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19-043DRIINANCE NO. 19-045 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING TH EXPENDITURE OF FUNDS FOR PAYMENT BY THE CITY OF DENTON FOR TH OPERATION AND MAINTENANCE FEE FOR WATER STORAGE AT LAKE LEWISVILL AND LAKE RAY ROBERTS TO THE U.S. ARMY CORPS OF ENGINEERS; AN 1 PROVIDING AN EFFECTIVE DATE (WATER STORAGE O&M FEE IN THE TOTA AMOUNT NOT TO EXCEED $123,000). WHEREAS, on or about August 15,1980, the City of Denton ("City") contracted in perpetuity with the U.S. Government for the use of water storage in Lake Lewisville and Lake Ray Roberts Lake for the municipal water supply (pursuant to 43 U.S.C. 390(b) (the "Water Supply Act"); and WHEREAS, the Water Supply Act requires that all annual operation, maintenance, and replacement costs for municipal water supply storage are reimbursed on an annual basis by the City to the U.S. Government, Army Corps of Engineers and therefore the City of Denton is required to pay the fees set forth in Exhibit A; and WHEREAS, the City Manager recommends that the City Council approve and authorize the yzy.-Arvmif, tk ie-se-reAv ired fees f* r w2ter st*r;-.gg *yP.r?&*ns 9 xt mo i:kw-x9.xce at L,?.ke L and Ray Roberts Lake; NOW, THEREFORE SECTION 1. That the expenditure of funds in the amount not to exceed $123,000 to be [�,,aid to the U.S. Government, United States Army Corps of Engineers shown in Exhibit A, which is attached hereto and made a part of this Ordinance for all purposes, is hereby approved. SECTION 2. The City Manager or his designee is hereby authorized to pay invoices related to the Water Storage O&M fee pursuant to this Ordinance and to take any actions that may be required, or permitted to be performed by the City of Denton. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. The motion to approve this Ordinance was made by ... _jand seconded by mm„the Ordinance was passed and approved by the following vote q. Aye Nay Absent Chris Watts, Mayor: Gerard Hudspeth, District 1: . .......... . . ...... Keely G. Briggs, District 2: . ..... . Don Duff, District 3: John Ryan, District 4: . . .. . ..... Deb Armintor, At Large Place 5: . . . . ........... . Paul Meltzer, At Large Place 6: . . ......... . — PASSED AND APPROVED this the ..�day of ��'�� ....,, ..... 2019. Cw N II S' WATTS, M, A YOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: L..:. APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: .w. .. SUPPI ENTAL AGREEMENT NO. P00001 TO CONTRACT NO. DACW63-80-C-0104 (THE CITY OF DENTON AND THE CORPS OF ENGINEERS DATED 15 AUGUST 1980) THIS SUPPLEMENTAL AGREEMENT, entered into this I f 4 day of " 1982, by and between the Government, represented by the Contracting Officer executing this agreement, and the City, WITNESSETH: WHEREAS, on the 15th day of August 1980, the parties hereto entered into Contract No. DACW63-80-C-0104 for Water Storage Space in Aubrey and Lewisville Lakes. WHEREAS, Public Law 96-384, 94 STAT. 1527, changed the name of Aubrey Lake to Ray Roberts Lake, effective January 4, 1981. NOW, THEREFORE, the parties agree as follows: 1. Contract ARTICLE 15 Water Conservation, is deleted in its entirety. �. �. 2. All other terms and conditions of the original contract shall remain unchanged. IN WITNESS WHEREOF, the parties hereto have executed this supplemental agreement as of the day and year first above written. CITY OF DENTON, TEXAS - i <" lal`AITED SiA`��,RICA 7 By:1 car �. ^ d 0.-. _. _...... 'i-ewaar Dod<�a 1.H b . Palladino Mayor Colonel, CE Contracting Officer Charlotte Allen I, 1KdMXjKW&X certify that I am the City Secretary of the City of Denton, Denton County, Texas, named as City herein; that Richard 0. Stewart who signed this supplemental agreement on behalf of the City of Denton was then Mayor of the City of Denton, Texas; that said supplemental agreement was duly signed for and on behalf of the City of Denton, Texas by authority of its governing body and is within the scope of its legal powers. IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said City of Denton, Texas this 1 s t day of Anr i 1 , 1982. Calotte Allen .......... X Secretary City of Denton, Texas CORPORATE SEAL Contract No. DACW63-80-C-0104 CONTRACT BETWEEN THE UNITED STATES OF AMERICA AND THE CITY OF DENTON, TEXAS FOR WATER STORAGE SPACES IN AUBREY AND LEWISVILLE LAKES, TEXAS _A THIS CONTRACT, entered into thiskJ day of 1980, by and between the United States of America (hereinafter called ent) , represented by the Contracting Officer executing this contract, and the City of Denton, Denton County, Texas (hereinafter called the City), WITNESSETH THAT: WHEREAS, the River and Harbor Act of 1965 (Public Law 89-298, 79 Stat. 1091) authorized the construction, operation, and maintenance of Aubrey Lake including modification of Garza -Little Elm Reservoir, since renamed Lewisville Lake, (here- inafter called the Project) on the Elm Fork of the Trinity River in the State of Texas; and WHEREAS, in accordance with the authorized modification, Lewisville Lake (located immediately downstream from the Aubrey Dam) will be modified to permit the transfer of flood control storage from Lewisville Lake to Aubrey Lake for an equivalent amount of water supply storage in Lewisville Lake for municipal and industrial uses; and WHEREAS, the City desires to contract with the Government for the use of storage included in Aubrey Lake and the additional storage to be made available in Lewisville Lake for municipal and industrial water supply and for payment of the cost thereof in accordance with the provisions of the Water Supply Act of 1958, as amended (43 U.S.C. 390b); and WHEREAS, the City is empowered so to contract with the Government and is vested with all the necessary powers for accomplishment of the purposes of this contract, including those required by Section 221 of the Flood Control Act of 1970 (42 U.S.C. 1962d-5b); NOW, THEREFORE, the Government and the City agree as follows: ARTICLE 1. Water storage space. a. Cxoject S c°n,stnict ion. The Government, subject to the directions of Federal law and any limitations imposed thereby, shall design and construct the Project so as to include in Aubrey Lake space for the storage of water by the City and space for the storage of floodwaters which will permit the reallocation of flood control storage in Lewisville Lake to municipal and industrial water supply storage, a portion of which will also be utilized by the City. b. Rights of the Citv.. (1) The City shall have the right to utilize (a) an undivided 26.0 percent (estimated to contain 207,900 acre-feet gross storage, including storage for sediment deposits) of the total storage space in Aubrey Lake below elevation 632.5 feet above mean sea level, which total storage space is estimated to contain 799,600 acre-feet gross storage, including storage for sediment deposits, and (b) an undivided 26.0 percent (estimated to contain 46,200 acre-feet gross storage, including storage'for sediment deposits) of the total storage space in Lewisville Lake between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level, which total storage space is estimated to contain 177,600 acre-feet gross storage, including storage for sediment deposits. The storage space in Lewisville Lake is to be used to im- pound water for present demand or need for municipal and industrial water supply; and the storage space in Aubrey Lake is to be used to impound water for present and anticipated future demands or needs for municipal and industrial water supply. In Aubrey Lake, 52 percent (an estimated 1,08,100 acre-feet) of the space which the City has a right to utilize is for present use water storage and 48 percent (an estimated 99,800 acre-feet) is for future use water storage. y the right to withdraw or transfer water from or transfer )water into either hor�b1 m o tia of the two lakes, or to oKde ,._r,.ql ea$es _ to be made by the C y.,ernmont,_th ou$h the ou�t.9 e t orks n the da i , subject to the provisions of Article lc and to the extent the aforesaid storage spaces will provide. The City shall have the right to construct all such works, plants, pipelines, and appliances as may be necessary and convenient for the purpose of transfers or withdrawals, subject to the approval of the Contracting Officer as to design and location. The grant of rights -of -way across, in, and upon land of the Government at Aubrey Lake and at Lewisville Lake shall be by separate instrument in a form satisfactory to the Secretary of the Army, without addi- tional cost to the City, under the authority of and in accordance with the provisions of 10 U.S.C. 2669. Subject to the conditions of such grants, the City shall have the right to use so much of Aubrey Lake and Lewisville Lake lands as may reasonably be required in the exercise of the rights and privileges herein granted. c. Y &]2is reserved. �The Government reserves the right to lower the water in Aubrey Lake to elevation 632.5 feet above mean sea level and to lower the water in Lewisville Lake to elevation 522.0 feet above mean sea level during such periods of time as is deemed necessary, in its sole discretion, for flood control purposes. The Governuent further reserves the right to take such measures as may be necessary in the operation of Aubrey Lake and Lewisville Lake to preserve life or property. d, i u r„°.l.a t or av ailaba.l..ity (yC` water. The City recognizes that this con- tract provides storage spaces for raw water only. The Government makes no representations with respect to the quality or availability of water and assumes no responsibility therefor or for the treatment of water. of and � eit_to use of water. The regulation of the useTofLwater witherawnno� �s from o r released from or transferred to or from the aforesaid storage spaces shall be the sole responsibility of the City. The City has the full responsibility to acquire in accordance with State laws and regulations, and if necessary to establish or defend, any and all water rights needed for utilization of the storages provided under this contract. The Government shall not be responsible for withdrawals, transfers, or diversions by others, nor will it become a party to any controversies 4 involving the use of the storage spaces by the City except as such controversies may affect the operations of the Government. ARTICLE 3��' and maintenance. mm_ ce.. The Government shall operate and maintain AubreyLake and Lewisville L�_,_. O � a,.�;ation Lake, and the City shall pay to the Government a share of the costs of such operation and maintenance as provided in Article 5c. The City shall be responsible for operation and maintenance of all installations and facilities which it may construct for the transfer into or out of or with- drawal of water from either or both of the two lakes and shall bear all costs of construction, operation, and maintenance of such installations and facilities. ARTICLE 4. Measurement of withdrawals and releases. The City agrees to furnish and install, without cost to the Government, suitable meters or measuring devices satisfactory to the Contracting Officer for the measurement of water which is transferred into Aubrey Lake or Lewisville Lake or is withdrawn or transferred from Aubrey Lake or Lewisville Lake by any means other than through Aubrey Lake or Lewisville Lake outlet works. The City shall furnish to the Government monthly statements of all such withdrawals or transfers. Releases from the water supply storage spaces through Aubrey Lake or Lewisville Lake outlet works shall be made in accordance with written schedules furnished by the City and approved by the Contracting Officer and shall be subject to Article lc. The measure of all such releases shall be by means of a rating curve of the outlet works or by such other suitable means as may be agreed upon prior to use of the water supply storage space or spaces. ARTICLE 5. Payments. In consideration of the right to utilize the aforesaid storage spaces in Aubrey Lake and Lewisville Lake for municipal and industrial water supply purposes, the City shall pay the following sums to the Government: a. Proiect investment costs. (1) The City shall repay to the Government, at the times and with interest on the unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit A of this contract, constitute the entire estimated amount of the construction costs, including interest during construction, allo- cated to the water storage rights acquired by the City under this contract. The ;interest rate to be used for purposes of computing interest during construction and interest on the unpaid balance will be determined by the Secretary of the Treasury as of the beginning of the Government fiscal year in which construction of the Project is initiated on the basis set forth in the Water Supply Act of 1958, as amended. Such interest rate at the time of negotiation of this contract (Government fiscal year 1980) is 7.210 percent. The City shall repay: 26 percent of the construction cost of specific water supply facilities, estimated at $ 56,700 18.39 percent of the total Project joint use construction cost, estimated at 32,663,500 Interest during construction, estimated at 4µ718,200 Total estimated amount of Project investment cost allocated to 26 percent of the water supply $37,438,400 I A U G 1 5 1980 (2) The Project investment costs allocated to the storage space indicated in Article 1(b)(1) as being provided for present demand is currently estimated at $19,641,600, on the basis of the costs presented in Exhibit "A". The amount of the Project Investment costs allocated to the storage for present demand shall be paid in 50 consecutive annual installments, the first of which shall be due and payable within 30 days after the City is notified by the Contracting Officer that the Project is completed and operational for water supply purposes. Annual installments thereafter will be due and payable on the anniversary date of the first payment. Except for the first payment which will be applied solely to the retirement of principal, all installments shall include accrued interest on the unpaid balance at the rate provided above. The last annual installment shall be adjusted upward or downward when due to assure repayment of all of the investment costs allocated to the storage for present demand within 50 years. (3) The Project investment cost allocated to the remaining portion of the storage space, that provided in Aubrey Lake for future use, is currently estimated at $17,796,800 on the basis of the costs presented in Exhibit A of this contract. No principal or interest payment with respect to this storage for future water supply is required to be made during the first 10 years following the date the Project is operational for water supply purposes unless all or a portion of such storage is used for purposes of withdrawal of water from or transfer of water into Aubrey Lake during this period. The amount to be paid for any portion of such storage which is used shall be determined by multiplying the percentage of the total storage for future water supply which is placed in use by the total amount of the Project investment cost allocated to future water supply. Interest at the rate provided above will be charged on the amount of the Project investment cost allocated to the storage for future water supply which is not being used from the tenth (loth) year following the date the Project is operational for water supply purposes until the time when such storage is first used. The City may at its option pay the interest as it becomes due or allow the interest to accumulate until the storage is used. If this latter option is exercised, the interest will be compounded annually and added to the principal amount. When any portion of the storage for future water supply is used, the amount of the Project investment cost allocated thereto plus interest applicable to such portion as provided above will be due and payable on the date of first use of such portion. The said amount due shall be paid within the life of the Project in not to exceed 50 consecutive annual payments beginning on the next anniversary date established in accordance with the provisions of Article 5a(2) above. Annual payments thereafter for such portion will be due and payable on said anniversary date. For any portion, all payments shall include accrued interest on the unpaid balance at the rate provided above, with interest accruing from the said date of first use of such portion. The last annual payment for any portion shall be adjusted upward or downward when due to assure repayment of all the investment cost allocated to such portion within the repayment period. (4) An estimated schedule of annual payments for the storages provided for present demand is attached as Exhibit B of this contract. The annual pay- ments as provided therein shall be made until an interim estimated determination of cost or a final determination of cost is made as provided in Article 6. Payment schedules for the storage provided for future water supply demands will 4 be furnished by the Contracting Officer when use of such storage is started, and if based on estimated costs will be subject to revision, as provided in Article 6, until actual costs are known. (5) The City shall have the right at any time it so elects to prepay the indebtedness under this Article 5a, in whole or in part, with accrued interest thereon to the date of such prepayment. b• �q` c, t l r�atTy��� nt cots and re eclimeaitation surveys costs. The City will be required to pay to the Government 26� percent of the cost for any major capital replacement of specific water supply facilities at Aubrey Lake. In addition, the City shall pay to the Government 6.760 percent of the costs of joint use major capital replacement items at Aubrey Lake until such time as the storage for future water supply is first used. As the storage provided for future water supply is used, the share of the joint use major capital replace- ment items costs, which the City will be required to pay in addition to the major capital replacement costs of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used up to a total of 13.000 percent of such costs. The City will also be required to pay to the Government 10.155 percent of the costs of sedimenta- tion resurveys at Aubrey Lake until such time as the storage for future water supply is used. As the storage provided for future water supply demands is used, the share of the sedimentation resurveys costs which the City will be required to pay will be increased commensurate with the precentage of the total water supply storage being used up to a total of 19.528 percent of such costs. Payment shall be made either in lump sum on demand at the time such costs are incurred or annually with interest on the unpaid balance. If paid annually, the City's share shall be paid within the life of the Project not to exceed 25 con- secutive annual payments beginning on the next anniversary date established in accordance with the provisions of Article 5a(2) above following the date demand is made for payment of said major capital replacement costs and resedimentation surveys. Annual payments thereafter will be due and payable on said anniversary date. All payments shall include accrued interest on the unpaid balance at the rate determined by the Secretary of the Treasury on the basis of the Water Supply Act of 1958, as amended, for use in the Government fiscal year in which major capital replacement is initiated, with interest accruing from the date said major capital replacement is initiated. The last annual payment shall be adjusted upward or downward when due to assure repayment of all the incurred costs within the repayment period. c. Annual operation and maintenance co sts. (1) The City will be required to pay to the Government 26 percent of the annual experienced operation and maintenance costs of specific water supply facilities at Aubrey Lake. In addition, the City shall pay to the Government 7.759 percent of the annual experienced joint use operation and maintenance costs of Aubrey Lake until such ttnie as the storage for future w"iter supply is first used. As the storage provided for future water supply demands is used, the share of the annual experienced joint use operation and maintenance costs, which the City will be required to pay in addition to the operation and mainte- nance costs of the specific water supply facilities, will be increased commensurate with the percentage of the total water supply storage being used 5 AUG up to a total of 14.921 percent of such costs. Twelve months prior to the ex.� pected date that the Contracting Officer shall notify the City that the Projec -4_ is complete and operational for the water supply purpose, the Government s'1ial provide the City an estimate of the first advance payment for operation and maintenance costs. The first payment for operation and maintenance costs of present use water supply storage in Aubrey Lake will be due and payable in advance within 90 days after the Contracting Officer notifies the City that the Project is completed and operational for water supply purposes, will be for the period beginning on the date the Project is operational for water supply purposes and ending on 30 September following, and will amount to the sum of the first payment for specific water supply facilities costs and the first pay- ment for joint use costs. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following the close of the prior Government fiscal year. Payment by the City and payment adjustments by the Government shall be in accordance with Exhibit A, IV, B. (2) When each and any portion of the future water supply storage is placed in use, the first payment of the additional amount of the joint use operation and maintenance costs required to be paid for such storage use will be due and payable in advance within 30 days after first use of such storage and will be for the period beginning on the date of said first use and ending on 30 September following. Annual payments thereafter, for each Government fiscal year ending 30 September, will be due and payable in advance on 2 January following the close of the prior Government fiscal year. d. Charges for delinquent payments. If the City shall fail to make any of the aforesaid payments when due, then the overdue payments shall bear interest compounded annually until paid. The interest rate to be used for overdue pay- ments due under the provisions of Articles 5a, 5b, and 5c above shall be that determined by the Secretary of the Treasury on the basis of the Water Supply Act of 1958, as amended, for use in the Government fiscal year in which each period of delinquency occurs. The amount charged on payments overdue for a period of less than one year shall be figured on a monthly basis. For example, if the payment is made within the first month after being overdue (31 to 60 days after the anniversary date of the date of notification) one month's interest shall be charged. This provision shall not be construed as giving the City a choice of either making payments when due or paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might result from any default by the City. e. Assurance of funds for contract payments. The City warrants that all payments contracted hereunder shall be secured by a pledge of surplus revenues of the City's combined Waterworks and Sanitary Sewer System remaining after payment of all expenses of operating and maintaining such system and after providing for payment of all debt service, reserve, or other requirements in connection with the City's Waterworks and Sanitary Sewer System Revenue Bonds now outstanding or those hereafter issued on a first lien basis or on such other basis as may be approved by the Contracting Officer, piq ided, that in the event such surplus revenues may become or are insufficient to meet the payments contracted hereunder, the City shall fix and collect such rates and charges for services of said combined system as will make possible the prompt payment of R all the aforementioned requirements including payments contracted hereunder. Payments made by the City as Project investment cost and as major capital re- placement costs shall be regarded as capital expenditures. ARTICLE 6. Construction_ cost adjustments. All construction cost dollar amounts in this contract including g those in the Exhibits, are tentative only based on the Government's best estimates. They will be adjusted upward or down- ward by the Contracting Officer when final construction costs become known, and the contract will be modified to reflect the adjustments. Within two years after the Project is completed and operational for water supply purposes, the Contracting Officer shall make a revised interim estimated determination of construction costs, including interest during construction and taking into account the actual costs to the extent they are then known. In like manner, further interim determinations shall be made at two year intervals until all actual costs are known, at which time the Contracting Officer shall prepare a final cost determination, including interest during construction. On each occasion of an interim determination, or on final determination, the annual payments thereafter due shall be changed so as to provide for the payment of the balance due in equal payments during the remaining life of the repayment period; and a revised schedule, or schedules as necessary, of annual payments shall be furnished to the City. ARTICLE 7. Duration of contract. This contract shall be effective when approved by the Secretary of the Army and shall continue in full force and effect for the life of Aubrey Lake and Lewisville Lake. Both Aubrey Lake and the addi- tional storage to be made available in Lewisville Lake have been formulated on the basis of 100 years economic life. ARTICLE 8. Permanent rights to storage. Upon completion of payments by the City as provided in Article 5a herein, the City shall have a permanent right, under the provisions of the Act of 16 October 1963 (Public Law 88-140, 43 U.S.C. 390e), to the use of the water supply storage spaces in Aubrey Lake and Lewisville Lake as provided in Article 1, subject to the following: a. The City shall continue payment of its share, as provided in Article 5c, of the annual operation and maintenance costs allocated to water supply. b. The City shall bear 26 percent of the costs allocated to (1) water supply for Aubrey Lake and (2) the total storage space between elevations 515.0 feet above mean sea level and 522.0 feet above mean sea level for Lewisville Lake of any necessary reconstruction, rehabilitation, or replacement of Aubrey Lake or Lewisville Lake features which may be required to continue satisfactory operation of Aubrey Lake or Lewisville Lake. Such costs will be established by the Contracting Officer and repayment arrangements shall be in writing in accordance with the terms and conditions set forth in Article 5(b) for major capital replacement costs. c. Upon completion of payments by the City as provided in Article 5a herein, the Contracting Officer shall redetermine the storage space for munici- pal and industrial water supply in Aubrey Lake, taking into account such equitable reallocation of lake storage capacities among the purposes served 7 by Aubrey Lake as may be necessary due to sedimentation. Such findings, and the storage space allocated to municipal and industrial water supply, shall be de- fined and described in an exhibit which will be made a part of this contract. Following the same principle, such reallocation of lake storage capacities may be further adjusted from time to time as the result of sedimentation resurveys to reflect actual rates of sedimentation and the exhibit revised to show the revised storage space allocated to municipal and industrial water supply. d. The permanent rights of the City under this contract shall be continued so long as the Government continues to operate Aubrey Lake and/or Lewisville Lake. In the event the Government no longer operates Aubrey Lake or Lewisville Lake, such rights may be continued subject to the execution of a separate con- tract, or supplemental agreement, providing for: (1) Continued operation by the City of such part of the facility as is necessary for utilization of the water supply storage spaces allocated to it; (2) Terms which will protect the public interest; and (3) Effective absolvement of the Government by the City from all liability in connection with such continued operation. ARTICLE 9. Release of claims. The City shall hold and save the Government, .._..._._....�.._.�.....-�.._. including its officers, agents, and employees, harmless from liability of any nature or kind for or on account of any claim for damages which may be filed or asserted as a result of the storages in Aubrey Lake and/or Lewisville Lake, or withdrawal or release of water from or transfer of water to or from Aubrey Lake or Lewisville Lake made or ordered by the City, or as a result of the construc- tion, operation, or maintenance of the features and appurtenances owned and operated by the City, �yided, that this shall not be construed as obligating the City to hold and save the Government harmless from damages or liability resulting from the sole negligence of the Government or its officers, agents, or employees and not involving negligence on the part of the City or its officers, agents, or employees. ARTICLE 10. Assignment. The City shall not transfer or assign this con- tract or anrights �-.._..........._�._ y ri ght s acquired hereunder, nor, sub -allot said water supply storage spaces or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this contract, without the approval of the Secretary of the Army, lrx..)vv:tded, that unless contrary to the public interest, this restriction shall not be construed to apply to any water that may be obtained from the water supply storage spaces by the City and furnished to any third party or parties, nor any method of allocation thereof. ARTICLE 11. Officials not to benefit. No member of or delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this contract or to any benefit that may arise herefrom; but this provision shall not be con- strued to extend to this contract if made with a corporation for its general benefit. ARTICLE 12. Covenant against contingent fees. The City warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon agreement or understanding for a commission, percentage, brokerage, or contingent fee excepting bona fide employees or bona fide established commercial or selling agencies maintained by the City for the purpose of securing business. For breach or violation of this warranty, the Government shall have the right to annul this contract without liability or in its discretion to add to the contract price or consideration or otherwise re- cover the full amount of such commission, percentage, brokerage, or contingent fee. ARTICLE 13. Eavironmental__quj "During any construction, operation, and 111a litenance by 0-Wfa.t, of any facilities, specific actions will be taken to control environmental pollution which could result from such activity and to comply with applicable Federal, State, and local laws and regulations concerning environmental pollution. Particular attention should be given to (1) reduction of air pollution by control of burning, minimization of dust, containment of chemical vapors, and control of engine exhaust gases and smoke from temporary heaters; (2) reduction of water pollution by control of sanitary facilities, storage of fuels and other contaminants, and control of turbidity and siltation from erosion; (3) minimization of noise levels; (4) onsite and offsite disposal of waste and spoil; and (5) prevention of landscape defacement and damage. ARTICLE 14. Federal and State laws. a. In acting under its rights and obligations hereunder, the City agrees to comply with all applicable Federal and State laws and regulations, including but not limited to the provisions of the Davis -Bacon Act (40 U.S.C. 276a et seq.); the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); and Title 29, Code of Federal Regulations, Part 3. b. The City furnishes as part of this contract an assurance (Exhibit C) that it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat. 241, 42 U.S.C. 2000d et seq.) and Department of Defense Directive 5500.11 issued pursuant thereto and published in Part 300 of Title 32, Code of Federal Regulations. ARTICLE 15. Water conservation. There is a strong Federal interest in the efficient use of Federal projects, and this objective may be served by effective management of the use of water from the system into which a Federal project is integrated. Therefore, prior to the first use of storage space indicated in Article l(b)(1), the City shall submit to the Contracting Officer for his approval a management plan which incorporates loss reduction measures and demand management practices which insure that the available supply is used in an economically efficient and environmentally sensitive manner. The plan shall contain a program for implementation of specific time -phased measures. At not -to - exceed five-year intervals, the City and the Contracting Officer shall review and modify the plan as the results of the implementation of measures are made apparent and as the system supplies and user demands change. ARTICLE 16. Definitions. a. Joint use costs. The costs of features used for any two or more Project purposes. b- Prrr ect investment costs. The initial cost of the Project, including: land acquisition; construction; interest during construction on the cost of land, labor, and materials used for planning and construction of the Project. c. S cost's. The costs of Project features normally serving only one particular Project purpose. d. Interest d,,in� construction. An amount of interest which accrues on expenditUres for the establishment of Project services during the period between the actual. out Jay and the time the Project is first made available to the City for water stol'age., ARTICLE 17. Apprt. val, This contract is subject to the written approval of the Secretary of the briny, and it shall not be binding until so approved. 10 IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. APPROVED: THE UNITED STA1OF CFI Assista�nt Dods add :Palladino Secretary of the Army (CW) Colonel, CE Contracting Officer 6 SEP 1980 Date Date CITY OF DENTON, TEXAS I, Brooks Holt, certify that I am the City Secret��1" pr,e. City of Denton, Denton County, Texas, named as City herein; that" i7f rl "" who signed this contract on behalf of the City of Denton was tienWiw dor of the City of Denton, Texas; that said contract was duly signed for and on behalf of the City of Denton, Texas by authority of its governing body and is within the scope of its legal powers. IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of said City of Denton, Texas this ,:5- day of 1980. CORPORATE SEAL 1�*j cwc 1 aa1�� r1q] i.e ati.on BrooksHolt�__.._��...._......�....m��.m.�.................._...r Secretary City of Denton, Texas M Contract No. DACW63-80-C-0104 AUBREY AND LEWISVILLE LAKES EXHIBIT A __ f A (E STORAGES Aubrey Lake Gross Percent Percent of Feature Elevation feet msl) storage (acre-feet) of gross water supply st:ora �. storage �..��. .,— Flood control 632.5-640.5 265,000 24.892 Water supply below 632.5 799,600 75.108 100.0 (City of Dallas) below 632.5 (591,700) (55.580) (74.0) (City of Denton) below 632.5 �(207.900) 19.528) (26.0) Totals 1,064,600 100.000 Lewisville Lake ('Goss Percent Percent of Feature Elevation (, feet � of g gross water supply �. .._.... msl) _ y_) ( acre- s c t storaRe(2) ... M storage Flood control 522.0-532.0 336,100 65.427 Water supply 515.0-522.0 177,600 34.573 100.0 (City of Dallas) 515.0-522.0 (131,400) (25.579) (74.0) (City of Denton) 515.0-522.0 (46,200) 8.994) (26.0) Totals 513,700(2) 100.000 (1) 1985 condition. (2) Between elevations 515.0 and 532.0 feet msl. PROJECT ESTIMATED CONSTRUCTION INVESTMENT TO BE ALLOCATED Federal construction cost $211,234,000 Nonreimbursable costs (unallocable) (1) 9,826,000 Project cost to be allocated $2014 0"6',000 Interest during construction on allocable cost (2) 23,991,800 Project construction investment to be allocated $225,399 9,800 (1) Relocation of roads above replacement -in -kind standards. (2) Interest rate for Federal share of recreation - 3.25%. Interest rate for water supply and non -Federal share of recreation - 7.210%. AUG 1 5 1980 ALLO(ATION OF ESTIMATED '�,os�s CONSTRUCTION INVESTMENT (Se5ara—ble emaiidfngbenefits method)) Water Recreation Tot i3,ls 1. Specific facilities cost $ 218,000 $23,566,000 $ 23,784,000i Aubrey Lake (218,000) (19,985,000) (20,203,000) Lewisville Lake (0) (3,581,000) (3,581,000) 2. Joint use facilities cost 125,629,060 51,995,000 177,624,000 Aubrey Lake (124,413,200) (51,491,800) (175,905,000) Lewisville Lake (1,215,800) (503,200) 719,000) Subtotals - cost $75,561,000 $201,408,000 3. Interest during construction 18,147,100 5,844,700 23,991,800 Aubrey Lake (17,971,800) (5,437,400) (23,409,200) Lewisville Lake (175,300) (407,300) (582,600) 4. Total allocation - investment $143,994,100 $ 81,405,700 $225,399,800 Aubrey Lake (142,603,000) (76,914,200) (219,517,200) Lewisville Lake (1,391,100) (4,491,500) (5,882,600) (1) Interest rate for water supply - 7.210% (fiscal year 1980). Interest rate for reimbursement for water supply storage will be set as of the beginning of the Government fiscal year in which construction of the Project is started. (2) Investment cost to be repaid by: Lewisville Lake AubrU! LaRt Totals City of Dallas - 74% $105,526,30O $106,5 . 55,700 Present water supply (1,029,400) (54,873,700) (55,903,100) Future water supply (0) (50,652,600) (50,652,600) City of Denton - 26% 361,700 37,076,700 37,438,400 Present water supply (361,700) (19,279,900) (19,641,600) Future water supply 800) (0) (17 X. 796 (17,796,800) Totals $1,391,100 $142,603,000 $143,994,l 0 IV - ALLOCATION OF ESTIMATED OPERATION AND MAINTENANCE COSTS Aql=_, Lake A. Allocation of estimated total annual costs: Water supply Recreation Total 1. Specific cost $ 70,400 $642,000 $712,400 2. Distribution of joint use cost (percent) 57.39 42.61 100.00 3. Allocated joint use cost 102,100 5 171 4. Total allocation $172,500 -7 IAN $717,800 110 $890,300 To be paid by the City of Denton: 26% of specific cost for water supply facilities 18,300 Aubrey Lake joint use cost: Present use w/s storage (0.52 x 0.26 x 0.5739 x $177,900) 13,800 Future use w/s storage (0.48 x 0.26 x 0.5739 x $177,900) 12.700 Total ,800 A-2 B. Annual payment adjustment: Payment for the City of Denton's share of the annual operation and maintenance costs allocated to water supply storage for each Government fiscal year will be made by the City in advance on 2 January following close of the prior Government fiscal year. For present use water supply storage, the first payment for such costs will be estimated based on the Contracting Officer's annual estimates therefor, prorated as necessary for a partial year of Project operation. Each annual payment thereafter will include (1) an advance payment for the current fiscal year, estimated based on the actual operation and maintenance costs incurred for the preceding fiscal year (except as noted for particular conditions), and (2) an amount (plus or minus) to adjust the estimated advance payment for the preceding fiscal year for the actual costs incurred for such preceding fiscal year. For future use water supply storage, all advance payments will be estimated based on the actual operation and maintenance costs incurred for the preceding fiscal year (except as noted for particular conditions). The first advance payment will be prorated as necessary for a partial year of storage use; and each annual payment thereafter will include an advance payment for the current fiscal year and an amount (plus or minus) to adjust the estimated advance payment for the preceding fiscal year for the actual costs incurred for such preceding fiscal year. A-3 ALLOCATION OF ESTIMATED MAJOR CAPITAL REPLACEMENTS COSTS AND SEDIMENTATION RESURVEm YS COSTS - _ replacements A. Major capital re ents costs: (1)- Aubrey_ 'P eke. Water .z y Recreation Total 1. Specific cost $21,900 $133,000 $154,900 2. Distribution of joint use cost (percent) 50.00 50.00 100.00 3. Allocated joint use cost 7,100 7,100 14,200 4. Total allocation $29,000 $140,100 $169,100 To be paid by the City of Denton: 26% of specific cost for water supply facilities 5,700 Aubrey Lake joint use cost: Present use w/s storage (0.52 x 0.26 x 0.5000 x $14,200) 1,000 Future use w/s storage (0.48 x 0.26 x 0.5000 x $14,200) (2) 900 Total $ 7,600 (1) Estimates of average annual charges are used for determination of allocated percentages. All charges will be based on the indicated per- centages of actual costs if and when they are incurred. (2) Additional amounts of joint use cost required to be paid as future water supply storage is used will be computed as follows: Percent of future w/s storage placed in use 100 x 0.48 x 0.13000 x actual joint use cost B. Sedimentation resurveys costs: Aubrey Lake Sedimentation resurveys costs allocated to water supply and to be paid by the City of Denton in accordance with Article 5c(3) are based on the percentage of the gross storage in Aubrey Lake represented by the storage right of the City - see section I of this Exhibit A. Present use water supply storage = 0.52 x 19.528% = 10.155% Percent of future w/s sto1'..� '�,: d inuse Future use water supply storage = --.__... 100 x 9.373% A-4 P -i 5 10 VI - COMPUTATIONS FOR ANNUAL PAYMENTS. FOR INTEREST AND AMORTIZA�"ION Present use water supply storage: Amount to be amortized: Lewisville Lake $ 1,391,100 x 0.26 $ 361,700 Aubrey Lake $142,603,000 x 0.26 x 0.52 19,_279,900 Total $19,641,600 Based on 50 equal payments, 49 of which bear interest on the unpaid balance at the rate of 7.210 percent. P = (A - P)(i + c) Where: P = annual payment P = (A - P)(.0745602419P) A = amount to be repaid = $19,641,600 P = .0745602419A - 0.0745602419P i = interest rate = 7.210% 1.0745602419P = 0.0745692419A (i+c) = interest rate plus amortization p () 45602/il9 ($1.' ,64.L,600) coefficient for 49 years = 0.0745602419 1- 0745602419 P = $1,362,866.77 A-5 EXHIBIT B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17, 18 19 20 21 22 23 24 25 26 27 PSm 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 PAYMENT TO INTEREST 0.00 1317896+67 1314654+32 1311178.20 1307451.46 1303456.01 1299172+50 1294580.14 1289656+68 1284378.23 1278719.20 1272652.16 1266147.69 1259174.25 1251698.01 1243682.75 1235089.58 1225876484 1215999+87 1205410,77 1194058.19 1181887.09 1168838+46 1154849+01 1139850.93 1123771.49 1106532*72 1088051.04 1068236+82 1046994.00 1024219.58 999803.11 973626.22 945561+98 915474.31 883217.31 848634.58 811558.44 771809.11 729193.85 683506.04 634524+13 582010+62 525710.90 465351.96 400641.14 331264.67 256886.16 177144.96 91654,42 PAYMENT TO PRINCIPAL 1362866+77 44970.10 48212.45 5168E+57 55415+31 59410+76 63694.27 68286.63 73210.09 78488+54 84147.57 90214+61 96719,08 103692.52 111168+76 119184,02 127777*19 136989.93 146866+90 157456*00 168808,58 180979.68 194028.31 208017.76 223015.84 239095.28 256334+05 274815.73 294629.95 315872.77 338647.19 363063.66 389240.55 417304+79 447392.46 479649.46 514232.19 551308.33 591057.66 633672,92 679360.73 728342.64 780856.15 837155.87 897514.81 962225,63 1031602.10 1105980.61 1185721.81 1271212.42 TOTAL BALANCE PAYMENT DUE 19641600.00 1362866.77 18278733.23 1362866+77 18233763#13 1362866+77 18185550.68 1362866.77 18133862+11 1362866+77 18078446+80 1362866+77 18019036+04 1362866,77 17955341+77 1362866+77 17887055+14 1362866+77 17813845,05 1362866+77 17735356+51 1362866+77 17651208+94 1362866+77 17560994+33 1362866+77 17464275+25 1362866+77 17360582+73 1362866+77 17249413+97 1362866+77 17130229.95 1362866.77 17002452+76 1362866+77 16865462+83 1362866.77 16718595+93 1362866+77 16561139+93 1362866+77 16392331+35 1362866.77 16211351.67 1362866#77 16017323+36 1362866.77 15809305+60 1362866.77 15586289+76 1362866+77 15347194.48 1362866+77 15090860+43 1362866+77 14816044+70 1362866.77 14521414.75 1362866+77 14205541.9E 1362866+77 13866894+79 1362866477 13503831+13 1362866,77 13114590+58 1362866+77 12697285+79 1362866+77 12249893.33 1362866.77 11770243,87 1362866+77 11256011.68 1362866.77 10704703.35 1362866.77 10113645+69 1362866#77 9479972.77 1362866.77 8800612+04 1362866+77 8072269+40 1362866#77 7291413+25 1362866.77 6454257,38 1362866.77 5556742,57 1362866,77 4594516.94 1362866#77 3562914+84 1362866+77 2456934,23 1362866.77 1271212442 1362866.84 0.00 B-1 Contract No. DACW63-80-C-0104 AUBREY AND LEWISVILLE LAKES EXHIBIT C ASSURANCE OF COMPLIANCE WITH THE DEPARTMENT OF DEFENSE DIRECTIVE UNDER TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 The City of Denton, Denton County, Texas (hereinafter called "Applicant - Recipient") HEREBY AGREES THAT it will comply with title VI of the Civil Rights Act of 1964 (Public Law 88-352) and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 300, issued as Department of Defense Directive 5500.11, December 28, 1964) issued pursuant to that title, to the end that, in accordance with title VI of that Act and the Directive, no person in the United States shall, on the ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under, any program or activity for which the Applicant -Recipient receives Federal financial assistance from the U. S. Army Corps of Engineers and HEREBY GIVES ASSURANCE THAT it will immediately take any measures necessary to effectuate this agreement. If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the Applicant -Recipient by the U. S. Army Corps of Engineers, assurance shall obligate the Applicant - Recipient, or in the case of any transfer of such property, any transferee, for the period during which the real property or structure is used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is so provided, this assurance shall obligate the Applicant -Recipient for the period during which it retains ownership or possession of the property. In all other cases, this assurance shall obligate the Applicant -Recipient for the period during which the Federal financial assistance is extended to it by the U. S. Army Corps of Engineers. THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, contracts, property, discounts, or other Federal financial assistance extended after the date hereof to the Applicant -Recipient by the Department, including installment payments after such date on account of arrangements for Federal financial assistance which were approved before such date. The Applicant -Recipient recognizes and agrees that such Federal assistance will be extended in reliance on the representations and agreements made in this assurance, and that the United States shall have the right to seek C-1 judicial enforcement of this assurance. This assurance is binding on the Applicant -Recipient, its successors, transferees, and assignees; and the person or persons whose signatures appear below are authorized to sign this assurance on behalf of the Applicant -Recipient. ATTEST: Secretary City of Denton, Texas THE CITY OF DENTON, TEXAS C-2 Contract No. DACW63-80-C-0104 Al.iSREY AND LEWISVILLE LAKES EXHIBIT D OPINION OF COUNSEL I have reviewed and approved contract number DACW63-80-C-0104 between the United States of America and the City of Denton, Texas. Particularly I have considered the effect of Section 221 of Public Law 91-611 (42 U.S.C. 1962d-5b) and am of the opinion that the City of Denton, Texas has the requisite legal authority to enter into and comply with this agreement as required by the aforementioned statute. Dated A C. J. aylor City Attorney City of Denton, Texas RMI EXHIBIT F STANDING INSTRUCTIONS TO PROJECT MANAGER LEWISVILLE LAKE F-1 EXHIBIT F STANDING INSTRUCTIONS TO PROJECT MANAGER LEWISVILLE LAKE TABLE OF CONTENTS, PARAGRAPH TITLE PAGE I - (GENERAL 1 Instructions F-1 a. Regulation instructions F-1 b. Data reporting instructions F-1 c. Reporting unusual events F-2 d. Warnings F-2 e. Frequency of gate changes F-2 II - REGULATION PROCEDURES 1 Normal Regulation Procedures F-3 2 Emergency Regulations F-3 a. During communications outage F-3 b. During emergency events F-3 TABLE INDEX, TABLE TITLE PAGE F-1 Emergency Flood Control Regulation Schedule F-4 EXHIBIT F STANDING INSTRUCTIONS TO PROJECT MANAGER LEWISVILLE LAKE I. GENERAL 1. Instructions. Detailed instructions to the project personnel at Lewisville Lake are presented below: a. Regulation aljtuctions_ During flood periods, the lake will be regulated in accordance with the normal regulations for flood control as directed in Chapter 7 of this manual or paragraph 2 of this exhibit. Instructions for the storage and discharge of floodwater will be issued by the Reservoir Control Section. In the event of communications with the Forth Worth District Office are disrupted, the lake will be regulated in accordance with the schedule of emergency regulations for flood control (see Chapter 7 of this manual or paragraph 3 of this exhibit). In addition, the Project Manager will immediately make every effort to reestablish communications with the Fort Worth District Office. b. Data repor-Linq instructions. Daily lake data (example on plate 5-6) will be submitted to the Reservoir Control Section, Hydrology -Hydraulics Branch, District Office (telephone (817) 334-2214 or facsimile (817) 334-2176; or VHF - FM radio, call signal WUI-6). The Reservoir Control Section is manned from 7:45 a.m. to 4.45 p.m. daily and 7:30 a.m. to 11:30 a.m. on weekends and holidays (except Christmas Day). In the event that unusual conditions arise during nonworking hours, one of the persons listed on page i of this manual should be contacted. The following data should be included in the daily report. (1). As of 8 a.m. Number of conduit gates open, with the height of openings; opening in degrees of the low flow gates; and precipitation in inches for the past 24 hours (8 a.m. to 8 a.m.). (2). Each ite o at�on. Date and time of gate operation, number and amount of gate openings before and after operation. (3). During_ p" o rio_r . In addition to subparagraphs (1) and (2) above, reports as specified by Reservoir Control Section. (4). Rainfall rgports. Rainfall reports shall be made as follows: (a). At 8 a.m. all precipitation that has occurred during the preceding 24 hours, 8 a.m. to 8 a.m. (b). Report at once the occurrence of 2.00 inches or more of precipitation that occurs during a period of 6 hours or less. During nonworking hours, the report should be made to one of the persons listed on page i. c. Rq_pgXtinp unusual events. Events or conditions not normally encountered in the routine operation of the dam and lake which might endanger the dam or necessitate temporary or permanent revision of the operating procedures such as settlement, movement, or cracking of the earth embankment or abutments; unusual change in seepage rates or development of new seepage areas; mechanical malfunction or failure; structural settlement movement, cracking, or vibrations; landslides, rockslides, or indication of an impending movement; or an occurrence indicating any degree of jeopardy to the safety of the dam or to the safety of the public shall be reported promptly to the Reservoir Control Section, Hydrology -Hydraulics Branch. d. Warnings. It is the responsibility of the Project Manager and the project personnel authorized to make gate changes; to maintain a list in current status of residents, and/or property, which would be endangered or inconvenienced by large and/or prolonged releases; and to give adequate warning of such impending releases. Notification will be made by whatever means are available. This includes radio, television, telephone, citizen band radio, use of law enforcement, and Civil Defense agencies and their communication system, National Guard and Reserve Units, supplemented by oral warning from Corps' employees in Government vehicles. IN every case, when a change in release rate is made, a warning horn is blown to notify people downstream within hearing distance. e. Ere g c oaf crate changgss - During flood period, gate changes are to be directed by the Reservoir Control Section at any time. When the floodwaters have significantly risen into the flood control pool, gate changes may occur every half hour. Only under the most unusual circumstances will gate changes be ordered more frequently than once every half hour. Frequency of gate changes during low flow operation will generally be less than once a day. F-2 I T . "U LAT U 'F' R 1. forma. Regfulation Procedur s Under normal procedures, instruction for storage and release of water for conservation and flood control will be issued by the District Office Reservoir Control Section. The implementation of the instructions are to be confirmed back to the Reservoir Control Section as soon as the required action is completed. Instructions originating from any other source should not be processed. 2.IC eaceru.latiors. a. During cgmmunic tions outage.. When communication with the Fort Worth District Office is disrupted, the Project Manager will, on his own initiative, direct regulation of the lake in accordance with the following schedule until communication is restored. In addition, the Project Manager will make every effort to reestablish communication with the Fort Worth District Office. The conduit gates shall be operated at a uniform opening. (See Table F-1). b . Dur ina emeraenc _events. The Project Manager may temporarily deviate from the current release rates in the event an immediate short term departure is deemed necessary for emergency reasons to protect the safety of the dam, or to avoid serious hazards to life. Such actions shall be immediately reported by the fastest means of communication available. Actions shall be confirmed in writing the same day to the Reservoir Control Section and shall include justification for the action. Continuation of the deviation will require the express approval of the Reservoir Control section. F-3 TABLE F-1 EMERGENCY REGULATION - LEWISVILLE DAM LAKE STAGE POOL CONDITIONS OPERATION A. Below Rising Continue the releases from Elevation Standing the conservation pool as 522.0 or Falling previously instructed by the District Office. B. Lake Level Rising Maintain releases in effect between Standing at the time communications elevation or Falling was lost. The Project Man- 522.0 and ager will initiate gate 532.0 closing operations as soon as one of the following conditions occurs: (1) should the Project Manager have knowledge of pending flood condition on the Elm Fork below the project; or (2) two or more inches of rain has been recorded at the dam in a two hour period or less; or (3) six hours of time has elapsed after loosing communications. C. Above Rising Close gates, and leave elevation Standing closed until communications 532.0 or Falling have been restored with District Office in Fort Worth. NOTE: Gate changes are limited to a maximum rate of half a foot per half hour. Once the gates have been closed, they will remain closed until communications has been restored with the District Office. F-4