Res 2020-109/approving contracts with Hays Energy, LLC for the sale of reclaimed water for and the treatment of Wastewater from Hays Energy’s Electric Power Generation Facility South of the city

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to the other party, delivered no later than the second (2"d) anniversary of the Effective Date. In the event the Buyer or Seller delivers such notice, the parties may execute an amendment to this Contract to increase or decrease the Base and/or Reserve Quantity if mutually agreed-upon by the parties. Section 1.02. Metering Equipment. The Seller owns and maintains metering equipment and devices previously conveyed from the Buyer which meet the Seller's standard specifications for measuring within a tolerance of 2% (the "Accuracy Tolerance") the quantity of Reclaimed Water delivered to the Point of Delivery, together with devices and equipment of standard type for the proposed application to limit, measure, and record the rate of flow at the Point of Delivery, to prevent the backflow of water or the contamination of water in the Seller's distribution system, and to protect and secure the metering equipment and other devices. The Seller will deliver the Reclaimed Water through this equipment. Section 1.03. Maintenance and Testing of Metering Equipment. A. The Seller will maintain the metering equipment within the Accuracy Tolerance, and will test the metering equipment for accuracy at least once every 12 months. B. The Buyer may have the metering equipment independently tested at its own cost with 48 hours notice to the Seller. The Seller may attend any such test. If a test shows an inaccuracy in the metering equipment. the Seller shall adjust the monthly billing of a period extending back to the time when the inaccuracy 'began if such time is ascertainable, or if such time is not ascertainable, for a period extending back to the last test of the metering equipment or 120 days, whichever is shorter, in accordance with the percentage of inaccuracy found during the test, whether above or below the correct volume. In the event the meter fails to register for any period, the Seller shall calculate the usage during the time of meter failure to be the amount of Reclaimed Water determined through use of the Seller's Supervisory Control and Data Acquisition system for the period, or as otherwise mutually agreed upon by the parties. The Seller shall recalibrate or replace any inaccurate metering equipment at its expense. Section 1.04. Billing. The Seller will furnish the Buyer with an itemized monthly billing statement showing the actual volume of Reclaimed Water supplied in 1,000 gallon increments and the amounts due in accordance with the Contract Rate. In no event will the invoice amount be less than the Minimum Monthly Payment (as defined in Section 2.01) due for such month. Article 2. Obligations of the Rnyg Section 2.01. Payment. The Buyer will pay to the Seller at the Seller's billing offices in San Marcos, Texas, within twenty-five days after receipt of the itemized statement each month: (a) payment per 1000 gallons of Reclaimed Water supplied as shown on the statement at the prevailing reclaimed water rate then in effect as established by the Seller's governing body. Notwithstanding the foregoing, the Buyer shall make a minimum monthly payment to the City (the "Minimum Monthly Payment") for the Reserve Quantity multiplied by the Prevailing Rate multiplied the number of days in the month of the water usage, regardless of the Buyer's actual water usage. In addition to any other amounts payable by Buyer, the Buyer will pay to the Seller a monthly fee of $500 for each month the Supply Line (as defined hereafter) is not in use. In addition, the Buyer will pay to the Seller the amounts of any monthly minimum fixed charges and all federal, state, and local taxes, fees, and any charges that may be applicable tothe provision of Reclaimed Water under this Contract or applicable ordinance. A. Buyer will pay a minimum monthly charge at the rate identified in the then prevailing reclaimed water minimum charge as shown in the Utilities Rates and Fees Schedule. Section 2.02. Compliance with Seller's Regulations. The Buyer will comply with the Seller's ordinances and regulations governing the use and supply of reclaimed water that are currently in effect and as they may be adopted or amended from time to time. Section 2.03. Supply. The Buyer agrees to use the Seller as a source of water for the Facility's operating purposes, provided the Seller is not in default under this Contract.