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
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