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Article 2. Pa ments for Treated Water and Uther Terms of Su 1 Section 2.01. Billing Rate. The initial rate to be paid by Kyle for Treated Water under this Agreement shall be $2.94 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 u on the a licable billin rate. Dn or before the 15th day P PP following the date of the billing statement, Kyle shall pay to Sa?? ??, ,os the amount due for such previous month as stated therein. After that due date, interest shy ? ^crue on all bills at the maximum rate allowed bylaw. In the event Kyle fails to pay any ? narge? den due and payable, San Marcos may give written notice of such delinquency to Ky ?. If all ? ? .lue and unpaid, including interest thereon, are not paid within 45 days after deli ,v of suc' . l?otice, then Kyle agrees that San Marcos shall be authorized, at its option, + ??tu?? '' ` collect any amounts due and unpaid, together with interest thereon and reasc ??ab1P attorneys ? tees and further agrees that San Marcos may, at its option, disconti ? deliver, ?? pater cc ?ered by this Agreement to Kyle until all amounts due and unpaid are paid 1? ? ?ll witi? ?+Pres?' Freon as herein specified. Section 2,03. Minimum Monthly Paymt. Amount. By entering into this A reement, San Marcos will it ??r maj? ?P, adr?_ '?trative and operational expenses g necessary to comply with and mane its ?bligat? s unc??r this Agreement. In order to offset such expense, Kyle will pay to San Mu. ? a minin, m monthly amount of $150.00, regardless of the actual amount of Treated Water deli 4 ?? to K? le each month. Section 2.04. T'vle's C llecti ?, f Fees. Kyle agrees to establish, charge and collect from its water cus? ?mers rate' fey s an, urges sufficient to pay all payments under this Agreement. Sects 12.05. ? '?iction or Cessation of Supply of Treated Water. Except incases of emergency, w??°n notice ' be given as soon as practicable, San Marcos will notify Kyle 30 days prior to undertaking s?. ' .red maintenance of the San Marcos Treatment Plant or other water treatment and water di ?ribution 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 ar 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