Res 2024-098 approving an amended agreement providing for the city to sell additional potable treated water on a wholesale basis to the County Line Special Utility District

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Section 2.01. Minimum Monthly Payment Amount. By entering into this Agreement, CLSUD will pay to SMTXU a minimum monthly amount equivalent to usage of 750,000 gallons per day, at the initial billing rate of$4.80 per 1,000 gallons, for a total of$109,500.00 per month, regardless of the actual amount of Treated Water delivered to CLSUD each month. Provided, however, that if SMTXU fails to make available the Maximum Daily Quantity of Treated Water to CLSUD on any day, then this payment requirement shall be reduced by the corresponding percentage reduction in Treated Water furnished to CLSUD for that day under this Agreement. Section 2.02. Actual Usage Payment Amount. By entering into this Agreement,CLSUD agrees to pay to SMTXU for actual usage above 750,000 gallons per day up to the Maximum Daily Quantity at the initial billing rate of$4.80 per 1,000 gallons. Section 2.03. Initial Billing Rate. The initial rate to be paid by CLSUD for Treated Water under this Agreement shall be $4.80 per 1,000 gallons of Treated Water furnished after the Effective Date. Thereafter,the rate for Treated Water shall be as set periodically by resolution of the San Marcos City Council; however, Treated Water rates under this Agreement shall not be increased more than five percent in any twelve-month period. Section 2.04. Billing and Payment. At the end of each calendar month, SMTXU shall determine the quantity of water consumed by CLSUD and furnish CLSUD with an itemized monthly billing statement showing the quantity of Treated Water supplied in 1,000-gallon increments and the payment amounts due based upon the minimum purchased quantity and the applicable billing rate. On or before the 25th day following the date of the billing statement, CLSUD shall pay to SMTXU 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 CLSUD fails to pay any charges when due and payable, SMTXU may give written notice of such delinquency to CLSUD. If all bills due and unpaid, including interest thereon, are not paid within 45 days after delivery of such notice,then CLSUD agrees that SMTXU 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 SMTXU may, at its option, discontinue delivering water covered by this Agreement to CLSUD until all amounts due and unpaid are paid in full with interest thereon as herein specified. Section 2.05. [INTENTIONALLY OMITTED] Section 2.06. CLSUD's Collection of Fees. CLSUD agrees to establish, charge and collect sufficient rates, fees, and charges from its customers to make all payments required under this Agreement. Section 2.07. Reduction or Cessation of Supply of Treated Water. Except in cases of emergency,when notice will be given as soon as practicable, SMTXU will notify CLSUD 30 days prior to undertaking scheduled maintenance of the SWTP or other water treatment and water distribution facilities that will require a reduction or cessation of supply of Treated Water to CLSUD. SMTXU will notify CLSUD as soon as possible of any unscheduled maintenance or failure of the SWTP or other water treatment or water distribution facilities that has caused or will cause a reduction or cessation of supply of Treated Water to CLSUD. SMTXU will notify CLSUD 3 Version 2024.06.04