City of Canyon Commission Meetings

AGENDA NOTICE OF SPECIAL MEETING Notice is hereby given that the governing body of the City of Canyon will meet at 1:30 p.m. on Wednesday, the 14th day of February 2024 in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items. The meeting is broadcast on YouTube. YouTube does provide closed captioning on the recorded video, it is not provided real-time. 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting of February 5, 2024. 5. Public Comment – Comments from Interested Citizens. 6. Consider and Take Appropriate Action on Bids Received for Ground Storage Tanks for the Palo Duro Creek Golf Course Irrigation System. 7. Consider and Take Appropriate Action on the Sale of Water Rights in Section 48, Block 6, I&GN RR Co. Survey to Corman Holdings LLC Consisting of Approximately 416 Acres. 8. Adjourn. Joe Price Joe Price, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 9th day of February 2024. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting February 5, 2024 The City Commission of the City of Canyon met in regular session at 4:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Gary Hinders presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Cody Jones, Robyn Cranmer, and Paul Lyons. Commissioner Danny Potter was unable to attend. Also present were the following City Staff: City Manager Joe Price, Assistant City Manager Jon Behrens, City Secretary Gretchen Mercer, HR Director Hector Mendoza, Canyon Economic Development Director Stephanie Tucker, Fire Chief Dennis Gwyn, Assistant Fire Chief Vine Whitfill, Water Superintendent Eric Whitten, Director of Public Works Dan Reese, Assistant Director of Public Works Chris Enriquez, Planning and Development Director Lucas Raley, Assistant Director of Planning and Development Craig Brown, Purchasing Manager Beau Boyer, Police Chief Steve Brush, Communications Director Megan Nelson, Director of IT Shaun Holtman, Municipal Court Judge Jennifer Cates, Canyon Area Library Director Carlene Harguess, City Engineer Adolfo Garcia, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 4:31 pm. Item 2. Invocation. Commissioner Cranmer gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Lyons. Item 4. Approval of the Minutes of the Meeting of January 8, 2024. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer to approve the minutes of January 8, 2024 as presented. Motion carried unanimously. Item 5. Public Comment – Comments from Interested Citizens. Todd L. Hokanson – Post Commander for local VFW Canyon. Mr. Hokanson wanted to introduce himself and stated the VFW in Canyon was ready to get involved with the community, take care of Vets and invest in the community. Mr. Hokanson invited all to the Local VFW community Open House in April, 2024. Item 6. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 01-2024, A Resolution of the City Commission of the City of Canyon Approving a Project Funding Agreement Between the Lumber Yard, Ltd, A Texas Limited Partnership Acting by and Through its General Partner The Lumber Yard Management, LLC, a Limited Liability Corporation and The Crew Entertainment, Ltd and Canyon Economic Development Corporation Relating to Direct Financial Assistance and Job Incentives for New Business in Canyon. City Commission Meeting February 5, 2023 Page 2 of 7 Economic Development Director Stephanie Tucker presented Resolution No. 01-2024 for consideration and adoption. Ms. Tucker said the Canyon Economic Development Corporation approved project funding for the Lumber Yard, Ltd providing $500,000 for job incentives for a new business, The Lumber Yard. Ms. Tucker stated the CEDC held a public hearing January 4, 2024 and there was no opposition for the approval of the project. Ms. Tucker provided a breakdown of disbursements: The $450,000 will be disbursed as follows: • $150,000 – Building Permit Issued • $100,000 – Delivery of Equipment • $100,000 – 1 year Anniversary • $100,000 – 2 year Anniversary The remainder of $50,000 will be a reimbursement for TWC reporting for new jobs created at 20%, capped at 3 years or $50,000, whichever comes first. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer to adopt Resolution No. 01-2024 as presented. Motion carried unanimously. RESOLUTION NO. 01-2024 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN THE LUMBER YARD, LTD, A TEXAS LIMITED PARTNERSHIP ACTING BY AND THROUGH ITS GENERAL PARTNER THE LUMBER YARD MANAGEMENT, LLC AND THE CREW ENTERTAINMENT, LTD AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO DIRECT FINANCIAL ASSISTANCE AND JOB INCENTIVES FOR NEW BUSINESS IN CANYON. Item 7. Consider and Take Appropriate Action on Ordinance No. 1200, an Ordinance of the City of Canyon, Texas, Amending Article 12.03 Division 3: Water and Sewer Facilities; of the Code of Ordinances Relating to Pro Rata Fees for Extensions of Water and Wastewater Mains and Posting Security for the Cost of Such Extensions, Providing for Severability, Providing for Partial Repeal and an Effective Date. City Manager Joe Price and City Engineer Adolfo Garcia gave an informational presentation with an example of how a Pro Rata contract would be processed. Commissioner Lyons asked why anyone would enter into a Pro Rata agreement. City Manager Joe Price stated Canyon Independent School District requested a Pro-Rata contract for the sewer line CISD paid for when building Spring Canyon Elementary and the adoption of Ordinance No. 1200 would clarify how a Pro Rata contract worked. Mr. Price said the current Pro Rata in place is only 1 short sentence. Commissioner Lyons asked why they needed the money, stating “CISD has money”. City Engineer Adolfo Garcia presented information that explained how a developer could recoup a portion of money spent on the installation of a water / sewer line that still had room for others to tap into. This would save the one tapping into the existing line by not having to pay the cost for a whole new line, and save the one that put the line City Commission Meeting February 5, 2023 Page 3 of 7 in money as they receive reimbursement. Mr. Lyons commented that the City should pay for extension of all lines. After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to adopt Ordinance No. 1200 Amending the Pro Rata Fee Ordinance as presented. Motion carried unanimously. Item 8. Consider and Take Appropriate Action on the Submission of Proposed Projects to the Texas Water Development Board (TWDB). City Manager Joe Price presented a list of proposed projects to be submitted to the Texas Water Development Board for water and sewer projects as there are low interest financing opportunities available at this time. Mr. Price stated staff has met with 2 consultants, Kimley-Horn and Freese and Nichols that will assist in the development of several TWDB project applications at no cost. Mr. Price said the City Engineer, Hi Plains Engineering, will be reviewing on behalf of the city. Mr. Price said staff was seeking support from the City Commission to apply for the listed grants. • State Water Implementatino Fund for Texas (SWIFT) • Drinking Water State Revolving Fund (DWSRF) • Clean Water State Revolving Fund (CWSRF) After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer approve the attached projects for submission to the Texas Water Development Board (TWDB). Motion carried unanimously. Item 9. Update on Insurance Services Office Public Protection Classification (ISO PPC) Rating for the City of Canyon. Fire Chief Dennis Gwyn gave a brief update on the status of the City of Canyon Insurance Services Office Public Protection Classification (ISO) and what the Fire Department is doing to improve the current rating. Chief Gwyn stated the increased staffing is helping with the rating. No action required, informational only. . Item 10. Consider and Take Appropriate Action on Resolution No. 02-2024, A Resolution by the City of Canyon, Texas Supporting the Application and Acceptance of a FEMA SAFER Grant for the Hiring of Six Fulltime Firefighters for the Canyon Fire Department, and Authorizing the Fire Chief to Represent the City in All Matters Pertaining to the Administration of the Grant. Fire Chief Dennis Gwyn presented Resolution No. 02-2024. Chief Gwyn stated the opportunity to apply for the FEMA SAFER grant was approaching and the Canyon Fire Department would like to apply for 6 Firefighters. Chief Gwyn expressed appreciation for the approval of hiring 3 full time firefighters in this budget reiterating that the required staffing needed will help with the ISO rating for Canyon. City Commission Meeting February 5, 2023 Page 4 of 7 After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to adopt Resolution No. 02-2024 regarding the application and administration of the FY 2023 FEMA SAFER Grant. Motion carried unanimously. RESOLUTION NO. 02-2024 A RESOLUTION BY THE CITY OF CANYON, TEXAS SUPPORTING THE APPLICATION AND ACCEPTANCE OF A FEMA SAFER GRANT FOR THE HIRING OF SIX FULLTIME FIREFIGHTERS FOR THE CANYON FIRE DEPARTMENT; AND AUTHORIZING THE FIRE CHIEF TO REPRESENT THE CITY IN ALL MATTERS PERTAINING TO THE ADMINISTRATION OF THE GRANT. Item 11. Consider and Take Appropriate Action on an Agreement to Purchase a Fire Department Grass Truck from Daco Fire Equipment. Purchasing Manager Beau Boyer presented an agreement for the purchase of a Grass Truck for the Canyon Fire Department. Mr. Boyer stated the current grass truck in use is 28 years old and repairs are costly have increased operational costs and lowered dependence on the truck when needed for grass fires. Mr. Boyer stated the City Commission authorized the acceptance of the Texas A&M Forest Service grant for the purchase of a large truck chassis and slip on unit that covers 90% of the purchase price up to $100,000 for a large truck and up to $20,000 for the slip-on for a total of $120,000. Mr. Boyer stated a replacement truck is quoted at $298,825 with the price obtained through the Buyboard cooperative. Mr. Boyer said the truck is expected to take 12-15 months from the time the contract is signed so the remaining $178,825 would be included in the 2024-2025 budget. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer to authorize City Staff to enter into an agreement with Daco Fire Equipment to purchase a Grass Truck for the amount of $298,825. Motion carried unanimously. Item 12. Consider and Take Appropriate Action on Resolution No. 03-2024, a Resolution by the City of Canyon, Texas Supporting the Application and Acceptance of a FEMA AFG Grant for the Purchase of a Fire Engine for the Canyon Fire Department, and Authorizing the Fire Chief to Represent the City in All Matters Pertaining to the Administration of the Grant. Fire Chief Dennis Gwyn presented Resolution No. 03-2024 for consideration. Chief Gwyn said the FY23 FEMA Assistance to Firefighters Grant (AFG) application period was open with a deadline to apply of March 8, 2024. Chief Gwyn said it is proposed to apply for the purchase of new fire engine replacement with an estimated cost to be $1.1 million and the grant was a 90/10 split grant. Chief Gwyn said the purchase of the fire engine would allow the Fire Department to place a 24 year old fire engine into reserve status and allow the current reserve fire engine with 40 years of service to be retired from use. Chief Gwyn stated the need for a reserve fire engine will always be required and effects the ISO scoring credit. Chief Gwyn stated the estimated delivery of the new truck ranges from 28-46 months from contract signing. City Commission Meeting February 5, 2023 Page 5 of 7 After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to adopt Resolution No. 03-2024 authorizing the Fire Department to purse the application of a FEMA AFG Grant for the purchase of a new fire engine. Motion carried unanimously. RESOLUTION NO. 03-2024 A RESOLUTION BY THE CITY OF CANYON, TEXAS SUPPORTING THE APPLICATION AND ACCEPTANCE OF A FEMA AFG GRANT FOR THE PURCHASE OF A FIRE ENGINE FOR THE CANYON FIRE DEPARTMENT; AND AUTHORIZING THE FIRE CHIEF TO REPRESENT THE CITY IN ALL MATTERS PERTAINING TO THE ADMINISTRATION OF THE GRANT. Item 13. Consider and Take Appropriate Action on Resolution No. 04-2024, A Resolution Approving the Submission, Acceptance and Administration of the DJ Edward Byrne Memorial Justice Assistance Grant to be Used for Hiring a Police Officer. Police Chief Steven Brush presented Resolution No. 04-2024 for consideration. Chief Brush said the receipt of this grant would cover the cost of 1 police officer’s salary for a full year. After the year was completed, another grant would be applied for each year for 4 years with the City of Canyon taking responsibility for a greater percentage of the officer’s salary. Chief Brush said with the award of the first year of the grant it was almost guaranteed the next 4 years would be awarded. Chief Brush stated the amounts covered were: • Year one – 100% • Year two – 80% • Year three – 60% • Year four – 40% • Year five – 20% • Year six forward 0% After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to adopt Resolution No. 04-2024 authorizing the submission, acceptance and administration of the Edward Byrne Memorial Justice Assistance Grant for the Police Department police officer hiring project. Motion carried unanimously. RESOLUTION NO. 04-2024 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, RANDALL COUNTY, TEXAS, AUTHORIZING THE SUBMISSION AND ACCEPTANCE OF A GRANT APPLICATION TO THE OFFICE OF THE GOVERNOR FOR THE DJ EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM FOR YEAR ONE OF A POLICE OFFICER HIRING PROJECT FOR THE CITY OF CANYON POLICE DEPARTMENT; AND AUTHORIZING THE CHIEF OF POLICE TO REPRESENT THE CITY IN ALL MATTERS PERTAINING TO THIS APPLICATION. City Commission Meeting February 5, 2023 Page 6 of 7 Item 14. Consider and Take Appropriate Action Related to a Request From the Police Department for the Expenditure of CCP Chapter 59 Seized Funds for the Purchase of Mapping Software. Chief of Police Steve Brush presented a request to use funds from the seized fund account towards the purchase of a mapping software program that will be used with the Police Departments drone. Chief Brush said the mapping software will be used to map fatal traffic crash scenes, crime scenes and other large areas needed for criminal investigations eliminating the need for manually measuring and sketching. Chief Brush said $2,000 had been budgeted for the purchase of the software but a quote obtained from Aerial Metrics came in at $5,390.00. Chief Brush stated Chapter 59 of the Texas Code of Criminal Procedure authorizes and regulates the forfeiture of contraband by law enforcement agencies and the attorney representing the state. Chief Brush said the Police Department / Finance Department maintains a fund of monetary forfeitures and it is included in the city’s annual financial audit. Chief Brush said Code of Criminal Procedure Chapter 59.06 prohibits expenditure of seized funds without the approval of the governing body. After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to authorize the use of funds from the Chapter 59 Seized Fund Account for the purchase of mapping software. Motion carried unanimously. Item 15. Consider and Take Appropriate Action on Ordinance No. 1199, Master Schedule of Charges and Fees, an Ordinance Amending the City of Canyon, Texas (“City”) Code of Ordinances, Chapter 37, Master Schedule of Charges and Fees; Providing for the Addition of New and Amendment of Certain Other Fees and Charges; Providing a Repealing Clause; Providing a Severability Clause; for Publication and an Effective Date. Assistant City Manager Jon Behrens presented Ordinance No. 1199 for consideration. Mr. Behrens said the adoption of Ordinance No. 1199 would add Short Term Rental fees as adopted by the City Commission by Ordinance No. 1198, add the $500 fee for submission of petitions for release from the ETJ as adopted by Ordinance No. 1187, and amend a few other fees as needed. After discussion, Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to adopt Ordinance No. 1199 amending the fee schedule as presented. Motion carried unanimously. ORDINANCE NO. 1199 MASTER SCHEDULE OF CHARGES AND FEES AN ORDINANCE AMENDING THE CITY OF CANYON, TEXAS (“CITY”) CODE OF ORDINANCES, CHAPTER 37, MASTER SCHEDULE OF CHARGES AND FEES; PROVIDING FOR THE ADDITION OF NEW AND AMENDMENT OF CERTAIN OTHER FEES AND CHARGES; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; FOR PUBLICATION AND AN EFFECTIVE DATE City Commission Meeting February 5, 2023 Page 7 of 7 Item 16. Canyon Brick Streets – Facts/Findings/Financing and Potential Solution Options. Assistant Director of Public Works Chris Enriquez presented a slide show covering the current state of brick streets around Canyon. Mr. Enriquez included photos and several proposals for the future of brick streets with different solutions and projected costs. No action required, informational only. Item 17. Executive Session Pursuant to §551.071 Consultation with Attorney, §551.074 Board Appointments (Planning and Zoning Commission, Zoning Board of Adjustment), §551.087 Deliberation Regarding Economic Development and §551.072 Deliberations about Real Property. Mayor Hinders indicated the City Commission would adjourn into Executive Session at 6:04 pm. Item 18. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon Returning from Executive Session at 7:45 pm, Commissioner Lyons left the meeting after closed session. The following action was taken. Commissioner Cranmer moved, duly seconded by Mayor Pro-Tem Jones to appoint Commissioner Danny Potter as City Commission representative; Police Chief Steven Brush; CC Sysombath as TxDOT representative; Chris Thomas as a WTAMU representative; Heather Wilson as CISD representative; Cameron Rosser as CISD representative; Jean Stunts as citizen mobility limited representative; Ana Harrison as citizen representative for Realtors and cyclists; Matt Wright as Citizen representative; Stephen Hayward as citizen representative and bike/pedestrian advocate; Vesko Todorov as citizen and WTAMU professor representative and avid cyclist and pedestrian. Motion carried unanimously. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer to appoint Steve Thrasher and Bob Splawn to the expired seats of Bill Craddock and Larry Ramaekers for 3 year terms on the Canyon Planning and Zoning Commission. Motion carried unanimously. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Cranmer to appoint Lige Murray and Scott Dillard to the expired seats of Jonathon Luna and Layne Myatt for 2 year terms on the Zoning Board of Adjustment. Motion carried unanimously. Item 19. Adjourn. There being no further business, Mayor Pro-Tem Jones moved this meeting be adjourned at 7:46 pm. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary AGENDA ITEM 6 AGENDA To: Joe Price, City Manager From: Beau Boyer, Budget and Purchasing Manager, Jon Behrens, Assistant City Manager and John Haun, Golf Course Superintendent Date: February 14, 2024 Re: Consider and Take Appropriate Action on Bids Received for Ground Storage Tanks for the Palo Duro Creek Golf Course Irrigation System The project for the new irrigation system at the Palo Duro Creed Golf Course includes two 400,000-gallon water ground storage tanks. The City recently solicited bids for these tanks and engineering for their foundation. Two responses were received: Contain Water Systems S&S Services Option 1: Corrugated Steel $537,599.00 - Option 2: Bolted Steel $546,599.00 $794,687.50 Option 3: Welded Steel - - Staff prefers the smooth bolted steel tanks. The baked-on enamel paint will last longer initially, it will be easier to maintain and paint in the future, and it will be more esthetically pleasing. The installation of the tanks would be completed by September 1, 2024 to allow time for the construction of the irrigation system, which would follow. If the RFP is awarded to Contain Water systems, there would still be roughly $676,896 available of the $4,500,000 debt proceeds for other necessary work. Bond Proceeds $4,500,000 Bid/Known Costs: Irrigation Construction ($3,276,505) Water Storage Tanks ($546,599) Estimated Remaining Cash $676,896 Unbid Project Components: Storage Tank Foundation Construction Irrigation System Electric Storage Tank Unloading New Water Utility Lines Staff recommends the bid for Ground Storage Tanks for the Palo Duro Creek Golf Course Irrigation System be awarded to Contain Water Systems. RECOMMENDED MOTION I move to award/not award the bid for the Construction of Ground Storage Tanks for the Palo Duro Creek Golf Course Irrigation System, and authorize City staff to sign a contract with Contain Water Systems. City of Canyon BID TABULATION SHEET Project Description: Water Distribution System Improvements Ground Storage Tanks Palo Duro Golf Course Canyon, TX HPCE Project No. 82784 Monday, February 05, 2024 2:00:00 PM Item BID OPTION NO. 1 - CORRUGATED STEEL TANK Est. Contain Water Systems S&B Services No. Items Description Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount 1 Furnish and Install Two Corrugated Steel Tanks 1 LS $ 537,291.60 $ 537,291.60 $ - TOTAL OPTION NO. 1 BID TOTAL $ 537,291.60 TOTAL $ - TOTAL DAYS TO COMPLETE BID OPTION NO. 1 DAYS DAYS Item BID OPTION NO. 2 - EPOXY COATED BOLTED STEEL TANK Est. Contain Water Systems S&B Services No. Items Description Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount 1 Furnish and Install Two Bolted Steel Tanks 1 LS $ 546,599.00 $ 546,599.00 $ 794,687.50 $ 794,687.50 TOTAL OPTION NO. 2 BID TOTAL $ 546,599.00 TOTAL $ 794,687.50 TOTAL DAYS TO COMPLETE BID OPTION NO. 2 DAYS DAYS Item BID OPTION NO. 3 - WELDED STEEL TANK Est. Contain Water Systems S&B Services No. Items Description Quantity Unit Unit Price Ext. Amount Unit Price Ext. Amount 1 Furnish and Install Two Welded Steel Tanks 1 LS $ - $ - TOTAL OPTION NO. 3 BID TOTAL $ - TOTAL $ - TOTAL DAYS TO COMPLETE BID OPTION NO. 3 DAYS DAYS  LEGAL NOTICE Sealed Bids addressed to the Assistant City Manager Jon Behrens of the City of Canyon, Texas for the construction of two ground storage tanks for the Palo Duro Creek Golf Course Irrigation System. This project consists of two 400,000 gallon ground storage tanks and associated appurtenances, entitled: WATER DISTRIBUTION SYSTEM IMPROVEMENTS GROUND STORAGE TANKS PALO DURO CREEK GOLF COURSE CANYON, TEXAS will be received at the office of the Business Office, 301 16th Street, Canyon, Texas until: February 5, 2024 2:00 PM Bids are to include a bid bond. A cashier’s check, certified check or acceptable bidder’s bond, payable to the Owner in the amount of five percent of the bid submitted, must accompany each bid as guarantee that, if awarded the contract, the Bidder will, within fifteen days after receipt of Contract Documents, enter into a contract with the Owner and will execute bonds on the forms provided in the Contract Documents. Any bid received after the time and date listed above will be returned unopened and will not be considered. Specifications may be obtained from the Engineers, Hi-Plains Civil Engineers, 4537 Canyon Drive, Amarillo, Texas 79110, phone (806) 353-7233 in the following manner: Email a request for project specifications to office@hpcetx.com Contract Documents are on file and may be examined in the City Hall of the City of Canyon, 301 16th Street, Canyon, Texas 79015, phone (806) 655-5000, and the offices of Hi-Plains Civil Engineers, Consulting Engineers, 4537 Canyon Drive, Amarillo, Texas 79110, telephone (806) 353- 7233. Performance and Payment bonds shall be set forth in the Contract Documents. The Owner reserves the right to reject any or all bids and to waive any informalities in the bidding. In case of ambiguity or lack of clearness, the Owner reserves the right to adopt such interpretations as may be most advantageous or to reject the bid as informal. No bid may be withdrawn until the expiration of 45 days from the bid opening date. CITY OF CANYON, TEXAS AGENDA ITEM 7 AGENDA To: Mayor and Commission From: Chuck Hester, City Attorney Date: February 14, 2024 Re: Consider and Take Appropriate Action on the Sale of Water Rights in Section 48, Block 6, I&GN RR Co Survey to Corman Holdings LLC Consisting of Approximately 416 acres. As you will recall from past discussions, we have a negotiated sale proposal for the water rights in Section 48, Block 6 , I&GN RR Co Survey consisting of 416 acres more or less. This interest was purchased in 2018 with a closing in January 2019. The purchase price was $667,000. The sale is recommended at this time due to the use of the surface which makes the area less desirable for development as a municipal well field. The sale price recoups the City’s original purchase price as well as expenses incurred subsequent to closing in 2019. Attached is a proposed contract which I have drafted and presented to the Buyer through its attorney. The Buyer has approved the terms and is ready to proceed with the sale and purchase. We recommend approval and suggest the motion include an authorized signer on behalf of the City. “ RECOMMENDED MOTION I move to approve/not approve the sale of Water Rights to Corman Holdings LLC as outlined in the presented contract and authorizing the City Manager to represent the city in all matters pertaining to the contract. City of Canyon  GROUNDWATER RIGHTS SALES CONTRACT This contract to buy and sell groundwater is between Seller and Buyer as identified below and is effective on the date (“Effective Date”) as defined in paragraph 13 below. 1. Parties: Seller: CITY OF CANYON Address: 301 16th Street, Canyon, Randall County, Texas 79015 Phone: (806) 655-5000 E-mail: jprice@canyontx.gov Type of entity: Home Rule Municipality Buyer: CORMAN HOLDINGS LLC Address: 17651 Corman Ranch Rd. Canyon, Randall County, Texas 79015 Phone: (806) 773-7300 E-mail: jccorman@gmail.com Type of entity: Texas Limited Liability Company 2. Definitions: Groundwater Authority: High Plains Underground Water Conservation District Real Property: The Real Property described in Exhibit “A”, incorporated by reference. Groundwater: All of the underground water, percolating water, artesian water, and any other water from any and all depths and reservoirs, formations, depths and horizons beneath the surface of the Real Property. Groundwater Rights: (1) The Groundwater, and the right to test, explore for, drill for, develop, withdraw, capture, or otherwise beneficially use the Groundwater; and (2) all permits, licenses, or other governmental authorizations relating to any of the foregoing. The Groundwater Rights include the easement rights. Use of Surface Estate: Buyer shall have the right to use the surface of the land on a non- exclusive basis in common with the owner of the surface for the purpose of exploration, treatment, production, transportation and development of the groundwater rights in accordance with the terms of the Blanket Easement Agreement for Groundwater Rights, a copy of which is attached hereto as Exhibit “C” and incorporated herein by reference for all purposes. The surface use shall include, without limitation, installation, repair and replacement of pipelines or transmission lines, installation, repair and replacement of storage facilities, establishing sanitary control easements required by State or federal law or regulations, construction of all-weather roads required to service wells on the real property and the installation, repair, removal and replacement of all “Facilities” (as that term is defined in the Easement) related to development of the Groundwater Rights GROUNDWATER RIGHTS SALES CONTRACT -1-  purchased by Buyer pursuant to this agreement. The provisions of this paragraph shall survive closing and shall not be merged. 3. Purchase Price: (a.) $775,000, payable at closing. Earnest Money Deposit: $- 0 -. 4. Deadlines and Other Dates: All deadlines in this contract expire at 5:00 P.M. local time where the Real Property is located. If a deadline falls on a Saturday, Sunday, or national holiday, the deadline will be extended to the next day that is not a Saturday, Sunday, or national holiday. A national holiday is a holiday designated by the federal government. Time is of the essence. Delivery of Title Objections by buyer: not later than 20 days after the effective date. Closing Date: on or before 60 days after the effective date Closing Time: to be determined by agreement. 5. Closing Documents: At closing, Seller will deliver the following items: Groundwater Rights Special Warranty Deed (“Groundwater Rights Warranty Deed”) – Exhibit “B” with the legal description to be in accordance with Exhibit A. Assignment of Blanket Easement Agreement for Groundwater Rights as shown in Exhibit “C” Evidence of Seller’s authority to close this transaction. At closing, Buyer will deliver the following items: Balance of Purchase Price Evidence of Buyer’s authority to close this transaction. The documents listed in this section are collectively known as the “Closing Documents.” The Closing Documents for which forms exist in the current edition of the Texas Real Estate Forms Manual (State Bar of Texas) will be prepared using those forms. 6. Exhibits: The following are attached to and are a part of this contract: GROUNDWATER RIGHTS SALES CONTRACT -2-  Exhibit “A”—Description of the Real Property Exhibit “B”—Groundwater Rights Warranty Deed Exhibit “C”—Assignment of Easement 7. Purchase and Sale of Groundwater Rights: Seller agrees to sell and convey the Groundwater Rights to Buyer, and Buyer agrees to buy and pay Seller for the Groundwater Rights. The promises by Buyer and Seller stated in this contract are the consideration for the formation of this contract. 8. Title and Survey: Review of Title. The following statutory notice is provided to Buyer on behalf of the real estate licensees, if any, involved in this transaction: Buyer is advised that it should either have the abstract covering the Real Property examined by an attorney of Buyer’s own selection or be furnished with or obtain a policy of title insurance. Title Commitment; Title Policy. “Title Commitment” means a Commitment for Issuance of an Owner Policy of Title Insurance by Title Company, as agent for Underwriter, or directly by Underwriter, stating the condition of title to the Groundwater and the Real Property. The effective date stated in the Title Commitment must be after the Effective Date of this contract. “Title Policy” means an Owner Policy of Title Insurance issued by Title Company, as agent for Underwriter, or directly by Underwriter, in conformity with the last Title Commitment delivered to and approved by Buyer. Survey. “Survey” means an on-the-ground, staked plat of survey and metes-and-bounds description of the Real Property, prepared by Surveyor or another surveyor satisfactory to Title Company, dated after the Effective Date, and certified to Seller, Buyer, Title Company, and any other person specified by Buyer, to comply with the current standards and specifications as published by the Texas Society of Professional Surveyors for the Survey Category. Delivery of Title Commitment, Survey, UCC Search, and Title Documents. Buyer may obtain a Title Commitment and survey of the property, at buyers’ option and expense. Title Objections. Buyer has until the deadline stated in paragraph 4 above (“Title Objection Deadline”) to review the Survey, Title Commitment, UCC Search, and legible copies of the Title Documents, notify Seller of Buyer’s objections to any of them, and request any additional information needed to evidence Seller’s title to the Real Property and the Groundwater (“Title Objections”). Buyer will be deemed to have approved all matters reflected by the Survey, Title Commitment, Title Documents, and UCC Search to which Buyer has made no Title Objection by the Title Objection Deadline. The matters that Buyer either approves or is deemed to have approved are “Permitted Exceptions.” If Buyer notifies Seller of any Title Objections, Seller has five days from receipt of Buyer’s notice to notify Buyer whether Seller agrees to cure the Title Objections before closing (“Cure Notice”). If Seller does not timely give its Cure Notice or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, GROUNDWATER RIGHTS SALES CONTRACT -3- Buyer may, within five days after the deadline for the giving of Seller’s Cure Notice, notify Seller that either this contract is terminated or Buyer will proceed to close, subject to Seller’s obligations to resolve the items listed in Schedule C of the Title Commitment/listed in the Title Information, remove all liquidated liens, remove all exceptions that arise by, through, or under Seller after the Effective Date, and cure only the Title Objections that Seller has agreed to cure in the Cure Notice. At or before closing, Seller must resolve the items that are listed in Schedule C of the Title Commitment/listed in the Title Information, remove all liquidated liens, remove all exceptions that arise by, through, or under Seller after the Effective Date of this contract, and cure the Title Objections that Seller has agreed to cure. 9. Representations and Warranties: The parties’ representations hereinafter set forth are true and correct as of the Effective Date and must be true and correct on the Closing Date. Seller will promptly notify Buyer if Seller becomes aware that any of the representations are not true and correct. Seller’s Representations and Warranties a.) Seller’s Representations to Buyer Seller represents and warrants to Buyer that the following are true and correct as of the Effective Date and will be true and correct as of the Closing Date: Authority. Seller is a governmental entity duly organized, validly existing, and in good standing under the laws of the State of Texas with authority to perform its obligations under this contract. This contract is binding on Seller. This contract is, and all documents required by this contract to be executed and delivered to Buyer at closing will be, duly authorized, executed, and delivered by Seller. Litigation. Seller has not received written notice and has no actual knowledge of any litigation pending or threatened against Seller that might affect the Groundwater Rights, the Real Property, or Seller’s ability to perform its obligations under this contract. Violation of Laws. Seller has not received written notice of violation of any law, ordinance, regulation, or requirements affecting the Real Property, the Groundwater, or Seller’s use of the Real Property, or Groundwater. Licenses, Permits, and Approvals. Seller has not received written notice that any license, permit, or approval necessary to use the Real Property, or the Groundwater, in the manner in which it is currently used has expired or will not be renewed on expiration or that any material condition will be imposed in order to use such permit or license or obtain its renewal. Condemnation; Zoning; Land Use; Hazardous Materials. Seller has not received written notice of any condemnation, zoning, or land-use proceedings affecting the Real Property, or the Groundwater or any written inquiries or notices by any governmental authority or third party with respect to condemnation or the presence of hazardous materials affecting the Real Property or the Groundwater. GROUNDWATER RIGHTS SALES CONTRACT -4-  No Other Obligation to Sell or Restriction against Sale. Seller has not obligated itself to sell all or any portion of the Real Property or the Groundwater to any person other than Buyer. Seller’s performance of this contract will not cause a breach of any other agreement or obligation to which Seller is a party or to which it is bound. No Liens. On the Closing Date, the Groundwater Rights to be conveyed under the contract will be free and clear of all liens and encumbrances of any nature not arising by, through, or under Buyer. Good Title. Seller has good and indefeasible fee simple title to the Groundwater, free and clear of all mortgages, liens, licenses, encumbrances, leases, tenancies, security interests, covenants, conditions, restrictions, rights-of-way, easements, judgments, and other matters affecting title, except None . No Bills or Claims. There will be no unpaid bills or claims in connection with any repair or work performed or material furnished to the Real Property or otherwise relating to the Groundwater for the benefit of Seller as of the Closing Date, and all bills attributable to or affecting the Groundwater or the Real Property will be paid by Seller in full before closing. No Adverse Matters. To the best of Seller’s knowledge, there is no (a) change contemplated in any applicable laws, ordinances, or restrictions, including the rules of the Groundwater Authority; (b) judicial or administrative action threatened or pending against the Real Property, the Groundwater, or Seller; (c) action by adjacent landowners pending or threatened against the Real Property, the Groundwater, or Seller; or (d) natural or artificial condition on the Real Property, or the Groundwater, or that would have a material adverse effect on the Real Property or the Groundwater. Compliance with Laws. Seller has at all times complied with and operated in compliance with all applicable federal, state, and local laws, regulations, and ordinances regarding the Real Property, and the Groundwater, including rules of the Groundwater Authority. Seller will promptly notify Buyer of any noncompliance notice received by Seller. No Environmental Contamination. Seller has not caused any environmental contamination of the Real Property or the Groundwater and has no knowledge of the existence of any environmental contamination of the Real Property or the Groundwater attributable to the actions of seller. No Hazardous Substances. To the best of Seller’s knowledge, information and belief, no Hazardous Substances are located on the Real Property or in the Groundwater or have been released into the environment or deposited, discharged, placed, or disposed of at, on, under, or near the Real Property or the Groundwater or transported to or from the Real Property. To Seller’s knowledge, no portion of the Real Property is being used or has been used at any previous time for the generation, storage, handling, or disposal of any Hazardous Substances at, on, under, or in the Real Property or Groundwater, or any portion thereof, nor is there any actual or threatened investigation, inquiry, proceeding, litigation, or claim of any kind by any person or governmental authority relating to such matters. “Hazardous Substances” means, but is not limited to, any substance that is or contains (a) any “hazardous substance” as now defined in GROUNDWATER RIGHTS SALES CONTRACT -5- section 101(14) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended (42 U.S.C. § 9601 et seq.), or regulations promulgated under CERCLA; (b) any “hazardous waste” as now defined in the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. § 6901 et seq.) or regulations promulgated under RCRA; (c) any substance regulated by the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.); (d) gasoline, diesel fuel, or other petroleum hydrocarbons; (e) asbestos and asbestos-containing materials in any form, whether friable or nonfriable; (f) polychlorinated biphenyls; (g) radon gas; and (h) any additional substances or materials (whether solid, liquid, or gas) that are classified, defined, or listed as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, regulated substances, toxic substances, or words of similar meaning or regulatory effect under the foregoing statutes or any other present federal, state, or local laws, statutes, ordinances, rules, regulations, and the like or the common law or any other applicable laws relating to the Real Property. “Hazardous Substances” includes, without limitation, any substance the presence of which on the Real Property (a) requires reporting, investigation, or remediation under the statutes cited above or (b) causes or threatens to cause a nuisance on any portion of the Real Property or adjacent property or poses or threatens to pose a hazard to the environment or the health or safety of persons on any portion of the Real Property or adjacent property. No Underground Storage Tanks. To the best of Seller’s knowledge and belief, no underground storage tanks are located on the Real Property or were previously located on the Real Property and subsequently removed and filled. Oil, Gas, and Minerals. Seller owns no interest in the oil, gas and other minerals in and under the property and has no opinion regarding the condition of title to oil, gas or other minerals relating to the property described in Exhibit A. No Other Representations or Warranties. Except as stated above, or in the notices, statements, and certificates set forth in ¶11 or in the Closing Documents, Seller makes no representations or warranties with respect to the Real Property, or the Groundwater Rights. b.) Buyer’s Representations to Seller Buyer represents to Seller that the following are true and correct as of the Effective Date and will be true and correct on the Closing Date: Authority. Buyer is a Limited Liability Company duly organized, validly existing, and in good standing under the laws of the State of Texas with authority to perform its obligations under this contract. This contract is binding on Buyer. This contract is, and all documents required by this contract to be executed and delivered to Seller at closing will be, duly authorized, executed, and delivered by Buyer. 10. Condition of the Property until Closing; Cooperation; No Recording of Contract: Maintenance and Operation. Until closing, Seller will (a) maintain the Real Property and the Groundwater Rights as they existed on the Effective Date; (b) use the Real Property and the Groundwater Rights in the same manner as they were used on the Effective Date; and (c) GROUNDWATER RIGHTS SALES CONTRACT -6- comply with all contracts, laws, and governmental regulations affecting the Real Property and the Groundwater Rights. Condemnation. Seller will notify Buyer promptly after Seller receives notice that any part of the Real Property or Groundwater Rights has been or is threatened to be condemned or otherwise taken by a governmental or quasi-governmental authority. Buyer may terminate this contract if the condemnation would materially affect Buyer’s intended use of the Groundwater Rights by giving notice to Seller within fifteen days after receipt of Seller’s notice to Buyer (or before closing if Seller’s notice is received less than fifteen days before closing). If Buyer does not terminate this contract, (a) Buyer and Seller will each have the right to appear and defend their respective interests in the Groundwater Rights in the condemnation proceedings; (b) any award in condemnation will be assigned to Buyer to the extent necessary to compensate Buyer for the loss of or reduction in the Groundwater Rights; and (c) if the taking occurs before closing, the description of the Real Property or Groundwater Rights will be revised to delete the portion taken. Claims; Hearings. Seller will notify Buyer promptly after Seller receives notice of any claim or administrative hearing that is threatened, filed, or initiated before closing that affects the Groundwater Rights. Cooperation. Seller will cooperate with Buyer (a) before and after closing to transfer the applications, permits, and licenses held by Seller and used in the production of the Groundwater and to obtain any consents necessary for Buyer to withdraw or produce the Groundwater; (b) before closing, with any reasonable evaluation, inspection, or study of the Real Property or the Groundwater; and (c) in all other matters related to, or arising out of or in connection with, this contract. These provisions will survive closing. Casualty or Other Loss or Damage. Until closing has been completed and funded, Seller will bear the risk of any damage, casualty, or other loss to the Groundwater Rights. If any damage, casualty, or other loss results in a material adverse change in the quality, quantity, or usability of the Groundwater, Buyer will have the right to terminate this contract. No Recording of Contract. Neither Buyer nor Seller may file this contract in the real property records of any county. 11. Closing: Closing. This transaction will close at a Title Company’s office to be designated by Buyer’s counsel. At closing, the following will occur: Closing Documents. The parties will execute and deliver the Closing Documents. Payment of Purchase Price. Buyer will deliver the Purchase Price. Disbursement of Funds; Recording; Copies. The Title Company will be instructed to disburse the Purchase Price and other funds in accordance with this contract, record the deed and the other Closing Documents directed to be recorded, and distribute documents and copies in GROUNDWATER RIGHTS SALES CONTRACT -7- accordance with the parties’ written instructions. Delivery of Originals. Seller will deliver to Buyer the originals of Seller’s Records. Possession. Seller will deliver possession of the Groundwater Rights to Buyer, subject to the Permitted Exceptions existing at closing. Transaction Costs Seller’s Costs. Seller will pay the charge for the deed conveying the Groundwater rights, assignment of the Blanket Easement and all other attorney fees incurred by Seller in connection with this transaction together with any curative work revealed by a title search relating to the groundwater rights during Seller’s ownership of the groundwater rights to be conveyed hereunder. Buyer’s Costs. Buyer will pay all costs not allocated to seller in the foregoing paragraph, including, without limitation, attorney fees incurred by Buyer in connection with this transaction. No Merger: In the event the sale closes, the covenants, terms, representations, warranties and other provisions of this agreement shall survive closing and not be merged. 12. Default and Remedies Seller’s Default; Remedies before Closing. If Seller fails to perform any of its obligations under this contract, or if any of Seller’s representations are not true and correct as of the Effective Date or on the Closing Date or any of its warranties have been breached (“Seller’s Default”), Buyer may elect either of the following as its sole and exclusive remedy before closing: Termination. Buyer may terminate this contract by giving notice to Seller on or before the Closing Date and Closing Time. Specific Performance. Unless Seller’s Default relates to the untruth or incorrectness of Seller’s representations for reasons not reasonably within Seller’s control, Buyer may enforce specific performance of Seller’s obligations under this contract, but any such action must be initiated, if at all, within ninety days after the breach or alleged breach of this contract. If title to the Groundwater Rights is awarded to Buyer, the conveyance will be subject to the matters stated in the Title Commitment. Seller’s Default; Remedies after Closing. If Seller’s representations are not true and correct at closing for reasons reasonably within Seller’s control and Buyer does not become aware of the untruth or incorrectness until after closing, Buyer will have all the rights and remedies available at law or in equity. In the event a title defect unknown to the parties at dosing should become apparent after closing, the parties shall cooperate in reasonable efforts to resolve the defect. GROUNDWATER RIGHTS SALES CONTRACT -8-  Buyer’s Default; Remedies before Closing. If Buyer fails to perform any of its obligations under this contract (“Buyer’s Default”), Seller may terminate this contract by giving notice to Buyer on or before closing. If Buyer’s Default occurs after Seller has incurred costs to perform its obligations under this contract and Seller terminates this contract in accordance with the previous sentence, Buyer will also reimburse Seller for the Seller’s actual out-of-pocket expenses incurred after the Effective Date to perform its obligations under this contract (“Seller’s Expenses”), within twenty days after Buyer’s receipt of an invoice from Seller stating the amount of Seller’s Expenses accompanied by reasonable evidence of Seller’s Expenses. 13. Miscellaneous Provisions Notices. Any notice required by or permitted under this contract must be in writing. Any notice required by this contract will be deemed to be delivered (whether actually received or not) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown in this contract. Notice may also be given by regular mail, personal delivery, courier delivery, facsimile transmission, or other commercially reasonable means and will be effective when actually received, provided that (a) any notice received on a Saturday, Sunday, or national holiday will be deemed to have been received on the next day that is not a Saturday, Sunday, or national holiday; and (b) any notice received after 5:00 P.M. local time at the place of delivery on a day that is not a Saturday, Sunday, or national holiday will be deemed to have been received on the next day that is not a Saturday, Sunday, or national holiday. Any address for notice may be changed by not less than ten days’ prior written notice delivered as provided herein. Copies of each notice must be given by one of these methods to the attorney of the party to whom notice is given. Entire Agreement. This contract, its exhibits, and any Closing Documents delivered at closing are the entire agreement of the parties concerning the sale and use of the Groundwater Rights and the use of the Reserved Groundwater and Real Property. There are no representations, warranties, agreements, or promises between the parties pertaining to the Groundwater Rights, Reserved Groundwater, Real Property, sale and use of the Groundwater Rights, or use of the Reserved Groundwater and Real Property, and neither party is relying on any statements or representations of any agent of the other party, that are not in those documents. Amendment. This contract may be amended only by an instrument in writing signed by the parties. Prohibition of Assignment. Buyer may not assign this contract or any of Buyer’s rights under it without Seller’s prior written consent, and any attempted assignment is void. Survival. The provisions of this contract that expressly survive termination or closing and other obligations of this contract that cannot be performed before termination of this contract or before closing survive termination of this contract or closing, and the legal doctrine of merger does not apply to these matters. If there is any conflict between the Closing Documents and this contract, the Closing Documents control. GROUNDWATER RIGHTS SALES CONTRACT -9-  Choice of Law; Venue. This contract is to be construed under the laws of the state of Texas, without regard to choice-of-law rules of any jurisdiction. Venue is in Randall County, Texas. Waiver of Default. It is not a waiver of default if the nondefaulting party fails to declare a default immediately or delays taking any action with respect to the default. No Third-Party Beneficiaries. There are no third-party beneficiaries of this contract. Severability. If a provision of this contract is unenforceable for any reason, to the extent the unenforceability does not destroy the basis of the bargain among the parties, the unenforceability does not affect any other provision of this contract, and this contract is to be construed as if the unenforceable provision is not a part of the contract. Ambiguities Not to Be Construed against Party Who Drafted Contract. The rule of construction that ambiguities in a document will be construed against the party who drafted it will not be applied in interpreting this contract. No Special Relationship. The parties’ relationship is an ordinary commercial relationship, and the parties do not intend to create the relationship of principal and agent, partners, joint venturers, or any other special relationship. Counterparts. If this contract is executed in multiple counterparts, all counterparts taken together constitute this contract. Copies of signatures to this contract are effective as original signatures. Confidentiality. The parties will keep confidential this contract, this transaction, and all information learned in the course of this transaction, except to the extent disclosure is required by law or court order, to enable third parties to advise or assist Buyer to investigate the Groundwater Rights and the Real Property, or by either party to close this transaction. Remedies for violations of this provision are limited to injunctions, and no damages or rescission may be sought or recovered as a result of any such violations. Alternative Dispute Resolution (ADR): Prior to filing suit to redress any claim of violation of this agreement or ancillary instruments, the parties shall first engage in good faith efforts to resolve or settle any such dispute pursuant to Texas Civil Practice and Remedies Code Title 7 Chapter 154 through either non-binding mediation or a non-binding moderated settlement conference. If any settlement is reached through use of ADR procedures, the terms of such settlement shall be reduced to writing and signed by the duly authorized representatives of the parties. Such settlement agreement when duly executed shall be enforceable as a contract. Binding Effect. This contract binds, benefits, and may be enforced by the parties and their respective heirs, successors, and permitted assigns. Effective Date. The term Effective Date as used herein shall mean the day the contract is executed by the last party to sign. GROUNDWATER RIGHTS SALES CONTRACT - 10 - 15. Seller’s Attorney: CHUCK HESTER, City Attorney Address: 1507 4th Ave., Ste A., Canyon, Texas 79015 Phone: (806) 655-1016 Fax: (806) 655-3434 E-mail: chester@canyontx.gov Seller’s Broker: None. Buyer’s Attorney: SHANE BROOKS Address: 701 S Taylor, Ste 500, Amarillo, Texas 79101 Phone: (806) 349-4717 Fax: (806) 373-3454 E-mail: shane.brooks@sprouselaw.com Buyer’s Broker: None Title Company: TBD Agent: ____________________ Address: ____________________ Phone: ____________________ E-mail: ____________________ CORMAN HOLDINGS LLC By:_______________________________________ JERRY CORMAN, President Date: ___________________, 2024 CITY OF CANYON, TEXAS By: _________________________________ JOSEPH H. PRICE, CPM Date: _____________________, 2024 GROUNDWATER RIGHTS SALES CONTRACT - 11 -  Exhibit “A” Description of the Real Property TRACT #1: A 408.35 acre tract of land being a portion of a tract of land described in that certain Warranty Deed recorded in Volume 107, Page 290 of the Deed Records of Randall County, Texas, situated in Section 48, Block 6, I. & G.N. RR Co. Survey, Randall County, Texas, surveyed on the ground by Robert Keys and Associates on this 27th & 31st days of October and 2nd, 6th and 9th days of November, 2017, and said tract of land being further described by metes and bounds as follows: BEGINNING at a 5/8 inch iron rod, found at northeast corner of said Section 48, and same being the northeast corner of this tract of land; Thence S. 00° 01' 14" W., (Directional Control GPS Observation WGS-84), 5303.45 feet along the east line of said Section 48 to a “MAG” nail, found at the southeast corner of said Section 48, and same being the southeast corner of this tract of land; Thence S. 89° 54' 59" W., 4205.63 feet along the south line of said Section 48, and same being the north line of White Fence Farms, according to the recorded map or plat thereof, of record in Volume 469, Page 213 of the Deed Records of Randall County, Texas to a 1/2 inch iron pipe, found at the southwest corner of this tract of land, from whence a 1-1/2 inch iron pipe, found at the southwest corner of said Section 48 bears S. 89° 54' 59" W., 1129.34 feet; Thence N. 16° 21' 32” E., at 2244.31 feet pass a railroad iron with a “T” cut in top, found, from whence a railroad iron with a “T” cut in top, found at the most northerly corner of a 8.57 acre tract of land, surveyed herewith, bears N. 73° 40' 16” W., 199.77 feet, a total distance of 2900.13 feet along the easterly right-of-way line of the BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land; Thence S. 73° 38' 28” E., 50.00 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land, and of the easterly right-of-way line of said BNSF Railroad; Thence N. 16° 21' 32” E., 424.49 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the beginning of a curve to the right having a radius of 5579.65 feet; GROUNDWATER RIGHTS SALES CONTRACT - 12 -  Thence Northeasterly, along said curve and the easterly right-of-way line of said BNSF Railroad right-of-way, an arc distance of 752.65 feet with a chord of N. 20° 13' 24” E., 752.08 feet to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the end of said curve, from whence a 1/2 inch iron rod, found in the westerly right-of-way line of said BNSF Railroad bears N. 69° 38' 02” W., 250.53 feet; Thence N. 24° 05' 16” E., 1362.50 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land and in the easterly right-of-way line of said BNSF Railroad; Thence N. 44° 44' 32” E., 244.80 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a “MAG” nail, set in asphalt at the northwest corner of this tract of land, from whence a 5/8 inch iron rod with an aluminum cap, found at the northwest corner of said Section 48 bears S. 89° 44' 20" W., 3091.13 feet; Thence N. 89° 44' 20” E., 2234.80 feet along the north line of said Section 48 to the POINT OF BEGINNING. TRACT #2: A 8.57 acre tract of land being a portion of a tract of land described in that certain Warranty Deed recorded in Volume 107, Page 290 of the Deed Records of Randall County, Texas, situated in Section 48, Block 6, I. & G.N. RR Co. Survey, Randall County, Texas, surveyed on the ground by Robert Keys and Associates on this 27th & 31st days of October and 2nd, 6th & 9th days of November, 2017, and said tract of land being further described by metes and bounds as follows: BEGINNING at a railroad iron with a “T” cut in top, found at the southwest corner of this tract of land, from whence a 1-1/2 inch iron pipe, found at the southwest corner of said Section 48 bears S. 89° 54' 59" W., 583.38 feet; Thence N. 24° 01' 22" E., (Directional Control GPS Observation WGS-84), 956.34 feet along the easterly line of Rockwell Place Unit No. 1, according to the recorded map or plat thereof, of record in Volume 745, Page 161 of the Deed Records of Randall County, Texas to a railroad iron with a “T” cut in top, found at a jog corner of this tract of land; Thence N. 24° 03' 53" E., 1464.16 feet along easterly line of said Rockwell Place Unit No. 1 to a railroad iron with a “T” cut in top, found at the most northerly corner of this tract of land GROUNDWATER RIGHTS SALES CONTRACT - 13 -  Thence S. 16° 21' 32” W., 2303.16 feet along the westerly right-of-way line of BNSF Railroad (dedication not found) to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the southeast corner of this tract of land, from whence a “MAG” nail, found at the southeast corner of said Section 48 bears N. 89° 54' 59” E., 4413.92 feet; Thence S. 89° 54' 59” W., 337.67 feet along south line of said Section 48 to the POINT OF BEGINNING. GROUNDWATER RIGHTS SALES CONTRACT - 14 -  EXHIBIT “B” DEED GROUNDWATER RIGHTS SALES CONTRACT - 15 -  GROUNDWATER RIGHTS WARRANTY DEED NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. Date: Effective ________________,2024 Grantor: THE CITY OF CANYON TEXAS Grantor’s Mailing Address: 301 16th Street Canyon, Texas 79015 Grantee: CORMAN HOLDINGS, LLC Grantee’s Mailing Address: 17651 Corman Ranch Road, Canyon Randall County, Texas 79015 Consideration: As stated in the Groundwater Rights Sales Contract with an effective date of ________________,2024 Real Property: TRACT #1: A 408.35 acre tract of land being a portion of a tract of land described in that certain Warranty Deed recorded in Volume 107, Page 290 of the Deed Records of Randall County, Texas, situated in Section 48, Block 6, I. & G.N. RR Co. Survey, Randall County, Texas, surveyed on the ground by Robert Keys and Associates on this 27th & 31st days of October and 2nd, 6th and 9th days of November, 2017, and said tract of land being further described by metes and bounds as follows: BEGINNING at a 5/8 inch iron rod, found at northeast corner of said Section 48, and same being the northeast corner of this tract of land; Thence S. 00° 01' 14" W., (Directional Control GPS Observation WGS-84), 5303.45 feet along the east line of said Section 48 to a “MAG” nail, found at the southeast corner of said Section 48, and same being the southeast corner of this tract of land; Thence S. 89° 54' 59" W., 4205.63 feet along the south line of said Section 48, and same being the north line of White Fence Farms, according to the recorded map or plat thereof, of record in Volume 469, Page 213 of the Deed Records of Randall County, Texas to a 1/2 inch iron pipe, found at the southwest corner of this tract of land, GROUNDWATER RIGHTS SALES CONTRACT - 16 -  from whence a 1-1/2 inch iron pipe, found at the southwest corner of said Section 48 bears S. 89° 54' 59" W., 1129.34 feet; Thence N. 16° 21' 32” E., at 2244.31 feet pass a railroad iron with a “T” cut in top, found, from whence a railroad iron with a “T” cut in top, found at the most northerly corner of a 8.57 acre tract of land, surveyed herewith, bears N. 73° 40' 16” W., 199.77 feet, a total distance of 2900.13 feet along the easterly right-of-way line of the BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land; Thence S. 73° 38' 28” E., 50.00 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land, and of the easterly right-of-way line of said BNSF Railroad; Thence N. 16° 21' 32” E., 424.49 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the beginning of a curve to the right having a radius of 5579.65 feet; Thence Northeasterly, along said curve and the easterly right-of-way line of said BNSF Railroad right-of-way, an arc distance of 752.65 feet with a chord of N. 20° 13' 24” E., 752.08 feet to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the end of said curve, from whence a 1/2 inch iron rod, found in the westerly right-of-way line of said BNSF Railroad bears N. 69° 38' 02” W., 250.53 feet; Thence N. 24° 05' 16” E., 1362.50 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at a jog corner of this tract of land and in the easterly right-of-way line of said BNSF Railroad; Thence N. 44° 44' 32” E., 244.80 feet along the easterly right-of-way line of said BNSF Railroad right-of-way to a “MAG” nail, set in asphalt at the northwest corner of this tract of land, from whence a 5/8 inch iron rod with an aluminum cap, found at the northwest corner of said Section 48 bears S. 89° 44' 20" W., 3091.13 feet; Thence N. 89° 44' 20” E., 2234.80 feet along the north line of said Section 48 to the POINT OF BEGINNING. TRACT #2: A 8.57 acre tract of land being a portion of a tract of land described in that certain Warranty Deed recorded in Volume 107, Page 290 of the Deed Records of Randall GROUNDWATER RIGHTS SALES CONTRACT - 17 -  County, Texas, situated in Section 48, Block 6, I. & G.N. RR Co. Survey, Randall County, Texas, surveyed on the ground by Robert Keys and Associates on this 27th & 31st days of October and 2nd, 6th & 9th days of November, 2017, and said tract of land being further described by metes and bounds as follows: BEGINNING at a railroad iron with a “T” cut in top, found at the southwest corner of this tract of land, from whence a 1-1/2 inch iron pipe, found at the southwest corner of said Section 48 bears S. 89° 54' 59" W., 583.38 feet; Thence N. 24° 01' 22" E., (Directional Control GPS Observation WGS-84), 956.34 feet along the easterly line of Rockwell Place Unit No. 1, according to the recorded map or plat thereof, of record in Volume 745, Page 161 of the Deed Records of Randall County, Texas to a railroad iron with a “T” cut in top, found at a jog corner of this tract of land; Thence N. 24° 03' 53" E., 1464.16 feet along easterly line of said Rockwell Place Unit No. 1 to a railroad iron with a “T” cut in top, found at the most northerly corner of this tract of land Thence S. 16° 21' 32” W., 2303.16 feet along the westerly right-of-way line of BNSF Railroad (dedication not found) to a 3/8 inch iron rod with a cap stamped "KEYS R.P.L.S. 2507", set at the southeast corner of this tract of land, from whence a “MAG” nail, found at the southeast corner of said Section 48 bears N. 89° 54' 59” E., 4413.92 feet; Thence S. 89° 54' 59” W., 337.67 feet along south line of said Section 48 to the POINT OF BEGINNING. Groundwater: All of the underground water, percolating water, artesian water, and any other water from any and all depths and reservoirs, formations, depths and horizons beneath the surface of the Real Property, excluding underflow or flow in a defined subterranean channel. Groundwater Rights: (1) The Groundwater, and the right to test, explore for, drill for, develop, withdraw, capture, or otherwise beneficially use the Groundwater; and (2) all permits, licenses, or other governmental authorizations relating to any of the foregoing. Reservations from Conveyance: None. Exceptions to Conveyance and Warranty: Subject to the Blanket Easement Agreement for Groundwater Rights, assigned and transferred to Grantee, together with all other contract rights existing in favor of Grantor. Subject also to any private well on the property authorized by the GROUNDWATER RIGHTS SALES CONTRACT - 18 - Groundwater Rights Warranty Deed dated effective January 29, 2019 recorded under Clerk’s file number 2019001584 official public records of Randall County, Texas. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Groundwater Rights, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee’s heirs, successors, and assigns forever. Grantor binds Grantor and Grantor’s heirs and successors to warrant and forever defend all and singular the Groundwater Rights to Grantee and Grantee’s heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, when the claim is by, through or under Grantor, but not otherwise. When the context requires, singular nouns and pronouns include the plural. GRANTOR: THE CITY OF CANYON By:_______________________________________ Name: Title: Date: ________________,2024 THE STATE OF TEXAS § COUNTY OF RANDALL § This instrument was acknowledged before me on this _____ day of __________, 2024, by JOSEPH H PRICE, City Manager of the CITY OF CANYON, TEXAS, home rule municipality in Randall County, Texas, on behalf of said municipality. __________________________________________ Notary Public, State of Texas Commission Expires:________________________ AFTER RECORDING RETURN TO: PREPARED BY: City of Canyon Chuck Hester, City Attorney 301 16th Street 1507 4th Ave., Ste. A Canyon, Texas 79015 Canyon, Texas 79015 GROUNDWATER RIGHTS SALES CONTRACT - 19 -  Exhibit “C” Assignment of Easement GROUNDWATER RIGHTS SALES CONTRACT - 20 -  ASSIGNMENT OF INTEREST DATE: ____________________, 2024 ASSIGNOR: CITY OF CANYON ASSIGNOR'S MAILING ADDRESS (include county): 301 16th Street, Canyon, Randall County, Texas 79015 ASSIGNEE: CORMAN HOLDINGS, LLC ASSIGNEE'S MAILING ADDRESS (include county): 17651 Corman Ranch Road, Canyon, Randall County, Texas 79015 INTEREST ASSIGNED: All Assignor's right, title and interest in and to the Blanket Easement Agreement for Groundwater Rights with an effective date of January 29, 2019 recorded under Clerk’s file number 2019001585 official public records of Randall County, Texas. CONSIDERATION: $10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged. Assignor, for the consideration set forth above, sells, assigns, and transfers all its right, title and interest in the easement above described, and warrants that it has the full right, power, and authority to transfer ownership and that such assignment is effective to vest ownership in Assignee. Assignor binds Assignor and Assignor’s successors to warrant and defend all and singular the interest to Assignee and Assignee’s heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by, through or under Assignor but not otherwise. Assignee assumes and agrees to perform the Assignor’s obligations after this date. When the context requires, singular nouns and pronouns include the plural. CITY OF CANYON, Assignor By:____________________________________ JOSEPH H PRICE, City Manager GROUNDWATER RIGHTS SALES CONTRACT - 21 -  ACKNOWLEDGMENT THE STATE OF TEXAS § § COUNTY OF RANDALL § This instrument was acknowledged before me on the day of ____________, 2024, by JOSEPH H PRICE, City Manager of the City of Canyon, Texas on behalf of the City. Notary Public, State of Texas GROUNDWATER RIGHTS SALES CONTRACT - 22 -