Res 2018-040/approving a contract with TXI Operations, LP, d/b/a Martin Marietta for the sale of reclaimed water

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regulations, and ordinances relating to the Delivery Facilities, the reclaimed water and the City's other duties set forth in this Contract, at the City's sole cost and expense. Section 2.02. Connections to Delivery Facilities. The: City will ensure that any connections made to the Delivery Facilities to serve other customers are equipped in such a way that the City is able to comply with its supply obligations to Martin Marietta under this Contract. In the event of an uncontrollable circumstance set forth in Section 4.04 below which reduces reclaimed water available below the Maximum Quantity Martin Marietta shall not be cut back from its usage of reclaimed water to a greater percentage than any and all other customers of the City, or the City itself. Section 2.03. On -Site Facilities of Martin Marietta. Martin Marietta will be responsible for construction and maintenance of all facilities on Martin Marietta's property needed to transport the reclaimed water from the Point of Delivery to the points on Martin Marietta's property where the reclaimed water will be used. Article 3. Payments for Reclaimed Water and Other Terms of Supy Section 3.01. Payment. Martin Marietta will pay to the City at the City's billing offices in San Marcos, Texas, within 15 days after receipt of the itemized statement each month at the prevailing reclaimed water rates determined by the City's governing body. In addition, Martin Marietta will pay to the City the amounts of all federal and state, and local taxes, fees, and charges that may apply to the provision of reclaimed water under this Contract. Regardless of the actual amount of reclaimed water used by Martin Marietta each month, Martin Marietta will pay a minimum monthly amount based on the price for 120,000 gallons per day at the applicable rate. This minimum amount will be recalculated annually based on the prevailing reclaimed water rate. This Minimum monthly amount will be reduced on a pro rata basis, however, for each full day in a month in which the supply of Reclaimed water is reduced below 120,000 GPD or ceases without fault of Martin Marietta. Section 3.02. Compliance with City's Regulations. Martin Marietta will comply with the City's ordinances and regulations govermng the use and supply of reclaimed water that are currently in effect and as they may be adopted or amended from time to time, provided that, if any future City ordinances or regulations result in a reasonably necessary expenditure by Martin Marietta or an increased operating cost to Martin Marietta, the City will allow Martin Marietta to recoup its expenditures or increased operating costs by direct offset against the amounts due to be paid by Martin Marietta hereunder, Section 3.03. Primary Supply. Martin Marietta agrees to use the City as its primary source of reclaimed water for the Martin Marietta Facility's operating purposes, provided the City is not in default under this Contract.. Section 3.04. Reduction or Cessation of Supply of Reclaimed Water;. Notice. Except under emergency, when notice will be given as soon as practicable, the City will notify Martin Marietta thirty days prior to undertaking scheduled maintenance of the Delivery Facilities that will require a reduction or cessation of supply of reclaimed water to the Martin Marietta Facility. The City will notify Martin Marietta as soon as possible of any unscheduled maintenance or failure of the Delivery Facilities that has caused or will cause a reduction or cessation of supply of reclaimed water to the 3