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2016-09-13 Agenda with Backup
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McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1103,Version:1 Agenda Information Sheet DEPARTMENT:Finance ACM:Bryan Langley Date:September 13, 2016 SUBJECT Receiveareport;holdadiscussion,andgivestaffdirectionregardingthelimitationofmunicipaltaxeson homesteads of disabled and elderly (tax freeze). BACKGROUND ThepurposeofthisworksessionistoprovideadditioninformationtheCityCouncilregardingthelimitationof municipaltaxesonhomesteadsofdisabledandelderly(taxfreeze).ThisprovidestheCityCouncilan opportunitytodiscussthistopicandgivestaffdirectionorrequestadditionalinformation.Inadditiontoa presentationattachedasExhibit1,Ihaveincludedtwomapexhibitsdisplayingthepropertiesreceivingthe over 65 and disabled exemption by value (Exhibit 2) and property tax deferrals by value (Exhibit 3). Thepropertytaxdeferralallowsforhomesteadpropertyownersthatqualifyfortheover65ordisabled exemptiontodeferpaymentofalloraportionoftheirpropertytaxesaslongastheownercontinuestoownand liveinthehome.Taxesaccumulate8.0%interestayear,butnopenaltiesarecharged.Alldeferredtaxesand interestbecomeduewhenthehomeownerorsurvivingspousenolongerownandliveinthehome.Taxing unitscannotstartorcontinuealawsuittocollectdelinquenttaxesduringthedeferralandthereisnolimitasto the total value of the deferral in comparison to the value of the property. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1 - Presentation City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1103,Version:1 Exhibit 2 - Over 65 and Disabled Map Exhibit 3 - Tax Deferral Map Respectfully submitted: Chuck Springer, 349-8260 Director of Finance City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© 2016 OVER 65 AND DISABLED EXEMPTIONS LAKE RAY ROBERTS SANGER LEGEND J !$400K + ( ! ! ! !$300K to $400K ( !! ! !($200K to $ 300K ! !$100K to $200K ( ! !(< $100K ! ! ! I-35 ! ! I-35 § ¨¦ ! ! ! ! ! ! ! 428 ! " ) ! ! ! ! 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NORTHLAKE HICKORY CREEK ARGYLE COPPER CANYON LAKE LEWISVILLE BARTONVILLE SANGER 2016 DEFERRED TAXATION PROPERTIES LEGEND J !$400K + ( !$300K to $400K ( !$200K to $ 300K ( !$100K to $200K ( !< $100K ( I-35 I-35 § ¨¦ 428 ") KRUM 2164 " ) ! ! ! 77 ! £¤ ! ! ! ! ! ! ! ! ! ! !! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! 380 ! £¤ ! ! ! ! ! ! ! !!! ! ! ! ! !! ! ! !! ! ! ! ! ! ! ! !! ! ! 426 ! ") ! !! !! !! ! ! 1515 " ) 288 ! ! !( ! ! ! ! ! ! ! ! I-35E I-35E §¨ ¦ ! ! ! ! ! ! ! ! 2449 ") ! ! ! ! ! ! ! ! SHADY ! SHORES ! ! ! ! ! ! ! 1830 ! ") ! ! I-35W I-35W CORINTH !§¨ ¦ ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! !! ! ! ! !! ! ! ! ! !! ! ! ! ! ! ! ! ! HICKORY CREEK ARGYLE LAKE LEWISVILLE COPPER CANYON CORRAL CITY NORTHLAKE BARTONVILLE FLOWER MOUND City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1148,Version:1 Agenda Information Sheet DEPARTMENT:Development Services, Building Inspections Division CM/ ACM:Jon Fortune Date:September 13, 2016 SUBJECT Receiveareport,holdadiscussionandgivestaffdirectionregardingadditionalamendmentstothe2015 InternationalEnergyConservationCode(IECC)asproposedbytheNorthCentralTexasCouncilof Governments and recommended by staff. BACKGROUND Asaresultoftestingconductedbybuildersattemptingtopreparefortherequirementsofthe2015IECC,itwas determinedthatthemostchallengingissuewasobtainingcompliancewiththemaximumairleakage requirementsofthecode.Asaresult,theNorthCentralTexasCouncilofGovernments(COG),inconjunction withtheDallasBuildersAssociation,andotherindustryrepresentatives,developedaproposedamendmentto the2015IECCwhichwouldallowforanalternativeprescriptivepathforcomplyingwiththesecode requirements.AsrequiredbyStatelaw,COGsubmittedtheproposedamendmentstotheEnergySystems Laboratory(ESL)atTexasA&MUniversityforanalysisandonJuly8,2016theESLcompleteditsreviewof theproposedamendments.ESLdeterminedthattheproposedamendmentsmetorexceededtheefficiency requirementsofthe2015IECC.COGpostedtheseproposedamendmentsundertherecommendedamendments section of their website in August. The2015IECCcurrentlyprovidesbothaprescriptiveandaperformancebasedpathtobuilderswhen determininghowtodemonstratecompliancewiththecode.Theperformancebasedpathhasseveraloptions andseveraldifferentsoftwareprogramsavailabletothebuildertodemonstratecompliance.However,the prescriptivepathhasasinglerigidsetofguidelineswhichmustbefollowedinordertodemonstrate compliance.Theproposedamendmentsapplytothoseprojectswhicharechoosingtocomplywiththis prescriptivepath.Thepurposeoftheseamendmentsistoallowbuildersalessrigidoptiontodemonstrate compliancewiththecode,aswellasanoptionwhichincludesflexibilitywhentheyareunabletomeetthe maximumrequirementof3airchangesperhourfortherequiredblowerdoortest.Thisamendmentenablesthe buildertoprovideadditionalinsulationinallceilingareasaswellastrade-offsinotherareasinordertoprovide a product which meets or exceeds the energy efficiency requirements of the 2015 IECC. Thesetradeoffoptionsaredeemedtobenotlessstringentthantheresidentialprovisionsofthe 2015IECC and the 2015IRC.Thetradeoffrelaxestherequired3ACH50perSectionsR402.4.1.2(N1102.4.1.2)ofthe residentialprovisionsofthe 2015IECC andthe 2015IRC.Thetradeoffwillpermithousesthattesttolessthan or equal to 4ACH50 as outlined in Options #1 and #2 below. The tradeoff is limited as follows: City of DentonPage 1 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1148,Version:1 1.Limitedtoone-andtwo-familyresidenceswithaconditionedfloorareabetween1,000and6,000square feet. 2. Limited to one- and two-family residences containing between 2 to 6 bedrooms. 3. Assumes all ductwork and mechanical equipment is located in the unconditioned attic. 4. Assumes typical wood framing in the walls and roof. 5. Assumes one of the following heating/cooling systems: a. All electric system with a heat pump for heating, or b. A system with electric cooling and natural gas heating. (Note: electric resistance strip heating does not qualify for this tradeoff.) 50 a ESL 4ACHPrescriptive Tradeoff Code Equivalency Compliance 9ƓǝĻƌƚƦĻ /ƚƒƦƚƓĻƓƷhƦƷźƚƓ ϔЊhƦƷźƚƓ ϔЋ 5050 R4 0 2.4 Air Leakage ѡ 4ACH ѡ 4ACH bb Wall Insulation w-valueR13 + R3R13 + R3 Fenestration -factor ѡ 0.32 ѡ 0.32 Fenestration SHGC ѡ 0.25 ѡ 0.25 Ceiling w-value Ѣ R49 Ѣ R49 Duct Insulation w-valueR8R6 Radiant Barrier RequiredNoYes a Except for the values listed in the table, all other mandatory code provisions are applicable. b Thefirstvaluelistedisthe w-valueofcavityinsulation,thesecondvalueisthe w-valueofthecontinuous insulation or insulated siding. CURRENT ADOPTION Staffisrecommendingincorporatingthetabletitled“ESL4ACHPrescriptiveTradeoffCodeEquivalency Compliance”(attached)tothecurrentproposedCOGamendmentsinordertoprovideanalternativepathfor builderstodemonstratecompliancewiththe2015IECC.Thiswillprovidebuilderswithseveraloptionsasto how to comply with the code requirements. FISCAL IMPACT Staff does not anticipate any fiscal impact as a result of adopting this code. OPTIONS (No action required) 1.Direct staff to proceed with the addition of the proposed amendments. 2.Request more information about the proposed amendments. RECOMMENDATION City of DentonPage 2 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1148,Version:1 StaffrecommendsthattheCityCouncilincludethisamendmentwiththeadoptionofthe2015InternationalEnergyConservation Code along with previous staff recommended amendments. EXHIBITS 1.The Proposed 2015 Energy Code Adoption Ordinance. 2.Additional Amendment Proposed by COG 3.Council Presentation on Updated Amendment 2015 IECC. Respectfully submitted by: Munal Mauladad, Deputy Director of Development Services Respectfully prepared and submitted by, Rodney Patterson, Building Official City of DentonPage 3 of 3Printed on 9/9/2016 powered by Legistar© ORDINANCE NO. ____________________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING CHAPTER 28, SPECIFICALLY SECTIONS 28-253 AND 28-254, OF THE CODE OF ORDINANCES TO PROVIDE FOR THE ADOPTION OF THE 2012 INTERNATIONAL ENERGY CONSERVATION CODE, AS PUBLISHED BY THE INTERNATIONAL CODE COUNCIL; PROVIDING FOR AMENDMENTS THERETO; PROVIDING A PENALTY FOR VIOLATION OF A FINE NOT TO EXCEED $2,000.00; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON TEXAS HEREBY ORDAINS: SECTION 1. Chapter 28, Section 28-253 of the Code or Ordinances of the City of Denton is hereby amended in its entirety to read as follows: Sec. 28-253. Adoption of the energy conservation code. The International Energy Conservation Code, 2015 edition as published by the International Code Council is hereby adopted and designated as the energy conservation code for the city subject to the deletions and amendments enumerated in section 28-254. A copy of this code shall be maintained in the Office of the City Secretary and be available for public inspection. SECTION 2. (1) Section C102/R102; add Section C102.1.2 and R102.1.2 to read as follows: C102.1.2 Alternative compliance. A building certified by a national, state, or local accredited energy efficiency program and determined by the Energy Systems Laboratory to be in compliance with the energy efficiency requirements of this section may, at the option of the Code Official, be considered in compliance. The United States Environmental Protection Agency's Energy Star Program certification of energy code equivalency shall be considered in compliance. R102.1.2 Alternative compliance. A building certified by a national, state, or local accredited energy efficiency program and determined by the Energy Systems Laboratory to be in compliance with the energy efficiency requirements of this section may, at the option of the Code Official, be considered in compliance. The United States Environmental Protection Agency's Energy Star Program certification of energy code equivalency shall be considered in compliance. Regardless of the program or the path to compliance, each 1- and 2-family dwelling shall be tested for air and duct leakage as prescribed in Section R402.4 and R403.3.3 respectively. (2) Section C202 and R202; add the following definition: Projection Factor. The ratio of the horizontal depth of the overhang, eave or permanently attached shading device, divided by the distance measured vertically from the bottom of the fenestration glazing to the underside of the overhang, eave or permanently attached shading device. (3) Section R202; add the following definition: DYNAMIC GLAZING. Any fenestration product that has the fully reversible ability to change it performance properties, including U-factor, solar heat gain coefficient (SHGC), or visible transmittance (VT). (4) Section R402.3.2 Glazed fenestration SHGC; amend by adding a paragraph and table following the exception to read as follows: Where vertical fenestration is shaded by an overhang, eave, or permanently attached shading device, the SHGC required in Table R402.1.2 shall be reduced by using the multipliers in Table R402.3.2 SHGC Multipliers for Permanent Projections. a Table R402.3.2 SHGC Multipliers for Permanent Projections Projection SHGC Multiplier SHGC Multiplier Factor (all Other Orientation) (North Oriented) 0 - 0.10 1.00 1.00 >0.10 0.20 0.91 0.95 >0.20 0.30 0.82 0.91 >0.30 0.40 0.74 0.87 >0.40 0.50 0.67 0.84 >0.50 0.60 0.61 0.81 >0.60 0.70 0.56 0.78 >0.70 0.80 0.51 0.76 >0.80 0.90 0.47 0.75 >0.90 1.00 0.44 0.73 a North oriented means within 45 degrees of true north. (5) R402.4.1.2 Testing; Add a last paragraph to read as follows: Mandatory testing shall only be performed by individuals that are certified to perform air infiltration testing certified by national or state organizations as approved by the building official. The certified individuals must be an independent third-party entity, and may not be employed; or have any financial interest in the company that constructs the structure. (6) R403.3.3 Duct Testing (Mandatory);Add a last paragraph to read as follows: Mandatory testing shall only be performed by individuals that are certified to perform duct testing leakage testing certified by national or state organizations as approved by the building official. The certified individuals must be an independent third-party entity, and may not be employed; or have any financial interest in the company that constructs the structure. (7) Section C402.2.7/R402.2; Add Section C402.2.9 and R402.2.14 to read as follows: Section C402.2.7/R402.2.14 Insulation installed in walls. To insure that insulation remains in place, insulation installed in walls shall be totally enclosed on all sides consisting of framing lumber, gypsum, sheathing, wood structural panel sheathing, or other equivalent material approved by the building official. (8) Section R405.4.2.1 add the following: 5. Name, phone number, and certification number of the individual completing the compliance report. The preparer of the compliance report shall possess one of the following certifications: ICC (International Code Council) Commercial Energy Plans Examiner, ICC (International Code Council) Residential Energy Inspector/Plans Examiner, HERS (Home Energy Rating) rater, or may be a Texas Registered Architect or Texas Licensed Professional Engineer. (9) Section R405.4.2.2 add the following: 4. f Denton Energy Compliance form. (10) Section R405.6.2; add the following sentence to the end of paragraph: Acceptable performance software simulation tools may include, but are not limited to, TM REM Rate, Energy Gauge and IC3. Other performance software programs accredited by RESNET BESTEST and having the ability to provide a report as outlined in R405.4.2 may also be deemed acceptable performance simulation programs and may be considered by the building official. (11) TABLE R406.4 MAXIMUM ENERGY RATING INDEX; amend to read as follows: 1 TABLE R406.4 MAXIMUM ENERGY RATING INDEX CLIMATE ZONE ENERGY RATING INDEX 3 65 1 This table is effective until August 31, 2019. 2 TABLE R406.4 MAXIMUM ENERGY RATING INDEX CLIMATE ZONE ENERGY RATING INDEX 3 63 2 The table is effective from September 1, 2019 to August 31, 2022. 3 TABLE R406.4 MAXIMUM ENERGY RATING INDEX CLIMATE ZONE ENERGY RATING INDEX 3 59 3 This table is effective on or after September 1, 2022. (12) C407.4.2 Additional Documentation; add the following: 6. Compliance reports, all additional documentation, and a final compliance and commissioning verification report shall be prepared by a qualified third party energy verifier. The third party energy verifier shall include his name, phone number, and certification number on each document provided to the City. The third party verifier shall be certified with one of the following certifications: ICC (International Code Council) Commercial Energy Plans Examiner, ICC (International Code Council) Commercial Energy Inspector, HERS (Home Energy Rating) rater, or may be a Texas Registered Architect or Texas Licensed Professional Engineer. SECTION 3. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application, and to this end the provisions of this ordinance are severable. SECTION 4. That all provisions of the ordinances of the City of Denton in conflict with the provision of this ordinance are hereby repealed, and all other provisions of the ordinances of the City or Denton, not in conflict with the provision of this ordinance, shall remain in full force and effect. SECTION 5. That any person violating any provision of this ordinance shall, upon conviction, be fined a sum not to exceed two thousand dollars ($2,000.00). Each day that a provision of this Ordinance is violated shall constitute a separate and distinct offence. SECTION 6. That this ordinance shall become effective September 1, 2016 and the City secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this, the ____________day of ___________, 2016 ________________________________ CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:______________________________ July 8, 2016 Determination of Prescriptive Tradeoff Code Compliance Options for the NCTCOG Region In accordance with the Health and Safety Code, Section 388.003, subsection (e), the Energy Systems Laboratory of the Texas A&M University System has analyzed tradeoff code compliance options for the North Central Texas Council of Government (NCTCOG) Region to meet the requirements of the ЋЉЊЎ LƓƷĻƩƓğƷźƚƓğƌ 9ƓĻƩŭǤ /ƚƓƭĻƩǝğƷźƚƓ /ƚķĻ ΛL9//Μ and the ЋЉЊЎ LƓƷĻƩƓğƷźƚƓğƌ wĻƭźķĻƓƷźğƌ /ƚķĻ ΛLw/Μ. These tradeoff options are deemed to be not less stringent than the residential provisions of the 50 ЋЉЊЎ L9// and the ЋЉЊЎ Lw/. The tradeoff relaxes the required 3ACHper Sections R402.4.1.2 (N1102.4.1.2) of the residential provisions of the ЋЉЊЎ L9// and the ЋЉЊЎ Lw/. The tradeoff will 50 permit houses that test to less than or equal to 4ACHas outlined in Options #1 and #2 below. The tradeoff is limited as follows: 1. Limited to one- and two- family residences with a conditioned floor area between 1,000 and 6,000 square feet. 2. Limited to one- and two-family residences containing between 2 to 6 bedrooms. 3. Assumes all ductwork and mechanical equipment is located in the unconditioned attic. 4. Assumes typical wood framing in the walls and roof. 5. Assumes one of the following heating/cooling systems: a. All electric system with a heat pump for heating, or b. A system with electric cooling and natural gas heating. (Note: electric resistance strip heating does not qualify for this tradeoff.) 50 a ESL 4ACHPrescriptive Tradeoff Code Equivalency Compliance Envelope ComponentOption #1Option #2 5050 R402.4 Air Leakage< 4ACH< 4ACH bb Wall Insulation w-valueR13 + R3R13 + R3 Fenestration -factor< 0.32< 0.32 Fenestration SHGC< 0.25< 0.25 Ceiling w-value> R49> R49 Duct Insulation w-valueR8R6 Radiant Barrier RequiredNoYes a Except for the values listed in the table, all other mandatory code provisions are applicable. b The first value listed is the w-value of cavity insulation, the second value is the w-value of the continuous insulation or insulated siding. City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1062,Version:1 Agenda Information Sheet DEPARTMENT:Finance ACM:Bryan Langley Date:September 13, 2016 SUBJECT Receiveareport;holdadiscussion,andgivestaffdirectionregardingtheFY2016-17CityManager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. BACKGROUND TheFY2016-17CityManager’sProposedBudgetwassubmittedtotheCouncilonJuly29,2016.Staff providedtheCityCouncilwithacomprehensiveoverviewoftheproposedbudgetataBudgetWorkSessionon August4,2016.Inaddition,theCityCouncilheldworksessionsontheproposedbudgetonAugust9,August 16,andAugust23,2016.Duringthesemeetings,theCityCouncilaskedanumberofquestionsandrequesteda varietyofinformationconcerningtheproposedbudget.ThepurposeofthisagendaitemistoprovidetheCity Councilwithanswerstothesediscussionsregardingtheproposedbudgetandallowadditionalopportunityfor questionsanddialogue.Amemorandumthatsummarizesthemostrecentquestionsandtheresponsesthatwe have been able to compile is attached. Below is the schedule we will follow to adopt the budget and tax rate: nd September 132 Public Hearing on Tax Rate Public Hearing on Proposed Budget September 20City Council Adopts Budget and Tax Rate Thefollowingsummarizes(tothebestofmyability)theCityCouncilrecommendedchangestotheProposed Budget to date: General Fund City Manager’s FY 2016-17 Proposed Expenditures$114,503,492 Increase Parks Foundation Funding to $77,000$ 42,000 Historic Preservation Plan (one-time)$ 60,000 Revised General Fund FY 2016-17 Expenditures$114,605,492 City Manager’s FY 2015-16 Proposed Additional Expenditures$ 1,224,784 Replace Emergency Services Grant Funding (one-time)$ 200,000 City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1062,Version:1 Breathing Air Compressor for Fire (one-time)$ 45,000 Parking Lot Fencing for Police (one-time)$ 90,000 Cemetery Assessment for Parks (one-time)$ 152,596 Revised General Fund FY 2015-16 Additional Expenditures$ 1,712,380 Other Fund Changes $ 207,000 for a portion of Downtown Sidewalk Improvements from the Downtown TIRZ Fund Ilookforwardtodiscussingthebudgetmaterialsindetailwithyou.Ifyouhaveanyquestions,orneed additional information, please let me know. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1- Memorandum of Responses Respectfully submitted: Chuck Springer, 349-8260 Director of Finance City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© Finance Department * 215 E. McKinney * Denton, TX 76201 (940) 349-8224 * DFW Metro (972) 434-2259 * Fax (940) 349-7206 MEMORANDUM DATE: September 13, 2016 TO: Honorable Mayor and Members of the City Council FROM: Chuck Springer, Director of Finance SUBJECT: City Council Budget Questions and Responses Information regarding the FY 2016-17 Proposed Budget and Five Year Forecast was presented to th the City Council on August 4, with Council discussions on August 9, 16 and 23rd. Below is a summary of the most recent questions and requests, from the City Council as I understand them, and the responses compiled to date. For the items that require further research, we will provide additional information at a future City Council meeting. 1. Please provide FY 2016-17 revenue projections for the Water Works Park at 80,000 and 85,000 estimated visitors as compared to 90,000 estimated visitors which was used to project revenue in the FY 2016-17 Proposed Budget. The wave pool will be the second attraction at the Denton Water Works Park that is open to all ages, in addition to the lazy river. The addition of the wave pool will attract more customers in the 12 year old -25 year old demographic, which is currently an underserved age group with the existing park amenities. The wave pool addition will also extend the length of - 15 daily attendance totals reached 83,000 visitors. The average daily attendance is 1,000 visitors during approximately 89 operating days. We estimate that the addition of the wave pool will provide an additional capacity for up 900 visitors. In estimating the increase in attendance for Fiscal Year 16-17, staff used actual attendance data from prior years and included an escalator of an additional 202 visitors per operating day, which is expected to be generated from interest in the new wave pool. In addition, the restructuring of the membership pricing will allow customers to have more flexibility to purchase passes at a discounted rate for groups of four or more. Currently the family passes only allow immediate family members to be on the pass. The restructure of passes to individual passes will allow the discount to include extended family members and friends. Attachment 1 and Attachment 2 reflect revenue projections for Water Works Park using 80,000 and 85,000 attendance levels and at various admission rates. 2. Please provide information on alcohol sales at water parks. Attachment 3 is a listing of local water parks indicating which have alcohol sales. Question and Answer Memorandum September 13, 2016 Page 2 of 7 3. Please provide information on Council meals, Council Contingency budgets, and travel and training budgets for both General Fund and Council. We are budgeting $14,575 in FY 2016-17 for City Council meals. This figure includes funding for lunch, dinner, snacks, and associated drinks during the year. We are budgeting $17,500 in Council contingency funds for FY 2016-17. This equates to $2,500 per Council member. Attachment 4 is the total travel and training budget for the General Fund by department. For FY 2016-17, we are budgeting $396,737 which is approximately $473 per FTE. This amount includes $30,670 for City Council travel and training. 4. Please provide information on how travel and training budgets are set for each department including City Council and what happens when the department exceeds their travel and training budget. The Council travel budget is part of the overall City Manager's Office (CMO) budget. Therefore, if the Council travel plans exceed the budget amount, we make other changes within the CMO budget to accommodate the requests. Essentially, we have tried to budget Council travel funds consistent with what we have seen historically. In years when Council wants to travel more, we attempt to make it work by finding other funding within the department. Departments budget for what they anticipate needing for employee development, maintaining credentials/certifications, etc. If there is a need for more funding, the departments are responsible for finding the resources in the existing budget. Likewise, if they do not need all of the funds, they have an opportunity to allocate these resources to other items that may be needed. 5. Please provide information on the Airport Enterprise Fund and the long term financial projection. Attachment 5 is a report on the history of the Airport Enterprise Fund. Attachment 6 includes two Five Year Forecasts for the Airport Enterprise Fund. The first page is the Proposed FY 2016-17 Forecast showing the elimination of the Return on Investment (ROI) and the Debt Service payment starting in FY 2016-17. The second page shows the Airport 5 Year Forecast keeping both the ROI and the Debt Service payment in the Airport Fund which will result in exhausting the fund balance by the end of FY 2018-19. Question and Answer Memorandum September 13, 2016 Page 3 of 7 6. Please provide information on the status of the City wide inventory of sidewalk needs, associated funding sources and projected timelines for completion. PROPOSED SIDEWALK PROGRAM PLAN Goal: Develop a Street Sidewalk Plan to identify all sidewalk needs along public streets within the City of Denton, estimate the costs of each of those needs, prioritize those needs and develop a multi-year funding request to satisfy those needs. Funding: Current Funding: 2014 Bond Program $2,000,000 (including $80,000 allocated to Downtown Sidewalk priorities) Mgr. Recommended Funding (FY2016-17 Budget): ADA PROWAG* Funding for ADA Improvements along Streets $168,064 (in FY16-17, from General Fund) ADA Transition Plan Study for Sidewalks along Streets 250,000 (from FY15-16 EOY Budget Balance) Downtown Sidewalk Program 207,000 (from FY15-16 EOY Budget Balance)** 145,000 (in FY16-17, from Traffic Safety Fund) Total for FY2016-17: $770,064 *Public Right-of-Way Accessibility Guidelines ** May be funded from Downtown TIRZ. TIRZ Board will consider at next meeting. Programming of Sidewalk Funding: 2014 Bond Program Funding: The Bond Oversight committee identified only an allowance for sidewalk funding, leaving the identification of specific sidewalks up to staff, with review by the Mobility Committee. Staff developed a prioritized project funding listing, based on (1) ADA concerns, (2) school locations, (3) citizen requests, (4) missing sections identified from previous projects or to the Citizens Bond Committee and to the Council Mobility Committee for review and comment. Implementation has begun on the highest priority projects. ADA PROWAG Funding This funding will be used to bring existing intersection crosswalks to current ADA standards, including upgrading of pedestrian buttons to include audible alerts. ADA Transition Plan: This funding will be used to secure a consultant to identify ADA compliance issues on all City sidewalks. Downtown Sidewalk Funding: Question and Answer Memorandum September 13, 2016 Page 4 of 7 sidewalks in the Downtown Area. Additional Sidewalk Plan Activities: Maintenance Activities: Streets allocates approximately $1,000,000 of its street maintenance budget each year for repair of curb & gutter, sidewalks and ADA ramps (approximately 1/3 to each area), based on citizen complaints, staff observations and needs identified as part of street reconstruction and major maintenance activities. City Street Sidewalk Inventory: and Sidewalks was conducted as part of the 2015 Street OCI Survey. This inventory mapped locations of sidewalks along City streets and provided general information about those sidewalks, including type (asphalt, concrete or other), width categories (no specific dimensions), general location from the curb or street edge, general condition (good, fair, poor and very poor), and ADA ramp locations. City staff has been placing that information into a GIS Sidewalk Map and adding key destinations (schools, parks, libraries, churches, etc.), in order to assist in prioritization of missing sidewalk segments. TxDOT Road Sidewalk Inventory: A High School intern was used during the summer to conduct a visual inventory survey of sidewalks along TxDOT Sidewalk Prioritization System: City staff is developing a Sidewalk Prioritization System, to be used to prioritize construction of missing sidewalks based on a number of critical factors, such as ADA needs, potential for pedestrian traffic, a deficiency index (based on safety, need, sidewalk continuity, etc.) and a feasibility index (based on available right-of-way, obstructions to construction, etc.). This Prioritization System should be completed by the end of this calendar year. Problem: While street reconstruction and maintenance costs can be fairly well estimated using unit prices (since the roadway width is already defined, no additional right-of-way is required and additional storm drainage is not normally required), missing sidewalk segments are not so easily estimated. Missing sidewalk segments require prioritization (based on need factors), assessment of existing right-of-way (to determine if additional right-of-way is required for the sidewalk and, if so, how much), assessment of drainage implications (is storm drainage work required to place the sidewalk and to what extent), assessment of ADA implications (is special construction needed to comply with ADA requirements), assessment of required construction to place a sidewalk (retaining walls, etc.), and cost estimating of each sidewalk segment. These assessments generally require an engineer or experienced engineering technician. Question and Answer Memorandum September 13, 2016 Page 5 of 7 Recommendations: A. Allow staff to develop a prioritized listing of Sidewalk Needs for missing sidewalk segments and very poor and poor sidewalk segments in preparation for a potential 2019-2020 Bond Program, as the 2014 Bond Program Sidewalk Funding is being expended on the current Bond Program Priority Listing. B. This assessment and prioritization work might be done quicker using a consultant. But, an outside consultant could cost as much as $300,000. Staff feels that funding could be better spent on constructing sidewalks and that the Sidewalk Program funding need is so great that it would take much longer to fund it than the time required to assess and estimate the needs. C. Allow staff to proceed with implementing the 2014 Bond Program Sidewalk Program, using the current funding and current listing. The listing can be adjusted if factors indicate there is a substantial priority need for other sidewalk segments. This action would allow implementation of sidewalk construction while the full City Sidewalk Program is being prepared, rather than awaiting preparation of it to expend any funding. D. Information to the website, along with an on-line form for citizens to report sidewalk problems and make requests for sidewalk construction. 7. Please provide additional information on lobbyist contracts. The City uses three lobbyist firms. Focused Advocacy (Snapper Carr), Capital Edge (Washington DC), and Solutions for Local Control (Fred Hill). The Focus Advocacy contract was approved by Council in August in the amount of $166,000 per year. The Solutions for Local control contract is approximately $42,000 per year. The Council will th be asked to approve a new contract with this firm on September 20. The Capital Edge contract expires in September 2017, and it is approximately $54,000 per year. 8. Please provide information on how the Economic Development partnership funds for the Chamber of Commerce are divided up between General Fund and utilities, and why this allocation methodology is used. For FY 2016-17, we have budgeted the following amounts for the Chamber of Commerce contract. $62,897 General Fund (Economic Development Department) $109,000 Electric Fund $29,355 Water Fund $22,000 Wastewater Fund $21,000 Solid Waste Fund Question and Answer Memorandum September 13, 2016 Page 6 of 7 $244,252 Total Since the Chamber contract is viewed as a way to increase economic development across the city, we have budgeted for this expense across multiple funds. The idea is that multiple parts of the organization benefit from economic development (e.g. property tax and utility revenue), and as a result, there should be a shared partnership in the costs. The allocation to each fund, however, is largely unscientific, and it has been based mostly on past allocations which began many years ago. In other words, we have not done an analysis to show whether DME receives 50% of the benefit of the chambers efforts. With that said, the utility funds most likely pay for more than their proportional share of services. As a result, if we shifted all of the costs to DME (or all utilities), the ratepayers would be paying the entire cost of services that benefit, at least in part, taxpayers. 9. . Specifically, have they proposed an increase to their solar rebates. In the FY 2016-17 proposed budget, the solar rebate from DME is recommended to increase from $180,000 to $200,000. We have also added $30,000 for rebates for customers that install energy efficiency upgrades (e.g. HVAC, solar screens, insulation, etc). In addition, we added $60,000 for the below programs for customers. 1) Standard Offer Incentive a. Available for DME customers that have a minimum peak demand of 200kW. b. Participants must reduce their peak demand by a minimum of 50kW. c. Eligible projects are those that are permanent energy efficient/conservative upgrades. 2) Engineering Audit a. Available for DME customers that are on rate schedule General Service Large or General Service Time of Use b. Participants are eligible for one detailed audit rebate every three years. c. Engineering firm that customer chooses must meet the minimum scope of work. 3) Demand Response Control a. This is not a program that is in place, yet. It is in the planning stages for FY 2017. b. This program would allow customers to register their smart thermostats with DME. c. Participants allows DME to remotely decrease their consumption through these smart devices, if and when there is a demand for it. (This is voluntary and participants can accept or decline thermostat control at the time of deployment.) Question and Answer Memorandum September 13, 2016 Page 7 of 7 10. budgetary data along with the display of key strategic performance dashboards. City staff will update the City Council on these efforts during the budget work session on September 13, 2016. 11. Please provide information on how merit increases are handled for employees that are above their competitive pay range. During our discussions with Council concerning the compensation plan, we identified some employees below and above the competitive range. However, these employees were still within the proposed salary ranges. If an employee is above the competitive range, it are over the competitive range, including but not limited to, longevity, specialty of the position, or because the value of the position in our organization is greater than the value in other organizations. The employees above the competitive range will not receive any adjustment as a result of implementing the new pay structure; however, they will still be eligible for merit increases. Merit increases are a separate pay component used to recognize t the maximum of the salary range, merit increases will be given as a lump sum increase, not a base pay increase. 12. Below is an additional citizen comment submitted to the City Council through the online budget submission portal. a. Jane Piper-Lunt, 207 North Elm, Denton, Tx, 76201. Submitted August 27, 2016. Contact: janepiperlunt@outlook.com ,000! I hope hiring cutting the waste across the board in all nonessential departments and especially DME. This IS NOT YOUR MONEY, stop the waste. ATTACHMENT 4 BACK General Fund Travel and Training FY2014-15 FY2014-15 FY2015-16 FY2015-16 FY2016-17 BudgetActualsBudgetYTDProposed City Council 2 6,750 4 8,068 3 0,670 2 5,573 3 0,670 City Manager's Office 3 6,125 3 7,192 3 7,125 4 4,682 3 7,125 PCO 1 5,867 1 4,088 1 5,867 9 ,170 1 5,867 Legal 7 ,256 1 4,849 9 ,000 1 0,298 1 5,000 Municipal Judge 2 ,150 1 ,215 2 ,150 1 ,100 1 ,433 Human Resources 7 ,168 6 ,936 7 ,168 2 ,493 7 ,168 Finance 3 3,470 1 6,134 3 7,070 1 8,900 3 5,060 Municipal Court 3 ,000 2 ,555 3 ,000 3 ,183 4 ,000 Economic Development 2 4,912 2 9,118 2 4,912 1 8,142 2 4,912 Planning & Development 1 6,700 1 2,184 1 6,700 2 5,534 1 6,700 Human Services 1 ,786 3 ,179 1 ,786 1 ,786 1 ,786 Building Inspections 2 8,400 2 0,941 3 4,600 2 6,165 3 4,000 Gas Well Review 4 ,400 5 ,797 4 ,450 - 4 ,450 Facilities Management 6 ,200 1 5,068 7 ,700 7 ,656 1 1,200 Libraries 2 5,983 1 6,937 2 1,983 1 7,076 2 3,483 Police 2 0,750 8 ,982 2 1,000 2 0,502 3 1,600 Fire 2 4,500 2 7,339 3 7,000 2 8,108 4 5,500 Community Improvement 1 0,220 6 ,426 1 0,220 6 ,309 1 0,220 Transportation 1 1,200 4 ,559 1 1,200 4 ,090 1 1,200 Traffic Control 2 ,000 7 6 3 ,000 - 2 ,000 Parks 1 9,530 1 7,389 2 3,215 1 6,828 3 3,363 Total$ 3 28,367$ 3 09,030$ 3 59,816$ 2 87,595$ 3 96,737 ATTACHMENT 5 BACK Airport Enterprise Fund Report August 2016 The Airport Enterprise Fund (AEF) is currently in the sixth year of operation. The AEF was created in 2010 in conformance with the 2010 Business Plan as adopted by City Council Ordinance 2010- 294. The 2010 Business Plan identified four (4) major initiatives for Airport operations, including: Airport Branding; Enterprise Fund Transition; Hangar/Rental Property Development; and Long- Term Development. All of the major initiatives have been achieved with ongoing operations at Denton Enterprise Airport, with the exception of Hangar/Rental Property Improvements which could be leased to generate additional revenue over the lease of undeveloped land. Several minor investments in improvement were implemented and one major investment in Airport owned and operated T-Hangars will soon be completed. These investments in property improvements were made in conformance with Investment Guidelines presented to the City Council by Staff. Staff was directed by Council to use the Investment Guidelines as a minimum measure to evaluate projects designed to generate revenue which would transition the Airport into financial sustainability as gas well royalty revenue diminishes over the first ten (10) years of AEF operation. An AEF Financial Pro Forma first projected in 2010 and revised in 2014 indicated the requirement to generate approximately one million dollars ($1 million) in annual revenue from lease of improved property and new revenue from commissions on fuel sales. In Fiscal 2014/15, a major change in revenue generating development plans had to be considered to accommodate State -to- Certificates of Obligation (COs). The only funding options for these developments were either cash or voter approved General Obligation Bonds. A further definition of this policy in 2015 resulted in an interpretation that COs could not be used for property improvements to be leased to tenants unless certain private activity requirements, set by the Internal Revenue Service (IRS), were met. ATTACHMENT 6 AIRPORTFUND FiveYearForecast(inmillions) Proposed 201516201617201718201819201920202021 EstimateProposedProposedProposedProposedProposed BEGINNINGFUNDBALANCE$3.40$2.45$2.37$2.15$1.74$1.16 REVENUES$1.22$1.47$1.48$1.39$1.33$1.28 TOTALAVAILABLERESOURCES$4.62$3.92$3.85$3.54$3.07$2.44 OPERATINGEXPENDITURES$1.63$1.55$1.70$1.80$1.91$2.03 RETURNONINVESTMENT$0.06 DEBTSERVICE$0.48 TOTALEXPENDITURES$2.17$1.55$1.70$1.80$1.91$2.03 NETINCOME(LOSS)($0.95)($0.08)($0.22)($0.41)($0.58)($0.75) ENDINGFUNDBALANCE$2.45$2.37$2.15$1.74$1.16$0.41 ATTACHMENT 6 BACK AIRPORTFUND FiveYearForecast(inmillions) StatusQuo 201516201617201718201819201920202021 EstimateProposedProposedProposedProposedProposed BEGINNINGFUNDBALANCE$3.40$2.45$1.84$1.10($0.11)($1.47) REVENUES$1.22$1.47$1.48$1.39$1.33$1.28 TOTALAVAILABLERESOURCES$4.62$3.92$3.32$2.49$1.22($0.19) OPERATINGEXPENDITURES$1.63$1.55$1.70$1.80$1.91$2.03 RETURNONINVESTMENT$0.06$0.06$0.06$0.06$0.06$0.06 DEBTSERVICE$0.48$0.47$0.46$0.74$0.72$0.81 TOTALEXPENDITURES$2.17$2.08$2.22$2.60$2.69$2.90 NETINCOME(LOSS)($0.95)($0.61)($0.74)($1.21)($1.36)($1.62) ENDINGFUNDBALANCE$2.45$1.84$1.10($0.11)($1.47)($3.09) City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-973,Version:1 Agenda Information Sheet SUBJECT DeliberationsRegardingCertainPublicPowerUtilities:CompetitiveMatters-UnderTexasGovernmentCode Section 551.086. ReceiveapresentationfromDentonMunicipalElectricstaff(“DME”)regardingpublicpowercompetitiveand financialmatterspertainingtoplans,strategies,opportunities,anddevelopmentsforgenerationimprovements totheDMEsystem;discussanddeliberatestrategiesregardingsame;discussanddeliberateopportunitiesand strategiesfortheCitytoacquirepurchasedpowerandenterintoagreementsregardingthesame,inorderto meet its future energy needs. Discuss, deliberate and provide Staff with direction. \[ID 16-1031 & 16-1032\] City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1115,Version:1 Agenda Information Sheet SUBJECT DeliberationsRegardingCertainPublicPowerUtilities:CompetitiveMatters-UnderTexasGovernmentCode Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071. ReceiveapresentationfromstaffregardingpublicpowercompetitiveandfinancialmattersrelatedtotheCity’s participationin,andtheoveralloperationalandfinancialaspectsof,theTexasMunicipalPowerAgency; discussanddeliberatestrategiesregardingsame;discuss,deliberateandprovidestaffwithdirection. Consultation,discussion,deliberation,andreceiptofinformationfromtheCity’sattorneysinvolvinglegal mattersrelatingtopublicpowercompetitiveandfinancialmattersrelatedtotheCity’sparticipationin,andthe overalloperationalandfinancialaspectsof,theTexasMunicipalPowerAgency,andtoprovidetheCity Attorneyswithdirection,whereapublicdiscussionoftheselegalmatterswouldclearlyconflictwiththeduty oftheCity’sattorneystotheCityofDentonandtheDentonCityCouncilundertheTexasDisciplinaryRules of Professional Conduct of the State Bar of Texas. \[ID 16-1114\] City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1117,Version:1 Agenda Information Sheet SUBJECT DeliberationsregardingRealProperty-UnderTexasGovernmentCodeSection511.072;Consultationwith Attorneys - Under Texas Government Code Section 551.071. Receiveinformationfromstaff,discuss,deliberate,andprovidestaffwithdirectionregardingthepotential acquisitionofrealpropertyinterestsgenerallylocatedin(i)theGibsonMyersSurvey,AbstractNo.843,the Johnson,Green,Myers,andBrummellSurvey,AbstractNo.1699,theMosesH.DavisSurvey,AbstractNo. 377,andtheWilliamWilburnSurvey,AbstractNo.1419,CityofDenton,DentonCounty,Texas,forthe possibleconstructionofanelectricgenerationfacility,and(ii)theWilliamWilburnSurvey,AbstractNo.1419, CityofDenton,DentonCounty,Texas,fortheWestParallelRunwayProjectforDentonEnterpriseAirport wheredeliberationofthepotentialacquisitionoftheserealpropertyinterestsinanopenmeetingwouldhavea detrimentaleffectonthepositionofagovernmentalbodyinnegotiationswithathirdparty.Consultationwith theCity’sattorney’sregardinglegalissuesassociatedwiththeacquisitionoftherealpropertyinterests describedabovewhereapublicdiscussionoftheselegalmatterswouldconflictwiththedutyoftheCity’s attorneystotheCityofDentonandtheDentonCityCouncilundertheTexasDisciplinaryRulesofProfessional ConductoftheStateBarofTexas,orwouldjeopardizetheCity’slegalpositioninanyadministrative proceeding or potential litigation. \[ID 16-1162\] City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1192,Version:1 Agenda Information Sheet SUBJECT DeliberationsRegardingCertainPublicPowerUtilities:CompetitiveMatters---UnderTexasGovernment Code, Section 551.086. Receivecompetitivepublicpowerinformationandcompetitivefinancialinformationfromstaffregardingan amendmenttotheoperatingbudgetforDentonMunicipalElectric(“DME”)forFY2015-2016,including withoutlimitation,revenues,expenses,andcommodityvolumes;anddiscuss,deliberate,providestaffwith direction regarding such matters. \[ID 16-1213\] City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1057,Version:1 Agenda Information Sheet SUBJECT Certain Public Power Utilities: Competitive Matters --- Under Texas Government Code, Section 551.086. Receivecompetitivepublicpowercompetitiveinformationandfinancialinformationfromstaffregardingthe proposedFY2016-2017operatingbudgetforDentonMunicipalElectric(“DME”)includingwithout limitation,proposedratesforDMEforFY2016-2017,expectedrevenues,expenses,commodityvolumes,and financial commitments of DME; discuss, deliberate and provide staff with direction. City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1088,Version:1 AGENDA INFORMATION SHEET DEPARTMENT:Materials Management ACM:Bryan Langley AGENDA DATE:September 20, 2016 SUBJECT ConsideradoptionofanordinanceoftheCityofDenton,TexasauthorizingtheCityManagertoexecutea ThirdSupplementtoaProfessionalServicesAgreementbyandbetweentheCityofDenton,Texasandthelaw firmofColeSchotz,P.C.,Dallas,Texasforlegalservicesrelatingtotransactionalandregulatorywork pertainingtotheTexasMunicipalPowerAgency;providingforadditionalexpenditureagencyofnot-to-exceed $400,000;providinganeffectivedate.(File5380intheadditionalamountnot-to-exceed$400,000,aggregating a total not-to-exceed $799,500). FILE INFORMATION AProfessionalLegalServicesAgreementwithColeSchotz,P.C.wasapprovedonOctober12,2013inthe amountof$75,000forlegalservicesregardingoperational,transitional,transactional,andrelatedlegalwork relatingtotheTexasMunicipalPowerAgency.AFirstSupplementintheamountof$125,000wasapproved byCouncilonNovember18,2014.OnMarch3,2016,achangeorderintheamountof$49,500wasapproved bythePurchasingManagerincreasingthetotalamountoftheengagementto$249,500.OnJune7,2016,a SecondSupplementwasapprovedintheamountof$150,000.Adescriptionoftheservicestobeprovided under the Third Supplement is included in Exhibit 3. InaccordancewithprovisionsofTexasLocalGovernmentCodeChapter252.022,theprocurementof professionalservicesmaybeexemptedfromcompetition.CitystaffisrecommendingapprovaloftheThird SupplementbaseduponthedetailedqualificationscriteriaofColeSchotz,P.C.andthecontinuityofexisting services. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) OnSeptember12,2016,thePublicUtilitiesBoardwillconsiderapprovaltoforwardthisitemtotheCity Council for consideration. RECOMMENDATION ApproveaThirdSupplementtotheProfessionalServicesAgreementwithColeSchotz,P.C.intheamountof $400,000 for a total not-to-exceed amount of $799,500). City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1088,Version:1 PRINCIPAL PLACE OF BUSINESS Cole Schotz, P.C. Dallas, TX ESTIMATED SCHEDULE OF PROJECT TheservicestobeperformedwillbeginimmediatelyuponCouncilapproval.Theagreementwillremainin effect for the period which may be reasonably required for completion of the project. FISCAL INFORMATION ThelegalserviceswillbefundedfromtheElectricOperatingFundaccount600001.7854.9210A.Alinewillbe added to Purchase Order 165328 upon Council approval. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:2.3 Promote superior utility services and facilities EXHIBITS Exhibit 1: Original Agreement and Supplements Exhibit 2: Ordinance Exhibit 3: Third Supplement Respectfully submitted: Chuck Springer, 349-8260 Director of Finance For information concerning this acquisition, contact: Phil Williams at 349-8487. City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 2 EXHIBIT 2 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1126,Version:1 AGENDA INFORMATION SHEET DEPARTMENT:Materials Management ACM:Bryan Langley AGENDA DATE:September 13, 2016 SUBJECT Consideradoptionofanordinanceacceptingcompetitiveproposalsandawardingacontractforprofessional servicesincludingengineering,design,andcustomaryconstructionservicesforthedesign-buildofthe proposedDentonCompressedNaturalGasFuelingStationProject;providingfortheexpenditureoffunds therefore;providinganeffectivedate(RFQ6016-awardedtoZeitEnergyLLCinthenot-to-exceedamountof $2,682,445). The Public Utilities Board recommends approval (5-0). RFP INFORMATION TheCitystaffhasresearchedthepotentialbenefitsofconvertingaportionoftheSolidWasteandRecycling Department’scollectionfleettocompressednaturalgas(CNG)fueledenginesandpresentedthefindingsfor thisfuelingoptiontothePublicUtilitiesBoardandtheCityCouncilinOctober,2012andNovember,2012, respectively.TheCityCouncilapprovedthetransitiontoCNGfuelfortherefusecollectionfleetbasedonits reducedemissionsandcostsavings.Comparedtodieselengines,theCNGengineshaveshownapollutant reductioninNitrousOxides(NO),SulfurOxides(SO),VolatileOrganicCompounds(VOC)andother xx GreenhouseGases(GHG).ThefuelcostsavingsreflectedinourFY2017budgetwillbe approximately$155,000.ThePublicUtilitiesBoardandtheCityCouncilbothhaveapprovedthepurchaseof CNGfueledrefusetrucksinFY2013,FY2014,FY2015andFY2016.TheDepartmenthasbeenusingamobile fuelingcompanytoprovideCNGfuelinguntilapermanentCNGfuelingsystemcanbeconstructed.The DepartmentisexploringoptionstoprovideaportionofthenaturalgasfuelforourCNGtrucksfromthe methane gas generated from the City’s municipal solid waste landfill-provided the option is legally viable.. TheCityofDentonissuedRequestforQualifications#6016toobtainproposalsfromqualifiedfirmstodesign andbuildapublicCompressedNaturalGas(CNG)facilitytobelocatedattheintersectionofMayhillRoadand SpencerRoad.Thiswillbeadesign-buildcontractfortheconstructionofaCNGfuelingstationandan extensionoftheAtmosEnergynaturalgastransmissionlinefromthevicinityof1001S.MayhillRoadsouthto theCNGfuelingstation.ThefuelingstationwillbelocatedatthesamesiteastheCity’sexistingalternative fuelsfuelingstation.Oncethenewfuelingdispensersareplacedinservice,thealternativefuelsavailableatthe City’s station will be biodiesel, E85 ethanol, and compressed natural gas. TheSolidWaste&RecyclingDepartmentiscurrentlyoperatingeighteen(18)CNGfueledcollectiontrucks ontheCity’sdailycollectionroutes.TheSolidWasteDepartmentexpectstoprocureadditionalCNGfueled trucks during future fiscal years. City of DentonPage 1 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1126,Version:1 TheDepartmenthasreceiveda$600,000grantfromtheTexasCommissiononEnvironmentalQuality (TCEQ)forthepurchaseofCNGfuelingequipment.ThegrantreducestheCity’scostfortheproject, providinganetbudgetedcosttotheDepartmentof$2,082,445.TheTCEQCleanTexasTriangleand AlternativeFuelingFacilitiesProgramwillprovideforthepublicaccesstoCNGfuelatthisstationby providingthenecessaryinfrastructureinthisareatoincreasetheuseofavehiclefuelthatwillreduce emissions.ThePublicUtilitiesBoardAgendaInformationSheetprovidesadditionalbackgroundinformation regarding this item (Exhibit 1). RequestsforQualificationsfordesign-buildoftheproposedDentonCompressedNaturalGasFuelingStation Projectweresentto699prospectivesuppliers.Inaddition,specificationswereplacedontheMaterials Managementwebsiteforprospectivesupplierstodownloadandadvertisedinthelocalnewspaper.Eleven(11) proposalswerereceived.Theproposalswereevaluatedbaseduponprojectschedule,pastperformanceand experienceonprojectsofsimilarmagnitude,identificationandunderstandingofCityrequirements,and experienceandqualificationsoftherespondentandkeypersonnel.ZeitEnergyLLCwasrankedwiththe highest score and determined to be the best value for the City (Exhibit 2-Evaluation). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) October22,2012-DiscussionwiththePublicUtilityBoard(PUB)onCNGfuelingandreceiveda recommendation to move forward to City Council. November5,2012-CNGpresentationanddiscussionwiththeCityCouncil.Apositiverecommendationwas received from the City Council. BeginninginFY2013theSW&RDepartmentbeganpurchasingCNGcollectiontrucks.Currentlythe Department has 18 CNG collection trucks for use on daily routes. September 26, 2013 - RFQ # 5365 was issued for the design build of a public and private use CNG facility. Spring2014-RFQ#5365evaluationswerecompletedandstaffinitiateddiscussionswithAmericanFueling Systemstodesign,construct,andoperatethefacility.Negotiationswerediscontinuedduringthesummerof 2014 due to the City being unable to reach a mutually satisfactory contract. April15,2014-Completedtheinitialcontractwith‘UltimateCNG’toprovideinterimmobileCNGfueling services. December23,2015-IssueRFQ#6016forthedesignbuildofacompressednaturalgas(CNG)fuelingstation at the City of Denton. RFQ’s were required to be received by February 2, 2016. March-April2016-CNGevaluationcommitteemeetingsoccurred.ZeitEnergyLLCwasevaluatedasthe best firm to work with to construct the City’s public CNG fueling facility. August 22, 2016 - The Public Utilities Board (PUB) recommended approval to forward this item to the City Council for consideration. RECOMMENDATION City of DentonPage 2 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1126,Version:1 Approve a design-build contract with Zeit Energy LLC in the not-to-exceed amount of $2,682,445. PRINCIPAL PLACE OF BUSINESS Zeit Energy LLC Dallas, TX ESTIMATED SCHEDULE OF PROJECT Thepermittingandamendmentprocessisexpectedtotakeapproximately18to24months.Thisagreementwill remain in place until all required services are rendered. FISCAL INFORMATION ThedesignandconstructionoftheCNGFuelingfacilitywillbefundedfromSolidWasteCapitalFundaccount 660115595.1360.40100.TheCompressedNaturalGastransmissionlineextensionwillbefundedfromSolid WasteCapitalFundaccount660116595.1360.40100.TCEQgrantdollarswillfund$600,000ofthecost.The grantstipulatesthattheCNGfuelingstationwillbeavailableforpublicuse.ThepurchasesofCNGfuelthat are made by the public will be deposited in the Solid Waste Department operating account. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Sustainable & Environmental Stewardship Related Goal:2.3 Promote superior utility services and facilities EXHIBITS Exhibit 1: Public Utilities Board Agenda Information Sheet Exhibit 2: Evaluation and Ranking Sheet Exhibit 3: Public Utilities Board Draft Minutes Exhibit 4: Ordinance Exhibit 5: Contract Respectfully submitted: Chuck Springer, 349-8260 Director of Finance For information concerning this acquisition, contact: Vance Kemler at 349-8044. City of DentonPage 3 of 3Printed on 9/9/2016 powered by Legistar© EXHIBIT 1 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:PUB16-197,Version:1 Agenda Information Sheet DEPARTMENT:Solid Waste & Recycling Services CM/ ACM:Jon Fortune Date:August 22, 2016 SUBJECT ConsiderarecommendationfortheCityofDentontoenterintoacontractwithZeitEnergyLLC,Dallas, Texas,todesignandconstructapubliccompressednaturalgas(CNG)fuelingfacilityfortheCityofDenton,at theintersectionofMayhillRoadandSpencerRoad,andtheextensionoftheAtmosEnergyInc.naturalgas transmissionlinetothefuelingfacility,andthreeyearsofmaintenanceservice,forthebudgetedamountof $2,682,445 (RFQ 6016). BACKGROUND TheCitystaffhasresearchedandexaminedthepotentialbenefitsofconvertingaportionoftheSolidWaste andRecyclingDepartment’scollectionfleettocompressednaturalgas(CNG)fueledengines,andhas previouslypresentedanddiscussedthisfuelingopportunitywiththePublicUtilitiesBoardandtheCity Council.ThePublicUtilitiesBoardandtheCityCouncilbothrecommendedtheDepartmentpursuetheCNG opportunitybyorderingthedeliveryofCNGfueledcollectiontrucks,andbyworkingwithamobilefueling companytoprovideCNGfueling.ThePurchasingDepartmentdistributedaRequestForQualifications(RFQ 6016,December2015)toseekacompanycapableofprovidingthedesignandconstructionofapublic compressednaturalgas(CNG)fuelingfacilityinDenton,neartheintersectionofMayhillRoadandSpencer Road. TheRFQrequestedresponsesfromfirmswiththecapabilitytodesignandconstructaCNGfuelingstationper thespecificationsstatedwithintheRFQ.ElevenfirmsrespondedtotheRFQ.Theevaluationcommittee evaluated each firm’s submittal package, and scored them based upon the criteria listed below. a) Identification and understanding of the City’s requirements b) Past performance and experience on projects of this magnitude and complexity c) Experience and qualifications of the respondent and key personnel d) Schedule presented for this service TheevaluationprocessscoredeachfirmsRFQsubmittalandrankedZeitEnergy,LLCasthehighestranking and most qualified firm based on the four selection criteria. Thiswillbeadesign-buildcontractfortheconstructionofaCNGfuelingstationandanextensionofthe AtmosEnergynaturalgastransmissionlinefromthevicinityof1001S.MayhillRoadsouthtotheCNG City of DentonPage 1 of 3Printed on 8/19/2016 powered by Legistar© EXHIBIT 1 File #:PUB16-197,Version:1 fuelingstation.ThefuelingstationwillbelocatedatthesamesiteastheCity’sexistingalternativefuelsfueling station.Oncethenewfuelingdispensersareplacedinservice,thealternativefuelsavailableattheCity’s station will be biodiesel, E85 ethanol, and compressed natural gas. TheSolidWaste&RecyclingDepartmentiscurrentlyoperatingeighteenCNGfueledcollectiontrucksonthe City’sdailycollectionroutes.TheSolidWasteDepartmentexpectstoreceiveadditionalCNGfueledtrucks during future fiscal years. TheDepartmenthasreceiveda$600,000grantfromtheTCEQforthepurchaseofCNGfuelingequipment. ThegrantreducestheCity’scostfortheproject,providinganetbudgetedcosttotheDepartmentof $2,082,445.TheTCEQCleanTexasTriangleandAlternativeFuelingFacilitiesProgramwillprovideforthe publicaccesstoCNGfuelatthisstationbyprovidingthenecessaryinfrastructureinthisareatoincreasethe use of a vehicle fuel that will reduce emissions. OPTIONS The Public Utilities Board may, 1.RecommendtheCityofDentonenterintoacontractwithZeitEnergyLLCforthedesignand constructionofapubliccompressednaturalgasfuelingfacilityandtheextensionofthenaturalgas transmission line. 2.RecommendtheCityofDentonenterintoacontractwithanotherfirmtoprovidethedesignand constructionofapubliccompressednaturalgasfuelingfacilityandtheextensionofthenaturalgas transmission line. 3.RecommendtheCityofDentonnotenterintoacontractwithafirmtodesignandconstructapublic compressednaturalgasfuelingfacilityandthenaturalgastransmissionline,andreturnthe$600,000 grant to the TCEQ. RECOMMENDATION CitystaffrecommendsmovingforwardtofinalizeacontractwithZeitEnergyLLCtodesignandconstructa publicCNGfuelingfacilityandextendtheCNGtransmissionlinetotheCity’sproposedfuelingfacilitysite,at the intersection of Mayhill Road and Spencer Road. ESTIMATED SCHEDULE OF PROJECT The projected completion of project is July 2017. PRIOR ACTION/REVIEW (Council, Boards, Commissions) October22,2012-DiscussionwiththePublicUtilityBoard(PUB)onCNGfuelingandreceiveda recommendation to move forward to City Council. November5,2012-CNGpresentationanddiscussionwiththeCityCouncil.Apositiverecommendationwas received from the City Council. BeginninginFY2013theSW&RDepartmentbeganpurchasingCNGcollectiontrucks.Currentlythe Department has 18 collection trucks used on daily routes. City of DentonPage 2 of 3Printed on 8/19/2016 powered by Legistar© EXHIBIT 1 File #:PUB16-197,Version:1 September 26, 2013 - RFQ # 5365 was issued for the design build of a public and private use CNG facility. Spring2014-RFQ#5365evaluationswerecompletedandstaffinitiateddiscussionswithAmericanFueling Systemstodesign,construct,andoperatethefacility.Negotiationswerediscontinuedduringthesummerof 2014. April 15, 2014 - Completed the initial contract with ‘Ultimate CNG’ to provide mobile CNG fueling services. December23,2015-IssueRFQ#6016forthedesignbuildofacompressednaturalgas(CNG)fuelingstation at the City of Denton. RFQ’s were required to be received by February 2, 2016. March-April2016-CNGevaluationcommitteemeetingsoccurred.ZeitEnergyLLCwasevaluatedasthe best firm to work with to construct the City’s public CNG fueling facility. FISCAL INFORMATION BondfundingisavailablefortheconstructionofthepublicCNGfuelingfacilityfromSolidWaste& Recyclingjobcostaccount#660115595.1360.40100,andfortheCNGtransmissionlineextensionfrom account #660116595.1360.40100. Annual maintenance service will be funded from the operating budget. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Sustainable & Environmental Stewardship Related Goal:5.2 Improve air quality and greenhouse gas management EXHIBITS 1.City of Denton Compressed Natural Gas ( CNG) Fueling Station Technical Proposal 2.CNG Station, Line, & Maintenance Agreement Contract Price Respectfully submitted: Vance Kemler General Manager Solid Waste & Recycling Services Prepared by: S. Lebsack Development & Administrative Manager Solid Waste & Recycling Services City of DentonPage 3 of 3Printed on 8/19/2016 powered by Legistar© EXHIBIT 3 1DRAFT MINUTES 2PUBLIC UTILITIES BOARD 3Monday, August 22, 2016 9:00a.m. Service Center Training Room 4 5After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7Monday, August 22, 2016 at 9:00 a.m. in the Service Center Training Room at the City of 8Service Center, 901 A Texas Street, Denton, Texas. 9 10Present: Chair Randy Robinson, Vice Chair Susan Parker,Charles Jackson, 11Brendan Carroll, and Allen Bishop 12 13Ex Officio Members: Howard Martin, ACM Utilities 14 15Absent: Barbara Russell and Lilia Bynum 16 17OPEN MEETING 18 19CONSENT AGENDA 20 21A.PUB16-197- Consider a recommendation for the City of Denton to enter into a contract with 22Zeit Energy LLC, Dallas, Texas, to design and construct a public compressed natural gas 23(CNG) fueling facility for the City of Denton, at the intersection of Mayhill Road and 24Spencer Road, and the extension of the Atmos Energy Inc. natural gas transmission line to 25the fueling facility, and three years of maintenance service, for the budgeted amount of 26$2,682,445 (RFQ 6016). 27 28Board Member Jackson motioned to approve item A. There was a second by Board 29Member Parker. Vote 5-0 approved. 30 31Adjournment 11:11a.m. EXHIBIT 4 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR PROFESSIONAL SERVICES INCLUDING ENGINEERING, DESIGN, AND CUSTOMARY CONSTRUCTION SERVICES FOR THE DESIGN-BUILD OF THE PROPOSED DENTON COMPRESSED NATURAL GAS FUELING STATION PROJECT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; PROVIDING AN EFFECTIVE DATE (RFQ 6016AWARDED TO ZEIT ENERGY LLC IN THE NOT-TO-EXCEED AMOUNT OF $2,682,445). WHEREAS, The professional services provider (the is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, The fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is hereby authorized to enter into a professional service contract with Zeit Energy LLC, to provide professional engineering, design and customary construction services for the proposed Denton Compressed Natural Gas fueling Station project, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager is authorized to expend funds as required by the attached contract. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under RFQ 6016to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION 5.This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2016. EXHIBIT 4 ______________________________ CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:_________________________________ EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 EXHIBIT 5 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1130,Version:1 Agenda Information Sheet DEPARTMENT:Engineering Services ACM:Jon Fortune Date:September 13, 2016 SUBJECT ConsideradoptionofanordinanceapprovingaPipelineCrossingcontractbyandbetweentheCityofDenton, TexasandtheKansasCitySouthernRailwayCompanyrelatingtothelocationofawaterpipelinewithin railroadright-of-way,locatedatmilepostD-105.10,AllianceSubdivisionwithintheCountyandCityof DentonTexas;terminatingpriorlicense;andprovidinganeffectivedate.\[PipelineCrossingAgreementfor12- inch water line: 84 Lumber development\] BACKGROUND 84Lumberisintheprocessofconstructingarailroadspurandadditionalbuildingsontheirpropertyat3147 JimChristalRoad.Instaff’sreviewoftheproposedrailroadspurimprovementsinrelationtoimpacton existingutilities,itwasdeterminedthatitwouldbenecessarytoinstalla12-inchwaterlineanddecommission theexisting6-inchwaterlineinthatlocation.Theexisting6-inchwaterlineisundersizedanddoesnotmeetthe protective steel casing sleeve requirements to support rail traffic. 84Lumberhasagreedtoconstructthe12-inchwaterlineacrossthespurareaandrailroadproperty.Inorderfor the12-inchwaterlinetobeconstructed,acrossingagreementwithKansasCitySouthernRailwayCompanyis necessary.84Lumberhaspaidallapplicationfeesandhasprovidedallinsurancerequirementsrequiredby KansasCitySouthernRailwayCompany.Uponcompletionandacceptanceofthewaterimprovementsbythe City, ownership of those improvements will transfer to the City of Denton. OPTIONS 1.Recommend approval. 2.Do not recommend approval. RECOMMENDATION Staff recommends approval of the Ordinance. ESTIMATED SCHEDULE OF PROJECT Summer of2016. PRIOR ACTION/REVIEW (Council, Boards, Commissions) City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1130,Version:1 The Development Review Committee recommended approval on May 16, 2016. Public Utilities Board consideration on September 12, 2016. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Public Infrastructure Related Goal:3.4 Encourage development, redevelopment, recruitment, and retention EXHIBITS 1Location Map 2Site Map 3Ordinance Respectfully submitted: John T. Davis, PE Director of Engineering Services Prepared by: Mark A. Laird Right-of-Way Agent Real Estate and Capital Support City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© LOCATION MAP CORDELL Pipeline Crossing area Downtown CONGRESS Denton SYCAMORE MAPLE FANNIN 84 Lumber: Kansas City Southern Railway Company Pipeline Crossing Agreement µ 1,80090001,8003,6005,400 Exhibit 1 to the AIS Feet EXHIBIT A EXHIBIT B City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1132,Version:1 AGENDA INFORMATION SHEET DEPARTMENT:Materials Management ACM:Bryan Langley AGENDA DATE:September 13, 2016 SUBJECT ConsideradoptionofanordinanceoftheCityofDenton,TexasauthorizingtheCityManagertoexecutea ProfessionalLegalServicesAgreementwiththelawfirmofBakerMoranDoggettMa&DobbsLLP,Plano, TexasforprofessionallegalservicesregardingcondemnationmattersrelatedtotheMayhillRoadWidening andImprovementsProject;providingfortheexpenditureoffundstherefor;andprovidinganeffectivedate (File 5326-awarded to Baker Moran Doggett Ma & Dobbs LLP in the not-to-exceed amount of $700,000). BACKGROUND TheCityofDentonisintheprocessofprosecutingoutstandingcondemnationcasesinvolvingthelandrights soughtfortheMayhillRoadWideningandImprovementsproject.Thegeographicallimitsoftheprojectare U.S.Highway380southtoInterstateHighway35East(the“Project”).Ofthe44landtractsaffectedbythe Project,theamountofjustcompensationremainstobedeterminedregardingtwo(2)landowners-551Mayhill JointVentureandRTS&M,LLC.SpecialCommissioner’shearingswerecarriedoutforbothlandowners, monetaryawardsweredepositedintheregistryoftheCourtforeach,andtheCitynowhaspossessionofthe necessarylandrightstracts.TherespectivelandownershavefiledobjectionswiththeCourtseekingjurytrails for determinations of damages, which are tentatively scheduled for the first quarter of 2017. OnApril2,2013,thefirmofBurford&RyburnwasengagedbytheCitytoperformtheeminentdomain litigationassociatedwiththeProject(Exhibit1).ScottDoggettandPrestonDobbs,partnersofthatfirm, providedthemajorityoftheoutsidecounselworknecessarytoachievesettlementsacrosstheProject,as needed. InAprilof2015,Mr.DoggettandMr.DobbsleftthefirmofBurford&Ryburnandarenowbothemployed with,andpartnersof,BakerMoranDoggettMa&DobbsLLP,Plano,Texas.Atclientelection,itwasdesired thatScottDoggettandPrestonDobbscontinuetorepresenttheCity,andbythatelection,alloutstandingcases relatingtotheProjectweretransferredtothatfirm,inclusiveofthe551MayhillJointVentureandRTS&M, LLCmatters.Thecontractamountfortheoriginalengagementforoutsidecounsellegalserviceswas estimatedat$718,000.ThisamounthaswasexhaustedinMay2016.Attheoutsetofthisproject,thenot-to- exceedamountwasestablishedbyconservativeanalysis,toberevisitedifcircumstanceswarranted,especially if the prosecution of civil trials were to come into play. TheongoingprosecutionofthependingMayhillRoadlawsuitswithintheciviltrialphaseforeachhasrequired City of DentonPage 1 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1132,Version:1 theaccrualofadditionallegalexpenses.Thoselegalexpensesbeingapproximately$150,000beyondthe originalcontractamounttodate.Ofthoseadditionallegalexpenses,approximately$50,000isattributedtothe preparation and analysis by expert witnesses for the purposes of the forthcoming trials. RECOMMENDATION StaffrecommendstheawardofaProfessionalLegalServicesagreementwithBakerMoranDoggettMa& DobbsLLP,Plano,Texasinordertocarryoutthelegalservices,inclusiveofexperts,necessarytocompletethe prosecution of the outstanding litigation regarding 551 Mayhill Joint Venture and RTS & M, LLC. ESTIMATED SCHEDULE OF PROJECT The bid letting for the Mayhill Road Widening and Improvement project is tentatively slated for October 2016. PRIOR ACTION/REVIEW (Council, Boards, Commissions) TheoriginalengagementletterforlegalserviceswithBurfordandRyburnintheamountof$718,000was approved on April 2, 2013-Ordinance 2013-088. FISCAL INFORMATION TheoverallMayhillRoadWideningandImprovementsprojectisbeingfundedwithacombinationofRegional TollRevenue(RTR)funds,DentonCountyTransportationRoadImprovementProgram(TRIP‘08)fundsand CityofDentonlocalmatchfunds.Litigationcostsassociatedwiththenecessarylandrightsbeingsoughtwill be funded through a combination of these funding sources. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Public Infrastructure Related Goal:2.1 Optimize resources to improve quality of City Roadways EXHIBITS Exhibit 1: Original Engagement Letter Exhibit 2: Ordinance Exhibit 3: Contract Respectfully submitted: Chuck Springer, 349-8260 Director of Finance For information concerning this acquisition, contact: Paul Williamson at 349-8921. City of DentonPage 2 of 3Printed on 9/9/2016 powered by Legistar© EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL LEGAL SERVICES AGREEMENT WITH THE LAW FIRM OF BAKER MORAN DOGGETT MA & DOBBS LLP, PLANO, TEXAS FOR PROFESSIONAL LEGAL SERVICES REGARDING CONDEMNATION MATTERS RELATED TO THE MAYHILL ROAD WIDENING AND IMPROVEMENTS PROJECT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5326-AWARDED TO BAKER MORAN DOGGETT MA & DOBBS LLP IN THE NOT-TO- EXCEED AMOUNT OF $700,000). WHEREAS, is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, The fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional ession and such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is hereby authorized to enter into a professional service contract with Baker Moran Doggett Ma & Dobbs LLP, to provide professional legal services regarding pending litigation related to Cause No. PR-2014-00492, City of Denton, Texas v. RTS&M, LLC and Texas Capital Bank, NA, and Cause No. PR-2014-00309, City of Denton v. 551 Mayhill Joint Venture and American National Bank, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager is authorized to expend funds as required by the attached contract. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under the File 5326 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION 5.This ordinance shall become effective immediately upon its passage and approval. EXHIBIT 2 PASSED AND APPROVED this the day of , 2016. ______________________________ CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:_________________________________ EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1149,Version:1 Agenda Information Sheet DEPARTMENT:Development Services CM/ ACM:Jon Fortune Date:September 13, 2016 SUBJECT ConsiderapprovalofaresolutionoftheCityofDentondeclaringthecompletionoftheworkoftheAdHoc City Council Historic Landmark Committee and dissolving the same; and declaring an effective date. BACKGROUND ThiscommitteewascreatedbyaresolutionofCityCouncil,ResolutionNo.R2014-029.OnMay10,2016,the AdHocCityCouncilHistoricLandmarkCommitteemet;duringthismeetingthecommitteeagreedtoformally dissolve the committee having met the objectives for which it was established. OPTIONS 1.Proceed with the dissolution of the Ad Hoc City Council Historic Landmark Committee. 2.Refrain from dissolving the Ad Hoc City Council Historic Landmark Committee. 3.Postpone action on the dissolution of the Ad Hoc City Council Historic Landmark Committee EXHIBITS 1.July 29, 2014, Agenda Information Sheet 2.Draft Resolution Respectfully prepared and submitted by: Roman McAllen Historic Preservation Officer City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 14-0390,Version:1 Agenda Information Sheet DEPARTMENT:Legal CM/ ACM:Anita Burgess Date:July 29, 2014 SUBJECT HoldadiscussionandprovidestaffwithdirectionregardingthecreationofanadhocCityCouncilCommitteeto interfacewiththeHistoricLandmarkCommissionandreviewtheoperations,procedures,powers,duties,policiesand regulations related to Historic Landmark Preservation and Historic Districts in the City of Denton, Texas. BACKGROUND OnApril4,duringtheHistoricLandmarkCommission(HLC)worksessionCouncilmanRodenpresenteda proposaltocreateaCouncilCommitteetoexplorepoliciesandvisionforHistoricPreservationintheCity.The CouncilCommitteewouldopenlinesofcommunicationsbetweentheHLCandCouncilandcreate collaboration on how to best address HLC issues. Duringtheworksession,theHLCpresentedseveralpoliciestheybelievedwarrantedconsiderationfor discussionbytheCouncilCommittee.Thetopicsproposedfordiscussionincluded:aestheticissuesassociated withtheuseofSolarEnergywithinHistoricDistricts;creationofadowntownoverlaydistrict;adoptelements ofstrategicplanningandestablishannualgoalsaspartofthePreservationPlanupdate;increaseinventoryof landmarkandhistoricstructures;developeconomicincentivesforhistoricpreservation;andbalancinghistoric preservation interests with Economic Development. CouncilmanRodenalsodiscussedthepotentialuseofacitizencommitteeofstakeholders,asneeded,onthe implementationofHistoricPreservationinitiatives.Thecitizencommitteecouldbecreatedtoparticipateona specificissueorseveralissues.Thecitizen’scommitteewouldalsobepartofpubliceducationcampaignto better communicate historic preservation initiatives to the community. TheHLCexpressedsomeconcernwiththecreationofanadditionalCouncilCommitteeonHistoric Preservationdespitetheidentifiedbenefits.Theconcernarisesfromthebeliefthatthecreationofanother CouncilCommitteeaddsanotherlayerofgovernancebetweentheHLCandCityCouncilandmayincreasethe potentialforconflicts.Moreover,theuseofacitizenscommitteemayposeproblemsduetotheirpotentiallack of knowledge of historic preservation initiatives and local efforts to expand historic preservation. OnApril15,2014,theCityCouncilwasbriefedduringworksessiononseveralitems(Exhibit1).Overthe pastyear,theHLChasdealtwithbroadissuesthatoverlapwithcitywidepolicies,goals,andobjectives.The HLChasexpressedtheirdesiretoexpandtheirroleinthereviewofpropertiesonthedowntownsquarewhich City of DentonPage 1 of 3Printed on 7/25/2014 powered by Legistar© File #:ID 14-0390,Version:1 areapartoftheNationalRegistryofHistoricPlaces(Exhibit2)andnotalocaldesignation.Thiswasalso communicatedinanInformalStaffReporttotheCityCouncilinJune2013(Exhibit3).Subsequently,theHLC hasbeendevelopingforimplementationanhistoricoverlaydistrictforthedowntowntoidentifyhistoric properties and historic elements of the downtown that should be preserved. Morerecently,theHLCreviewedarequestfortheinstallationofsolarpanelsonhistoricstructuresthatwas subsequentlydenied.ThebasisforthedenialwasHLCconcernsaboutthelocationofthesolarpanelonthe sectionoftheroofvisiblefrompublicview.Inaddition,theHLCwasconcernedthatthereareinadequate designguidelinesforinstallationofsolarpanelsinhistoricdesignatedareasoftheCityandapprovalofthe requestcouldsetprecedentwithnoestablishedguidelines.Staffhasbeenmeetingwiththeneighborhoodto developpoliciesforsolarpanelsthatwilldevelopintoaDDCamendment.Thisissuehighlightstheneedforan updatetotheHLCOrdinanceastheCityStrategicPlannotesthepreservationandmaintenanceofhistoric structuresandcultureinDentonasagoal,asdoestheCitySustainabilityPlanthatnotestoimprovetheenergy efficiencyofexistinghomesandbuildingsasagoal.ThecreationofaCouncilCommitteetoexplorepolicies andvisionforHistoricPreservationwouldprovidepolicyguidanceandleadershiponthenotedsubjectsto align these outcomes with citywide goals. TheHistoricLandmarkCommission(HLC)wascreatedinApril1980,byOrdinanceNo.80-030(Exhibit4)to, amongotherthings,protect,enhanceandperpetuatehistoriclandmarkswhichrepresentorreflectdistinctive andimportantelementsoftheCity’sandstate’sarchitectural,archaeological,cultural,social,economic,ethnic andpoliticalhistoryandtodevelopappropriatesettingsforsuchplaces.Theenablinglanguagealsoincludes thecompositionoftheninemembercommitteeandstatesthattheHLCshallincludeatleastonerepresentative from each of the following organizations or professions: County Historical Commission The County Bar Association A Certified Public Accountant A registered Accountant An owner of real property in the City ForsometimethestructureoftheHLChasnotmetthisrequirement.Asstaffhascontinuedtheirinteraction withtheHLCithasbecomeapparentthatupdatesandamendmentstotheDentonDevelopmentCode(DDC) arewarrantedtoensurethattheDDCalignswiththegoalsandobjectivesoftheHLCandthevisionand direction of the City Council. OPTIONS 1.Move forward with the creation of a City Council Committee on Historic Preservation. 2.Refrain from creating a City Council Committee on Historic Preservations. 3.Postpone action on the creation of a City Council Committee on Historic Preservation. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 15, 2014 - City Council Work Session EXHIBITS 1.April 15, 2014, Agenda Information Sheet City of DentonPage 2 of 3Printed on 7/25/2014 powered by Legistar© File #:ID 14-0390,Version:1 2.Downtown Square National Registry of Historic Places 3.June 2013 - Informal Staff Report 4.Ordinance No. 80-030 Prepared by and respectfully submitted: Brian Lockley Director, Planning and Development City of DentonPage 3 of 3Printed on 7/25/2014 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1162,Version:1 Agenda Information Sheet DEPARTMENT:Denton Municipal Electric CM/ ACM:Howard Martin Date:September 13, 2016 SUBJECT Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute a real estate sales contract, between the City of Denton, Texas, a Texas Home-Rule Municipal Corporation, as purchaser, and Eagle Farms, Inc., a Texas Corporation, and John Porter Auto Sales, Inc., a Texas Corporation, (Collectively “Owner”), as seller, to acquire fee title to a 340.469 acre tract situated in the Gibson Myers Survey, Abstract No. 843, The Johnson, Green, Myers, and Brummell Survey, Abstract No. 1699, the Moses H. Davis Survey, Abstract No. 377, and the William Wilburn Survey, Abstract No. 1419, located in the City of Denton, Denton County, Texas, generally south of Jim Christal Road, east of Hickory Court, and north of Tom Cole Road, and more particularly described in Exhibit “A” (“Property Interest”) for the purchase price of eleven million five hundred thousand dollars and no cents ($11,500,000.00), and other consideration, as prescribed in the Contract of Sale (the “Contract”); authorizing the expenditure of funds; and providing an effective date. BACKGROUND Inanefforttoaddmorerenewablegenerationtoitsportfolio,DentonMunicipalElectric’s(DME)has proposedtheRenewableDentonPlan,whichsetsagoalof70%greenenergyby2019.Akeycomponentof theplanisaproposedquick-startgenerationfacilitywhichwillallowDMEtomeetthegoalsoftheRDPand willprovideameasureofreliabilityandflexibilityaroundthe70%renewableportionwithoutngtoincrease ratestocustomers.ThisfacilitywillallowDMEtodispatchgenerationattimeswhentherenewableenergyis notavailableandwhenmarketpricedenergyishigh.Thisproposedsitewillhousethequick-startgeneration facility and the corresponding substation. ThispropertyissituatedadjacenttotheDentonMunicipalAirportandaportionofitisneededfortheairport’s parallel runway project; additionally, another portion will used as part of the future Loop 288 expansion. OPTIONS 1.Approve adoption of the ordinance authorizing the purchase contract. 2.Do not approve adoption of the ordinance and provide staff with further direction. RECOMMENDATION DME staff recommends approving adoption of the ordinance. ESTIMATED SCHEDULE OF PROJECT Depending on other variables, such as permitting and weather, DME staff estimates work on the site to begin in City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1162,Version:1 late 2016, with anticipated completion of the quick-start generation facility by summer 2018. PRIOR ACTION/REVIEW (Council, Boards, Commissions) 12/14/2015 - Public Utilities Board approved RDP Resolution 06/21/2016 - Council approved RDP Resolution 06/21/2016 - Council approved financing 08/08/2016 - Public Utilities Board Closed Session discussion FISCAL INFORMATION Portions of this property are planned for multiple uses, including a generation facility, a transmission/distribution facility, an airport parallel runway, and an expansion of Loop 288. Therefore, funding will ultimately be from a combination of sources: the proceeds of the Utility System Revenue Bonds, Series 2016 anticipated to close in October; Transmission Cost of Service (TCOS); airport grant funds; and City of Denton Certificates of Obligation sold for electric utility. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Public Infrastructure Related Goal:2.3 Promote superior utility services and facilities EXHIBITS 1.Ordinance and Contract Respectfully submitted: Phil Williams DME General Manager Prepared by: Smith Day Compliance Manager City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© REAL ESTATE SALES CONTRACT This REAL ESTATE SALES CONTRACT (“Contract”) is entered into by Eagle Farms, Inc., a Texas corporation, and John Porter Auto Sales, Inc., a Texas corporation, (collectively “Seller”), and City of Denton, a Texas home-rule municipal corporation (“Purchaser”). RECITALS Seller wants to sell to Purchaser and Purchaser wants to purchase from Seller all of Seller’s right, title, and interest in and to the real property described below. AGREEMENT In consideration of these recitals, the mutual covenants, agreements, and obligations stated below, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Seller and Purchaser agree as follows: ARTICLE 1 SALE AND PURCHASE 1.1. Property. Subject to the terms and conditions set forth in this Contract, Purchaser agrees to purchase from Seller, and Seller agrees to sell to Purchaser, the following described property (collectively, “Property”): (a) that certain tract of land containing approximately 340.469 acres (“Land”) located in Denton County, Texas, and more particularly described in the attached Exhibit A; (b) all rights, privileges, and appurtenances pertaining to the Land, including but not limited to all trees, timber rights and contracts for cutting timber, water rights, claims and permits, adjacent streets, and easements and rights of way; (c) all intangible property, if any, owned by Seller and pertaining to the Land or the use of it, including but not limited to all present and future use of wastewater, wastewater capacity, drainage, drainage capacity, water, water capacity, or other utility facilities directly attributable to the Land; (d) all reservations of, commitments for, and letters covering utility capacity, whether or not they are currently being used to the fullest extent available; (e) all of Seller’s right, title, and interest and estates in any land lying within the bed of any stream, river, lake, or other waterway or body of water on or crossing that portion of the Land; _____________________________________________________________________________________________ Page 1 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) (f) all of Seller’s right, title, and interest and estates in any land within any easement or right of way or under any bed of any road or highway, whether open or proposed on or crossing that portion of the Land; (g) all of Seller’s right, title, and interest and estates in any excess land, vacancies, and strips and gores of land, if any, between that portion of the Land, and any adjoining real properties belonging to third parties; and (h) access to the Land. 1.2. Reservation of Minerals to Seller; Seller’s Waiver of Surface Use. (a) “Mineral Estate” means all oil, gas, and other minerals in and under and that may be produced from the Property, any royalty under any existing or future mineral lease covering any part of the Property, executive rights (including the right to sign a mineral lease covering any part of the Property), implied rights of ingress and egress, exploration and development rights, production and drilling rights, mineral lease payments, and all related rights and benefits. The Mineral Estate does NOT include water, sand, gravel, limestone, building stone, caliche, surface shale, near-surface lignite, and iron, but DOES include the reasonable use of these surface materials for mining, drilling, exploring, operating, developing, or removing the oil, gas, and other minerals from the Property. (b) Seller reserves all of the Mineral Estate owned by Seller. (c) Notwithstanding the foregoing, Seller does not reserve and retain any rights of ingress and egress or rights to use the surface of the Property, either implied or express, for mining, drilling, exploring, operating, developing, or removing the oil, gas, and other minerals; provided however, that Seller shall have the right to remove the oil, gas, and other minerals by pooling with other lands, including, but not limited to, the right to construct any wellbore for the removal of such oil, gas or other minerals which runs underneath the surface of the Property. ARTICLE 2 PURCHASE PRICE 2.1. Purchase Price. The purchase price for the Property (“Purchase Price”) is Eleven Million Five Hundred Thousand and No/100 Dollars ($11,500,000.00), payable in cash or other immediately available funds at Closing (as defined in Section 6.1). ARTICLE 3 EARNEST MONEY 3.1. Earnest Money Deposit. Within three (3) business days after this Contract is fully executed by Seller and Purchaser, Seller will deposit with Republic Title of Texas, Inc. _____________________________________________________________________________________________ Page 2 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) Fort Worth – Commercial Division, (“Title Company”), at 500 Bailey Ave., Suite 100, Fort Worth, Texas 76107, a fully executed original counterpart of this Contract. In addition, within five (5) business days after an original executed counterpart of this Contract is deposited with the Title Company, Purchaser will deposit with the Title Company the amount of One Hundred Thousand and No/100 Dollars ($100,000.00) to ensure prompt observance of this Contract by Purchaser (“Earnest Money Deposit”). After receiving all applicable tax forms from Purchaser, the Title Company will invest the Earnest Money Deposit in a federal-government-insured interest-bearing account approved by Seller and to be held and disbursed by the Title Company strictly in accordance with the terms and provisions of this Contract. All interest accruing on the Escrow Deposit will become a part of the Escrow Deposit and will be delivered to the party entitled to receive the Escrow Deposit. If the Purchaser does not timely deposit the Escrow Deposit(s) with the Title Company, Seller will have the right to terminate this Contract. At Closing, the Escrow Deposit will be applied to the payment of the Purchase Price. 3.2. Refundability. After the Review Period (as defined in Section 5.1) expires, the Earnest Money Deposit will be nonrefundable to Purchaser, except that the Earnest Money Deposit will be promptly refunded to Purchaser and the parties will have no further obligations if this Contract is terminated under Section 8.2. ARTICLE 4 TITLE STATUS 4.1. Title Commitment and Survey. (a) Seller will deliver or have delivered to Purchaser within twenty (20) days after the Effective Date (as defined in Section 12.13) commitment for title insurance (the “Title Commitment”) prepared by the Title Company, accompanied by a copy of all recorded documents affecting the Property and listed as title exceptions in Schedule B of the Title Commitment. (b) Purchaser will cause to be prepared, within twenty (20) days after the Effective Date (as defined in Section 12.13) a Texas Society of Professional Surveyors Category 1-A, Condition III land title survey of the Property (“Survey”), prepared by Teague, Nall, & Perkins, Inc., containing the surveyor’s certificate addressed to Seller, Purchaser and Title Company in the form of the certificate attached as Exhibit B, in which said Survey will, in addition to conforming to the requirements of a Category 1-A, Condition III Survey, (i) be made on the ground with iron pins at the corners, (ii) locate all existing easements that are visible or known to the surveyor or recorded (and if recorded, setting forth the recording information), alleys, streets, and roads, (iii) show all encroachments on the Land, (iv) show all existing improvements (including power lines, fences, drill equipment, ditches, and related matters), (v) comply with standards necessary for the Title Company to issue the title policy to be delivered by the Title Company, (vi) show the boundaries and areas of the Property to the nearest one-thousandth of an acre, (vii) provide a legal description of the Land, _____________________________________________________________________________________________ Page 3 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) (viii) addressing all matters set forth in the surveyor’s certification attached as Exhibit B, and (ix) contain the surveyor’s certification attached as Exhibit B. 4.2. Review of Title Documents. The review of the Commitment, the Exception Documents, and the Survey (collectively, “Title Documents”) will be governed by the following terms: (a) Purchaser Obligations. Purchaser will have until five (5) business days after Purchaser’s receipt of the last of the Title Documents (“Title/Survey Review Period”) to provide to Seller written objections to the status of title to the Property. If written objections have not been received by Seller before the Title/Survey Review Period expires, Purchaser will be deemed to have conclusively accepted and approved the status of title to the Property as shown by the Title Documents, and all the matters shown in the Title Documents will be Permitted Exceptions. (b) Seller Response. If Purchaser does timely deliver written objections to Seller, Seller will within three (3) business days after receiving them (“Response Period”) notify Purchaser of which objections Seller will cure before Closing (“Cure Notice”), Seller having no obligation to cure any of Purchaser’s title objections. If Seller does not agree or is unable to timely cure all of Purchaser’s title objections, Purchaser may either (1) waive the title objections in writing and purchase the Property despite them, in which event the title objections will be deemed Permitted Exceptions, or (2) terminate this Contract by giving written notice to Seller within three (3) business days after the Response Period, in which event the Earnest Money Deposit will be returned to Purchaser on demand, and neither Seller nor Purchaser will have any further obligations under this Contract except for those that expressly survive its termination. 4.3. Conveyance by Deed. Seller will deliver to Purchaser at Closing one or more Special Warranty Deeds, at Purchaser’s sole discretion, in the form and substance of Exhibit C attached hereto (“Deed”), conveying fee simple title to the Property to Purchaser, containing the matters set forth in Section 1.2 and each subject to the exceptions to title contained in the Title Documents approved or waived by Purchaser under Section 4.2. ARTICLE 5 FEASIBILITY REVIEW, INSPECTION AND EXAMINATION 5.1. Review Period. The Purchaser’s feasibility review, inspection and examination of the Property will be governed by the following terms: (a) Time Period. For the Independent Contract Consideration (as defined in Section 12.10), Purchaser will have a period of forty-five (45) days after the Effective Date (“Review Period”), during which time Purchaser, or its authorized agents or representatives, will be conducting its feasibility review, inspection and examination of the Property and, to the extent necessary, will be entitled to enter on the Property for _____________________________________________________________________________________________ Page 4 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) the purpose of inspecting, examining, and conducting tests on the Property; provided however, that Purchaser will return the Property to its condition existing prior to such inspections, examinations or tests promptly following the completion of such inspections, examinations or tests and agrees to hold Seller harmless from any injuries, death or property damage that might occur to Purchaser or Purchaser’s contractors or employees during any entry onto the Property. (b) Termination. If Purchaser, in its sole discretion, is dissatisfied with the results of the feasibility review, inspection and examination of the Property and determines, in its sole judgment, that the Property is not suitable, for any reason, for Purchaser’s intended use or purpose, Purchaser may, by written notice delivered to Seller before the Review Period expires, terminate this Contract, in which event the Earnest Money Deposit will be returned to Purchaser on demand, and neither Seller nor Purchaser will have any further obligations under this Contract except for those that expressly survive its termination. If Purchaser does not terminate this Contract by delivery of written notice to Seller before the Review Period expires, Purchaser will no longer have a right of termination under this Section, but will have a continuing right to enter on the Property. 5.2. Environmental Survey. The inspection and examination of the Property relative to the environmental condition of the Property will be governed by the following terms: (a) Examination Authority. Purchaser, at its expense, will have the right to conduct Phase I and, if necessary, Phase II environmental surveys (collectively, “Environmental Survey”) of the Property, which must be completed before the Review Period expires. If an Environmental Survey is conducted, Purchaser will deliver to Seller a written report stating the findings obtained in the Environmental Survey. (b) Remediation/Termination. If, as a result of the Environmental Survey, or by any other means, Purchaser or Seller becomes aware of the existence of toxic or hazardous wastes (including asbestos) or other environmental contamination on or within the Property, Purchaser will have the right to immediately terminate this Contract before the Review Period expires. If Purchaser terminates this Contract under this Section, the Earnest Money Deposit will be returned to Purchaser and the parties will have no further obligations under this Contract except for those that expressly survive its termination. 5.3. Document Inspection. To facilitate Purchaser’s inspection of the Property, Seller will provide to Purchaser, within five (5) business days after the Effective Date, but only to the extent within Seller’s actual possession, true, correct, and complete copies of (a) all reports, tests (including, but not limited to, all soil reports, water rights, engineering investigations, tests, and environmental studies), (b) surveys made with respect to the Property within two (2) years before the Effective Date, (c) all leases and/or occupancy agreements _____________________________________________________________________________________________ Page 5 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) and/or licenses of any kind or nature, whether oral or written (if oral, Seller shall provide to Buyer in writing all material terms thereof), relating to possession of the Property, or any part thereof, including any and all modifications, supplements, and amendments thereto, (d) all licenses, agreements and encumbrances (including amendments and exhibits) affecting title to or use of the Property that have not been recorded in the real property records of Denton County, Texas, (e) all governmental licenses, certificates, permits, and approvals, and (f) all records of any regulatory proceedings or violations. Additionally, Seller will provide any further information in its actual possession relating to the Property that may be reasonably requested in writing by Purchaser. Purchaser acknowledges that any information of any type that Purchaser has received or may receive from Seller or its agents is furnished to Purchaser as a courtesy only and on the express condition that Purchaser will make an independent verification of the accuracy of the information. ARTICLE 6 CLOSING 6.1. Closing Date. The consummation of the transactions contemplated by this Contract (“Closing”) will take place in the offices of the Title Company, at 3:00 p.m. on November 2, 2016. 6.2. Closing Costs. At Closing, Seller will pay (a) any costs related to the issuance of the Commitment and the base premium for the Owner Policy, (b) the cost of satisfying any liens not deemed Permitted Exceptions which Seller has agreed to cure as set forth herein, (c) Seller’s legal fees, (d) one-half (1/2) of any escrow or closing fee charged by the Title Company and the cost of any tax certificates, municipal and utility lien certificates, and (e) all other items normally paid by sellers in real estate transactions in Denton County, Texas. Purchaser will pay (a) the cost of Purchaser’s due-diligence inspection, (b) the cost to modify the areas-and-boundaries exception in the Owner Policy to read “shortages in area” only (if requested by Purchaser), (c) the cost for any extended coverages or endorsements to the Owner Policy required by Purchaser, (d) one-half (1/2) of any escrow or closing fee charged by the Title Company, and (e) all other items normally paid by purchasers in real estate transactions in Denton County, Texas. 6.3. Real Estate Tax Prorations. Title to the Property on the day of Closing will belong to Purchaser, and all prorations to be made as of Closing will be made as of 12:01 a.m., Central Prevailing Time, on the Closing Date. Ad valorem taxes relating to the Property for the calendar year in which the Closing shall occur shall be prorated and submitted by Seller to the Denton County Tax Assessor as of the Closing Date or credited to the Purchaser at Closing. Ad valorem tax for the calendar year in which the Closing shall occur shall be tendered under Texas Property Tax Code Section 26.11. If the actual amount of taxes for the calendar year in which the Closing shall occur is not known as of the Closing Date, the proration at Closing shall be based on the amount of taxes due and payable with respect to the Property for the preceding calendar year. Seller shall pay for those taxes attributable to the period of time prior to the Closing Date (provided, however, that subsequent assessments for prior years due to _____________________________________________________________________________________________ Page 6 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) change of land usage or ownership by Purchaser after the Closing Date shall be the sole responsibility of Purchaser) and Purchaser shall pay for those taxes attributable to the period of time commencing with the Closing Date. The terms and provisions of this Section will survive the Closing. 6.4. Seller’s Obligations at Closing. At Closing, Seller will deliver, or have delivered in accordance with local custom and practice, to the Title Company the documents in (a)-(f) below, each of which will be duly executed and, if appropriate, acknowledged, together with any other necessary or appropriate items or instruments: (a) Deed. Seller will deliver to Purchaser at Closing one or more Special Warranty Deeds, at Purchaser’s sole discretion, in the form and substance of Exhibit C (“Deed”) conveying fee simple title to the Property to Purchaser with each containing the matters set forth in Sections 1.2 (b) and (c), and each subject to the exceptions to title contained in the Title Documents approved or waived by Purchaser under Section 4.2. (b) Nonforeign Affidavit. An affidavit required under Internal Revenue Code Section 1445 stating, under penalty of perjury, that neither Seller nor any other party so swearing is a foreign person within the meaning of Section 1445. (c) Evidence of Authority. Any documents reasonably requested by the Title Company or required by this Contract to confirm that this transaction and the parties executing the documents are fully authorized and empowered to act. (d) Owner Policy. An Owner’s Policy of Title Insurance (“Owner’s Title Policy”) issued by the Title Company, insuring good and indefeasible title to the Property in Purchaser in a face amount equal to the Purchase Price, and containing no exceptions other than the Permitted Exceptions; an exception for fees and taxes for the calendar year in which the Closing occurs and subsequent years, and subsequent assessments for prior years due to change in land usage or ownership; an exception for any discrepancies, conflicts, or shortages in area or boundary lines, any encroachments or protrusions, or any overlapping of improvements; an exception for homestead or community property or survivorship rights, if any, of any spouse of any insured; an exception for any title 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 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 bulkhead lines as established or changed by any government, or to filled-in lands, or artificial islands, or to riparian rights or other statutory water rights, or the rights or interests of the state in which the Property is located or the public generally in the area extending from the line of mean low tide to the line of vegetation, or the right of access to or right of easement along and across the same; and any other printed exceptions that are customary for an _____________________________________________________________________________________________ Page 7 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) Owner’s Title Policy in the State of Texas. 6.5. Purchaser’s Obligations at Closing. At Closing, Purchaser will deliver, or have delivered in accordance with local custom and practice, to the Title Company the following: (a) Cash Funds. The cash funds for the Purchase Price (as defined in Section 2.1). (b) Closing Documents. Any other necessary or appropriate items or instruments reasonably requested by the Title Company or Seller. (c) Evidence of Authority. Any documents reasonably requested by the Title Company or required by this Contract to confirm that this transaction and the parties executing the documents are fully authorized and empowered to act. (d) Bagley Farms. Purchaser acknowledges that Seller has a verbal agreement with Bagley Farms to utilize the Property for farming. Seller will terminate that verbal agreement at Closing and Purchaser will compensate Bagley Farms at Closing for any crops in the ground and any work performed in conjunction with the preparation of the ground for the planting of crops which belong to Bagley Farms at Closing in an amount not to exceed Ten Thousand and No/100 Dollars ($10,000.00). 6.6. Delivery of Possession. Possession of the Property will be delivered to Purchaser at Closing, after completion of funding, subject only to the Permitted Exceptions. ARTICLE 7 REPRESENTATIONS, WARRANTIES, AND COVENANTS 7.1. Seller’s Representations, Warranties, and Covenants. Seller represents, warrants, and covenants to Purchaser the following: (a) Authority. Seller has been duly organized and is in good standing under the laws of the state of its organization. Seller has the legal right and authority to enter into this Contract and to transfer all of the Property under this Contract. The person signing this Contract on Seller's behalf is authorized to do so. (b) Title to Property. The Seller has good and indefeasible fee simple title to the Property, subject only to the Permitted Exceptions. (c) Leases. All Leases shall have expired or otherwise terminated and any and all tenants or parties occupying the Property pursuant to the Leases shall have permanently abandoned and vacated the Property, including without limitation, all personal property of any such tenants or parties, on or before the date of Closing. _____________________________________________________________________________________________ Page 8 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) (d) Condemnation; Legal Action. To Seller’s actual knowledge, there is no pending or threatened condemnation or similar proceeding affecting the Property or pending liens in, about, or outside the Property that will affect the Property or access to it, nor any legal action of any kind affecting the Property that will affect Purchaser, nor is any such legal action presently contemplated. (e) Governmental Requirements. To Seller’s actual knowledge, Seller has complied with all applicable laws, ordinances, regulations, statutes, rules, and restrictions pertaining to and affecting the Property, and Seller’s performance of this Contract will not result in any breach of, constitute any default under, or result in imposition of any lien or encumbrance on the Property under any agreement or other instrument to which Seller is a party or by which Seller or the Property might be bound. (f) Environmental. Seller has no actual knowledge of and has not received any written notice about any violation of Environmental Laws related to the Property or the presence or release of Hazardous Materials on or from the Property or any adjacent property. Seller has not received any written notice of any threatened or pending suit or proceeding concerning the Property relating to any Environmental Law. The term “Environmental Laws” includes the Resource Conservation and Recovery Act, the Comprehensive Environmental Response Compensation and Liability Act, and other federal laws governing the environment, pollution, or hazardous materials in effect on the Effective Date of this Contract, together with their implementing regulations and guidelines as of the Effective Date of this Contract, and all state, regional, county, municipal, and other local laws, regulations, and ordinances that are similar to the federal laws stated above or that purport to regulate the environment, pollution, or hazardous materials. The term “Hazardous Materials” includes any substance, material waste, pollutant, or contaminant regulated, listed, or defined as hazardous or toxic under any Environmental Law. To Seller’s actual knowledge, the Property has not been used as a landfill or as a dump for garbage or refuse. (g) Terrorist Organizations Lists. Neither Seller nor, to Seller's actual knowledge, any of its respective partners, members, shareholders, owners, employees, officers, directors, representatives, or agents is or will become a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control of the Department of the Treasury (including those named on the OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action. (h) Pending Actions. To Seller’s actual knowledge, Seller has not received written notice of any action, lawsuit, arbitration, unsatisfied order or judgment, government investigation, or proceeding pending against Seller that, if adversely determined, could materially interfere with the transaction contemplated by this _____________________________________________________________________________________________ Page 9 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) Contract. (i) No New or Amended Agreements. After the Effective Date and continuing through the earlier of the Closing Date or the termination of this Contract, Seller will not, without Purchaser's prior written consent, which may be withheld or denied in Purchaser’s sole discretion, enter into any leases, licenses, occupancy agreements, or other agreements providing for the use or occupancy of the Property or services for the Property for a term that extends beyond the Closing Date. (l) Further Action of Seller. From the Effective Date until the date of Closing or earlier termination of this Contract, Seller shall: (i) Advise the Purchaser promptly of any litigation, arbitration, or administrative hearing, or claims related thereto, concerning or affecting the Property. (ii) Not take, or omit to take, any action that would result in a violation of the representations, warranties, covenants, and agreements of Seller. (iii) not sell, assign, lease or convey any right, title or interest whatsoever in or to the Property, or create, grant or permit to be attached or perfected, any lien, encumbrance, or charge thereon. (iv) Seller shall indemnify and hold Purchaser harmless, to the extent permitted by law, from all loss, liability, and expense, including, without limitation, reasonable attorneys’ fees, arising or incurred as a result of any liens or claims resulting from labor or materials furnished to the Property under any written or oral contracts arising or entered into prior to Closing. (v) Seller shall provide any necessary written authorization required by Purchaser prior to Closing for any permitting, planning or zoning applications; provided, however, that no permitting, planning or zoning shall become final prior to the Closing Date, including, but not limited to, the filing and recording of any plats. 7.2. Purchaser’s Representations, Warranties, and Covenants. Purchaser represents, warrants, and covenants to Seller the following: (a) Authority. Purchaser has been duly organized and is in good standing under the laws of the state of its organization. Purchaser has the legal right and authority to enter into this Contract and to make the transactions under this Contract. The execution, delivery, and performance of this Contract have been duly authorized, and no other action by Purchaser is required for the valid and binding execution, delivery, and performance of this Contract, except as otherwise expressly provided. There is no agreement to which Purchaser is a party or, to Purchaser’s knowledge, _____________________________________________________________________________________________ Page 10 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) binding on Purchaser that is in conflict with this Contract. (b) Terrorist Organizations Lists. Neither Purchaser nor, to Purchaser's actual knowledge, any of its respective partners, members, shareholders, owners, employees, officers, directors, representatives, or agents is or will become a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control of the Department of the Treasury (including those named on the OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action. 7.3.As Is. Once the Review Period has expired, Purchaser will have examined and inspected the Property, reviewed all instruments, records, and documents that Purchaser deems appropriate or advisable to review in connection with this transaction, and, at its own cost and expense, made its own independent investigation into the Property and all other aspects of this transaction. PURCHASER AGREES THAT, EXCEPT FOR SELLER’S REPRESENTATIONS AND WARRANTIES IN SECTION 7.1, SELLER HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES ABOUT THE COMPLIANCE OR NONCOMPLIANCE OF SELLER OR ANY OTHER PERSON OR ENTITY OR THE PROPERTY OR ITS OPERATION WITH (A) ALL CODES, LAWS, ORDINANCES, REGULATIONS, AGREEMENTS, LICENSES, PERMITS, APPROVALS, AND APPLICATIONS OF OR WITH ANY GOVERNMENTAL AUTHORITIES ASSERTING JURISDICTION OVER THE PROPERTY, INCLUDING BUT NOT LIMITED TO THOSE RELATING TO ZONING, LAND USE, BUILDING, PUBLIC WORKS, PARKING, FIRE AND POLICE ACCESS, HANDICAP ACCESS, LIFE SAFETY, SUBDIVISION AND SUBDIVISION SALES, AND HAZARDOUS AND TOXIC SUBSTANCES, MATERIALS, CONDITIONS, OR WASTE; AND (B) ALL AGREEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS (PUBLIC OR PRIVATE), DEVELOPMENT AGREEMENTS, BUILDING RULES, AND OTHER INSTRUMENTS AND DOCUMENTS GOVERNING THE USE, DEVELOPMENT, AND OPERATION OF THE PROPERTY. PURCHASER AGREES THAT THE PROPERTY WILL BE SOLD AND CONVEYED TO (AND ACCEPTED BY) PURCHASER AT CLOSING IN ITS CONDITION AT THE TIME, AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT ANY WRITTEN OR ORAL REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED, OR ARISING BY OPERATION OF LAW, OTHER THAN THE SPECIAL WARRANTY OF TITLE IN THE DEED. FURTHER, PURCHASER REPRESENTS AND WARRANTS TO SELLER THAT PURCHASER HAS KNOWLEDGE AND EXPERTISE IN FINANCIAL AND BUSINESS MATTERS THAT ENABLE IT TO EVALUATE THE MERITS AND RISKS OF THE TRANSACTION CONTEMPLATED BY THIS CONTRACT AND THAT PURCHASER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION. PURCHASER AGREES THAT _____________________________________________________________________________________________ Page 11 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) THE PROVISIONS IN THIS SECTION WILL SURVIVE THE CLOSING. PURCHASER WILL RELY SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED BY SELLER, ITS AGENTS, OR ITS CONTRACTORS. SELLER WILL NOT BE LIABLE OR BOUND IN ANY WAY BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS, OR INFORMATION ABOUT THE PROPERTY OR ITS OPERATION FURNISHED BY ANY PARTY PURPORTING TO ACT ON SELLER'S BEHALF. ARTICLE 8 DEFAULT 8.1. Purchaser’s Default. If Purchaser defaults in its obligation to purchase the Property from Seller under this Contract, Seller may, as its sole and exclusive remedy for the breach, terminate this Contract by written notice to Purchaser and the Title Company, and upon any such termination the Title Company will immediately deliver to Seller the Earnest Money Deposit, which is agreed on as the amount payable by Purchaser to Seller in consideration of Purchaser having the option to refuse to purchase the Property without any liability on account of its refusal other than payment of the Earnest Money Deposit. 8.2. Seller’s Default. If Seller defaults in its obligation to convey the Property to Purchaser under this Contract, the Purchaser may, as its sole and exclusive remedy, either (i) terminate this Contract by written notice to Seller and the Title Company, in which event the Earnest Money Deposit will be returned to Purchaser, or (ii) enforce specific performance of Seller’s obligations under this Contract. In no event will Seller be liable to Purchaser for any actual, punitive, speculative, consequential, or other damages. ARTICLE 9 CASUALTY LOSS 9.1. Risk of Loss. Risk of loss due to casualty up to and including the Closing Date will be borne by Seller (as between Seller and Purchaser), except to the extent of any loss or damage caused solely by the acts of Purchaser or its agents, employees, contractors, or invitees. The provisions of this Section will govern despite any contrary provisions of Texas Property Code Section 5.007. 9.2. Condemnation. By written notice to Purchaser given within five (5) days after Seller receives written notice of proceedings in eminent domain affecting the Property that are contemplated, threatened, or instituted by anybody having the power of eminent domain, Purchaser may (a) terminate this Contract and the Earnest Money Deposit will be immediately returned to Purchaser without the necessity of obtaining any consent or release by Seller, or (b) proceed under this Contract, in which event Seller will, at Closing, assign to Purchaser its entire right, title, and interest in and to any condemnation award. The provisions of this Section will govern despite any contrary provisions of Texas Property Code Section 5.007. _____________________________________________________________________________________________ Page 12 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) ARTICLE 10 BROKER FEES AND COMMISSIONS 10.1. No Brokerage Fees. Neither Seller nor Purchaser has contacted any real estate broker, agent, finder, or similar person in connection with the negotiation and execution of this Contract, the transactions contemplated by it, or the sale and purchase of the Property. To the actual knowledge of Seller and Purchaser, no Acquisition Fees have been paid or are due to any other person or entity. As used this Section, “Acquisition Fees” means all fees paid to any person or entity in connection with the selection and purchase of the Property, including real estate commissions, selection fees, nonrecurring management and startup fees, development fees, and any other similar fees. If any claims for Acquisition Fees are ever made against Seller or Purchaser in connection with the transactions contemplated by this Contract, all such claims will be the responsibility of the party whose commitments form the basis of the claims. Seller and Purchaser each agree to indemnify and hold harmless the other from and against any and all liabilities, claims, demands, or actions for or with respect to Acquisition Fees asserted by any person, firm, or corporation in connection with this Contract or the transactions contemplated by it, and any court costs, attorney fees, or other costs and expenses arising from it, insofar as any such liabilities, claims, demands, or actions are based on a contract or commitment of the indemnifying party. This indemnification provision will survive the Closing or the termination of this Contract, as applicable. ARTICLE 11 NOTICE 11.1. Notice Designation. All notices required or permitted under this Contract must be in writing and be served on the parties at the addresses listed below. Unless otherwise provided, all notices must be given or served (a) by overnight delivery using a nationally recognized overnight courier, (b) by personal delivery, (c) by fax transmission during normal business hours with a confirmation copy delivered by another method permitted under this Section other than e-mail, or (d) by e-mail sent to the e-mail address listed below with a confirmation copy delivered by another method permitted under this Section other than fax transmission. Notice given by all permitted forms other than fax transmission or e-mail will be effective on the earlier of actual delivery to the address of the addressee or refusal of receipt by the addressee (even if the addressee refuses delivery). Notice given by fax transmission or e- mail will be effective on the transmission or attempted transmission of a fax to the phone number designated as the recipient’s fax number during normal business hours or an e-mail to the e-mail address designated as the recipient’s e-mail address during normal business hours. A party’s address, fax number, or e-mail address may be changed by written notice to the other party, but a notice of change is not effective until actual receipt of the notice. Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice will not be deemed a failure to give notice. Notices given by a party's attorney will be deemed given by that party. The notice addresses of the parties are specified below until further notice: _____________________________________________________________________________________________ Page 13 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) Seller: John Porter Auto Sales, Inc. 1801 Hinkle Drive, Suite 150 Denton, Texas 76201 Phone: 940-891-4223 Fax: Email: mike@porterinvestments.com with a copy to: Ryan W. Crandall Basinger Leggett Clemons Bowling Shore Crandall, PLLC 5700 Granite Parkway, Suite 950 Plano, Texas 75024 Phone: 214-473-8686 Fax: 214-473-8685 Email: rcrandall@bltexaslaw.com Purchaser: Michael S. Grim, Executive Manager Denton Municipal Electric - City of Denton 1659 Spencer Road Denton, Texas 76205 Fax: (940) Email: mike.grim@cityofdenton.com with a copy to: Lawrence C. Collister, Deputy City Attorney City of Denton 215 E. McKinney St. Denton, Texas 76209 Fax: (940) 382-7923 Email: larry.collister@cityofdenton.com ARTICLE 12 MISCELLANEOUS 12.1. Binding Agreement. This Contract and all of its terms, provisions, and covenants will apply to, be binding on, and inure to the benefit of the parties and their respective successors and assigns. 12.2. Headings. The headings used in this Contract are for convenience only and are _____________________________________________________________________________________________ Page 14 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) not intended in any way to limit or expand the terms and provisions of this Contract. 12.3. Time of Essence. Time is of the essence in this Contract. 12.4. Governing Law. This Contract will be governed by and interpreted under the laws of the State of Texas, regardless of any conflict-of-law rules. This Contract will be specifically performable in Denton County, Texas. 12.5. Entire Agreement. This Contract contains the entire agreement of the parties. All understandings, discussions, and agreements previously made between the parties, written or oral, are superseded by this Contract, and neither party is relying on any warranty, statement, or representation not contained in this Contract. 12.6. Amendment. This Contract may not be altered, changed, or amended except by a written agreement signed by all parties. 12.7. Counterparts. This Contract may be executed in two or more counterparts, each of which will be deemed an original and all of which together will constitute one agreement. 12.8. Date Computation. If any significant date falls on a Saturday, Sunday, or federal or state holiday, the date will be deemed moved to the next business day that is not a Saturday, Sunday, or federal or state holiday. The term “business day” means a day that is not a Saturday, Sunday, or federal or state holiday. 12.9. Contract Consideration. In addition to the Earnest Money Deposit, Purchaser will pay to Seller the amount of One Thousand and No Cents ($1,000.00) as independent contract consideration for Seller’s execution and delivery of this Contract and all of its provisions, including Purchaser’s right to terminate this Contract during the Review Period. This consideration is in addition to and independent of any other consideration or payment provided in this Contract and is nonrefundable to Purchaser. 12.10. Confidentiality. Before Closing, Seller and Purchaser will not disclose the content or substance of the terms, conditions, and provisions of this Contract to any person or entity without the other party’s written consent. However, nothing in this Section prohibits Purchaser from disclosing the terms of this Contract to Purchaser’s attorneys, accountants, lenders, engineers, and partners. The confidentiality provisions of this Section will not apply to any matters of public record or matters generally known to the public, or any disclosures made by Purchaser or Seller as required by law, ordinance, subpoena, court order, or regulation. Purchaser and Seller will give each other written notice before making any disclosure under a subpoena or court order. 12.11. Assignment. Purchaser will not assign, transfer, or convey its rights or obligations under this Contract or with respect to the Property without Seller’s written consent. _____________________________________________________________________________________________ Page 15 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) 12.12. Effective Date. The date that Purchaser executes this Contract will be the Effective Date of this Contract. 12.13. Construction. This Contract is the result of negotiations between the parties, neither of whom has acted under any duress or compulsion, whether legal, economic, or otherwise. Accordingly, the terms and provisions of this Contract will be construed in accordance with their usual and customary meanings. Seller and Purchaser waive the application of any rule of law that would otherwise apply in the construction of this Contract that ambiguous or conflicting terms or provisions should be construed against the party who (or whose attorney) prepared the executed Contract or any earlier draft of it. 12.14. Exchange. Seller may elect to participate in a tax-deferred exchange under the Internal Revenue Code. If Seller elects to participate, Purchaser will reasonably cooperate with the election; however, Purchaser will have no obligation to incur any cost or liability or to take title to any real property (other than Purchaser’s acquisition of the Property under this Contract), and the Closing will not be conditioned on or unreasonably delayed by any exchange. If Seller elects to participate Seller will provide all documents requested from the other party at least three (3) business days before the Closing and will indemnify and hold Purchaser harmless from any claims, liabilities, or damages arising from the cooperation, and the indemnity obligation will expressly survive the termination or Closing of this Contract. 12.15. Attorney Fees. If it becomes necessary for either Seller or Purchaser to employ legal counsel or to bring an action at law or other proceeding to enforce any of the terms, covenants, or conditions of this Contract, the prevailing party in any action or proceeding will be entitled to recover its costs and expenses incurred, including its reasonable attorney fees, from the other party. The term “prevailing party” means the party that has succeeded on a significant issue in the litigation and achieved a benefit with respect to the claims at issue, taken as a whole, whether or not damages are actually awarded to that party. 12.16.Survival Clause. The provisions of Section 6.3, Article 7, and Article 10 of this Contract will survive the Closing for a period of six (6) months and remain in full force and effect between the parties for that period. --- This space left blank intentionally --- _____________________________________________________________________________________________ Page 16 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) SELLERS: EAGLE FARMS, INC., a Texas corporation By: __________________________________________ Signature __________________________________________ Printed Name __________________________________________ President Signed on the _____ day of September, 2016. JOHN PORTER AUTO SALES, INC., a Texas corporation By: __________________________________________ Signature __________________________________________ Printed Name __________________________________________ President Signed on the _____ day of September, 2016. _____________________________________________________________________________________________ Page 17 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) PURCHASER: CITY OF DENTON, a Texas home-rule municipal corporation By: __________________________________________ Howard Martin, Interim City Manager, under the authority of City of Denton Ordinance No. 2016 - _________ Signed on the _____ day of September, 2016. ATTEST: Jennifer Walters, City Secretary __________________________________________ APPROVED AS TO FORM: Anita Burgess, City Attorney __________________________________________ _____________________________________________________________________________________________ Page 18 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) ACCEPTANCE BY TITLE COMPANY The undersigned title company, Republic Title of Texas, Inc. – Fort Worth Commercial Division, referred to in this Contract as the Title Company, acknowledges receipt of a fully executed copy (or executed counterparts) of the Contract, and accepts the obligations of the Title Company as stated in the Contract. TITLE COMPANY: Republic Title of Texas, Inc. – Fort Worth Commercial Division By: __________________________________________ Signature __________________________________________ Printed Name __________________________________________ President Signed on the _____ day of September, 2016. _____________________________________________________________________________________________ Page 19 of 19 - Real Estate Sales Contract (City of Denton/Eagle Farms-Porter Auto Sales) EXHIBIT A LEGAL DESCRIPTION OF PROPERTY LEGAL DESCRIPTION Eagle Farms and John Porter Auto Sales Tract BEING a tract of land situated in the Gibson Myers Survey, Abstract No. 843, the Johnson, Green, Myers and Brummett Survey, Abstract No. 1699, the Moses H. Davis Survey, Abstract No. 377 and the William Wilburn Survey, Abstract No. 1419, City of Denton, Denton County, Texas, and being a part of a called 691.64 acre tract of land described in a Deed to Eagle Farms, Inc. and John Porter Auto Sales, Inc., as recorded in Document No. 93-077959 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a point for corner in the North line of the above cited 691.64 acre tract, said point being the Northeast corner of a called 5.700 acre tract of land described in a Deed to Everette Newland, as recorded in Document No. 2012-19340 of the Official Records of Denton County, Texas, said point also being in the center of Jim Christal Road, a variable width prescriptive right-of-way; THENCE North 89°21'52" East along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 1245.67 feet to a PK nail set for corner; THENCE North 89°31'54" East continuing along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 693.00 feet to a PK nail set for corner at the beginning of a non-tangent curve to the right; THENCE in a Southeasterly direction, along the North line of said 691.64 acre tract and along said Jim Christal Road, and along said non-tangent curve to the right having a central angle of 18°20'00", a radius of 1059.69 feet, a chord bearing of South 82°18'06" East, a chord distance of 337.63 feet and an arc length of 339.07 feet to a PK nail set for corner at the end of said curve; THENCE South 72°18'58" East continuing along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 172.83 feet to a PK nail set for corner in the West line of a called 24.265 acre tract of land described as Tract 2 in a Deed to Lybbert Family Trust, as recorded in Document No. 2009-5235 of the Official Records of Denton County, Texas, THENCE South 00°00'04" East departing the North line of said 691.64 acre tract and said Jim Christal Road, and along the West line of said 24.265 acre tract, for a distance of 84.71 feet to a 5/8 inch iron rod with cap stamped “TNP” set for corner at the Southwest corner of said 24.265 acre tract; THENCE South 88°09'34" East along the South line of said 24.265 acre tract, for a distance of 191.10 feet to a 5/8 inch iron rod found for the Southeast corner of said 24.265 acre tract and the Southwest corner of a called 2.95 acre tract of land described in a Deed to JHR Construction Co., Inc., as recorded in Volume 4457, Page 1807 of the Real Property Records of Denton County, Texas; THENCE South 86°34'38" East along the South line of said 2.95 acre tract, for a distance of 264.31 feet to a point for the Southeast corner of said 2.95 acre tract; THENCE North 00°20'53" West along the East line of said 2.95 acre tract, for a distance of 8.53 feet to a point for corner near the centerline said Jim Christal Road and the North line of said 691.64 acre tract; THENCE South 87°21'11" East along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 644.00 feet to a point for corner; THENCE South 86°41'11" East continuing along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 555.19 feet to a point for corner; THENCE South 85°46'07" East continuing along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 112.81 feet to a point for the Northwest corner of a called 23.076 acre tract of land described in a Deed to the City of Denton, Texas, as recorded in Document No. 2010-9442 of the Official Records of Denton County, Texas; THENCE South 08°12'59" East departing the North line of said 691.64 acre tract and said Jim Christal Road, and along the West line of said 23.076 acre tract, for a distance of 1264.36 feet to a point for the Southwest corner of same, said point also being in the North line of a called 9.679 acre tract of land described in a Judgment as Cause No. CV-92-00522-C, and being recorded in Document No. 94-071012 of the Real Property Records of Denton County, Texas; THENCE North 89°46'03" West along the North line of said 9.679 acre tract, for a distance of 145.10 feet to a point for the Northwest corner of same; Page 1 of 4 THENCE South 07°25'04" East along the West line of said 9.679 acre tract, passing the Southwest corner of same and an interior ell corner of said 691.64 acre tract at a distance of 504.51 feet, and continuing along the East line of said 691.64 acre tract for a total distance of 2015.34 feet to a 1/2 inch iron rod with cap stamped “Vannoy 563-7101” found for an interior Southeast corner of said 691.64 acre tract; THENCE North 89°21'21" West continuing along the East line of said 691.64 acre tract, for a distance of 50.07 feet to a 1/2 inch iron rod with cap stamped “Vannoy 563-7101” found for an interior ell corner of same, said point being in the Northwest line of Tom Cole Road; THENCE South 24°52'16" West continuing along the East line of said 691.64 acre tract and the Northwest line of said Tom Cole Road, for a distance of 660.00 feet to a 1/2 inch iron rod found for the most Southerly Southeast corner of said 691.64 acre tract; THENCE North 89°27'53" West along the South line of said 691.64 acre tract and the North line of said Tom Cole Road, for a distance of 1441.63 feet to a 1/2 inch iron rod found for the most Easterly Northeast corner of a called 116.088 acre tract of land described in a Deed to Nucon Steel Commercial Corporation, as recorded in Volume 5255, Page 5740 of the Real Property Records of Denton County, Texas; THENCE North 88°50'56" West along the South line of said 691.64 acre tract and the most Easterly North line of said 116.088 acre tract, for a distance of 297.54 feet to a 1/2 inch iron rod found for the most Southerly Southwest corner of said 691.64 acre tract and an interior ell corner of said 116.088 acre tract; THENCE North 00°13'05" West along the most Southerly West line of said 691.64 acre tract and the most Northerly East line of said 116.088 acre tract, for a distance of 1004.53 feet to a 1/2 inch iron rod with cap stamped “Vannoy 563-7101” found for the most Northerly Northeast corner of said 116.088 acre tract and an interior ell corner of said 691.64 acre tract; THENCE North 89°50'49" West along the South line of said 691.64 acre tract and the North line of said 116.088 acre tract, for a distance of 2358.32 feet to a 1/2 inch iron rod found for corner at an interior Southwest corner of said 691.64 acre tract and the Northwest corner of said 116.088 acre tract, said point also being in the East line of a called 152 acre tract of land described in a Deed to Walter B. (Bud) Wolf, as recorded in Volume 533, Page 541 of the Deed Records of Denton County, Texas; THENCE North 00°26'46" East along an interior West line of said 691.64 acre tract and the East line of said 152 acre tract, for a distance of 599.88 feet to a 1/2 inch iron rod with cap stamped “Vannoy 563-7101” found for corner at an interior ell corner of said 691.64 acre tract and the Northeast corner of said 152 acre tract; THENCE North 89°19'25" West along the South line of said 691.64 acre tract and the North line of said 152 acre tract, passing a 5/8 inch iron rod with cap stamped “TNP” set for reference at a distance of 783.81 feet, and continuing along said line for a total distance of 845.95 feet to a point for corner in the center of Hickory Creek, said point being the Southeast corner of a called 10.036 acre tract of land described in a Deed to Charles L. Gregory and wife, Mary R. Gregory, as recorded in Document No. 94-038707 of the Real Property Records of Denton County, Texas, from which a 1/2 inch iron rod found for the Southwest corner of said 10.036 acre tract bears North 89°19'25" West a distance of 806.13 feet; THENCE North 42°03'00" East departing the South line of said 691.64 acre tract, and along the center of said Hickory Creek, for a distance of 253.13 feet to a point for corner, from which a 5/8 inch iron rod with cap stamped “TNP” set for reference bears South 47°57'34" East a distance of 62.00 feet; THENCE North 27°10'39" East continuing along the center of said Hickory Creek, for a distance of 658.88 feet to a point for corner in the South line of a called 18.000 acre tract of land described in a Deed to Everette Newland and wife, Jennifer Newland, as recorded in Document No. 2008-58941 of the Official Records of Denton County, Texas; THENCE South 79°38'43" East departing said Hickory Creek, and along the South line of said 18.000 acre tract, passing a 5/8 inch iron rod with cap stamped “TNP” set for reference at a distance of 62.00 feet, and continuing along the South line of said 18.000 acre tract for a total distance of 154.34 feet to a 1/2 inch iron rod found for the Southeast corner of said 18.000 acre tract and the Southwest corner of the above cited 5.700 acre tract; THENCE South 87°40'32" East along the South line of said 5.700 acre tract, for a distance of 128.07 feet to a 1/2 inch iron rod with cap stamped “RPLS 4857” found for the Southeast corner of said 5.700 acre tract; THENCE North 00°42'44" East along the East line of said 5.700 acre tract, passing a 1/2 inch iron rod with cap stamped “RPLS 4857” found for reference in the South line of said Jim Christal Road at a distance of 1688.82 feet, and continuing Page 2 of 4 along said East line for a total distance of 1712.82 feet to the POINT OF BEGINNING, and containing 349.644 acres of land, LESS,SAVE AND EXCEPT a 6.772 acre tract described herein as SAVE AND EXCEPT TRACT ONE and a 2.403 acre tract described herein as SAVE AND EXCEPT TRACT TWO, leaving a net acreage of 340.469 acres of land, more or less. Said SAVE AND EXCEPT TRACTS ONE AND TWO being more particularly described as follows: SAVE AND EXCEPT TRACT ONE BEING a 6.772 acre tract of land situated in the Johnson, Green, Myers and Brummett Survey, Abstract No. 1699, City of Denton, Denton County, Texas, and being known as Lot 1, Block 1 of Krum Tap Electrical Switch Station, per Plat recorded in Document No. 2010-3 of the Plat Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a point for corner in the North line of called 691.64 acre tract of land described in a Deed to Eagle Farms, Inc. and John Porter Auto Sales, Inc., as recorded in Document No. 93-077959 of the Real Property Records of Denton County, Texas, said point being the Northeast corner of a called 5.700 acre tract of land described in a Deed to Everette Newland, as recorded in Document No. 2012-19340 of the Official Records of Denton County, Texas, said point also being in the center of Jim Christal Road, a variable width prescriptive right-of-way; THENCE North 89°21'52" East along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 1118.72 feet to a point for corner; THENCE South 19°26'51" West departing the North line of said 691.64 acre tract and said Jim Christal Road, passing a 1/2 inch iron rod found for the Northeast corner of a called 1.33 acre tract of land described in a Deed to the City of Denton, Texas, as recorded in Volume 1185, Page 999 of the Deed Records of Denton County, Texas, at a distance of 25.32 feet, and continuing along the East line of said 1.33 acre tract for a total distance of 164.33 feet to a 5/8 inch iron rod with cap stamped “TNP” set for corner at the most Easterly North corner of a called 1.069 acre tract of land described in a Deed to the City of Denton, Texas, as recorded in Document No. 2007-108566 of the Official Records of Denton County, Texas; THENCE South 00°36'34" East departing the East line of said 1.33 acre tract, and along the East line of said 1.069 acre tract, for a distance of 93.36 feet to a 1/2 inch iron rod found for corner; THENCE South 19°27'37" West continuing along the East line of said 1.069 acre tract, for a distance of 132.79 feet to a 1/2 inch iron rod with cap stamped “Arthur” found for the Southeast corner of said 1.069 acre tract; THENCE South 11°07'48" West departing the Southeast corner of said 1.069 acre tract, for a distance of 116.38 feet to a 5/8 inch iron rod found for corner at the POINT OF BEGINNING for the herein described tract, said point being the Northwest corner of the above cited Lot 1; THENCE North 89°39'51" East along the North line of said Lot 1, for a distance of 500.21 feet to a 5/8 inch iron rod found for the Northeast corner of same; THENCE South 00°20'53" East along the East line of said Lot 1, for a distance of 500.10 feet to a 5/8 inch iron rod found for the Southeast corner of same; THENCE South 89°39'01" West along the South line of said Lot 1, for a distance of 679.36 feet to a 5/8 inch iron rod found for the Southwest corner of same; THENCE North 19°21'24" East along the West line of said Lot 1, for a distance of 531.34 feet to the POINT OF BEGINNING, and containing 6.772 acres of land, more or less; SAVE AND EXCEPT TRACT TWO BEING a 2.403 acre tract of land situated in the Johnson, Green, Myers and Brummett Survey, Abstract No. 1699, City of Denton, Denton County, Texas, and being known as all of that certain 1.33 acre tract of land described in a Deed to the City of Denton, Texas, as recorded in Volume 1185, Page 999 of the Deed Records of Denton County, Texas, and all of that certain 1.069 acre tract of land described in a Deed to the City of Denton, Texas, as recorded in Document No. 2007-108566 of the Official Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a point for corner in the North line of called 691.64 acre tract of land described in a Deed to Eagle Farms, Inc. and John Porter Auto Sales, Inc., as recorded in Document No. 93-077959 of the Real Property Records of Denton County, Texas, said point being the Northeast corner of a called 5.700 acre tract of land described in a Deed to Everette Newland, as recorded in Document No. 2012-19340 of the Official Records of Denton County, Texas, said point also being in the center of Jim Christal Road, a variable width prescriptive right-of-way; Page 3 of 4 THENCE North 89°21'52" East along the North line of said 691.64 acre tract, and along said Jim Christal Road, for a distance of 1118.72 feet to a point for corner; THENCE South 19°26'51" West departing the North line of said 691.64 acre tract and said Jim Christal Road, for a distance of 25.32 feet to a 1/2 inch iron rod found for corner at the POINT OF BEGINNING for the herein described tract, said point being the Northeast corner of the above cited 1.33 acre tract; THENCE South 19°26'51" West along the East line of said 1.33 acre tract, for a distance of 139.01 feet to a 5/8 inch iron rod with cap stamped “TNP” set for corner at the most Easterly North corner of the above cited 1.069 acre tract; THENCE South 00°36'34" East departing the East line of said 1.33 acre tract, and along the East line of said 1.069 acre tract, for a distance of 93.36 feet to a 1/2 inch iron rod found for corner; THENCE South 19°27'37" West continuing along the East line of said 1.069 acre tract, for a distance of 132.79 feet to a 1/2 inch iron rod with cap stamped “Arthur” found for the Southeast corner of said 1.069 acre tract; THENCE South 89°22'11" West along the South line of said 1.069 acre tract, for a distance of 253.91 feet to a 1/2 inch iron rod with cap stamped “Arthur” found for the Southwest corner of said 1.069 acre tract; THENCE North 00°36'20" West along the West line of said 1.069 acre tract, for a distance of 348.72 feet to a 1/2 inch iron rod with cap stamped “Arthur” found for the Northwest corner of said 1.069 acre tract, said point being in the South line of said Jim Christal Road; THENCE North 89°23'07" East along the North line of said 1.069 acre tract and the South line of said Jim Christal Road, passing a 1/2 inch iron rod found for the Northeast corner of said 1.069 acre tract and the Northwest corner of said 1.33 acre tract at a distance of 60.11 feet, and continuing along the North line of said 1.33 acre tract and the South line of said Jim Christal Road, for a total distance of 347.13 feet to the POINT OF BEGINNING, and containing 2.403 acres of land, more or less. Page 4 of 4 EXHIBIT B SURVEYOR’S CERTIFICATE SURVEYOR’S CERTIFICATE To: City of Denton, a Texas home-rule municipal corporation (“Purchaser”), and Republic Title of Texas, Inc., (“Title Company”): This is to certify to City of Denton, a Texas home-rule municipal corporation (“Purchaser”), Eagle Farms, Inc., a Texas corporation, and John Porter Auto Sales, Inc., a Texas corporation, (collectively “Seller”), and Republic Title of Texas, Inc., (“Title Company”) that this map or plat and the survey on which it is based were made in accordance with Texas Society of Professional Surveyors requirements for a Category 1-A, Condition III land title survey of the Property, and under the Accuracy Standards as adopted by ALTA, NSPS, and ACSM and in effect on the date of this certification. The undersigned certifies that the Positional Uncertainties resulting from the survey measurements made on the survey do not exceed the allowable Positional Tolerance. The undersigned further certifies to Purchaser and Title Company that (a) this survey is true and correct and was made on the ground under my supervision as per the field notes shown hereon and correctly shows the boundary lines and dimensions and area of the land indicated hereon and each individual parcel thereof indicated hereon; (b) all monuments shown hereon actually exist, and the location, size, and type of such monuments are correctly shown; (c) the subject Property described in this survey is the same land as described in the title commitment described below; (d) this survey and the information, courses, and distances shown on it are correct; (e) this survey correctly shows the size, location, and type of any buildings, structures, other improvements, and visible items on the subject Property and that any buildings and improvements are within the boundary lines and applicable setback lines of the subject Property; (f) this survey correctly shows the location and dimensions of all alleys, streets, roads, rights of way, easements, building setback lines, and other matters of record of which the undersigned has been advised affecting the subject Property according to the legal description in such easements and other matters (with instrument, book, and page number indicated); (g) except as shown, there are no visible (1) improvements, easements, rights of way, party walls, drainage ditches, streams, uses, discrepancies, or conflicts, (2) party walls or encroachments onto adjoining premises, streets, or alleys by any of the buildings, structures, or other improvements, (3) encroachments onto the subject Property by buildings, structures, or other improvements on adjoining premises, or (4) encroachments on any easement, building setback line, or other restricted area by any buildings, structures, or other improvements on the subject Property; (h) the distance from the nearest intersecting street or road is as shown hereon; (i) the subject Property abuts a dedicated public street or road as shown hereon; (j) any discharge into streams, rivers, or other conveyance system is shown on this survey; (k) if the subject Property consists of two or more parcels having common boundaries, those parcels are contiguous along the common boundaries; (l) except as shown, no part of the Property is located in a 100-year flood plain or in an identified “flood prone area,” as defined under the Flood Disaster Protection Act of 1973, as amended, as reflected by Flood Insurance Rate Map Panel No. ____________, dated ____________, which covers the area in which the Property is situated, and this survey correctly indicates the zone designation of any area as being in the 100-year flood plain or “flood prone area”; (m) no portion of the subject Property lies within a delineated wetlands area under federal, state, or local law or policy; (n) except as shown on this survey, the subject Property does not serve any adjoining premises for drainage, utilities, or ingress or egress; (o) the record description of the subject Property forms a mathematically closed figure; and (p) the subject Property has a tax map designation separate and distinct from that of any other premises, and the subject Property is a separate, legally subdivided parcel. The undersigned has received and examined a copy of Title Insurance Commitment No. _______________ issued by Title Company for the Property as well as a copy of each instrument listed therein, and the location of any matter shown thereon, to the extent it can be located, has been shown on this survey. \[Signature of Surveyor\] \[Printed Name of Surveyor\] \[R.P.S. No. of Surveyor\] \[Date Signed\] \[Seal\] EXHIBIT C SPECIAL WARRANTY DEED Special Warranty Deed Notice of confidentiality rights: If you are a natural person, you may remove or strike any or all of the following information from any instrument that transfers an interest in real property before it is filed for record in the public records: your Social Security number or your driver’s license number. Date: Grantor: Eagle Farms, Inc., a Texas corporation, and John Porter Auto Sales, Inc., a Texas corporation Grantor’s Mailing Address: John Porter Auto Sales, Inc. 1801 Hinkle Drive, Suite 150 Denton, Texas 76201 Grantee: City of Denton, a Texas home-rule municipal corporation Grantee’s Mailing Address: 215 E. McKinney St. Denton, Texas 76201 Consideration: Cash and other good and valuable consideration, the receipt and sufficiency of where are hereby acknowledged Property (including any improvements, rights, privileges, hereditaments and appurtenances thereon on in any way appertaining thereto): See attached Exhibit A. Reservations from Conveyance: 1. For Grantor and Grantor’s successors and assigns forever, a reservation of all subsurface oil, gas, and minerals of every kind and character, including, without limitation, coal, lignite coal, coal bed methane gas, sulfur, uranium and any other mineral substance now or hereafter of any commercial value (the “Minerals”) in and under and that may be produced or otherwise extracted in any way from the Property. If the Property is subject to existing production or an existing lease, this reservation includes the production, the lease, and all benefits from it. 2. Grantor waives the right to enter on to the surface of the Property in conducting operations of whatsoever nature with respect to the exploration for, _____________________________________________________________________________________________ Page 1 of 4 - Special Warranty Deed (Eagle Farms-Porter Auto Sales) exploitation of, mining and production, processing, transporting, and marketing the Minerals and that may be produced or otherwise extracted in any way from the Property or in connection with the conduct of other activities associated with its ownership of the Minerals in the Property; provided, however, the foregoing waiver of surface rights shall not be construed as a waiver of the right of Grantor to exploit, explore for, develop, mine, or produce such Minerals with wells drilled on the surface of lands other than the Property or by pooling its oil, gas and mineral interests with lands adjoining the Property in accordance with the laws and regulations of the State of Texas. Grantor and its contractors, agents and affiliated entities shall have the right to enter the subsurface of the Property with a subsurface horizontal or directional wellbore in an effort to explore for and develop the Minerals under the Property. Exceptions to Conveyance and Warranty: See attached Exhibit “B”. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee’s heirs, successors, and assigns forever. Grantor binds Grantor and Grantor’s heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee’s heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by, through, or under Grantor but not otherwise, except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. When the context requires, singular nouns and pronouns include the plural. GRANTEE HAS RELIED SOLELY UPON ITS OWN EXAMINATIONS AND INVESTIGATIONS IN PURCHASING THE PROPERTY. GRANTEE IS ACCEPTING THE PROPERTY "AS IS" AND "WHERE IS," AND WITH ALL FAULTS, SUBJECT TO THE SPECIAL WARRANTY OF TITLE SET FORTH HEREIN. --- This space left blank intentionally --- _____________________________________________________________________________________________ Page 2 of 4 - Special Warranty Deed (Eagle Farms-Porter Auto Sales) GRANTOR: EAGLE FARMS, INC., a Texas corporation By: __________________________________________ Signature __________________________________________ Printed Name __________________________________________ President JOHN PORTER AUTO SALES, INC., a Texas corporation By: __________________________________________ Signature __________________________________________ Printed Name __________________________________________ President ACKNOWLEDGMENTS State of Texas § Denton County § This instrument was acknowledged before me on the _____ day of November, 2016 by _________________________ \[name of officer\] as ____________________ \[title\] of Eagle Farms, Inc., a Texas corporation, on behalf of said corporation. __________________________________________ Notary Public, State of Texas State of Texas § Denton County § This instrument was acknowledged before me on the _____ day of November, 2016 by _________________________ \[name of officer\] as ____________________ \[title\] of John Porter Auto Sales, Inc., a Texas corporation, on behalf of said corporation. __________________________________________ Notary Public, State of Texas _____________________________________________________________________________________________ Page 3 of 4 - Special Warranty Deed (Eagle Farms-Porter Auto Sales) GRANTEE: CITY OF DENTON, a Texas home-rule municipal corporation By: __________________________________________ Howard Martin, Interim City Manager, under the authority of City of Denton Ordinance No. 2016 - __________ ATTEST: Jennifer Walters, City Secretary __________________________________________ APPROVED AS TO FORM: Anita Burgess, City Attorney __________________________________________ ACKNOWLEDGMENTS State of Texas § Denton County § This instrument was acknowledged before me on the _____ day of November, 2016 by _________________________ \[name of officer\] as ____________________ \[title\] of Eagle Farms, Inc., a Texas corporation, on behalf of said corporation. __________________________________________ Notary Public, State of Texas After recording, return to: Real Estate and Capital Support City of Denton Service Center Complex 901-B Texas St. Denton, Texas 76209 _____________________________________________________________________________________________ Page 4 of 4 - Special Warranty Deed (Eagle Farms-Porter Auto Sales) EXHIBIT A TO SPECIAL WARRANTY DEED LEGAL DESCRIPTION OF PROPERTY EXHIBIT B TO SPECIAL WARRANTY DEED EXCEPTIONS TO CONVEYANCE AND WARRANTY City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1182,Version:1 Agenda Information Sheet DEPARTMENT:Engineering Services CM/ ACM:Jon Fortune Date:September 13, 2016 SUBJECT ConsideradoptionofanordinanceapprovingaDevelopmentAgreementbetweentheCityofDentonand JustlandDevelopmentLLC,concerningtheuseofCitypropertyfortemporarystormwaterfacilitiesand constructionaccessfortheproposeddevelopmentofMeadowOaksSubdivision,Phase4,untilthepermanent RuddellStreetStormwaterFacilitiesareinstalled;grantingtemporarydrainageandconstructionaccess easementsinexchangeforthedeveloperprovidingtotheCityaconveyanceoflandinfee;providingforthe developertopayanyadditionalcostsofdesignandconstructionofapermanentstormwaterpipingsystem requiredtoaccommodatethedevelopmentstormwaterdischarge;requiringaperformancebondorlettersof credit;authorizingtheCityManagertoexecutetheagreementandeasements;andprovidingforaneffective date. BACKGROUND ThedeveloperofMeadowOaksSubdivision,Phase4(anewsubdivisionlyinguphillandeastoftheCity’s ServiceCenterproperty,northofPacoTrailandwestofAutumnOakDrive)hasproposedtoCitystaffa potentialjointstormwaterprojectwiththeCity’sRuddellStreetExtensionproject.TheRuddellStreet Extension Project will require fairly extensive stormwater facilities. Basically,thedeveloperproposestoconnecthisstormwatersystemtotheCity’sRuddellStreetextension stormwater system and have the City accommodate his development’s stormwater runoff in exchange for: Aheavilytreedstripofland(0.6acres),whichcouldserveasavegetativescreenoftheCity’sService Centerusesfromadjacentresidentialdevelopment(ascompensationoftemporarydrainageuseofCity property and a contribution to City improvements to the main drainage channel serving the area) ForfeitinganyrightstofutureabandonmentofthecurrentlyclosedLattimoreSt.right-of-wayalongthe southandeastsidesoftheCity’sproperty,whichwouldallowtheCitytoabandonthisright-of-wayand utilize it for future Service Center uses. PaymentofalldesignandconstructioncostincreasestotheCity’splannedstormwaterpipingsystem caused by the addition of his development’s stormwater. In return, the City would provide: Atemporarydrainageeasementacross4.402acresofCitypropertyuntilsuchtimeastheCity’s Ruddell St. Extension stormwater system can connect to the development’s outfall. A20ft.widetemporaryconstructionaccesseasement(0.198acre)acrossthesouthernendoftheCity’s City of DentonPage 1 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1182,Version:1 property(withinthetemporarydrainageeasement)betweenRuddellSt.andtheproposeddevelopment,to avoidmovingheavyconstructionequipmentandtrucksthroughadjacentneighborhoodstreetsduring construction of the public infrastructure (utilities, drainage and streets) for the development. DesignandconstructionofaRuddellSt.Extensionstormwatersystemthatwouldaccommodatethe development stormwater runoff. Thedeveloperwouldgainanestimated5additionallotswithinhisdevelopment;thusprovidingadditional future City tax base. OPTIONS 1.ApprovetheordinanceapprovingthedevelopmentagreementandauthorizingtheCityManagerto execute the agreement and two requested temporary easements. 2.Decline to approve the development agreement. RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED SCHEDULE OF PROJECT It is anticipated the temporary drainage easement would be in effect for approximately 2 yrs., while awaiting completion of the City’s Ruddell St. Extension’s permanent stormwater system to connect to the development’s stormwater outfall. It is anticipated the temporary construction access easement would be in effect for approximately 1 yr., during the time the development infrastructure is being constructed. The City has no plans to utilize the affected property during that time. PRIOR ACTION/REVIEW (Council, Boards, Commissions) August9,2016-WorkSessionbriefingtotheCouncilontheRuddellStreetExtensionProjectandtheconcept of this request. FISCAL INFORMATION ItisanticipatedthattheCitywillbereimbursedforalladditionalexpendituresrequiredbytheproposed development agreement. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Public Infrastructure Related Goal:2.4 Manage drainage infrastructure EXHIBITS 1.Project Map 2.Proposed Development Agreement 3.Proposed Temporary Easements City of DentonPage 2 of 3Printed on 9/9/2016 powered by Legistar© File #:ID 16-1182,Version:1 4.Ordinance Respectfully submitted: John T. Davis, PE Director of Engineering Services City of DentonPage 3 of 3Printed on 9/9/2016 powered by Legistar© DEVELOPMENT AGREEMENT BETWEEN CITY OF DENTON AND JUSTLAND DEVELOPMENT, LLC This Development Agreement (this “Agreement”) is made and entered into as of the _____ of ____________, 2016 (the “Effective Date”), by and between the City of Denton, Texas, a Texas Municipal Corporation (the “City”), and Justland Development, LLC, a Texas limited liability company, whose principle place of business is located at 4440Brentwood Drive, College Station, Texas 77845 (“Developer”). The City and Developer are sometimes hereinafter referred to individually as “Party”, and collectively as the “Parties”. WHEREAS, Sec. 212.071 of the Tex. Loc. Gov’t Code authorizes the City to enter into a written agreement with a developer of a subdivision or land in the city to construct public improvements related to the development of the land and to participate in the cost related to same; and WHEREAS, Developer desires to develop approximately 8.713 Acres of land located at A0055a J. Brock Tr 27, R33446, and more commonly known as 1005 Autumn Oak Drive, Denton, Texas, and owned by Owner, as described in Exhibit A, which is attached hereto and incorporated by reference herein (“Property”); and WHEREAS, the Developer desires to develop the Property as Meadow Oaks, Phase 4, a residential subdivision (the “development”) which will require either new drainage facilities or improvement of existing drainage facilities necessary to provide for the storm water drainage needs of the development; and WHEREAS, the City owns approximately 10.57 acres of land located at A0055a J. Brock, Tr 34, 35 and 36, R33449, R33451 and R33447, more commonly known as 1100, 1022 and 1000 Ruddell St, Denton, Texas, respectively, as described in Exhibit B, which is attached hereto and incorporated by reference herein, and which is adjacent to the Property across Lattimore Street (“City Property”); and WHEREAS, the additional storm water runoff from the development may adversely affect off-site property or overload existing drainage facilities and therefore drainage facilities are required on the Property in compliance with the Denton Development Code; and WHEREAS, Developer has requested to vary the requirement for on-site drainage facilities on the Property required by the City, and the City and Developer have determined that development of joint storm water facilities is of mutual benefit; and WHEREAS, the City and Developer agree that the City should not be responsible for any improvements above and beyond what the City would normally construct for its Ruddell Street Extension Project; and WHEREAS, the Developer must design, construct, and maintain temporary storm water facilities and the City has directed these facilities can be constructed on the City Page 1 of 10 Property until the City can complete its Ruddell Street Extension improvements and permanent storm drainage connections are installed as described herein, and the City agrees to such design, construction, and maintenance on City Property for consideration stated herein; and WHEREAS, the Developer has requested the City grant a temporary construction access easement across a part of its property between Ruddell St. and the Property, to provide access for construction equipment and related vehicles during construction of the development’s infrastructure in order to avoid such heavy traffic from traversing through neighborhood streets, and NOW THEREFORE, the City and Developer, in consideration of the mutual covenants and agreements of the Parties herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree as follows: ARTICLE I Terms 1.01 Governing Development Regulations. (a) Development of the Property shall be governed by: (i) the Final Plat and construction plans; (ii) the Denton Development Code (the “DDC”) in effect; and (iii) the Zoning Regulations for the Property within the City limits. These shall be hereinafter referred to collectively as the “Governing Regulations”. The Governing Regulations shall control to the extent they do not conflict with the terms of this Agreement, in which case the Agreement controls. It is agreed and understood that no ordinance or regulation adopted by the City after the Effective Date shall in any manner impair Owner’s rights under this Agreement provided that: (1) any ordinance or regulation exempted by Chapter 245 of the Texas Local Government Code may be enforced on the Property; and (2) ordinances or regulations adopted pursuant to a requirement of State or Federal law may be enforced on the Property. 1.02Other City Ordinances. Except as expressly excluded or made inapplicable by the Governing Regulations or this Agreement, all other ordinances or criteria of the City shall apply to the Property. 1.03 Plat Approval. A Final Plat for all or any portion of the Property shall be filed in accordance with Sec. 35.16.12 of the Denton Development Code. Final approval of the plat is made by the Planning and Zoning Commission and cannot be appealed. The Final Plat shall be in substantial compliance with the Governing Regulations and this Agreement. 1.04 Developer’s Responsibility. The Developer shall be responsible for the following: 1.04.1Temporary Stormwater Facilities (TSF). The Developer shall design, construct and maintain the Temporary Stormwater Facilities as proposed on the “Temporary Sediment Control and Storm Drain Outfall,” attached as Exhibit C hereto and incorporated herein, including temporary stormwater sediment removal and stormwater surface discharge systems, in locations acceptable to the City, at Developer’s cost, and in accordance with the Governing Regulations and any other applicable regulations or law and as follows: Page 2 of 10 1.04.1.1The TSF shall be in place until such time as construction of the permanent Ruddell St. Extension Stormwater System Project, a 2014 Bond Program project, (the City’s “Ruddell Project”) is completed, and the TSF is replaced with permanent connections to the Ruddell Street Extension Stormwater System (“RSS”). 1.04.1.2For any portion of the TSF that is placed on City Property, the Developer must obtain an easement from the City for the use of City Property and for construction of those facilities. 1.04.1.3 The Developer shall ensure that no erosion occurs or sediment is deposited on the City Property. 1.04.1.4 Developer shall pay the costs of removing the TSF and related drainage pipes and restoring the City Property to the same condition as it existed prior to the execution of this Agreement once the permanent RSS is in place and a connection is made, and once the Ruddell Project is completed. Such work shall be included in the City’s Ruddell Project request for proposal, with the costs being based on bid prices received for that project. 1.04.2 Permanent Stormwater Piping System. Developer shall design and prepare construction plans for the appropriate stormwater outfall pipes to connect the development outfall to the RSS, in a manner acceptable to the City. The Developer is responsible for the costs of construction of these pipes and the additional costs of design and construction of the affected parts of the RSS, from the point of connection of the development’s stormwater system to the RSS to the point of discharge of the RSS to the main drainage channel crossing the City Property, as determined by the City and based on design costs and bid prices for the Ruddell Project. 1.04.3 Developer shall pay for any other additional costs to the City associated with the estimation of costs required under this Agreement, the verification of storm water computations, the design of any storm drain and stormwater facilities required by the Governing Regulations or other law, and any other reasonable costs incurred by the City to accommodate the stormwater outfall and drainage for the development. 1.04.4 Other Consideration. Developer agrees to the following additional consideration: 1.04.4.1 Developer shall provide an irrevocable bank letter of credit or other surety acceptable to the City, as that amount is determined by the City Engineer, to cover the estimated costs of the Developer Responsibilities in this Agreement other than the design, Page 3 of 10 construction, and maintenance of the TSF and the storm water outfall pipes in accordance with Section 1.06 herein. 1.04.4.2 Upon recording of the Final Plat, the Owner of the Property shall transfer ownership of good title in fee of Lot 1, Block D of the Property to the City free of all encumbrances, as either complete or partial consideration of the City’s grant of Temporary Easement for the TSF and design, construction and negligible oversizing of a detention pond or downstream main channel improvements. In the event that oversizing more than 30% over the amount attributable to the City Property becomes necessary, Developer agrees to pay those costs. If the value of the transferred property is less than the value of the City’s Temporary Easement for the TSF and design, construction and negligible oversizing of a detention pond or downstream main channel improvements, Developer shall be responsible for paying the difference in value. 1.04.4.3 Upon execution of this Agreement, Developer shall transfer any and all rights to any claim, whether past or future, known or unknown, if any, of the abandoned right-of-way on Lattimore Street, from the NW corner of the development southerly to the SW corner of the development, to the City. 1.04.4.4 Costs described herein, as included in the City’s Ruddell Project construction bid, shall be deposited with the City by the Developer within thirty (30) calendar days of the bid receipt by the City. Standard City inspection fees shall be included in that amount. Final adjustment of the costs based on actual costs incurred by the City will be made within thirty (30) calendar days of completion and acceptance of said construction. Any deposited amounts in excess of the actual costs incurred shall be returned to the Developer within a reasonable time. Any deficiencies in the deposited amounts to cover the actual costs incurred shall immediately be paid by the Developer. 1.04City’s Responsibilities. The City agrees to the following: 1.05.1For consideration herein, City will provide a Temporary Stormwater Easement to the Developer for the TSF and a Temporary Construction Access Easement on the City Property within ten (10) days of the approval of the Final Plat, as depicted in Exhibits D and E. These Easements shall not be exclusive and the City retains the right to perform activities not required by the TSF or stormwater outfall. Such Temporary Stormwater Easement will expire and revert back to the City once the TSF is removed. Such Temporary Construction Access Easement will expire and revert back to the City upon City acceptance of the development’s public infrastructure. 1.05.2City shall include the construction of items in the Ruddell Project roadway bid as described in this Agreement. Page 4 of 10 1.05.3City shall estimate the costs of design, construction and removal of temporary stormwater facilities to be paid for by the Developer in satisfaction of the Developer Responsibilities as described in this Agreement, based on bid prices received by the City for the Ruddell Street Extension Project and related work. 1.05.4City shall verify drainage computations provided by the Developer for stormwater from the development and shall design the RSS to accommodate the development’s storm water. 1.06 Performance Bond or Letters of Credit. Pursuant to Sec. 212.073 of the Texas Local Government Code, the Developer shall present to the City either a cash escrow, Letters of Credit or performance bond and payment bond acceptable to the City guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all of the facilities to be constructed by the Developer, and providing for payment to the City of such amounts, up to the total remaining amounts required for completion if the Developer fails to complete the work within two (2) years of the signing of this Agreement between the City and Developer. All bonds shall be issued by a Best-rated bonding company. All Letters of Credit must meet the Requirements for Irrevocable Letter of Credit attached hereto and incorporated herein. 1.06.1 The Developer agrees to furnish or to cause its contractor to furnish to the City maintenance bonds, letters of credit or cash escrow amounting to 100% of the cost of construction of underground utilities and 100% of the construction cost for paving. These maintenance bonds, letters of credit or cash escrow will be for a period of two (2) years and will be issued prior to the final City Acceptance. The maintenance bonds, letters of credit or cash escrow will be supplied to the City by the contractors performing the work, and the City will be named as the beneficiary if the contractors fail to perform any required maintenance. 1.06.2Until performance and payment bonds, Letters of Credit or cash escrow required in this Agreement have been furnished as required, no approval of work on the facilities shall be given by City and no work shall be initiated on said facilities by Developer, save and except as provided above. 1.07Regulation. Except as may be provided by the Governing Regulations, this Agreement or as otherwise agreed to in writing by the Parties, all facilities shall be built in accordance with the applicable requirements of the City, County, or International Fire Code 2012. All facilities necessary to support the proposed Development shall be designed by a professional engineer licensed in the State of Texas. Plans and specifications shall conform to the criteria contained in Denton’s Criteria Manuals. The Developer will be responsible for the design, construction, and maintenance of facilities on the Property. Developer shall obtain, at Developer’s expense, all necessary permits, licenses and easements. 1.08Dedication of Improvements. Any easements for facilities obtained by Developer shall be assigned and dedicated to the City, if not taken in the City’s name, prior to acceptance of the improvements. Page 5 of 10 1.09 City shall not, in any case, be liable for any additional cost because of delays in beginning, continuing or completing construction; changes in the price or cost of materials, supplies, or labor; unforeseen or unanticipated cost because of topography, soil, subsurface, or other site conditions; differences in the calculated and actual per linear feet of pipe or materials needed for the facilities; Developer's decision as to the contractors or subcontractors used to perform the work; or any other reason or cause, specified or unspecified, relating to the construction of the oversized facilities. 1.10 City shall have access to inspect Developer’s books and other records related to this Agreement. To determine the actual cost of the facilities, City shall have the right to inspect any and all records of Developer, its agents, employees, contractors or subcontractors and shall have the right to require Developer to submit any necessary information, documents, invoices, receipts or other records to verify the actual cost of the facilities. 1.11 Recording; Notice to Third parties. This Agreement shall be recorded in the real property records of each county in which any part of the Property is located. By recording this Agreement in the Denton County Deed Records, the Developer hereby places all third parties on notice that the Property is subject to the requirements as described herein. 1.12 Default. Notwithstanding anything herein to the contrary, no Party shall be deemed to be in default hereunder until the passage of thirty (30) business days after receipt by such party of notice of default from the other Party. Upon the passage of thirty (30) business days without cure of the default, such Party shall be deemed to have defaulted for all purposes of this Agreement. In the event of a non-cured default, the non-defaulting Party shall have all the rights and remedies available under applicable law, including the right to institute legal action to cure any default, to enjoin any threatened or attempted violation of this Agreement, or to enforce the defaulting Party’s obligations under this Agreement by specific performance. 1.13INDEMNITY/HOLD HARMLESS. BECAUSE PROCEEDING IN THIS MANNER IS AN OPTION REQUESTED BY THE DEVELOPER TO MOVE FORWARD WITH ITS DEVELOPMENT WITHOUT ONSITE DRAINAGE FACILITIES, DEVELOPER AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS, AND ASSIGNS FROM ANY AND ALL COSTS DEVELOPER MAY INCUR AS A CONSEQUENCE OF PROCEEDING IN THIS MANNER AND AGREES TO ASSUME ALL RISKS ARISING THEREFROM. DEVELOPER ADDITIONALLY AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS AND ASSIGNS FROM ANY AND ALL DAMAGES, CLAIMS OR LIABILITY OF ANY KIND WHATSOEVER AND BROUGHT BY ANY PARTY OR THIRD PARTY, ASSOCIATED WITH DENIAL OF ANY REQUESTED PERMIT OR CERTIFICATE OF OCCUPANCY OR WITH THE CONSTRUCTION OF ANY IMPROVEMENTS CONTEMPLATED HEREIN, INCLUDING BUT NOT LIMITED TO PERSONAL INJURY OR DEATH. Page 6 of 10 1.14Rough Proportionality. Developer stipulates to the nexus and proportionality of the public improvements made subject of this Agreement, regardless of whether they were known, quantified or anticipated at the time this Agreement was executed. ARTICLE II Miscellaneous 2.01Assignment. As of the Effective Date, Developer owns the Property. Developer may assign its rights and obligations under this Agreement to any third party (ies) after having first obtained the prior written consent of the City hereto; provided however that a written copy of said assignment shall be delivered to the City. Notwithstanding the above, no prior written consent shall be required for Developer to sell, lease, grant interests in or rights to or otherwise transfer or encumber portions of the Property that it owns, together with the assignment of all development rights and obligations relating to such portions of the Property that it owns contained in this Agreement. The terms of this Agreement shall be covenants running with the land and binding on successors and assigns. 2.02Amendments. This Agreement may be amended at any time by mutual written agreement of the City and Developer. 2.03 Cooperation. The Parties agree to execute and deliver all such other and further documents or instruments and undertake such other and further actions as are or may become necessary or convenient to effectuate the purposes and intent of this Agreement. 2.04 Litigation. In the event of any third-party lawsuit or other claim relating to the validity of this Agreement or any action taken by the parties hereunder, Developer and the City agree to cooperate in the defense of such suit or claim, and to use their respective best efforts to resolve the suit or claim without diminution of their respective rights and obligations under this Agreement. 2.05 Governmental Powers; Waiver of Immunity. It is understood that by execution of this Agreement, the City does not waive or surrender any of its governmental powers, immunities or rights. Nothing in this section shall waive any claims, defenses or immunities that the City has with respect to suits against the City by persons or entities not a party to this Agreement. 2.06 Applicable Law and Venue. This Agreement shall be interpreted in accordance with the laws of the State of Texas. Venue shall be in Denton County, Texas. 2.07 Attorney’s Fees. If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing Party shall be entitled to recover reasonable attorney’s fees from the other Party. The amount of fees recoverable under this paragraph may be set by the court in the trial of the underlying action or may be enforced in a separate action brought for that purpose, and any fees recovered shall be in addition to any other relief that may be awarded. Page 7 of 10 2.08 Notices. Any notice to be given hereunder by any Party to another Party shall be in writing and may be affected by personal delivery or by sending said notice by registered or certified mail, return receipt requested, to the address set forth below. Notice shall be deemed given when deposited with the United States Postal Service with sufficient postage affixed. Any notice mailed to the City shall be addressed to: City of Denton c/o Director of Engineering 215 E. McKinney St. Denton, Texas 76201 With a Copy to: Denton City Attorney’s Office Denton City Hall Main 215 E. McKinney St. Denton, Texas 76201 Any notice mailed to Developer shall be addressed to: Justland Development LLC c/o _________________ 4440 Brentwood Dr. College Station, Texas 77845 Any party may change the address for notice to it by giving notice of such change in accordance with the provisions of this section. 2.09 Entire Agreement. This Agreement, together with any exhibits attached hereto, constitutes the entire agreement between the Parties and supersedes any prior or contemporaneous oral or written understandings or representations of the Parties with respect to the subject matter herein contained. 2.10 Severability. If any sentence, section, subsection, clause, phrase, part or provision of this Agreement be declared by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect the same shall not affect any other provisions of this Agreement as a whole, or any part thereof, other than the part declared to be invalid, illegal or unenforceable. 2.11 Interpretation. This Agreement shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity hereof. Wherever required by the context, the singular shall include the plural, and the plural shall include the singular. Each defined term herein may be used in its singular or plural form whether or not so defined. Page 8 of 10 2.12 Authority. The City represents and warrants that this Agreement has been approved and duly adopted by the City Council of the City in accordance with all applicable public meeting and public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the City has been authorized to do so. Developer represents and warrants that this Agreement has been approved by appropriate action of Developer and that the individual executing this Agreement on behalf of Developer has been authorized to do so. Developer further represents and warrants that the lien holder of record, if any, has consented to terms of the agreement. The Parties hereto have executed this Agreement as of _______ day of _____________, 2016. DEVELOPER: JUSTLAND DEVELOPMENT LLC BY: _______________________ ITS: _______________________ THE CITY OF DENTON, TEXAS: By: ________________________ HOWARD MARTIN INTERIM CITY MANAGER THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ___________________, 2016, by _________________. _________________________________ Notary Public, State of Texas THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ____________, 2016, by Howard Martin, Interim City Manager, on behalf of the City of Denton, Texas. Page 9 of 10 ________________________________ Notary Public, State of Texas APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ Page 10 of 10 TEMPORARY DRAINAGE EASEMENT NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT, the City of Denton, Texas, a Texas Municipal Corporation (the “City” or “Grantor”), for and in consideration of the sum of ONE DOLLAR and NO CENTS ($1.00) and other good and valuable consideration to Grantor paid by Justland Development, LLC, a Texas limited liability company, whose principal place of business is located at 4440 Bentwood Drive, College Station, Texas 77845 (“Grantee”), the receipt and sufficiency of which are hereby acknowledged, does by these presents grant, bargain, sell and convey to the Grantee, the free and uninterrupted use, liberty, and privilege of passage, in, along, upon and across certain property, owned by Grantor and situated at A0055a J. Brock, Tr 36, R33447, more commonly known as 1000 Ruddell St., Denton, Texas, and being more particularly described in and depicted on Exhibit “A” and Exhibit “B” both of which are attached hereto and made a part hereof by reference as if fully set forth herein (the “Easement Property”), for a period as defined below and not to exceed three (3) years from the Effective Date of this easement. The easement rights granted herein shall continue from the Effective Date of this easement until the earlier of the following (the “Effective Term”): A.Construction of the permanent Ruddell Street Extension Stormwater System Project, a 2014 Bond Program project, is completed and the Temporary Drainage Facilities specified below are replaced with permanent connections to the Ruddell Street Extension Stormwater System; or B.Three (3) years from the effective date of this easement. Upon the occurrence of the earlier of the above conditions, this easement shall ipso facto terminate and all rights shall revert to Grantor. Grantee shall have sixty (60) days following the termination of this easement to remove all Temporary Drainage Facilities from the Easement Property and restore the property to its “before” condition, acceptable to the City. It is further agreed that Grantee will have the right to complete the construction of the below described Temporary Drainage Facilities and maintain same (including cutting of vegetation adjacent to the temporary stormwater facilities and erosion control) during the Effective Term. The easement rights granted herein are for the purpose of constructing, installing, repairing, and maintaining a Temporary Sediment Control and Storm Drain Outfall as identified on Exhibit B (“Temporary Drainage Facilities”) and for the flow of water from the Temporary Drainage Facilities over the Easement Property, said Temporary Drainage Facilities to be located in, along, upon and across said Easement Property, with the right and privilege of Grantee herein, its agents, Page 1 of 6 employees, workmen and representatives to have ingress, egress, and regress in, along, upon and across the Easement Property for the purpose of constructing, installing, repairing, maintaining, and removing the Temporary Drainage Facilities or any parts thereof. Grantor shall have no obligation to construct or maintain the Temporary Drainage Facilities but reserves the right to construct such infrastructure improvements upon and utilize the Easement Property so long as such actions do not unreasonably interfere with the rights granted herein. The grant of easement rights hereunder is made subject to any of the following as they relate to the Easement Property: (i) any and all restrictions, covenants, easements, tenancies, and other encumbrances of whatsoever nature and (ii) all zoning laws, regulations and ordinances of municipal and other governmental authorities. The easement for the Easement Property as provided for herein is made on an “AS IS” basis, and Grantee expressly acknowledges that, in consideration of the agreements of Grantor, Grantor MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW. Grantee, at its sole cost and expense, shall perform all work necessary in connection with the Temporary Drainage Facilities (the “Work”) in a good and workmanlike manner in conformance with sound and acceptable engineering practices as expeditiously as possible. In performing the Work or causing the Work to be performed, Grantee shall make adequate provisions for the safety and convenience of Grantor, its agents, representatives, employees, licensees, and invitees, and shall cause all of the Work to be cleaned up promptly in order to minimize disruption or inconvenience. Grantee shall at all times construct, keep, maintain, use, operate or remove the Temporary Drainage Facilities in a safe manner and in full compliance with all applicable federal, state, municipal, or other laws, statutes, codes, restrictions, regulations, ordinances and orders. GRANTEE AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS, AND ASSIGNS FROM ANY AND ALL COSTS GRANTEE MAY INCUR AS A CONSEQUENCE OF GRANTEE’S USE OF THE EASEMENT PROPERTY AND/OR WORK RELATED TO THE TEMPORARY DRAINAGE FACILITIES AND AGREES TO ASSUME ALL RISKS ARISING THEREFROM, INCLUDING, BUT NOT LIMITED TO, DAMAGES OR CLAIMS ARISING FROM THE FLOODING OF PROPERTIES ADJACENT TO THE EASEMENT PROPERTY DUE TO GRANTEE’S EXERCISE OF EASEMENT RIGHTS. GRANTEE ADDITIONALLY AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS AND ASSIGNS FROM ANY AND ALL DAMAGES, CLAIMS OR LIABILITY OF ANY KIND WHATSOEVER AND BROUGHT BY ANY PARTY OR THIRD PARTY ASSOCIATED WITH DENIAL OF ANY REQUESTED PERMIT OR CERTIFICATE OF OCCUPANCY OR WITH THE CONSTRUCTION OF ANY TEMPORARY DRAINAGE FACILITIES CONTEMPLATED HEREIN, INCLUDING, BUT NOT LIMITED TO, PERSONAL INJURY OR DEATH. Page 2 of 6 Grantee shall provide or cause to be provided the insurance described below for the Work, and shall maintain such insurance until such Temporary Drainage Facilities are removed and the site restored, except as otherwise required by this Section. A.Prior to the commencement of the Work, Grantee shall furnish the City with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements set forth below. A copy of the endorsements or other policy provisions adding the City as an additional insured to the insurance policies, endorsements providing the City thirty (30) days written notice of cancellation or material change in coverage, and all waivers of subrogation shall be attached to the certificate(s) of insurance. Upon request, certified copies of the insurance policies shall be furnished to the City. The City’s acceptance of documents that do not reflect the required insurance, or the City’s failure to request insurance documents, shall not constitute a waiver of the insurance requirements set forth in this easement. B.In the event any insurance required by this easement is cancelled, the easement will immediately terminate, triggering the termination provisions herein. C.Grantee shall provide the City thirty (30) days written notice of any cancellation, non- renewal, or material change in policy terms or coverage, and the policies shall be endorsed to provide the City such notice. D.All insurance policies shall be written by an insurer authorized to do business in Texas and with companies with a VIII or better rating in accordance with the current Best’s Key Rating Guide, or with such other financially sound insurance carriers approved by the City. E.All insurance policies, with the exception of the worker’s compensation policy, shall be endorsed to name the City, its officials, employees, agents and volunteers as additional insured on the policies. The additional insured coverages shall apply as primary insurance with respect to any other insurance or self-insurance programs maintained by the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City as evidence of coverage. F.All insurance policies shall be endorsed with a waiver of subrogation in favor of the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City. G.All insurance policies shall be written on an occurrence basis where commercially available. H.During the Effective Term of this Temporary Drainage Easement, Grantee shall report, in a timely manner, to the City any known loss or occurrence which has caused, or may cause in the future, bodily injury or property damage. I.Required Insurance Coverages: a.Commercial General Liability Insurance: Grantee shall maintain commercial general liability (CGL) insurance with a limit of not less than one million dollars ($1,000,000) each occurrence with a two million dollars ($2,000,000) aggregate. This insurance shall cover liability, including, but not limited to, liability arising from premises, operations, the Work performed by Grantee within the Easement Area, Temporary Drainage Facility operations, contractual liability, broad form property damage, and independent contractors. Page 3 of 6 b.Environmental Impairment (or Pollution Liability) Insurance: Grantee shall maintain environmental impairment or pollution liability insurance with a limit of not less than five million dollars ($5,000,000). Such coverage shall not exclude damage to the Easement Property. If coverage is written on a claims- made basis, Grantee shall maintain continuous coverage or purchase tail coverage for four (4) years following the expiration or termination of this Temporary Drainage Easement. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. Where commercially available, Grantee shall also maintain such coverage for gradual pollution incidents. c.Automobile Liability Insurance: Grantee shall maintain automobile liability insurance with a limit of not less than one million dollars ($1,000,000) each accident. Such insurance shall cover liability arising out of any automobile utilized by Grantee in its operations regarding the Easement Property (including owned, non-owned, and hired automobiles). d.Worker’s Compensation Insurance: Grantee shall maintain worker’s compensation and employer’s liability insurance. The worker’s compensation limits shall be as required by statute and employer’s liability limits shall not be less than one million dollars ($1,000,000) each accident for bodily injury by accident and one million dollars ($1,000,000) each employee for bodily injury by disease. e.Excess (or Umbrella) Liability Insurance: Grantee shall maintain excess (or umbrella) liability insurance with a limit of not less than twenty-four million dollars ($24,000,000) per occurrence with a twenty-four million dollar ($24,000,000) aggregate. Such insurance shall be in excess of the commercial general liability insurance, automobile liability insurance and employer’s liability insurance as specified above. TO HAVE AND TO HOLD unto the said Justland Development, LLC as aforesaid for the purposes and during the time as above described. Page 4 of 6 Witness my hand to be effective this ____ day of ___________________, 2016 (“Effective Date”) GRANTOR: THE CITY OF DENTON, TEXAS: By: ________________________ HOWARD MARTIN INTERIM CITY MANAGER THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ____________, 2016, by Howard Martin, Interim City Manager, on behalf of the City of Denton, Texas. ________________________________ Notary Public, State of Texas Page 5 of 6 GRANTEE: JUSTLAND DEVELOPMENT, LLC: By: ________________________ Its: ________________________ THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ____________, 2016, by ________________, ________________, on behalf of Justland Development, LLC. ________________________________ Notary Public, State of Texas APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:_________________________________ Page 6 of 6 PAGE 1 OF 2 ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE J. BROCK SURVEY, ABSTRACT NUMBER 55, CITY OF DENTON, DENTON COUNTY, TEXAS, BEING PART OF A CALLED TRACT TWO, 17.251 ACRE TRACT OF LAND, DESCRIBED IN A DEED TO THE CITY OF DENTON, RECORDED IN COUNTY CLERK DOCUMENT NUMBER 2003-R0053036,REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING A VARIABLE WIDTH TEMPOARY DRAINAGE EASEMENT MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED "10023300" AT THE SOUTHWEST CORNER OF SAID CITY OF DENTON TRACT, BEING THE NORTH WEST CORNER OF A TRACT DESCRIBED IN A DEED TO MARGARET LOVETTE, 00-R0086631, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS AND ON EAST RIGHT-OF-WAY LINE OF RUDDELL STREET. THENCE NORTH 00 DEGREES 45 MINUTES 08 SECONDS EAST WITH THE WEST LINE OF SAID CITY OF DENTON TRACT AND WITH THE EAST RIGHT-OF-WAY LINE OF RUDDELL STREET,A DISTANCE OF 447.98 FEET TO A POINT FOR A CORNER. THENCE NORTH 89 DEGREES 55 MINUTES 00 SECONDS EAST, A DISTANCE OF 428.18 FEET TO A 1/2 INCH IRON PIN FOUND ON THE EAST LINE OF SAID CITY OF DENTON TRACT BEING THE NORTHWEST CORNER OF SAID LOVETTE TRACT. THENCE SOUTH 00 DEGREES 13 MINUTES 09 SECONDS WEST,WITH THE EAST LINE OF SAID CITY OF DENTON TRACT AND THE WEST LINE OF SAID LOVETTE TRACT,A DISTANCE OF 443.40 FEET TO A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED "10023300" AT THE SOUTHEAST CORNER OF THE SAID CITY OF DENTON TRACT AND THE INNER ELL CORNER OF SAID LOVETT TRACT. THENCE SOUTH 89 DEGREES 18 MINUTES 56 SECONDS WEST, WITH THE SOUTH LINE OF SAID CITY OF DENTON TRACT AND THE NORTH LINE OF SAID LOVETT TRACT A DISTANCE OF 432.40 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 4.402 ACRES OF LAND. FIRM #10023300 TEMPORARY SEDIMENT CONTROL AND STORM DRAIN OUTFALL EXHIBIT info@ae-grp.com F-7898Registration Number: CITY OF DENTON, DENTON COUNTY, TEXAS Professional Engineers Texas Board of MEADOW OAKS - PHASE 4 FAX (940) 380-9431 FINAL PLAT Phone (940) 380-9453 DENTON, TEXAS 76207 McCLINTOCK HOMES 4401 N. I-35, SUITE 102 P:\\Projects\\GEL1501 - Meadow Oaks Ph 3\\DWG\\Exhibits\\2016-07-28_FP STORMCEPTOR.dwgFile Name:Thursday, August 04, 2016 3:34:56 PMSave Date:Allison.ctbPlot Style Table:Thursday, August 04, 2016 3:48:29 PMPlot Date: Justin MoellerPlotted By: TEMPORARY CONSTRUCTION ACCESS EASEMENT NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT, the City of Denton, Texas, a Texas Municipal Corporation (the “City” or “Grantor”), for and in consideration of the sum of ONE DOLLAR and NO CENTS ($1.00) and other good and valuable consideration to Grantor paid by Justland Development, LLC, a Texas limited liability company, whose principal place of business is located at 4440 Bentwood Drive, College Station, Texas 77845 (“Grantee”), the receipt and sufficiency of which are hereby acknowledged, does by these presents grant, bargain, sell and convey to the Grantee, the free and uninterrupted use, liberty, and privilege of passage, in, along, upon and across a twenty foot (20’) wide strip on certain property, owned by Grantor and situated at A0055a J. Brock, Tr 36, R33447, more commonly known as 1000 Ruddell St., Denton, Texas, and being more particularly described in and depicted on Exhibit “A”, attached hereto and made a part hereof by reference as if fully set forth herein (the “Easement Property”), for a period as defined below and not to exceed one (1) year from the Effective Date of this easement. The easement rights granted herein shall continue from the Effective Date of this easement until the earlier of the following (the “Effective Term”): A.Construction of the permanent public infrastructure improvements for the Meadow Oaks, Phase 4 subdivision is completed and accepted by Grantor; or B.One (1) year from the effective date of this easement. Upon the occurrence of the earlier of the above conditions, this easement shall ipso facto terminate and all rights shall revert to Grantor. Grantee shall have sixty (60) days following the termination of this easement to remove all added materials, whether for construction or access, from the Easement Property and to restore the Easement Property to the same condition in which it existed prior to Grantee’s use. It is further agreed that Grantee will have the right to complete the construction of a Temporary Access Road within the Easement Property and maintain same during the Effective Term. Grantee shall stabilize and maintain the Easement Property during the Effective Term to protect against rutting and erosion. The easement rights granted herein are for the purpose of access and constructionactivities to be located in, along, upon and across said Easement Property, with the right and privilege of Grantee herein, its agents, employees, workmen and representatives to have ingress, egress, and regress in, along, upon and across the Easement Property for the purpose of access and construction or any parts thereof. Grantee shall have the right, at Grantee’s sole cost and expense, to trim or Page 1 of 6 remove trees or shrubbery within the Easement Property, to the extent it is necessary to prevent possible interference with the efficiency, safety, or operation of temporary access and/or the Temporary Access Road. Grantee’s agrees that all construction traffic shall access Ruddell Street, and ultimately the Easement Property, from Mingo Road, avoiding the neighborhood to the south of the Easement Property. Grantor shall have no obligation to construct within or maintain the Easement Property, or any temporary improvements constructed or desired by Grantee, but reserves the right to construct such infrastructure improvements upon and utilize the Easement Property so long as such actions do not unreasonably interfere with the rights granted herein. The grant of easement rights hereunder is made subject to any of the following as they relate to the Easement Property: (i) any and all restrictions, covenants, easements, tenancies, and other encumbrances of whatsoever nature and (ii) all zoning laws, regulations and ordinances of municipal and other governmental authorities. The easement for the Easement Property as provided for herein is made on an “AS IS” basis, and Grantee expressly acknowledges that, in consideration of the agreements of Grantor, Grantor MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW. Grantee, at its sole cost and expense, shall perform all work necessary in connection with the Temporary Access Road (the “Work”) in a good and workmanlike manner in conformance with sound and acceptable engineering practices as expeditiously as possible. In performing the Work or causing the Work to be performed, Grantee shall make adequate provisions for the safety and convenience of Grantor, its agents, representatives, employees, licensees, and invitees, and shall cause all of the Work to be cleaned up promptly in order to minimize disruption or inconvenience. Grantee shall at all times construct, keep, maintain, use, operate or remove the Temporary Access Road in a safe manner and in full compliance with all applicable federal, state, municipal, or other laws, statutes, codes, restrictions, regulations, ordinances and orders. GRANTEE AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS, AND ASSIGNS FROM ANY AND ALL COSTS GRANTEE MAY INCUR AS A CONSEQUENCE OF GRANTEE’S USE OF THE EASEMENT PROPERTY AND/OR WORK RELATED TO THE TEMPORARY ACCESS ROAD AND AGREES TO ASSUME ALL RISKS ARISING THEREFROM, INCLUDING, BUT NOT LIMITED TO, DAMAGES OR CLAIMS ARISING FROM THE FLOODING OF PROPERTIES ADJACENT TO THE EASEMENT PROPERTY DUE TO GRANTEE’S EXERCISE OF EASEMENT RIGHTS. GRANTEE ADDITIONALLY AGREES TO INDEMNIFY AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, OFFICIALS, AGENTS, SUCCESSORS AND ASSIGNS FROM ANY AND ALL DAMAGES, CLAIMS OR LIABILITY OF ANY KIND WHATSOEVER AND BROUGHT BY ANY PARTY OR THIRD PARTY ASSOCIATED WITH DENIAL OF ANY REQUESTED PERMIT OR CERTIFICATE OF OCCUPANCY OR WITH THE CONSTRUCTION OF ANY TEMPORARY ACCESS ROAD CONTEMPLATED HEREIN, INCLUDING, BUT NOT LIMITED TO, PERSONAL INJURY OR DEATH. Page 2 of 6 Grantee shall provide or cause to be provided the insurance described below for the Work, and shall maintain such insurance until such temporary access road is removed and the site restored, except as otherwise required by this Section. A.Prior to the commencement of the Work, Grantee shall furnish the City with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements set forth below. A copy of the endorsements or other policy provisions adding the City as an additional insured to the insurance policies, endorsements providing the City thirty (30) days written notice of cancellation or material change in coverage, and all waivers of subrogation shall be attached to the certificate(s) of insurance. Upon request, certified copies of the insurance policies shall be furnished to the City. The City’s acceptance of documents that do not reflect the required insurance, or the City’s failure to request insurance documents, shall not constitute a waiver of the insurance requirements set forth in this easement. B.In the event any insurance required by this easement is cancelled, the easement will immediately terminate, triggering the termination provisions herein. C.Grantee shall provide the City thirty (30) days written notice of any cancellation, non- renewal, or material change in policy terms or coverage, and the policies shall be endorsed to provide the City such notice. D.All insurance policies shall be written by an insurer authorized to do business in Texas and with companies with a VIII or better rating in accordance with the current Best’s Key Rating Guide, or with such other financially sound insurance carriers approved by the City. E.All insurance policies, with the exception of the worker’s compensation policy, shall be endorsed to name the City, its officials, employees, agents and volunteers as additional insured on the policies. The additional insured coverages shall apply as primary insurance with respect to any other insurance or self-insurance programs maintained by the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City as evidence of coverage. F.All insurance policies shall be endorsed with a waiver of subrogation in favor of the City, its officials, employees, agents and volunteers. A copy of each endorsement shall be provided to the City. G.All insurance policies shall be written on an occurrence basis where commercially available. H.During the Effective Term of this Temporary Construction and Access Easement, Grantee shall report, in a timely manner, to the City any known loss or occurrence which has caused, or may cause in the future, bodily injury or property damage. I.Required Insurance Coverages: a.Commercial General Liability Insurance: Grantee shall maintain commercial general liability (CGL) insurance with a limit of not less than one million dollars ($1,000,000) each occurrence with a two million dollars ($2,000,000) aggregate. This insurance shall cover liability, including, but not limited to, liability arising from premises, operations, the Work performed by Grantee within the Easement Area, temporary construction and access Page 3 of 6 operations, contractual liability, broad form property damage, and independent contractors. b.Environmental Impairment (or Pollution Liability) Insurance: Grantee shall maintain environmental impairment or pollution liability insurance with a limit of not less than five million dollars ($5,000,000). Such coverage shall not exclude damage to the Easement Property. If coverage is written on a claims- made basis, Grantee shall maintain continuous coverage or purchase tail coverage for four (4) years following the expiration or termination of this Temporary Construction and Access Easement. Coverage shall apply to sudden and accidental pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants. Where commercially available, Grantee shall also maintain such coverage for gradual pollution incidents. c.Automobile Liability Insurance: Grantee shall maintain automobile liability insurance with a limit of not less than one million dollars ($1,000,000) each accident. Such insurance shall cover liability arising out of any automobile utilized by Grantee in its operations regarding the Easement Property (including owned, non-owned, and hired automobiles). d.Worker’s Compensation Insurance: Grantee shall maintain worker’s compensation and employer’s liability insurance. The worker’s compensation limits shall be as required by statute and employer’s liability limits shall not be less than one million dollars ($1,000,000) each accident for bodily injury by accident and one million dollars ($1,000,000) each employee for bodily injury by disease. e.Excess (or Umbrella) Liability Insurance: Grantee shall maintain excess (or umbrella) liability insurance with a limit of not less than twenty-four million dollars ($24,000,000) per occurrence with a twenty-four million dollar ($24,000,000) aggregate. Such insurance shall be in excess of the commercial general liability insurance, automobile liability insurance and employer’s liability insurance as specified above. TO HAVE AND TO HOLD unto the said Justland Development, LLC as aforesaid for the purposes and during the time as above described. Page 4 of 6 Witness my hand to be effective this ____ day of ___________________, 2016 (“Effective Date”) GRANTOR: THE CITY OF DENTON, TEXAS: By: ________________________ HOWARD MARTIN INTERIM CITY MANAGER THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ____________, 2016, by Howard Martin, Interim City Manager, on behalf of the City of Denton, Texas. ________________________________ Notary Public, State of Texas Page 5 of 6 GRANTEE: JUSTLAND DEVELOPMENT, LLC: By: ________________________ Its: ________________________ THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of ____________, 2016, by ________________, ________________, on behalf of Justland Development, LLC. ________________________________ Notary Public, State of Texas APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:_________________________________ Page 6 of 6 PAGE 1 OF 2 ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE J. BROCK SURVEY, ABSTRACT NUMBER 55, CITY OF DENTON, DENTON COUNTY, TEXAS, BEING PART OF A CALLED TRACT TWO, 17.251 ACRE TRACT OF LAND, DESCRIBED IN A DEED TO THE CITY OF DENTON, RECORDED IN COUNTY CLERK DOCUMENT NUMBER 2003-R0053036,REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING A TWENTY FOOT CONSTRUCTION ACCESS EASEMENT MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 1/2 INCH IRON PIN SET WITH A YELLOW PLASTIC CAP STAMPED "10023300" AT THE SOUTHWEST CORNER OF SAID CITY OF DENTON TRACT, BEING THE NORTH WEST CORNER OF A TRACT DESCRIBED IN A DEED TO MARGARET LOVETTE, 00-R0086631, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS AND ON EAST RIGHT-OF-WAY LINE OF RUDDELL STREET, THENCE NORTH 00 DEGREES 45 MINUTES 08 SECONDS EAST WITH THE WEST LINE OF SAID CITY OF DENTON TRACT AND WITH THE EAST RIGHT-OF-WAY LINE OF RUDDELL STREET,A DISTANCE OF 70.00 FEET TO THE POINT OF BEGINNING; THENCE NORTH 00 DEGREES 45 MINUTES 08 SECONDS EAST, A DISTANCE OF 20.00 FEET TO A POINT FOR A CORNER FOUND ON THE EAST LINE OF SAID CITY OF DENTON TRACT AND BEING ON THE EAST RIGHT-OF-WAY LINE RUDDELL STREET. THENCE NORTH89 DEGREES 18 MINUTES 56 SECONDS EAST, A DISTANCE OF 431.28 FEET TO A POINT FOR A CORNER ON THE EAST OF THE SAID CITY OF DENTON TRACT AND THE WEST LINE OF SAID LOVETT TRACT. THENCE SOUTH 00 DEGREES 45 MINUTES 08 SECONDS WEST,WITH THE EAST LINE OF SAID CITY OF DENTON TRACT AND BEING ON THE WEST LINE RIGHT-OF-WAY LINE SAID LOVETT TRACT. A DISTANCE OF 20.00 FEET TO A POINT FOR A CORNER THENCE SOUTH 89 DEGREES 18 MINUTES 56 SECONDS WEST, A DISTANCE OF 431.47 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 0.198 ACRES OF LAND. FIRM #10023300 ORDINANCE NO. ______________ AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND JUSTLAND DEVELOPMENT, LLC; PROVIDING FOR THE USE OF CITY PROPERTY FOR TEMPORARY STORMWATER FACILITIES AND CONSTRUCTION ACCESS FOR THE MEADOW OAKS SUBDIVISION, PHASE 4, UNTIL PERMANENT RUDDELL STREET STORMWATER FACILIITES ARE INSTALLED; GRANTING TEMPORARY DRAINAGE AND CONSTRUCTION ACCESS EASEMENTS IN EXCHANGE FOR THE DEVELOPER PROVIDING A CONVEYANCE OF LAND IN FEE; PROVIDING FOR THE DEVELOPER TO PAY COSTS OF A PERMANENT STORMWATER PIPING SYSTEM AND COSTS FOR WATER COMPUTATIONS AND DESIGN OF PERMANENT STORMWATER FACILITIES; REQUIRING A PERFORMANCE BOND OR LETTERS OF CREDIT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton hereby finds that the Development Agreement between the City of Denton and Justland Development, LLC providing the terms for temporary stormwater facilities on City property until permanent Ruddell Street Stormwater Facilities are installed and providing terms for a transfer of land in fee simple to the City and providing for cost participation related to same which is attached hereto as Exhibit A and made a part hereof by reference (the “Agreement”), serves a municipal and public purpose and is in the public interest; and WHEREAS, the City Council of the City of Denton likewise finds that granting the Temporary Drainage Easement to Justland Development, LLC (“Drainage Easement”) and the Temporary Construction and Access Easement to Justland Development, LLC (“Access Easement”) (collectively the “Easements”), in exchange for transfer of land in fee, which said Easements are attached hereto as Exhibit B and C respectively, and made part hereof by reference, serves a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance, as well as Exhibits A, B and C, are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Development Agreement in Exhibit A and to carry out the duties and responsibilities of the City under the Agreement and is hereby authorized to execute the Easements in Exhibits B and C and to carry out the duties and responsibilities of the City under the Easements. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. p. 1 of 2 C:\\Users\\2375578\\AppData\\Local\\Microsoft\\Windows\\Temporary Internet Files\\Content.Outlook\\0WV27NM7\\Development Agreement Ordinance_jade_090816.doc PASSED AND APPROVED this the _________ day of ___________________, 2016. __________________________________ CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ p. 2 of 2 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1183,Version:1 Agenda Information Sheet DEPARTMENT:Engineering Services CM/ ACM:Jon Fortune Date:September 13, 2016 SUBJECT ConsideradoptionofanordinanceapprovinganAdvanceFundingAgreementbetweentheCityofDentonand theTexasDepartmentofTransportation(TxDOT),concerningCitycostparticipationinTxDOT’sgrade separationimprovementsprojectforIH35E,betweenStateSchoolRoad/MayhillRoadandLoop288(CSJNo. 0196-01-106); authorizing the City Manager to execute the agreement; and providing for an effective date. BACKGROUND AttheCouncil’sdirection,CitystaffhasbeenworkingwithTxDOTstaffsincetheFallof2015tohave TxDOTconstructgradeseparationimprovementsalongI-35EatMayhill(addaU-Turnonthewestside), BrinkerRd.(addanI-35EoverpasstoconnectBrinkerRd.totheI-35Esouthfrontageroad)andLoop288 (replacetheexistingI-35Eoverpasswithalongeroverpasstoallow4-lanesofLoop288ineachdirectionto alleviatecongestionatthishighlycongestedintersection).TxDOThascompletedtheroadwayplansto accomplishthisworkandadvertisedtheproject.BidsarescheduledtobereceivedonSeptember9,2016,with construction contract award scheduled for September 29, 2016. AspartoftheChapter380EconomicDevelopmentAgreementwithBuc-ee’s,thedeveloperagreedtofunda portionoftheBrinkerRd.overpasstoexpeditetheI-35Eimprovements,withthosecostsbeingreimbursedby theCityundertermsoftheagreement.TxDOThasidentifiedthattotalparticipationrequirementtobe $2,148,894,asafixedcosttotheCity(TxDOTwillonlyenterintoagreementswithgovernmentalagencies, notprivateparties).TxDOTrequiresthefundingbeprovidedpriortoawardoftheconstructioncontracton September29,2016.ThedeveloperhasagreedtoprovidethisfundingtotheCityinatimelyfashionfor transfertoTxDOT.ThemechanismforthisfundingparticipationisanAdvanceFundingAgreement(Exhibit 1) between the City and TxDOT. OPTIONS 1.ApprovetheordinanceapprovingtheAdvanceFundingAgreementwithTxDOTandauthorizingthe City Manager to execute the agreement. 2.Decline to approve the ordinance, resulting in cancellation of the project. RECOMMENDATION City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1183,Version:1 Staff recommends approval of the ordinance. ESTIMATED SCHEDULE OF PROJECT TxDOT plans to complete the grade separation improvements project by mid-year in 2018. PRIOR ACTION/REVIEW (Council, Boards, Commissions) CityCouncilapprovalofaChapter380EconomicDevelopmentAgreementfortheBuc-ee’sdevelopmenton December 1, 2015. FISCAL INFORMATION The total $2,148,894 fixed cost of this agreement is to be provided by the developer. BID INFORMATION TxDOT will receive bids for the project on September 9, 2016. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Public Infrastructure Related Goal:2.2 Seek solutions to mobility demands and enhance connectivity EXHIBITS 1.Advance Funding Agreement 2.AFA Ordinance Respectfully submitted: John T. Davis, PE Director of Engineering Services City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton STATE OF TEXAS § COUNTY OF TRAVIS § ADVANCE FUNDING AGREEMENT For A LOCAL GOVERNMENT CONTRIBUTION TO A TRANSPORTATION IMPROVEMENT PROJECT ON SYSTEM THIS AGREEMENT is made by and between the State of Texas, acting by and through the Texas Department of Transportation called the State, and the City of Denton, acting by and through its duly authorized officials, called the Local Government. WITNESSETH WHEREAS, federal law establishes federally funded programs for transportation improvements to implement its public purposes; and WHEREAS, the Texas Transportation Code, Sections 201.103 and 222.052 establish that the State shall design, construct and operate a system of highways in cooperation with local governments; and WHEREAS, federal and state laws require local governments to meet certain contract standards relating to the management and administration of State and federal funds; and WHEREAS, the Texas Transportation Commission passed Minute Order Number 114585, authorizing the State to undertake and complete a highway improvement generally described as the construction of grade separation along IH 35E at Brinker Road and intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County; and, WHEREAS, the Local Government has requested that the State allow the Local Government to participate in said improvement by contributing, as described in Attachment A, Payment Provision and Work Responsibilities, a fixed amount of funds towards the total project cost for the State to construct a transportation improvement facility described as the construction of grade separation along IH 35E at Brinker Road and intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County, called the Project"; and, AFA-AFA_LongGen Page 1 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton WHEREAS, the Governing Body of the Local Government has approved entering into this agreement by resolution or ordinance dated _________________, 20_____, which is attached to and made a part of this agreement as Attachment A for the improvement covered by this agreement. A map showing the Project location appears in Attachment B, which is attached to and made a part of this agreement. NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties, to be by them respectively kept and performed as set forth in this agreement, it is agreed as follows: AGREEMENT 1. Period of the Agreement This agreement becomes effective when signed by the last party whose signing makes the agreement fully executed. This agreement shall remain in effect until the Project is completed or unless terminated as provided below. 2. Scope of Work The scope of work is described as the construction of grade separation along IH 35E at Brinker Road and intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County, as shown on Attachment "B". 3. Local Project Sources and Uses of Funds A. The total estimated cost of the Project is shown in the Project Budget Attachment C, which is attached to and made a part of this agreement. The expected cash contributions from the Federal or State government, the Local Government, or other parties are shown in Attachment C. The State will pay for only those project costs that have been approved by the Texas Transportation Commission. The State and the Federal Government will not reimburse the Local Government for any work performed before the federal spending authority is formally obligated to the Project by the Federal Highway Administration. After federal funds have been obligated, the State will send to the Local Government a copy of the formal documentation showing the obligation of funds including federal award information. The Local Government is responsible for 100% of the cost of any work performed under its direction or control before the federal spending authority is formally obligated. Not Applicable to this Agreement B. If the Local Government will perform any work under this contract for which reimbursement will be provided by or through the State, the Local Government must complete training before federal spending authority is obligated. Training is complete when at least one individual who is working actively and directly on the Project successfully completes and receives a certificate for the course entitled Local Government Project Procedures and Qualification for the Texas Department of Transportation. The Local Government shall provide the certificate of qualification to the State. The individual who receives the training certificate may be an employee of the Local Government or an employee of a firm that has been contracted by the Local Government to perform oversight of the Project. The State in AFA-AFA_LongGen Page 2 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton its discretion may deny reimbursement if the Local Government has not designated a qualified individual to oversee the Project. C. The Project cost estimate shows how necessary resources for completing the Project will be provided by major cost categories. These categories may include but are not limited to: (1) costs of real property; (2) costs of utility work; (3) costs of environmental assessment and remediation; (4) cost of preliminary engineering and design; (5) cost of construction and construction management; and (6) any other local project costs. D. The State will be responsible for securing the Federal and State share of the funding required for the development and construction of the local Project. If the Local Government is due funds for expenses incurred, these funds will be reimbursed to the Local Government on a cost basis. E. The Local Government will be responsible for all non-federal or non-state participation costs associated with the Project, otherwise provided for in this agreement or approved otherwise in an amendment to this agreement. Where Special Approval has been granted by the State, the Local Government shall only in that instance be responsible for overruns in excess of the amount to be paid by the Local Government. F. Prior to the performance of any engineering review work by the State, the Local Government will pay to the State the amount specified in Attachment C. At a minimum, this amount shall equal the Local Governments funding share for the estimated cost of preliminary engineering for the Project. Not Applicable to this Agreement At least sixty (60) days prior to the date set for receipt of the construction bids, the Local Government shall remit its remaining financial share for the States estimated construction oversight and construction cost, unless otherwise specified in Attachment C, Project Budget. G. Whenever funds are paid by the Local Government to the State under this agreement, the Local Government shall remit a check or warrant made payable to the Texas Department of Transportation. The check or warrant shall be deposited by the State and managed by the State. The funds may only be applied by the State to the Project. H. Upon completion of the Project, the State will perform an audit of the Project costs. Any funds due by the Local Government, the State, or the Federal government will be promptly paid by the owing party. If after final Project accounting any excess funds remain, those funds may be applied by the State to the Local Governments contractual obligations to the State under another advance funding agreement with approval by appropriate personnel of the Local Government, unless otherwise specified in Attachment C, Project Budget. I. The State will not pay interest on any funds provided by the Local Government. J. If a waiver has been granted, the State will not charge the Local Government for the indirect costs the State incurs on the local Project, unless this agreement is terminated at the request of the Local Government prior to completion of the Project. K. If the Project has been approved for a specified percentage or a periodic payment non- standard funding or payment arrangement under 43 TAC §15.52, the budget in Attachment C will clearly state the specified percentage or the periodic payment schedule. L. If the Local government is an Economically Disadvantaged County (EDC) and if the State has approved adjustments to the standard financing arrangement, this agreement reflects those adjustments. AFA-AFA_LongGen Page 3 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton M. When Special Approval has been granted by the State so that the Local Government bears the responsibility for paying cost overruns, the Local Government shall make payment to the State within thirty (30) days from the receipt of the States written notification of those amounts. N. The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this contract or indirectly through a subcontract under this contract. Acceptance of funds directly under this contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. O. Payment under this contract beyond the end of the current fiscal biennium is subject to availability of appropriated funds. If funds are not appropriated, this contract shall be terminated immediately with no liability to either party. P. The Local Government is authorized to submit requests for reimbursement by submitting the original of an itemized invoice in a form and containing all items required by the State no more frequently than monthly, and no later than ninety (90) days after costs are incurred. If the Local Government submits invoices more than ninety (90) days after the costs are incurred, and if federal funding is reduced as a result, the State shall have no responsibility to reimburse the Local Government for those costs. Not Applicable to this Agreement Q. The State will not execute the contract for the construction of the Project until the required funding has been made available by the Local Government in accordance with this agreement. 4. Termination of this Agreement This agreement shall remain in effect until the project is completed and accepted by all parties, unless: A. The agreement is terminated in writing with the mutual consent of the parties; B. The agreement is terminated by one party because of a breach, in which case any cost incurred because of the breach shall be paid by the breaching party; C. The Local Government elects not to provide funding after the completion of preliminary engineering, specifications, and estimates (PS&E) and the Project does not proceed because of insufficient funds, in which case the Local Government agrees to reimburse the State for its reasonable actual costs incurred during the Project; or D. The Project is inactive for thirty-six (36) months or longer and no expenditures have been charged against federal funds, in which case the State may in its discretion terminate this agreement. 5. Amendments Amendments to this agreement due to changes in the character of the work, terms of the agreement, or responsibilities of the parties relating to the Project may be enacted through a mutually agreed upon, written amendment. AFA-AFA_LongGen Page 4 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton 6. Remedies This agreement shall not be considered as specifying the exclusive remedy for any agreement default, but all remedies existing at law and in equity may be availed of by either party to this agreement and shall be cumulative. 7. Utilities The State shall be responsible for the adjustment, removal, or relocation of utility facilities in accordance with applicable State laws, regulations, rules, policies, and procedures. 8. Environmental Assessment and Mitigation Development of a transportation project must comply with the National Environmental Policy Act and the National Historic Preservation Act of 1966, which require environmental clearance of federal-aid projects. A. The State is responsible for the identification and assessment of any environmental problems associated with the development of a local project governed by this agreement. B. The State is responsible for the cost of any environmental problems mitigation and remediation. C. The State is responsible for providing any public meetings or public hearings required for development of the environmental assessment. Public hearings will not be held prior to the approval of project schematic. D. The State is responsible for the preparation of the NEPA documents required for the environmental clearance of this Project. E. Before the advertisement for bids, the State shall provide to the Local Government written documentation from the appropriate regulatory agency or agencies that all environmental clearances have been obtained. 9. Compliance with Texas Accessibility Standards and ADA All parties to this agreement shall ensure that the plans for and the construction of all projects subject to this agreement are in compliance with the Texas Accessibility Standards (TAS) issued by the Texas Department of Licensing and Regulation, under the Architectural Barriers Act, Article 9102, Texas Civil Statutes. The TAS establishes minimum accessibility requirements to be consistent with minimum accessibility requirements of the Americans with Disabilities Act (P.L. 101-336) (ADA). 10. Architectural and Engineering Services The State has responsibility for the performance of architectural and engineering services. The engineering plans shall be developed in accordance with the applicable States Standard Specifications for Construction and Maintenance of Highways, Streets and Bridges and the special specifications and special provisions related to it. For projects on the state highway system, the design shall, at a minimum conform to applicable State manuals. For projects not on the state highway system, the design shall, at a minimum, conform to applicable American Association of State Highway and Transportation Officials design standards. In procuring professional services, the parties to this agreement must comply with federal requirements cited in 23 CFR Part 172 if the project is federally funded and with Texas Government Code 2254, Subchapter A, in all cases. Professional contracts for federally funded projects must AFA-AFA_LongGen Page 5 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton conform to federal requirements, specifically including the provision for participation by Disadvantaged Business Enterprises (DBEs), ADA, and environmental matters. 11. Construction Responsibilities A. The State shall advertise for construction bids, issue bid proposals, receive and tabulate the bids, and award and administer the contract for construction of the Project. Administration of the contract includes the responsibility for construction engineering and for issuance of any change orders, supplemental agreements, amendments, or additional work orders that may become necessary subsequent to the award of the construction contract. In order to ensure federal funding eligibility, projects must be authorized by the State prior to advertising for construction. B. The State will use its approved contract letting and award procedures to let and award the construction contract. C. Upon completion of the Project, the party constructing the Project will issue and sign a Notification of Completion acknowledging the Projects construction completion. D. For federally funded contracts, the parties to this agreement will comply with federal construction requirements cited in 23 CFR Part 635 and with requirements cited in 23 CFR Part 633, and shall include the latest version of Form FHWA-1273 in the contract bidding documents. If force account work will be performed, a finding of cost effectiveness shall be made in compliance with 23 CFR 635, Subpart B. 12. Project Maintenance The Local Government shall be responsible for maintenance of locally owned roads after completion of the work and the State shall be responsible for maintenance of state highway system after completion of the work if the work was on the state highway system, unless otherwise provided for in existing maintenance agreements with the Local Government. 13. Right of Way and Real Property The State is responsible for the provision and acquisition of any needed right of way or real property. 14. Notices All notices to either party shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to that party at the following address: Local Government:State: City Manager Director of Contract Services Attention: Director of Engineering Services Texas Department of Transportation th City of Denton 125 E. 11 Street 215 East McKinney Austin, Texas 78701 Denton, Texas 76201 All notices shall be deemed given on the date delivered in person or deposited in the mail, unless otherwise provided by this agreement. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that AFA-AFA_LongGen Page 6 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton notices shall be delivered personally or by certified U.S. mail, and that request shall be carried out by the other party. 15. Legal Construction If one or more of the provisions contained in this agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions and this agreement shall be construed as if it did not contain the invalid, illegal, or unenforceable provision. 16. Responsibilities of the Parties The State and the Local Government agree that neither party is an agent, servant, or employee of the other party and each party agrees it is responsible for its individual acts and deeds as well as the acts and deeds of its contractors, employees, representatives, and agents. 17. Ownership of Documents Upon completion or termination of this agreement, all documents prepared by the State shall remain the property of the State. All data prepared under this agreement shall be made available to the State without restriction or limitation on their further use. All documents produced or approved or otherwise created by the Local Government shall be transmitted to the State in the form of photocopy reproduction on a monthly basis as required by the State. The originals shall remain the property of the Local Government. At the request of the State, the Local Government shall submit any information required by the State in the format directed by the State. 18. Compliance with Laws The parties shall comply with all federal, state, and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any manner affecting the performance of this agreement. When required, the Local Government shall furnish the State with satisfactory proof of this compliance. 19. Sole Agreement This agreement constitutes the sole and only agreement between the parties and supersedes any prior understandings or written or oral agreements respecting the agreements subject matter. 20. Cost Principles In order to be reimbursed with federal funds, the parties shall comply with the Cost Principles established in 2 CFR 200 that specify that all reimbursed costs are allowable, reasonable, and allocable to the Project. 21. Procurement and Property Management Standards The parties shall adhere to the procurement standards established in Title 49 CFR §18.36 and with the property management standard established in Title 49 CFR §18.32. AFA-AFA_LongGen Page 7 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton 22. Inspection of Books and Records The parties to this agreement shall maintain all books, documents, papers, accounting records, and other documentation relating to costs incurred under this agreement and shall make such materials available to the State, the Local Government, and, if federally funded, the Federal Highway Administration (FHWA), and the U.S. Office of the Inspector General, or their duly authorized representatives for review and inspection at its office during the contract period and for four (4) years from the date of completion of work defined under this contract or until any impending litigation, or claims are resolved. Additionally, the State, the Local Government, and the FHWA and their duly authorized representatives shall have access to all the governmental records that are directly applicable to this agreement for the purpose of making audits, examinations, excerpts, and transcriptions. 23. Civil Rights Compliance A. A. Compliance with Requlations: The Local Government will comply with the Acts and the Regulations relative to Nondiscrimination in Federally-assisted programs of the U.S. Department of Transportation (USDOT), the Federal Highway Administration (FHWA), as they may be amended from time to time, which are herein incorporated by reference and made part of this agreement. B. Nondiscrimination: The Local Government, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The Local Government will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 45 CFR Part 21. C. Solicitations for Subcontracts, Includinq Procurement of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by the Local Government for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor or supplier will be notified by the Local Government of the Local Government's obligations under this contract and the Acts and Regulations relative to Nondiscrimination on the grounds of race, color, or national origin. D. Information and Reports: The Local Government will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto, and will permit access to its books, records, accounts, other sources of information, and facilities as may be determined by the State or the FHWA to be pertinent to ascertain compliance with such Acts, Regulations or directives. Where any information required of the Local Government is in the exclusive possession of another who fails or refuses to furnish this information, the Local Government will so certify to the State or the Federal Highway Administration, as appropriate, and will set forth what efforts it has made to obtain the information. E. Sanctions for Noncompliance: In the event of the Local Government's noncompliance with the Nondiscrimination provisions of this contract, the State will impose such contract sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: a. withholding of payments to the Local Government under the contract until the Local Government complies and/or b. cancelling, terminating, or suspending of the contract, in whole or in part. AFA-AFA_LongGen Page 8 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton Incorporation of Provisions: The Local Government will include the provisions of paragraphs (A) through (F) in every subcontract, including procurement of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The Local Government will take such action with respect to any subcontract or procurement as the State or the FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Local Government becomes involved in, or is threatened with, litigation with a subcontractor or supplier because of such direction, the Local Government may request the State to enter into such litigation to protect the interests of the State. In addition, the Local Government may request the United States to enter into such litigation to protect the interests of the United States. 24. Disadvantaged Business Enterprise (DBE) Program Requirements A. The parties shall comply with the Disadvantaged Business Enterprise Program requirements established in 49 CFR Part 26. B. The Local Government shall adopt, in its totality, the State's federally approved DBE program. C. The Local Government shall set an appropriate DBE goal consistent with the State's DBE guidelines and in consideration of the local market, project size, and nature of the goods or services to be acquired. The Local Government shall have final decision-making authority regarding the DBE goal and shall be responsible for documenting its actions. D. The Local Government shall follow all other parts of the State's DBE program referenced in TxDOT Form 2395, Memorandum of Understanding Regarding the Adoption of the Texas Department of Transportation's Federally-Approved Disadvantaged Business Enterprise by Entity, and attachments found at web address http://ftp.dot.state.tx.us/pub/txdot-info/bop/dbe/mou/mou attachments.pdf. E. The Local Government shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any U.S. Department of Transportation (DOT)- assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The Local Government shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non-discrimination in award and administration of DOT-assisted contracts. The State's DBE program, as required by 49 CFR Part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the Local Government of its failure to carry out its approved program, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). F. Each contract the Local Government signs with a contractor (and each subcontract the prime contractor signs with a sub-contractor) must include the following assurance: The contractor, sub-recipient, or sub-contractor shall not discriminate on the basis of race, co/or, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT- assisted contracts. Failure by the contractor to carry out these requirements is a material AFA-AFA_LongGen Page 9 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton breach of this agreement, which may result in the termination of this agreement or such other remedy as the recipient deems appropriate. 25. Debarment Certifications The parties are prohibited from making any award at any tier to any party that is debarred or suspended or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549, "Debarment and Suspension." By executing this agreement, the Local Government certifies that it and its principals are not currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549 and further certifies that it will not do business with any party, to include principals, that is currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549. The parties to this contract shall require any party to a subcontract or purchase order awarded under this contract to certify its eligibility to receive federal funds and, when requested by the State, to furnish a copy of the certification. 26. Lobbying Certification In executing this agreement, each signatory certifies to the best of that signatory's knowledge and belief, that: A. No federal appropriated funds have been paid or will be paid by or on behalf of the parties to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with federal contracts, grants, loans, or cooperative agreements, the signatory for the Local Government shall complete and submit the Federal Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The parties shall require that the language of this certification shall be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and all sub-recipients shall certify and disclose accordingly. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Title 31 U.S.C. §1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 27. Insurance If this agreement authorizes the Local Government or its contractor to perform any work on State right of way, before beginning work the entity performing the work shall provide the State with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of coverage in the amounts and types specified on the Certificate of Insurance for all persons and entities working on State right of way. This coverage shall be maintained until all AFA-AFA_LongGen Page 10 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton work on the State right of way is complete. If coverage is not maintained, all work on State right of way shall cease immediately, and the State may recover damages and all costs of completing the work. 28. Federal Funding Accountability and Transparency Act Requirements A. Any recipient of funds under this agreement agrees to comply with the Federal Funding Accountability and Transparency Act (FFATA) and implementing regulations at 2 CFR Part 170, including Appendix A. This agreement is subject to the following award terms: http://www.qpo.qov/fdsYs/pkq/FR-2010-09-14/pdf/2010-22705.pdf and http://www.q po. qov/fdsYs/pkq/F R-2010-09-14/pdf/2010-22706. pdf. B. The Local Government agrees that it shall: 1. Obtain and provide to the State a System for Award Management (SAM) number (Federal Acquisition Regulation, Part 4, Sub-part 4.11) if this award provides more than $25,000 in Federal funding. The SAM number may be obtained by visiting the SAM website whose address is: https://www.sam.aov/portal/public/SAM/ 2. Obtain and provide to the State a Data Universal Numbering System (DUNS) number, a unique nine-character number that allows Federal government to track the distribution of federal money. The DUNS may be requested free of charge for all businesses and entities required to do so by visiting the Dun & Bradstreet (D&B) on-line registration website http://fedqov.dnb.com/webform; and 3. Report the total compensation and names of its top five (5) executives to the State if: i. More than 80% of annual gross revenues are from the Federal government, and those revenues are greater than $25,000,000; and ii. The compensation information is not already available through reporting to the U.S. Securities and Exchange Commission. 29. Single Audit Report A. The parties shall comply with the requirements of the Single Audit Act of 1984, P.L. 98-502, ensuring that the single audit report includes the coverage stipulated in 2 CFR 200. B. If threshold expenditures of $750,000 or more are met during the fiscal year, the Local Government must submit a Single Audit Report and Management Letter (if applicable) to TxDOT's Audit Office, 125 East 11th Street, Austin, TX 78701 or contact TxDOT's Audit Office at http://www.txdot.gov/inside-txdot/office/audit/contact.html. C. If expenditures are less than the threshold during the Local Government's fiscal year, the Local Government must submit a statement to TxDOT's Audit Office as follows: "We did not meet the $ expenditure threshold and therefore, are not required to have a single audit performed for FY " D. For each year the project remains open for federal funding expenditures, the Local Government will be responsible for filing a report or statement as described above. The required annual filing shall extend throughout the life of the agreement, unless otherwise amended or the project has been formally closed out and no charges have been incurred within the current fiscal year. AFA-AFA_LongGen Page 11 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton 30. Pertinent Non-Discrimination Authorities During the performance of this contract, the Local Government, for itself, its assignees, and successors in interest agree to comply with the following nondiscrimination statutes and authorities; including but not limited to: A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects). C. Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), as amended, (prohibits discrimination on the basis of sex). D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.) as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27. E. The Age Discrimination Act of 1975, as amended, (49 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age). F. Airport and Airway Improvement Act of 1982, (49 U.S.C. Chapter 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex). G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not). H. Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131- 12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38. I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex). J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations. K. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, the parties must take reasonable steps to ensure that LEP persons have meaningful access to the programs (70 Fed. Reg. at 74087 to 74100). Title IX of the Education Amendments of 1972, as amended, which prohibits the parties from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq.). AFA-AFA_LongGen Page 12 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton 31. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this agreement on behalf of the entity represented. THIS AGREEMENT IS EXECUTED by the State and the Local Government in duplicate. THE LOCAL GOVERNMENT— CITY OF DENTON By: Howard Martin City Manager Date: Approved as to Form: Anita Burgess City Attorney By: Anita Burgess City Attorney ATTEST: Jennifer Walters City Secretary By: Jennifer Walters City Secretary TH E STATE OF TEXAS By: Kenneth Stewart Director of Contract Services Texas Department of Transportation Date: AFA-AFA_LongGen Page 13 of 13 Revised 08/22/2016 CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton ATTACHMENT A RESOLUTION OR ORDINANCE AFA-AFA_LongGen Page 1 of 1 Attachment A CSJ #: 0196-01-106 District #: 18-Dallas Code Chart 64#: 11400 Project: IH 35E Limits: From State School Road/Mayhill Road (FM 2499) to SL 288/Brinker Road County: Denton ATTACHMENT B LOCATION MAP SHOWING PROJECT AFA-AFA_LongGen Page 1 of 1 Attachment B � � � � � 00 � T � � � U � �� � � m � � � N J O � rn � N � L.L � (� 0 � � � � � c� 0 � 0 o � o � � � rU^ O T VJ T T � T � � � � ���(n O � ��=oa� p � — � � � U��>, �a�a��� (n O � � O UU��U U� � W Zp W � ` � _ � U W � � Qa o � � � � � � o c� U � � � o � � � � i oa�i�o � � o_� � � U i � � U U � � V � � r � .� m N O � � � d � N � � O � � J � � � O a�� �� i� � � � � � �-�-(n � (� X � ��•� OQ � � � a� = a� a� ���� �� � � c� ���� ���i� ��U� O � J � � � o�� �� Q � � � � � � T O O � N V � O � � � � � � � � O � -� O o - � ��i�o (� (� � U � � � � � �o o � � U � � � O � � � � � � � U '� � m � O � (� � � d p w - � — � � � � � � O � _ -i +-� � — � � "� � O � � � U � O � � O — � '� � .���� � � � � � (� � � � � � � i � i � � � � U � � � � �— O U V U � O � O � (� � � � � � p � V H U H .� z `fl `fl orno m `fl `fl m � N � v v aa U � � � UV O� � � � � � -O X X a o O O X 11 0 0 11 � o 0 J .� � T � N � � N J � Z H 0 � 0 N n � � � � � 0 r Q W a U � � � Z�U 0 W H 0 0 0 0 0 W W a O O O O O � � d o 0 `�°�� � � °' v � �n � � co Z N � v "� o°'o v � p ch cn � � �n � a V � � � i» � a HU N � � o 0 0 0 0 ao c�v�� o 0 0 C`�') EA EA M EA EA M Z Q O N � M M W a U � � � 0 V � � � w� LL � � � � � � a o o°op o 0 0 0 � N W � � � (�C 0 W r W OD � � � J�� N I� 00 OD C`') W � �� O n r� O � � N �� C.% � E� E� � E� E� � N W j � � U \° 0 � a � J r O H N � (� N N � O N � J a � Q v� oC � cn C° O -- V � � N � O W >. � o U 0 � 0 U N V O O c� � U U � .O � � � U d N � N � � c � c � � U f� U � � s a� x L.L � � � � � N I I � a� � a� � � c� � � 0 � O .� U � X a� � � 0 Q � � (� � � � O � � � � � i O � (� U O J � � � � � � � � Q � O � U � � � � Q T O � (� � � � � � � O J QI � Q Q L.L Q ORDINANCE NO. 2016- AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AN ADVANCE FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT), CONCERNING CITY COST PARTICIl'ATION IN TXDOT'S GRADE SEPARATION IMPROVEMENTS PROJECT FOR IH-35E, BETWEEN STATE SCHOOL ROAD/MAYHILL ROAD AND LOOP 288 (CCSJ NO. 0196-01-106) AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City staff has been working with TxDOT staff since the Fall of 2015 to have TxDot construct grade separation improvements along I-35 E at Mayhill (add a U-turn to the west side), Brinker Rd. (add an I-35 overpass to connect Brinker Rd. to the I-35E south frontage road) and Loop 288 (replace the existing I-35 E overpass with a longer overpass to allow 4 lanes of Loop 288 in each direction to alleviate congestion at this highly congested intersection); and WHEREAS, as part of the development agreement with Buc-ee's, the developer agreed to fund a portion of the Brinker Rd. overpass, with those costs being reimbursed by the City under terms of the agreement. TxDOT has identified that total participation requirement to be $2,148,894, as a fixed cost to the City. The developer has agreed to provide this funding to the City for transfer to TxDOT. WHEREAS, the City Council having considered the Advanced Funding Agreements that is required by TXDOT, and considering the importance of road improvements to the citizens of Denton, Texas, is of the opinion that it should approve the above-referenced Advanced Funding Agreement by and between the City and TXDOT; NOW THEREFORE THE COUNCII, OF THE CITY OF DENTON HEREBY ORDAINS: SECTION l. That the City Council hereby approves the above described Advanced Funding Agreement as set forth in Attachment A hereto. SECTION 2. That the City Manager is hereby authorized to execute the said Advanced Funding Agreement and is further authorized by the City Council to expend all funds and to make such payments as are necessary under the Advanced Funding Agreement that is attached hereto and incorporated herein by reference. SECTION 3. That this ordinance shall become effective immediately upon its passage and approval. 1 PASSED AND APPROVED this the day of , 2016. ATTEST: JENNIFER WALTERS, CITY SECRETARY : APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY : 2 CHRIS WATTS, MAYOR City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ,;. www.cityofdenton.com �������� Legislation Text File #: ID 16-1184, Version: 1 Agenda Information Sheet DEPARTMENT: Engineering Services CM/ ACM: Date: Jon Fortune September 13, 2016 SUBJECT Consider adoption of an ordinance approving a Standard Utility Agreement U14818 and an Advance Funding Agreement for Voluntary Utility Relocation for IH-35E, between Mayhill Rd. and Loop 288 (CSJ No. 0196-01- 106), between the City of Denton and the Texas Department of Transportation (TxDOT), for the relocation and betterment of a City water line along the I-35E right-of-way near Brinker Rd.; authorizing the City Manager to execute the agreements and related documents; and providing for an effective date. BACKGROUND TxDOT is in the process of constructing grade separation improvements along I-35E at Mayhill (new U-turn on west side of overpass), Brinker Rd. (new overpass to connect Brinker to the south frontage road), and Loop 288 (complete reconstruction of the Loop 288 overpass to provide 4 lanes in each direction). These improvements require the relocation of approximately 2,600 ft. of the City's existing 14 in. watermain along the I-35E south frontage road in the vicinity of the planned Buc-ee's development. Since this water main is along an interstate highway, TxDOT is responsible for the total costs of relocating the water main in the same size that currently exists. With this water main relocation, the City has requested TxDOT upgrade the water main to a 20 in. to match the City's Master Water Plan and to include this work in the roadway construction contract to avoid scheduling and conflict problems between separate City and TxDOT contractors on the project. TxDOT has agreed to include the water main relocation and upgrade "betterment" in its roadway construction contract, with the City responsible for only the added costs of the "betterment" (increased size) of the water main. This "betterment" cost has been estimated to be $160,900, which City staff has reviewed and found to be appropriate. To accomplish these actions as part of TxDOT's construction project, the City is required to enter into a Standard Utility Agreement U14818 (Exhibit A) and an Advanced Funding Agreement for Voluntary Utility Relocation (Exhibit B). TxDOT will receive bids for the roadway and utility construction on September 9, 20016, with bid award scheduled for September 29, 2016. The City must deposit the "betterment" cost estimate with TxDOT prior bid award. OPTIONS Approve an ordinance an Advance Funding related documents for authorizing the City Manager to execute a Standard Utility Agreement U14818, Agreement for Voluntary Utility Relocation, in the amount of $160,900.00, and IH-35E, between Mayhill Rd. and Loop 288, between the City of Denton and the City of Denton Page 1 of 2 Printed on 9/9/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1184, Version: 1 Texas Department of Transportation (TxDOT). 2. Decline to approve the ordinance. RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED SCHEDULE OF PROJECT TxDOT's schedule calls for the construction of the grade separation improvements to be completed by mid- 2018. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board will consider this item at their September 12, 2016 meeting. FISCAL INFORMATION The $160,900 water main "betterment" costs will be funded from Water C.O. Bonds. BID INFORMATION TxDOT receives bids for the project on September 9, 2016. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Public Infrastructure Related Goal: 2.3 Promote superior utility services and facilities EXHIBITS 1. Standard Utility Agreement U14818 2. Advance Funding Agreement for Voluntary Utility Relocation 3. UA Ordinance Respectfully submitted: John T. Davis, PE Director of Engineering Services City of Denton Page 2 of 2 Printed on 9/9/2016 �ovt�r�d bv I_�gitiY�rTr^ �� � ,�r' � �� 7��=�, Form ROW-U-35 (Rev.05/16) Page 1 STANDARD UTILITY AGREEMENT District: Dallas Federal Project No.: N/A ROW CSJ: 0196-01-107 Highway Project Letting Date: 9/1/16 U-Number: U14818 County: Denton Highway: IH 35E From: State School Rd/Mayhill Rd(FM 2499) To: SL 288 This Agreement by and between the State of Texas, acting by and through the Texas Transportation Commission, ("State"), and City of Denton, ("Utility"), acting by and through its duly authorized representative, shall be effective on the date of approval and execution by and on behalf of the State. WHEREAS, the State has deemed it necessary to make certain highway improvements as designated by the State and approved by the Federal Highway Administration within the limits of the highway as indicated above; WHEREAS, the proposed highway improvements will necessitate the adjustment, removal, and/or relocation of certain facilities of Utility as indicated in the following statement of work: From Station 1795+74 to Station 1820+64 install approximately 2396 LF of 20" DI CL 52 waterline, 187 LF of 16" DI CL 52 waterline, and 203 LF of 36" steel casing.; and more specifically shown in Utility's plans, specifications and estimated costs, which are attached hereto as Attachment "A". WHEREAS, the State will participate in the costs of the adjustment, removal, and/or relocation of certain facilities to the extent as may be eligible for State and/or Federal participation. WHEREAS, the State, upon receipt of evidence it deems sufficient, acknowledges Utility's interest in certain lands and/or facilities that entitle it to reimbursement for the adjustment, removal, and relocation of certain of its facilities located upon the lands as indicated in the statement of work above. NOW, THEREFORE, BE IT AGREED: The State will pay to Utility the costs incurred in adjustment, removal, and/or relocation of Utility's facilities up to the amount said costs may be eligible for State participation. All conduct under this agreement, including but not limited to the adjustment, removal and relocation of the facility, the development and reimbursement of costs, any environmental requirements, and retention of records will be in accordance with all applicable federal and state laws, rules and regulations, including, without limitation, the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. §§ 4601, et seq., the National Environmental Policy Act, 42 U.S.C. §§ 4231, et seq., the Buy America provisions of 23 U.S.C. § 313 and 23 CFR 635.410, the Utility Relocations, Adjustments, and Reimbursements provisions of 23 CFR 645, Subpart A, and with the Utility Accommodation provisions of 23 CFR 645, Subpart B. Utility shall supply, upon request by the State, proof of compliance with the aforementioned laws, rules and regulations prior to the commencement of construction. The Utility agrees to develop relocation or adjustment costs by accumulating actual direct and related indirect costs in accordance with a work order accounting procedure prescribed by State, or may, with the State's approval, accumulate actual direct and related indirect costs in accordance with an established accounting procedure developed by Utility. Bills for work hereunder will be submitted to State not later than 90 days after completion of the work. When requested, the State will make intermediate payments at not less than monthly intervals to Utility when properly billed and such payments will not exceed 90 percent (90%) of the eligible cost as shown in each such billing. Intermediate payments shall not be construed as final payment for any items included in the intermediate payment. Initial Date Initial Date TxDOT Utility Form ROW-U-35 (Rev.05/16) Page 2 Alternatively, State agrees to pay Utility an agreed lump sum of $n/a as supported by the attached estimated costs. The State will, upon satisfactory completion of the adjustments, removals, and/or relocations and upon receipt of a final billing, make payment to Utility in the agreed amount. Upon execution of this agreement by both parties hereto, the State will, by written notice, authorize the Utility to perform such work diligently, and to conclude said adjustment, removal, or relocation by the stated completion date. The completion date shall be extended for delays caused by events outside Utility's control, including an event of Force Majeure, which shall include a strike, war or act of war (whether an actual declaration of war is made or not), insurrection, riot, act of public enemy, accident, fire, flood or other act of God, sabotage, or other events, interference by the State or any other party with Utility's ability to proceed with the relocation, or any other event in which Utility has exercised all due care in the prevention thereof so that the causes or other events are beyond the control and without the fault or negligence of Utility. The State will, upon satisfactory completion of the relocation or adjustment and upon receipt of final billing prepared in an approved form and manner, make payment in the amount of 90 percent (90%) of the eligible costs as shown in the final billing prior to audit and after such audit shall make an additional final payment totaling the reimbursement amount found eligible for State reimbursement. This agreement in its entirety consists of the following elements: 1. Standard Utility Agreement; 2. Plans, Specifications, and Estimated Costs (Attachment "A"); 3. Utility's Accounting Method (Attachment "B"); 4. Utility's Schedule of Work and Estimated Date of Completion (Attachment "C"); 5. Statement Covering Contract Work — ROW-U-48 (Attachment "D"); 6. Eligibility Ratio (Attachment "F"); 7. Betterment Calculation and Estimates (Attachment "G"); 8. Proof of Property Interest — ROW-U-1 A, ROW-U-1 B, or ROW-U-1 C(Attachment "H"); 9. Inclusion in Highway Construction Contract (if applicable) (Attachment "I"); and 10. Utility Joint Use Acknowledgment - ROW-U-JUA and/or Utility Installation Request - Form 1082 (Attachment "E"). All attachments are included herein as if fully set forth. In the event it is determined that a substantial change from the statement of work contained in this agreement is required, reimbursement therefore shall be limited to costs covered by a modification or amendment of this agreement or a written change or extra work order approved by the State and Utility. This agreement is subject to cancellation by the State at any time up to the date that work under this agreement has been authorized and that such cancellation will not create any liability on the part of the State. However, the State will review and reimburse the Utility for eligible costs incurred by the Utility in preparation of this Agreement. The State Auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this contract or indirectly through a subcontract under this contract. Acceptance of funds directly under this contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the State Auditor, under the direction of the Legislative Audit Committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. The Utility by execution of this agreement does not waive any of the rights which Utility may have within the limits of the law. It is expressly understood that the Utility conducts the adjustment, removal, or relocation at its own risk, and that TxDOT makes no warranties or representations regarding the existence or location of utilities currently within its right of way. Initial Date Initial Date TxDOT Utility Form ROW-U-35 (Rev.05/16) Page 3 The signatories to this agreement warrant that each has the authority to enter into this agreement on behalf of the party represented. UTILITY Utility: City of Denton Name of Utility By: Authorized Signature Print or Type Name Title: Date: Initial Date Initial TxDOT Utility Date EXECUTION RECOMMENDED: Director of TP&D (or designee), Dallas District THE STATE OF TEXAS Executed and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By: Date: District Engineer (or designee) ATTACHMENT "I" (to be used only for Inclusion in Highway Construction Contract) In the best interest of both the State and the Utility, the Utility requests the State to include the plans and specifications for this work in the general contract for construction of Highway in this area, so that the work can be coordinated with the other construction operations; and the construction contract is to be awarded by the State to the lowest qualified bidder who submits a proposal in conformity with the requirements and specifications for the work to be performed. Utility: Name of Utility By: Authorized Signature Print or Type Name Title: Date: Initial Date Initial Date TxDOT Utility CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road STATE OF TEXAS § COUNTY OF TRAVIS § ADVANCE FUNDING AGREEMENT FOR VOLUNTARY UTILITY RELOCATION CONTRIBUTIONS ON STATE HIGHWAY IMPROVEMENT PROJECTS ON SYSTEM THIS AGREEMENT is made by and between the State of Texas, acting through the Texas Department of Transportation ("State") and the Citv of Denton ("Utility"), WITNESSETH WHEREAS, Transportation Code, Chapters 201, 221, and 361, authorize the State to lay out, construct, maintain, and operate a system of streets, roads and highways that comprise the State Highway System; and, WHEREAS, Transportation Code, Chapter 203, Subchapter E, Transportation Code §203.092 authorizes the State to regulate the placement of public utility facilities along a state highway; and, WHEREAS, Texas Transportation Commission Minute Order Number 114585 authorizes the State to undertake and complete a highway improvement generally described as the construction of grade separation along IH 35E at Brinker Road and intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County ("Project"); and, WHEREAS, Utility possesses facilities that are affected by the above mentioned highway improvement and Utility, and the State agrees that it is more economical or efficient for such relocation to be effected by including said contract in the State's highway construction contract; NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties hereto, to be by them kept and performed as hereafter set forth, the State and Utility do agree as follows: AGREEMENT 1. Time Period Covered This agreement becomes effective when signed by the last party whose signing makes the agreement fully executed, and the State and Utility will consider it to be in full force and effect until the Project described in this agreement has been completed and accepted by all parties or unless terminated, as provided. AFA—AFA_Utility Page 1 of 5 Revised 02/26/2016 CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road 2. Project Funding and Work Responsibilities A. The State will authorize the performance of only those Project items of work which are eligible for relocation reimbursements or for which Utility has requested and has agreed to pay for as described in Attachment A- Payment Provision and Work Responsibilities, which is attached to and made a part of this contract. In addition to identifying those items of work to be paid for by payments to the State, Attachment A- Payment Provision and Work Responsibilities, also specifies those Project items of work that are the responsibility of Utility and will be carried out and completed by Utility, at no cost to the State. The Utility shall be responsible for costs that are shown on Attachment B, Estimated Utility Costs, which is attached to and made a part of this agreement. B. If the Utility will perform any work under this contract for which reimbursement will be provided by or through the State, the Utility must complete training before a letter of authority is issued. Training is complete when at least one individual who is working actively and directly on the Project successfully completes and receives a certificate for the course entitled Local Government Project Procedures and Qualification for the Texas Department of Transportation. The Utility shall provide the certificate of qualification to the State. The individual who receives the training certificate may be an employee of the Utility or an employee of a firm that has been contracted by the Utility to perform oversight of the Project. The State in its discretion may deny reimbursement if the Utility has not designated a qualified individual to oversee the Project. C. Payment under this contract beyond the end of the current fiscal biennium is subject to availability of appropriated funds. If funds are not appropriated, this contract shall be terminated immediately with no liability to either party. 3. Termination A. This agreement may be terminated in the following manner: 1. By mutual written agreement and consent of both parties; 2. By either party upon the failure of the other party to fulfill the obligations set forth in this agreement; or 3. By the State if it determines that the performance of the Project or utility work is not in the best interest of the State. B. If the agreement is terminated in accordance with the above provisions, Utility will be responsible for the payment of Project costs incurred by the State on behalf of Utility up to the time of termination. 4. Right of Access If Utility is the owner of any part of the Project site, Utility shall permit the State or its authorized representative access to the site to perform any activities required to execute the work. AFA—AFA_Utility Page 2 of 5 Revised 02/26/2016 CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road 5. Adjustments Outside the Project Site Utility will provide for all necessary right of way and utility adjustments needed for performance of the work on sites not owned or to be acquired by the State. 6. Responsibilities of the Parties and Indemnity Utility acknowledges that it is not an agent, servant, employee of the State, nor is it engaged in a joint enterprise, and it is responsible for its own acts and deeds and for those of its agents or employees during the performance of the work on the Project. To the extent permitted by law, Utility agrees to indemnify and hold harmless the State, its agents and employees, from all suits, actions, or claims and from all liability and damages for any and all injuries or damages sustained by any person or property in consequence with the performance of design, construction, maintenance, or operation of the Utility facility. Such indemnity includes but is not limited to any claims or amounts arising or recovered under the "Worker's Compensation Law", the Texas Tort Claims Act, Chapter 101, Texas Civil Practice and Remedies Code; or any other applicable laws or regulations, all as time to time may be amended. 7. Sole Agreement In the event the terms of the agreement are in conflict with the provisions of any other existing agreements between Utility and the State, the latest agreement shall take precedence over the other agreements in matters related to the Project. 8. Successors and Assigns The State and Utility each binds itself, its successors, executors, assigns, and administrators to the other party to this agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this agreement. 9. Amendments By mutual written consent of the parties, the scope of work and payment provisions of this agreement may be amended prior to its expiration. 10. Inspection and Conduct of Work Unless otherwise specifically stated in Attachment A- Payment Provision and Work Responsibilities, to this contract, the State will supervise and inspect all work performed hereunder and provide such engineering inspection and testing services as may be required to ensure that the Project is accomplished in accordance with the approved plans and specifications. All correspondence and instructions to the contractor performing the work will be the sole responsibility of the State. Unless otherwise specifically stated in Attachment A to this contract, all work will be performed in accordance with the Utility Accommodation Rules as set forth in 43 Texas Administrative Code §21.31 et. seq. adopted AFA—AFA_Utility Page 3 of 5 Revised 02/26/2016 CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road by the State and incorporated in this agreement by reference, or special specifications approved by the State. 11. Maintenance Upon completion of the Project, Utility will assume responsibility for the maintenance of the completed Utility facility unless otherwise specified in Attachment A to this agreement. 12. Notices All notices to either party by the other required under this agreement shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to such party at the following addresses: Local Government: City Manager Attention: Director of Engineering Services City of Denton 215 East McKinney Denton. Texas 76201 State: Director of Contract Services Texas Department of Transportation 125 E. 11 t" Street Austin, Texas 78701 All notices shall be deemed given on the date so delivered or so deposited in the mail, unless otherwise provided in this agreement. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that such notices shall be delivered personally or by certified U.S. mail and such request shall be honored and carried out by the other party. 13. State Auditor The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this contract or indirectly through a subcontract under this contract. Acceptance of funds directly under this contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. 14. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this agreement on behalf of the entity represented. AFA—AFA_Utility Page 4 of 5 Revised 02/26/2016 CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road 15. Access to Information The Utility is required to make any information created or exchanged with the state pursuant to this contract, and not otherwise excepted from disclosure under the Texas Public Information Act, available in a format that is accessible by the public at no additional charge to the state. THIS AGREEMENT IS EXECUTED by the State and the Utility in duplicate. THE UTILITY — CITY OF DENTON By: Howard Martin City Manager Date: Approved as to Form: Anita Burgess City Attorney By: Anita Burgess City Attorney ATTEST: Jennifer Walters City Secretary By: Jennifer Walters City Secretary TH E STATE OF TEXAS By: James K. Selman, P.E. Dallas District Engineer Texas Department of Transportation Date: AFA—AFA_Utility Page 5 of 5 Revised 02/26/2016 CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road ATTACHMENT A PAYMENT PROVISION AND WORK RESPONSIBILITIES 1. Description of the Work Items The parties agree that the existing waterline shall be relocated with elective betterment upsizing an existing 16" waterline to a proposed 20" waterline. This relocation and adjustment shall be made along IH 35E at Brinker Road and the intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County. The waterline facilities shall be owned, operated, and maintained by Utility from and after completion and final acceptance by the State and Utility. The total estimated construction and material cost only for the relocation of the waterline with the elective Betterment (20" waterline) is $1,162,591.74. The total estimated construction and material cost only for the existing 16" waterline is $1,001,691.74. The estimated elective betterment amount due from the Utility is 160 900. The parties agree that it is their intent to complete the relocation improvements within this estimate of cost. 2. Actual Cost Agreement The State will be responsible for paying all costs associated with the planning, specification, and estimate (PS&E) development, and construction of the non-betterment portion proposed as prescribed and pursuant to state law. All the costs associated with construction of the waterline items for the Project shall be provided as defined under the Standard Utility Agreement, Utility Joint Use Agreement, and/or the Agreement to Contribute Funds executed between the State and Utility. 3. Schedule of Payments A. At least forty-five (45) days prior to the date set for receipt of the construction bids, the Utility shall remit its remaining financial share for the State's estimated construction oversight and construction costs. Utility must advance to the State one hundred percent (100%) of its share of the estimated Project utility construction costs. The amount to be advanced for this elective betterment for this relocation is estimated to be 160 900. (See Attachment B— Estimated Utility Costs) B. In the event the State determines that additional funding is required by the Utility at any time during the Project, the State will notify the Utility in writing. The Utility is responsible for one hundred percent (100%) of the authorized project cost and any overruns. The Utility will make payment to the State within thirty (30) days from receipt of the State's written notification. C. Whenever funds are paid by the Utility to the State under this agreement, the Utility will remit a warrant made payable to the "Texas Department of Transportation." The warrant will be deposited by the State and managed by the State. Until the final Project accounting, funds may only be applied by the State to the Project. D. Upon completion of the Project, the State will perform an audit of the Project costs. Any funds due by the Utility, the State, or the Federal Government will be promptly paid by the owi ng party. 4. Work Responsibilities A. The Utility shall provide the following services under this contract: AFA—AFA_Utility Page 1 of 3 Attachment A CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road i. Responsible for engaging the services of a Texas Registered Professional Engineer to prepare drawings and technical specifications for waterline relocations and adjustments along IH 35E at Brinker Road and intersection improvements at Mayhill Road and SL 288/Brinker Road in Denton County. ii. Provide the specifications to the State to include in the current planning specifications and approve the estimate package being prepared by representatives of the Texas Department of Transportation's Dallas District Denton Area Office. iii. Secure all necessary permitting as may be required for the installation of the waterline. iv. Arrange and coordinate with the contractor, through the State, materials and equipment testing, rejection of all work not conforming to minimum requirements of the construction contract documents, maintenance of the proposed waterline during construction, and the relocation of the waterline and connection of services to customers. v. Advise the State of work that Utility determines should be corrected or rejected. vi. Arrange, observe, and inspect all acceptance testing and notify the State of the results of these activities. vii. Provide inspection services for the construction, notify the State of defects and deficiencies in the work, and observe actions of the contractor to correct such defects and deficiencies. viii. Assume all responsibility for the maintenance of the existing water line during and upon completion of the construction contract. ix. Ensure all Texas Commission on Environmental Quality and all other regulatory rules, regulations and laws are strictly adhered to. x. Prepare and submit both a certificate of substantial completion and a list of observed items requiring completion or correction for the relocations and adjustments to the Project Engineer for concurrence. xi. Coordinate all construction activities performed by State for the relocations and adjustments through the Project Engineer. B. The State shall provide the following services under this contract: i. Combine the waterline relocation and adjustment plans with the plans being prepared for the Project. ii. Review and approve the final construction plans prior to any construction-related activities. In order to ensure federal and/or state funding eligibility, projects must be authorized by the State prior to advertising for construction. iii. Advertise for construction bids, issue bid proposals, receive and tabulate the bids, and award and administer the contract for construction of the Project. iv. Negotiate and administer all field changes and change orders required for the Project. All change orders increasing construction costs for Utility's Project shall be submitted to Utility for review and approval together with an evaluation. Utility agrees to review and either approve or disapprove all change orders within five (5) business days after receipt of such order unless Utility Board's approval is necessary in which case Utility shall bring the item to Utility Board as soon as reasonably possible. AFA—AFA_Utility Page 2 of 3 Attachment A CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road v. Provide overall project management to supervise the day-to-day activities of the construction and monitor the activities of the contractor to promote the timely and efficient completion of the Project in accordance with the approved Plans and Specifications and construction schedule. vi. Conduct field observations and coordinate with Utility's inspectors and the contractor to cure defects and deficiencies in the construction prior to final acceptance. vii. Make timely payment to the contractor for work performed in connection with the Project. viii. Ensure access and permit Utility's inspectors and other authorized representatives to inspect the waterline construction at all times. ix. Conduct and coordinate final inspection of the Project in the presence of Utility's Engineer and Inspector, transmit final list of items to be completed or repaired and observe contractor correction of same. x. Maintain job file. AFA—AFA_Utility Page 3 of 3 Attachment A CSJ #: 0196-01-106; ROWCSJ: 0196-01-107 #U14818 District #: 18-Dallas Code Chart 64 #: 11400 Project: IH 35E Limits: From State School/Mayhill Road (FM 2499) to SL 288/Brinker Road ATTACHMENT B ESTIMATED UTILITY COSTS Based on various calculations, the following are those amounts due and payable for Utility's costs associated with this project. Description Amount Total Estimated Costs $1,162,591.74 Less Betterment Amount Due from Utility $160,900.00 Amount of Total Utility Relocation Costs $1,001,691.74 Estimated Amount Eligible for Reimbursement -(calculated eligibility ratio = 100%) 160,900.00 Amount of Utility Adjustment Due from Utility $160,900.00 Right of Way - Contribution of Funds to the State (Participation -Estimated Amount Eligible for Reimbursement $1,001,691.74 Estimated Amount to be included in Construction Agreement: A. Betterment $160,900.00 B. Utility Adjustment - (non-reimbursable items) $0.00 GRAND TOTAL DUE TO STATE FROM UTILITY $160,900.00 Betterment Ratio Calculation Estimated Betterment Costs 1. 2. Betterment Calculation: Total Cost of Betterment (Estimated) Total Cost of Project (Estimated) Betterment Percentage for Final Cost determination: Final Cost of relocation Determination of Betterment: Comparison of estimated cost to replace `as is" versus estimated costs associated with the betterment Item A: N/A Item 8: N/A AFA-AFA_Utility Page 1 of 1 Attachment B S:\Legal\Our pocuments\Ordinances\16\TxDOT Advance Fundinq Aqrmt Ord.doc ORDINANCE NO. AN ORDIN�iNCE APPROVING A STANDARD UTILITY AGREEMENT U14818 AND AN ADVANCE FUNDING AGREEMENT FOR VOLUNTARY UTILIT'Y RELOCATION FOR IH- 35E, BETWLEN MAYHILL RD. AND LOOP 288 (CSJ NO. 0196-01-106), BETWEEN THE CITY OF DENTON AND THE TEXAS DEPARTMENT OF TIZANSPORTATION (TXDOT), FOR THE RELOCATION AND BETTERMENT OF A CITY WATER LINE ALONG "I'HE I-35E RIGHT- OF-WAY NEAR BRINKER RD.; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENTS AND RELATED DOCtJMENTS; AND PROVIDING POR AN EFFECTIVE DATE. WI-IEREAS, TxDOT is in the process of constructing grade separation improvements along I-35E at Mayhill (new U-turn on west side of overpass), Brinker Rd. (new overpass to connect Bi•inker to the south fi•ontage road), and Loop 288 (complete reconstruction of the Loop 288 overpass to provide 4lanes in each direction). These improvements require the relocation of approximately 2,600 ft. of the City's existing 14 in, water main along the I-35E south frontage road in the vicinity of the planned Buc-ee's development. Since this water main is along an interstate highway, TxDOT is responsible for the total costs of relocating the water main in the same size that currently exists; and WHEREAS, TxDOT has agreed to include the water main relocation and upgrade "betterment" in its roadway construction contract, with the City responsible for only the added costs of the "betterment" (increased size) of the water main. This "betterment" cost has been estimated to be $160,900, which City staff has reviewed and found to be appropriate; NOW THEREFORE THE COUNCII, OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1 The City Manager is hereby authorized to execute the said Standard Utility ngreement and is further authorized by the City Council to expend all funds and to make st�ch payments as are necessary under the Standard Utility Agreement that is attached hereto and incorporated herein by reference. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2016 CI-iRIS WATTS, MAYOR ATTLST: JENNIFER WALTERS, CITY SECRETARY APPROV�D AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ,;. www.cityofdenton.com �������� Legislation Text File #: ID 16-1185, Version: 1 Agenda Information Sheet DEPARTMENT: Engineering Services CM/ ACM: Date: Jon Fortune September 13, 2016 SUBJECT Consider adoption of an ordinance approving a Metropolitan Mobility Agreement for State-Contracted Traffic Signal Construction between the City of Denton and the Texas Department of Transportation (TxDOT), concerning the City providing certain traffic signal equipment with reimbursement by TxDOT for IH 35E grade separation improvements at Loop 288 (CSJ No. 0196-01-106); authorizing the City Manager to execute the agreement; and providing for an effective date. BACKGROUND City staff has been working with TxDOT staff since the Fall of 2015 to have TxDOT construct grade separation improvements along I-35E at Mayhill (add a U-Turn on the west side), Brinker Rd. (add an I-35E overpass to connect Brinker Rd. to the I-35E south frontage road) and Loop 288 (replace the existing I-35E overpass with a longer overpass to allow 4-lanes of Loop 288 in each direction to alleviate congestion at this highly congested intersection). TxDOT has completed the roadway plans to accomplish this work and advertised the project. Bids are scheduled to be received on September 9, 2016, with construction contract award scheduled for September 29, 2016. A portion of this project involves the installation of traffic signals at the intersections of I-35 E with Loop 288/Lilian Miller Parkway within the City of Denton, which the City will operate and maintain upon completion (as is normal for all traffic signals within the City of Denton). The cost of the design and construction of these signals is included in the TxDOT project. However, the City of Denton uses specific manufacturers' equipment for traffic signal control cabinets and cabinet bases, Uninterrupted Power Supply (UPS) system, advanced radar detection, Ethernet radio with antenna and Ethernet switch at traffic signals for uniformity of software, parts and maintenance. As such, the City prefers to supply certain desired equipment for installation by the State at these intersections. The attached Metropolitan Mobility Agreement provides for the City to provide certain equipment and be reimbursed by TxDOT for these materials in a total estimated amount of $53,865. OPTIONS l. Approve the ordinance approving the Metropolitan Mobility Agreement and authorizing the City Manager to execute the agreement. 2. Decline to approve the ordinance; thus declining the reimbursement or declining the opportunity for the City to furnish certain traffic signal equipment and maintain uniformity in the traffic signal systems it must maintain. City of Denton Page 1 of 2 Printed on 9/9/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1185, Version: 1 RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED SCHEDULE OF PROJECT TxDOT plans to complete the grade separation improvements project by mid-2018. FISCAL INFORMATION The City would receive reimbursement for approximately $53,865 of materials it plans to furnish for traffic signals on the proj ect. BID INFORMATION TxDOT will receive bids for the project on September 9, 2016. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Public Infrastructure Related Goal: 2.2 Seek solutions to mobility demands and enhance connectivity EXHIBITS L Metropolitan Mobility Agreement 2. Mobility Ordinance Respectfully submitted: John T. Davis, PE Director of Engineering Services City of Denton Page 2 of 2 Printed on 9/9/2016 �ovt�r�d bv I_�gitiY�rTr^ EXHIBIT 1 CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development STATE OF TEXAS § COUNTY OF TRAVIS § SURFACE TRANSPORTATION PROGRAM — METROPOLITAN MOBILITY AGREEMENT FOR STATE-CONTRACTED TRAFFIC SIGNAL CONSTRUCTION (WITH A MUNICIPALITY PROVIDING LIMITED MATERIALS OR LABOR) THIS AGREEMENT is made by and between the State of Texas, acting through the Texas Department of Transportation, called the "State," and NCTCOG, a Metropolitan Planning Organization charted under the laws of the State of Texas, acting through the City of Denton, called the "City," acting through its duly authorized officers. WITNESSETH WHEREAS, the Intermodal Surface Transportation Efficiency Act of 1991 ("ISTEA"), codified under Title 23 USC Section 101 et seq., authorizes a congestion mitigation and air quality improvement ("CMAQ") program, which has been reauthorized under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users ("SAFETEA—LU"); and WHEREAS, 23 USC §104 establishes a surface transportation program ("STP"); and WHEREAS, 23 USC §134 establishes that Metropolitan Planning Organizations ("MPOs") and the States' Transportation Agencies develop transportation plans and programs for urbanized areas of the State; and WHEREAS, 23 USC §120 establishes the Federal share of funding for STP programs involving the procurement and installation of traffic signals as defined elsewhere in this agreement; and WHEREAS, the State is empowered under existing laws to operate and maintain a system of highways and roadways for public use and benefit; and WHEREAS, the City has requested the State to reimburse the Federal allowable percentage of the cost of installing traffic signals and other items directly related to the operation of an intersection at the intersections established in this agreement, called the "Project;" and WHEREAS, the Project has been designated as a federal-aid project and, thus, this agreement shall be made in accordance with Federal Highway Administration (FHWA) procedures and regulations; and WHEREAS, the City has offered to participate in the development and construction of the Project as defined elsewhere in this agreement; and WHEREAS, it is in the best interest of the City and the State for the City to assist the State by Traffic-Traffic_TEA14 Page 1 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development furnishing and installing traffic signal equipment on the Project; and WHEREAS, the State will secure the federal cost share, and reimburse the City for their appropriate cost associated with the Project as defined elsewhere in this agreement; and WHEREAS, the Texas Transportation Commission passed Minute Order No. 114585 authorizing the Project through the State Transportation Improvement Program; and WHEREAS, the Governing Body of the City has approved entering into this agreement by resolution or ordinance dated p 20_, labeled Attachment A, which is attached to and made a part of this agreement; and WHEREAS, the State is authorized to enter into an agreement with the City for the Project pursuant to Texas Transportation Code §221.002; NOW THEREFORE, the State and the City agree as follows: AGREEMENT Article 1. Period of this Agreement A. This agreement becomes effective on final execution by both parties and shall remain in effect as long as the traffic signal equipment furnished by the City is in operation at the described location and the signal project is incomplete, or unless otherwise terminated or modified as provided below. Article 2. Scope of Work A. Signal Warranting Data. The City shall collect, prepare, and provide to the State the required warranting and justification data for each signalized intersection contemplated in this agreement. The City shall provide the data to the State in a format approved by the State. Only those intersections that are warranted and approved by the State shall be eligible for signalization under this agreement. B. Intersection Locations. 1. All State-approved intersections which are on routes that are part of the State Highway System are listed in Attachment B, which is attached to and made a part of this agreement. These intersections are referred to as "on-system" intersections. � 2. All State-approved intersections which are not on routes that are part of the State Highway System are listed in Attachment C, which is attached to and made a part of this agreement. These intersections are referred to as "off-system" intersections. Traffic-Traffic_TEA14 Page 2 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development C. Design and Construction Responsibilities. 1. The City shall develop the construction plans and specifications associated with the installation of traffic signals at each intersection. The construction plans and specification require final approval by the State. 2. If indicated in the plans and specifications, the furnishing or installing of a portion of the traffic signal equipment may be part of the construction to be undertaken by the City. 3. The City's plans and specifications shall conform to the requirements of the latest edition of the Texas Manual on Uniform Traffic Control Devices (TMUTCD) and use applicable Texas Department of Transportation standard specifications, special specifications, special provisions, and standard sheets. 4. The State will advertise for construction bids, let the construction contract, or otherwise provide for the construction and will supervise the construction as required by the construction plans and specifications. The State will secure the City's concurrence of the construction plans and specifications prior to the award of the construction contract. D. Implementation Plan 1. If the Project includes any traffic signal systems, the City shall attach to this agreement an FHWA-approved Implementation Plan as Attachment D, which is made a part of this agreement. 2. The Implementation Plan shall address the operation and maintenance of the traffic signal systems after the Project is complete. E. Any variations to the Scope of Work are provided in Attachment E, which is attached to and made a part of this agreement. Article 3. Personnel, Equipment, and Material A. The City shall use labor and supervisory personnel employed directly by the City. B. All employees of the City assigned to this agreement shall have sufficient knowledge and experience to enable them to perform the duties assigned to them. C. The State may require the City to remove any employee from the work authorized in this agreement if, in the sole opinion of the State, the work of that employee does not comply with this agreement or the conduct of that employee is detrimental to the Project. D. All materials used for the work shall be new and undepreciated. E. Reimbursement for the use of materials purchased by other than competitive bid procedures will be made only if: 1. Those procedures are shown to be in the public interest; and 2. The State has given prior approval for the use of materials. F. The City shall use City-owned machinery, equipment, and vehicles for the work. In the event that the City does not have the necessary machinery, equipment, and vehicles, they may be rented or leased at the lowest bid price of those submitted by two or more approved bidders. Traffic-Traffic_TEA14 Page 3 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development Article 4. Compensation A. The maximum amount reimbursable by the State to the City under this agreement without modification is 53 865.00. A cost estimate of the traffic signal equipment furnished by the City under this agreement, labeled Attachment F, is attached to and made part of this agreement. B. Reimbursement of Costs to City. The State will reimburse the City for costs incurred under this agreement, provided the City has paid from City funds those obligations previously billed. 1. The State will reimburse the City up to 100% of the cost of furnishing or installing City traffic signal equipment according at the locations described in Attachment B. 2. The State will pay up to 100% of the construction costs at the locations described in Attachment B. 3. The State will reimburse the City up to N/A% of the cost of furnishing or installing City traffic signal equipment according at the locations described in Attachment C. 4. The State will pay up to N/A% of the construction costs at the locations described in Attachment C. 5. The State will reimburse the City for applicable labor, equipment use, materials, supplies, travel expenses, and warehouse or material handling charges. 6. The State will not reimburse unsupported costs, costs incurred prior to the issuance of a written work order by the State, and costs incurred after final acceptance by the State. 7. The State shall make payment to the City within thirty (30) days from the receipt of the City's request for payment contingent upon both: a. The State's: 1) Acceptance of the completed Project; or 2) Partial acceptance by letter, on a quarterly basis, wherever the work; and materials provided have been found by the State to satisfy the requirements of the plans and specifications; and b. The City's submission of an original and four copies of a request for payment: 1) To the following address 4777 E. Highway 80, Mesquite, TX 75150; 2) On the State's Form 132 Billing Statement or other type of invoice acceptable to the State; and 3) That documents the work performed and materials used through descriptions, quantities, unit prices, and extensions. C. City Payments to State. 1. Thirty (30) days prior to the date set for the State to receive construction bids, the City shall remit payment to the state in the amount equal to: a. N/A% of the estimated bid items for locations described in Attachment C; and b. N/A% of the estimated engineering and contingencies (State inspection costs) for the bid items for locations described in Attachment C; and c. N/A% of the estimated State inspection costs for City furnished and/or installed traffic signal equipment for locations described in Attachment C; and d. N/A% of any federal non-participating costs. Traffic-Traffic_TEA14 Page 4 of 14 Revised 03/28/2016 STP:FED STATE LETTING � E. CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development 2. It is estimated that the State inspection cost will be N/A% of construction cost. 3. The City check or warrant is $N/A. 4. Payments to the State shall be by check or warrant made payable to "Texas Department of Transportation Trust Fund." The check or warrant shall be deposited by the State in an escrow account to be managed by the State. Funds in the escrow account may only be applied by the State to the Project. 5. In the event it is determined by the State that the initial amount submitted by the City for construction of the project is insufficient to cover the State's costs, the City will within thirty (30) days from the State's written notification, make additional funding available to the State. 6. Following completion and the State's acceptance of the project, the State will make a final audit of all costs associated with the project. Upon completion of the final audit, any remaining funds due the City will be promptly returned. The City shall be responsible for any funds determined to be ineligible for federal reimbursement, and shall reimburse the State the amount of those funds previously provided to it by the State. If the City will perform any work under this agreement for which reimbursement will be provided by or through the State, the City must complete training before federal spending authority is obligated. Training is complete when at least one individual who is working actively and directly on the Project successfully completes and receives a certificate for the course entitled Loca/ Government Project Procedures Qualification for the Texas Department of Transportation. The City shall provide the certificate of qualification to the State. The individual who receives the training certificate may be an employee of the City or an employee of a firm that has been contracted by the City to perform oversight of the Project. The State in its discretion may deny reimbursement if the City has not designated a qualified individual to oversee the Project. Article 5. Insurance If this agreement authorizes the City or its contractor to perform any work on State right of way, before beginning work the entity performing the work shall provide the State with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of coverage in the amounts and types specified on the Certificate of Insurance for all persons and entities working on State right of way. This coverage shall be maintained until all work on the State right of way is complete. If coverage is not maintained, all work on State right of way shall cease immediately, and the State may recover damages and all costs of completing the work. Article 6. Responsibilities of the Parties The State and the City agree that neither party is an agent, servant, or employee of the other party and each party agrees it is responsible for its individual acts and deeds as well as the acts and deeds of its contractors, employees, representatives, and agents. Traffio-Traffic_TEA14 Page 5 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development Article 7. Progress A. Communications. The City shall confer with the State during the progress of the Project. The City shall prepare and present all information that is requested by the State or is necessary for the State to evaluate the work performed by the City. B. Reports. The City shall promptly advise the State in writing of events that may have a significant effect on the progress of the Project. 1. The City shall promptly advise the State in writing of any problems, delays, or adverse conditions that will materially affect the ability to meet scheduled goals. This disclosure will be accompanied by statement of the action taken or contemplated and any State or federal assistance needed to resolve the situation. 2. The City shall also promptly advise the State in writing of favorable developments or events that enable meeting goals sooner than anticipated. Article 8. Inspection of Work A. The State shall make frequent and complete inspection of all materials, equipment, and work to determine and permit certification that: 1. They are in suitable condition for operation and maintenance by the City after completion; and 2. All applicable requirements of the plans and specifications are satisfied. B. The City shall provide opportunities, facilities, and representative samples, as required by the State to perform the above inspections. C. The State will promptly notify the City of any deficiencies determined by the above inspections and the City shall, without delay, take corrective action acceptable to the State. Article 9. Maintenance, Retention, and Audit of Records A. Retention Period. The City shall maintain all books, documents, papers, computer- generated files, accounting records, and all other evidence pertaining to costs incurred and work performed under this agreement, and shall make those materials available at its office during the time period covered and for four years from the date of final payment under this agreement, until completion of all audits, or until pending litigation has been completely and fully resolved, whichever occurs last. B. Availability. The State, FHWA, United States Department of Transportation and its Office of the Inspector General, State Auditor's Office, United States Comptroller General, and any of their authorized representatives shall have access to the records for the purpose of making audits, examinations, excerpts, and transcriptions. C. State Auditor. The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under this agreement or indirectly through a subcontract under this agreement. Acceptance of funds directly under this agreement or indirectly through a subcontract under this agreement acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an Traffio-Traffic ,,TEA14 Page 6 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAL/18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. D. Audit Timing. The State will prepare an audit: 1. Upon completion of the work authorized or early termination of the agreement to determine the amount of the work performed and materials furnished by the City at that time; and 2. At any time it is deemed to be in the best interest of the State. Article 10. Disputes The State's decision on disputes regarding the responsibilities and obligations set forth in this agreement shall be final and binding. Article 11. Non-collusion The City shall warrant that it has not employed or retained any company or person, other than a bona fide employee working for the City, to solicit or secure this agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or making of this agreement. If the City breaches or violates this warranty, the State shall have the right to annul this agreement without liability or, in its discretion, to deduct from the agreement price or consideration, or otherwise recover the full amount of the fee, commission, brokerage fee, gift, or contingent fee. Article 12. Termination and Remedies A. Causes. This agreement shall remain in effect until the project is completed and accepted by all parties, unless the agreement is terminated by: 1. Written agreement of the parties; 2. Written notice from either party because the other party did not fulfill its contractual obligations; 3. Written notice from the City, after the completion of preliminary engineering, specifications, and estimates, that it elects not to provide funding; 4. The State if the Project is inactive for thirty-six months or longer and no expenditures have been charged against federal funds; or 5. Thirty (30) days written notice from the State, with or without cause. B. Payments Due After Termination. 1. If the State terminates this agreement, the State shall not be liable for any costs other than those due at the time of termination. 2. If this agreement is terminated under Article 12(A)(3) and the project does not proceed because of insufficient funds, the City shall reimburse the State for its reasonable actual costs incurred during the project. 3. If this agreement is terminated under Article 12(A)(5), the City shall not incur costs during the thirty (30) days after notice is given if those costs are more than the costs incurred during the preceding thirty (30) days. Traffio-Traffic_TEA14 Page 7 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development C. Value of Completed Work. The State shall determine the value of any work that has been performed at the time of termination. In determining the compensation for partial work, the State will consider 1. Actual costs incurred in performing the work to the date of termination; 2. The amount of work that was satisfactorily completed as of the date of termination; 3. The value of the work that is usable by the State; 4. The cost to the State of employing others to complete the required work; 5. The time required to employ others to complete the work; and 6. Any other factors that affect the value to the State of the work performed. D. Payment of Additional Costs. If this agreement is terminated under Article 12(A)(2), the State may take over the project and complete the work. The City shall be liable to the State for any additional costs to the State caused by the termination. E. Excusable Delays. Except with respect to subcontractors, the City will not be considered in default for any failure that arises out of causes beyond the control and without the negligence of the City. These include acts of God or the public enemy, acts of the Government in its sovereign immunity or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather. F. Surviving Requirements. Except for provisions that specifically establish responsibilities that extend beyond the agreement period, termination and payment under this article extinguish the rights, duties, and obligations of the State and the City under this agreement. G. Remedies. 1. Any costs incurred by the State arising from the termination of this agreement under Article 12(A)(2) or (3) shall be paid by the City. 2. This agreement shall not be considered as specifying the exclusive remedy for any default, but all remedies existing at law and in equity may be pursued by either party and shall be cumulative. Article 13. Compliance with Laws A. Compliance Requirement. The parties shall comply with all applicable federal, state, and local laws, statutes, ordinances, rules, and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any manner affecting the performance of this agreement, including worker's compensation laws, minimum and maximum salary and wage statutes and regulations, nondiscrimination laws, and licensing laws and regulations. B. Proof of Compliance. At the request of the State, the City shall furnish satisfactory proof of its compliance with this article. Article 14. Gratuities A. Employees Not To Benefit. Employees of the State or the City shall not accept any benefits, gifts, or favors from any person doing business with, or who reasonably speaking may do business with the State or the City under this agreement. Traffic-Traffic_TEA14 Page 8 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development B. Liabiliity. The State may terminate this agreement if the City or any other person who is doing business with or who reasonably speaking may do business with the State under this agreement offers benefits, gifts, or favors to State employees in violation of this policy. Article 15. Subcontracting A. Prior Approval. The City shall not assign, subcontract, or transfer services related to the work under this agreement without the advance written approval of the State. B. Required Provisions. All subcontracts shall include the provisions contained in this agreement and any other provisions required by law. C. City Responsibilities. A subcontract does not relieve the City of any responsibilities under this agreement. Article 16. Amendments to this Agreement Any change to one or more of the terms and conditions of this agreement shall not be valid unless made in writing and agreed to by the parties before the change is implemented. Article 17. Legal Construction If any provision in this agreement is for any reason held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability shall not affect any other provision of this agreement. In that case, this agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in it. Article 18. Successors and Assigns A. The City and the State bind themselves and their successors and assigns to each other party of this agreement and to the successors and assigns to each other party with regard to all covenants of this agreement. B. The City shall not assign, subcontract, or otherwise transfer its interests in this agreement without the written approval of the State. Article 19. Sole Agreement This agreement constitutes the sole agreement between the parties concerning the Project and supersedes any prior understandings or written or oral agreements between the parties respecting the subject matter of this agreement. Article 20. Debarment Certification The parties are prohibited from making any award at any tier to any party that is debarred or suspended or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549, "Debarment and Suspension." By executing this agreement, the City certifies that it is not currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Assistance Programs under Executive Order 12549 and further certifies that it will not do business with any party that is currently debarred, suspended, or otherwise excluded from or ineligible for participation in Federal Traffic-Traffic_TEA14 Page 9 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development Assistance Programs under Executive Order 12549. The parties to this agreement shall require any party to a subcontract or purchase order awarded under this agreement to certify its eligibility to receive federal funds and, when requested by the State, to furnish a copy of the certification. Article 21. Civil Rights Compliance The City shall comply with the regulations of the United States Department of Transportation as they relate to non-discrimination (49 CFR Part 21 and 23 CFR Part 200), and Executive Order 11246 titled "Equal Employment Opportunity," as amended by Executive Order 11375 and supplemented in the Department of Labor Regulations (41 CFR Part 60). Article 22. Disadvantaged Business Enterprise (DBE) Program Requirements A. The parties shall comply with the DBE Program requirements established in 49 CFR Part 26. B. The City shall adopt, in its totality, the State's federally approved DBE program. C. The City shall set an appropriate DBE goal consistent with the State's DBE guidelines and in consideration of the local market, project size, and nature of the goods or services to be acquired. The City shall have final decision-making authority regarding the DBE goal and shall be responsible for documenting its actions. D. The City shall follow all other parts of the State's DBE program referenced in TxDOT Form 2395, Memorandum of Understanding Regarding the Adoption of the Texas Department of Transportation's Federally-Approved Disadvantaged Business Enterprise by Entity, and attachments found at web address http://ftp.dot.state.tx.us/pub/txdot- ir�f�l�c� Id��� � d ��� �:�Y��I� � t�m ���. ._...� E. The City shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any U.S. Department of Transportation (DOT)-assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The City shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non- discrimination in award and administration of DOT-assisted contracts. The State's DBE program, as required by 49 CFR Part 26 and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the City of its failure to carry out its approved program, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 USC 1001 and the Program Fraud Civil Remedies Act of 1986 (31 USC 3801 et seq.). F. Each contract the City signs with a contractor (and each subcontract the prime contractor signs with a sub-contractor) must include the following assurance: The contractor, sub- recipient, or sub-confractor shal/ not discriminate on the basis of race, co/or, national origin, or sex in the performance of this contract. The contractor shall carry ouf applicable requirements of 49 CFR Part 26 in fhe award and administration of DOT-assisted contracts. Failure by the contracfor to carry out these requirements is a materia/ breach of Traffic-Traffic_TEA14 Page 10 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development fhis agreement, which may resu/t in the termination of this agreement or such other remedy as the recipient deems appropriafe. Article 23. Procurement and Property Management Standards The parties shall adhere to the procurement standards established in 49 CFR § 18.36 and with the property management standard established in 49 CFR § 18.32. Article 24. Office of Management and Budget (OMB) Cost Principles In order to be reimbursed with federal funds, the parties shall comply with the Cost Principles established in 2 CFR 200 that specify that all reimbursed costs are allowable, reasonable, and allocable to the Project. Article 25. Lobbying Certification In executing this agreement, each signatory certifies to the best of that signatory's knowledge and belief, that: A. No federal appropriated funds have been paid or will be paid by or on behalf of the parties to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with federal contracts, grants, loans, or cooperative agreements, the signatory for the City shall complete and submit the Federal Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The parties shall require that the language of this certification shall be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and all sub-recipients shall certify and disclose accordingly. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 USC §1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Article 26. Federal Funding Accountability and Transparency Act Requirements A. Any recipient of funds under this agreement agrees to comply with the Federal Funding Accountability and Transparency Act and implementing regulations at 2 CFR Part 170, including Appendix A. This agreement is subject to the following award terms: i�t����i1��rvw.��J���������r�t I� ������� ������ �1 ��i��1 � �����.� and ��t�.��'v�uv�o. �c�. �vlf�#� �1 I�a1'����t���4�i�_14��������I� ���i�� ��I'f Traffic-Traffic_TEA14 Page 11 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAL/18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development B. The City agrees that it shall: 1. Obtain and provide to the State a Central Contracting Registry (CCR) number (Federal Acquisition Regulation, Part 4, Sub-part 4.1100) if this award provides for more than $25,000 in Federal funding. The CCR number may be obtained by visiting the CCR web-site whose address is: �rtt��:11�r��.���, c��rl �ar���l�.����li�l�� .l; 2. Obtain and provide to the State a Data Universal Numbering System (DUNS) number, a unique nine-character number that allows the Federal government to track the distribution of federal money. The DUNS number may be requested free of charge for all businesses and entities required to do so by visiting the Dun & Bradstreet on-line registration website ht� :1lf�dq��.dnb.�� _I��bf�r ; and 3. Report the total compensation and names of its top five executives to the State if: a. More than 80% of annual gross revenues are from the Federal government, and those revenues are greater than $25,000,000; and b. The compensation information is not already available through reporting to the U.S. Securities and Exchange Commission. Article 27. Single Audit Report A. The parties shall comply with the requirements of the Single Audit Act of 1984, P.L. 98-502, ensuring that the single audit report includes the coverage stipulated in 2 CFR 200. B. If threshold expenditures of $750,000 or more are met during the City's fiscal year, the City must submit a Single Audit Report and Management Letter (if applicable) to TxDOT's Audit Office, 125 E. 11 th Street, Austin, TX 78701 or contact TxDOT's Audit Office at f�����m�����. k���t.���^i�r�;�i�l����d��l���i��i���c�itl���ta�t._ht !. C. If expenditures are less than $750,000 during the City's fiscal year, the City must submit a statement to TxDOT's Audit Office as follows: "We did not meet the $750,000 expenditure threshold and therefore, are not required to have a single audit performed for FY " D. For each year the project remains open for federal funding expenditures, the City will be responsible for filing a report or statement as described above. The required annual filing shall extend throughout the life of the agreement, unless otherwise amended or the project has been formally closed out and no charges have been incurred within the current fiscal year. Article 28. Notices All notices to either party by the other under this agreement shall be delivered personally or sent by certified or U.S. mail, postage prepaid, addressed to the other party at the following addresses: Traffic-Traffic�TEA14 Page 12 of 14 Revised 03/28/2016 STP:FED STATE LETTING City City of Denton Attn: Traffic 901-A Texas Street Denton . TX 76209 CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development State Texas Department of Transportation Attn: District En�ineer 4777 E. Hiqhwav 80 Mesquite, TX 75151 All notices shall be deemed given on the date delivered or deposited in the mail. Either party may change the above address by sending written notice of the change to the other party. Either party may request in writing that notices shall be delivered personally or by certified U.S. mail, and the request shall be carried out by the other party. Article 29. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this agreement on behalf of the entity represented. Traffio-Traffic�TEA14 Page 13 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Develapment THIS AGREE ENT IS EXECUTED by the State and the City in duplicate. �� Signature Type or Printed Name Title ��� Signature James K. Selman, P.E. Type or Printed Name Dallas District Engineer �—.._� . .,._.,____m._..._�_. . ......._�...., Title �� Traffic-Traffic_TEA14 Page 14 of 14 Revised 03/28/2016 STP:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development � � � •" • •., �.�; , • • •,. •.� . Traffic-Traffic_TEA14 Page 1 of 1 Attachment A CMAQ:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20205 Not Research and Development , , � • • Traffic-Traffic .TEA14 Page 1 of 1 Attachment B CMAQ:FED STATE LETTING CSJ # 0196-06-106 District #DAU18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development , , • • Traffic-Trafficn.TEA14 Page 1 af 1 Attachment C CMAQ:FED STATE LETTING CSJ # 0196-06-106 District #DAV18 Code Chart 64 # 11400 Project: IH35E at Loop 288/Lillian Miller Pkwy Federal Highway Administration CFDA No.: 20.205 Not Research and Development �1TTQICHMENT F COST ESTIMATE The following table is an estimate of cost participation in the Project. This is only an estimate and final participation amounts will be based on actual costs. Reimbursable Traffic Signal Equipment Supplied by the City of Denton Project Total $53,865.00 I-35 at Loop 288 Ethernet Radio with Antenna 1 EA $2,900.00 __� � ..� _ .�...w�....... �.� �_.... ._ Ethernet Radio Cable ' 265 LF $395.00 Managed Ethernet Switch 1 EA $1,650.00 -- __ -- — __� �...,,u. �.�....., .....�..... Wavetronix Advance Radar Detectors 4 EA $23,100.00 .� �.aaaaaau.�,�.�.�eee_____ —.�.�.w�.w.. u� _ . � Wavetronix Radar Detection Cable 1370 LF $6,380.00 �. m.aa � .�.n �...� __ ��������� ... Traffic Signal Controller Cabinet 1 EA $14,200.00 __..�. �. . � ��� �.��e. � _ M.�m. . Traffic Signal Cabinet Pedestal Base 1 EA $450.00 �.,..,. �� �._. _.��_�. _.�_�� ��.... Traffic Signal UPS/BBU 1 EA $4,790.00 _ � _... �. .. �.��,. � ,._ Intersection Total $53,865.00 Traffic-Traffic_TEA14 Page 1 of 1 Attachment F CMAQ:FED STATE LETTING S:\Legal\Our pocuments\OrdinancesUb\Metropolitan Mobility Agreement- traffic signal construction.doc ORDINANCE NO. AN ORDINANCE APPROVING A METROPOLITAN MOBILITY AGREEMENT FOR STATE- CONTRACTED TRAFFIC SIGNAL CONSTRUCTION BETWEEN THE CITY OF DENTON AND THE TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT), CONCERNING THE CITY PROVIDING CERTAIN TRAFFIC SIGNAL EQUIPMENT WITH REIMBURSEMENT BY TXDOT FOR IH 35E GRADE SEPARATION IMPROVEMENTS AT LOOP 288 (CSJ NO. 0196- O1-106); AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, City staff has been working with TxDOT staff since the Fall of 2015 to have TxDOT construct grade separation improvements along I-35E at Mayhill (add a U-Turn on the west side), Brinker Rd. (add an I-35E overpass to connect Brinker Rd. to the I-35E south frontage road) and Loop 288 (replace the existing I-35E overpass with a longer overpass to allow 4-lanes of Loop 288 in each direction to alleviate congestion at this highly congested intersection). TxDOT has completed the roadway plans to accomplish this work and advertised the project. WHEREAS, a portion of this project involves the installation of traffic signals at the intersections of I-35 E with Loop 288/Lilian Miller Parkway within the City of Denton, which the City will operate and maintain upon completion (as is normal for all traffic signals within the City of Denton). The cost of the design and construction of these signals is included in the TxDOT project; NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1 The City Council hereby approves the above described Metropolitan Mobility Agreement as set forth in Attachment A hereto. SECTION 2. The City Manager is hereby authorized to execute the said Metropolitan Mobility Agreement and is further authorized by the City Council to expend all funds and to make such payments as are necessary under the Metropolitan Mobility Agreement that is attached hereto and incorporated herein by reference. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2016 CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY :' APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: � � City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ,;. www.cityofdenton.com �������� Legislation Text File #: ID 16-1031, Version: 1 AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: AGENDA DATE: Bryan Langley September 13, 2016 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, a Texas home-rule municipal corporation, providing for, authorizing, and approving the execution by the City Manager, or his designee, of an Equipment Supply and Services Contract for the purchase of twelve (12) reciprocating internal combustion engines and related technical services between the City of Denton and Wartsila North America, Inc., a Maryland corporation„ approving the execution of such other and further related documents deemed necessary to effectuate this transaction by the City Manager, or his designee, which are incident or related thereto; confirming and ratifying that the City of Denton, its City Manager, and its City Attorney shall be authorized and empowered to perform such acts and obligations as are reasonably required to consummate this transaction; ratifying all prior actions taken by the City Council, City Manager and City Attorney, or their designees, in furtherance of the foregoing transaction; and determining that specific information in the said documents involved in this transaction pertain to a"competitive electric matter" as set forth under the provisions of §§551.086 and 552.133 of the Texas Government Code, as amended; adopting significant recitations, findings and conclusions, as are set forth in the preamble of this ordinance; that the purchase of power generating equipment and services made by the City under the terms of this Equipment Supply and Services Contract are in the public welfare; authorizing the expenditure of funds therefore; providing an effective date. RFP INFORMATION Denton Municipal Electric (DME) staff has presented the Renewable Denton Plan (RDP) to the Public Utilities Board and City Council at meetings between May 2015 and present. During these meetings, DME has outlined the associated components of the RDP, including over 300 MW of new renewable capacity to reach 70% renewable penetration and construction of a 220 MW quick start facility for firming the new renewable capacity. DME has presented the estimated cost that would be required to implement the RDP, including the up-front capital cost for the quick-start facility. This contract is a required step in the implementation of the RDP. In order to ensure that the DME staff can effectively firm the new variable renewable capacity, the quick start facility is required. Requests for Proposals were sent to 53 prospective suppliers. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Four (4) proposals were received. The proposals were evaluated based upon identification and understanding of the City's requirements for the project, past performance and experience on projects of this magnitude and City of Denton Page 1 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1031, Version: 1 complexity, experience and qualifications of the respondent and key personnel available for the project, and proposed schedule for services to be performed. Wartsila North America, Inc. was ranked with the highest score and determined to be the best value for the City. Wartsila North America, Inc. (Wartsila), is the premier manufacturer of Reciprocating Internal Combustion Engines (RICE) for use in electric generating stations. They currently provide engines and auxiliary equipment for electric power generation worldwide, including the State of Texas. Based on the final scoring as set forth in the RFP, DME would like to award a contract to Wartsila, which will provide the RICE and auxiliary equipment for the Denton Energy Center. The contract can be broken down into the following items: • Reciprocating Engine Generator Sets rated for 220 MWe output, technical assistance during installation, testing and commissioning, training and warranty • Furnish Emissions Control system for or Alternate Bid to provide reduced emissions • Furnish engine cooling radiators that meet the Ultra Low-Noise standards • Furnish recommended operating spare parts PRIOR ACTION/REVIEW (Council, Boards, Commissions) • 12/14/2015 - Public Utilities Board approved RDP Resolution • 06/21/2016 - Council approved RDP Resolution • 06/21/2016 - Council approved financing • 08/08/2016 - Public Utilities Board Closed Session discussion PRINCIPAL PLACE OF BUSINESS Wartsila North America, Inc. Houston, TX RECOMMENDATION Approve a contract with Wartsila North America, Inc. ESTIMATED SCHEDULE OF PROJECT • 09/13/2016 - Approval by City Council and contract signed • Summer 2018- Commercial Operation Date (COD) FISCAL INFORMATION This project has been budgeted in the Denton Municipal Electric budget and implementation schedule. A payment to Wartsila of 20% within 10 days of approval is required under this contract. This payment is planned to be paid out of the Electric Operating Fund reserve and reimbursed from proceeds of the Utility System Revenue Bonds, Series 2016 anticipated to close in October. A budget amendment for the FY 2015-16 Electric Operating Fund for this payment was presented to City Council as part of the budget approval process on September 13, 2016. City of Denton Page 2 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1031, Version: 1 STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Related Goal: EXHIBITS Exhibit l: Ordinance Exhibit 2: Contract Organizational Excellence 2.3 Promote superior utility services and facilities Respectfully submitted: Chuck Springer, 349-8260 Director of Finance For information concerning this acquisition, contact: William A. Bunselmeyer at 349-7328. City of Denton Page 3 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ EXHIBIT 2 �RDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY QF DENTON, A TEXAS HOME- RULE MUNICIPAL CORPORATION, PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER, OR HIS DESIGNEE, OF AN EQUIPMENT SUPPLY AND SERVICES CONTRACT FOR THE PURCHASE OF TWELVE (12) RECIPROCATING INTERNAL COMBUSTION ENGINES AND RELATED TECHNICAL SERVICES BETWEEN THE CITY OF DENTON AND WARTSILA NORTH AMERICA, INC., A MARYLAND CORPORATION; APPROVING THE EXECUTION OF SUCH OTHER AND FURTHER RELATED DOCUMENTS DEEMED NECESSARY TO EFFECTUATE THIS TR.ANSACTION BY THE CITY MANAGER, OR HIS DESIGNEE, WHICH ARE INCIDENT OR RELATED THERETO; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION; RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL, CITY MANAGER AND CITY ATTORNEY, OR THEIR DESIGNEES, IN FURTHERANCE OF THE FOREGOING TR.ANSACTION; AND DETERMINING THAT SPECIFIC INFORMATION CONTAINED IN SAID DOCUMENTS INVOLVED IN THIS TR.ANSACTION PERTAIN TO A"COMPETITIVE ELECTRIC MATTER" AS SET FORTH UNDER THE PROVISIONS OF §§551.086 AND 552.133 OF THE TEXAS GOVERNMENT CODE, AS AMENDED; ADOPTING SIGNIFICANT RECITATIONS, FINDINGS AND CONCLUSIONS, AS ARE SET FORTH IN THE PREAMBLE OF THIS ORDINANCE; THAT THE PURCHASE OF POWER GENERATING EQUIPMENT AND SERVICES MADE BY THE CITY UNDER THE TERMS OF THIS EQUIPMENT SUPPLY AND SERVICES CONTR.ACT ARE IN THE PUBLIC WELFARE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas ("Denton") is a Home-Rule City and a Texas municipal corporation governed by the constitution and laws of the State of Texas; and WHEREAS, in accordance with the provisions of §551.086 of the Texas Government Code, after due notice of the public meeting was provided as required by law, this "Equipment Supply and Services Contract" between the City of Denton, Texas and Wartsila North America, Inc., a Maryland corporation, (hereafter the "Transaction") was submitted for final consideration to the Denton Public Utilities Board on August 8, 2016; a majority of the Public Utilities Board ("PUB"), a"Public Power Governing Body" as defined by State law, convened a Closed Meeting as permitted by law, and discussed, considered, and deliberated the Transaction; and thereafter in its Closed Meeting proceeded to take final action and recommend to the City Council that the Transaction by and between Denton and Wartsil� North America, Inc. be recommended for approval by a vote of six (6) in favor to zero (0) opposed, being a majority vote of all PUB members present, in substantially the form of the Equipment Supply and Services Contract presented to it; and WHEREAS, in accordance with the provisions of §551.086 of the Texas Government Code, after due public notice being given, the City Council, a"Public Power Utility Governing EXHIBIT 2 Body" under Senate Bi117, the Council has discussed, deliberated, and considered the Transaction, the subject of this ordinance, in a Closed Meeting of the City Council on September 13, 2016, after receiving a legal opinion of counsel that the Transaction is a proger item for consideration in its Closed Meeting, which item involves competitive electric matters, including business and commercial information, which if disclosed, would give advantage to its competitors or prospective competitors; and WHEREAS, the City Council has further determined and finds that specific information contained in the "Equipment Supply and Services Contract" and similar type information contained in all other documents which are related thereto as from time to time may be executed by the City of Denton, Texas and/or Wartsila North America, Inc., in connection therewith, should be excepted from public disclosure, as permitted by the provisions of §552.133 of the Texas Government Code, as information that is reasonably related to a competitive electric matter ("Competitive Information"), the disclosure of documents would provide an advantage to the competitors or prospective competitors of Denton Municipal Electric ("DME"); and WHEREAS, the City Council has further determined that it is in the public interest that it should exercise its right under the Texas Government Code to lawfully safeguard and keep the Competitive Information contained in the documents in the preceding paragraph sealed, as it is competitive electric and financial information; and WHEREAS, the City Council finds that said Transaction involves Denton purchasing from W�rtsila North America, Inc., twelve (12) reciprocating internal combustion engines and related technical services; and that such Transaction is related to Denton's Renewable Denton Plan approved by the City Council by resolution dated June 21, 2016 (Resolution No. R2016-014) and will provide Denton the ability to generate electricity during peak loading times while maintaining a consistent and reliable supply of electricity thereby benefiting the ratepayers of DME; and WHEREAS, the Council, having further convened an open public meeting on this item on the September 13, 2016, and having discussed the same, has considered all proposals provided by firms in response to Denton's Request For Proposals and finds and concludes that Wartsila North America, Inc., should be selected by Denton to provide the reciprocating internal combustion engines required for its power generation plant; and the Council hereby takes fnal action and approves this Transaction by a vote of (_) for and (_) against. WHEREAS, Denton desires to enter into such other arrangements in support of the Equipment Supply and Services Contract (hereafter "Contract") with Wartsila North America, Inc., which are incident and related to the said Contract, and to take such additional actions as the City Manager or his designee, shall determine to be necessary and advisable to consummate and effectuate the matters set forth herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations contained in the above Preamble are incorporated herewith and are considered to be a part of this Ordinance. EXHIBIT 2 SECTION 2. The City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respectively, the Equipment Supply and Services Contract, by and between the City of Denton, Texas and W�rtsila North America, Inc., a Maryland corporation, under the terms and conditions set forth in Exhibit "A", attendant with all Annexes and Exhibits attached thereto, and made a part hereof, with such ancillary instruments, changes and additions which are in substantial compliance with said Contract as the City Manager, or his designee, may approve, and to consummate the execution and delivery thereo� on behalf of the City of Denton by or at the direction of the City Manager, or his designee. SECTION 3. The City Council, hereby approves and authorizes the City Manager and City Secretary, and their respective designees, to execute and attest respectively, all other documents which are incident and related to the Equipment Supply and Services Contract referenced herein, and to take such additional actions as the City Manager, or his designee, shall determine to be necessary and advisable to effectuate the matters set forth above. SECTION 4. The City Manager, the City Attorney, or their designees, be, and each of them individually hereby is, authorized and empowered to perform all such acts and obligations as required with respect to the Equipment Supply and Services Contract described herein. SECTION 5. The City Manager, the City Attorney or their designees be, and each of them individually hereby is, authorized, empowered and directed to negotiate, deliver and perform all such acts and things and to sign all such documents, each together with such amendments, changes and additions thereto as the City Manager, the City Attorney or their respective designees shall determine to be necessary or advisable to effectuate the matters set forth herein, any such determination to be conclusively evidenced by the taking or causing to be taken of such action or the execution and delivery of any such documents by the City Manager, the City Attorney, or their designees. SECTION 6. All prior actions taken by the City Council, the City Manager, the City Attorney, or their designees, in furtherance of the foregoing matters be and hereby are ratified, confirmed, approved and authorized in all respects as of the dates and times such actions were taken. SECTION 7. Tmmediately following the execution and delivery of the documents described as the Equipment Supply and Services Contract the City Secretary is hereby directed to seal and maintain said docuxnents in her custody and control, as documents excepted from public disclosure under the provisions of §552.133 of the Texas Government Code (the "Public Power Exception") unless otherwise lawfully ordered to disclose said documents. SECTION 8. This ordinance and a copy of the Equipment Supply and Services Contract, including the related Annexes and Exhibits as redacted of Competitive Information shall be open for public inspection. However, the non-redacted Equipment Supply and Services Contract, including the related Annexes and Exhibits, appended to this Ordinance shall not be produced for public inspection, but shall be sealed, as provided for in Section 7 above. EXHIBIT 2 S�CTIt�hl '�. Tl�e e.�pel7dit��•e af f`ur�ds as �,raviciec� fc��� iz� t�zis c�rdizl�t�ce �s ��et•�by �uthorizerP. SEC� IQN l C�. T"��is c���d�nance sfxail b�cc���7e el�f�,ctive iinn�edi��ely upc�n �ts �assage and �ppraval. I'A��EL7 AI�T� �PI'����T� tl�as t�le d�iy c�f S�pte�l�bet•, ?Ol�. CI-�IRIS 'v�ATT�. M�i`r'{�R �,TTEST: JEI'��*III'ER t�VALTERS, C7T`�' SECRE`�"ARY : AP�RO"v'�D fi�S T{� LEGAL FC7RM; ANITA. BtI�G�SS, �ITY ATTQRNE�' �� �� .a _ — By° ' � ��.. EQUIPMENT SUPPLY AND SERVICES CON1'RACT , B�► �nd Between � _ CITY OF DENTON And W�RTSILX NORTH AMERICA, INC. For POWER GENERATING EQUIPMENT AND SER'VICES dated ae of September 13, 2016 ie u e t any c e e y n I Infor tlo t t e w11 iqlly- ei v , /or u lie er u II etitive n n nc I ln or atlon In a i e rov ne of ex e ver t e, io 2.1 1, .1 , 2.11 a/ar 2.133, n py e ul u Ilc 1 1 . This EQUII'MENT SUPPLY AND SERVICE� �Q�� � �"�" ��i� " ������'�= i� �'� � entered into as of this day of S�ptember 13th, �l��� �t�ie �`Eff�it�ve ���"�, i�� betvv�+es� �� CITY OF DENTON, a home-tvle municipal �aa�crr�tic�n �►rg�r�i� �d �exns��g ��� �� 1�"�`� of the State of Texas, with offices located at 215 E. i'�� `��r '�t.; �����, '���� �'���� (°`BuY,er"), and WARTSILA It��R�� ,A��+�A, Ii'�'�C., � cc�rp�r�ti�� s�xg�i� ������n� under the laws of the State of 1�, �vi�i +�� � lc���t�d �t I 17 ��l P��rkt� ���� ���, �a��' A, Houston, Texas 77064 ("Suppl_ie_r"). RECITAL WHEREAS, Buyer is developing an approximately 225 MW gross nameplate capacity natural gas-fired electric power generation project (the "Pro'ect") to be located in Denton, Texas, United States; and ' • WHEREAS, �a �t����c�� rvi� �� Prr���c�, T�u�r�r �+�s�res to purchase from Supplier, and Supplier desires to supp�y, tw�lv� (12� W 18�St���"r e��i,t��, along with appurtenant equipment and related technical serv��� fr,a�r � Pra�1�1, �1 as more particularly described herein; NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and suff'�ciency of which is hereby acknowledged, intending to be legally bound, th.e Parties hereto agree as follows: ARTICLE 1 A=C�i� L� 11r��;�[`I ..�+1`����*i� �: i�`f"���.;�.%�i s���9 t'I`�C�hf � 1.1 Documents Included. This Agxeement consists of this document and the following annexes and exhibits which are attached hereto (collectively, "Appendices"), and wluch are specifically made a part hereof by this reference: ,Annex A - Annex B - Exhibit 1 - Exhibit 2 - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 6 - Exhibit 7 - General Scope of Supply Technical Specification Attachment 1-Tools List Project Milestone Schedule Milestone Payment Schedule ��r� �i' �'�.�rr��a�t �� �'e�fc�r� �� �a�s ��t.iv�ry �c�i�u�; TT�1e�ie��� i.iq�i� �a���es l�e�'€�t�m��e �an�s P��i r� Liquidated Damage$ Attachment 1- Derating Curves Attachment 2- Emissions (�uarantees Insurance Fuel Gas Specification �'i��� +d�����a�t ��d ��y �#,��ch���� t�����r ��y c�����r� �►�for ation t et Ia ���li������1� � ���cf�l��+= s���td��, �ray�r����y, ������ ���6�� }���+�� �fil��� �rn��t#��ve and nwnc' 1 in�����fi�� i�t ����1��� �ith t�me ��r��I�l��t� �f'�'���� ����r��7ar�� ����,, :tic�s� ���.�d��k S .1 , SSZ.110 ��t�Pc�� �.���, �e�€i rr��y �z�r d�t� E��r ��utr�� �Su�ii� ����l��r�� 2 Exhibit 8 - Exhibit 9 - Exhibit 10- Exhibit 11- Exhibit 12- Exhibit 13- Exhibit 14- Exhibit 15A- Exhibit 15B- Exhibit 16- Exhibit 17- Perfornnance Test Guidelines �'orm of Start-Up Certificate Form of Acceptance Certificate Form of Change Order List of Document Deliverables Cancellation Table Safety Spare Parts List Form of Partial Lien Waiver Form of Final Lien Waiver Form of Mechanical Completion Certificate Form of Final Completion Certificate 1.2 E t�n 're A�reeraent. This A,�°��t���# sets �'vr� �h� �1� �d �mp��t� un��rs�di�:� +�� �� P��e� ���ti�� � t�� �r��,�ect mat��� h�r�� �s �� �h� d�t� fir� ��rr+� ���, �� e� �� �� a�i �aeg�t��,t���n�, �gr+��r��n#� �� r��ta�+��tt��iaz�� �na�� ��r +�s�t�+� ��r t�;��ta. �u qu�t t� 1h� �t� h���`, �i� ��n�n� r�ay �r� su�pl���t�d, a�n.c��ified �r �t�rwi� �m�ns�� by t�ut�asl �g���eai +�r � �c+��a� �wit� t� �er�s �� this Agreement. Such amendments, if any, ���t b� in t� ��vr�m +�� a w�+rt�1�� a������t to this Agreement, and signed by authorized representatives of both Parties to this Agreement. � 1.� t"a�n�i,���r� Pr�rvi�i��. i� �e �r+��t +��' �n�+ s;a�fli�i �rr in�c�����ey ���%v���� ��� t��i� �l���u������. (e�ci���i��� �C� �.���ea�dic�:�� �r��i (�} t� A���ndi��s ��che+� her�tc�, l�i� c�r��s�������t {cx�l�a�in� �11 �r������lic;��� ����[1 �c�v��n. �.�a �� �v��t c�� a ��t�i�t �r i�Y�t�n�i�t�:n��+ �nc�r�� iit� �4�����i�cl����, �l���i t�� r���lv�c# in �cc���� r�r��r �� f�lic�r�ving c��er �f pr+�e��e��e: i} �+�a� ,� � �ii) ��x S: �i�i} '�i�,� (fv� t�� ����r A� �ir�� �si �v� i�� �p�ifi� �la�l p���l` �aver t�� �„�ne�r� �d, ir� �� �v��i �� �c�r�tiic� �r i�cca�ts��;�;�c�r �� ���iy �e ��rlve� �y �h+� a�spli��i�t� c�� th�t ��i�iple. Either Party, upon becoming aware of an�+ c����i�t +�r ir���si�t�t�y ama�g �Y +�� i�� components of this Agreement, sha11 promptly notify the other Party in writing of such conflict or inconsistency. 1.4 Rules of Inte retation. 1.4.1 TerminoloeY. Unless otherwise required by the context in which any term appears: (i) Capitalized terms used in this Agreement shall have the meanings specified in this Article or defined elsewhere in this Agreement. (ii) The singular shall include the plural and the masculine aha11 include the feminine and neuter. ���� ������� ��� ���, �����iy���r� t1���� ���r ����{o� &nf���n�tilon that n dential, co ercially- �������,�A ���������,� ������ ����i� �,��,�� ������� ��� ��,%r� ���d ancipl infor ati ie a o nce wl t�� ���r+k���� t��°�5���� ��w��'����� ����� �t�s� �S�wd�1� ,1�F4, SSZ.II an or 552.133, �n py pr��e���! [�F�� ���i s��tt�� �i����s�r�. iii References to "Articles," "Sections," "Annexes," or "Exhibits" �...� shall be to articles, sections, annexes, or exhibiRs of this Agreement, and references to paragraplis or clauses sha11 be to separate paragraphs or clauses of the section or subsection in which the reference occurs. (iv) The words "herein," "hereof ' and "hereunder" shall refer to this Agreement as a whole and not to any pa�rticular section or subsection of this Agreement; the words "i�►clude," "includes" or "including" shall mean "including, but not limited to." (v) The term "day" shall mean calendar day (beginning at 12:00 a.m. and ending at 11:59 p.m.), in the location where the relevant (a) payment of funds is to be received, (b) notice is to be received, or (c) perfornnance is fia be made; and the term "business day" shall mean a weekday on whi�ch commercial banks are commonly open in the relevant location as aforesaid. Whenever an event is to be performed by a particular date, or a period ends on a particular date, and the date in question falls on a wcekend, or on a day which is not a business day, the event shall be performed, or the period sha.il end, on the next succeeding business day. (vi) All accounting ternas not specifically defined herein shall be construed in accordance with generally accepted accounting principles in the United States of America, consistently applied. "(vii) All references to a particular entiLy shall include such entity's successors and permitted assigns. (viii) All references herein to any contract (including this Agreement) or other agreement shall be to such contract or other agreement as amended and supplcmented or modified to the date of reference. (ix) All references to any Law includes any ar�nendment, modification or successor thereto. ' (x) Words and abbreviations that have well-known technical or trade xneanings are used in this Agreement in accordance with such recognized meanings, except to the extent a definition herein set forth requires otherwise. 1.4.2 Head•mp,�. The titles of the articles and sections herein have been inserted as a matter of convenience or reference only, and shall not control or affect the meaning or construction of any of the terms or provisions heteof. 1.4.3 Joint Responsibility for Draflin�. This Agrecment was negotiated and prepared by both Parties and none of the provisions hereof shall be construed against one Party on the ground that such Party is the author of this Agreement or any part thereof. T i� d u ent and sny at ch en thereto ay con in intor atlon that conC ential, ercially- naltive, p rle ry, an /or u lic ower utility co titive and n�nciel infor at n in accordan wi the p visiona of Texaa Cove ent C e, tion 552.101, 552.104, SSx,110 and/ar SS2.133, an ay be t t uired pablic di 1 ure. 4 �.4.� ��1��,����x� t� A,�t �i� C�c�c�d �����t� ��t�4 '�"�� ���iie� s1��11 �t�t r���t�n��ly �a�� i� ��vsr�a�e +�v�t�i tk�� �ri��ipia� �1` ��ue� l�it�� ��a� t�ir �I���i�g i�� il�� �a�r�f�r�anc� �� l�is A.�r�r����t. �7��s� ����i�� ��,��s�t� pra�id�c� ��r���, �1��re t'�� ��r���c�rYt r�c�uir�� i�t+� ������t, ����a�l, +�r �irni��r ��ii�n �� � �'ar��� s�r�� c:ca����� �ar sa��'r+�v� s�tll ��t t� �n���a��t�a�Z� �►ritl��tr� c�x d�lap�, ,�a+� t�vl��rc.�r�� tl�� ��re�ir����t �i�te� � P€��.y� ��'i�[�� t� cl��rr���e, �q�i��, sp����y �r t�� ��rnit� s���� vvi� r�s�t �:� ��.�x�itc�:r� �c��� ����r����ii�►��, r�q�wir��n��t, ���ci�c�.ian �r �i�,l� z��+�� ���1� �+� ���a���r. �uti� ��r�i�� ���1 uc���pl;y wilh i�� ia�k��i a�� � g�near�l p�p�s�, �r� �I�I �t+�i ��ra�� itse�� �►� m�i�'�� �r�r�� �a� +��►is�c�� %�in � �e s��rir�,�n� of the Project. 1.5 . Definitions. For the purposes of this Agreement, the following words and terms shall have the meanings specified below: "Acceptance" has the meaning set forth in Section 5.3.4. "Acceptance Certificate" has the meaning set forth in Sect�,_ on 5.3.4. "Acce tance Date" has the meaning sct forth in Section 5.3.4. "�liate" means a��r��� �� ���i�' ���� '+���� ����"d�'�� "��' a specif'ied person or entity, directly or indirectly throu�h ��� c�� ���� �������^�'�� �'��ls, or is ConUrolled by, or is under c�mmon Control witl�, tlac �a����� ��` ������ sPecified. "Aarew ement" has the meaning set forth in the initial paragraph of this Agreement. "A en ices" has the meaning set forth in Section 1.1. "Buyer" has the meaning set forth in the preamble of this Agreement. "Cancellation Table" refers to Exhibit 13. �dC�'hat� � �n ��.�v" �n��n�, i�i� c�i������a�t� ����ti+�a�, p�°+�na�lga�ia�, i��f�ie�� ��r � �l c��` �try 1��v�+ �r �r�rv�rn������� �'cr��it ���r ttz� ���'��ive i��� t�� c�x wi�1 h�v� an sdv�se �ef�+c:�� €��� ;����a�ii�r's ccast� ����c�I�� �+�t���l��l� �'ar p�����c�t�i�� #�e'��rk; p�r��+i+��. �av+�eve�, �k �.o �l��r��� ��� i�a� �t�t°;3�a���t tc� [�i� �:��^�+���unt ;��r€�l� ���is� +�r � �����s�,d t�a ar�� � r���► r���a} �y �n��i���r��l, f+�d��•;�1, ;,i,��� t�� �c���l [cai�,��° l.1���� �i�t�r �f ���nL���� ��c, Lr�� t���+�� c��� i��v��, ��� ��►� t��i����l 1�€�t it��a:�i�� �����t��� c����y� 1�vy, i�t�����i, i.��� ��c��+�it� ��r �����i��r c;l��r�� �'c�� +whiciZ �u���i�r i� �e���n�i3�i� �+e:����r r�►it� �p��1 t� th� �����tir�� �� '�����rn�r�t t`r�� ��t�idc� �1. LTnit�d ��i��, +��� a���a� w�e�� l�w �r �t1x�r �����1���l�l� L�w ��t��r tia��� i����s� i�y �'�iy t�� ��t�r�} ���t ��ts �`�p�1���'s ��r ��� �u��nt.r��tc�r's �t��t� cr� �����l+�yr�n�r��, �t�) � �t��u��� c�i ���r aut��ic�€; c�� t�e �7�� �t�t�s �af A�n�ri��, inu��t�i�� €��u� �;������ ��� l��r t���t �'�'���� �i�� ���s! �af' �a��d�, rna�uu��t�i�, ���Pir�;� +�r vth�r �r�ai���rt�iiica� u�` �r�� �����i�an�aj�t �n�i �e� I.��� �i�t�t� "��rl� €���+ar�e�t�t ���1 ���+ �ti������t� th�r�t�m rr��� �c��t�8� �r�farmatfon that ia ������n#i�l§ ��a����'��g��Y� ������iiv�, ���°��'���i�i��°Y, ���+�1i�s� ��rw���Niw �o�m�� �t�l���t �e���ii��ve and tinwncial l��u'•�����rA ��� ��e����r��� �'Ith �I�+� y'r�w��i��tr� c��'I'��s�� t�e�r��r°��x��t! ���C�, ' ��a� ���e��4H, 552.104, 552.1]0 ��r�Ja� ���.3 , ��d ��y �� �r�eal�c��� i���� ����rr�:�i ��srl��i� d#�:4��u���, 5 enactment, modification, amendment or xepeal of an applicable Law prior to the Effective Date with an effective date of such aciion that fa11s aft�;r the Effective Date. "Chan e� er" has the meaning set forth in Section 9.1. "Commercial Oper�tion" means the production and commercial sale of electrical power from the Plant or any portion thereof, except for electricity produced in order to conduct the Performance Tests or for Start-Up. "Contra,ct Price" has the meaning set forth in Section 3.1. "Control" means the power to direct or cause the direction of the management and policies of a person or entity, whether through ownership of voting securities, by contract, or otherwise, and "Controlled" shall have correlative meaning. �����y ����1,�,��� � �,��'�' �ans amounts payable by 5upplier to Buyer for failure to meet Deti�r� �c��+��+� +�������� �� Provided in Section 4.2 and Exhibit 4. "Dela ed Pa ent Rate" means the maximum rate required by Sec. 2251.025 of the Texas Government Code (Prampt Payment Act). "Disputed Amount" has the meaning set forth in Section 3.4.2. "Document Delivery Schedule" means the schedule attached hereto as Exhibit 12. "Documentatiod' has the meaning set forth in Article 10. "Dollar" or "�" means the lawful currency of the United States of America. "Down Pa inent" means the down payment set forth in the Milestone Payment Schedule. "Effective Date" has the meaning set forih in the initial paragraph of this Agreement. "En�ine" means a W�rtsil� W 18VSOSG engine, as more fully described in Annex B. "Engine Hall" means each of the two engine halls in the main power station building at the Project Site as more particularly described in the Technical Specifications. `° ui ment" means the Engines and other equipment, supplies, materials, and Documentation to be provided by Supplier hereunder, as set forth in this Agreement (including in Annex A . "Event of Buyer Default" has the meaning set forth in Section 13.3. "Y'F��� tl����e�er�t �n�! ��ay ��it�����a���� ti��r��r� an�� ��in��r� ��t�'a�r������ ���� 1� ���1��le��, �n��c���i�l�y_ ���ii�v�, �r�wpri�t�r�, ��+�lc�r ��b�i� �v�w�r e��iB�l� �r����iti�e ��� �i����l�l 6�i�r���i�r� ln �ec�r+��r��� �Ith the ��vi��c�iK� of "�'���� ��►�+��n�ea��� � �, � �#�n ������i� ���.1 � : ,� li� ���P�� ���.13�� ���f n��� � �a���;�ta�i' '�°a r���i�� �r���i� �i���t�r� 6 "Event of Force Maieure" has the meaning set forth in Sect�on 14.1. "Event of Suvnlier Default" has the meaning set forth in Section 13.1. "Extended Warranty Period" has the meaning set forth in Section 11.2. "Final Completion" has the meaning set forth in Section 5.3.4. "Fina1 Com�letion Certificate" means a certificate in the form of Exhibit 17 issued by Supplier indicating the required Final Completion has been met. "Final Notice to Proceed" means a written notice delivered from Buyer to Supplier indicating that the iurst Payment Milestone has occurred. "Final Test Procedure" means the procedures for testing the Equipment developed and iinalized in accordance with the Performance Test Guidelines under Exhibit 8. "Generator Set" means the unit consisting of the assembly of an Engine, generator, flywheel, mechanical coupling and base-frame. "Generator Set Deliverv" has the meaning set forth in Section 2.2. "Govem�ental Approval" means any authorization, consent, approval, license, lease, ruling, permit, certification, exemption, or registration by or with any Governmental Unit. "Governmental Unit" means any national, state or local government, any political subdivision thereof, or any governmental, quasi-�+�r�+����, �'�������� �°���i� �� �����`� instrumentality, acin�i�i�t���tiv� ���i��y, ���ikac�rii�, �t��y �r at�� +�����y �3�vi�� ,iur�u�i��i�� ��e�;� the performanc� c��" t�� ���i���, ��u��m�r�t� t:he �'l�c c�� its c���r�tic5�n� (����I������; i��� transmission of �I�c�iri�i#y �a°��n #:I�c� 1'I�����, �r t3�e ���fih, ��`��,y �� �;�virc��a�r��nt�l �c���dil:icr�� e�i` the Plant or the Plant Site or otherwise over the P�r���. "���� `�'�e� ���' 1� �e t��an� s�� forth in Section 16.4. "Indemnifvin� Partv" has the meaning set forth in Section 16.4. "Law" means any statute, law, regulation, ordinance, rule, judgment, order, decrcc, �l���y�� �� �' ����g �� �y s�rnil�sr ��r� of decision o£ or determination by, or any i�t�r�nr�is��n o� ad�i;�i��tr�ti+�n ��' �n�y +�f i4�� �'or��+�ir�� (��, €uiy C�ove�������ntt�l i.���it, ir���u�c�ian� �c��� g�v�rr�z�� r�r��es� ��ur�, +�tn�r��y��t �i��iir�z���tiesra, safety, e�v��r���°s�' ���������li���t, ��xp����� ��s�i���i�y ar�� e�nplay� ��i��� ��t ��c������ ���� relating t� �nbx�r�t �ir �rnis�icrr�s, effluent emission or noise. `"Li��" ����►�� r�vi�F� c����� tt� �t��� ��t����r�y �r ��sat� �r�y s�r����,a��3 r��� �f trust, lien, p[�#��, �;����g,�, :����rit� ini��s� �c ��ur���abr��a�v �� ��� �is��, ►u���et���r t�r 1tr�t �"��, recordcd or otl����r���e �����C��ter� r��° �f��cliv� ��x°���r ���l�c���l� ���v, �� v�r�lt �€� i�� is�t�t���# a�f �y lessor under T is d u ent an ny a c e t o ay n in iofor a'tion t at ia nCdentiel, co e, ipl - ���������� p����l��ry, �a��%r�^ ���11� wer a lity tive and nancial infor ation in acco n ���� ���,������� ���`���� ���� �e�t e, on SS2.101, S 2.1. 4, 552.110 �nd/or 552.1 , an ay be �xre�t�i �ra� rr�����d pr���l� � l ure. 7 any conditional sale agreement, capitallease or other title retention agreement relating to such asset. "Liciui�ated Da�n� es" means all or each of, as required by the context, the Delay Liquidated Damages az�d the Performance Liquidat��d Damages. "Mechanical Completion" has the meaning set forth in Secti„ on 5•3• 1• "Milestone Pavment Schedule" means the schedule set forth in Exhibit 2. "Milestone Payment" means the amount of the payment set forCh each row of the Milestone Payment Schedule corresponding to a Payment Milestone. "Minimum Performance Standards" has the meaning set forth in xhibit 5. "Must-Make (�uarantees" has the meaning set forth in Section 8.2. "Other Eguinment Deliverv" has the meaning set forth in Section 2.2. "Parties" means Buyer and Supplier. °°Party" means Buyer or Supplier. "Pa ent Milestone" means each of the milestones identified as such and set forth in each row of the Milestone Payment Schedule. "Performance Incentive" means the amounts payable by Buyer to Supplier for performance that exceeds the Exh$ust Emissions Guarantee, as set forth in Exhibit S and Section 8.4. "Performance Guarantees" means the Performance Guarantees set forth in Exhibit 5. ��p�r,�����,�,����,�����, ��e���'a means the amounts payable by Supplier to Buyer for failure tca rr���t �e ���a�'��� ������� � set forth in Exhibit 5. "Performance Tests" means the tests to demonstrate compliance of the Equipment with the Performance Guarantees atid Minimum Performance Standards, as provided in Exhibit 5. "Plaait" means tk�e electric power generating facility to be constructed by Buyer and utilizing the Equipment delivered and sold to Buyer by Supplier in accordance with this Agreement. "Plant Site" means the location of the Plant at or near roughly south of 5581 Jim Christal Road, Denton, Texas, 76207. '�Y�� �arr�����!�� �r��� ���Y ��i�����T�Q� theretr� �n�� ������tf�� i��fnr�z��Cr�� �� i� cop dentl�l, eommereially. ��a�M��i1tv�, ��'������i����'�� ���inr ��bt�� power �'�i1�1,� r�lt�{�alii��� a�t� ��1�� in[or �i n in accnrdanc� wit i[�c �r�����iuu�:� �fi'�"���s ��a�er��s��� Code, ���iit�t� S��.y��� ,���� �„� i� and/or 552.133, aad may bn ��rc�t��lc�l i�raa�� r���u�r� ��t�li� �fiac! ure. 8 "Primar�► Warranty Period" has the meaning set forth in Section 11.2. "Pro'ect" has f,he meaning set forth in the first recital of this Agreement. "Pro�ect Fuel" means the reference fuel described in Exhi it . "Pxo�cct Milestone" means each of the ��iti��i. ��it� mi��s�ar��� fc�� �r��r��ii�n of the Project aet forth on the first page of the Project N�ile�ic��� ��ch�it�� un.��r �he �ead�ng "Project Milestones". . "Projgct Milestone Schedule" means the schedule set forth in Exhibit 1. "Prudent Electric Practices" means, as +�� �ny ��rticul�' ki:me, �:�y v� �� �r�c��r���� methods or acts which, in the exercise of reason�i�,�e „juc�������� ��� �r���� �"� ��� �'�'�t� ����'� �� ���� time the decision was made, could have been ��p��t�d i� �c��rr���li�h t1�� �����'�t� �'�s+�it �t � reasonable cost consistent with good engin�er��i� ���•€�u�ic���, iaii�r�i�ity, ���`��y, �x�acliti�a�� ���d compliance with Laws in facilities like the 1'���t �aii�ir�n� li�� T�c��i�mc�t. 1�������� �1����'�� Practice is not intended to be limited to the o���wt���� ����u����� �������� ��' ��� �� ��� �������'��� �'� all others, but rather to be a spectrum of reasor��%�c� ����� pa��de��i �r�cti���, ��ct�ir���, �t�.����"c�� and procedures. "Punchlist" has the meaning set forth in Section 5.3.7. "Supplier" has the meaning set forth in the preamble to this Agreement. "Supplier Parent" means W�rtsil� Corporation, a corporation organized and existing under the laws of Finland. "Sup,.plier Pavment & Performance Bond" has the meaning set forth in S�ction 2.5. "Supplier's R�resentative" has the meaning set forth in Section 2. . "Services" means all of the services to be provided by Supplier under this Agreement, as identified in Annex A and described in Annex B. "Start_Un" has the meaning set forth in �ection 5.3.2. "Start-U,� Certificate" has the meaning set forth in Section 5.3.2. " ubcontractor" means any person, including any vendor, �with whom Supplier has entered in�to any subcontract to perform any pe�rt of the work under this Agreement or to provide any Equipment on behalf of 5upplier. "Work" has the meaning set forth in Section 2,1. ����� ��������� ��� ���, ��y����� p�� � a���r e�r�l�i�� ��for ation that is confident' l, co ercially- ���y����y,� �r���y����� ���j�y� ��p��� p�s�ar�� ���ti�y c�t�� �[tWve end na�cial intor ation in accordance with ��� ���i����� ��•����� ���,�,�����,�� ��$, ������� ���.��'1, 552.104, 552.110 and/or 552.133, and m�y �rw��c��d �rn�s� ���[ �rr����e dE��.i�e�r�. 9 ARTICLE 2 COPE OF SUPPLY AND SCOPE OF SERVICES• PERFORMANCT; SECURITY 2.1 ScoQe of Si�pnlv� an�pe of Services. Supplier shall, in accordance with the provisions of this Agreement, provide the Equipment and perform the Services identified in Annex and Annex B in acFcordance with Exhibit 2(collectively, the "Work") for the Contract Price. Supplier shall, in accordance with this Agreement, provide all labor, services, man,agement, advi�i�a�, r�at�ri��, ecju%p�aac�t� tools and other items necessary for the design, engineerin� �� �t�p���y c�� tl�.e �q��pment and for cotnpleting the Generator Set Deliveries and #h� Qt"��r ���i��r�#; ��iveries, including those items specifcally required by �nn� ,A �r ��, ��clud�ri� t�os� s��i�� i�e`� expressly set forth herein as being I;h� r�s�ansi�il�t� �f �st�a�rs• "�'h� F�i�s s��at� cooperate fully in all regazds with the i�t��t � i�n�rv�v� �� �er�c�r��a�� �a� �e W+��'�, �� reduce the likelihood of operatin� �nd r�;a��t����c� ���s c+��si�t�n� �'it�� t�� requirements af this Agreement. 2.2 Milestones• Delivery. Supplier shall be responsible for carrying out and completing each element of the Work, i�l�. ` �a��€ assvci�.t�. wi� ���� v��� P��J�� Milestones requi�ed under Exhibit 1 t� k�e �campl���+� b�y '���1�1��r 'r�"�t� clilig�ra�e '+�rithit� the deadline set forth therein, and the P�.ym�t �.i�e�r���� i+�en����€� in �°� '�i� � u�i� �i1x��� yv�t�z� t�� ta�e �et, �"+�r�h � t%e �rst column in Exhibit 2. Without limiting the �,��,����y ��' t��� �'���g��r��� �t��rpli�r ��41 b� �e��+�nsible for (a) delivery of thc ��������� ,���,�� ���� �c�r�,p�s� ��h �f 4la� �ww�lv� �(��} Generator Sets to the designated ��,�� ���,� �,�y,�,�,,,� �,,�,�, ��� �sser�I�1�r�� �1� Cr�r��rr�ta� Set at the designated Plant Site ���,����y ���, (�� ���r��n� �e a����r��d �enerator Sets to and setting thcm down on ����° pem��e�� f��andasi�n� i� t[�� �`I�t'� pn� st�:i���a �iu��di��� �+� �d) c�����r�a�� � ns�t��� t� 8u��� �+��ify�ir�g uc����e�ivr� wit1� ���ci ia ��ch �t c�� sixt ��at� +�i����r�ttor ��i� in Engi�� Ha�� ��r�.d wi�h r�.s�ct tc� e�h ,�, c�f �ix tat�.} G��r�t�� �et� in ��in� ��i� � �� ��.r��� yv�� ��s ,A ���n+�nt af ��� af �h� activities in the foregoing clauses (a) thru (c) promptly after their c�t��l��ti�t� (w��t� +�vn�Pl��d it�r ���a set ��` ��� total Generator Sets in each Engine Halix �"�������� ��� �"���`��''��� �������� ���t� � responsible for c�eiav�ry �€� �'�a�� �"it� +�f �11 �a�ter ��ip�n�nt a�r�il�b4� fc�r r���v� from back of ���li�r'� i�cl� at :Pl�nt �i��, e�� �ti� � cvr�sponding complete packing list (°`Other ui a�ae�t : et��r�r_ �'�. taen�r�tQ� S�t ��l�v�ie� shall be timely con�pleted according to ��,����� ��1�st+��t�� r�,i#�. A�t�vf�v �od�s A1880 and A1890 in the Project Milestone ����j� c�nt�a��d ir� ���it 1, and Other Equipment Deliveries shall be timely completed according to Project Milestones with Activity Codes A1850, A1860, and A1870 in the Project Milestone Schedule contained in Ex ''t 1. Supplier shall provide a web link to shipper's website showing status of Equipm�ent in transit. Delivery of a11 Equipment shall be made DDP- TNCOTERM 2010. Th[s d u ent an any at ch en thereto ay con in information that ia oti ential, co mercielly- sensitive, p pri�9�ry, ���l�r� ��ublic power ut[Ilty co petitive and fioanci�l infor ation ip accordance with the provistons �+�"[`���s Go�v�r� ment Code, 3ection 552.101, SS2.104, 552.110 and/or 552.133, and may be protected from requlred public disclosure. � 10 �.� ,����ier ���sen�Y�v�, ''�Vi�x� t��t ( � �ij c��ys �r �he ��+�ctiv� ��t�, ���agLie�r �%alI nr�°�i�'y ]��;y�' �af i�� ���c�i°vi����1 d����isa!l��# by S�a�rpli�r �IEh� " u ���r's ,�:, r+�s�t�tav��} � c�v�r��e Su����r'� ��r�rar���t�� u�����' ��ia:� ���•�s���n��t �d w�a �hall �� as t�i� �rr���y �int af cnn�# faa� ����lier with respeCt ta this A$t'�ement. 2.4 New Equivment. All Equipment and materials delivered to Buyer by Supplier shall be new and free from defects and in accordance with this Agreement and with Annexes A and B, unless otherwise agreed to in writing by Buyer. 2.5 Supplier Pa�ment & Per£ormance Bond. Yn ,��,�� ����� ��pp���e�'� �r%� vbligatians under this A�reement, Supplier sha�l, �uv�t;��.�a t+�n {l €9} ���s r rr��xPt af t�� Fina1 Notice to Proceed payment, deliver to i3��r�ar � ps�an�t a�d �r�c�rr��'t�� ���d in �ub�k�%�I��+ ��'�r�n s�t �`�r�a. ia� Lxlh�b� 3 and otherwise in form and substance c�rnpi�a�.t wi� th� i�aw c�f t�a� �t��e c�f `i'���� ���' such bonds for projects similar to the �"�,���� �t�ly iss�� by �. r�put�b�� n�t�c�� underwriter reasonably acceptable to ��y��r �R�a� `#��t�����' �'����� � �����^�'� Sond"). The Supplier Payment & i�e�� ��c��d �1���1 rer�►,�ia� i� �i�� ���ct ur���l tt�� date of the expiration of the last warranty period under Section 11 2. 2.6 Prudent Electric Practices. Supplier shall perform its obligations in good faith and in accordance with this Agreement and, in the absence of specific requirements herein, Prudent Electric Practices. Supplier shall not unreasonably interfere with Buyer's general contractor's work at the Plant Site. �.'i +�r�vernm�n�.i A�fi����za�i�ns. E���t �'�r a�i ���r�xa�n��t .A.�pr��a1� t�t � ���z����� �r�y�'� ca��i�;��� ��t���+�r ��1 c���, � C�c�v��ixt�l ���rc�v�l� �u���d ea�� ��1�c�ble Ls�v f�r Six���+er �o ���i� �€n� �t���is� e������r �hh� �q��p�en�, ��uf�,���, ����ala�� �.n� �ai tl�� E��i��en�, ��e�i°v�r fi�� ��aip��t, �nt�i �t���wi�� p+���'+��r� it� �s�X��,st�c��� a��+��r t�ti� ,t�,gr�� r��. �a�p�l�er s�sll d�esi�,n �+� +c�y out the Work such as to achieve the c��i���t�v� �� �a ��`��i��t �i� ��� ���t "�ia��� complies with all requirements of Law and other requirements of this Agreement. 2.8 Labor and Subcontractors. In its performance of the Services, Supplier shall use trained and qualified personnel, However, it is the Parties' understanding that Supplier's work at the Plant Site shall ������� 'u�€°���� ����°���� "�'�' �"���Y" ��"� °� organized labor. In connection with it� ��r�"n �� of �h� Vf1�r�, '�uppli�� ��y ������ ����i�"��� ,�nc� �����1� Sul��nt��t�rs a� it s�:�! �i�� ��r�!mpri��. ��p��i�r sl��,�! ���ely p�y ,��� c�� ��� 5�����a�����rs ��i �u�rp�ier�, and sha11 keep the Project and the Plant free of ��� �,����� ������r�� bt��dir�� c�f sra��a I�iens where necessary. Supplier shall be fully liable to Buyer for all acts and omissions of each Subcontractor to the same extent as though any such act or omission had t����� �rfr�r���l ��x° t��it���i �y 4�.i�r�lia� ci�r��tly. �r� no event will Supplier's engagement �f ��y ������nt����t��r �°�1i�r�c �����1���" �f ���� �� ��s obligations or liabilities hereunder. ��s�r+�r s1��1 1��v� ��� ��ntr�c����� �st�l�����c�� �+�, ���+� Is docu ent an any att�ch en the Ay contain infor ation t at Is conf ential/ e ially- ��������, p�,p�r� ��, ��adl�� �5���� power utility co ' e on nanclsl Infor atlon in ecco ance with ��r� ���j����� �f'�'��s� �a������r�t Ca e, ct a SS2.101, 552.1 , 552.110 and/or 2.1 , pn ay be �r�� d t�a� r�ael��ti ���li� dl��N u. ll ��.�1 �c�t be �i�emed �+o � �.n �ri��y �ti�h, �� 5a���cantr�ct�r, ��aid , ��.�> t �.n ��� ev+�nt ��a�p�i�r's �b���t��r� h�r�t�r��� t�rmi��k� f�ar ��t �, �up��i�� �h�.tt, at B�w�+��r's ����t, �n� �a t� ���t it i�s r����n��i� ��le � � �a, �+� s��c�i �ions and ���,��� ��� �,������� a� ��y �� ��ir� to assign any or all subcontracts to Buyer to the extent the same does not result in additional cost or expense to Supplier. 2.9 Parts. Supplier shall provide all spare parts needed for the Equiprnent's commissioning and those listed in Exhibit 14. �� � t� E+���1 'j"��t 1'r��.�ci���•t�, '�Viihin ninety (90) days before Mechanical Compl�t�c��, t1�� �'�ar�i� s�aa�ti ���r�� up��� fil�.e Final Test Procedure, which shall be based on the ��rfc�r�n���'t'�st �u�r��;i�r��� ��tt����d hereto as Exhi 't 8. �, � i Is�tc�l��� �� ea� � 1� �. ��ap��i�er gr�t� tc� B�xyer it� �u�c����s �� ��sig�s � r����exc��iv�, r+ay�lty�� _ , �r��v���1� li��a�� €���r ���� �r �th�r i�telle�tua� �r+��p��� righL� n�r� c�r h���`i�r �avvt�ed b� '�u�p��er whi�� �v�r �y a�para��a�, �cle, proc�� ��r �m�s���ti�aa r� c�r �������d irn #h� p�r�c�rt���� �f �#►e �c�r% c�r ir� �t� ��� �ad �per����n in t�� Pl�� ar P��j+��i, s�t� ����� b�irag �r�e�y transferrable to any future owner of the Pl�a� �r ��c�j�t. ARTICLE 3 CONTRACT PRICE AND PAYMENT TERMS 3.1 Contract Price. The total price £or all Wark an.d the ���•I��rrais�M�� of all other ��li �ti���3:� c�[" ��� ��i��° under this ,�, ��°�������xt shall be _ . _ ��u��h amount, as it may firom �m� to time b+� �d�w�s#.� i�a r�rr��� ��n the Parties and pursuant to the terms of this Agreement, the "Co�ntract Price'�. 3.2 Deliverv & Taxes. The Contract Price is based on Equipment delivery DbP lncoterms 241U as specified in ����.ic�r� 2,2 af �Ssi� �t�;rc��a��r�� �t��t �����1���-�• ,�"�� ContrAat Price is complete compensati�� �'�a� �� ��`+�`��i�� ��` ��� �'�ri� ����i 'se�ul��ci�;� �l� transportatioz� and shipping costs imposet� °�t� �e��� % �h� ���visiQal ��' �n� �:�i�i�ar�nne�tl or Servloes. In additi�n to the Contract �'ri��„ �i����° �����I l� r�epc�a����S� �'c��� �ll ���s��t or future property, sales, use, excise, privi���� �a�• �i�r�il�r t�x�;� c�r ���u��t��i�t:� �������i���i� to the Work or to the use of the Work. �����i�li�a• ����i� �a� �°������'�ik�l� %r, t�nd ;����I aa��t add to or be entitled to reimbursement t`r�r, �1�� �r�nc���ri� c��` ���y �����'������, �u������ ��"'����° f+�, ����ri �rt� ���rk ���i+�, i�riff�� ��{ �i�°�il�r ��:���;,�n��st� xm�c��,��i ir� ��rxr��ct���a� �� �,� ��;�„�� ,�� ��p��: �� ��i� W'or� c�r for any taxes and assessments payable by ������� }�y ��, ��,r�,�Y���a�t� ��it �rhic� is outside of the United States of America in �����,�� ��� ��p�������� �'����;e of the Work. Supplier shall be responsible for its own gross or net income taxes, capital taxes, franchise taxes and net worth taxes 7'��[� �l��u��r�R ���V ��y al#�c��c�t� ��r�r�t� rt�ay ������ I�afb����i��x t��t ta �,�nt��l�n�a��, ����r�ia��iyA ����#ti�€�, pra�r�r��R��: ����l�� �aub,l4� �a+���� ��{{i�y ��ara���i�i�� a��l l�n���i�l ��C�r�����s�t 6� ���t��d�n�e� vvlth t�� ��v6�ia�� t��'�`� � ����rnw���i �u��� " : ���� �S�.�ill� ��wl��� ���.f ltF �r��liv� ���.1�� �n� �na� k� r���t��ii�� ���� u�� p�I�N�c �1�����a:���. 12 i�n�n�� sa� �"up�,ii��� �r�� a��+ �Y�� ��i }��y�c�ll vr �,t��r e I�ay��Iai�d ��s �l�e:�' t� tl�� �a��•�°c�rrn�N�c� c►� t�� �d��•�r. t��tiy�`• �u�lii�es �`�r ���� �r ��m�t��� p�s�nt t� �� ���vis�c�tt� �a�' ��`li+�Ie ��.t�� �I�j ��' �� '1'��€a� Lirni�� S�Dc�, ��cci�� �nc! �,Js� Tax �cl. 1� tlt� ��z•���•��a���� �� i�t� "1�'�ark, �u��li�r r���y �y ����r�t� a��r��rn�r�t ��rr�l��se �n����i�ls t���d �u��a6i�:� �����1 r�rxt t��° le��� �:yt�i�a��e�ii �i��� I�uy�� �1�� 1��� �re�. i� �����e�i�rs� �vitl� �a� ������ i�°�tx��ct����, �i�y��� wc���lc� ��s�,e ��c�a�t��.i�� �crtz�i��xi�� �cs ��p�l��r r�� c��np�i�r�ce with the State Connptroller's ruling #95-0.07 a�nd #95-0.09. 3.3 Milestone P�ment Schedule. Buyer shall pa� Supplier the Contract Price at the times and in the amounts set forth in the Milestone Payment Schedule in accordance with the provisions of this Article 3. 3.4 Invoices. 3.�, � �7p€�n �����ir�g ��� �a�n���t M il��i�n�, ����r�li��• ����� ��ra����� ����y�r (�t t�i� �d�°�e�� ��� f�rth in �..��t�n� �.8.�� �it;� � �n°���ic� (�� ���e���r�n�i�,� ���uli T'�yr����l �Ii���tca��; �ii} i�t�ti������� t�t� ��y�n��t�� t�a���t�t �a��nc����� �+it[� ���c% I�`��y�e��t N�it���can� �s :�t it�ril� �a� ti�� �viil��l���� 1'��rn�i�t ��li�c���l�, �iii� a�ta��z��� i����°�t� ll��e ���p��t���� ��ca�u�n��t�i�t�r� r�qu��r�.�ci �`c�►, �����a 1'"�����r�t Mil+����n� �ur:�u�nt tc� �xi�%�it � �°var�����i��� ca�xp[�t�cs�� c�C ��l °�c�rtc �ir��� tl��e �ari�� l'��+rn���i 1��lcsta���� i�� thrc��.��i� �u�;l� P��+��+��t f�kius��ns�� ��s� {N�� ��it�r�� t`�r��l� fi�h� �ra���� ��� c�c�����i�tic��� c��' €��� �i�i� ��� i���i ���+�� �ar u;�� tt��� ���•a;�it�� ���t c�� ������icr'� �erfi�r��n�o��e ����r,����•, i�` ���, ���i���t�ur��tai� �y� �r��er� t� �up}�����• i�� �e�c�rclt���s� with �"�.����� 3 � �i��c� th� c��t� �af ilac� pr+��ec�i'�� irav�a��� �n�•, i�� il�� c��� crt �la� Ci�°;;� r��vc�i�� 1����ux���r, ��n�� t�� �at� c�f #i�i�� l��o����r�eni}, lr�°v���ua�� �1��Ni �� s��n� �lir�t�y t� #1�►� ������ ��' �3a�y�;r sei ic�r�t� in '��c:�ic� � , � b��i t� t[a� �lt�t�ti��� c�f: �ity �� L��'ator� A��,�s�t� i'�y�%I�u 1�u��°����n�, a�it� a. c��y �!v l�ent�r�� �ia���i�i�a�l �i+�c;tri� at thc :�t��c.�i ���cl cn���l ���r��s ��� �iy��a i� �e�t�eat� l�,l. �nvc�i���; �nc��t k�� i'uily �ac�u�n��t+� � ic� �a�r, �a��iai�, ,�d �u��rn���t �r���rici��l, ����� ��r���i ���i�����y t°+��'�r��cc t��� � ��.� �,� ���,��*� ������,��� �}��d�r 1���nb�r, to be provided by Buyer. 3.4.2 Buyer shall, within twei�ty (�t�� c��y� ��.�r r�c+�i�t c�i` �r�;y �nv�i�s� ��`c��� Supplier pursuant to this Section, determine w��ti��:r �i) t1��; i��Y�7���t �r������� ����'��°� �� ���� invoice has been met, (ii) the Work performecl u� ia ��c� i�� ���e� +��" ����� �''��`����� ������°��� �,���r��s w�� i�+� r�quiure�n�n� ��`t�i� ,�.#���������tt„ (i�i� th� iz��v�ic� ��i ��y r�u���re� s����c���t6t�� �i��rm�t�#ivn la��t�v� i���n �ra�e�ly :�utl��nit���� �ar��i �iv} ti�mi �ttea i���+nic� tun��i�►t rc:���t� tla+� �������a� �lu� und��° �:x�i��ti_ 7. �����r :.t��l� �vi�h�i�� ���1� t�v�r�fy {�tl� cit�� ��f�i��a�� ���tiiiy ���pplicr in writii�� ���, i� °�%�t���t° it cli��a�ic�� ��y �c��°ti��� 4�f` �at��� i��v�i�� ��ci 1i�� ��aa�r�i�i� ��u�a� �c� c�iwp�t�c� (tl�� "1�������tl �Cc�� ��.t��t"� �c��e��+�t: w+viii� � c�����ripiaon t��' �i�� ��e���c��� C�r ils ciispilte. Sul�jcct to ����i� c��t�r�nin�ti�s� t��a [3uy�r t���c� ����j�i: �'���° �«�y Dis��a��d �������� c�� ��ty invoice, I3uycr shall pay Supplier, within thirty (30) days after reccipi of" �t��a�[���'� i�ti�c�i��, ihe i��voiced anu�ui�t, minus any Disputed Amount of such invoice. 3.5 Pa�tnent. With the exc��ai.ic�Y� �a�` ti�� �i���! I�e�ti�;� ic� Z�r����� ��yrt��nt �� � frorn Buyer to Supplier, I���y�r �l��lt ��1�� ��1 �at����� p�,y������s t�� ���apli�r i�� " w�ik�in �l�i�°� the amount of each invoice conformi�ti� �n� it� �c+��r�t��*�; �'��l' ��tiy.�� 3� � '�'I�is dae���s���f ����I s���y �a1t��l�rs�a���� Ihcrctu m�iy ca��a�iwk i�ti�arrtr��stia�a tt��1 #� c-+��[�d�r�l��l, ea��iti��i��'�°i�l�yffi scnsitivc� �r���ri�ik�r�, �s�t�linr ��t+��l�� pt►wcr utiNi,y c�rn��+�iilive ���� �l�ear�ci�r iN�%r�#�sii+crri i� s���+�r����� rwit�► t�ic provi���t�� +��"1"�x�r� �Cnttv������r�t ('odc, ticclfou 5��.� �Fl. ���. �ii+�, �'��.� �il ����1t�s�• �5�,���, ���d ���}� ��� pr��lc��tc� i��►�� ru�M���r��M y��alr�i� t11��4osurc. 13 (30) days after receipt of such invoice. All payments to Supplier shall be made by wire transfer of immediately available funds in U.S. Dollars to the account of Supplier at: For all Paymente in USD: Nordea Bank Finland PLC New► York Branch 437 Madison Avenue New York, NY 10022 Acct: 7049163001 ABA Number: 026010786 c�r ���i� �t�i�e� �l�p���ta��y ��� ���p�li�r �%�il +���i����i,� by r���t�n r�c�tice t�ra �u�rer, �x���t as �r�vici�l in r -��t���� � 4 ���� ��c�ti�►s� '�.�� �►11 �u�n� i�r��ai��t� �y t%e r lie� sh�t �� ��� iu� �111�y ��ay��° tc� it�p�li�a° wat�c�ui �r�y �t c��', c���txC�r�la� vr cl�u��c�� iu�. acc�rd�nc,� vv�tkr '�i� 1�������xa�nt (i�a�lur�ia�� it� c1i����t� �e�c�lt���n pr��i�i+���, �ti � r�� �t����t �� a��+ ��l���n� �ii�c�����t� c�r �����k s��;i� ��r���:� �� pa��r�. ���i�� �i�z���:� �1���t ��:; �u�� �� �1�� �t�y�r. 1'�����nt� a��a�i� �:�c��tl �1�� d�t� �l�t� �%aail �� int��t �� ���� 1�������i ���y�7�rc�� ��i�� ����t a�s� Li���yc8ci �'�ytY��i�t I�at� �l���ll ������ t� c�r la� �;y�bt� �n �y �3is�ut�� �����taN�t u����� ��t�l ta���i� �t. i� l�t��• ����a�ly t�°��r��1i�° �w��°� ta�t�++��x tl�� ��r�i�:s �� d��rr�in+�tl p���t � A�ti�le �9 ����I� i7�is��t� �uu�i (�r �ra�.� ��rti��x tt�er�� w,�w i�prc��r�y wi �lt�, �� w����► �� ' �� ��� �r�� �t t'�e ��alay��, Pa��n��� ca�n ��ac�a ira��ar�p���y w�tk���� �rn�aur�t �� tk�� a�ri��l d��a it sh�uld �€��v� �� ��u� u�ti� �c�u� �Y'r�e�t �� �ceived by 5upplier. 3.6 Buver's Risht to Holdbacks. 3.�. i�n �dditi+�r� ��� ri��t � v�i �ld i�i��ut�c� A�.�re��� pur��ni �� ��ctia��. ��� a�� �� °�� �.�, �u��� s�t�l1 �av� �� �i��t ts� w�it�h�tc��t� �c��i�n� ��ar�y p�y���t � the ����at it re,�s�s�rably d����ir�� ��t x� i� ��c+�s�� ���t�� ��y�r �z�a 1+��� ��� 1� ��y c�r �1 0�" tia+� following causes: (i) Work not in accordance with requirements of this Agreement; (ii) Any Payment Milestone has not been timely achieved; �iii) G��ir� �l�d �gai�t ���`�r, t�� �'l�t �r th� ��c���ct a�i�a� frorn Supplier's �t�c��� or� �n��ii�ns i� cs�nn��i�� �n�s °�� p�r�vt�n�c� �f t�� 1��ar�, c��+�r than claims for vv��c� ��e�a� la,��v� b��� �le�l a��i��# �t� P��nt �� �n� �"r��+��, ��# �u�p���r fully bonded; (iv) ��I�� c�f ��pp���r t� timely make ����� t�a t�i�� ��'t��s with respect to materials, l��r a�� �t�,�' abli�aii�r� �n���ed as a����t o�' �ctiv�#i�� r��v��'ed by this Agreement, unless ��p��i�r ��s i� �+�� �'��� and reasonably di�putec� suc� ���m+�n#s 'i`1�➢t� rlu�i�������i ����c� �+t�� ��#i��c°�oa��+����� kl��r�t�� ��t�� ��rw�l�i�t i��formation that ie cuntidcntial, Cc►n,morcially_ �������'���� ������,�����,�,� �������� ����r�,� ������• uk��;�y ��t����titive aod linancial infi'rmatlon lu accordAnce with �R�� ��rt�t�isic�tt� +,E�"1'���� �:��'�"������"��t f'w��1�, �r�ci�tsti� !���.� �1� 552.1 , 552.110 andlur 552.133, rnd may be ��������,��cl ���r�r ��c�u�ir��l }����r1�� �i���.1��s�i�e�, 14 and, if any Lien was filed with respect to such disputed payrnent, posted a bond against such Lien; , (v) Failure of Supplier ��� t� Buy�r �� i�vo�� ae��u�t �ayable to Buyer when due and which is not in dispute in �s�r�I�c� wi� �� A������ �^� (vi) Damage to Buyer not covered by insurance as a result of Supplier's failure to comply with the terms of this Agreement for which Supplier is required to indemnify Buyer pursuant to this Agreemen� �,�.� E��y�� �hal� �t��i�� �u��i���• ar� w��ti��� wi�.ly�z� t+a�enly ��fi} c��.;�s �fter ipt �� ��r���r'� i�a�r�iu� n�` tl�.� ���cst���t cat' �ra� ����d���� ���atn�� �� ��yer "n�t aun.�+ p��io� �f �uch invr�ic� �e�� �� ��scan �'s�r ������ k��t�b�c� �ataa�s�u�t t� �is �e�ti�a� 3.6. [��n ��e��� +�� s��h �ati�, ����li�x s�� �rr��p#ly ta�� �n� � �lt ��ssc��r��i+� ����s ev�i��sl� � ����y �h+� �i��iic�n whic�x ���� ri�� ��a s���i c� , i1�sl��s �c����r ���v� �ry a�nutr:� ��'��a��r�t v� t� 1'�z����, ���r��° n��y ����li��ck s���lh �i�in���i ����c��nd �d su�� �ai�' �k��ll � ��ca�v�� ��xs i t�► ,�r�i�1+� ��. ����� %�lc�l�a�� �s��t��t ���<��i r�ca� l�� r���ir� �a �a ��id 1�� Bu�� �a�l��� ar�� �t�l �t is l�t�� �t����y c��t�rr�ir�e�3 ��ir���ra� lc� �►°�x�:�ls� 1� tN���. s���a �m+���� (s�r �n�+ �r�i�n t�.���� r�v�s �rn�r�a�a��-1� vvi�l�l��lc�, i�. vvhi�lx �.€��� i��t�rc:�t ���1� �ccr� �r� �� T��i�.y�� �'sy��r��t �t� ��. s�� i���������1� r�ti����l�� €��c�����t 1r��� �h+� �ri����l �4�t� i� sho��d ��r�e �a�n `d un�aiil �c pay��t is received by 5upplier. 3.6.3 Lien Waivers. Each progress itavoice shall be supported by Supplier's parkial waiv�r c��` r������ic;'� lier�� �l4 �th�r t�ctu�l c��° ����t+���li�1 c�r��u��niar�r�s ��r�� ri�ts �f �°v�y ��au��� ���y��° ��r wt�rk t��i %�� ka��n u��r��l�t��i �i�c�� ���`°����t r����rc�l �� �►a�ap��er i� i�� �"�r�n a���� �x�r�;�� �� l�x�azbit LSt� �n� ��i) ���i€�� t��� �a��►��tt� i�� t�i� �csr�� ,�ti����d h�� �s ]��.aibit l5A from each Subcontractor with a scope of wv�� ��vi�� � tt�t�i �n�i �+��' �" $1,000,000. Supplier shall execute and deliver tc$ ����z �t��p�li�r'� ����1 rvai��t c�f Ii��ts i�� �k�� �t��•�n attached hereto as Exhibit 15B and final w�i���•� ��° i`r���� �i�� t�,� �ca�t� �t��ci��i l���� �� ����� 15B exccuted by each Subcontractor with a sc�p� r�l" �a�r� h�vi�� �4 t�i�i ��r��is���rtiary ���x�#��° t�� $1,000,000. ARTICLE 4 SCHEDULE• DELAY DAMAGE� 4.1 Deliverx, Schedule. Supplier �lt�l cc�a����ti+� �r���ra��r '�� �1►�+��"� and the Other Equipment Deliveries in accordan� w°it� � t�ta :_�•� ����� ��������'� �' �d this Article 4. 4,� ���iv�r� i����°����� ����, ������ to the terms and conditions of this �,��,��� �������,��. ���►����e�� ��al t��n�:r�tvr Set Delivety and Other Equipment ��Z����, ��� c��c��r �,y ��� r���e�.��v�, claf�s set forth in Ex 'bit 4 hereto so long as Buyer �� �,�� �,,�pp����i�� �c�,� p,���r�#. +�t�ie "E.��>i+�ment Deliverx Guarantee Date"). 'i"Ikia ������� ��� ��y �i ch�r�reirfa ���r�l� ��y eaetofi�i� ��������1�� #it�� �� ��fidan�i��, �+��sn��i�1�y- ����[��, �r�p��t�rr�� ����ar ��Ihll� �r�r��� atfllly �r�p��ii�w� ��s� ����r�i�b i;�%���t��� l� orti���a �with �� �r�v�at��r� �a�"�� � ��va:r�a�e�� ��, ���t��� ���.tbt� s�.t , ���,� 1+� ���Ntc�� z.e��, �n� ��� b� �� t� E`�+�� �ia�c� ��#�[�c �6��1 u�r�. 15 4�.� �i��a� �� t�i���e� �,�rr�s�es. �+� ��rt��� ��r�e t�� ��1����itag �k�e ��,'��i�a���ni �n�i �aa�rris��r�� t�a� ����i��s in ��+r.ar��n�e r�rit� t�� i�el�v�ry ��l�e�u1� is �z��p�ortr�r� i� thi� A�r����nt. �u��ali��° s1��t1 1�� ii��l� tc� �3��`�r ��r �?�iay �..�c�ui�a�d i'3�a�g�� tc� t�� ��t���t p��vi��c� in ��x��rl�it 4�'ar fa�i�� t�a ��np�� v�tiill� �e +r��mif�ents �t�t fcr�•th �� �;� �it�' 4, ��i�jr��t ��ctic�� l�, l, ����n���ti. a� ti�� I��ie� �i€�+�ic���t+�� I��tn���� �;�a��ili�c� i�, �`�hibiti � �� ��t�pli�r'� ���l�a�iv� �b���ati�a�� ���� ���y��`�� ��+�1����v� r��n��ly far �t���n��,e� �r��u�r��:cl b� "�u��r w�i�h �rr�;�� ��►lel� ��� % '���y�l��i��� i�ti�r���� i�n �a�e�iia��; ii� �+��1v�ry �c���t��ii��ax�s�t� ir� ��hi�ii wk�������� ���.� �l��r�� ac� �e�i�r��i�ci �� ����i:�i��� i1i �s���t���t, vv�r�����ty, tc��t �i�t����clin� rt�g�age��e�, s��t ��ab�1i�, �r��em,�i� +aa� �t%�r�ti�, 'i'�t� a�gr�e��t� ��si�� �f L�et�y ��q�i��d ��ca�,�� ��tall ��t ���� �h� �iz�i°�tit�r� a�c��ant. s�t f�a�ri� in ���t%_ c�� ��. � . t�y ��quadat� ����e� ��yai��e b�+ �t�p���er s�i�l �� ir��:��cde� �s �� �af��� �c� ����u�� ��y�'s�� ��+ Buy�r �� '�up�li�r's inu�ic� c�r, � �� �x�nt ii�vy �x�+�d ��t��a�ni:� p���ai�1� �'y Buyer, s�� �� �d by '�u�r��i�r tv Btaye� csn nr b�f�r� 1t�� 1ii�e���t�� ��5��.) +��y c��` �� ��r�#� f�a��+��i�g i� ����h �t� �av�ai�h �ny d�:l�y �a�� �u°hi�l� �i�ves � � �.�a ��1�.�` ��iqta�d�:t� L��a�ges. ARTICLE 5 TESTS �.� ����,�,,,T ��,� ��.��r a�c� ii� ���rese�i�ti�ves, r�v�ic� m�y anclude a r���r�ni��l ir��p����c�� �r�va�+c s�l�t,ed b� ���y�� �"���� ��e�tca�'}, s�i�I have the �°��ht � witn�s� o�e �n��r��s" �"��tv� �+��ts. '�"�� d�te �n�i t��an� �� �e it���c���n and tests ��al1 � ��mrnc��i����� tv I����r re�s�n���y �r� �d�ra�c�, ��at i�� na �°v��t Iee�� �� �h�rt�. �3+�) ���s, �� aiY�w Buy�� ar it� r��r�sen�ii�v� t�a �t�:r�� �c� f��r�ry t��is, T�st�n� ��al� �� p�r�'or��d at th� ���f.�ry �� ��pp�i�a dw�x�� a�ar��,l `�r�r�Z�r�� h���� ���rp�ier �I�1� b�� t�� +�xp�r�se� c��" ��a+�h ia�t�� t��, k��t ���'�r s���i 'k�a�° ti�� cc�st�� (i�cl�dira� �r�v�� �d I�dgi��� ��' �t� r�p���e�t�tiv�� ���ndi�� :�u�� ia�t�, ��y�r'� pe�sa��n�i +�� �����n#�tirr� ��.11 ����rr� ic� �� ��'e�r aa�� �u�i�+ �a�e� �n ���ct �L ��� l�c�tit�r� ���re t�ae t��t� s��e being conducted. 5.2 Delive Ins ection. Suy�r v�" �� +������� ����� ����� �� �'�°�`�� �q�,i�rm�t�t frt��� �he shi�a�i�� �v��t.�i��t�{s j c��` ��' ��h�r ��u��pa��a�t ii+��i�v�r�r �t su+�� �r�es �� is t��c�s�ary t�a �n�� �'rc��e�i ��l�fi���s. B�a�re�° �n�i i�� �g�e�+�at�t���s r��.y, at, �u��r'� �as�, i�s��t ���h C�a�iprz�e�t. ��� �+��� E���1��e�s� ia��peeti�n, �°�yex ��1� giv� r�+�t�� tc� ����ti��° o�' �� cc��va�� r�tt�r �r�ic� ��yer ��sc�rv��r� �d �a�sider� �crt t� b� i� ���lf��� vvith th�s� 1#greerm�t��. 8uyer �1�1I �i�'ve n�a r��ht iQ r+�j�[ �rr re�s��� ���prn�ni in �n� d�1iv�� �y ��as�n �f ��sr dc�f�+c�t� �1�ich da n�# �r�v+���, 4r ��r��'s�iy ���t t�i� �,�� 1 aper�t��s� �r ��st�ll�t��n �f �r��k� ����t����, �� vi�+�d tlh�at ���p�i�r �,�r��s � �r��ci� �u�h �e���t� �n ��o�ar�� �vit� t��� A�x+�em��.t� �.�c��at��acc� c�i' deli�ery by �Euy��t �� a�j+ ite� +�� �.�ui�ner�t rar ��ur� c��" �3�y�r t� id�ti�y �ny �f�fec� c�� �v�-� �or��a�mi�,� in ����rr�e�� �t�au�� i�s�e�tic�r� �h��l ��t �e +de�rr��� � w��ve ,�ny xi��� �r '1'N�i� �#s���r#���t ��a� a��' �it���cn��4� �����t� ��� ct��t��� it�f�s�r��li�� kl�at i� c+����d���la1, e����r���l��- ��rwr�ili��� �Sw�����i��r���, �rwc31[�r° �ru�aNl� ���� �€�#liy �����d�l�lx� ����€ ����cia1 i�fv������uM i�r ����r����: rwith �1�� �FY"t�°��i��tifu�8� 1��`I"��i�;� isll�42!°lit�5�r[l� ���n ������!! ���.�f���'������$ �'S�.��� ���'�i�W �.���s ��i� ��f �� ��t����e���� fr�r�t� �•�t���6�°��� �rrr�l�ti� �����.I��r�. 16 remedy Buyer may have in connection with warranties and performance guazantees provided by Supplier under this Agreement. 5,3 Installation Start-Uu and Performance Tests. 5.3.1 Mechanical Completion. ��a�vic��d �si a���li�� ��� �°°���'���� �`� �c:��rstar �et ��li�+eri�s ��r e�h l���ia�e ���i ���t3 t3��r C�ui�����nt �t�liv��i�;� i�a a�:c+�rd���� ��� thi� ���'c+e��s��t, ��a��r ���tli i1���x yc���ll �h� �c#��i�a�7a�r�� a��e��-t�ir�g E� t�� �'rv,��c� �C�i�:�tn�t� S�i��ut�, �����1��r �l��t1 ��r�rv��� ���%n���.i ��vi� i�a I��y�r c��grira�; #:1�� ��t,�ui�n�c�r��'s in�t�il�ti���, '1'1�� a����u�t� c�f'���p��l��r'� z�t�ll�ti�n ��vi�c�rr�r d�,y� �ll����t�� �'�rr• ��� �qui�n�+��t'� in�t�lln������ is ����������lly �ist�� i�� 1�n���.,� ���ay�r �I���It l�� sc�t���r r°�����t��i��� fiae� 1�� �r+��+�� ��� tim�Ey sr��i��latic��a �[� t��e �r�ui�rn+�rrt �n a�c��ard�t�c� witl� t�i� ,l��rc������i� ���ci A��a��x I� an� t�x �ccc�r�l�tn�� wit� �x�si it ��. {7�n�� �u��z i��sl�il� ��� e�t�ip�ne�i, �����'��• �h�11 nnt��� �u��li�r wit�� � �i�r��c� �'le����r�i�ai +�c�i�����ti��► �c��ti����t�, �c� �e �u�e���e�4 +�r �ii�pui�ci i�, r�vr�ti�� rrri�l�i�x �r�v� ��) ����� by Supplier. �.3,2 �t�t�,�. �r��e�t�l� �a��l��u�n� i�r�t�ll�ti��a witl� r��ra�t �� ���� ���i�,�i�c:1�T��1 �a�rr�t�t��t �c� ���t���� �.�.�, ���ci i�����r'� �a+�iitz��iaa��� ia ��i������# t��t ���� ;�ix (�i� �r����;r�t�r �c�ts i��v� t��a� iiy��i1�� �r��rl� it� ������ ����i�7� �i�l� ���� �r� �:�ci� f�rr� ����t���� ���ti�o� �fc�r ��ck� �:n��r�� H�li, "�l���as�i��! +�,��r�t��eii��"�, '��la�Ii�r :���a�� ��rf��rr��� i��� T���i�������t';� �c��r�wi��i�ani�x� ���1 �t���-�ip �� �[y ���c �:��i��i°�at�sr ��i� fc��° ��$ul� �n�;i�:� %��li t�� cca�a�irt�x ctr��f`c�rm�c�: �f ikt� T�c�ue�p�c��ti trr tla� "{'��I��i��� �������'i���tis���� ��.l�e "�i�����.tp���. 'Ii�� St�t��p �'a� �afi� L���i�e I���s �l be �a��-C�r��n�l i�� ���rr����c vv�ih tkk� t'rc�,��c� N��t��t+�n� �� �a��, ��uu�1��� �l���c �'r��di� ��� ;���p��i�r'� carr������i�r��in�, �,��i��Pi��s, inclur����� �t1 �w�l�r� �1�� ��I` tl�� Ln�in��, ��nc���r+���ir��t tca tta� ���ic1 �nd ���t�r�i��� ��� �`���1 1��� t�r �i�'t��n �15} i���r�, �����tli�r ����rv�s ��� �•ig,��t t� s#c�p �F►� �it��••�l� �trc���ctti���� in �ar�i�r t�� i���+� tl�� ����������y ��cijt�s�tl;�ni� �� t�e �c�����atr��a�t, it�c1�;�� r�� �'zrc�rrr���n�1�e ��11 i3��y�r 4�� ���l��ri�.�� tn ��rry ca��. t�� .���rri��Jp� r��tl����.ii ������liur•7� s����t��r��i����, i�'p�n th� ��m�t�ti�� t�� �'ik�t-�[.3p o� �il ���+�r��r ��ts, �����i+�� �1��1 �ssu� a ��I.����t+� �+� 8��� u�di��i�r�,� °��i�� ��rt-�� is ��mplet� �t�� "��-� __C r `fiaate"). 5.3:3 Additional Services. Sup��i�r'� n�asm.�cr of �€�-d�y� a�l�a���d il� the �ta�_ �� ������� i� ����ti���ly ��t t��r�l� i�� �x �.. ���a�ie� �dii�a� ��zvic�s a� m�n-��y� �+e r��r�����r� �°car° t�� ���i�a�n�r�i'� �l���t �I�� �i�e tc� �a�an� �tt�et �� S�z�1�+�r'� �,��� �� it� r�l�li��tic��� I��r�un�k���, �.��.iy�r �n�� r��u��t, �n��, r�u����c�� t+�� ��l� �, �h� ���i�ti�� ��r�� ��u�����1y �x�;r�� ������� a�ci�ti��,�.� ;��rv���� t� t�; �a•c���ci��1 hy �����al��r Yc� �►��r�rj. �l+�tv+rtlh�l�����«� t�� �`�r��;t�����;& ��a�+�r° �la€�ll ����t �: rc�s�a�ar��i%��: �'t�r p�yi��� �:�r ���iit�E.>n�l ���i�;�� �r ���x���€ay� rr����ii�an� �'���� ������fiar's h��s��� ��' ii� a�k�li��tic���:� x�n�i��• t��� J��r�cr������d fi�r��v�ii������i�t�in� ��yt'�i��, t�a tl��; � ��a�i�°�i°y i�r tl�i� �.���u�u���� wit� r�����t tc� t�it�� ��n� t�w�t��l���r, ,��t e���tr�c p�w�r (inclucl��� t��i �c�vv��•} �€�n�r�t�d 1�� tl�c: l�'���t :��t��l� �� ��� �arc����rty of Buyer. 5.3.4 �c��tca���n���c��_i'��t� • t' ���"c�e � ����. l���a�nn��ly fc��I��v�i�1� i��t������ �+f t�+� '�t�k-�� C�r�i�i+��t�, Performance T��t� ru����ir�€! f€�7° �1����t���u� �la�[1 l�u �c��e�;�s�t�� ��� e���t� +���rat�c S�e� in c���x � demonstrate the �:c�����ii�r�c� +��" t�� �.���ip��e:��t wit1� tl�� a���li�.�a�[� ��r.��rrr�anc� ��u�ra�ite��. Unit Output �r�� T�"r��t T-�s��t '���� ���`�`c��°tn�nc� 'l ��i� �I��[i l�e r���iisr�tl ,1'��I� ci����rrr��ri' ,��i�1 ��r� t��i��i����r�t� t.���'��c� �'r�y ��►��ta�i�� iMtiforma/ion that ie €��t��e�t���l, ���r�a���i�l�y� ������#�ve, �7�'u�ysri�i�ry, ���rlP�rr j�����ic �+����" ui���t�' +��a����lilive end tinenci�l i���r��E�a�� �� �����^+de�� �'ith tlta �a�����ia��� ���'1"�xa�� �;�����'rrria��t +��1�. �i�clics�� 5 a�. �11� � SS2.IOd, 552.110 ���lla�r 5��.���� �smt� in�� 1�� ����1a�i�t� �"r�n� r�e����t°�ck �a�[�p��: �Ni�cl�ti����. 17 for Acceptance, and shall be conducted by Supplier (with Buyer's personnel observing) in accordance with the Final Test Procedure. Buyer's personnel shall act under the supervision and direction of Supplier's technical personnel. Promptly after achieving Acceptance for each Generator Set, Supplier shall certify by written notice to Buyer, the same (with documentation of test results attached thereto) for Buyer's acceptance, which certificate shall be signed by both Parties (the "Accebtance Certificate") and the Primary Warranty Period for that Equipment shall begin. The effective date of the Performance Tests' completion required for Acceptance shall be deemed the day that Supplier successfully completes the applicable Performance Guarantees or meets the Minimum Performance Standards (the "Acceptance Date"). Supplier is required to achieve Acceptance on or prior to sixty (60) days following Mechanical Completion (subject to excused delays expressly permitted under this Agreement). 5.3.5 Performance Tests required for Final Completion. "Final Completion" means, with respect to each Generator Set, the results of such Performance Testing (or re-testing, if needed) demonstrate that (a) emissions testing has been properly evaluated and values are equal to or less than required for Acceptance shall be deemed successfully completed when the Exhaust Emission Guarantees, (b) each Engine has demonstrated the ability to operate at or below an average of � electrical capacity, as measured in kW at the generator terminals during the one hour test, while meeting the Exhaust Emissions Guarantee, (c) the Engines have demonstrated an average Lubricating Oil Consumption of no more than � US gallons per hour per engine, (d) the Engines have demonstrated an average Ammonia Consumption of no more than � pounds of - aqueous ammonia per hour per engine, (e) the Equipment has met the noise guarantee tests, and (fl the Reliability Test has demonstrated that the Project achieves the Reliability Factor Guarantee of -, the applicable Performance Guarantees or Minimum Performance Standards have been successfully achieved. 5.3.6 Buyer may begin Commercial Operation after Acceptance provided that, in doing so, Buyer and Supplier coordinate Buyer's Commercial run time (with the intent to run during peak demand hours) and Supplier's Performance Testing time periods (with the intent to make personnel available for and to test during low market demand hours) for such Generator Set to the extent necessary (a) for to carry out Performance� Testing to be conducted in accordance with the Final Test Procedure and (b) for all Tests required for Final Completion. Supplier shall complete all Performance Testing on all remaining Generator Sets to achieve Final Completion in accordance with the procedures in Section 5.3.4 for all remaining Generator Sets ("Final Completion") on or prior to the date which is sixty (60) consecutive days after Acceptance (such date, the "Final Completion Deadline Date"), subject to excused delays expressly permitted under this Agreement, including any delay caused by Buyer for failure to allocate sufficient time for Performance Testing after Supplier's prior notice to Buyer of specific time periods during such sixty (60) day period required Performing Testing in accordance with this Section 5.3.5. Subject to the immediately preceding sentence, if Performance Testing and Final Completion on any of such remaining Generator Sets is not completed on or prior to the Final Completion Deadline Date due to Buyer-caused delays, such Generator Sets delayed shall be deemed to have achieved , ,, ,. r , �, �. , � �; 18 Final Completion, and the obligation to conduct the Performance Tests on such Generator Sets shall be deemed waived and Supplier shall have no liability for Performance Liquidated Damages in respect of such Generator Sets, and Buyer shall pay Supplier the remaining milestones under the Milestone Payment Schedule in respect of such Generator Sets, except for the Punchlist addressed in Section 5.3.7. 5.3.7 Punchlist. Promptly, but in no event later than five (5) days following Acceptance. Supplier shall prepare and submit to Buyer a detailed list of items of Work needed to be completed by Supplier under this Agreement (the "Punchlist"). Within ten (10) days of receipt from Supplier, Buyer will review the Punchlist and Supplier shall, at Buyer's request, discuss with Supplier any Punchlist item or items Buyer believes should be included in the Punchlist. Sti�����r shall use all reasonable efforts to complete the Punchlist items no later than ��' �i ' days after the Parties agree on the Punchlist or, only with respect to items of Punchlist which are :�������ci to �is}����, Should Supplier fail to complete the Punchlist within such � period, then Buyer shall have the right to complete any remaining Punchlist items and Supplier shall reimburse Buyer for the direct costs and expenses of completion of such Punchlist work. 5.3.8 Repeat of Performance Tests. For a period of ninety (90) days from Final Completion, Supplier has the right, at its sole cost, to test the Equipment, including the right to re- perform any Performance Test, in accordance with Section 5.3.5, until the Equipment meets the Performance Guarantees or the Minimum Performance Standards. If Supplier re-performs the Performance Tests within the time period permitted under this Agreement, and these Performance Tests demonstrate that the Equipment complies with the Performance Guarantees, the Performance Liquidated Damages previously paid by Supplier shall be refunded by Buyer within ten (10) days of receipt of the successful Performance Test results. ARTICLE 6 BUYER RESPONSIBILITIES 6.1 Buver Responsibilities. In order to enable Supplier to perform its obligations under this Agreement, Buyer shall be responsible for the following activities, each to be at Buyer's expense: 6.1.1 Pay the Contract Price in accordance with Milestone Payment Schedule and Article 3 and the terms of this Agreement; 6.1.2 Be responsible for making available space at the Plant Site for Supplier's laydown and storage of the Equipment and Supplier's tools and parts; provided that Supplier shall be responsible for the secure and safe storage of Equipment and such tools and parts in accordance with the Supplier's storage guidelines until such time as risk of loss passes to Buyer pursuant to Article 12; ;�, �, , f t < < � :, � ,, �, �, � t� �, � � �� `t � t , �� � 19 6.1.3 Cause Mechanical Completion to occur in accordance with �ection 5.3.1. 6.1.4 Not used. �, �,�, ���$�� reasonable, safe, and tirnely access to the Plant to Supplier's ���,���� ��� ����n,�a�� €�f its Work hereunder, including fo�r the Servicea, Generator Set ��livc��y �� �t��� ��a�s�n.e�t Delivery; ��, w,{� �:���>vicle ecampclenl and expericncecl peraonnel to assist Supplier in ����,���,����t� ���� �,�������y�����`�; CO171111�3B1O11111g, Stt�rl-U��, �nd Pei�ormance Tests in accordance with ��3�� ��������,����� ���������i��� ���rsonn�l Who �rv qu�tliliecl ln c�perate and maintain the Equipment ���r��i� at€4r�Wtig� �.�r��l a�s����l���i cif th� 1'�rta��m�iicc "I"ests; 6.1.7 Obtain on a timely basis a11 Governmental Approvals necessary for the and the construction, commissioning, Start-up, testing and operation of the Plant; 6.1.8 Provide to Supplier such information as is reasonably requested by Supplier in connection with supplier's obtaining all (iovernmental Approvals for importation and customs clearanee of the Equipment; 6.1.9 Enter into all necessary cantracts and agreements or as otherwise required for the dispatch of electric power produced during Start-Up and Performance Tests; 6.1.10 Provide fuels, and initial iillings of lubricants, chemicals, water, and other consumables necessary for Start-up and Performance Tests that are set forth in Annex B and Exh�; and 6.1.11 Timely perform its obligations and rights under this Agreement, and not interfere with the Supplier's work. 6.2 i���+��"� ���i����r�.�v:�. �itl�in �rty (34} ��ys �� lhe Effeotive Date, Buyer shall ����,��:y �����li��' �� ��� ����iv���"� �����t��� �� �'���� to oversoe Buyer's performance �r���#��� tlii� r��r�urr����� ���� �v�° ��a1� �t ��he �rit��ry poi��t of contact for Buyer with r���ct ��� �l�ls Agreement. 6.3 �`r�d+e t El��xi� �r�ic� .�u��r ���I� perform all its obligations in good faith and in acc��d�c� wi� l��d��# E1��ic ��i��. ARTICLE 7 REPRESENTATiONS AND WARRAN'TIES '1.1 Buyer's Renresentations and Warranties• Buyer hereb�+ represents and warrants to Supplier that: �'��� ������y���i ����1 r��r�t ��#��".N����r�l� iheKetrr ��r��y �'�'���i�w �rtic�r�`r�t��� l��� is n entiaf, com ercially- �at�����v�.� �r����#�t�r�+� �n��J'�� ����fc pnWew ���ili�� �v��1��it�l�� u���� �i��� . 1' for atlon in accordance wlth t��� �rr�rri���w�� �'�'�`���� +�+►v�t°����$��t C o, ��rii��e� ��2, ��1 ����,��'�+ 5�`�.11 ap or 552.133, an ay psr�i��l�a� �e���r� �'�{��r�� �i�li�k� �ilaclosurc. 20 'T.1,� ��c���t� �l��t�r�. �uye�° i� � �o�n�-r�ul� r��nic��� c� r�t�nra ��ly +�r���i��, v�i�3�y ��isti���; �wr��[ ir� ��c�c� ���z���3y� ����ic�r th� ��w� caf tF�� �t�i+� t��' "i`ex�. ��y+�r ��� s�l# t�a� r��t��r���t� ��������i� ��w�r ��xd ��ri��r�t� t�a cc���cf�ct its ��a���:� ��� t�r n�n, 1c�t�� �d �r�rut� it� �arrr�a��ti�s a� �r+�����tl� s��i�€��aci��i, vr����d� c�r 1�����. �cJyer ���� ��� r�equi�it+� 1��€�� ��aw�r t��i ��rl&����ity d.� ��.�:�t�i� �d c���i��r tk��� ����;���a�t, t� c:�n��tc������� �h� �������i�r�s �rrat�rr��l�t� %����° �� t� �a�rt�r�•�r� i�� �,������t�c�ns hereunder. 7,1.2 ��l���t �E` � �r��r�e�lry fl(�a C�����f�. '1"�°i� �x�c��i���, �i��i�r��y �n�� per�'�srrr�r,a��c� +�� I�i� ��r��ern���t �s�� tl�� �n�surn�r�atar�n c��` tk�� ��r��c���r�� e��ie��l�,t��i t��r�la� lt�v� b���� �uly ��t� ����lly �u�lx€�r%��d �r�� ��p�r�ver� �� �tl ����i�i�� �r�r�a�r�t� a��ti�� ��� th� ��i +��`����r, "1�►�i� �►�;a'+�r����t cc��g�itratr.� s leg��� �i�ndi�� ���# v�tir� c�1�li�€�tir��� t�t �r�y�r, ����"+��c����c ��,�a��t �� �� ���car���a�� �vi�k� i��; t��•i�s, ���+��� �� �i�f�ar�;����ii�ty r��,� �� li€Y�it��i �y ����i�b�� ti�����t��rt�y, iia;��a�vc���, r���r�a�ir�tic��� �nc�r���r���n c�� �i�il� l�ws �r�n� ti�r�� ta liw�a� ��� ��'�i tit�t �[�`+�� �r�r�itc�r�' ri�at� ��������r11y ���d l�y 1��,�! ,�r��i e�:���i�� �r��°��i�ai�� �����ir�� t� il�e �ra�il���tity �� s��c�� ��e�ii��. "�e �x�+���t.i��c� �t�ci �rt't���r��c� �� l�u��r c��" �l�i�� ���°������t, 11�� ��s���ti�a�t �a� i�e �s�t�c�ra� ���t�a�����c� h+�r�by, �a�� �he ��a�}�iia�n�� wit�� ti7� �ar��+a�i��� [������� �� T���y�t° w�i� ncrt ��� �:+�r�t�li�� �rith} cc����tit�ti� � �r��+�l� ca�„ �r �i�lat� r�y �Sr�►�i�ir�s� c��` �1�� t�rt�s�ti�rr�, �h�n��r, crr����i��#��a���� ��� �c�v��������, c��c��r�c���t:� �� ���yc�� ��� eric�4at� i�� �n� rr�����i��.l r������t �a�y �.��w ��pl����al� �� �t, ��j r�c��i�r� I��ey�r t� �l� ��• �btai�� ��y �c�v������t������� �,���x7v�� ��t�� �r ��°c�r�� �r�� £'�c�r�c������������ t��i� w�i�h h�� r�c�t �lr�a��iy ���:r� ti��c� �r t�%tc������ +�r ��} �����re �n� �c�n����� �aix��r ��r �Qrs�ti#iai+c a� �r��+�� �r +��#��lt L����r ���� �n�t�ri�.� ����1��;�ct i+n �ixi�h i���yea� i� ����y c��� �n� �a�" ii� �t���4�, ��•���c�r�r�s c�r 1���sin��mes is bound. 7.1.� N� siti �ti���. `C���r� i� �r� �����n, ������ �uit. ��• proceedi���; by or before ��r C�rav�rs�e�i�� ����� ���������, �"�' �"� �1�� ���u�l k�ac�vvl���c� �f I���y��, tl�reaiened that seeks to �a�u��fi �e cQn�u��l�r�t"tc��x ca�, �r ���€�t �rac�ul� �n��ri�s1�� ��v�rsely s������ the ability of Duyer to �an�►a�r��t�, t�� tr������#i���;� �c�����x�tz�l�t�et l���i�by. 7.2 Renresentations and Warranties of S�nn�ier. T.2.1 Cc�r�orat� l�atta���. ���p��li�r �� � ����c�r�ii�c�ra �4�i�+ ���;�nir,��c�, �€�li�,��� �r�i��ii�t� �a�� i�� ��c��! sda�a�i�� ra�n�i�r ��� i��� �� �h�; �t.�i�; t�f �r�r�����c�. ���p�li€��r %�� ��1 t�e� ����luisit� ��r����z�t� �t�wer �cf skutltc�rit� i�a �ra�'c��tut it� i��ti��ne�� at�d �a ��na, i���� �t��d ����r�te i1:� xX �r���rti�� �� ��������1� �c��cl�ci�c�, ���,��1 �rr I�.��c�. �u���li�r �K�� �1L r���i�ii� l��i �°����r ��,�c� ���lac��•it�+ tt� �x�u�� ���� ��liv�r �i�a:� �.�re���r��, t�� ��an���zntr�s�t� ti�� ir�xtt���ii�a�ns c��nl:e��pl�t��� h���b�r ��ci t� �a�a��c�rr� it� c��1i��iir��� l��r�unci���. 7,2.2 �ali��t �_' �,��ru�;��������� ���nt�is;t�. `�'l�� �x+��t�i.�r�n, ��1iv�€��+ �� �e��"�ar���ar�� e�f' tl�i;� ,r��,rti�rnc�it �nc! ��� ��yn.��������a��c�x� c�i' tX�� i����w�ctic�s�� �:t���i.�r���aL�t,�c� ���r�ia� laa�r�'���:� ����1� ����! �v��i��y �ti��h�ar��r�� �az�� �p�a�rr�v�� by ��l �°�r�ui�iie ��sr�c���t� ��iac�r� �n tl�� ��i �� ;,�;���p�i��, `I'l�i� ��,r������t �c����its�t�;� � i���i, �����ii��� ����d v�wi� v�li��ti�s�� cai �ts����i�r, �x���z��:���t� ���i�t�� i1 i�� �+�u��rd���;� w�tia it� t�r���s, ��cc���t �� �n�'€�����l�i�i�y t����+ �� ti��t� �y ����iu�i�f� t��aa�r��at�y� ����t�l�����y, ru�a�r�ani�€��i��i�, r�c����tn��%t�z� �r si�i���£ 1�vvs i"r����� ii��� �€� �i�nc i�� ��`��i �lh��i ��"���t �rec�it�ar�' �•i�k►ts g„���r��1y ���c� !�y 4�,�a� ��� e�ttiiy ���ri��ci�'I�� ���l�i��ti� t� th� '�`��i� tl����r�s���i e���� �M�� s��t��cia����N�#� ti�er��� s�tr��' ���k�in ����'��s•tr�a�i��u� 1����1 1� ���s�������i�f� a�u�����,�r�:i�l�yp tt e�it�n�+� p aa �� wf'�'�x������� r�nn ��►�i �: i��+����;� s��� 5. � tl�l� ���.�t�� �5�� � lil a����4l�r �,�.���, �r �i��� ��c��f�r � p�r��tw����l �'������ �°����pir�c�� �3�r�alfr �li�cM�����rr. 21 ��v�til��[�i1i�� ���' ��r��ili� �•�,�r�+����:�. 'l'I�� ux���Miic��� ����c� �����i�r�a����c� �a� �u�a��l"a�r e��t��i� .�,����cn�erat, iltu �������►rnr���a��t�r� c�l" �1�� t�°a�t����tica��� �c�n��'���1€al�c# i��x�b�, �nc3 i�� ���pl��nc� w�t� t�� }�r��v��i���� It�;r+�c�f I�y ����4��i��� wiNl t���4 ���) �;ra��iYi�t witit, cc+n�ti��l� � �r��►��S ��`, �r� v�i�l�t�: ��� �ar��vi�ic��� ��d` tl�� ii��•Er�r�iicar�. u1��wsrt���, ��w������i���t��r��€�1 €�� ���v�min� ci��u�t���i� c��' ��a�pli�r �r vi�al�t� i�� ���y ���r���ri�l ����:�� k���v ��a�� u����lic����i� t�� i�, ��} r��+u��r� ����ii+�r tca til� c��r vt�l.�ar� �z�� �.�c��r�rnrr�����1 l���a����a� ���kx �ar �n� �ay ��v�rnrn�r�t�i t�a��� ��u�l� ��� ���i �iz��� ��� �il�� c+r c�htair��d ��• r�rill ��e ti�n�iy �bt�i�� c�r �il�d ��) r��ir+� �y c��s�nt �n�l+�� rsr ��s���t�+ce � l�re��h �r d��`a,��� wa��r �y ��t��i� cvan'Gr�,�c! t+� w���� �up����r is ��a�iy c�r �y c��' i�� �s�#s, p�rc��e�i�s ar businesses is bound. �.� � ��, �,i���,���,�'�, '�"����; �� �a� �ct�e�n� �la�tn, suit or proceeding by or before t���� C'r��������������ta�1 il���i ��u��c�i���!, ��r C�� i��� ����.�ial �c�v+rl�r.ige �f �upplier, threatened that seeks to ��i��ve���� t���; �c�a�w��i���titr�ii���� ��d`, �ir Ila��� �rv��t�lci ����teri�iliy �d���e�y affect the ability of Supplier to ��zr�:����r����s���a�, �1�c� i�°a���:���+�i����t� u�������t��������c� i�s�r�by. 'i.2,� �xt��s�� �d ����b�latv, ��'����liur h��� ;���i��t�sM��i:�l �;x����•i�ti�c;� ��i�c4 �����:el��u in th�; �n���a�:��i���;, ��r�n��f��t.ur� ���� ����ly c�l rc��;i���°����ti��� i��t��i����l ������l��t�tic��� €����i��u� ar�u�� �:� t1�� T:c�uiy�rn��t �n�i t1�� �a:���aii�y i+� ����ry +��s�i �I€; ���.��y�;§��1te�r�:� �rr��l+��� ilti� �t�r°��������i, �������fic�r� �c,kr�c��v����� tl�at �3a�y�r i�s i��1y�n� upc�ra ����Y ux��+���i�r��a�. ux����°ti�c ���t�l �������l�i9i�y i�� �x����t���� t��i� A,�rr+e��n�r�t. ����Ii�a° ���� t�l�� �������i�l r���,tirc�s, �a����r�n�13 ����i�rra+���t �d at���� r�e���,r��� ���;��;��°y t� ���r�v�n� tlz� 'VVar�c un��r l�i� 1'��r��r�����t �ara � ti�nr��� �n�i�, �t�}���1i��• h€�� ���s��ia�ly �x�rrr�r��� �il �c����ii�is�t�� r����rmr�t tc� ���� ��rr�rin�; c��.�t �,� t�� 'V�li�r�C ��r�c��:� �t�i� ��r���ne�g� (it�lu�lin� �vnditi+�n� a# l�c�,�i�n� w��r� it� w�r'� w�l� t� p�:��`rar��n�� ��d t�z� �v��l�bi��.t.� �� lut�c�r, �g�i�a���t�� r�at��i�l�¢ �,�,ep�lis�� ar��i �ti��i��� ia� ��cl� �cx;�ticaa���� ��.n� ��:����� �k� �•i�l� ��' ��'�� c�ar�+�iti�n�� c�r t�� �x��;,�,�� �zrt cii�ii��afi.y �f ��rf�r�r�i��� it� c�t�l����ti�r�� ►�i��e�� #hi� i�,�rec�ta+��z�. �nt�r�������� �� ��r�c��ii�r�� ��1���1`r� t�� ��a���1i�r':� w�r�C furni�l:�� �ay �3���+�r i� �t�t ���a������r�tc��� �r�cl r���ty r�c�L E�e �ii�:c! upt�n by 5upplier and is for co�lveniet�cc: oi�ly. �u�apli�r h�� k•��:�:iw�cl i��c� �c:liv�m•�:i���� u�r�er Section 6.1.8 and confirms tF►at they confc�rm to kR�� �S�r��li+�r'� t��;f��ji���l �°�c���i���a���a;,o��� ic�r th� installation and operation af th� E'.quipme�lt as pt�rt of the Plant. 7.2.5' Intellectual Propertv. Su�a�sli�r ��ti� �1� �i��e19��tua� �r������r �n� c�t'��r �°����t� r���.+����r� w�t� r�:sp�ci �� t���e �a��`�'���{������+� c��' �i�+� 'U�t�rl� �t�cl it� ���� [�� �3�s�ar ��d i�:� ��i��c��n��� ��� ;�s�r�,��r;�, ���I �t� ��rCc��•�°� it� �t���r �l��i�;���c����'��a��������r. k��a�1���r �t�� ��srfc�r��r�t��:� c>�° ��a� "�'vr� ���r' ����y �r�� ��r z1c�u��r1����c;� ��i° ����� ��!" I��u�j� #��r l�t��rt�� ���° ii� ������s�a��t ��r �������� �r�ll wic�l��� s��� i��Cr����� t��c��� x���y ����l�r�t cr��° crtl�s;r� i��t�l�c��;t����i ��r°����u�°ty �°��l�t ���`�t�� �a���c>n «� ���1�it�r. `li���-� �� �� v��i�i,�[�r� �a�� ��i�i�i�����a�c�}rot ����c�r�, �����I ��i����6i�r I���� ��tat it���:�� ����cl w��i �a�� d�� �un�r a��y.c��, �h�t� ����t� ���l�ad� ��� i��ii����,�t� ����c��i, ��rt� �zi��� ����t�r�t ��r° a�llu�r� ���tet��ival �ar����;r�� s�i���t i�x tl�� �r���u�'�t�tu��� ��t�� �u��y�� ��`c�r ��r[�r��s�n�� ra�i�c ��r% €�;� ����i��i�plated hereunder. 7.2.6 Su�plier Parent. Supplier Parent is the ultimate pazent af and Controls Supplier. "�°q��� c'l��t�����c�� ���� �ti�y ��I�����n��roi� dh �� rn�� �t���M� I�ftsrn�s�t��n 4ka�t �� �,�a�����i��tN, c�zA��w�t�r�a�l��� ��M��iii�+�� ��r����°i�t��`Y, ���il�w ��r��l� p�a��r �s�[li�y ���p�t����� ��t# ���t��ls�l i���'�►a�ii��di��e� ��� �+���r��n�� �i ��,� }��°�v��ir�w�� ���'i'��a�� ���►+cr�t�t���t d�c�d�, ���k��� 5�''��I��, �.�t��, �.id0 �t���il�w° ���,���� �rr�4 �M��� �t� ���'��l��t��� C�av� �c�e�r�i��� ���ialie ����t����. 22 7.2.7 (;`�r�• ������l� w �� ���r���. �;����li��� h�� c��1ir��r+�d �+a�i�;.� c��" ��� �u��ii�r'� ��r����airr�t�c�����1 ca�° lia�°�����iic��� ��i�t� �c��r�:��i����� cic����y,��w��� a��� �pi�� c��' t�e r��+��ui����� �f the �;����s���r�� I����i�::� c��` �����������• �����It�r�ei�ir��, ir� il��* ���� t�t` �r����i�t� tl�e ����r��i�� and ci�li��ry c��` ��w�t� ���r��t��X�►�����ic�r� taf't1�� tM��������ciia�r�� �uc�r�t�t�a�lt�t� �y �l�i�� A�r�s�II�n�nt ��c� �C�) ��) �t��c� �����i�a� ���i���ts�� c�f ����plie� i���e� �y ��� ���r�ia�r �� �i��� +�� i�� ��rv�r��ii�� �r��:�ic:ti+��t v� Su��lier �r�d ��� � ��artifi�a�� fi•�zn tl�� ��c�i#����ry c�l` �t��ta: �I` ih� ���t� ��i"I`c��t�� �t���i��� �C��t i�h� �u�p�i�r �� r���st�r��l �� � f`car�i��� ��►�i�� �����������c� tc� �l�a t����iMts��� ir� t�a�'���te of Texas and has active status ��������� ���;�� ����;����� ci�l��r�r�cl rursuflnl lo clt�uacs (1) and (2) af tl�is sentence to be as of a ������� �i,��� �,�� �����, ��,�� ����� (1 S) days priar to the Effective I7�ate. ARTICLE 8 ERFORMANCE GUARANTEES 8.1 I'�x�n�r�mman�� _ u t�e�. Suppl�u�� �i��t�y ����°t�r�t���� �ha�t ���� La:[u��a�e�� will comply w��.h ��.ch ��'t�� �"�����������e Guar�w�t+�:� vuk�i�� t����`��i�6 �� t�'� i'��c�j��ct C���l as evidenced ��ara�tg dk�e �'��'+�������c� Tests �r� �����rc�s��tc.�, �ti�% th� ��t�avi�i�a� e�1' Exhibit 8. It is the Parties' clea�• understanding tllat the I'��r�r��cfe +�����'����!�� ��'� ���'� on the Pxoject Fuel and the design conditions set forCh in laa��i�'t �`� ����� �• 8�� i's�r-I������i�����c�.�������� `�� [��a������. lf" il�� Lc��iy�t��e��i i�i�� �t� i�acci �hc �'�r�"�rrr���� t���r�ai�s r�u� isa �t��rplir��'S C�sr������ af` i.k� �bf��ti�r�� ��r�u�c����, �����1`aer ��.�1 p�y tc� B��'�r �� �p��i����e �'er��r����e.� I��r���i������� Q��a��� i�� ,��t;�,s��i�����: �ra�it� t�e ���aar���ic�n� ��' �x�aibit �, �������nt c�ti �l�� 1���f�r�°���ur��� i.�iq�aici���l �7��nn��;�� ���e,�ifi�:�i i�n �x%��i� � i� ��������i�'s ���1����v� ��li��ti�� ���ci ���y�r'� �x��u��v� r��n�t�'y �'�sr �i�x�an�c� i��+�ut��c� i�y �3u��r �+r'���1� �i•i�;� ��l�ly ��� ta� tk�� �;�s�ip��a�nC';� i`�ai���•� t�� ���t �i�� 1��.����ar��i����+� ��u���r�tat�u� �� ��t fc�rtl°� ��t ��:�t�i��i� � (u�����t li�r I'�,�°l�a����t�w���� (�x��M�°����t��s:; ����• r��ai�� nc� �rrr���t�c�i�� s���ifi+� P��I�����������cu l.�c���ici�i��t I���r������� ��°a ��i i°���°�1� i�a �x�i�i� � (�h� `d;�u�i �r�c� C���e•��et��"� �v��+�t��a�t °�����:t �l��i��i� �r��� �I��i�r������i �r;� �trkui���, i�� c�an���� warr���ty� #���� {������c�ir�� ����1��;�����:), �tN•�c:� I���t�ila�y, i��cic�i�r�i[y c�r ��i��c����i��:. Tk�e ag�r��te ��t� ��' t�� i'�rf�r�nt����� i�i��ui�9��t��� I�����a����� ;�����1! ro�t�! +�a������ �i�a l�rr��t�.ti�n a��t ��t fc��% �n ��c����n �1.�, "�`�� l'��•�nt���r��� l�ic�u��atr:tl l��m€���� ���z��ie b� �t��rpl��r ����1� %�; i��c�v�ci�� �� ��a c��(s�i tc� ��y�c���ni� p�y��1� l�� �����r ��� �;�����1���r'� ti���� ir�vcaic;� ��r, i�� t��c; ��t�nt �i7�y �;���� t�a�r�����,� ��y���� kay l�r����, �i��l� ��+� ��i€� ti5�r ����a�ali��F kr� ��y�� witl�irn ii��t�..��� �l5) ci��� �Cil�e �����a��• t� c���t�r c�;l`���n���c;�i��� c�t" ��� ���S�t��ai��l titn� fc}r ���r����l�ti�a�� c�f i�� i��t �'er�`�r��ce `� e�t. 8.3 Must Make Guaramtees. Supplier shall at a minimum meet the Must Make Guarantees, none of which are subject to buy-down via liquidated damages. 8.4 l��r��t���, �c� �r����at�v�� �; �r��i�i�c� �� E�hi 't �, �����° s��iii �a� 5upplier the �p�iic�t�1� ���r�n�s���x�c� ince��ti�r� t�� iix���:�f r���c� �����st �mi��i�n� l�we�� at or below i��Yu l�v�:l� t��i� �����tl� ��� tha �,x�a���t �i�i�»���ra� �ir�ar��� �c�r�din� t+� Attachment 2 to Exhibit 5. '�"I�t� <1�r�u�w�r��i �t�� ��zy �l��e���i���n�� ����w�.��� ���a�" �`�rsi����� inia��Y��r�o�i�an �I��� �� cnntiden�iml, �ar��o�r�i�llyP ���w�z�l��v�, ��'���a�'i�#���, �r���l��� �7u��l�t �����v���° �kk�tf��^ �����i�iiv+� €���t� ������e��� �nformatiox� kn ���t����ne� vvlth l��� y�k��rvi��tars��s c�� `�`�x��� ��s�����►����art� �:r����, �����+�r�t �r;��, Ni��, �:��, ��i�� ���.I 1i� and/or 5��.3�3, ��ad ��� Ms� yrr�i��t�a� ��°��s�s r�^t����rc�� pr�����N'�e �11scl�sur�, 23 ARTICLE 9 CHANGE ORDERS 9.1 Chan�e Orders. If Buyer orders or causes changes to or stoppage of the ,���� ,������� �,� ������,���� �,������� ,�� ���� r�y�����, �r� i� Buyer delays or interferes wi� '�u�pli��s '�V�r��, �� �� � ��'��� �f ���"�� M�.���� '��cur�, Supplier shall be entitled t�n a`�rciiten �x��r f�r t�c �h�n,g� �a `�+�hha��e �rder"�� ���;plicable, and the Contract �"ri�, �u��met�f. i)�i�v�ry �f�� P�,�fs�rm��e +���a���, and all other relevant pr�rvi�i�ns ��ti��; �,�r����+��i �1���� �� ����it�l� �.j�asir�d ���ardi���y t� ��t� �x���t �f�'��te�, ��+ suc� �����; t���r�� � t�w�v� t��t �u���iex s����r��� �tr���• wil� i��{�r���ti��� ��i �af��r d���irr��nt�t�r�t�► �����i�ni��tit�� :����:�a� ��ct� i�, ar�d r�zc�l�d� i�aae��in ��3�c���c �q��s� c�g�s �� ih� ���r�t:� F�ric�, t�a�; sc��dul� �r �vthe�r ��liv��+ �t� �r�'��as��e ��a�r�#��s � �� �t��� �elev�tt t�rr� �� sc��� � r���;���%�� �r���.ic�abl� %axt t�c� later than �vv�n�� (2{�� ���� ��ar �t��� �t���r +�rd�r, c��,e, �� iC�� �c���r�n+�� c��' s�r�� Event of ��r�ce �a.jeur�e. F�al�� r�� ���pli�r t� prr�°��+�� su�la ii�t�������tic�n ��i+� �n,a�� ���a��� claim for �;�,���� y�,��� ��� ���,� �����y�, �,�1 ��r�tstitute a waiver of any effect of such claimed ��,��� �� ��� ��� ����,�� �, �%�,� Order therefor. Adjustments to any price or scheduled date shall reflect only the reasonable and necessary impact, after all reasonable action is talcen to minimize such imp,�+�t, '�u`it%i�a fv�e {�� ti��s +�f re'�:ip� +�� ��� ��� �n,�ormaiion from S�pliar, Buydr �nd St����li�r s�all r���t �nd, �ii�g ����t�b�� �a� � good f�ith, negoti��� � t��4tr���lfy �����ti�krl� C��a�+� (lr���r in ���an�� �vit� il�� prir�cipl�s set forth I��x�i��. �t��;����r �h��i n�t b� a�1i�t�d i� �r�e� wi�, a�ny ����s or c�xt,ra work until t�7� ��•��e c��" �t���� c�t�g� �� ���'� wvrk its �et�`�t an t�� �ui����� ��li�+�ry ��t�, ��t� ��r�'�rn��ce t�����rat�s �� ���� a �port i� vv�itin� r�ith ��y�c i�� ;� +��t��� �rder. �p�n. ��tu�� �pprc�r��1 a� ����x C;�r�.���� �rd�r, �u���l���• ���ll +diiig�ntl� p�r�+��°r� �e e �� ��a�t�z��ai�t�� by �u�k� +�1����� i�rc��� i� ��r,�r��u� wvit�i �is A���n�r�t. ���pii�er ���1 �c�t �������� i�� wl�c��� �r i�� ���1� p������rtt��te� €��' t�r�� ,A�a���ne�t dur�n� ��r �i�� nver �� ��c�� �l ��a� '1N`�rk. �r ��������� i�c re�+i�vv �r��� ���;c�Ci�i�crn nf a�� pr�p�a�d. ��ang� �'i��r ��al�s� �i��t�c� �� ���r� �� c�+� �r �a,� �uy�r, a�c� i�` s� �d���t�, ��p�liem s�a�� d� sv wi��u� °uv��rin� �� �`igl�t �r�t� respect to such change or disputed item. [7n�� a+Ch�ge �ir�ie�, ����1i�r �h� ��ntitled to all reasonable and reasonably �vcu�n��t+�d. �ast� �nrl �����s�� ��ri�r� �er��rom, including: (a) the costs required to mitigate the effects of a delay in Supplier's performance which obligates Supplier to mitigate; (b) the cost to perform additional Services or procure additional equipment or materials; (c) the costs incurred by Supplier in the removal of any Equipment from the Plant Site and in the repatriation of Supplier's and its Subconlxactor's personnel; �'�ia sf€��ye`�e���t �Nttl ��� �it��lf������ �It���� ��y ���t�iu i�tormation thrt is ���i��l��xii�t, �����i�it�_ ��p��[tiv�, ��a���'I���ry, �nt�%� �u��c ��t�r�"�r zstlC�6y �o�� ����ve and Cnancial ie�f�rr��4lan i�� �����i���� ►�°ith ��e �v��i�%�� t�P'�'�x�� �av�r�tr��nt ���+�� ��i���s �����i4�� 55Z.1 , 552.110 �n�f�s� ��,� , ��+� ��� � p��+nt�t�d �'ro� re���i���4 ��bl� +����Is��r�a 24 (d) any amounts to be pa.id by Supplier to its Subcontractors in conaection with the modification or termination of any subcontract, including an.y cancellation charges expressly provided for in such subcontracts; and (e) the standby, demobilization and remobilization costs of Supplier's and Subcontractor's personnel. 9.2 Form of Chan e Order. Each Change Order shall be in substantially the form set forth in Exhibit 11. ARTICLE l0 DOCUMENTATION 10.1 Document Deliverables. As part of Supplier's obligations under this Agreement, Supplier shall deliver to Buyer the following: 10.1.1 Ninety (90) days after the Effective Date, Supplier shall deliver to Buyer Supplier's quality assurance and quality control guidelines for the Equiprnent; and 10.1.2 Ninety (90) days prior to the anticapated date of the Performance Tests, Supplier shall deliver to Buyer three sets of the Equipment's operation & maintenance manuals. Supplier shall deliver four (4) hard copies of a11 such drawings, and operation and maintenance manuals in English, along with electronic copies of all of the same on eight (8) USB thumb drive(s). Supplier shall deliver the documentation in accordance with the Document Delivery Schedule in Exhibit 12. 10.2 ���iv� ��' �,n� Ra t� t+� TD ��#� i+��. '��a�j$ct � i�� at�r pr�v��i�a� of this Sectiea�a� ���pl��r ���11 �li�rr+�r ��u��s, i� �ng,li��, a�l dr�����, t�c���I ��t� soflware, m�n�l�� ���t �s�lt�, i�asp�i��n ��u�ts �nd c��s��rt�on� c�f t� Ec��i�rne�t, which are identified in Seetion 10.1, Annex A or described in Annex B(the "Documen 'on"). Title to the Documentation and any other drawings or proprietary information provided to �uy+��r �ka��l �n�a� ^wi�ka ��p���� ��` its ����n�ict��rs, as aPplicable. With respect ta +�e �v�ur��t��r�n, ���plier ��a���' �ra�ts �n ��yer ( its successors to ownership �� i�� !�r��ec�) ��t��r-�e�c�lusive r�ya�t� �'re� li�trs� �v�i�h permits Buyer snd its successora �� �ss� , ��zb�eci ia ���fii�rz � � .3� t� ��e ��c% Documentation for the constructior►, �d �p�r�tiv�, ana�.a��rn+��t andl rr��ir��n��� c�� �e Project in any manner Buyer determinea br�� ��t �Fc�r �se �`+�r �� �#�er �r�j�t c�r p'�r��• In the event Buyer uses such Docur�,e�ta�i�n �an +��1x� �r�j�t� c�r �'o� ���r ��t��s s�'a�'��� or without Supplier's consent), Buyer st��l a.. . s�le �ssp�n�a�ili�y f�r su�� �� ��+� sha11 indemnify, defend and hold Suppii�c les� �o� �I c���a�, ���ges, la���� �� expenses (including reasonable attorneys' feea) resulting from or arising out of such use. Anx illustrations, catalogues, soflware, drawings and dimensions which are either �,"��� ��4���y�� ��� ��� ���,���� �� ���:��ay ��y ���i�o�� [�tta���a�tioo that n dential, ercielly- ���tsl�l�v�, ��u�r#�t��y, �ndi�r� �u�il�� �a��� ��fli�y �rs� i[�ive ��d f nanc l lnformAt n in ac an wi !�e �r��i�#�r�� �f'�"��.�� ������ ��� � �, ct�a�� ���a1�4�, 55�,��4, 2.110 en /or 2.1 , and ay �w^�t���d �r��� r�q��r°��1 �a���ic s���c� ��, 25 pt��vi�i� t�;� �u����er �� � �t�er�ri�� ��q�z�re� by ���er �nd� whi+e� r��t+� �� t�� ��tip�en� c�r �erv��s t�re f�s� ��a�vra�z��zar� ��u�p��� onl�° n�t to b� ��ied ±�p�� by B��uy+��r a� r.�,�t�i�in� ��y r�p��s���t�t��ts, w�rr�ti+�� or ir�c���iti�s. T�� �c�nezatat��r� �r�q • ��a� d���ve�d by '�u��p��+��' s�� �iso include any non-proprietary software for �,� ���,��, �������,�s, �����t��i� �� t�� Plant and such sdftware shall be in a form ��t c� ���-ccy�t�`i�u�r�d �d ��st�aac��� by Buyer as Buyer determines. 10.3 Pcoprietar�+ Documentation. Performance of this Agreement by Supplier may involve the use or furnishing of i?�,c��r�i�ti��a rav�ic� �aa��ti��r ��+nai� �� b� proprietary, subject to Secdon 10.2. At �e tir�� of fi���l�in� �� �st�c� prttp�'i�%"Y Documentation, Supplier will expressly �esi�n�� �y �ab�t� p�, ar cr��r 'w�°i���r� communicatian that such Documentatian is �ar+�pr��tsry. 1Bu��r �agr��, s�b��ct tt� +�cti- n 10.2, (a) to treat such Documentation as co.���d�nti�l ��� ta �s� a�l c�r� a�e�t t� div�lge such information to any third party other than for the operation, maintenance, and management of the Project attd in furtherance of its business associated witth the Project and pursuant to a confidentiality agreement entered into by such party substantially similar to the provisions hereof, (b) to restrict the use of such infortnation to matters relating to Supplier's performance of this Agreement �rr ��`�aart��x�� �i ���er'� business associated with the Project, and (c) to restrict ����s ta� ���h in�a�rrn�ti�r� t+� ��n�i�y���� r��` Buy�r �ncl i� �g��t� �v��s� access is necess� ��� i�n��em���i�t� �� ��� ,a���,��;��� �� ��� �,��r�nc� ��S�y��'� business associated with the Project and who ,���� �,� � ������ �y ��� ���m� c�f �is Section 10.3. Any such proprietary ��������,��i��n �c�t �°�������y r,�q�ire�. by Buyer in connection with its construction, operation or maintenance of �he Project shall not be rep�oduced witk►out Supplier's prior written consent, and al.l copies of such proprietary Documentation will be returned to Supplier upon request. The restrictions set forth in this Section shall not apply to any Documentation which (i) is contained in a printed pi�b�icai�an rv�ich w� z����e� t� i�e public by Supplier prior to the date +�� t��s A��er���t, �i�� i�� or '���m�, �ra�li+�[�r kr���vv� otherwise than through a wrongful �� ��' �uy��, it� �a�pl��e��, s�r a����, (�i�� is �� �� p��s�sitt� a��t�y�r� �i� �ar��l���e�, or ���r�ts p�i�� tc� �i�t �"�m ��ap��i�, +� 'ded tk�r�. �� �°���r c�r p�°�rn� pro�ra+��n� #�a� s�� h�v� ���t ��d ��� �e� t�� ira��rm��ic�� ��a� '�c�p��i�r, {i°v� �� ��arc��r�� �n ww�ratin� by S�a�pl��� f�r d���1���� �� ����r, i#� a�es�� €�r �m���y�e� t�a a i�airc� �r�y +�rr ��� �uy�a� b��;�arr��� ����;��#�� t� dis��v� �id��r aq��li�a�le 'L�..w e�r cc�ur� �r +�th�r juc��cial r�a�i��, �r�v�c���l t�a�t ��year ����1 a����fy '�up�lier �r�vrt��atl� of any such required disclosure and afford reasonable cooperation to Supplier in seekung to contest the ruling or in obtaining protective� treatment for the disclosed Documentation. This d u ent on any at c en the ay n in inFor atCon th�t ie confi ential, co ercially- g�n�[�iy�, ��[�r��r�, �n�il�� �����c power utility co titive en �nanc 1 intor ation in acco ance wlth ��� �,��������e�� �rf'1'��so� ���e�`����i C e, S tion 552.101, 552.1 , 552.110 and/or 552.133, �nd ay be �,�t�t fr�� ��� ���al�c d����oaure. 26 ARTICLE 11 WARRANTIES � 1,1 �t� li�r'� °���t�t. "��}��i�r �a���y +�+rr��rt��t� t� �uy�r t�a� �i�� W�rk ��� u�a��1 a�� s�bje�t t� tttunsf�r r�f titl� t� I3�y��' att�ti�r ff��t`�ie _� wi.l� �� �`� ��r� �i�r�� �r ���'��t� ir� t����, {�a} v�i�l �� �c� lrt�nn n���c���c�rr�i��� ��r det°`��� iia r����r�s�l�s �ad �+�r1t�r��ey��Yi�� ��� �il1 � ti°e� ���n �i� c��C��1� �;�t��t� �� �r��r� �r �rnis���can� i�� +�n�,i�����°���� �t���i �i�::�i�ry. $�� tl�i�r�t�i����t t�� r�i`�r�n+r.� t+� �"r��c�+���t �i��tr�� F�r�ctic;� f�nc� �e �,�������,�������� ��� ,��,�� , � �� ���} �r��� ��rr��`�rm to all requirements of this Agreement. �������ti�r, ��t �t:� �cx�� ����i, �;t�aEli ����c�s���a��� ������ir ca�•, �i ��� di���eti�t�, r��lm�+� �� par� c�ay us�t�i}�c�����yt ��i` �I�� ia����ip���cr�► r�l���l� ��������r� ��i`��i.iv� �t��°it�� !h� �'riir���y ih���a�t�r �����ic�cl c�rR, i�` ������li����l�, t:�l����ic�c� 1�`�rr°r�w�aty l�e�ri+�c# �s � r��rzlt c�� �aY���y d��i�aY, �°��t�ri�t�, ���� �rc�r��n�uc�s�i��, rc�vi�u�� vvl��� t���rt��i �� �,i�ppli��, i'�.t �ti��'� �r�rt c�r �a�rt� rr�;�����d � �`�i�����3 ta �s���li�r, ai ����pli�r':� �c�sl, E� ik�� ���: ����tcu�t�d �y '��}�pii�rk ,���y v+��rr,�r�t�r cl�i�ns �r ����u����� �a�ih �°+��pcc�i in ���a��ii�r's va�°rt��i:y ����•�it� �r �� ,�rt'�cl.e i7' €��rin� il�� �rir���y W�����ni� P�rin� �i•� if ���1�u��l���q �t�� L?�ti+��,��� ����i� i'�rri��i �e���a� �€�r c��i�z�s �v��� �•us�c�et k� €�t�� �r li�n� ���;�1 ��� �r��aci� ir� v�+�•iiir�� �?vi��c�u� �t�����a��a��r��� +����y� �t�t n� l�s�t� �la�n ihi��y ��3t1� d��°� ��Q�° il�� �x��r�ti�r� �t' �%� �'��i����ry ''�"�rarcty ��r�r�� a�� if ��pii�abl�, ��t��ried '+��r�ar��� 1'�rr��i. it��L���� ��°t� �►�� c��1�ri� � �v�s� �r��teci by �y r��ir �r re�al�+��n��� v��r� :�%�LI �u��c����� �uppii�r'� ��a�rer�y �r�� �k��11 l� ���•c�r��a�ly r����e;�i �i�t� ��� l'1�t �it� by �a�w�r�i��r. '�u��li�� �ht�il l�G�zr ��i �c��t� ��'�•�����ria�� ear r�p��r�ir��, t%� �f���:t�v� ��r�� c����1��I�y �u����i� �y �'r�����li�r� �� w��l �� t�� ��ip�i�� c;��t� c�T t�x� cla�`��ut�v� ��t��� ��y�� c��' �1��: r���€��r�c� �r ��p�i�c��:��� ��r�� [x��w��� t�� �i�� �it� ���i i�a� �1��� ��!` r���i� c�r r�;�lar��m�r�t �s i��siru����l ��y `�����ii�t°, Notwithstanding the foregoing, in the �v����. tl�at ��i������' ���� �°� ���k�����Z� ��'��� within a reasonable period of time to �a�'r��� w�r� ��r�ci��` l%i� �t����ti��, ��Y��'� ���' g�vi�� v+�m•iti��� �sc�ti�: � Supplier, shall l���r� ��5� ri��ti E�ui ����1 it��: e�l�t��,��tie�tt tc� �a�r�"�,r�n, �r h�v� ���r��r����.� �ay t�rird paMies� �i�� rot�t�c�y ���� i�� r�c�c�•�uc���li�r�aa���� 1�+"�a�•[�, I� se�c�a. er��aat, ��� ���1��t�:�i.�a#� costs of auc� r�rn�di�l vs+nr� b� ���y��� �i����l ��� t�c��{��u 1��+ '��r����r. ��.� W ra��,� P�r�o�, St�bj��� t� ���� l�;�t v��at+����c �1 ���� ���ti��t � 1,�, f�� v��r�r�t� :�i ��rtl� i�� '�+��iic�Yt I � . �l���l �����i�^ ��r � ���ric�� ������nui�� +��� ����iv���y �a��ci ��t��i���, twel�v� (1�) i�����t�� af��r it�� �����r��c,� i��l+� c�r ����t���� (1�� ���r��h�����G�� t��� �zt°���v�1 a�" t�a� ta�t ��a��r�t�rr ���� i�r ��� 1�"1��� '�i��, whi���v�r t�c:��r:� �ar�t (��� � rtr���r : '��r�iat +�r�'��.�"}. 'i'lx� ���°r,�r�t� ��r�t�ci r�it� ����a��� �r� ���rt� w��i+�i' i�€��� ���n r��a�ir��l. �r �°+u�l���c��� c���r���� il�� l�y°i���t��Ty 'l�"�►r�°t����� l'�ri�d �h�l� ��� ��x (�} �t��ntt� �`rarn t1�c: �a+t� c�t' r���ir c��# ���l�t�a�r���;wf� ca�° �r��ti1 �t�c. ����i�°�ati�s�� cat' tt�� ���°r����r��y �'�►�•����t�iy I'��°i��l, �rt�t�h�ve��� ��c���� I��iu�° glir� "l��tc�r�c1��� '►�lr�t•�•zi��� �'�r������`� {��•��vi�i��l, lt���v�vc�r, �1���� i�7 �� ev��ti ����1 tl��e �A.����z�t�;� W�u�•r���ty 1'�r�o�i ��t�nd �r�yc�4�r1 t�+�r�tyw(��t��° (�4) r���ari�Ci� �fi��er tf�� i�ra��a€iry �N'�r�°�t�t� ����i���i 1����n. 'C'#�� �xt�s��l� W€�•x•�r�iy '�er�csc� ���ti�� c�nly t�a ���•t:� c�r �r��a����a�i�t;� �at 1:h� ���ui����.�i�t �uvl�i�l� nr� r•+��aai�°ec� �ar �������c� �laari��� �1�� 1'ris�����y 'V4'��r������� 1'�r��aci �t��l n��t t�a ��i� c��h��� �'i� c�r �������rr�nt� c�� c��h�r i���°n� c�f i�'�t�����'���i. "�`I�t� �v�u���err� ���►c� �n� �kt��.kMy����►� ������tu r���y ��c�����i�� etii��3�^��ti�� tl��t � cunnde�t���, err�w�r��r�t��lyr s��:�(��v�� ��rr����^��la�r^v, �MY��1�� ����1►�i� p��°�r ���fiRy ���n����ili�� �na� ��r��c�sl %ni'ormNli��� i�� ���c�u�•���r�� �^Ith t��� ��rt�vi��try�� ��'�'�x�� i��n�e�°���rr����! �at��, ,'�+���ti�sr� ���. f�1�, 5��,1[�d, ��.� l� andJur 5:�2, i 33, ��si r�r�y k�� �r��4��.���i i"�°+����� ���t����r�,��� �tt����+� ��iR�l�es���,. 27 The rights of Buyer in respect of warranties set forth in clause (a) of Section 11.1 shall not be aubjeat to any of the limitations of timee set forth in this Section 11.2. � 1,3 ��.���s%m'�����. ������I�+��°$� w�r��1� clt3�:� ��t c�v�t° ����y �ei���t d�e �� �a) mt��i�.is� or ���a��ents ar ��s�g� ����ti��d i�� �t�y�rr �� �n �ae�i�it �a�` i�tz�er, (�) �.�;�i,�c�a�v �l �u��r, it� �rr��l��r��� c��° ��;�nt� c�r ca���:r th�rc� ��ics; ��) ��� c�f ���re �ar�� a��+�t� ���� �1���,c �up�1��d �y ��° c��s �I���fi c�� �«���ii�r vr ��a�ifi�+d i;� �u�a��li�r � ar� i�l�i+��� ����t%��'i��ii��n� �ti��h� �e�ia�� (�) in�iz�l�atx��� �i° a4�r�tti�� i�cc��si�����t �vit�� ��p�lie�•'� ���.���i��� ����ifi��ti��s �ttt��h�� 4�e��t�, �r {�� ��ris, �c���ari�� csr �tt��hrne�ai� vvl�iclA �� �ac�t �c�i�, �up�c�rte� �r �xp���l�y ��rov� ir� w��� �� ��ppl��r �sr �� �c�r� a� �u�al��r'� t�c�riai�sl sp�ci�c�ti�a�s �tt�ck�ed k�+��e�. �� p��ct��ar, �ti��pli�'� vu�a��y ���s ��t ��v�r an� c�e�`+��t� ��a� ��°� c�t��+�d h�� �►� t��� �a�u���uit�i��� ���t��ei�� �r ��ns�r�ak��� €�� �`�a�� �c�t �t� a�t��a�rs�� ��t�� t�� ��r�jcrut �°��i, f��z�tu,��i�tr� �r� �1�� �ri�, ��r ���t�a��.n��, ��vice �� ��r��i�� �f t��e ��t�ipm���� ��° ��y ���Yt �h�������` w�icl�, �� ��cY� ��se, � n�at �n �r�f"�m���y ���h "�u�apii�r's ��� ���° ����a��tra��Cc�r'� �����aal�� in:�iruuiic���;� ar t�e��in�ca� s��i�i�atia�s ar �vlai�� i� ��������� ���at ir� �c��r���r�c:� ��i� 1��°i�t��a�t �i���°i� Practices. ��.� �`+�-�f+�ct., ��, . �h��1d ��ty�� �a�.� a r�r�:rr�ua^1�r �l�im un��r t�t� a�a.f�r p�rc�v�c�et� �y ���i� A����n��t, �r�c� i� i� ��t�ar���i �%t th� e�tist� �v ��f�ct �a�+��r+��d b� ��� vva�r��ty� �u�y�r ���1� r�ir�tt�u�r�� ������l�e.�° #�� ��ta��l �n�� �c�c�r�te,� ���bl� �sts �nd ��cya���:��� ���" �����l�+�r ��r a��y v�r�arl� ��rr�caz°�� i� �f.iemptin� t� ���.edy �uc� c���n. i�c�u��� ��t ���i� f€�r c;�r����ciir��; tl�� ���r�s�i��t�ax� �f �� ���er� defect. 1 �,� �ir�� f�'r � �. � '�� '���� ��'i' ��(i►�'T�I �.� `I'�[�T� '"�`I�L� �. �"��G +�1'�L'�' `� i�TT��� �7� ��Tk�F"I�I�� A�'�]Li� LE '�'C7� �' �,���' A�+ID ���i��+�E� A�T� A� � �� ��i�Tp� i�+1 �I��1 (3� A�`�'' Q►`� �� 'I�V�.�. 1�1'�`�� , � � �S���l� �]►� ��Vi�'°�.��11�, Y��C1LiJ�]►�Tt� .�l"�`�' �L��•"` ■T � � � �pAN. .1� �� d3;��'VA+��l l�f'bL�3.f1� .#0. �� .��AJ�� wA' V3M � P��.T��LI���► �"�i�l�l[i�`�, ��. �'� �lT��..+'ll� "�1z '� T'K�` ��I� +4�� P��]� �►,� �� I�r��'CC�"�, "��Ni�" �� t� ]��'1���. ���`�"�.i�� I��+ �� A�Si� �+C�R �►.U'�lE�� 7.�1�� .�►t�' +�D'1�" � � �'E +�� �."Cl �'��'�,J �'[i� �"'�` �:1��' i) � � '�" ��1L��ATI�J� I� ���i'���T�+�N `VV ' �[ '�' . �Q��'�� �'�` �� �E}��`��[:�� C�►� ANY PART THEREOF. ARTICLB 12 TITLE AND RI5K OF LOSS 12.1 Transfer of Title. Title to each item of Equipment will pass from Supplier to Buyer, free and clear of any and a11 Liens, upon complete Generalor Set Deliveries for Thia doc��wti���� �s�t� �e�� s��t�as^1a���si� �I����l�� �a����^ �r��7��rir� �����►���ti�a� tl��� � contiden4i�1� c��rr��m���°���41�+.. eenritivc, �xr��ar^tci�r�� ���t�P�� ������ r���'�r �tl�it�t ��s�����i�lv� ��� ���r��i��' �nformpile�r� ��r �����,������ �+iith the pravi��c►��� t�t `�"���� ���v�r������t �'�r��, �r,#ir�r� !���.1 �y� 5���.I�A4, ��.� �4i �nd/ur S��.I;��, ���i ��� �� protectect irt��w� re����°��' ������� ��i�����r�r�. 28 each Engine Ha11 or upon Other Equipment Delivery, as the case ma.y be, and fu11 payment of that portion of the Contract Price due at such time. 12.2 Nc� Liens, `�`+� t�� ���t ���rm��an% h��+� ���n tn� � ���'���d �.�er ��is Agreement, �i�t� � �� Ec�t���rr��n� 1 ��.�� �� T�uy�r �� �rt�rr��c� u���i�r �e�tia� � �. � i°r� and clear of ar�y I,.u�n ��' �y ��r�� �r ��tiiy, �n�l�d�r�� ��� ��r�n �a�� ���t��y c��im�n� i�y, through or under Supplier or its Subconi�°a����`�a u��� L�►� T�����������'�� ���� �'���� �`l�' ��' any such Lien is unposed, Supplier sl��t� t'���t�r�� i€� ����� ����� �i� ���`�`"����'�`" `����� �ection 16.3. 12.3 Risk of Loss. Supplier sli�si� ��v� �i��l r�s������i��lity. for. Che attre, custody, control and risk of loss for each item a�"����i�s���ni tl�r����� #h� rele�+ant date of complete Generator Set Delivery for eaah �ngine 1��ll �t�cl tt����a���� tl�e xelevdnt ciate of Other Equipment Delivery, ARTICLE 13 TERMINATION 13. I �&v��� ���1'l��i;�t��4 t��.'����i��a. �t���li��a �1���C! b� i� de���l�, �er���d+cr up�r� the occurrenc:e ���`����y t���� c�l`tl�� I���l�,vvii�� ���t��^�, vv����� ���1! �� �r+�ats a����`��It (����i ar� "I �v�:��1 � i"_�`���li�r° ��c�ii«a��"� i i` rac�t �:��a•�*€� vai't%�r� !'��art��n (1�� d��� �`p�+�w'sng ���i°v�� �ca �u����i�� ca�' a�,ca�p�� c�i �ucl� ��v��a� �'r��rn ���y�;ra ���r, if c���b�� c�i` k���r�� ��t�d buE n�� �a+it�ii,t ���h f+�t���e:t� ���j d�y per�r��i, i� �t��p�i�r ����� �at ������������ t�� ��t��� wit��in �u�ia ��i�+� �� ���s r��� t��r�a�i�e° d�li����i�y ��ersr��e ��c� p���ri+�� tc� �3uy�� writ��i�� ��c�s �"�ut�e� (��� a��.y ���i�c� a ���n in �ur�; v�l�i�l� i� ��t����+�t��°�° in i�u���° ���ac� ������i�z• �i�r�� v�i�i�n t�� ��.� ��r��ad s�t �+�� in �t��h �I�n� ��r'+d�ci tl��t ��c� c�� lt�� �rr����s ci�ri���� i� e�ti � 13�1.�,� ��c��t� i3.�.�, �r�ii��� ��,�4q �ar ��.�ti�a�� 13.I.� 1�+��c�r�v �4��11 %+� �a 3�v���t �af a�applaier ���aral� ���za �ts c��ur���e. 13.1.1 Unauthorized Assiunment. Supplier shall have assigned or transferred this Agreement or any right or interest herein except as expressly permitted by this Agreement or agreed to b.y Buyer; � �.1.�. ��c �i�� I�����n���t s� 1'�rlr�r���r��� �3t���t�° '�a Ii�r �c��it. `1`�� ���u�r ��[` i�� "��.pplia°� P��m�� � �'�r��rm��� ��� ��av�vv� i�� ��i��i��t�����s u�a�der t[�� �S��p�►1i��° t'�����at & ��r�a��an� �+���i, +��` ihe �����i�r Pay�n��at � P�r�°c�r����n�� k�ca�tr� ����c:� �� �� i�� f�[i ���°c� ����i ��°f�� �'�ar � ��r�ti�� r�c���r�d ran�e� i��i� �.g��������i�, �rr �u���li�r ����st ���a� !� ��'���t�a� ��° indirectly own Supplier; � 3, l .� �'I�ris � � It. ����tier �1��� ��'� � ��d i� �� m�ri�� r�s��t ��« �1� it� r�������att���n� ��r w�������t��� ia� tl�i� ,t��;��+c��Y�c;��t �r c��t���i�� ii� ��� ��rA��x��a.����e �� �ny �at�ri�� r�����e�t uxa��r ���y �r��+i�i��ti �i' �l�i� ,��;��c'��►�nt, c��� ti�c �u�pl�e�� �1���1 ��v� ��tl�ti t�a �����+� +�,�) C��r����tt��• ��� i���i��ri�,� 1���• �:a��i C��ir�� H€��! �� t��e ����r I�;q��i��r��i�i ���iv�ri�� �y� '�"It�� +��t�N��r�:�x� �n€i r��ti� �if��:���r���tt� l�a�r+�� �it�y �c�xwi�i�r �nfcE�Fw���#ion thxt. I� ��nf�d+�aaNi�l, ��i����a�*r�isaily- ��������w�# ��r+���i�l��°y� s��+�it�r� ��ul�[� pc���r w�tAi�l� +�c����l�it�+� �»s� (inwnc�wM i���'ir�r��t%�t i�� �arc��tl���e� wlth t��� ��r���ai�lr�r�� ��f "1����:� [�cs�+�rnam���� I��e, ��+��it��i ���.1 �#�, °���,�[I4, SSx.I 10 �n��lc�r �5�,�3�� ����� r���y 1�� ��r+�is��l�,�a� I"�°rs�r� �°�s���i��t� �w���r�t� �IR�c���a��. 29 the respective deadlines set forth for such Project Milestones in Ex ibi 1, or (b) subject to Section 5.3.5, Fina1 Completion and Final Compl��tion Deadline Date; 13.1.4 P�y�nent Default. Supplier shall have fai�led to pay aiiy invoiced amount payable to Buyer when due and which is not in dispute in accordance with this Agreement and such failure continues for ten (10) days; or 1�.�,5� i3� t� , AA�;� ����e�di��, sk�� �v� � i�as�aiut�c� �����t �aa�p1�� ��Cir�g t�► a�j�:d��te ����li�r � a b �t �r ��i�r+���, ��' ����1��� �hal� ���r+e rt��i� a ��n�a� ����ro��# �+�� th� k����ft� �� �ts c���tc�rs�, �r �. ����'�:r �t�t h�ve b�� �p���rt�ed a� �a��nt �f �h� in��l�ue�c� �f ��agp��ar, crr ����S�ir�rr ���� h�v� ��esd a ���i�i�� ��kzn,� �a �k� �v�t��e �i any other law relating to banYcruptcy, insolvency, reo� i�.�t�e�, wa�r�� +�p ��' �nt��s�ts�� �ar readjustment of debts and, in the case of any s�+�� pr� �rn� i��t��d `t�si ����i��r '�au'� ��� by Supplier), such proceeding shall not hav� n dx�is�et� �t�Fn ca�e l��an�r�d tru'�t�r � 1�[i� days of such filing. 13.2 �� ��'� �+���i��__A���t �����ier, �"ii�.�ut �irni����s tc� Buyer's rights to Liquidated T3�a.��s ���r t1�s .A�e��n� or �n��r i�l� � I`rf ���ent of Supplier Default shall h�,�re �ccur�ed �d �e cant��u`rn�;, ��y�r s��ll ����+� �ay or all af the followi�g rights and remedies (in �����t� tc� �d �i��r�t gr�j�dac� t� �� other right and remedy that may be available to �u��r �t l�vu' �r �n ec��i�,'� �ad �up�r���` shall have the following obligations: 13.2.1 �u��r ���' tk�r ' ta t�ais A. +���r�t iri �+���e or in ���t b� �#e�ivery �f a notice of termination i� Su�ap��€�r, a�d, ir� ��� c�� �� ��nai��v�, Buyer s�1 be a����l�� �c� €�a equitable adjustment t� thu� A�r����nt mm+�� �� �ccc�rd�c� �i� �k�� priacipi�s s�� farth � Ar���� �and Exhibit 13; i�.�.2 Bu�+er ��y r�+q���t �a,t �uppli�r w�tk����vv �arn �ie Fl�.nt Site, assign to Buyer such c�i' ����1i��r'� st�bco�t�ac� �s l�u��r �;� re����t, �an,d a�.pp�i�r �r��rr� such materials, equipment, x�1� ,�c� i€��tr+�m�aat� �s�V b�� �nd �rt�r +���s �� ���e �t�r��s generated by, Supplier; and �3.�,3 �f 8��� ele�1� tt� #��in�t�: Y� A��m+��t pu�u�t t�a �tms Section, �up�l�+�r s�il. ��t � ��ttitl�€� �r r�f�n �r ���v� a�� ���nt� �� a� �ay��il� her��nder except f�� a�a �a�ur�� �ra�� tc� �u��ii�r'� +���u��ni�d �+d �r���o��b�� casts af a�� W�r� of which ��yer �as t��� �s��ssi+�n ar x��e��re�, �.� '�u��i��r ��`r�ll l�e ti��al� t� ����r fcar a�1 documented �n� �an���� �i���� ct��s in ����ss �#` �� ��p�d �b���nc� �f �he �r��� Price incurred by �3u��r �� a�it�in���, carnp��ti� r�r &�r� �vr ��ac�a s�ib�t�t�t� a�d �u�as�ti�ly �imilar Work, ���,���� �x ���r�� s1���1 �� ,�mt�+�c�i�ll� reasonable efforts to mitigate such costs and +�_ �� de��i��� i�a �i� ��t��� � �.�. hie ocu ent and sny s ch ente t to ay n in for ation t at fa coa entlal, co ercial{y- ��������� ���r�����rk �c��da�� p�p#l� �+���� u li titive sn 6nanci�l infor �tion in accor ence with ��� ��-��ri����.� ���1`���� ��r���n���� �ad�, tion SS2.1 1, .1 , 552.110 and/or 552.133, an sy be p���� �r�� �+���I �ub��c d6��1�� 30 13.3 Ev�n�� o� ��au�t �v ]3�y��°. i3����r ���i '� ii� de�'�u�t 1�r�uun��r u�a� �e c��urr���� ��` an� ��n� �f ��� f�il+�win� erren�, v�^h�i�la ��al� b� ev+��nitts ��' defaa�i� (��� � ���°v�rnt n�f ��rr�� �f��alt"� if �� �uar+e�, wit " f�r�ct��n �� 4} da�� ��lit�v�ire�; d��i��y tc� �uy�r of � n�1:a�e �� ��1� ��r�nt �r� �u�r�r, ��, ii � le c�£ h�i�g ��ed �u� n�a# �i� ��ch faurt�� (i�k� ti�j� pez���p �f �t�uy�r h�s ��t �me���.��d t�� ��� with� �uck� �ri+�� and does not thereafter diligently pursu� �+� �r�v�� k.� ��ppl��r wii�� s�� �`���� �14� ti�y �r��a� a p�� t�a cur�. w�i��� is �at����t�r� ������i�� �� �r����' c�re� �r�t�n �� �i�n� ��ri+�d ��� fi�� i� sra��t �a��n, ��..�'i��t� �at ��h of th� �v���� ���r�b� i� . �ti�n � � , 3,1, ��i+a� i �. � .�� c��r �+�L��n I � � S, }�elaw ���1 �e an �v��t �f H�u�'�� ���'��1t upan its occurrence:: ��, L� a������,��� �����. Buyer sha,ll have assigned or ttansferred this Agreement or �ar�� ri�hi �r �a�t�r+�s� �+���r� �a�c�pt as expressly permitted by this Agreement or as agreed to by Sup�p�i�ar i� wri���, 13.3.2 [not used]; �3,�,�, � �� f���i, Buyer sha11 have failed to pay any invoiced amount payable t� �u��ii�r �+1n�n� r�r�� �nd'�r�i�h is nat in diapute in accordance with this Agreement and such failu� �t���i�u�� fc�r �� �l�l} d�ys; 13.3.4 Material Defaul� Buyer shall have breached in any material respect any of its representationa or warranties in this Agreemen.t or Huyer shall have defaulted in it� performance in any material respect under any prc�vision of this Agreement; or 13.3.5 Bat�k�'uptcy. A proceedin� :�Il€��! ���w�� ia���� ����t�i�tt� �g�si���� i�����r se�lc�r�� t�� ��%�u��c��t� ��M��r �� � 1�����a�t �r ����;�I�����, �r I��;y�[� �i�t�li h���� r��ci� � �;��a�nx'�1 ��i��trrn���k� �+��• ii�� %����� ��' ii� �r��ii�r�, ��y � �•c����v�r �t��l� k��v+� b��n ���ac���t� c�Y� �c��uixt ��' �1�� i���a��+���c� �i` F3uy�r, �� �u�y�r ���.1 �v� �ii�d � ���ti�:a��� ���i�,� tc� t�� ��l'v�unia�e c��' �n� r��kae�° ��av�r r�l�iir�� ��� � ;��t�y� i�calr����, ��r��u�i�i�����, w��c1i��� up �� c��n��s€ti�rn �r re������.�-s�r�t +�i cic��i� ��rsr� �n �� c�e �� ��y s�c� pr�a+c���i��� i�n�t�tt���$�i �,�a����� ���r�r (but not �y Bu�r��� s���► �rc�� i��� �h�all ��� �a�r� b��� +��s��s�d vw�ih��a on� �a��r��sd �r�v�n�r � � ��) da�� c�f` :���� �i�u�. I� a4 ��u li�� I���n�d��. ���v�e�# c�� ��.��r I������� �I��� ivar�� a�c��s �d 1� �n�nuing, �u�p4i�r �1���1 ha�+� t�� �gh�, i�t ��i�i�n tc� a�y� �ights a�d z��edi�� tY��t �ne�+ b� �va�il��l� t� �"�����li�� ��i lt�w �ar i�a ����ty�, t� p��rn�t�y t��a�ate t�i� �gre��+��tt by d�liv�ry �� � r�c�lic� r�l` tc���i�u�iic�n #a ����rM T� �u�p�ie� �i��ts t� ter�ai�ate this A��rr���t pr�r�t�ar�t t� ��Si� ��u��a�r�, ��yer ��ia�� �� �i ��.�a���e�r v�ritk�a�a �"hirt�+ (��� ���s �i�r z��e��rt �af ��g�ii�' � �rr�i�� ���f�r, �� �a.+��� c������ as �c��l�v�°�: �a� ��,� �,�������� �� �� s�:����s to Supplier of items of Work already provided to Buyer pr�rs��1t tc� +�i�� A�g�ea��t (�xcl�din� items that have been previouslq paid for); '��#� ��y������ ��� ��� ��E��h�s��� t����ta m�y ���a��in dn��rt��iiion that ia ��t�i�d�n��t, ��o�rrr�e��ci��1y� s��a�£4�u�, ��p�[���y, ���%r p�b�ic � �r �t�16i� c���tiiiv� �n� iinancial [�fi�a���tiica� is� ��+r� ���� �i �F't� ���i��o�� a��l'���� �:�nv�r����t ���6�y �cii�m ���.101, 5��.i�4' S52.110 �ndi�� ��2a13�, ��� ��y 1�� pru��i�t� f�ro�e ���ui�d �r�b�f� e�%����� . � 31 ��y� '�`}�� ���n�t�#,�d costs and expenses actually incurred by Supplier in settling Suppli��r's t�`�is���d +�t��rs �� subcontracts hereunder and the protection of property in which Buyer k��s ar r�n�a� h��e ���'���� (�) The documented costs and expenses of other Work performed pursuant to this Agreement prior to the effective date of termilnation; (d) 'The documented costs and expenses of demobilization, equipment storage, transportatioa, and handling, includin,g reasonabi�� overhead; and �e� �1����1�i l���y�a� i��il '�� �►���i��a� I�+��l���ai+��l %c��t��l€:Fti�n �ri�t�in �r��-I�u�r�dr�� iw��t� �l �i?� ��ay� t�t t�a�� uc��������ir��; ��°Q,j�c�� 1+�i1�si�at�� fsa�r r�a�sa�a� �i��� t��t� ��������r'� �l���� tar I�����h r��'i�� �bli��tita��� �et����a�c��r �r �n ��r�w�� ofF��;e M�j�ur�, i�� �l�li���i+��� t� �r��.i�act t1�� ����ri'�rr�a����e �'��t� ���II %� �i��t�t�c� �rv�irr��, ��a���l���• �1���� h�v� �+� li��iil���t ��tr P��ti������� Li�uidat+�% � �.��s� ��c� �r�ye�r ��aa�l p�y �t����l�e�� �� �ic�ui�ia�t�� ����e� ti�� �°��nixiin� �. m�l�tr�n�� ��e�r ��t� N����sta�n� P��a�n� ����ul� ��r����1x �a�y��cr�� �h��l ta�; ��A�a�l��r's ���1� ��c� ���l�siv� re�e+��' ia� �c�nn���i�n wi°t� se��'i �'ai�ur+� of Buyer); provided, that 5upplier shall use commercially reasonable efforts to mitigate such costs and damages described in this Section 13.4. '�?'it��a�t pr+���a�c� t� it� ri�l�t � t�r�in�� tl��� �r�;�°c������ �n ��c�r����a�zc� ��k% t��i� ��t�t��� i;�.�, ��p�li�r m�� �������c� �r�`�r�r�,�ax�� +�� �i� vv+�r%, �t���+���rt� wi�l�i�+a��it�� s��aipm�nt �3i" :r��� `����i����ni� w'�i��� i��� r��i %�r� ��i��. �u� :��ch ����, !h� a��ii�.i+�zj�l ������t�����t�t �r�c� r��n���ri� �c��i� �ci �x��.r�s�� i��.��r��� b� �ta�pi��r ci+�� t� suu� s��s���an�irs�� ������ � r�ii�at���rs�c� k�� �3t���r {��° s�ti�f���ie�ry �e�t�rity f+�r �x�c:�� rei�i�ur�vx��nt �a�li��t���� �h�t� t�� �t�r��is���i) �ari€�r t� �nsd as � u����tit�t�t� i"�a�r �u���i��a��°� r�������ati�rrr +�fi ��s w�a�k, �t�ci t�+� ����v�a�y Sviza�i��l� ����li 1�� �c�j«�t��l ��� ��c:�ect ti�ic c����� in �a����c�t•����rs�e ��us�ci ��y ����� �tt��c���icar� as �a��` this ����c��n�e���t"� �::f��ng� i.�r+��z° ��r�v�i�x�n� l�c��1��w�n� ii�� ci�i� �a�' ��►�'��i�r'� �����ir��wtit���, i������° rnay ���n����t� il�� '�`��•� �t��l ���r �e�rk c����l�t��i i�y ��+y�r ���al1 [a� �a��1t:d� t��� ���t��lier'� w��r����Ci�;� �v�n ��n��r t1i�s Agreement. 1�R.iI�i�E �� ����E �A�i��E �4.� ��fi���c��. i�vr � s c��` �1��� A�r���n�t�t, �,1�� ti�r�� "�vv�nt � ' �°�� � '��" s�x�l �n���� ��� ��wa�+� c�� �a��t�r�r�t�c�� ��"�clis�� ���� ��aitil�+ c�f €� i���•fiy^ � }�+e�f����a nts �b�i�al��r�s ����l�r t)a�� ,t��r������t, ►�+��ic�a c���� �r ��,ur�°+���� �� ��y����i th� r+r:����r��bl� ���rri� r�f i�i� 1'�r�y a�f`f�c��� ���� ��i c��aa. t� �z� �c�t ��r t��rai��ic�t� �si` �1�+� ��r�� ai�e�t��k ���c� whi�� ca�l� ��t %ve ���n rr��sv���y ����e�� ��° *�v���'�4 �'y i�� �x�r�c��� �f r�����a�ial+� dilig��+�, i��c�udit�,� t�e �"�r�l+�t�i�� (�r�vi�c� t��. �I� ��" �h+� lt�r�s�;c���� �l���e���� �E �hi� ���aai�i+�n �ti���.): �� �� �c��i c�r t��c �au��i� ��������� ��t�res�� i�siic�� �� ��nf���te�� �i, '1'�N�� tl��raa�r�;��i ���r1 w��sy �i1�ue��r��ni� t����%�� ���� �nd�i�{�r i��'��s���c�i��� �,[��� i� +��d��m��l�i� ��a���rr����ly,. ��sn�ili��„ ��'��ri�4�r�, �ntlJ��r ��ui��i+� ��� ��iiltp�r �+��rr��t[4�v� �t��� �ra���l�l i�r�as���tla� 6� ���r��rs� �6tf�w ���� �r�r�i�Nu��� +�i'�`�x�� ��vmk°�a��a�! �' �� �;��l��tr� ���.I��„ ,����. i#��. ���.1 �fl mrsdit��° ��5�,���; ��� �a� i� �rr�k��k�� �`�ur�� w��ui�°�� ya��t���� ����1'��r�tti � facilities; trade or economic �act�a�; �ala�tag+�, a�t� €�f w�r (t���c1a�'�d �r u�c���a�c�}� blocicade; embargo; insurrecti���; l�rrs�ii��s; c�viT ��G; �ic�is; ��ai�� a�r �t�i��,a act���, terrorist activity or threats of ik�r�r�si �#ir�ii�� r�thac�, ��r th� �ir�uu�m�t��s�, �z�sid b� considered a precursor to actual terrorigt activity; ba�di°k�+� ��in� _ �+ a���rs� vv� er conditions not reasonably anticipated by the Parties ���� �� '+������ p��'����� �� any site at which the work is being performed, however, shall not be included); adverse weather conditions on the high seas; tsunamis; earthquakes; fires; floods; explosion; accidents; national or industry-wide riots, strikes, work stoppages, boycotts, walkouts or other labor disturbances; failures in common carrier services or utitity services; or any causes, whether or not of the same class or kind as those specifically named above. An "Event of Force Ma'eure" sha11 not in asay case include (a) a Party's iinancial inabili�ty to perform under this Agreement, or (b) sabotage by any employee, contractor, subcontractor or supplier of the Party claiming the Force Majeure Event. 14.2 ������ t� �����rmrl)t� tc� au� � �t �� c�r�� . •��r�. �e���r P�� �h�.i� be deemed in breach of this Agreement ����s� ��'�a� f�%�u� �� d���Y ���P����'�1� its obligations under or pursusnt to this ,A��ee�a�tx� � i�e �xi+�nt �t�ch ��.ilur+� c�r c���y" xa due to one or more Events of Force i�,+�aj�t�re +�� ihe�r ��`�t� +�i� �y �;Y ������"�� thereof, and the periods allowed for the p�����a�nc� �;y �e ��ti�s c�f �u��a c�i�li��t�ar�s shall be extended for so long as such eve�°t� a� e��`e�i� c�n�.ti��. '��p��i�� s���l ��n�i�� to an adjustmerrt to the Contract Price, % I�r� e�ctent '�����i�:� inc�r� �ddit��a� c�s� ,s.�n� expenses derived from an Event of �o�� �aj��� T�is A�ar�m�nt sh�[i b� ���d� �r � Change Order shall be issued ss t�� t� �`�f�� �� �������� ���+�'��i��. Notwithstanding the foregoing, oither P�y ��y t�r�in�� thi� � me��k i£ For'� Majeure delays a Party's performance fii�ar �: �er�+�d �ater ��n �ix (�� m�r�tb� ��� t�� aggregate). Any such termination shall be t�eated in the same manner as a termination for Event of Buyer Default in accordance with this Agreement. 14.3 A Party af�ected by an Event of Force Majeure shall comply with the following: 14.3.1 the affected Party shall promptly give the other Party written notice estimating the evenYs expected duration and probable impact on the performance of such Party's obligations hereunder, and such affected Party shall continue to furnish timely regular reports with respect thereto during the continuation of the event; 14.3.2 the suspension of per%rmance shall be of no greater scope and of no longer duration than is reasonably required by the Event of Force Majeure; and 14.3.3 the affected Party sha11 exercise all reasonable efforts to mitigate or limit damages to the other Party, prornpdy taking appropriate and sufficient wrrective action to resume performance of its abligations affected by such Event of Force Majeure. T ia ocu eot �n �ny � ch en the oy contain infor atlon t at is n en ' 1, e y- n�ttive, r , an or ublic wer utility co etitive an fin nciel ` fo a' in acco s wi t e vig ns olTe � overa ent Co tion 552.101, 5.1 4, 55 .11 � d/or .1 , s sy tect f r uir u Ifc I: u 33 14.4 Each Party shall continue to perform its other obligations hereunder not affected by such Event of Force Majeure. ARTICLE 15 INSURANCE 15.1 lnsurance to be Provided by the Parties. Supplier and Buyer shall each obtain and mainta.in the insurance as specified in Exhibit 6. ARTICLE 16 INDEMNIFICATION 16.1 General Indemnitv. SUPPLIER, ON BEHALF OF ITSELF, ITS SUCCESSORS AND ASSIGNS, AGREES TO THE EXTENT OF ITS RESPONSIBILITY TO DEFEND, INDEM1vIFY AND IiOLD HARMLESS BUYER AGAINST ANY AND ALL LIABILITY TO OR CLAIMS OF THIRD PARTIE5 (TOGETHER WITH ALL REASONABLE LEGAL AND INVESTIGATIVE COSTS RELATING THERETO) FOR PHYSICAL INJURY TO OR DEATH OF ANY PERSON(S) AND FOR LOSS OF OR DAMAGE TO ANY TANGIBLE PROPERTY OCCURRING IN CONNECTION WITH THE PERFORMANCE OF OBLIGATIONS OR THE EXERCISE OF RIGHTS HEREUNDER, TO THE EXTENT SUCH INJURY OR DEATH OR LOSS OF OR DAMAGE TO PROPERTY RESULTS FROM THE NEGLIGENT OR WRONGFUL ACTS OF THE INDEMNIFYING PARTY, ITS AGENTS, EMPLOYEES OR CONTRACTORS. NOTWITHSTANDING THE FOREGOING, SUPPLIER SHALL NOT BE REQUIRED TO INDEMNIFY BUYER FOR BUYER'S OWN NEGLIGENCE OR INTENTIONALLY WRONGFUL ACTS. 16.2 Patent Indemnity. Supplier agrees to indemmify, defend and save Buyer harniless from and against any and all claims whatsoever arising from or in any manner related to an infringement of patents or the improper use of other proprietary or other intellectual property rights which may occur in connection with Supplier's or any Subcontractor's perfoxmance of the work pursuant to this Agreement, unless such infringement or improper use is at the direction of Buyer. Supplier shall have sole authority for the control of the defense of any and all such claims and any suits brought thereon, and Buyer shall render such assistance as Supplier may reasonably require in connection therewith; provided that in any suit brought an any such claim, Buyer shall This d ument aad any ittach en t to may con In infor ation that le con dential, co erclolly- aenaitive, � ricta , end/or public wer utlli co tltive and nanclal Infor �tion in Acco n wi the p vie ns of Texps overn eat C e, tion 559;.101, 552.1 , 552.110 and/or 552.1 , and py be pro d fro uir public di 1 ure. 34 ����r� t�a� �x���t tc� b� r��r�s���i�d l��r �tx�scl e��' it� ��m ��+�i�� �d �� a�s �wn +���r�. St����d �a�y �r.tc� �L�i��� �n�t�r��t1�� i���p�ir c�����l�i��� +�� t�e i'rr,j�t �a� c�aaai�nr��d c��a��������s +�f ilt� P���� l�y L��ye� t1��n ���p���ar s��ti, �t it� awia �a�p��� ���a�ly pr�,�ur� ��� ��y��� ti�� �i�,h�, i�a c�a3�iin�a� i�� �rc���� ��r�� ��r ��a�►t i+� m�t�ri�ly i�np���r t��e ����+�t�l� ���r ���r���l�tic��� c►.� �i�e �'r�a��ci �n+�t�r th�e zi.��t tn �n�ti�u� apee�ti�;� a�t�� 1'lar��:. 1�,� Lk+� Tnt�e��itj�, ����lier si�all �i� pi����ptly, i�uk iia a�c� �v���t �����' tl��j ix�t+�c�� (15� �iu�i���s ��y�, ���` ��r �li�i��r�+�„ ��c� ������,���e �i` r�+�ar�, v�• p��t � ��nr� ���i���i, ��� �u��� �t�i�rr �r T�i�� �'t�r ���e��, �n�l,�r��.t�, �x���lie� �ar �tl��r �1��°��� w�i�:l�, i#" ta��a�i�, �ni�,�x� 1�� �� i��c��7�� a�i�x� u��� it�� �'l�r�� �it� �r tl�� �'��nt �r��.t�c� i�y �����l��r ar ��� �� i[� �u�a��n�r��;t�s�:� ��r ���pt+����, �nr� �ii� ��t���n��i�y �r�t� �arrat�i �3��+�r �"��rn ���ad ���in�i: �tl ;����� ��aizt�� c�r �.i���� th�t �r�e �ca� ��id c��" �i��l�r�e�i. Nc�l.i�i��� i►� �1�i� ���d.i+�r� ���il la� �c�n�,t�u��r� �� i`rt��ita�Mc��� �n c�a• �a���� �r� �����a�i�r c�t`�a�� ��` its �•��I�t� �c� cn�tur���r the Plant Site or the Plant as security for work ���:r�+������ ��Y ��������' ��' �+��° ���Y ���'�'������ owed to it by Buyer hereunder. �&.� t��e. �� �y � �n#a��i i� i�c��na��:�ica�n� �i�r�r�d�� (t�e <���a�1���1��i�c�3 �'t�rt "} a�atc����� tc� �e��� i�ac�c�e��i����i���a �d�r �h�s ArLic�e �rc�� #�C� �`���c 1'€�ty �t%� "��ac�����il �n : l�art �') r�nit�� ��p��t t�a �ny �i:��an c�x �1;��rr� tb� �nde�ifi��. i'a�ty �l��.li �;��� fih� ������n�i��is�� P��y ����ir� ��f �uch ���raa c��r �t��ii��. u��n �°i� rc�pt of ��tuul i�c�wl�tl�� �� u�i+�����tr�t� �� ��� i:s�c��r����iti�c� ��rty �f a�ty pc�ss��r1� �la�rr� �r �t�' �h� ����ua��n�����a�t �n� s��cl� u��ir�� �r ��tia��; ra� cl� �t�r�v�v��, �at ��� ��t��m��iy �ah�i,��iic��i� €��' ��� Ind������'�i��g l��rty �t���l n�at l�c ��`F`��#� u��� aa�d t� t�e ��i�z�t su�i� f`��1��°� t� ��v� ���rtis� �sr�j����i��� tt�i+� ]����rn���l�i�a� ��. '�'ka� I�derr��iFyin� ���` ��li l���r+� ii�� r��ht tc� ���u��� i��� ������� �� ��y ���°�!� �l�r� rar a�tir�n °��� �ca�sel ��si�n��d l�� tl�c i�t���nr�iF�in� I'���� ��n� r������a�1� ��ii:����ta� t,n fi,�� I�a��r�a�ifi� ��url.y; �v��e+�l, ����r�v�v�r� t��t �� tl��. ��t�r�ci��t� it� �n�+ ����;� �e.ti��� ��l�d� �iath �� ���e�ni��� �'�.y �a��1 �1�� �r���mraityi�a� �'��•t�, ��a� ��� tizcl��n����� 1'��ty �1aai� h�v� �a�an��y ��nc��d�d tt��►3c t��rc� im�ay �� ����I r��i`��s�� �v,�i��t�l� tcr i� r�l�i+��� �r� d��f��nt fr+��n ar �.d+�iti�r�i t� ���s� �v�il�:�l� �c� �i�� 1����x����iiyi�t� i'€�°I,y, tl�� Ir������ Pa�ty �l��l� ��r�� �e ri��t t� s�t�� at� �c�t����l t� ���e� su�� 1e�� ���ens�� �ua� t;�� s���r�►ris� ��ii�ip��.�, at �t� �v�r�a expense. ��;i� �� �,� ��, ����,� ��,� �,�ar its directors, officers, employees, agents, ,�f�iii�#�� ���° rc�a������t�tiv��, ��+��' ��' i�����n��nt contractor engagetl by it in connection �n+�tl� il�� ��rtr��°ir������ �al't�is 1��r���n�iti�, shmkl b� d+��� � em�pl�y+�� +�f i�� a��s�r �art.�+. i�u��;r ;����t� ��� 1�r�n� �a�ny �t�x� ���i��t tk�� 5������i�� �r �ts ' t�r�, �r�f��c;r�, �ili�t.��, �����t:�, ���pr��ent���v��} �����pl��+��� c�� i�i�i+�����€���°►� ��� ��cs ��� �°�sp�t ��a �� �i�bit�t� f���� ��������;��s�tic��� z�t�ci�r �n� ����t� c��• ���c��1 Wc���C�r�s +�r�m���a���za Act (�r �ir�ii� lavv� c�r ���c��r���7:� ir� tl�+� a���[i����1� j��°���i�t�ca���, i����din�, �ut n�t �i�it�d t�, `�t'c�rl��r's ('�����a�������ar� �nc�ic�� ��1���1�y�����; ii�t��l`r.ti� c�r ��mitar �la�z�� c�f �m���a�e��. '1"�i� a���e�������t �n�! �s��� �i�r��d1�f������� llrcrett� r�t�� r�t���ls�i� i��t�r���lon that i� contiden�i�i, ���n�a�r�i�tty� �����itiv�, �s����r1�C���, ����1�►�°'�ul�lic power �Iil[l� ���K����#tiv� ��� faancial intorm�tic�� �� �e������ce �Ith �t��. ���t�vi��c�r�,� c��"�''�;��� �;�av��°��r���rri Codo, !����it��j ����1i�1, ��1�� 552.110 sad/or 5��.1��� ���1 it��� �e ��+°a�it����r�� E'��rrn� r^+��i��i� �a��hl'�� eK��loaure. 35 ARTICLE 17 COMPLTANC� WITH GAWS AND �STAND.ARDS �s1ND CODES 17.1 General. Supplier sha11 �� �� t�m�� c�a�.��y, €�1 ��al� �s�uu�"� t��t '�� Equipment at the time of Delivery and '���viu�� �l �1�� k��e r►� ���f���s��t�c� ���pt� an �lr material respects, with this Agreement, �l �.�v�tt� arad �'i������i C,��ct�i+� P�#�c��, �u��i wit�� the standards of professional care, skill, dili��«�c� e���,� ����et���:� r����n�i�y �r������� �Y leading engineers and construction finns �+r�t�z rr������ �� ��rr�il�' +�'ta��; r��. ������3 however, that Supplier's scope of Serviee� ����i P.���u��a�+���i �r� s���i�ic�11� �i���d i� Annexes A, and B. To the extent any Gov�t����+���t�l L.Tztrt s�r titave�°a,�t�mct���i A�p��taval, requires additional work or changes tn Annexes A or B, the Parties shall negotiate in good faith an adjustment to the Contract Price, Equipment Delivery date, PerFormance Guarantees, and any other equitable adjustment to the Agreement. The Parties agree that the standards and codes applicable to the de�i��a ��1�31�a�• �r���tr���t�w�� e�f"tl�� T��t�i��n����i ��•� as set forth in Annex B. Notwithstanding ��I.hrn� �s� ���� ���1�'�►r�, wl��r�v�r ir� �h�� Agreement or Appendix the Supplier r����� �. ►`�prr���nt��i���, c>�r la�� ���y �k�li���icr�� tcr ensure, that the Equipment will be in ����1a�i��� °wii:� �a�z� lt�r�v a�l�tit�� �a� a��l�i�'�t a�r emissions, effluent emissions or noise or with any Governmental Approval r�specting ambient air emissions, effluent emissions or nAise, any quch representation or obligatic�n shall b� deemed satisfied to tbo extc;nt that t��� Su���i+�� d��n�+�tr�t�, ���'�c�a�.t i� �h� emissions tests, the Gquipment's einissions �u�r�ra�� i� �aet, � �r ��Sit �» �� �Y other st•andards or codes aro found to be appl�r,�a��e, '��n tl�� s��.�'� � ir�te� in i%� a � manner as a change of Law under Section 17.2. 17.2 Changes in Law. In the event that there is any Change in Law, the Party whose performance under this Agreement is adversely affected by such Change in Law shall reasonably promptly notify the other thereof in writing upon its discovery of such Change in Law. If any such Change in Law increases Buyar's cost in its performance of this Agreement or increases Supplier's cost of producing or supplying the Equipment, delays Supplier's schedule or affects any other provision of this Agreement, Buyer or Supplier, as the case may be, shall use reP�sonable efforts to mitigate the effects of such Change in Law and be entitled to an adjustn����i tc� the �>c��i'�c� f��'au�, �c�L�ip��nt Delivery date, P�rf€�rma�a�a �u�a��e�, ���ci ��ty r�tl�er e����1�1� ����jt��t����t�t tc� t,i�� Agreement and �h��l �����ii� ,�y ��a�l� ������xnent ir� �n ������ci��nt � �l�i� Agreement under ��a� �am� �°�nc�p��� ��d pracedures applicable for a Change Order. Th ocu ent and eny attach enta ereto may con in infar Atlon that la con deotial, co merclally- naitive, p priet� , and/or public power utllity co tltive ahd rnencial Infor atfon in acco ance witd the provlsiona of Texae Govern ent Code, S tlon 552.1O1, 552.1 , 552.110 and/or 552.133, and ay be pro cted fro r ulr ublic di l ure. 36 ARTICLE 18 NOTICES AND COMMUNICATIONS 18.1 Notices. Any notice or i�av+�i�u� �u�°�u�t t�r tl�� t�r�r�s ����� cc>s�����i���� ��� �c�s A����±��t ��� 1�� � r�ri�ing a�sci �it��r ��� �a� d�livc�a°�d por��na�l�� �i�� ���i by ��r�if� ����I, a�i� �e���p� rc�q����.� ��� ����� i�� � re�ca���i�� r�v��ni,��i r��il +�r �o�ri�r ���vi�� �►r� d��i�r�r}� r��i�pt r��i��.� a�r �d) ���tt ka� �`���itr�ile �r �rt��i4 w�il� �� c+��'"����v� ���' ��t by ce�rari�r �ar c�rti%�c� ��.il %c� kl�� �u�rr�s��a�+�in� �c�r�r�� �i�ie�l below: If to Suppliet: W�4.RTSIL.4 NOR`TH AMERICA, INC. 11710 N. Gessner, Suite A Houston, Texas 77064 Attn: Kenneth H�gg Tel. 281.233.6200 Fax 281.233.6233 , with a copy to: WARTSILA. NORTH AMERICA, INC. 11710 N. Gessner, Suite A Houston, Texas 77064 Attn: Gabriela Rivero, Lega1 Counsel Tel. 281.233.6200 Fax 281.233.6233 If to Buyer: City of Denton 215 E. McKinney St. Denton, Texas 76201 Attn: City Attorney Tel: 940-349-8333 Fax: 940-382-7923 with a copy to; Denton Municipal Electric 1659 Spencer Road Denton, TX 76205 Attn, Mike Girim, Executive Manager Tel: 940-349-7565 Fax: 940-349-7334 Email: Mike.Cirim@dmepower.com Either Party may change its address or the party to notify by a notice delivered in accordance with this Section. �1'M�iu a����u������i ��t�1 ��ry ��t��b���t�t��t� �h��°�t� ���' ������ ��for etion that le c���F���s$i�l, t�eMa�r���°�:��rlly„ r�r��i#iv�, ���u�b�°����i�•�, ����It��v ��r����� ����� ������� c€r� �iiive and financisl itt�'�r��tt�� ��� �r�:��t�i�r��� �ith 11�� �r�R�+����u�� �i'N't���� �,���v�fa�����rst � � ����ir�n 5��,��fl, 552.104, 552.]]0 ��cii�� ��1�3, ��asJ G���� �e �7r+�k��t��� �s�r�� r�������4 �tr��l�c a�M��l�a . 37 18,2 Effectivene�s of Notices. Notices sha11 be effective when received by the party to whom addressed. ARTICLE 19 DISPUTE RESOLUTION � JURIS�ICTI �,��� ������n��. ��� P�ty �ril1 p���p�ly 1'�. i 1�3+�e� �f I��s���� 1�� �ot��y �� ��ia.�r �n ��tir�� a�` �� c1 s di�p�it+� �r cc�z��r�v�r�� ��i�i�� �ut �a� �r r�l�ti�� r 'n t�r t�i� t�,.gr��t��t �r �e ����, �rrn�n�tr�v�, �r v�i��i��r t��r�� ����y°� ut�"� �n t� ��+�� r�vill at��pt �r� �a�d ��i� t� �rt��p�y ��4v� :�uu[�. �i��t�t� t1�a�€�r���a r��,���i�tic��.. � T� �� ev�r►i �.� �'a�ti�s �� ra�%i� �� ���"� � �i',�t� ��1������ka��vr t�n �m�n��' �ay� fr+�rn� th� r��e�pi �f a r�t�cr� �� ��, a£ th� �]i��ut� d�s���ri�g fi�x�� i�u�s P�� ��h�l� ravmi�a�: ����� �+� v����it�h tk� � su�r��y c�f #,�x� c��` P�.y�. E�� �" m�age��nt, �k� �►�` wrk��� s�� b c1� �a ��ut�� � �� ���l�.t �� �� u�� �FJ�i�p�� � �a��� �1l����Sd�s`1'l� �t� R���i� �L:��1t3��� �3�� �ki�34� �t1 '� �,�r� ��11 �;�tti��t�ii, tk�� ��rt�i��' �u��m�ri �'�c.��� ���i�rr���� c���� �'����:�i � ��a �� � �a� ti�� ���� �i�:�u�� �����n (1�) c��,y ����i�c�. r m�ival�y �,ga'�� t�r�� �und. p���� t� �i�� ��?�� �� � ����aai� ��t�� �� �' ��� �g�� �d �� t1���.y �3t�) ���� ���° � �� � �r��c�lut�ia� vf �u+�h a bi��y�a��a ��� � c��a#��d �� #i ���} '�� Y �� � �� �� fi�� t ik�� ��t�r ��t� Y Y �� s�ninr �����rs +� ��a+�� m�i��� �b��� t�e di�p�� tc� m��iia�i€�� in �� �� +���i� t� pr�v��i+�� �r� �tir��t `�9.�. ,�,���� ��� 41������� ������ ���� ��g��������1� t68reto m�y cantaln in%r ptlaN� that Is con ential, co ercially- ���t������� �������,�����.�,� �������• �,������ wer �tilily co elilivic en SS2.11 f ata r/or 552.133, an a�y e ��� ���,1���������� ��=p"���� ��y����������1 de, Section SS2.1 L, 552.1 , ����rt��t�� C�����r r�*r����r��l �������i� �ii��loaure. 38 19.2 Mcdiatiion. Any Dispute arising out of or �1at��g t�r t�f� .1�.,�r+����nt c�r � breaah therenf which has not been resolved through ne��t������ i� �cc�rd�� '�veth '�� ��rt����ti�r�s �� Fc�r�ia �n �ecii�n ��,! st�t�ll be subm�tted t� �a��-�indin� n��d�a��+��. Th� �,��������;�� ��,��� �� ���,� i� ���r��, �'���;. The mediation shall be conducted before a ����1� ���,��,���,����� �,��s��,�� ����r�����y ����eahle to both Parties with signiftcant ,���,�r���,� ��, ��,��,�#[n� c��;����te� ���ia�� �'r�rn commercial contracts for the engineering, :�����ly a�� cc�n��a��a��t�c��� s�� el�tri� p���� ���a,�s. �� t�� P�i�� +r�ru��#� :��svr�a�t� �ac� �'��dk� ��"��rts, ��t�c;i �a n���iat�r wi�i�i� ��r� (1+�} d�.�+� c�f subrnrti�a,� �� m��iter t� n���ii�tic��� c�r i� i�� �� ���� t��� �"a���� ��z�����1 re��r�v� �e l�ysp�aie : r�?��n (��� �u�s�c�ti�� b�s��s� d�y� ��" ����i�a�, t��� �ith�r Par�� �a�y l��i�� �y �tiQ� ��as.i�a�al� �t l��w in �aur� �� �� �e �is A��t�c�� ��� Th� P�t��� �1�a11 u�� cvzr��cx��y �������� ���� � �,����,��,� �� ��,�����,� � �p� � ���icable. Tlie decision of the �m�t�i�,�� ���.1� �� i� vvr�t�.r�� ,�n� �1��1� �ve �:�s��s �`��r #�� decisions r�ached by the t��i��c�r, b�.t it .��i �'���d�g �n #�i� i'�rt��. �iar to oommencement of the �,����i��� ��� �,������,� �}��;�� ����i� � enter into a confidentiality agreement to keep �,� �������� �����,�$,�# ��� �n��ia�aon and the occurrence of the mediation confidential. ���� ,i►�r•is��i��ic��t, ���I� c��' t�� ��rti�� +�xpress��y ir�e�++���1� ��re�s �la,�t �y �e��1 ��t��� crr �art�c��das�� w�t� r�e����t t� �i� �,�r�m��� �r �ia� tr��sa�ei��� c��t�r��l�d ��ei•e%� ���.[� 1�+� ��°e���%i �s�d �4����i��� i�. �J.�. f���ra� ��� i� th� ��t� �ist�ic� �a�` T�x�� ���� ea�� 1��€r�y ��rat�� irt•�:v���l��y �����n��� t� ii�e �x�lusiv� �u�r��dic���ry of such court in respect of any such ,act�+�ra �r �r���di��� �s'a�i �r�iv�s ����Y ��Ce�e�� +�� fa�r�ur�r r�vr� ��nv�n��r�s, pr��viri�, l�c����r, t���:t 11�e �`tar������� �Ix�l� r�crt l�r�ait ��� ����t� c�l°' �i r ��;,� tr� �bta�� ex�����n �r ��f��c�:��x�a�i c�� ,jr�����ea�i a� �i�� c�t��+��• �tN�i��etic���. "I"he ��,i�s �ur�hes� �gee ��;��., tc� t�� ��1h�n�i ���rr��ii[��� �y ���vv, � (i���l ���€� r��€���l��lc j����a���e�f ���i�a�t � ���r�y i���n� a�y a�ti�r� �r ��°��cc�et�i�n� �:t���t�rr��������i �bc�r�� itt�r �iis ��t��t� t�,� �llt�il l�c� ��ncl���i�+� r���! ���.y k�+� +�y�fi�r���i i� ���y ��13�r.1t�t���t�i�fia� �ii�it� �r ���t��cl� ��� ����t�ci ��i�� c�i ����s��°i��i ��+ �eaii crz� ��� �x���i��nt, � ��r���ec� �c��y af �+�ict� shall be conclusive evidence of the ��sunt �a�` �t�c��� j�d������• A�'��� �'�!►�'�'x�� ��������� AGREE THAT THEY HEREBY V�t;l�i�l.'Y �V,t�l�l� '�'��� I�.�C,�I-�T TC� '�°i�IA� BY JURY IN ANY ACTION TO ENFO��� t��. i��"L��i'�.��"` `�'�-I� �'��"������� �� THIS A(3�REEMENT. ARTICLE 20 LIMITATION OF LIABILITY �{�.1 'u . ���'� ���c����tn ���:�,il�� . ����5�1���•�� n���i�n���t� ���r��u1;� 1i�i�ility ��;� �3�.��r, B�u�e�'� i�stt�x�� t�r p�r�itt�+� �����a��, ��'�pp�i+��[�, ����r�����i t�r ���i;� ���°�r���t w���r�� �isin� �rir� t��fi ��ne��ir� �n�,�li��x��,c� �ar �i�i�t l��ibilio�Y�; � 3i�yc�ic��t�c� ���t��►�;�� (�� litrti g�ru�r��aa�fi � ,�„�c '� �1�, ������i c��`+�����lt��c�t �is��l�a�l�s��; fi���ci�rr��tlt�� �r��zc�l�j�, t�r��� o� �rr��t�� i�d��ifc�tic�r�� �r �ny �th+�r c���e ��` ���a� � ��t �x�e�c� ��� `�`�I� t����e�t ��� ��y �t�a�N�E���i� t����io ��y ����n iw���r��a#€�� i�a� E� con�idential, ercial - ��r����fw�, �r��������tii�i��, ��t+�J�r ����k�li� pQ�er ���lity �t����i��v� ��r�� F�a����i��' iMor atfo� in oc ence with tl��� �r��vi���►�i:� ��i"�'�xa�� �.+�v��°�n��w�� �u�i�, ���i�a� �,i�Ji, ����i � �.1"�!� an or 552.133, and ay ��r�t��t�t� ii^�� r�����r-��N ����i���c �1���la��r�. 39 h�u�d��' ��rc�ax� ����'��'�) ��f`il�� C;��tra�t F�ri��� ����t ���t� �ir�i�ta�r� ��' �i�►����ii� shall not ���aly i� li��i��iy f"�r ��} "����1i��'�s �n�lem��y +���i��a������ ��i �'�rti� i� ��%.�e �1�._l� solely as t���� r+�lr�t� t� ���%ra�� �y �hiz�l �a�rt��� �r �b) t��bi�iti�� re��xlti���, fra�� t�a gr+��� �t�gligence, i'r��td �r �illfi�� ���s��n���i �f �u�a�li�r. 2�I.'� +�������t�nti�� i��n��. �x��pt ��r %ri��i€1���� ��m�t;���> i�r ��� �v�n�, w���i��� �s � r���fi��, �� i�����a t�f c���r��t, �ar+���h �t' vv�rr��.y, t��l iia�il�t� (i���I���ir�� r���li��ncc� ���e �4�°��t I��a�ilitY�> c�r �a��rvvi��, sl��i� eit��� ���r�y '�� li��a�� ��a t�t� ath�r ��ar ��:��a�, i�d�r��t, ��• �c�n;�cqu�i�i��l c��n���as ��' �r�y n��tx�r� wi��t�r�v�r, �a�citLr��n� lc�s��� or. ��r����� c�ra���� t�y r��sa��a �f i��arr�il�bil��.� e�T �}�� �;��tai�a�i��;r�?�� �t��tti�vv��� �r ��r�ri+��: i�at�rr��ii�n�, �c��� ��" u�, ln�� c�� �xt��t�� +�r �����a�e, i��ve��t�ary ��° t�s� �lx��°���, ��s�t c�� ���Ti��� t�z� t��;�a����r����� �c�w�r, it�i���r�si �f���;�� c��° �r��i �af �;��it�l c��° �t����r� ia� customers. ARTICLE 21 ��.� 1,�����. t�� �?!�u����� tna� , I"�� �'�rtie� �ica�vvi�i�� �� �� t�� i� �r��d be �it�i�uli ��� iai���si�l� t.+� d�t�r�i�►� wii� �l�sal�t� pa�c�sit�r� tt�� ��u�.t ��` c1������ tf��� ��au1d ���� mi��i �� ir°��v�����i ��+ �Gu��r �� � r�sult c�� �����1x��•'� [��i��r� �t� ��rf��rr� th��� �n�iter;� h������.�� �c�rr �vl�i�lz i�iq��id�t�� �a������ c�r� �r�v����. "Ct�t; �"��ti�s ��rs� 1'��t t��� �r�n��nt� c��' Lic�uic��te:�l �.�������� �r�r�i�e�i �a���r �l�is ��r�����t �r� ��� 1��� t�f �ctt��� �a������ �� ��� t��� E��rti��� ar���c����t�i+� ��i�n�at�� �a� �air ca���a}���:��lzc��� �`c�r t'� �c�ss�� �t ��y r��:ua��a�� � �t�ci�a�,�� fixa�� ��c� ��alu�� �n ��pect� �� �u�� �m,���r�, �+� dc� n�t ���it�t� � �n�t�. I� n� er�e�t �h�l �uppii�x's� li�bi�it� �c�r ��i��.�i��t��1 ���x���c� in t[t� ���r���te �x�:���i �i�:eer� ��rc.��t �1�°/°►�j �i th� C',��t���i �rr���, �T�tlti�t� is� td��� ��r���n��tfi �w�i� ����y�act !t� Li���e�at�� ��rn,���u� �rnd �y r���+�a���k �a�' i��� ����� t� l�t����• ���t �� �onn�tr���d � lirnr►i�%ti� +�� r�li�ving ���apl�+er'� (�) �bt���ti�n,� ������1i� t� ��hi�v� it� �rt��j��t Mii������+�s, (b� w�����a��tip� ar ��r��ar►r����;e �����t���te�;� �rt��E�t� u�c���• �'��� A����na+��at� c�r ��) i�►�y�r':� rt�rrt��i�� �����n �� �v�n� �,�' ������eta �+��`��1� �p����►�t t� �e���r� 13.�. ' � � .� Irx�l���n��� � �t���c�t�r_ ���4u�a: �+��i�iier it� � ind�€�+de�t ����r��r, �� �ll �ae�rs�n�s �����lc�y�� �y �t�p�i��r in �an���t�ean h��vi�r ��� � +��p1����� �f" ��p�ii�� ��� ��t ������trr���� +�i' �z�y�r ��3 aray r�������, ��t�i�g +�r�t�ir�+� �� ��s A �m�� �hail � � �d a� c���ti�ut.i�� a j�i�nt v�nt�a:�y ��et�;�r, or � �r�hip �iw�;t� �'u�rpli�r �"td Buyer, 21.3 ,�s�� �tu� ��i� ��� ���" ������'�'� r�vi� �ir�ti�:� ���► i . This Agreement may be assigned to ��1��t� �r��it��� �nl� ������� �i�� ���i��t ^�vri4t�� �c�n����� �� the other Party hereto, not to be unreaso�nably w%hheld. `�'1��� ���������� ���N ��� ������������ i�N��°��� ��� �.�M�l��in ��y�o����ti�� t1��t ie cunlldentiel, commcrcfally- ��r�ii�v�, �r`�ga���i��°�� �ri�11�►� �a������c �n���° ������Y �°�������l��� ��� ���m���l inPormation in accordance with #��� ����av�.�f��►� r��"�'���� ���v�rn��^���'�'��a� �+�"�i�+��s ���.1��, ���.1 , ��F110 and/or 552.133: rnd may Ue ��������.l�r! ��►��r r���Eutr�t� ���al���c� �i��lnsare. 40 21.4 Visits to the Plant, Supplier sl�ll have reasonable opportunitias, upon at least three (3) days prior notice to and with tha consent of Buyer (which consent shall not be unreasonably withheld), to bring visitors to the Plant �or promotioaal purposes. 21.5 Right to Audit. Buyer has the riglit to audat all o� Supplier's records and billings relating to the performance of the Work under tl►is A,gree�ent for compliance with the Yerms and canditions of the Agreem�ent and/or any state, fedaral or local law that is applicable to the Projeot, Supplier agre�s to retain records related to the Project for a minitnu� of iive (5) years following completion of the Work. Buyer agrees that it will exercise its right to audit only at reasonable hours. Buyer may ��eview an� and all of the Services parfot�►xted bp Supplier un.der this Agreement. Arxy payment, settlemex�t, satisfaction, or release tnade or p�ovidod du�ting the course of performance of this Ag��eement shall be subject to Buyer's rights as may be disclosed by an audit under this section. 21.6 'V�aliditv and Eg,forceabilitX. The invalidity or unenforceability of any portion or pravision of this Agreemeiit shall not affcct the validity or enforceab�lxty of any other portion or p�rovision. A�ny invalid or unenforceable portion or provision shall be deemad severed fronn this Agceement, and the balance of t�e Agreement shall be coz�st��ued and enforced as if the ,Agreement did not confain such iuvalid ar unenforceable portion or provision, Notwithstanding the provisions of the preceding sentenca, shou�d any term or provision af this Agreement be found inva�id by a�y Governmental Unit �.a�ving jurisdiction theraof, tl�e Psrties shall immediately ranegatiate in good faith such term or ptor+ision of the Agreement to elinninate such invalidity. 2l .7 Governing Law. This A.greement shall be governed b� the laws of the State of Te�as, without regard to the conflicts of law rules thereo� that would apply the laws of another jurisdiction. 21.8 aiver. The waiver of any breach o�r failure to enforce any of the terms, covenants or conditions of this Agreement shall not in any way affect, limit, nnodify or waive the fiiture en%rcament of such terms, covenants or conditions. 21.9 Third-Pait,y Bene� a�aries. The �rovisions of this Agreement are intended fox the sole benefit of Buyer and Supplier, a�d there are no third,party beneficiarias, except %r t�e issuer of the Supplier Payment & Perfoz��x►ance Bond to the extant expressly roquired or permitted thereundar. 21.10 Survi�val. The following provisions shall suiwive termination. of this Agreemont: Section 1.2 (Entire Agreament), Sectiqn 1.4 (Rules of Tnt�rpretation), Sections 2.11 and '�.2.5 (�ntellectual Property), Ai�ticle (Performa��ce Guarantees), r�ic 11 (Warranties), Airticle 13 (Termination), Article 14 (Force Majeure), icle 16 (Indemnification), Article 1(DispuYs Resolution}, Article 20 (Limita#ion of Liability), Ar 'cle 2(Miscollaneous), and any other provision which expressly states that it sui�vaves taz�ination of this Agreement. 21.1 � Effectiveness. This Agreennet�t is effective as o£ the Effective Date sfter being signed by both �arties. This document �i�d any attachments tl�ereto may contain informstior� that is confidentlal, commercially- se��sitive, proprfetary, and/or pablic power utillty competitfve and flnancial information iq accordance rvlth the provisions of Texas Government Codo, Sectlon 552.101, 552.104, 552.�10 and/or 5S2.133, and u�ay be ,,,/)� protected from reguEred public disclosuxe, f� � 41 ��:1� �,����r . '�`�i� ��r���a�a�� �tn�y � ���cuted in any number o� �����s �i� iay �h c�� tl�� �'`�r�i�� in ���asair�rk� ������'��xrt�s, �ach af which when so e����t�d ��ai� �� d����d i� �� � ��`��i��al �ux�i �1� c�t �rlxi+�h ���e� tagether shall const�t�ts one and the same Agreement. 21.13 Payments in Dollars. All obligations payable by either Party shall be calculated and paid in United States Dollars. ARTICLE 22 ?��'1-1�+�'C�1tI�l�C'��'�{.�� l�`I�ll+("1'��.'#r� � 1s�1'�i�l �'.��1'�1'l�,�„I+�E:�l:� 22.1 The Parties represent and w�r`i°���1. �1���� il��y� �c� ���ir c�i����r�, ����a�c�y��� as �v�lf �,� �vns��t+�� ��ig�e��, �u�a-����a� ancl �l�kc:, i� �ny, ��� �`��ili�r v�+ii� �and �t� ����c�aca� wi� t�� sup�Iy �� r�lat�� �cli�r�� f�f�y ������ '�"i�� t��� ��'��vi�i��ns ��� �pir�t �f th� �.�, �`c�r+�ig� C',c�rr���i �r¢���kice� Ac� �sc�,���.'"�� +(��?C"11� ���t�e��t��� c��s �a�ralaati�� �r����y a� �'or���a� t7�°�u��l� in l��t�:rt�t�crs��i �€,�;�i���s� `l`���n�x������ �u� ���� �t�e��ar��s �i��+�� �r�C���� Cc���v���ti��t"� ��x�� #�e l�ul�� c�T �:�a��d��i �� �:t�t��a�t P�ttt���ti��� �c� 1���1b�r� c�f t��� �€�t�rr�a�+����� ��������r tat' �"�t���n�+�x�� �rz�C�� �����"� sut� ����y ��p�1i��h1�: �€�� i�����a���aiin� ���l� �rr����i�r�s, ���pli�� ����r���rxt� ��i �wv�,x�����t� t��t1 i# i� li�� �+�rp�r�t� ��aii�y c��" �� ����1i�r t� � it� i`ul� �r���p�i����, ��ti �.�:�+� ����uir� t+�l� r�c�����i����. %rc��� it� ���tr��r�� st���u�nir��t�ar� ���t� c�tla��• �c���ir��is��� ���•ii�� �+r��� tl�� i�ttr;r �r�ci ��irit rr�` tt�� �t���.� %���� +����v��ti�anp 1�,� l�.�a�l�� �i��� ��y ���1�u�b�+� t�w�� �t��luc�i��� i�ut �ic�i. lir�it�� tt� ���€�i �r�r�+� ��;€�����i ;�aai�-l��^��ery. 22.2 `The Parties represent and �v.�r���n� ���i i���y �ax�r� tl��i� �l�r��i�ar�� ���plc�y�e� � ��11 � ca�se�n�d �s�g��s, �u��n�ra�t�i�r� ����,�.t ��t��xc cc��►tirr�crin� parti�:� ��I�tt�;�i i� th� �rr�,�e�ct ara�d ���[��, ifi �r��, ��.� n�t �#i�°cr�tly c��• ��dir��t�y� ��) a�`+�r c�r �iv� � hri�e �r�� +�+��n€��a�! far ��ck� t� larik�� (�i} �i�k %�� ��ay �c���i�r� s��° � �����r�ct �ayrr��ni �a c����rs �lir��t�t� ���df�r e���l�a�€��� �ar ��n�al.�ayc�s �f tlx� �1h�r �s��i���ti�� p�rtic� ��° ��y tihir�. ��e�y s�r (i�� �a ca utiki� at���� ���i����u��� such ,as s������t�°�ct�, ��ar���� cr�cicr:� c�t� �€�s��ul�:i��� ��i���rr��r�t� � �� �� pay�e�tt� c►r c��her �e���t� �r �cav�z����+�ni c�i�"�ci���, i� ��ir��tc��r� ��r ��x���i�ye€�� �f t�a� �"�ies t�r v��� c�a��'�tir�� p�i�s, t�eir r�lat�v�� �r b�.i�ir��:�� �����i�i��, �uvi�i� i�t� i�t�atia� tc� ���i��n� ��' ira�u� °��� r�i�s�t�d ��rv�t�r ��° clir�����r car �t���l���� tc� ��s� 1��;� ��r ��r it�f�uv�a�� �� ���i�t �i�� �`�a���� �r tix+���° ����i�r in +�bt�inir�g �a�r i�:t�i�ir�� �usi��s� �r ���;uri:�a� �� irr��ra���x ��v������. 'f"h� �'"���� �ll��►���d�� ��vcl� ac#�vit��s m�y. c+��sti�ui� €� ��i��xi���l vi��l�ii���� c�f 1����! I�r� �r�.� ������o� p�ni�he�al� F�y �ub���i�1 fines and/or imprisonment. 22.3 Tlie Parties represent and r���t�r�� tl��t �1��� ���� �����` ��i�'��t���� �����t��'�'�� as well as �r�n��n1�d ����i����, su���vr�ir��tc�r� �uYc4 �1�d�+�, i�' ����, °r�l��I� ��`ryi�a� c�u� i�� responsibilit��s �d�r t%�� C�rntra�t, r�i�� �c�� ���Y vr tt���� ic� ��, �ir�a�lly ��r x����r�€�t1�, any funds or ,���i�� ca� v�1u� t+� �y� ��rhl�� �#11��,i�1 +�r €������ �i 1��c��r iiir�ct��}� c�i= 7'hiA dp�a�n���t ����I +���' satd�����xr��ir�� �l�a�°r�t[� ����y ����l�i� N��far alion t6st ia �rr��[i��t���� �v�s�r�� i�11�+� aeneitiv�, �r�►��°��k����� ����ilt��* ��ra%li� ��aw�r u�tllkiy ce�������tl4ive �nd n�nciAl ir��c�rw��tt�� i� ��c��dta��� �ith the prov��i�w�� ut' "�'���� +[��v�r��a+���t �:��t��> ������4� �;��.i��ik 552.104, 552.11 ��sdl�r �r��."���, ��d w��� �� ptatact�N �Y°��n r�r����°+�tl ����[��i� c���1a���u�°�, 42 employees or employee of a com.pany related to the project for the purpose of influencing their acts or decisions. ��,� fi�ae ��ies ��n� w�r�i �at r� g� �� its compensation is �� ��a dir�c�i�r c�x in,d�r�+c#1� 1�� �� I'aar€�e� +�r �y t���r d�re��te�r +�r employee as a bribe +�r i�a �y rn �r w��t���ver �n� wha��ve�° ir� cv�r�ven���i +�� �� letter or spirit of the ����� �� ,�,������ ��,���� ���,��,� �� Bribery of the International Chamber of Commerce. 22.5 I�" �� Fa�ti�s t�ar ��ir �ir�ci�r ��l+�r e�t�al�Y� directly or indirectly offers, PaYs� Promis�, give� �r �u��c�ri�� p�ym�t +�f ��` ��r��y or anything of value to any govemment, p�abli� �r� �aaiiti�� p�' c��'�ci�I a� ��ire�tar or an employee of a party involved in � ��j��� �`�r �� �u���� �'� ���'���i�g �r� �'�i�iai €sr �ir�to� �r e�m��c�y�e act or decision o:f such official or director t�r �r,��c�y�+ee iu� ��� ���'s� v� ����'��►� ��x �'��' Contract, or is in breach of any of its repres+�n�ii�n� �d w�r�ti�� i� t� .Ar�� ��, ��� Seller is entitled to terminate this Agceemant through a simple notice with an immediate effect. Termination in accordan.ce with this Article 22 carries same consequences as ternvnation for an event of default under Article 13. ��.� �� ���p���,� �#�� �,�pplier's obligations hereunder shall be, subject t� �11 appli�l�le €���an� �c�r�1�c��a i�nnpc���d t�� t������'�Y �� pr�u�ts� ��+ �y ��nt� �r vrg�ni���n ar n��c��, �r�cl���n� t�� CX����ci ��t:�,'�1ni��d �1mt�c�t� ar�� F�r� �J�i�n, °r�v�s�� j�asd�ci��n �� � �xt�n�� � i�e ��t�plie�r, �t� ��li���� �r t�t e�r��r�n�r. TT�..� B�t�+et• �k��vvi��d��s� t�t t�e E�uipm��rt �zc� ali ����d ��i��l inf�rrt�r�a�n, d�c�+�nts �� ������� ���, ��t ��-e��rl��, t�nshipped, diverted or transferred, directly or indirectly, contrary to such controls. 22.7 The Suyer c��"irr�t� �h�t ��� �q�a�pm��t °wil� b� �s�d �i��y F�r �h� intended peaceful purpose. I� ����ra��r, th� :�uy�r war��ts '�i�at i� �'����� w�il �+�t be used for purposes assnci�t� wit� �y �h��ic��, l�i����i+��> �uc�� wvve��� a� �i��i��� ca����� �f �etiv�rir�� sa�ch vv�������, t�r i� su�p�r� vf �n� t��°+�ri�# s��ivi��+ �r �ay� vt�+�r m�1it� ��+� �as�. �ox wi�l �h� Eq�iprr���� c�a� �`a� p� �+� t` �a� re-s��d i� i� �� �,�,�y�, �,� �������� �,�� ��y � int,��a��d t� be used for such purposes. �� ����� ���� ��ie ���a�ii�r �s obliged to stop its work due to Buyer's ,�,��1����� �,� ����� ����,�� �����x��, �,s �upplier entitled to terminate this Agreement �,���� �,�����,� �,��� �� �, ����►����� effect. Termination in accordance with this ��i��,� ����� ,� ����,�������, �s k��nination pursuant to Article 13. "��i� ��.�����a� ��d a�� ����1�t���� t�e��t� ��� �o�4�i� [n�t�r���iN�n il��� le c���di�nti�l¢ cra����'����ty- ��r��i��v�, p����r��#��, ��+�J"car pwb4i� ��� a�ill��y ��t�ti ���I�� �a�� ���msci�� i����'���tl�� ��ss ����s���� �ilh fil�� ��ta�i�i�� nf "�`�x�� +I�ove ��e�t 6C � �'��1��� 5�����M�, ���.� , �5�.� 1� ��dCa�� �>1��s ��t�l na�� b� p��°�t��t+�� ��t►� � �ir�� ��tall� �i��l��atr�, 43 IN WITNESS WHEREOF� the Parties heive cauaed this Agreement to be oxccutcd as of the dstc and tho yeer first above written. CITY OF DENTON, TEXAS e Texes municipsl coiporation By: Howard Mertin Interim City Manager ATTEST: JENNiFER WALTERS, CITY SECRETARY By: APPROVED AS 1'O FORM: ANITA BURaESS, C1TY ATTORNEY By: WARTSILA I�'C'1� ,� �I��+�A, INC. '� � , By. "�� � � � Neme: Dan Shelledy � Titk: Business Development Maneger Ml l I 1 � ..1 �'�.. I I Y�:. �.Y i i; i i i i W�IRTSIL�1 Annex A General Scope of Supply Thls Informatlon Is confldential and proprletary to W�rtsll�. No dlsMbutlon or dupllcatlon In any torm or any maaenai corna�r�eu ��C�C��� �� permltted wlthout ti�e prlor approval of W�rtsll�. 'C�6� ���a�1��� ��� �n�r � �h��a�� ��r�� �a��� ��t�}n i�f�rt�s���� E��� i� ��st�d�nl��l, +���r�I�1Ny� �I'tl��, �ra���#��yr, ��d J�a� �uf�t�;e �m���r r�ti���y �at�y��tl�i�� ��td �irrsanci�i ia���r��L��r� !n ���r�d��� �i#9r t�� prt��l���u�� v�° T xas ����rna��+�n� ��rJ�, ��ti�r� ���,�Ql, 5 r�.��N�, 5��.1�,�1 ��d�"�r b��.�,��, ��rd �n�� b� �Sr�mt���d fr�� +�i� �r�abl#� I o . Annex A— General Scope of Supply Project name: Denton Energy Center Quotatlon number: PQ2015-01864A1Ra Created by: MFI005 Document creation date: 13 September 2016 W�1RTSlI..�1 �u... . __ This information is confidential and proprietary to Wartsila. Y f :- : ¢'; F � : �:'�: i� . ... # t ��".c . a a : ' S s ,; a, b .�.., ; .s. y ,,. �, s - ; . :; ;C b Y e� tl � k M"u Y 5 ' R e, •...H �. ,� E.. _ � �.. ' i, ... y . . � y Y S p F q ; d' , a 1�. R a�:. w "k �.tl; Page: 2 of 23 NOTE: Itiems deflned to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be furnlshed if flnal deslgn does not requlre the Item. Annex A— General Swpe of Supply Project name: Denton Energy Center Quotation number: PQ2015-01864A1Ra Created by: MFI005 Document creatlon date: 13 September 2016 W�IRTSIL�1 This information is confidential and proprietary to Wartsila. . tl, E . �� + .,.�.' M � ..,-. � y .:... �, ,. e.,: � _ . .-�-�:x '��, 1 ' :I :; tl 4, �m r 9.�,` ,.�;. � : ' `b ! X f. - 1 1 4 A-4 �.r •'� e ' M �IX. ��.'�} d A 3� IF I'. '.' . 6 +"¢ e , e I�:. �' 1 aw , x 1 h, :: 5 A i+. ��� .� � � .� S 4 r �. i 4 " � $�. M :b�.tl a ! ' - � . f. Page: 3 of 23 NOTE; Items deFlned to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be furnfshed if Flnal deslgn does not requlre the Item, Annex A— General Scope of Supply � �. � � � . x. �T . � � . .� .;. •� � � >._, � . +� �� . �. :, �� � . W�IRTSIL�1 This information is confidential and proprietary to W�rtsil�. �'f�is �fta��irr�sstt �nc1 �atw�+ ��ta�B�n��r�� �it���t� �e��r �an��i�m G�ti1'�rin�w�ks�n #1�a�� !� c�nt�l��a�4i�l, ��ntatit����inlly���r��i�i+w�, ��z� r�nn �t+�sa�f�� r� cft��r� ��� ����#��� 1�+i, �5� �li� �t�w��IC�r��S�� ��,p:�N� r��ay 1 t� �ar�t���ti� fr�rrra �t�� Ir+�ci � L�fl��"�xas I s o Page: 4 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal deslgn requl�ements. Therefore same items may not need to be fumished if flnal deslgn does not requlre the Item. Annex A— General Scope of Supply : � r � � ,�. � «� . .y �- >� � � :.a � -� . � �� ��M1' � � � .. .- � . W�RTS[L�1 This information is confidential and propr�etary co war�s��a. �i�i� tl���n��ni �t�dl �ny �l���re��� ���� �€��r �nt�i�� 4'rfr�r�ss�t�+�r� #ft�l � �ca aE, e ef - v�, �r���r�t�i�r�r ���+�r ���hli� psa���' �a��i�+�r������� ar�� t`I��s��s�l��� ir�ti�ar����i��n in a o anc 1 ro 91a„e of7exas ����a�t7��w�! �t�d�r� �������t 5��.1�4� 5��,��+�, 5a�.��ti1 �n�l��r° ���.�.�;3, ���ti�l �n�y 8 t o ui Ilc i I su . Page: 5 of 23 NOTE: Items deFlned to be supplfed by Owner are subJect to flnal design requlrements. Therefore some Items may not need to be furnished if flnal deslgn does not requlre the Item. , Project name: Quotation number: Created by: pocument creatlon date W�IRTSIi.A Annex A— General Scope of Supply Denton Energy Center PQ2015-01864A1Ra MFI005 13 September 2016 �_��r_ __ This information is confidential and proprietary to W�rtsil�. �: 4 , * � � k 1 C � 1,. �:1 � I �,y 1�.. Page: 6 of 23 NOTE; Items deflned to be supplled by Owner are subject to Hnal deslgn requlrements. Therefore some Items may not need to be furnished if flnal deslgn does not requlre the I►em. Annex A— General Scope of Supply », r � . •„ : � r� ..��� .• �• �' � :.;, � . ��� � � i � � � . r. . - ► �. r •` , y., �� � w�Rrsi� .-�_ _ Thls information is confidentlal and proprletary to W�rtsi a. N 1.� 5 .; X 6 � 1. � � 3 .: 1 �: 4 `S - f�... .. . '1' . S . s 'i F s In7 �.: Y 1 i' , �. ;� a� �� 1 . M f iE=! .. 8 t {, „�' ! h ,, " a P d_'a � F:� s .:M -.: � '.� � 3 ' Y . :. . 3 .. : ':# I . •.,., 1 � r i : W - k Page: 7 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal deslgn requlrements, Therefore some items may not need to be furnlshed if flnal deslgn does not requlre the Item. . ,, W�IRTSIL�1 Annex A— General Scope of Supply , � �r . � �r .. �� R• � � :.f� x� � i1 �,� e e t�. 'e r• i. � .�a�_ �.. _ _ 7his information is conFdentlal and proprletary to W�rtsl �. � .� - � " 9 1:.. , �«. ry ri .. , G�. 'F N, n ! ' S , �. , � , . ,� : :� .. . _ 1 X4A § V 1 9 i - F 4 ) S 1 ' 1 M Y�q�,,' . V: ".�� ,': � P� M" _ 1::: Page: 8 of 23 NOTE: Items deflned to be supplied by Owner are subject to final design requlrements. Therefore some Items may not need to be fumished if flnal deslgn does not require thi� Item. Annex A— General Scope of Supply > ,� r - . . �w .. ., .- ��: r � ..�,a p w • . ^ ■. � . � � i' - i. �.dl # ..�.: . �. � .# �k .� . .:� . �.�� � � . +F W�IRTSIL�1 _�. � _ This information is confidential and proprietary to Wartsi a. y�:. +L 1 - �I. 1 4 ::du S i� � � t . � �... x . e r . ' � '�. � 5 e �,.- Y 1 :, .� � i � . �: t � _ \ 11 6' x f. 1 tl� i X �I k '� C " n . 1 . � '� 7 °.. � ' . -�.. i e 4� A 9 'e ! ' 1 : 'A 1 1 t� � ' i R 1 . 1 39: P_ ! .�. 1 ,... ... Page: 9 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal deslgn requlrements. Therefare some Items may not need to be fumished if Flnal deslgn dces not requlre the 16em. Annex A— General Scope of Supply Project name: Denton Energy Center Quotation number: PQ2015-01864A1Ra Created by: MFI005 Document creation date: 13 September 2016 WARTSII..�1 Thls information is confidentlal and proprietary to Wartsila. 7�i� c���ua���C �rtad �n� � �h��s�1€� ��� ���V ��k�9�ti ��T��r��ti� �.1t�a� i:� ��r�ii�����i� s�nsm�3°�w�1ly���r��G�v�� �r��r��t�a^�� ���/�r �utw��� p�a r ��ill �rn��ti�iu� ��t� PI��r�eB�l i�r�nrr'��tl�� tlr� ��aa��� ��fi3�i �h� �r����i�n� �t Texas ��vBP�kAYN�o1'� �� � �.: m,� � �Mi 5r��,.��3f 5�.��«�,�.i�, ���.,.5�.� ,��d���0�' S��..A�3� �ni� If��y1� ��� �i�Yi'�� ��.�� �'�1n P� 9uir -. �3'�P��I�� �8 Q6U . Page: 10 of 23 NOTE: Items deflned to he supplled by Owner are subject to flnal deslgn requlrements, Therefore some Items may not �eed to be furnlshed if flnal deslgn does hot requlre the Item. Annex A— General Scope of Supply ; . !` r # �y ; w~ y�- *�'� F :y, ,� ,# �# e i� x e �� .y ,� � . WARTSIL,� Thls info --___ . _ rmation is confldential and proprletary to W�rtsila. ii�wl� o�����nt �w�� ��� ����r��r�t� t��r�k� �n�� �n�is� �rw#�rar��tiia� ���� 6� ��a�i��a�ii�l, lally- nei ve, �r�prl�+��, ����p'�� p��ii+� p��sw�r �N�Yil�S ��p�t��Rarm �r�� ���+���1�� In�ara���a� �� � r��� i e vt ons Texas ��v�r�e��nt ����, � ��a ���.��1, ���.�M}�� �5��1�� ��dJ�� ���.�,3�, �r�� m�a�� e p o o ui u Ilc Page: 11 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal design requlrements. Therefore some items may not need to be furnlshed if flnal deslgn does not requlre the Item. Annex A— General Scope of Supply Project name: Denton Energy Center Quotation number: PQ2015-01664A1Ra Created by: MFI005 bocument creation date: 13 September 2016 W�RTSIL�1 This information is confldential and proprletary to W�rtsil�. �"N�� ��s�tsrr��nt ��d ���p ��t�ch��st�� t4��r�� rr��y �mr�in I�s�+nren��i�ar� �C��� i,� �rr�d�n�al, �Anr�a��ia���-�o��i�f��� �rmpr3e��ry�, ��dJ�r ��bli� ����w° �t�q��yr cc��p �iv� ��d ���n��! inf� �tta�n in ����nr.� �1�1� �lw� �r���s�vr� ��Texas ��v�r��a�,��t �����, ����tar� 5��,1��� b��.�l�+#� ���e��,SF ��d/�r r5�.i��, ��� ��y d� �i�� d fir���n a�ma�e�� p�1��1� I osu . Page; 12 of 23 NOTE: Items defined to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be furnlshed if Flnal deslgn dces not requlre the Ihem. Annex A— General Scope of Supply Project name: Denton Energy Center quotation number: PQ2015-01864A1Ra Created by: MFI005 Document creation date: 13 September 2016 W�IRTSIL�1 This informatlon Is confldentlal and proprietary to Wartsil�. �� �� � � , - r; ��� ,�� . � , � �:, � � - ,, Page: 13 of 23 NQTE; Items defined to be supplled by Owner are subject bo flnal deslgn requlrements. Therefore some Items may not need to be fumished if flnal deslgn dces not requlre the Item. Annex A— General Scope of Supply � �, , . � � � ;.y ,: •,� � � t.., . -i � i! !� . �, '! I r W�IRTSII.�1. �._ _��.. _ This information is confidential and proprletary to Wartsil�. �'i�l� ����at��t�nt ��r�1 �r��+ �t'��������+��rl� ������+� rn��r ��ttl�r4n i,rtif�rr���Y��y t9a�� i� ��a en al, ca e`ally- nsi ve, �rrsaprt���t�rm ���� f or ����slic �����r ukl�k�,r ��aN����ki�� n��� ���r��'s�i�1 F�f�s��M�s�[Cu�r ir� r ance I t e slone af Texas ��+��r��sm�rrr� ��tlat �ec�#c�r� �5�.1.t11, �a��,�+U�� ���.ii� mr�,�i�r ���,i,��, �rMatl �rr�� te e o ul ublic osu . Page: 14 of 23 NO7E: Items deflned to be supplled by Owner are subject to final deslgn requlrements. Therefore some ftems may not need to be furnlshed if flnal deslgn does not requlre the Item. Annex A— General Scope of Supply Project name: Denton Energy Center Quotatfon number: PQ2015-01864A1Ra Created by: MFI005 Document creatlon date: 13 September 2016 W�IRTSIL�1 This informatlon is confldential and proprietary to Wartsil�. , , „ c� ,� �� i�� �,� i �� �m ,;� �- Page: 15 of 23 NOTE: Items deFlned to be supplied by Owner are subject to flnal design requlrements, 7herefore some Items may not need to be furnlshed if flnal deslgn dces not requlre the ftem. Annex A— General Scope of Supply �a����� ������; D.enton EnE�gy Center �u������r r���i�er� PQZU15-01864A1Ra ������� �y; MFI005 �crarn+�nt c;rca�l�f� date; 13 September 2016 W,�IRTSIL�1 . ...�.� m. _.. __�.___ . .-_ This informatlon is confidential and proprletary to W�rtsf fi. '�hi� ��c�n��aat ��rx� ���y �����arwy��� �i������' nt�y ��n4�^��� �r��a�xr��tta�� ���fi s� ��t�ti�an��#, ��trrr�rc�aalE�-�rr���uea� pr��px��t�ryr�, ���d/�r ���I6� �s�r��� ui�li� �my�����v� �4�� �r��r���� i���r�t�ati�a� fr� a��rsl��� ��� C�� �r�vl�im�c� �� T x�� �3�u+��r����trt sC�f�s�, 5�����is S'��.i��a ���.���lr ���,1 �i� �r�d��r 5,�.1��, s�nd r���y G�� q�r�Cx���d �Yr r���air �ca��l� las . Page: 16 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal deslgn requlrements. 7herefore some Items may not need to be fumished if flnal deslgn does not requlre thi� Item. Annex A— General Scope of Supply Project name: Denton Energy Center Quotatlon number: PQ2015-01864A1Ra Created by: MFI005 Document creatlon date: 13 September 2016 W�IRTSII..�1 This information is confidentfal and proprietary to Wartsll�. ,,; ,� � � , . �, � � �, ,a_ � ,. � � � ,� � , Page: 17 of 23 NOTE: Items defined to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be furnlshed if final deslgn does not require the ftem, Annex A— General Scope of Supply • �' * " , , i , . s .�f�l�a �. r� t �i�:.s t , ,.� ,� t� �* - • r a. � .� . � i . W�IRTSIL,�1 � � _.__ _ _ �, . . This information is confldentfal and proprieta to Wartsil�. �'hi� ci�r`���ret a�� ��t� � �����at� tkn�r�f� rs��� �nt�lr� i!nf�i�c����i�ou� ti��4 i� ��f�d�:n���l, e'afly- nai ve, ���rl�taryf �m�dl��" �u�il-� p+���� ��li�� ��np���r�e �n�! ��r��e�l��l GiP� ��i�n �� s rd�n i the vlslane of Texes ��v -,�a��l+�o�1e, �����n 5��.���� 5�.!.i�D�� 552.��.D ��r+d,��ar SS�a���� �nd ��yr t fro ulr u Ilc 9osu . Page: 18 of 23 NOTE: Items defined to be supplled by Owner are subject to final deslgn requlrements. Therefore some Items may not need to be fumished if flnal deslgn dces not requlre the item. Annex A— General Scope of Supply , � . , �- � - r - . �' s . a. �.. •i F: I :��a i I���'�� . � � :� .R Il . .. � � � � . - , . W�IRTSIi.�1 This informatfon is confidential and proprietary to wartsna. w �', p � � ' � r . ;h -� ! �,� 9 " • g ` tl 4V h J 4 k ,'4 p: tlp R � 4 F l ' u i � �. � Y � � � p �i'9 :1 N� 1 A i � 1 Page: 19 of 23 NOTE: Items deflned to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be fumished if flnal design does not requlre the Item. Annex A— General Scope of Supply Project name: Denton Energy Center Quotatfon number: PQ2015-01864A1Ra Created by: MFI005 Document creation date: 13 September 2016 W�1RTS1L.�1 . � __. This information Is confidentlal and proprietary to Wartsil�. . _, . � � . ; ���� � ., � � � � . ; ���� , � yt : a � � .: , �, _ . . . � � w � � � �, � � { �� . � r b•; n a cn�x � r, �-� ��'i� 4: �, � E�. M-k �.� � _ .��e ,7:,Y Page: 20 of 23 NOTE: Items deflned to be supplied by Owner are subject to final design requlrements. Therefore some Items may not need to be furnlshed if final deslgn dces not requlre the Item. Annex A— General Scope of Supply ,, �r - , f - � � „ ," ,� �� � � ;�., t. . -s � �� �,� , ._, � � y . . � . �.; k , W�1RTS11.�1 Thls information is confidentlal and proprietary to W�rtsil�. . ��w � ��a � � .�. .� . �k _ �� . ; � � o , , � - - b, 9 .:, v , m =x p 1, e 1F 1 '�. � F ;'�� �. !i 1 � i t ii � .'._�; d P ...:t , . � ,. �� � Y .$" t � S 7 d:. _ _� " 1 P. x+ _ 1 E� 1! ' Page: 21 of 23 NOTE: Items deflned to be suppUed by Owner are subject to Flnal deslgn requlrements. Therefore some Items may not need to be furnlshed if flnal deslgn does not requlre the Item. Annex A— General Scope of Supply „ , rr , � • M �� '� 4 i �.. .� �.� � �iw ��y 4 �: -� e- i . W�IRTSIL,�1 This information Is confldentfal and proprfetary to war�sna. �, y �e c �: i U, P y�:. 9 r M 's .' I .,, � ' ,p : w mu 4 a ! I ! r i «-- n . n a � . s * a, 4 ;p 1= � 1- � h..e�„ _:..� __ •.. k � �, t ! _ - Page: 22 of 23 NOTE: Items deflned to be supplled by Owner are subject to final deslgn requlrements, Therefore some Items may not need to be furnlshed if flnal design dces not requlre thi� Item. Annex A— General Scope of Supply ,,�. , �� . � • . . . ., �• � � :.d � ' .� � � ���: E.�� ��: . �. -. - .- � . W�IRTSII..�1 This Information is confldential and proprletary to W�rtsll�. Tl�i� �aeu��m� ����M �r�� �t���ly��mnk� tl���+�lu rrt�y �asttk��ix I'��o�r�S�E��t� �ts�k i� �r� al' e lalfy�sensi vei �r�p'•i���r�� ���d1�r �a���IN� ���+�a�� �Li�[t�r �+��ry���tiliu� �u�[f ��nt�aw�R�l f�4far����ti�s� in a an i the vlslon� af Texag �r��+�rn���r�Y ��d�, ���f�n 5��.�4�i, 55�.���p ��?.ii� �n�iJ�s�� �,�.���� atr�d Mn�� e o u�r u Ilc os . Page: 23 of 23 NOTE; Items deflned to be supplled by Owner are subject to flnal deslgn requlrements. Therefore some Items may not need to be furnlshed if flnal deslgn dces not requlre tfie Item. � W�RTSIL�1 Annex B Technical Specification Denton Municipal Electric Project name: Denton Energy Center Date: 13 September, 2016 Power generation project Product type: Stationary power plant Engine configuration 12 x Wartsila 18V50SG Wartsila North America __ _ _ �EDACTED This information is confidential and proprietary to Wartsila. No distribution or duplication in any form of any material contained herein is permitted without the prior approval of Wartsila. � t �.. #( i � '�;Y, 4 'i :? `? � i. ::� = i:',. � � k ,! :"� i �' .r ii' 4 r � i, ,) �!M' ' �4 �i ��'� ',�� . � � +i i ,� r". � i � '-n� r .�:- �3 , -;# A � _ F. } p " � W�IRTSII.� Annex B — Technical Speclfication �r�j�c� r�a�e: �ent+�n �r��gy ���r QLI��i[1f� fll��d7��"; �QZ��S°•�1�,$�'�A;l$3� CC��d �7y. �FIQ�75 �iacun��n� cr���e�n d��. 13 ��pik��ber, �iif� TABLE OF CONTENTS 0 General 5 0.1 Executive summary 5 0.2 Type of product7 0.3 Main data and oonditions � 0.4 Operation media 9 0.5 Special features �'3 0.6 Codes and standards 15 A POWER GENERATION EQUIPMENT 16 A1 GENERATTNG SET 16 A1.1 ENGINE 16 A1,2 GENERATOR 24 A1,3 BASE FRAME FOR ENGINE AND GENERATOR 2� A1.4 CONNECTYONS 28 A1.5 ENGINE PLATFORMS � 28 p2 MECHANICAL AUXILIARY SYSTEM5 29 A2.1 AUXILIARY MODULES 29 A2.2 FUEL SYSI�M 33 A2.2.6 GAS SYSTEM 33 A2.3 LUBRICATING OIL SYSTEM 34 A2.4 COMPRESSED AIR SYSTEM 36 A2.5 COOLING SYSTEM 36 A2.6 CHARGE AIR SYSTEM 36 A2.7 EXHAUST SYSTEM 3� A5 EMISSION CONTROL SYSTEMS 38 A5.2 NOx AND CO CONTROL SY5TEM r...,, �..—,�_.. _� ....—, —_. �.38 .- �,. � � _a This Informadon is confidential and proprletary to W�rtsIlS, Page; 2 0 i� ��i��e�� ��� �r�y �s�����'�r��� �h��ti.r� r��� r� �r� ���'��rx�,����� �k��� i� +c�9� ��tl�l, 9 I{y�� n�f 'v�, rl��e�r� �����r� �rub6�� �� r u��l�kyy �����ll��� ��� ����n�6�i ►��rr��Yi�� 4�a � ee it t e i �n� ��� � �Y� �a��� �a��� ��t�r� ���,�,Cll, �5�,l�f�r 55�.���.� �s��/i�r ���.1��, �r�d ���� r f t � r s Annex B — Technical Specification � � r- . . s . . , �- ei � � ..., a ., , � �, r. � � �. � -� - �►- � W�1RTS[L„�1 A7 A7.1 A7.2 A7.5 A8 A6.1 A8.2 A8.3 A9 AUTOMATION SYSTEM OPERATOR'S STATION CONTROL PANELS CABLES AND ACCESSORIES ELECTRICAL SYSTEMS MAIN SWITCHGEAR (MV SYSTEM) STATION SERVICE SYSTEM (LV SYSTEM) DC SYSTEM TOOLS 40 40 44 46 46 46 46 47 47 C SURVEYS, ENGINEERING AND DOCUMENTATION 48 C2 ENGINEERING 48 C2.1 ENGINEERING MANAGEMENT 48 C2.2 PROCESS ENGINEERING 48 C2.3 MECHANICAL ENGINEERING 48 C2.4 EIFCTRICAL ENGINEERING 48 C2.5 CIVIL AND STRUCTURAL ENGINEERING 48 C3 DOCUMENTATION 48 C3.1 CONCEPTUAL DESTGN DOCUMENTS 48 C3.2 BASIC DESIGN DOCUMENTS 49 C3.3 QETAILED DESIGN DOCUMENTS 49 C3.4 CONSTRUCTTON AND COMMISSIONING DOCUMENTS 49 C3.6 COMMERQAL OPERATION DOCUMENTS 49 D TRAPISPORTATION (DDP, Sibe) 51 Di TRANSPORTATION OF ITEMS SUPPLIED BY Wartrila 5� D1.1 MATERIAL AND SERVICES FOR LOGISTICS 5� D1.2 COLLECTION TRANSPORT 51 D1.3 MAIN TRANSPORT 51 D1.4 SITE TRANSPORT 52 _�.d__ .._._ _�. _ �.n ...... __ -� �- - Page; 3 af 61 This IriformaUon is confldential and proprietary to W�rtsll�, 1� �c�apr��r�L ��d �rwy �����lw�t��� ��b��t� r�a�+� ��sk�ir� i���arrr��k��a� �h�� I� � n i, e� �rcl Ily- �it{v , ���r ��� JsaM° ����H�� �� � €��I�l �rn��t���v� �e�c� Pi������ i�s#�rr����ko�� �� �n i � �islo � of'T�x s �v� r�t�r�R �c�t�e, ��f�I1 ���.�fa'�,, a��.S��k�� ��� 1�,� �sn�d��r ���«���� �[�� t1��� e e f 6 u Ilc i ta . � W�1RTS1L,�1 E E3 F Fi G Gi G2 H H2 H3 H4 J ]2 73 J3.1 74 ]4.1 ]4.2 Annex B — Technical 5peciflcatlon Project name: Denton Energy Center Quotation number: PQ2015-01864A1Ra Created by: MFI005 Document creation date: 13 September, 2016 TAXES / DUTIES / PERMITS / INSURANCE INSURANCE PROJEC7 MANAGEMENT PR07ECT MANAGEMENT AT WARTSILA CONSTRUCTION MANAGEMENT SITE MANAGEMENT TECHNICAL ASSISTANCE DURING INSTALLATION TEMPORARY INSTALLATIONS AND ARRANGEMENTS SITE OFFICE AND STAFF ARRANGEMENTS UTILITIES WASTE MANAGEMENT COMMISSIONING AND START-UP 7ECHNICAL ASSISTANCE DURING TESTING AND COMMISSIONING TESTTNG PROCEDURES WORKSHOP 'TESTS TRAINING TRAINING AT WiARTSILA FAQLITY TRAINING AT SITE 53 53 54 54 55 55 55 56 56 56 56 57 57 57 57 58 58 60 _�._. __ .. _ . This informatlon is confldential and proprietary to W�rtsfl�. Page: 4 of 61 1� � �ret ��r eeq c n t a� In int� �tfon �t f� n� I, �� �rc6 II offi n�t ��, r1� p e� ��r u tic r u fl tiv� n n n�i�l In r� o� I�e n 'o � �x�� �v�rn ��et , �n .1 1, .1 , 2011 �re /�r oi , n y te f 1 IE� 1� �aur o Ilne Denton Municipal Electric 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 code 860050 803004 831003 836001 836030 836041 851001 851020 861009 861010 861041 861100 836009 836033 836039 836043 842014 847001 848012 803001 803003 834012 836010 846008 846012 861027 861028 861120 861142 800001 800002 600106 835001 835002 835005 835008 836008 843001 845010 837046 806079 832001 834001 834045 Materlal number PAAF040961 0084G018900 0083C013500 8680119 0083C013400 0083C016500 0085B002000 0085B002100 0086B003900 0086B000200 0086B047500 OOS6B007900 0083G008100 0083G009500 0083G037300 0083G036700 PAAE086328 0084K007300 0084K007400 0080D002800 0080D002100 0083H021300 0083L001500 0083F010400 0083F010600 0086B023200 0086B001100 00866017600 0086B013200 8650009 8650121 6650123 PAAR010572 0083F010900 0063F016100 0074L020400 PAAE009958 PAAR010585 0083F027300 PAAE070299 PAAE136931 0012T117500 0083E013800 0083L015300 Denton Municipal Electric Item descrlption HYDRAULIC HAND-PUMP LOW PRESSURE EXTRACTOR IN TOOL BAR FOR LIFTING TOOL TACKLE 1000KG TRANSPORT DEVICE TRANSPORT DEVICE TO CRANKCASE TURNING TOOL FOR MAIN BEARING SHELL TURNING TOOL FOR THRUST W.AND BEARING DISTANCE SLEEVE FOR HYDRAULIC TOOL M56 PIN LIFTING TOOL FOR HYDR.TIGHTENING TOOL M TIGH7ENING CYLINDER FOR M56 SCREWS LIFTING TOOL FOR CYLINDER LINER BRACKET FOR CYL.LINER LIFT. TOOL YOKE LIFTING OF CYL.LINER TOOL FOR REMOVING ANTIP. RING HONING 700L FOR DEGLAZING OF CYL. LINER MEASURING RAIL �OR CYLINDER BORE INSIDE MICROMETER EX7RACTOR FOR M42 STUD MOUNTING TOOL FOR STUD MOUN7./DISMOUNTING 700L ASSEMBLY TRESTLE FOR CONN, ROD LOWER PA LOCKING DEVICE FOR BIG END BEARING LEVER FOR CONN. ROD LOWER PART DISTANCE SLEEVE FOR M42 TIGHTENING TOOL PIN FOR TENSIONING TOOL HYDR. TIGMTENING TOOL FOR M42 SCREWS HYDRAULIC TIGHTEN. TOOL FOR M72X6 SCREW PLIERS FOR RETAINING RINGS ZGJ-5+ ZSJ51 PISTON RING PLIERS 460D 15/10-8.2/8 SPARE JAWS FOR PLIERS ZGJ-5 LIFTING TOOL FOR PISTON GUIDE LEVER FOR PISTON INSTALLATION PROTECTING SLEEVE FOR CONNECTIG ROD LIFTING TOOL FOR PISTON AND CONROD TOOL FOR PISTON INSTALLATION CLAMPING TOOL FOR PISTON RIWGS ASSEMBLY TOOL FOR PISTON WHEN ANTIPOLIS EXTRACTOR TOOL FOR INJECTION VALVE TOOL SENSOR MOUNTING TOOL. IMES LIFTING TOOL FOR W 46 CYLINDER HEAD MOUNTING TOOL FOR VALVES LIFTING TOOL Annex B Attachment 1 Tools List 1 1 1 1 1 1 1 1 2 2 1 2 1 1 1 1 1 1 1 1 1 1 1 2 1 2 1 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NOT TO BE USED FOR ORDERING Denton Municipal Electric Annex B Attachment 1 Tools List Ilne 4�� 460 470 480 490 500 510 520 530 540 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 650 860 870 880 890 900 910 920 930 940 950 code 836031 837007 837042 840003 840007 840008 840011 841010 842028 842029 845001 845002 845004 845005 845006 845012 845031 848001 848021 860175 860179 �860180 861146 861209 834010 834053 845013 845014 845020 834050 834008 836046 836054 836065 865010 846016 387022 846210 846215 846622 846623 846624 848112 848113 866001 866004 866012 Matarial number PAAE181674 PAAE166294 0084B029100 0084F001602 0084F001612 PAAR022239 00846013900 PAAE041647 PAAE070032 0083E008100 PAAE105401 0083E008200 0083E008300 PAAE105532 0083E009200 0083E014500 008�4K005000 0084H012500 4612T000300 0086A010100 0086A010000 0086B008600 PAAE152345 0083H011800 0084G029200 0084G068600 0084G068500 0084G036600 0083E006800 4683T000600 4683C000600 4683C000500 PAAR018440 PAAE056684 PAAE170540 3870107 0050T002106 0050T002104 PAAE190646 PAAE010981 PAAE010982 8610054 0050T002001 7370318 0050T004001 0050E040901 Item descrlptlon �1FT1t�� T�+�L FOR Rt3C�CE�t AR�+I� STARTING AIR SYSTEM TOOLS ACCESSORIES TOOLS FOR STARTING AIR VALVE LAPPING TOOL FOR S7ART VALVE CLEANING FELT 65/10-4 CLEANING FELT 55/10"4 TOOL FOR PRECHAMBER SEAL. SURF. ROUNDING TOOL FOR VALVE GRINDING VALVE SEAT LATHE GRINDING TOOL FOR LINER AND CYL. H SPINDLE FOR SEAT RING REMOVAL DISMOUNTING TOOL FOR EXH.VALVE I D165'`54 SPINDLE FOR VALVE GUIDE REMOVAL BED FOR 7ENSION CYLINDER ASSEMBLING TOOL FOR EXH.VALVE INSERT ASSEMBLING TOOL FOR INL.VALVE INSERT FLANGE FOR REMOVING TOOL VALVE CLEARANCE FEELER PRESSURE TEST DEVICE HYDRAULIC PUMP WITH EQUIPMENT HYDRAULIC HOSE L=4000 HYDRAULIC HOSE L=1000 PIN FOR HYDRAULIC TOOL HYDRAULIC TIGHTENING TOOL FOR M90*6 SCR+ TOOL F. CAMSHAFT BEARING LOCKING DEVICE FOR CAMSHAFT LOCKING BAR LOCKING BAR MOUNTING TOOL FOR CAMSHAFT HYDRAULIC PULL RAM SEALING SET HYDR. TENSION CYLINDER LIFTING TOOL FOR OIL PUMPS LIFTING TOOL FOR WATER PUMPS LIFTING TOOL SERVICE TOOLS FOR ABB TPL78C TOOLBOX FOR SCHALLER PLUS SERIES OMD CONTACT TREATMENT GR SGB020 2X/20MLI35G EXTRACTION TOOL FOR CA, SIZE 10 INSERTION TOOL FOR CA, SIZE 10 TOOL CRIMPING PL.IER, RENNSTEIG TOOL STRIPPER 45-164 TOOL STRIPPER 45-165 WECS2000 MULTITESTER SPEED SIMULATOR WECSPLORER UNICNVECS SOFTWARE TOOL CABLE CAN TO PC CABLE'NORMAL' USE INDICATOR STROBO TIMING LIGHT Denton Municipal Electric NOT TO BE USED FOR ORDERING Denton Municipal Electric Annex B Attachment 1 i'��{� L��t Ilne 970 980 990 1000 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 1110 1120 1130 1140 1150 1160 1170 1180 1190 1200 1210 1220 1230 1240 1250 1260 1270 1280 1290 code ����6 861160 861159 861158 861157 837001 846030 846031 837005 846002 846003 846004 820008 820009 820013 831002 831005 831006 833002 833003 833004 833005 837038 837039 846100 848020 848051 8A8111 860170 820014 845003 846032 Meterlal number F�tE��19'f 9 4683T000200 4683T000300 4683T000400 4683T000500 0083H021000 0084G048600 0084G048700 0083H020800 0084G044200 0084G044300 0084G044400 8640269 8640275 8640333 4470011 4470007 4470010 9160003 9160004 9160006 5510014 0083H011500 0080D002400 0084G038000 PAAE009675 0084K007200 0084K005800 5410199 0092K026500 PAAE109429 PAAR022652 PAAE105596 PAAE173305 Item descrlptlon �,���� �v���� ��� ��+�� ww� c�� i � u5� SEALING SET HYDR. TOOL FOR M90X6 SEALING SET HYDR. TOOL FOR M72X6 SEALING SET HYDR. TOOL FOR M56 SEALING SET HYDR. TOOL FOR M42 EXTRACTOR WD-200 MOUNTING TOOL WD-200 MOUNTING TOOL WD-200 EXTRACTOR FOR WATER PUMP IMPELLER WD-125 MOUNTING TOOL FOR WATER PUMP BEAR WD-125 MOUNTING 700L FOR WATER PUMP BEAR WD-125 MOUNTING TOOL FOR WATER PUMP SEAL WD-125 TORQUE WRENCH 730R/20 TORQUE WRENCH 721/80 150-800 TORQUE WRENCH 730R/5 LIFTING EYE BOLT LIFTING EYE BOLT M10 LIFTING EYE BOLT SHACKLE A0.4 ZN A0.4 SHACKLE A0.6 SHACKLE A1.6 ZN A1.6 ROUNDSLING 1T/1.5M UNIVERSAL EXTRACTOR EXTRACTOR FOR M20 S7UD GUIDING MANDREL FOR HT-PIPE SEAL 157/167 TESTING DEVICE FOR EXHAUST VALVE PRESSURE DIFF. INDICATOR DEFLECTION INDICATOR DI-5 . AIR OPER .HYDRAUL. PRESSURE UNIT HAND TOOLS SOFTWARE ENGINE SPECIFIC CONFIGURATION SPARK PLUG SOCKET DISMOUNTING TOOL FOR INLET VALVE INSERT MOUNTING TOOL FOR EXHAUST BELOW FOR 50 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 7 1 1 1 1 1 1 1 7 1 1 1 Denton Municipal Electric NOT TO BE USED FOR ORDERING � d U rn � c w G � m 0 !1', � � �} { E� i '� L � C �1 �, `c�� s • � � � i �w.� � � e h.i f �, �, = � � Y � "'• . . . . .I �:. ._�n ,' .. ,.�i g .' ' . J L �; . 1 � w ��, a" � a�� I 'f � . . .. 5�.. n � J.-_i .�,.� .� .4 � iT E �� �. � 49 p 0' 2 . t�s-ti. a1 �n�ll .9 �� a n .. .. . . d: � o � � m o y �', �� � s ��� � � m � w: �, � � � �ii e 1 � c� N N o N . . . .. �'� .. 1 ,� l� ;� fi �q u5 i�' r ; i -" � � � . +� . .m � ,��N ` � �. �,5 i r � � . � .a u� " � ih � �" y� • .. 6 q i�1.1.. LL. . � � c ; � ' m � ♦ ,� lil • . � � U � �� �, U� F # L .. . �.o „ ��I.�g $N ., .�.♦ : w � � . y ws � e � � [� f � . t+ . N �� � �i�• � � �e� _ __ � �� u���+. 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V.il'- C F' �IL', ,p �..I.i U �� � I �`� �� RI -..� `.,�i !.} J J L ' : tl ., � � l y � `: � �...!1 � N R'II 1 LI i f '� - :: � � a EXHIBIT 2— Milestone Pavment Schedule Required Actions and Time to Complete Milestone Document(s) for Payment Pavment Milestone Payment Milestone Pavment 1 Milestone _ _ - -- - ---- On or prior to September 23, 2016 Final Notice to Proceed ("FNTP") Payment - Purchase of major equipment � On or prior to 90 (generators, radiators, control days after FNTP sv�esteml Copy of unpriced purchase orders _ �—._.� ._ . Estimated 210 days All 12 engine Production Production Confarmity Test after F'NTP Conformity Tests Certificate at factory in Trieste, Italy, . _ ____. Estimated 270 days Engines ready to ship from Packing lists with Engine serial after FNTP factorv � numbers ' Other Equipment Delivery Estimated 290 days (Activity Code A1850, A1860 ..�_.. after F'NTP and A1870) Buver confirmation of packing list Estimated 310 days Engines unloaded at Port of after FNTP Houston I Surveyor's inspection report ._�— _ _�, Delivery of Gensets to foundation Estimated 340 days (all six for Engine Hall 1 after FNTP (Activity Code A1880) ' Buver visual verification Delivery of Gensets to foundation Estimated 360 days (all six for Engine Ha112 after FNTP (Activity Code A1890) Buver visual verification Estimated 560 days Mechanical Completion (Activity Buyer notification that Mechanical after FNTP Code A1900) Completion has occurred. _ _ - Estimated 40 days after Mechanical Completion Startup �All generator sets� Startup certificate. On or before 60 days after Mechanical Completion Acceptance of each generator set Acceptance certificate On or before 120 i days after Acceptance Punchlist items Completion of Punchlist items _ 1 Dollar amount of each Milestone Payment equals the relevant percentage in this column multiplied by the Contract Price as in effect at the Effective Date. T' is s►ca, ent �eead any s�it��h �nts t ereta �y ce�rat�an i�f�r �ti�n tFas�t is c�n�identia�f, co ercis�lly- 3�tlSS�SY�y pro riet� , and/aa° ubti� p��ver uti{ity �ae etitave an financi�l inf�a° �ti�n a�e aa�c�rd�nce witlt #� praaisions af 'I°�x�s �overn ent Ca e, �ecti�n �52.101, 952o1d4, 552.110 and/�t° 552.1�3, a�n �y e a~ot�cted �'ro a°e �r° ed �r fic etiscl�sur°e. EXHIBIT 3 Form of Pavment and Performance Bond '3"��i� �i��s���t a�w��l ri�x� ��t�a��z����� �������� �r�:a� ���l;ai� ���vr���i��i kk��i �� a�ti�i��nii�i� a.��ny��e��B�lly_ ������,i��, ����ra-��4t���p a�s�i��e ���1�� ����� uii����r d����t��v� ��c� �r�������f ir�fvs°�s�Na�n [��, a�c.�.�� ���c� �4ti� i��� ������i��� ��'"�`���� �o����smsr���� Ca�Ma��x �3��Ic�� ���mi��� ���.bC�4g ���.� �� ��r�tr�� ���.��3, aMp��l x�'�� �� ���i�t��i ��� �a��:�� �r� �u�rlk� �i;��� ���m. cHUBB CHUBB GROUP OF INSURANCE C4MPANIES Surety Qepartment, 15 Mountain View Road, P.O. Box 1615, Warren, NJ 07061-1615 Phone: (908) 903-3485 Facsimile: (908) 903-3656 AIA DOCUMENT A312TM+ - 2010 PERFORMANCE BOND Any singular r�ference to Contractor, Surety, Owner or other party shall be considered plural where applicable. --- — — �._.... _ __ CONTRACTOR SURETY (Name and principal place of business): (Name, legal status and address); Federal Insurance Company WJIRTSILI� NORTH AMERICA, INC., a corporation organized and existing 15 Mountain View Road under the laws of the State of Maryland, with o�ces located at 11710 North Warren, N.J. 07059 Gessner Road, Suite A, Houston, Texas 77064 OWN�R (Name, legal sfafus and address): CITY OF DEN70N, a home-rule municipal corporation organized and existing under the laws of the State of Texas, with offices located at 215 E. McKinney 5t., Denton, Texas 76201 CONSTRUC710N CONTRACT Date: 09I13/2016 Amount: 100% of the Contract Price Description (Name and location): An approximately 225 MW gross nameplate capacity natural gas-fired electric power generation project (the "ProjecY') to be �...,..a..a :r n...-,a,.., r,....... � i��a..a c �..�,... �OND Date (Not earlier than Construction Contract Date): September 13, 2016 Amount: 100% of the Contract Price Modifications to this Bond: CONTRACTOR AS PRINCIPAL Company: (Corporafe Seal) � None � See Section 16 SURETY COmpany: (Corporate Seal) Federal Insurance Company Signature: Signature: _ Name and Title: Dan Shelledy, �DM Attorney-in-Fact Name: (Any addifional signatures appear on fhe lasf page of fhis Pe►formance Bond.) (FOR INFORMATION ONLY— Name, address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (Architect Engineerorotherparty): _.��.. �. _...... Therlan uage cooperation with the Amencan Instltute of Ar�hitects (AIA) by the Chubb Gmup of fnsurence Companies. g in this document conforms to fhe language used in A/A Documenf A312�+- 2010. Form 15-oz-o573 Fe� (rev, �-10-1) 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. 2 If the Contractor performs the Construction Contract, the Surety and the Contractor shall have no obligation under this Bond, exceptwhen applicable to participate in a conference as provided in Section 3. 3 If there is no Owner Default under the Construction Contract, the Surety's obligation under this Bond shall arise after: .7 the Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default. Such notice shall indicate whether the Owner is requesting a conference among the Owner, Contractor and Surety to discuss the Contractors performance. If the Owner does not request a conference, the Surety may, within five (5) business days after receipt of the Owner's notice, request such a conference. If the Surety timely requests a conference, the Owner shall attend. Unless the Owner agrees otherwise, any conference requested under this Section 3.1 shall be held within ten (10) business days of the Surety's receipt of the Owner's notice. If the Owner, the Contractor and the Surety agree, the Contractor shall be allowed a reasonable time to pertorm the Construction Contract, but such an agreement shall not waive the Owners right, if any, subsequently to declare a Contractor Defauit; .2 the Owner declares a Contractor Default, terminates the Construction Contract and notifies the Surety; and .3 the Owner has agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. 4 Failure on the part of the owner to comply with the notice requirement in Section 3.1 shall not constitute a failure to comply with a condition precedent to the Surety's obligations, or release the Surety from its obligations, except to the extent the Surety demonstrates actual prejudice. 5 When the Owner has satisfled the conditions of Section 3, the Surety shall promptly and at the Surety's expense take one of the following actions: 5.1 Arrange for the Contractor, with consent of the Owner, to perform and complete the Construction Contract; 5.2 Undertake to perform and complete the Construction Contract itself, through its agents or independent contractors; 5.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and a contractor selected with the Owner's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Section 7 in exCess of the Balance of the Contract Price incurred by the Owner as a result of Contractor Default; or 5.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the circumstances: .1 After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is determined, make payment to the Owner; or .2 Deny liability in whole or in part and notify the Owner, citing the reasons for denial. 6 If the Surety does not proceed as provided in Section 5 with reasonable promptness, the Surety shall be deemed to be in default on this Bond seven days after receipt of an additional written notice from the Owner to th�� Surety demanding that the Surety perform its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety proceeds as provided in Section 5.4, and the Owner refuses the payment or the Surety has denied Rt�bility, in whole or in part, without further notice the Owner shall be entitled to enforce any remedy available to the Owner. 7 If the Sure9y c:lc�cts to act undor Seclion 5.'I, 5.2 or 5.3, then the responsibilities of thc� 5�n�ety tu lhe Owner shall not be greater than those of the Gonlr�ctor �.mdor lhe Construction Contract, and the responsibilities oi tho Uwn�r lo tho Surery sh�ll not be greater ihan those of the Owi'�er undc:r the Canstruclion Contract. Subject to commitment by lhe Owner l� p�y tho 13�lanco of the Contract Price, the Surety Is obligated, wiihout duplication, for .1 the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; .2 additional legal, design professional and delay costs resulting from the Contractor's Default, and resulting from the actions or failure to act of the Surety under Section 5; and .3 liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by delayed pertormance or non-performance of the Contractor. z _ _�� _.�.��. _ __ _ __�-.-�. Printed in coopemfion wifh fhe Amencan Instltute of Ar�hitects (AIA) � 6y the Chubb Group of Insurance Companies. The language In this document conforms to the language used in AIA Document A312TM�- 2010. Form �s-o2-oe�s FEo (rev, �-ta1) 8 If the Surety elects to act under Section 5.1, 5.3 or 5.4, the Surety's liability is limited to the amount of this Bond. 9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract, and the Balance of the Contract Price shall not be reduced or set off on acwunt of any such unrelated obligations. No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs, executors, administrators successors and assigns. 10 The surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. 11 Any proceeding, legal or equitable, under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two years after a declaration of Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 12 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears. 13 When this Bond has been furnished to comply with a statutory or other legal requirement in the locatlon where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirements shall be deemed incorporated herein. When so fumished, the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 14 DEFINITIONS 14.1 Balance of the Contract Price: The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made, including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. 14.2 Construction Contract: The agreement between the Owner and the Contractor identified on the cover page, including all Contract Documents and changes made to the agreement and the Contract Documents. 14.3 Contractor Default: Failure of the Contractor, which has not been remedied nor waived, to perform or otherwise to comply with the term of the Construction Contract. 14.4 Owner Default; Failure of the Owner, which has not been remedied or waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. 14.5 Contract Documents: All the documents that comprise the agreement beiween the Owner and Contractor. 15 If this Bond is issued for an agreement between a Contractor and subcontractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. _ __ _ _.. _ Printed in cooperaflon with the American Institute of Arohitects (AIA) by the Chubb Group oi lnsurance Companies. The language !n fhis document conforms to the language used In A/A Document A312�- 2010. Form 15-02-0573 FE� (rev. �-to-�) 16 MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: (Space is provided below for addifional signatures of added parfies, other fhan those appearing on the coverpage.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Sea!) Company: (Corporafe Seal) Signature: _ � Name and Title: Dan Shelledy, BDM Address: W�R7SILl1 NORTH AMERICA, INC., 11710 North Gessner Road, Suite A Houston, Texas 77064 Signature: .� Name and 7itle: Address: -__ Printed ln cooperation with the American Institute of Architects (AIA) by the Chubb Group of Insurence Compenies. The /anguage in fhls document conforms to the language used in AIA Document A312TM• 2010. Form 15-02-0573 FED (rev. 7-10-1) 4 oHUBB CHUBB GROUP OF INSURANCE COMPANIES Surety Department, 15 Mountain View Road, P.O. Box 1615, Warren, NJ 07061-1615 Phone: (908) 903-3485 Facsimile: (908) 903-3656 AIA DOCUMENT A312TM - 2010 PAYMENT BOND Any singu/arreference to Contractor, Surery, Ownerorotherpartyshall be considered plural where applicable. CONTRACTOR SURETY (Name, legal status and principal place ofbusiness): (Name, legal status and address): Federal Insurance Company WJ�RTSILA NORTH AMERICA, INC., a corporation organized and existing 15 Mountain View Road under the laws of the State of Maryland, with offices located at 11710 North Warren, N.J. U7059 Gessner Road, Suite A, Houston, Texas 77064 OWNER (Name, legal sfafus and address): CITY OF DENTON, a home-rule municipal corporation organized and existing under the laws of the State of Texas, with offices located at 215 E. McKinney St., Denton, Texas 76201 CONSTRUCTION CONTRACT Date: 09/13/20 AmOullt: 100% of the Contract Price Description (Name and location): An approximately 225 MW gross nameplate capacity natural gas-fired electric power generation project (the "ProjecY') to be located in Denton, Texas, United States. BOND Date (Not earlier than Construction Contract Dafe): September 13, 2016 AmoUnt: 100% of the Contract Price Modifications to this Bond: � Norie [� See Section 18 �� CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: Federal Insurance Company Signature: ___ Name and Title: Dan Shelledy, BDM Signature: Attorney-in-Fact Name: (Any additional signatures appear on the last page of this Payment eond) (Corporate Seal) (FOR INFORMATION ONLY— Name, address and telephone) AGENT orBROKER: OWN�R'S REPRESENTATIVE (Architect, Engineerorotherparfy): _..... _ ....._ � __ _ ,� 1 Pnnfed !n cooperetion wlth fhe American Institute of A►chitecls (AIA) by the Chubb Gmup of Insurance Companles. The fanguage in this documenf conforms to the language used in A/A Document A312TM- 2010. Form 15-oz-os�q FEo (rev. �-10-1) 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the pertormance of the Construction Contract, which is incorporated herein by reference, subject to the following terms. 2 If the Contractor promptly makes payment of all sums due to Claimants, and defends, indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or entity seeking payment for labor, materials or equipment furnished for use in the performance of the Construction Contract, then the Surety and the Contractor shall have no obligation under this Bond. 3 �f t�er� i� ctc� t�wnsr C►�f�ul� un�er ih�a C�nstt'�ction Contract, the Surety's obligation to the Owner under this Bond shall �ris� aFker th� �v�+��s' h�� �tra��tiY nc�t���d tfi�� �ontractor and the Surety (at the address described in Section 13) of claims, d}�m�nds, li$r�s �r s���a �gainst th� {)wr�er �ar the Owner's property by any person or entity seeking payment for labor� r��t��'ia�s ar �qt��ptr��r�� f�rnished fur a�se �n t}�e performance of the Construction Contract and tendered defense of such c4�im�, d�r�ar�ds, Ii�r�� or ��wts t€� t�� �+�r�tractt�r and the Surety. 4 When the Owner has satisfied the conditions in Section 3, the Surety shall promptly and at the Surety's expense defend, indemnify and hold harmless the Owner against a duly tendered claim, demand, lien or suit. The Surety's obligations to a Claimant under this Bond shall arise after the following; 5.1 Claimants, who do not have a direct contract with the Contractor, .1 have furnished a written notice of non-payment to the Contractor, stating with substantial accuracy the amount claimed and the name of the party to whom the materials were, or equipment was, furnished or supplied or for whom the labor was done or perFormed, within ninety (90) days after having last perFormed labor or last furnished materials or equipment included in the Claim; and .2 have sent a Claim to the Surety (at the address described in Section 13). 5.2 Claimants, who are employed by or have a direct contract with the Contractor, have sent a Claim to th� Surety (at the address described in Section 13). 6 If a notice of non-payment required by Section 5.1.1 is given by the Owner to the Contractor, that is sufficient to satisfy a Claimant's obligation to furnish a written notice of non-payment under Section 5.1.1. 7 When a Claimant has satisfied the conditions of Sections 5.1 or 5.2, whichever is applicable, the Surety shall promptly and at the Surety's expense take the following actions: 7.1 Send an answer to the Claimant, with a copy to the Owner, within sixty (60) days after receipt of the Claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed; and 7.2 Pay or arrange for payment of any undisputed amounts. 7.3 The Surety's failure to discharge its obligations under Section 7.1 or Section 7.2 shall not be deemed to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a Claim, except as to undisputed amounts for which the Surety and Claimant have reached agreement. If, however, the Surety fails to discharge its obligations under Section 7.1 or Section 7.2, the Surety shall indemnify the Claimant for the reasonable attorney's fees the Claimant incurs thereafter to recover any sums found to be due and owing the Claimant. ^ .�._ _ -�___ __ __ - Printed !n cooperatlon with the American Institute of Archifects (AIA) by the Chubb Group of Insurance Companies. The language !n this document conforms fo the language used in A/A Document A312TM- 2010. Form 15-02-0674 FED (rev. 7-10-1) 8 The Surety's total obligation shall not exceed the amount of this Bond, plus the amount of reasonable attorney's fees provided under Section 7.3, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. 9 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the perFormance of the Construction Contract and to satisfy claims, if any, under any construction performance bond. By the Contractor furnishing and the Owner accepting this Bond, they agree that all funds earned by the Contractor in the performance of the Construction Contract are dedicated to satisfy obligations of the Contractor and the Surety under this Bond, subject to the Owner's priority to use the funds for the completion of the work. 10 The Surety shall not be liable to the Owner, Claimants or others for obligations of the Contractor that are unrelated to the Construction Contract. The Owner shall not be liable for the payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligations to make payments to, or give notice on behalf of, Claimants or otherwise have any obligations to Claimants under this Bond. 11 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. 12 No suit or action shall be commenced by a Claimant under this Bond other than in a court of competent jurisdiction in the state in which the project that is subject of the Construction Contract is located or after the expiration of one year from the date (1) on which the Claimant sent a Claim to the Surety pursuant to Section 5.1.2 or 5.2, or (2) on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract, whichever of (1) or (2) first occurs. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 13 Notice and Claims to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the page which their signature appears. Actual receipt of notice or Claims, however accomplished, shall be sufficient compliance as of the date received. 14 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be perFormed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished, the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 15 Upon request by any person or entity appearing to be a potential beneficiary of this Bond, the Contractor and Owner shall promptly furnish a copy of this Bond or shall permit a copy to be made. Printed in cooperaUon wifh fhe American /nstltute of Archltects (A/A) by the Chubb Group of /nsurance Companles. The language in fhis document conforms to the language used In A/A DocumentA312�M• 20f0. Form 15-02-0574 FED (rev. 7-10-1) 16 DEFINITIONS 16.1 Claim. A written statement by the Claimant including at a minimum: .1 .2 .3 .4 .5 .6 .7 .8 the name of the Claimant; the name of the person for whom the labor was done, or materials or equipment furnished; a copy of the agreement or purchase order pursuant to which labor, materials or equipment was furnished for use in the performance of the Construction Contract; a brief description of the labor, materials or equipment furnished; the date on which the Claimant last pertormed labor or last furnished materials or equipment for use in the performance of the Construction Contract; the total amount earned by the Claimant for labor, materials or equipment furnished as of the date of the Claim; the total amount of previous payments received by the Claimant; and, the total amount due and unpaid to the Claimant for labor, materials or equipment furnished as of the date of the Claim. 16.2 Claimant: An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish labor, materials, or equipment for use in the performance of the Construction Contract, The term �I��rn�r�t �is� ��c�udes ar��+ individual or entity that h�� ri�Yttfu�ly �ssertet� � cl�irn un�er an appl��a�le �aecha�ic's I�e�t t�� s�r�ila��' stst�ai� ��inst t6�� real property upon whi�� th� �'rcaject is �o��ed. "fh� it�ter�t of this ��n� sh�k! �� �v irtc�ta�e virit�vut firi`�it�ti�ar� 4�r t�r� terms "labor, materials or ec�uip�n�n#" th�it part �� w�t�rm +g�s� power, iigh:k„ 1�eat, �i# ��sQlir�e, �eCe�sh�an� s�rr�ti� car re�t�@ equipment used in the �c�r�sTruct�a� C€��tr��, archif�ctur�l �nd engin�r[r�� �ervi�es r���ire� for performance of the work of the Contractor and the Contractor's subcontractors, and all other items for which a mechanic's lien may be asserted in the jurisdiction where the labor, materials or equipment were furnished. 16.3 ConstrucYion Contract: The agreement between the Owner and the Contractor identified on the cover page, including all Contract Documents and all changes made to the agreement and the Contract Documents. 16.4 Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. 16.5 Contract Documents. All the documents that comprise the agreement beiween the Owner and Contractor, 17 If this Bond is issued for an agreement between a Contractor and subcontractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. �w. _ __,. 4 Printed !n cooperafion with the American Institute o1 Architects (AIA) by the Chubb Group of Insurance Companies. The language in this document confonns to ihe /anguage usedln AIA Documenf A312�- 20?0. Form 15-02-o5�a FED (rev. 7-10-1) 18 MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: 18.1 "Claim notices for FEDERAL INSURANCE COMPANY must be sent to the following address: Chubb Group of Insurance Companies, 60� Independence Parkway, Chesapeake, Virginia 23327, Attention: Surety Support Team." (Space is provided below for addifional signatures of added parfies, other than those appearing on the cover page.) CONTRACTORS AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Signature: �,� Signature: � Name and Title: pan Shelledy, BDM Name and Title: Address: Address: WARTSILA NORTH AMERICA, INC., 11710 North Gessner Road, Sulte A Houston, Texas 77064 Prinfed in aooperafion with the American Institute of ArGhitects (A/A) by the Chubb Gmup of Insurance Companies. The language in this document conforms to the language used in AIA Document A312�+- 2010. Form 15-oz-os�a FEo (rev. 7-10-1) EXHIBIT 4-Deliverv Schedule; Deliverv Liquidated Dama�es I. ENGINE DELIVERY GUARANTEE Supplier (1) guarantees Documentation delivery as set forth below and (2) guarantees Generator Set Deliveries for all six Genet�ator Sets in Engine Hall 1 on or prior to the date set forth in the Project Milestone Schedule for Project Milestone with Activity Code A1880 and (3) guarantees Generator Set Deliveries for all six Generator Sets in Engine Hall 2 on or prior to the date set forth in the Project Milestone Schedule for Project Milestone with Activity Code A1890, and (4) Other Equipment Deliveries on or prior to the respective deadlines for completion of the Project Milestones with Activity Code A1850, A1860, A1870 as set forth in the Project Milestone Schedule. • II. DELAY LIQUIDATED DAMAGES IIL APPLICATION AND PRORATION OF LIQUIDATED DAMAGES Auxiliary delivery Liquidated Damages to apply to the following equipment, and prorated for the number of modules late: Radiators EAM (Engine Auxiliary Module) EGM (Exhaust Gas Module) SCR (Selective Catalytic Reduction) `I° is d��m��n�nt �end �eny �tt�� �n�s t��ret� ay ��e�ta° infor a�ron t�m�t ►s cc�nfid�ntm�al, �� �re:mall�- ��nsitiv�, prca�t�i�t�ry9 �nd/�r p���li� �sw�r utit�ty �� �et►��v� ��d fmrm�nci�l iemf�e° �tm�n imm �e�ccarciance �i�h t�� r�visi�mms �f T'�x�es (��v�rem en� C�d�, Secti�n 552.1 l, 552.104, 552.110 ��mc�1�r 552,133, �ne3 �y be p�°����t�d f�°o meec�ui�°ed p�lrfi� a�mscl�samr�m IV. PAYMENT OF LIQUIDATED DAMAGES Supplier shall pay Delay Liquidated Damages to Buyer on or before the fifteenth (15th) day of the month following each month in which a delay occurs. Payments shall be made by wire transfer of immediately available funds to an account designated in writing by Buyer. V. EARLY ACCEPTANCE Requirement Incentive Cap ' (as % of Contract price) �Early Acceptance _�M VL PAYMENT OF EARLY ACCEPTANCE Buyer shall pay Supplier for achieving early Acceptance. Payment shall be made on or before the fifteenth (15th) day of the month following each month in which an early Acceptance occurs. Payments shall be made by wire transfer of immediately available funds to an account designated in writing by Supplier. T°�mis claac:u �rat �am�c� ��ay att����nn�nis t er��� �y ce�ntain inf�a� �t►��m that is c�nfi �n�m�e[, �� mnercm�wly,. s�eesmti�e, �r��ri���ary� a�clJ�r ubl�c° �w��r a�tili�� c� �etitiv� �mmcl f�n�nc►a1 infor �tiama in �c���etammc� °t � e�arc�visa��es �f'1'ex�s C����rn �n� �c�d�, S��:ti�n 5S2B101, 552a1 4, 552.110 andlor �52.133, ��cl ay k�� �°�t��ta°d fr��n r�qemim°ea� �nbl°mc d°ms��c�s��t°e. 2 EXHIBIT 5 PERFORMANCE GUARANTEES AND PERFORMANCE LIQUIDATED DAMAGES As provided in the Agreement and specifically outlined below, the Equipment's Performance Guarantees are as provided below, as corrected for by the attached derating curves, Attachments 1 and 2 to this Exhibit 5. The summary of Performance Liquidated Damages described in this Exhibit are as follows: �u.,.. _ . ... . _ ., , . .... — .. — .._. ,..w... ..... Reguirement Liquidated Damages Cap (as % of Contract price) � .�..... �.a� ���. ,r� � ��._,�.�. � ��.�. we Umt Electric Output 10% r� ._ ��.m.w�_ �m_ � ._ _ _ ._ Unit Heat Rate 10% � Exhaust Emissions f� � Must Meet , ��_ _,�. _ � ,��.��.�_. --..� � �_ _ � Minimum Turndown , Must Meet ��_..... � �. �� _. �� Lubricating Oil Consumption � l0% ....,. �.. _. ._ w , .,.. Ammonta Consumption 10% ......_._. ��.._ _ .�_ — �,..�. � � _ _ me ._... �. e Noise Must Meet ���_ � _ _ �.._..._. .. _ � � N. Reliability Factor ��„ _ _ 10% Supplier hereby guarantees the performance of the Equipment as follows: A. Unit Electrical Output Guarantee and Unit Electrical Output Liquidated Damages Unit Electrical Ou�ut Guarantee. Once the Start-Up Certificate has been executed pursuant to Section 5.3.2 of the Agreement as to any Engine or set of Engines, Supplier shall conduct a four hour Unit Electrical Output test on the Engine(s) in accordance with the Final Test Procedure and Section 5.3.4 of the Agreement ("Unit Electrical Output Test"). Supplier guarantees that the average four hour aggregate Unit Electrical Output of all Engines or any set a�'����i�Y�� recorded �lt��•ir�� the Unit Electrical Output Test shall be no less than an average of per engine, corrected as necessary in accordance with Exhibit 8 Performance Test Guidelines and included attachments to this Exhibit 5("Unit Electrical Output Guarantee"). Unit Electrical Output Liquidated Dama�. If the average result of the four hour Unit Electrical Output recorded during the Unit Electrical Ut�� ��t Test is less than the Unit Ctle�t�iu�� t��Qi c�t. C,tr�r•��o�t��, �������li�:�° �;i����l �3��y ����ycr _ _ g°�u�• �Vt�� i��lr�v� i1�� [��tit ! af����3ic;�rl [�l��t`��r1: ±G���r�niee �`<�rri� �I�ctra��� tl�at _ t Li uidat�� 1��7a �s"� pet nur���r �af ei���r�e� be��t� t�st�c�g pr�vi��� �ac�w�v�r, t�� LJ�€t F�e�t����� d�uip�at �,ic�uid�te�i �afn���s s��lf n�at �x�e�� ti�e ���l�t� ��t %ar�h i� the Agreement, either individually or in aggregate with other Liquidated Damages. B. Unit Heat Rate Guarantee and Unit Heat Rate Liquidated Damages is �� ent � a y�tt�c e t�reto ay �a�t�i i far ation t�t is ca e ti�l, co er�ially-se sitive, ro ri 4 a �e° lic o er ut[lity �o etitive �ro n�n� f f far ailo i$ccor an�e it @� ravisiarc� mf "!°exas overn ertt Co �, c�ia 2.1 1, 552.1 d, 552.ifl a/mr 552.fl33, �n ay e rotecte frm r ire u tic iselosexre. L��it II��.t Itat� �uar�'��, �nc�� t�ae 5�.�`�g�i�� �-':�rli f ic��ai:� 1���� lae�;�� c��.��t�te�l ��tkr:�����A�t tc� ��ctti�n� 5��.� c�f`�e �,�r��n��� as t�a �y �r��i�a� c��° �ci ��i' I�r��;ir��;�, ����a�l �u�� �1���1 i �c����A���� � f�u� hc�u� U�i� H�ai �at� ie�t c�n t�� Ew���i��(�� i�� ��c;cca�•�f�E���: v��ti� tl�e �����a�i ''I'�s� l�r�aced�re anc� Se�t�c�n .�.3.� �`°t,9��i� i;l��� k��tu f'�.:�t"). ������lic:r �;��n��a��tu�� ti���t �l�c� av�r�;�� ��u� h��r Unit ��eai �.�te �rc��� �iurirs� t�� l5�it I�Ieat i��t� '�'�st sha�� b� rr� ���ter th�n �T[�JkVV�-���V, �c�art���t�c� �.� ���r.,�ss�ry �� �r�+�rd�t��� vaith �x[�iEr�t 8�'�rtc�r���� '�est C�ui�elines �n�i ih� ���lz�d�� a��h�n+����� t� i1a�s Fx�il�i� 5("Cfn�t H�at �at� +�u�r�nt��"'�. [Jr�it �e�i R.�.�� �i�ui�d����i da����s. If �tc fc�ur �c��r �a�g�e��t� 1Jnit I��est l�te rec�rc��d �urir�� t�� i3rai� ���a� It�€i�'���i is rn�re tha�� t�� i�lni� He�t R��� �u�����e�, ���pti�r sh��l �ay ���yer �`�r eacl� �"���L11kWh t��fi �s ��ave i�� �rsNt H��t �te �uarr���tee �"L��aAt ! �exi� ����� i i����g�t�c� �7G�����t��,��, ��r ��ur�'b�r c�f �n�ir�� ���ei��� t,�st��l> prar��d�c�g l��vv�ver, t�ai i.F�ii %�c�.t ��t� �.�qui��i�i �arn���s ��►�1� n�t �x���d tk�� �"r��it� s�i �`c��t� in ���� A�����e��t, �ith�r in�ividualiy r�r i� ��r����� w�t� at�er Liquidated Damages. C. Exhaust Emissions Guarantee and Performance Incentive �xhaus� ���^��i�r�� C����r�i�iee. Q��c� �h� �tar�tmll�� C"e�•[iii���t� 1���� C����� �x����t�c� g���������i�at �c� '�ectic�r� �.3.� c�f t�e �.g���n��t a:� t� ���z� �����iw�u ���� ��.� c��` li���ii��,:�. ;��A����ii�� �i���ll cc��d��ct a� ����t�st �rnissi�ra� test �� �h� ���irx�{�} i�� ������•c#������ w�t1� ���� =i'��� I�c°cac�ci���°�� �n� ����ic�� 5.�.� �rzEn�i�si��a� `�'�s�"�. ',������li��• �����i�•n��ie.�;; �l��.t c����•���� ���c li,riati;�s������ '1'�st, i�� ea����st er�rais�i�n l��e�s frc�� ���l� I��.���i��s:� �I��lI ��� r�s� �����t��� tl�<�rr tl�� lcv�l� s�;t �'�rtCx i�a �i;���rc��r�t � t+� til�is �:aci�i�ai 5, �� �ro���s���•�c� �i7 �r>���c�cl �a��� ����t�r°, w�til� 4i1�1's�i�t�; ���e Pz�c�ject U�s �s ��awi�ec� �"c+r ��n �xhibit'i �"Exi��,u�t ��ni�s��r�� �r.�ar��t��°'�. �'�rf�r��z�rc� I����nt�v�. Shc���i� t�� �°����t� ca� t%e G���issic��� Test ���raanstr��� ��h���� er�t�s�ic,�s ��vels �,r� l�s� t�ar� ��� Fx4�a�tst �r-���sic�n� ���r�n�e�, �3�ayer �'��{t �aay ��������1• i�� �'�r�'ar�a���� ��nus �s list.�d bel�rrra fc�r e��l� �����tar�t, �n � ����ds p�r �a�ur �a��:�, av�r���d �av�j• �t�e [J��its, ��r�sr�ted f"�r i��acti�ns of a pound per hour. _ _— _ __ . Pollutant Performance incentive __ __ _ NOx VOC .._ _ _ -- - D. Minimum Turndown Mia���nu�n_"�urn�i�w� �u�rar�ie�. t���� �he S���rt��J� �+��i�ic��� 1��� be�t� �������� ��r��a�� ��� �ec���n 5.�.� ��'�t�� ��r��s�e�� �� � ar�y �n�in� �r se� c�f I���i�cs� �xip��ier �Ix�ai� c��ciu�t � �n�� ���r �ini�a�isn T��r���wr� 'I'�st i�� �.cc�r�an�ce �v�tlz th� `�"e�t Procedures and Section 5.3.5 ("Mit�i�nurn ""�"ur�d�v�°n 'F��1:"). �uppi1�r �i��.sr��t��� ����� during the Minimum 'I�rndown "�e�i, ���'� ������ ����� �'�������'�� ��`'� �`�'�'�� �`� operate at or below an average of /� �����k�`���� ��P�"���YF �� ������'� �� �� '�� ��� "�"I�i� cl�c�e�ent and ���y ai���l��r��n�� il�cr�t� r��� contsin iro���'•��sW�[�� #ha�i ia ������c1�is�1, co erciatly-sensitive, pe°���4°i�i�p�•�, an /or ����Zt� �aor��r ��i��i� �r�����k��ive and �in����i�ai �s�fa���y���1��u �1� �c���°�ance with t e rovisions of `�'��s�s �a�vc,rn ent ��d�, �e��i��� ��id�i�1� �;�2•��4' S52.1��F r�i�dlur ���.13�, ��t�l wz���° �� protecte fro re uired ublic disclosure. 2 generator terminals during the one hour test, while meeting the Exhaust Emissions Guarantee. E. Lubricating Oil Consumption L���ric��ir� t,7i� ���st�n� `��c�n '�est. [�n�e ih� Start-L�� +�e�t��ic�te �,�s b�er� ea�ecut�d purs����t t�r ���i�� �.�.� �fti�+� A��•ee�n��t �s to any ��gi�� �r ��t �afEr� i�s�s, �upplie�r st�a�� ��ncauct �. �.�l���c���,n� +��1 ��nsur��tic�r� Test ca� nca ��ss tt�� l�ca�rs c�n the �n�r�s�(s) l� �cc��at�� vvii� thc Fin�i Test Procedure and Section 5.3.5 of the ,���������� (�s�.,�'}��ic�tir�� (]�I �c�nsurrn�tiar� Test"). Supplier guarantees that during the �,��,wic�t�r�g �,Ni �cs�s�npt�ca�� Test� t1�e ��gines shall demonstrate an average Lubricating �'� ,��,�����pt��� ,����� ���� ��� L��" gallons per hour per engine. `�`f�� ��t�ric��in� C7il G�r���rt�ti�� �"e�t is �rr��'�era�ly p���`arin�� ec�w�c1��°r�a�tly �v�t� �h� �a��e� p�r��aa�n���� te�ts, i� ��t�ic�a�a� �u�ri�� t�e ��li�hil��� T��c�c�r Te�t, ���i ��a�y �e �er�'�r�n�d i� �n��tiple �tia��s, �n+�tka t��e ��r� t���rs �g�r�����d. 'F�� r��,s�� �`�zJ t�i� i� l��t tl�e l�br�c�ti�� �il ��n���n�ti�n �•�te 1� at � r��a�iv�i� ��� [+�v�I �rad � ic�n� p�ricrc� crf �p�r�t���; h��r� vv�i� pr�rvide a greater amount of consumption which can be more ���1(y �,����a��i, �i� te�p�rature in the sump must be measured and corrected for at ��� I�����r���� ��i� �n�i c��tl�e test, as well as any points in between. The total volume of lubricating oil used by each engine during the test period will be divided by the run hours during the test period by each engine to determine the lubricating oil consumption rate in US gallons per hour. L�bri�at' : t�i C�t�su� t�a�� �i �id���d ����� �s. ��' t�1� ��+er��� Lubricating Oil � • � � � ' � is more than the i �%r'�� iM �t�i �c������ �� y� �� �� ���� �� pp���e �sh ll pay �z�i��� �"��t ,-, y per gallon per hour above the %..t��r�c�,t��g t�i1 �c���su��i�c�:1 t��aar�r�l�c ��`L��rl����s�.�-�n �� ��! .C'c�r���rr�� �t k�t���...1 �����€9;��.c��_ IJ����������k'�> per engine(s) being tested; provided, however, that Lubricating Oil Consumption Liquidated Damages shall not exceed the limits set forth in the Agreement, either individually or in aggregate with other Liquidated Damages. Fw Ammonia consumption Ar�at�r�ni� G�gxs�i�� ti�an 'T'�st. Cir�rw.+� ���+� �tar�-Up Certiiicate has b��� exeu�i��d �urs��r�i � �e�ti�n 5.�.� ��f ��r� A.�r�e����er�t � icr �.t�� Engine or set of ��agirt�s, '�u�a�li�r �i�a�ll c��d€�ct �n Ar�rncrnia ��s����t��� Test �� no less than � ho���� �r� ��� L��in��} i� accordance with the Final Test Procedure and Section 5.3.5 of the Agreement �«�����,���� �������p����r� '�'�;st�"}, ��i��lier guarantees that during the Ammonia ����E����i�� ����f �� ������y�� sh�i[ ���qnstrate an average Ammonia Consumption of �� ��y� ���� p�ur�d� pf ./r� �qr��ous �mmonia per hour per engine. "�'�n�� �€r�u e t a �aw�� �ttc��������t� �h�r�b�r ���+y cQntain infar Ation t at ts conf e tial, co ercially-sensitive, ��r����°i�t��°y, an /or �u#�1�� �n��e° �ti:i!`sd� ��s�r���et��ive a ancial intor atian in accor ance it t e rovisio s of �"c��� 4p�r��rn ent �:����, ��u����l� ���•���� ���•�U4, 52.11 an (or 5 2.133, an �y e rot te fro re ire u i4c isclasure. The Ammonia Consumption Test is preferably performed concurrently with the other performance tests, in particular during the Reliability Factor Test, and may be performed in multipie phases, with the run hours aggregated. The total volume of ammonia used by each engine during the test period will be divided by the run hours during the test period by each engine to determine the ammonia / urea consumption rate in pounds per hour. Ammonia Consumption Liquidated Dama�es. If the average Ammonia / Urea Consumption recorded during the Ammonia �'����:��������ti��� Test is more than the Ammonia �a�n�a�mpti�� Guaxantee, Supplier shall pay Buyer ��� per pound per hour above the Ammonia Consumption Guarantee �<��������,� ��,�����p���� �,}�����t,�� j�����'��, per Engine(s) being tested; provided, however, that Ammonia Consumption Liquidated Damages shall not exceed the limits set forth in the Agreement, either individually or in aggregate with other Liquidated Damages. G. Noise Guarantee Test Noise Guarantee. Supplier shall conduct a noise test in accordance with the Product Conformity Tests procedures for each Engine Generator during the factory performance tests ("Noise Test"). Generally, for all components PTC36 states for the "r�e�r ��Id �und �r��sure level test" an uncertainty of � dB(A) for overall level. ISO 961� �r��! I�� +�7�I8 it�di�ate uncertainty of � dB(A) for overall level in the "survey level" test, Fc�r t�� �ur��se of the present guarantees, a general uncertainty of� dB(A} shall be applied. Source � Noise Guarantee � Method/Location � Test g' _ � � ) Each En ine Generator dB A Measurement for ' � dB(A) (Exclusive of noise due (A-weighted Sound one Engine to sources outside of Power ' Generator � � according to � Wartsil� s scope of Level supply.) � at engine test run. �� . �.� _ � e�.P. w__ .� �w. �l�le 1 The objective of the Noise Test is to verify that the noise produced by the Equipment is equal to or less than the Noise Guarantee in Table 1. Measurement results will be corrected for background noise in accordance with the referenced standards. Measurement results will be presented in 1/1 octave band levels on a frequency range of � Hz with overall A-weighted level. The following test information will be included: • Measurement equipment T ts oc e t a a y att�c e ereto ay co tai i tor at[on t at is canC e t[al, co ercially-se sitive, ro rietary, !or lic o er utili co etitive a a cial i[or �tio in accar ance it t e rovisto s of Texas overn ent C e, Section 552.1 t, 552.1 4, 552.11 �n /or 2.133, a ay e rot te o re uire U I�C �9C�09 Y@. 4 . • Calibration certificate traceable to international standards • Date and time of the measurements � Meteorological conditions (rain, wind, etc.) • Data on,object being measured (component load, etc.) A minimum of one engine will be selected for measurement. Measurement shall be in accordance with _ as applicable. Measurement will be performed at W�rtsila test run premises. H. Reliability Factor Test Reliability Factor Test. Once the Acceptance Certificate has been executed pursuant to Section 5.3.4 of the Agreement, the � hour Reliability Factor Test will be conducted to determine the overall Reliability Factor. The Reliability Factor test may be conducted concurrently with other tests, and will use the same correction factors as applicable. The Reliability Factor tests may be conducted with all or some •Units in service within the transmission system limitations for dispatch of the Project. The Plant shall be operated for a� consecutive hour test at load points set by the plant operators (dispatched electrical output). At any time, if the balance of plant equipment not supplied by Supplier limits the ability of a Unit to operate, that limitation will be excluded from the forced outage rate. The Reliability Factor far each Unit, expressed as a percentage, is calculated as follows: The �ra`e�� I��:l�rif��ii� ,�x ���c��eel as a��t•�;�tttt��;�;, is calculated as follows: The test shall demonstrate that the Project achieves the Reliability Factor Guarantee of �%. Reliabilitv Factor Liquidated Dama�es. If the � hour Reliabil ity Factor Test as recorded during the 1��.�i�al�il�t Factor Test is less than the ��c��F�alai�il Factor Guarantee, Supplier shall pay Buyer per percent (prorated for fractions of percent) below the Reliability Factor Guarantee ("Reliability Factor Liquidated Dama�"); provided however, Reliability Factor Liquidated Dama�es shall not exceed the limits set forth in the Agreement, either individually or in aggregate with other Liquidated Damages. I. Minimum Performance Standards T is ocu ent a a y attac ents t ereto ay co in i for atio t at is con� e tial, co ercially-se sitive, ro rietary, an ar u f[c o er tili co etitive a ` a ci�l i fmr atio i ccor ance wit t e rovisions of exas overn ent Co e, Sectio 2.1 1, 552.1 , 5 2.11 a!ar 5 2.133, an ay e rotecte fro r uir lic isclos . The Engines' minimum performance standards during the Performance Tests shall be as follows: Unit Electrical Output — The Engines' minimum performance standards regarding average Unit Electrical Output shall be no less than _ kWe, measured at the generator terminals, corrected for as described in Section A above. Unit Heat Rate. The Engines' minitnum performance standards regard�g average Unit Heat Rate shall be no greater than - BTU/kWh, HHV, corrected for as described in Section B above. Exhaust Emissions — The Engines' minimum performance standards regarding exhaust emissions shall be to meet the Exhaust Emissions Guarantee, corrected for as described in Section C above. Minimum Turndown — The �ngines' minimum performance standards regarding minimum turndown shall be to meet the Minimum Turndown Guarantee, corrected for as described in Section D above. Noise Emissions — The Engines' minimum performance standards regarding noise shall be to meet the stated Noise Guarantee, corrected for as described in Section G above. Reliability Factor. The Engines' minimum performance standards regarding the Reliability Factor shall be no less than �°f� corrected for as described in Section H above. T is docu ent an any attac en t ereto ay contain infor ation t at is co T ential, ca ercially-sensitive, ro rieta , an /or u Ifc ower utili co etitive an �inancial infor atio in accar ance wtt t e rovisians of Texas overn e t Co e, Sectian 5 2.1 1, 552.1 4, 552.11 an /or 552.133, a d ay be rotecte fro r uire u lic isclaa re. 6 ATTACHIVIENT 1 TO E�iT 5• fa ° u � s���y �rt��M� e��f� t4zer��� ��r �a������� ��a�aa��r��i[�� t��� i� c����ic��n#i�1, ��r������i�al��������1.ir��, r� rt , /�r �aw��l�� �a����° �e���[i� ��a��tip+���i;l�� ���� �i���r����i i�����r��&inxi ir� ����rds�ctc� �ittw f�� ��ra�i����� � x�� a��r � t ��tl�, ���ct�c�n ���.10�v �������#, ����1 �0 ���tm�r ���.��3, �n� ��ay �a� ������mr� �'�•�� ���i�°��3 li� ��r�o ATTACHIVVII�N'T 2 TO EXH�1T 5: T��� ��������t pray���s flue ��s �mi��i�ns, i.e. maximutn average values for emissions measured over ��,��.���g �� ��������� s�y �.���,���, �[���� ����issions are based on the site conditions, gas composition and r�n�������n�ni i��t�a�d� ��c��i�d in �i�is de�cument. Engine: Wartsila� 18VSOSG-B, 514 rpm (constant speed), CR 11.5 �.. ����--- Gas composition: The emissions are valid for following gas composition. It is understood that variations in the gas composition inside this specification will occur and are permitted; however sudden extreme changes in gas te����,rc;�-�tttty°e, ���r�:���M��c +�r �.t�r�y�aca�i�ion are not allowed. ___ _ Other gas parameters according to Wartsila's specification. Aromatic hydrocarbons, silicon based compounds or impurities resulting from the operating and tnaintenance of the gas delivery systems are not allowed. '�'f��� �1�a��a�c�eent an c��y �1��7�.����e��� �l��w'�4� �rtt�y contain i�t�u���at�on tnat is �trrprwatex��wui, comc['erc'u�`y-��=��m=•■�, �r��ri�t��°y, and/or �S�l�l6c �r�s��r �#[�it� �°��n�r�itive an �'wn�w����a� iarformatio�� �r� ��c����lance with the r�vi�i�r�w� oF `l �x�r� Ga��rn ent CFr���, ���ii�n 5�2.i�11, ���. �I�4, 552.1 t€� ��t�l�wr �;52.133, ar'�l �n�ty �s� protecte fro �°�����'�� public isclosure. Lubricating oil quality according to W�rtsil� specifications for gas engines. Flue ���� emiss�ons after emission �:�nf�+n� +���1�'��� at ���s�ciy full ��x =ir�� load: --- � tlsH��r��l ....q kWe��ra4csrl�rt�insls.�..— �' � � -..�. w..,� ,.V �� . � _...�... ._u .� NOx ;3� t*�C)Z�� �n�x �.� �.�.. _ � _..�.�.� �u... �....�..w..� .. ._lb/h mn � � "( 7. ��rc lb/h m �. �... � � �..� _ _� � � .-��,__.� Y � 'IfC1C �tt� C°I I&i)� trn�x lb/h . �. — - ,._�._ .,_ � .� �. � _ � PM10 ��t�tts�]� max lb/h _.._ a..e _ � _..... � .�.�. � .�... � .,,_.._ - ArnMr3t�ni� sli8 far� Nt�I�J�. r�a[ax Ib/h �.,..—......e.-- Correction based .r- - -_n..,._.... ,.r n�t vnr p.�,�aQ;ons: Tim� fic� re��.�t c�r�p�i���� The tir�a� r�e���re� t� r�,�c�� ca��ii���e �'�'it� th� �t���si�a� I�ew���s specified in this document will depend on o�era�iia� c+�nc�iii�t�s ��� an ��ae t����r�tur� ��'th� �ata�y�t system at start. Compliance with emission data in �his ��cu�ne�i r�'ill ���' � n+��`��1 ���� �'��1������ ��� ���er normal conditions be reached within Z Minimum allowed engine load equipped with emission control system is 20% '�'��i� r�a�s�ea��7ent an ��'y �#i��t°��rr��a�i� 4��a°�k� e��ty ca tain int�����i�a� ��a�� i� s�a�wM�r���+�'��{, co ercially-sensitive, pr��rie���y, an !or ����al�� �����r��° ��iw�k� ��rr�p�iMtiae are 3������s�Gs�! �����r��€�L���� i�� �M����'�a ce wlt t e rovisions of °�`���� ��s��r ent ���i�, ��ctiuYe S��.XOi, ���.��4, 2.1�4 ��A�i�r ���.���; �red ��ey �e rotecte fro require lic isclas re. 9 _ minutes from start signal. The emission data in this document are given for stable load operation at the continuous operating loads specified in this document. Measurement methods Emission data provided in this document is based upon the emission measurement methods listed below. Emission data assumes that individual compounds identified above the sensitivity limit, but at concentrations below the lower limit of detection are reported as maximum one-half of the daily lower- limit of calibration. Measurements shall be performed so that minimum feasible detection limits are achieved if this is required for determining compliance with emission guarantees. The flue gas stack emission measurements will be performed at steady operating condition ofthe engine. Prior to the start of the flue gas emission (stack) measurements, the engine shall have reached steady state operating conditions and the flue gas temperature measured after the emission control system shall be allowed to reach normal operating temperature. Suff'iciently long measurement sampling periods and number of samples shall be taken in order to get statistically representative results. To ensure accurate particulate matter (PM10) emission results of 3 samples are to be collected with a minimum sampling time of 1 hour per sample. Based on the judgement of the measurement consultant, the results of individual samples with abnormally high deviation shall be excluded. The plant average result of all the tested engines is calculated from the engine-specific average results. The plant average result shall be used to verify the fulfilment of the guarantee. In case the plant average result is not in compliance with the guarantee value, the engine(s) causing the non-compliance with high engine-specif c average results as per the evaluation and decision by Wartsila, shall be checked and adjusted. The flue gas emissions of those re-adjusted engine(s) shall be re-tested according to the same '�' fs ocu ent and sny attac ents thereto ay contai infor ation that is can�idential, co ercially-se siNve, roprietary, an (or u lic o er tili co pe tive an �inancial i for ation in aecor ance wit t e ravisia s af Texas avern ent Co e, Sectian 552.1 1, 552.1 4, 552.11 an /or 552.133, and ay be protecte fro re uire u lic disclosure. 10 ATTACHIVIENT 2 TO EXHIBIT 5: This document provides flue gas etnissions, i.e. maximum average values for emissions measured over a period of minitnum 60 minutes. The emissions are based on the site conditions, gas composition and measurement methods specified in this document. Engine: W�rtsil�� 18V50SG-B, 514 rpm (constant speed), CR 11.5 �i�a� nnnrii4innc� Gas composition: The emissions are valid for following gas composition. It is understood that variations in the gas composition inside this specification will occur and are permitted; however sudden extreme changes in gas E���i������ttf�°�. ��t•���t►t•� t�� �cF����s�a��t�csra are not allowed. Other gas parameters according to W�rtsil�'s specification. Aromatic hydrocarbons, silicon basecl compounds or impurities resulting from the operating and tnaintenance of the gas delivery systems aze not allowed. Thfs docu ent an any a ac ments t ereto ay contain infor atian t at is canfidentiaf, co erciAlly- nsitive, proprietary, an /or u lic ower utili ca etttfve an tinancial infor ation in accor ance wit t e visions oP Texas overn ent Code, 3ectian 552.1 1, 552, iaa, 552.11 an /or 552.133, and ay be protecte fro required u lic disclasure. Lubricating oil quality according to W�rtsila specifications for gas engines. �'l, �� ��� emissions after emission control ����+�y��� at �t���c� i�uil� ��i�r� load: � � _.. Outnut kWe (Qenerator termmals) � � .�.�_���...____��� �e.__ �,e��.m�.,��. W .�. _.__ NOx (as N021. max �_ lb/h � � . .. �_ � � ___-_� �.w. CO, max lb/h J . ; � , ���.�....�, � ea � VOC as CH4), max lb/h � m._ ���e���. � � ..�...� �.�. PM10 (totap, max ]b/h �_____,_ .. �. � ....._� � Ammoma sLp (as NH3), max lb/h �_ __�- Correction based ., . ., - r on VOC emissions: Time to reach compliance The time required to reach compliance with the emission levels specifed in this document will depend on operating conditions and on the temperature of the catalyst system at start. Compliance with emission data in this document will for a normal start sequence and under normal conditions be reached within T is ocu ent an any attac ents t ereto ay contain i for atio that is con� entiai, ca ercially-sensitive, ro rietery, an /or ublic o er utili co etitive an nancfal infar ation i accor ance wit t e rovisions of Texas aver ent Co e, Sectian 552.1 1, 552.2 4, 552.11 an tor 552.133, and ay be rotected fro re uire u lic isclosure. 9 _ minutes from start signal. The emission data in this document are given for stable load operation at the continuous operating loads specified in this document. Measurcment methods Emission data provided in this document is based upon the emission measurement methods listed below. Etnission data assumes that individual compounds identified above the sensitivity limit, but at concentrations below the lower limit of detection are reported as ma�cimum one-half of the daily lower- limit of calibration. Measurements shall be performed so that minimum feasible detection limits are achieved if this is required for determining compliance with emission guarantees. The flue gas stack emission measurements will be performed at steady operating condition of the engine. Prior to the start of the flue gas emission (stack) measurements, the engine shall have reached steady state operating conditions and the flue gas temperature measured after the emission control system shall be allowed to reach normal operating temperature. Sufficiently long measurement sampling periods and number of samples shall be taken in order to get statistically representative results. `fo ensure accurate particulate matter (PM10) emission results of 3 samples are to be collected with a minimum sampling time of 1 hour per sample. Based on the judgement of the measurement consultant, the results of individual samples with abnormally high deviation shall be excluded. The plant average result of all the tested engines is calculated from the engine-specific average results. The plant average result shall be used to verify the fulfilment of the guarantee. In case the plant average result is not in compliance with the guarantee value, the engine(s) causing the non-compliance with high engine-specific average results as per the evaluation and decision by Wdrtsil�, shall be checked and adjusted. The flue gas emissions of those re-adjusted engine(s) shall be re-tested according to the same T is d re ent and �ny attach ents thereto ay co tai infor atean t�t is ca entiaf, co erciatly-sensitive, re rietary, att /or �e lic o cr utifity co �titive a fna cial ir�for �tion i accar ance wit t e rovisimns of 'Y'exas over e t Cm e, Sectian 2.1 1, 552.1 4, 552.11 am /or 5S2.t33, an ay e tecte fro re uire u lic isclosure. 10 EXHIBIT 6 -INSURANCE Insurance to be Provided by Supnlier. Supplier shall acquire and maintain until completion of the primary warranty period the following insurance coverage: I. Covera�es. {�i) Wc�r��r�� +�c�n����tsat:�on �n� Etr� ics �a°'s Li�bi�it . i��ar€c�r'� Cs��p�a���ti�a� insur,�c� th�ti slaall c�s�f�ren tc� th� l�°ws c�f th� �#at� �af '�'�xa��. �'la+� Waric��'s �vmp�ras�tic�� ��al�cy wil� %� }�rirn�sy ���ur�� ��� na��ca�aiar��r���in� w€t�� r�sp��t �� ��pp�ier ��nd �����tr�ctcar �r����;���s �ir�tly €���,��e# in ���°f�arna�.n�+� v�'r�arl� r��� tl�e �it�. (b) Commercial General Liabilitv. Commercial General Liability insurance (excluding Automobile Liability) providing bodily injury, personal injury, and �t•c� �u�•� cl�a�x� P� �i�l��liC �c�v�ra��„ subject to a combined single limit of � per occurrence. The coverage will include Blanket Contractual, �ta�pli�r's Protective, Products and Completed Operations including Vendor's Broad Form Property Damage and will have no XCU exclusions. (c) �'��a� �r��r�.av� �€t���C,csi��c���cicj I t��taili�v. C.'e��7������3a����ivc� 11tti��N��€�1���� i �����ai9it i���Ei�'���c�, i�t��G�c4i��� �c�v�1•��� 1ir�° �i�Exii�ly �t ���°i;�i���, c�t�� c.��` t17� `�t����al d��•'� t��� r�l' �aw���c�, ndn-owned, lcas�d, ar t�i�•c�� 4tt�i.�t����Gil�� %�� ���;i��"c�i���t��r���. �sl`�1�� wrr��k, ��� ���.c�c�ii��tl �y tl�e laws af tliE State of Texas. 2. Additional Insureds. Commercial General Liability and Comprehensive Automobile Liability coverage specified in this Exhibit 6 shall include Buyer as an additional insured. The liability policies shall contain a"cross-liability" or "severability of interest" clause or endorsement. All the insurance policies shall include waivers of subrogation against all insureds. �. �eliva at �Gct°�if���tes�, �,,, ��s��rectic�n--�i�' P�l�c���. Contemporaneously with the ��,�r�,� ��. �������� �„������� �#�a�I #'u��i�� g�ayer �erti�c�#es of insurance as evidence that p��e����, ��-��+��i��g �� ��q�rir�d ��yera��; ���+� tirni� af insurance are in effect. The �������t�s ���i�l p��ayyd� n€�t les� tk��r� fi�tes�n (15) days' advance notice to be given in wx'it;ir�� t� �r�yer p�i�sr tc� caa�cell�i;ian �;r��`�r�i�a�tiion. II, Insurance to be Provided b Bu er. Buyer shall acquire and maintain until completion of the primary warranty period the following insurance coverage (or may satisfy using evidence of self-insurance): "�"���� cic�����a�w�� �nd ��n� ������or��r�t� I,k�����s ��tay cantai �������rtt�t�un t�i�t �s c��af�ti���o�l, ��r�r��s��°�i���y-��:n��t�vc, ����w��t���, ��adlt�'° ��� lic po er �t�k��y �o����i�iw� ��t� �n�n�ti��, infQr���i��n in �e��r����� vv�tli 9��� �r�avi�itaa�w of ex s cwv�r��7rr��r�t ���1�� ��°t��� ���.1�1, 52.1 , 5 2.11 a/or 2.133, an ay e rotecte fra re i���1 ��1�1i� s���cl��a��°t,. l. Coverages (a) '�i�r���r•'s �c�������s�tiaa� ar�d ��p4ca'�s �,ixt�%l��• Worker's +�+��iper�sati�a�� in€���ance #�,�t ����1 c��%r��a t� t�� law� of the State of �°���, '�'h�'�arke�°'� �:+���p�nst��i�n policy will be primary insurance and noncontributing with respect to Buyer and subcontractor employees directly engaged in performance of work on the Site. (b) �;'+a�°���te�°�i�� +�ia�tert�i ��abili _ , +�c�m��e�'���1 G�r��rat L��bifity insu��a� (ez����zc�i�� i��tc�r��bil� L.ial�ii�tY� }�rcavi�#ir�� bcrdily ��Y;j�ry, �er��n�R in�}�r�, �rtci ��'� �ar�ty �������t�;� Ci�l�ilit ���vc�rp� �c, st��,���t#+� � cv��nb�n�� ��n�le lirna� �y� _ per �e�ur�re�c�. '�ia� cr�verag� r�ill incku�ie B1�r�ke� �`�sn�:rr�ctuaC, Pr�d�c�.� �nd C��a�p1e�� �p�r�ti��as in�luc�iz��; �rc��� �'c�r�n .�'r���rty �����.�,� an� vvilT h�vc ��a �CL7 exclusions. (c) �� ��l�c�r�si�� �ui�rrim�i,i1� L���a�lii�� C't�r�t��G°e���r���v� t�usie��n�bil� �..iHi���i� �����rr����we� �n�l�,�dit�� �c��v�xage F�r {i�bili�y �n� _ _ ��;isin� a�i �ft�te Buy+�r's ���� ��c�w��cl, r�ca���r�vnec�, l���e�, car hir�� �u€s�r��bil�� �`�r p�r�'�ra��n�� �� t�e work, as ������i�-�� �r� the laws of the State of Texas. 2. Deliver�of Certificates. Upon the issuance of the Notice to Proceed, Buyer shall furnish Supplier certificates of insurance (or evidence of self-insurance) as evidence that policies providing the reyuired coverage and limits of insurance are in effect. The certificates shall provide not less than fifteen (15) days' advance notice to be given in writing to Supplier prior to cancellation termination. "i'i�i� a����a�t����i �a�t�l a��� ��t�c.lt������� 1R��ra�i� ���+ c�rtt�w�� I�w�isr��#�c�ra �I��t �� ���iwd��i��ral.� c�r����'r�i�c�aeiiy-����si��v�, �t`+��riet��°�r, �sr�dlt�r` �r�a��i� �c���� u�a��t� c�������ti��vc s�n�1 I��t�nei�d �m��"c�� ti�a� �r� ����r��,���K��� ��#� k�►� pb°r��i;�it���� t�f 7'��a� ��t�e�a������ tC�r��� ����i�sat � a�.i�l, S 2.1 4, 2.11 a tor SS2.133, ay e rotecte fro�t� �°c�,�id^�� I�r�l���� �a��M��ur�.. `a EXHIBIT 6 -INSURANCE I ���������� ��, �,� p��,�i,��� �����_, Supplier shall acquire and maintain until �������},�� ����� ��t��� y�+�ar��ti� �a�riod the following insurance coverage: ( . CoveraEes. (a) '���°��r'� �carn�a��s�ti�n �nd ���l�av��''�,.,Liatsil� , Worker's Compensation it���r���� t�iat ���.�� ���f��'� tc� ti�� law� �a�ih� ata�� of Texas. The Worker's ��n����s�t�c�t� pcl�cy �v�il be primary insurance and noncontributing with ����,�� �� ����p�1�� snc� subcontractor employees directly engaged in �etefor�����e r�f`�+�r�. �a� �1�� Site. �b� ����,�rcia! ��nera� ���.�i���;,,�. Commercial General Liability insurance (�����c����� ,�utc��abi:te �.,iat�iiit�) providing bodily injury, personal injury, and ����� ���� �������� *� ii��a�lic ����+�t•��e, subject to a combined single limit of- per occurrence. The coverage will include Blanket ���at�-�e�;�s1, Supplier's Protective, Products and Completed Operations including Vendor's Broad Form Property Damage and will have no XCU exclusions. (c) C��r►p���l�e��i^�� t����r�vbile Liabi�i . �'���s�#a���l�����iv+� .Aut�sn+�bile l�i���ailit �i€���ra��e, inc.���d"a��� cta�r�ra�� �`�r li�bi�ity �f ari�i�� ��t crf �hs� �����Miei�'s use of �wn�d, nc��n-c�w���, l��s�ati, c�r hir�d �.a�t�nn��rile� f€�r ��i�F�ara������ �f the �rc�rk, a,� rer���r�ed ��,y the la.w� �� the State of Texas. 2. Additional Insureds. Commercial General Liability and Comprehensive Automobile Liabilit�r e�v�a�age s�a���fi�d an �1��� �xl�ibit 6 shall include Buyer as an additional insured. '�'�� l�a�ailit�+ ��iM�ies sha�1 ��ni�rr+ a"cross-liability" or "severability of interest" clause c�R• ��dc�r��s�ae��ti. �4f1 ih� i���ur�r��e policies shall include waivers of subrogation against all insureds. 3. Delivery of Certificates• Inspection of Policies. Contemporaneously with the Notice to Proceed, Supplier shall fumish Buyer certificates of insurance as evidence that policies providing the required coverage and limits of insurance are in effect. The certifcates shall provide not less than fifteen (15) days' advance notice to be given in writing to Buyer prior to cancellation termination. II. Insurance to be Provided bv Buyer. Buyer shall acquire and maintain until completion of the primary warranty period the following insurance coverage (or may satisfy using evidence of sel%insurance): '�'i��� �s'�t�r����j� �►�� ���� �t�����r�e�sts 4i��i•�ic� b�rm�� �����%M� iu�`��`�r►a�ia� t��a�� 'r� �����E�c����i��l, �ts�����°�i�li�-��ar��i#�r+e� ltw����r��et��°y�, ��s�lc�� �uk�l�� I��aw�� u�il�ty �[�r���ii��v� ���ai �r��tm�c��1 irrCa�°m�iir�n it� ��a��'�s���t°� w��ks tk�� ���v�si���c� t�f i"��a� ���+��°�a���:�w�. C;t�ti�� �����r�� 5��.1 �1, 5 2.1 , 5 2.11 a/or 52.133, a ay e rotecte froxra r��p����'�t� ������� �������������• 1. Covera�es (a) Worker's Comyensatian and �mplo,yer's Liabi.litv. Worker's Compensation insurance that shall conform to the laws of the State of Texas. The Worker's Compensation policy will be primary insurance and noncontributing with respect to Buyer and subcontractor employees directly engaged in performance of work on the Site. (b) Commercial General Liabilitv. Commercial General Liability insurance (excluding Automobile Liability) providing bodily injury, personal injury, �att� r���a n��r1 c����i��� F� lit��i l�t r�+�v�r�� ��� subject to a combined single limit of �';h �I�, per occurrence. The coverage will i���Iuc�� Blanket Contractual, Products and Completed Operations including Broad Form Property Damage and will have no XCU exclusions. (c) C�+���re����iv� .��4ca�n�ala�l� ���b�l�i�!. ��mpr���nsiv� 11��t��ra�c�bil� [.��tl�ikii i��;���r�2���:�, inclttclin� c���r��e I`�r tiabi�it� of �ri�in� ��% �f`�Yt� $�yer's t��� a�'�r�+�ed, non-owned, leased, or hired automobiles for performance of the work, as required by the laws of the State of Texas. 2. Delivery of Certificates. Upon the issuance of the Notice to Proceed, Buyer shall furnish Supplier certificates of insurance (or evidence of self-insurance) as evidence that policies providing the required coverage and limits of insurance are in effect. The certificates shall provide aot less than fifteen (15) days' advance notice to be given in writing to Supplier prior to cancellation termination. is oc e t a y attac e ts t ereto y cantai i for tio t t i� co � e tial, ca erci Ily-se sitive, ro rieta , /or lic o er tility ca etitiee f a cial i for tio i ccor ce it t e ravistons of exas over e t o e, Sectio 52.1 l, 2.1 4, 2.11 a!or 2,133, n ay e rotecte fro re ire lic isclos re. 2 EXHIBIT 7-Fuel Gas Suecification PROJECT FUEL GAS �CiMP���`�`i+�►�T Note 1: All values above are in mol%. Note 2: Design values are basis for Guaranteed Performance as provided under Exhibit 5. Propane tmd heavier hydrocarbons composition higher than the Design basis may impact VOC emissions. 1 of 2 "1"i�i� ��t�r�arMa��� a�t� ��y ���i��tx����r�ti t erett� ���,� �:�Yr��isi ia�f�t���t�tio t t is �ta����������ls ��n��t�c��is��ly.. ��rr��i.{v�s, �ar�������4���, �����i�s�• p��ali+� o er �ti�6i� �a�n�g��,�.ati�� a��t� ' ci 1 i��f�rd�ti�s�t�t��� i� t��.�;+��r€����� �it ��r� �r��ti���it��o� �ff � ���� ���aa�rn�e:�t� o e, ����'i��r ���,1���, ����td1 , 552.11 �r�€�1��° ���.���� �r��fl ��i��+ I°�� ��r��d��:���1 �'`�c���� r��puir�d �1��1�� c����{osure. EXHIBIT 7-Fuel Gas Specification 2 oi 2 T is oc e t a a y ac e ts t ereta ay ca tai i for atia t�t is co �i e tial, co ercially- sensitive, ra rietary, a/ar lic o er tili co etitive �i a cial i for �tio i acco ance it t e rovisia s of exas avern e t o e, eciia 2.1 t, 52.1 4, 2.11 a!or . 2.133, ay e rotecte fro re ire u lie isclos . EXHIBIT 8- Performance Test Guidelines I. GENERAL PROVISIONS A. DEFINED TERMS Initially capitalized terms in these Performance Test Guidelines shall have the same meaning as defined in the Agreement. B. PARTIES TO THE TESTS The entities pa�'ticip�ting in tlte {�rocedures and tests ��rescribed horein F�r Start-Up and the Performance Tesls �.re [3uyer, the S,upplier, their respectivc Personnel, their designated representatives, �i�d third party lesting contractors, a� applic�ble. Third-Party emissions contractor will l�e hirecl hy, t�nd paid ior by Buyer. Each entity s��[� pr�vide c�t��r �a�i�s �U �i�Y�' t������ �� i�� ������� to commence Start-Up and Performance T�sii�� �� c�rr��r t� allc�`u` Xf�� ����1� ��������� �'��������' to participate, attend and witness such �tart-[.1� au�d �'�r�`t�r��a��.�� T�s�i��� �� ���� ��������� may require or allow. C. TEST PROCEDURES 'I'heye 1'erformancc �res� c���dci�a,�s i,�������� i�n� ��ner�l �u�d��s���� wi�i�h �i1t l�a ut[l�r,�d, �����•�;�z�t�� tr� il�� /��r°c�s��ta�nt, t:ca ��v�ic��� tl�� �`ia��l ����f�nt�an�� T��t Pr�e�cl��r��. �up�li�r s���(f. ���vcl����, witi� i�x�atal �°������a �3taye�•. il�� f�i���� I��t�crr���n�nc� Te�t Prs�e�d�����s ���� �"e�t �`rr�c��d��°�s� i�r �tc�.c`�rcl�+��c,u �itl� iV�� ��L��v`r+rt y��;cavi��c��2� t31'ti�� Il�������r����t. "�`��� ��'i�t�l '1 ��,3 F'�•e�����t��s ai���il ��� �c�rth, a�����; c�tt��r tl�►s���, i�a� ���p���-�€��� �r'c��u�l�.sr�;� t���:�,�������r �Gx �'crla�����nr�ici f"�:�t tlt�� �qtaipme�nt �i�d i�a d�x��anstrmt� t�zat t9�� %���ii��������i �+�l���v�.� tl��� �"l�niw�g���ii P��•iia3°���t�i��� �t�t��aa��� �� �lae �e��'�sr�anc� �u�r��r�����, ll�c�s� �r�•i�t;u9� �r.�c�:��C�t���.� l�y� u�zc;k� ��1' ��tt�r�r �t���� Supplier, the Final Performanee Test P�ryc��:�c1��4�c�� �I�r�tl �;c�v��'�� ���� ����������� ���"���'� �'�'�"����'Mi������ Test. �{�� ����� ��e�t �'t��c���r�s ����11 be developed based on these Performance Test Guidelines ������ ��.�t,� �,p�����r������ ��� F�erformance Guarantees, the Technical Specifications, and ���lic���� �rfc�r��nc� t��i eades. D. CONDUCT OF PERFORMANCE TESTS Start-Up and Performance Testing shall be conducted in accordance with the specific requirements set forth in the Agreement along with the applicable Annexes and Exhibits. �up�iier ;�h��l �r�vi�i� �u��r wi#� �� I��st �ve (5) �rx�si�ess d�ys' n�#ice ��il�� ���e ���c�a� r��ich �t��s�li�r prr����es tc� c�z���en�� fik�� �`ewf���t���� T�Ls. 5u��e�ti �c� ��a� zf�►r��d���Eel�+ pt°��e�ii�� s���e�ce, ���� ��rfc�rr����i�e Te�t� ra��� �c�w�����u�tc�� �t ����y� t�rYa� �Il��° �1��; i��������c:� ���"tl�� �t:��t��l��t �er�i�c�at�. Tn �t� r��s���a��l� d�sc��fii�n, ��i���a1i��° �i���y ��.c��� s���ci r�y��y �°�-`��a#Ic�t���� �� {'u�°Ii�z�K������u Test at any time unless otherwise prov�t���l ��N�ci�r` 41�c ��d"e��������a ���� �"����� �`��'�'�'�'�roti1Ktc� i��.�t Procedures and/or the Connmissionin� �'�°c�t��c:�a� ����ci �'t����. �t�i���lic�° ��'�s��l 1��°���'���� �'���������'�� is oc e t an ny attac en t ereto ay contai�t ��f�►�����lis��M t0��� i� ��st��%����i��, �c►��M'���'�:�a�i��� ��t�����v�� ���a����i�s�-�, ���a�l�r �r�k�li� ower utility co etpi:��� �r��1 �N����r�:i�9 i��C��•�����ic��a it� ���c��t��r��� wii� ���� ���yy�������'y�°������ �;���,�������; o e, 5ection 552.1 1, 552.1 , 2.11 an /or 52.133, an y e ��r�r4�c��4 �'�°��r� �°��vir�� p���l�� a����losure. �,���r���,�� �� �������� � �,�u�st %y ���y�r #'�rr �l�e rescheduling of a Performance Test if ��,������� �� ���,��,, ����r,�� �ai. �s�� �r�p��en�a����s t� �t�end a Performance Test. If testing activities ��.� ��������� �y ��ye�� flr thir+� p�rti�� ���d n�st a�ributed to Supplier, Supplier shall be entitled �� ,�������a�t,�:� ��t• �,�� �.���t�c�t�a�l tiir�� ar�d �as�. All Performance Tests will be conducted in &����,���,� y,,��h �� p��r���r�e��t, i�� i�in�l �erformance Test Procedures, with the Plant (including all pollution control equipment) tuned and operating in the normal Plant operating configuration. The Performance T�s�s sh�l� I�� c�and��t�� by ��p�1ic:�°, �cti�� �s t�� le�d�r t�flit� p��f€�rz�t�nce testing, and shal� �e r��ai����y s�a�a��rted �y Quy�r a�ad its ��ari�°ac#�r°s. �3�sr�e�• a��d i�s Contractors shall act u�ide�� the ����e�-�+��ir�� �i ��p�li�r's t�cla�ics�� ��rsc��n�l �ncj �� acc�rdan�e with the provisi��s c�i t�es� I�e�`f�raa����� �I esf ���ic��[in��, t%� 1��n�1 i'et•f�a�na���� Tcsi Procedures. The Par�ies s��l� ��re� c�n �h� �i�t� to be used for analysis, and the analysis will be performed by Supplier, and subs�qu�aat�� r�vi�w�d �tr�ti ���rnv�c� l�y l�uy�r� I� ���'� °�" Supplier observes any defects or,���cie�x�`t�s i�� �iae ��tti�szn�nt o�° %t� �erft�rrr�an�� c����r���� ����' Performance Test, then it shall pr�m�i�;y �a��ify the �tl��r I��r�+° iz� �ri��n�� Bu��e�' ���1 ��p����� shall cooperate in good faith in determining when ���R tc� v�+i��� �xt��a� ��� 1'�ar�k �n'►�1 �� �1��� ��� of service in order to take corrective measures; provided, however, that Buyer shall not unreasonably interfere with Supplier's preparations for and conduct of any Performance Test. E. MODIFICATIONS TO ACHIEVE PASSAGE OF PERFORMANCE TESTS Supplier shall have the right to determine the nature of any ec�����tiv� tnca.��tt'�s or modifications to the Equipment to be taken by Supplier to ��i�i�ve �Ssss�g� c�f the Performance Tests; provided that such corrective measures or �n��i��:�'�ia�a� �rat�ld not adversely �affect in any material respect the performance, operation, reliability or tnaintenance of the Equipment, and that the measures taken are not Yemporary in nature. If Supplier determines that corrective measures or modifications to the installation or equipment supplied by Buyer are necessary to comply with design reyuirements provided by Supplier as part of engineering deliverables or applicable codes, such corrective measures or modifications shall be undertaken by Buyer as applicable and as mutually accepta.ble. II. START-UP A. GENERAL PROVISIONS Following Installation of an Engine in accordance with Section 5.3.1 of the Agreement, Start- Up will be conducted in accordance with Section 53.2 of the Agreement. is o� � t�n s y�ttac e ts t�reto ay c� tai i f r tio t�t is ca �i ent[al, co ercially- sensitive, ra rietary, a/�r lic o er utility co etitive a ► ci 1 i f�r atim i�ccor a ce it t e r�visio s�f Tex�s mv�r e t o e, ectio 2.1 1, 2.1 4p 2.11 a/or 5 2.133, a �y � r�teete frm re uire u tic is�ios re. B. START-UP TESTING Mechanical a. S s� tems: Buyer and Supplier shall verify the proper installation of each system prior to Start-Up. Each system shall be started and operated at all system design conditions as long as it is reasonably practicable. b. Engines: Each Engine shall be operated at design speed following the guidelines of the Wartsila factory. Supplier shall verify all critical shut-downs and controls for proper operation. 2. Electrical a. Svnchronization: Engines shall be individually and collectively synchronized to prove integrity and proper operation of all controls. b. Load Tests: The Units shall be tested suf�ciently to satisfy Supplier that the Units are ready to commence Performance testing. III. PERFORMANCE TESTS A. GENERAL PROVISIONS Promptly following Start-Up Completion, the Performance Tests shall be conducted (and re- conducted, as necessary) in order to demonstrate the compliance with the Perfarmance Guarantees in accordance with the Agreement. 1. Data Collection and Units Supplier will collect the data during the Performance Test and will provide Buyer with a copy of all data immediately upon its availability. U.S. customary units will be used in the tests with any reference to Standard International (SI) units noted in parenthetical. The BTU to be used in the tests is the International Table BTU which is defned as equal to 1055.05585262 joules. All other conversion factors needed will 'T is oc e t � y tt�c e t� t ereta y�� t�i i or �tio t�t is co e ti�l, ca erci�6ly- s� sitive, ra rie ry, �/mr lic o er tiHiiy cc� etitive �re , ci�l i ffor �tio [ accor � c� it t e rovisio s of ex�s over e i a e, ectim 2ofl B, 5 20! 4, �011 /or 2.133, a y e rot��te fro r� ir� u li� iselos re. be taken from IEEE/ASTM SI 10-2010. The precision of conversion factors will be sufiicient to not reduce the accuracy of the converted value to less than the original value. 2. Meters and Instrument Calibration All meters and instruments neec�+�c� fnr i�� P�rf�ari��s�c� `�l�ests �'l�� b� �������'�� �}�` Supplier prior to the Perforr��������''I'��l�. "I"l��s� ���w�!'s�t�� ��ti�l i��:�Ce����t�N�d� wili ��c�:c1 ic� t�� identified early in the plan4: ���:���,�� ic� �r������ :�c�c���t���t�; ��rc�vi�ica�a� �i•� r����dc i� i���t�i1 them. Prior to the Performanc� °i`�;�i:;, ��sl�@�����ic��i c�c�ac:�r��t�°m�t� ,���� l�� �av��il�%�� i�r° review and approval by Suppliea' i'c��� i�����•�s�a�iat� �ti}���I�ecl ��y ll�� 13a�y+��� ���ci �•�vi�w and approval by Buyer for instru�aau��i� �tt����li�.c! {�y ;�ti�a��Ei��•, ��k���i� �}����•t�vz�l� ���I� �7��1 be unreasonably withheld. Fuel The fuel shall be provicled by I�t��c�° �trti �I���I� 1�� in ���c�rd�n�c� avi11� [��c. h�;�•��tt����t and Exhibit 7. Su�plier shull hrr�����„u �t��' i"tt�� ���pl�� t� be e���� l�c#i,r°� ��t�c�1��t° cl���°�7�� the Performan�e T�4ls in thc tor��� �a��ct �t tli�: in��rv�[� set �ut �n ti�� °�"��i i'�A������i�•�� (the "Fuel Samples"). A�i�ai�t��r��� ���' ��m�e � f) 4�t����3it� ��c��• li����E° rr{' t��i�r��, rwi1�� redundant samples kept on site lia�• v�rilic:��tic��s ���" �l�i���a���� s�«c� ;���nr��l� i��t��,N�idy, "l'i�� average laboratory analysis for s��t�Z��i�� t��lses� cl���`i�e� ��t��� ��':�t �'���t �I����I l�� x��c�G ��� ��►��r heat rate determination, or used tca v+��°i["y �:I��`�as����t��,�'����f� ����r���i� �e�' i������������°�• Buyer shall arrange and pay for ���ai�s€s �a�'��i� �uei ���t�pl�� "4'�tl�ila �1�� ���r��d ��� ��� in the Final Performance Test �r�r�ciuw.es `i�e ��e� ����i� �x�P��"�a�� °�'i�� �� determined by standard ASME z�.i�cN !x►;�`I'M le�iiiti� ���°ca�c;�it:i'�� ���ii�� s�1 l�:���i c�r�� t����°ci party laboratory, selected by B�.���r �+���� �r�y���•��vc�l I�y `�����Nali�x�, v�+lfi��� ��}�>�€5csvf�� �rii� not be unreasonably withheld or t��l���ecd, �r�c� vvil� i���l��<�r�, �i� Fs �t�is�i�l�t����, `�i�r�����s ��I" the fuel density, lower and higl��;r• �����li�t� v<��t��:; r��tc� �I�����i��Y �:€��t�����:�it���r�. 13��y��� will provide Supplier with a cor�y ��Ftl�a� I�t��.[ ����a�r�c� �a����lyrs+�,� €tF�c�r� tl��.i�- ��v��iV��t��6ity. Monitored Parameters During the Performance Tests, �"!€��t ��a�'����1���'��I� �� ���i��r�'� ��� f������'�'�����" ��1� remain within normal operating �it�i�s. T��stru���a�t� �n�ar��tc�s"�� ����� �������§'���°'��'� be limited to: ambient tempe�•;�t���°� ��xd r�tat�r�� ����idr�Y, Et����ae anti Cer������°� temperatures, lube oil temper�t��� �td p�r��sus�'e�, c��s���a� "���+�'� ��� °����` �'������ systems temperatures, pressure,� aa�� f���v�. ��'►�'�� ����� ���t�������"'�� ������ �`��� �'� monitored and measured periodically during testing at various locations. B, pERFORMANCE TESTS 1. Objectives I. Gross Unit Electric Outaut. The Gross Unit Electric Output test shall be performed on each Unit to verify the Gross �lectric Output Guarantee. The test shall be conducted is oc e t a a y attac e ts t ereto ay co in i i'or �tion t at is canC e tial, co ercialfy- ����������� ��.��4,1���t�, ar�c�ltsr ���16� ower uti{ity co etit{ve a f a cial i fnr ation in accor a ce wit ���� i��.�,����,��� ���° ����� �r�y��r�r����� Co e, ection 552.1 1, 5 2.1 4, 552.11 an /or 552.133, a ay e �ar��l����� �'r�o�� r•a�u�t°�c� �r�iali� �%+��os re. 4 concurrently with the Gross Heat Rate test over a four (4) hour period per Unit, unless otherwise mutually agreed. II, Gross Unit Heat Rate. The Gross Unit Heat Rate test shall be performed on each engine to verify the Gross Heat Rate Guarantee. The test shall be conducted over a four (4) hour period per Unit, unless otherwise mutually agreed. III. Air Emissions. The Air Emissions Compliance test may, at Suppliers option, be performed during the Gross Output and Gross Heat Rate test. Three test runs of at least one hour each will be per%rmed for NOx, CO, VOC, PM�o and NH3 emissions. PMio emissions will be measured as total particulate matter (i.e., filterable plus condensable). Emissions will be reported as the average of the three test runs. IV. Minimum Turndown. The Minimum Turndown Test shall be performed on each Engine Generator to verify the Minimum Turndown Guarantee. The test shall be conducted over a one (1) hour period, unless otherwise mutually agreed. V. Lubricatin� Oil Consumption. The Lubricating Oil Consumption test shall be performed to verify the Lubricating Oil Consumption Guarantee. 'The test shall be conducted concurrently with other tests over a one hundred sixty-eight (168) hour period, unless otherwise mutually agreed. VI. Ammonia / Urea Consumption. The Ammonia / Urea Consumption test sha11 be performed to verify the Ammonia / Urea Consumption Guarantee. The test shall be conducted concurrently with the Gross Electric Output test over a four (4) hour period, unless otherwise mutually agreed. VII. Noise limit— Genset. Each Engine will be tested according to the Final Test Guidelines to demonstrate compliance with the Engine Noise Limit Guarantee. VIII. Reliability Guarantee. The Reliability Guarantee test will be a 96 hour test conducted to iietermine the reliability of the Equipment over the set period. The Reliability Guarantee test may be conducted concurrently with other tests. If required, the Reliability tests may be conducted with multiple units in service within the transmission system limitations for dispatch of the Plant. 2. Period To the extent desired by Supplier, the Air Emissions Test may be performed concurrently with the Gross Output and Gross Heat Rate tests for 100% Gross Output emissions. All final Performance Testing, however, must ensure compliance with the Emission Guarantees per Exhibit 5 of the Agreement. Prior to the start of any of these Performance Tests, each Unit shall be operated for a minimum of two hours in order is e t a a y tt c e t ereto ay ca tain i Cor tia t at is co ' e ti�f, co ercially- se sittve, ro rieta , /or lic o er uti{ity co etitive an fin cial i for tio in accor a ce it t e ravisio s of ex s over ent a e, ectio .1 1, 2.1 , 2.11 /ar 2.133, � ay e rotecte fro re ire lic iscl�s re. ta flb°�i'�a st��y sC�i� ��n�iti��s, '�"�e t�m� p�ryc�d n��d�d t+� a�cert��r� st�a�y �t�€te n��y v�iy d+�pe�c�ir�� �� �st� Ge���dit��r�� ���c� ��gi�'� ����iti��� and w�l� b� �� re�,sa��b�y dete���an��esi b� 5up�tier, ��ppiY�x� s�a�l �a�st l�� rcgui��i f�s cc�m�n���e �`• ��n�.i�a�� s�y ���fc�r����xc�'I'est in the �€bs����� ��a �ta.�[� lc��d ��� ����h d�t�rm����tio� ��n�i1 iae �� tl�� sole discretion of the Supplier. Other Performance Tests shall be scheduled during The Gross Output and Gross Heat Rate tests to the extent possible. The readings from the instruments as coli�cfied �1�c;t�•c�a�ica�l�� anc4l�r t.��rc�e� c�� c���� sheets shall be used to determine the mes�ured P�rfc��'��'�c� G�a�'������ ��� �"�'�l}�" data set of ineasured Gross Electrical Ou�p�t ���c� -'�'.��'��� �'�$� ��� ��'��� �� ����'�'�i�� ��' the Design Conditions. The Performance ����r��xi�e� �h��1 b� calcu��t�d ��'�� ��� arithmetical average of the corrected 1-ho�ur da�� sets caf �c��re�ted 'Gr�ss ���c�`"���1 Output and Gross Heat Rate results of all Units. Re-test. Supplier may test the Equipment, including re-conducting any Performance Test, until the Equipment meets the Performance Guaxantees oir the Absolute Performance ��r�r���t��, 4. �ar►bie��, � n�ilz��t �, i��a�t_M����c� The ambient conditions of temperature, relative humidity and barometric pressure (the "Ambient Conditions") will be measured. b. When Measured The Ambient Conditions will be measured at intervals as set out in the Final Performance Test Procedures such that representative Ambient Conditions can be determined for the test period. � �, Where Measured Atnbient Temperature: ��� ��� ����'��'� ����� �'���'���'���� ���� Fr���t�r�s, in � w�y t��zt °+���� t��k e�t��� i.i�e reac�i�tg t� b� aff��et�c� by 1�he l�l�ni �p��'�t���. 'ih� s��sc���s w�ll b� lc�c�ted �� as i�r b� re�at�e��n�a#.i�ve ��f ci�aa•�� ai�° itata�� �c� t�e �n�in�s �n�i r�ertixlati�n �ir intcr tl�� �i��ilr�in�y Relative Humidity: �5��• t,�a d����led �"r��a! P�1"�"�rmance Test �rQ�,����,�s, wr� a e�ray i��f ,�iy! not cause the d.,��,����� t� �� ��f,��e�l, �y ii�� �tant operation. is c►� e t� � y��� c e ts ��ret� y co tai i f�r �ti� t ai is co fi eatti�l, em erci�t{y- sensitivc� �Sr���r���i�r�, ��s�����° 1����;��� o er tility c etiBiv� � #i tici { i ffor atio i�ccor � c� it t e r�visir�r�� �s�"`�'����� �:+����"o���'���� o e, ��timn 2.1 1, 2.1 , 552.Y1 �!ar 2.133, a ay e rote�te�l i"���a�� �•����w��� i����l�� ���s��osureo For relative humidity corrections due to engine effects, the relative humidity will be measured 6y the plant weather station. Baroxnetric Pressure: per the detailed Final Performance Test Procedures, in a non-pressurized location or nearby location. d. How Measured e. f. Measurements The Ambient Conditions shall be measured in accordance with methods set out in the Final Performance Test Procedures. Measurement Accuracv Ambient Temperature: Relative Humidity: Barometric Pressure: Who Measures At least 0.4 Deg F, or if greater as stipulated in the Final Performance Test Procedures. in accordance with the Final Performance Test Procedures At least 0.01 inch of inercury, or if greater as stipulated in the Final Performance Test Procedures Supplier shall measure and record the Ambient Conditions. —.,w_ __ .�.. � � __ ��_.� _ . .. Symbol Definition Measurmg point Unrt Tolerance, max .,,....._ w a_ ��.�_. �...�. ,� m� .u�.. ��.P_ m._.� _ ..�,,,,._,.� .m- — -___.��.. _ pX Total barometric �� psia _ pressure �� � �.�.._ �e �.� �,��.. ,.� _ _ � �._ ��. - � — �w � �...� v�.__ tx Ambient air ���� F - thermodynamic temperature ��....� �.,...��_ ___ . rv.�._ .�. _ _ _ ....-- �X � ._ ....__. _ . _ _..__ .. _..... _ .... �� Charge air coolant �� F � thermodynamic temperature �� �.�.�. . . _.Volume of gas�..e.M.� . _. ��. ��w�3 z�...�_ �.... gf consumed .� -- �-��.� Wh�......._�.... —.�. u� �. .... _._ �_ . e ..... .. ..... w � � r Heat Rate U/k ._ n....._ -P..�.._ _ �� ..._ � �,,. . .... _. � � _� ...�a_ ._. ,_ ___��__�: � ,._.. .,u.,_ This document and any attachments thereto may conia�n m�urmauun wu� �� .:��..���•_�••••: �v•�•••"'• "•"•v sensitive, proprietary, and/or pubffc power utility competitie�e and financiel infarmatfon in �ecordance with t e visio s af exas over e t o e, ectia 2.1 1, 52.1 , 552.11 a/or 552.133, a ay be rot fro re uire lic isclos re. 7 _ - ..._ -LHV .,,.... � �_ __� .�� .._ ��sa,. � � _m,.., �._. m m.��. � LHV (dry) Lower heating value BTU/ft3 _ � � �. _._.�� .nn... � m__, -� � .. ..— ........-...�.�.. = � ..� HHV (dry) Higher heating value I BTU/fl _r � . � _.n... — ._ �,_.._� ---- �.�.. .. — — —.... .� r.... _�_ _ � Relative Humidity ��'�� % �. ._... �� .:.-....... ..._. �.. � ..,:._—.�_. � ... . .__ �., E Electrical energy kWh � _ ___ -,�. -�_� _ _ ._ __._...—..��.n.— ., ._. ._ �..� � _ � Time � s � . �_. � �... �. �._ .� �. �..�... __.. _.,— — .��. ...._ _ I Current _ _ I A __ µ �_.._ � . __�p� �..._� ......._.� , r..,.- _ U Voltage . � V . . —�..�— ....... , N v=�_ F` Fmm0 Number of test runs in � ^ N/A � a test _� �._—� �. — � _d.... - ,�. - ��,_, _ .. �....__.._--._�..,... w�._..:� -..�. _ p Power - ___ � � kW �.___ .,,.._ � �.�.�_.. _ ,. � _.—_� .— � . �� �w ,� �� u.v..__ �._.. .._. �. r _ . � 0 Delta between r N/A measured value and +/- tolerance value as calculated in the applicable section ��.�.� below SUBSCRIPTS _ .�.. . _m �.,. �....___ � �.. _ , �� �. �. � tol v y� Tolerance on test � N/A � value or meter accuracy ._�..� _.�.� �.. . _ � .._ .. �.�� min Minimum value a� �� mm � � ,.� - _ � � _ N/A calculated in the applicable section below �. � — - ,� . � ��.. _ e.�m �... . � _ ,...._ a ._ �__ � max Maximum value as � N/A � calculated in the applicable section below _...� �� �� � � _ __ �.....m N/A� w _.�� _.__� _��_..— g__U�... _ �__ uaranteed Guaranteed value in the applicable section of the Agreement 1'Btis dcecu[ment �nd �ny afta�h�n�nts theretm rn�y contsin inforrn�tian th�t is confidentiat, commercially- s� `tiv�, ro rie ry, /or ldc m er utBiity c� etitive arsd lin�neiai i�formaiion in eccord�nce wlth t e rovisi� s �x s ov�r e t � e, ectio 2. 1, 2.1 , 2. 1�/er o133� a �y � rot�ete fr� r� ire tic 1sclas re. �..� � �.�. A,..�.. _,...... ,.. _ w �.e �__.�� _d _ _ ave Average value as � N/A � calculated in applicable section below .... � _. _._ .. ,...._ _,...,_�...,..... �,,,,... _ ,_. _. �� �.,.,. — �._ _ W � measured Value measured � N/A � during testing and corrected for by Derating Curves .� ___ _�� _. N/A �_� � .. �_.�._ _�.. _ .. � ��. � _ g Generator terminal . value __ w� _�. ., ._ �._—._...... _..._. —, _ �� _� - transf ��.� � ^ Measuring ' � N/A transformer for I and U as applicable __ �. __� ...__ u___ .__ _ � 1 Test run numb .. n._�.�._ � _ .._ — ......_. — .. . N/A ' er e.� .�.w� .�,,��� e..� �_. �.w. �..e _ � ro�. �__ ,..�.. �a._ _m�., test Value measured � N/A � during a specific test run _�mm ��..... _�.. _. ... ra� .,...... _... _.— —_...__ hr N T4 u� As measured during a� N/A �, specifc heat rate test run � � ._ — _.� _��..�� e�, a.... � . �...W.� � �_�_. � � p As measured during a� N/A specific output test run _ ��......� �> Volume of gas to be expressed at same reference conditions as the LHV and HHV. *- This is the point of ineasurement as per Agreement between Supplier and Buyer 5. Fuel Consumption Measurements The actual fuel consurr►ed by the Engines shall be measured by Supplier, using fuel meters provided by Supplier, during the �'�rfcri'�na��e "Te�is ��ci �cc�r���� �c� t.i�� �'iz��i Performance Test Procedures. The fuel �c�e��� s��ll I�'v� �s�a ���t����y �5 s��p������� �� the Final Performance Test Procedures, a►�+� ir��gli�v �h�l[ supp�� ���-t��'����'� certificates for the meters being used. Maintenance During the Performance Test, maintenance of the Plant equipment may not be performed at any time, other than scheduled checks and changes per the commissioning protocols. is oc e t a a y t c e ts t ereta y co t�i i for tio t at is co f e tial, co ercially- se sitive, ro rieta , a /or lic o er tility co etitive a ir �ncial i far atio i accar a ce wit t e roviaio s of exas over ent Co e, ectio 2.1 l, 2.1 , 2.11 a/or 5 2.133, a ay e rotecte fra re ire lic isclos re. , 9 7. Gross Out�ut and Gross Heat Rate Determination The Unit Gross Heat Rate will be calculated as the ratio of (i) the total fuel consumed per Engine, based on higher hea�cr��; v�.�€�� ����e ���1, e��ar`+�ss�1 in I��ul�r= over (ii) the Gross Output (expressed in kW) �'�`th� En�ir�e c���r i�� sar��e #isr�e ��ter^�'�1. Both values will be rneasured during the Gross Output �and C�r�ss �d��� �.�1� �est. ��sc� Gross Heat Rate and Gross Output may be measured concurrent with other test periods as agreed between Supplier and Buyer. Ad�ustment of Gross Ou�ut and Gross Heat Rate The Gross Output and Gross Heat Rate shall be adjusted for the measured Ambient Conditions per the Unit derating curves as provided as Attachment 1 to Exhibit 5, utilizing the methods generally described in the Agreement and more completely prescribed in the Final Performance Test Procedures. This adjustment is for the purpose of comparing the Gross Output and Gross Heat Rate to the Performance Guarantee values. These methods and calculation procedures will be included in the Final Performance Test Procedures. Possible adjustments shall be addressed in the Final Performance Test Procedures (e.g., ambient temperature, ambient relative humidity, ambient barometric pressure, and power factor, fuel pressure, methane number, heating value and heating value ratio, etc.). Calculations e sur� �n� ��cu l� �I ric I� er t�st The measurement tolerances will cause a measurement uncertainty in the measured electrical power. The components involved are the measuring transformers and the power measuring unit, and in some special cases only the energy measuring unit. __ - Tolerance usage is according 'Thi� d�c���nt ��d ��y �it�chnro�n� ih�r�i� rn�y co�f�in famform�ii�n ih�t is �on�idenii�i, corr�m�r�i�llym �� �ative, r� ri�t�ry, �ndfc�r ubli� ow�r e��ifiiy c�mp�titiv� �nd fite�nci�l 3r�form�t��� in �ccord�nc� �iih t� r�visions �f ex�s over ent � e, �cti� 2.] 1, 52.1 4� 52.11 �n 9or 2.13�, � y b� � r�t t fro re ire lic es�l�s �°�� 10 1i r �� �__ ...__ � ---- .. __. i_ '. '�'hes docutetent �nd �ny �t��ci�ments th�r�tea m�y casni�in ieeffor��teo�r th�t is confidenti��, �otnmercial6y� s� sitive, t°� riet� , a /oc {i� � er titity c� �tiii�v� �nd t�ea�nci�l mnfc�t°m�tBon ita �cc�rd�e�ce vvith t e rovis�� s a �x s�v�r�r ent �o �, ��ti 5 201 l, 2.1 , 2.]1 /or 552.�33, � �y � r�te�t� fra r ir� tic is�to� re. 11 EMISSIONS TESTS Flue Gas Emissions - Testing Obiective The objective of these tests is �;� v���i�y ���at ihc� #��z� ��� ���i�s���� �'�°�� �'�'�� ������� during the applicable Performan� �e�i� are ir� c��n��tat��� w'i�� t�� ������°�� G����r�t�� s�� �'�s°t� ��a ��� A�r��m�nt, �nc�ud���,� +�rnis�i�ns �u��ratxt��� ft�r � If ar� �rniss�+�n t�� i� n�a� p�rfc�r�n�d ��an����tly with i7r�it "���ctric�t (�?c�ipu�'t.]e�i� k��f �tai�e �estir�g, �r�n�fi,��i� a��� �r�iip�����t s�itiir�p�� ���il n�4 be changed between Unit Electric�� CJ��t�+���lt�ifr �-���t �� ������� ���� ���g��°�� �������' A certified third-party emissions test company will be chosen by Buyer and approved by Supplier, approval of which shall not be unreasonably withheld. Testing will be at the expense of Buyer. is oc ent an a y attac e t ereto ay co tai i for atio t at is co fi e tiaf, co ercislly- se sitive, ra rietary, /or lic o er ti{ity co etitive a Cna cial infor ation i accor ce it t e rav'rsia s of exas over e t o e, ectio 552.1 1, .1 , 2.11 a/or 5 2.133, a y rotecte fro re ire lic isclos re. 12 Flue Gas Emissions - Testin��Methods Emissions data is provided based upon the emission measurement methods listed below, along with associated support methods, and are valid only for these methods. Based upon mutual written consent, evaluation of ineasurement levels can be made using alternative methods. Emission data assumes that individual compounds identified above the sensitivity limit, but at concentrations below the lower limit of detection are reported as maximum one-half of the daily lower-limit of calibration. Measurements shall be performed so that minimum feasible detection limits are achieved if this is required for deternnining compliance with the Emission Guarantee. The flue gas stack emission measurements will be performed at steady operating condition of the Engine. Prior to the start of the flue gas emission (sta.ck) measurements, the Engine shall have reached steady state operating conditions and the flue gas temperature measured after the emission control system shall be allowed to reach normal operating temperature. ;��"��it���tly l�r�� �r���s�r�����t sm�a�alin� ��riv�fs s�al� � ir�pl�r��r�ied ir� order to ��t r��re��r���ti�r� ��est r°��ttlis f�r a�8 �ir �c�lt�tants, '�'� �ns�ar+� ���ur�c�,l�lue Gas ���s�i�n t+�sts s�a�l in��ud� tlz�e �(�) te�t run� �+i�� � n�i��rnurn s�mp[in� time of 1-hour per sample. Test results will be th�� av+�r��;� c��fi-I�e i��r��e test r�n�• Based on the judgment of the Third-Party emissions test company, the results of individual test runs with abnormally high deviation may be excluded as approved by the Buyer. is oc e t a a y t c e ts t ereto ay co t i i for atio t t is co r e ti 1, co ercially- se sitive, ro rietary, �!ar u lic er tility ca etitive a �� ci 1 i for tio i accor a ce it t e rovisio s of ex s aver e t o e, ectio 2.1 1, 2.1 , 2.11 a or 55 .133, y e rotect fro r ire lic isclos re. • 13 __ _ 8. Minimum Turndown Test The Minirr►um Turndown test will be conducted to demonstrate the Engine(s) ability to run at or below the Minimum Turndown Guarantee, The Minimum Turndown test may be conducted concurrently with the tests, and may be conducted with multiple units in service within the transmission system limitations for dispatch of the Plant. , 9. Lubricating Oil Consutnption Test The Lubricating Oil Consumption Test is performed to determine the rate of lubricating ��l �.o�asura�e�i �ta��i�� +�per�ti��a. Tl�� I��l�ri+c�ti�� C3�1 �+��s��n�iic�a� '�'��� i� �r���ra�a�y ��r�cs�°me�t �ncu��:r�il}r w�� t�a� �t��er �rf�rm��� �s%�� ir� paa�tic�rl�r tiuring ���� Rela�6i�aty Te�.. "i`�� r��s�r� �'c�r ��is i� ���� �h� �ub�ricatin� a�i� �c��s�am��ir�n r�t� a� �� � ��;l�ti�+�ly ��w ��r��l �ac� � Ic��t� ��ari��l e�����r�tir�� ���r� will p�•�v��� a �r��t��� �����nt of c����aani��ic�� ��Zi�� ��n �a� ��re eas��y a������r�d. Prior to the start s��t�e �.,ub��c��i�� Oil Consumption Test, the lube oil sumps of all the engines or group �� �za�ir��� wil� b� filled to the full mark, such mark and such fill level will be carefully ��rt�c� ia� each e��ine while the engine is not operating. The engines will then be operated for a length of time agreeable to both BUYER and SELLER, however a minimum of � hours. After such operating time period, the lube oil sumps will be reiilled to precise�� �;h� �me ����1 �s �aied ��'3c�r t� the �t�t �� tia� te�t, with the engines not operating, and �,� the s�e �.�rr��a�r�.�.�'�• `� h� v������ c�� ����������� oil required to fill the sumps to the �re�t��t l�v�l r�ai�l �� z�+�asur�d �rY nn�a��a� �,��`�'ea��� �� both BUYER and SELLER. 10, Ammonia / Urea Consumption Test is ent a� y�ttsc e ts t ereto �y costtain i for �tio t�t is em `� ti�6g cm erci fty- se `8ive, ro ri�t�ry, �!or lic a�r tiiity em etiti�+e � e ci 1 i for �timn i acc�r c� tait t e rovisia s oT �xas aver e t o e, eeti� 2.1 l, 201 , .I1 $/�r 2.f33, a �y � rotecte fro re uire tic is�l�s r�• 14 The Ammonia / Urea Consumptic�n Test i� ���r��� �� ����''���°� ��� rate of ammonia / urea consumed during operation. �� Amr�ai�ia l i7r�� ���������'�� Test is preferably performed concurrently with the ��c��s +C3�ipu� ��r��i��,n+�e ��s��, �r a� otherwise mutually agreed. The �:�� �i���� will then be c� �ea•�it�ca for a vri��c� of The consumption of Ammonia / Urea will be measured by the reagent dosing equipment. Density of the ammonia / urea will be measured by samples taken during performance of the tests. 11. NOISE TEST Eauivment Noise Test - Testing Objective The objective of these tests is to verify that surface averaged sound pressure level at 1 m distance from the genset is at the Noise Guarantee or below. E ui ment Noise Test — Test Location Measurement will be performed at engine test run, Trieste, Italy, during PCT testing. E ui ment Noise Test - Testin Methods Noise ��a�uren�e��� shall be made �tc:�:c��`cN� Engine surface averaged sound pressure level is measured and defined according to this standard. Standard is followed until the end of paragraph 13.2 Calculation of the measuring surface sound pressure levels. E ui ment Noise Test - Re ortin �,�fe�s�r�traent results will be r���a���t��� in overall A-w�i�ht�d le��l. The following information shall be i�cluded: Data on object being measured (e.g. Engine load, turbo charger speeds etc.) T is uc e t$ a y�tt c e t ereto ay co i i for tio t at is co �i entiat, co ���i IfY- se sitiv�, ro riet ry, a/or u lic a�r tility co etitive � $ cial i for �tio i�ec�r � ce it t� rovisimms of ex�s over e t o e, S�ctio 2.1 1, 2.1 , .11 are /or 5 2.133, � �y � rotecte fro e� ire {ic iselos e°e. 15 Date and time when the measurements were performed, identity of the person who performed the measurements and location of the measurement positions. Applied measurement methods • Measurement instrumentation . Weighting networks and detector responses used • Method of instrument calibration . Copy of the calibration certificate(s) of the measurement , equipment showing the type(s) and serial number(s) of the instrument(s) used. Measured noise level 12. RELIABILITY GUARANTEE TEST ��� ������„����;� ����,�t�e t��t yvill %e c���uc�i�:d to determine the reliability of the E��ai�a���t c��er � �et ��i€��. 'i"�� �.�����il�ty C�,��r�a�#�e iesi: z��y �� �candr.i��d ca�cu��e�t�y rvitl� �r�ss +C�uipc�t T�st �'�+��r� �:n�i wi�i u�� �o�r�c���� t��i�r� �`�r Gross �u,�.�ut, ii r�c�uire�, �.�� �.�li�,���ity �est� ���y �e ��rd�t��e� t�r��� ��lti�r�� �i�i�s in service v�tlaix� t�ae t��r��r�i�si�a� sj��t��`� ��rnii�ii€�t�s �c�r dispatch of the Plant. The tests will be conducted as follows: Each Unit shall be demonstrated during � consecutive hours of dispatch. During the � � , , . � � _ ch may include varying loads hours of ci�� ��t�:t�, tl�� � I.�$r�t �i��rli 1�a� ����i ��� to ���� �*���°�� �'hl including reasonable startups between #i�tl r���cM w������r��u�N��� i and shutdowns. The Generat��° ��t� ����11 ka�v� �€�.is�ie+� �1�� �����������' �������'�� to the extent that the Generator ���� ������°e �k�� ���i�►�i�it�'' ��t�'��t�� �'���� �1�����'��ge) set for in Exhibit 5, as calculat�ci in �c��rd�nr� �a�t�Z �i+e �e�i����on. IV, pRERE UISITES AND PRECAUTIONS The following prerequisites and precautions shall be observed during Performance Testing: . Buyer will arrange for the distribution of electrical power to the grid during the tests. �'hi� ���►����r��n1 ���� ���:� ������1x�t��rW�� ��re�°���r s���' ��������� i��for atia t at is ca �i enti�l, �a��tr�Y��°�[��1�� �c�ty�i�iv�, ��°��r`i�t���+� �n�iic�� �a��b�i� �c�'���� u��iat� �c�rt����i���ve ancial infor atit�n i� ,��c���d������ �'it iL�c� ��-��i�i��a� €�i'�'�x�� �t��+�r°w�r���q`l ���i�, ��e�.ic��� ���o �i�l � 2.1 , .11 a /ar 5��.1 ��, ��o�� ��y #�+� �a���€��#e� Y�•c�r� ��q���•�d T�u��a� s�i.��l�as����. 16 . Buyer will arrange for appropriate pollution control authority to witness etnissions tests, if required by applicable law. • Buy�r v►f`r!i prcrv��e �vsilabic p��nt a�r�ti��� pecs�t�r��l and ��er�te #,i�� ��anS, u�der �uppl��r'� �up�rvisivn. �u���ii�'• ���1� �ar�vi�� �l�ite�a��l per��nz�el re��,�ir�d �°�r da�a r,c�11��i�n, anr� �t���rv�si�� v� testisng. �u��l,��r sl���l �ri�f cs�eratin� a�� tes� p�ers�r���� c�� s�f�tyr cc�r�sic�er�iis��s a�r� te�t ���c�c�tiar�s �.��i �it�it fatni�ias•iz� ����rra wit6� 1���e r��sge �f ���`� Lc, �e �x��c�ec� t{�riaa� �ac� of the test runs. • Supplier shall provide Buyer with prior notice per Agreetnent requirements that the Engines are ready for commencement of Performance Tests. . Plant control system shall function and operate in "auto" mode. ����,�� ,��y���;�7 ��,������y� r.���y�� ��� ���� �������isms shall be checked and confirmed to be �,�,��.�����x�� b����� ���,j���r��,��� �������, ,� lA1�ed �e�d� �� jumper log shall be maintained, as �����,���y�,� ��� p����� ��pp�� ����,��� s���� � pt��m���r��ionally tested and shall be available for vper�t�vn �t tf�e e�e�ign cc����#i�u��. • Plant inslrumentation used for test data acquisition shall be installed and calibrated before testing. ���y��a�� ���{� ����r���; ���c;i�l t+��t �n�trt�,��r�tati��t as required for the Equipment, if deemed ��,������ �� ���pl���., ������a�tusr�;�'� t�e�,aniner�ded calibration cycles shall not be exceeded. ������i���� �Ia�r��rca� �hsi1 i���1t�c1e �rimary iw�strt�ments, transmitters, and signal processing. The Buyer shall be given the opportunity to witness the ir�strut�tt�r�t�tiian ca�ik�ration. Calibration sheets for primary instruments will be reviewed by t}�� t�s� �� �t'��r tv iield testing. Calibration data shall be supplied to Buyer with the test rep�rt. �'�si-��st caEwb�w�lio� of test instruments shall not be performed unless deemed necessary to validate data from specifc instruments as mutually agreed to between the Buyer and the Supplier if there is some reason to suspect an instrument inaccuracy issue. is oc e t � y�ttae e ts t�reto �y eo t�i i for atio t�t is co , e ti l, ca erei�tly� se sitive, v� rieta ,� !�r lic o er tifity ca etitBve a ` �i l i f�r �tion i aecor a ce it # e ravisio s uf ex�s over � t Co e, �ctia 2.1 1, .1 , .11 �!�r 2.1 ,� ay e rotecte tra re ire lie is�los re. 17 EXHIBIT 9-Form of Start-Up Certificate W�rtsil� North America, Inc. ("Supplier"), under the Equipment Supply Agreement, dated September 13, 2016 ("Agreement"), between Supplier and the City of Denton ("Buyer"), hereby certifes that: The Engines' Start-Up has been completed in accordance with Section 5.3.2 of the Ageeement and the Engines are in compliance with the Te�hnical Specifications. Capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Agreement. IN WITNESS WHEREOF, Supplier has executed and delivered this Start-Up Certificate through its duly authorized representative as of the day of , 20 ; W�►RTSILA NORTH AMERICA, INC. �Y�n.�� Name, 'fiH�: This docueo'�nt �nd ��ey att�cleo�aents �iae�ctm nray ca�et�dn iee€ornaatt�n 8h�t is c�niad�eetial, coeeemerci�!!y- sitiv�, ro t�ieta , aa► /or ra li� �wer en 'li@y c� etitive an �ite�nc[�I ie�for �timn in �ecord� c� itFe t e rovisaaeos oi'Tex�s Govern cnt �� �, ��52.1 lg 20104, 552.11 �n (or 552.133, �n �y 1se r�t�cte ffm°o re uir� u li� iscl u o Form of Individual Eneine Start-Up Certificate W�rtsila North America, Inc,, ("Supplier"), under the Equipment Supply Agreement, dated September 13, 2016 ("Agreement"), between Supplier and the City of Denton ("Buyer"), hereby certiiies that: Engine number _ has cotnpleted its commissioning and start-up process in accordance with Section 5 3.2 of the Agreement and it is in compliance with the Technical Specifications, Capitalized terms used and not defned herein shall have the respective meanings assigned to them in the Agreement. � IN WITNESS WHEREOF, Supplier has executed and delivered this Individual Engine Start-Up Certificate through its duly authorized representative as of the day of _.__ , 20_. WARTSIL,�, NORTH AMERICA, INC. �y� w� - Name: �.�. �..u_� Title: T ia oc e t a a y a �c eeets t ereia ay contai intar atio t ai is c�n denti�t, c� er�ially� sensitiv�, e°o ri� ,�' /or ta lic ower t➢lity co e6itiv� m r��etei te�fot° �tla ira accor a c� tvlt t e ravisio s af'Texas overre ent �o e, Scctio 552.1 t, 552.104, 552.110 a/mr 2.133, a ay e c°ote�te fro re uire u tie isc6 ure. 2 Exhibit 10 — Form of Accentance Certit"icate W�rtsil� North America, Inc. ("Supplier"), under the Equipment Supply Contract, dated September 13, 2016 ("AgreemenY'), between Supplier and the City of Denton ("Buyer"), hereby certifies that: 1. The Equipment has successfully oompleted the Performance Tests of Unit Electrical Output Guarantee and the Unit Heat Rate Guarantee in accordance with the Final Test Procedure, as well as submitted to Buyer the Performance Tests' raw data and applicable reports conf�rming the foregoing. �To be inserled if Supplier elecls �o de/iver Acceplance Certif ca�e on[y upon ►nee[ing Minimum Performance Standards: Supplier acknowledges and agrees that Pcrformance Liquidated Damages in the amount of $L� are due and payable by Supplier to Buyer as of the date hereof and shall be paid or offset in accordance with the Apreement]; and 2. Supplier has delivered to Buyer the documentation under the Agreement's Section 10.1. Capitalized terms used herein and not defined herein shall have the respective meanings assigned to them in the Agreement. IN WITNESS WHEREOF, Supplier has executed and delivered this Acceptance Certificate through its duly authorized representative as of the day of __ , 20 . WARTSILA NORTH AMERICA, INC. By;�.... N�ms "i"itl�: hereby accepts the foregoing in accordance with the terms of the Agreement. IN WITNESS WHEREOF, the City of Denton has caused this Acceptance Certificate to be executed by its duly authorized representative as of the day of �____ _.__ _« 20 . THE CITY OF DENTON I�y:._,.._.� t+���t��: Title: °�"h�s � � �n& �a� ��uy � ��h ��mt� �le���ta �y �aa��s�i�a " ifa��° �ti�� t �t is eo��e �nti�l� �e� ���f���y- 5�BIl9BQl��� �i��9�i�"Y����� �ndtor �uk�lic �a�e�° mrtiN�ty �� ��iti�e ��a �a��n���l infor° '�o� wu� ��cs��d�n�� �it1� t� p�oviseto�as af °�'���s G���e°m��n�nt Cod�p S�c�i�n 5520� (, 552.�04� 552,W �Q ��d6�r 552a3��, �nd ��y b� �S�ut .t�� fr� �s�6�°e� ��li� is�lo�ue°�, CHANGE ORDER � Exhibit 11- Form of Chan�e Order '��i�s�:Nm... � �,,,,,,,,,��,. In accordance with Article 9 of that certain Equipment Supply and Services Contract, dated as of September 13, 2016 (the "Agreement"), between Supplier and Buyer, Supplier and Buyer agree as follows: Description of Change: Original Contract Price $ Previous Change Orders $ Amount of this Change Order $ New Contract Price $ This Change Order will modify the Payment Milestone Date(s) as follows: Increase Decrease No Effect Calendar Days Capitalized terms used and not defined herein shall have the meaning set forth in the Agreement. Except as modified hereby, the Agreement shall remain in full force and effect and unmodified. ACCEPTED BY SUPPLIER ACCEPTED BY BUYER By, Printed Name: By: Printed Name: �����, Title: 'C ig �nt �nd ��y �tt�ch �m�t� lheret� �y c�s� i� ' fa�° �t` � t �t i� ca�n `d�nti�l� co �r�ia�lt�- s�n�iti�e� pr� t°iet� , �n or pu lic �w�r utili �� �titiv� � � �r�l � for �tic�rm m� ���ar ��n�e ith t e r�visi� ��f'I�ex�s ����`� ent �od�, ��eti�ra 5520101, 55Zo1 p 552.110 $ndlor 552a133b � �y r�t��t�d �� r� 'r�d p��lic dis�l�►sur�a 1 Exhibit 12 — Document Delivery Schedule . __.,... _. . �_ _..� __�. _. __ �...__,,.m... � ,_..�,.,....._ Project Milestone's Activity Deliverable Documents Deadline T�t�� Code .�..m _ ,� _ .._..���� �_.__ A1810 Engine and Other Equipment September 22, 2016 Design — Preliminary �.r. w�� � A1820 � Engine and Other Equipment October ��, 2�16 Design — Basic _.�. _ _..__. �.,_ M.�_.. �_.�...m._ � A1830 Other Equipment Design — October 20, 2016 Radiators/Silencers/SCR Final Weights and Sizes _� �.�.�. w.� � �� � ` � 2016 A 1840 Engine and Other Equipment December 7, Design - Detailed This do���e�� �nd �ny �tt�ehrn��ts thee°�t� en�y c�nt�tn inf�rr��tion th�t i� ca�n��ente�t, �o�mer�i�lly- se �itive� r� ri�t� ,� /�r Li� a er tili co �tit�v� � i��i�l t f�r �te� i���ar � c� 't t � ro 'ei�ns �f'i'ex�� av�r � t o e, ��ctia S�.fl , 2e1 , �11 � �r 2m13�$ �n �y rmtect� iro r� �re tic �scl ureo Exhibit 13 - Cancellation Schedule ' Includes all prior payments. 'Th�s cio���ea�t �rad any �tt��h�ments theret� ��y �ont�ire ��f��°matfm�� �h�t is ��anfid���i�lp ��amrn�rcg�ll�- se¢�si�iv�, r� m°i���ry, and/ar pmxblm� cerv�r ut�Nfty �� �e�itiv� ��d �ro�n�m�l inf��° ��ion in ac��ra��m►s� °t!� tl�� rov�siaees c�f T`e��s �av�r�x �nt ��de9 Sea°�ic�n 552a1d1, 5�2o104g 552.110 an !or 5520133, ana� �y be r�t��t�d fr� ��a�uir� e��l�c° �lisc°I�ros�r�. Svstem 12xW50SG-18V50SG � ' '--' -"-' � 100004 100037 100089 100091 100092 100094 100096 100097 100100 100101 100109 100111 100112 100113 100114 100163 107057 107452 111004 111006 111007 111008 111009 111016 111017 111018 111024 111025 113010 113013 113014 113025 120012 120025 120055 120070 120080 120081 120103 121002 121004 121008 121009 121020 121030 121040 123035 123471 123472 Exhibit 14 - Safety Spare Parts List City of Denton Side screw Nut Nut Nut Screw Screw Main bearing shell (upper) Main bearing shell (lower) Cylinder liner Antipolishing ring O-ring O-ring Thrust bearing half Bearing shell Bearing bush Stud Hose gasket Hose gasket Connecting rod, lower part Nut Screw Screw Nut Bearing shell, upper Bearing shell, lower Shim Connecting rod, upper part Bearing bush Securing ring Piston ring set Gudgeon pin Piston, compl. Seat ring, inlet Yoke pin Cylinder head with valves Sealing set for cylinder head Repair kit for cylinder head overhaul Valve guide Seat ring, exhaust Valve cotter O-ring Valve spring, outer Valve spring, inner Inlet valve, compl. Valve rotator, compl. Exhaust valve, compl. Sealing set for starting valve Starting valve Extension piece Confidential Draft "-'' -- 4 8 4 4 4 4 G 4 1 2 2 4 8 4 4 8 4 4 1 4 4 4 4 4 4 2 1 4 4 4 1 1 4 4 2 4 4 4 4 8 8 4 4 2 4 2 2 2 2 124010 124011 124022 124028 124032 124037 124044 124098 124102 124109 124111 124123 124141 141014 141025 141030 141031 141032 141036 141037 143015 143016 143036 143037 143039 148035 148036 148097 148099 148187 1561071 1561072 164004 164006 164010 164015 164167 181245 181246 191235 191236 200252 200325 200327 200328 200329 200333 200338 200339 200340 200369 200378 207184 228158 3501322 Exhibit 14 - Safety Spare Parts List City of Denton Hose gasket Hose gasket O-ring Screw Nut Clamping ring, complete Sealing ring Prechamber assembly with hydraulic valve Sealing ring Prechamber tip Prechamber valve Sealing set Spark plug Bearing bush Valve tappet Tappet roller Locking pin Roller pin Compression spring Valve tappet, complete Yoke, complete, Inlet Valves Yoke, complete, Outlet valves Screw O-ring Rocker arms and bracket Snap ring Guiding pin Camshaft piece Camshaft piece Screw Spare part set Spare part set O-ring O-ring Main gas admission valve O-ring Cable Repair kit Valve kit Sealing set Sealing set Bellows Seal ring Nut Bellows Screw Gasket Screw Nut Sealing ring Screw Bellows Butterfly valve + positioner Solenoid valve Spiral gasket Confidential Draft 4 2 4 6 4 2 4 2 4 2 2 4 4 4 2 4 4 4 4 2 2 2 8 2 1 4 4 1 1 60 1 1 12 4 4 4 4 2 2 2 2 4 2 132 3 48 4 96 96 4 66 4 1 2 4 Exhibit 14 - Safety Spare Parts List City of Denton 6 3501837 Gasket 4 357044 O-ring 4 357045 O-ring 2 357712 Converter 2 5021045 Electrical unit Z 5021131 Electronic unit 2 5021136 Electronic unit 2 502965 Main control unit 2 502977 Power distribution module 2 502978 Power distribution module 2 504295 Coil on plug extension 2 504297 Coil on plug 2 504300 Ignition module 4 504301 Spare part kit 4 5062003 7hermoelement a 5062004 Thermoelement 4 5062606 Knock sensor 2 5063376 Cylinder pressure sensor 2 507982 Electronic unit 2 GS792 Limit switch 2 LS204 Level switch 2 PT201 Pressure sensor 2 PT301 Pressure sensor 2 PT312 Pressure transmitter 2 PT401 Pressure sensor 2 PT471 Pressure transmitter 2 PT601 Pressure sensor 2 PT700 Pressure transmitter Z PT901 Pressure transmitter � PT911 Pressure transmitter 2 PTZ201 Pressure sensor 2 ST173 Speed pick-up 2 ST174 Speed pick-up 2 ST196P Speed sensor � ST196S Speed sensor 2 TE201 Temperature sensor 2 TE401 Temperature sensor 2 TE402 Temperature sensor 2 TE�03 Temperature sensor 2 TE471 Temperature sensor 2 TE511 Temperature sensor 2 TE517 Temperature sensor 2 TE601 Temperature sensor 2 TE700 Temperature sensor 2 TE701 Temperature sensor __ -- - - - 149 Number of different parts 24�rge Air Exhaust gas System-NGA Charge air filter Confidential Draft Exhibit 14 - Safety Spare Parts List City of Denton Part number Descrintion ".- �._! — 10010778 DD PANEL 6' RIGHT 51 10010782 DD PANEL 6' LEFT 51 10010837 10010837 SPEED REDUCER � 4601120 MOTOR 0,18 KW 50HZ � 70001540 70001540 ELECTRONIC TIMER � 9110140 UPPER SHAFT SEAL 2 9110770 CHAIN LINK 200 9110780 JUNCTION LINK 4 9172100 COUPLING NUT 2 Number of different parts 12x�Charge Air Exhaust gas System-NHA Exhaust gas ventilation unit Part� n�mbe� Descrintion 9 3271-11 FLOW SWITCH SF-1K � MPT-290T RADIAL FAN MPT-290T � US1FA.0150 EXHAUS7 GAS BELLOW DN150 � Number of different parts Svstem 24xCharge Air Exhaust gas System-NHA Rupture disc . � r Pa n �mber Descrinti� 282030 GASKET DN1200 2 67111620003 RUPTUF2E DISC CV-S-I-LW-RI DN1200 � WDAAA22168 SUPPORT RING DN1200 2 Number of different parts 12�xCh�arge Air Exhaust gas System-NHA Rupture disc •� �. �..�-- Part number Descri�tion 282030 GASKET DN1200 2 67111620003 RUPTURE DISC CV-S-I-LW-RI DN1200 � WpAAA22168 SUPPORT RiNG DN1200 Z Confidential Draft Exhibit 14 - Safety Spare Parts List City of Denton Number of different parts System 12xCharge Air Exhaust gas System-YBA NOx CombiKat SCR -� �. • �.r Pa number Descri�tion 3 0104.0015 NON RETURN VALVE 1/2 � 0104.0018 NON-RETURN VALVE 3l4 � 0901.0030 SWITCH THERMO SWI7CH 55 � 0902.0021 PRESSURE SWITCH 250-1000 MBAR � 2010.0068 THERMOSTAT 999 C � 2030.0262 CPU � 2030.0352 RESISTOR 5 6000.0042 POWER SUPPLY 100 W � 6000.0115 TEMPERA7URE SENSOR L=650MM/3M � 6000.0823 GATEWAY � 6000.1255 FLOW SENSOR SM600 � 6000.1261 GASKET 77.7X45X3 MM � 6000.2933 LINE SAFETY SWITCH 4A, 2POL � 6000.3081 SOLENOID VAL'VE 24V 481865C2 � 6000.5920 FUSE WITH CONNECTOR 5 6000.7095 MOTOR SAFETY SWITCH PKZMO-2,5 � Number of different parts System 12xCooling water system-Expansion tank Part number Descrintion 16 S90005000 LEVEL SWITCH � Number of different parts �vstem 12xCooling water system-Radiator '.�:.r._�_,.��'-'- 6307C3 6309C3 E8172 FINC00015 KUM325T ��._'........_..._�__� i 6307 C3 BEARING 6309 C3 BEARING FAN MW-1236/6-6/43/PAG/9WR/42/12/A MOTOR UDFNV160L 7,5 KW 750RPM 3/400V 50HZ SAFETY SWITCH KUM 325T Confidential Draft 5 5 1 1 1 Exhibit 14 - Safety Spare Parts List City of benton Number of different parts Svstem 12xElectrical System-BAN- Neutral point cubicle ' •. r i u � • �..-..._ __ +_ ._t-!_ 5 T0105UE CURRENT TRANSFORMER 4 Number of different parts Svstem 2xElectrical System-BEY- DC- system -= - � - ! � _- � r__�_.. Part number Descrintion 18060150 SHUNT 150A/60MV 2 52500211 AUXILIARY CONTACT 07350 4 94M037 LED MODULE 94M037 � 94M096D DIGITAL SUPERVISOR 94M096D � 94M102B FUSE CONTROL UNIT 94M102 � BEB10 EARTH BALANCING UNIT BEB-10 � DX1 C166KA MCB DX-1 C16 6KA z DX2C12510KA MCB DX-2C125 10KA 2 DX2C166KA MCB DX-2C16 6KA 4 DX2C206KA MCB DX-2C20 6KA 4 DX2C326KA MCB DX-2C32 6KA 2 DX2C506KA MCB DX-2C50 6KA 2 DX2C636KA MCB DX-2C63 6KA 2 DX2C66KA MCB DX-2C6 6A 4 ELM10 EARTH LEAKAGE MONITOR ELM-10 � IPS1800110V RECTIFIER II'S 1800 110V � MPK318D24V SYSTEM ADAPTER MPK 318D/24V � MPK320DRCU24V CONTROL UNIT MPK-320D RCU/24V � MPK34724V FUSE ADAPTER MPK 347/24V � MSR2440 RECTIFIER MSR24/40 � Number of different parts Svstem 12xElectrical System-BJA- Engine auxiliary panel af � nare narts -. i � :,,,. •• , •, Confidential Draft 20 Exhibit 14 - Safety Spare Parts List City of Denton 140AC013000 ANALOG OUTPUT 140 ACO 130 00 2 140ARI03010 ANALOG INPUT 140 ARI 030 10 2 140CPS51100 POWER SUPPLY UNIT 140 CPS 511 00 2 140CRA93100 RIO DROP MODULE 140 CRA 931 00 2 140DDI35300 DIGITAL INPUT 140 DDI 353 00 2 140DD035300 DIGITAL OU7PUT 140 DDO 353 00 2 140XTS00200 TERMINAL STRIP 140 XTS 002 00 2 1SNA631025R1400 DIGI7AL INPUT MODULE BOM-16-B; 1SNA631025R1400 2 A16301084110VAC CONTACTOR A 16-30-10-841110VAC 2 A50300084110VAC CONTACTOR A 50-30-00-84I110VAC 2 A930018124VAC CONTACTOR A 9-30-01-81/24VAC 4 A9301084110V CONTACTOR A 9-30-10-84/110VAC 2 AUX 1 Q 1 SY AUXILIARY CONTACT AUX 1 Q 1 SY; 250V AClDC; T1-T6 2 CA5-01 AUXILIARY CONTACT CA5-01 2 CA5-10 AUXILIARY CONTACT CA5-10 z E27240V60W BULB E27; 240V 60W Z GARDO; MAX 60W PANEL L.IGHT GARDO MAX 60W 4 HK1-11 AUXILIARY CONTACT HK1-11 2 JSBRT1124VDC SAFETY RELAY JSBRT11 24VDC 2 MS 116-16 MOTOR STARTER MS 116-16; 10-16A 2 MS 116-4.0 MO70R STARTER MS 116-4.0; 2.5-4.OA 2 MS 116-6.3 MOTOR STARTER MS 116-6.3; 4.0-6.3A 2 PT3P7615115VAC AC-AUXILIARY RELAY PT 3P7615 115 VAC 4 PT5D702424VDC DC-AUXILIARY RELAY PT 5D7024 2 QUINTPS1AC24DC5 DC POWER SUPPLY QUINT-PS/1AC/24DC/5 2 S 203-C 4 MCB S 203-C 4 4 S201-C1 MCB S201-C1 2 S201-C2 MCB S201-C2 2 S201-C3 MCB S201-C3 2 S202-C4 MCB S202-C4 10 S2CH6R AUXILIARY CONTACT S2C-H6R 6 S506-100-R-B TUBE FUSE S506-100-R-B; 100MA 5X20MM 2 SK 3325.107 FILTER FAN SK 3325.107 230 V 2 SK 3325.207 FILTER SK 3325.207 2 SK3110 THERMOSTAT SK 3110 2 SK311650120W HEATER SK3116; 50/120W 2 T2N160FF3MA52 COMPACT BREAKER 2 T2N160FF3TMD160 COMPACT BREAKER 2 TA75DU42 THERMAL RELAY TA 75 DU 42 29; 22-42A 100 WDU4 TERMINAL WDU 4 2 XRFE16124 DIGITAL RELAY OUTPUT MODULE XRFE16124 2 ZB5-AA2 PUSH BUTTON ZB5-AA2; BLACK; ZB5-AZ101 2 ZB5-AA3 PUSH BUTTON Z65-AA3; GREEN; ZB5-AZ101 2 Z65-AK1213 LIGHT SWITCH HANDLE WHITE ZB5-AK1213 4 ZB5-AK1313 LIGHT SWITCH HANDLE Z65-AK1313 WHITE Z65-AS844 EMERGENCY STOP BUTTON ZB5-AS844; ZB5-AZ104; ZH � ZB5-AW0B13 BODY/ CONTACT BLOCK WITH LEQ ZB5-AW0613 2 ZB5AW313 PUSH BUTTON ZB5-AW313 4 ZBE-101 CONTACT BLOCK ZBE-101 _ __ _ _ ___ _ __ Number of different parts 49 Svstem 12xElectrical System-BLP- Freguency converter Confidential Draft Exhibit 14 - Safety Spare Parts List City of Denton Safetv snare narts ••� �.�i�_'.. '=__....! " NX502615A2H FREQUENCY CONVERiER 2 Number of different parts Svstem 12xElectrical System-BLP- Radiator panel ' ._�_'_:-i�-'--- �= -'--=' MS325-12.5+HK11 CIRCUIT BREAKER MS325-12.5+HK11 4 OA1G10 AUXILIARY CONTACT 4 5201-C4 MCB S201-C4 4 S2CH6R AUXILIARY CONTACT S2C-H6R `� SK3110 THERMOSTAT SK 3110 4 SK311650120W HEATER SK3116; 50/120W 4 SK3322107 FILTER FAN SK 3322.107 4 SK3322207 OUTLET FILTER SK 3322.207 4 Number of different parts Svstem 2xElectrical System-CFA- Controi- system � � r .. � i . � �_ �_ -._.. 14 AC013000 140 CPS 511 00 140 CPU 434 12A 140AC002000 140ARI03010 140ATI03000 140AV103000 140CPS52400 140CRA93100 140CRP93100 140DD135300 140DD035300 140NOE77101 140XTS00200 140XTS0020010 2FTQ96-X 952RGOD24VDC AVK9020B �= - -'—' � ANALOG OUTPUT 140 ACO 130 00; 8 CHANNELS, 24VDC CPU 140 CPS 511 00 125VDC 3A CPU 1A0 CPU 434 12A ANALOG OUTPUT 140 ACO 020 00; 4 CHANNELS, 24VDC ANALOG INPUT 140 ARI 030 10 THERMOCOUPLE INPUT 140 ATI 030 00 $ CHANNELS ANALOG INPUT 140 AVI 030 00; 8 CHANNELS POWER SUPPLY 140 CPS 524 00 RIO DROP MODULE 140 CRA 931 00 RIO HEAD MODULE 140 CRP 931 00 DIGITAL INPUT 140 DDI 353 00 DIGITAL OUTPUT 140 DDO 353 00 ETHERNET CARD 140 NOE 771 01 TERMINAL STRIP 140 XTS 002 00 TERMINAL STRIP 140 XTS 002 00 FOR I/O DOUBLE FREQUENCY METER 2FTQ96-X POSITION INDICATOR 952RGOD 24VDC PANEL LIGHT AVK 9020B Confidential Draft 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 1 C60N1 PC0,50F C60N1PC10F C60N1PC20F C60N2PC0,50F C60N2PC20F C60N2PC40F C60N2PC60F CSQ-3 DQ96-C DQ96-XACTI DQ96-XPOWE DQ96-XREAC EQ96-XCURR EQ96-XVOLT FAS115DG FCA161116 FCA1611732 FL-SWITCH 8TX FLSWITCHSF16TX FTQ96-X HP21220313 JSBRT1124VDC MT321110 P22061049219M 1 P22061312219M1 PT3P7615115VAC PT5D7110110VDC QUINTPS100240 ROM16CBK101 K116 ROM16CBK117K132 S504-100-C SF1258101 SK 3116 SK 3325.107 SK 3325.207 SK3110 TU2R3 VAMP 210-5A7AAA VAMP 260-5C7AAA VAMP 265-5A7AAA VX003-3 WDK4N1D W DU4 WS16 WTL61 STB ZB5-AS844 ZB5AA1 ZB5AA3 ZB5AA8234 ZB5AD2 ZB5AD3 Z65AD5 Z65AK1413 Z65AWOB11 Z65AW 313 Exhibit 14 - Safety Spare Parts List City of Denton MCB C60N 1 P C0,5; OF MCB C60N 1P C1; OF MCB C60N 1 P C2; OF MCB C60N 2P C0,5; OF MCB C60N 2P C2; OF MCB C60N 2P C4; OF MCB C60N 2P C6; OF SYNCH.SCOPE CSQ-3 100V-127 VAC RPM-METER DQ96-C ACTIVE POWER METER DQ96-X POWER FACTOR METER bQ96-X REACTIVE POWER METER DQ96-X CURRENT METER EQ96-X VOLTMETER EQ96-X AUTO-SYNCHRONIZER FAS-115DG INPUT MODULE FCA 161 (1-16) INPUT MODULE FCA 161 (17-32) FL-SWITCH SF 8TX FL SWI7CH SF 16TX FREQUENCY METER FTQ96-X ALARM HORN HP-21220313 24VDC SAFETY RELAY JSBRT11 24VDC DC-AUXILIARY RELAY MT 321110 110 VDC SWITCH P220-61049-219M1; ENG., TURBO A, TURBO B SWITCH P220-61 31 2-21 9M1; 0, L1-L2, L2-L3, L3-L1 AC-AUXILIARY RELAY PT 3P7615 115 VAC DC-AUXILIARY RELAY PT 5D7110 110 VDC DC/DC CONVERTER QUINT-PS; -100-240VAC/24VDC/5 OUTPUT MODULE ROM16CB K101-K116 OUTPUT MODULE ROM16CB K117-K132 TUBE FUSE S504-100-C 100MA ALARM BLINK SF-125-81-01 24VDC HEATER SK3116 50/120W FILTER FAN SK 3325.107 230 V FILTER SK 3325.207 THERMOSTAT SK 3110 TIME RELAY TU2f23, 12-240VAC/DC GENERATOR PROTEC. RELAY VAMP 210-5A7AAA PMU VAMP 260-5C7AAA 40-265VACNDC GENERATOR DIFF. RELAY VAMP 265-5A7AAA CABLE VX003-3 DIODE TERMINAL WDK 4N1 D(856966) TERMINAL WDU 4 TUBE FUSE TERMINAL WSI 6 CONTACT BLOCK WTL-6/1/STB EMERGENCY STOP BUTTON Z65-AS844; Z65-AZ104; ZH PUSH BUTTON ZB5-AA1 PUSH BUTTON ZB5-AA3 DOUBLE PUSH BUTTON Z65-AA8234; Z65-AZ103 SWITCH HANDLE ZB5-AD2 SWITCH HANDLE ZB5-AD3 SWITCH HANDLE Z65-AD5 SWITCH HANDLE ZB5-AK1413 � PUSH BUTTON ZB5-AWOB11 PUSH BUTiON Z65-AW313 Confidential Draft Exhibit 14 - Safety Spare Parts List City of Denton ZB5AZ101 BODY Z65-AZ101 � ZB5AZ103 BODY Z65-AZ103 � Z65AZ105 BODY Z65-AZ105 � ZBE-101 CONTACT BLOCK ZBE-101 � Number of different parts Svstem 12xElectrical System-CFC- Control- system Part number Descrintion 77 140AC002000 ANALOG OUTPUT 140 ACO 020 00; 4 CHANNELS, 24VDC 1 140CPS52400 POWER SUPPLY 140 CPS 524 00 � 140CPU65150 CPU 140 CPU 651 50 � 140CRP93100 RIO HEAD MODULE 140 CRP 931 00 � 140DDI35300 DIGITAL INPUT 140 DDI 353 00 2 140DD035300 DIGITAL OUTPUT 140 DDO 353 00 � 140NOE77101 ETHERNET CARD 140 NOE 771 01 � 140XTS00200 TERMINAL STRIP 140 XTS 002 00 � 1SNA631025R1400 DIGITAL INPUT MODULE BOM-16-B; 1SNA631025R1400 2 BE913800/110 VOLTAGE METER BE96; 13800/110V; 0-20KV � BE96 RPM- METER BE96; 4-20MA, 0-1000 RPM, 0-30000 RPM 1 BE9642005105 POWER FACTOR METER BE96; 4-20MA= 0,5-1-0,5CAP-IN 1 BE96420MA4016 REACTIVE POWER METER BE96; 4-20MA= -4-0-16 MVAR � BE96420MA=0-20 ACTIVE POWER METER BE96; 4-20MA = 0-20MW � BE9655-65HZ110 FREQUENCY METER BE96; 110V; 55-65HZ � BE96;1000/5A CURRENT METER BE96; 1000/5A, 1000/2000A � E27240V60W BULB E27; 240V 60W � GARDOMAX60W PANEL LIGHT GARDO; MAX 60W � P22061049219M1 SWITCH P220-61049-219M1; ENG., TURBO A, TURBO B 1 P22061312219M1 SWITCH P220-61312-219M1; 0, L1-L2, L2-L3, L3-L1 � PT3P7615115VAC AC-AUXILIARY RELAY PT 3P7615 115 VAC � PT5D7110110VDC DC-AUXILIARY RELAY PT 5D7110 110 VDC � QUINTPS1AC24QC5 DC POWER SUPPLY QUINT-PS/1AC/24DC/5 � S201-C1 MCB S201-C1 2 S202-C 2 MCB S 202-C 2 2 S202-C4 MCB S202-C4 2 S2C-H6R AUXILIARY CONTACT S 2C-H6R 2 S506100R6100MA TUBE FUSE S506-100-R-B; 100MA, 5X20MM 10 SK311650120W HEATER SK3116; 50/120W � VAMP2105A7AHC GENERATOR PROTECTION RELAY VAMP 210-5A7AHC 1 VAMP2605C7AHC PMU VAMP 260-5C7AHC � VAMP2655A7AHC GENERATOR DIFFERENTIA� RELAY VAMP 265-5A7AHC � 1 WDU4 TERMINAL WDU 4 50 WTL 6/1 EN STB TERMINAL WTL 6/1/ EN STB 20 XRFE16124 DIGITAL RELAY OUTPUT MODULE XRFE16124 � ZB5AS844REDZB5 EMERGENCY STOP BU7TON ZB5-AS844; Z65-AZ104; ZH 1 Number of different parts Confidential Draft 36 Exhibit 14 - Safety Spare Parts List City of Denton Svstem 12xGas System-Compact gas ramp Part number Descri�tion 1161771040 FILTER ELEMENT FOR FF1040 FILTER 2 916045044 GASKET SET FOR FF1040 FILTER � GE00077X012 GASKET SET FOR GX DN25 � GE00080X012 GASKET SET FOR GX DN80 � RGXPACKX012 REPAIR KIT DN25-50 � RGXPACKX022 PACKING KIT FOR GX DN80 � Numbe� of different parts Svstem 12xGenerator-Flexible coupling Safet� snare narts Pa number Descrintion SPG412747 MIN. SPARE PART SET FOR BC140/25/62H '�_ Number of different parts � Svstem 12xGenerator-Generator Safetv snare narts `.r � u�• �' � •�. 9893309 SPARE PARTS PACKAGE � Number of different parts Svstem 2xLube Oil System - Lube Oil unit-QAE Lube oil transfer pump unit, station <r �.��r•� 6204-2Z/C3 6305-2ZIC3 D20157050 D20157070 D20157100 �• � ��. BEARING 6204-2Z/C3 BEARING 6305-2Z/C3 MINOR KIT G053 FOR ACE 038N3 XVXX VALVE ELEMENT G070 FOR ACE 038N3 XXXP ROTOR SET G012 FOR ACE 038N3 Confidential Qraft Exhibit 14 - Safety Spare Parts List City of Denton Number of different parts Svstem 12xLube Oil System - Lube Oil unit-QBF Oil mist separator Part_� number � 578628-01 SERVICE KIT 1 � 578628-02 SERVICE KI7 2 � 578628-05 SERVICE KIT 4 � Number of different parts Svstern� 12xLube Oil System - Lube Oil unit-QEA/ MOD modules -� �. �..,,_ Part number Descrintion 1345456 FILTER ELEMENT FOR 6.46 DN150 22 30840058 FLOW GASKET FOR HEAT EXCHANGER APV A085 4 30840059 END GASKE7 FOR HEAT EXCHANGER APV A085 4 330 042 FINE FILTER G5XP4-D 2 3839377 GASKE7 SET FOR 6.46 DN150 2 46363X002 SERVICE KIT FOR ACTUA70R 2 47961X106 SERVICE KIT FOR VALVE AMOT TYPE 6G 2 6210-C3 BEARING 6210/C3 � 6312-C3 BEARING 6312/C3 � 8064COOAA I/P CONVERTER 8064C00-AA 2 D20118014 R070R SET G012 FOR ACF 110L4 � D20118018 VALVE ELEMENT G057 FOR ACF 110L4 � D20118035 MINOR KIT G053 FOR ACF 110L4 � E1285555 FLEXIBLE COUPLING E128/55/55 � L-32A/2 GASKET SE7 FOR L-32A/2 � LT-50B/2 GASKET SET FOR LT-506/2 (f71100) � P20008000 PRESSURE GAUGE 4 P20009000 PRESSURE GAUGE 4 T20014000 THERMOMETER 0-120 C � 4 T40008000 TEMPERATURE SENSOR MB286T125U � Number of different parts 2x�Ltu�be Oil System - Lube Oil unit-QLC Lube oil transfer pump unit, mobile . .- � •i_ _�._�__�_-_�!.�..'.__ ._-----.....:_._ Confidential Draft 20 Exhibit 14 - Safety Spare Parts List City of Denton 6204-2Z/C3 BEARING 6204-2Z/C3 1 6305-2Z/C3 BEARING 6305-2Z/C3 � D20157050 MINOR KI7 G053 FOR ACE 038N3 XVXX 1 D20157070 VALVE ELEMENT G070 FOR ACE 036N3 XXXP 1 D20157100 ROTOR SET G012 FOR ACE 038N3 __ __ Number of different parts Confidential Draft Exhibit 15A — Form of Partial Lien Waiver CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT Project: Denton Energy Center On receipt by the signer of this document of a check from (maker of check) in the sum of $ __ payable to N __ (payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of (owner) located at (job description). (location) to the following extent: This release covers a progress payment for all labor, services, eyuipment, or materials . furnished to the property or to (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished. Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer. The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, o'r services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s). is �e ee►t � y�tt�c e t� t�reto �y �� t�i infar ati� t�t is corr�i e�rti�l, �o e����flya se °tiv�p �a riet� ,� /�r u li� o er tili ca etitive �e �nci�l i�r �ti� i�cc�r �nc� e�it t e r� si na of ex�s odee°n � t� e, ectio 52afl 1, 5 2DR 4, 5 ell �n Bot' 2�133, ��o �y ratecte ir� ui lic isclos r�s Date -.� _ � _ .., �� (Company name) BY . , �. (Signature) -- ,.�....... . � �_ (Title) STATE OF TEXAS § COUNTY OF _ _.. _ § ACKNOWLEDGED, SUBSCRIBED AND SWORN TO BEFORE ME, by who is the _ e_ _ of on this ...._ — -...�. _..e,_ _ the day of _ _�, 20____. Notary Public In and For The State of Texas "�'���� ����sx�a���� a���� a����r �����aa����� ��e�s����� ���y �•t�bi���i1� la�i"��rta�%r�a� �h�� �� c���d�nii�l, ���m�c�i�lly— �����E��+�� ��•���°a�t�a�p ���1�a�� #������: ��e��� ��G���� �s�a����i���� ��� ����r������ �af�e��t��� �n �ecas�°d�nc� wvith t1�� ���c��i�l�r�� �r�'�e�;�a� ���r�����a���� d'�ri��, ���i��x ���.�i��, ��2.���, ���w�id.� a o�° 201 : J° ��tst�����! ���� �°����i��c� ���9�Ni� d���.ir���im�< 2 NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATE5 THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. IT IS PROHIB�TED FOR A PERSON TO REQUIRE YOU TO SIGN THIS DOCUMENT IF YOU HAVE NOT BEEN PAID THE PAYMENT AMOUNT SET FORTH BELOW. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM. UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT Project Job No. The signer of this document has been paid and has received a progress payment in the sum of $ following extent: for all labor, services, equipment, or materials furnished to the property or to (person with whom signer contracted) on the property of (owner) located at (location) to the (job description). The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the above referenced project to the following extent: This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished. i� u�nt $ �n� tt�� � t ereto �y ��nt�i infmr �tio t�i is c�n e ti�l� �� erci�lly- se �i 'v�, e°o e°ieta ,� /�r lic a�r tile c� �titl�� a �i � ci�l i far �'o i�ce�e° ��sce it t� ro sio s of �x s av�rn ent C� e, � 2.1 1, 2.fl 4� S52o11 ��r !�r 2afl33, � �y rotect� fro r� 'rc u�ic iscNasur°e. 3 The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s). Date � �....._ �..�.. _......_...,..... (Company name) BY�.� _ _.. (Signature) - (Title) �"�� � — _ __._—.__ . STATE OF.TEXAS COUNTY OF ACKNOWLEDGED, SUBSCRIBED AND SWORN TO BEFORE ME, by who is the of on this __ _ Y --- .. p. � __ . _. —,w.._._ the da of � a�� 20� Notary Public In and For The State of Te�cas 'rs ��i � d �[�y �ti�� ents t �reto �y cont�i infar �t�on t �t ' �on �nti�l, �o �rci�lty- s� sitiv�, ro rieta ,�ea /or lic a�� titi �o �tltive � n� '� i f�r �teo in ��c�r � ce it t e r� 'sions of �x�s mver e t�o �, '0 2e1 1, 552.1 , 2.11 �n �r 55�0133, �n �y r�t�cte f�°� r� ui a tic i�elo��trea 4 Exhibit 15B — Form of Final Lien Waiver CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT Project Job No. On receipt by the signer of this document of a check from (maker of check) in the sum of $v .� payable to __ _ w _(payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of following extent: (owner) located at (job description). (location) to the This release covers the final payment to the signer for all labor, services, equipment, or matcrials furnished to the property or to contracted). (person with whom signer Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer. The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release. i� � t��s � y�t��c � ts t eret� �y co tai i�r ti� t�t is ��� enti I, c� �rci�lly- sensit° e, ro e°' 4� ,� /or u 1'rc o e�° Eil� eo �'i�v� � �i � ci�l info� �tion in ��cor $ ee t t e ra 'si��s of �x�a �ver � t� e, 0 201 1, 2.1 , 52s11 � ar 52e133, � �y rate�te fr� �°� ui u le� isc9 ur�o Date (Company name) BY� .,��._ _� � (Signature) (Title) � � STATE OF TEXAS COUNTY OF ACKNOWLEDGED, SUBSCRiBED AND SWORN TO BEFORE ME, by who is the of �_ on this _ �_ �m�.. -.. —. � _ — the day of x._.____ _� 20� Notary Public In and For The State of Texas i� u�nt � � y� � � t� t e t� �y c n i in�or '� t t i� ��n e° 1, c ���i fly� �n�i 'v�� r� ri�f , / �° 1�� �r ca �ti v� �i �i I i ar o i c�o c� i4 t �i� � � c�v r � t oq � � ml 1, a1 4, 0 1 or e� 3, � �y r� c�� f r i !ic iecl r�o 2 NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. IT IS PROHIBITED FOR A PERSON TO REQUIRE YOU TO SIGN THIS DOCUMENT IF YOU HAVE NOT BEEN PAID THE PAYMENT AMOUNT SET FORTH BELOW. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM. UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT Project Job No. The signer of this document has been paid in full for all labor, services, eyuipment, or materials furnished to the property or to contracted) on description). the property of (location) to the following extent: (person with whom signer (owner) located at (job The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any comtnon law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position. The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release. is � t are �ny �tt�c e ts t�ret� �y e�ntai mtefmr �ti�n t�t is e�n enti�l, �o erei�liy- s�eesitive, r� riet� ,� /or u lic o ee° utiRi ca� ctitive � f na cis6 i for �tioee i$ccor �nc� wit t e '�io � off ex�s ov�e° e t e, ection ol 1, 5 2e1 , 2.flfl �/or 5�.13�, are �y r°�tecte fra re ire u lic i�cl rea 3 Date .__m�.... �. _ _._ (Company name) BY_ _.� n_.W � � _ (Signature) __..... ......_ _ (Title) STATE OF TEXAS COUNTY OF ACKNOWLEDGED, SUBSCRIBED AND SWORN TO BEFORE ME, by mm who is the of _ eN yo un this _ �. �_� . . � �, � the day of _ � � , 20 Notary Public In and For The State of Texas is u e t � � y �tt � e ts t ��eto �y �a t�i � fo� �t�on � �t ° ca , �nti�l, co �rct�lly� s�n�itiv�, ra riet ,� /a�° u lic �wer ut�lt co �titive $ �a�� �i�l i or �t` � i $cc�r �nc� it t e x°� 'si� ��f ex�� ov�r e t e, ti� 2.1 1, �52a1 5 2s1 �n �r �133, � �y r�etect� fro re ire � lic iscl �eee. 4 DATE: Exhibit 16 - Form of Mechanical Comnletion Certificate MECHANICAL COMPLETION CERTIFICATE Buyer has delivered this form, completed except for signature by Supplier, to Supplier's duly authorized representative on the above date. Capitalized terms used herein have the meanings set forth in the Equipment Purchase Contract, dated as of September 13, 2016 (the "Agreement"), by and between The City of Denton, TX, as buyer ("Buyer"), and Wartsil� North America, Inc., as supplier ("Supplier"). 2. Pursuant to Section 5.3.1 of the Agreement, Buyer certifies and represents that the following statements are true as of the date set forth above for Generator Set serial numbers: the Generator Sets have been installed on their respective foundations and have been connected to all such other equipment as required by way of piping, wiring, controls and safety systems, with confirmation that all balance of plant eyuipment necessary to supply or receive ammonia, water, lube oil and electricity from these systems has been installed and is functional; ii, the Generator Sets control systems have been installed and checked out to verify functionality; iii. as regards to the components comprising each Generator Sets, the following has occurred: 1. all alignment of piping and mechanical eyuipment has been verified; 2. all wiring of components for power and control is complete and all testing thereof complete, with confrmation that the same is functional; all electrical signals have been point-to-point checked to verify that such equipment and operating systems have been correctly installed and verifed to respond to simulated test signals equivalent to actual signals received during operation; is e t� d� y��c � ts t eret� �y c� t�t i�r° �ii�� t�t is �ce e eeati�t, ca �rci�lly- s�ns��ivem ro `et� ,� d/ae° u lic o�r tili c� '°v� � fi ��'s�l i ar �ti� in �cc�r �n�� it t� r� �9't0 9�C e� s overn e t �, '� 5 2s1 i, 52�1 4, 2.1� � or 20133, �n �y � rot�ete Fr� r� ul�� u lic isci��ure. 4, all systems have been hydrostatically tested; and flushed (as directed by Supplier); all such components have been individually cleaned, leak checked, lubricated; 6. all initial fills have been completed; 7. all instruments have been calibrated; all relays have been set; all equipment has been checked out; 10. all ground checks have been made; 11. all motor rotation checks are complete; 12. the Generators have been correctly connected with the Buyer's transmission system, including verification of correct phasing; and iv, all utilities and services are in place to permit safe full load operation of the Generator Sets, and the Generator Sets are ready for initial Start-Up operation, and may be so operated in accordance with any applicable Laws and Prudent Electrical Practices, without damage thereto or to any other property and without injury to any person. v. all plant systems and subsystems have been installed, the equipment and systems included therein can be operated in a manner that does not void any Suppliers or Subsupplier system warranty and Buyer has made the Generator sets available for synchronization; 3. The person signing below is authorized to submit this form, to Supplier for and on behalf of Buyer. '�' is oc � t� y� c e t� t ereto �y ��nt ist i�r 4i�n t�t is c[�n� � ti��, co � i��ly- ��n�ftive, r� rie6� ,� / r li� �r tili co �lst` �� fi � ci�l i ar tio i�cc�a° � ce 't ! e r� °sia�s o� s��er � i eq tio 201 1, � 2.1 g 2e1 � �� 2e1 3, � y rote�te r� r ere li� i�cl re. BUYER By: Name: Title: Supplier to cross through one (1) ofthe following statements: A. Supplier agrees that Mechanical Completion (pursuant to Section 5,3.11 has been achieved. Mechanical Completion was achieved on the date %rst written above and is effective as of that date. B. Supplier does not agree that Mechanical Completion (pursuant to Section 5.3.1) has been achieved as set forth due to reasons listed below: WARTSILA NORTH AMERICA, INC. By: Natrfe; Title: Date: This form must be signed by the person authorized to sign this Mechanical Completion Certificate for and on behalf of Supplier. i� �n ��& �n � y �tt�� e t� t �r�t� �y ��nt�i� i fo� � °� d �t ' ����e �nti�l$ co ��°���Ray_ ���tiv�, �� �i� , ss� 1�0° ublic a��r utll� c� ��itGv� �� f��e���l f���r � Bor� in ���or ���e ��t t� r� ''� ���° e��v��°n ��� Co es S ti�n 5 2.1 1, 552af 4� SSZaIll � trr 552.133, � d �y ��t��t� fr� r� nsi tr ti� iset um°�o Exhibit 17- Form of Final Comnletion Certificate FINAL COMPLETION CERTIFICATE W�rtsil� North America, Inc. ("Supplier"), under the Equipment Supply Contract, dated September 13, 2016 ("Agreement"), between Supplier and City of Denton ("Buyer"), hereby certifies that: l. The Equipment has successfully completed all Performance Tests in accordance with the Final Test Procedure, and Supplier has submitted to Buyer the Performance Tests' raw data and applicable reports confirming the foregoing; 2. Supplier acknowledges and agrees that [select one: Performance Liquidated Damages in the amount of $�� are due and payable by Supplier to Buyer as of the date hereof and shall be paid or offset in accordance with the Agreement or no Performance Liquidated Damages are due and payable by Supplier to Buyer as of the date hereofJ; and 3. [select one: Supplier has received any Performance Bonus Payments due and payable by Buyer to Supplier under this Agreement or Supplier acknowledges and agrees that no Performance Bonus Fayments due and payable by Buyer to Supplier under this Agreement]; and 4. Supplier has delivered to Buyer all final conditional lien waivers and releases related to the Work to date for which Buyer has been invoiced. Capitalized terms used herein and not defned herein shall have the respective meanings assigned to them in the Agreement. IN WITNESS WHEREOF, Supplier has executed and delivered this Final Completion Certificate through its duly authorized representative as of the day of � , 20 . WARTSILA NORTH AMERICA, INC. � Name: Title: i; � �, � �� ;i. r r � � r,r, � , y � : �: � � i � �' � �� � x� ��;' �s Buyer to cross through one (l) of the following statements: A. Buyer agrees that Final Completion was achieved on the date first written above and is effective as of that date. B. Buyer does not agree that Final Completion has been achieved as set forth herein due to reasons listed in Attachment A hereto: BUYER By: Name: Title: Date: This form must be signed by the person authorized to sign this Final Completion Certificate for and on behalf of Buyer. 'I°hi� d�utt��a�i ��d ��ay �t��n��tsis i�`i�°r:ta �Y�t�y+ �.�n�Eti�ia �n�"�srtx��tFs�� th�i �� ��xzi'i����ti�l* �c�r�����r����l�-����itiv�, r�pri� r�� �r� or ptt li� pc� �r uYifi�� ���a������i�� ����� �����i�al i�x�"��r ��ia�r� iri ��:+�a��i���r�� wvi�Fa �I�� �5����r��i���� r��" 'T�x�s G�vernrre�rr►t ���� 3�i�r� 5���9�4, ���.�1�1 a�r���lc�r 5�:��1���} and r���y h� �rr�i��i�r� �i°��� r�r���ir�� ���r�lia� discl�s�rea City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ,;. www.cityofdenton.com �������� Legislation Text File #: ID 16-1032, Version: 1 AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: AGENDA DATE: Bryan Langley September 13, 2016 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, a Texas home-rule municipal corporation, providing for, authorizing, and approving the execution by the City Manager, or his designee, of an engineering, procurement and construction agreement for the construction of an electric power generation facility between the City of Denton and Burns and McDonnell Engineering Company, Inc. a Missouri corporation„ approving the execution of such other and further related documents deemed necessary to effectuate this transaction by the City Manager or his designee, which are incident or related thereto; confirming and ratifying that the City of Denton, its City Manager, and its City Attorney shall be authorized and empowered to perform such acts and obligations as are reasonably required to consummate this transaction; ratifying all prior actions taken by the City Council, City Manager, and City Attorney, or their designees, in furtherance of the foregoing transaction; and determining that the said documents involved in this transaction pertain to a"competitive electric matter" as set forth under the provisions of §§551.086 and 552.133 of the Texas Government Code, as amended; adopting significant recitations, findings and conclusions, as are set forth in the preamble of this ordinance; that the construction of the electric power generation plant by the City under the terms of this engineering, procurement and construction agreement are in the public welfare; authorizing the expenditure of funds therefore; providing an effective date. RFQ INFORMATION Denton Municipal Electric (DME) staff has presented the Renewable Denton Plan (RDP) to the Public Utilities Board at several meetings between May 2015 and present. DME has also presented the RDP to the City Council at several meetings during the same time frame. During these meetings DME has outlined the associated components of the RDP, including over 300 MW of new renewable capacity to reach 70% renewable penetration and construction of a 220 MW quick start facility for firming the new renewable capacity. DME has presented the estimated cost that would be required to implement the RDP, including the up-front capital cost for the quick-start facility Requests for Qualifications for design-build of the proposed Denton Energy Center (quick-start facility) were sent to seven (7) prospective suppliers. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received. The proposals were evaluated based upon identification and understanding of the City's requirements for the project, past performance and experience on projects of this magnitude and complexity, experience and qualifications of the respondent and key personnel available for the project, and proposed schedule for services City of Denton Page 1 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1032, Version: 1 to be performed. Burns and McDonnell, Engineering Co., Inc. (Burns and McDonnell) was ranked with the highest score and determined to be the best value for the City. In order to ensure that the DME staff can effectively firm the new variable renewable capacity, the quick start facility is required and is especially important as a hedging mechanism during periods of potential price volatility in the ERCOT market. With the quick start facility designed and constructed by Burns and McDonnell, DME will be able to move quickly in the market and secure and firm the energy supply for the City of Denton. Burns and McDonnell is an industry leader in design and execution of utility scale reciprocating engine projects. Their experience in Reciprocating Internal Combustion Engine (RICE) projects is unmatched and includes designing ten of the last twelve large gas engine projects in the U.S. market, with seven RICE Projects greater than SOMW. These projects include: • Midwest Energy Goodman Energy Center in Kansas (75.6 MW), • STEC Pearsall Project in Texas (202 MW), • GEUS Engine Plant in Texas (252 MW), • Modesto Irrigation District Woodland 3 Generation Project in California (49 MW), • LCEC Generation Plant in New Mexico (46.7MW), • MEA's Eklutna Generation Station in Alaska (176 MW), • Mid-Kansas Electric's Rubart Station in Kansas (110 MW), • STEC Redgate Project in Texas (220 MW), • Stillwater Utilities Authority in Oklahoma (56 MW), • City of Coffeyville in Kansas (56 MW). Both the design engineers and the construction management team members have knowledge of the subtle design interface issues, contract document submittal processes, subcontracted vendor equipment design team personnel and executive management professionals in order to provide a team with the highest potential for RICE project success in the industry. PRIOR ACTION/REVIEW (Council, Boards, Commissions) • 12/14/2015 - Public Utilities Board approved RDP Resolution • 06/21/2016 - Council approved RDP Resolution • 06/21/2016 - Council approved financing RECOMMENDATION Approve a contract with Burns and McDonnell, Engineering Co., Inc. PRINCIPAL PLACE OF BUSINESS Burns and McDonnell, Engineering Co., Inc. Kansas City, MO City of Denton Page 2 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ File #: ID 16-1032, Version: 1 ESTIMATED SCHEDULE OF PROJECT 08/08/2016 - Public Utilities Board Closed Session Summer 2018 - Commercial Operation Date (COD) FISCAL INFORMATION This project has been budgeted in the Denton Municipal Electric budget and implementation schedule. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Related Goal: EXHIBITS Exhibit l: Ordinance Exhibit 2: Contract Organizational Excellence 2.3 Promote superior utility services and facilities Respectfully submitted: Chuck Springer, 349-8260 Director of Finance For information concerning this acquisition, contact: William A. Bunselmeyer at 349-7328. City of Denton Page 3 of 3 Printed on 9/10/2016 �ovt�r�d bv I_�gitiY�rTr^ EXHIBIT 2 ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, A TEXAS HOME- RULE MUNICIPAL CORPORATION, PROVIDING FOR, AUTHORIZING, AND APPRQVING THE EXECUTION BY THE CITY MANAGER, OR HIS DESIGNEE, OF AN ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT FOR THE CONSTRUCTION OF AN ELECTRIC POWER GENERATION FACILITY BETWEEN THE CITY OF DENTON AND BURNS AND MCDONNELL ENGINEERING COMPANY, INC. A MISSOURI CORPORATION; APPROVING THE EXECUTTON OF SUCH OTHER AND FURTHER RELATED DOCUMENTS DEEMED NECESSARY TO EFFECTUATE THIS TRANSACTION BY THE CITY MANAGER OR HIS DESIGNEE, WHICH ARE INCIDENT OR RELATED THERETO; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, ITS CITY MANAGER, AND ITS CITY ATTORNEY SHALL BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION; RATIFYING ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL, CITY MANAGER, AND CITY ATTORNEY, OR THEIR DESIGNEES, IN FURTHERANCE OF THE FOREGOING TRANSACTION; AND DETERMINING THAT SPECIFIC INFORMATION CONTAINED IN SAID DOCUMENTS INVOLVED IN THIS TR.ANSACTION PERTAIN TO A "COMPETITIVE ELECTRIC MATTER" AS SET FORTH UNDER THE PR�VISIONS OF §§551.086 AND 552.133 OF THE TEXAS GOVERNMENT CODE, AS AMENDED; ADOPTING SIGNIFICANT RECITATIONS, FINDINGS AND CONCLUSIONS, AS ARE SET FORTH IN THE PREAMBLE OF THIS ORDINANCE; THAT THE CONSTRUCTION OF THE ELECTRIC POWER GENERATION PLANT BY THE CITY UNDER THE TERMS OF THIS ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT ARE IN THE PUBLIC WELFARE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; PROVIDING AN EFFECTNE DATE. WHEREAS, the City of Denton, Texas ("Denton") is a Home-Rule City and a Texas municipal corporation governed by the constitution and laws of the State of Texas; and WHEREAS, in accordance with the provisions of §551.08d of the Texas Government Code, after due notice of the public meeting was provided as required by law, this "Engineering, Procurement and Construction Agreement" between the City of Denton, Texas and Burns and McDonnell Engineering Company, Inc., a Missouri corporation, (hereafter the "Transaction"} was submitted for final consideration to the Denton Public Utilities Board on August 8, 2016; a majority of the Public Utilities Board ("PUB"), a"Public Power Governing Body" as defined by State law, convened a Closed Meeting as permitted by law, and discussed, considered, and deliberated the Transaction; and thereafter in its Closed Meeting proceeded to take fnal action and recommend to the City Council that the Transaction by and between Denton and Burns and McDonnell Engineering Company, Inc. be recommended for approval by a vote of six (6} in favor to zero (0) opposed being a majority vote of all PUB members present, in substantially the form of the Equipment Supply and Services Contract presented to it; and WHEREAS, in accordance with the provisions of §551.086 of the Texas Government Code, after due public notice being given, the City Council, a"Public Power Utility Governing EXHIBIT 2 Body" under Senate Bi117, the Council has discussed, deliberated, and considered the Transaction, the subject of this ordinance, in a Closed Meeting of the City Council on �eptember 13, 2016, after receiving a legal opinion of counsel that the Transaction is a proper item for consideration in its Closed Meeting, which item involves competitive electric matters, including business and commercial information, which if disclosed, would give advantage to its competitors or prosgective competitors; and WHEREAS, the City Council has further determined and finds that specific information contained in the "Engineering, Procurement and Construction Agreement" to be entered into by and between Denton and Burns and McDonnell Engineering Company, Inc., and similaz type information contained in all other documents which are related thereto as from time to time may be executed by the City of Denton, Texas and/or Burns and McDonnell Engineering Company, Inc., in connection therewith should be excepted from public disclosure, as permitted by the provisions of §552.133 of the Texas Government Code, as information that is reasonably related to a competitive electric matter ("Competitive Information"), the disclosure of which would provide an advantage to the competitors or prospective competitors of Denton Municipal Electric ("DME"); and WHEREAS, the City Council has further determined that it is in the public interest that it should exercise its right under the Texas Government Code to lawfully safeguard and keep the Competitive Information contained in the documents in the preceding paragraph sealed, as it is competitive electric and financial information; and WHEREAS, the City Council finds that said Transaction involves the construction of an electric power generating facility by Burns and McDonnell Engineering Company, Inc.; and that such Transaction is related to Denton's Renewable Denton Plan approved by the City Council by resolution dated June 21, 2016 (Resolution No. R2016-014) and will provide Denton the ability to generate electricity during peak loading times while maintaining a consistent and reliable supply of electricity thereby benefiting the ratepayers of DME; and WHEREAS, the Council, having further convened an open public meeting on this item on the September 13, 2016, and having discussed the same, has considered all proposals provided by other firms in response to Denton's Request For Proposals and finds and concludes that Burns and McDonnell Engineering Company, Inc. should be selected by Denton to construct the electric power generation facility; and the Council hereby takes final action and approves this Transaction by a vote of (_) for and (_) against. WHEREAS, Denton desires to enter into such other arrangements in support of the Engineering, Procurement and Construction Agreement (hereafter "Agreement") with Burns and McDonnell Engineering Company, Inc., which are incident and related to the said Agreement, and to take such additional actions as the City Manager, or his designee, shall determine to be necessary and advisable to consummate and effectuate the matters set forth herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: EXHIBIT 2 SECTTON 1. The recitations contained in the abave Preamble are incorporated herewith and are considered to be a part of this Ordinance. SECTION 2. The City Council, hereby approves and authorizes the City Manager and City Secretary, or their designees, to execute and attest respectively, the Engineering, Procurement and Construction Agreement, by and hetween the City of Denton, Texas and Burns and McDonnell Engineering Company, Inc., a Missouri corporation, under the terms and conditions set forth in Exhibit "A," attendant with all Exhibits attached thereto, and made a part hereof, with such ancillary instruments, changes and additions which aze in substantial compliance with said Agreement as the City Manager, or his designee, may approve, and to consummate the execution and delivery thereof on behalf of the City of Denton by or at the direction of the City Manager, or his designee. SECTION 3. The City Council, hereby approves and authorizes the City Manager and City Secretary, and their respective designees, to execute and attest respectively, all other documents which are incident and related to the Engineering, Procurement and Construction Agreement referenced herein, and to take such additional actions as the City Manager, or his designee, shall determine to be necessary and advisable to effectuate the matters set forth above. SECTION 4. The City Manager, the City Attorney, or their designees, be, and each of them individually hereby is, authorized and empowered to perform all such acts and obligations as required with respect to the Engineering, Procurement and Construction Agreement described herein. SECTION 5. The City Manager, the City Attorney or their designees be, and each of them individually hereby is, authorized, empowered and directed to negotiate, deliver and perform all such acts and things and to sign all such documents, each together with such amendments, changes and additions thereto as the City Manager, the City Attorney or their respective designees shall determine to be necessary or advisable to effectuate the matters set forth herein, any such determination to be conclusively evidenced by the taking or causing to be taken of such action or the execution and delivery of any such documents by the City Manager, the City Attorney or their designees. SECTION 6. All prior actions taken by the City Council, the City Manager, the City Attorney, or their designees, in furtherance of the foregoing matters be and hereby are ratified, confirmed, approved and authorized in all respects as of the dates and times such actions were taken. SECTION 7. Immediately following the execution and delivery of the documents described as the Engineering, Procurement and Construction Agreement the City Secretary is hereby directed to seal and maintain said documents in her custody and control, as documents excepted from public disclosure under the provisions of §552.133 of the Texas Government Code (the "Public Power Exception") unless otherwise lawfully ordered to disclose said documents. SECTION 8. This ordinance and a copy of the Engineering, Procurement and Construction Agreement, including the related Exhibits and Attachments, as redacted of EXHIBIT 2 Cai�7petitive I��f�rm�t�o�� sl�all be ope�� �'�,r p«E�lic inspectic�n. %�c�urer��r, fil�� n�n-r�c��ct�ci En�ine�rin�, I'rocure�i�et�t ar�d Constrl�ctao� A�E°e�e�le�it, ir�cludit�� ti�� rel�ted Ext�i�its and A�tach��-�e�7zs, app�nded �o t�rs �7rdin�nce shall nat be prc�du�ed for �ubl�c i�7spection, beit shall b� �e�.lecf, �s pz�4vided far ix� Sectioi� 7 alc�ve, �ECTION 9. TE�e ex���i�c�it�r� �f fu��ds �s provided �`c�r in t��is €�rdiananee �s l��reby a�zthoriz�d. ��CTI()I�I It�. T�1is Qrcline�nce sh��ll be�c�n�e effectiv� it��r���di�iely ���ant� �ts ��ssa�e a�ad ap�rav�l. I�AS�ED A.ND A�'PRC;►V�D this t11e d�y �f �e�tcz-�zber, 2�t}16. CI-II�I� �'A`i�'�, �v1AYC�R ATTE�`�': JEI'�I�"�R WAI.�TER�, CIT�'" ��GR�TA�.Y C: �i��RC)VEI� AS TC� L�G�L FQRM: ANITA BURU�SS. CI�`Y ATTC?RNEY 4 . : �.�e,,.___ ��. Exxlsl� 3 . ..� . , � � , � , ! I R " � 1 1 1 � � 1 1 1 ' �;' ' , � i i � � 1 ' ��,' 1 1 R II � . � � � � �' � •',, �" . � � '.. �� 1� � ���. 1�' ���� ���������;�� ����� ���x �����:.��������� �����°�;�� ������� �������� ���������.���.��� �;���� ��u ������������������� � ���������,������m„������������ �����r������°�� � �������� ������� �������° �������� �.��������������� ���� ����������.�� ����`���n��������� �� ���.���������& �����a ���� ���°°���������� ��� ��-���� �"W���������������� �`������ ���:���.�� ��������� ��������� ����� ��� �������° �������� ���� ����,� �� ��;��;��:��� �"���� �°��������:� ������� �����������w EXHIBIT 3 1 ' _ . ., �,- � � : !- , :. • ��' � • . �- ., � � ` � � - � i; � • � � w � c. Appendix C— Reference Drawings d. Appendix D— Design Drawing Deliverables e. Appendix E— DME Electric Generating Permit f. Appendix F— Final Geotechnical Report g. Appendix G— OEM Scope of Supply and Engine Technical Specification (with Reference Prefabrication Isolation Drawings) h. Appendix H— Comrnercial Clarifications B. Form of Change Order C. (1) Form of Partial Lien Waivers and Release (2) Form of Final Lien Waiver and Release D, (1) Form of Mechanical Completion Certificate (2) Form of Substantial Cornpletion Certificate (3) Form of Final Completion Certificate E. Notice to Proceed F Permit Responsibility G. Milestone Payment Schedule H. Forrn of Performance Security I. Form of Monthly Progress Report J. • Key Personnel K. Guarantees and Performance Tests r .�•' .� ;- �C' ��� ���� �������` ���� ������ �.���� ��°�������k ����� ������ ��������� ���������.a�� ����� �� ���������������� ���������,������������� ������� ���� �������°��'� �������� ������� ���a����:�° ���:���� �°��������,��a�f� ��� ����������. ������������� �� ��������°������ ���� ��� ����������� �� r������� �������¢�� ���� �";���� ���,�a��� ���.���"�� ���`����, ���.�1 ���������,, ��� ��;�� ���:� ����� � ������������� ������ ��������u���� ��������; ���:��:�����w�, i EXHIBIT 3 I � 1 R ,:, !.. '�:. � (, ��:� , � �:. THIS ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT (this "Agreement") dated as of and effective the 13th day of September, 2016 ("Effective Date"), is by and between Burns and McDonnell Engineering Companyy IdAC.y a corporatian organized under the laws of the State of Missouri (hereinafter referred to as 66Contractor"} and City of Denton, a home-rule municipal corporation organized under the laws of the State af Texas (hereinafter referred to as 66 wner"}. Contractor and Owner may be referred to collectively as 6gle 66P�AI��IQ.S99 or individually as a 66�aT,�99. _ CITALS WHEREAS, Owner has contracted with Wartsila North America, Inc. for the design and supply of reciprocating engines, generators, auxiliary modules, emission control equipment, radiators, silencers, control system and other OEM provided equipment together with technical services for the start-up and commissioning of such equlpment and training, which are to be incorporated into Owner's reciprocating internal combustion engine (RICE) electric generating facility; W E AS, Cantractor has represented to Owner that it is qualified to perform engineering, procurement, eonstruction, testing, start-up, commissioning and training services of the nature contemplated by this Agreement; and W E AS, Owner desires to engage Contractor to perform engineering, procurement, construction, testing, start-up, commissioning and training services related to Owner's planned 225 MW electric power generating facility, which is to be located in the City of Denton, Texas, including the installation of the Owner Supplied Equipment to be incorporated facility, and Contractor desires to perform such services far Owner; NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions set forth in this Agreement, Contractor and Owner agree as follows: .• 1 1, SECTION 1.1. Definitions. In addition to other defined terms contained in this Agreement, the following terms shall have the meaning specified below in this Article. "Affiliate" of a Party means any other entity directly or indirectly Controlling ar Controlled by ar under direct or indirect common Control with such Party. "�" �� ����� ����� ��.z�� ���� ����.�:,���������� � �.���� a���� �;�:�����z� ���"���°������� �;���� a� ��������������� ���� ������������a�����.��� ��°� �����:��� ���:�,����ry ���.� �a�, �����x��� ������� ��.��� ������P� ���� ����;�������� .� ����:������,����� ��� ����°��,,������;�� �g��� ��� �°���������� ��"'������ �������������,�� ������ ���,�a�� ��;������� �����£���� �°���1��� �������° ��������,, ;��� ���� �� �������:���� ���� ��������m��� �.� ��� �:����°,����:����zw EXHIBIT 3 �� ,r . �+ � a' -� � r � - -. . • � � . - ��- �; - �• -- •' � �" .' _ -• . � r . �� ',, ' � . � � •' • . ' • • � t � • . .�• ,� ^ ♦ � • '� .: � �� •. r � . '. �- ., i 1'' 1 ., ;, �," �' � • 111 111 . .; - . � - - - �� � � . -[ '� r- -r � � " . � � �; � � � ' . � ' � . t � � • � � � � � � � �' � r ' "Bond Financial Closing" shall have the meaning set forth in Section 3.1(a). i1 , .. . �, • . �. �. � . �. � . � �. .'- '+. • -� f � • • � • � • 1 , i • ' . I . . 1 � � • ', � ! ' � . ' ! �' # ' � � � . � !' � � - f ' � �''I f . � ` � � ' �' ' r i � � � � . � ' !' ! . � . � • I � � � 1 • ' � ! # � . � • � - ' � � � • • � ' # ! � � � " � , � , � � ` �� ,'' - ' �- �'," "� 'i . ` � -. � ' 1' ��� .� ' !' . '�,' . r' • /' ! � • ' • � �- � , � . � �' �, � � ' .�!' .�'' � r �.' .� . ' ���: • ��. � :� '� � ' t � • . . � � " � •''�� �:. 1 � • 1' " � � !' ���.:' � � � ! � - � • � ! ' • � •, � ', ; �' � " � !" � � ' � ��I � !' ` � • -�-�' ► � t',�� �1 ' ' r � • � " �.'- #� �' • � � �a "Change Order" means a written instrument, in substantially the form attached hereto as Exhibit , signed by Owner and Contractor in accordance with Article V. "Con�dential Information" means information or data that the Disclosing Party considers to be a trade secret or competitively sensitive and which is designated as such in writing by the Disclosing Party. In order to be considered Confidential Information, written information has to be identified at the time of the disclosure with an appropriate legend, marking, stamp or positive written identification on the face thereof as Confidential Information. In order to be considered Coniidential Information, verbal or visual information has to be so identified at the time of the verbal or visual disclosure and the Disclosing Party will notify the other Party (the "Receiving Partygg) in writing within thirty (30) days of the disclosure and specifically identify the Confidential Information previously disclosed. Confidential Information does not include information or data that: (a) was in the public domain at the time of the disclosure or is subsequently made available to the general public without restriction and without breach of this Agreement; "�"��� ���:�������� ����� ���� ���������������� � ��°�;��� ����� ��������� ������° ����� � �� �� ������.����������� ����a������������������������ ������������ ������d�� �������� ������m �����a��� �*�� ���������� ���� ������a����� �a�f������`���� ��� �������������� ���� ���°��������u� �a�"�C������ ���������4����°���� ������ �������� ��:�.����� �������� ������� ��.��1��° ������`��� ����� ������° l�� ���.,.���������� �"���� ����a������ �������. ����������zv EXHIBIT 3 � � � - ' - � ' - � � • s ; � � - � �-�- �- �- ��-� � '- � ''. � � .�•� . - •� - • • � '• -• '► - ' - � ', s , � �- ♦ � � . � • ' � - � . .+ - � � � � -'� � � � �- � i . �• . - . • - . ' � . �-• � � � r - r , �. ' � � . � • � • . � "Contract Completian Date" means June 30t", 2018 as may be adjusted pursuant to the Agreement. 66Contract ocu ents" means this Agreement plus all attachments, exhibits, specifications, schedules, and drawings and any Change Orders or amendments thereto. 66Contract Interest ate" shall have the meaning set forth in Section 4.3(c). 66COl1Ll [lC� Pl 1CQ99 Alil�UAIJ , which is the total amount payable to Contractor pursuant to this Agreement in accordance with the "Milestone Payment Schedule" in Exhibit G, as adjusted pursuant to the terms hereof. "Contractor" shall have the meaning set forth in the preamble to this Agreement. Contractor Pay ent Perfor ance ond99 shall have the meaning set forth in Section 4.7(c). 66Contractor's Project anager" OY 66Project anager" shall mean the person identified in Section 7.2. i i' -, - �� � � � - � � � . �,. , . � �• � , I'' � •; ; • ' r � �', � * � � ' s • . � a �'-� � •', � + . � -. +; "Corrective Action Plan" shall have the rneaning set forth in Section 3.2(c). " ate Certain" means the date that occurs one hundred eighty (180} days after the Contract Completion Date. ��Delay Damages" shall have the meaning set forth in Sections 9.6 and 12.8 and as follows: ��r���� ����������� ������ ���Y ������:�������� ��������� �������. �„�������� ������a�;����� ���� �� �����a�������� �;��x�������,,�������%����������%�� �a��.��������,� „ � �������� ��� ��� ������i��° ��������g ������������`���� ��.���� f��;������� ��t���° �����s� ��� ��������������$ ���� ���� ������g������ e�� ��C���:�� ��������°�������� �"�a�,��� ����`����� ����"��1�� ���.1��� ���.1 ��� ������� ����� ��� ���.� ���� ��� ��°�������s�. �'��a�� ���:�����m�� ������ ����.�������� EXHIBIT 3 , r 111 ,- , - �. �, . � • • - � !, - � � � , r . , �; � + �, '� 111 �- �. �. , � . � • - • �. - r, • � -, . �_ �- �- � 1 : , c . - �; 1 ' "Delivery Point" means the point of delivery for the Owner-Supplied Equipment as set forth in Section 2.20 (d}. 66 esign arranty79 shall have the meaning set forth in Section 6.2. 66 isclosing Party99 means the Party disclosing information in Section 15.2. �:. � �:� � � � I �. �... � � I: ��. 1�� / : I.. 1�. �:. � '��:.. _ �. :/� � ��.'�� * / �.. ' �� :1 - /� . : � / �. �� • � �� /� . �� , ' ��� +1 / 1 �1� � �. .. / �. �: � I �.: / �� : � ����. f�: / �../�: ��� ' � � �:.�� , .: . � � � : � ' . : _ 1 . : � I ��.. 1 � ���. -� � ,� . : I�� y: �� ...�. "Effective ate" shall have the meaning set forth in the preamble to this Agreement. "Engineering Services" shall have the meaning set forth in Section 6.2. "Engine a1199 means each of the two engine halls in the main power station building at the Site as more particularly described in Exhibit A. � • ,' , -.; . -�- , . - . � • . . - -. . r . � • � . - +� � -+ ► � + • � � •• � � - • � - ' • �' � � . � - � � . � � , � . - , , . � � � r . .' � � � r .� � � + • • � •_ _. � -� -, • . �• � r � . . +- � � r � � � • � . *- � r� . r� � . � + � . � � . , � . �� • . �� . - � � � • � + . + -+ • � � �. -� � . �, '; � • - � "' •� • •- . � c .� • •� `:1 � , •.1 -� . �-� . �- + ' + , � �-, , � , � . � '�;� i * �i1 - -� . �-� . �� . - . . �� � • t� � �' 'i , �,_1 r• ♦' � " . � . 1 �. � ` � � ', � ♦ •*�, -II . �'�' '1" . �� ' ! �I � • ♦ '� . �"# � � I ♦ � � '1, � �"� ' � • . ' ! • � * � � " " � e r ` � ' � " •" � � • � � .... � " ! �� � .; �'� � a. �: � � ' � � .. � ♦ • ' �: �. � r:' .�. � . � !� s ..,� ,�,� ♦ / � ♦ '. �� . ��I . " +..: � �* ' '. � � .. �. �, � '�� � �.: �' � � " :1 � ♦ . i °�C°���� ����,����r��. ����� ���„� ������° �����.� ��������� ����.�° ��������� �����r���������� ����.�� �� ������������:a���� ���������������e�������������� ��������������°� ������C�.�� ������� �������ff ������� ��.������������� ���� ���������:���� �������������a� �� ����,���m�����:� ���� � � ���°��������� � �� ��,�� �������x����������: �`������ ���,���� ����1��� ������}�� ����1��� ����f�� ��"��.���� ������ ������_ � �m�������;��� �"������ ���������� ������� �������o����� EXHIBIT 3 . 11 - -. . . - �-� . � - , r . • - , '� ' �' * ' -� . w''� r�- .�� .� - , r '� -�- . - . � '1 . -• � . � a � . „ . �- �-� ' • • � � . � , -. - � . �- .. � - .; � � � ', � ' , r � + •- � � , � -� � � -� � -�. � • � �- � + �; ; • . - . • � - � , r . � i r i � , � � � . • � . � � � r r � + . � -� � � . •- � �- � � � - • � � � i, � -. , � ` , � � i � • � . � � • i -. -, r � � * - � • •� -� � � � �. . �- � . - �, • � -a -� ' � r � � � . � - � • . ♦; r -� � r; ' • � • • �- -� �r -r . � !- � • • •� -� � • �- r- �r '� � '' • • -� � . - � ! � 1' , 1 � � ' • � ` � � - - � � . � �' - + � �I� �' ' #a - � � �' � • ' �,! � � ' � � �-''- s �' •• '1 � ,!� � * ' ' !' � �' �' � • ` � � F - # i � • ! 1 � '� �' + � #' � � � �- � � ' � '! • ' � 1 ' � � • ' � � r � � � ' • � ` • ' ' � • A � ! �, . �' .' . "! � [' + , � *' 1 �� 1 ! � ��. �� r -w -�' � � �� � , r • • a . �' �� -� � � "Facility" means all of the equipment and systems related to the nominal 225 megawatt reciprocating engine natural gas-fired electric generating facility, consisting of the Owner- Supplied Equipment together with all other equipment, systems and materials, including associated and ancillary systems, subsystems, assemblies, instruments, equipment, apparatus, materials, structures, facilities, appliances, lines, conductors, and all other components and documents cornprising, describing and integrating the entire facility into a fully operational power plant as described in Exhibit A. "������ ����r������ ���� ���� �������������� � ������ �����p �����;�.�� ���:�t��w���:���� ����� �� ����������.���� �� ���������1����.��������� �����������$���� ������� ��������� �����° ��������° �������������� ���s�:� �"�������� �����a������a� ��� ��:.����:������ ���� ��� ���w�������� ���'�"'����� ������°������� ������ ����i��� ��'��1�:��� ��'������ ��":��� 1� ������� ���zv����, ����� ������ �� ���:����°���� ����� �������°��� ���,����� ������:�������� EXHIBIT 3 "Facility CP Schedule" shall have the meaning set forth in Section 3.2(b). "Final As-Built Drawings and Documentation" means all drawings, specifications and other documentation prepared by Contractor to constrt�ct tl�� 1����:iiitv' ir� ¢�����rc.�a:��:�. �i�1� i��� �;t��z�t3=�.a"��:� of performance set forth in Section 6.2, e�alii��� �c;�.�ii-����I;�r ����� ����`����1c�t�1y r�l���.s�]�t �r' ������ ��� ��il. material respects the physical placement �a1`�Il if�i�`rlity ���ira����s��c��:� ��d��l �Y���a��� ��� �1��t�11c�c� ����lc"° constructed as at the time of Final C������al�:�z���, i���:l��cl'az�� `"��-����ilt�" ��z�.�.,��� ��������'�ir���� ll��: established building setback lines, if any, and ���� �c�c;s�t�c��� ��9 tl�c� 1�"��ilit� �r� tl�� �i�� ���zc1 r�vitl�i�� any established boundaries and setback lines. 66Fina1 Co pletion" shall have the meaning set forth in Section 9.7(a). u ;i � i •.�, .� - � , �-, -� � • r ' � � � , . . - :� � . . � ; . r; -� "Force Majeure" shall have the meaning set forth in Section 16.1. � , � • ,,, - , � . the unit consisting of the assembly af a Wartsila W18VSOSG engine, hanical coupling, alternator and base-frame, all of which are Owner- "GenSet Delivery Site Work" means the Contractor's Project Milestones for Work which includes (a} preparing a sufficient portion of tl�ie Site with reinforced aggregate as laydown and �����,������y �a.��5 c��°(7�v��c,��-���Faa�l��d L���ri�����c���i i�k comprise the Generator Sets and (b) constructing, �,�•�;�:�ir��, ����c� i�1�S���:ti��� �:�cl� 1;���i��s� 1�a11, u�i� i�Y accordance with Exhibit A, so that it is ready for ������,, ��¢14�� ���` 4{l�� �������� ����}j� ��1'�,���i� ��;;;;�,r��1�4�,d Generator Sets by Equipment Contractor for its c:��i����lc��i��� 4�l° ���t��.�°��������L��c� Ca��acr�it.c�z� ��� ll�liveries. i i i i '. . -� -�- � . • � '� . -+ . ♦, � ,� . _ ..- *� - - . r • r-�. - r�, � �� ' � �T � .' r � .� - �, s . � . � ��� � � . � "Guaranteed Ernissions Limits" means the emissions of the equipment listed in Exhibit K that comply with the levels set forth in Exhibit . "Hazardous Materials" rneans, collectively, (�s} �xn�l h��°r��;���c�r��1�, i��xi�, «�' 1�����L��i��� ����'��^'���'�� material, or waste as defined or regulated �r���r�c�r• �k��� �������4��4�1���. L�i���; (L�� ��t�sy ��t����c�a��� ���' �a�t��c���xis�z ��r��c����;��� �f7��i»���l�l� ��r��tr.,�•i�4� �:�������i���, z���,iic��s�liv� �����1.��•i�l�� ���l���t���, ���x��;�� [��r•��r4��������'cl�. 1`�����-� i.t�:���l��i��i�. �����:# tr�r�i��l+�1�r7��i•� c�r c��l��a� �c��i�a���7�;��1 tl��t �:c�i�t�i�� ��nl��l�lc�r��i�at.��i l�i��I�u���Is, ��i�cl ��) ����y ��ll�c,i• �.l��i��i�.��l c��• c�i1���� »��k�.r��z� c��~ ���t�r�ta��c�.� ���as�����°� tc� ��l°i��l� �� ��rc�c?i�it�ii�c&, �����il�c:{ ��Gr r�:��il�iti�d l�� � C�ca�����ni��r�,��ial Authority. �'���� �����°������°���: ������ ����x�` ����;��°'��������t� ����•�°�w��� ���� ��������� ����'c��-0�������a��� ������: �� �:���g���������, ��.������'��°��� ������r����r�p����,�� ���°���,����^�����Y�g ���.����'a��� �������� ������ �������� �o��������k�����t�. �.���� �'������:���� ����'���°������;����� ��� ���°����"��F����b�� �����u ���� ���a��:�� �;��{f���� ���&������ ��������°���������� �"�����;., ������.�� :���.����� �������� ����� ��� ������� ���.�`��� ����� �����_ �� ����������� �:� ��� �u������°�� ������ �a���a������� EXHIBIT 3 "Initial Notice to Proceed9g shall have the meaning set forth in Section 3.1. "Key Personnel" means those Contractor positions identified in Section 2.19. "Lien" means with respect to any property or asset, any martgage, deed of trust, lien, pledge, charge, security interest or encumbrance of any kind, whether or not filed, recorded or otherwise perfected or effective under Applicable Law, as well as the interest of arny lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset. " ajor Subcontractors" means any Subcontractor with a scope of work having consideration due to such Subcontractor greater than $1,000,000. 66 ajor Subcontracts" means all of the contracts between Contractor and Major Subcontractors. 66 pC�Ll1l1C(L� CO111p�Q61O1199 shall have the meaning set forth in Section 9.2. l• 66 ilestone Payment Schedule" means the summary schedule of values as shown in Exhibit G. 66 ilestone Pay ent" shall have the meaning set forth in Section 4.3(a). 660ther Equip ent elivery Site ork" means the Work comprised of Contractor's timely making available of sufficient space at the Site for Equipment Contractor to complete Other Owner-Supplied Equipment Deliveries, in each case which tasks are more particularly described in Exhibit A. " ther Owner-Snpplied Equip ent elivery99 means each delivery of all Owner-Supplied Equipment (other than that which is included in Owner-Supplied Generator Set Delivery) in shipping containers available for removal from back of Equipment Contractor's trucks at the designated Site truck receiving area, complete with corresponding packing lists supplied by Equipment Contractor, each referred to as Project Milestones with Activity Codes A1850, A1860, and A1870 in the Project Milestone Schedule. 66 Wnele%9 shall have the meaning set forth in the prearnble hereto. " wner Event of efault" shall have the meaning set forth in Section 10.7. "Owner's Representative" means the person identified pursuant to Section 7.1. " wner-Supplied Equip ent" means the equipment, and its associated erection drawings, installation instructions, operation and maintenance manuals, spare parts and technical advisor services to be acquired by Owner under the Equipment Contracts and furnished to Contractor as described in Exhibit A. ������ ��������;�� ���� ���� ������������������ �r ����� ������� �����.��� ����"�.��N���������� �����` �� �:.��������,a��� �.�������������������������, ��°����3���:����� �����'��� ������� p���;� ������ ����a��������° ���� �a��.�,�������. ����"��������t��� �� ������������:� �P�� ���� ���N�������.��� t��.��"���� ������������� �:;����� �������� ������)�,, ����"���� ���.���� �����d��� ����� ��� ���:.�. ����� ��� ���°������� �"��.��� ���������� ������� ���:����������.� 7 EXHIBIT 3 1 � � . � � i • i � '; � �' ' � i ;� - - � ' • � � +, - - � . - ' � - � '[ �. �-� � •' � -� '• . _ . �-� • ;, r , � _ � � . �, . � �'; ; � " �•. - . � � - � • - � �� -� ' � r . �-. � -� �- � � • �� -� � � �- . -� � � -� � � r -� � � r '. � • �- � • � ', •;• �-� � � � � . � , � � �� -� � � �-�-+ � -. � � � . � - � � r'� - � � � � � • �' � � . � r' � � -�,- . � � �- • �r � r � r; , �- .' • �-• ,�� � . �.� r , � • �� -� � r � , r. � �. �. � � - � r� 'w ' � • , �-- .�- . . .� - . � ' � • � . � .� - � �' �� -� � � . . • � - � . �-- � _ _� . _ �' � -. 1'; � .' f ,',.� - � - � ' �� -� � • _ � � . �'; � � ' . � -. �. � + � 1 � �' .1 - � . � �� -� �; � .; �' �' 1 "# . • �, . � i'i '� 1 � � ' � � ' � �' � 1 1 ` 1 1 ���; �:� � �'. • • . . •: �� � + �. �'.. ' 1��. �: '� � � �: ' � 1; � � 1' � : � ' �'�. : ' # . � •- � �r �' • � •' � � � • . � ' � •I , .1� � �,' � ' "# . 1 1•' � . � , � ' ���: � � � • �� � ��...' � i�. i � �: • � i;� � , ... � " � � ��., �,' • �: �. :' . �,-� ! � � - � � �, � • � ' 1 I ;, 1, � � I' 1 1 • � �' � � !' . � � " • � � ' .� �:. • �. �.� . •, I �. � '�. :• . �. .: ���. . f : �. - ���. • � 1 1 �. 1 1 1 1 1,1 '. .�.�'� • � �i � � 1 � '• � �.� !' '� � � '� � � � +' •�s:� a�..�� • ��'�.�: 1 "Perrnits" means any permit, license, authorization, consent, registration, approval, permission, ruling, certification, or exemption that must be obtained from any Governmental Authority for the performance of this Agreement, as set forth in Exhibit F. 66Project ilestone" means those activities and associated deadlines set forth in the Project Milestone Schedule. "Project ilestone Schedule" means the schedule of dates for completion of each principal category of the Work for achieving each Project Milestone and for achieving Substantial �`���� ����°��������� :����� ����� ����:����������� �;�������� ����� ��������� ����°������������ ����� �� ���������������� ��������������������������x�� ���w�����������'� ��������� ���������:. �������� �.�������� ����������� ����� ��������� �������°��������� �� ��.����� ����� ������ � � ����������� ���""�"��.�� ������������� �"���� ���,:;������ �������1., ����1 �� ���.��� ����.�i���° ��������, ���� ���,� �� ����������. ��•��� �,,.������ ����1�� ������°1������� EXHIBIT 3 � � - r; � � . ' � r - � '!.,_ . . � _ � ' -� � I � " � • " . �-* - � . � �+ � � • � i - •� . • - � - , � . �. � - .- -;, - �- -� � -� . � ` �- - -� . • + . � � � f� 1 -1 � ' � + ' k •, . � 1 " • • � � " � � � ' � � �' !' . , � • � • . �. � � .�'" . � 1 1` � . �# �. 1; � � � f "� ! 1 �: ��.-� � �. •� � �: �. � '..�: � - ..-� ;� � ' � �.'` • :� ' � . ��� ��.'� � . �'�: r + ' '.,�'. � ��'��. � � ' � ' � ' • 1 �'' "Receiving Party" shall have the meaning set forth in the definition of "Confidential Information", "Reliability Guaranty" means the requirement that the Facility successfully completes the Reliability Test. -. � + • � r � + � , � � • . _ . �, �- •- � -� r � ' . • , � �.; _ _ � , �a, . � - �, �- �-� r "Site" means the Owner's site on which the Facility is located, which is more particularly described in Exhibit A. � � � . •- � r �' . ,� . -• r , ;� � ' � . - � �- • � .� - � �- • � •- � •. �' � r � � r �,- , - -� • �� � �' � . �- � � , ., r, � . � . - r � . -� . �. � - � "Substantial Completion" shall have the meaning set forth in Section 9.2. ; , ' • i � -. - �- �� r -' , �, - �. - � r . . � � - � . � � + r . . -• � � �-� � • -�. -� � -r . -� �. . -� ',� , r - r- �� r' • - � r- � � ' -, � a' � . ' . • ' �, ^ • r . .: � � - • � `, � �.� � ��- �- .����� -� . .� , -�� -�: . . .� . -� - -r � �'- -� .�- ���� � � - - � • �•� � •' , r . ! w. ' ' ; ,1 ., �� ' - ' . . • ," •� , ''' �' f"� �' - �'' � � • '1 1 ' ":���� ����������� ���� �����' ��������������� ����°��.�a ��� �„��������� ������������.i�� ����� z;� �������������� ���� ���°,��.���,����������� ������,,������°�� ���.��"��° ��.� ��� ������ ��������a �°����� , ��.������ ���� �"���������� ����`��°a���i���� ��� ����������:� ������ ���� ,��:���������� ��"°�"����� ������� ���� �:����� ��������:��� �������� ���*���� ����� ��� ��.��,��.��� ����� ��� ����:� �;�° �� ��m����.���� �:�°��� ��������� �������� �a��I����.���� 9 EXHIBIT 3 SECTION 1.2. Rules of Interpretation. (a) Terminology. Unless otherwise required by the context in which any term .��-. (i} The singular shall include the plural and the masculine shall include the feminine and neuter. 66 99 66 99 66 99 66 97 (ii) References to Articles, Sections, Annexes, or Exhibits sha be to articles, sections, annexes, or exhibits of the relevant Contract Document, and references to paragraphs or clauses shall be to separate paragraphs or clauses of the section or subsection in which the reference occurs. � � ,,� . � �- . � ' • • � � , � . a � 1 • � �� � � � �' �' � � � • � �- #- � � •. � -. � � � � '� 1' �,. . •� �'- 1� !� 1'-+ • �' ��' r � � ' � � � � � - � t � - ' ' - " . t �� _ � 1 • •; ' ' , ' � � • • �'` ' � •' �" � _ � �- • 1' � • �` 1- �' ' l ��. s: •� � !'�.� ' '���.� � �'`�� 1� �:��.1 •I�: r �r:�� �:i� �• � � �•�.�- � : �'�'�.. � . '1' ' * ' ' � ' � ��. • : �: s. � � � l :� ".. � �: �... ' '. . . ;... r • •: :� " • ... . _ + .�: : ' ,,;.' • �'.. . 1 �. 1: . � ` �..-. � � �. '. .. • .: �'�. (v} All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles in the United States of America, consistently applied. (vi) All references to a particular entity shall include such entity's successors and perrnitted assigns. (vii} All references herein to any contract (including the Contract Documents) or other agreement shall be to such contract or other agreement as amended and supplemented or modified to the date of reference. (viii) All references to any Applicable Law includes any amendment, modification or successor thereto. (ix) Words and abbreviations that have well-known technical or trade meanings are used in these Contract Documents in accordance with such recognized meanings, except to the extent a definition herein set forth requires otherwise. R����� ��'�r;.�.��.���.� a����� i�b�4�r ��ti�a���������'�x,.���R�} �4�.�a�%�.°�4�.M.; ��`�s��r� �°,.�.����e�a�!����. ��i�,[Q��'W�:��rc���u���€ &��i�� �44 ���.�.��.���.����� ��:���������;��.:�����������:�;����°��w ����a�������v 4��°;�, ������?���' ���������° ������ ���� ������E�.� �����������x������ �� ���� �������;��� ������ �����.�� ��� ���q�°����������°�� ������x �;���° ���x���°�������� ����"�:"������ ���a�'�°�°������r��� �. �������� ���������� ������;��� �������� �,�,�,������ �����/���m ��� ��'��� ����� ����� ��� ��������� �"����� ��������� ��������� ������-���,��,,�:� lo EXHIBIT 3 . � '• � • • '* r �- • r . . . - � r - - - • - - - - • . � . •' � � t . ' " '� , •' • r • � � �' � �' ',-�' � '- �• � � 1, + .,,- -��, -� � . . _ � � -�. -� r �• � � - � - • • r -�� �` � -� .•. � . r - + • � '. � �, � .' - � . �. -�' 1.1.4 Obligation to Act in Good Faith, Etc. The Parties shall act reasonably and in accordance with the principles of good faith and fair dealing in the performance of this Agreement. Unless otherwise expressly provided herein, where the Agreement requires the consent, approval, or similar actlon by a Party, such consent or approval shall not be unreasonably withheld or delayed, and wherever the Agreement gives a Party a right to determine, require, ����c,i�y c�GA t���c�° �ir��il���� �x�:ti���7 �ith respect to a matter, such determination, requirement, sl~��c��Ij�;:�tic��� ��- ��r��il���� ���:iic��� �1���11 be reasonable. This Agreement may not be complete in every �lc���il. �)w���c.�' ci���l �".����ti•���t��• :�I��ti�� comply with its intent and general purpose, and shall not avail itself of manifest errors or omissions herein to the detrirnent of the Facility. 1;" 1 1+: I �` �'' ' Contractor agrees to timely perform the Work for the Contract Price in accordance with the Scope of Work set forth in Exhibit A. Contractor shall fully perform the Work in accordance with Pr��i�r�t l� lili �� f'�•�� lic �, ��11 :'� ����licable Laws and all other terms and provisions of this Agreement. C��r��tr•���:c��� :�i�£�ll c1�:�����N �r��ir�eer and construct the Facility so that the Facility reaches Substantial �:`c������l�i:in�. C"c���tT•�ct:�r; �k�r�ll also design, engineer and construct the Facility consistent with the criteria in the Equipment Contract so that the Owner-Supplied Equipment is able to achieve Equipment Contractor-guaranteed levels of output, heat rate, ramping, and start durations, as applicable. Contractor's responsibility pursuant to this Section shall be contingent upon Equipment Contractors' compliance with the requirements of their respective agreements and Contractar shall be entitled to relief subject to and in accordance with Section 5.3 in the event of an Equipment Contractor Caused Excus��l�s�� ��v�.��#:. �"c���t�a��i��` �c���l�c�r�i��1�c�� �I���� �r.�a.�������t tc' the foregoing obligation it shall carry out wtl� ��' ��z�; ��i����� rir�c! ���f•vic.��; �•cc���iti��:l c�r� t����t c��� k�� inferred reasonably from this Agreement e���� i4�c�i��;1� i����. ��:��1°��;�1y i������ic����� 1���-�G�� �cr ik���t tl�c. Work shall include any work that is necess��ryy tc� ���i�:�i:y tN�� �`��.���i�`�.i���,��t;� c�l i1�� �`c�i���•���# Docurnents, and to the extent not specifically adc:lr ���c;,c� i�y� �l�r� �'c���t����t i.)�����i�����1�, iz� �.�c:�:c�r4���a���=� with Prudent Utility Practice. The Parties shall cooperate fully in all regards with the intent to �''��� ���a��������� ������ ����,� .���:�������u������, ����h�r�e��� ������ �.��������� ����`���°���;����r�� ������ �� ��������.������ �:������������������c°���������°� ����s�������������°� � ���������•�° �;�������� ����r���M ���������° ��������������i����u ������ f�r����:.��� �a������������� ��� ���ca�����������a�� ��•���� ���� ���°�;.��_�������� �:�� ���� �����•�W������������: �:`"�����_* �������� �������1� ���.����� ���.� ��� ������,���� ��� ������ ������ �����° ��� ������:���:� ���a�� ���a���.���&�;� �������� ����������a��. 11 EXHIBIT 3 r � - - �• '� . - �, ' - � , � -� . - - ��+ r' ��- , ; , � , - , - �. •; -� r' ' � �� ► • �` •� '. � � � � . - •- -;, • i � � -� r' � �, � �;� •: . • � � -� � � � r; . + . �' � - � �. ,�- r . r�- � - . -. � � � -� � � � r, , ., -� . � , r . - • � � , • + � • .� -� � � � " • �- � �, � r; .�- � � • r' - � •r; •� • , � -� . • , .- • . . . .,� + � � � �- • � � � � -� -+ +- � � - •� � . - . �- -� . � �- • . �. •. � � , � r , r � ._ � . �- � � . � • - � �- . . - . .- - � -� . • �. - - - - -�' , � . -� -� r .,, � ''- � •- • � � • . � r , � .� -� -r � �- � � , . � -� � � , • r ��� .r- � * � • -+'r .-� * -�- � •, • . , r . � -+ , r '- � ' � � � , � � , + ' � � � '� � � •,. . '- � • r �. ' ► - r; -� c '- • � • + � . , w � � •. .*- � � �• ,- � , • . � r � - • • � - � • . - � , . - � � ,, � -� � + � - ,• . � . . _ , . � - � ',� --�' - �. - ,. . �- � - •, - �, . , . - ! ' �-� • ��- �, -� �.- r •. - •. r � r� '� I � � - • . r; . •�' r. - �. . � � • . � • � � � " "�'��� �����:�.��������� ���� ����� ������:���������;� ���������� ����� ���������� ���������������� ����� ��w ������������� ���� ���������������������� ��.v���������� ����/���� ��������: ������� ������� ������������ ���� ��������::���� �����m��������� �� ��������������°� �X��:�� ��,� ��������������� ���� `�'����� ������������� �:������ ���������� ��������� ��������, ����� �� ������� �������� ����� ����� �� ���������� ���� �����.������ ����:���� ����������°��� 12 EXHIBIT 3 � • � � �- - c -, a , �'' � ' . � . •. - +, , . -� • � • • . � � • r • -� . � � • �,• -� •. �. -� � • . � -• . -� � . -� � �� - . . . . -� � - - • . � �� ;. • � � • �- - �. - �. r�- � �r , �. - �, r • •r -� ' � � � . � �; ra , � . � • � . �� w-� . �,�� �� .- r, . � , - , - � . � � � - , � • � • �� � '- �` , � . � ' , r' r � r �- . a • r - • • � . � �_ *,; , - �- .. -- - . •- • • , • - ,� -� � ' . + -� r r- � • , � .* - � � r , • � - � � -r - , r � , • � • - � • � , � . � � . r � '-� • . �� - a � t • . � � . �- • -� r • . � • •- • • • � � � , � � � � • r • � • r . ' , ' • - � � - . � . .�r •� ,,'- . • �' -, � � � � �- * � , r • , • , � � • '' - � � r . '� � • �- w � . -� -� . � •- -� � � -� -• -� r � , , + -� � � * •�- �. r • • � � 1 •' - �; - � � �,- ':� � � � � - -. � . � - � � 1' 1 • . ' � � " � . �' i "! �I" !' ' � � 1 � ' 1 � . ' • s; • � � ' . �'`�� ' � � � ���#' . � •� I ' � !� I � '� �: • . � f : . � '. �- � � �- • �' Y� • � � �. ��. � �. • �' s: � �: � ' � •� ' # '�. • � ��. �' � • :/�.:� f '.. ... • � ' � ' � � �' � I � - � • •,, • '� F � � Contractor shall at all times keep the Site free from waste materials or rubbish caused by its activities. As soon as practicable after the completion of all Punch List items, Contractor shall remove all of its equipment and materials not constituting part of the Facility and rernove all waste material and rubbish generated by Contractor or that Contractor has brought to the Site, in connection with Contractor's performance of the Work, from the Site to a permitted disposal facility, and restore the Site in accordance with all Applicable Laws and this Agreement. '���� ���:������� ���� ���� �����°��������� �������� ����� �����•����� �������������� ����� �� ����������������,�� ���������Po������°������������� ���m������������°�°� ��:������w �������� ������k ������� ���.���������:���� �.��� ������������ ����������������� ��� ����������;� ����� ���� �������������w ���" �"����� ��������������� �'.������ �����ti����� �������� ����:����� ������� ������m ��������� ���� ����� ��� ������,������� ������� �������� �������� �����������F�� 13 EXHIBIT 3 Contractor r��cc��,c����� 4z���1 ����c=e� that safety is oi` �i�t��li�,����i �1.�a��ca�•L�r��.c; ��� �1-�c� performance of the Work �y���� ����t C'c��itr��tc�s` i:� responsible for ��e�Yf ���°r��ai��; ci�� '4�''�x'� �i� �� ��1� manner. Contractor agree;� C�� ���r•�i��°��� �i�e V����'I�, and Contractor ����.I1 �•�����i�`�. =�11 `�ccl�tr����t�•���[.ca�°� to perform their portion of the Work, in accorc���r��� ���itl� ti�c� ��.��ty ��1��� l�c���lt�� �'1�1�� �i1�� �t�1�ci�r�� of Applicable Law and the safety program ��v�.le��,���� l�s�� �'t�i�i�•�z�ts��• ���ti� :�ul���r�iii.c;c� t�� C7�r�a�;r. Contractar further agrees to provide necessary ���ainii�� �� ��s �i����1c�y��� ����cl �k�l�cc���ta•�i�tc��`� t�� inform them of the foregoing safety and health �°�.al�:� �t��cl :����r���z�d��;. �f�€���1�� C�vvi�c�� at ��r�Y �is��+�, observe Contractor, or any of its Subcontractors, ��c�r���z•��i��� t��� �t�'���� i�� ���� ���s�al�: �����1���•, e�1 ir� a manner that may, if continued, become unsaf"L, tl���� ��v��c�i• �l��il l���re: ���c� �`i�;t��: (1.���t �3r�t t1��: obligation) to require Contractor to stop the °�c��°� ���tc�l��� i�y t��� �ii�s���� ��r$��tic;u €.rr�til s�.��;1� t:i���� as the manner of performing the Work Yias b�.c�� �-�i�E��r�� ��f�. �'c�-�i�tiE`���tc��` �i���ll ��� �'���i��l�z�'l�. it�l° the security and care of the Facility as set forth in Section 2.13. Nothing in this Section 2.7 shall affect Contractor's status as an independent contractor. In the event of any emergency endangering life or property, Contractor shall take such action as may be reasonable and necessary to prevent, avoid or mitigate injury, damage, or loss and shall, as soon as possible, report any such incidents, including Contractor's response thereto, to Owner. i I" �`c�i�tr��i�r 1�a� r�c�t t�ik�r7 �`��:���������i�c�. precautions for the safety of the public or the protection o�����.'�'�y�°I�� �.x�c� ��Xcl� [ti:��l��N�� �r�<�te,� ���� emergency requiring immediate action, then Owner, with �at� ���tl�c���t ���v�u��c i����i�� t� �:ontractor may, but shall be under no obligation to, provide reasonable protection as required to address such emergency; provided, however, that Ovmer shall in any event notify Contractor of any actions taken by Owner within ten (10) Business Days of taking such action. All reasonable direct costs so incurred by Owner as a result of any emergency caused by Contractor shall be reimbursed by Contractor. SECTION 2.9. 1L���v��t��`��`tiiic������, �'�:r���it� ����c� �,%��s���.� Contractor shall obtain all approvals, certificates, and licenses required to be in Contractor's name to perform the Work and provide the Permits set forth in Exhibit F. Contractor shall promptly, within such time period as may be agreed upon by the Parties, provide Owner with reasonable assistance that Owner may require to secure the approvals, certificates, Permits and licenses required to be in the name of Owner as set forth in Exhibit F. • 1 The Contract Price includes and Contractor shall be liable for and pay to the applicable Governmental Authority all taxes and ���ii�a�il���tic�xa� i��� unemployment insurance, benefits, withhalding taxes, and similar benefits, as �v�,�� �r� ����c� 7��c�sured by or imposed on the net income of Contractor by Applicable Law or coll�;c�iu� l��z����ia�ar��; agreements with respect to `�`��� a����.������� §����� ���:�,� ����w���������s���.� ����:���°��� ������ �:�a������� ����`�.�����,������:��� ��u��� u�� �:��`����.�,ffi������� �;:�.�������������������t������:�°�-, ����������i���J,���T;�r, ������������ ��������� �����r��� �������� ���7��������������� ��� ���������� ����:����������� �� ���������.��������� �������� �:���� ���°�������������� ���"���,�� �r����r��°��������� �."�����k� ����;��:�� ���.����� ������m���� �������� ��������* ���:���`��, ��� a����� ��� ���N�������� ������ �������.���°°��� ������ ��,���:.�����W�� 14 EXHIBIT 3 ��- :� � • -� � �, � � •• • ' • � � �' • �' � , � , , - , � � � � � � . ; - - . -w . � ••, � . ��; -� -• On all invoices, Contractor shall separately show and Owner shall pay to Contractor, in addition to the Contract Price, all sales, use, value added, excises, assessments, chaxges, and ��t6���r �is��iil�x�• lG���� i�������sed by any Gove ental ���%IZ��r°ity� ���� tl�� Wc3�Al4, c�r� �:��y part thereof, ir�€�1�rc1�r�� ��Lr� z���l li���i���:i to Contractor's purchase or ��1� c�f ��,����������r�� «r c��k��l" ����i�rials installed r��, �c��r��������t�,c! iz�[ca, �� afiixed or attached to the �°`��c.il�iy, ��c �i��., c�r t6�� 'i�'���'k (collectively, °�{��:�-���• '1'�����"�, �iracl �)wner shall indemnify, defend and hold Contractor harmless from tax li��l�riliiv, i��:l�,t°�:;�� �u�.tA��c�� ����c� �c����lti�� �����c��;��i v�s a result of (i) any failure cs�t ���k��� ��y ��r�u�• t� ���y ()�v����° "1'��e� �� 1�a�zrt cft � C`c�r3t�-��a,i��r �t����iu� or (ii) Owner's claim of �x�.r�����i���� [�°�a��� ������ i�t�c� �1���1� �l<�ir�� i;� l�rt�;7° d�����.c� �y tl�c cc���v���� %��ve ental Authority or lr�t�i= r•�vi��.�i l�� �e.�vj�ci•. Contractor shall reasonably cooperate with Owner to utilize appropriate nontaxable ��.��������a��� ���1�������� ��i�c1 ��rlif���t�� ��r �i��ilar certificates from other states (a properly- ����p������ ����-��� c�,�` y,,,���c�r� �����Il 1��. tii��c��v ���•c�ui�led to Contractor by Owner), where allowed by ,��������,{��,�� ��,;�,, ��� 3����i��1,ac ��r�.l� ���v��c�r "�`����. Charges not subject to Owner Taxes shall be ����i��� � ���� ���,� �.��� ;����� ��,;�,,���'• �,;.���.�; ����� � ��� � 1��7.���,��� to Owner thereon. In the event, however, ����� ���,���t�� ��-��; �1�;� �[`z����������1-�1� ir-�:�s����Gi��a�� �:�,r�tii ic�aies or the identiiication by Owner of charges r�cy� ��r��c�t tc� �}wr�c;�` `T'��c�, �r.�c:l7 t����.s ���Yc ir���������3 i�y <���� [�t�ve.��nr���rryt��l ��ailic�x{it�. �r���� ����� ��r�� �zi��P r�c,:���l�ii��; i����:�°e.��, li����4 i��i����ti�;�, �x��it �.c��t�, n.��c� c�e;i����c ���;�:� �l���ll i-�� i��vc�i��c� ��� �ai�� ���i��zl��.��•���� l,ay ���v��c�° �.� ��i lc�ril� 1��;�-c;i��. [:)�rvr��,a� ��;r���.� tca iir���Nv ����y ���- r��:i�t�t�s�ar�� C�c�����•��c�ic��° fi�r i11� ��i���at�c4 1�.��,� c����� t�i�� �r� ����ssc:cl tt> �v��ici ar�y �'�r�{�1��:r• i�� l���l�ili�i��;, int�:.�����, �7�i��11.��;� ���° ��1��� ����.��x�;t iYc���iL���ic��-, �'c���i�{��:t�ar �I1�z11 ������vide sufficient detail, as requested by Owner, as to �����;����,7�;��� �1�,�. °t��,z•r� ���h��p� ��r��:� ��.tk���ct tca t.�w�-��r Taxes which are invoiced to Owner. Owner shall have the right to inspect and audit the records raC`€ "�a1�ir��e��c�r �rr��h �����c.t t�'� ��zcl� i��vc�i���1 �zn�c�unts. In the event of an audit by any Governmental �rril�cx�°ity�� r��ill� i-��r���t tr� s�i�i� �rx��.:�, �"ca�1:.��a�tc�r• shail provide reasonable cooperation to Owner to de9�t��1 <��ic� �lc�t�t����e,��t ���e ��������»�t ���� :���cl� t���e�,� paid on the Work. Owner qualifies for sales tax exe��i�7ti��� l���i�����1�� �c� t:ta� ��ar���fisions of Article 20.04 (F} of the Texas Limited Sales, Excise and Use T��x ��t, Cr� tl�� ����'[i�i Ln�����c� of its Work for Owner, Contractor may, by separate agreement, purcl�ti�u ��������'i�I�; ��i��i ��ri���lies and rent or lease equipment sales tax free. In connection with any such transaction, Owner would issue exemption certificates to Contractor in compliance with the State Comptroller's ruling #95-0.07 and #95-0.09. SECTION 2.11. Hazardous Materials Contractor shall design, construct, pre-commission, test and start-up the Facility and otherwise perform the Work in compliance with the requirements of all Applicable Laws. If, during the course of the performance of illc Vv'�:�1-l�, i":�a���N`��cl��r. ���. �i.i�v ������'�����j������'�. ���`�����'��`S9 or reasonably believes it has discovered in, c��� t-��� �ry��l�:�- ����y ��ai•t caf`il�� �it�, �t7y l l���G�i`������� I'���t�rials (other than Hazardous Materials that Contract���- ��i• �1 �i�l�i;��l�t�•��tc��� ���z� ��t�c��:��1�� ����tc� t�a�. Site, `�'���� �:����;°�������� ������ ������ <���'���M������.k���� ������°����� ������r� �y����������: �������������������� ������ �� �;,�����������i��� �;�r� ��°���������,��n����a� ��� ���,LL���,������������= � �������1���� ����������_ ����������° ��������, �������ro�°�����-� ���� �����i�� ���'���c���������� i ;��������������,�� ������� ����s ����w���������� ���� `�'�����;� �_�����°������������� � �����,;���:���� ��������� �����Q��, �����"��� ������1��� ��� �::���� � �� ���� �� ��������:���:� ������ �°���.��r��� �:�������: ���������r°�� 15 EXHIBIT 3 produced, created or used), Contractor shall pr��c��c� i�� ��c.��a���l����� with Section 13.4(c). Except to the extent of Contractor's responsibility t.����Ic��� ��:�ti+��� �� �.4(b), Owner shall be solely responsible and liable for all liabilities arising fro��1: �i) ���ir�r��c��da Material existing at the Site as of the date of this Agreement, and (ii) all other Hazardous Material brought to or produced at the Site by Owner, Equipment Contractors or others (other than Contractor or its Subcontractors) on or after the date of this Agreement. , � � �;. - * . � '-�� � • .' � � . r r •. - * � + � � � �! �. � : �: . �.. .. ...' , � : ' � . : � � �... '. ' � � '. ': 1 + �' `.'. s; �: 1 . #: � .: .1 ��. ! � ' �' ' • • ..'-: •' �: � • � •�, "�• +,1' 1 ' #'', •'! �`' � � � � � �' �` - � # • �� ' 'f• , - � � � � ' • . i' ' + � �, . � � r ' *: �: ' ����. � �� : � • _. . � . � �. . � �: ���.. � � �� r: � ' � � �" • • ' :•: � �'. + ' ': # � •� ` .. ' � (a) Minutes for all meetings involving the Owner within four (4} Business Days following such meeting; � � •+ - -�� • • � (c) Incident reports within three (3} Business Days of the occurrence af safety incidents, environmental incidents or incident involving damage to the Facility (preliminary written notice is to be provided to Owner within eight (8) hours of a such incidents; provided, however, that verbal notice of critical or fatal injuries shall be provided to Owner within three (3) hours); (d) Monthly construction milestone status reports and monthly progress reports no later than the fifth (Sth) Business Day of each month, which shall cover activities up to the end of the previous month; (e) Updates every month to the Facility CPM Schedule pursuant to Section 3.2; SECTION 2.13. Care Custody and Control/Risk of Loss ' �� - . - � . � - r ' • --� � . � ' i � � , r , , - - - .�� � • , - �� , � � � . � � '+, � , - . � . � �� -� � � •� � � � � � � • r •r • r� -� ' .'� �- � • • �� -� � +; �- � , � ,-, - �� � � . - �c . � • � . + � r � • - �� -� ' w � i • � ��.-,. � •.. . -�. � -� , - • • •� ..# � � � � r � � . �. � � � • • � r � . . � • • � •- •' � • . r • •r � � r -• , r �. •` P�" �� �����:�������� ���� ����� ������� ���� ���������� ����� �.�����i�� ���.����������� ������ �� ����r���r�����, ����� ����������������������� �°������������ �.�������� ������a�; �������° �������� ��:����������� �a�� ����������� ����"�� ������ ��� ����:��m������� ���� ��� ����������� ���"�'���� ��:�������°������� �"���� �4���:������ ��������� ��:����}�� ����� �� �����:����� �����;��� ����� �� �, ��������.��� ���� ���.����°��:� �����i� ������������.� 16 EXHIBIT 3 •. , - �� � � • . c � • r . . . � • ��' -, r � . � � • • �' . ' � -� a� � � � • r � • � . • �- • • � -�.-• �' � �,. � . • r � r �' • � ', . •� . r • r' • , r- � � . � • - � , - � • . � . +,' -� ,�, . �- � �- � . r - • r � � r � �; � � , � , , � . ���• - -� � . , , .. � �_ � � . - �� , � � �'' � _ , r; • r r'. . • r- � � . - . � , � �- � !.- . � . . �,- �' . ,� - �- • ', , � � � � �' � �� �. � � ,, �, , r- - r�, � - � . � �� ,. -�'• -� . - -�. r - � , � • . -�'; � • �� -� � r � � '• •► -� � � . • r • � �r - -� ' •� �'- � '� w,. .+-r • �,. r -� � r � . � •� . [ � � • �� �,� �t -. -� �• � -� r• • �' � . � - - - � , � • - r- -- �.� .� - . . � - � , I! � � � . ' � �' � � . . . - ' . � , r � . • ' ♦; � � • • r •�. � . �� • � � + � �- � - • • •-� • - r� � • • . -� -r SECTION 2.15. Operational Supervision .' � r r '. .; • � - �! • ' r �- ;• -' . •�- . � . � - •- � � � �-�, • . • �"' •� • - � r •- �� • �' • � . �'- � � s • , • • . • � +- � �- - •�- . • -� -� � . + , � � � ;, • ', - , - •' - � � .. �� � � � • . • , � , � . � • . �r � � � • •-' • I � .�• • , r • -• �; , , • � r , s' . . � � r . � r' �- -� � , � - • • � .�• • . .�� � , r' �- r ,� - � � �'- -�i � • . , �� r; r' � �. � -� r • • � � - • , • 'I . r• - �� � - � r . � • '�� r - � � . r . � - �- � -�' • � , r � . • � • � . • � � �'' • � •� +. � �- r . �� � � � � � � - �� +, r � �+r�- �- � �� � . - � � � r , • • �- • -� r � . � ' . - �- -� . r r .� �- � -� � ' `�'���� �.����������� ���� ���� �����. ����� ������.� ����� �°e�������� ������� ������� ����:� �� ��:�������z�����, �,�������������1��������������� ��������:�����p� �����e��m ��������° �����° �������.�f �.�.������������ ;��� �������°��� ��a��:��a�a������ ��� �������:����°� ���� �:�� ��°��p������ ��"��C����� �:�����.��4��������� ��"����� ������r� ���*����� ���.����� ����� �� ����:���� �����;��� ���� ����� ��� ������� �:��� ��TM�:���� ���:����°�� ��:������ �������������°�. 17 EXHIBIT 3 (c) Owner'� �;��������i c�l' ��.���r ��aroposed Major Subcontract shall not constitute an approval of any ���arti��� c�f't1�� 1�v'c���I� or a waiver of any of Owner's rights hereunder or reduce Contract€�i- ����.��������ikarlit��.s hereunder. Contractor shall provide to Owner, on request, information concerning the status of the performance under and any disputes under each Major Subcontract, including information concerning specifications and cancellation terms. (d} Notwithstanding any agreemei�t ��il� �L�� ��G���`�a�����������t��� �-���i���-����'1� ���ll be solely responsible for il�� V�c���lw. �'������-����c�r ����; �:�r������t� ��.���`� sc�l� �•�.s�������l��l�ty �:� a principal for its agents ����c! ��Ii ���1���:°;� it 1�i�°e;� ��� ���•Cc��•s�� c��� �r��i�t ir� �rc°�•1���•�i�si��� tl�� Work. Except as otherw���. ��r�vi��.�3 i�� il�i:� 1��,�'c'c����c:�ai, C�wr��r- �1��[1 i��at l�� ��c������ tc� have any contractual obligation to any Siil��:c�i�ii��s�:tc�i` a���i ��c����i���k c.c�����1�i��c1 i� �����' subcontract shall create a contractual relationship between any Subcontractor and Owner. SECTION 2.17. Key Personnel Contractor shall appoint a Project M��������, ��'���������`������ ���� �������''� ��1��� `i� �1i��������°iz��, �v`[����r����- �l���c�tk���- tla� "I��.� 1������r����c��"] ��� :��t ic�r��l� i�� �?a��i��i�t J� `l���c� l'i°c�jc��;t I'�1�.�������° ������� �is�v� {`u�� �-���r����il�ilily ���c� Lz���3�c��•�ty li��{ t���c tA���i°y� c��� ���.l���f'��fit.`���7t.�a��t��� �«�1 �l�ti�i1 ��ct �� (_����c��"s ��•��r���r� ��c�i��� ��`c���i�t�m�� s���tl� ��c��l�=��ci�aa• w�th ��:��a�.�t ���a ��rc�;������t��c��� r�� �1��. Wcarl�.. C'c����a���ic��a ��itYl1 ��t�� �:1������;� �r l�iy k'��•�c�r���c,l ��c��;i�ic��� c��- ����,; �-��.;r���c3 �������i��i�ci i� s�Nc�l� l���i�i���� without the prior written consent of Owner, whicl� �l�zi:l l r��t E�� ��i���� �i:���zj�����y' ��{i������`��� ���- ������Y��• � „ � ��- . • � �• � • Upon prior reasonable notice by (��vi-��:a•, ��'����i:1-�i�t���- �l��ll c;c�c�p�:.�ry���� r���t��, ��r��� ��'=a.��t reasonable access to the Site to, any person whrt�s�� i.�r��fsz��' ����c�it�ti:� i�� ��s'i�:i��� ��� ���'t��'r���= ��=�'�i��`� with respect to the Facility, including, without lii��i����ic�i�� �ri�yy ��e:��-�c���, r�rl�cll��.�' c;���]�1c�3'�ci I�y �����'����` or not, carrying out interface work in relation to il��: ���� ;�����1?ly �y��t��l"�. i��� �M�.�ir�i� rd�t��'�°,�����i�'��a��r� facilities and the water supply and discharge syst����; ��'��vicl�:c�, ii��C <7vvi�€��' ��l�t��i��:; ������:c;�-��:nt 1:�`c���� ���ul� ���r{������ �r� ut�carcl����1i�, w�:il� C'c��ti•���tc�r`;� �vc��°� �r�iie�iii�;�, �e,���l�l� �vi��� �c�r�tf��s�ie��~`� �����lti�� �zn�l ��[�ty �°c�;��������ie�7ts� �����li�;Y���: �_,��� �u��i i'�°���3���t tll�l�t� 1'����.-�ic;�� ��`i�*��.����.��� lc� ���l��t�i�i��l C'c����pl�.�i���� �c��w, �l" c��z-�� ����1�i�1y t:i���.� �:��nti•c�s� cr9' �lz� 1°`�i�ili�v i� t�•�t���f�rryr�ci t�� i�lw����• ��r�i���• ic� ��€l��;t<T��ti�l C"c������lcti���7�, C��v���z° ����c1 C'c-aN�tJ��i�i��r- �k�G�ll 4:.c�������-�r�� ��raci �c��}7-cii��<i�� �c� tf�{�t: Contractor's activities with respect to the F��cilii:�f �ica ����i �i�t��`9e���; �viiY� �1'�� �����,�'4�ti�a1� rti"c� maintenance of the Facility and so that Owner'� ����.r-a�jc�x� ��r��l r��a���Lc��r�ai��:� r�f� t��c` �"�����'�� ����`� not interfere with Contractor's completion of th� �v'���°� �vi��� �•�:��a�;ct l� tli�� 1'��� ili�.y. SECTION 2.19. Start-Up Commissionin� and Testin� Gas (a) Contractor shall only use, and Owner shall cause the Equipment Contractor to only use, the natural gas supplied by Owner for the purposes of starting-up, ,T.; I� �;:����������� ������ ����� �,������������xi�g��w ���� �;�k��� ������ ���,���.���:� ����`���s����������� ������ �� ������������i��� ������������°i��T��������������.�, ��������������_����,�, d�������`���� ��������_ ��������� ���������� ����������r�������: �����.� ��x������,1 i�����x������� �� ��a������������°� ��,�u��� ����� ���°��w� �������� ��� �'������� �����_�� ��u���w��� �;°���.��� ��������� ���������� ����� �, ���.� �� �����!�a� ���������� ������ ��t �� ����������� �������� �������i���. ��� ���, ��i��w��������x.,,�� 18 EXHIBIT 3 co issioning, and initial operation and testing of the Facility and the performance of the Performance Tests. Owner shall cause the Equipment �Contractor to follow the scheduling and nomination procedures for natural gas to be mutually developed by the Parties prior to the commencement of the Performance Tests on a basis consistent with the requirements of Owner's fuel supply and transportation agreement(s). � � � -w+- , r. . -� + �' � . � r • -•, �, �. �` � � r, •' � 1 • �� -r � r � i r; � i • - �, - �' � �'- � � • . . � � � - � . _ . • - l - . - • -, • - . . � - . � - • - • . �• -� � • �- .- �,. '� � +, �' •� w r •' � I• •� -� . � -� � • I �� � , �; � - '. .• - � �- - �• . . ,+ .. - .- � � r -� � � � . � .�� � .- �; �� • � '� • •�� i• � •- � -� �� � •' �.- • � , ,� �- - �• � - '• • � � � � , - • •� -� � �, � • . • � � - � , • . • - � ' � � + , . � • �-� • -� r , • •- - �• , - r � ; � : +' •. �• - r- � � r,�,, , .� •� -� w � � �. ,� � � �r -� � . �- .r- . . .� - � � . � . - �- - '� . � . �- � • . - ` •� � � � � � �. � � . - � i i i � � • .' �r' � . �. • -� • �- -� � � • � - • . � � - - " " ' ', � • • , • -� . � , -•,'. • .- � " • . •� . • •�• .� �_ �; , • . � ,, � �� � � _ � _ . � . r; • + ,- • �- w • � + ' " , � �� �� � � . • , � � + �- • + � • , . - -r � � � �.. , - - � - �- - � _ •�- • •.� _ , _ _ . � .�. , * . _ , . � � - �• '� � � - � . . ! � - � � �� �' . •" - �,! �I' � . .; � �' ' � _ ••' .� �, � . � �'!. • �1 •' � ♦ ! � "*• � � � � • �" '. �' t�. � � 1 I. 1'' � � �"� '! � )', � _ • � , ,' ' )' � � ' !' ' � �' ' + ' � � � •' r �- f! . s • ' � �• "� •' � �, !' + �' 1•' ��� �:������������: ������ ����� �������.�������� �����m���� ����� ����������� a�������������� ���� �� �°�r������������ ������r����������������������� �µt �a��:����� ���������� �� ���:. �������� �������;� ��:������4������� ����� ���������I ���:������������ ��� �����a°�.��s�� ������ ��� r°��������� �� "l'������ ���g����������� �,.���� ��,�*���� ;����1�1� ��"����:��� ����I:��1 ����:��'��� ����"�w�`�� �.���� ��� �:�� ��T�:��������� �'�µ����� ���������°��:� �a�� ��� ������������, 19 EXHIBIT 3 '' -� • � � + • . � . � �• � � r' • � r - �• - --� r � + -•' •� -� � r � �, �'- •� ' • 'r. �� + -� •s -� i � - • � ; '- •a �� . � . ' •� � , -# • - � � r � . � • - , r ��- . + �� . � � •. ► � . - . . .� • , -�-� �� � • r- � � �-� r r • t �, , r- �- � .� � • . '� ��- .`� . - . . .� - --�,-♦ �- � �r r ��- , r � _ • �� -� � � �� • r � �- s�- , -� . � e.r -. •' .� -� -� r � � � . � ' � r � • . •;.�'.. � �. � . �� ��' �. . �' �� • �: � + ', ' � . . � -� � • �- • � : � � � � a � ' � - • . � ' •' � •' � �' • • � ► . . . � " !' � � ' � ." !' � • • � � '.'-�+- � � . ' -� - - . . , � _ • �'f : � -. • . '. 1' • ' � � � : �. .. ' �. : � * ". , ��. : � � � t ' � ' �' '�. - � -� ��' : � ."� :� !' • � � r � a 'f; •1 � � � ! '• � .' ' • 1 � �' ; � f •� �. � . � ��. � �.:'' • � � .��� ' • '. I �'� . .. � � :,: ' / 1�.: / ' . �.:� '. ,. . � �,,' ' �..� � ', '. � .,. �.. . .., � ` �'�� � � �� '�.. " 1 w .' �� ' / ' . : ���. � ` �� '�� '� f •� " ��: � • + �'" '1 • 1 ' • ., • �" � 1 ! �'� •l:. '� '�'. !" �"�. � � ::�� i ��:`, ��.� � t �. • � �� �� � � � �'.. ' � #.: � ! � ' �� ' �' + �' �: � . � � �' • � � • ' 1 � + � ' � � ' •' � �' ' . � � �,' � ' � •'' •� 1' ' �' . � 1r '� • ��' ' 1' " f � �•' '� ' 1 � ' ! • •.,.`• �• ' �, - � �' � � 'i ' � � • (e) Inspection; Storage of Owner-Supplied Equipment. Upon receipt at the Site of any lot of Owner-Supplied Equipment, Contractor shall inspect the same (including Equipment Contractor's relevant packing lists provided by Ovmer or Equipment Contractor) visually and shall notify Owner of, and provide a reasonably detailed written description of, any shortage, defect or default relative to the Equipment Contract's technical specifications for such Owner-Supplied Equipment, if detected. Contractor shall request that Owner promptly remedy any shortage, defect or default, provided that if Owner disagrees with Contractor with respect to Contractor's assessment, the Parties shall submit the matter to resolution in accordance with Article 11, If it is finally determined that no material shortage, defect or default exists, then such Owner-Supplied Equipment shall be deemed satisfactory to Contractor as of the date of its delivery at the Site. The provisions of this Section 2.22(e) shall apply to �'���� ������������: ������ ���w� �.��-��� ������ �������� �����° �.������i�� ���:��������a��� ���� �� ����������������, ��� ����,��������=����n���:����, �������������a�t� �������� ��������° ������ ���a��:� �°� ������°� ����� ���������� ����t���������� ��� ���°�g�� ������ ����� ���, ����������n� ��" �� �:��� � �������� ����; �ti::�a���� ����� ����� ���.� �)� � ����� ��� ���.� � � ������� ���."� ���� ���� ������ ��� �����������.� �"�µ���� ��������� �����:��a� ���� �������°��� 20 EXHIBIT 3 any Owner-Supplied Equipment supplied ts�� �°� i��cc�y ����y ������ '����i����€;� ���' default or in substitution for any defective Owner-Suppli�;� i�:���i�c���i��'�'l�iuk� k�s�s �a�c��� repaired. All ���,�:��:����•y �:�:����; �c�r. �i��a•�a�;�, i1����cltsi��,, ��•��tica�� ��c�c� c������r��i�si��taii�� �f' any Owner- ��.��������ci l;qi:�i�in.���t t�� ��� i�����ri.°c��� �-ii���� it�; c3�liv�:,�-�, ��nc� �ll �c��;t� �«�i �.��°������� ii�c���•�•ec� %� C".�a��t�-���t��r �=c;��a�i�� i�� �1�� ����n�i�i�tr��:i�n calYth� i:��ii�-���7�°a�t �'����t���ct� �wevi�;�r �1 v�i��le��- c�r�mwi����, cx���:cliiitr� ���z�� i������:tis���� c��`���� �)r�r��c:ar�`�����a?li��i i?c��aip���ui�i �1�� ia�cl������ i�� the Contract Price. Equipment Contractor �����ll �•c�����i�a r����c�r���l�l�. le�i- ���y �l�c�rC����,� it� the Owner-Supplied Equipment not identified at the time of the inspection or for items required to complete the Work. (f} Equip ent Contractor. Notwithstanding any other provision of this Section 2.22, Contractor shall: �- - , �r � r _ �• �- ' � � . � � � , � , • � ,♦ � r • � • -� � , � - . -� � � �-� � • , � � � � +- - r � �• - � ,'' � - �� r- , ,-• � � � � � • • , c'• �ii� ��src�vi�i� ��4�ticc° t�� ��w�r�:�� ���°c������t�y �ti:tei- Contractor becornes aware c�i` ����y �����t�ri�zl f�ilkn�� 1��+ tliG I�c��i�����°����t �:c�r�tra�;tc��• or Owner to perform its a1�„,���.c:�iv� ��l�li��tica��:� ����a.i�.r ilz�: ��c�Eii}�ment Contract (including any work ��;1����r�C����:1 t�� �',c��t��{��:i�x�• c�r- t4�� 1�.���ri���°���x�t Contractor that does not conform to the x�����.�ie��r.��rrt� a��"���� �:c������r���.��t ������tz•=�ct)9 (iii) assist Owner in the review, evaluation and documentation of claims against the Equipment Contractor; and (iv) record the Equipment Contractor's performance of its respective obligations under the Equipment Contract after delivery of the respective Owner- Supplied Equipment to the Site. (g) Notwithstanding the foregoing, Contractor's authority in connection with Contractor's administration of the Equipment Contract shall be limited such that Contractor shall neither do nor undertake to do any of the following without Owner's prior written consent in each case: , -; � � �� a � • . ' (ii) waive or excuse the Equipment Contractor's performance of its obligations under the Equipment Contract; "�"���� ����;� ����� ����� ���' �����:��������� �������:� �����r� ��������� ������°��������� ������; ��. ��������������� ���������w���,���°��;��������x�� ����������,��w�P, ����1�.�� ���:����° �.������.,, �.������� �������������f� ���� �������,.��� ���:�������������*�� ������������ ��•�� ���� ������������ ��P������ ���:����������� �.`����� �������� ��������� ��������� ���.����� ���������� �������� ���� ������ ��� ���������� ������ �°���������� ������� ������.������� 21 EXHIBIT 3 � + • • - - . . , � . � � • ` • • � . � '•' • � . • � • � � � � � . r' r - - ' � �,, � (iv) receive any amounts payable as liquidated damages or otherwise under any Equipment Contract; or (v) release, compromise or waive any claim against the Equipment Contractor. � � - •, �. •; (a) Site. As set forth in Exhibit A, Owner shall make the Site available to Contractor to support the project schedule, which, as of the Effective Date, reflects a plan to mobilize Contractor's activities on the Site on January 16, 2016. (b} wner-Supplied Equip ent. No later than the dates set out in the Equipment Contract, Owner shall make available to Contractor the Owner-Supplied Equipment and, promptly after Owner's receipt, a copy of the design documents provided to it under the Equipment Contract. Owner is responsible for providing all field personnel and technical advisors from the Equipment Contractor as necessary for the Contractor to perforrn the Work. If Owner grants the Equiprnent Contractor time extensions or additional days for the Equipment Contractor's Start-Up and Performance Testing (as such terms are defined in the Equipment Contract} during the execution of the Work for reasons other than those attributable to Contractor, Contractor shall be entitled to a Change Order pursuant and subject to Article V. (c) Fuel, ater, and Lubricants. Owner shall provide, at the relevant Site boundary or defined interface point, ���►����ry��l �;E�� �r��� �ll �tiliti��, ir��°,iu�lit�� w���t�r� �t��A construction, and testing and, after el�.c�.t��icsi���, �� *��:i. �`��r-�l� i�z �"�1�il�it �, ic� ��z��.%�e construction, testing, start-up, co issicr�x€i��.�� ��x��1 ���itia� ���c1'��t�c�s� ��'���� r'i���1�t�", ���,� all Performance Tests in accordance �viil� tl�� 1'�•�x_j�:�:t l'vli��:�t��ar�� �ul��il�rl�., ��wx��::r ����.�1 provide the initial fills of lubricants and consumables as speciiied in Exhibit A. (d} Operations Personnel. Owner shall provide, at its cost, a complement, consistent with normal staffing levels for the Facility of appropriately qualified, competent, and, where necessary, licensed operators when required by Contractor to support the Equipment Contractor's co issioning, initial operation of the Facility and all Performance Tests. � ' i • . � � r,- . � * � • � • �;�- r � � � - � • c'+ � � , � -. � .r - � ,� �- , � �- • • �������� ����,���'������ ������ e$�'�t�p ����a��'����.��i�11�'� ���'�.`�"���� �i�����, �,'�'��h��°1i��� ����tl���.,�������4��� ��Vr�� �:� ����'������'��3���,�� �:�����'����°�,::���������;��������.°� �����:����°��°�,t��°�°� 8������"���� �"���,1�����i �`�����°��; ���n���;� t°������������4,��� ���� ��������:���� ���"���„�������� ��� ���°�°���.���������: ��°���� ����� ���~��§�r�������� �a,�`,�°�a.���� �.�a����•������.a���. �.'������y� ��������� ��������� �������� ������ ��� ����1�� ���"������ ���� ����� �� ��n.�������� ������� �������� ����.���� ������������u 22 EXHIBIT 3 ,� � - � • � �r � � • .. --, .- r- �� � � . � . �'' � •' • - � ' . � . �- - •� � - ,� � a � . � � • - �� �. � • � � � 1 • � 1 � ! . +- � +- � . + �- -� �' � , � � � � � .' - � , / � ' -'' - �- � - . c � • � . - - s� - � r - �� ' r- '� �' . �" • �'�' • � • . � . 1 • 'f + . � � . • � � '# � �' 1 . . _ . , r � � ,- � �' ` ' � �„` 1 � ' ' � � , ' � , t1 � _ � � . , � _ . � '�� ! - � ' -1 ' � . �� � '1 �' � � � s� al � � r� � ! •'' �I ��' �- ''� i � 1 ' � � �� � _��_ ' e � . ' � - ' � • � ! � • ! I � � ' � " • � - ' . � � . ' • . �'; ' � ' � � . � �' ! " � ' �' � , �' �' �' ' r �'#'s -� � � 1' ! � • � � "l � � �1 1 �• _ � • • - • r � • . � �' � . • ��" . � ! _ �, � • �I''• . � • �- -� '�' `1 • !'' �' # �' . • �. � •' ', ' • - ' � - � �', ' � � � - • � " � �' � ' �" �'' (g) Licenses and Permits. Owner shall obtain any approvals, certificates, Permits and other licenses required to be in Owner's name that are required for the Facility and as set forth in Exhibit F, except where such Permits or licenses are specifically identified to be the responsibility of Contractor as part of the Work as set forth in Exhibit F. .�� � � - • . - � • - �� � ' � , • • � I # _ . �. . � � �- , - . - -� .,. - . ,��' ,� - ;1 � � �• � • . r • �'. � � . � . � + � ' � . • . � �- 1 /' -�. -! • - � ��' '� � � � � " �;' � � s � �" • , . � � 1 I 1 1 � � � '.; • � � • � !' •` �' '� � � ' •, �-� - r �' • • � �' � �i• � •# � • � 'l ! � T � • � 1 � �' -� � , � s' � �'' � ' � � � �' � � F' � � � � � �1 � ' • '� ' �, •�! ' • • •'! �`���k ������������ ���� ���:� ������������#���� �����°��� ���� ���������.�� ������°�����.����� ����� �� �����������.����� ����������������§�°����������, �.��������Po�������� ����1��� �� I�� , �:�����° �������' ������:�������� ���� ��������� �����°����.��� �� �;����.��°���������� ���� ������������� ���`°������ �v���=��-�� ���� �:'� �� ����,����� �������� �i���� ���� ������ ��� �.������° ��� �� ��`�� �.���� ���:;�.;� �� ���°�:�������� ��m����� �°�����x��� ��������: ����;�����a��� 23 EXHIBIT 3 SECTION 2.22. Commercial Activities Contractor shall not, and shall ens���•�, tl��t ��7� �L�l���ai�t���zc:ic��•� �3�� �����z ��`��;��;� t�� ����� commercial activity or permit any third 1���-tie:s, ������r- ��1�' ['�a��C�rt{�c,t��•'� cc�z�ir���, tc� ���al�li�l� commercial activities on the Site that are �.�a�€-�1���.c� i�� thc ���`����'�������� ��i ���� �''���'1�• ��4�'��i����'�����` shall not allow its employees to engage in ���y c:�G�������A�i�l ��tivitv c�i.� �1�� ��te ��t1�cL" ti��3i� i��� perforrnance of the Work. 1 ' � � " � � SECTION 3.1. +C"c�����ii��n�:�r�����C of tl�s� Wc�r� u��c� �.c���t�st�.s�l C�"c����t�I_�.��c���:..T)at� (a} Upon delivery of the initial notice to proceed (the 66Initial Notice to Proceed") and Owner's payment to Contractor of the initial Milestone Payment in accordance with Exhibit G, Contractor shall diligently prosecute only the limited Work set forth in Exhibit associated with such initial Milestone Payment. Contractor shall diligently prosecute the rest of the Work on an unrestricted basis in accordance with the Contract Documents upon Owner's issuance of a Final Notice to Proceed. Owner anticipates that the Final Notice to Proceed will be issued on or about October 13th, 2016 and if such anticipated date is a later date, then t��nrt���• �i�ai9 l��`��v'ic�� �������s����.tc��" �,v�tl� t�;�� (10} Business Days' notice of the anticip�tu�i is��r�r��.� c�f`il�c� F�i��<il ?���ti�.� t�a }�rc��:c�cl. Contractor acknowledges and agrees that c��l �r���u���'� ���4�'���1� ���" �� �'� ���i�l ���'' �''�`��''��� under or in connection with this Agreew�-�e���, ���1���� t��;:�m 1��� i���ti�� �[il��t����� I'��y�'�1���t, are in all respects subject to and conditic����:�i �.�Ezc�s� i.17�; �`�;.l��t�a�t �,��vct•�t�'�c��xt��1 l���ci��'t appropri�itic���s c�l' ��a1°ti�f�:i�t �'��11��ia��; t�3 ���s� f��iA ti�c. 1�sac�il�t� (ii��4�a���r� 4.1s�. 6�wr��;r'� ����i� and obli���t������ ��i�i�ii��; �u��c9€.�° t�le t'���liz•��;� f���:�.�����r�t��, rn���i�:°�� �r7����������•���tj��� sY���v t��; sourced [�•�a��� li��: [�����i�����i �lca:�ir�� ��I` il�� ������� ii� � iisz��� �,rn�����ji ��r�cl c�i� c�t���:r° t�,r���� and conditions that are satisfactory to �r�c1 ������iry������ l�y <-���si��` ii� ii� �nic ����c4 7��;�<'����� discretion (the 66 ond Financial Closii��"). �)w�'���� ��1����� ������� '�'� �'� ���� 13���`�����' Date, Bond Financial Closing may o����i' �� �.�Yr`1y ����7��'�" ������ ��� ��' ���tt cica�� r�c�� commit to Contractor to cause any B���ci �'�����`��i�l �'l+��ir7� c��` c�il��.�` �:i�al�x'�1��"���i���� �-� support the Facility and make paym�;aY1.:� �ic��°��,�x�ci��° t�� ����;u�� r��z ����1� r.�t�t�: c�t� c��� ���i� ��tl�c;� date. Any Bond Financial Closing sk��r.il ��e �vi��.����.�1 l�y t)�v���.�•"s cl�.livc��y tt� �'c�a�ta•a�i�w;. of the Final Notice to Proceed. If Ic�l� ����y r°�.���;ta�� ���• �����t 13����c1 1'i�-��n�i��1 ��l���i���� ���- other appropriation of �����i�����t �i�a�ci� �c� ��r:�y (i��a �)�����:�`� c�c�:�i� ���-�i� c���i�;,��i�r��� �f7������ this Agreement does n��t �r���;ro` ��,�c1 d� l�i���xl �l�atic.� ��� l'r•���:��,c� i� r���� is���e�i ���� c�z° �ai°ic�r� i�� the date which is 120 c���:� [i;�7�i� i1�� i;[�'�:c;ti�r�. [�at� (�4�� `°���t�ic�� �i.�i�`")4 t���7� �i�l���• Party may terminate this Agreement l�v ����°i���.�� r��,�ti�.c. t�� ��7� �3���� �'t��•��f ���i�'��`��� ���� later than 20 days after the Outsidc L)��t� ��kir��;ir��-�� t�� rv��i�:l`x tl�i�; !l��:ary�:�i�1���i: '�ill terrninate (effective as of the day whie.i� i� i ti �l��y� ��1t��• il��. cl��c: ��«1� ��c�i'c�� r:� ���:1iv�;�-�cl� ����a�i ����:",������� i���IR� ����k�' �������."����'��°�k���' '��,��°�'�`�4"� ��11a��, ��1�'��t�;��'�k°� �������'9��es�'����� ������ l�''� �:����3���'���"���, ����������������������m��'��������� �'����F����°��:������� a��������� ���������� ���������� ��������� ��r������������ ����� �� ��������. ����`�������i��� �� �����°�u�.a�����a���t �� ����� ���� ���°���� ���������, �a�°'� � �W�4ff � ������^��������^��� � ��r��.�, �������� ��������� ���zv����� �������� ��������° �������`���� ����:� �„y ��� ����������� ������� �*�������� �������� �������:������. 24 EXHIBIT 3 � - , r • � � +. � t - - ', � _ • _ .. � . ', r; r, . . � . •,'' ' •. � � � � r_ �_. .� • -� . � . � �' r;.• - r � r � . ; -. •; . � • ' � --� -� r • . � •- � . � � . • -� ' � . �- �-� � . � � s� - -r � , �. • I� - '. . � , r ' � "� , - - -� . - . • �r- 1 r - � . ,� . �- - -� ,� .. � ,_ ! �- , � �� - � - • . � r � . � -� - �. _ �• - r . -a � ' � �• � '• • � � � �� � •- � � - , �- + . � - . . • �- � -� � � ', �;. � � � . . � '� ' - � - , r; � , � . � ' t � - r; . � ' � . � -� - ., � ' -� . • � � � r � ,� ' • -� � . '• •- ',� � � �; .;� � -� �- • �. -"� - � - •t , r- .� -� � � � +. "' �', -,; � � - r -� � � r . � � - • �- -� � � . � � - • !. _ (b) Within thirty (30) days after the issuance of an Initial Notice to Praceed, Contractor shall submit for Owner's review and approval a 66Leve1 II99 schedule, in both electronic and hardcopy form, which shall use Primavera, conform to the Project Milestone Schedule, and identify the critical path for the Work. Within ninety (90) days after the issuance of an Initial Notice to Proceed, Contractor shall submit for Owner's review and approval a 66Leve1 III99 critical path method schedule (the 66Facility CP Schedale"), in both electronic and hardcopy form, which shall use Primavera, conform to the Project Milestone Schedule, and set forth the timing of all elements of the Work and the interrelationship of such elements. The Facility CPM Schedule shall describe comprehensively, and in a form and to the level of detail agreed to by Owner, the activities required to complete the Work. The Facility CPM Schedule shall be a resource-loaded, integrated project schedule that includes all significant activities divided into specific, identifiable tasks according to their importance, together with a critical path schedule. The Facility CPM Schedule shall highlight selected activities by time period and type of activity showing the sequence in which Cantractor proposes to perform the Work and the date by which Contractor reasonably requires that Owner shall have fulfilled its obligations under this Agreement and Contractor intends to rely upon the Facility CPM Schedule in cannection therewith. Contractor shall not change `����� ���������r�� �a��:� ��� ��������������� �����,��� ������° ���������� ������ ������ ���,���: �� ���:������r������� �������������������x�������� ��� �a������� ������� ������� ����� ������T �������������� ���� ���������� ����°��°����i��� ��� ����°���������� ���;�� � � �����a������ ���" `�`���� �:�����°��������h��� �����:��� ���:�;����� �������� � ��`�.����� ����� � �� ���������� ���.1�;�� ����� ����f ��� ������:������ �`� ���� ��������� �����-���� ������������m�� 25 EXHIBIT 3 the dates set forth in the Facility CPM Schedule for Owner's obligations unless approved by Owner. ��� {��7� ��,�ig���r ����� �����c����; ti��all be periodically (but at least monthly} ��.�,����,� ,,���� ������,��.�� ��� +���,,���i 5 i�� l�c�t,� electronic and hard copy form, with the �������ll-�l� ���-c�r�:r�.�� � �aca�•i. (����r�t����c:tcra �l�t��ll ���c�v��i� ���� �x��9��►�ut�c�r� c�i`���Yv ��l��c;ic�.� c1�:1��y ia� a��i�vir�� ��'r���e�� �i,lc�l�r��� �c��i����ti�� 'siz i+;���s��ii � h� tl��. c���t� �1��.��c�l`c�r• ii� �l�e: �'r�j��t �il�.�t����c: �c��e��ule ����� �:�az�:t�����.t���°'s lai��� {ir� a ��G��;l c�6' c9�.i��il �°€:��������k.�ly �����a��t�c� lry ����u������ t�� ��t���ci� ����i� ��;���' �� i�����������r i�r rt�l�%�.�� ��uk,�����ii�l C'ck��r��l�tic��� l�� t�ti�, C`�t�i�•��ct �`��i����l�ti���� ����t� ���c� �r���+ ac�c�iki��»�l ����;�� �a��c�ci���� v�=it�� ����:1� ��lak�. I�`��1 ��r�v ti�7�� �l�� I�4�eilsty �;i�111� `��1��.�r�1�: ������,xv�; ti��� aa�� 1'r���Lc.t �vlil��f����e: �����,��it�ry�� ����;;�����rf�� ����������i�>r-s� �ai�i ��c>� be achieved within fifteen (15) days of such �;�.���,�� �i��,������ ������,; �I��; �'c���lr��� C�c������letion Date with respect to Substantial �3��,��������i�a��j� �s����tii���r�i• ;;l���l� ��c��ri�� (.�v��ac;r- and submit to Owner for its review, a c•�cc�v��y� �.-�l��i tl��t ���������r��ti-���c� �����tiir°�c.i+,r's commercially reas��i�r�t��� �.I`[���•t� tc� �•���v�y' 1���� ti��A�� c��•, i�} il�� �l�1��3 c�����c�t l�c� x•�:���vered using comrnerc��31Y r���������j���� �.f1c��-t�, provide a plan to mitigate further delays (a 66Corrective Actior� 1''1���'"�. tJ��c��� r"�,.���}�t. of Owner's approval (which shall not constitute or require a waiver of any right of �C)�srr��:�' t.c� 1�����y 17amages or to declare or exercise rernedies for any Contractor Default ���rc����d�s��, r�hi�[� shall not be unreasonably withheld, Contractor shall implement such ��t��-r-��xi�� A��i�n Plan as approved. The submission of a schedule under this Section 3.2 shall not, without a Change Order, change any contractual guarantee dates. SECTION 3.3. Delavs Without limiting the obligations of Contractor set forth in Sections 3.2(b) and 3.�.���� �`�i�t���tc;�c��• �k��.l� ��r��T����tly ��e��il�y �rn��'r�.,° i�� ���iiir�� c�i�' ����f �c:�L�L�[ c��• �ratic�����.t�c� ���;��t tl�;�t. is c�cl��y'si��, c��° cc��al�i cl�:���� �c������l��i��r� �['t��c i°�x�ility i�� s��ccat°��f��� ���tl� tl��: �`�r���i�s�i C'c���7��M��icr�� D���. C'ca��lr��e.t�sr- ;�;l�rill ir�c�ic�.�i� ���� ��4.�c��tc:ci ����°��iGc�i� �z��c� c����r�i��t�c� �I��'��:i c�i�tl��: c��l���, �i���� ti�� action being taken to correct the problem and ������� u�� 5���` l���i f����� ����?1��� �� 1������1�� ���~ ���� appropriate Change Order for delays not ���z��:�� l�� C c���t�'��c�t����, (: c.���t�"��ct.«�. �l���l t�[�c, all �;�.�y�� reasonably available to Contractor to mitigt�tc: ��.�� in�������� ��� t4�� �y��n�r°4��� �'c������lc�ti��z� l���t�. 1 " � , � � � ' � .- , r ��,�,���.�. ����1� ���x� �"����'��z�;��,i•, fii� full compensation and consideration for Contractor's ������������ axacl ii.��c�l� a���'[���`i���t��� csl the Work and its other obligations hereunder, the iixed, turr�i:c.y f�.������ ��i��:� �'�����r����� �'�'���� ��i��1��� ����ly to adjustments by Change Order under the terms of ���i�; ���'e°�i���.��t.. �`c��itr`tsc;� I��°ic�� i�-�c:�G����� ��ll Work, including equipment, materials, `�'��� �:����..������� a����� <���� ���;�i.������������ ����� �°��� ������ �°�����d���� ����`��������������� t��;�� �� �:��°�������.�������� �� x �����������������������°����w��w� ���P��������w����°��� g���������� ��u.������- ��r����3�° �������L� ���������{������ ���� ���s����.��� ����`����������� ���. ���°�;°���.������_� ��� u��� ����� ���°���1������m� ���' �'�ti����� �;��������°���u����� � �����;.. ��������� ��'°�u���� ���*����� �;������� �.����1�� ������a�� ���� ����� ��� ���°�������,� ��T���� ������.,,���. �������� �.����������,,�� 26 EXHIBIT 3 . � ��- + �• . • . � � �- � � �-r r . ��' • .�� - - „ • , r; �' . � . -� . � • �- �- • -a �' � •; � , . �- � � . � -� -� �' • � ��' • " � ' � .�� � t � r' �.'' • � � � . �. � � , � (a) payments with respect to any Owner Taxes pursuant to Section 2.10; (b) reimbursements to Contractor pursuant to Section 5.3(c); (c) the costs of any termination or suspension pursuant to Article X; (d) any indemnity payments due to Contractor pursuant to Article XII; and (e} any other amounts due to Contractor under the terms of this Agreement. • � • ; ' ,(a) Subject to the terms of this Agreement, each month Owner shall make pragress payments to Contractor in accordance with the Milestone Payment Schedule set out in Exhibit G with respect to pro�;�-�s� �c�r���alct�� �r� ��cc��t'€.if���c:� wrtC� �t�� �����''1�'ty CPM Schedule in the prior month �sicl }���c���i�fy' si�rvc�i��c1 ��y C'���t'"��t.�'r` �� ���"���i. hereunder, subject to Owner's right t�� i•�,t��ir� ��y������� ���»``��4Y1�� ��� `�"��`�'����� �Y� �'� withhold amounts pursuant to Section �.�(���. 1��1 ���y�������� `������ ��� ������� ��� '�'r�n� transfer to a bank account of which dc�� ��c�ti�:� ���il k��zv�. ���,�;�� �iv�n t� ����i'��` ��Y Contractor. Payments as set out in the 1��iil��l��r�c� l���yir���lt ��:l��c���i� t:c��' '4�J���`[k �ar.��i��l'��' invoiced and encompassed within the ����e��;�°��^� ����c�ic�c: ��t��`��r.���,�� 4���1��i���1't tc� ��:�i�c��i 4.4 below shall be due and payable on il�� l���i cl�av ���' �1�� ������7��� ��� u'I'ic:l� `'���1� ��x'c��x"� s'' invoice was received; provided, howe�u��, ��a�a� ���r��.r'�; ��l�i��;��tic�t� tr� ����a��: ��<<�y»����� shall be extended on a day-for-day b�1�i� �a7s� �r�v 1��i1�:���� ��� �5��r���'������' �{� �����i���� ��� progress invoice on a timely basis in �ccc��'�:i��`��e �'ill'� ��°ck��►�a �-�• �i��c����`� ������� �� sent directly to the address of Owner s�.t f�ar•tl� ir� �� 4r�:1�; �J 11 1���t �c� i l�� ���t�'I��x<s1Y c�i'= �' Gty` of Denton Accounts Payable Departm�:���, r�vitl� ��c����� ic� ���,��tc��� �'C��r�i�Wi����l la.k��.ix�c �l the street and email address set forth in ��.c,tic��.l� V iI, l��vcai��:s ���L��t �1-���°ili�����y� r��c�rc:���� this Agreement and Owner's Purchase Order Number. (b) Payments to be made by Owner to Contractor shall be subject to withholding on the following basis: (i) Owner withholds monies otherwise due by way of a refund of any earlier overpayments by Owner not in dispute by Contractor; `1������ ������;������b��� ������ ����� ����������������:� ����a�°���s� ���� �,�t���.�x� ��������-������������ ������' �� �;�t�����t������� ����u��������������w•.,.�����������,� ����������������g ;���������° ���� °��� �����r� ��������w ���g�������.������b ����� ���������� �����'���-��u������� ��� ���a�°�������w���°�� ����k�� ���� ���a���� �������� �� �I"���� ���� �°�`������:���� � "������, ���s�i��� ���`�������� �������, �������.� ������:��~ ��� 1����� ����. ������ � �������.���� �Y°�a�� �°� ���i�T�� ��.�.����� a��������k���.,,�� 27 EXHIBIT 3 � l�- �, . �. � ,. � �, ,,- �t, r� � -� ��, .�-� • . �� ••' � � . • �. -� • � �' � -� .+. • �; , � � � ,� � , � • � � , - �-;'� - � � �, , r r- -� .*. • + .' � � . �� �'-�' �. ..- r � �' • -� � . . • � � . � � � • . !t; � � � �' -� -� � �- • r' . � � . �• , ,� � , ,�- �- � •- � . � • � - . � � . . � - , � � - , • � . - - . � - . � - - . , � �- + � � -� +��� .; � • . � r;� �-� � ' , r •, -:� � , �. • � � . • -� � � •; � - t; �' � • r, � • • . �, �, � - � � • `� 1 '� - � , �' � a � . , r w -� �• � � - ,. • .. � - � �. - • � . � �' � ♦ � � � • . .- • -� � . � � � � '- s •; • r •-r • ' . -. � ..' � � - � � � 1 �,, � -� -�.- � • �. • - . -� � �� - � • �' � ' - • • ,- - - . '', . ��- - � �. - � _� � _ � _ �, , . �, � � �' - � �. . •., � • '+ � • • . , � �, - � �, . -� -� • 1 � r ��- ' •, • ' . � ' � • ; , s , � +- � ,,�� - -•r • -. � • �. +. • � .. . �- - �-� • , �. � �. �. - � r, . • r �- � r r . + * , • � � • � � • � , � � - • - . � � � . � � � � �;� - � `.����� ���������� �.��� ���� ������������� �������,� ����` ��������� ����:���m�������,.��� ����.� �a ��.����"���������, �����������°�������r���������_�� ���*����������f �������°° �������� ����f�� ������ ������������� ���� ����������� ����:��� ��.���� �� ���:���������� ����;� ���� ���,��.��������� ��� �""���� �����_���������� �`��:���� ��������� ��������� ���������� ��������� �� ���� �������� ��� ������ �°�� ���������� ������� �T�.������ ������ ���,��������� 28 EXHIBIT 3 t `� . � � � �� - � • . - . •. � -., r' ', . • �� - � � � �" , -* . . -� �, - �� - � . ' . • �. . . .�� .�'_ � - , - �- • � I+ . � . • ' � �. � � . ' -� s � . � �- .. � + � . , � -� � �. � . �- •�� -� � 1 � �� ''� �i � t � 11 � 1' �I �� ' � �'+ + � s I� � .+. � ' • �'; � �-' � � " ''� 1 �. '# �' � . � �# '1 ' • 1 � �. '• ' � ' � . 1 � � ! � � � � ■' � \ � � . The final payment of the Contract Price set forth in the Payment Schedule in Exhfbit G shall be made only upon the accomplishment of the following: (a} Contractor shall complete all Work (other than any Work under Sections 6.1 and 6.2 to the extent the Warranty Period applicable thereto extends beyond the date of the final payment), including Punch List Work; and � � • � �- � • � • « , t � , . - r - • . � . � . , • • � .� - • , i � -� r . . � � • . � • . '� �- �- i � � • � .�� ,. , - . � - , - � #� � - • . � � . -. • .�-. � - -, . -� -�I • •' • � � . • . r.� t' � � �' -� , � -� -r � � + • •., .' • • - � • �- •; �- -� r �.. .� �, -, - • � • '-� .' � � -� + • . ,- -�, - � • . � ; - � �- .-- -� , . -• . - � c � ,. r , �� , � � � • � � -. - �- - -� � � �- � �. � �r • . . � ' � � r. � - � - , , � < � . � • �- .�- �• � � �' • , � • , � .- - � � • +' '- .�- � � , , �� • � ; -� � • �*- • �*'- • ,- -� �- � . � . � �. .. '� , � • • - .,, r - �. .- � � �; . � , - - � ' - •- - �; � . - � . � - �- . � - - � -* ' `�`��� ������.�������� � �� ,��� ��:����������.���� ���;���� ��£ ��������� ����"�������.���a� �����: �� ��������������� ��a�����������������������F�:� ���a���������t� ����:����,, ��������� ������° ������� ����������a:�� ��� ����������. ����`���������� A�� �����r������ ����� ���� �������������� �� "�°����� �:�����°�������� �`����� �w��������� �v�������� ��'�<���� ����� �� ������� ��'���;� �� ���� ����� ��� ���.�������� ������ �������°�.� �� �a�,° ����°���a�����,W 29 EXHIBIT 3 -� . • . �- '', � .+� -�. - . � •` r. • r- .�'- � • � � • '• ' � � -� . • t �- ,�- � ` � . • �, -r � • ' -� '' •, �' � � • � � . a � . �. ' � � ' . . � -. � , �' -� .� - • •' ''` • �- ��. -� � � + • i • � . � -� . �; . -. - �- '' � � .. � -., - . � � ` �. .�- � • . • � � � , - �; •�. -� � `� , r . . - � �- .r- r � , . • �. -r � - � - ' -� - � . � , , � ��. •� r' -� ' «� i '- . .+- �- -. -� r • �� - � � � - �•; � + ''• � . . + ' -� � , , � -r' • � �-� -� , � -� + � '- .*- • .�� .� - '- '� . + • � . � �� � .' • � -� �' � � •-� � . � � • -. � ''- . .'- � �. � � , � - ,.- • '' � . -� • �1', ♦ � � � � ,. � ; � • �- � • . • r- • •� �. � �- ` + � , r 1 c. . � � + • ' r, -� + ' r '• �. � •- ' • - �► � � . - � • r . � t - . � . � r . ` � � . - , a - . - � - . � r• � � � � - � r � '� � '• .� - . � .'' �- -. � ,� -� .�'- • � � � ' i' : ' • � ii,, :'� �, SECTION 4.8. Wire Transfer Instructions Owner shall make all payments due Contractor via wire transfer to Contractor's account as follows: C. : :. � . ; ., � • , : � �� � • � •. � r� '� 11 � '. . • •. . . � � � 1' � . �- •, �-, °�, �� ������������� ���� ����� �������������.� ��a��°��� ���� �������� ���:����n����� ����� �� �.���:�°���������� ���� �������„���������i�°�� �������°������� �����fa��° ������� ����° �������° ���������������i� ���.� ��������� ������������:��� ��� ���:����������;�� ���:�� ���� ���������.���� �f'��`"���� �.������ ��� �"���� �������� �������� ��:;������ �;��.� ��� ���������u ���.� ��� ��� ���� �� ����.�������� �"a����� �����:����� ������� ����������.�r°�� 30 EXHIBIT 3 � • • � - .,- . - � r • • � • � c . � � � • � � - � �. - , � • �. �. • � , --� _ �� • -- �-� . ���� . +� �' �' �- . � , �- ,� `� . . � '� �' _ �- �r -� r . .; �' � �- �- • !. � -� �- � , � � ', - 1� � , •- � �; �'' � � � �� �! � �. �, � � � � � �', •' r; � "� • � '!' � , �, � � � " f; • . . � . s' �,' •' � �' �'" .�• !' '� .; � �' -� � �" � �' � � �'�,, � � '� � • ��" � � ��'I• 1 � � � �" • �' � �' • 1 •' *, � . •' � �" (a) To the extent that Contractor notifies Owner, within twenty (20) days of Contractor becoming aware of the impact of the relevant circumstances, and demonstrates that a Change (as defined in Section 5.3(b) below} (i) adversely affects Contractor's (or its Subcontractor's) ability to perform the Work, (ii) increases the cost of the Work or its other obligations under this Agreement, or (iii) causes a delay in the Project Milestone Schedule, the Target Substantial Completion Date or the Contract Completion Date or adversely impacts Contractor's critical path schedule, Contractor shall be entitled to claim an equitable and appropriate adjustment to the Contract Price, Contract Completion Date and any other affected obligation under this Agreement pursuant to a Change Order. Within a reasonable period of time after the Notice required by this section, but in no event later than thirty (30) days after such Notice, Contractor sha11 provide Owner with the information and other documentation then known to Contractor substantiating such claim. Contractor shall periodically update Owner with additional information as it becomes available until the claim is resolved. Failure of Contractor to provide the initial Notice of such claim within such twenty (20) day period shall constitute a waiver of any effect of such claimed Change and the right to request a Change Order therefor. If any Change affects Contractor's ability to achieve Substantial Completion by the Contract Cornpletion Date, Contractor shall at Owner's request prepare a draft Change Order that, to the extent practical, does not adjust the Contract Completion Date, but compensates Contractor, as the case may be, for the effect of such Change by adjusting other milestones in the Project Milestone Schedule or other provisions of this Agreement pursuant to a Change Order. Adjustments to any price or scheduled date shall reflect only the reasonable and necessary impact of such Change. Within five (5) days of receipt of all such information fram Contractor, Owner and Contractor shall meet and, acting reasonably and in good faith, negotiate a mutually acceptable Change Order in accordance with the principles set forth herein. Contactor shall nat, and shall not be obligated ta proceed with, any changes or extra work until the �C" �� ���������,��� ���� �z��� ���������������� �����:��� ����� ��������i�� ���`�r°�������:�� ��;�� �� ���������a������� �.���������m�������4�������:���� �w������,������ ���i�� ������� �����;�� ��:�����_ �������������i� ���� �i���.������� ���:���r���������� ��� �.��������������i��� ����, ��w�o�������� ���"���a� ������������� �"�����, ��������� ��:������ ��:������� ���.� �� ��������° ���'.�;�:�� �:�.��� �� �� �����,��.��� �"����� �����a���� ����� ��,���������°�� 31 EXHIBIT 3 price of such change or extra work and its effect has been agreed upon in writing with Owner in a Change Order. Upon mutual app������tl c�1= �c��,4� �'r�����;� ��'���1'� ��-�l'�����('c�r �1���i1 �ii�3����t1� ���r�f������r i1���:. �3��a���e� �;�r�t������i�t��� hv ��icl�. C'1�;��a�c t)a-c��� u� ��cc��•d������ �aitl� th� �`�nir-��� I������������t�, C ��i�����i����r �;i���ll t�n�, �r.�����.r�cl, i�� ��1���1� ��a� in �a�rt, ����f`t�����ax��e c��`�.i��: �.ir�cii����,�i��t'�U�r�•�� c�ur•i��� �zr�y �i�����i� c�r��i t��a� �c;c��re: c�f't�°�c'�vc��•i� c��• �����=i��� tl�� �•e��ic� ��r��� ��c�c�ti�t%nr� ��f� ��zay y�x�c��������3 C'lr��.���;s� t�3��1�:�� ��r�i�,�s cli«:�;t�c� �r� ��°iti��� t€a �c� �n l�y f��z����, �r�c� il` �c� ciir�c�i��, �"�t��i°���ic��• �i��il �fc� :�c� �rit���ut �v��iuir�� �iiy ��i�,�3t vaiil� G•��}���t ��a ��,�cl� �l��n�� ��� �li��uted item. ��,�� ����l��j.�����-�i. ���;��� ��; ��t�t4c�ci i�� accordance with and subject to the other �rc�vi;��c���� a�[` tlli� S�.�t�c�'� tc� ���� �.���.tit��i���. ��i�� ����p������-��i:e ����oj�G�it��a�.�7t t�� tl�� �'�s�t�w���t I'����c�. C;c�����•��c,t �'.c���7��lc�tic��� l��t� �a���� ���y c�tl���• ���'��cjl�� ��k�li��►�i�i� �r�z�cl�r- il�i� ��t°�er�����t. ���zr��r<i�-�i tc� �4 C"4���i��� ��°d�a• i�� �.���v ��i'il�� i�a�lc�eui��� �vc�i�t�i {1 � ���rrr��t1�cii�•��t��� c�la�zi-��„c�. (�� tl�� �c���i-��s�� ��9` �» �v�r�G r�l� tsc�i•�� ������r�:� ��) ��3� ���.t +�r �ri-��i��ic�n ��� ��a��� �r� �������7 c��� �i� cal�yi���ti����:, �a�i��e.�a il�i� 1��se°e,��ts�L�i �t�������l�n�; �az �t�i c��- c������;�i����s s��1� C�������:�6 �;���s��l ��y� ����r��r's ���ntr�ctcsi-�; �st1��;�� �1���� ���rztr��i��- ���• �s�y ;���k���4���t��aa;ic����9 ��� �Gz� Cl�<����cs I�� i����r; ��,� �r� i��c���i��rr��r�t �,"��s�tra�°ica�° C'z�����c� 1::x��a��.�4��� ��,vc:i1�; (�f�� �.ii�`i�.i°ii��, �it� �����c�iti��j�� ui��l�� ����i€��� �.�; ���c! �7� ��� ���l��,�tl�vi�� ��ac�vid�� i�� i1�7� ���-��:,������t {c�i�1� ��1 the foregoing being a"Change" for purposes of this Contract). {c�.� C)�r�ti�aA �r���� i����ti�k� �� �l�t�i��,c; l�� £kcivi;�i���; C,'��Z�tr����:tc�r it� �z�iti���; �i�t1�c �1�����c:: � _ 1��;�i�.��;c� ��� t��: �z�������~y� �a� c��si�•aa%Ic, ��s �ca���� c�;� ��r•��t�c:�l���, �'c��it�����t�r �lr{�ll �re�����-� ��«c� [c���v��arci tcr [�ir�rr«�.i� � �c��i c:�tiir�,�i�: a��� �� s�4��,c�G�l�; ir���?r��t �;�1� kV�� �������.��, 'wl���ki :�1���1� ii��i���lc, ����y ;:�����1it;�t3�� �xci^����ti���r�� tc� lh� � ��1��:-�t�:t P��i�.�, � c�nir��ci �"�������l�^.i��aa� I�ai�; �a�c� U���� �:fic��.t ��i3 C�c���ir;��t��7°'� �a�i'si�ty tc, cc�i���71y �vvitl� ��a�y c�i` �t� c�hli�:flii��i:� u���l�:t� (i�i� ���A�c;1r����t, ����1�.��i��� r�a��r���ul���:�. �'c�r���-���:tcsa• ��al� �l�ca c�c�����ci�i• ����y }�c�l���ia��� �c�,jx��ta�����t� �ca t���: `�'��ri� a�r� t1�� 1't°����:�t i'�il�.st��r�c �cl��c�ulc tl��t �����y ��� ur�cf�.rt����r� tc' i��iti��ri� tl��; �ft�;c°��; c�1� �I�� �1�������, (:'���t�•������r�° �����ll ��� �-��i��t�u����.cl fs��- t.l�� r�.����i���l.�l�; cc���� �r�c:�,�rr.•eci tc� l��•��-a��r°� �c�y c�i�r������. ������x�i• �l��z�� �c���i;�c �'c���t���i���• ��� ��i�i�t� ���i�� �����•���f�! c�a� c��������rc-rv�il r�if't1�c� e:������,�;. C�'{:�w��c��- �i���-ar�c���.�; t��� cl��ii���:, ["c�s�tr;�c:�c�i° �����I ����°Ii��sr7� th� �c��•3� �,1� c���r��,�c1q (d) With respect to any such Change Order to adjust the �'�:1�������t �'������������� Date, the Parties agree that such adjustment shall preserve the pe�-ic�c� �iM ti����:, l��.trv�:,c�� Contractor's 66Target Substantial Completion Date" ��vhich date :����si1 i��, i�i�.��l�i:���� ii� the Project Milestone Schedule and updated from time to time as part of the Facility CPM Schedule to be provided by Contractor pursuant to Section 3.2) and the Contract Completion Date that would have existed absent the event giving rise to the Change Order other than any portion of such period of time between Contractar's "Target Substantial Completion Date" and the Contract Completion Date that is solely "�`���� ������������ ����� ����� ������������ ���������� ������ �.�������� ����"������:����� �l�s�,� �� �������:�������� �,������������1�������������� �������°�������� �����`�� ��a����� ������ c������ ���������������� ������ ����:�:������ �����:��s������.r� �� �����u�����:;� °������ ���� �..�������������� �� "� �����_ ��������������. �.������ ���������� �,�������� ���<��.��� ��w��1��.� ����:������ ��,��� �:�� ���� ����� ��� ����Y����.��a��� ������� ������°��,� .. ������� ����.��������Y�� 32 EXHIBIT 3 � ,.� - � � � • , - �,- • . - r •� �. ;•, �_ � � . - � r �- •� a • �' � ' ' If in connection with this Article V either Owner or Contractor disputes the existence, extent, validity of a Change or is unable to reach agreement on the terms of any Change in the Work, including, but not limited to, �.��-� �i��j�:�trt��cr�t ir� ilY� �xcj�xii•E��t ��r•ic;� ��r C."c���i�•a�i. Completion Date, then either Party may notily� il�� ��il�r�,r {'�rt� �1�s�ai ui cf�;�irc�� ic� �r��.e:i �i��l �•��cj�v� the dispute in accordance with Article . l f' tl�a� c:l i w����t�.�i ��c-�t'tic�r�► r�[' ���c:. ��t c�1�e��c,� �h������° t�n ���c� Contract Price is less than $500,000, Contractc��• ;�I���11 ����c�c��c��i �iti� t���: "V�'�����4 �c�;��.�`�l�cc� it� tl�� disputed Change Order pendii�� r����l��lic�1� r��`i[�u cii�������. �� ����k� ��i���zt�� �ac����i��« i� ����aa4 i�� c�r� greater than $500,000, Contr��ui��r �1���11 y��Ac�c�����i ��ii�� i.l��; ��:��;t�ci���cl �rcrr�l: �a�� �i t����� ���c� ������l�.i�l� basis which time and materi�l�; ���sy��z���t� �c� f."��t�t�'��t.��l' shall be subject to adjustment upon the resolution of the dispute. Under no circui���i������s, however, shall Contractor delay its performance of the Work because of an inability to agree on the terms of a Change Order. �;�� ��������-�����1- �,��i•�-������ ��) i� +�rNll ��� all times be fully qualified and capable of 1���•lc�r���ir�� �1�� 1�J��i•l. tr� c�c����}�lt�i� t��� l���uili�v ��c.�c���c�ir�� ��� ti�c:, ter��� c��`this Agreement, �ii� it �viS1 }���-1'c����n t��� �V��z•l� ���il���a tl����� �.1�� }�c�i��i�ara� c�i't1�� °�'`��rl� cl���ribed in Section �b��, ii� �c�:��i°������€�� �'iti� 1'���E�i���t ��tilx�y ��•�sciic�. ����1 iN� r����.�rel�t��c ���tl� Applicable Law, �i����i��il r� ����1 �Y� �tlz�.�-��ais� ;����.�ifi�c:l iz� il�i� ���°�:��r��,��t, �:r���I i;����� ����:�� 1�r'���-� s4�all be free of Liens or defects in title and free froi�� a��}�� �l�f�:.c�� i�� uF��s�i���3�:7���1�i�� ����°�����ax���i by Contractor and its Subcontractors, and (iii) �1�c� r��f:���� i���� �u��� ��:�ail��t����t. �r'c�v�rl�c� �Kaader this Agreement shall be new, unused, undamaged and of good quality when installed, and otherwise consistent and otherwise conform with and in compliance with Exhibit A and as otherwise contemplated by this ��x�����c�nt� ��`+�'����t�'�t�t.��►' L��il� ic� j�1�c,t 1,I�� standards set forth inthis Section and Own�:r �iv��:� �`c���lr•a�;����� ��c�ti.c,c: ��[�����y� :���c��� f'��iiair'� or defect as promptly as practicable after di�i���vu�'y ���'s���171��r1t.,�'�:, l��rt G�a 1��� �v�ll� lat�z` than the expiration of the Warranty Period9 �`c���ir��lca�° ����f�� r�r���d� �u�1� ��1 ����.►�c:� �� that such Work conforms to those standards. Contractor's costs for such remedy shall be borne solely by Contractor. Contr���t�a���*� c����i�;�tr��i� ��> ����"i'�;�t c��t���� tix��cl deficiencies shall include labor, parts, tr�r��������t�ii�a��, in��ir��z���„ F���e>x°y �'�'i��i�" �r'�� testing, dismantling, re-erecting, re-testin� ���Ycl �c�a��ril�i���c�������;. ��i'�iil7�t����i��� tl�� foregoing, Contractor makes no warr���t� v�i�� r�.����;c� ��� tl�� C���vr�c�r��������l���i Equipment. "������ ���:a������x�� ����a� x����' a������������°���� d����������� ���� ��������� ����"������������ ���£�� ��� �����������i�.�� �>���r��r������g��.�����c����:������� ���°�����A�������'� ; �����������° ��� ��� ��������° �������.�� ������������di�� ���� �i��������� �. � ����������i��� i�� �������~�������.� ������ ���� ������,�������� ���'�"���� �������°���a��u������ � �����.� ���:������ ��������� ��`�w���, ��;���:��� �������° ���ro�`���� ���� �� � ���°���������� ������� �°�������;�� �������� �����;.�������� 33 EXHIBIT 3 (b} Contractor shall, for the protection of Owner, use commercially reasonable efforts to obtain from all 5ubcontractors from which Contractar procures machinery, equipment or materials or Work, warranties and guarantees with respect to such machinery, equipment, materials or Work consistent with the foregoing, which shall be made available to Owner to the full extent of the terms thereof; provided, however, that the inability of Contractor to obtain s���l� vv�a�r`�i�lti�� ���° ��iar���tt�.c.� �l��ll �3r�i 1irz�i� �"' reduce Contractor's obligations under �l�i� �1�N'���������• [.J1���:�:� �1.1���'�"r�� ���:°�l�r��� 'i� the Contract Documents or as otherwise ��r��cl ��y �)wn�r'. ���� ����i�:�'«l� ���� ��1L'��������� *;c� �r�c,�c��1°�ci 1�y �'�a��t�•���cx�� �;1��►11 �a� ����v, ���c3 ��c���� r�����pl����<�r��l�i�� �����1 €���te�-i��l �;fl���� la� c�C ��,�-,� ��������ly�, �c�ui����l���t ���7�! r����c�i��l which are procured by Contractor, but fail to ,�,��������, ,,�1��� ���� ���,���ri�����°�����;; c��` l��� Contract Documents, shall be removed and �;�,��I����,cl wit�� �.c����}�l�in�; e�����E�3`����1� ������ material. However, if the progress of Work is ������ ��� �-�;����, ���cl� a•e���c�v��l �r7���r����,ti���, Owner shall have the right to accept equipment or material and reduce the Contract Price by an amount equivalent to any recovery from the relevant Subcontractor for the difference in its value and the value of complying equipment t'7° G�}��t���i��l. C"����t�•�i�t���` �1��11 ,��e����°��� ��ac��� factory or field tests as are necessary tc� ��.ri�� thal ec���i������:.��t r�t�€�:��� ��� �-�c4�iit-�:«��,�sls of the Contract Documents. Contractor �l��l l��r���r�i�lc t7ur����' ��itl� �'����caG��a1�3�. ��iali�c c�i` such tests and Owner shall be permitted to witness such tests. All ���l��c�����'�zc:t���'�', ��7��r���1'����E���``�', ���$�� ���?�1����r��' warranties and guaranties, express or iir����i�;��, e��p��ti��� ���� ��i�9�t cy�� t1��: �,��� ��a�i ;t��� materials used therein shall be deemed ���it�i��ac��� l�y C`c���t�•�c�c-�r i`���` tl�� l��i��:'I�t ��i. �3��t�c�r' without the necessity of separate transi:�N° c��° ���i�,������i�t �.I-��r���[', �'c�r�t�"��i���e �1���11 ������;si such warranties and guaranties to Ow����• ��1���1� �k�c �:t��l car� t��� `�h''��r����r�t.y� �'�.�'sc'cl. (c) All Work repaired or replaced during the Warranty Period shall be rewarranted for an additional year from the date of completion of the repair or replacement; provided, however, in all cases the Warranty Period shall expire two (2) years following Substantial Completion. (d} If requested by Owner, Contracto�� will t��:�i�t (-�a�'il�:�" i�� ��t7������il�� and administering any other warranties with respect t�s ����:, t�rFv���r•�-`�������lic��i 1'�ctu��a���uz�t and such request shall be treated as an Owner-directuci c,i��r��� ����ci�:r ��'ti� �c �'• • , . • , � �- � Contractor warrants it will cause to be performed the engineering and design Services, as rnore particularly described in Exhibit A in accordance with Prudent Utility Practice �d ���� ����.���� �;�;i���,���-�;� �r` ja��c�����i�i���l ���a�� and diligence normally practiced by leading engi���s��-�rr� fi�'����; i�l ������c������i��� ��.�°v���� c7�`;i ;�in�ilar nature in the United States of America with respc�� tc� ���•c���*�t� �;ir-���l�r• tc� tk��, t°��c:��i�y and otherwise in coi-���a�ia��c�c: vvi�l� �+,:�l�i���t: A and the Work will be free from errors or omissions in engineering and c[������ (�I�� " csi��� '�arranty99) If within the Warranty Period it is shown that there is an error ir� tl�� I;:���i���.���ii��, ��rvices or a ������ �������� ���� ����� ������� �����,��� ������r���� �������w��� �m���;�° �;,���������� ����'������������� ������� �� �^������� ����� �:����tr��t���������*��3������� �°�: �'��°�����°������� � ����.������; p;�������� ������ �•�a ���a���� �°,������a4�����°,�� ���� ����r������ ����,��° �����a� in ����a���°�.������°�' �����r� ���� �����a���������� ���"`�;_,�:���� �;����r������r�r��°��� �'c����,; �������� ���.��'�, ����� �.��� :���� � 1�� ���t�:�l�� �����;���p �� � ��� �� ����������:� �"��a�� ���������°��� � . �������, ����;���,���t��°� 34 EXHIBIT 3 breach of the Design Warranty as a result of a failure of Contractor or Contractor's engineering Subcontractor to meet those standards and Owner has notified Contractor in writing of any such �:rrc��- ��i���iK� tl�i�-ty (:�C�} d�.��� ��i`tcr� �i�c; ���i�•�ii�i� c�i` t����t �-��rie��[a �'aai�t�����tc�a- ���•c�n�l���� �1���1� i��vc��ti�;�rt� ����� ��:.tcr•c��w:r�� t.i��; c���c�;�c: ��i" tl�� ��ii�:i��7�y ���A �e.[e��. �arc�r����t1y� c.��� �-�r:i c��• c:�a�rs� t�� ��c ccr�•,r�:c;�c� ������ ����ic.i�t�1: cics��;�i t���xi �°c�;��i�1ut! tl��ce�i�c����. ��i°c�����at�yr i����c- ���•�a�_�;tecl 1�r���l ��;�-�%uil[ c��ry��vi���s. i�a��a3�c���1�1�, �a�� �ar•������tl� �-�,����u� t��� ������� �� l�� r�}�I����� f��� ����z���i���:�lt a��ci ��7�t�ri��l� ��;����i��t��� �rzil� t��� c��i'�c �i�vc� cj��i�;x� ���1ci ��c:���rf���ai�� �ll i�i1���• �rc�rl� r���.��,���.��r �c> c;�z�-e tk��:1��°�:��cl� c�l� the Design Warranty. All costs incurred by Contractor in performing such corrective services shall be borne solely by Contractor. . �► , � r- � , • ' (a) All VVork shall be subject to reasonable inspection by Owner, or its representatives or consultants, at all times to determine whether or not the Work conforms to the Contract Documents. C'�����Nfactc��• �17��L1 ������icl� ���"���:�" {t�f���� ��� ���� Work wherever located. Owner may vi�it a7�� i�a:���c:e! il��. `�'�-��•I4, c��` c�.��� ��`�r� il���A�c�i; �rti any time during normal business hc���i•s, �i�a�� "'���t���.���w° :�l��il l��wc�vi��u �4i��: �i�� ��t°�z���' access for inspection of the Work. ����z�c:�1� f���a� 4�� �?1������t �i �z��� i�,�t. I.�� ��c�, ��c�•[c��"��a��l'. Contractor shall promptly furnish all re��:�c����l�l� t���.�ls��c��, 4��lacar�, ����cl �`��f�tc�'���-i� c����.���t''Y for the safe and convenient inspection and testing that rnay be required by Owner. All inspections and tests by Owner shall be performed in such rnanner as not to unnecessarily interfere, hinder or delay the Work. All such tests and inspections shall not relieve Contractor of its obligations. (b) If Contractor fails to provide Owner with reasonable opportunity to inspect the Work, and if in the opinion of Owner it is necessary to uncover or dismantle such Work for such inspection, then Contractor shall uncover, dismantle and recover the Work as necessary for such inspection. if ��k�l� is7����c.tic�i� �•�.�j���l� et cl�l�;�i ���- c��#it�i����y inthe Work, Contractor's costofunco�c;�•ii��, �ii;������i�tlii�� ���-��i r��:t�v�,r'rrt� ����: `��'`<�i�l� �1����� be borne solely by Contractor. If sucl� i�-s��c�c;tf�z� �1�.��:� ���� r'�:v���rl s�. c��=���� �'�` ���'�����="�`5' in the Work, Contractor shall be enti���i� t,�°a �� �:'������,� �3�'c��l' ��l�r�����i� t�� i��� ���'���s c��` Section 5.3(c) for the impact to Cont����i���- ���' �,�����v���ik���„ c�i�������liia�� ����� ��������°�k�� the Work and to the extent of any �.9'fu�� ���� �`��'�������<�i''� ��������Y ��� �����31'�7' ��''�t�� ��`� obligations under this Agreement. (c) Where Owner has a reasonable belief that there is a defect or deficiency, �;��.�1 tl�e��r�'l� �"c���t����c�l���• ����;� �ivu�� C�w��L�' �•�:�z���nable opportunity ta inspect the Work ����s:4 (�w���r �u�°�������c,��tly r•�c��i��•c� ��r��:����'��#G��, having made no comment during the ��.&�a���L ��������;���,�� ������i����;���� �1���� ��c��c;rii��.l�ss uncover, dismantle and recover the V+1c��i� ��� r����.��t.�r�� 9��r a���t� �r���aection. lI`����4� �������'�lic��� r�:��c:�l� �i defect or deficiency inthe Work, Contractor's cost ofuncov�.r.i���„ c����������t�ii7� �:�1��� r'�c���vering the Work shall be borne solely by Contractor. If such ir�����;�,tic���. �.����� ����t r"�v��7.1 4� defect or deficiency �' �� ������������� a����� �����- ����������s����°��t�M ��;����`�°��m ������ �:��������s;� ���.�u�������������� ������ �� �,�,���������'��i���� �� ��rv������-��E��,:������� �����������w��u�w��, ����������° ��������� �o�������� �������� �������,���������� ��� �z�����,��� i�����a�����i��a� ��� tt����������������°��� �� ���� ����� ���•����°��������y ����`°� �°���� � ������v�������.��� � "���.���� ����������� ���s� � �, ����� ����, �� ��� �� �z����'��r� ������ ���, ������ ���� �� ���a���:���� ����� r��,���i���� ��������. �����.������°�. � EXHIBIT 3 � � � �- - '-� • . . �' • •" � . , � �'' � � • ;. • � ' • � � �' ' ` � . + . � � " • . c • � ,; �' � � .• ' r � r �� �. � �" '''" ti � ��, •; � � �-' If Contractor does not take action to correct any defects or deficiencies for which it is responsible under the Contract Documents within a reasonable time after receipt of Owner's written notice thereof, Owner may, as its sole option, (a} take such corrective action itself ar ti���cp����i c.c���tk����t wit�i �tl��i-s i:iz� ���i.s �a�` �v'l�i�:�� shall be reimbursed by Contractor; (b) deduct an ����i������� ����������� ��•����� ����; �'��a�����e�: I��•�c� ���a�•���ant to a Change Order for defects or deficiencies ��� ���� �,,���r•�, ��-� y��u �f° c��l-��v�ti1-�� �a���l� i1��i� w�zs not performed in accordance with the Contract Documents; or (c} exercise any other remedy available under this Agreement, including requiring Contractor to perform the corrective action if the relief under sub-clause (a) or (b) is not practicable. * �' � . • The obligations contt�ir���� i�� �l�i� �.�•ti��� '�''� govern and supersede any other terrns in this Agreement which address w�xz•r•�a�ti�;;�, �;��.a'��1�i��.�, or the quality of the Work and are Contractor's sole warranty and guar�tii��e:�: ��l�li�,��ions and Owner's exclusive remedies with respect to defects and deiiciencies in the Work. Contractor makes no other warranties or guarantees, �����.�;�� c��• i�����l��c(, aa��.i����r��, [�ut ��cat lil��it��� t��, warranties of inerchantability and fitness for a ����•i:ic.����r ���a•�;a�-��� �vl���.l� ��i�� �.���'�.`<��4y t�►��l�ir����� and waived. Contractor shall have no warranty ���,lr�,������°� ��� ����iliiy t:���� ���'���t�; ix� �tl�� ����-l� �����u� l��t normal wear and tear, Owner's improper c�j��:l•€�t�c��i c��• r�1rs���i�i��t��� c��'ti�e l�s��ilit�r, �s_1���`��ti���� ����i are not in compliance with the guidelines ��1�t:1�� c�iNi�i��t�l �.��.ii�������il r������t�l<��t�;��r�c�•, �r�cl ��i�� event of Force Majeure. • .. (a} Contractor shall include, as a term of each Subcontract, a warranty that all materials and equipment furnished by its Subcontractors that become part of the Facility or are purchased by Contractor for (��u���:�• F��4� �1�� s��������ti���, ��'aaii�tc;�7������ c"' r'e�'�xr.�` thereof shall be legally and benefici��k�y ���z�c�ci l�y ���� C7��a���" ll�;,c� i�'����� �°�'��' �sr��� ��'�� any defects in title whatsaever, �vit��c���� i°�.��r�� ic� ��i�y� �.�c���r��ci��i� c��*i17� �'�i��r���aty l'�r�ic�r.i. Title to all such materials and �,,c�����.�����:��i �k���ll ����s t�� (��f�iLr �����aY c:iuliv�r•�yr �� ���c, ��t�:. Notwithstanding passage of title, Cor�%�����t���° �l�a�� r°c�t�t��� ����� ������:, ���;;lc�cly° ��t��l �����1r•�1 of, and retain risk of loss for, such materials and equipment and shall exercise due care with respect thereto in accordance with Section 2.13. (b) In order to protect Owner's interest in all rnaterials and equipment with respect to which title has passed to Owner but which remain in the possession of a third party, Contractor shall follow the directions of Owner with respect to the action to be ������ ��������������� ������ :.���� �������k������i���� ������°��,�.�� ��` ����t������ ����'���������������� tl��;��; �� ��:�a����������� �����������r��� ����,..4�������������°,, �a�������°���������°4 �������'���� �������� �������° ��������� �����������������e�� ���a� ��r�� ����1 a���'��� ����f�ar�� ��� ��������-��a����:�� �w������ ���� ���ya:�� ��h�ut��; ��f"'� ���� �:.�����k�°���������� �'������q ����;,���t� ���.���� .. ���'������ �������:� �.��������rr ��;������� ���.� �����.�' �° ���°�������� �x���� x°��������� ����;. �i�,�°Z���������� 36 EXHIBIT 3 taken by �`c���lr°��.t�r ��� �x�ai��tain C)���z�.1�":� �I�a�• i�tf�. �i�� tc� ��r��.�;ct ���s���• ���=�i���t c,l�i��� by other ���a-�i�� euitt� r.�c����:� the�•utcr� �i���l tl-�� �c��t� 's1�c�x.����•��1 ���_ �Cc�r�����c�t�i ir.7 �:�:ari��� ���� defect in �itl� �li�1i t�c lryc��•��c, solc3y+ 1�� C'cat�ir•��t��i�, ��l�c�vi�ec�, 1���w�ver, �.'������-��c�tc�sr� :;%#��� ��. �1��itl�c� i� �� �'h�x°r�,c C)�•c��,�k ���i��tia����t tc� if�� t�;����is c�i` ���t��x�� �.�{�� fc�t° �ai�� cc���� i��L�i�•���c� [�y+ C,°����trae.t�s° �� tl�� �ir��ti��� ��1; i)�a���.rm t� �:���crlc�ci �3�v���r• � ��iic�, i���:l���li���, ��ar' c;��ma����l�°, tl�c l��ir�� cal��i�7ai��;i����; tit���.r�������. ��� c��� ��,�� ��; �}�,�a�;�t ����� �11 ��-�ounts due Contractor pursuant to this ���,������,��� ��������.�x,����r. �,��t��� ������ �� ��uti��, not establish, and shall not allow its ��.���.������� �������; ��� ��r��;c����.����,�,tica�� t� ����intain, any contractar's or laborer's Lien on t4�� "�''��,�°tc c�i� ti�� ����°.il�t� c��J �r�y ����r� tl���•c�c��`. ���� �,������.€������. ���t��� �-��3� �}�� ��- ����-���� any Liens on the Work or the Facility �,���,��.���� �-y��,1���.}� ���,��,1. ��.������ �,�����;����g ���-c��i�ed, however, that this clause shall not ���•c�i�ik�it {:`��t�l�°y���c�sE� (i�ras�7 t<�ici��� sxt7y ���tit��� �ll���vc�c� ��������� ����°�li���t�l� E.��vv ic� ��.�c�r��.: ��Y�c��«7t.� �1���; ii•c���� [7�����;r i�ncic�ry t4zis ���°c.�t���.�7t. �:;t�i1i�•4�c;tc��• �����1! [�Iluw ���c ��zr��tic�z�� �al �}�v���:�k �it� c�������� lc� il�� ��tic�c� ��� 1��. i<°�1��t� ��� �'���Zi1•����c�� �-�.�;�r�ii�� ����� in��l��z��i��' ���• �����i�ri�l����x�'� �..i�,��� ����i�l��� 1'r°E���� ilz�. �JV��i-1� ���c� ��c���t�°��,tcp� ������1, ii`c��•���a•c�� I�y ���vra� �-, ��� ���t�i� ��� �°��•�cl���i �i��i���r-�� ��r lil� �� 1����r! i�� lic°,�� ��(� ��r�y i��ets iil�c� 4��f ���sy `���k���ti�i�•��t��r ���,��i��:�t t��� ���i�;i[it�r �,�x�e.€� c�i� � �1;���ii� I���• ���y���sc�3� �r� �:c���i�uc�4����Y r�'rtl� il��. Wc��°I� ��ai•€av"r�i�^c� (:�����;7- i� i��� �:ca��°���1�4��ac;� �,+i��� �i�; �a��������Yi �l-ali���ti��€�� �.i��c��.� ik��� ,��;a°��r,�����i). a��� [%� ���;t� is���j�•ixc� �,�r �'t���t�•s�����r• ii� ;�ca �Ic�i���; i�c; l�c�r��-�� �,c�l�ly� lay Contractor. (e} Contractor shall provide prompt notice to Owner of any Lien of which it receives notice. (f} In the event Contractor I"�.il� t�} ������1��1`�� ���_ �������� �����V `����' '`'����� encumbrance within a reasonable peri��c! ���` c�t�i��°�x�� ���`��`�r��� ��'�'�`����� �'`'`���� `�`��`'�������� ����s,��#�ail��� c�r�:���:���ii� ��it� z���$°�i ic� �s�jy �r.s��� l.�ci� G�ri�i��� ��� ra�:����;�� nft���'a'�'��i�4� t�r tl�� f'<a�ili�y, C:D�r���r �t��ll 1�����. ���e ��i�l�[ tc� clis�.li�:���� ll��. ��zj��c ��l�ci �_'����ir•�ac�tcar ��i�}�i r�i��l������� t.}�v��c.r �i��� 1;h� c����� i���;��t���c� ic� c�k.�t��:i��s s���l� discharge. �E, � � ; � •�� 1 ���� I SECTION 7.1. Owner's Rebresentative � ,��� • � + � � , 1 ''� '� __-. Name: Jim ����ri���r _ _._ __ ___ — . _ .._ — . , ., _ Address: , Denton 1�3 �.�r�i���l Electric ��" �� ����������� ��� ���;�� ������� ����� �����;������ �°��� ��ar��.��i� ��������������� � �� ��B ������.��������� � � ��` � �� �� �� ����� � � � �� � � � � � � �� � ���� ��ak����n•��u.����h�������.��°���������y � . � ��� �� ���������� $a����� e����= �������� �°����.� ����z�� ����� ������ ������� ���������� n��� ���.��°�d����°�� ��°����� ����� ��� ���=�u���3���� �� °�`����w ��a� _������a������� �. ������ � ��.���� �������:�� ��4;�,������ ��'�.� ��� �����rr���° �������, 4����.� ������F° ���^ ����:�������� �`�°����� ���� ��ry���. .������ ����°�������°�� 37 EXHIBIT 3 � • �- "�.t r 1 E-mail � ��I�. r����y i��t� � �cz.?�l��t��.��c�w� � .com �.��. ��� Phone. 940-349-7182 __— �.,� u. .. F�,��,�r ���,x��l.�� �.��������,��������i� �L��a�� 1�� �t���kxc��°i:���1 ic� act on behalf of Owner, with whom Contractar r���y� �.c�r�s�lt at �ll �•��z�c�i�,��h�e; tix���s, ��r3�1 °w1����� �r��#�����ii�����, r�c��.�c�i�, cr���� �i������rt� sl��ll [a�. ��ii�cli�a�; c���c�w1 �C�v�=r�c�c� �� tca <�11 ����ll�:�°� ���r�:�i��i��� t�r i.13i� �'1�a-c�����c;��t �r�� i��� l�c�-�c�������a��cc c�I' tla� 1��i�°iz�� ����:°��ir����r, �it��c���l iir����ii�� 11�� �`c���c��«iz��, il�� ���s��c����i%ilit:��� ��1`(�r�r����°"� E��.�ar�s�i���tiv� shall encompass but not be limited t�� �l� ����G������� c�f: i���truct�t��1�� (��Y ����'����� ���� �i�����1i���� e����° Contractor's Work, (3) rejection of :��t���cc�iili�r��a��i3�� Wc��•i., {�1�� �.��:i�in���ii���.ie�i� ���"�vl���� tl��; �c�r� i� complete, (5} approval of milestone payments, ����c� {f�) ���;���«w431 c��:' ��rta�I� Cyl��t��;G C�rAc��.°�� �� s�`� forth in Article V 66Changes in the Work". All �€���-�r�ur�i�.�iirir�� li•����� C',����iGi���ita�• lc� (:�e�v�-�c�° ��i�ai� be directed to Owner's Representative and all communications from Owner to Contractor shall be �iii-�����1 fi•����� the Ownei3'� 12.�.�Sr�����t�iti�r�;• Owner may appoint another person as Owner's �"��,1������-������£� at any ii�a�� [�y w�°il1c�� notice to Contractor from the current Owner's {�..���Nn���������iv�. Only the {�wr���r'� �������c����itative may provide binding direction to the Contractor. SECTION 7.2. Contractor's Px�o'ect Mana�er Contractor shall appoint, subject t� �4t�. �.�����-c�r��� ��l` t)v�'t���' (v�`l�i�l� 54����� G�c�i l'� withheld unreasonably) an individual as its "`Pa•��j�c;� �"l��t����„��°" in �;11���`�� ��� �'c���►t�'�����C`�� 1��.��i�����������° ����c1 �������i��l� �af ����, Work. C�c�r�����.�c�t��r �;l��ill ���•a��ric�� �r��r���- �vatl� Ch� F��•��j��t c M�ta:���,�rm'� ac�G�r°���;, u-j���if �c1�i�-c���, telephone ii��r���a��a, c�ll ��i��.ar�c ��t���7l��s• �����i I`�c�i�a�i�� iz��x�����r°. ,�L4i i��s��•���;ti���, �•�c�t.��;�t;� C�t- �"��G�r��e Orders �3�i� a4i a�t17��• ��ti1�-���tLa�li��xt���r�� ii°��G�� C)�r�cr ��s ���� Contractor shall be directed to the Project Manager. SECTION 7.3. Notices Except as expressly provided otherwise herein, any formal notice, dernand, or �����.���t }��'��id�ci 1€�s- iz� tLi�, �:'ca��tt�•�t�t ��o������r�i��:� �i���ll l�� iG� writing and shall be effective upon c��liv�ixy �c.lc�.�a°��G��c� t�•�r1�����i��ic�» �€� il��; e-rr�ail �����ir��;�; ������iied above may be done in addition to ��,� �,�,��.,� ��• �i �������1. ������� �'������;� �1' No�,c��;:� i�•����� f.)�via�r 1:�� Contractor shall also be provided to Contractor's Project Manager". Each Party shall provide the other Party with notice when its respective address, contact person, telephone number, e-mail address, or facsimile number changes to which notices are to be sent. �"���; ������������� ����� ����� ������.�;�������� �:����°��;�� �����t ������� ��������������� ����� �� �����a��������� ��:� ��������1������������� ��������ta���;�r��=� ������� �a������ ������� ������ �������������� ���� ����.������ �����w�������� ��°� ,�.��°;�:���������� ���� � � ��.,.��������� ��� �'���� ������°������� �:;���.��� ��������� ���,W����� ���<����� ���,� ��� ������� ���,,,�3�;�� ���� �����' ���� ���������� �"����� �s�������� �������� ������������zv � EXHIBIT 3 • +' � , - � � - �' - . � � � � � • - �� r- - • ,.- . � � . •; �' -- - '. � � . -• - - . - � . '. -� � .,; •, -• �. � • s- '�� �. � '• � �� : ► SITE SECTION 8.1. Site Investi a� tion The Site characteristics are descrrbed in Exhibit A. Contractor represents and warrants that it knows and has carefully reviewed and taken account of all visible and disclosed conditions at the Site, including, the topography and weather patterns at the Site and surrounding area, the management and storage of materials, the availability of labor, construction water, construction electricity, and construction communications, the access routes to the Site, and soil and subsoil (to the extent described in the geotechnical report referred to in Exhibit A) characteristics. Contractor's failure to acquaint itself with such general or local conditions or circumstances affecting the Work existing as of the Effective Date of this Agreement shall neither relieve Contractor from the responsibility for successfully performing this Work nor entitle Contractor to an adjustment to the Contract Price or Project Milestone Schedule. Contractor shall be entitled to a Change Order under Article V with respect to subsurface conditions as provided in Section 2.23(j). SECTION 8.2. Lines and Grades Contractor shall establish construction base lines and benchmarks for the Work. Said base lines and benchmarks, and all stakes or other markers established, shall be preserved by Contractor until their removal is authorized by Owner. Owner may, from time to time, check the layout of Contractor, but such checking shall in no way relieve Contractor of its responsibility for the accuracy of the Work. Contractor shall provide, at the request of Owner, competent personnel to assist in this checking. • : • c . � � ! . � (a) Contractor shall maintain at the Site a copy of the "approved for construction" working specifications and drawings (including "as-built drawings") applicable to the Work with all changes and modifications, and shall at all times give Owner access thereto. Anything mentioned in the specifications and not shown on the drawings or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. (b) "As- uilt" rawings. Contractor shall provide and keep at the Site a complete "as-built" record set of drawings (also called 66I•eCOI�U UraW1IIgS99) that shall "�'1��� �:������������ ���� ���� �������� ��n�� �������� r���� ��������� �������������� ����� �� ���������������� �� �����°���������������a��� ������������°�� �����1�� ��a���� �����° ������� �������������g� ����:� ��:���������� ��������������� �� �������:������ ����� �`�� ���������� � �� �������� �������������� ������� ���������� ��������� �������� ���,,,� ��� �����1�:�� ��,������� ���� ������ ��� ��t��#���� ������� ���������°��� �������� ������������� 39 EXHIBIT 3 be updated periodically. The drawings shall reflect exact and actual "as-built99 conditions of construction, installation, and erection as it progresses. Where drawings are not adequate to show "as-built99 conditions, Contractor shall prepare sketches which delineate the necessary "as-built99 information. Contractor shall furnish two (2) sets of all paper "blue-line" prints "approved99 drawings for use in accomplishing specified mark-up. Final "as-built99 drawings, and a computerized disk af such drawings, with respect to the Facility shall be delivered to Owner by Cantractor on ar before Final Completian. Contractor represents that the specifications and drawings submitted by it to Owner hereunder are all those customary and necessaxy for the operation and maintenance of a power generation facility such as the Facility. SECTION 8.4. Use of Premises Contractor shall confine the storage of materials and constructian equipment in connection with the Work in accordance with all Applicable Law, and Contractor's safety procedures. Contractor shall provide adequate safety barriers, signs, lanterns, and ather warning devices and services to properly protect any person having access to or near the areas where Work is being performed at the Site. Contractor shall follow Owner's instructions concerning the location af signs and pasters, the time and location of the burning of debris, and any other similar nuisance items. s • : -. � �. � � ,; - � � • • � • � �- � -r � � � .*- . -. -� r . �. . � � �- � � r , w � � • �''- �-� � �� � � - � r � • � � � - . �r • , r .�� ' ' �'- . � • . � • � . � • w' �- . �- + � �-� • . � ♦ • : � �' � •' � Contractor shall be familiar with the requirements of the respective underground facility laws of the State of Texas. Contractor shall identify (through "as-built99 drawings as provided by Owner and reasonable inspection) to the extent necessary to perform the Work all underground facilities in the areas on the Site where Work is to be performed, including, but not limited to, gas, electric, telephone, water, drain lines, sewer, and the like. Contractor will take the necessary steps to safeguard these underground facilities. If, however, Contractor encounters underground facilities that could not be reasonably identified through compliance with underground facilities laws, review of any Owner-provided as-built drawings, or Site walk-downs, Contractor shall be entitled to a Change. With respect to areas outside of the Site, Contractor may rely on third parties, as necessary and appropriate, and in compliance with Applicable Laws. Contractor shall notify the Owner's Representative, wha will file a report of accident with the relevant local official at the tirne of any damage. �°��� ����.� ���� �.��� ���� �:����.�: ������� ��������� ��° ������;���� a��`��������a��� ����� �� ��e�a�����a���.��.� �� �=�����i�����P-��.���������� ������������� ������f��° �� �����:, �°�a����� �a������ �������������� ;���� �:���������1 ����:�� ����.�a� ��� ����������� �a�� ���� ��:����������� ��� �`��:�� �����;�°�������� �"'�:����� ���,���� ���.���� ����"��.��� ����� ��'� ������� �������� �.���� �� � ��°�.�������� �°����� a���.�������� ������� ����;������°�µ 40 EXHIBIT 3 • : . • - � . ; � , ,�- , - � , � • r . • .�� • . � , r - � . ' �• � - - •- � - r ,�� • . � � . � +' . ' " �. _ . � - �.' • - ,- � . - . � , r � � � *. � �" — 1 ' � � �� • ' ' , � , - � (a) Mechariical Completion shall occur when the following requirernents have been satisfied: �1� ����a��cn������N- h���; c�-����i���.ic�t��� and installed all materials, equipment �r.r��l��c�i���, t)�vt��r-',��i7���l��c� �;��z�r�������t}§ c�����q����c�i�t� �ir��i sy;�����°�� ���cc�s��°� tc� 1.��.�i�� ��a��xx��i�,�ic��-�i��� ���' ���v����� �r.����-�li��i l�:c��ri������:��� ��x����� I'c�rF c�c�����a��iic�r� c�l' r��i������ �����•t€����� ��l"1��� ��c�r•1� ��cl� �y�; ����i►�ti���w [i����1 �i•��ciii��, 3i���1 ii�:�;�a���ti�ara. ��r�� i���� c�tll�r� ����l�c�r� c�l` 11�� 4�c��°� ��c�t ��i���lii��, ����. �•�;4��il�ilit��, �ic;�����ci���i�i�y, t���ia�t�;, ��������z��ilitv, ��l�;t�, ��1c� GY���I�����i���� ��i�c� �1�c�1��i�.�� ia�t����ity �ri. 11�c if°a�i1iC�;F� i�.� accordance with the Contract; (ii) �,��i���•�����7t• ���1� ����;���. available for inspection by Owner all systems necessary to b�.�,ir� C°c����r��i��ica��ii'-��; in accordance with procedures mutually agreed to at the time l�y C'���t��v��:ic��` ��-�c� ��w�er and set forth in the relevant Equipment Contracts; ���i� ���� ��1���-�� ,,�,1��� I�c����e�t tc� t[��� Facility is mechanically and electrically ���������y ��� �;y����,i��; ��,��;����xi•� ��� ta��i�� commissioning of Owner Supplied ��������.������ y���� ����� ����������, ���;�I��.c� i���� and filled as necessary and all required ��r��c�������t�e���� c�����1�i�7� ���acl i���a��� �fGx�,l���i���, ���t��t��ic:t�on, hydrostatic, electrical, �c�c�trc�l rzi��l �����;ki"rr�� i����r�� f�7�' ��r��� �����•����� 1��r�� ta��;t� completed satisfactorily; (iv) the Work is ready to allow start-up testing, preliminary operation and commissioning of the Facility; and �v� izll 1����.i�iiy s�'�t����;� ����c� �ul����t�;,���� l���ve l.�s��..�� i���t4�llc�i, tl�� �,����i����1�.��� <ia�c! s���cra�� i���l������ �lic�r•�i�� (�x��,��t ���; �a�•��v�cl�c� i» ����lic�ii d�,1���)�x�) u��.�� k�� �����������.c� it-� �z n��:�i�a��.�. �k���it �lc���� ��e�t �+c��� L���y ��ll�s�����t�-£����r ���� �����;t�� ,���1,�_�����, ����� �ry����t.������t��� i��� ���,���� th� l�acility available for synchronization; °�� �� ����,�� ��x�� ���� ���� ���������������� �������� ���� �g������i� �z�����° ��Is,��� ��a�� �� ������� �i��� ���������°�,��I���_�������i���� ������°r���c�� �����a��° �� �I�. •• �a ��w ������_ �°.� � ������� ���� �������°�:�� ����������.������ ��� ���;���������,g� �i��� ��� ��r������������� ��t � ���� �����°������� �"�� �� ���������� ��������� ���.�����, ��;��� � � �f��� ����� �'�, ���� ��� �� ������°,��� ��� �����r��� ���1�� ������������°�� 41 EXHIBIT 3 (b) When Contractor believes that the requirements of Mechanical Completion have been met, Contractor shall issue a notice of Mechanical Completion to Owner. Within five (5) Business Days after receiving such notice of Mechanical Completion, Owner shall advise Contractor, in writing, with reasonable precision, of any known reason(s} that Contractor has not met the criteria for Mechanical Completion. If Owner advises of any such reason(s), Contract���° �l��il il7�r� i�14� ��-����°c��l°i���� ��'1`������'� ��������� and again notify Owner, in writing, �����:1 �4�� i����;iiyt:y 1���; a�.��ic�e� ��c��r����-���1 Completion. Owner shall have five (5) ���,r�i���s� l��y� �i�t�.� �c:.�c�i��t t�l�����1� ����������i���'� to advise Contractor of any remaining known reason(s) under th�� ���Rc���i��� �����'���'����� why Contractor has not met the criteria for Mechanical Completion. This process shall be repeated as necessary until Owner agrees that no such reasons remain and Mechanical Completion is achieved. If Owner fails to notify Contractor of any such known reasons within the allotted time, the Facility shall be deemed to l�r�iv� ���������.cl �'I�c��7������� Completion as of the date of such notification. Otherwise, ���I���ct �c� �'c���s��•��t�►r `� ��s��1t to dispute Owner's assertion that Mechanical Completic��� [���� �7��� 1����� �'������'���� Mechanical Completion shall not be achieved until Owner and Contractor agree that all of the criteria for Mechanical Completion have been achieved. If Owner does agree that the Contractor has rneet the requirements of Mechanical Completion then the date of Mechanical Completion shall as per the date of the Contractor's notice. • • � � ' " "'' (a) Substantial Completion shall occur on the date on which: (i) the conditions for Mechanical Completion have been satisfied; (ii) all services, materials and equipment comprising the Facility have been completed in accordance with the requireme���ts of this Agreement (other than Punch List items); (iii) the Performance Tests have been satisfactorily completed by Equipment Contractor with respect to the Facility and by Contractor with respect to the Performance Tests for Station Awciliary Load and that Contractor's performance of the Work does not prevent the Facility from achieving the Equipment Contractor-minimum performance guarantee levels; (iv) the Punch List has been provided to Owner as set forth in Section � . � ,• ' - �' ,, , . , + � ��r� � r • �- s � �� .. � . . � • •- �' . �. - . -,� + , • � �" �. � � � � '- � . � • . � � . �r, � . - �� , �; •• � . � "� �� ������� � �: ��r�� ���� ���������r���� � ������� ����7 � ������� �a�f�� ��i�r� �. �� i� ����r���������,�� �������������������� ���i��� ������a���r�, ���g��� ������� ������ �;������ ����������i�a��� � � f�������i�� i�������������� �� �����°�������� ���i� ����>� ���°��w�i������� ��f` `���� �������� ��� ��;���;��, �,�������� �������� � ���� �.��� ����� l� �������� ��� � ���� ���� ���� � ���������� �� �� ��& �,��r��� �������; ���;I����,���» C� EXHIBIT 3 validation so as not to interfere with the Performance Tests yet provide for a verifiable result. (c} When Contractor believes it has achieved Substantial Completion, Contractor shall tender a certificate of Substantial Completion to Owner in substantially the form attached hereto as Exhibit -2. Owner shall accept or reject Contractor's certification in writing within three (3) Business Days after receipt of Contractor's tender. If Owner fails to notify Contractor of any such known reasons within the allotted time, 5ubstantial Completion shall be deemed to have been achieved as of the date of the tender of the certificate. If Owner rejects Contractor's certification, Owner shall identify its reasons for rejection in detail sufficient for verification and thereafter Contractor shall: � • �' • t' �' � � � r . � • - r . � � •; r • . � � �-� � ,r� - �, (ii) disagree with Owner's reasons for such rejection, promptly notify Owner, and the Parties shall attempt to resolve the disagreement without delay. If the disagreement cannot be resolved within five (5) Business Days, then Contractor may seek a determination whether or not Substantial Completion has been achieved under Article XI 66Dispute Resolution". � - �. - • � ,, ; . � � . � , r- ' ' �. - � - r � _�; � w-- -� � -� -� �- - � � -� � -'+ i ' At the time of submitting a certificate of Substantial Completion, Contractor shall prepare and submit to Owner a Punch List for the Facility and an estimate of costs necessary to complete the Punch List. Owner shall have seven (7) Business Days from receipt of said Punch List or update to provide any comments to the Punch List. The Parties shall review the Punch List and discuss the items to be included in a mutually agreed Punch List, with an estimate of the cost to complete the Punch List items; provided, however, that pending resolution of any dispute with respect to the Punch List, Owner may withhold from any payment of the Contract Price due on Substantial Completion, draw on the Retainage or, if applicable, draw on the Performance Security, in an amount equal to two hundred percent (200%) of the estimated cost of completing the Punch List items of work. Owner shall provide Contractor with reasonable access to the Facility to complete the Punch List. Contractor shall diligently pursue completion of the Punch List within sixty (60) days following Substantial Completion and shall notify Owner in writing upon Contractor's determination that Punch List Work is complete. Owner shall have seven (7) Business Days to accept ar reject Contractor's determination that the Punch List Work is complete. �"���� ����..�a������ ����� ����� ����s��: ������� �����°���� ���� ��������� ���������������� �;��� �� ���������������� �:���� ��m���:����4����������� ������� �������� ���������T ������ ��������° �.�������� �t���� ������� ����� �'�������� ���:������������ ��a ���;�����������, ����� ���� ���°����a�:���� ��"�`���� ���������������� ������ ��������� ��������� ���.����. ���.� �� ��������° ��� ����� v��� �����g �� ; ������°���� �"�°����� �°�����r��� ���������, �����;��������� 43 EXHIBIT 3 If Owner rejects Contractor's determination, then Contractor may seek a determination whether or not the Punch List Work is complete under Article 66Dispute Resolution" �" *; � "- -c r r ' � � � , .. � � ._': Subject to the provisions of Article V, during the one hundred twenty (120) day period following the relevant date of Substantial Completion, Owner may direct Contractor to (i) provide support to the Equipment Contractor in the performance of any remedial work on the Owner-Supplied Equipment by the Equipment Contractor to achieve the performance guarantees under the Equipment Contract or (ii) undertake remedial action with respect to the Facility other than the Owner-Supplied Equipment to achieve such performance guarantees. ♦ ' a . � � - r' which: (a) Final Completion with respect to the Facility shall occur on the date on (i) Mechanical Completion has accurred; (ii) Substantial Completion has occurred; (iii) all Punch List items have been completed; (iv) the Performance Tests have all been completed; (v) Contractor has paid all undisputed Delay Damages as set forth in Section 9.7; (vi} Contractor has executed and delivered to Owner Contractor's final waiver of liens in the form attached hereto as Exhibit C-2 and final waivers of liens (in the form attached hereto as Exhibit C-2) executed by all Subcantractors with subcontracts having a value, individually or in the aggregate, in excess of one million dollars ($1,000,000) and Contractor's certification that, to the best of Contractor's knowledge after reasonable inquiry, (1 } all indebtedness, including liens, with respect to or in connection with the Work has been paid and (2) all claims for payment for labor and materials for which Contractor is responsible in connection with the construction of the Facility have been paid or satisfied; and/or bonded off; (vii) all Final As-built Drawings and Documentation have been delivered by Contractor to Owner; and `�"���� ���,�.������� ����.� ���� ������������� �������.�� �� �:.������i�� ���"��a���������� � ��� �� ����:�:���������.�, �����������������%����������°�� ����°������µ��� ��.��I�:��° ��i�1��:. ������ �a�,a��� ��������a���� ���:�. �����������.� �t����° ������� ��� �������������� �ra��� � � ����������� ��"�"��.�� ���������r������: �"������ ;�������� ����1��� ���������ry ��_��� ��� ����:���� ��`��1;��� ����� �� ��� ��&�������� �:���� ���������� � ����� ����,�������� 44 EXHIBIT 3 (viii} Contractor shall have reimbursed Owner for or shall have, without cost to Owner, ordered or replaced any of Owner's spare parts used to perform the Work. (b) When Contractor believes it has �zc�t�i�v��� �i��.�! �'�?���I�l�;�rc��� �i tl�� k'���1r��� Contractor shall tender a certificate of Final �'c�����Ic�i���� tt� �)w����° ��.�1�:;���t7ti=�laY �k� ���� form attached hereto as Exhibit -3. 0�����L� �ll��� ��c;����t ��r r'�.1��� ����a��''����'��ry� determination of Final Cc3i��)�i�i�car� i�� �'�`�i�X��; ��it��i�� Iiv� (5} Business Days after receipt of Contractor's tender. Ci' i����r7�r [��il:� l�� ����tii� �.:`canta"��ct���' af any such known reasons within the allotted time, i��� I�`��c��ii� sl��ll k�� ���t����i �c3 il�a�r� achieved Final Completion as of the date of t���: i���c��.�° ����t1�� ���'tii��.��i�• If Owner rejects Contractor's determination of Final Compl�tic��-�� 4)�nx1��.r° �[��11 ic{�.��ti3� its reasons for rejection in detail sufficient for verification �x��� tl��.r���fGc�€� t'�.���ti-�z�t:c�z- :�l�all: (i) take prompt corrective action, as necessary, to achieve the requirements for Final Completion, and then submit a new determination of Final Completion to Owner as provided for above; or (ii} disagree with Owner's reasons for such rejection, promptly notify Owner, and the Parties shall attempt to resolve the disagreement without delay. If the disagreement c ot be resolved within iive (5) Business Days, then Contractor may seek a determination whether or not Final Completion has been achieved under Article 66Dispute Resolution" �, � • , -. , , - , � !- , 1�. ,+. Contractor shall perform the Work so that Substantial Completion is achieved no later than the Contract Completion Date. Contractor agrees that if Substantial Completion is not achieved by the Contract Completion Date because of Contractor's unexcused perforrnance failure, Contractor shall pay Delay Damages to Owner until Substantial Completion (ar a percent thereof if there is only partial Substantial ��r�r�� ���°tic��� of the Facili�y} occurs. For clarification of partial ,, ,,��,,,,,, Substantial Completion, if nits achieve Substantial Completion, Contractor would only be responsible l��r u' of the daily Delay Damage. Subject to Owner's rights under Article X, the receipt by Owner of Delay Darnages shall be Owner's sole and exclusive remedy for a failure ta achieve Substantial Completion by the Contract Completion Date. � � �. � �- , 1►, .�- C�c����tiA������° �4��x�� ���ty T)c.l���° 1����Y����.� i�� ���•i��;��t•� �;����� li��;�.��r 4.��1 cl�ay�; witl�i�� �tvc�3. �"7:� ci��z� ��� drycc.�i��t s��'�u i��vcaic�� 9i1��r�-�� (3���a��� c[�1iv�a-c�� �.��`tc;.�� C:i�� ���cl c�l" ��:r�r�� (i����.�� � � �'.j ��y i��:ric��.l. �.����t���'�; i�zvc�ic� l'€��• �7cl��:y ����a�a���� ;;l�all �����;ity Cl��: c�i��:���ii�� ci�scr z�i��l �1z��11 �ia�lu�:l� rc.�:;��j������� �.1�3�� ��i�s�l ���l���i��ti€ar�� ��-� ���e la���i� ���° vai���:�� �u�:§� ��,�-����i��t 1����� t���:�� cicsi��•r��il��.�l. g�"1��� ����.x������� ������ �m��� a������:���������w ���.���°��s� ������� �_��������a� ����'a���°������������ ������ �� ����a��������;i���� � �����������.i�������������� �� p������•��a���-;w�� ���������c��� ����.����� ������ �^� �������� �y�������������, � ���� ��������°��I i�������w������� � �����°���°�������°�F w������ ����� ������i�w��;�F������ ���' � �.���� �������w�°������.a�u� � ,���.��:� ����.�:i�� ������.��� ��������� ����:�� �x����� ��'��� ��� ����a� x����� �� ��°������;��� �������� ������������ ���� ��� ������������� m EXHIBIT 3 � � ; ' r' . � , . � r - � � - � . � . � . • , � - � �' , � • •; �' ' � � � ! � , � � 1 �. � ! . ' � � � ' �', � ' �" � � ' � � • �- 'r; � •�' " �. ! � � � �, ! �' ��r • � �' � �'- ; �' ' '� � • � ', � ' � �,, � • . �' �" .' ' Contractor shall be deemed to be in default if it at any time during the performance of the Work Contractor shall: • , � � � � • , �• � -� � �- • � • . � , . � -� � . . - . � � • • . � � _ . „ � • , � ��- • • � - . � • ;- • � --� + " . � �,- 1 .'- w.; �. � � + �-' • , � � � � r � � -• , - � � -, � - r - � � •. . � �- - -� ! �. �- �� � , r . r 'r . �- •� . � � ,- • - _ . .� . � :- � � • , +- , + • �- � -� � ,- r; r. � � . �- � .. � -� .�. � . , � - � -� �� r �;��. _� �- � , - � • .•.r -� r • • r � r � • � �'' �' � . - r -�« � a . '• � � , r � -� , � � � �'- r' . 'r � , � + � � . � � ' �' �r- �� � - . � � * - r � - � � . 1 � . �. � � + +-'' �• r' r! • � ' • � � -* . - r • �- -� 1 �. •- •r • , r' , � -� �-; •� , � � +- . _ . . � � . . � . _. _ • �� , * • - � • � - �"����� ���.������ ����:� ��� ��.����������� � ��°���:� ������ ������� ����:��• ������ ����; �� ��a���i���������,�� ������������������������:���� �m���@����.��T� �r����� ��������: ����%��� ��,������ �;������������ ��a�� �������:���� ������������� �� �����«�°������� ���� ���� �������;a���� ���`"������ ���Y��,,a������ ����� �������� ������1� ����1�:��� ���.� ��� ��������° ��;������ ��� ����;�� ��� ��������.����� ������� �����,���� . �������,� �������s������� 46 EXHIBIT 3 (f) Fail to make an undisputed payment to Owner when due hereunder and Contractor does not cure such failure within ten (10) days following delivery of a notice from Owner to Contractor to remedy such failure. (g) Failure to rnaintain insurance coverage required of Contractor as specified in Article XIV of this Agreement. (h) The issuer cr�' il��: (.'ear�is'�€���.��` Payment & Performance Bond disavows its obligations under the C`t��iir°��;����° l��E����ent & Performance Bond, respectively, the Contractor Payment &�'"c�t•i'c��-��7��i�c� l�ond ceases to be in full force and effect for the duration required under this Agreement. ' SECTION 10.2. Ri.ght to Terminate for Cause If at any time Contractor shall be deemed in default pursuant to Section 10.1 k�����,��.����� ����.;���L�'x t��v�7��� I�1�y �,1��� t�� t�.r���i����tc this Agreement in accordance with Section ���Y=� ���,�,C.�,���i�������i� �-,� ��,,,,����r� 1���� �r������*' ��� (.)����r may draw on the Retainage or, if applicable, L��� �,��z��-��.�-�������; ���,�i�•r�y �`��t• ���� ���ag����t� clu� fi•om but not paid by Contractor under this Agreement. � � . • . • -; � . - (a) If Owner elects to terminate this Agreement due to Contractor's default under the terms af Sections 10.1 and 10.2, Owner shall give written notice of termination to Contractor specifying the date of termination and in such event: (i) Owner, without incurring any liability to Contractor, shall have the right to have the Work finished either by itself, its affiliates or by a third party contractor. In such event, Owner shall not be liable to make further payments to Contractor until the Work is completed and Contractar shall be liable to Owner for costs incurred by Owner in accordance with Prudent Utility Practices in completing the Work, including without limitation, costs of accelerated or expedited construction methods actually performed in an attempt to achieve Substantial Completion by the Contract Completion Date, a�1�r���r �c� �a�it����at�; any delay by Contractor, and costs for administering any �����:c���r��t� =���ca�:iated with the termination, but only to the extent such foregoi��� c�c��t� �:�����1 i1�c portion of the Contract Price that, absent such termination, remained to be paid to Contractor under this Agreement; and ��, . r, � `,� �' . � �� � � • , � • � � � • . . • * • • � � , �" ,� �. � -� � � • - �. �- � ,, • , r, .� • ' . � - . � • � , � . � � � - � . • ' - � . - � � °�"��i*� ���:������� ����.� ����;� ��������b������u���� �����°�w��� ��� �:�:����:���� ��������°���,,����a��� ������ �� �;���i���x������� �����������i����—�����������Tf ���T�����°���������;�., ������0���• �������°� ������° �������::� �°a������������.� ���� �i�������� i���� ������ i�� ���°�°���5�������°�,'4 ��'���� ����y ���N��^�3����gf��� �� "�9���� ����� �4�°���a����� �'���.���� ����:����� ��:�,��:.�1� ��"������� ����� ��� �����c�� �;���� �`�� ���� ���` ��� �x°����a,���� ��°�x�� � ����,�i��;��� ������� ��i����������°�� 47 EXHIBIT 3 plus a portion of the milestone payment immediately next due after the date of termination corresponding to that portion of the Work which has been satisfactorily completed but not previously i��sr��ai��d. 1J�Il��r.�: ���vi��,z° �i���:� ���t �x���i�c ���; r•i�l�t�; under Section 10.3(a)(i) to ca�����1�t�: tl7t: `�V��r°�, �������` �l�al1 ��� ���nt�•�������•, �z�a�: later than thirty (30) days after rece���i ui� ���r�ir'�z�Lc��°``� ac�ca���Ltai�� c'f cc��t:�� Contractor's costs of the Work, less c��� �t�r�� c�I� ��� ���ilc��ic��ic. ����tr��l��� c�I. �Z�c: Contract Price and other payments previously paid. Where Owner completes the Work for less than the Contract Price, Owner shall pay Contractor, not later than thirty (30) Days after the Wark is completed, Contractor's costs of the Work, less the sum of all milestone payments and other payments previously paid. (b} Termination of the Work in accordance with this Article shall not relieve Contractor of its responsibilities for Work performed. (c) Delay Damages and Performance Damages, if any, shall cease to accrue as of the date of termination. (d) Nothing in these Contract Documents with respect to Delay Damages or any payment of any of th� ���r��� tc� ��vve�a;r �G���� be construed as limiting or r��i��i���, ��) Contractor's obligations ��.r���5���y t�� �����i�v�: its Project Milestones, (b� w�r°rF���i3�°� granted under these Contract Documents, �r�° (c) Owner's remedies for ���r�t�y�c�c�r'� default as provided herein. SECTION 10.4. Termination by Owner for Convenience (a) Owner may, upon thirty (30} calendar days' advance written notice to Contractor, suspend, abandon, or terminate the Work, or any portion thereof, and terminate this Agreement, for any reason whatsoever, including for the convenience of Owner without regard to whether or not Contractor has defaulted or failed to comply with the provisions of the Contract Documents, except for the purpose of substituting another contractor in place of the Contractor. (b) If Owner terminates the Woi•1�, e��LL ����y ����'tic��� tl���°�c�l' 1°���• �:t�i�v�i�������, Contractor shall be entitled to amounts 1��i�� j�b°�uicaX��1y e�� ir�vc�i���� ��� t��1��a��i i�� Contractor hereunder and in addition O���a�:r �l�r�[1 ����, ��t,������� �������$��������� ���� ���� milestone or other payments paid previou�4y, C�ry����������t��1' ����' ���� ��� ����� ���' ��`�� [���`t� t'�� the Work done prior to the effective date ���'t�.r����s-�4at�c�», i�����.���li�l� �7�$it��i��l�; ���°��vic���3, plus any Subcontractor or vendor cancellation costs, plus an amount for the Contractor's substantiated, reasonable direct costs plus reasonable overhead and profit incurred in preparation for the parts of the Work not yet performed and in demobilization. P�`��� ����:,�ar������ ���� �.��� �����:,� ����� ��������� �����g ��.�������� ���"������������� ����� �� ��������x��`���� ������ ���3���.������,��x����:���� ���°����i����, ;����1�� �������: ������� �x����� ��������������� ����� ����������� �����������i��°� ��� ����������� ��g���� ����� ���������s��� ��'��:����� ����:������������ �`����� ������� ����1���� ��������� ����� ��} ��������m ��;������ ��� ����_ �� ����:��������� �:��� ����.���°�,�� ��������; ����������T�. 48 EXHIBIT 3 • . '� r' �- - -�; � . • � � �. .+- �- - � � � • � . ,- r, . - � � ' . � ' . � � • � • � 1 ��� � '' • , • . • . � �, i � - . � • • , - • , , - � I �; - , � � • - � � - - . � . � . - � • .- � (b) Unless Owner directs otherwise, after receipt of a written notice of termination for either cause or convenience, Contractor shall promptly: (i) stop performing Work on the date and as specified in the notice af termination; (ii) place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary �for completion of such portion of the Work that is not terminated; . . ��- , � �;• ••, -�.�- •� •, � • �'; � " �' �, - � 1 .'.`� (iv) assign to Owner all of the right, title, and interest of Contractor in . • �- . � � � � - � � - - � � � •'' � • , r. ,� � � , �� � - � ��� ���� • • � �- -� , � •� � � � - ��� •�� �� . • � � �- -� � � - .• • � � ,' r; •"' . r (vi) continue performance only to the extent not terminated. � - • . � � � , �;� --� - � �- ' •- �� . � , � � -� � r ; • 1 • �- • � � , � . � -„ � , �- � + � • • • •, -• r .� . � • � . � • • . .• �, - � �- �, .- -� � , � • �• � * . r � � - . � •�- r • ,- . �- �-� .• � +' ,- � . + � � � �; , r. -• • _ �; , � ������� ����� ���� ���� ���� ��������������� ������:�� �����.�� ��������� ���������������� ����.�, ��� �������������:��� ���������°�����y������������� ��������°������°� ������� ������ ������� ������.� �� ������� ��� ������.���� „ �������� ����� ��� �,�������:������.� �y��� ����� ����������� ��: "�����.� ���������������. �"����� �w������� ���,,,����� ��������� ���,"���� �������-.�� ���µ�;��, ���� ������� ��� ��°�������. ������ ����,������� �� ����� ����°��������. 49 EXHIBIT 3 i�� �u��� i7-���i���e�• ��� �:)����.�• z���y r•�.c���i�{�. � �u�ai��� ��i�� ��s�l� ���s���:i��i����, f�'ca������3�.i�c �.i����� ���c�k���°l}� ���•�t.�=�1 a��zl ��c:��s•c t�x� W ���°� i�� ��a�l� ki����i���• £�s �)v�°���r ������ �°u��c�����i�1�� ���:,���sir�. tfr���:�:� c�tl�u�wi��: i���ir~�i�.tec� l�}x ���r��;,�5, C�a��i�°��t�r sl�r�ll, �1���-����; ����� �r.��h ��d����n�ic���, �,: a����x�at�i�� i��, ���sti` �.��►�1 ��I���7° ���� ��i• ���t�r il�� �i�� ��a1�4 c�tl��rwr��,� k�L r°���cl.y° ts�� 1��-c�c��,,�c� ��tl� ���� �Nc�r•1� �L�,c��� �-�cei��t ��i� (�vw�l�r° �; �"��r�tl�r��� i��st.���.x�:i�t����. ���c���lc� �l��: �����•l� la� �c� ����;�a�:��r���, �r,v��cia ai�c� C"c�w��3•��.tc��• ����ll ������tiat� �� �:"l��ir��� C��°c3�.rr �c� a�����s� ��1� �i������ ��a�" �i��.�r ����Eae���ic��� ��y �irv���;r l��.r•c;�rr��lc.�� c�i� il�� �'caG�tr�ei, ���ic��r, tt7� 1's•�7j��t ��fc,�tc�i�� `��l�vc���lc ����� �`ca��t�J��ct C'c��������tic��� i)���e iic ���nr-c���z���. �vilk� 1�.��i�l� �w' `�Ci��i��� ir� �i�� Work99 of the Agreement. When a suspea��ic��� �c�ca���� ca�; ��c.�.�c�� ��1�� 1��k��clr•��� �.i�;l�ty (180) days in the aggregate, Contractor r��� el��� ti� tc'�a�. s��c:l� ���;���e'��s���� `�� i� Termination for Convenience of Owner pursuant to Section 10.4. •` 1 • - �- . � -� • �- �- . .' . - • + �' �' . - •,' . r- � this Agreement� (�:�� C)��vi���° �c����3�'r�s a��•c����� ��� c4�;�`ti���i c�4' ���-�� �.��' i�� �,�-�v��r���i;� or obligations ���.���.��ir���° t�a���� f���� tn c;���»1������� ���•c����cii���,� t�3 �°���a�c�y� ��.tc��t ���•�.a�c�li �r default within ��.�� {1�i) F����ii���� 17��� ����:,�° �r+�•iit�,�� i��ii�� il���°��i` ['r-s���1 (.`��i�l.�°���;�€��° and thereafter cl��i�,�:.��i,lY )��•«��c;.ci�; rvjila ��ci� x��i�ic�,�ly; (b) Owner becomes insolvent or makes a general assignment for the benefit of its creditors; {�� C)�+�vr��i• li��;� �.� ���tiii��11 i:n l��ri�l:���r���tcy ���� i��� a���,i�ti�a�� if7 1����k������i�;y iiic�! agains� it �r ��� <�����1�ir��rrt ���� ������tir��� 1u�i��# �zj��r7 �G�y� �t i�� �r�r���.rk.y ����s.� 4��r�u����t•� or has �.� �a��:.�i����• i:c�r• it�; l��ks����.�,� a�������rt�:c[ c��x 4���:t����1t c��`ti�c �c�a�ciitir��� c�f`����:1� ��r�i����� or of insolvency; (d) t;�i����r �����i�.ri�lly c���rs��,��r�l� ���° �ail;� t�� c:��i�����v� �v�tl� ����v ;, ���•ciir�t������, ��Li��;�. regulations� ���� �������;r:� €�1` ���y ���xt�li�� ���t�i��r•�i�� l��t�ii�� j���°����i�.ti�i� �n�� ���i��,�� cic��� i�c��� cornmence �it��4 clili�„cr��ly �s•cxc���cl ic� ���i-� �;����� 9��i1���5�, �ri.tizir� [i�i��:��t � � �1 c:�zl��z�l�.r• c��y�� following delivery of a notice from �'c���tz�����c�s- tc� ���wi��°3° ���s �•�:����'ciy �l.�cl�� ��a's4��a•�: cj�•, il: such cure cannot be effected within s����� f i�'t�;��� { i�� �i��.�'` ���x'�����, ������� ���`� ���1�`��������'��� such cure within such period and diligc°���1y�� ��c�i'����� ������ ������ �����'��l��t'��.� �'�' (e) Owner fails to make an undisputed payment to Contractor when due hereunder and Owner does not cure suc,h failure within ten (10) days following delivery of a notice from Contractor to Owner to remedy such failure. In the event of an Owner default, Contractor may, at its option, suspend performance or terminate this Agreement ten (10) Business Days following notice thereof to Owner; provided, however, that ��`���� ������������µ�s� ������ ������a ����$��°������5����, ������n���� ������` �°����������� ��������y���������� �����: ��n ����tt��"����ii�u���, ����������w�������������n������������� ������s��������������a� �����f��� ��t��s���� ���������° �����.���` �°����'����•������ ����� ��������������� �����:��°��������r�� ��:� �����.�:��ya�#����°�;° ������. ����° �������.•��r������� ���� ������ ���G����W������k��� � ��c���� ��������� �,�1�.���I� �.���a���a�, ���n�: ��� a���������° ��e��;, �:��� ������ �����,� ��� ���°����.���� ����� �������°�� �r������ ���������,���. 50 EXHIBIT 3 � r � � � ; •- � �. � •' � • - 1 : !'. • • + � - � • - ♦' . . - r' • " • . - . ; � • - c � . ` r � , r; � �- • ► -♦ � r, � - �- �♦ • � � � � �- � � , - • • - r- �. � � � -r . � ' � ' �- � -� • �. - � �- • � � * .; . � ; , .. � �, • � . � � � . . �r . � �- •� � �� ' � �' • • - � t' � � � I ' • ! ;; �- � �• Upon the termination of this Agreement, in whole or in part, pursuant to either Section 10.3 66TelTI1IT�aLIOn Uy OWTZeT� IOT C�AUSei99y 10.4 66TPiT�lIlII7aLIOIZ Uy OWTIPiT� �OT COTLVeTIIeiIZCP99y or 10.7 660wner Default", Contractor shall execute and deliver all such instruments and take all such steps, including assignment of its contractual rights with third parties, as rnay be required to fully vest in Ow�ner all right, title, and interest in all Work, subject to Section 15.1, including, but not limited to, all plans, specifications, deliverables, materials, and equipment procured and all contractual rights, and/or cancel or terminate, at Owner's option, such of those contractual rights including, but not limited to, subcontracts and purchase orders as may be requested in writing by Owner. 1 ' ' � ' 1 '` SECTION 11.1. Dispute Resolution (a} ispute. Any dispute, controversy or claim involving the Parties arising out of or relating to this Agreement or any related contract or the validity, interpretation, breach or termination hereof or thereof (a 66 ispute"), including claims seeking redress or asserting rights under Applicable Law, sha11 be resolved in accardance with the procedures set forth in this Article XI. Until completion of such procedures, no Party may take any action not contemplated herein to force a resolution of the Dispute by any judicial, arbitral or similar process, except to the limited extent necessary to avoid expiration of a claim that could eventually be permitted hereby or as provided in Section 11.3. � 1 � • i � i ' a + � �" "' • i - �- - � - � • r -� - � r � ! • . �- �-- -� � , - �-- �- -� - r' . ! � . � . �- - . � � � - � . �� • � • r- .� . . w- . .� r � r; r � --� + � . � � •' ! • "�` �� �����:;������ ���� ��� ��.����� ������� �����m����:� ���� ��������� ����������:���� �:���� �� �����`� �������� �°����������������������;��r�� ������������ �� ������f��w �������; ��t������ �������� �����������r� ����;� ��n����°��� ������������� �� �����������,:.� �i�� � � ������i:������� ��'�"���� ���.������������� �������, �����r��� �������1� ���.����� ����'.���� ����'�� �������;�;�� ���� ������ ��� ���°������� �"��s�� ���:��a������. �������a� ������������� 51 EXHIBIT 3 • � �- .', � � r ,.- In the eventi a Dispute cannot be resolved by the Contractor's Project Manager and Owner's Representative, either Party may, by notice to the other Party, request referral to the senior management of Owner and Contractor for their consideration. Such request shall be accompanied by a written statement of the Dispute and of each Party's position. Within ten (10) days following such request, the non-requesting Party shall either concur in such statement or prepare its own, and such statement shall be delivered to such senior rnanagement. Such senior management shall meet in person or by telephone within ten (10} days thereafter to seek a resolution. In the event no resolution is reached by the expiration of thirty (30) days following the referral request, then either Party may submit such Dispute to resolution as further provided in Section 11.3 by notice to the other Party (66 ediation Notice"). SECTION 11.3. Mediation � � � . + � � • • . + • ' � � • - -r � r-- - � -� r + -•� • r �. • � -� • • •- � -� r � � � + .# , � -� � �- r �. ,; -� . � �- • � -� �- r ,; . �-�- �- -� � � ,+ -.� � r� ", � . �- -� , • �,; • . + � � � •' � '' •r , � � �' � ��' � , '. . • . -, • ,r- •��� . � -c . � 1 �. � � + + -� � r . , ' � � � � � _ . � _ �„ � -� . • - - • ' . • � , r . . .� - , r, � � , ' ' . r' -, • .� - � • � . �- -�' . � . ��; �;, �� - - �- � � -� . • , �. . ,� � -. r, •; r- • -, -* � -� , � � r �� � � . �� _ . � � r • ► .� . • _ .� � � , �- -� -� r - - r . � �- . ., -- - r _� t • � � -�' w * -r . � . � � + '�'* �'; • �- SECTION 11.4. Jurisdiction ' � � - '' • - � .r .� . -,. . • � • • ,'� � �- � •. �; . � � � . -�' -� , �- r � . , � �. .� -�'-�. •, . � • , � - ''. -� r .� � � . _ _ � � • � - �- � ,; . � r • � --� + . �' , �- - �' � � � � • �-� � . • _,r � � � � � ',' ���. � � • � +�, � • + '•' ��� ��, ���;���������: ���� ��� ���������.���� ���������� �� �,��������� ����������;���� ���� �� ���������������� ����������°��������;�������P�� ����������ffi������{� ����1�� �������� ������a ������-�> ���������.���� ��� t�������;��� ������� ������ ��� ��������x��.� ������ ��� ���°�.�������� ���`�'��:�� ���x���� ��� �������� ��.����� ���zv���� ��'�.����� ������� ���������,, ���.���, ����� �����P �� ��������;���� �"�w��� �����a��=°�,�� �:������ ������������� � EXHIBIT 3 . � . - ,� -- . � . � .�r-. .�'- �; , . _ ��. �,+ • � # � . �_ � ' " . � . �- ' ^ • '� � �- ' ', .� , ' � � � � � � � '� � �' � r Y'" � � ` - �' . , . ,, . • . . ' . � � • �' � � � � ', � • � c� � � � c � r c � � . � � � � � '.. �: � � . ► � �. '�.... � �........ • : . ... � R ��. ♦ '' ,:1 ' . �- / �'.. �':: ! , � � � t : � ���' • ♦ � � ,��.. � '.: ♦ �-' `' �; ; , , ' 1 1; 1; 1 . . � . �, . �; . � 1 � . . �. 1 ., . , � ' � •� � • �� � � � � � � .� ' �� r � R 1 , 1' 1 '• 1" �' � � � " � �� �� �� !� �' � ,.,� . �♦ � I �� � 1 . � .. �� �' R 1 '� �" �� 1 1 ` � �! ` � 1' �' ' -�' �' � . � � • _ ' •,- The Parties agree that builder's al�-��i�l� �~�G•cs���r�y �t�;���r����c�. 'w��r�:�� i:� 1� 1�� ��r�c�vici��� ����G�w�i����t t� �€°c:��c�t� 1���(��a �vill �c��c�. risks, c1�a����k��° �.����� la����;� ��� t.la� '4�'ar���� �-��°����� t�-� �Lr���t<����i;:tl �"cai�������i��ra. �I���r�it��si��€�c�ir�� ��ccti€�r� 2.13, �i�;�r ���l�w�a��i�a� Ckc�i����ILtac���, ��� [�r�r���r'� 1��°�����;.�°[ti= �������°���cc�, wl-�r��� �� tc� k�c, �-����jvic.i�:c{ �����-�uant t�� ���i��a�r ��m��t�j, ��ill ���c;r ��il �•����, ci��������� �����y on industry standard forms, losses to property ow�1�� ��� ��' irt ���� �.����c?��5` ����(?�'i���'A �k�.) ���������'lc'� for losses covered under the property coverage �����i t�c���w�:c���'c�rc�3 l�a�:��:� ����ll ��c. ���ici l�y f)�v«c��, unless such loss is caused by the negligence of �`�i�tr��:����` ��r��� ��� ���k����������'����u`�y ��� �'`����� ��`�� Contractor shall be liable for applicable deductit���� ��i�� t�� ��c�c�i �,ac�l� �c�l�r �"���c��; ��i�il (c} except as otherwise provided in clause (t�}, (;v����..r ������l�v ���I����s �-'������'�������" ������ l�`� Subcontractors from any liability for property d�c����� ���'i�i���; Si-c���� tl{i� c�w��cs ������, �u��: c�� c�l°��;�4�itit��� of the Facility or any part thereof, subsequent to tl�� t.�'����i� �' c������'�, �:��;st��ly �1��f �c'r�i�'��! L�' (-��'��c'r`. `�' �� ���a�, �x����� ������ a���,� ��€��������������� �����°����� �,���� �:,������ �:���a�������������� ������ �� �����i��������, ��:� ���t����1�����a�����u� �1,, ���,��������s���@°�� ����������, ���� I��° �a:��%�� �������� �a���������������° ��� �������#�1 �������������� ��� ���°�����°��������,� �y���� ����^ ������°�r��;����:�� ���'�'`��.�� �",����f�u�°������°��� �""������� ������� ���.��.��� ���s��J�, ���.� � �������� ���.�;��� �:���.� ������ �� ���°���;������ ��°����� ���������� ��� ��� ��i��°,�������� 53 EXHIBIT 3 SECTION 12.3. Tres�ass ��'c�t�t�'��t�L��a �1��14 l�� ���lt�l�r i�����c�i��tl�l�, ���� �.i�Y ���i ta�` ir�������� c��• 4ir�y �l°�jua•V tc:s adjacent third �����t,y ��i-c�j���-tyr r�:��.�l�i�a�; 1r���� �`c�i�t3���tc�t-`� ����•i�ar���{i��c,� c��` [��� "�lc�r�4�, �°���t7°���.�:��xR shall be liable ic��- �ia�y �.lai���� ����i ��`�.�y ���'i�� i`G�c�r� C'ca��ir-���tc�t°'� ���:}����i1 ��l' �c,l��•is ��d`����� �i�a� c�r���r� adjacent property. SECTION 12.4. Intellectual Property Ri�hts Infrin�ement Indemnity A ctor warrants that none o�` il�� ''�c�r� �cc��`�.��•���cci ���r �'c��Yt�°uk�t���, €�r il�� Contra ���ac������i�t��, �c��cl� ���° �,�l��i�r���r�si ��•t�d�i�:�, ci�:�i���c�� I���ri��tc;c�, ���° �����r����c� l�� �`�a�zt�~�lut���e �,�'l�ic� �:a��.l�rcl�� �)w�����--�����t�li�:�� l�y���}as����3i) �-rt��•�ua��� t�� ��7�� .��,i�ccr���i-�l ���ii�iz��;� ����cs�� c��• v���f��i�. a�i, i�c�r�kl� �i,i����°��.���� ��at�r��. �c����vr•i�l��. tr•��cic: ����-�i, £s�i ����y ��tl��� �r����ll�:�t���l ���- }��c��ari�i��r� �-i�l�t� ca�� ���y t��$�°�.� }�a�•t�. 11� ����y t.1�i�-� ��s�rt� r��t��:�:� �� s�l���r�� c��� �c�r�t�����c��� �� ���°c�����i�� ���,�i�a�i �)r��s��G� �-��,��•c�i���� t��c� �v'��i�l�, ���l�.�i���; w���l� a�� i��ii�it��������7i ���� vi��Iati��i�, ��1�r� °���l�j��t �ca i1-��� ���t���r� 1�.�, C`c�r�ll��t�7r �h�l� i��dc������i�, ������c� �r��c� ���,��c 1����i�-�le�;�; t}wr���°, �t� c�i�ti.c�tc��•�;, c�['�i�,�.���4 �;���}alc�}�c.��y ��c�l� s�� �4•�il►at�,; [�.��7� e����� �i���t��� {�1� �����`�a'��� and costs incurred by ar awarded against Owner {iu�l�������� rn�ar-� ��a:�t� ������ r����c�i�����4�.; ��l��x;�•r��v;�' t���;). C��r�trti��t�ar ����s��;� t�� i���1��cic.. �� �� t�r•i�i e�3° �.c�r�ciilic��� c��` �.�e.17 �����1����. e�r��r �at���l�a�c��l L�� 'r� ��� il��c ���r1���-�i���i��� ��i' i1�� 14'��r�rl�, �:� ����te<i�t i�tcl��l�r�i�i�:4�ti���r . rs�v���c��� c�t�.��clirl�, fi°���� ���� ���l��;c���tr���.tc7�= �sr��ci- ��r�i� ���:ti•�1���;�� c�r���r• t� C)vw�i��. � � � ����cl �'c�r��r��.l���• �.l�ac� �� a1�r2c���• �x�cl� ���i�;t�€��:c t�� C��rane,i� �� ������ ��� i°���c�����Caly �-�.��xiir�.�, ��� exat��h�G t.l�� tc�•rn�, c��' ����,1� i������r�i�iii��ticx�� !�y ��`�l� ���l��c,��tt-��c.tc��-�. C��t��r• wili ����tif`�� �'c�z��r4�c�tc��° ii` �G�y� such claim is made or proceeding is commencecl. f�r�vlrcr ������, 4�� it�; c���ti�at�• l�u �'�.I�IAc�������� �'�' ������•��t� 1����1 c;��ui���l �L�r ��i�y ��a�1� c:l����t� ca�° ��•s��:�::e��it��;a lnc�we:v�r�. �`��������zc,t��i� �l�rall y�c�i �c� s��l�����t�� tc� rT� ii��1��i�°�e° �?��Z�e�• �11� �cp�i� ��t��l ����.���c�� �x�e.�i:A����cl 1��� ��wi��i• i�� L������, ��� � c���r��c.��icc4. I �' �4�c; i�sc: c�C`���Yy c���ti�� 'V�'��°ic, c�r i1�� w��:���[1:� ��(` ��r�1�€ �'ta�i�, c:a�- cl���r��:i�i7t�, ����-�cl�. c-si- �c���ig�a����,Yat, ���• ��t��� ����c�t ����iA�.c�{', 1rLii-i�is���cl ��n�i�:�- 41�i<; l'��1-�����c���i iw� ������i�;�tic��� ��i��� tl�� �Jc��°�� i;� 4a��� ��a �i��y ;��rcl�r �I���i�� c�iv �: ��r���.�clizt� i� ��a���tit���� ��x-� �n%-�1���r���r�t ��c41���� i� ���,j�ii��d, rnrl��t����- �������s°���ily c�r ���.rtn�z7�rrt1�+� ('���t1-��lsa�5 ;���a��1, �� i�� �;c�9� �c7�t ����� �x��cu���. c�c� ��t�� ��I�[��� ���Il���v�i��, ���c� �;;�l��t���� c��°���ic��� �1��x�1 be at the sole discretion of the Contractor): (a) Procure for Owner the right to use the Work or results of such Work or such documents, goods and equipment; or (b) �,���l���c �lic 'V�`��rl� c��• the results ��i' ��.��:�� 'V�c�r�� �as� s���:�� ci��� ��r����tts, goods, or equipment �it1� ����1�-i��iiik7�;����; Work, do�:��r7����is, �,����ci�; �r' �c��ail�a��3�r�t having the equivalent ���s�c;li�r��li�� �x� t�t�; infringing ���W t�.i���+��i1� �i��`ri�r�ir��; V�ra�rk., documents, goods or equipment; or (c} Modify such Work, dacuments, gaods, or equipment so as to make them non-infringing, but equivalent in functionality. "[`�a� ����;,��a����� ������ ���� �����������:� ��������� ����� ������:���� �����:��e�������� ������ ��� ����������������� s,°����������°� ������a���.����������°� �.�3�:,�����A��,g����i� ������'�:��° �� ���: �����;� �������� �������������� ����� ��������v�� ����"�������������t� ��� ���°�������������°��. ��f���� ��� ����������� �.��'�"�:��� �������re� ���� �,����� ������� ��������, �����, � ������ �� ;�. E � �� ������,'���� ;���,�d � :���� ���� ����' �� ����������.�. �°����� ���e���n��� ���� �.�� �����;��:�����°�� 54 EXHIBIT 3 �' • - • � . + . � .- . • ! • , � �• . � • -•. -� r � , r; � � �, • , ._ _ • - , -�� - r . � • �� . • .. . . . ,, _. _ � �_ �, _ - . ��- � •' .� r. . � • .� - � � . � � . -� � - •; ,, , � . � � � � � - . � � • . • • - � �� , r � -•, � . . � � � � r � � - � •. , •.� � �� � • � � � -� • ��, • . , � - ,._ � �, � � � • � �� - � • + '� � r • � , r � , � � �� � ,� r -, �- � �• . �' � c � .; � � � .+. .� + � � � -� ,*. • � • + . r , r. �, -+ • , -., � � ., .- � �� . • � � . .- � -r . � r � � • • � , � �. r � �- . � � r, . . -, � . ,- � � � r • • .- • , ; � � �- + • •, + � , r' r .; • • � -� , !. ... Neither Owner nor Contractor and its Subcontractors shall not be held responsible to the other for consequential, incidental, special, exemplary, punitive, or indirect damages, including, without limitation, liability for loss of production or use of the Facility, or loss of proiits or revenue, interest, product or business interruption, increased costs of operations and maintenance or staffing needs, however the same may be caused. The waiver in this Section does not apply to indemnity obligations for any third party claims concerning damage to property, bodily injury or death for which either Party owes the other an indemnity under Section 12.1 or to any liquidated Delay Damages or liquidated Performance Damages. • • . , (a) Contractor on behalf of itself, and its affiliates, successors, assigns, officers, directors, employees, and agents, agrees to indernnify Ovmer, Owner's Representative, and their respective successors, assigns, officers, directors, employees, and agents, from and against any and all losses, expenses, and damages, including any fines or penalties, that arise from or out of Contractor's or its Subcontractors' failure to comply with Applicable Law; provided, however, Contractor's sole obligations, if any, with respect to emissions and noise related to operation of the facility.shall be as provided in Exhibit (Guarantees and Performance Tests). (b) Owner on behalf of itself, and its affiliates, successors, assigns, officers, directors, employees, and agents, agrees to indernnify Contractor and its Subcontractors, and their respective successors, assigns, ofiicers, directors, employees, and agents, from �"I��� ������������ ���� ��� ;����� ����� �� ����,��� ����� ��a������ ���f�:��°���������� � �� �� �:�a������ ������ ��:��������V�������°����������t�,� ���°�:���������°�� ����i�� �������; �����£�� �������.�� �:��������i����� ���� �:������������ �������������� ��� ��°����°������°� ������ ��� �°��������.��� ��"°�"���� ��������a����� �'������ �����t��� ��`������ �������� ��'"�.� ��� �������� �������� ����� ����� �� �������m���� �"����� �W�������°��� �:��a����� �a�;��������w�� 55 EXHIBIT 3 and against any and all losses, expenses, and damages, including any fines or penalties, that arise from or out of Ovmer's failure to comply with Applicable Law. SECTION 12.8. Limitation of LiabilitY Except for (i) liability arising out of the fraud, gross negligence, willful misconduct of Contractar or (iii) liability arising out of Contractor's indemnity obligations as cantemplated by Section 121r Section 12.4, or Section 13.4(b) Contractor's aggregate liability shall not exceed of the Contract Price; provided, that the �i���Fc��t� liability of Contractar for any Delay Damages shall be limited in the aggregate to ���]��, of the Contract Price. �, � � � �11 ' • � + , r � • • '� During the term of the Agreement, Contractor shall have in place and comply with a drug and alcohol policy. Contractor's policy shall include: reasonable testing procedures. Further, Contractor is responsible for testing and other related casts, for providing required reports to any government agency, and, at Owner's request, Contractor shall make its policy and drug/alcahol testing statistics available to Owner's drug and alcohol testing program adrninistrators as identified by Owner from time to time. SECTION 13.2. Safety Materials Contractor agrees and warrants that all materials supplied by Contractor and articles and/or Work provided by Contractor in connection with the Work meet the safety standards established and promulgated under the Federal Occupatianal Safety and Health Act of 1970 and, if applicable, the Federal Motor Carrier Safety Act, or under any Applicable Law of a state in lieu thereof, for the protection of employees who will be affected by the use or performance of said articles and/or Work. Contractor shall comply with all federal, state, and local rules and regulations governing safety and the safe operation of commercial motor vehicles and the safe performance of the Work. Contractor's safety procedures and guidelines will be prepared and submitted to Owner thirty (30) days after the Effective Date. SECTION 13.3. Safety Precautions Contractor shall be solely responsible for initiating, maintaining and supervising all safety precautions and programs concerning the performance of the Wark in accordance with all Applicable Laws. Contractor shall pravide and be directly responsible for its own safety program for its employees and for the safe operation of its awn vehicles and equipment. Contractor shall ��`���� ��,���.������� ��� ������ �����: ������4� ��������� ���t�� �,���a�,���� ������� ������ � ��� �� ������������i��� ���������������������������� , ������������ ���1��� ������, ������� ���:����� ���������:��� ���:� �i������� �����:�������.��� ��� ;�������°��.����ffi �%i��� ��� ����������c�� ���°"�`��:��� ������:�t�������� ��,"���:��� �������� ����"1��1� ���. ��:��� ���.� � �� ����'�� ��'�. �;��� ��� ����� �� ����„�� ��� �"�.,,����°� �������� ���a����� ����:�������� 56 EXHIBIT 3 • - ., � � � , - . . . �-- � � -� , r; �- ; -� � : � � . • � • , . . , . �,, - •� � . � � • • � ' �� � • . • � - . � -. • � �' - �- � + � ' . � � �- �, � , �- -� � � . � .'' . � . , . � .�- -. .,;� r , � ►•- r � - �, .,- � ,.'. �• . . � -�� � - ' - � - � � -c � - r - - �. .;- � r - � •�� � .� . - • • � • ..�, - , � � - � � - ` � . .,'. � - • .� . - • ��- ` , �' . � -�� + . �-; • + � , . r . •' � , -� • i . ' .�r � -, • . r � r r' � • � � ' • � � ., � +. - . � .�� •� �' � � � • '• . � � + � . •' � ��- • � • - � � . �� . < � � �:� i i � � � � � , r' r �- � � . � � � r � + . •� � � � , �-. . �• � , � ,,� � . - . � � �-� r . • . � . � � • . •; < � � � � . �• , • �- � � � • • . �,• � r . `•• .� - � � . � . �� � _ � , .+- �� � - . � � �� .'' � . �r' . • • • • r- � ..� .' r, �- . -� �� . • � � � � �- � �� . - .' , « �. . '! � . � , - , ' � - � � , , � ,- . � � st • � � r:• '� r � . .*-♦ • � . -� - , � � , '� . � �r - r � • �- � . • -� -� w;- � . �• � • �� . �. . .w• ,,, � � . � �_ • � ,� •. . � . ' . • � , �- '� �' � + � . ' � . - � � •' . -� • . • � � . �' .'' -� � � ' . �' . � �� � .;• � , • , ' 1 ' ;I < � ''' �" � ! � 1 ' 1 �� ; 1 1- i 1' "' 1 , � , • ! ', 1- . . � � , . • � . 1 1 ' 1 . � � . � � . , � . � � '; 1 1 ' ' : ' 1 1 ' I I : � ' I ! � � � ' � � � � �"��.�� ������ ���� ����� ��� ��������� ���� �������� ���� ���������� ��t��6 ������ ����� �� ��������������, ����n�������������������a������ ���������a��������� �����1��° �������� ������� �������� ��������,���.a��� �����:� ��s���i�� ����`��m����i���� ��� ��.�����������f��� � � ������������a�1� �� "�"���� ����T��a��������� ��������� ����:����� ��������� ��:��� ���� �� ��� "l�l ����f�� ��� � �'�.�� ����� �����' �� ��m����°���� �'�°���� ����:�����°�� ��������. �������������°�� 57 EXHIBIT 3 SU C NT CT AN LEASE T T E ENVI N ENT Y ANY ACT ISSI N F C NT CT ANY SU C NT CT IN T E C U SE F PE F ANCE F T E (II) E EXISTING AT T E SITE AS F T E EFFECTIVE ATE T T E EXTENT T E L SS, LIA ILITY, CLAI , CAUSE F ACTI N, SUIT, A AGE, COST, ATTORNEYS' FEES, OR EXPENSE ARISES FROM A NEGLIGENT ACT ISSI N SULTING IN A LEASE BY CONT CTOR OR ANY SU C NT CT F AZA US ATE ALS I ENTIFIE IN T E C NT CT OCU ENTS AS EXISTING AT T E SITE IT GA T L CATI N, UANTITY, AN NATU , SUC T AT A REASONABLE CONTRACTOR OR SUBCONTRACTOR WITH THE SAME INF ATION UL AVE ACTE IFFE NTLY THAN C NT CT SU C NT CT AN UL AVE AV I E SUC LEASE (P OVI E, T AT, F T E AV I ANCE F U T, C NT CT 'S LIGATIONS UN E T IS SECTI N S ALL APPLY NLY T T E LEASE SULTING F SUC NEGLIGENT ACTS ISSI NS AN N T F T E P -EXISTING C N ITI N OF T E SITE), (III) E T E SULT F ANY INTENTI NALLY NGFUL R UNLA FUL ACT a� ISSI N F C NT CT ANY SUBCONTRACTOR. (c) iscovery of azardous aterials at Site. If, during the course of the performance of the Work, Contractor or �i.��y ������.����I'������x` ��r5����'��`� ���' t't,��.sc'��=�k�1;,� believe s it has discovered in, on ar under ����ry ����•t �1' t%sc ��t�:� g���� � 1�����'����� ����"� ��'�� ��r����� �1���x� l #���Y����i�� t����.��a�� t��trt ��'���r�t�•���1c��� ��� � �r��k���c���ti-�z�;i��� ���i� brc��i�;l�t 4:���1t°� �1�� �r�� ��j�,�z.��,�,� ���. ���������:,e�� ��� t�A����ira���.tic��• (c�r its Subcontractors) from materials brought ic� il�� �ii� l�� ['�irtr��c���a�; (c��• it� `��i���;c�i�����t��c�r��)� �`c�7�t�°�������� �;l���ll ��c•c������t��r ��c�ivi�;c ��i��:r ��i�cl ���all ��������� ��w��c��'� �3i�°��ti��t� wi�k� �°����c;�t ic� ���e:�� C Cr������cic��l� 1���lc�ial�;. Owner shall undertake the abatement and �i����s�[ cal' ����� 1 la����'c�c7��s ��xt�r"i�1� �����'�� at the Site which are encountered by Co����-����r��� ir� ili�; �����i���°r������c��. ��l` tl3€� 1�v'���`1�, �r�c� dispose of waste generated by the Facility c3����i�7�; �i�r'i-����r, t��iia��, �i�c1 c�l��:�'��i��� c'i` il'� Facility. ' (i) Contractor shall be �i�ti��u�6 t�� �. �'���x��;�. ��r°c�l��° l'�3�• �"����t�•���in� � �c��t� and schedule impacts resulting [i•��n ii� c��������z������ ��'���� �����{'�� �-�'i`�'��r���' pursuant to this Section 13.4(c). f�w��c� i� �•c�������il�l� fc��� tl�� c�e��i. ����� �����{�z�� necessary for removing Hazardo��� I�i����r•i��l� a�rcat k�r��ci�,l�t ��r�t�� �1��: `�rt� kay Contractor (or its Subcontractors) or not generated or produced by Contractor (or its Subcontractors) from materials brought to the Site by Contractor (or its Subcontractors). �"��� �:���°������� ������ �x��% ;��������������� ��������� �����% �.�.�������� ���"���°��������� �`����� �� ��������������,, ������������������-���������� �V����°��������, ��������m ����.���� ���.����� ������ ��������������a ��� ����������� ��������������� �� ������������°������� ��� �.��°����������� ��`"�'���� �:���������� ��� �"����� ����;��� ��������� �.. ��������'����1 ��� ������ ��������� ����� ������ �� ���°�������:�.� �`���� ������������� ��������., ������������°��� 58 EXHIBIT 3 (ii} To the extent Contractor encounters Hazardous Materials not introduced by Contractor, Contractor shall use reasonable efforts ta minimize the . consequences to the Project Milestone Schedule of dealing with such Hazardous Materials. (iii) Owner has disclosed or shall promptly disclose to Contractor as information becomes available (i) any reports, test results, public records and other sources of information known to Owner which show areas of Contamination at the Site and (ii) any other information related to the condition of the Site. Anything herein to the contrary notwithstanding (but without limiting liability Contractor may have under Sections 13.4(b) or 13.4(d)(iii)), title to, ownership of, and legal responsibility and liability for any Contamination shall remain with Owner. Owner shall, at Owner's sole expense and risk, arrange for handling, storage, transportation, treatment and delivery for disposal of Contarnination. Owner shall be solely responsible for obtaining a disposal site for such material. Contractor shall not have or exert any control over Owner in Owner's obligations or responsibilities as a generator in the storage, transportation, treatment or disposal of any Contamination. Owner shall complete and execute, in accordance with Applicable Law, any required governmental forms relating to regulated activities, including, but not lrmited to, generation, storage, handling, treatment, transportation, or disposal of Contamination. In the event that Contractor executes or completes any required governmental forms relating to regulated activities, including, but not limited to, storage, generation, treatment, transportation, handling or disposal of Hazardous Materials (other than in connection with Contractor's responsibilities under Section 13.4(a)), Contractor shall be and be deemed to have acted as Owner's agent. Owner shall indemnify, defend, release and hold Contractor, its Affiliates, and their respective ofiicers, directors, agents and employees harmless from all costs, liability, damages and penalties assessed against or paid by Ovvner or Contractor resulting from Contamination other than costs, liability, damages and penalties for which Contractor provides indemniiication pursuant to Section 13.4(b). (d} Contractor's esponsibility. Contractor shall be responsible for the handling, managernent, treatment, storage, removaly TPiIY1P�Ia6IOny avoidance, or other appropriate action (if any}, with respect to any Hazardous Materials present at, on, in or under, or migrating and/or emanating to or from the Site, that: (i} were braught or caused to be brought on to the Site and released to the environment by any act or omission of Contractor or any Subcontractor in the course of performance of the Work; (ii} were brought to the Site or caused to be brought to the Site by Owner for Contractor's use in the performance of the Work and that are released to the environment by any act or omission of Contractor or any Subcontractor in the course of performance of the Work; or (iii} were the result of any intentionally wrongful or unlawful act of Contractor or any Subcontractor. Notwithstanding the provisions of clause (i) of this Section �� �i� �:����� ��� ���� ��t� ��,���:.�������� l����,��� ���� ��a���i�t ��ri���r�����;�� � �� i�° �..����f�����t����� ��� ���r��,°���I�—��r��Y��i��,� ������°���;��rW��� ����.����° �����1��� ������.�m �������� ���� ����z�i�� ������ ��������� i�������;����a� ��� ����za����� ����� ��� ���°������������ ��� �C'`�a��� ���a���� ��r��; �;r����, ���,���r� ����1���, ���� � ���.� �,���� � � �� ��� ����� �������� ����:� �����„�g ��� ������,������� ��°�:.� r��� ����:� �'� ���: ���v����a�;���m�:..R � EXHIBIT 3 13.4(d), Contractor shall not be liable for any Hazardous Materials brought, or caused to be brought, to the Site by Contractor that are released to the environment by the willful or intentional act or omission of Owner. A TICLE XIV SECTION 14.1. Contractor's Insurance Prior to commencemeni of the Work, Contractor shall obtain the insurance set forth below and all insurance that may be required under the applicable laws, ordinances and regulations of any governmental authority. Review of the Contractor's insurance by Owner shall not relieve or increase the liability of Contractor. SECTION 14.2. Covera�e Without limiting any of•the liabilities or other obligations of Contractor under this Agreement, including, but not limited to, Article XII 66Liability99y Contractor shall obtain and maintain in effect minimum insurance coverages, at its sole expense, as set forth belaw, with carriers reasonably acceptable to Owner, until all the obligations under this Agreement are satisfied, the following insurance policies providing coverage protecting against claims for personal and bodily injury or death, as well as claims for third party praperty damage which may arise from operations in connection with the Work whether such operations are by Contractor or any Subcontractor: (a) Workers' Compensation Insurance. Statutory workers' campensation insurance, in accordance with statutory provisions covering accidental injury, illness or death of any such employee while at work or in the �c�ca ��, of his or her �-x��������a��� ��t; with such entity, and employer's liability with bodily injury for each accident, bodily injury for each employee by disease and policy limit by disease. Such insurance shall nat include any occupational disease exclusions. (b} Corn ercial General LiabilYty Insurance, or the equivalent third party li�:tt�ilit�° insurance �ur��:�°���;� written on an occurrence basis with a limit of li�i����iv of per occurrence and in the aggregate. This policy shall include coverage for bodily injury liability, broad form property damage liability, blanket contractual, products liability, products/completed operations, premises/operations, explosion, collapse, underground hazards, and independent contractors and Subcontractors. Such insurance coverage shall not include exclusions for punitive or exemplary damages where insurable under law. °�"`���� ��:��� ���� ����� ;��� ����`���a�������� �����°��� ����` �;��������� ������°�������� �-��� �� �������:��������� �� �w������,��1���������������, ��.,� ���t��� �����l��ag ���.���z� Z������ ������ �� ��������%�� ���� f����������. ��������������� ��� ������������ �� ��� �������������� �a�'°C'��:�� �������T��������. �:;��:��� �������� ��"������� ���. ���� ��;�� � ��� ������� �°��.� �`�� �:���� ���� ��� ���°�������s� �"�� �ry���������� �a����l��� ������������� 60 EXHIBIT 3 c Automobile l�i�t��l��,� I�s�.����r�y��, with a limit of '11 �! ,�I ,' ,I per accident and in the aggregate for the policy period with respect to Contractor's vehicles whether owned, hired, or non-owned, assigned to or used in the performance of any Work required to be performed by Contractor pursuant to the Contract Documents. d Contractor's Pollution Liability, with a_limit �' 'i� � � l i �� ' written on a per occurrence basis and in the aggregate. (e) Professional Liability. Professional 1.����ility Insurance with a limit of __ p _ _ er claim and in the aggregate for the palicy period. This policy shall include coverage for all design and engineering services provided hereunder by Contractor. (� Excess Liability. Excess Liability Insurance on an occurrence basis and providing cover in excess of the underlying insurance described in paragraphs (a) (with respect to only Employer's Liability Insurance}, (b) (with respect to Commercial General Liability Insurance), and (c) (v��itl� rt•�����.�t !�� �����ii-��s� 1�ut�rr����.�il� l,iability Insurance) with a limit per occurrence c�t` and in the aggregate. Such insurance coverage shall include a drap down pravision in the event of exhaustion of underlying limits or aggregates and apply on a following form basis to the primary coverage. The amounts of insurance required in the foregoing paragraphs (a), (b) and (c) and this excess insurance section (e} may be satisfied by purchasing coverage in the amounts specified or by any combination of primary and excess insurance, so long as the tatal amount of insurance meets the requirements specified above. (g) Endorsements and Other Requirements. (i) Additional Insured. To the extent of Contractor's indemnity obligations contained herein, Owner, its affiliates, successors, assigns, directors and ofiicers, any lender providing Owner with financing for the Facility shall be included as additional insured(s) with respect to the insurance coverages described in Section 14.2 except for Workers' Compensation and Professional Liability insurance coverages. It shall be understood that any obligation imposed upon the Contractor, including, but not limited to, the obligation to pay premiums, shall be the sole obligation of the Contractor and not that of Owner. (ii} Waiver of Subro ag tion. Except for Professional Liability, insurers shall waive all rights of subrogatian against Owner, its affiliates, successors, assigns, Owner's officers, directors, agents and employees, as well as Owner's parents and affiliated or associated companies, lenders providing Owner with r� i� ��a�:��rat���� ���� ����r ��t����z������� ������`� ������� �,�������r� ����r° �������� � �� �� �::������������� �� �r�� .��°������1�������i����� ���°�� �°�������� ����i��° ���� ���,� , ���� �r�:i��� �:����� ������%� �x�� �������;,���Z ������a������:�� i�� ���°a�x���� �� ������� ��� ������i����r�� ���°`��"���� �������°������f �'"� ����,� �����.����� ����1. �� ���� � ���� ���8� � �� �����.������° ���e � �� �� ���� � �� ��� ���a��������� �°�°���� �� �.�������� ������1�� �������a� �°�� 61 EXHIBIT 3 i �� ,� � , ��� � � , • � - • � � . � - �� . ��� !� � . � •� -� r � • �. . '• '� �� � (iii) Severabilitv of Inter _e__st. The liability insurance specified in this Section 14.2 (b), (c), and (e) shall state that, with respect to coverage of more than one insured, all terms, conditions, insuring, agreements and endorsements, with the exception of limits of liability, shall operate in the same manner as if there were a sepaxate policy covering each insured. (iv) PrimarX and Non-Contributorv. To the extent of Contractor's indemnity obligations contained herein, the liability insurance specified in this Section 14.2 by the Contractor that provides additional insured coverage shall be primary insurance. Any other insurance carried by the Owner shall be excess and not contributory with respect to the insurance required hereunder. •' � r • �; � � r•- • . .. , • �� . ��. _. .. ,' � - ,. -, -� � . • , � � �; +- � - •; � ' � r -� � - .; � • � r • � • •� � , r . • - . -. • .r - - • • -� _ ., � � , '• . , � . , �+ r , � . �� . -� � • � , � . • � + � � �. -� •. ,� ,� . , . � ► r � � , r -� , � �. � , .��; � -• �', �- r� + +� '' � . -� . ,�� � . -r • - � . � r; �-; �. *. �, - �- • , , - • � � �- r; � - . �- � . , • ► , r � . � ' � . '• . .- . � - � - , . � . • . � . . ` -. -� � � �� ����� � .� ; � � - �� • ►� � . (a) Builder's All Risk. Contractor shall provide builder's all risk insurance covering the Work in a form and in an amount covering the total completed project replacement value which shall cover the interests of Owner, Contractor and its Subcontractors of all tiers, until the earlier of Substantial Completion or the conditions set forth in Section 14.4(b). Deductibles under such builder's all risk insurance shall be for the account of Contractor or Ovmer in accordance with their responsibility for the loss. Deductibles under such builder's all risk insurance not caused by either Party shall be for the account of Owner. Deductibles for builder's all risk insurance shall not exceed - unless mutually agreed by the Parties or not commercially available. Said coverage shall include coverage for terrorism (including domestic terrorism). "�``���� �:������������ ���� ���� �������������� ���;���� ����� ���������� ����:����������� �; �� a� ��������������� ����� ���������i������,��-������ ���°�������;��°��'� ��e��l��° �������� ��������ry ��i���� ����������a���� ���� ��������.��� �����°�������� ��� �������°����,� �°���� �:�� ������������� �� ���.��� �����m������� �.°���� ������:��� �� �.���� ��������� ���.� �� �������� �������j ���.� ���� �:�� �������:.��:� ������ �������°��� ������i� �:������������ C� EXHIBIT 3 (b) Property Insurance. Fram and after Substantial Completian, or the date that Owner takes care, custody and control of the Facility or any part thereof, Owner shall maintain property insurance for the Facility or applicable part thereof. (c) Endarsements and Other Requirements. (i) Waiver of Subro ag tion. Insurers providing coverage pursuant to Section 14.4(b) shall waive all rights of subrogation against Contractor and its Subcontractors of all tiers and their officers, directors, agents and emplayees, as well as Contractor's parents and affiliated or associated companies and each of their respective officers, directors, agents and employees, the Owner, its subcontractors and, where required by contract, any other party as requested by Owner or Contractor. (ii) Severabilitv of Interest. The insurance specified in paragraph (b) of Section 14.4 shall state that, with respect to coverage of rnore than one insured, all terms, conditions, insuring, agreements and endorsements, with the exception of limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. (iii) I���rj���r�^�_and Nc����-C'���at��il���tc��°�r, The insurance specified in paragraph (b) of Section 14.4 by Owner shall be primary insurance. (iv) Named Insured. Owner, Contractor and its Subcontractors shall be named insured(s) with respect to the builder's all risk insurance coverage described in Section 14.4(a). SECTION 14.5. Creneral Requirements (a) All insurance required to be maintained by Contractor and Owner pursuant ta this Agreement shall be written with an insurer or insurers (authorized to do business in the State of Texas and with a minimum A.M. Best rating of A-VIII). (b) Each Party shall furnish the other Party a completed certificate of insurance that specifically requires that such insurance will not be canceled until tlie expiration of at least thirty (30} days (to the extent obtainable under commercially reasonable terms) (or ten (10) days in the case of cancellation due to non-payment of premiums) after written notice of such cancellation has been received by the other Party. Contractor shall provide such certificate and at Owner's request, Owner shall, subject to a confidentiality agreement, have the right to review the corresponding final policy binders prior to commencing the Work. Owner shall provide such certificate upon issuance of a Notice to Proceed. Each Party shall notify the other Party at least thirty '����� ������ ��� ����� ��� ������; ������� ��������� : ��° ������i� ��f�a����������� ���� �� �.������������, ��r������°�.�����������a����� ������°���;.���� �����'�� �������. ���a���° ��������y° ����������i�� ���� ������r��:��� r���`��°�������a� ��� ��„���������� ���; ��i� ��a�����a�� �t'�`���� ������°r�����;���� �`����� ��������� ���.����, ����1. �� ��;��1��� ������ ��;i���°��� � �� ����� �� � ������:.��� �"����� r����.��r°�� ���� ��� ���°I�������� 63 EXHIBIT 3 1 �, � � • .; � . � . . +- .�•, +�;` � � r� �• • �-� � � � ', �- ,. r � . , � , . R. � � . � � • " , • �- .' + , • � . r� • � •- � -, � � � r , � � . � . � � � - �- ,, !� + * � ;' �, -� � . � � � - • . , � - �- r, � .� � �; � , • � � - -�r , , � . � �r- . � r •, r � � • � � • • �.-' , , �� , r -� �� �. . �� • . a • . ' .' � � .' � � . �, � • . • �; . • � � ' � .; ' 1 ' ' � , ' 1' • ., ! •' � '. 1- ' �� � • •' ' • , " � •" � � � �' � , . �- '� ,� � •r ! •' �' � � �# � �'-' � ` r' � ' ' • � �- ! ! . � •' !, . '. '#' � 1 �"1 �, � � � � � -r� � �- �l,, 1 �' � . � a � � � `�• � � •�' f,' '�'� • � � 1` / � �" " • ��" � ,• ', ! ' • , ' • • !' . � . � ��' � � � '� • � + . � .I � s! - s ' � � � i, � � !' � � � � � +' 1' ' � �; � � ' a �r �' • � �'` � �- •, ,- � � ��'��� � ,,� ! � ' e � �' � f •'t " ! � 1 t ��'- ' ' �; ' � " � � • � ' � � • � �'' •'' •' � � � � s �� 1 � •�' �' � 1 r - �, � �- � � • � • � � �; . 1 � �' � � ' �!' � s a ,, � " � ,,�" � � • � � r ' +� � � � �' � •'• �' • �' � � .' '� ��' �• � ��',` � � •'' ►'! �' � � �'� ' •I � ' � � r ' � �- � � � �� � '1 •' •• • �1,,. � � r � � � _ + ' � r �, � � � � " • �' I • � ' 1 ' � � f . !' ; - � - ' ! � � � •' � � � ' � • � � �" � 1 � � • �"l � .' � •�'I � � � � ' � � � �. ! �' � e • s �', " �� '' � � �� � '� � ', � •, , ,`, ' • � � • � '�' �� � s - � ! f. ' � • �' � � • � -*� � - � '� � � � �- ! � •� ! � � ' � � 1� ��', '� � � • !' °����� ������.������� ��� ���f ������������� �:���°���a ����� ��:������� �r�t�� ������ ����� �� ������������;��� �;������,�°�������������������� . �������������� �.�a�:�1���� ������a� �����r��° �a������ �:�������������� �:����.� ��������,���� ��������������� ��� �������.��������� ���: ��°��������� ���""�"��.��� ���g�����������: ���.���� ���°������ ���µ��l� ���zv1���� ��`�.���� ������� ���.��"�� ����� ���;�� ��� ��T��,��°���� �"������ ��������ry��� �a������° ������������� 64 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 EXHIBIT 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1114,Version:1 Agenda Information Sheet DEPARTMENT:Denton Municipal Electric CM/ ACM:Howard Martin Date:September 13, 2016 SUBJECT ConsiderapprovalofaresolutionoftheCityCounciloftheCityofDenton,aTexasHomeRuleMunicipal Corporation,electingfortheCitytohavetherighttocontinuedperformanceofservicesprovidedbytheTexas MunicipalPowerAgency,amunicipalpoweragency,undertheprovisionofthepowersalescontract,as amended,fortheusefullifeofthesystem;directiontotheinterimCityManager,orhisdesignee,toprovide written notice of this election to TMPA; and, providing an effective date. BACKGROUND This matter will be addressed by both staff and the City’s attorney in closed session. OPTIONS Deny RECOMMENDATION Approve as presented. EXHIBITS Resolution. Respectfully submitted: Phil Williams General Manager Prepared by: Larry Collister Deputy City Attorney City of DentonPage 1 of 1Printed on 9/9/2016 powered by Legistar© RESOLUTION NO. R2016- _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, A TEXAS HOME RULE MUNICIPAL CORPORATION, ELECTING FOR THE CITY TO HAVE THE RIGHT TO THE CONTINUED PERFORMANCE OF SERVICES PROVIDED BY THE TEXAS MUNICIPAL POWER AGENCY, A MUNICIPAL POWER AGENCY, UNDER THE PROVISIONS OF THE POWER SALES CONTRACT, AS AMENDED, FOR THE USEFUL LIFE OF THE SYSTEM; DIRECTION TO THE INTERIM CITY MANAGER, OR HIS DESGINEE, TO PROVIDE WRITTEN NOTICE OF THIS ELECTION TO TMPA; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, the Texas Municipal Power Agency ( “Agency”) has heretofore been created and established as a municipal power agency by the cities of Bryan, Denton, Garland, and Greenville, Texas (the “Member Cities”); and WHEREAS, the Agency and Member Cities entered into a Power Sales Contract (as amended, the “PSC”) on September 1, 1976 for purposes of the Agency generating, transmitting, and selling electric power and energy to the Member Cities, and the Member Cities purchasing electric power and energy from the Agency; WHEREAS, the Agency and Member Cities amended the PSC, effective September 26, 1989, November 5, 1997, June 24, 2010, and August 29, 2013; WHEREAS, the Member Cities, provided an election is made to do so, shall have the right to the continued performance of services provided under the PSC for the useful life of the System (“System” being defined in Section 2 (s) of the PSC) by giving written notice to the Agency of said election by no later than September 30, 2016; and, WHEREAS, the City Council of the City of Denton (“City) finds that it is in the best interest of the citizens and electric ratepayers of the City to elect for the City to have the right to the continued performance of services provided under the PSC for the useful life of the System; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON RESOLVES: SECTION 1. The recitals which are set forth in the preamble of this Resolution are incorporated herein and are made a part of this Resolution for all purposes. SECTION 2. Pursuant to the requirement of “Section 19: Continuation of Services” of the PSC, the City Council of the City of Denton elects for the City of Denton to have the right to the continued performance of services provided under the PSC for the useful life of the System; SECTION 3. The Interim City Manager, or his designee, is directed to deliver a certified copy of this Resolution to the Texas Municipal Power Agency on or before September 30, 2016; and 1 SECTION 4. This resolution shall take effect immediately from and after its adoption. PASSED AND APPROVED this the _____ day of ________________, 2016. _______________________________ CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _________________________________ 2 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1213,Version:1 Agenda Information Sheet DEPARTMENT:Finance ACM:Bryan Langley Date:September 13, 2016 SUBJECT ConsideradoptionofanordinanceoftheCityofDenton,TexasamendingtheFiscalYear2015-2016Budget andAnnualProgramofServicesoftheCityofDentontoallowforadjustmentstotheElectricFundoftwenty threemillion($23,000,000)forthepurposeofmakinginitialpaymentsforconstructionofaquickstartelectric generationfacility;declaringamunicipalpurpose;providingaseverabilityclause,anopenmeetingsclauseand effective date. BACKGROUND City staff is proposing to amend the City’s Electric Operating Fund FY 2015-16 Budget as follows: IncreasetheElectricOperatingFundbudgetby$23,000,000inordertomakeinitialpaymentsduein Septemberfortheconstructionofaquickstartelectricgenerationfacility.Theseinitialpaymentsfromthe ElectricOperatingFundwillbereimbursedfromtheproceedsoftheUtilitySystemRevenueBonds,Series 2016.ItisanticipatedthattheclosingofthesebondswilloccurinOctober,2016.Alloftheconstructioncosts (initialpaymentsandfuturecosts)forthequickstartelectricgenerationfacilitywillbepaidfromthebonds. TheamendmentisnecessaryduetothetimingvariancebetweentheinitialpaymentinSeptemberandthe receipt of bond proceeds in October. PRIOR ACTION/REVIEW (Council, Boards, Commissions) OnSeptember12,2016,thePublicUtilitiesBoardwillconsiderapprovaltoforwardthisitemtotheCity Council for consideration. FISCAL INFORMATION ThisordinancewillamendtheFY2015-2016BudgetandAnnualProgramofServicestoallowforan adjustment to the Electric Fund of $23,000,000increasing appropriations from $175,753,887 to $198,753,887. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1213,Version:1 Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:1.1 Manage financial resources in a responsible manner EXHIBITS 1.Ordinance Respectfully submitted: Chuck Springer, 349-8260 Director of Finance Prepared by: Nancy Towle Budget Manager City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1068,Version:1 Agenda Information Sheet DEPARTMENT:Finance ACM:Bryan Langley Date:September 13, 2016 SUBJECT Holdasecondpublichearingonaproposaltoadoptataxrateof$0.684750withamaximumallowablerateof $0.689750 per $100 valuation, which will exceed the lower of the effective or rollback tax rate. BACKGROUND TheTexasConstitutionandTexasPropertyTaxCoderequiretaxingunitstocomplywithspecificguidelinesin adoptingtaxrates.Theguidelinesarerelatedtoaconceptknownastruth-in-taxation.Thisconceptisawayto maketaxpayersawareoftaxrateproposalsandallowtaxpayersincertaincircumstances,torollbackorlimita tax increase. Thetruth-in-taxationguidelinesrequiretaxingentitiestocalculateandpublishtheireffectiveandrollbacktax rates(Exhibit1-NoticeofProposedTaxRate).Theeffectiverateisthecalculatedratethatwouldprovidethe taxingunitapproximatelythesameamountofrevenueitreceivedinthepreviousyearonpropertiestaxedin bothyears.Thisrateexcludestaxesonpropertiesnolongerinthetaxingunitandalsoexcludesanygrowthdue to new property values. The City of Denton’s 2016 effective rate is $0.663366/$100 valuation. Therollbackratedividesthetotalpropertytaxrevenueintosupportformaintenanceandoperations(M&O) taxesanddebtservicetaxes.Itprovidesapproximatelythesameamountofrevenueasinthepreviousyearfor maintenanceandoperationsexpenses,plusanextraeightpercent,plusthenecessarydebtservicetaxrate.Ifa taxingunitadoptsataxratehigherthantherollbackrate,thevotershavetheoptiontopetitionforanelectionto limit the size of the tax increase. The City of Denton’s 2016 rollback rate is $0.720790/$100 valuation. The City Manager’s FY 2016-17 Proposed Annual Program of Services recommends a tax rate of $0.684750 per $100 of valuation, and this rate is $0.021384 above the effective rate. Since the City of Denton’s proposed tax rate exceeds the effective tax rate, two public hearings are required to take place prior to the budget adoption. In compliance with state law, staff published the Notice of Proposed Tax Rate in the Sunday, August 14, 2016, issue of the Denton Record Chronicle. In addition to the newspaper publications, the notice was posted on the City’s Web site,<http://www.cityofdenton.com> and the public access channel. ESTIMATED SCHEDULE OF PROJECT September 20, 2016Adopt Tax Rate and Approve FY 2016-17 Annual Program of Services City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1068,Version:1 PRIOR ACTION/REVIEW (Council, Boards, Commissions) OnAugust4,2016,theCityCouncilwasprovidedwithdetailedinformationregardingtheFY2016-17 Proposed Annual Program of Services including the proposed tax rate. OnAugust9,2016,theCityCouncildiscussedtheproposedbudgetandvotedtoplaceaproposalonthe September 20, 2016 City Council agenda to approve a tax rate above the effective rate. On August 16, 2016, the City Council discussed the proposed budget in work session. OnAugust23,2016,theCityCouncildiscussedtheproposedbudgetinworksessionandheldthefirstpublic hearing on the tax rate in regular session. FISCAL INFORMATION In the FY 2016-17 Proposed Budget, a tax rate of $0.68475 per $100 valuation is recommended. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:1.1 Manage financial resources in a responsible manner EXHIBITS 1.Notice of Proposed Tax Rate 2016 2.Presentation Respectfully submitted: Chuck Springer, 349-8260 Director of Finance Prepared by: Antonio Puente, Jr. Assistant Director of Finance City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© NOTICE OF 2016 TAX YEAR PROPOSED PROPERTY TAX RATE FOR CITY OF DENTON A tax rate of $0.689750 per $100 valuation has been proposed for adoption by the governing body of the City of Denton. This tax rate exceeds the lower of the effective or rollback tax rate, and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. The governing body of the City of Denton proposes to use revenue attributable to the tax rate increase for the purpose of paying maintenance and operation expenses, and debt service. PROPOSED TAX RATE $0.689750 per $100 X RATE $0.689750 per $100 EFFECTIVE TAX RATE $0.663366 per $100 ROLLBACK TAX RATE $0.720790 per $100 The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the City of Denton from the same properties in both the 2015 tax year and the 2016 tax year. The rollback tax rate is the highest tax rate the City of Denton may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate. YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS: property tax amount = ( rate ) x ( taxable value of your property ) / 100 For assistance or detailed information about tax calculations, please contact: Michelle French Denton County Tax Assessor-Collector 1505 E. McKinney Street, Denton, TX, 76209 940-349-3500 Property.Tax@dentoncounty.com http://tax.dentoncounty.com You are urged to attend and express your views at the following public hearings on the proposed tax rate: First Hearing: 6:30 p.m. on August 23, 2016 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 Second Hearing: 6:30 p.m. on September 13, 2016 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 16-1069,Version:1 Agenda Information Sheet DEPARTMENT:Finance ACM:Bryan Langley Date:September 13, 2016 SUBJECT Hold a public hearing and receive citizen input on the FY 2016-17 Proposed Budget. BACKGROUND The City Charter and State Law require that prior to budget adoption, a public hearing be conducted to allow citizens the opportunity to provide input on the Proposed Budget. The required notice of the public hearing was published August 14, 2016, in the Denton Record Chronicle. The notice was also posted on the City’s Web site,http://www.cityofdenton.com <http://www.cityofdenton.com> and on the public access channel. A copy of the published notice is provided for reference. ESTIMATED SCHEDULE OF PROJECT September 20, 2016Adopt Tax Rate and Approve FY 2016-17 Annual Program of Services PRIOR ACTION/REVIEW (Council, Boards, Commissions) The FY 2016-17 Proposed Budget was submitted to the City Council on July 31, 2016. A City Council Budget Workshop was held on August 4, 2016, and the City Council also discussed the Proposed Budget at their August 9, 16 and August 23 meetings. Copies of the Proposed Budget are available to the public at any City of Denton library branch, and an electronic copy of the document is available on-line through the City’s Website, <http://www.cityofdenton.com>. FISCAL INFORMATION The2016-17ProposedBudgettotals$1,189,679,131inestimatedresourcesand$1,185,600,124inestimated expenditures. STRATEGIC PLAN RELATIONSHIP TheCityofDenton’sStrategicPlanisanaction-orientedroadmapthatwillhelptheCityachieveitsvision. Thefoundationfortheplanisthefivelong-termKeyFocusAreas(KFA):OrganizationalExcellence;Public Infrastructure;EconomicDevelopment;Safe,Livable,andFamily-FriendlyCommunity;andSustainabilityand City of DentonPage 1 of 2Printed on 9/9/2016 powered by Legistar© File #:ID 16-1069,Version:1 EnvironmentalStewardship.WhileindividualitemsmaysupportmultipleKFAs,thisspecificCityCouncil agenda item contributes most directly to the following KFA and goal: Related Key Focus Area:Organizational Excellence Related Goal:1.1 Manage financial resources in a responsible manner EXHIBITS 1.Notice of Proposed Budget 2016 Respectfully submitted: Chuck Springer, 349-8260 Director of Finance Prepared by: Antonio Puente, Jr., Assistant Director of Finance City of DentonPage 2 of 2Printed on 9/9/2016 powered by Legistar© Publish in August 24, 2016 Denton Record Chronicle NOTICE OF PUBLIC HEARING ON BUDGET The City Council for the City of Denton, Texas, will hold a public hearing on the Fiscal Year 2016-17 Annual Program of Services (Budget), on Tuesday, September 13, 2016 at 6:30 p.m. in the City Council Chambers at City Hall, located at 215 East McKinney Street in Denton, Texas, 76201. The meeting will be held for the purpose of receiving community input on the Budget. THIS BUDGET WILL RAISE MORE TOTAL BY $4,432,430 OR 7.59% AND OF THAT AMOUNT $1,428,995 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR. All interested citizens are encouraged to attend and express their views.