[City of Clarendon Ledger: Ordinances (207)-363] Page: 30
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310
(a) When the bonds shall have been paid, it is contemplated
that this agreement will be renewed or rewritten
so that so long as there shall be no outstanding Bonds the
consideration to be paid by the City for the delivery of
water thereafter shall be its fair and proportionate share
of the Authority's expense and costs,
(b) The Authority agrees that it will not sell water
to any customer now being served by the City or reasonably
capable of being served by the City's distribution system,
except b the express written consent of the City.
SECTION 6. SPECIAL CONDITIONS, (a) The Authority agrees to
proceed promptly with the construction of the Project. The
Authority shall not be liable to the City for any damages
Occasioned by delay in the Completion of theProject.
(b) Title to all water supplied hereunder shall remain
in the Authority through the Points of Delivery, and upon passing
throught the Points of Delivery, such title to the water
shall pass to the City. Each of the parties hereto agrees to
save and hold the 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.
(c) It is expressly understood and agreed that any obligations
on the part of the Authbrity to complete the Project and
to provide water to the City shall be conditioned upon the
Authority's ability to obtain all necessary material, labor
and equipment and upon theability of the Authority to finance
the cost of such construction through the actual sale of the
Authority's Bonds.
(d) The Authority shall never hlave the right to demand
payment by the City of any obligations assumed by it ir imposed
on it under and by virtue of this Contract from funds raised
or to be raised by taxes levied by the City. The City's obligations
under this Contract shall never be construed to be a
debt of the City of such kind as to require it under the law of
this State to levy and collect a tax to discharge such obligation,
it being expressly understood by the parties hereto that
all payments due by theCity hereunder are to be made from water
revenues received by theCity.
(e) The City represents and covenants that all payments
to be made hereunder by it shall constitute "Operating Expenses"
of its waterworks system as defined in Article 1113 of the
Revised Civil Statutes of Texas, as amended, and that all such
payments will constitute operating expenses of the City's water
system.
(f) The City agrees to fix and collect such rates and charges
for water and services to 'se supplied by its waterworks system
as will produce revenues in an amount equal1 to at least the
minirun payments due under this Contract and to comply with provisions
of ordinances authorizing its outstanding revenue bonds.
(g) The City shall not obtain water from any other source
except to the extent that the Authority is unable to supply water
to the City, in which event the City shall first furnish to
the Authority a written opinion of a recognized independent engineer
showing the extent the City needs water that the Authority
is unable to supply. The final determination as to the adequacy
of the Authority's supply of water to the City shall be made by
the Authority within ninety (90) days from the receipt of such
request from the City.
(h) Any contract made by the Authority to supply water to
others than the Contracting Parties shall be subordinate to the
obligations of the Authority to the Contracting Parties, and the
quantity of said water to be sold does not in the aggregate of
all contracts exceed the safe and firm yield of the Authority's
Lake as estimated by the Authority's engineers.
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Clarendon (Tex.). [City of Clarendon Ledger: Ordinances (207)-363], legal document, 2006~; (https://texashistory.unt.edu/ark:/67531/metapth38107/m1/41/: accessed May 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting City of Clarendon.