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Res 074-86 6/3/1986r RESOLUTION NO. rig-Ve RESOLUTION APPROVING A CONTRACT WITH WICHITA FALLS ENERGY COMPANY GUARANTEEING IMMUNITY FROM ANNEXATION FOR A PERIOD OF SEVEN (7) YEARS A TRACT OF 3 .8 ACRES OUT OF CERTAINTEED PRODUCTS ADDITION. WHEREAS, Wichita Falls Energy Company is Lessee of a 3 .8 acre tract, more or less, out of Lot 1 of CertainTeed Products Addition to the City of Wichita Falls , which Lot 1 was designated as an industrial district by the City Council by Resolution No. 1835 ; and, WHEREAS , Wichita Falls Energy Company plans to build a cogenera- tion facility on said tract, and has requested a seven (7) year non-annexation contract with the City; and, WHEREAS , the City Council has found that the construction of the facility will bring a number of economic benefits to the City, and that the City should enter into such non-annexation contract as an inducement to such Company to build the facility. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: That certain contract, a copy of which is attached hereto, between the City of Wichita Falls and Wichita Falls Energy Company, whereby the City guarantees the continuation of the extraterritorial status of said 3 .8 acre tract of land, described in Exhibit A to such contract, and guarantees its immunity from annexation by the City for a period of seven (7) years from January 1, 1988 , is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls . PASSED AND APPROVED this the ?jf day of June, 1986 . M A Y O R ATTEST : 42L1y7 4/ AYLI a City Clerk 2 - RECEIVED IN 6/3/86 CITY CLERK'S 07FICE Date J - 6 THE STATE OF TEXAS ) 97e51 ey _ Time COUNTY OF WICHITA ) p y' NON-ANNEXATION CONTRACT WITH_ WICHITA FALLS ENERGY COMPANY This contract made and entered into by and between the City of Wichita Falls, Texas, a municipal corporation, here- inafter called "City", and Wichita Falls Energy Company, hereinafter called "Company", WITNESSETH : WHEREAS, Company is the Lessee of a certain tract of land, hereinafter called "Subject Property", located in Wichita County, Texas, said land being more fully described in Exhibit A, which is attached hereto and incorporated herein, and which land is located within City ' s extra- territorial jurisdiction; and, WHEREAS, Subject Property is a part of a larger tract of land owned by CertainTeed Corporation, which larger tract of land is described as Lot 1 of Certain-Teed Products Addition to Wichita Falls, according to the plat of said addition recorded in Volume 22 , Pages 21-22 of the plat records of Wichita County, Texas; said Lot 1 of Certain-Teed Products Addition was designated as an industrial district by the City Council of City by their Resolution No. 1835; and, WHEREAS, Company has plans to build a cogeneration facility in the immediate proximity of the City, and the City Council has found that the construction of such facil- ity at this location will bring a number of economic bene- fits to City ; and, WHEREAS, as an inducement to Company to build such facility at this location, the City Council, by Resolution No. 74-86 , has authorized and approved this contract, which it deems to be in the best interest of City. NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter contained to be performed by the parties hereto, City and Company do hereby agree as follows: 6/3/86 1. City guarantees the continuation of the extra- territorial status of Subject Property, and its immunity from annexation by City, for a pericd of seven (7) years from January 1 , 1988. 2 . City will furnish water service to Company on Subject Property for ( i) the production of steam by Company ( "Steam Water") for the generation of electricity and sale of steam to CertainTeed Corporation or any successor in interest to the plant located at 4515 Allendale Road in Wichita Falls, Texas and (ii) domestic uses such as lava- tory, toilet and periodic cleaning ("Domestic Water") . The City will charge and Company will pay for both Steam Water and Domestic Water rates equal to 150% of the rates charged to users located within the City limits throughout the term of this contract, unless City ' s City Council completely eliminates the standard out-of-city additional charge estab- lished by ordinance, in which event Company shall thereafter pay the same rates charged to users within the City limits. The use of Steam Water and Domestic Water by Company shall be measured by separate water meters. 3 . City will furnish sanitary sewer service to Com- pany on Subject Property for disposal of Steam Water at rates equal to 150% of the rates charged to users located within the City limits computed on the basis of the cal- culated sewage use by Company as determined by engineering data and certification satisfactory to City as follows: (a) Prior to August 1, 1988, Company may place an average of 100 gallons per minute of water in the sanitary sewer of City servicing Subject Property. Although the average discharge of Steam Water shall not exceed 100 gallons per minute, the maximum peak discharge of Steam Water shall not exceed 120 gallons per minute. (b) On August 1 , 1988 and throughout the balance of the term of this contract, Company may place an average of 24 gallons per minute of water in sanitary sewer of City -2- • 6/3/86 servicing Subject Property. Although the average discharge of Steam Water shall not exceed 24 gallons per minute, the maximum peak discharge of Steam Water shall not exceed 34 gallons per minute. Notwithstanding the authorization hereby granted to use the City ' s sewer system for Steam Water discharged from the steam and cogeneration processes of Company, Company agrees to commence immediately and use its best efforts to secure permission of the Environmental Protection Agency ( "EPA") , Texas Water Commission and other governmental agencies to discharge any remaining Steam Water into Lake Wichita and/or substrata to effect termination of use of the City sewer system for the disposal of such water by August 1 , 1988. In connection therewith, City agrees to the extent of its authority to allow the Company to use Lake Wichita and ap- plicable drainage ditches between the Subject Property and Lake Wichita for disposal of such water so long as any Steam Water emissions meet EPA, Texas Water Commission and all other governmental standards. City will furnish sanitary sewer service to Company for disposal of Domestic Water on Subject Property at rates equal to 150% of the rates charged to users located within the City limits throughout the term of this contract, unless City ' s City Council completely eliminates the standard out- of-city additional charge established by ordinance, in which event Company will thereafter pay the same rates charged to users within the City limits. 4 . City will furnish solid waste collection and re- moval service to Company on Subject Property at rates equal to 125% of the rates charged to commercial and business establishments within the City limits throughout the term of this contract, unless City' s City Council completely elimi- nates the standard out-of-city additional charge established by ordinance, in which event Company shall thereafter pay -3- 6/3/86 the same rates charged to users within the City limits. Company may use this service at its option. 5 . The water service, sanitary sewer service and solid waste collection service provided to Company by City shall be subject to the ordinances of City as presently existing and as may be hereinafter amended. 6 . City will furnish fire protection service to Com- pany on Subject Property. 7 . Company shall not allow the sale of fireworks on Subject Property. 8 . Company will pay to City each year during this contract, as payment in lieu of taxes, an amount in cash, or cash equivalents acceptable to City, equal to 25% of that amount that their normal City taxes would have been that year had they been in the City limits. Each annual payment shall be made between October 15 and December 31 of each year; the first such payment in lieu of taxes shall be pay- able between October 1 and December 31 of 1987 . In comput- ing the amount that their normal City taxes would be each year during this contract, the following rules shall be applied: a. The appraised value of the land shall be de- termined in the same manner that other land in the City is appraised. b. The initial appraisal of the buildings and other improvements shall be an amount equal to 92% of the actual costs of such buildings and improvements, which cost figures will be furnished to City by Company. c. The appraised value of the machinery, equip- ment and other personal property except for inventory shall be, throughout the term of this contract, an amount equal to 65% of the actual costs of such machinery, equipment, and other personal property, which cost figures will be fur- nished to City by Company. -4- 6/3/86 d. The appraised value of the inventory shall be determined in the same manner that the inventory of other firms in the City are appraised, less the freeport exemp- tion. e. Each year the then-current tax rate as estab- lished by the City Council shall be applied to the assessed value (as determined under a. through d. above) to obtain the amount that the normal City taxes would have been that year had the property been located within the City limits. The payment in lieu of taxes shall be 25% of the amount so computed. 9 . This Contract does not release nor waive any obli- gation to the City in connection with any paving, curb and gutter, or other improvement liens which may be assessed against Subject Property. 10. Company shall not assign this contract, nor assign nor sublet the lease or any part thereof on Subject Property without the written consent of City ; except no consent shall be required for any mortgage or collateral assignment in connection with financing the purchase of improvements located on Subject Property. Company shall not, without written consent of City, construct any improvements on Subject Property which are not related to the cogeneration facility. This contract shall be binding upon and inure to the benefit of the successors and assigns (as permitted) of each party hereto. 11. In the event Company should breach any of the pro- visions of this contract, and it fails to remedy such breach within thirty ( 30) days after having been notified in writing by City to do so, then City shall have the right to terminate this contract, and to proceed to annex Subject Property. 12. City shall initiate proceedings to annex Subject Property into the City limits early enough to be able to complete such proceedings by December 31, 1994, and Subject -5- 1 r A • 6/3/86 Property shall be included on the tax rolls of City on January 1, 1995. 13. Paragraph one of this contract shall be effective as of January 1, 1988; all other provisions of this contract shall be effective upon its execution by all duly authorized parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed by their duly authorized officers on this the 3rd day of June, 1986 . CI ' OF CHITA 7 By / /_ .�1'/2.4//7?,, / J' les Betz ina, C , Manager ATTEST: yt..t ll 32 ,. . );(..et)91lLd----/ Ci y Clerk Approved as to Form: - P4h,..11)---0//104;/) ' City At jt9r7 WICHITA FALL RGY COMPANY By: W CHIT ENERGY INVESTMENTS, I - nagi g joint venture partner By rerald N. Crai resident ATT T: . ; ;If4 ?! :1 Secretary FWICHF. EN -6- I ra • EXHIBIT "A" WICHITA COGENERATION FACILITY PROPERTY DESCRIPTION COGENERATION SITE AND TESCO SUBSTATION A 3. 71 acre tract of land in a portion of Lot 1, CertainTeed Products Addition, Wichita Falls, Wichita County, Texas as re- corded in Volume 22, Page 22 , Wichita County Plat Records and being described by metes and bounds as follows : BEGINNING at a bridge spike found; said bridge spike bears South 31° 37 ' 58" West 1, 227. 74 feet to a 1/2" iron reinforcing rod set at the intersection of the Northwest line of the Fort Worth and Denver Railroad and the North line of F.M. Highway No. 369. THENCE North 320. 00 feet to a bridge spike found THENCE East 420. 00 feet to a 1/2" iron reinforcing rod found THENCE South 320 . 00 feet to a 1/2" iron reinforcing rod found THENCE West 188 .15 feet to a bridge spike found THENCE South 177 . 00 feet to a bridge spike found THENCE West 153. 00 feet to a bridge spike found THENCE North 177. 00 feet to a bridge spike found THENCE West 78. 85 feet to the place of beginning and containing 3. 71 acres of land more or less. PROPANE FARM A 1. 28 acre tract of land in a portion of Lot 1, CertainTeed Products Addition, Wichita Falls, Wichita County, Texas as re- corded in Volume 22, Page 22 , Wichita County Plat Records and being described by metes and bounds as follows : BEGINNING at a bridge spike found; said bridge spike bears South 10° 16 ' 04" West 543. 91 feet to a 1/2" iron reinforcing rod set at the intersection of the Northwest line of the Fort Worth and Denver Railroad and the North line of F.M. Highway No. 369 . THENCE North 99 . 00 feet to a 1/2" iron reinforcing rod set THENCE North 24° 34 ' 02" East 38 .48 feet to a 1/2" iron rein- forcing rod set THENCE North 72° 08 ' 52" East 26.87 feet to a 2" galvanized iron pipe corner post found THENCE South 89° 52 ' 08" East 101.43 feet to a 2" galvanized iron pipe corner post found THENCE North 00° 04 ' 09" East 88.00 feet along a fence to a point THENCE East 156. 89 feet to a bridge spike found THENCE South 230. 00 feet to a bridge spike found THENCE West 300. 00 to the place of beginning and containing 1. 28 acres of land more or less. RIGHT-OF-WAY EASEMENTS A 1. 05 acre tract of land in a portion of Lot 1 , CertainTeed Products Addition, Wichita Falls, Wichita County, Texas as re- corded in Volume 22, Page 22 , Wichita County Plat Records and being described by metes and bounds as follows : EXHIBIT "A" (Cont'd) BEGINNING at a bridge spike found at the Southwest corner of the Cogeneration Site; said bridge spike bears South 31° 37 ' 58" West 1, 227. 74 feet to a 1/2" iron reinforcing rod set at the inter- section of the Northwest line of the Fort Worth and Denver Railroad and the North line of F.M. Highway No. 369 . THENCE East 78. 85 feet along the South line of the Cogeneration Site to a bridge spike found THENCE South 554 .94 feet to a 1/2" iron reinforcing rod set on the Northwest line of a 20 foot Sewer Easement adjacent and parallel to the Northwest line of said Fort Worth and Denver Railroad THENCE South 57° 09 ' 21" West 93. 86 feet along the Northwest line of said 20 foot Sewer Easement to a 1/2" iron reinforcing rod set THENCE North 605. 85 feet to the place of beginning and containing 1. 05 acres of land more or less . A 0 . 11 acre tract of land in a portion of Lot 1, CertainTeed Products Addition, Wichita Falls, Wichita County, Texas as re- corded in Volume 22, Page 22, Wichita County Plat Records and being a 20 foot wide easement with 10 feet on each side of the centerline described by metes and bounds as follows : BEGINNING at a bridge spike set in the West line of a 78. 85 foot easement; said spike bears South 41° 46 ' 05" West 966 . 68 feet to a 1/2" iron reinforcing rod set at the intersection of the North- west line of the Fort Worth and Denver Railroad and the North line of F.M. Highway No. 369. THENCE West 246. 97 feet to a bridge spike set in the East line of the New Propane Farm and containing 0. 11 acres of land more or less . A-2