Res 2016-153/approving a Water Supply agreement for the sale of treated water to the City of Kyle

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meters and connections as provided in the Amended and Restated Water Transportation Agreement are capable of serving the requirements of this Agreement. Article 2. Payments for Treated Water and Other Terms of Supply Section 2.01. Billing Rate. The initial rate to be paid by Kyle for Treated Water under this Agreement shall be $4.56 per 1,000 gallons of Treated Water furnished after the Effective Date. Thereafter, the rate for Wholesale Treated 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, San Marcos shall determine the quantity of water consumed by Kyle and furnish Kyle with an itemized monthly billing statement showing the quantity of Treated Water supplied in 1,000 gallon increments and the amounts due based upon the applicable billing rate. On or before the 15th day following the date of the billing statement, Kyle shall pay to San Marcos 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 Kyle fails to pay any charges when due and payable, San Marcos may give written notice of such delinquency to Kyle. If all bills due and unpaid, including interest thereon, are not paid within 45 days after delivery of such notice, then Kyle agrees that San Marcos 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 San Marcos may, at its option, discontinue delivering water covered by this Agreement to Kyle until all amounts due and unpaid are paid in full with interest thereon as herein specified. Section 2.03. Minimum Monthly Payment Amount. By entering into this Agreement, San Marcos will incur maintenance, administrative and operational expenses necessary to comply with and manage its obligations under this Agreement. In order to offset such expense, Kyle will pay to San Marcos a minimum monthly amount of$150.00, regardless of the actual amount of Treated Water delivered to Kyle each month. Section 2.04. Kyle's Collection of Fees. Kyle agrees to establish, charge and collect from its water customer's rates, fees and charges sufficient to pay all payments under this Agreement. Section 2.05. Reduction or Cessation of Supply of Treated Water. Except in cases of emergency, when notice will be given as soon as practicable, San Marcos will notify Kyle 30 days prior to undertaking scheduled maintenance of the San Marcos Treatment Plant or other water treatment and water distribution facilities that will require a reduction or cessation of supply of Treated Water to Kyle. San Marcos will notify Kyle as soon as possible of any unscheduled maintenance or failure of the San Marcos Treatment Plant or other water treatment or water distribution facilities that has caused or will cause a reduction or cessation of supply of Treated Water to Kyle. San Marcos will notify Kyle at least 90 days prior to any other reduction or cessation by San Marcos of supply of Treated Water to Kyle 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 Kyle. 3