after said March 1. The City will also certify to the Commission within seven days after said rate is fixed the real property ad valorem tax rate of the City which is effective for each calendar year during the term of this agreement. The Commission will advise the City not later than April 15 of each year, or within 10 days after notification of the amount of said tax rate, if subsequent to April 15, the amount of any adjustment in the annual assistance payment which the Commission may determine to be appropriate under the provisions of Article II hereof. The City will furnish to the Commission annually a copy of the annual financial report of the City as certified by a Certified Public Accountant.

4. No member of or delegate to Congress or resident commissioner shall be admitted to any share or part of the contract contained in this document or to any benefit that may arise therefrom but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

5. a. The City agrees that the Commission and the Comptroller
General of the United States or any of their duly authorized
representatives shall have access to and the right to examine
any directly pertinent books, documents, papers and records of
the City involving transactions related to this contract until
the expiration of three years after final payment under this
contract unless the Commission authorizes their prior disposition.

b. Nothing in this contract shall be deemed to preclude an audit by the General Accounting Office of any transaction under this contract.

6. Neither this contract nor any interest there in nor claim thereunder shall be assigned or transferred by the City, except as expressly authorized in writing by the Commission.

7. The City warrants that no person has been or will be employed or retained to solicit or secure this contract or any financial assistance hereunder upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. For breach or violation of this warranty, the Government shall have the right to deduct from the financial assistance the full amount of such commission, percentage, brokerage, or contingent fee.

8. The provision of financial assistance is not intended to constitute the City an agent of the Government or Commission.

9. The term "Contracting Officer" means the person executing this contract on behalf of the Government and includes his successors or any duly authorized representative of any such person.

10. The term "Commission" means the United States Atomic Energy Commission or any duly authorized representative thereof, including the Contracting Officer, except for the purpose of deciding an appeal under the Article entitled "Disputes".

11. The term "City" includes any duly authorized representative thereof, as appropriate in the context.

ARTICLE IV DISPUTES

1. Except as otherwise provided in this contract, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Contracting Officer, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the City. The decision of the Contracting Officer shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the City mails or otherwise furnishes to the Contracting Officer a written appeal addressed to the Commission. The decision of the Commission or its duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this article, the City shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the City shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

2. This "Disputes" article does not preclude consideration of law questions in connection with decisions provided for in Paragraph 1., above; Provided, that nothing in this contract shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

IN WITNESS WHEREOF, the parties have executed this contract as of the date first above written, such action by the City being exercised pursuant to Resolution No. 12-143-63, dated December 5, 1963, duly adopted pursuant to law.

Contract No. AT-(40-1)-2662

AEC-CITY OF OAK RIDGE CONTRACT

AND ADMINISTRATIVE POLICY STATEMENT
CONCERNING FINANCIAL ASSISTANCE

STATEMENT OF COMMISSION POLICY, and CONTRACT between the UNITED STATES OF AMERICA (referred to below as the "Government") acting by and through the UNITED STATES ATOMIC ENERGY COMMISSION (referred to herein as the "Commission"), and the CITY OF OAK RIDGE, a municipal corporation organized under the laws of the State of Tennessee (referred to below as the "City").

1. Assistance Directed by Law for Ten Years. The Atomic Energy Community Act of 1955 (P. L. 221, 84th Congress, 69 Stat. 471, 42 U. S. Code, Section 2301, et seq., as heretofore amended, referred to below as the "Act"), provides for transfers of municipal installations at Oak Ridge, Tennessee, and for annual assistance payments of just and reasonable sums for ten years to the local entity, with the Commission determining the amounts, times, and terms of such payments subject to provisions of the Act.

2. Continued Aid after Ten Years. Before the end of the tenyear period, the Commission will take action as called for by the Act, with respect to further contribution payments.

3. Purposes of this Document. After extensive consideration of Community needs, the provisions of the Act, and other pertinent facts by Commission and City representatives, the City and Commission desire to enter into a contract in accordance with Section 94 of the Act. The terms and conditions of this contract are included in Article III and Article V below. Also, the Commission is willing to identify administrative policy criteria which are expected to serve as further guides in determining the amounts of payments which would be just and reasonable. These criteria as presently identified are included in Article II and Article IV below.

4. Criteria Intent. In general, the intent of the criteria is to execute Commission responsibilities for facilitating the establishment of local self-government for the Oak Ridge Community, for making the annual assistance payments to the local government, and for efficiency and economy in the administration of the affairs and funds of the Government entrusted to the Commission. As indicated in the criteria,

it is expected that the City will always guide itself by the necessity for efficiency, economy, and prudence in all municipal activities and will recognize the provisions of the Act as both assurances of and limitations upon the amount of special Federal assistance which the Commission can furnish it. The assistance should enable municipal services at the level referred to in the Act (a) without substantial change in the effective charges against real estate for municipal services (except as effective real estate tax rates may change generally in other cities of the State), and (b) without substantial City deficits. The Commission does not intend to calculate the assistance on the basis of fixed, declining dollar amounts in the ten-year period.

The Commission will not exercise direction, supervision, or control over the personnel, curriculum, or program of instruction of the City's school system, nor will it undertake to so regulate the City's other municipal activities, including its tax rates and expenditures.

1.

Criteria for and Scope of Assistance. The Act stipulates that the Commission shall, for a period of ten years, make annual assistance payments of just and reasonable sums to the entity receiving the installation transferred hereunder.. In determining

the amount and recipient of such payments, the Commission shall consider

(1) the approximate real property taxes and assessments
for local improvements which would be paid to the
governmental entity upon property within the community
if such property were not exempt from taxation by
reason of Federal ownership;

(2) the maintaining of municipal services at a level which will not impede the recruitment or retention of personnel essential to the atomic energy program;

(3) the fiscal problems peculiar to the governmental entity by reason of the construction at the community as a single purpose national defense installation under emergency conditions; and

(4) the municipal services and other burdens imposed on the governmental or other entities at the community by the United States in its operations in the project area."

95-001 - 73 - Pt. 462