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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WASTEWATER TREATMENT SERVICES CONTRACT This Wastewater Treatment Services Contract (the "Contract") is made and entered into on 3LL 2020 (the "Effective Date") between Hays Energy LLC ("Hays Energy") and the City of San Marcos, Texas (the "City"), a Texas municipal corporation. WITNESSETH WHEREAS, Hays Energy owns an electric generating facility (the "Facility") in Hays County, Texas that requires wastewater treatment services; and WHEREAS, the City owns and operates a wastewater treatment plant (the "Treatment Plant") with a capacity capable of providing to Hays Energy the wastewater treatment services described in this Contract; and WHEREAS, the City desires to provide, and Hays Energy desires to obtain, the wastewater treatment services under the terms and conditions specified in this Contract; WHEREAS, the City and Hays Energy entered into a Wastewater Treatment Services Contract dated June 29, 1999 (the "Original Contract") that will expire in 2020; and WHEREAS, the City and Hays Energy desire to enter a new Contract for this service; NOW, THEREFORE, in consideration of the foregoing and the following mutual promises, covenants, benefits and agreements contained herein, the City and Hays Energy agree as follows: RTIMIMM-6-MM1 1 . a_ 11 • 1 Section 1.01. Services to be Provided. The City agrees to provide to Hays Energy, and Hays Energy agrees to obtain from the City, wastewater treatment services for wastewater (the "Wastewater") produced at the Facility when the Facility's zero liquid discharge equipment is not in operation. The treatment services will consist of those processes (the "Routine Treatment") required at the City's River Road Wastewater Treatment Plant (the "Treatment Plant") to comply with all applicable permit requirements. Section 1.02. Metering Equipment. Hays Energy will obtain, install and convey to the City metering equipment and devices which meet standard City specifications for measuring within a tolerance of 2% (the "Accuracy Tolerance") the quantity of Wastewater delivered to the point (the "Transfer Point") where the transmission pipeline for the Wastewater crosses the property line of the site of the Facility, together with devices and equipment of standard type for the proposed application to limit, measure, and record the rate of flow at the Transfer Point, to prevent the backflow of water or the contamination of water in the City's distribution system, and to protect and secure the metering equipment and other devices. Section 1.03. Maintenance and Testing of Metering Equipment. A. The City will maintain the metering equipment within the Accuracy Tolerance, and will test the metering equipment for accuracy at least once every 12 months. B. Hays Energy may have the metering equipment independently tested at its own cost with 48 -hours notice to the City. The City may attend any such test. If a test shows an inaccuracy in the metering equipment, the City shall adjust the monthly billing of a period extending back to the tone 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 City shall calculate the usage during the time of meter failure to be the amount of Wastewater furnished during the same period of the previous year, or as otherwise mutually agreed upon by the parties. The City shall recalibrate or replace any inaccurate metering equipment at its expense.