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Min 04/03/1979 150 Wichita Falls, Texas Memorial Auditorium Building April 3, 1979 Items 1 & 2 The Board of Aldermen of the City of Wichita Falls, Texas , met in regular session on the above date in the Council Room of the Memorial Auditorium Building at 8:30 o'clock A.M. , with the following members present. Kenneth Hill Mayor I Hardy McAlister Fred E. Bassett Carol Russell Aldermen Curtis Smith Jim Thomas Raymond Adcock Gerald Fox City Manager H. P. Hodge, Jr. City Attorney Gerald Carlson Chief Accounting Officer Wilma J. Thomas City Clerk The invocation was given by Dale Foster, Minister of Faith Village Church of Christ. Item 3 Moved by Alderman Adcock that minutes of the meeting held March 20, 1979, be approved. Motion seconded by Alderman McAlister, and carried unanimously. Items 4a-9a Moved by Alderman McAlister that Items 4a through 9a on the consent agenda be approved. Motion seconded by Alderman Adcock. Item 4a /ORDINANCE NO. 3445 AN ORDINANCE CLOSING -AND ABANDONING THE ALLEY IN BLOCK B OF THE KEMP-KELL AND JOLINE ADDITION. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays : None J Item 5a V RESOLUTION NO. 2317 RESOLUTION AWARDING CONTRACT TO WILLEN ELECTRIC CO. , INC. FOR CONSTRUCTION OF BRIDWELL PARK BALLFIELD LIGHTING. WHEREAS, the City of Wichita Falls has advertised for bids for the construction of Bridwell Park ballfield lighting; and, WHEREAS, four bids were received, and it is found that Willen Electric Co. , Inc. , who bid $7,250, is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Said bid of Willen Electric Co. , Inc. in the amount of $7,250 is hereby accepted, and the City Manager is authorized to execute for the City of Wichita Falls a contract with Willen Electric Co. , Inc. for the construction of such improvements. 151 Item 5a, cont'd. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays: None V Item 6a RESOLUTION NO. 2318 RESOLUTION ACCEPTING CONSTRUCTION OF FENCE AROUND TENNIS COURT AT LIONS PARK. WHEREAS, the City of Wichita Falls and Ace Fence Co. entered into a contract dated January 8, 1979, wherein said contractor agreed to construct a fence around the tennis court in Lions Park; and, WHEREAS, said construction has been completed in accordance with the plans and specifications; and, WHEREAS, the contract price for such fence was $4,106.40, none of which has been paid to the contractor. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The construction of such fence is hereby accepted by the City of Wichita Falls, and the City Manager is directed to pay to the said contractor the contract price for such fence. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas , and Adcock Nays: None ,/item 7a Authority was granted to advertise for bids for water and sewer improvements under the Community Development program. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays : None ,, Item 7b Authority was granted to advertise for bids for hydrofluosilicic acid for water purification. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays : None Item 8 Minutes of the meetings of the following boards and commissions were received. a. Park Board - March 28, 1979 b. Planning Board - March 14, 1979 c. Design Review Commission - March 15 and 21 , 1979 d. Mayor's Commission on Status of Women - March 1 , 1979 e. Arts Commission - March 23, 1979 Ayes: Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays: None ,/Item 9a A public hearing on hazardous structures was scheduled for May 1 , 1979. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays : None i Item 10a The public hearing was opened on hazardous structures. No one desired to be heard. 152 Item 10a, cont'd. Y ORDINANCE NO. 3446 ORDINANCE CLOSING HEARING AND FINDING CERTAIN BUILDINGS AND/OR STRUCTURES TO BE DANGEROUS; COMMANDING PROPERTY OWNERS TO REPAIR, VACATE OR DEMOLISH SAID BUILDING AND/OR STRUCTURES WITHIN THIRTY (30) DAYS OF THE DATE OF THIS ORDINANCE AND DECLARING AN EMERGENCY. Moved by Alderman McAlister that Ordinance No. 3446 be passed. Motion seconded by Alderman Adcock, and carried by the following vote. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock Nays : None Item 10b The public hearing was opened on the 1979 Assessment Paving Program. Harry Campsey appeared, representing the Boys Club, on paving of Industrial Boulevard. They do not object to the paving, but inquired what arrangements can be made for them to pay for it. The City Manager explained that payment is not due until 30 days following notification that the project has been completed. This will probably take at least a year. If they choose not to pay in full at that time, the City will allow property owners to take advantage of an eight-year payout, with eight percent interest on the balance. Alton R. Skelton, 1300 38th Street, inquired on what criteria is the assessment on Travis Street based? The City Manager explained that the maximum assessment is set at $10.00 per foot for front property, and $6.00 per foot for side property. This represents about one-third of the total cost of the project. The improvements were explained. No one else desired to be heard. ORDINANCE NO. 3447 ORDINANCE CLOSING HEARING AND LEVYING ASSESSMENTS FOR PART OF THE COST OF IMPROVING VARIOUS STREETS, DESIGNATED AS THE 1979 ASSESSMENT PAVING PROGRAM IN THE CITY OF WICHITA FALLS, TEXAS, FIXING CHARGES AND LIENS AGAINST ABUTTING PROPERTY THEREON, AND AGAINST THE OWNERS THEREOF; PROVIDING FOR THE COLLECTION OF SUCH ASSESSMENTS AND THE ISSUANCE OF ASSIGNABLE CERTIFICA- TIONS IN EVIDENCE THEREOF; RESERVING UNTO THE BOARD OF ALDERMEN THE RIGHT TO ALLOW CREDITS REDUCING THE AMOUNT OF THE RESPECTIVE ASSESSMENT TO THE EXTENT OF ANY CREDIT GRANTED; DIRECTING THE CITY CLERK TO ENGROSS AND ENROLL THE ORDINANCE BY COPYING THE CAPTION OF SAME IN THE MINUTES OF THE BOARD OF ALDERMEN OF WICHITA FALLS, TEXAS AND BY FILING THE ORDINANCE IN THE ORDINANCE RECORDS OF SAID CITY; PROVIDING AN EFFECTIVE DATE, PROVIDING SUNDRY MATTERS INCIDENT THERETO, AND DECLARING AN EMERGENCY. Moved by Alderman Thomas that Ordinance No. 3447 be passed, amending the engineer' s rolls from $10.00 per foot to $7.50 per foot on the following properties : Wayland D. Keith, Industrial Boulevard; Boys Club/Sam Francis, Industrial Boulevard; Sam Francis , Industrial Boulevard; and C.W.L. Dennis , Onaway Trail . Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas, and Adcock 'qw' Nays : None The following persons were not present for the public hearing, but appeared under Item 16b regarding the paving. a. Wayland D. Keith stated that he does not believe it is worth paving at the rate which has been set. The Mayor informed him that the assessment has been reduced from $10.00 to $7.50 per foot. b. Sam Francis stated that he also has some property on Industrial Boulevard, and does not feel that the paving is justifiable. The Mayor informed him that his assessment has also been reduced from $10.00 to $7.50 per foot. 155 Item 13c, cont'd. WHEREAS, there is a need to setup an in-service training program for the staff of Child Care, Inc. , and there is a lack of community resources to fund such a project; and, WHEREAS, a grant in the amount $14,780 is available from the Texas Department of Community Affairs, which will provide a consultant's salary and materials for an in-house training program for Child Care, Inc. 's care-giving employees, which will be adopted and used on a continuing basis. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The City Manager is hereby authorized and directed to submit an application for such a grant in the amount of $14,780 with the Texas Department of Community Affairs; he is further authorized to sign any necessary documents, including the grant contract, _ which may be required to obtain such grant. Moved by Alderman Thomas that Resolution No. 2321 be passed. Motion seconded by Alderman McAlister, and carried by the following vote. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas , and Adcock Nays: None ,' Item 14a A proposed resolution was presented awarding the low bid for water pump station for East expressway area. ✓RESOLUTION NO. 2322 RESOLUTION AWARDING CONTRACT TO DECKER CONSTRUCTION COMPANY FOR CONSTRUCTION OF WATER PUMP STATION FOR EXPRESSWAY EAST INDUSTRIAL DISTRICT. WHEREAS, the City of Wichita Falls has advertised for bids for the construction of a water pump station for Expressway East Industrial District; and, WHEREAS, five bids were received, and it is found that Decker Construction Company, of Abilene, Texas, who bid $145,900, is the lowest responsible bidder. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Said bid of Decker Construction Company in the amount'of $145,900 is hereby accepted, and the City Manager is authorized to execute for the City of Wichita Falls a contract with Decker Construction Company for the construction of such improvements. Moved by Alderman Thomas that Resolution No. 2322 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes: Mayor Hill , Aldermen McAlister, Basset, Russell , Smith, Thomas, and Adcock Nays : None _Item 14b A proposed resolution was presented awarding the bid for sanitary sewer lift station on Airport Drive. /RESOLUTION NO. 2323 RESOLUTION AWARDING CONTRACT TO BOWLES CONSTRUCTION COMPANY FOR CONSTRUCTION OF SANITARY SEWER LIFT STATION AND FORCE MAIN ON AIRPORT DRIVE. WHEREAS, the City of Wichita Falls has advertised for bids for the construction of a sanitary sewer lift station and force main to be located on Airport Drive for transfer of waste water from the City system to Sheppard Air Force Base treatment plant; and, WHEREAS, five bids were received, and it is found that Bowles Construction Company, who bid $68,296.29, is the lowest responsible bidder. 156 Item 14b, cont'd. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS , TEXAS, THAT: Said bid of Bowles Construction Company in the amount of $68,296.29 is hereby accepted, and the City Manager is authorized to execute for the City of Wichita Falls a contract with Bowles Construction Company for the construction of such improvements. Moved by Alderman Thomas that Resolution No. 2323 be passed. Motion seconded by Alderman McAlister, and carried by the following vote. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas , and Adcock Nays : None I Item 14c A proposed resolution was presented awarding the bid for concessions at Jalonick and Williams Parks. It was noted that no bids were previously received at these parks. The City provides a small building and water and electricity hook-ups. ✓RESOLUTION NO. 2324 RESOLUTION AWARDING CONTRACTS FOR CONCESSION OPERATIONS AT WILLIAMS AND JALONICK PARKS. WHEREAS, heretofore the City of Wichita Falls advertised for bids for concession operations at several parks , including Williams and Jalonick Parks, and no bids were received for the two named parks ; and, WHEREAS, Mr. Robert L. Herron has offered to pay $30 per month for the concession rights at Williams Park, and $40 per month for the concession rights at Jalonick Park; and, WHEREAS, it is found that such offers should be accepted. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: Such offers of Robert L. Herron for concession rights at Williams Park and Jalonick Park are hereby accepted, and the City Manager is authorized to execute contracts with him for concession rights at such parks during the 1979 season. Moved by Alderman Smith that Resolution No. 2324 be passed. Motion seconded by Alderman Russell , and carried by the following vote. Ayes : Mayor Hill , Aldermen McAlister, Bassett, Russell , Smith, Thomas , and Adcock Nays : None ✓Item 15a Authority was requested to advertise for bids for equipment and furnishings for the Activities Center. Estimated cost is approximately $81 ,000. Moved by Alderman Thomas that authority be granted to advertise for bids as requested. Motion seconded by Alderman Smith, and carried unanimously. ✓Item l6b Alderman Thomas inquired if we have any program whereby trash and debris can be picked up on a certain day? The City Manager stated that we are designing something of this nature for the latter part of April . Alderman Adcock inquired about clean up- fix up week? Mr. Fox thought it could perhaps be coordinated with the downtown merchants. 157 Mayor Hill mentioned the bad condition of the Avenue U and Buchanan intersection caused from water from the car wash draining down the street. Ernest Lillard, Director of Public Works , stated that he believes we have a way to handle this situation. Mayor Hill read an article from Internal Revenue Service regarding an income tax deduction on water and sewer services owned by a city. It covers maintenance, repairs, and interest. He wonders if our citizens may be allowed to take this deduction. It is up to the city to tell the citizens what percent of its utilities are deductible. The Mayor requested a quick report on this matter from the City Attorney. Alderman Bassett inquired concerning trash at Wichita Falls High School . Ernest Lillard stated that he did not get a report on it, but would check on it. Alderman Russell invited everyone to view the progress on the Activities Center, `f and congratulated Roger McKinney on his new position of Planning Director. Item 16a An executive session was called at 9:50 A.M. to discuss personnel matters. The meeting resumed at 10:00 A.M. Moved by Alderman Thomas that the following persons be appointed to the Arts Commission for two-year terms to expire April 25, 1981 . a. Jerry Estes , Helen Henry, Carolyn Sanders, Pat Jones, Dr. Jennie Louise Hindman, and Madge Muehlberger (reappointed) b. Troy Jensen and Jan Morrison (appointed) Motion seconded by Alderman Bassett, and carried unanimously. Moved by Alderman Thomas that Warren Boone, Jake Holmes, and Gene Stephens be appointed to the 1979 Tax Equalization Board, and that Robert Gragg be appointed as Alternate, subject to approval by the School Board. Motion seconded by Alderman Smith, and carried unanimously. The Board of Aldermen adjourned at 10:02 A.M. PASSED AND APPROVED this day of 6_ IIXA 1979. A MAYOR ATTEST: CIT CLERK WATER PURCHASE CONTRACT THIS CONTRACT for the sale and purchase of water is entered into as of the day of 1979, 1wtween the City of Wichita Falls, Texas, heret inafter referred to as the "City", and City of Electra, Texas, hereinafter referred to as "Electra". WITNESSETII : WHEREAS, Electra is organized and established under provisions of the laws of the State of Texas. One of the duties of Electra is the construction and operation of A �j water supply and distribution system serving water users within the corporate limit', I of Electra and to accomplish this purpose, Electra will require a supply of raw wate i; and, � WHEREAS, the City owns Lake Kickapoo and Lake Arrowhead, water reservoi rs with capacity capable of serving the present customers of the City system and the esti- mated number of water users to be served by Electra; and, WHEREAS, by Resolution No. enacted on the day of 1979, by City, (Attached hereto as Exhibit "A"), which authorized the City to sell raw water to Electra; and, WHEREAS, Electra will operate a water treatment and distribution system, and serve its customers; and WHEREAS, by resolution of the City Commission of Electra (Attached hereto as Exhibit "B"), enacted on the day of 1979, such City Com- mission of Electra authorized purchase of raw water by Electra from the City in accord- ance with the terms set forth in the said resolution and further authorized execution of this contract. } NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and Electra mutually agree to the following; to-wit: Section 1. 0: City will allow water (RAW WATER) to be diverted from Lake ' Kickapoo at the diversion point shown on the plans and approved by the City, in suf- ficient quantities to meet Electra's needs for the resale to consumers, subject only to terms and provisions of this contract. - i i Section 1. 1: Diversion point shall be at the water line and at an intake strue- ture at Lake Kickapoo, Texas, at a location mutually acceptable to the City and Electra. It is also the intent of Electra to construct a transmission line from Lake Kickapoo to Electra. I Section 1. 2: Maximum amount of water to be diverted by Electra from Lake I Kickapoo shall not exceed five hundred thousand (500, 000) gallons per day unless a greater amount is approved in writing by the City. Section 1. 3: Electra shall furnish, install, operate and maintain at its own ' expense at the diversion point, the necessary metering equipment, including a mete house or pit, and required devices of standard type for properly measuring and record- I�� ing the quantity of water diverted from Lake Kickapoo. Type and location of meter s all be agreed to by City and Electra prior to diversion of water. Electra shall calibrate�li such metering equipment whenever requested by City but not more frequently than once I� ever twelve 12 y ( ) months. A meter registering not more than two percent (270) above, or below the test result of the rated capacity of the meter shall be deemed accurate. The previous reading of any meter disclosed by test to be inaccurate shall be corrected for the twelve (12) months previous to such test in accordance with the percentage of inaccuracy found by sucn tests and existing records. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water diverted in the corresponding period immediately prior to the failure, based on existing records unless City and Electra shall agree on a different amount. Section 1.4: Thirty (30) days prior to estimated date of completion of con- struction of Electra transmission system, Electra will notify City in writing the date of initial diversion of water. Section 1. 5: When requested by Electra after metering equipment has been in- stalled, the City will agree to diversion of'sufficient water for testing, flushing, and trench filling the system during construction for which Electra will pay City at the rate set out of fourteen cents ($0. 14) per one thousand (1, 000) gallons. However, minimum rate will not apply to this water used for testing the system. r. 1 1 -2- i i Section 1.6: Location and Easements The location of the proposed pump station and intake structure shall be opproved by the City, and the pump station site acquired or obtained by long term lca,,,e at an agreed upon price from the City before detailed plans and specifications are ►lkade. Easements for the pipe lines across City i u property shall be acquired from the City before any pipe lines are constructed. I Section 1. 7: Approval - Pump station and pipe lines must be approved by Texas State Health Department before any construction. it Section 1. 8: Plans and Specifications Approval - Plans and Specifications shall be approved by the City before advertising for construction of any facilities. Section 2. 0: The cost of water purchased by Electra shall be based on the following schedule: $0. 14 per 1, 000 gallons Minimum Monthly Bill $400. 00 This water rate is subject to modification annually based upon a rate making system and formula to be developed by Wichita Falls and submitted to Electra by January 1y, 1980. Any change in water rates will become effective with water bills rendered after ' April 30 of each year. The schedule of rates beginning with all water bills rendered after this system is placed into operation could also include a "reservoir capacity charge" designed to cover the cost of reservoir space required to meet Electra's future needs but for water not actually being taken in the maximum daily amount as contained r in Section 1. 2 of this contract. t ' Section 2. 1: The City will read the Electra meter on the first day of each month during the term of this Contract. Electra and City shall have free access to read meters daily if they so desire. The City will provide Electra no later than the loth day of each month, with an itemized statement of the amount of water metered to Electra during; the preceding month. Electra shall pay to the City the amount of itemized statement for any month no later than 20th day for the preceeding month's usage. Section 3. 0: This Contract shall extend for a term of forty (40) years from the date of the initial metering of any water to Electra. Unless water is taken within two (2) years from date hereof, this Contract shall be void. At the expiration of the term -3- of this Contract, same may be renewed or extended for such term or terms, as may be agreed upon by the City and Electra.. City may cancel this Contract at any time during the life of the Contract in the ev, nt Electra fails to make any payment due here- under within sixty (60) days after same becomes dire; or, if Electra breaches any cov;- enant herein other than payment of the monthly statement, and such breach continues;) for sixty (60) days after City gives Electra written notice thereof. �I I' II Section 4. 0: Electra shall not he required to furnish water to any resident �I of City. If City extends its city limits to include any consumer of water from Electra, Electra will continue to provide water to such consumer. When City is able to exten' its own water distribution system which could provide such consumer with City's water, !I such consumer shall be allowed the choice of remaining on Electra's system or tyin into City's system. Provided however, it is understood and agreed the foregoing i Section is subject to the restriction of 7U.S. C. Section 1926 (b) as amended. I� I' Section 5. 0: Electra shall permit the water to be used only for normal resit dential, commercial, industrial and municipal purposes. Unless written permission is obtained from City, water shall not be used for agricultural irrigation, cattle feed lots, or any processing or manufacturing concern which uses such water for other than normal domestic quantities. Electra shall permit water to be used only within its city limits and extraterritorial jurisdiction, except for service outside these boundaries in existence at the time of executing this agreement which service area descriptions shall be provided to the City at the time of executing this contract. Electra shall not sell any water to any private party for resale by such private parties to third parties. Section 5. 1: It is distinctly understood between parties hereto that City owes its primary obligation and duty to the citizens of Wichita Falls; in the event of an ex- tended shortage of water, or the supply of water available to City is otherwise dimin- ished over an extended period of time so that it becomes necessary to ration the water sold to citizens of Wichita Falls, the supply of water to Electra consumers shall be reduced or diminished in the same ratio or proportion as the supply to the citizens of Wichita Falls is reduced or diminished. -4- Section G. 0t This Contract is subject to such .r"ties, regulations, or laws, as may he applicable to similar agreements in the State of Texas; the City and �I is Electra will collaborate in obtaining such permits, certificates, or the like, as may be required to comply herewith. Section 7. 0: Any amendment to this Contract shall be in writing and executed' by both City and Electra. Section 8. 0: This contract shall not be assignable without the approval of City, except Electra may assign and/or mortgage lease to the United States of America, acting through the Farmers Home Administration, However, in the event of any oc- currence rendering Electra incapable of performing under this lease, any successor of Electra, whether the result of legal process, assignment or otherwise, shall suc- ceed to the rights of Electra hereunder. Section 8. 1: The construction of the water supply distribution system by the I� Purchaser is being financed by a loan made or insured by, and/or a grant from, the I United States of America, acting through the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereon pertaining to the undertakings akings of the Purchaser are conditioned upon the approval, in writing, of the , State Director of the Farmers Home Administration. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this Contract to be duly executed in three counterparts, each of which shall constitute an original. CITY OF WICHITA FALLS, TEXAS ATTEST: BY: CITY MANAGER CITY CLERK CITY OF ELECTRA, TEXAS BY: ATTEST: MAYOR SECRETARY -5- P WATER PURCHASE CONTRACT THIS CONTRACT for the sale and purchase of water is entered into as of the day of 1979, between the City of Wichita Falls, Texas, I I hereinafter referred to as the "City", and Red River Authority of Texas, herein- after referred to as "Authority". WITNESSE TH : WHEREAS, Authority is organized and established under provisions of the i laws of the State of Texas. One of the responsibilities of Authority can be the con- it struction and operation of a water supply and distribution system serving water user within the Lake Arrowhead area and to accomplish this purpose, Authority will re- quire a supply of raw water; and, WHEREAS, the City owns.Lake Arrowhead, a water reservoir with capacity i capable of serving the present customers of the City system and the estimated num- ber of water users to be served by Authority; and, i WHEREAS, by Resolution No. , enacted on the day of , 1979, by City, (Attached hereto as Exhibit "A"), which authorized the City to sell raw i water to Authority; and, WHEREAS, Authority will operate a water treatment and distribution sys- tem, and serve customers on Lake Arrowhead City and State owned properties as per Exhibit "C" attached; and, WHEREAS, by resolution of the Board of Directors of Authority (Attached hereto as Exhibit "B" enact ed on the day of 1979, such Board � of Directors of Authority authorized purchase of raw water by Authority from the City in accordance with the terms set forth in the said resolution and further authorized execution of this contract. NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and Authority mutually agree to the following, to-wit: Section 1. 0: City will allow water (RAW WATER) to be diverted from Lake Arrowhead at the diversion point shown on the plans and approved by the City, in sufficient quantities to meet Authority's needs for resale to consumers, subject ti only to terms and provisions of this contract. Section 1. 1: Diversion point shall be at the water line and at an intake structure at Lake Arrowhead, Texas, at a location mutually acceptable to the City and Authority. Section 1.2: Maximum amount of water to be diverted by Authority from ii Lake Arrowhead shall not exceed one hundred fifty thousand (150, 000) gallons per day unless a greater amount is approved in writing by the City. Section 1. 3: Authority shall furnish, install, operate and maintain at I� its own expense at the diversion point, the necessary metering equipment, includin' a meter house or pit, and required devices of standard type for properly measuring and recording the quantity of water diverted from Lake Arrowhead. Type and locat' n j I i of meter shall be agreed to by City and Authority prior to diversion of water. Auth rity I shall calibrate such metering equipment whenever requested by City but not more f �- quently than once every twelve (12) months. A meter registering not more than two i percent (2%) above or below the test result of the rated capacity of the meter shall deemed accurate. The previous reading of any meter disclosed by test to be inaccurate shall be corrected for the twelve (12) months previous to such test in accordance with the percentage of inaccuracy found by such tests and existing records. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water diverted in the corresponding period im- mediately prior to the failure, based on existing records unless City and Authority shall agree on a different amount. Section 1.4: Thirty (30) days prior to estimated date of completion of construction of Authority water supply and distribution system, Authority will notify City in writing the date of initial diversion of water. Section 1.5: When requested by Authority after metering equipment has been installed, the City will agree to diversion of sufficient water for testing, flushing r and trench filling the system during construction for which Authority will pay City at the rate set out of fourteen cents ($0. 14) per one thousand (1, 000) gallons. However, minimum rate will not apply to this water used for testing the system. Section 1.G: Location and Easements - The location of the proposed pump station, treatment plant and intake structure shall be approved by the City, and the -2- i pump station and plant site acquired or obtained by long term lease at an agreed upon i price from the City before detailed platy-4 and specifications are made. Easements for the pipe lines across City property shall be acquired from the City before any pipe i I lines are constructed. Section 1. 7: Approval - Puin station treatment process and Pl P , p pipe lines must be approved by Texas State Health Department before any construction. Section 1. 8: Plans and Specifications Approval - Plans and Specifications shall be approved by the City before advertising for construction of any facilities. Section 2. 0: The cost of water purchased by the Authority shall be based in accordance with the following schedule: $0.14 per 1, 000 gallons i This water rate is subject to modification annually based upon a rate making system r and formula to be developed by Wichita Falls and submitted to the Authority by Jan- uary 1, 1980.. Any change in water rates will become effective for all water bills rendered after April 30th of each year. The schedule of rates beginning with all water bills rendered after this system is placed into operation could also include a "reservoir i capacity charge" designed to cover the cost of reservoir space required to meet Auth- ority's future needs, but for water not actually being taken in the maximum daily amount as contained in Section 1. 2 of this contract. i Section 2. 1: The City will read the Authority meter on the first day of each month during the term of this contract. Authority and City shall have free access to read meters daily if they so desire. The City will provide Authority no later than the loth day of each month, with an itemized statement of the amount of water metered to . Authority during the preceding month. Authority shall pay to the City the amount of itemized statement for any month no later. than 20th day for the preceding month's usage. i Section 3. 0: This contract shall extend for a term of forty (40) years from the date of the initial metering of any water to Authority. Unless water is taken within two (2) years from date hereof, this contract shall be void. At the expiration of the term of this contract, same may be renewed or extended for such term or terms, as may be agreed upon by the City and Authority. City may cancel this contract at any time during the life of the contract in the event Authority fails to make any payment due -3- hereunder within sixty (GO) days after same becomes clue; or, if Authority breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) clays after City gives Authority written notice thereof. �I Section 4. 0: Authority shall n01. be required to furnish water to any resi- dent of City. If City extends its city li mil r-> to include any consumer of water from �j Authority, Authority will continue to provide water to such consumer. When City is i able to extend its own water distribution sYstem which could provide such consumer 'I with City's water, such consumer shall be allowed the choice of remaining on Authority system or tying into City's system. Provided however, it is understood and agreed the foregoing Section is subject to the restriction of 7U.S. C. Section 1926 b as amend d. Section 5. 0: Authority shall permit the water to be used only for normal I residential, commercial and municipal. purposes. Unless written permission is ob- I i tained from City, water shall not be used for agricultural irrigation, cattle feed lots, • I or any processing or manufacturing concern which uses such water in other than normall', residential or commercial quantities. Authority shall not permit water to be used by other municipalities or for commercial or residential subdivisions not in existence at the date of executing this contract. Authority shall not sell any water to any private party for resale by such private parties to third parties. The service area of the Authority shall be restricted to the area as indicated in Exhibit "C" attached which would include City-owned leased lands and State-owned lands as well as two private subdivisions on Lake Arrowhead which were final platted as of the date of this contract and conditioned by the other restrictions in this section. Any extension of the service area and system must be approved in writing by the City. Section 5. 1: It is distinctly understood between parties hereto that City owes its primary obligation and duty to the citizens of Wichita falls; in the event of an extended shortage of water, or the supply of water available to City is otherwise diminished over an extended period of time so that it becomes necessary to ration the water sold to citizens of Wichita halls, the supply of water to Authority's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the citizens of Wichita halls is reduced or diminished. -4- i Section G. 0: This contract is subject to such rules, regulations, or laws, i as may be applicable to similar agreements in the State of Texas; the City and Auth- ority will collaborate in obtaining such lwrmits, certificates, or the like, as may be required to comply herewith. 'I Section 7. 0: Any amendment I o this contract shall be in writing and exe- cuted by both City and Authority. I Section 8. 0: Lake Arrowhead is a primary water source facility for the I'� Ii City. Improvements at Lake Arrowhead are not now served by a waste water collet- I tion and treatment system. Septic tanks a re required by City Lease Agreement in . accordance with State Health Department and City standards. The City will periodic- ally conduct a septic tank inspection program. Upon notification by the City, the i Authority will discontinue water service to any customer who does not maintain their i septic tank and system in accordance with State health Department and City standards. At some future date, City may require that a sanitary sewer collection and treatment system be constructed and operated to serve Authority's water customers in order to i prevent pollution of City's water supply. If such sanitary sewer collection and treat- ment system is not constructed within twenty-four (24) month's of notification by the City, Authority shall discontinue its water service under this contract. Upon com- pletion of the sanitary sewer collection and treatnent system, all of Authority's water customers will be required to tie into the system within ninety (90) days or Authority agrees to discontinue water service to those customers who have not made connection. Section 9. 0: This contract shall not be assignable without the approval of City, except Authority may assign and/or mortgage this lease to the United States of America, acting through the Farmers Home Administration. However, in the event of any occurrence rendering Authority incapable of performing under this lease, any successor of Authority, whether the result of legal process, assignment or otherwise, shall succeed to the rights of Authority hereunder. Section 9. 7_: The construction of the water supply distribution system by the Purchaser is being financed by a loan made or insured by, and/or a grant from, the United States of America, acting through the harmers home Administration of the United States Department of Agriculture, and the provisions hereon pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of I the State Director of the Farmers Home Administration. I IN WITNESS Wll l,,'REOF, the parties hereto, acting under authority of their respective governing bodies, have caw;ed this contract to be duly executed in three . i . counterparts, each of which shall con:,Utute an original. Ij CITY OF WICHITA FALLS, TEXAS l CITY MANAGER ATTEST: CITY CLI,1'111s i RED RIVER.AUTHORITY OF TEXAS J� BY: GENERAL MANAGER ATTEST: SECRETARY i -6-