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1993-100"b:\settle.o ORDINANCE NO. 3 _/00 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND AUTH- ORIZING THE CITY MANAGER TO EXECUTE A SETTLEMENT AGREEMENT BETWEEN THE CITY OF DENTON AND GREEN SPRINGS WATER SUPPLY CORPORATION; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the attached Settlement Agreement between the City of Denton and Green Springs Water Supply Corporation, provid- ing for the settlement of the matter now pending between the par- ties before the Texas Water Commission is approved in accordance with its terms, and the City Manager is hereby authorized to exe- cute same on the City's behalf. SECTION II. That this ordinance shall become effective immedi- ately upon its passage and approval. PASSED AND APPROVED this the day of , 1993. BOB CASTLEBERRY, ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: THE STATE OF TEXAS § S COUNTY OF DENTON $ SETTLEMENT This Settlement Agreement ("Agreement") concerning the Application of the City of Denton ("Denton") for an Amendment to Certificate of Convenience and Necessity ("CCN") No. 10195, the Application of Bolivar Water Supply Corporation ("Bolivar") for an Amendment to CCN No. 11257, and the Application of Green Springs Water Supply Corporation ("Green Springs") for an Amendment to CCN No. 11480, is made and effective on the later of the dates shown by the parties' signatures below, by Denton and Green Springs under the terms and conditions hereinafter set forth: WITNESSETH: WHEREAS, Denton has filed an Application for an Amendment to CCN No. 10195, Bolivar has filed an Application for an Amendment to CCN No. 11257, and Green Springs has filed an Application for an Amendment to CCN No. 11480, all of which applications are currently pending before the Texas Water Commission ("Commission"). WHEREAS, all of the amendment applications seek to provide water service to customers within the area designated within the double black line on the map attached hereto and incorporated herein as "Exhibit A" ("the Contested Area"). WHEREAS, Green Springs is currently providing water service to customers within part of the Contested Area pursuant to authority granted by the Commission in CCN No. 11480. 1060\002-002.AGT 1 WHEREAS, Green Springs- has outstanding debt in favor of Farmers Home Administration ("FmHA"), as evidenced in the attached "Affidavit of Debt," attached hereto and incorporated herein as "Exhibit B." WHEREAS, 7 USC 1926(b) provides that the service provided by a utility with outstanding debt in favor of FmHA shall not be curtailed by the inclusion of the area served within the boundaries of a municipal corporation or other public body, or by the granting of any private franchise for similar service within such area during the term of the loan. WHEREAS, Denton and Green Springs desire to resolve any conflicts regarding the territories they will serve by agreement, rather than through the administrative hearing process, which could cost their respective customers considerable time and money. NOW THEREFORE, it is hereby agreed by the parties hereto that: 1. Green Springs' single certification under CCN No. 11480 shall be unaffected by this Agreement. The extent of CCN No. 11480 is as shown on the map attached hereto and incorporated herein as "Exhibit C." 2. Within seven (7) days of the effective date of this Agreement, Green Springs shall notify the Commission of its withdrawal of its application for an amendment to CCN No. 11480, which application seeks to amend Green Springs' CCN to include the Contested Area. 3. Green Springs shall support Denton's application for single certification to the Contested Area, pursuant to Denton's application for an amendment to CCN No. 10195. 4. If Denton is granted an amendment to CCN No. 10195 which includes the Contested Area, Green Springs may refile its 1060\002-002.AGT 2 application for an amendment to CCN No. 11480 to include the Contested Area as dually certificated to Green Springs and Denton, and Denton hereby agrees not to file a protest with the Commission or take any action whatsoever to oppose the granting of the CCN amendment to Green Springs. 5. Green Springs agrees that if the Commission subsequently grants Green Springs a CCN amendment to expand CCN No. 11480 to include the Contested Area, resulting in the dual certification of the Contested Area to both Denton and Green Springs, Green Springs will not assert 7 USC 1926(b) as a bar to Denton's provision of water utility service within the Contested Area. 6. Green Springs further agrees that any facilities which Green Springs installs within the Contested Area pursuant to a grant of an amendment to CCN No. 11480, and after a final Order is issued by the Commission in Docket Nos. 9824-C and 9447-C, shall conform to Denton's city code specifications, provided that the Order shall grant Denton the authority to serve water customers within the Contested Area. 7. This agreement may be modified or amended prior to issuance of a final Order by the Commission in Docket Nos. 9824-C and 9447- C only by written instrument, executed by all the parties hereto. If Denton is not granted an amendment to CCN No. 10195 which includes the'Contested Area, this Agreement shall be null and void. 8. If any provision of this Agreement or the application thereof to any entity or circumstances shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other entities or circumstances shall not be affected thereby and they shall be enforceable to the greatest extent permitted by law. 1060\002-002.AGT 3 ~4 GD EHD:1.AU,aUSTIII 9. This Agreement contains the entire agreement ketween the parties hereto relative to authority to provide water service within the Contested Area, and there are no verbal agreements concerning this matter between the parties hereto. IN WITNESS WHEREOF, Denton and Green Springs have executed this Agreement on the dates shown below. Date: (r "l " 2.53 CITY OF DENTON, TE= Bob 'Castleberry,, ry, 7C ATTEST: Aj§nniyr- Walters, ity cretary APPROVED AS TO LEGAL FORM: Debra A. Dr yovitch, City Attor y Date: ~3 l y 9~ ATTEST: Se eta GREEN SPRINGS WATER SUPPLY CORPORATION Mike Mays, Presid 11 ioso\aoz.ooz.AGT 4 L '•a I c cD tD JJ to c \ N . \ 1R~~,1 ~ NLL JER -1 - s `dam 'sue • . . 0 1 ~ • J rant f O N ~ G / i IP co Cu oCO , i LID N ~ e`! r z` ~ _ Gee N ? i W V I 2 ` 0 ~ L z Exhibit A ti low oll i to ` V N 10 1 i O