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HomeMy WebLinkAboutR-1685-2-99RESOLUTION NO. 1685-2-99( ) ' RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF THE "NORTH TEXAS MUNICIPAL WATER DISTRICT REGIONAL WATER SUPPLY FACILITIES CONTRACT" WITH NORTH TEXAS MUNICIPAL WATER DISTRICT, AND PROVIDING FOR THE EFFECT OF SAID RESOLUTION AND CONTRACT. WHEREAS, the City is a duly incorporated home rule city under the Constitution and laws of the State of Texas; WHEREAS, the District and the City are authorized to enter into this Contract pursuant to the District Act, Chapter 791, Texas Government Code, as amended (the "Interlocal Cooperation Act"), and other applicable laws; WHEREAS, the District owns certain water rights and owns and operates water supply and treatment facilities (the "Existing System") which provide all of the treated water needs of the Cities of Farmersville, Forney, Garland„ McKinney, Mesquite, Plano, Princeton, Richardson, Rockwall, Royse City, and Wylie (the "Initial Contracting Parties") pursuant to a 'North Texas Municipal Water District Regional Water Supply Facilities Amendatory Contract", dated as of August 1, 1988 ' (the "Initial Contract"); WHEREAS, the City requested, and the District accepted the City's request, that the territory comprising the City be annexed to the District and, thereby become a "member city" of the District; WHEREAS, by Order of the Texas Natural Resource Conservation Commission (the "TNRCC"), dated September 15, 1998, the TNRCC declared the results of such election and ordered that the territory comprising the City be annexed to the District NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS: SECTION 1: That for and on behalf of the City of Allen, the Mayor of the City of Allen is hereby authorized and directed to sign, deliver, and otherwise execute, and the City Secretary of the City of Allen is hereby authorized and directed to sign, attest, and seal, the "North Texas Municipal Water District Regional Water Supply Facilities Contract" (the "Contract") with North Texas Municipal Water District in substantially the foam and substance attached to this Resolution and made a part hereof for all purposes. SECTION 2: That upon its execution by the parties thereto, the Contract shall be binding upon the City of Allen in accordance with its terns and provisions. ' SECTION 3: That this Resolution shall take effect and be in full force and effect from and after the date of its adoption and passage, and it is so resolved; and all ordinances and resolutions of the City of Allen in conflict herewith are hereby amended or repealed to the extent of such conflict, and all such ordinances and resolutions, and any contracts or agreements or parts authorized thereby, shall be of no further force or effect upon execution of the Contract to the extent of any such conflict. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 4 th DAY OF FEBRUARY, 1999. APPROVED: - Stephen TeGfrell, MAYOR ATTEST: J y CMC, CITY SECRETARY Resolution No. 1685-2-99(R) CERTIFICATE OF RESOLUTION THE STATE OF TEXAS COUNTY OF COLLIN CITY OF ALLEN We, the undersigned officers of the City of Allen, Texas, hereby certify as follows that: 1. The City Council ofthe City of Allen convened in REGULAR MEETING ON THE 4TH DAY OF FEBRUARY, 1999, at the City Hall, and the roll was called of the duly constituted officers and members of said City Council, to -wit: Steve Terrell, Mayor Kenneth Fulk David Kerr, Mayor Pro -Tem Doug Gallagher Judy Morrison, City Secretary Melissa Owen Susan Bartlemay Lonnie Thomas and all of said persons were present, except the following absentees: Steve Terrell Mayor . thus constituting a quorum. Whereupon, among other business, the following was transacted at said Meeting: a written RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF THE "NORTH TEXAS MUNICIPAL WATER DISTRICT REGIONAL WATER SUPPLY FACILITIES CONTRACT" WITH NORTH TEXAS MUNICIPAL WATER DISTRICT, AND PROVIDING FOR THE EFFECT OF SAID RESOLUTION AND CONTRACT was duly introduced for the consideration of said City Council and duly read. It was then duly moved and seconded that said Resolution be adopted and passed; and, after due discussion, said motion, carrying with it the adoption and passage of said Resolution, prevailed and carried by the following record vote: AYES: All members of said City Council shown present above voted "Aye'; except NOES: 2. A true, full, and correct copy of the aforesaid Resolution adopted and passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that said Resolution has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the adoption and passage of said Resolution; that the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein; and that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, ofthe time, place, and purpose of the aforesaid Meeting, and that said Resolution would be introduced and considered for adoption and passage at said Meeting; and that said Meeting was open to the public, and public notice of the time, place, and purpose of said Meeting was given, all as required by Chapter 551, Texas Government Code. 3. The Mayor of said City has approved, and hereby approves, the aforesaid Resolution; that the Mayor and the City Secretary of said City have duly signed and authenticated said Resolution; and that the Mayor and the City Secretary of said City hereby declare that their signing of this Certificate shall constitute the signing and authentication of the attached and following copy of said Resolution for all purposes. SIGNED AND SEALED the 4th day of February, 1999. SecretaryCify (CITY SEAL) NORTH TEXAS MUNICIPAL WATER DISTRICT REGIONAL WATER SUPPLY FACILITIES CONTRACT THE STATE OF TEXAS NORTH TEXAS MUNICIPAL WATER DISTRICT THIS REGIONAL WATER SUPPLY FACILITIES CONTRACT (the "Contract"), executed on the dates hereinafter set forth but effective as of October 1, 1998 (the "Contract Date"), byand between NORTH TEXAS MUNICIPAL WATERDISTRICT (the "District'), a conservation and reclamation district and political subdivision ofthe State of Texas, created and functioning under Article 16, Section 59, of the Texas Constitution, pursuant to Chapter 62, Acts of the 52nd Legislature, Regular Session, 1951, as amended (the "District Act'), and the CITY OF ALLEN, IN COLLIN COUNTY, TEXAS (the "City"). WITNESSETH: WHEREAS, the City is a duly incorporated home rule city under the Constitution and laws of the State of Texas; WHEREAS, the District and the City are authorized to enter into this Contract pursuant to the District Act, Chapter 791, Texas Government Code, as amended (the "Interlocal Cooperation Act'), and other applicable laws; WHEREAS, the District owns certain water rights and owns and operates water supply and treatment facilities (the "Existing System") which provide all of the treated water needs ofthe Cities of Farmersville, Forney, Garland„ McKinney, Mesquite, Plano, Princeton, Richardson, Rockwall, Royse City, and Wylie (the "Initial Contracting Parties") pursuant to a "North Texas Municipal Water District Regional Water Supply Facilities Amendatory Contract', dated as of August 1, 1988 (the "Initial Contract"); WHEREAS, the District has duly issued and delivered, and there are now outstanding and unpaid, the following described bonds (the "Outstanding Bonds") which were issued to acquire and construct, and to refund bonds issued to acquire and construct, the Existing System: $89,987,321.45 in aggregate principal amount of North Texas Municipal Water District Water System Revenue Bonds, Series 1985, dated August 1, 1985, now outstanding in the aggregate principal amount of $2,982,321; $14,825,000 in aggregate principal amount of North Texas Municipal Water District Water System Revenue Bonds, Series 1989, dated August 1, 1989, now outstanding in the aggregate principal amount of $750,000; $45,705,000 in aggregate principal amount of North Texas Municipal Water District Water System Revenue Refunding Bonds, Series 1992, dated March 1, 1992, now outstanding in the aggregate principal amount of $20,700,000; $24,800,000 in aggregate principal amount of North Texas Municipal Water District Water System Revenue Refunding Bonds, Series 1996, dated April 1, 1996, now outstanding in the aggregate principal amount of $22,935,000; WHEREAS, the District proposes to acquire, construct, and complete additional surface water supply and treatment facilities from the following additional sources: Lake Texoma on the Red River, Cooper Dam and Reservoir in Hopkins and Delta Counties, Texas, a proposed new Bonham Dam and Reservoir in Fannin County, Texas, and other facilities wherever located to enable the District to supply treated water as needed to Contracting Parties and others (the "Projects") and it is expected that Bonds (as defined herein) for all or parts of the Projects will be issued as deemed advisable and necessary by the District; WHEREAS, the Initial Contracting Parties are all "member cities" of the District within the meaning of the Act; WHEREAS, the City currently is a customer of the System under a contract entered into pursuant to the District's policies for serving entities which we not "member cities" within the meaning of the Act; WHEREAS, the City requested, and the District accepted the City's request, that the territory comprising the City be annexed to the District and, thereby become a "member city" of the District; WHEREAS, at an election held on August 8, 1998, voters with the City approved the annexation of the territory comprising the City to the District; WHEREAS, by Order of the Texas Natural Resource Conservation Commission (the "TNRCC"), dated September 15, 1998, the TNRCC declared the results of such election and ordered that the territory comprising the City be annexed to the District; WHEREAS, the Initial Contract makes provision for Additional Contracting Parties to become Contracting Parties with substantially the same rights and obligations as each of the Initial Contracting Parties, upon the execution of a contract similar to the Initial Contract; WHEREAS, the District and the City have determined that, as a "member city" within the meaning of the Act, the City should now become an Additional Contracting Party; WHEREAS, upon the execution of this Contract, the City will become such an Additional Contracting Party, and thus a Contracting Party, in accordance with the requirements of the Initial Contract, with all conditions prerequisite to such execution having been met; WHEREAS, this Contract complies with the requirements ofthe Initial Contract, substantially restates the essential provisions of the Initial Contract, and -is structured to be similar to the Initial Contract to the fullest extent applicable and practicable, including requirements with respect to "minimums", but with such additions and changes that are necessary to meet the actual circumstances, with the effect that the City, as an Additional Contracting Party, hereby adopts the provisions of the Initial Contract, as supplemented and necessarily changed by this Contract; WHEREAS, the "minimums" set for the City in Section 9(c) of this Contract are equitable and have been fixed by the District as required in the Initial Contract; and WHEREAS, it is specifically represented, certified and covenanted that this Contract will provide security forthe owners ofall Bonds (as defined herein) and obligate the City, as an Additional Contracting Party, to make and assume unconditional specific payments with respect to the System and the Bonds; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the District agrees to use its best efforts to acquire, construct, and complete the Projects and other System facilities, when and as the District deems it advisable, and to supply treated water to Contracting Parties and others from the System, upon and subject to the terms and conditions hereinafter set forth, to -wit: Section 1. DEFINITION OF TERMS. The following terms and expressions as used in this Contract, unless the context clearly shows otherwise, shall have the following meanings: (a) "Additional Contracting Party' means any party with which, in accordance with the Initial Contract and the Contract, the District makes a contract similar to this Contract for supplying treated water from the System provided that after execution of any such contract such party shall become one of the Contracting Parties for all purposes of this Contract. (b) "Annual Payment" means the amount of money to be paid to the District by each of the Contracting Parties during each Annual payment Period as its proportionate share ofthe Annual Requirement. (c) "Annual Payment Period" means the District's fiscal year, which currently beings on October 1, of each calendar year and ends on September 30 of the next following calendar year, but which may be any twelve consecutive month period fixed by the District; and the first Annual Payment Period under this Contract shall be the period of October 1, 1998, through September 30, 1999. (d) "Annual Requirement" means the total amount of money required for the District to pay all Operation and Maintenance Expenses ofthe System, and to pay the Bond Service Component of the Annual Requirement as described in Section 9(a) hereof, including debt service on its Bonds, and any sums required to pay or restore any amounts required to be deposited in any special or reserve funds required to be established and/or maintained by the provisions ofthe Bond Resolutions. (e) 'Bond Resolution" means any resolution ofthe District which authorizes any Bonds. (f) 'Bonds" means the Outstanding Bonds listed in the preamble to this Contract, and all bonds hereafter issued by the District, whether in one or more series or issues, and the interest thereon, to acquire, construct, complete, improve, and/or extend the System or any System facilities, including the Projects, and/or otherwise improve or extend the system and any bonds issued to refund any Bonds or to refund any such refunding Bonds. (g) "City" means the "City" as defined in the preamble to this Contract. (h) "Contract" means this "Contract" as defined in the preamble hereto and includes the provisions of the Initial Contract as applicable and as supplemented and necessarily changed hereby. (i) "Contracting Parties" means the City and the "Initial Contracting Parties," as defined in the first paragraph of this Contract, together with any other party or parties which hereafter becomes one of the Contracting Parties by becoming an Additional Contracting party. (j) "Contracting Party" means any one of the Contracting Parties. (k) 'District" means the "District" as defined in the preamble to this Contract. (1) 'Existing System" means the 'Existing System" as defined in the preamble to this Contract. (m) "Initial Contract" means the "Initial Contract" as defined in the preamble to this Contract. (n) "MGD" is an abbreviation for "million gallons ofwater per day" and means a quantity of water during a period of time expressed for convenience in terms of an average annual daily quantity during an Annual Payment Period. The value of 2 MGD, for example, is calculated as follows: two million gallons multiplied by the number of days in an Annual Payment Period. (o) "Operation and Maintenance Expenses" means all reasonable costs and expenses of operation and maintenance of the System, including (for greater certainty but without limiting the generality of the foregoing) repairs and replacements, operating personnel, the cost of utilities, the amounts required to pay the U.S. Army Corps of Engineers or any other federal, state, or local agency for water storage rights or other interests in water in any reservoir, or for the purchase of water, or for the use or operation of any property or facilities, the costs of supervision, engineering, accounting, auditing, legal services, insurance premiums, supplies, services, administration of the System, and equipment necessary for proper operation and maintenance ofthe System, and payments made by the District in satisfaction ofjudgments resulting from claims not covered by the District's insurance arising in connection with the acquisition, construction, operation, and maintenance ofthe System. The term also includes the charges of the bank or banks acting as paying agents and/or registrars for any Bonds. The term does not include depreciation. (p) "Outstanding Bonds" means the Outstanding Bonds, as defined in the preamble to this Contract. (q) "Projects" means the "Projects" as defined in the preamble to this Contract. (r) "System" means collectively the Existing System and the Projects, and all of the District's existing water rights, and water storage, treatment, transportation, distribution, and supply facilities, including all dams, reservoirs, and other properties or interests therein wherever located, which heretofore have been acquired or constructed with the proceeds from the sale of the Outstanding Bonds, or the bonds refunded by same, or with any other bonds or other obligations of the District payable from and secured by a lien on and pledge of any part of the revenues of the System or with revenues from said System together with all future improvements, enlargements, extensions, and additions to any of the foregoing, and all future new facilities and/or water rights, which are acquired or constructed with the proceeds from the sale of any Bonds or revenues from the System, and any water supply or treatment facilities which are deliberately and specifically, at the option of the District, made a part of the System by resolution of the Board of Directors of the District, and all repairs to or replacements of the system. Said terms do not include any District facilities which provide wastewater treatment or disposal services, or solid waste disposal services, of any kind. Said terms do not include any facilities acquired or constructed by the District with the proceeds from the issuance of"Special Facilities Bonds", which are hereby defined as being revenue obligations of the District which are not issued as Bonds (as hereinbefore defined), and which are payable from any source, contract, or revenues whatsoever other than revenues from the System. (s) "treated water' means potable water treated to the standards of quality specified in Section 5 of this Contract. Such term does not include non -potable water such as wastewater or other non -potable water derived, treated, or produced from any source by any Contracting Party. (t) "Water year" means the period of August 1 of each calendar year through July 31, of the next following calendar year. Section 2. The District agrees to use its best efforts to issue its Bonds, payable from Annual Payments under this Contract, to acquire and construct the Projects and other system facilities when and as needed, as determined by the District, to supply treated water to all Contracting Parties. It is anticipated that such acquisition and construction will be in phases and that each phase will be financed by the District through the issuance of one or more series or issues of its Bonds; and the District agrees to use its best efforts to issue its Bonds for such purpose. Bonds also may, at the discretion of the District, be issued to refund any Bonds, and be issued to improve and/or extend any System facilities. The proceeds from the sale and delivery of the Bonds may be used to fund debt service reserve funds or contingency funds and interest during construction to the extent deemed advisable by the District, and for the payment of all ofthe District's expenses and costs in connection with any Projects or other System facilities and the Bonds, including, without limitation, all financing, legal, priming, and other expenses and costs related to the Bonds and the Projects and other System facilities. Section 3. QUANTITY. (a) The District agrees to sell and to deliver treated water under this Contract to the City at its Point or Points of Delivery as described in Section 6 hereof, and the City agrees to take at its Point or Points of Delivery all treated water required for use by the City during the term ofthis Contract, including all treated water for the City's own use and for distribution to all customers served by the City's treated water distribution system, whether inside or outside its boundaries. It is specifically provided, however, that after the Contract Date, the City shall not enter into, renew, or amend with regard to volume of water to be supplied, any agreement to supply any such treated water for use outside its boundaries or the area ofits statutory extraterritorial jurisdiction unless such agreement is approved by the Board of Directors ofthe District (which approval shall not be unreasonably withheld) and made subject and subordinate in all respects to the water requirements of all of the Contracting parties collectively. No Contracting Party shall become a party to any contract for the sale of treated water which would violate or be inconsistent with the provisions of this Contract, and all such contracts shall recognize the priority of treated water use as provided in this Contract. It is the intention of the parties hereto that the System shall be the sole and exclusive source of all treated water supply for each ofthe Contracting Parties. However, notwithstanding the foregoing provisions ofthis subsection (a), if, after the Contract Date, any Contracting Party should legally and finally annex or consolidate with any territory which has a source of treated water supply other than from such Contracting Party, then the District and such Contracting Party are authorized to, and may, negotiate and enter into agreements which would allow the continued use of such other source within such annexed territory upon such terms and conditions as are mutually agreeable to the District and such Contracting Party, and as an exception to the foregoing requirements with respect to exclusivity. The District will use its best efforts to furnish and remain in position to furnish treated water sufficient for all reasonable treated water requirements of each Contracting Party, but its obligation shall be limited to the amount of treated water available to it from the System; and provided that the maximum rate of delivery shall be consistent with the capacities and abilities of System facilities, and shall not exceed the amounts fixed on an equitable and uniform basis by the Board of Directors of the District. The District agrees to use its best efforts to issue its Bonds in amounts necessary to acquire, construct, maintain, improve, and extend the entire System, including the Projects and other System facilities, so as to enable the District to furnish such treated water. As between the Contracting Parties, if treated water from the System must be rationed such rationing shall, within the limits permitted by law, be done by the District on the basis ofthe relative actual total amount of all treated water form the entire System taken by each such Contracting Party, respectively, during the last preceding Annual Payment Period in which rationing among said parties was not necessary. (b) If the District is at any time during the term of this Contract unable to supply all the treated water requirements ofthe Contracting Parties for any reason, or if it should become apparent that the District will become unable to supply the Contracting Parties with their water requirements, and any Contracting Party determines that it is necessary to procure treated water from sources other than the District, then such Contracting Party shall give written notice to the District of its intention and desire to procure treated water from sources other than the District, and its reasons therefor. Unless, within sixty (60) days from the receipt by the District of such written notice, the District shall object to such procurement (such objection to be evidenced by a resolution adopted by a vote of a majority of all members of the District's Board of Directors), then such Contracting Party may proceed to procure such treated water from other sources at its sole cost, and without any liability for damages accruing in favor of or against the District by reason thereof. However, such Contracting Party shall nevertheless continue to be obligated to take from the District and pay for all treated water at any time available to such Contracting Party from the District's System up to the full treated water requirements of such Contracting Party. In no event shall the taking of treated water from a source other than the District relieve any Contracting Party from making all payments due the District under this Contract. Further, all Contracting Parties shall at all times have the right to secure treated water from any possible source (i) in any emergency when the District is unable to deliver treated water from the System because of any "Force Majeure" as defined in the Contract, or (ii) in any other emergency situation, as determined by a Contracting Party for a period not to exceed thirty days, or for any longer period approved in writing by the District. Notwithstanding the foregoing provisions of this Contract, any Contracting Party also may purchase treated water from a source other than the System, if the District determines that such purchase is in the best interests of the District and the Contracting Parties and gives written approval to such purchase; and in such case, for the purposes of this Contract, the District shall be deemed to be the constructive purchaser of such water and such water shall be deemed to be System water, and the District shall either pay for 10 said water on behalf of such Contracting Party or reimburse such Contracting Party for the cost of such water, and such Contracting Party shall pay the District for such water the same as if it were regular System water. Section 4. OTHER CONTRACTS. (a) The District reserves the right to supply treated water from the System to Additional Contracting Parties under contracts similar to this Contract, subject to the requirements concerning "minimums" asprovided in Section 9(c)hereof Eachcontract with any Additional Contracting Party shall comply with the requirements of this Contract, shall substantially restate the essential provisions of this Contract, and shall be structured to be similar hereto to the fullest extent applicable and practicable, with such additions or changes as are necessary to meet the actual circumstances, with the effect that each Additional Contracting Party will in effect adopt the provisions of this Contract, as supplemented and necessarily changed by its contract. (b) It is recognized and agreed that the District not has many System water supply contracts with entities other than the Contracting Parties, which contracts will remain in full force and effect, in accordance with their terms and provisions, after the Contract Date. The District shall enforce the aforesaid existing water supply contracts during the entire terms thereof, unless any such contract is replaced by a contract with an Additional Contracting party hereunder. Upon the expiration of each such contract with any party the District thereafter may sell water to such party only on the basis that it is a new customer with respect to System water. (c) It is further recognized and agreed that in the future the District may sell any water from the System to parties which are not Additional Contracting Parties, provided that all such future sales of water from the System to parties which are not Additional Contracting Parties shall, within the limited permitted by law, in all respects be subordinate to the prior rights of the Contracting 11 Parties to water from the System, and all such sales and contracts relating thereto shall recognize, and be made subordinate to, such prior rights. Section 5. QUALITY. The water to be delivered by the District and received by each Contracting Party shall be treated water from the System. The City has satisfied itselfthat such water will be suitable for its needs, but the District is obligated to treat such water so as to meet the standards of all State and Federal agencies having jurisdiction over water quality. The District and the Contracting Parties shall cooperate, each within its legal powers, in preventing, to the extent practicable, the pollution and contamination of the reservoirs and watersheds from which System water is obtained. Section 6. POINTS OF DELIVERY. The Point or Points of Delivery for the City shall be the Point or Points of Delivery applicable to it under its present treated water supply contract with the District, or at any other Point or Points of Delivery mutually agreed upon between the District and the City. Each Contracting Party shall construct, maintain, and operate, at its own cost and expenses, all facilities and equipment necessary to receive and take all treated water delivered to it under this Contract. Section 7. MEASURINGEQUIPMENT. (a) The District shall furnish, install, operate, and maintain at its own expense at each Point of Delivery of each Contracting Party the necessary equipment and devices of standard type for measuring propertythe quantity oftreated water delivered under this agreement. Such meter or meters and other equipment so installed shall remain the property of the District. Each Contracting Party shall have access to such metering equipment at all reasonable times, but the reading, calibration, and adjustment thereof shall be done only by the employees or agents of the District. For the purpose ofthis agreement the original record or reading 12 of the meter or meters shall be thejournal or other record book of the District in its office in which the records ofthe employees or agents of the District who take the reading are or may be transcribed. Upon written request of any Contracting Party, the District will send it a copy of such journal or record book, or permit it to have access to the same in the office of the District during reasonable business hours. Not more than once in each calendar month, on a date as near the end of such calendar month as practical, the District shall calibrate its meters if requested in writing by a Contracting Party to do so, in the presence of a representative of the Contracting Party, and the parties shall jointly observe any adjustments which are made to the meters in ease any adjustments shall be necessary, and if the check meters hereinafter provided for have been installed, the same shall also be calibrated by Contracting Party in the presence of a representative of the District and the parties shall jointly observe any adjustment in case any adjustment is necessary. If any Contracting Party shall in writing request the District to calibrate its meters and the District shall give the Contracting Party notice of the time when any such calibration is to be made and a representative ofthe Contracting Party is not present at the time set, the District may proceed with calibration and adjustment in the absence of any representative of the Contracting Party. If a Contracting Party or the District at any time observes a variation between the delivery meter or meters and the check meter or meters at that Contracting Party's Point or Points ofDelivery, if any such check meter or meters shall be installed, such party will promptly notify the other party, and the District and such Contracting Party shall then cooperate to procure an immediate calibration test and joint observation of any adjustment and the same meter or meters shall then be adjusted to accuracy. The party performing the test shall give the other party forty-eight (48) hours' notice of the time of all tests of meters so that the other party may conveniently have a representative present. 13 If upon any test, the percentage of inaccuracy of any metering equipment is found to be in excess of two percent (2%), registration thereof shall be corrected for a period extending back to the time when such inaccuracy began, if such time is ascertainable, and if such time is not ascertainable, then for a period extending back one-half (%:) of the time elapsed since the last date of calibration, but in no event further back than a period of six (6) months. If for any reason any meters are out of repair so that the amount of water delivered to a Contracting Party cannot be ascertained or computed from the reading thereof, the water delivered through the period such meters are out of service or out of repair shall be estimated and agreed upon by the District and such Contracting Party upon the basis of the best data available. For such purpose, the best data available shall be deemed to be the registration of any check meter or meters if the same have been installed and are accurately registering. Otherwise, the amount of water delivered during such period may be estimated (i) by correcting the error ifthe percentage ofthe error is ascertainable by calibration tests or mathematical calculation, or (ii) estimating the quantity ofdelivery by deliveries during the preceding periods under similar conditions when the meter or meters were registering accurately. Any Contracting Party may, at its option and its own expense, install and operate a check meter to check each meter installed by the District, but the measurement of water for the purpose of this agreement shall be solely by the District's meters, expect in the cases hereinabove specifically provided to the contrary. All such check meters shall be of standard make and shall be subject at all reasonable times to inspection and examination by any employee or agent of the District, but the reading, calibration and adjustment thereof shall be made only by the Contracting Party, except during any period when a check meter may be used under the provisions hereof for measuring the amount of water delivered, in which case the reading, calibration, and adjustment thereof shall be made by 14 the District with like effect as if such check meter or meters had been furnished or installed by the District. Section 8. UNIT OF MEASUREMENT. The unit of measurement for treated water delivered under this Contract shall be 1,000 gallons of water, U.S. Standard Liquid Measure. Section 9. PRICES AND TERMS; PAYMENTS BY CONTRACTING PARTIES. (a) Annual Requirement and Proportionate Payment. It is acknowledged and agreed that payments to be made under this Contract and any similar contracts with Additional Contracting Parties will be the primary source available to the District to provide the Annual Requirement, and that, in compliance with the District's duty to fix and from time to time revise the rates of compensation or charges for water sold and services rendered and made available by the District, the Annual Requirement will change from time to time, and that each such Annual Requirement shall be allocated among the Contracting Parties as hereinafter provided, and that the Annual Requirement for each Annual Payment Period shall at all times be not less than an amount sufficient to pay or provide for the payment of. (A) An "Operation and Maintenance Component" equal to the amount paid or payable for all Operation and Maintenance Expenses of the System; and (B) A "Bond Service Component" equal to: (1) the principal of, redemption premium, if any, and interest on, its Bonds, as such principal, redemption premium, if any, and interest become due, less interest to be paid out of Bond proceeds or from other sources if permitted by any Bond Resolution, and all amounts required to redeem any Bonds prior to maturity when and as provided in any Bond Resolution; and 15 (2) the proportionate amount of any special, reserve, or contingency funds required to be accumulated and maintained by the provisions of any Bond Resolution; and (3) any amount in addition thereto sufficient to restore any deficiency in any of such funds required to be accumulated and maintained by the provisions of any Bond Resolution. It is agreed that forthe treated water supply to be provided to Contracting Parties underthis Contract and similar contracts, each of the Contracting Parties shall pay, at the time and in the manner hereinafter provided, its proportionate share of the Annual Requirement, which shall be determined as hereafter described and shall constitute a Contracting Party's Annual Payment. Each of the Contracting Parties shall pay its proportionate share of the Annual Requirement for each Annual Payment Period directly to the District, in approximately equal monthly installments, or before the 10th day of each month. (b) Calculation ofProportionate Payment& Rates. For each Annual Payment Period each Contracting Party's proportionate share of the Annual Requirement shall be a percentage obtained by dividing the minimum amount specified and calculated for it for such period, in accordance with subsection (c) of this Section 9, by the aggregate minimum amounts specified and calculated for all Contracting Parties for such period in accordance with said subsection (c). Thus the base "rate" per 1,000 gallons of treated water which each Contracting Party must pay for treated water during any Annual Payment Period may be calculated and expressed by dividing the dollar amount of such Contracting Party's proportionate share of the Annual Requirement by the number of 1,000 gallons contained within its specified minimum amount for such Annual Payment Period. All such payments ILO for each Annual Payment Period shall be made in accordance with a schedule of payments for the appropriate Annual Payment Period which will be supplied to each of the Contracting Parties by the District. (c) Minimums. For the purpose of calculating the minimum amount of each Annual Requirement for which each Contracting Party is unconditionally liable, without offset or deduction (also see Section 10(g)), each Contracting Party, during each Annual Payment Period, shall be deemed to have taken and used the minimum annual average daily amount of System treated water (regardless of whether or not such amount is or was actually taken or used) specified for such Contracting Party as follows: for each of the Contracting Parties, respectively, a minimum amount, expressed in MGD, during each Annual Payment Period, equal to the greater of (1) 6.720 MGD for the City of Allen .898 MGD for the City of Farmersville 1.159 MGD for the City of Forney 32.476 MGD for the City of Garland 4.433 MGD for the City of McKinney 15.806 MGD for the City of Mesquite 28.688 MGD for the City of Plano .634 MGD for the City of Princeton 19.760 MGD for the City of Richardson 2.633 MGD for the City of Rockwall .523 MGD for the City of Royse City 1.186 MGD for the City of Wylie, or 17 (2) the maximum number of MGD actually taken from the System by such Contracting Party during any previous Water Year (as hereinbefore defined) during the tern of this Contract; it being agreed and understood that any use of System water in any Water Year by any Contracting Party in excess of (i) the minimum amount specified for it in clause (1) above, or (ii) as determined in accordance with this clause (2), will establish a new minimum amount to be effective for the next following Annual Payment Period and thereafter until any previously increased minimum amount is further exceeded in any subsequent Water Year, with each such increase in minimums to be effective for the next following Annual Payment Period and thereafter until further increased in accordance with this clause (2). Notwithstanding the foregoing provisions of this subsection (c), if any portion of a Contracting Party's minimum amount is attributable to treated water sold or delivered to an entity outside of its boundaries, pursuant to a treated water supply contract, and (i) if such entity should become an Additional Contracting Party and such treated water supply contract be terminated, or (ii) if such treated water supply contract with such Contracting Party otherwise should be terminated and in lieu thereof such entity should enter into a treated water supply contract with the District as permitted in Section 4 hereof, then such Contracting Party's minimum amount for the next Annual Payment Period and thereafter shall be reduced by the maximum MGD previously taken by said entity from such Contracting Party during any previous Water Year pursuant to such terminated treated water supply contract with such Contracting Party. Is All contracts with Additional Contracting Parties shall provide for equitable minimums similar to those provided for above. Such minimums shall be fixed in amounts at least sufficient, as determined by the District, to assure an initial Annual Payment by each Additional Contracting Party for not less than the amount of its estimated use of treated water during the first year of service under such contract. (d) Excess Water Charges. It is further agreed that, in addition to the amounts required to be paid by Contracting Parties pursuant to subsections (a), (b), (c), and (e) ofthis Section 9, if any Contracting Party during any Water Year uses System treated water in excess of the minimum amount applicable to it for the Annual Payment Period which commenced during such Water Year, then such Contracting Party shall pay an "Excess Water Charge" equal to that part ofthe Operation and Maintenance Expenses (electric power, chemicals, and other similar costs) directly attributable to supplying such excess treated water to such Contracting Party, all as determined by the District. Such Excess Water Charge shall be billed by the District to such Contracting Party as soon as practicable after the end of such Water Year and shall be paid to the District as soon as practicable thereafter, and in all events prior to the beginning ofthe next Annual Payment Period. Such Excess Water Charges shall be credited to and be used for paying part of the Operation and Maintenance Expenses for the then current Annual Payment Period and reduce the extent of such credits the amounts which otherwise would be payable by the Contracting Parties during such then current Annual Payment Period. (e) Redetermination of Annual Requirement. Each Contracting Party's share of the Annual Requirement shall be redetermined, after consultation with each of the Contracting Parties, at any time during any Annual Payment Period, to the extent deemed necessary or advisable by the District, if. 19 (i) The District commences supplying Systemtreatedwater toan Additional Contracting Party or Parties; (ii) Unusual, extraordinary, or unexpected expenditures for Operation and Maintenance Expenses are required which are not provided for in the District's Annual Budget for the System or in any Bond Resolution; (iii) Operation and Maintenance Expenses are substantially less than estimated; (iv) The District issues Bonds which require an increase in the Bond Service Component of the Annual Payment; or (v) The District receives either significantly more or significantly less revenues or other amounts than those anticipated. (f) Other Revenues. During each Annual Payment Period the revenues derived from sales of System water, other than sales of treated water to Contracting Parties, shall be credited to and be used for paying part of the Annual Requirement in the manner determined by the District, with the result that such credits shall reduce, to the extent of such credits, the amounts which otherwise would be payable by the Contracting Parties pursuant to the methods prescribed in subsections (a), (b), (c), and (e), above. The District shall estimate all such credits which it expects to make during each Annual Payment Period in calculating each Annual Payment. (g) Annual Budge[. On or before the first day of the fourth calendar month prior to the beginning of each Annual Payment Period hereafter the District shall fumish each Contracting Party with a tentative or preliminary estimated schedule of the monthly payments to be made by such party to the District for the ensuing Annual Payment Period. On or before the first day of the second calendar month prior to the beginning of each Annual Payment Period hereafter the District shall furnish each Contracting Party with an updated estimated schedule of the monthly payments to be 20 made by such Party to the District for the next ensuing Annual Payment Period. Prior to the first day of each Annual Payment Period hereafter the District shall fumish each Contracting Party with a final estimated schedule of the monthly payments to be made by such Party to the District for the next ensuing Annual Payment Period, together with the supporting budgetary data showing the basis for arriving at such schedule. Any surplus budgeted funds remaining on hand at the end of any Annual Payment Period shall be used during the following Annual Payment Period and reduce in the manner determined by the District, to the extent of any such surplus funds, the amounts which otherwise would be payable by the Contracting Parties under subsections (a), (b), (c), and (e), above. Each Contracting Party hereby agrees that it will make such payments to the District on or before the 10th day of each month of such Annual Payment Period. If any Contracting Party at any time disputes the amount to be paid by it to the District, such complaining party shall nevertheless promptly make such payment or payments, but if it is subsequently determined by agreement or court decision that such disputed payments made by such complaining party should have been less, or more, the District shall promptly revise and reallocate the charges among all Contracting Parties in such manner that such complaining party will recover its overpayment or the District will recover the amount due it. (h) Delinquencies. All amounts due and owing to the District by each Contracting Party or due and owing to any Contracting Party by the District shall, if not paid when due, bear interest at the rate often (10) percent per annum from the date when due until paid. The District shall, to the extent permitted by law, suspend delivery of water from the System to any Contracting Party which remains delinquent in any payments due hereunder for a period of sixty days, and shall not resume delivery ofwater while such Contracting Party is so delinquent. It is further provided and agreed that if any Contracting Party should remain delinquent in any payments due hereunder for a period of one hundred twenty days, and if such delinquency continues during any period thereafter, such 21 Contracting Party's minimum amount ofMGD as described in subsection (c), above, shall be deemed to have been zero MGD during all periods of such delinquency, for the purpose of calculating and redetermining the percentage of each Annual Payment to be paid by the non -delinquent Contracting Parties. However, the District shall promptly pursue all legal remedies against any such delinquent Contracting Party to enforce and protect the rights of the District, the other Contracting Parties, and the owners of the Bonds, and such delinquent Contracting Party shall not be relieved of the liability to the District for the payment of all amounts which would have been due hereunder, in the absence of the next preceding sentence. It is understood that the foregoing provisions are for the benefit of the owners ofthe Bonds so as to insure that all of each Annual Requirement will be paid by the non - delinquent Contracting Parties during each Annual Payment Period regardless of the delinquency of a Contracting Party. If any amount due and owing by any Contracting Party to the District is placed with an attorney for collection, such Contracting Party shall pay to the District all attorneys fees, in addition to all other payments provided for herein, including interest. (i) Updated Schedules of Payment. If, during any Annual Payment Period, any Contracting Party's Annual Payment is redetermined as provided in this Section, the District will promptly furnish such Contracting Party with an updated schedule of monthly payments reflecting such redetermination. Section 10. SPECIAL CONDITIONS AND PROVISIONS. (a) Operation and Maintenance of System. The District will continuously operate and maintain the System in an efficient manner and in accordance with good business and engineering practices, and at reasonable cost and expense. Each Contracting Party waives any and all claims, as against the other Contracting Parties, to any preferential right or entitlement to the capacity or use of specific water sources of the District. The 22 District recognizes its right and duty to operate the various facilities of the System in the most prudent and economical manner for the benefit of all the Contracting Parties. The District shall exercise loyalty, good faith, and fair dealing relating to all System activities undertaken bythe District as between the District and the Contracting Parties. (b) Permits. Financing and Applicable Laws. It is understood that any obligations on the part of the District to acquire, construct, and complete the Projects and other System facilities and to provide treated water from the Projects and other System facilities to the Contracting Parties shall be (i) conditioned upon the District's ability to obtain all necessary permits, material, labor, and equipment, and upon the ability of the District to finance the cost of the Projects and other System facilities through the actual sale ofthe District's Bonds and (ii) subject to all present and future valid laws, orders, rules, and regulations of the United States of America, the State of Texas, and any regulatory body having jurisdiction. (c) Title to Water: Indemnification. Title to all treated water supplied to each Contracting Party shall be in the District up to each Point of Delivery, at which point title shall pass to the receiving Contracting Party. The District and each ofthe Contracting Parties shall save and hold each other party harmless from all claims, demands, and causes of action which may be asserted by anyone on account of the transportation and delivery of said water while title remains in such party. Notwithstanding any other provision of this Contract, it is specifically provided that water obtained or resulting from the wastewater treatment operations ofany Contracting Party shall be under the sole and exclusive dominion, control, and ownership of such Contracting Party and the District shall have no right, title, or interest in or claim against such water of any nature whatsoever. (d) Payments Solely From Revenues. The District shall never have the right to demand payment by any Contracting Party of any obligations assumed by it or imposed on it under and by 23 virtue of this Contract from funds raised or to be raised by taxes, and the obligations under this Contract shall never be construed to be a debt of such kind as to require any of the Contracting Parties to levy and collect a tax to discharge such obligation. (e) Operating Expenses of Contracting Parties. Each of the Contracting Parties has represented and covenanted or hereby represents and covenants that all payments to be made by it under this Contract constitute reasonable and necessary "operating expenses" of its waterworks system, in accordance with Vernon's Ann. Tex. Civ. St. Article 1113 and The Interlocal Cooperation Act. It is further recognized that the waterworks system of the City is presently combined with its sewer system in accordance with law for operating and financing purposes. Each ofthe Contracting Parties, respectively, has represented and determined or hereby represents and determines that the treated water supply to be obtained from the System, including the Projects and other System facilities, is absolutely necessary and essential to the present and future operation of its waterworks system and is the only available and adequate source of supply of treated water therefor. Accordingly, the payments required by this Contract to be made by each Contracting Party shall constitute reasonable and necessary operating expenses of its waterworks system and shall be made as provided by law, including the aforesaid Article 1113 and the Interlocal Cooperation Act. In accordance with said Article 1113, such payments shall have priority over the payment of principal of and interest on all bonds and other similar obligations heretofore or hereafter issued by any Contracting Party. (f) Contracting Parties' Rates For Water and Sewer System Services. Each of the Contracting Parties has agreed or hereby agrees throughout the term ofthis Contract to continuously operate and maintain its combined waterworks and sewer system, and to fix and collect such rates and charges for water and sewer services to be supplied by its combined waterworks and sewer 24 system as aforesaid as will produce revenues in an amount equal to at least (i) all of its payments under this Contract and (ii) all other amounts required to be paid from said revenues by law and the provisions of the ordinances or resolutions authorizing its revenue bonds or other obligations now or hereafter outstanding. (g) Contracting Parties' Unconditional Obligations. Recognizing the fact that the Contracting Parties urgently require the facilities and services of the System, and that such facilities and services are essential and necessary for actual use and for standby purposes, and recognizing the fact that the District will use payments received from the Contracting Parties to pay and secure the Bonds, it is hereby agreed that each of the Contracting Parties shall be unconditionally obligated to pay, without offset or deduction, its proportionate share of each Annual Requirement, as provided and determined by this Contract (including the obligations for paying for "minimums" as described in Section 9 (c) hereof), regardless of whether or not the District actually acquires, constructs, or completes the Projects or other System facilities or is actually delivering water from the System to any Contracting Party, or whether or not any Contracting Party actually receives or uses water from the System whether due to Force Majeure or otherwise, and regardless of any other provisions ofthis or any other contract or agreement between any of the parties hereto. This covenant by the Contracting Parties shall be for the benefit of, and enforceable by, the owners of the Bonds as well as the District. Section 11. FORCE MAJEURE. If by reason of force majeure any party hereto shall be rendered unable wholly or in part to cant' out its obligations under this Contract, other than the obligation ofeach Contracting Party to make the payments required under Section 9 ofthis Contract, then if such party shall give notice and full particulars of such force majeure in writing to the other parties within a reasonable time after occurrence ofthe event or cause relied on, the obligation ofthe 25 party giving such notice, so far as it is affected by such force majeure, shall be suspended during the continuance of the inability then claimed, but for no longer period, and any such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, orders of any kind of the Government of the United States or the State of Texas, or any Civil or military authority, insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply, or on account of any other causes not reasonably within the control of the party claiming such inability. Section 12. INSURANCE. The District agrees to carry and arrange for fire, casualty, public liability, and/or other insurance, including self insurance, on the System for purposes and in amounts which, as determined by the District, ordinarily would be carried by a privately owned utility company owning and operating such facilities, except that the District shall not be required to provide liability insurance except to insure itself against risk of loss due to claims for which it can, in the opinion of the District's legal counsel, be liable under the Texas Tort Claims Act or any similar law or judicial decision. Such insurance will provide, to the extent feasible and practicable, for the restoration of damaged or destroyed properties and equipment, to minimize the interruption of the services of such facilities. All premiums for such insurance shall constitute an Operation and Maintenance Expense of the System. Section 13. TERM AND EFFECT OF CONTRACT. (a) This Contract shall, upon execution by the District and the City, be effective as of the Contract Date, and this Contract shall 26 continue in force and effect until all Bonds and all interest thereon shall have been paid or provided for, and thereafter shall continue in force and effect during the entire useful life of the System. (b) It is specifically agreed and understood that this Contract, as ofthe Contract Date, will supersede all ofthe contracts, agreements, and arrangements between each ofthe parties hereto with respect to the System and treated water from the System and the Bonds, and that this Contract, as of the Contract Date, will completely amend and supersede all such contracts, agreements, and arrangements with respect to the System and treated water from the System and the Bonds, and will constitute the sole agreement between the parties hereto or any of them with respect to the System and treated water from the System and the Bonds; and all such previous contracts, agreements, and arrangements shall be void and shall be of no force or effect, except for payments due and liabilities accrued thereunder prior to the Contract Date. Section 14. MODIFICATION. No change or modification of this Contract shall be made which will affect adversely the prompt payment when due of all moneys required to be paid by any Contracting Party under the terms of this Contract or any similar contract, and no such change shall be effective which would cause a violation of any provisions of any Bond Resolution. No change or modification of this Contract shall be made without the written consent of all parties hereto. Section 15. REGULATORY BODIES AND LAWS. This Contract is subject to all applicable Federal and State laws and any applicable permits, ordinances, rules, orders, and regulations of any local, state, or federal governmental authority having or asserting jurisdiction, but nothing contained herein shall be construed as a waiver of any right to question or contest any such law, ordinance, order, rule, or regulation in any forum having jurisdiction. Section 16. NOTICES. Unless otherwise provided herein, any notice, communication, request, reply, or advice (herein severally and collectively, for convenience, called "Notice") herein 27 provided or permitted to be given, made, or accepted by any party to any other party must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated herein, from and after the expiration of three days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party to be notified. For the purposes of notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: If to the District, to: North Texas Municipal Water District P. O. Drawer C Wylie, Texas 75098 If to the Contracting Parties, as follows: City of Allen One Butler Circle Allen, Texas 75013 City of Farmersville 303 S. Main Farmersville, Texas 75031 City of Forney 101 E. Main Street Forney, Texas 75126 City of Garland 200 N. Fifth Street P. O. Box 469002 Garland, Texas 75040 28 City of McKinney P. O. Box 517 McKinney, Texas 75069 City of Mesquite 711 N. Galloway Mesquite, Texas 75149 City of Plano P. O. Box 860358 Plano, Texas 75086-0358 City of Princeton 306 N. Front Street Princeton, Texas 75077 City of Richardson 411 W. Arapaho Road Richardson, Texas 75080 City of Rockwall 205 W. Rusk Rockwall, Texas 75087 City ofRoyse City P. O. Drawer A Royse City, Texas 75089 City of Wylie P. O. Box 428 Wylie, Texas 75098 The parties hereto shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address by at least fifteen (15) days' written notice to the other parties hereto. Section 17. SEVERABILITY. The parties hereto specifically agree that in case any one or more of the sections, subsections, provisions, clauses, or words of this Contract or the application of such sections, subsections, provisions, clauses, or words to any situation or circumstance should be, or should be held to be, for any reason, invalid or unconstitutional, underthe laws or constitutions 29 of the State of Texas or the United States of America, or in contravention of any such laws or constitutions, such invalidity, unconstitutionality, or contravention shall not affect any other sections, subsections, provisions, clauses, or words of this Contract or the application of such sections, subsections, provisions, clauses, or words to any other situation or circumstance, and it is intended that this Contract shall be severable and shall be construed and applied as if any such invalid or unconstitutional section, subsection, provision, clause, or word had not been included herein, and the rights and obligations of the parties hereto shall be construed and remain in force accordingly. Section 18. REMEDIES UPON DEFAULT. It is not intended hereby to specify (and this Contract shall not be considered as specifying) an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by any party hereto and shall be cumulative. Recognizing however, that the District's undertaking to provide and maintain a supply of water hereunder is an obligation, failure in the performance of which cannot be adequately compensated in money damages alone, the District agrees, in the event of any default on its part, that each Contracting Party shall have available to it the equitable remedy of mandamus and specific performance in addition to any other legal or equitable remedies (other than termination) which may also be available. Recognizing that failure in the performance of any Contracting Party's obligations hereunder could not be adequately compensated in money damages alone, each Contracting Party has agreed or hereby agrees in the event of any default on its part that the District shall have available to it the equitable remedy of mandamus and specific performance in addition to any other legal or equitable remedies (other than termination) which may also be available to the District. No waiver or waivers of any breach or default (or any breaches or defaults) by any party hereto or of performance by any other party of any duty or obligation hereunder shall be deemed a waiver thereof in the fixture, nor shall any such waiver or waivers be deemed or construed to be CM waiver of subsequent breaches or defaults of any kind, character, or description, under any circumstances. Section 19. VENUE. All amounts due under this Contract, including, but not limited to, payments due under this Contract or damages for the breach ofthis Contract, shall be paid and be due in Collin County, Texas, which is the County in which the principal administrative offices of the District are located. It is specifically agreed among the parties to this Contract that Collin County, Texas, is a principal place of performance ofthis Contract; and in the event that any legal proceeding is brought to enforce this Contract or any provision hereof, the same shall be brought in Collin County, Texas. IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this Contract to be duly executed in several counterparts, each of which all constitute an original, all as ofthe day and year first above written, which is the date of this Contract. EXECUTED THIS bye.,. Z. a1 r m, but effective as of the Contract Date. ATTEST: ai retary, Board of Directors (DISTRICT SEAL) NORTH TEXAS MUNICIPAL WATER DISTRICT BY ' e President, Board of Directors APPROVED AS TO FORM AND LEGALITY: Attorney for the District 31 EXECUTED THIS /229, but effective as of the Contract Date. ATTEST: (CITY SEAL) CITY OF ALLEN, TEXAS BY Mayor APPROVED AS TO FORM AND LEGALITY: 32 City Art ey ; 7, _ CITY OF ALLEN TO: PETER H. VARGAS, CITY MANAGER FROM: GEORGE CONNER, DIRECTOR OF PUBLIC WORKS SUBJECT: RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION OF THE "NORTH TEXAS MUNICIPAL WATER DISTRICT REGIONAL WATER SUPPLY FACILITIES CONTRACT" DATE: January 26, 1999 The city requested, and NTMWD accepted the city's request, that the territory comprising Allen be annexed to the district and, thereby become a "member city" of the district. An election was held on August 8, 1998 and Allen's voters approved the annexation. The Texas Natural Resource Conservation Commission (TNRCQ, by order dated September 15, 1998, declared the results of such election and ordered the territory of Allen annexed to the district. ANALYSIS The initial contract between NTMWD and the original member cities makes provision for additional contracting parties, with the same rights and obligations as each of the initial parties. This contract complies with the requirements of the initial contract and is structured to be similar to the initial contract. FISCAL IMPACT The city will pay a reduced rate for water, all other charges by the district will remain the same. The city will assume its share of the obligations of the debt of the district. RECOMMENDATION Staff recommends that the City Council authorize the Mayor to execute this contract with NTMWD. ONEBUTLERCIRCLE ALLEN, TEXAS 75013 972727-0100 • PAX 972/27-0165 EMAIL: c @clallm.u..