Res 2014-163/Sale of treated water to Crystal Clear Special Utility District

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Section 2.01. Billing Rate. The initial rate to be paid by Crystal Clear for Water under this Agreement shall be $4.13 per 1,000 gallons of Water furnished after the Effective Date. Thereafter, the rate for Wholesale Water shall be as set periodically by resolution of the San Marcos City Council. Section 2.02. Billing and Payment. At the end of each calendar month, the City shall determine the quantity of water consumed by Crystal Clear and furnish Crystal Clear with an itemized monthly billing statement showing the quantity of Water supplied in 1,000 gallon increments and the amounts due based upon the applicable billing rate. On or before the 15`h day following the date of the billing statement, Crystal Clear shall pay to the City the amount due for such previous month as stated therein. After that due date, interest shall accrue on all bills at the maximum rate allowed by law. In the event Crystal Clear fails to pay any charges when due and payable, the City may give written notice of such delinquency to Crystal Clear. If all bills due and unpaid, including interest thereon, are not paid within 45 days after delivery of such notice, then Crystal Clear agrees that the City shall be authorized, at its option, to institute suit to collect any amounts due and unpaid, together with interest thereon and reasonable attorneys' fees and further agrees that the City may, at its option, discontinue delivering water covered by this Agreement to Crystal Clear until all amounts due and unpaid are paid in full with interest thereon as herein specified. Section 2.03. Crystal Clear's Collection of Fees. Crystal Clear agrees to establish, charge and collect from its water customers' rates, fees and charges sufficient to pay all payments under this Agreement. Section 2.04. Reduction or Cessation of Supply of Water. Except in cases of emergency, when notice will be given as soon as practicable, the City will notify Crystal Clear 30 days prior to undertaking scheduled maintenance of water distribution facilities that will require a reduction or cessation of supply of Water to Crystal Clear. The City will notify Crystal Clear as soon as possible of any unscheduled maintenance of water distribution facilities that has caused or will cause a reduction or cessation of supply of Water to Crystal Clear. The City will notify Crystal Clear at least 90 days prior to any other reduction or cessation by the City of supply of Water to Crystal Clear that is authorized by this Agreement, unless the reduction or cessation is the result of a circumstance under Section 4.02 below, or is based upon a default by Crystal Clear. Article 3. Term, Default and Termination Section 3.01. Term. The initial term of this Agreement is five years (the "Initial Term ") commencing on the Effective Date. This Agreement may be renewed or extended for additional renewal terms with the mutual consent of the parties. If neither party sends written notice to the other of its intent to renew the Agreement at least 90 days before the expiration of the Initial Term, then this Agreement shall terminate automatically on the last day of the Initial Term. The Parties intend that this Agreement will no longer be required once the final exchange and transfer of CCNs occurs pursuant to PUC Docket No. 42984. 3