements of the process at this time. (d) Transmission and Communication Facilities The additional transmission facilities required to deliver the output of the presently proposed generating facilities have been Identified In preliminary power flow studies but no defirdte plan has been formulated. Delivery to the Cities is anticipated to be accomplish,-d to some extent through existing Binzos transmission facilities, new agency facilities, and the facilit"" of other utilities in the are,, through TIS. Present contrnctual arrangements providing a method of delivery are only those contained In the 196:3 Interchange Agreement heretofore identified, which has provided the basis for the previous pooled operation of the Cities' generating facilities. Necessary transmission agreements must be developed prior to the time at which producti(,n will be available. The transmission facilities and/or contemplated arrangements for transmission and the operation of the generating facilities of the Cities In coordination with those of the Agency could be sub- stantially influenced by the controversy which has arisen in Texas among major electric utility entities In regard to intrastate and Interstate connections. The resolution of this problem could involve a lengthy time delay and precipitate the need fer further study as to specific courses of action which should be pursued as to transmission facilities in connection with Bryan Lignite and Comanche Peak. On a tentative basis, to arrive at an order of magnitude estimate of the potential transmission investment of the Agency, certain facilities hate been identified and their cost of construction estimated by the Agency. It was then assumed that Brazos wou) I participate to the extent of one percent of A-8 f such costs as could be related preliminarily to Bryan Lignite and to the extent of 4rc of the balance of the costs. The latter percentage was established on the basis that the system loads of Brazos and the Agency represent 40r0 and 60! c, respcctively, of the tota Brazos-Agency load. On this basis and assumption, the Agency's petential investment in transmission facilities, including expansion of existing microwave communication facilities and engineering studies which are to be accomplished in rela- tion to the requirements of equipment for tl c establishment of economic dispatch procedures, the tentati,r~ aggregate funds required by the Agr ncy, on a bond issue basis, are estimated to be as follows. ESTIMATED BOND ISSUE FOR TRANSMISSION AND COMMUNICATION FACILITIES ($000's) Cost of Construction (1) $129,000 Net IDC (2) . 9,826 Reserve Fund (3) 13,061 Contingency Fund 0 Financinb, Legal & Other Costs of Issuance (4) _ 2,313 'total Bond Issue $154,200 (1) Represents a series of assumed items in senior at successive dates. (2) Interest capitalized on all expenditures prior to 10!1!80, on subsequent expenditures to end fiscal year in which placed in service (all at 7%%); less earnings on all available funds (at 64%) to end of capitalization period. (3) One year of level debt service at 7%1 c, 2.1 maturities, (4) At I%% of bond issue. Proposed Operation and Expense Of particular importance in arriving at forecasted operating costs of the Agency and the resulting charges for power and energy to the Cities is the assumption made by us that all generating units - owned by the Agency and the Cities -will he operated to serve the entire power and energy require. ments of the Cities on an "economic dispatch" basis. This means that the Agency, through a central control center, will determine at all times which generr...ng units are to be operated and at what leva. This is not specifically provided for in the Power Sales Contract but, in our opinion, it is the only practical basis for obtaining the optimum economy in overall power cost, Accordingly, we believe that agreement pertaining thereto should be entered into as suggested above under description of the Interchange Agreement. We have assumed that economic dispatch will be effectuated and we have determined the amount of generation required from each generating unit of each City which, when coupled with generation by the Agency's units (at high load factor), will provide the total power requirements of all parties from year to year, delivered to the respective "points of delivery". It Is also assumed that, for operational purposes, the pooling arrangement will be Integrated Into the T1S which provides mutual spinning reserves and emergency service, Under the plan representr.d herein, each City would bear its own "fixed costs" c f its generating equipment but would be crecitcd with the variable costs (principally fuel) associated with the Agency's request for power output, The operating expenses of the Agency for its own generating and transmission facilities, otter than fuel, have been estimated on the basis of broadly appilcable unit cost,; t ansmission expenses include a dispatching group; accounting, administrative and general expenses have been estimated oti the basis of salaries and expense of a pro forma organlzadon together with costs of Insurance, outside services and other typical administrative and general costs. A9 Fu e' Cots Fuel expense for the Bryan Lignite has ioeen estimated on the basis of operation and maintenance expense associated with the Bryan Lignite mime, as supplied by the Paul Weir Company. Such expense was first reduced to a unit basis and then escalated at an annual rate of Toc,'o, before application to the estimated annual energy production of the Bryan Lignite. Fuel expense for Comanche Peak was estimated on the basis that the Agency would be required to purchase yellow cake under prevailing market conditions. On this basis, the fuel cost was esti- mated to be approximately 7.5 mills/kMh in 1980. Annual escalation of 4,0% was assumed for projecting beyond 1980. Fuel expense for the operation of the generating units of the Cities was based on a projection of the annual unit cost of natural gas prepared by Cawley, Gillespie & Associates, Inc., gas consultants, Fort Worth, Texas. The present estimate of the furl cost from Bryan Lignite Including debt service and coverage is equivalent to $1.26 per million Btu in 1983. This may be compared to $2.54 for natural gas as pro- jected by Cawley, Gillespie & Associates, Inc. Overall Financial Analysis The Agency's effort to secure and develop alternative fuel resources and new generation facilities must be pursued in an era of rapidly escalating prices and intense competition. Lignite is the only fuel found in Texas that can be considered a reasonable substitute for natural gas or fuel oil. The remaining unencumbered lignite deposits of reasonable quantities and quality are, as would be expected, not the choice deposits. With all basic costs forecasted to be substantially abova the historical counterparts, it should thus be expected that resulting energy costs in the financial fore- casts presented herein will also be substantially higher than fhose experienced historically. Integrating all of the basic nformation provided to us and the material developed herein in relation to Bryan Lignite, partic pation in Comanche Peak, and the presently assumed investments in transmission and other facib ies as proposed by the Agency, we have developed P. r rojection of the operating resul& for the Agency as shown in Table I attached to this report. The resulting unit costs of power delivered to the Cities are as follows: UNIT COSTS TO CITIES FOR POWER SUPPLY FROM AGENCY (Total Plan) Yearby Present Year Bash Korth Bull Year millsAWh) (mRU/kWh)• A117 17.33 16.21 1978 19.58 17.10 19'19 20.62 16.83 19;10 24174 18.87 1961 32.29 23.02 1982 31.82 21.20 1983 32.97 20.53 .10 1984 32.95 19.18 1985 33.85 18.41 1946 34.98 17,78 ' Discounted at 7%. Applying the estimated ecsts of Agency power as developed In our studies, the forecasted operating results of the individual cities indicates :hat the cost of power purchased by the ultimate customers of the Cities will need to inriewe substantially although the trend in the amounts indicated to be required from the customers on a per unit base.,, is con parable to the sharply increasing trend experienced in recent years, when fuel adjustment charges are cousidr red. A-10 it i HISTORICAL AND FORECASTED AVERAGE COST OF POWER - ALL RETAIL CUSTOMERS (01kWh)(1) (Total Plan) Year Bryan Denton Garland Greenville 1968 1.55 1.66 1.62 1.84 1969 1.46 1.68 1.57 1.89 1970. 1.42 158 1.53 1.86 1971 1.38 1.56 1.50 1.77 1972 1.29 1.50 1.43 1.87 1973 1.44 1.64 1.49 2.06 1974 158 1.46 1.74 2.18 1975 2.00 2.08 2.26 2.93 1976 273 239 2.77 3.39 1977 3.33 3.05 2.88 3.59 1978 4.09 3.24 3.11 3,89 1979 4.65 3.32 3.21 4.04 1980 5.13 3.72 3.66 4.53 1981 5,91 4.47 4.47 5.42 1982 5.77 4.37 4.41 5.40 1983 5.80 4.44 4.52 5.55 1984 5.72 4.39 4.52 5.53 1985 5.75 4.41 4.88 5.56 ` 1986 5.80 4.50 4.70 5,68 (1) Estimated for 1976 and subsequent years. The foregoing results do not reflect the benefit of revenues from the sale of surplus power and energy to other utilities which may occur from time to time. Assumptions Many significant basic assumptions, reflected herein and in our studies, have been made, including the following: 1. That the Cities and the Agency have executed the Power Sales Contract and approved Bryan Lignite as a proje-. as required therein, and by so doing are committed to the complete financing t' ereof and obligated to meet annua', costs relative thereto. 2. Participation by we Agency in Comanche Peak and the availability of Unit 1 to meet load by the summer of 1980 and of Unit 2 by the summer of 1982 3. Availability of power from Bryan Lignite to meet load by the summer of 1981. 4. Operation of the generating units of the Agency and the Cities on an economic dispatch basis through a central dispatch center and as an increment of T1S. (Requires agreement among the parties not yet consummated.) 5. Availability of transmission arrangements and/or facilities to deliver power to the Cities as and when needed. (Requires agreement among Brazos, the Agency and others.) 6. Participation by Brazos in one percent of the capital and operating costs of Bryan Lignite. 7. The obtaining of licenses and permits for constructica and operation of Bryan Lignite and Comanche Peak and necessary transmission facilities on a timely basis. 8. Bryan Lignite, Comanche Peak and necessary transmission facilities will be completed within the given preliminary cost estimates. A•11 I~ 9. The Agency's share of yellow cake required for Comanche Peak fuel will be obtained on the open market and all subsequent processing and treatment will be accomplished by TU with the Agency paying an allocated cost thereof. 10. That the surplus of monies from debt service coverage after deduction of the cost of (or provision for) renewals and replacements will go to reduce succeeding charges to the Cities for power and energy. 11. That adequate quantities of lignite fuel will be secured from the identified reserves. 12. That the property of the Agency and receipts and revenues from the sale of power and energy are exempt from taxation. Attention is called to the qualifications of estimates given under various headings herein. Conctusiow In view of the basic information available at this time and our study and evaluation of same, together with information provided by the staffs of the Agency, the individual Cities and TU, we have reached the following conclusions: 1. Load projections with which we agree, together with indicated future problems with h'storical fuel supplies, show that without additional power supply resources, the Cities as a group will face growing deficiencies in electric generating capacity and energy starting in 1931. 2. The units planned for construction or acquisition by the Agency should be of the base load category, and the Agency's efforts with respect to developing additional resources and related facilities have been appropriate. 3. To obtain the results reflected herein, the ownership interest of the Agency in Comanche Peak, as well as that of Brazos in Bryan Lignite (if any) must be resolved, appropriate and necessary transmission facilities and/or arrangements with respect to the transmission of power and energy from Bryan Lignite and Comanche Peak must be further delifneated, and ownership of an adequate lignite fuel supply rnnst he achieved. Furthermore, necessary construction and operating permits must be obtained on a timely basis. 4. Within the preliminary capital cost estimates and engineering opinions referred to herein and on the basis of the many assumptions used in our studies, some of which are stated above, Bryan Lignite is a feasible project. Where applicable to our analyses leading to the full report and this summary thereof, we have relied upon audited financial reports of and figures supplied to us by the respective Cities at our request. We have reviewed the Official Statement to which this report is appended and, in our opinion, the data presented therein which is attributed to us is accurately presented. Respectfully Submitted, 1 /s/ R. W. BECK AND ASSOCIATES A-12 erv I m n mo 0 0 o zo N 'goo ~~`-'g~~s~8o ma5~tsz~m~c3 y c. O to g < ° 5 0 > g5T 2n g N ~y o 'A ° < 7 D° C 7 G, < cr. R ay 0 ~ N~ N H H H& NpNN N N A vs N `~y~p fY~ ~ ~ ~ I I ~I 6C~INNCJR W~W [OiJ fV by q Oa I G r•+ NO H N NN NHN N ~ A H l~~ , 10 .0, o If ~I I II Il~w I~ I~ [^=fS at N ^i 05 8 ~s O II II ~~IItx~ ~I I I O N N G G NN NGNI N G N H C~ J J i J J J r v WtWa I to.~ ..Y'°SA.U~ g.yw ml m t~ e • N N N G NG NGN N N H N v ,p y r t.1 w O O Q~ N m J N f.~ ~ N ~ t~~ O W O O 00 N N W H 14 O~ G W N A TJ ,A E a 5 N N N N NH NGH N N P. kG ~ v G u aN uGN G N u r pp pp !D rL.ppt 1° r~+ ~~p ~.j W G~R ~ ~ ,WAp ~pm ~mO pWO i.+ r ~.a t!1 O Q1 ~m ~ 'A 0 pG Cn~ Im W I~ IinIWVm01GIW W D O N N G N H G NQ~Q H NG~pp G ~ ~ J r r C+J W W J ~ r• A l~ N A N W Vl r~ R` A ~!3 W r W m ~ 1 s+ A Ln ;R N N N N NN NNG .0 N N G H. N H F• ~ p"'p ~r J Qpp ~ i•.' A N VI A ~ A W r W Nt C+ N Y W VI Y. 1 al9°.L APPENDIX B PAUL WEIR,'Cu.DCR CARLE AOOPCi S'WEIRCO' ,as. nt, TELEX 25-A27, PAUL WEIR COaiPANY INCORPORATED MINING ENOINLERS AND GEOLOGISTS VICE PRLkf DLPT{ i312i 34!•0275 DAVID J. XAC HI9 20 NORTH WACI{[R DRIVE RATMoMD E. Zzacstra [AN JAMts E, McNuLTY CHICAGO, ILLINOIS 60606 DOINALD H. DOWLIN ,JOHN P WsIR,.RLSmCPT WILLIAM A. SM IrM RICMARV W. STOREY .JOHN E.000D, SENIOR clcc PRU,DcNw MARTIAL P. CoRRrvsAu ALFR JOMR S.SNYDER,CC"PTPDLLCP ED E, F AISLA7 F. DUZV zY R. WILLIAM ARR[RROL2 August 11, 1976 Ref: Our Job No. 2165 Mr, F. X. Smith Project Director Texas Power Pool, Inc. Forest Park Center 7111 Bosque Blvd. Waco, Texas 76710 Re: Bryan Lignite Mining Costs Dear Ken: In accordance with your request, we have again conducted a preliminary estimate of capital r and operating costs for a 2.4 million tons per year lignite strip mine in the Bryan Lignite reserves. The results are presented herewith. As you know, the field phase of the exploration program has just recently been completed and evaluation of the data is still in progress. Therefore, we have based this study on incomplete geological data which is certain to be revised upon the completion of the final reserve estimates. The mining requirements have been estimated from reserve averages rather than a detailed, site specific rrdning plan. Due to the large number of assumptions we have had to make based on inoom- plete information, we urge you to treat the estimated costs as "ball park" figures which are accurate I to perhaps plus or minus 15 percent. f B•1 Reserves in order to keep the stripping requirements as low as possible we included oily those reserves between 20 and 100 feet of overburden cosrr resulting in a 29-year mine life. 'This also slightly reduces our concern about highwall and spoil stability problems at deeper depths. The reserves considered in this study are tabulated below: Recoverable Overburden Tons Ratio A Scam 38,190,000 393,491,000 10.30 B Seam 32,032,000 389,619,000 1216 Total 70,222,000' 783,110.000 11.15 Although two seats: will be mined, they will not be mined in the same area; therefore, this is ♦ essentially single-seam stripping. At 2.4 million tons per year the reserves will last for 29 full years. Alining Study Assumptions A. Type of Alining Dragline Stripping B. Production Schedule . 2,400,000 tons per year C. Life of Project . 29 years (69.6 million tons) D. Depth of Stripping . . 100 feet maximum E. Lignite 2 beds: A Seam - 6.1 ft. avg. B Seam - 4.8 ft, avg. F. Average Virgin Ratio 11.15 c.y./ton G. Average Effective Ratio . 14.50 c,y./ton (307c for rehandle and scheduling) H. Average Haul Distance 32,000 feet 1. Ash Haul . 32,000 feet (350,000 tons/yr. ) J. Overburden Drilling and Blasting None required K. Pit Design Average out stripping requirements ove: the project life rather than start :hallow and mine to deep end in later years L. Climate . . Vet, humid, rainfall - 45" M. Reclamation In compliance with Texas Railroad Commission Regulations aNoTE. Not all of the subject reserves are adequately defined by closely spaced drilling. Not alJ are currently controlled by Texas Power Pool, Inc. B2 CAPITAL COSTS The prices and costs shown below are expressed in constant July, 1976 dollars and include a 15 percent contingency allowance. Life of Initial Replacement Mine Item Capital Capital Capital i Major Excavators $38,570,000 - $ 36,570,000 Shops, Offices, Electrical Distribution, Initial Roads, Eta 3,105,000 - 3,105,000 Coal and Ash Haulers 3,847,000 $19,235,000 23,062,000 Other Support Equipment . 8,750,000 35,861,000 44,611,000 Subtotal (Equiprm!nt 8r Facilities) $42,27$000 $55,098,000 $I01,388,000 ADD Engineering and overhead . $ 3,523,000 - $ 3,523,000 Preproduction stripping and drainage . 2,905,000 - 2,905,000 Initial parts inventory 1,500,000 - 1500000 " Subtotal $ 7,928,000 - $ 7,928,000 Grand Total (Depreciation Base) $60,200,000 $55,098,000 $115,298,000 PRODUCTION COSTS These prices, wages, and costs are expressed in constant July, 1976 dollars. Item Annual Cost Cost Per Too Labor $ 4,457,000 $1.88 Supplies & Power 5,486,000 2.28 Taxes 5 Insurance 784,000 0.33 Royalty . 480,000 0.20 Subtotal (Cash Ccsts) . $11,207,000(1) $4.67(1) ADD Depreciation $ 3,9"8,000(2) $1.68(2) Total Production Cost $15,183,000(3) $8.33(3) Assuming 5,000 Btu/lb. (as received): Fuel Cost = $6,33 = 10 = $0.833/Million Btu Noses: V (1) Cash costs include all labor and supervision and parts and supplies and fuel and power for operations and maintenance, and Insurance and property taxes, and royalty at 20 cents per ton - to mine and haul lignite to a central delivery point; and to haul plant ash (not including slurry from scrubbers) back to the pit and bury it in the spoil; and to reclaim the land disturbed by mining. (2) Includes replacement of short-life capital items over life of mine. (3) Does not include coal handling beyond the truck dumping point (i.e., stockpiling, reclaiming and crushing); corporate overhead; cost of money; outside management or operating fee (if any); or return on Investment. B•3 We repeat that these estimates are not based on detailed or final mining studies. However, based on information and data accumulated to date, we believe the figures are within about plus or minus 15 percent accuracy. If you have any questions we will do our best to answer them. With our regards, Sincerely yours, PAUL WEIR COMPANY Js/ D. L. SCHAIBLE D. L. Schaible Isl J. E. GOOD J. E. Good S-4 APPENDIX C City of Bryan The financial statements included herein for the municipal :-Wity system for the year ended June 30, 1975 and preliminary financial statements for the year ended June 30, 1976, have been excerpted by the City of Bryan from its full financial statements. Consequently, certain footnotes do not relate to the financial statements included herein, C-1 CITY OF BRYAN, TEXAS UTILITY FUND Balance Sheet June 30, 1975 Assets Current Assets Cash on i,and and in bank $ 424,647.09 Accounts receivable - customers $ 1,016,941.99 Less allowance for uncollect- ible accounts 31,458.13 985,483.86 Accrued interest receivable 74,012.34 Deposits receivable 25,900.00 Due from Rural Electric Division 47,874.90 Due from other funds 20,5C2.05 Investments 300,000.00 Inventory of fuel oil and gas 423,060.87 Prepaid postage 2,497.52 Prepaid insurance 46,672.05 Prepaid power pool expense 170879.00 $ 2,368,529.68 Restricted Assets Cash with bond paying agents $ 2,443,249.22 Bond reserve and bond contingency (see schedule below) Cash in bank $ 1,942.90 Investments 1,502,841.00 1,504,783.90 Revenue bond construction fund Cash in bank $ 57,225.66 Investments 11,010,000.00 11,067,225.66 Customers' deposits Cash in bank $ 18,774.74 Investments 160,000.00 178.774.74 15,194,033.52 Stock of Texas Municipal Power Pool, Inc. 200.00 Ff.-ca Assets Property, plant and equipment $53,159,903.80 Less accumulated depreciation and amortization 10,751,477.61 42,408,426.19 Deferred Charges Unamortized bond issuance expenses 5 78,258.43 Deferred lignite investigative costs 45,775.91 124,034.34 Total Assets $60,0951223.73 The bond reserve and bond contingency funds are as follows: Bond reserve $ 1,389,683.90 Bond contingency 115.100.00 Total X504.783.90 The bond reserve fund is in excess of the amount requi:ed by the bond indenture. The unperformed portion of the outstanding construction contracts at June 30, 1975 which will be paid from revenue bond construction funds amounted to $7,904,662.43. C•2 Liabilities, Reserves, Contributions and Retained Earnings Current Liabilities (Payable from Current Assets) Accounts payable, including sales tax $ 880,339.18 Due to Rural Electric Division 6,880.67 Due to other funds 138,525.23 $ 1,0.15,745.08 Current Liabilities (Payable from Restricted Assets) Matured bonds and coupons payable $ 477,014.79 Revenue bonds due July 1, 1975 1,045,000.00 Tax bonds due July 1, 1975 15,000.00 Interest due July 1, 1975 904,516.25 Total for which funds have been deposited with paying agents $ 2,441,531.04 Tax bonds due within one year less $:5,000.00 due July 1, 1975 shown above 77,000.00 Interest payable thereon 14,066.15 Customers' deposits • 178,774.74 Accounts payable for construction 741,387.62 Contractors' funds withheld 2682221.09 3,720,980.64 Other Liabilities Revenue bonds payable $40,890,000.00 Less due within one year shown as current 1,045,000.00 $39,845,000.00 Tax bonds payable $ 2,222,000.00 Less due within one year shown as current 92,000.00 2,130,000.00 41,975,000.CO Total Liabilities $46,721,725.72 Reserves Bond reserve and bond contingency $ 1,504,783.90 Reserve for encumbrances 75,796.29 10580,580.19 Contributions Contribution from municipality $ 1,129.30 Contributions - improvements made by developers 1,053,473.13 Contributions from government grants 1,2489959.80 Contributions in aid of construction 345,399.18 2,648,961.41 Retained earnings 9,143,956.41 Total Liabilities, Reserves, Contributions and Retained Earnings $60,095,223.73 C-3 C11Y OF BRYAN, TEXAS BTTLIIY FOND Statement of Revenuesand Expenses - Budgeted and Actual Year Ended June 30, 1975 Over (Under) Budget Actual__ _ Bud e~- Operating revenues Electrical system revenues Residential. sales $ 2,685,400.00 $ 2,623,755.39 61,644.61) Commercial and industrial sales 2,860,309.00 2,771,423.70 ( 88,885.30) Public street and highway lighting 37,602.00 39,591.02 1,989.02 Other sales to public authorities 467,835.00 250,021.80 ( 21.',813.20) Sales for resale 2,216,463.00 2,88?,201.25 670,738.25 Other municipal sales - inter- departmental 140,707.00 176,254.53 35,547.53 Other municipal sales - other Municipal departments 76,599.00 41,891.12 ( 34,707.88) Pole and transmission line rental 17,987.00 17,809.67 ( 177.33) Service charges - other city departments and divisions 226,832.00 205,431.15 ( 21,400.85) Forfeited discounts ai.., penalties 25,718.00 25,900.61 162.61 Miscellaneous income 34,825.00 17,443.96 (__l 7 L38 1. 04) Total electrical system revenues $ 8,790,277.00 $ 9,056,724.20 $266,447.20 Water system revenues Residential and commercial sales $ 1,041,670.00 $ 962,702.51 78,967.49) Other sales to public authorities 13,699.00 13,036,84 ( 662.16) Sales for resale 159,762.00 212,639.93 52,877.93 Municipal sales - inter- departmental 106,000.00 105,802.34 ( 197.66) Municipal sales - other municipal departments 12,950.00 81780.97 ( 4,169.03) Forfeited discounts and penalties 17,100.00 18,554.80 1,454.80 Miscellaneous income 3,001.00 6,050.84 3,050.84 Total water system revenues $ 1,354,181.00 $ 1,327,568.23 26,612.77) Sewer system revenues Regular service connections $ 429,115.00 $ 446,676.48 ; 17,561.48 Other municipalities 12,920.00 13,209.09 289.09 Forfeited discounts and penalties 3,625.00 3,923.97 298.97 Municipal sales - inter- departmental 96.00 197.82 101.82 Municipal sales - other municipal departments 6:4.00 776.64 152.64 Miscellaneous income 6; 00 ( 65.00) Total sewer system revenues $ 446,445,.10 $ 464,784,00 X18,339.00 Other operating revenues Interest on debt service funds $ 145,760.00 $ 159,284.89 $ 13,524.69 Interest on current operating funds 21,040.OC 35,864.62 8,824.62 W-,cellaneous income Total other operating revenues 172,800.00 $ 195,149.51 1_2 2,349.:1 Total operating revenues $10,763,703.00 $11,044,225.94 $kBO,522.94 Continued on next page. C•4 CITY OF BRYAN, 'PERAS UTILITY FUND Statement of Revenuesand Expenses - Budgeted and Actual, Continued Over (Under) Budget Actual Budget Brought fcrward $10,763,703.00 $11,044,225.94 $280,522.94 Operating expenses Electrical system expenses Electric power generation $ 4,851,714.00 $ 4,683,576.31 ($168,137.69) Other power supply expense • 167,000.00 138,266.31 ( 28,733.69) Electric transmission 4,905.00 ( 4,905.00) Electric distribution 625,917.00 241,187.77 ( 384,729.23) Customers accounts expense 401,513.00 365,982.97 ( 35,530.03) Electric power sales expense 13,721.00 13,262.97 ( 459.03) Utility administration 328,230.00 297,903.45 ( 30,326.55) Cash over 960.20 960.20 Total electric system expenses $ 6,393,000.00 $ 5,741,139.98 ($651,860.02 Water system expenses Water production $ 273,324.00 $ 244,266.06 29,057.94) Water distribution 334,141.00 244,922.91 ( 89,218.09) Water department administration 118,485.00 119,560.73 1,074.73 Total water system expenses 725,951.00 $ 608,749.70 ($117,201.30) Sewer system expenses Waste water collection $ 269,794.00 $ 156,925.10 ($112,868.90) Waste water treatment 146,094.00 i12,775.33 ( 13,318.67) Waste water administration 32,987.00 34,006.01 1,019.01 Total sewer system expenses $ 448,875.00 $ 323,706.44 ($125,168.561 Total operating expenses $ 7,567,826.00 $6.673,596.12 ($894,229.88) Fe, income as defined in bond indenture $ 4$70,629.82 Depreciation $ 1,169,327.51 Amortization 11,606.56 _ 1,180,934.07 Net operating income $ 3,189,695.75 Non-operating income Cain (loss) on sali of assets 347.93) Interest on investments - construction funds 467,662.54 Interest on investments - customers' deposits 99375.45 Charges for water taps 100290.00 Charges for sewer taps 9,973.00 Total non-operating income $ 06,953.06 Non-operating expense Bond interest expense $ 1,537,920.24 Fiscal agents' service fees 2,413.02 Bond issuance expense amortized 1,715.31 Total non-operating expense $ 1,542,048.57 Net income $ 2,144,600,24 Transfers to General Fund $ 11000,000.00 Net income retained in fund $ 1,144,600,24 C-5 CITY OF BRYAN, TEXAS UTILITY FUND Statement of Changes in Financial Position Year Ended June 30, 1975 • Sources of working capital Net income for the year (after deducting 144,600.24 $1,000,000.00 transferred to General Fund) $ 1,144,600.24 Add expenses not requiring outlay of working capital in the current period Depreciation (excluding $1,531.55 capitalized 1,180,934.07 depreciation and amortization of fixed assets) 1,715.31 Amortization of bond issuance expense 347.93 Loss on disposition of fixed assets $ 2,327,597.55 Total working capital provided by operations 00 Trade-in allowance for fixed asset 108. ?,327,105.55 Total sources of working capital Dispositions of working capital Fixed assets, including construction in progress, $12,699,401.82 acquired during the year Less Fixed assets paid for by developers $ 54,863.53 Contributions in aid of construction 14,811.77 Fixed assets acquired from revenue bond and emergency reserve funds $12,038,376.46, reduced by $600,000.00 transferred to these funds from operating funds 11,438,376.46 Capitalized depreciation 1,531.55 11 509,583.31 Fixed assets acquired from or financed $ 1,189,318.:x. by operating funds 45,775.91 Deferred lignite investigative costs Removal costs on retirement of fixed assets 18,819.16 charged to accumulated depreciation Increase in debt service assets, before reduction 1,287,006.86 by $929,000.00 for bond principal paid 16,454.64 Transfer of income to Bryan Independent School District $ 557,875.08 Total dispositions of working capital 2,557,875.08 Decrease in working capital Changes in components of working capital Increases $ 349.33 Increase in cash 10, 210 ,599.63 Increase in accounts receivable 17,688.17 Increase in amount due from other funds 13,347.81 Increase in amount due from Rural Electric Division 17,353.00 Increase in inventory of fuel oil, etc. 39 Increase in prepaid expenses 4925,,421900..39 Increase in deposits receivable 48,633.61 Decrease in amount due to other funds Decreases 96 123.92) Decrease in accrued interest receivable 100,000.00) Decrease in current investments 454.88 Increase ir. accounts payable for operating expenses 508,454.88) Increase in amount die to Rural Electric Division ( 6,880.67) Total decrease in working capital 230,169.53) The above does not reflect funds which were deposited to construction funds as follows: $ 463,910.00 Government grants Issuance of $12,500,000.00 revenue bonds 12,456.443.21 less $43,556.79 bond issuance costs $12,920,353.21 C-6 CITY OF BRYAN, TEXAS Explanations and Notes to Financial Statements Statement of Significant Accounting Policies Except as noted in the tvo following paragraphs, the City maintains its accounts and prepares its financial statements as regards all significant matters in accordance with the recommendations contained in "Governmental Accounting, Auditing, and Financial Reporting" prepared by the National Committee on Governmental Accounting and published by the Municipal Finance Officers Association and "Water Utility Accounting" published by the Municipal Finance Officers Association and the American Water Works Association where those publications are applicable, including the illustrative statement formats for Utility Funds. The recommendations include the accrual methos' of accounting. Interest income on investments and interest expense on bonds payable are accrued only in the Utility Fund. The Federal Revenue Sharing Entitlement payments, which are payable after the close of a calendar quarter entitlement period, are recorded on a cash basis. Property taxes are a]located to specific funds only as collected. Notes to Financial Statements 1. The City of Bryan owns a Rural Electric Division. Separate accounts are maintained and a separate report was issued for this Division. 2. The Bryan Independent School District is a municipal school district, and the City must levy a separate tax for maintenance funds and for debt service on bonds. The school maintains its own accounting records. The only school accounts maintained by the City and reflected in thi3 report are the School Debt Service Fund and the School Construction Fund. The school bonds payable, which are not in the City's formal records and which are not reflected in the financial statements, are shown in Schedule 2 for information. 3. The property, plant and equipment of the City of Bryan were appraised as of June 30, 1955 by city employees and these appraised values were recorded on the books as of that date. Assetc acquired after that data from city funds have been recorded at cost. Property paid for by developers since July 1, 1955 has been recorded at coots estimated by city employees as follows: Utility Fund $ 1,053,473.13 General Fixed Assets 23191,651.29 These amounts have not been independently verified. C•7 4. Prior to July 1, 1970 contributions to the Utility Fund for construction were included in retained earnings. As of July 1, 1970, $600,331.08 was transf rred from retained earnings to accounts designated as follows: Contribution from municipality $ 1,129.30 Contributions from developers and others in aid of con- 2`5,971.78 struction Contributions from government 30.00 grants 343,2 600,331.08 The determination of these amounts has not been independently verified. Contributions from these sources since July 1, 1970 have been recorded in the appropriate contribution accounts. 5. The City of Bryan holds safekeeping receipts covering securities which its depositary bank has pledged to secure the City's deposits, including certificates of deposit. An informal appraisal of the pledged securities at Jure 30, 1975 by a Dallas bank indicates that these securities had a value of approximately $2,100,000.00 greater than the deposits at that date. 6. At June 30, 1975 authorized utility revenue bonds not yet issued were as follows: Sewer $ 525,000.00 Electric 3,125,000.00 7. Subsequent to June 30, 1975 the City of Bryan entered into an agreement under r,hich it obligated itself as a member of the Texas Municipal Power Agency4for a share of the Agency's annual operating expenses, payable monthly, which will approximate $83,000.00 for the first twelve month period beginning September 15, 1975, and obligated itself for a 19.3 percent share of $10,625,000.00 of interim financing debt which will require debt service payments, payable y. of $332,657.00 to $362,216.00 per year from August 15, 1976 to August 15, 1984, and a small payment in the ninth year. it to contemplated that this debt will be refinanced as a part of larger permanent financing with changed debt service requirements. All of these obligations are regarded as obligations of the Utility Fund. C•8 City of Bryan Year ended June 30, 1976 46 G9 CITY OF ViYAN, TEXAS UTILITY FUND Balance Sheet and Statemen' of Fund Balance June 30, 1976 Assets Current Assets ~a 256,172.43 Cash in Bank and on Hand 1,273,157.71 Accounts Receivable 6.410.07 1,236,747.64 Less: Allowance for Bad Debts 3 Due from other Funds R. 54,138.77 E.D. $ General Pond 1 .11 61,596 .9 Electric System Construction 6,252 .206. 11 64,413.9 Accrued Interest Receivable _0_ Deposits Receivable 304,73 .56 Investments 432 938.93 Inventory-Fuel Oil 1,517.09 Prepaid Postage 23,158.79 Prepaid Insurance 17,879.00 Prepaid Power Pool Expense 162.37 Total Current Assets 2,5991162-37 Deferred Assets ,420.31 Prepaid & Deferred Bond Costs $ 7565,266.94 Deferred Lignite Investigative Costs 140,687.25 Total Deferred Assets Restricted Assets $ 2,744,277.62 Cash with Paying Agents Bond Debt Service: Cash $ -0- Accrued Interest Receivable -0- investments -0- _0_ Bond Reserve: 457.50 Cash Accounts Receivable _0_ Invew-„mente 1,716,502.01 1,716,959.51 Bond Contingency: _0_ InveCashstments 115,100.00 115,100.00 Other Emergency Funds: $ 38.36 Cash Investments 5499961,64 6009000.00 . Construction Funds: 15 Cash $ 18,015.69 Accounts Receivable 832. Investments 3,170,910.0 Construction in Progress 17 165,180.4 20,354,938.33 Customers' Deposits; 16,666.77 Cash 194.004,61 210,665.38 Investments 25,746,940.84 'Dotal Restricted Assets Long Term Investments in 200.00 Associated Companies $ 44,509,988.15 Fixed Assets 88 Less: Allowance for Depreciation & Amorttzation 11,863, 9.01 2 646 11 .14 Total Fixed Assets r Total al Assets C•10 -t-6M33,109.60 I CITY OF BRYAN, TEXAS UTILITY FUND Liabilities, Reserves, Contributions and Retained Earnings lurrent Liabilities (Payable from Current Assets): Accounts Payable $ 838,098.18 Due to other Funds: General Fund $ 130,489.98 Warehouse Fund 12,450.50 .Rural Electric Div. 5,370.10 148,310.58 Accrued State & City Sales Tax 31,8875.99 $ 1,018,284.75 ;urrent Liabilities (Payable from Restricted Assets): Matured Bonds and Coupons Payable $ 576,008.89 Customers' Deposits 210,665.3$ a, Accounts Payable for Construction 681,027.57 Contractors Funds Withheld 378,367.52 Accrued Interest Payable 1,114,642.114 2,96or711.80 Total Current Liabilities , , 90 - 55 )ther Liabilities: Revenue Bonds Payable $393845,000.00 Tax Bonds Payable 2,130,000.00 Total Other Liabilities , 41,97 000.00 Total Liabilities 45-3-9-53-..79-U-.57 leserves: Reserve for Prior Year Encumbrances $ -0- Reserve for Current Year Encumbrances 46,331.49 Reserve for Bond Debt Service -0- Reserve for Bond Retirement 13716,959.51 Reserve for Bond Contingency 115,100.00 Reserve for Other Emergencies 600,000.00 Total Reserves 2,478,391.00 'ontributions: Contribution from Municipality $ 11129.30 Contribution from Developers 1,161,512.54 Contribution from Government Grants 1,306,009.73 Contributions from Others 360,572.61E Total Contributions 2,829,224,21 letained Earnings: Add: Prior YearrsAdjus montl975 $ 9,?38,356.?2 $ 91140,694.92 Add: Net Income $ 2,784,718.95 Transfers from Electric -0- System Reserve -0- Transfers from Prior Year Reserve 75,796.29 2,860,515.24 Lees: Transfers to Gen. Fund V%J Transfers to Reserves 9270275.61 Tr ers to Constributions qq99 2pzz Encu ranc s2029,712-32 Retained Es.rnings, June 30, 1976 9,671,497.84 Total Liabilities, Reserves Contributions and Retained Parnings $ 60,93,3,104.60 C•1 I CITY OF BRYAN, TEXAS UTILITY FUND Combined Statement of Income and Expenses Month of Year to June Date Operating Income: Electric System $1,3 1,273.48 $ 13,g32,584.7A Water System 16,092.29 1, 73,134.2 Sewer System 55,409.21 577,91+6.63 Total operating Income $1,592,774.98 151 583,665. 64 Operating Expenses:_ Electric System $ 947,081.65 $ 8,691,415.77 Water System 70,738.96 712,813.45 Sewer System 24.075.92 366,316_.30 Total Operating Expenses $1,o41,896.53 9,770,545.52 Net Operating Income Per Bond Indenture $ 550,878.45 $ 5,8132120.12 Fixed Charges: Depreciation Electric Plant $ 87,489.68 $ 902,161.74 Amortization - Other Electric Plant 1,450.82 17,409.84 Depreciation - Water Plant 20,431.36 203,559.36 Depreciation - Sewer Plant 24,859.58 156,100.58 Total Fixed Charges $ 1343231.44 $ 1,2790232.52 Net Income From Operations $ 4161647.01 $ 4,533,888.60 Aron-Operating Income:_ Interest Earned on Construction Funds $ 33,786.85 $ 4263117.26 Interest Earned on CuStomerstDeposits 4,474.52 11,165.55 Water Taps 21990.00 19,33 • 1 Sewer Taps 1,920.00 1!},79.75 Contributions on Construction 3,723.36 16.793.22 Cain or (Loss) on Sale of Assets (3,225.76) 10,723.16 43,668.97 $ 498,935.35 Total Non-Operating Income $ Non-Operating Ex2eense: Bond Interest Expense $ 1,115,081.19 $ 21241,416.49 1 Fiscal Agents' Fees -0- 31850.39 Bond Sales Expense 236.51 21838.12 Total Non-Operating Expense $ 1,115,317-70 $ 2,248,105.00 Net Income to Retained Earnings $ (655,001.72) 2,7841718.95 C-12 APPENDIX D City of Denton The financial statements included herein Jor the electric utility system for the year ended September 30, 1975 have been excerpted by the City of Denton from its full financial statements. Consequently, certain footnotes do not relate to the financial statements included herein, D•1 ELECTRIC SYSTEM FUND BALANCE SHEET CITY OF DENTON, TEXAS September 30 September 30 1975 1974 ASSETS CURRENT ASSETS Unrestricted (Operating Fund): Accounts receivable (less allowance of $104,476 - 1975: $79,500 - 1974) - Note B $ 2,125,888 $ 1,734,738 Inventory of fuel - at cost 338,743 294,485 Prepaid expenses 28,399 74,824 2,493,030 2,104,047 Restricted: Revenue bo:-d debt service: Cash 1,397,411 593,441 Investments at cost and accrued interest - 23,766 22,049 Due from Investment Trust Fund - 714,652 Prepaid expense - 1,000 Revenue bond construction fund: Cash 1,332,49E - Due from Investment Trust Fund 1,801,997 Due from other Electric System Funds - 7,438 20753,673 3,140,577 'DOTAL CURRENT ASSETS 502460703 5,244,624 OTHER ASSETS Revenue bond reserve fund: Cash 11742,648 75 Investments at cost and accrued interest - 26,323 24,421 Due from Investment Trust Fund - 1,512,232 System extension and improvement - cash 1,600,949 907,702 3,369,920 2,444,430 UTILITY PLANT - Note C Land and land rights 2919329 259,816 Electric plant production and distribution facilities (less accumulated depreciation and amortization of $15,028,727 - 1975; $13,742,540 - 1974) 2713789668 27,626,797 Construction in process 224,730 4190213 270894,727 28,305,826 INVESTMENT IN INTRAGOVERNMENTAL SERVICE FUND - 305,296, 295,371 $36.88116.66A6 $36,290,2,51 D-2 September 30 September 30 1975 1974 LIABILITIES AND SYSTEM EQUITY CURRENT LIABILITIES Payable from unrestricted assets: Cash deficit $ 1,552,175 $ 650,656 Accounts payable 1,162,635 547,667 ` Accrued payroll and payroll taxes 26,825 22,437 Due to restricted and other funds 26,519 219,421 Customers' deposits 162,488 151,214 Revenue bonds payable within one year - 4,564 2,950,642 1,596,159 Payable from restricted assets: Revenue bond debt service: Revenue bonds payable within one year 970,000 951,436 Interest 378,443 379,705 Revenue bond construction fund: Cash deficit - 157.436 Accounts payable 9,610 41,471 Due to other funds 39173 263 1,361,226 1,530,311 TOTAL CURRENT LIABILITIES 4,311,863 3,126,470 OTHER LIABILITIES Revenue bonds payable exclusive of maturities due within one year 18,978,000 19,948,000 SYSTEM EQUITY Reserves: For revenue bond contingencies 1,768,971 1,536,728 For system extension and improvement 1,600,949 907,702 Unrealized increment in valuation of utility plant in service - Note C 2,586,227 2,869,386 Contribution in aid of construction 126,600 126,600 Retained earnings 7,444,031 7,775,365 13,526,778 13,215,781 COMMITMENTS AND CONTINGENCIES - Note G I .1646 L36,816 $36,290,251 See notes to financial statements D-3 ELECTRIC SYSTEM FUND STATEMENT OF OPERATIONS CITY OF DENTON, TEXAS Year F.nded September 30 1975 1974 INCOME Electricity sales- Customers $ 9,234,337 S 6,964,932 Intergovernmental 241,738 219,883 Other 31,994 34,429 9,513,069 7,219,244 EXPENSES Salaries and wages 857,426 756,105 Fuel 4,622,194 2,339,827 Supplies 101,171 104,395 Maintenance 207,021 204,499 Insurance 59,119 63,513 Administrative services 381,369 336,623 Services 179,757 74,663 Sad debts 59,655 44,724 Sundry 8,755 22,402 6,476,667 3,946,751 OPERA'ING INCOME BEFORE DEPkECIATION 3,036,402 3,272,493 Provision for depreciation (straight line) 1,003,027 473,005 OPERATING INCOME 2,033,375 2,299,488 Other income - interest 250,718 196,879 2,284,093 2,496,367 Bond interest ind fees _ 896,990 876,644 NET INCOME $ 1,387,103 S 1,619,723 See notes to financial statements D-4 i ELECTRIC SYSTEM FUND STATEMENT OF CHANCES IN FINANCIAL POSITION CITY OF LENIJN, TEXAS Year Ended September 30 _ 1975 1974 SOURCE OF WORKING CAPITAL From operations: Net ircose $ 1,387,103 $ 1,619,723 Depreciation - not requiring working capital 1,003,027 973,005 TOTAL PROVIDED FR(,K OFERAPIONS 2,390,130 2,592,728 Contributions fros. customers and developers - 35,238 Proceeds from sate of bonds - 1,500,000 2,390,130 4,127,966 APPLICATION OF WORKING CAPITAL Additions to plant 875,087 1,092,747 Less additions from reserve for extension and improvement. 495,887 455,923 379,200 636,824 Reduction of long-term debt 970,000 156,000 Transfer to reserve for revenue bond contingency 2320243 199,544 Transfer to general - Note D 792,947 747,690 Investment in intragovernmental service fund 9,925 - Transfer to reserve for extension and improvement 1,189,134 927,015 3,573,449 3,467,073 INCREASE (DECREASE) IN WORKING CAPITAL 1 183 31`. $ 660,893 U•5 ELECTRIC SYSTEM FUND STATEMENT OF CHANGES 114 FINANCIAL POSITION - CONT'D CITY OF DENTON, TEXAS _ Year Ended September 30 1975 1974 CHANGES IN COMPONENTS OF WORKING CAPITAL i i:,crease (decrease) in working capital assets: Unrestricted: Accounts receivable $ 391,150 $ (213,475) Inventory of fuel 44,58 (27,214) Prepaid expenses (46,425) 72,022 Due from restricted and other funds (149,039) 388,983 (377,706) Restricted: Cash 2,136,466 580,222 Due from Electric System Fund (7,438) 15,882 Due from Investment Trust Fund (2,516,649) 1,667,178 Investments at cost and accrued interest 717 (1,263,118) (386,904) 1,000,164 2,079 622,458 Increase (decrease) in working capital liabilitiest. Payable from unrestricted assets: Cash deficit 9012319 228,882 Accounts payable 634,968 218,858 Accrued payroll and payroll taxes 4,388 (14,023) Due to restricted and other funds (192,902) (426,481) Customers' deposits 11,274 12,909 Revenue bonds payable within one year (4,564) (150,768) 1,3549483 (130,623) Payable from restricted assets: Revenue bonds payable within one year 18,564 157,768 Interest (112A2) 6,947 Cash deficit (151,436) 157,436 Accounts payable (31,861) 41,471 Due to other funds 29910 263 Contracts - (271,697) _(169,085) _ 92,188 1,185.398 (38,435) INCREASE (DECREASE) IN WORKING CAPITAL 319) S_ 660,893 See notes to financial statements D-A NOTES TO FINANCIAL STATEMENTS i CITY OF DENTON. TEXAS ` September 30, 1975 Note A - Accounting Policies The financial statements have been prepared in accordance with generally a:c-,,.rt accounting principles for governmental units as prescribed in the publicatio-, Governmental Accounting, Auditing, and Financial Reporting, except where such pub- lication 1~ :ot in agreement with American Institute of Certified Public Account- ants' publicati,3n, Audits of State and Local Governmental Units. Where these pub- lications ire not in agreement, those principles promulgated in the latter publi- cation have been followed. The statements are, therefore, presented in accordance with the principles of "fund accounting.' This is the procedure by which resources' are classified for accounting and reporting purposes into funds that are in accor- dance with activ!.ties or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, certain funds that have similar characteristics have been combined into fund groups. The City records property tax revenue on the cash basis in order to recognize that property taxes are not available for expenditures until collected. Accordingly, the amount shown as property taxes receivable has not been recorded as revenue. The City previously followed the policy of valuing inventories in the Working Capital Fund on the FIFO (first-in, first-out) method, During the cut e.nt year, however, the City adopted the average coat method for inventory valuation. This change in the method of valuing inventories did not have any significant effect on the net income of the Working Capital Fund. The Electric System Fund and the Water and Sewer System Fund are expected to be self- sustaining operations and have therefore been presented on a basis consistent with that of any other commercial enterprise, also as prescribed by the publications refer- red to above. r, Note B - Receivables, Electric System Fund included in trade accounts receivable in the Electric System Fund are amounts dice for water and sewer services provided by the Water and Sewer Fund and garbage ser- vices provided by the General Fund. Utility receivables are all carried by the Electric System Fund to facilitate accounting and collection procedures. Each fund records its own portion of the revenues and losses from these accounts. Note C - Utility Plants and Other Fixed Assets Utility plants and other fixed assets are recorded at cost or market value at date of contribution except as follows: - The net carrying value of the Electric System utility plant in service was increased by $4,851,498 to the appraised replacement value less depreciation as determined by independent consulting engineers at September 30, 1967. The D•7 f NOTES TO FINANCIAL STATEMENTS - CONT'D CITY OF DENTON, TEXAS September 30, 1975 Note C - Utility Plants and Other Fixed Assets - Cont'd increase in carrying value is being amortized directly to Unrealized Incre- ment in Valuation of Utility Plant in Service. Such amortization diring the current year was $283,159, and the remaining excess of recorded appraised value over acquisition cost at September 30, 1975 was $2,586,227. The recording of appraised value in excess of cost is not in conformity with generally accepted accounting principles. Prior to October 1, 1970, contributions of water and sewer systems by developers had not been recorded as assets by the City. The amount of these assets and their effect on the balance sheet and net income (de- preciation) of the Water and Sewer System Fund is not known. Assets contributed subsequent to September 30, 1970, have been recorded and are being depreciated. Note D -Transfer of Excess Revenues from the Utility System Funds to the General ?und The City Charter and the terms of the revenue bond ordinances allow tranfers of "excess revenues" (as defined) of the utility systems to the General Fund in an amount not to exceed six percent of the "net investment" in the utility systems. The City Charter specifies that the "net investment" be taken from the "indepen- dent audit of the utility systems for the last fiscal year." The City attorney rendered an opinion in a prior year that the "net investment" may legally include the appraisal increment. Note E - Notes Payable The note of the Street Assessments Fund is payable to the First State Sank of Denton, Texas, and is due July 5, 1976. Street assessments receivable of a like amount ($4,089) have been pledged as collateral for this note. The note of the Water and Sewer Fund is for purchase of additional land and is due in installments ending January 2, 1976. Land carried at $118,195 is pledged as collateral on this note. Note F - Water and Sewer Fund Debt Coverage The City is required by bond ordinance to maintain net revenues of the Water and Sewer system in excess of 130 per cent of the largest annual Water and Sewer Revenue Bond debt service requirement, During the current year the revenues generated by the water and sewer system represented only 117 per cent, of the LtIgest annual debt service requirement, Effective October 1, 1975, Water and Sewer'rates were increased 20 per cent. NOTES TO FINANCIAL STATEMENTS - CONT'D CITY OF DENTON, TEXAS September 30, 1975 Note C - Commitments and Contingencies As a member of the Texas Municipal Power Pool (Buyers), the City contracted, in the prior fiscal year, with Delhi Gas Pipeline Corporation (Seller) for purchase of natural gas for the operation of the electric production plants of the member systems. Under the contract, the Buyers are obligated to purchase 80% of avail- able capacity of the Seller. The cost to the Buyers was adjusted in the current year, in accordance with the contract to $1.98 per million B.T.U. or an esti- mated total contract cost of $8,524,948 for the :975-76 year, This adjustment, based on the prior years' experience, will reimburse the Seller for all his costa rind allow the Seller a return of 8% on his investment, adjusted retroactively. Should the price of gas to the Seller increase and the Buyers do not wish to pay the increased price, the contract will terminate and a settlement of costs and return on investment will be made as of that date. The contract is for a period of twenty (20) years beginning September I, 1973. Buyers have the option to cancel the contract after tea (10) years by payment to the seller of an amount equal to the net book value of its investment in its facilities at the date of cancellation. Included in General Fund reserve for encumbrances and sundry expenditures and encumbrances is $106,683 accrued for damages assessed in an adverse ruling relating to the adequacy of a City traffic control device. The ruling has been upheld by the Fort Worth Court of Civil Appeals and is presently being pro- cessed for appeal to the Supreme Court of Texas. Several other uninsured suits and claims are pending against the City. In the opinion of the City Attorney and other legal counsel, settlements, if any, would not exceed $33,000. 4 Note H - Subsequent Event On October 30, 1975 the City and other members of the Texas Municipal Power Pool entered into an agreement with the Texas Municipal Power Age~.cy. The Cities agreed to fund $14,453,000 of the Agency's capital expenditures incurred in the development of fuel resources and the planning of new electric generation facilities. The City's total obligation under this agreement is $2,167,950 with required annual payments beginning in August 1977, and ending in August 1985. Annual payments will approximate $241,000. The agreement also requires the City to pay, on a monthly basis, a pro rata share of the operating expenses of the Texas Municipal Power Agency. ll-9 l APPENDIX E City of Garland The financial statements for the year ended September 30, 1975 contained harem have been excerpfel by the City of Carland from Its utility financial statements, I E•1 BALANCE UTILITY (ELECTRIC, WATER, CITY OF September 30 September 30 1975 1974 ASSETS UTILITY PLANT IN SERVICE Land $ 734,276 $ 7340276 Electric plant 639012,059 599832,456 Water plant 229117,254 20,138,184 Sanitary sewer plant 19,203,598 _ 17,437,837 105,067,187 989142,753 Less allowances for depreciation 22,135,904_ 19.L474 777 UTILITY PLANT 823931,283 7806670976 REVENUE BOND CONSTRUCTION FUNDS Cash 6759033 2050835 Federal grants receivable - 110Le F 2,627,638 115860646 Short-term investments - at cost and accrued interest (approximate market) 1,590$94 61783,031 Advance to current utility operations 3,56698-2 4,395,538 Construction in progress - Note E. 45,422,070 23,577,638 TOTAL BOND CONSTRUCTION FUNDS 533882,157 36,548,686 REVENUE BOND RETIREMENT AND RESERVE FUNDS Revenue bond retirement fund - cash on deposit with trustee for current bond interest and maturities 6440277 450,604 Revenue bond reserve fund on deposit with trustee (required balance - 1975, $3,487,625; 19740 $30025,802) - Note C Cash 759553 79719 United States Treasury obligations - at cost plus accrued interest (approximate market) _ 3,441,322 3.183.665 3,516,875 3,191,384 TOTAL REVELIUE BOND RETIREMENT AND RESERVE FUNDS 4,161,152 396410988 DEFERRED DEBT DISCOUNT 60,999 639345 CURRENT ASSETS Cash 960408 155,221 Accounts receivable (1975, $5,1530580; 1974, $29763,801) less allowance for doubtful accounts 50083,031 20731,773 Unbilled cost under excess cost recovery provisions - Note B 1,1240064 Materials, supplies, and fuel oil - at cost 59431,506 40865,619 Prepaid insurance 280873 550698 Due from Gencral Fund 782,148 TOTAL CURRENT ASSETS 11,763,882 8,590,459 S152.7~99.473 S S~12.454 E-2 I SHEET AND SANITARY SEWER) FUND GARLAND, TEXAS September 30 September 30 1975 1974 CAPITALIZATION AND LIABILITIES CAPITALIZATION Long-term debt ($2,118,915 due in 1976) Notes C, D, G and H: Electric, Water and Sewer Revenue Bonds $ 6796909000 $ 61,850,000 General obligation bonds serviced from the Utility Fvnd 1,751,555 108779470 Certificates of obligation 5.834,000 5,834.000 75,2859555 69,561,470 Retained net revenues 30,4980602 25,4412,024 Contributions in aid of construction - Note F 4 Federal grants 1456509177 59398,425 Otber _16,688,3411 17,957,246 TOTAL CAPITALIZATION 1391122971: 11893599165 CONSTRUCTION CONTRACTS PAYABLE FRCH CONSTRUCTION FUNDS 4,795,402 21293,952 ACCRUED INTEREST PAYABLE FROM REVENUE BOND RETIREMENT FUND 3029218 2719833 CURRENT LIABILITIES (exclusive of current maturities of long-term debt) Accounts payable and accrued expenses 3,422,618 10561,164 Accrued interest payable on long-term debt other than revenue bonds 920851 210,829 Customers' deposits 474,003 419,973 Due to General Fund 19022,844 Due to Revenue Bond Construction Funds 3,566,822 4,395.538 TOTAL CURRENT LIABILITIES 8,579,138 6$87,504 COMMITMENTS - Note E $152.799.473 12 2 See notes to financial statemente >r•3 0 ti STATEMENT OF NET REVENUES CITY OF GARLAND, TEXAS - UTILITY FUND Year Ended September 33 1975 1974-Note I OPERATING REVENUES - Note C Electric service - Note B $21,850,400 $14,695,256 Water service - Note B 317959002 3,096,325 Sanitary sewer service 1,873,438 100269409 Penalties and other items 540,746 _ 656,553 TOTAL OPERATING REVENUES 28,059,586 19,414,543 OPERATING EXPENSES - exclusive of depreciation Electric operations: Fuel costs 10,298,101 4,169,872 Other electric operations 2,2889984 21197,713 Water operations: Water purchased for resale 1,5369998 11460,008 Other wster operations 673,515 5000263 Sanitary sewer operations 621,570 432,735 Customer services 4199207 3710675 Warehouse operations 41,698 200329 Commercial department 133,652 1300685 Service and supply department 139,674 118,215 Provision for uncollectible accounts 203,806 119,085 Payments to General Fund of City of Garland: General and administrative 7639031('.) 524,168(1) In lieu of taxes 1,196,911 936,344 TOTAL OPERATING EXPENSES EXCLUSIVE OF DEPRECIATION 18,317,147, 10,981,092 RE'/ENUES FROM OPERATIONS BEFORE INTEREST, DEPRECIATION AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING METHOD 99742,439 80493,451 INTEREST INCOME 538,247 1,081,149 REVENUES BEFORE INTEREST DEDUCTIONS, DEPRECIATICN, AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING 10,280,686 90574,600 METHOD INTEREST DEDUCTIONS Revenue bonds 3,1589436 2,831,418 General obligation bonds 669723 71,045 Certificates of obligation 350,040 138,072 3$75,199 _ 390400535 Less amount capitalived in Utility Plant in Service 1;359,995 2,731,205 REVENUES BEFORE DEPRECIATION AND CUMULATIVE EFFECT OF CHANCE IN ACCOUNTING METHOD 890209691 ,843,395 E-4 STACEMENT OF NET REVENUES - CONTINUED Year Ended September 30 1975 1974-Note I PROVISION FOR DEPRECIATION (computed on the straight-line method) Electric plant 1,6789089 1,575,658 Water plant 528,750 482,387 Sanitary sewer plant 458,572 415,683 2,665,411 2,473,728 REVENUES BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING METHOD 5,3559280 413699667 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING METHOD - Note B 460,990 NET REVENUES _51816.270 S 4.369.667 (1) Net of amounts capitalized as part of construction costs, $197,413 in 1975 and $204,499 in 1974. See notes to financial statements. i E-5 ( S STATEMENT OF CHANGES IN FINANCIAL POSITION CITY OF GARLAND, TEXAS - UTILITY FUND Year Ended September 30 1975 1974 SOURCE OF FUNDS: Net revenues S 5,816,270 $ 4,3690667 Charges to revenue not requiring outlay of working capital: Depreciation 2,6650411 214739728 Other 32,731, 27,242 TOTAL FROM OPERATIONS 89514,412 ` 6,8700637 Increase in construction contracts payable from construction funds 20501,450 108540589 Contributions in aid of construction - federal grants 9,2511752 39207,344 Contributions in aid of construction - other 731,135 2,6859683 Proceeds from sale of revenue bonds 715000000 79500,000 Proceeds from sale of certificates of obligation - 5,834.000 $28.498,749 527,952,253 USE OF FUNDS: Additions to utility plant in service net of book value of retirements of $11,375 in 1975 and $34,362 in 1974 $ 61928,718 $ 71115,419 Net increase in revenue bond construction funds 17,3339471 181085,096 Net increase in revenue bond retirement and revenue funds 519,164 465,155 Principal payments on revenue bonds 1,660,000 19410,000 Principal payments on general obligation bonds 1159915 110,632 Budgeted transfer to general fund 759,692 723,516 27,316,960 27,909,818 INCREASE IN WORKING CAPITAL X1.181.789 S 42.43 SUMMARY OF CHANGES IN WORKING CAPITAL BY CCMPONENT: Increase (decrease) in current assets: Cash $ (580813) $ 329332 Accounts receivable 20351,258 (380522) Unbilled cost under excess cost recovery provisions 1,124,064 Materials, supplies, and fuel oil 5659887 29082,442 Prepaid insurance (269825) 25,157 Due from General Fund (782,148) 782,148 3,173,423 1,883,557 E-6 STATEMENT OF CHANCES IN FINANCIAL POSITION - CONTINUEO Year Ended Seotembar 30 1975 1974 Increase (decrease) in current liabilities: Accounts payable and accrued expenses 11861,454 (8429304) Accrued interest payable on long-term debt other than revenue bonds (1170978) 188,315 Customers' deposits 0 54,030 310025 Due to General Fund 100229844 Due to Revenue Bond Construction Funds (828,716) 3,464,086 1,991, 34 2,841,122 INCREASE IN WORKING CAPITAL S 1.181.789 2 4 See notes to financial statements. I E•7 NOTES TO FINANCIAL STATEMENTS CITY OF GARLAND, TEXAS - UTILITY FUND September 30, 1975 Note A - Summary of Significant Accounting Policies The accounting policies of the Utility Fund of the City of Garland conform to generally accepted accounting principles as applicable to governmental unit:;. The following is a summary of the significant policies. i Basis of Accounting - The accrual basis of accounting is followed. ` Utility Plant in Service - Utility plant in service is stated at cost, or esti- mated fair value with respect to contributions in aid ofoconstruction. Depreciation has been provided using the straight-line method. Capitalization of Interest - During the period of construction the excess of interest expense on Utility Fund debt obligations over interest earned through the temporary investment of idle proceeds of such debt issues is capitalized. Note B - Change in Accounting Method During 1975, the City changed its method of accounting for recoverable costs of purchased water and of fuel used in generating electric power which exceeds the amount provided for in the base rates charged to consumers. In prior years, thESe exceas costs were not recognized as revenues until actually billed to consumers. As of September 30, 1975, the unbilled excess water cost ($124,786) and fuel cost ($999,218), which have been consumed during current and prior years in providing customer service, have been recognized as a receivable (unbilled cost under excess cost recovery proiisions) and have been recognized as revenues in 1975. The pro forma effect of the change on the 1974 financial statements would be to increase net -avenues for the year then ended by $65,733 and to increase retained net revenues as of October 1, 1973 by $395,257. Note C - Revenue Bond Reserve Fund The ordinances authorizing the Electric, Water, and Sewer Revenue Bonds stipu- late that the City will deposit in 1776, in addition to current principal and interest requirements, $232,090 4n a reserve fund, The ultimate balance required in the reserve fund is $4,254,365. The revenue bonds are payable as to both principal and interest solely from, and are secured by a first lien on and pledge of, the revenues of the City's combined Electric, Water, and Sewer Systems, after deduction of reasonable operation and maintenance expenses. E•8 i NOTES TO FINANCIAL STATEMENTS - CONTINUED Note D - Bonds Available for Sale At September 30, 1975, Electric, Water, and Sewer Revenue Bonds authorized October 24, 1970 in the amount of $7,640,000 were available for Future sales. It is contemplated that all of these bonds will be sold in February 1976. Note E - Comritments The cost to complete outstanding construction contracts is approximately $11,021,000 of which $6,746,600 is expected to be funded by federal grants. The City is obligated to purchase a total of at least $2,829,000 worth of fuel ail in 1976. ;tote F - Contributions in Aid of Construction Federal grant contributions in aid of construction increased by $9,251,752, of which $2,627,638 has been billed but hss not been received in cash. These contributions result from a grant obtained in connection with the expansion of a sewage treatment plant. The total federal participation is expected to be $192695,000 out of total esti- mated costs of $28,200.000. Certain grant amendments have been approved by the Texas Water Quality Board which have not as yet been approved by the Environmental Protection Agency (EPA). As of September 30, 1975 federal participation approved by the EPA was $171477,410. Under Federal regulations, one half of the grant funds deemed to benefit industrial users of the treatment facility must be refunded (without interest) to the Federal government ratably over the life of the plant or 30 years, whichever is shorter. In addition, 407. of such portion of the grant funds must be ratably accumu- lated in a restricted reserve account and used exclusively for plant expansion or re- construction. These refunds and reserve accumulation:, will commence when the plant becomes operational. Based on the anticipated industrial use of the treatment plant, $2,954,250 of the total expected federal funds will have to be refunded and $2,363,400 will be set aside in the restricted reserve account. Other contributions in aid of construction increased by $731,133 oS which $571,791 were water and sewer installations contributed by real estate 4evelopers. E-9 NOTES TO FINANCIAL STATEMENTS - CONTINUED Note C - Certificates of Obligation In April 1974 the City issued $5,834,000 of Combination Tax and Revenue Certificates of Obligation. These Certificates, which do not require voter approval, are secured by a pledge of the net revenues Of the sanitary sewer system. Debt ser- vice requirements are to be paid into a special sinking fund (carriod in the Ceneral Fund accounts) and if the net revenues of the sewer system are not sufficient to pro- vide the sinking fund requirements, it is the City's res?onsibility to levy a special property tax sufficient to provide the required funding. Note H - Maturities of Long-Term Debt Principal maturities of long-term debt serviced by the Utility Fund foe the next five years are as follows: 1976 - $2,118,915 1977 - $292759097 1978 - $2,413,822 1979 - $2,5492138 1980 - $2,6919794 Note I - Reclassification Certain amounts for 1974 have been reclassified to conform to 1975 presentation. Note J - Subsequent Event On October 30, the City and several other Texas cities entered into an agreement with the Texas Municipal Power Agency (TMPA) whereby the cities, as guarantors, agreed to fund the Agency's expenditures in the development of fuel resources and the planning of new electric generation facilities, and the TMPA agreed to deliver to the cities energy produced by the electric generating facilities or the receipts from the sale of fuel resources developed, The City's portion of the total obligation under this agree- ment is $4,812,850 with required monthly payments of approximately $44,500 beginning September 1976 through August 1985. The agreement also requires the City to pay a pro rata share of the operating expenses of the TMPA. The City's portion of these expenses are estimated to be $220,000 in 1976. All payments by the City to the TMAA will be made from the reve- nues of the City's Utility Fund and shall not obligate funds raised by taxstion. t APPENDIX F City of Greenville The financial statements included herein for the municipal utility system for the year ended September 30, 1975 have been excerpted by the City of Creenville from its full financial statements. Consequently, certain footnotes do not relate to the financial statements included herein. F'•1 City of Greenville, Texas ENTERPRISE (UTILITY) FUND BALANCE SHEET September 30, 1975 ASSETS CURRENT ASSETS Cash in depository bank $ 370,020 Petty cash fund 506 Time deposits 251,500 622,020 Accounts receivable Consumers' accounts $ 437,254 Less allowance for doubtful accounts 137,599 299,655 Miscellaneous receivables 11,948 311,603 Due from General Fund 0 1,024 Materials and supplies inventory- at cost 1,058,331 Prepaid expenses Social security taxes -Social Security Fund 25,465 Other 1,765 27,230 Total current assets 2,0201208 RESTRICTED ASSETS Revenue Bond Debt Service Fund Cash in depository bank 5009444 Time deposits 2,063,446 Due from Revenue Bond Capital Projects Tunds 29,115 21593,005 Equipment Replacement and Reserve Fund Time deposits 7360922 Due from other funds 69,548 Construction in progress 34,596 84',066 Revenue Bond Capital Projects Funds Cash in depository bank 440851 Time deposits 1,385,000 1,429,851 UTILITY PLANT IN SERVICE Electric system 17,617,848 Water system 6,851,607 Sewer system 21921,456 Furniture and fixtures 49,365 27,440,276 Less allowance for depreciation 1200340810 15,405,466 Construction in progress 760,983 16,166,449 $ 23,050,579 The accompanying notes are an integral part of this statement. F•2 I City of Greenville, Texas ENTERPRISE (UTILITY) FUND BALANCE SHEET September 30, 1975 LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS CURRENT LIABILITIES (payable from current assets) Accounts payable $ 231,004 Accrued salaries and retirement 38,416 Sales tax payable 14,826 Meter deposits 152$99 Due to other funds 72,009 Total current liabilities (payable from current assets) 508,654 CURRENT LIABILITIES (payable from restricted assets) Revenue bonds - amount due currently $ 320,000 Matured bonds and coupons not presented for payment 7,062 Contracts and retainage payable - Capital Projects Funds 1181386 Accounts payable -Equipment Replacement and Reserve Fund 27,554 Due to Revenue Bond Debt Service Fund - Capital Projects Funds 290115 5421117 BONDED DEBT Revenue bonds outstandirg 16,634;000' Less amount due currently 320,000 16,3149000 RESERVES For retirement of revenue bonds and interest 21585,943 For equipment replacement 8130512 39399,455 CONTRIBUTIONS From municipality -Special Utility General Obligation Bonds 139,000 From Federal Grants 2129740 In aid of construction 200,357 552,097 RETAINED EARNINGS 11734,256 $ 23,050,579 F-3 city of Greenville, Texas UTILITY FUND SUMMARY STATEMENT OF REVENUE AND EXPENSES Year ended September 30, 1975 Total Electric Water Sewer Operating revenue $ 5,7011012 $ 40827,183 $ 6410910 $ 231,919 operating expenses 3,524,316 30111,231 3211211 91,874 Net operating income 21176,696 1,7151952 320,699 140,045 Other deductions Depreciation 6979009 454,454 164,160 781395 Interest and expense - Revenue Bonds 774,637 4889010 195,532 910095 General Obligation Bonds 51164 20480 2,684 104760810 942,464 362,172 1720174 Net departmental income (loss) 6990886 $ 773,488 411473) 32_,129) Non-departmental income and (expenses) Interest income 4 Operating funds 14,288 Debt service 3049675 Equipment replacement 549425 MiFcellaneous income 16,744 Transfers to oiher'funds General Fund 0 ( 665,129) Board of Development Fund ( 77,349) ( 353,346) , NET INCOME $ 3 * Does not include $10,800 transfer for administrative expenses which is included in operating expenses. The accompanying notes are an integral part of this statement. F•4 City of Greenville, Texas UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Year ended September 30, 1975 Sources of working capital From operations Net income for the year $ 346,540 Charge to operations not using working capital Depreciation 697,009 Working capital provided from operations 1,043,549 Increase in payables from Equipment Replacement and Reserve Fund 25,168 Federal Grant proceeds - sewer system 18,100 Decrease in restricted assets - Capital Projects Funds 661,591 1,748,408 Applications of working capital Net additions to fixed assets $ 360,312 Bond principal - Revenue Bends 307,000 Bond principal - General Obligation Bonds 8,000 Decrease in matured bonds and coupons not presented 631 Increase in restricted assets Debt service 157,407 Equipment replacement 83,245 Decrease in payables from Capital Projects Funds 554,793 1,471,388 INCREASE IN WORKING CAPITAL $ 277,020 Changes in components or working capital Cash and time deposits $ 234,744 Accounts receivable - net 890116 Due from other funds 1,024 Inventories 61254 Prepaid expenses 27,230 Accounts payable ( 39,960) Sales tax payable ( 1,420) Meter deposits ( 5,321) Accrued salaries ( 10,809) Due to other funds ( 23,838) INCREASE IN WORKING CAPITAL 277,020 The accompanying notes are an integral part of this statement, F-5 l City of Greenville, Texas NOTES TO FINANCIAL STATEMENTS September 30, 1975 NOTE A - SUMMARY OF ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. 1. Basis of Accounting The financial statements of the General Fund, the Special Revenue Fund, the Debt Service Fund, the Capital Projects Funds and the Trust and ~ Agency Funds, except for the Social Security Fund which is on the cash basis, have been prepared on the modified accrual basis of accounting. Revenues are recognized when received in cash and expenditures are recognized at the time that purchase orders or contracts are made. I~ The financial statements of the Utility Fund have been prepared on the full accrual basis of accounting. Under this method, revenues are recognized at the time they are earned and expenses are recognized at,, 'the time that liabilities are incurred. The encumbrance system, which recognizes an appropriation of the budget on approval of a purchase order or other commitment, is followed by the City. 2. Fixed Assets Costs incurred for the purchase or construction of general fixed assets are recorded as capital outlay expenditures in the General, Special Revenue, and Capital Projects Funds. All such costs are capitalized in the General Fixed Asset Group of Accounts. Amounts expended for property, plant and equipment in the Utility Operating Fund, Equipment Replacement and Reserve Fund, and Revenue Bond Capital Projects Fund are capitalized in the Utility Plant in Service accounts of the Enterprise (Utility) Fund. 3. Depreciation Depreciation is provided in the Utility Fund in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives on the straight-line method. No depreciation is provided for on General Fixed Assets of the City. 4. Reserves for Taxes and Other Receivables Delinquent taxes receivable, paving assessments receivable, and contracts receivable in the applicable City funds have been recorded as assets offset by reserves of equal amounts since it is the policy of the City to recognize revenue from these receivables as they are collected. NO'T'E B - F*:.'ED ASSETS Only control accounts are kept on General Fixed Assets. These controls were set up some years prior by reference to bond issues and insurance, and increased year by year by reference to detailed expenditures and decreased by sales, trade-ins and abandonments. F-8 City of Greenville, Texas NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1975 NOTE C - PENSION PLANS All eligible employees of the City other than firemen are members of the Texas Municipal Retirement System. The employee members contribute 5'% of their salaries and the City contributes 5.8%. The City's portion totaled $85,071 for the year ended September 30, 1975, and is recorded as an expense as follows: General Fund $ 47,543 Utility Fund 37,528 • $ 85,071 The firemen are covered under the Firemen's Relief and Retirement Plan which is handled as a Trust and Agency Fund of the City. ThP City contributes 7`, of salaries and the firemen contribute 7%. The expense of the City for the year ended September 30, 1975 was $38,606, The latest actuarial valuation as of December 31, 1974 showed that the plan had an unfunded liability of $335,658 at that time and it was estimated that this liability would be eliminated during the next nine years after December 31, 1974 using the present level of contr",utions. NOTE D - REVENUE BOND REQUIREMENT The Revenue Bond Ordinances of the City covering its Water, Sewer and Electric System Revenue Bonds provide for the following application of all revenues derived from operations of its utility systems. First - for the payment of operating and maintenance expenses of thr. systems 4 Second - each month shall transfer to the Revenue Bond Debt Service and Retirement Fund one-sixth of the next maturing interest payment and one-twelfth of the next maturing principal to payment on superior lien Revenue Bonds first, and junior lien Revenue Bonds second Third - each month shall transfer to the reserve portion of the Revenue Bond Debt Service and Retirement Fund $1,250 until such reserve has an accumulated balance of $225,000 in excess of the Revenue Bond principal and interest requirements of the next succeeding fiscal year and in excess of all amounts provided for as a reserve at the time the bonds were issued. The accumulated reserve is to be used to pay principal and interest on the Revenue Bonds when there is not sufficient money already available in the Debt Service and Retirement Fund, NOTE E - CONSTRUCTION COMMITMENTS The City had commitments on contracts for the construction of a new electric system steam power unit and other improvements amounting to $6,446,388 at September 30, 1975, F•7 City of ureenville, Texas NOTES TO FINANCIAL STATEMENTS - CONTINUED September 30, 1975 NOTE F - SUBSEQUENT EVENT The proceeds from the sale of $2,500,000 Water, Sewer and Electric System Revenue Bonds, Series 1975 were received in October, 1975. These bonds, dated October 1, 1975, are on a parity with all Junior Lien Revenue Bands outstanding against the net revenues of the City's Waterworks, Sanitary Sewer, and Electric Light and Power Systems, with such pledge being subordinate to the pledge made for the security of all outstanding Superior Lien Bonds, and will bear interest at rates varying from 7% to 8.6%. NOTE G - INTERFUND BILLINGS Effective for the year ended September 30, 1975, Utility Fund billings for electric, water, and sewer services used by the General Fund, and rentals earned on fire hydrants rented by the Utility Fund to the General Fund were recognized as revenues in the Utility Fund and as expenditures in the General Fund. These revenues, which had not been recorded in prior years, were recorded so as to recognize all revenues generated from user charges and rentals to other funds on the same basis as revenues earned from outside parties. The effect of recording these billings and rentals was to increase Utility Fund revenues and General Fund expenditures by $132,812. NOTE H - INTERFUND TRANSFERS r The Utility Fund had budgeted a total of $810,800 to be transferred to the General Fund during the year. Actual transfers for the year consisted of $666,129 in annual transfers and $10,800 in administrative transfers. NOTE I - NOTE PAYABLE-BOARD OF DEVELOPMENT FUND The Board of Development Fund note, dated August 20, 1974, is payable to the First Gi-ttnville National Bank in annual installments of $10,000 plus interest at the prime interest rate, not to exceed 10%. This note is collateralized by notes receivable from East Texas Distributors, Inc. and Henson Kickernick, Inc., and all amounts receivable by the Board of Development Fund on the Wing, Jackson, and Red Bird Trust contracts. The balance of the note at September 30, 1975 was $56,541. F-8 i Exhibit I PROPOSED FORM OF OPINION OF BOND COUNSEL LAW OFFICES DUMAS,HUOUENIN,BOOTHMAN AND MORROW W. P. DUMAS 6000-1947) (DALLAS TEXAS 75201 TeLCVMONC 741-3458 CLOUD O.DOOrHMAN LLOLRr M.MCRROw AREA Come 214 LO M.L9QUIV [L WE HAVE ExdnrINED certified proceedings, including tl.e Bond Resolution adopted 1970, authorizing the Bonds hereinafter described, of the Board of Directors of the Texas Aunicipal Power Agency, a municipal corporation, political subdivision of the State of Texas, and a body politic and corporate, duly created and validly existing pursuant to the Constitution and laws of the State of Texas, together with other certified showings and proofs tendered in con- nection therewith, relating to the issuance by said Agency of its Bonds dated September 1, 1970, in the principal sum of FIr-r - MILLION DOLLARS ($50,000,000), more particularly described a.-, follows: TExAs MUNtcrPAL POWER AGENCY REVENUE BONDS, SERIES 1970, numbered consecutively from 1 through 10,000, each in denomination of $5,000 maturing on September 1 each year in amounts and bearing Interest until paid at rates as follows: (insert) such interest being payable on March 1, 1977, and semiannually thereafter on September 1 and March 1 in each year, (insert redemption provisions) WE ALSO HAVE ExAruNED executed Bond Number One of said Series and find same In due form of law and properly executed. Ir Is Ova OPv%aov that such proceedings and other showings tendered in connection $ - ith evidence that all of said Bonds were duly autt,arized and Issued in conformity with the Consu .Lion and laws of the State of Texas presently effective, particularly Article 1435a, Article 717k and Article 717k-3, R.C.S. of Texas, 1925, as amended, and that said issue In the amount of $50,000,000, afore- said, and the Resolution authorizing said Bonds, are valid and legally binding upon the Texas Munici- pal Power Agency, and enforceable, in accordance with the terms and conditions thereof; that the Power Sales Contracts, each of which is dated as of September 1, 1970, by and betw(en the Texas Municipal Power Agency and the Cities of Bryan, Denton, Garland, and Greenville, Texas, are valid and enforceable contracts; that all payments to be made by the said Cities under the respective Contracts are maintenance and operating expenses of the electric power and light systems of such Cities, Said Bonds are payable as to principal and Interest solely front and equally secured by an Irrevocable first lien on and pledge of the Net Revenues of the Syatem (as such terms are defined in the Bond Resolution) and all Funds (including the investments therein) established by the said Resolution, other than the Revenue Fund, and the Revenue Fund subject to the payment of the Operating and Maintenance Expenses. SAID RESOLMON further provides certain conditions under which the Agency may issue additional parity Bonds or other evidence of indebtedness payable from the same source and secured In the same manner. Iv Is Oun Funnai; OpimoN that the interest on such Bonds Is exempt from Federal income taxes under existing laws and regulations. I•I Exhibit ti Glossary of Certain Terms Used in the Contract and the Resolution The following terms, as used in either the Contract, the Resolution, or both, have the meanings set forth below: Annual System Costs - with respect to a fiscal year of the Agency, and to the extent not paid or to be paid from the proscds of Bonds or other funds legally, available to the Agency, all costs and expenses of the Agency that are paid or incurred during such fiscal year of the Agency and are allocable to the System, including, but not limited to the payment of the Operating and Maintenance Exp?nscs of the Systen„ all costs, charges, and exper4es of replacements and renewals of the System and all tares, assessments or other governmental charges lawfully imposed on the 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 hereafter become obligated to deposit into any fund or pay from revenues of the System, by law, contract, or the Resolution. 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. Debt Service - with respect to any period, the aggregate amom:ts required to be paid during said period on outstanding Bonds, less those amounts on deposit for the payment hereof, as the same shall become due, Development Project - any one or more of the following: (i) repairs, replacements, or mojifica- tions 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 (it) preliminary and develop- mental 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, or (iii) any purpose for which proceeds of Bonds may be expended under the Act, except a Project. Cross 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 from certain other sources, including payments from a City upon its with- drawal from the Agency, proceeds of insurance (except business interruphun nsurance) or eminent domain, or Investment Income of the Construction Fund. Investment Securities-any of tbs following securities, if and to the extent that the same are at the time legal for investment of Agency funds: (i) 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 aml backed by its full faith and credit; obligations guaranteed by the United States of America; a:id (ii) Evidences of Indebtedness of the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal llome Loan Banks, Federal National Mortgage Associa• tlon, Federal Financing Bank Participation Certificates in the Federal Assets Financing Trust, Now Housing Authority Bonds and Project Notes fully secured by contracts with the United States of America, or any other agency or instrumentality of the United States of America; bonds secured by the general credit of the State of Texas; and deposits which are fully secured (to the extent not insured by a corporation, instrumentality or agency of the United States of America) by oblig:lions le which the Agency may invest under the provisions of this dclinition. lI.1 ~1I I Net Energy For Load -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. Net Revenues - for any period, the Cross Revenues during such period less the Operating and Maintenance Expenses during such period. Operating and Maintenance Expenses - all expenses incurred in the operation and maintenance of the System and the Agency which are properly accounted for such purpose, under generally accepted accounting principles. Such term does not include depreciation or obsolescence charges or reserves therefor, interest charges and charges for the payment of principal, or amortization, of Bonds or other indebtedness of the Agency. Project-one or more of the following: (t1 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, (ii) any a 11tion or improvement to a power generating facility wbich is then owned, in whole or in part, by the Agency, or (Iii) any contract right to purchase or receive a power supply or transmission capacity (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. 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 approved System Development and Reliability Expenditures and Development Projects, prior to the time L-ne of the Cities disapproves a Project under the provisions of the Contract and elects Option One as described in "Description of Certain Provisions of the Power Sales Contract - Election of Options Upon Disapproval", The term also includes any contract for providing services or power and energy, either or both. System Development and Reliability Expenditures - those exper,'.itures which the Agency deter- mines, under prudent utility practices, should be expended over a given period of time for (i) transmission and related facilities to increase the reliability of the delivery of power and energy by the Agency, (if) the exploration for, development of or the acquisition 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 rated 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. II•£ .r ~ -b c ro~ I r.110-STANDARD SALE: CONTRACT Martin Stationery Co., Dallas, Texas THE STATE OF TEXAS BY THIS AGREEMENT .AND CONTRACT, I COUNTY OF DENTON Parties Joe M. Erwin and James Erwin hereinafter called Seller, acting through the undersigned and duly authorized Agent, hereby sells and agrees to convey unto the City of Denton, Texas , hereinafter called Purchaser, I the following described property: Lying and situated in the City and County of. Denton, Texas and more particularly described in Exhibit A attached i hereto ~i Properties s III ' I u E I the purchase price Is E 11, 000. 00 payable as follovrs: Cash at Closing. dr~ ~ 1MXXXXXXXY.XXXXA4Ih*RKl7tOh}fXX)= S' Mp Xlt d ~tA*" 9v/~j~(C( ` ~i1gD6~ll~xllddxtMlR7fiMld)dXiNCebXXCtr[IIi~erl@!d]lyDDeadJ~le~M I Terms phis contract shall become ul and void if not executed on j or before the ay of, 1976. '~KM1~E~lOtM601101xXXXXtO}dc1~1Ctt84?E"~A'~?l1iYoNXNd'f~d000gYt74Xtt~i Y•~01ti1'XXX~df~g ~f %1K'3ttt0~3C0eX06JO]C3CaeNY]COIMXltSKt~lIli07dX!]~ftX~C uyerZM agrees to furnish Title insurance Policy to said property, which shall be conveyed free and clear of any and all encumbrances except those named herein. (iJ In accordance with the terms of the Real Estate License Act of the State of Texas, you, as pur- chaser, are advised that you should have the abstract rooering the real estate which Is the subject of this contract examined by an attorney of your own selection, or that ynu should be furnished with or obtain a policy of title Insurance. If abstract Is furnished, Purchaser agrees within ten days from the receipt of said abstract either to accept the title as shown by Bald abstract or to return It to the underalgned Agent with the Title written objections to the title. If the abstract is not returned to the Arent with the written objections noted within the time specified, It shall be construed as an acceptance of said title. If title policy Is fur- rdehed, Purchaser agrees to coneummate the sale within ten days from date title company approves title. If any title objections are made then the Seller or his Agent shall have a reasonable time to cure said objections and show god and marketable title. In the event of failure to furnish Food and marketable title, the purchase money hereby recelpted for to to be returned to Purchaser upon the cancellation and return of this contract, or Purchaser may enforce specific performance of same. Seller agrees when the title objections have been cured, to deliver a good and sufficient General Warranty Deed properly conveying said property to @aiiddPurchaser, at*2XaeD07Ot)MMUX90ex701tft Closingl~ MMM X mii~tY K~~~Mtu X"AM9 c"QlafOiclt?4a4>s W.%A*MUU6hm]Kt(sfilbl wgcxxxxxxxxxxbExummxmlc a6(ifMc10Kilkitlplf$evXil0lt Q Klltot9 MkX Taxes for the current year, the cur..ent rents, Ineuru.Lo, and Interest, (if any), are to be prorated Taxes to date of closing, c .k #tAiaox~okkmMtukktmx*xxommtarbfKAck It is agreed an understood that the access driveways will be re-placedto each house on the three (3) lots, SOMal Conditibttb Purchase to be sub jeot to~appruval of the City Council of the City of Denton, Texas, Executed In trilpuchto this AL -day of PitYfaJas/""" 1976 'I'bis contract subject to that ptance of Seller epteds a e L'iTV AF nVMWW6 TF.XLA JO Mo ERWI seller. fay T~ >g RWIN, 89LLER qe Agent for City t)>I_.Nn tega r al o ~ a9. 0 IB n 0 ' M ~L61'. PJL' "'St It Dual mldx3 uololgwwop Alq *exay'RlunoO........ 'y114nd ArtUloN i'S"I1 6t (1 Y' lD Srp oIU'i DI3d0 30 WHS UNY QKYH AN H3(lNn N3AID 'poomdxa U10J041 u0111japiluoa pun easodind o4l joj owes oql patnooxo , aq 11g1 Dw Ul P0YP2lA10U1t2r Pur'1UOwnallal SU109010j 041 Ol pagj]-1rgn1 awrU a104M " UO1ua4 0 q1 oq os ow 01 uMOUq . _ p»radde Allvuoraad Rap 1141 uo'■920,01un00 Pirr 20) pur ul 1+I114o41nv paumleiopun oql IN 31i0d38 90 AINAOD { `S' VX3x .40 H.LVJS UH1 ZH31NJ43'IAAOI~SI~Y 3'IJNI$ ei It ounl roaldx3 uolrrlwwo0 AX onq'Ltunop...,...... 'allgnd dtrlam W;.._... g~ lI,y jo ,trp 114.1'301340 80 Me UNY UNYH Alt 113UNA NSA10 •porooidxi n11aj4y'uoltoj1p}luoO put aoodied Dip jol owvo o41 palnaaxa sq r;4 out (l k.VpolMOu;or pug'luown,llrul Julofa o) 64,1 0y PN;I; ilv owvu oso4M u0etad oql aq in sus 01 uMOUq ................r................ .........„1........... ...pojroddr Allruortad Alp si41 uo may' owa P11110; pug ul i '~llios({AM peallpibpud 141 "3ti 3lIOd89 '40 A.LNAOb 'svxffz ,'o 9zvJs SHI ~,N$WDtl~'IMOAI![aY ~'tDHI9 I EXHIBIT "A" All that certain lot, tract or parcel of land lying and being situ- ated 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 Lot Nos. 12, 13, 14 and 15, Block B of the Paul Hamilton Addition, an addition to the City and County of Denton, and also being parts of three tracts of land hereinafter referred to as Tracts 1, 2, and 3, Tract 1 as conveyed from James McGaugh and wife, Evelyn McGaugh to Joe M. Erwin and James A. Erwin by deed dated February 14, 1966, and recorded in Volume 534, Page 390 of the Deed Records of Denton County, Texas, Tract 2 as conveyed from Susie Grav Braly, et al to James A. Erwin and Joe M. Erwir by deed dated July 14, 1975, and recorded in Volume 761, Page 643 of the Deed Records of Denton County, Texa3, Tract 3 as conveyed from Susie Gray, et al to Joe M. Erwin and James A. Erwin by deed dated June 7, 1968, and recorded in Volume 568, Page 115 of the Deed Records of Denton County, Texas, and more particularly described its follows: BEGINNING at the northeast corner of said Tract 3, said point of be- ginning lying in the existing south right of way line of Eagle Drive and also being the northwest corner of a tract of land conveyed by James H. Normile to Joseph L. Normile by deed dated February 9, 1960; THENCE south along the east boundary line of said Tract 31 a distance of 13 feet to a point for a corner; THENCE west, 13 feet south and parallel with the north boundary line of said Tracts 2 and 3, same being fhe south right of way of Eagle Drive a distance of 119 feet to a point for a corner on the west boundary line of said Tract 2, same being the east boundary line of said Tract 1; THENCE north V20 13' west a distance of 95.88 feet to a point for a corner on the north boundary line of said Tract 1, same beino the south right of way line of Eagle Drive; THENCE east along the north boundary line of said Tracts 1, 2, and 3 same being the south right of way line of Eagle Drive a distance of 214 feet to the place of beginning and containing 2164.50 square feet of land, more or less. A-96--WARRANTY DEED-Witt GcacJ and Copm6oe Acknowkdrmmts MARTIN Sutiooay Co., Was THE STATE OF TEXAS, Know All Men By These Presents: County ot......DENTQN DEED RECORDS A. That JOE M. ERWIN AND JAMES/ERWIN 1.9459 of the County of Denton , State of Texas for and in consideration of the sum of -----------------ELEVEN THOUSAND AND N01100 ($11,000.00--------DOLLARS, to us inhandpaidby the City of Denton, '`exas have Cranted, Sold and Conveyed, and by these presents do Grant, Sell and Convey unto the said City of Denton, Texas of the County of Denton , State of Texas all that certain lot, tract or parcel of land lying and being situated 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 Lot Nos. 12, 13t 14 and 15, Block B of the Paul Hamilton Addition, an addition to the City and County of Denton, and also being parts of three tracts of land hereinafter refer- red to as Tracts 11 21 and 30 Tract 1 as conveyed from James McGaugh and wife, Evelyn McGaugh to Joe M. Erwin and James A. Erwin by deed dated February 14, 1966, and recorded in Volume 534, Page 390 of the Deed Records of Denton County, Texas, Tract 2 as conveyed from Susie Gray Braly, et ai to James A. Erwin and Jce M. Erwin by deed dated July 14, 1975, and recorded in Volume 761, Page 643 of the Deed Records of Denton County, Texas, T-~aet 3 as conveyed from Susie Gray, et al to Joe Me Erwin and James A. Erwin by deed dated June 71 1968, and recorded in Volume 560, Page 115 of the Deed Records of Denton County, Texas, and more particularly described as followst BEGINNING at the northeast corner of said Tract 30 said point of be- ginning lying in the existing south right of way line of Engle Drive and also being the northwest corner of a tract of land conveyed by Jamen He Normile to Joseph L, Normile by deed dated February 9, 1960E THEM south along the east boultdary line of said Tract 31 a distance of 11 feet to a point for a corner) THbNCH west, 13 feet south and parallel with the northlboundnr'y line of said 'traits 2 and 31 same being the south right of way of Eagle brive a distance of 119 feet to a point for a corner on the west boundary line of said tract 2, same being the east boundary line of said Tracct It LVOI 806 FACE 383 i VGE 806 rAu A THENCE north 820 13' west a distance of 95.88 feet to a point for a corner on the north boundary line of said Tract 1, same being the south right of way line of Eagle Drive; THENCE east along the north boundary line of said Tracts 11 21 and 3 same being the south right of way line of Eagle Drive a distance of 214 feet to the place of beginning and containing 2164.50 square feet of land, more or less. TO HAVE AND TO HOLD the above described premises, together with all and s, gular, the rights ara 0 appurtenances thereto In anywise belonging unto the said Joe M. Erwin and James Etwin, our helm and assigns forever; and we do hereby bind ourselves, our helm, executors and administrators, to Warrant and Forever Defend all and singular the said premises unto the said City of Denton, Texas, its successors *Wand assigns, against every person whomsoever lawfully claiming, or to claim the :me, or any part thereof. i' VAmem our hand at Denton, Texas this 24th day of September , A.D. 19 76 Witoasea at Request of Grantor: •f~ YuY.NII....M..Y.. ..MYY..NN..N.NINNNNY...wr.Na..NaY.....NY........ ....~.jw•'.•,,..,.. x.. ............N.aV u..w { N.. { . N. N. .Y .M..NI.NN.aY ..•N... N. .N. N.N.N...1 WNN....... t WIN . •..aN... N..N......N..r...a.. N.N.. N.. r.. u...N.N..a.. a....rr.r. N...a.r.... ua.uaN ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF... pj~!~TPN in and for said County, Texas, on this day personally appeared....., JOE.. M.,,. ERWIN AND JAM9d RWIN known to me to be the person._S.._ whose aame.A...a ! .,_.subscribed to the foregoing instrument, and acknowledged to me that f 11 .,a......11 ..,4slt~ted the same for the purposes and cor~idersdoa therein expressed. 11 • ~ NYNDER MY IIAND AND SEAL OF OFFICE, This .....lst • -day of.......... Qc, obey, A. D. 19.16... / s • / Notary Public Den.t an. ..._...._...„.County, Texas i I My Commission Explres June...___ SPIT. ACKNOWLEDGMENT , THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF_....... »..W.. In and for said County. Texas, on this day personally appeared.................... known to me to be the person. ._...whose name ...._.w..subscribed to the foregoing instrument, and acknowledged to me that _.._..he.._......ettcuted the ume for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, Thb................ -day of. A.D. 19_._..... (L S.) Notary Public.~_._......_._..._ _ .....................County, Teas My Commission ExpL•es June..._.___........-...... _ It- CORPORATION ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF._. In and fur Bald County, Texas, on this day personally appeared W..W._......_..__»~__.._._.. known tome to be the person and ofbcer wboee name Is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said................. a corporation, and that he executed the same u the ad of such corporation for the purposes and consideration therein expressed, and to the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This,_........... day of_.»..............„........... A.D. 10_»_.. (LS.) . _ Notary Pub1k... _ ..County, Texas My Commleslon Expires June........ t9_.».. THE STATE OF TEXAS, COUNTY OF County Clerk of the County Court of xld County, do hereby certify that the foregoing Instrument of writing dated on the __..day o[ , A.D. t9_..... with Its Certificate of Authentication, was Efed for record in my office oe thL.........r -.day of......... A.D. 10........, and was duly recorded tbb..........._ day A.D. 19_._.»..., at._..............s'ek+de M, In the Records of said County, in Vol. ume_ W . W _ ,..W oa page....... WITNESS my hand and red of the County Court of,ald county, at my cake ..w.w...._............. M ....._...._.w_. _ . w » the dti and rest IsA above written. Clerk County CouA . _ - W ..w _ . Counq, Tew (L, h) By...»...... .W_».......... ~ . Deputy. 409 ,OA' 0 ~ rr ~ T H ! M o c to r~ xr R ~ Rs H x oa ~ ~ -A Z -Iwo ft. V 0 low N wrn4 Osdwgr Iaw rr rrxq rpMM1 M u "Oil rye W +hd Olt,: owner rp r1 RYAj ~(!1 Merit ua,ay podwgr 8wy PA moo My1 'Rpm yn' f lW N41 fez 3,4044J ~w0 RUM IJNOW AL"M WQN~~ POWER SALES CONTRACT k BETWEEN TEXAS MUNICIPAL POWER AGENCY AND CITY OF BRYAN, TEXAS CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS Dated: September 1, 1976 TABLE OF CONTENTS Section 1: Term of Contract 1 Section 2: Definitions . 1 Section 3: Sale and Purchase of Power and Energy........... . 4 Section 4: Performance of Certain Services......... 4 Section S: Delivery of Power and Energy.... S Section 6: Annual System Budget.. S Section 7: Rates and Charges. , , 6 Section 8: Meter Readings and Payment of Bills..... 7 , Section 9: Meter Testing and Billing Adjustme'ti.'!.` . . . . ? 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 whe„ 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. . , .................11 Section 17: Payment Due Dates and Delis luency 12 Section 18: Power Sales 0.1truts 12 Section 19: Continuation of Services . 12 Section 20: City Not to Sell Its Electric System 12 Section 21: AAgnment of Rights of a City............................................. 13 Section 22: Dissolution of the Agency 13 Section 23: Force Majeure.......... I ! 13 Section 24: Insurance . 13 Section 25: Reports . 14 Section 26: Records and Accounts 14 Section 27: Access 14 Section 28: Governmental Rates, Regulations and Laws 14 Section 29: Easements. 14 Section 30: Cancellation o! Prior Contract. 14 Section 31: Notices . 14 Section 32. Severability . 15 Section 33: Contracts to be Separate IS Exhibit A 17 Schedule B .........`...'..:..,f:. 19 (i? • POWER SALES CONTRACT BETWEEN TEXAS MUNICIPAL POWER AGENCY AND CITY OF BRYAN, TEXAS h CITY OF DENTON, TEXAS I CITY OF GARLAND, TEXAS CITY OF GREENVILLE, TEXAS This Contract, made and entered into as of the 1st day of Septe,rber, 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 City 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"). WtTNE55ETH: WHEREAS, each City has need for an economical, reliable source of Power and Energy to > teet 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 ownenliip 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 purchah and the Agency desires to sell Power and Energy on the terms and conditions berein set forth; and Now, THEREFORE, in consideration of the mutual undertakings herein contained, the Agency and each a ty agr,~ a as follows: Section Is Term of Contract. This Contract t..1 become effective upon the delivery to the Age :y of the proceeds of the initial series of Bonds. Subject to the provisions of Setdot s 16 and 19 hereof, this Contract shall remain in effect for a period of thirty-five (35) year- 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 b°= 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 laws amendatory thereof or supplemental thereto. I) (b) "Agency" shall mean the Texas Municipal Power Agency as created and established (pursuant to the Act) by concurrent ordinances adopted by the governing bodies of the Cities, or its successor. (c) "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 the System, all costs, charges, and expenses of replacements and renewals of the System and an taxes, assessments or other governmental charges lawfully imposed on Agency or on the revenues of the System or payments in lieu th^rcor, and the deposit or payment of any and all amounts which the Agency may now and hereafter become obligated to deposit 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 hereof for such Contract Year or, in the case of an amended Annual System Budget, for the remainder of such 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 thich may be approved after the Agency is recreated pursuant to Section 16. (fl "Bonds" shall mean all bonds issued by the Agency pursuant to the Bond Resolution. (g) "Bond Resolution" shall 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 B mds, including refunding bonds, on a parity with the said Series 1976 Bonds. 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 pursuant 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, such obligations shall not be on a parity with the Series 1976 Bonds, and such obligations, f any, shall not be deemed to have been issued pursuant to a 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 begi. on the elective date of this Contract and shall end on the last day of the fiscal year of the Agency within which this Contract becomes effective. (i) "Debts" shall mean Bonds and Subordinated Indebtedness, as defined in the Bond Resolutions, together with interest thereon, 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 same 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 ircrease 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 ith the planning, development or utilization of power resources, or (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 a 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) "Net 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 Delivety during the period under consideration. (n) "Operating and Maintenance Expenses" shall mean all expenses incurred in the operation and maintenance of the System and the Agency which are properly accounted for such purpose under 2 generally accepted accounting principles. Such tern does not include depreciation or obsolescence charges or reserves therefor, interest charges and charges for the payment of principal, or amortization, of Bonds or other indebtedness of the Agency. I (o) "Points of Delivery" shall mean the points on the System of, or available to the Agency, as f 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 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 Irans- mission facility required to connect or interco!incct 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, er (iii) any contract right to purchase or receive a power supply or transmission capacity (a) by the making of a prepayment of caoitai costs which are associated with the supply or rapacity so purchased, or (b) the execution of a take or pay contract baying a duration of more than 16 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. (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 capabk of supplying under good operating conditions. (s) "System" shall mean the Agcncy'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 on Approved Projects and Development projects, prior to the time one of the Cities dis- approves 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 Ef,:enditures" means those expenditures which the Agency determines, under prudent utility practices, should be expended 0-er a given Period of time for (i) transmission and related facilities to increase tie reliability of the delivery of :ewer and Energy by the Agency or (ii) the exploration for, development of or the acquisition of a fuel supply or supplies in order to provide fuel for generating facilities which arc not then owned or in the process of construction for and on behalf of the Agency, or (iii) repairs, replacements, or mod'cations 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 Rated Capacity of such generating facility. Such expenditures which are to be paid from the proceeds )f a series of Bonds shall be considered a single Project. (u) "Uniform System of Accounts" and all other accourting methods and terminology contained or refereed to in this Section or elsewhere in this contract means 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 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 syst,.m as may ue required by any regulatory agency. Section Sale 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 shall require for the operation of its electric system in excess of the amount (1) supplied by any generation and 3 f t. transmission facilities owned by it on the effective date of this Contract, including 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 as the increase during any period of two successive Contract Years does not exceed 10°!c of the same's Rated Capacity at the beginning of such period, provided the Cities and the Agency may, in writing, waive such 10'0 limit, and (ii) supplied from any generation facility primarily fueled from and the construction and operation of which is incidental to the disposal of solid waste, that is hereafter 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 all Power and Energy purchased or otherwise acquired by it from the Agency 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 of 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 the (i) Cities pro rata in accordance Wth their respective. Net F;ergy fer Load during the corresponding month of the preceding Contract Year unless a governmental agency requires a different allocation and (ii) other power purchasers as may be provided by contra-A. The Agency shall devote its best efforts to the acquisition, by purchase or otherwise, of the Power and Energy required to meet the requirements of its power sales contracts. During the period the Agency is unable to supply Power and Energy required or requested under its power sales contacts, 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. Section 4: Performance of Certain Services. (c) The provisions of this Section do no: apply to any City from and after the date any City (i) disapproves a Project under the nrovi::ions of Section 13 and (ii) elects Option One; nor shall the provisions of this Section apply to a City which disapproves a Project and elects Option Two. (a) In addition to the delivery of Power and Energy hereinde 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 others, as well as various combinations of such parties: (1) comprehensive planning for Power and Energy and the transmission thereof to mutually agreed upon load . enters; (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 (S) such other services as the Agency and a City, frcm time to time, shall determine to ` be appropriate and necessary IRl (b) City hereby binds itself to pay for its share of the cost of the services that 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 estnolished pursuant to Section 7 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, delivery voltage and other conditions of servic ; shall be in accordance with the s:rvice specifications set forth in Exhibit A attached to this Contract, as amended by the Agency and the concerned City from time to time. (e) 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 enatle 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 are 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 Agency at each Point of Delivery to the City at the low voltage side of the transforming equipment located there. Loss adjustments for low 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 least ninety (90) days prior to the beginning of each Contract Year which shall itemize estimates of Annual System Costs and all revenues, income or other fonds to be applied to such Annual System Costs for and applicable to such Contract Year. Such 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 Energy to be furnished and the services to be performed during such Contract Year and shall cause copies of such Annual System Budget and rags 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 wilt 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 S e 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 b: timely adopted by the Agency and transmitted to the Cities. (d) In the event a budget for the ensuing Contract Year has not been adopted on or before the first day of the Contract Year, the total amount budgeted for the preceding Contract Year shall be the total amount of the temporary budget for such purposes for the ensuing Contract Year. The temporary budget shall be effective only until such time as a permanent budget has been finally adopted and approved. The chief administrative officer of the Agency shall be responsible for the allocation for expenditure J 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 services 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 recei%Ld) 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 illustrated in Schedule B, it shall give each City written notice that it proposes to establish a new rate or charge for I Power and Energy or for services (setting forth such charge) on a date certain (which shall not be less fl than 120 days from the mailing of the notice to each City, all such notices to be mailers simultaneously). Except as provided in paragraph (c) hereof, no charge or adjustment In any rate or charge made by the Agency shall be effective if any City, by resolution or ordinance of its governing body, 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 more 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 consultant or consultants to prepare a rate evaluation and schedule 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 date originally suggested by the Agency in its notice. If the adjustment is not approved or an agreement coached within 15 days after the receipt of the report of the independent consultant, th;;i the Agency and the Cities shall each have all of the rights and remedies at law and in, equity except that is no event shall any City be relieved of its obligation to the holders of Bonds under Section 13 or 14 of this Contract. 6 trI. jF ohm (c) The Board of Directors of the Agency may change or adjust any rate or charge for Power and Energy or for services supplied by it to a City, if such Board determines that (i) an emergency exists and (ii) the emergency adjustment meets the criteria established in paragraph (a) 1 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 30 days after the mailing of notice to the Cities (all of which notices shall be mailed simultaneously). Section 8: 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. It shall also Sill each City monf,!~ for services rendered pursuant to Section 4 of this Contract. Section 9: Dieter Testing and Billing Adjustment. The Agency shall test and calibrate meters or cause meters to be tested and calibrated by comparison with accurate standard, at intervals of twelve (12) months, or such other intervals as the parties agree. The Agency shall also make or cause to be made special meter tests at any time at a City's request. The costs of all tests shall be borne by the Agency, provided, however, that if any special meter test made at a City's request shall disclose that the meters are recording accurately, the requesting City shall reimburse the Agency for the cost of such test. Meters registered not more than t/s of 1% above or below normal shall be deemed to be accurate. The readings on any meter which shall have been disclosed by test to , e 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 Agency and City involved mutually agree thereto. Should any meter fail to register, the Power and Energy delivered duri g 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 to the Agency under this Contract shall constitute an operating expense of its electric system payable solely from the revenues and receipts of such electric system, as provided in the Act. Each City shall be bound and obligated to make such payments and the obligation to pay the Debt Service Requirements shall be unconditional. Section 11: City Rate Covenant. Each City shall establish, maintain and collect 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 11: Covenants of the Agency. (a) After first satisfying the Power and Fnergy 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 the 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 m-nomically 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 liable therefor of for damages caused thereby. 7 (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 13 or Section 14 of this Contract. (d) The Agency covenants and agrees that it will operate, maintain and manage its Systems or cause the same to be operated, maintained and managed in an efficient and economical manner, con- sistent with sound 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 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) Prior to the issuance and sale of the initial Series of Bonds to provide money for each Project, the Agency shall submit a written notice to each City as required by the provisions of para- grapa (b) of this Section. If a Project has been approved pursuant to paragraph (c) of this Section, the Agency may thereafter issue, sell and deliver Bonds in order to fully provide funds for such Project, including the design, construction, and the placing of same in commercial operation, or to meet any requirement of law, including 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 description of the Project, the projected sources 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 necessary for the Agency to meet its commitments 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 (as provided in paragraph (b) hereof], then the Agency may proceed with the issuance, sale and delivery of Bonds to provide such Project. If one or more of 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 determines 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 that 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 governing Wly, 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 if an option under the provisions of this Section, it shall be conclusively presumed that Option Two has been elected. 8 (1) Option One: (a) Each City shall be entitled to schedule and receive, each month for its own account, the sar- 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 proceeding 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 Costs 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 proceeding the effective date of the option. (c) Each City's obigation under Section 14 of this Contract shall be equal to the percentage as calculated under the prececding 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 Power and Energy equal to the amount of Power and Energy purchased by such City from the Agency during the corresponding month of the 12 consecutive month's period preceding the calendar month of the effec'Ne date of the exercise of the option, or such other amount of Pulver and Energy as may be from time to time agreed upon by the City, the Agency and the other Cities, and the Agency shall no longer be required to provide any Power 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 Energy furnished tC 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: 4 (1) The effective date 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 :e 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 1 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. (5) Amounts due from entities other than the Cities shall be taken into account in cal- culating the amount due from the Cities. (f) 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 J (2) in order to pay a pro rata part of expenses incurred (incl.ding Debt S.rvices) 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 Bond Fund (created by the Bond Resolution) is not the full amount then required to be on deposit therein, without giving consideration t to transfers made from other than the System Fund or from Bond proceeds (provided that transfers may be made from the Reserve Fund to the Bond Fund for not more than rvo (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 a Bond Resolution, to be on deposit in the Bond Fund, the Reserve Fund, and the Contingency Fund. The percentage share of the payment to be made by el,ch City shall initially be as follows: City of Bryan, Texas: .22.73f"0 City of Denton, Texas: . . . ............20.34% City of Garland, Texas : • . ........47.66% City of Greenville, Texas: . 9.27% Such percentage share of the payment to be made by each City shall be adjusted (i) at the beginning of each Contract Year, and (ii) if a new entity is added under Section 16. Such adjustment shall be made by calculating the )ercentage 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 adjusted per- centages shall equal 100%. The payments required to be made to said Bond Fund, Reserve Fund or Contingency Fund (aty 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 prescribed. The provisions of this covenant are for the benefit and protection of the Agency, the Cities and the owners and holders of Bonds hereafter issued by the Agency which i x payable under the provisions of this Contract, it being recognized that the holders of such Bonds shall be third-party beneficiaries 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 Cityor other power pwcha.er 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 approval of the Agency and the Cities) may assume primary liability for the obligation to make payments under this Seceen 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 the provisions of the Bond Resolution (by reason of the inadequacy of payments required to be made by the Citics under the provisions of this Contract), the Cities shall cure the default by making payments in the same proportion as provided in paragraph (a) of this Section. 10 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 date 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 Agency that is required to be made under the provisions of this Contact, and such default in payment con- tinues for a period of fifteen (i5) days, the Agency shall eve notice (in the manner contemplated by Section 31 of this Contract) to Cities. The defaulting City shall, from the dale of the mailing 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 withi-i 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 has 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 defaulth.g City under the other provisions of this Contract. (b) If the Agency fails or defaults in meeting the terms, conditions and covenants of this Contract, except its covenant 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 in Section 31 of this 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 shalt be a ministerial duty of the Agency. Section 16: Re-creation of Agency. Each City and 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 hi 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 got join with any of the other entities to recreate the Agency so as to delete one or ni^re 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 Bonds then outstanding approve the concurrent ordinance proposed for adoption by the Cities, or (3) the withdrawing entity contracts and agrees to continue to pay a fixed percentage (as determined by the Board) of the Annual System Costs (including the Debt Service Requirements on the then outstanding a Debts of the Agency) during the time such Debts remain outstanding. Such fixed percentage shall be not less thi•, such withdrawing entities' Net Energy f tr Load bore to the Net Energy for Load for all Cides during the Contract Year hereunder in which such percentage was the highest, but the guarantee as contained in Section 14 shall remain unaffected until the outstanding Debts of the Agency incurred prior to the withdrawal are paid and retired; and the withdrawal of the entity shall not be effective until such indebtedness has been paid. 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 he issued for a new Project which involves any additional payments by or guarantee of the Debt Service Requirements by such withdrawing entity. Il i 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 (a3 approved by the Agency and set forth in the concurrent ordinances) (1) assumes the primary liability for a pro-rata share of the Debts of the Agency then outstanding (which shall not discharge the liability of those who were obligated when such Debts were incurred, who remain secondiarily liable) as well as obligation [as more fully 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 Development Projects and Approved 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 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, recoupmertt 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 whether the Agency is in compliance with its covenants as contained herein, each City shall nevertheless be obligated (1) to make the payments provided by paragraph (a) of Section 14 hereof and (2) M 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 principal amount thereof shall be returned to the City. It the City elects not to pay the amount in dispute and the dispute is resolved against the Participant, 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 within 15 days of the resolution of the controversy. Attorneys' fees shall be assessed as court costs. Section 19. 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 least S 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 Costa. Section 20: City Not to SeU Its Electric System. Each City covenants that during the term of this Contract (or the extensions thereof) it will not sell or otherwise dispose of its electric utility distribution 12 system in its entirety to any entity oth • than an assignee under Section 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 its rights under this Contract to another entity, if permitted by applicable law, but no such assignment shall relieve such City of its obligation hereunder. Section 22: 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 nct made 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 Majeure. (a) If for any reason of "force majeure" any of the parties hereto shall be rendered una'ots, 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 term% of this Contract, then if such party shall give notice and the full particulars of such reasons in writing to the other Party %'thin a reasonable time after the occurrence; of the event, or cause relied on, the nbiigaf.,r of the party giving such notice, so far as it is affected by such "force majeure;" shall be suspendea durirg the continuance of the inability then claimed, but for no longer period, and such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term "force majeure" 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 Tcxb: or any civil or military authority, Insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricances, storms, floods, wasbc,149, 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 otter cause not reasonably within the control of the party claiming such in ability. It is understood and agreed that the set0ement of strikes and lockouts shall be entirely within the discretion of the party hr-eing the difficulty, and that the above requirement that any "force majeure" shall be remedied with all reasonable disl °b shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing parties when such setdcmen, 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 tue causes above mentioned, Section 24: Insurance. (a) The Age,.., shall maintain, or cause to be maintained, I . force for the benefit of the Agency, such insurance with respect to the System as shall be rt.. ' nably available and as is usually carried by municipal electric utilities constructing and operating gent,ating and transmission facilities but, in the case of nuclear generating facilities, not less than will satisfy the requirements of federal P -A state law and the Nuclear Regulatory Commission regulatio:s and such other insurance as h usually carried by -nunleipal electric utilities owning like p operties. Provided, however, in any event, the Agency shall maintain, or cause to be maintained, in force, insurance in such amounts and against such rinks as required by the Bond Resolution. (b) The Agency will secure and maintain adequate fidelity insurance or bonds on all officers and employees handling or responsible for fund:: of the Agency. (e) The obligation hereunder to procure and maintain insurance with respect to v Joint Project, as defined In the Bond Resolution, shall be met if the entity acting as the manager of the Joint Project obtalns and maintains the Insurance required for the benefit of all owners of the Join. Project, as their interest may appear. 13 ♦ (d) The Agency may establish and create a special fund for the purpose of providing a self insurance fund. Amounts to be deposited in or credited to such Fund in any Contract Year shall be Fccounted for as Operating Maintenance Expenses. To the extent that mores are deposited in such Fund, if created, such monies may be invested in investment Securities, as ecfined in the Bond Resolu- tion. To the extent of the amounts held in such Fund, the face t mount of appropriate insurance policies may be reduced. • Section 25: Reports. The Agency will prepare and issue to each City the following reports for each fiscal year: (i) financial and cperating 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 weI! as of the operations 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 transact'.ons of the Agency relating to the System with respect to such Contract Year to be subject to an annual audit by an Accountant, as that term is defined in the Bond Resolution. A copy of each such annual audit shall be sent by the Agency to each City. Section 27: Access. Each City shall at all tinges have reasonable access to examine 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 rxeipt 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. Section 29: IEmerlents: Each City agrees that the Agency or its agent shall ( ri permitted by existing easement) have full access to or such easements over any easements, rights' ,.ay 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 BONDS, SERIES 1975, the Cities and the Agency have heretofore entered f to 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 Seftember 15, 1975; that such contract provi'',.d 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 this 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 311 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 14 certified mail, addressed as follows, upless another address has been designated, in writing, by the party entitled to receive same: Agency: Texas Municipal Power Agency City of 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 189 Garland, Texas 75040 Attention: City Manager Section 32: Severabilily. The parties hereto agree that if any of the provisions of this Contract should contravene or be held invalid under the laws of the State of Texai, 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 331 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. l5 IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed in theii 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 By: (SEAL) ATTEST. By: Secretary City of Bryan, Texas (SEAL) By: ATTEST: Mayor . By: City Secretary City of Denton, Texas (SEAL) By: . ATTEST: Mayor Sy: Secretary City of Garland, Texas (SEAL) By:.......... ATTEST: Mayor By' City Secretary City of Greenville (SEAL) By: ATTEST: Mayor By: City Clerk 16 iii ' EXHIBIT A POINTS OF DELIVERY Bryan: 1. Bryan Plant: Facilities included are as follows: (a) 136 KV lines (b) 200 MVA, 138/69 KV autotransformer (e) associated breakers, bus work, switches, etc. 2. Nall Substation: Facilities included are: (a) 138 KV line, (b) 200 MVA 1:18/69 autotransformer (c) 450 MVA, 345/138 KV autotransformer (d) 345 KV lines (e) associated Imakers, bus work, switches, etc. 3. South East Bryan Substation: Facilities included are as follows: (a) 138 KV lines (b) 200 MVA, 1381"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 (b) 450 MVA, 345/138 KV autotransformer (c) associated breakers, bus work, switches, ctc. Garland- 1. Appollo Substation: Facilities included are as follows: (a) 138 KV Interconnection web 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 9 11 3. Ben Davis Substation Facilities included are as fellows: (a) 450 MVA, 345/138 KV autotransformer (b) 345 KV lines (c) associated breakers, bus work, switches, etc. 4. McCrce Substation • Facilities included are as follows: (a) 450 MVA, 345/138 KV autotransformer (b) 345 KV lines (c) associated breakers, bus work, switches, etc. Greenville: 1. Steam Plant Vecilities 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. 19 SCHEDULE 3 RATES AND CHARGES (f) 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 ordinarily predictable stable Operating and Maintenance Expenses and such other reasonable fixed costs as these costs reiatt 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 sha11 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 Op.rating and Maintenance Expenses, postage stamp type transmission losses, station servica energy, and other such reasonable variable costs as these costs relate to energy provided to Citiee. The rate making methods used to develop these demand and energy char;cs 'hall be consistent with standard u.rlity wholesale rate making procedures. These mtthads shall be app?icd as appropriate to the System. It is recognized that these rates shall be developed in a reasonably equivalent marner s similar wholesale power suppliers, State Utility Commission guidelines, and FPC rate regulaioas a., applied to like power systems. (2) RATES FOR SERVICES PROVIDED TO ALL CiiIES 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 tate 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 PROVIDEV TO A SPECIFIC CITY Spectral services may be provided to a member from time to time at the request of a City. Reimbursement fer these services will be made at cost by the City receiving the services. 19 ~Cotver~ $urct~ corporation September 13, 1976 City Clerk City of Denton Dentin, Texas 76201 Ro: Bond No. LPB-244707 ' Bobby Joe Hopson, dba HOPSON BROTHERS PLUMBING COMPANY Plumber Bond Gentlemen: This is your notice that we wish to be relieved of liability on the above referred to bond to be effective October 23, 1976. Please aeknowl,idge receipt of this :40TICE OF CANCELLATI017. Yours truly, LAWYERS SURETY CORPORATION R. E. Irown Assistant Underwriter Bond Department ce: Metro Infurance Agency 8610 King George Drive Dallas, Texas 75235 Bobby Joe Hopson, dba HOPSON BROTHERS PLUMBING COMPANY 211 Interurban Richardson, Texas 75060 1820 REGAL ROW, DALLAS, TEXAS 75135 214-634-1900 ~f ~f G~ F X c b .3 ~,.a f s k ~ `1sT u Y 4 a w ~ . y m qav. k'v~ k£. F n IC n ~~.r S ~ cj 'e v °r t ~L v Lw~2:ti ie !1 yy aar 1 a s l i T tl ti a y r 1 ' k~~~yf~e7+ rt ~ ~~7~ M Y 4~ x 1 r Ln J E~ Y$ ~ Y 4 ~x J #t a}'~`N'G S., a, a r` n " ~ `,J~ kn~ g` 1+ 4S, '1 vW(.y s NO. 7L- ^s A24 ORDINANCE AMENDING THE ZONING MAP OF THE 'ITY OF DENTON, TEXAS, AS SAME WAS ADOPTED AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-1, AND AS SAID MAP APPLIES TO LOT NO. 5, CITY BLACK NO. 4027, AS SHOWN THIS DATE OM THE OFFICIAL TAX MAP OF THE CITY OF DENTON, TEXAS, AND MORE PARTI- CULARLY DESCRIBED THEREIN; AND DECLARING AN EFFECTIVE DATE. r THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. -'r That the Zoning Map of the City of Denton, Texas, adopted the t 14th day of January, 1969, as an Appendix to the Code of Ordinances of the City of Denton, Texas, under provisions of Ordinance No. 69-1, be, and the same is hereby amended as follows: All the hereinafter described property is hereby removed from the Multi-Family "MF-1" District as shown on said Zoning Map, and all provisions of Ordinance No. 69-1, adopted the 14th day of January, 1969, as amended, shall hereafter apply to said property as Office "0" District; in the same manner as other property located in the Office "0" District; All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being Lot No. 51 City Block No. 4027 and comprising approximately one (1) acre of land located on the west side of Bonnie Brae Street just south of Scripture Street. SECTION II. That the City Council of the City of Denton, Texas hereby finds that such change is in accordance with a comprehensive plan for the purpose of promoting the general welfare of the City of Denton, Texas, and with reasonable cor*siderat!.on, among other things for the character of the district and for its peculiar suitability or particular uses, and with a view to conserving the value of the buildings, protecting human lives, and encouraging the most appro- priate uses of land for thra maximum benefit to the City of Denton, Texas, and its citizens. SECTION III. That this ordinance shall be in full force and effect immedi- ately after its passage and approval, the required public hearings. having heretofore been held by the Planning and Zoning Ccmmission and the City Council of the City of Denton, Texas, after giving due notice thereof. PASSED and APPROVED This the 21st day of September, A. D. 1976. HUGHES, XAXOR CITY OF DENTON, TEXAS ATTEST: OL , IT SECREYDRY APPROVED AS TO LEGAL FORMt PAUL Co S , CITY ATTORNEY t P- 1 r v IL r w l 41% PVT , 1 k y f a: ~4 . x VOL PAGE 86 THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON D[t0 Rf001t06 THAT EDWIN L. OWENS, J. GLEN SAVAGE, AND JOE BELEW of Denton County, Texas 1'76lkA , in consideration of the sum o! One Dollar ($1.00) and other good and valuable consideration in hand paid by the City of Denton. Texas receipt of which is hereby acknowledged, do by these petaents grant, bargain, sell and convey unto to the City of Denton, Texas, the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by them . Situated in Denton County, Texas, in the Wm. Loving Survey, Abstract No. 759 All that •^.ertain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being part of the Wm. Loving Survey, Abstract No. 759, and also being part of a trac, of land as conveyed from Jimmy Madewell to Edwin L. Owens, J. Glen Sarage, and Joe Belew by deed dated November 5, 1974 and recorded in Volume 726, i Page 542 of the Deed Records of Denton County, Texas, and more particu- larly described as follows: BEGINNING at a point in the east boundary line of said tract, same teing the west right of way line of Center Street, said point of beginning be- ing 238 feet north of the southeast corner of said tract, said southeast corner being the intersection of the north right of way line of Highland Street and the west right of way line of Center Street, said point of beginning also being the northeast corner of a tract of land as conveyed from Edwin L. Owens, et al to Joe A. Belew, et al by deed dated June 10, 1976, and recorded in Volume 7921 Page 809 of the Dead Records of Denton County, Texas; THENCE west a distance of 16 feet to a point for a corner; THENCE north a distance of 342 feet to a point for a corner; THENCE east a distance of 16 feet to a point for a corner in the east boundary line of said Edwin L. Owens,etal tract, same being the treat right of way line of Center Street; THENCE south with the east boundary line of said tract, same being the west right of way line of Center Street: a distance of 342 feet to the place of beginning and containing 51472 square feet of land, more or less. And it is further agreed that the eaid 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 main- taining public utilities in, along, upon and across said premises, with the right and privilege at all times of tho grantee herein, his or Its agents, employees, workmen and representatires having ingress, egress, and regress In, along upon and across acid premises for the purpose of making additious to, improvements on and repairs to the said public utilities, or any part thereof. TO HAVE AND TO HOLD unto the said City of Denton, Texas as aforesaid for the purposes aforesaid the premises above described. Witn ur an , thta the day of Septembe , A. 19 76. -~I~-- - - GLEN SAVAGE 0 1 SINGLE ACKAOWLEDG31ENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUSiTY OF DENTOH_._ In and for said County, Texas, on this day personally appeared....... Edwin-. L. __Owens r_J..- Glen Savage1 n (JQ `Belew j ,•.~xecute~.tFielrime - _ know5 sae tto_ be the crsbd ~"'_ahose name g_ d.Xe. subscribed to the foregoing Instrument, and acknowledged to me that the y for the purposes and consideration therein expressed. MV A D AND SEAL OF OFFICE, This .__x_ day of----- _.Se @> . A.D. 197.6... ` dct t Notary We, • ~ ~ - DO nt<OA _.County, Texas 7f +7S ~1 M,- Commission Expires June 1, 19TT. SINGLE ACKNOWLEDGMENT THE STATE OF TEXAS, l BEFORE ME, the undersigned authority, COUNTY OF...... in and for said County, Texas, on this day personally appeared.._._ _ - known to me to be the person-.-..whose subscribed to the foregoing Instrument, and acknowledged to me that...... he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, day A.D. 19 t L.S.I Notary Public, County, Texas My C4mmfsslon Expires June 1, 19 CORPORATION ACKN0WLEDGDIENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF.. - - in and for Bald County, Texas, on this day personally appeared known to me to be the person and ofllcer whose name Is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said • corporation, and that he executed the same as the act of such corporation for the Yurposea and conaidIcration thereln expressed, and in the capacity therein a'.ated. GIVEN UNDER MY HAND AND SEAL OF OFFIC?, This - day of . _ _ A.D. 19 . . Nutary Public, .._Texas My Commission Expires June 1, 19......_ CLERK'S CERTIFICATE THE STATE OF TEXAS, s►A.1t.'OF J",.___.........._ County COUNTY OF.. Couwr Clerk of the County Court of said County, do hereby certify that the foregji¢rfet6grKO~s~sNir~nY°~~~ t h„ In p I, , day of .1. D. 19_.-._ , with itstC4 1' t AnltiteFAkb 6hMrr t1ed for pr... voluni, rme, record in my of ice on the_..._......_... dal of A. D. 19....all k4 b'41twk or "°~Srytayl,ply *,-rsAds AS 01 M1"nsms recorded this... ............day of A. D. 19........ . at_.... . o c1BAcQherso„p} ?,09 fthe Records of said County I Volume..S~A...Y~o~pggee WITNESS MY HAND AND SEAL OF THE COTINTY COURT of eat , n~qt t 0 ce In the day and year last ab &t n~'r ~I County Clerk...... ....PPplTI~. C9tirAfy, eras. p l4 S.) By ~ eputy, 14 OO ~ , I DS j I E ' I n ~ ~ ~ I 4 ~ ~ It I i ~ Ww i _ u o~ 00 F' F w a 154 o~ ~b a 9 A i I1 0 `oho e• A X 41 (13 c~ B71 La"Ugwy Go! Dan" THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON DtfO It THAT JAMES HUGHES BRi3C0E 177-31 of Denton County, Texas , in consideration of the sun. of One Dollar ($1.00) and other good and valuable consideration in hand paid by the City of Denton, Texas receipt of which Is hereby acknowledged, do by these presents grant, bargain, sell and convey unto to the City of Denton, Texas , the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by him . Situated in Denton County, Texas, in the Robe ---t Beaumont Survey, Abstract No. 31 All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being part of the Robert Beaumont Survey, Abstract No. 31, and also being part of a tract of land as conveyed from Denton County to J. H. Briscoe by deed dated October 18, 1950, and recorded in Volume 364, Page 441 of the Deed Re- cords of Denton County, Texas, and more particularly described as follows BEGINNING at a point in the north right of way line of U. S. Highway 380 (University Drive), same being the south boundary line of said Briscoe tract, said point also being the southeast corner of a tract of land con- veyed from J. H. Briscoe to Bill E. Utter and wife by deed recorded in Volume 782, Page 533 of the Deed Records of Denton County, Texas; THENCE north 10 33' east along the ea :t boundary lino of said Utter tract a distance of 16.01 feet to a point for a corner; THENCE north 890 55' east 16.1 feet north of and parallel with the south boundary line of said Briscoe Tract same being the north right of way line of U. S. Highway 380 (University Drive) a distance of 524.25 feet more or less, to a point in the west boundary line of a tract conveyed from J. H. Briscoe to J. B. Hardeman by deed dated March 121 1976 for a corner; THENCE south 10 33' west alone the west boundary line of said Hardeman tract a distance of 16.1 feet to a point in the south boundary line of said Briscoe Tract same being the north right of way line of U. S. High- way 380 (University Drive) said point also being the southwest corner of said Hardeman tract for a corner; THENCE south 890 55' west along the south boundary line of said Briscoe tract same being the north right of way line of U. S. Highway 380 (University Drive) a distance of 524.25 feet, more or less, to the place of beginning and containing 8,389.0 square feet of land, more or less. buildings and other obstructions as may now be found upon said property. For the purpose of constructing, installing, repairing and perpetua".1y maintaining public utilities Ir, along. upon and across said premises, with the right and privilege at all times of the grantee her eln, his or its agents, employees, workmen and representatives having Ingress, egress, and regress In, along 1,13n and across said premises for tho purpose of making additions to, Improvements on and repairs to the said publio utilities, or any part thereof. TO HAVE AND TO HOLD unto the said City of Denton, Texas as aforesaid for the purposes aforesaid the premises above described. Witness his hand , this the day of September D. 19 76. JAMES HUGHF BRIS OE SINGLE ACKNOWLEDGMENT THE STATE OF TEXAS, l COUNTY OF DENTON BEFORE ME, the undersigned authority, in and for said County, Texas, on this day personally appeared-. __Ja"S_Huq}1eS Briscoe - _ known tpr;d,toi{e EF,dpfrspi~, whose name _AJS. subscribed to the foregoing instrument, and acknowledged to me that_ , he'.r' *er'dcutebspiny for the purposes and consideration therein expressed. ~G111EN UNDER KEY KAND AND SEAL OF OFFICE, This................ daypf._-SOptember A.D. 1976 (L.9) iJ \,L f~tnNleC~f Notary Public.__ -UentO County, Texas My Commission Expires June 1, 19__77 SINGLE ACKNOIVLEDGMENT THE STATE OF TEXAS, t BEFORE ME, the undersigned authority, COUNTY OF..-...--- In and for said County, Texas, on this day personally appeared known to me to be the peso; i _.--whose name subscribed to the foregoing Instrument, and acknowledged co me that 6 executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This -._____--___day of A.D. 19 - - - - 1 L.S.) _ \I~I Notary Public, Texas vV F . , My r-ommlasion Expires June 1, 19 CORPO ATION ACKNOWLEDGMENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF.. _ in and for said County, Texas, on this day personally appeared _ m_ to-.known to me s be the person and officer whose ma ma Is aub,tribed to the foregoing instruent and acknowledged me thnt the sate was the act of the said - - - a corporition, lad that he executed the same as the act of such corporation for the purposes and consideration therein expressed, sne In the capacity therein stated. 01i'E:4 UNDER MY HAND AND SEAL OF OFFICE, This_ ....-.may , A.D. 19.- (I-S.) Notaiy Public, ............._._........___-.-..County, Texas My Commission Expires June 1, CLERK'S CERTIFICATE THE STATE OF TEXAS, > County COUNTY OF.. _ Clerk of the County Court of said County, do hereby certify that the foregoing Instrument of writing dated on the . day of A. D. 19........., with its Certificate of Authentication, was filed for record In my office on the day of A. D. 19,........, at............. o'clock _ M., and duly recorded this .............day of......... A. D,19........... at.......... o'clock M., in the Records of said County, in Volume on pages WITNESS MY HAND AND SEAL OF THE COUNTY COURT of said County, at office In_ the day and year last above written. County Clerk ............................................................County, Texas. (L S.) By , Deputy. All R1 ~ A 1^ i l: ~ 04 R p1 a I }ILE f "C(IID - Y a' r, 9 ill { 3 E), Li lV v....BLI THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON MD ReO(A G THAT JOE A. BELEW AND ERNEST F. SIMPSON VOL 803 %E 84 of Denton County, Texas 17(%93 , in consideration of the su:n of One Dollar ($1.00) and other good and valuable consideratlon in hand paid by the City of Denton, Texas receipt of which is hereby acknowledged, do by these presents grant, bargain, sell and convey unto to the City of Denton, Texas, the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by them . Situated In Denton County, Texas, in the Wm. Loving Survey, Abstract No. 759 All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton,. State of Texas, and being part of the Wm. Loving Survey, Abstract No. 759, and also being part of a tract of lard as conveyed from J. Glen Savage and Edwin Owens to Joe A. Belew and ErneEt' F. Simpson by deed dated June 10, 1976 and recorded in Volume 792, Page 9 of the Deed Records of Denton County, Texas and more particularly descriked as follows: BEGINNING at the southeast corner of said tract, said point of beginning being the intersection of the north right of way line of Highland Street and the west right of way line of Center Street; THENCE west along the north right of way line of Highland Street, same being the south boundary line of said tract, a distance of 16 feet to a point for a corner; THENCE north a distance of 238.0 feet to a point for a corner in the north boundary line of said tract; THENCE east a distance of 16 feet to a point for a corner it, the west right of way line of Center Street, same being the east boundary line of said tract) THENCE south along the west right of way line of Center Street, same being the east boundary line of said tract, a distance of 238.0 feet to the place of beginning and containing 30808 aquare feet of land, more or less. And It is further agreed that the said city of Denton, Texas In consideration of the benefits above ret out, will remove from the property above described, such fences, bull''ngs and other obstructions as may now be found upon said property. For the purpose of constructing, installing, repairing and perpetually maintaining public utilities in, along, 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 ingress, 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 utilities, or any part thereof. TO HAVE AND '*`O HOLD unto the said City of Denton, Texas as aforesaid for the purposes aforesaid the premises above described. Witness our hand , this the d*4 day o Sept , A. D. 1976 X0 ~ ERNE SINGLE ACKNOWLEDGMENT THE STATE OF TEXAS, t COUNTY OF DENTON f BEFORE ME, the undersigned anthority, in Si and S for r slid y' t Yx1sCa his day personally appeared Joe A. Selew and Ernest _ F._ (Dual t rn~ ~ IJrI I r - o be the P n on _R vrl i M---- kilawn to mb S se name saresubscribed to the foregoing instrument, and acknowledged to me that t he , r Y k&uW the same for the ~urposee and consideration they in expressed. 2 GIV L j C~vr9ER~M1 llJINit ANv SEAL OF OFFICE, This._ ..........day of....41 t OY.., A.D. 19.x.6_ t.~j _ De Notary Pu c nt n County, Texas - - My Commission Expires June 1, 1977 SINGLE ACKNONVLEDG51ENT THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF...... _ In and for said County, Texas, on this day personally appeared - _ r_...-_..... _ - known to me to be the person--.-.-whose name-..--. subscribed to the foregoing Instrument, and acknowledged to me that ___.he__._ executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This _._.._-___day of-__ A. D. 19.... Notary Public, County, Texas My fommiselon Expires June 1, 19 CORPORATION ACKNOWLEDGMENT THE STATE OF TEXAS, J BEFORE ME, the undersigned authority, COUNTY OF.... _ J In and for said County, Texas, on this day personally appeared _ known to me to be the person and officer whose name la subscribed to the foregoing Instrument and acknowledged to me that the same was the act of the sold a corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This _._..-day of A.D. 19 (L.S.) Notary Public, County, Texas My Commission Expires June 1, 19....-. CLERK'S CERTIFICATE THE STATE OF TEXAS, 1, . County COVNTY OF., . SIA1 OF day............_ ot4lt~ailys ttr~r~ nt of v" dated ~d,, o ~n the Clerk of the County Court of said County, do hereby certify tlat the fg g fpAq of............................................................... , A. D. 19...41n111Itb.DlhQP WhSev*r% • for "iQ `u f- IV% record In my oMce on the.... ...............daY of.......... _ _ A. 1~~ Bt tho lM1 duly y. m of raWpsa~e~ 14motmNgN~ in the recorded this day of A, r , , Al .Records o....said County, In Vo1~ mpM[9 n 0 r WITNESS MY HAND AND SEAL OF THE COUNTY COURT of sold County, at 49 Into- WRY the day and year last bo°4 tte . County Cleo ~ Texas. (L $,1 By ..........11~?] .EIS Deputy. q a o0 I k. ~y~jg• i J6d1 j ij }r}~ ~1 po~¢ ~ ppt I L r+ ~`N333III. T Pj W 8 O 'lE'RK NO. AN ORDINANCE ADOPTIKG THE BUDGET FOR THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 1976, AND ENDING ON SEPTEMBER 30, 19771 REVISING THE BUDGET rOR THE PRECEDING FISCAL YEAR ENDING ON SEPTEMBER 30, 19766 LEVYING TAXES FOR THE YEAR 1976 TO BE ASSESSED ON ALL TAXABLE PROPERTY WITHIN THE LIMITS OF THE CITY OF DENTON, TEXAS) AND DECLARING AN EFFECTIVE DATE. WHEREAS, notice of a public hearing on the budget for the City of Denton, Texas, for the fiscal year 1976-1977 was heretofore pub- lished at least fifteen (15) days in advance of said hearings and WHEREAS, a public hearing on the said budget was duly held on the 14th day of September, 1976, and all interested persons were given an opportunity to be heard for or against any item thereofs now, therefore, THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That the budget for the City of Denton, Texas, for the fiscal year beginning October 1, 1976, and ending on September 30, 1977, in words and figures as shown therein is finally approved and adopted, and that said budget shows Revenues of $30,611,889 and Expenditures of $29,969,649. SECTION II. That the budget for the City of Denton, Texas, for the fiscal year beginning on October 1, 1975, and ending on September 30, 19761 as shown therein in words and figures, is hereby revised and amended to show the words and figures indicated as "REVISED 1975-76" in the budget for the fiscal year beginning on October 1, 1976 and ending on September 30, 19771 and to show REVISED REVENUES OF $27,5031121 and REVISED EXPENDITURES OF $25,712,608. SECTION III. That there shall be, and there Us hereby levied, the following taxes on each one Hundred Dollar ($100.00) valuation on all taxable property within the City of Denton, Texas, to be assessed and col- looted by the Tax Assessor and Collector for the year 1976 and said taxes are to be assessed and collected for the purposes stipulated . as follows, to-wit: (a) For the General Fund Allocation on the $100.00 valuation $1.0938 (b) For the Interest and Redemption Funds on outstanding banded in- debtedness on the $100.00 valuation .6862 Total Allocation of Levy $1.7800 The above allocation of the levy is made to insure that deposits in the Interest and Redemption Funds of taxes collected during the year ending September 30, 1977, will total $851,911.00 but is not in- tended to exceed that amount. SECTION IV. That the City Manager shall cause copies of the budget to be filed with the City Secretary, the County Clerk of Denton County and the State Comptroller of Public Accounts. SECTION V. That this ordinance shall be affective immediately upon its passage. PASPED and APPROVED this the e2(1 day of September, A. D. 1976. • 4S_- MI OR HUGHES, MAUR CITY OF DENTON, TEXAS ATTEST: BROOKS HO LT, CITY S RET CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORMi I , CI Y ATTO CITY OF DENTON, TEXAS r2- c r 5 . 1 V 1 v 1 t I ~ .E t 4 S l T i ~ ~ . NO. 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, HEREBY ORDAINS, THAT Ordinance No. 75-46 , ordering the improvements of the hereinafter named streets and levying the assessments was pass- ed on the 4th day of November , 1975 A. D., and the work of improving the streets described 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 such 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 said 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 have 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 7th day of _ September ,A.D. 19 76 E.LINOR HUG S, MA CITY OF DENTON, TEXAS ATTEST A 0 B-HOOKS HO T, CITY "C TARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: "L C_ I AM, CI ATTORNEY CITY OF DENTON, TEXAS , 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. 75-46 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 receivu said work and improvements as constructed by the said Jagoe Public Company, the said streets and portions thereof being a as follows, to-wits STREET UNIT NO. FROM TO 1. Peach Street Fowler Bell 2. Fain Street Carroll Bolivar 3. Ross Street Respectfully submitted this the 7th day of September, 1976. IE JON S, DIRECTOR OMM TY DE LOPMENT r r r r ~o w W fw' N r . r r N N N ti' IOr H O p N O W r 1 x n K w Fl- r4 U I.J. y c., H'd 0 o w G tts r • 4H w r y N O i4;49 ~ o a CA w P• m 0 0 y(0 H rrt H to ID K Q' 10 po M N~ oo , v. v 0, w w w w D. ~~(D OD ro o ~ H w p LA) rn 0 7~ n (ID 47N . 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H LI) w r bHd w C y (a 0 m 9 W 0 ° V QC• H rs a H 0 V) 0 O E H O to P Ihi 0 CL 0 r cn (n KS a ° ~y7 M td [+1 O M N r r r r r r r r 0 ►-3 o Y y O to Ui on M T M ~ N 00 r C O u+ o O o o u, 0 0 o y r r 0 0 O O O O O O O 0 0 0 0 0 0 0 0 0 C S ~ .,C H V O R~ ft r- ' M ti O \ \ \ to rt ~ g o g8$o88g88 tJ C% Lnn N N N N N O A W N Oo V C~ 00 V N W ! p rt ~ did ~ oa ~ ~ rti ro A) Ln HNN Y P- V H Q~~y r w vi m Y H H N ~ m~ L4 O O rt H t" N it r? m go fl m v, t - - E a rt ro rD to o N V rt Q+ O O Y m (p~pptjp1Ln-~H N N t3l O O N O H 9 LA LA) ;u I-n CL rt kD N H O O O N rrt Q• :r4 tzi '0 p W fD ~ N N N O O H SD ~~3377 H 0 t'' U to ~ 1` ~ N or I W. N N W ~ O N F H O O W O 9 m N C W V rt I~ fA H K N H N C') C) H O N tJ N Y i-' N N Y N O O I r H H O In In N V o o a o In u' 111 GL O O O N J O O O O O O ,y tJ O O O N 00 O O O O O O O O rt H O O O O O O O O O O h N fD N d• ~ • SD rn -r,, 100 00 tiQ ~0 800°oo00gg° omd . . , , " ~ ,6✓~ ~ mot' ~ O~' i, t. . ti, 'a. r .rl. r ~ ' ~,i a M ~ ~ 1 ¢ r F i~ pi's: ~I ~~7{~)„ t' ~ i// ~ 6k "fie 4pw"' t a .c,,.tt~ i; t -.'r P~f{~ e k,»• yn e ru'~~ i ?i i y Gn .fit e uS,ij. u, ~'i aeA w'`.2" r tsJ° r:~ x e;. e e 'r r e .y F i y " ` °'ttyr}tn l~f ~ n CIS ~ i y r c \ e r.. r C' ~ r ' r ~ r t_ 1P1 +r 'fr i`X L Y.F 4 r ~ ~~T ~ rw Qe ~ 1.S,y 7,* ~ e a r ~ rq ti + t !fy°1++; 'i4rb A, 1e:~+ "y e!s"~ kM'~~y~~•~f ,i't ~},~Y~, ~.'~.¢~t' F^~i~i .,°~'~'4y`~ ,~','4~ ~.~i~. fI NO. AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF DENTON, TEXAS, AS SAME WAS ADOPTED AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-1, AND AS SAID MAP APPLIES TO LOT NO. 251 CITY BLOCK NO. 2311 AS SHOWN THIS DATE ON THE OFFICIAL TAX MAP OF THE CITY OF DENTON, TEXAS, AND MORE PAR- TICULARLY DESCRIBED THEREIN; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That the Zoning Map of the City of Denton, Texas, adopted the 14th day of January, 1969, as an Appendix to the Code of Ordinances of the City of Denton, Texas, under provisions of ordinance No. 69-11 be, and the same is hereby amended as follows: All the hereinafter described property is hereby removed from the "O" Office District as shown on said Zoning Map, and all provisions of Ordinance No. 69-1, adopted the 14th day of January, 1969, as amended, shall hereafter apply to said property as "C" Commercial District in the same manner as other property located in the "C" Commer- cial District; All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being Lot No. 25, Block No. 231 and also known as being situated north of Dallas Drive and west of Cook Street in the City of Denton, Texas. SECTION II. That the City Council of the City of Denton, Texas hereby finds that such change is in accordance with a comprehensive plan for the purpose of promoti4ig the general welfare of the City of Denton, Texas, and with reasonable consideration, among other things for the character of the district and for its peculiar suitability or particular uses, and with a view to conserving the value of the buildings, protecting human lives, and encouraging the most appro- priate uses of land for the maximum benefit to the City of Denton, Texas, and its citizens. SECTION III. That this ordinance shall be in full force and effect immedi- ately after its passage and approval, the required public hearings having heretofore been held by the Planning and Zoning Commission and the City Council of the City of Denton, Texas, after giving due notice thereof. PASSED and APPROVED This the 7th day of September, A. D. 1976. ELI NOR HUGHES, YOR CITY OF DENTONO TEXAS ATTEST BADOKS L p CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEM FORMi 8XA8 j T welTV10 eT r f • ? ~r g' ~a 0 r ~ s t ft 8 ti 11i. t p r ' A AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HELD IN THE MUNICIPAL BUILDING OF SAID CITY ON TH 7TH DAY OF SEPTEMBER, A. D. 1976. R E S O L U T I O N WHEREAS, there has been formed an organization called the Denton County Association of Governments for the purpose of pro- viding a unifying framework for meeting local government problems and needs; and 0 WHEREAS, a single government has very little impact on the Regional, State and National level; and WHEREAS, an effective organization of governments could be very effective. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, THAT: SECTION I. That the City of Denton does hereby join the Denton County Association of Governments. SECTION II. That the By-Laws of the Denton County Associa- tion of Governments, a copy of which is attached are hereby ratified. SECTION III. That ~I7rC,v<4 is appointed as delegate/ to the Denton County Asvoc at ono Governments and that ~./i Ae ®yg✓ is appointed as alternate delegate to the Denton County Association of Governments from the City of Denton. The terms of office established by the By-Laws to expire in May, 1977. PASSED and APPROVED this the 7th day of September, A. D. 1976. ELI NOR HUGHES, MMaR CITY OF DENTON, TEXAS ATTES s 0 HOLT, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORMS PAUL . IS , CITY ATTORNEY CITY OP DENTON, TEXAS BYLAWS DENTON COUNTY ASSOCIATICA OF GOVERNMENTS 1. STATEMENT OF PRINCIPLES A. THERE ARE TWO BASIC IDEAS WilIG11 UNDERLINE THE PURPOSL OF THIS ASSOCIATION: I. EXISTING CITY AND COUNTY GOVERNMENTS, AS THOSE CLOSEST TO THE PEOPLE, SHOULD BE MAINTAINED AND CONTINUE TO HAVE PRIMARY RESPONSIBILITY FOR SERVICES TO THEIR CITIZENS. 2. CHANGES IN SERVICES AND NEEDED REGULATIONS, RESULTING FROM SCIENTIFIC AND TECHNICAL ADVANCES, HAVE MADE SOME OF THESE SERVICES AND REGULATIONS PRACTICAL OR ECONOM- ICAL ONLY WHEN PROVIDED ON A LARGE SIZE OR VOLUME BASIS. B. FUNDAMENTAL PURPOSE OF THIS ASSOCIATION IS TO PROVIDE A FORUM FOR DISCUSSION 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 THIS REGION CON- CERNED WITH COMMUNITY DEVELOPMENT. C. A SECONDARY PURPOSE OF THIS ASSOCIATION IS TO PROVIDE A VEHICLE FOR ESTABLISHING, ON A VOLUNTARY BASIS, COOPERATIVE LOCAL SER- VICES IN AREAS DEEMED APPROPRIATE BY THE PARTICIPATING GOVERN- MEKTS. THESE SERVICES MAY BE ACHIEVED THROUGH JOINT ACTIVITIES, CONTRACTUAL ARRANGEMENTS, OR OTHER SUITABLE DEVICES. II, NAME OF ORGANIZATION A. THE NAME OF PHIS ORGANIZATION SHALL BE "DENTON COUNTY ASSOCIATION OF GOVERNMENTS." III. PRINCIPLE PLACE OF BUSINESS A. THE PLACE WHERE THE PRINCIPLE BUSINESS OF THIS ASSOCIATION SHALL BE TRANSACTED SHALL BE THE JURISDICTION WHICH THE PRESIDENT REPRESENTS. IV, MEMBERSHIP A. MEMBERSHIP IN THIS ASSOCIATION SMALL BE VOLUNTARY AND WILL BE DETERMINED BY PASSAGE OF A RESOLUTION BY ITS INDIVIDUAL GOVERN- ING BODY, AND SHALL BE OPEN TO ANY INCORPORATED CITY, MUNICI- PALITY, TOWN, VILLAGE, THE COUNTY OR SPECIAL DISTRICT WITHIN THIS COUNTY OF TEXAS, THE RESOLUTION SHALL INCLUDE RATIFICA- TION OF THESE BYLAWS, page 1 V. ORGANIZATION A. THE COUNCIL OF DELEGATES SHALL BE THE GOVERNING BODY OF THIS ASSOCIATION. B. MEMBERSHIP OF THE COUNCIL SHALL CONSIST OF ONE DEI,E(IATL FROM EACH MEMBER ENTITY , CHOSEN BY THE GOVERNING BODY OF THAT ENTITY. ALL SUCH DELEGATES SHALL BE ELECTED 017I^L HOLDERS FOR THEIR RESPECTIVE GOVERNMENTS, EXCEPT AS SP1:GI- FIED IN PARAGRAPH V,C BELOW. C. IN ORDER TO INSURE REPRESENTATION AT ALL MEETINGS, EACH MEMBER ENTITY SHALL DESIGNATE ONE PRINCIPAL AND ONE ALTER- NATE DELEGATE. EACH MEMBER ORGANIZATION MAY SEND AS MANY DELEGATES AS DESIRED TO THE MEETINGS. THE ALTERNATE MAY BE AN ADMINISTRATIVE EMPLOYEE OF THE MEMBER GOVERNMENT AND SHALL VOTE ONLY IN THE ABSENCE OF THE PRINCIPAL FRON.HIS GOVERNMENT. D. THE GOVERNING BODY SHALL BE RESPONSIBLE FOR THE GENERAL POLICIES AND PROGRAM OF THIS ASSOCIATION. FOR THE ELEC- TION OF OFFICERS, AND FOR A"MENDMENTS TO THESE BYLAWS. E. A QUORUM SHALL CONSIST OF DELEGATES FROM MAJORITY OF THE MEMBERS. A QUORUM SHALL BE REQUIRED FOR ALL ANNUAL MEETINGS AND FOR ALL OTHER MEI:PINGS AT WHICH OFFICIAL ACTION IS TO BE TAKEN. F. WHEN A QUORUM OF THE ASSOCIATION IS PRESENT AT ANY MEETING, THE MAJORITY VOTE OF THE VOTING MEMBERS, OR THEIR ALTERNATE, PRESENT SHALL DECIDE ANY QUESTION UNDER CONSIDERATION EXCLPT BYLAWS. 0. EACH DELEGATE SHALL REPRESENT HIS GOVERNMiENT IN THE MEETINGS OF THE COUNCIL AND SHALL REPORT TO THE GOVIEIIRING BODY OF HIS GOVERNMENT REGARDING ACTIVITIES OF THE COUNCIL AND OF THE ASSOCIATION. IT SHALL BE THE RESPONSIBILITY OF LACII COUNCIL MEI4BER TO PRESENT TO HIS GOVERNMENT ANY RECOMMENDATIONS FIiO}I THE COUNCIL FOR OFFICIAL ACTION AND TO REPORT TO THE COUNCIL THE ACTION UPON -SUCH RECOMMENDATIONS. i VI. OFFICERS OF THE COUNCIL DELEGATES A. THE ASSOCIATION SHALL ELECT A PRESIDENT AND VICE-PRESIDENT 1 OF THE ASSOCIATION. VACANCY OF ANY SUCH POSITION SHALL BE FILLED BY ELECTION AND SHALL HOLD OFFICE UNTIL THE EXPIRA- TION OF THE TERM OF HIS PREDECESSOR. TERMS OF OFFICE OF SUCH OFFICERS SHALL HE FOR ONE YEAR WITH ELECTIONS TO dE HELD IN MAY OF EACH YEAR. ALL SUCH OFF10ERS WILL CONTINUE TO SERVE IN THEIR RESPECTIVE POSITIONS UNTIL A REPLACEMENT HAS BEEN DULY ELECTED. A SECRETARY/TREASURER OF THE ASSOCIATION SHALL A pogo?. VI. OFFICERS OF THE COUNCIL DELEGATES (continued) BE APPOINTED BY THE PRESIDENT 14ITH THE CONCURRENCE OF A MAJORITY OF i'iiE COUNCIL OF DELEGATES. THE SECRETARY/ TREASURER SHALL BE FROM THE SAME MEMBER GOVERNMENT AS THE PRESIDENT BUT SHALL HAVE NO VOTE ON THE COUNCIL UN- LESS ABOVE. AND VOTES UNDER THE PROVISIONS OF PARAGRAPH V 01 P, DUTIES OF THE PRESIDENT SHALL BE: 1. PRESIDE OVER ALL MEETINGS OF THE ASSOCIATION, 2. CALL SPECIAL MEETINGS AS REQUIRED HEREIN, 3. PERFORM ALL ACTS AND DUTIES USUALLY PERFORMED BY PRESIDENTS, 4. SIGN ALL SUCH PAPERS OF THE ASSOCIATION AS HE MAY BE AUTHORIZED OR DIRECTED TO SIGN BY THE ASSOCIA- TION FROM TIME TO TIME, AS 14ELL AS ALL OTHER PAPERS PROVIDED BY LAW. C. DUTIES OF VICE-PRESIDENT 1, THE VICE-PRESIDENT SHALL PRESIDE OVER COUNCIL MEET- INGS IN THE ABSENCE OF THE PRESIDENTi. IN THE EVENT OF A VACANCY IN THE OFFICE OF PRESIDENT, HE SHALL SUCCEED TO THAT OFFICE FOR THE REMAINDER OF HIS TERM OF OFFIC'Y. D. DUTIES OF SECRETARY/TREASURER 1. THE SECRETARY/TREASURER SHALL KEEP THE MINUTES OF ALL MEETINGS, 2. SHALL MONIES FOR O THTHE EIR COUNCIL O TO AS THE INSTRUCTED BY THE COUNCIL, 3. ALL CHECKS OR DEMANDS FOR MONEY OF THE ASSOCIATION SHALL BE SIGNED BY THE PRESIDENT AND THE SECRETARY/ TREASURER, OR SUCH PERSO;IS AS THE ASSOCIATION MAY FROM TIME TO TIME DESIGNATE, 4, SHALL KEEP ACCOUNTS OF ALL RECEIPTS AND EXPENDITURES AND'REPORT THESE TO EACH COUNCIL, MEETING. VII. MEETINGS A. ASSOCIATION MEETINGS SHALL BE HELD MONTHLY UNLESS OTIIERWISE DESIUNATED BY THE ASSOCIATION, SUCH MEETINGS SHALL Bs HELD FOR THE CONDUCTINGRANYEOTHERMBUSINESSYWHICH MA`LCBENDLEMEDCAPPROND PRIATE, B, UWRITTEN NOTICE OF THE PON OR MAILED TO EACH A14EMBERTATNLEAST ISEVEN ADAYS EPHIORETO A MEETING, Page 3 i $ VII. MEET_ I'IGS (continued) 0. SPECIAL MEETINGS, FOR ANY PURPOSES OR PURPOSE, SHALL BE. CALLED BY THE PRESIDENT AT Tlld WRITTEN REQUEST OF AT LEAST 10 PERCENT OF THE TOTAL MEMBERS OR AT THE WILL OF THE PRESI- DENT. 'BUSINESS TRANSACTED AT ALL SPECIAL MEETINGS SHALL BE CONFINED TO THE OBJECTS AND BUSINESS TO BE TTANSACTED AS IN WRITTEN NOTICE OF SUCH SPECIAL MEETING WHICH SHALL ALSO STATE THE TIME AND PLACE OF SUCH SPECIAL MEETING. VIII. DUES AND BUDGET A. THE ASSOCIATION BY MAJORITY VOTE, SHALL HAVE THE POWER TO CREATE AND ESTABLISH A WORKING CAPITOL FOR THE SUCCESSFUL OPERATION OF THE AFFAIRS OF THIS ASSOCIATION AS FOLLOWS. 1. ESTABLISHMENT OF DUES FROM EACH MEMBER, 2. ALLOCATING ANY UNUSED SURPLUS FUNDS ON HAND FROM DUES PAID BY MEMBERS OR DONATIONS, 3. SOLICITATION OF FUNDS IN THE FORM OF' DONATIONS. Be THE FISCAL YEAR OF THE ASSOCIATION SHALL BEGIN ON THE FIRST DAY OF OCTOBER IN EACH YEAR. C. THE ANNUAL BUDGET, INCLUDING THE DUES STRUCTURE, FOR THE i 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 MEMBERS MAY JOIN THE ASSOCIATION UPON A PRO-RA'Z'E PAY- MENT OF DUES FOR THFS REMAINING PORTION OF THE CURRENT FIS- CAL YEAR. E. A FINANCIAL REPORT SHALL BE MADE AFTER THE CLOSE OF THE FISCAL YEAR AND BE MADE AVAILABLE TO ALL MEMBERS. IX. 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 TI14E STATED THEREIN SHALL BE DEEMED EQUIVALENT THERETO. X. AMENDMENTS A. THESE BYLAWS MAY BE ALTERED, AMENDED OR ADDED TO BY WRITTEN BALLOTS FROM THE MEMBERS, PROVIDEDI 1. THAT NOTICE OF THE CHANCES SHALL CONTAIN A FULL, STA 20 T HETENAC~TMENTT0IC TPROEPAMOSED I':;. MAJORITY VOTE OF THE ASSOCIATION AND SHALL NOT 'IN ADOPTED UNTIL, RATIFIED BY TILL (IOVEHNING BODIES Ov TWO-THIRDS (213) OF THE MEM13EH CITIES OF TILE: ASCOC- IATION. l Patio 4 XI. POWERS ANA DUTIES OF THE COUNCIL OF DELEGATES A. THE COUNCIL OF DELEGATES HAVE THE P014SR AND DUTY TO EXPLORE AND DEFINE SUBJECTS AND/OR AREAS FOR COOPER- ATIVE OR JOINT ACTION AMONG THE MEMBERS. B. IT SHALL DETERMINE THE MOST APPROPRIATE METHOD FOR ACCOMPLISHING SUCH ACTION AND RECOMMEND ADOPTION OF THAT METHOD TO EACH MEMBER. IT SHALL PREPARE, OR CAUSE TO BE PREPARED, ANY ORDINANCE OR DOCUMENT NECESSARY FOR ADOPTION BY THE MEMBERS. C. NO RECOMMENDATION OF THE COUNCIL SHALL BE EFFECTIVE UNLESS AND UNTIL OFFICIALLY ADOPTED BY THE GOVERNING BODIES OF THE 14EMBERSO • i ' i j I Page 5 6C4 .y O ,j i is S L v } r kj h a fs ~3. A ~t h,. ~ ~yy S ~i ~ d. K t f~ ~ _ ~ t ~e r A 1 ~ . < * ~ ~ ~ ~ ~ 'e i I f~ THE STATE OF TEXAS X AGREEMENT COUNTY OF DENTON X This agreement entered into on this the 7th day of September, 1476, between the City of Denton, Texas, a home rule muiicipal cortKiration, hereinafter called "City", and Bell Avenue Memorial Church, hereinafter called "Church", and the parties 1 hereto do contract and agree as follows: WHEREAS, the City is engaged in a street paving bond program for the improvement of Sherman Drive, and it, is neces- sary to improve Bell Avenue to provide an alternate route for citizens during the period of construction on Sherman Drive; and I WHEREAS, the City is also engaged in a street paving assessment program whereby certain streets are paved and the adjoining property owners are assessed a portion of the paving costs; and WHEREAS, Peach Street is one of she streets being paved under the Street Paving Assessment Program and Church is one of l the adjoining proper. y owners on said street. Such adjoining property owned by the Church on Peach Street extends for a dis- tance of sixty (60) feet into the proposed right-of-way for the extension of Bell Avenue; and WHEREAS, it is necessary that the City purchase right- of-way from the Church for the ?roper construction, width and paving of Bell Avenue; NOW, THEREFORE, IT IS AGREED BETWEEN THE PARTIES THAT! 1. The Church will bargain, sell, release and quit claim the necessary right-of-way to the City for the extension and paving of Beal Avenue for the consideration of Six Hundred .Dol- larn ($:100.00) . 2, That ;ix Hundred Dollars ($600.00) is the amount to be assessed by the City against the property owned by the Church for the east sixty (60) feet of their property adjoining Peach Street. i~ !I E j 3. That no money will be paid by the City Lo the Church, but a credit will be made in their behalf for the paving assess- ment on Peach Street and sixty ,60} feet of the assessment will E be recorded as paid. 4. The City agrees to pave Bell Avenue north of Peach Street by constructing curb and gutter and asphalt pavement with- out assessing the Church for the cost of same. The City also a,.ees to construct one full driveway for the Church on Bell % venue and to provide two drive openings as a part of the paving i project. SIGNED AND ENTERED this the 7th day of September, A. D. E 1976. CITY OF DENTON, TEXAS BY- ~tpy ELINOR HUGHES, sYOR ATTEST: ,DROOKS HOLT, CITY SECRETARY CITY OF nBNTON, TEXAS APPROVED AS TO LEGAL FORM: UL C. ISHAM, CITY ATTORNEY CITY OF DENTON, TEXAS BELL AVENUE MEMORIAL CHURCH BY: WffffE SHULTZVTRU 'lei T. W, KING, JR., T S 9 UEL, TRUSTE -2- lo-airitercial Standard INSURANCE COMPANIES 6421 CAMP BOWIE • P. 0. BOX 12216 FORT \YORThi. TEXAS 76116 • I8171 7382151 City Secretary Sept. 9, 1976 City of Denton Municipal Building Denton, Texas 76201 CERTIFIED MAIL • RETURN ar>cerrr aEQUesTW RE: License 6 Permit Bond 9108601 for Clyde J. Alverson dba Fort Worth Heating 5 Air Conditioning Gentlemen: In accord with the conditions of the above Bond we advise you of its cancellation to become effective November 10, 1976. Your acknowledgment will be appreciated. Yours very truly, Gwten Jack n Bond Dep ment ces Jim Horton Insurance 2312 Oakland Fort Worth, Texas 76103 72015 ~ ~ ~ ~ ~ o