HomeMy WebLinkAboutRes 2022-04-1143 Chambers Grove MUD AgreeCITY OF ANNA, TEXAS
RESOLUTION NO.Qa-
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR
WHOLESALE WASTEWATER TREATMENT BY AND BETWEEN THE CITY OF
ANNA, TEXAS AND CHAMBERS GROVE MUNICIPAL UTILITY DISTRICT NO,
13 IN A FORM APPROVED BY THE CITY ATTORNEY, AS SHOWN IN EXHIBIT
"A" ATTACHED HERETO, AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Anna is seeking to construct the Hurricane Creek Regional
Wastewater Treatment Plant in the southwest portion of the Extraterritorial Jurisdiction
of the City of Anna; and,
WHEREAS, the Chambers Grove Municipal Utility District No. 1 (Chambers Grove) is
a proposed residential development in the Extraterritorial Jurisdiction of the City of
Anna, Texas; and
WHEREAS, Chambers Grove is seeking to contract with the City of Anna to receive
wholesale wastewater treatment services from the City of Anna at the proposed
Hurricane Creek Regional Wastewater Treatment Plant; and,
WHEREAS, Chambers Grove has requested to enter into a contract for Wholesale
Wastewater Treatment Services with the understanding that final rates to be charged
for the services are yet to be determined; and,
WHEREAS, upon the completion of a final rate study and adoption of wholesale
wastewater rates by the City Council of the City of Anna, the wholesale wastewater
treatment rates will be attached to the agreement as an exhibit and will be made a part
of the agreement; and,
WHEREAS, upon the adoption of the preliminary plat for Chambers Grove Subdivision
by the City Council of the City of Anna, the legal description of the property will be
attached to the agreement as an exhibit and will be made a part of the agreement; and,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ANNA, TEXAS, THAT:
Section 1, Recitals Incorporated.
The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. Authorization,
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The City Council hereby approves entering into and authorizes the City Manager to
execute an agreement with the Chambers Grove Municipal Utility District No. 1 as
shown in Exhibit "A" attached hereto.
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PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this
Jay of aulLt 2022.
ATTEST:
City Secretary, Carrie L. Land
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APPROVED:
®A/i�;r,,
a Mayor,
Nate Pike
Exhibit A
(following page)
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WHOLESALE WASTEWATER CONTRACT
This Wholesale Wastewater Contract (this "Contract") is made and entered into on
this, the / I day of April, 2022 (the "Effective Date") by and between the City of Anna,
Texas, a Texas home -rule municipality ("Anna"), and Chambers Grove Municipal Utility
District No. 1, a political subdivision of the State of Texas ("Customer").
RECITALS
The following recitals are: (1) true and correct; (2) incorporated as part of this
Contract for all purposes; (3) evidence the intent of the Parties in entering into this
Contract; and (4) to be used in interpreting this Contract.
WHEREAS, Customer is a municipal utility district created pursuant to the provisions of
Article XVI, Section 59 of the Texas Constitution and operating under the provisions of
Chapters 49 and 54 of the Texas Water Code, as amended;
WHEREAS, Customer was created to provide, among other services, Wastewater service
to certain property in Collin County, Texas known as Chambers Grove (the
"Development"), which Development covers the 257.374 acres of land described in Exhibit
"A", attached hereto and made a part hereof (the "Property");
WHEREAS, in order to provide Wastewater treatment to serve the Development,
Customer will need a source of wholesale Wastewater treatment capacity; and
WHEREAS, subject to securing a TCEQ Texas Pollutant Discharge Elimination Perrmit,
and once the construction of the Anna System is completed, Anna shall have the capability
to provide wholesale Wastewater treatment capacity adequate to serve full development of
the Property.
NOW, THEREFORE, Anna and Customer, in consideration of the terms, covenants and
conons herein contained, hereby agree as follows.
AGREEMENT
Article 1. Definitions
When used in this Contract, the following terms, when capitalized, shall be defined as
follows.
1.01 "Act" or "the Act" -the Federal Water Pollution Control Act, also known as the
Clean Water Act ("CWA"), as amended (33 U.S.C. 1251, et seq.).
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1.02 "Amenity Center" — any open space, clubhouse and swimming pool owned and
operated by a homeowner association created to serve the Property.
1.03 "Anna System" or "Anna's System" -Anna's Wastewater Treatement Plant as said
plant may expanded or connected to other systems over time.
1.04 "Approved Connection Point(s)" -the points of entry identified in Exhibit "B"
through which Customer is authorized to discharge Wastewater into the Anna System.
1.05 "Basin Map" -the map attached hereto as Exhibit "B", identifying the service area
under this Contract and the Approved Connection Points. Such service area shall
automatically be amended to include any land annexed into the boundaries of Customer in
accordance with the laws of the State of Texas.
1.06 "Calibration" - verification of primary measuring device and secondary
instrumentation accuracy utilizing then -current standard primary device calibration
procedures and signals recognized as acceptable within the industry or a separate flow
measurement instrument.
1.07 "Customer Annual Amount of Flow" — an annual average amount of Flow not to
exceed 350,000 gallons per day. This amount of flow shall automatically be increased
pro-rata in the amount of any additional acreage annexed into Customer's boundaries in
accordance with the laws of the State of Texas.
1.08 "Customer System" or "Customer's System" -the Customer's facilities used for
collection or transportation of Wastewater to an Approved Connection Point(s), including
without limitation the Delivery Facilities.
1.09 "Delivery Facilities" or "Delivery Facility"facilities necessary for the
transmission of Wastewater to the Anna System that are on the Customer's side of the
Approved Connection Point(s).
1.10 "Director" -the designee appointed or authorized by the Anna City Manager to act
on Anna's behalf.
1.11 "Flow" —the collective total of all Wastewater, Industrial Waste, Inflow,
Infiltration, Liquid Waste, Suspended Solids, and any other matter transmitted from
Customer's System through all Approved Connection Point(s), collectively.
1.12 "Industrial Waste" —non-domestic sewage that may include water -borne solids,
liquids or gaseous substances resulting from industrial, manufacturing or food processing
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operations, or from the development of a natural resource, or any mixture of these with
water or domestic sewage.
1.13 "Infiltration" - water that has migrated from the ground into the Wastewater system.
1.14 "Inflow" - water other than sewage that enters a Wastewater system (including
sewer service connections) from sources such as, but not limited to, roof leaders, cellar
drains, yard drains, area drains, drains from springs and swampy areas, manhole covers,
cross connections between storm sewers and sanitary catch basins, cooling towers, storm
waters, surface runoff, street wash waters or drainage. Inflow does not include, and is
distinguished from, Infiltration.
1.15 "Liquid Waste" -the water -borne solids, liquids, and gaseous substances typically
stored temporarily in a container and derived from sources including, but not limited to,
grease traps, septic tanks, chemical toilet waste, and sand trap waste.
1.16 "Metering and Sampling Facility" or "Metering and Sampling Facilities" -the
meter, meter vault, and all metering and telemetry equipment needed to measure or sample
the Flow from the Customer's System at the Approved Connection Point(s)or other such
locations as the Parties mutually agree upon in writing.
1.17 "Party" or "Parties" -Anna and Customer may also be referred to in the singular as
"Party" and in the plural as "Parties."
1.18 "Prohibited Discharge" —any discharge prohibited by 40 C.F.R. 403.5.
1.19 "Publicly Owned Treatment Works" ("POTW") — a treatment works as defined by
Section 212 of the Act (33 U.S.C. 1292) owned or operated by a governmental entity
including Customer's System and Anna's System.
1.20 "Suspended Solids" —the total suspended matter that floats on the surface of, or is
suspended in, water, Wastewater, or other liquid, and which is removable by laboratory
filtering.
1.21 "System Cost" -operating expenses and capital -related costs incurred by Anna
pursuant to the provision of Wastewater collection and treatment service to the wholesale
class of sewer customers including, without limitation, all costs identified whether
specifically or by implication as System Costs under this Contract. Such costs are to be
collected by Anna as a component of the annual cost of providing wholesale Wastewater
service.
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1.22 "TCEQ" — the Texas Commission on Environmental Quality or its successor
agency(ies).
1.23 "Wastewater" — water containing other liquid and water -carried wastes and sewage
exclusively from residential dwellings and an Amenity Center whether treated or untreated,
which are contributed to a Publicly Owned Treatment Works.
1.24 "Wastewater Treatment Plant" —the collection and treatment system that is the
subject of TCEQ proposed Texas Pollutant Discharge Elimination System Permit No.
WQ0016043001 (EPA I.D. No. TX0141721) located (or to be constructed and located)
approximately 1.56 miles west of the intersection of the Collin County Outer Loop and
U.S. 75, in Collin County, Texas 75409.
Article 2. Construction and Connection to the Anna System
2.01 As of the Effective Date Anna has applied to the TCEQ for a Texas Pollutant
Discharge Elimination System Permit (the "Discharge Permit") to utilize the Wastewater
Treatment Plant to discharge treated wastewater at a volume not to exceed an annual
average flow of 16,000,000 gallons per day ("GPD"). Notwithstanding any provision of
this Contract, if the TCEQ does not grant the Discharge Permit on or before January 1,
2023, then Customer may proceed to terminate this Contract in accordance with the
procedures and requirements of Article 17. If the Discharge Permit is timely granted, then
Anna shall construct the Wastewater Treatment Plant in accordance with the Discharge
Permit (i.e. the first phase of the Wastewater Treatment Plant shall be capable of providing
no less than 2,000,000 GPD of Wastewater Treatment Service).
Anna shall commence construction of the Wastewater Treatment Plant on or before
180 calendar days after the Discharge Permit is timely granted by the TCEQ. Anna shall
complete construction of the Wastewater Treatment Plant on or before 545 calendar days
after the Discharge Permit is timely granted by the TCEQ. Notwithstanding any provision
A this Contract, if Anna fails to timely commence construction of the Wastewater
Treatment Plant, then Customer may proceed to terminate this Contract in accordance with
the procedures and requirements of Article 17.
Notwithstanding any provision of this Contract, if Anna fails to timely complete
construction of the Wastewater Treatment Plant, then Customer may proceed to terminate
this Contract in accordance with the procedures and requirements of Article 17. The term
"commence construction" as used in this paragraph means to commence the work of
constructing any part of the Wastewater Treatment Plant or the site of said plant: (i) with
all approvals thereof required by Anna obtained as necessary; (ii) after a notice to proceed
has been issued to Anna's contractor(s); and (iii) onsite construction of the site
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development components (such as drainage, grading or utilities) is underway. The term
"complete construction" as used in this paragraph means to have constructed the
Wastewater Treatment Plant and all of its components to the extent necessary to allow for
the Customer Annual Amount of Flow from Customer's System into the Approved
Connection Point(s).
In the event Anna obtains the Discharge Permit but fails to complete construction
of the first phase of the Wastewater Treatment Plant within 545 calendar days thereafter
and Customer does not terminate this Agreement, then Anna agrees to allow Customer to
provide retail Wastewater service to customers within its service area and Anna will
provide Wastewater treatment services by pumping such Wastewater from Customer's
System and hauling it elsewhwere for treatment.
2.02 Anna hereby grants to Customer, conditioned upon compliance with the terms and
conditions contained herein, permission to connect Customer's System to the Anna System
for the term of this Contract and provided that Customer is not in breach of any material
provision of this Contract.
2.03 Anna agrees to accept all conforming and lawfully acceptable Wastewater delivered
by Customer in accordance with this Contract to all Approved Connection Point(s),
collectively, and at such additional points as the Parties may mutually agree upon, in
writing, at a later time. Customer agrees to deliver all of its Wastewater flows from the area
depicted in the Basin Map, attached as Exhibit "B", to Anna unless otherwise approved in
writing by Anna. Customer acknowledges the need to this limited exclusivity in order the
reduce the number of small -volume "package plants" and so that Anna may adequately
plan capacity needs for Anna, Customer, and other customers or users of the Anna System.
Customer further acknowledges that this limited exclusivity does not create or evidence
monopolistic power on the part of or by Anna.
2.04 The cost of all Delivery Facilities necessary to convey Wastewater to the designated
Approved Connection Points, whether shown on Exhibit "B" or mutually agreed upon at a
later date by the Parties, together with the cost of connection of the Customer System to
the Anna System, shall be borne solely by Customer, including the cost of acquisition of
any necessary rights -of -way and easements to and from such Delivery Facilities; provided,
however, Anna does hereby consent (subject to feasibility as determined by the Director)
to Customer installing any portion of Customer's System in right-of-way or wastewater
system easements granted to Anna. Customer shall provide Anna with sixty (60) calendar
days written notice before installing any portion of the Customer System in a right-of-way
or wastewater system easement granted to Anna, and shall coordinate all work with the
Director and all appropriate Anna departments.
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In the event Anna requests Customer to increase the size of any such Delivery
Facility in order to serve areas outside of the Property, the difference in the cost of the
Delivery Facilities attributable to the size increase shall be at Anna's expense. If Anna
requests Customer to increase size of any portion of the Delivery System, Anna shall
reimburse Customer for such additional cost (engineering and construction) immediately
upon completion of such facilities.
2.05 Unless mutually agreed to, in writing, by Anna and Customer, Customer shall be
responsible for the design, construction, and financing of Customer's System and the
Delivery Facilities including the cost of and acquisition of any necessary rights -of -way and
easements to and from such facilities. All designs, materials, and specifications shall, at a
minimum, conform to the City of Anna's and state law and regulatory requirements in all
material respects. Plans and specifications for any Delivery Facility connecting to the Anna
System shall be submitted to the Director for written approval in advance of construction
of same, which approval shall not be unreasonably conditioned, delayed or withheld.
Without limiting the foregoing, no construction of any portion of Customer's System that
may be located on Anna's property may begin until the Director has approved the plans
and specifications for the work. Customer agrees that Anna, at its sole cost, has the right to
make periodic inspections during the construction phase of the Delivery Facilities. Final
acceptance of each facility is subject to the inspection by and written approval of the
Director.
2.06 Customer agrees not to provide service to any user or users that, singly or in
combination, would discharge more than the Customer Annual Amount of Flow into the
Anna System or that would cause Customers daily flow to Anna to exceed the Customer
Annual Amount of Flow (monthly average) without first providing written notice to Anna.
Article 3. Maintenance of Customer System
3.01 Customer agrees to maintain Customer's System in good and working condition and
to make all necessary repairstimely manner. Anna shall not have any responsibility or
liability for the operation of the Customer's System, it being Customer's sole responsibility
to provide adequate facilities to deliver its Wastewater to the Anna System. Customer shall
also promptly comply with any permit requirements, environmental regulations, and any
other laws or regulations, whether state or federal, applying to Customer's System.
Article 4. Metering and Sampling Facilities
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4.01 Unless otherwise agreed to in writing, Anna shall have the option to construct one
(1) Customer Metering and Sampling Facilities at each Approved Connection Point, not in
existence as of the Effective Date. Upon exercising this option, Anna shall inform
Customer, and Customer shall acquire a site reasonably acceptable to Anna. All reasonable
construction costs incurred by Anna, including, but not limited to, site preparation, design
and engineering, construction, and equipment for such facilities, together with the costs of
necessary easements and rights of way, shall be fully reimbursed to Anna by Customer.
Any costs incurred by Anna associated with any necessary modifications of a Metering and
Sampling Facility to accommodate a complete initial installation satisfactory to Anna shall
also be fully reimbursed to Anna by Customer.
4.02 On the Effective Date, or, if the Metering and Sampling Facilities have not been
constructed as of the Effective Date, on such later date as the construction and installation
of the Metering and Sampling Facilities are complete, Customer shall transfer ownership
of all Customer Metering and Sampling Facilities to Anna at no cost.
4.03 If additional Approved Connection Points are agreed to be added to deliver
Customer's Wastewater to the Anna System and Anna declines to exercise its option to
construct additional Metering and Sampling Facilities for same, Customer shall construct
Metering and Sampling Facilities for each such Approved Connection Point,
4.04 The Metering and Sampling Facilities shall be designed and engineered in a manner
reasonably satisfactory to Anna. Customer shall transfer ownership of such newly
constructed facilities at no cost to Anna.
4.05 Customer shall provide Anna with all necessary access easements and rights of way
in a form reasonably satisfactory to Anna. Customer shall provide Anna a perpetual route
of ingress and egress to Metering and Sampling Facilities, which shall be accessible by
Anna at all times without notice.
4.06 Anna, at its sole cost, shall have the right to inspect and approve the Metering and
Sampling Facilities prior to accepting the transfer. Anna's approval and acceptance of the
Metering and Sampling Facilities shall not be unreasonably conditioned, delayed or
withheld. In the event Anna rejects the transfer, it shall provide Customer a written notice
of the deficiency Customer must correct before proceeding with the transfer of the
Metering and Sampling Facility in question.
4.07 Upon accepting the transfer of a Metering and Sampling Facility, Anna shall have
the sole authority and exclusive right and license to enter, use, operate, and maintain the
Metering and Sampling Facilities. Anna shall thenceforth be solely responsible for the
operational and maintenance responsibilities and costs associated with said facilities. Anna
also shall have the discretion to construct improvements, expansions, and replacements to
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the Metering and Sampling Facilities as a System Cost and at the timing of Anna's needs,
provided, however, that Anna shall permit Customer to review proposed construction,
expansion, and replacement plans. Customer will grant and provide to Anna such permits
or easements as are necessary for the continuous operation and maintenance of all Metering
and Sampling Facilities. All such costs incurred by Anna for the operation, maintenance,
construction, expansion or replacement of Customer Metering and Sampling Facilities
shall be a System Cost.
4.08 Expenses incurred by Anna for the operation and maintenance of Customer
Metering and Sampling Facilities are System Costs and shall include, without limitation,
the following:
a. Cost of electricity at the facilities;
b. Cost of the installation and maintenance of a scada system at the facilities
and to the control center and all costs of maintaining connectivity, including access
or lease charges;
c. Cost of annual calibration and field measured velocity profiles;
d. Cost of parts, materials and supplies required for repairs, calibrations, and
upgrading of the facilities;
e. Labor cost plus fringe benefits and indirect costs for repairs, calibrations, and
upgrading of the facilities,
f. Maintenance costs of ingress and egress and meter facility site;
g. Administrative costs, including record and book keeping, overhead, and rate
setting costs; and
h. Any additional monitoring to ensure compliance with state and federal
regulations governing Wastewater treatment.
4.09 Replacement of facilities described in this Article 4 or equipment therein occasioned
as a result of obsolescence due to age, excessive maintenance, growth or other reasons as
determined by the Director shall be a System Cost. Any replacement facility or equipment
therein shall comply with Anna's standards and specifications.
4.10 Anna shall have the sole right to secure the Metering and Sampling Facilities in
order to prevent tampering or other interference with the facility. Anna shall have the sole
right to control access to the facilities.
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4.11 Customer may request permission, in writing, to inspect a particular Metering and
Sampling Facility once per month. Anna shall, upon receiving a written request from
Customer, coordinate with Customer to set an appointment during normal business hours
and within three (3) business days after receiving the written notice. At the appointed date
and time, Anna will accompany and allow Customer enter and inspect the Metering and
Sampling Facilities.
4.12 Customer may request that Anna test the accuracy of each meter once per quarter;
otherwise, Anna shall test each meter once per year. Any reading, Calibration or adjustment
to such metering equipment shall be done by employees or agents of Anna. Anna shall
notify Customer at least seventy-two (72) hours in advance of the date and time for any
testing, reading, calibration or adjustment, and Customer may have personnel present to
observe, if so desired, by sending Anna written notice of its intention to do so. Anna shall,
upon receiving a written notice from Customer, coordinate with Customer to set an
appointment during normal business hours and within ten (10) business days after receiving
the written notice. At the appointed time, Anna will allow Customer's personnel to enter
and observe Anna's employees or agents conduct the appropriate tests to measure the
accuracy of the meter. Anna shall have the right to conduct its own tests or Calibration
without notice and at any time it deems appropriate.
4.13 Customer must present any complaint or request for adjustment based on meter
accuracy in writing to Anna no later than forty-five (45) days after the test was completed
or any such complaint or request is waived. If Customer fails to test or request a test of a
meter during a given quarter, Customer waives any complaints, disputes, or claims
regarding meter accuracy for that quarter and all preceding quarters.
Article 5. Rights -of -Way
5.01 Customer shall grant, without charge to Anna, such easements, rights -of --way or
other necessary property rights along public streets, alleys or other property owned by
Customer, to the extent lawful and as reasonably necessary, to construct or maintain
facilities to provide Wastewater collection. Whenever it is deemed necessary by Anna to
remove, alter, change, adapt or conform any portion of Customer's System located on
property owned by Anna, such alterations shall be made by Customer at Customer's
expense within thirty (30) days from the issuance of written notice to Customer to make
the alterations unless a different schedule has been approved by Anna in writing. All work
done by or on behalf of a Party under this paragraph will be performed in accordance with
specifications equal to those applying to work of a similar nature performed by such Party,
but neither Party will be required to restore the other's property to a condition exceeding
its original condition, unless otherwise mutually agreed upon in writing. Anna and
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Customer agree to coordinate the location of the mains and facilities in the other's
easements and rights -of --way in order to prevent conflicts insofar as reasonably practicable.
Article 6. Metering and Sampling
6.01 All Flow discharged into the Anna System by Customer shall be metered.
6.02 Anna shall enter all readings of meters into data collection systems that Anna shall
maintain. Customer shall have access to such records during reasonable business hours and
shall be furnished with monthly totalizer readings for each Approved Connection Point
Metering and Sampling Facility.
6.03 Anna shall calibrate and service the meters once during each twelve (12) month
period. Copies of the results of such Calibration and all related information will be provided
to Customer on request.
6.04 Subject to the provisions of Section 4.13, after a Calibration is completed, if it is
determined that a meter is under -metering or over -metering Flow by more than 5%, the
registration of the Flow as determined by the meter shall be corrected for a period extending
back to the time such inaccuracy began, if such time is ascertainable; or, if such time is not
ascertainable, then for a period extending back one-half of the time elapsed since the date
of the last Calibration, but in no event further back than a period of twelve (12) months.
6.05 If any meter used to determine volume from Customer is out of service or out of
repair or otherwise incapable of providing any information that would allow the Parties to
ascertain or compute the amount of Flow, the Flow delivered through the period such meter
is out of service, out of repair or otherwise incapable of providing Flow information shall
be the average Flow of the last twelve (12) months plus three percent (3%), divided by
three -hundred and sixty-five, and the result multiplied by the number of days the meter is
out of service or out of repair.
6.07 If in the opinion of the Director, fiirther monitoring of the Wastewater is desirable
to ensure ongoing compliance with state and federal regulations, the Director may order
that additional monitoring be performed with or without prior notice to Customer. All
information obtained as a result of such compliance monitoring shall be provided to the
Customer upon request. Anna will provide notice of such compliance monitoring to
Customer within a reasonable time after obtaining the results of testing.
6.08 All costs incurred by Anna under this Article are System Costs.
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Article 7. Rates, Charges, and Surcharges
7.01 Rates, Charges, and Surcharges are yet to be determined but once determined will
be uniformly applied to all similarly situated same -class wholesale customers that
discharge Wastewater into the Wastewater Treatment Plant under contract with the City.
Once the Rates, Charges and Surcharges for wholesale Wastewater service is finally
determined, this article and Exhibit "C" shall be amended to specify same. However, the
methodolgy used to determine such rates, charges and surcharges shall be consistent with
the current terms provided in Exhibit "C". Class of wholesale customers shall be based
solely on the type of Wastwater being discharged by such customer into the Anna System,
so that customers discharging similar types of wastewater shall be charged the same
volumetric rate.
7.02 Any challenge to a rate, surcharge or fee established by the Anna City Council must
be brought within ninety (90) days after Customer is provided noticed of such adoption by
Customer submitting a written objection in accordance with the applicable provisions of
Article 24 of this Contract. Anna shall provide Customer with written notice of each such
rate increase within thirty (30) calendar days after such rate increase.
7.03 Bills for Wastewater service are submitted to Customer on a monthly basis.
Amounts billed are due and payable not more than forty-five (45) calendar days after the
date such bill is forwarded to Customer. Bills will show current charges, as well as past -
due charges, if any. Current charges includes the amount due for service provided since the
prior billing period. Past -due charges is the total amount unpaid from all prior billings as
of the current billing date. Payments received by Anna shall first be applied to the past -due
charges, if any, and thereafter to the current charges. Any challenge to a billing must be
submitted, in writing, to Anna within forty-five (45) calendar days of the billing date, or
any objection to the billing is waived.
7.04 If Customer disputes a bill, it shall nevertheless continue to promptly make the
disputed payment or payments. Dispute of a bill is not grounds for non-payment.
Notwithstanding the provisions of Chapter 2251 of the Texas Government Code, in the
event a payment is not paid as specified in this Contract, a finance charge of the lower of
10%, per annum, or the maximum rate allowed by law, per annum, will be calculated from
the date that the payment was required to be made. In the event the amount finally
determined to be due is less than the full amount of the disputed bill, then the amount found
to be in excess of the amount due will be credited to the Customer's account together with
any interest Anna assessed Customer on the credited amount of the disputed bill.
7.05 The Parties agree that this Contract is a contract for goods or services under the
provisions of Subchapter I, Chapter 271, Tex. Local Gov't. Code and that services obtained
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pursuant to this Contract are essential and necessary to the operation of Customer's
waterworks and Wastewater facilities. The Parties agree that all payments made by
Customer constitute reasonable and necessary operating expenses of Customer's
waterwvorlcs and Wastewater system. Customer and the City waive any immunity from suit
or liability relating to this Contract.
7.06 Customer agrees, throughout the term of this Contract, to continuously operate and
maintain its waterworks system, and to fix and collect such rates and charges for
Wastewater service as will produce revenues in an amount equal to at least (i) all of its
operation and maintenance expenses of such system, including specifically its payments
under this Contract; and (ii) all other amounts as required by law and the provisions of the
its revenue bonds or other debt obligations now or hereafter outstanding, including the
amounts required to pay all principal of and interest on such bonds and other obligations.
7.07 The Parties agree that the rates established in accordance with this Contract are
reasonable and in the public interest, and that any change in the Contract price is necessary
(1) to avoid impairing the ability of Anna to continue providing Wastewater service, (2) to
avoid casting an excessive burden on other customer or users of the Anna System, and (3)
to avoid being unduly discriminatory to or among customer classes. Customer
acknowledges that it has entered into this Contract willingly after determining, after
considering alternative sources and methods of providing for its Wastewater needs, that
entering into this Contract is in the best interests of Customer and its constituent users.
7.08 Customer represents and covenants that all payments made by it under this Contract
shall constitute reasonable and necessary operating expense of its Customer System and
that all such payments will be made from the revenues of its System. Customer represents
and has determined that the Wastewater service to be obtained from the System is
absolutely necessary and essential to the present and future operation of its Wastewater
system. Accordingly, all payments required by this Contract to be made by Customer shall
constitute reasonable and necessary operating expense of its respective system as described
herein, with the effect that the obligation to malice such payments from revenues of such
systems shall have priority over any obligation to malice any payments from such revenues
(whether of principal, interest, or otherwise) with respect to all bonds or other debt
obligations heretofore or hereafter issued by Customer.
7.09 Upon the occurrence of Customer's first failure to pay any amount billed for service
under this Contract, which amount remains unpaid for more than sixty (60) days after its
due date, Customer agrees to establish a security fund to be held in trust by Anna in the
amount of three (3) month's average billings, from which Anna may withdraw funds to
secure payment of the billing. Customer shall thereafter immediately replenish and restore
the account to the required amount and maintain the full balance required in the fund for
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the remainder of the term of the Contract, notwithstanding Anna's withdrawals to satisfy
billings remaining unpaid for more than sixty (60) days after the due date.
7.10 In the event that the security fund is not established, at the expiration of sixty (60)
days after such amounts are due, Customer shall be in default under this Contract, and
Anna may invoke the remedies specified herein or otherwise available by law.
7.11 The security fund described in Section 7.09 shall be deposited with the Anna City
Manager in cash, in the form of an unconditional, irrevocable standby letter of credit, a
performance/surety bond, or other instrument or security in a form acceptable to the Anna
City Attorney. The letter of credit, bond, or other instrument shall in no event require the
consent of Customer prior to the collection by Anna of any amounts covered by the letter
of credit, bond, or other instrument.
7.12 Customer acknowledges that it will accrue no equity or any other interest in the
Anna System or any other assets of Anna as a result of payment or other performance
pursuant to this Contract.
7.13 Except as specifically provided herein, no other fees shall be due and payable by
Customer to Anna for wastewater service. In particular, neither Customer nor any retail
customer located within the Property shall be required to pay to Anna any "impact" or
"capital recovery fee" related to wastewater conveyance or treatment capacity or service.
Article 8. Class is exclusively Residential, Outside of City_
8.01 The Parties agree and understand that the Property shall be developed and used
solely for residential housing. Residential housing shall consist of single family homes,
townhomes, duplexes, quadraplexes, and any other form of single or multi -family housing,
either for rent or ownership by the residents, as well as any open -space or amenities
provided to such residents. There shall be no retail, commercial, industrial, institutional
or any other development or use of the Property or any part thereof.
Al
Customer agrees that Anna shall have the right to sample Wastewater at all
Approved Connection Points and such other locations as may be necessary to determine
the volume and quality of Wastewater entering the Anna System. Anna shall have sole
authority to determine whether sampling at a location other than an Approved Connection
Point is necessary. Customer agrees to disconnect from its system any of its users found to
be in violation of allowable discharges or who refuses access to facilities for the purpose
of sampling Wastewater being discharged into the Customer System or who is otherwise
suspected of malting a Prohibited Discharge or other unauthorized or illegal discharge.
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8.03 Following notice to Customer by Anna, Customer grants to Anna the right to enter
Customer's jurisdiction if Anna determines that questionable discharges or Prohibited
Discharges are entering the Anna System from the Customer System. Customer agrees to
assist Anna in locating and eliminating any Prohibited Discharge or otherwise illegal
discharge.
Article 9. Wastewater Quality
9.01 As a condition of receiving and continuing to receive Wastewater treatment services
under this Contract, Customer agrees that, prior to connecting to any Approved Connection
Point, it shall enact and enforce such ordinances, rules, orders or other lawful means of
enabling Customer to enforce within its jurisdiction regulations governing Industrial Waste
which are at least as stringent as the provisions of Chapter 12 of the Anna City Code of
Ordinances (regarding Wastewater) and any amendments thereto, and any applicable state
or federal regulations relating to discharged substances and Prohibited Discharge. The
operation of Customer's System shall in all respects comply with federal and state laws
applicable generally to Publicly Owned Treatment Works and with all terms and conditions
contained in any permit issued by a federal or state authority regarding Customer's System.
9.02 Section 12.04.004 and 12.04.005 of the Anna City Code of Ordinances are
incorporated into this Contract as if fully set forth herein. Anna shall endeavor to provide
Customer with a copy of any proposed amendments to those provisions at least sixty (60)
calendar days prior to the presentation of such amendments to the Anna City Council, if
reasonably possible, during which time Customer shall have an opportunity to review such
amendments and provide written comments to Anna. On or before the effective date of any
such amendments, Customer shall adopt appropriate conforming ordinances, rules, orders
or other lawful means of enabling Customer to enforce within its jurisdiction Articles VI
and VII of Chapter 22 of the Anna Code of Ordinances, as amended.
9.03 Customer agrees that the quality of the Wastewater discharged into the Customer
System shall be equal to or better than the quality standards established by the Anna City
Code of Ordinances, including amendments thereto, or any applicable state or federal law
or regulation or permit requirements applicable now or in the future to Anna's System,
whichever quality standards are more stringent. Customer shall indemnify, defend and hold
Anna harmless to the extent Customer's failure to ensure the quality of Wastewater
discharged into Customer's System falls below these quality standards or otherwise causes
the Anna System to be in noncompliance with any federal, state or local statutes, rules,
regulations or permit requirements. If Customer's System causes the Anna System to be in
noncompliance, Customer further agrees to assume responsibility for any repairs,
remediation, or other actions necessary to bring the Anna System back into compliance.
Customer agrees that, prior to connecting to the any Approved Connection Point, Customer
shall secure a general liability insurance policy acceptable to and approved, in writing, by
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Anna. This insurance policy must be in the amount of at least $5 million and shall cover
any costs necessary to bring Anna back into compliance, including payment of any fines,
penalties, surcharges or other fees imposed by any state or federal regulatory agency,
statute, law, or regulation, should Customer fail to maintain the requisite Wastewater
quality standards.
9.04 Customer shall take all necessary steps to mitigate any odors from Customer's
System not attributable to Anna, including but not limited to any odors emitted by air
release valves in Customer's System. Customer shall submit plans and specifications for
odor control to Anna for approval prior to constructing a Wastewater line. Customer shall
thereafter maintain the odor control as approved. Customer may seek Anna's approval to
modify the odor control mechanisms as better odor control options become available.
Article 10. Infiltration and Inflow
10.01 Customer agrees that it has an obligation to prevent Infiltration and Inflow into
Customer's System, and to prevent same from entering the Anna System. Customer further
agrees that all connections within its jurisdiction which ultimately enter into the Anna
System will be constructed in accordance with specifications and standards at least equal
to those of the North Central Texas Council of Governments Public Works Construction
Standards North Central Texas, Fifth Edition, technical specifications and construction
standards. Customer covenants and agrees to maintain strict supervision and maintenance
of its System to prevent connections through which surface drainage can enter Customer's
System, in order to prevent such drainage from ultimately being deposited into the Anna
System. Customer shall not make, nor shall it permit to be made, any connection which
will contribute storm water run-off from rainwater spouts, rainwater areas, streets, gutter
drains or other Inflow, Infiltration or other non -Wastewater source of Flow into Customer's
System.
10.02 Customer agrees that no discount, deduction, allowance or offset shall be provided
fI any Inflow or Infiltration into Customer's System, regardless of the source or cause of
such Inflow or Infiltration. Customer stipulates that the provisions of this Article may not
be waived for any cause, including but not limited to (a) the actions of any third Party that
cause or contribute to Inflow or Infiltration; (b) any unusual weather patterns, including
any significant changes in rainfall or temperatures; (c) any Acts of God, or (d) any force
majeure of any nature whatsoever that causes, contributes to, or otherwise allows
Infiltration or Inflow into the Customer's System.
10.03 Customer agrees that, for the purposes of metering, calculating and billing, all Flow,
of whatever kind and from whatever source, including any Infiltration, Inflow, Liquid
Waste, and Industrial Wastes, with or without any Suspended Solids, entering the Anna
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System from Customer's System shall be treated as Wastewater for which a charge will be
made to Customer. Customer agrees that all billing calculations will be based on the total
Flow without regard to whether the Flow consists wholly of Wastewater, or contains
Inflow, Infiltration, Liquid Waste, or Industrial Waste, with or without any Suspended
Solids.
Article 11. Sludge Disposal
11.01 Customer recognizes the importance of processing and disposing of sludge in a
timely and proper manner. Customer will cooperate with Anna in any environmentally
sound sludge processing and disposal program meeting federal and state standards within
the area served by Customer.
Article 12. Waste haulers
12.01 Customer shall not introduce nor cause, suffer or permit to be introduced, and shall
prohibit the introduction of, Liquid Waste into the Customer System by liquid waste
haulers, either directly or indirectly.
Article 13. Reports and Records
13.01 Customer shall provide to Arena the following data on a quarterly basis:
a. The actual number of Customer's accounts discharging directly or indirectly
into the Anna System or Customer System within its service area;
b. A classification of domestic and nondomestic accounts within Customer's
service area by number and percentage of accounts discharging directly or indirectly
into the Customer System; and,
c. Additional data which may assist Anna in developing methodology for cost -
of -service studies, planning studies for analyzing federal grants, and system access
fees; provided, however, that Anna shall not request data that will require Customer
to incur unreasonable expenses in providing such data or the production of
confidential information.
Article 14. Notices
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14.01 Any notice, communication, request, reply or advice herein provided or permitted
to be given, made or accepted by either Party to the other Party must be in writing and
mailed certified U.S. mail, return receipt requested to:
City of Anna: City of Anna
Attn: City Manager
200 N. Fifth Street
Anna, Texas 75040
With a copy to: Wolfe, Tidwell &McCoy, LLP
Attn: Clark McCoy
2591 Dallas Parkway, Suite 300
Frisco, Texas 75034
Customer: Chambers Grove Municipal Utility District No. 1
c/o CoatsjRose P.C.
Attn: Tim Green
14755 Preston Road, Suite 600
Dallas, Texas 75254
Each party shall provide written notification to the other of any change in address.
Article 15. Inspection and Audit of Records
15.01 Complete records and accounts shall be maintained by each Party for a minimum
period of five years or such longer period of time as may be required by applicable law.
Each Party shall at all times, upon notice, have the right at reasonable times to examine
and inspect records and accounts relating to this Contract during normal business hours;
and further, if required by any law, rule or regulation, make the records and accounts
available to federal and state auditors.
Article 16. Intentionally Deleted.
Article 17. Breach of Contract/Remedies
17.01 Any material breach of the duties or the obligations of this Contract, or failure to
faithfully keep and perform any of the terms, conditions and provisions hereof shall be
subject to the remedies provided herein, including but not limited to termination. The non.
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breaching Party shall provide the breaching Party ninety (90) calendar days written notice
A such breach. The written notice shall include a reasonable description of the breach. If
the Customer is the breaching Party, and fails or refuses to cure the breach, then Anna shall
have the right, with three (3) years advance written additional notice to Customer and
without any liability whatsoever on the part of Anna, to declare this Contract terminated at
the end of such three (3) year period. In the event of termination of this Contract, all rights,
powers, and privileges of Customer shall cease and terminate and Customer shall make no
claim of any kind whatsoever against Anna, its agents or representatives, by reason of such
termination or any act incident thereto. In the event Anna gives notice of termination, and
Customer subsequently cures the material breach, Anna may, in its sole discretion,
withdraw the termination notice. In any event, the non -breaching Party shall advise the
alleged breaching Party in writing immediately upon acceptance of the cure of any default.
The following shall, without limitation, be considered to be a material breach:
a. Customer's failure to adopt and enforce policies or standards necessary to
enforce any applicable Anna ordinances, or any applicable state or federal laws or
regulations;
b. Customer's failure to pay any bill, charge or fee as provided for in this
Contract;
herein;
c. Customer's malting any connection to the Anna System at any point except
as provided in Section 2.03;
d. Customer's failure to provide Anna ingress and egress for purposes of
sampling and operation and maintenance of any metering or any sampling facility;
e. Customer's failure to provide Anna rights -of --way as required herein;
£ Customer's failure to permit any sampling of Wastewater as provided for
i. Customer's failure to maintain the quality of discharge required by Article 9;
or
j. Customer's failure to comply with Article 19 of this Contract.
lt. Anna's failure to timely provide the necessary Wastewater service to serve
the Customer in a volume of Flow not to exceed the Customer Annual Amount of
Flow.
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17.02 Failure to provide notice of breach is not waiver - Anna. Anna's failure to provide
a notice of breach or acceptance of any benefits under this Contract for any period of time
after Customer's material breach, default or failure is not a waiver by Anna of any rights
relative to any subsequent material breach, default or failure.
17.03 Failure to provide notice of breach is not waiver -Customer. Customer's failure to
provide a notice of breach or acceptance of any benefits under this Contract for any period
of time after City's breach, default or failure is not a waiver by Customer of any rights
relative to any subsequent material breach, default or failure.
17.04 If a Party is in default under this Contract, then the non -defaulting Party shall,
whether or not the termination provisions of this Article 17 have been involved, be entitled
to all remedies available under applicable law including, but not limited to, specific
performance, injunctive relief, mandamus relief, and damages; and termination as provided
in Section 17.01.
17.05 Each Party hereto aclvnowledges that this Contract is for the providing of goods and
services and, pursuant to Section 271.151, Texas Local Government Code, each has waived
its immunity from suit solely for the purpose of the other Party enforcing the express terms,
conditions, and obligations of this Contract.
Article 18. Ownership and Liability
18.01 No provision of this Contract shall be construed to create any type of joint or equity
ownership of any property, any partnership or joint venture, nor shall same create any other
rights or liabilities. Customer payments (whether past, present, or future) will not be
construed as granting Customer partial ownership of, pre -paid capacity in, or equity in the
Anna System.
18.02 Liability for damages arising out of the transportation, delivery, reception,
treatment, and disposal of all Wastewater discharged into the Anna System shall remain
with the Customer, together with title and ownership thereto, until such Wastewater passes
through the Approved Connection Point(s), at which time title, ownership and liability for
such damage shall pass to Anna, save and except that title to any Prohibited Discharge and
any liability therefor shall not pass to Anna unless such Prohibited Discharge originated in
the Anna System. Any effluent produced by and discharged by Anna from any treatment
plants owned or operated by Anna shall be owned by Anna, regardless of originating source
of Wastewater.
18.03 Contracts made and entered into by either Customer or Anna for the construction,
reconstruction or repair of any Delivery Facility shall include the requirements that the
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independent contractor must provide adequate insurance protecting both the Customer and
Anna as insureds. Such contracts must also provide that the independent contractor
covenant to indemnify, hold harmless and defend both the Customer and Anna against any
and all suits or claims for damages of any nature arising out of the performance of such
contracts, and include any other provisions required by federal, state, or local laws or
regulations.
Article 19. Compliance with Permit Conditions
19.01 Customer acknowledges that Anna is the holder of discharge permits issued by the
United States and the State of Texas. Customer agrees that it will comply with all such
permit conditions in any way relating to the System and the discharge into the System.
Customer agrees that in the event a fine is assessed against Anna for any violation of
any permit condition, and the violation is the result of any act of omission or
commission by Customer, the amount of the fine will be assessed to Customer and
Customer shall pay to Anna the amount of such fine. If such fine is not attributable to a
specific customer, such fine shall be considered a System Cost and allocable to the
Customer in accordance with the provisions of this Contract.
Article 20. Term of Contract
20.01 This Contract shall continue in force and effect far• a period of forty-five (45) years
TOM the Effective Date hereof and shall be subsequently extended automatically for
additional ten-year terms until terminated by either Party in accordance with the terms
hereof. A Party wishing to terminate this Contract pursuant to this Article 20 must give the
other Party no less than three (3) years advance written notice of its intent to terminate at
the end of the current term.
This Contract is being entered into by Customer to accommondate the purchase of
the Property by or any affiliate thereof ("Stratford").
"Affiliate" shall mean an entity or person in which at least ninety percent (90%) of the
equity of which is directly or indirectly owned by Stratford or the owner of Stratford.. In
the event Stratford does not close on the purchase of the Property by June 30, 2023, then
Customer shall have the option for a period ending on December 31, 2023 to terminate this
Contract upon notice thereof to Anna and neither Party thereafter shall have any further
rights or obligations hereunder.
20.02 The provisions of this Article 20 shall not apply to a Party seeking to terminate this
Contract for cause as set forth in Article 17, or timely exercising the right to terminate set
forth in Section 24.04 of this Contract.
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Article 21. Force Maieure
21.01 No Party hereto shall be considered to be in default in the performance of any of the
obligations hereunder (other than obligations of either Party to pay costs and expenses) if
such failure of performance shall be due to circumstances beyond the reasonable control
of the Parties, including but not limited to, the failure of facilities, flood, earthquake,
tornado, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor
dispute and action or non -action by a failure to obtain the necessary authorizations and
approvals from any governmental agency or authority or the electorate, labor or material
shortage, sabotage, or restraint by a court order or public authority, which by the exercise
of due diligence and foresight the Party could not have reasonably been expected to avoid
and which by exercise of due diligence it shall be unable to overcome. Either Party rendered
unable to fulfill any obligation by reason of an uncontrollable force shall exercise due
diligence to enable fulfillment of its obligations under this Contract.
21.02 As noted in Article 10 of this Contract, this Force Majeure provision shall not be
applicable to any claims by Customer regarding Inflow or Infiltration.
21.03 In the event the proper operation of the Anna System, as a result of the above,
requires Anna to temporarily interrupt all or part of the services to Customer, Customer
shall not recover any damages from Anna arising fi•om or related to the temporary
interruption of services, including, but not limited to, any direct or consequential damages..
Article 22. Effective Date
22.01 This Contract, together with all terms and conditions and covenants, shall take firll
force and effect on the later of the dates this Contract is approved by Anna and signed by
the authorized representative of each Party.
Article 23 Miscellaneous
23.01 This Contract is subject to all applicable federal and state laws and any applicable
permit requirements, ordinances, or amendments adopted pursuant to Article 9, and all
applicable rules, orders, and regulations of any state or federal governmental authority
having or asserting jurisdiction, but nothing contained herein shall be construed as a waiver
of any right to question or contest any such law, ordinance, order, rule or regulation in any
forum having jurisdiction, or of any right to appeal any decision or ruling by same.
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23.02 Customer agrees to abide by any changes in this Contract made necessary by any
amendment or revision to state or federal regulations.
23.03 In each instance herein where reference is made to a federal or state regulation or
statute or to the Anna City Code of Ordinances, it is the intention of the Parties that, at any
given time, the then current federal or state regulation or statute or Anna ordinance shall
apply. If a publication or reference work referred to herein is discontinued or ceases to be
the generally accepted work in its field, or if conditions change, or new methods or
processes are implemented by Anna, new standards shall be adopted that are in compliance
with state and federal laws and any valid rules and regulations pursuant thereto.
23.04 Anna shall comply with all federal, state and local government requirements
necessary to obtain grants and assistance for system design, system construction and
studies. Customer agrees to assist Anna in compliance by setting adequate rates,
establishing proper user charges and complying with governmental requirements.
23.05 All exhibits to this Contract are incorporated herein by reference for all purposes
wherever reference is made to the same.
23.06 Section or article headings in this Contract are for convenience only and do not
purport to accurately or completely describe the contents of any section or article. Such
headings are not to be construed as a part of this Contract or any way defining, limiting or
amplifying the provisions hereof.
23.07 This Contract constitutes the sole and only agreement between Customer and Anna
and supersedes any prior understanding or oral or written agreements between Customer
and Anna with respect to the subject matter of this Contract.
23.08 This Contract shall inure only to the benefit of the Parties hereto and third persons
not privy hereto shall not, in any form or manner, be considered a thiI d party beneficiary
of this Contract. Each Party hereto shall be solely responsible for the fulfillment of its
customer's contracts or commitments, and Anna shall not be construed to be responsible
for Customer's contracts or commitments by virtue of this Contract or any provision
contained herein.
23.09 Customer shall neither assign any of the rights or obligations of this Contract nor
contract with individual or entity located outside Customer's boundaries to connect to
Customer's System without Anna's prior written approval.
23.10 Each Party shall provide the other Party with a copy of the minute action, order,
ordinance or resolution authorizing the execution of this Contract.
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Article 24. Step Dispute Resolution
24.01 Disputes other than Rate or Fee disputes. In accordance with the provisions of
Subchapter I, Chapter 271, Tex. Local Gov't. Code, the Parties agree that, prior to
instituting any lawsuit or other proceeding arising from a dispute under this Contract, the
Parties will first attempt to resolve the dispute by taking the following steps: (1) a written
notice substantially describing the nature of the dispute shall be delivered by the
dissatisfied Party to the other Party, which notice shall request a written response to be
delivered to the dissatisfied Party, which notice shall request a written response to be
delivered to the dissatisfied Party not less than five days after receipt of the notice of
dispute; (2) if the response does not reasonably resolve the dispute, in the opinion of the
dissatisfied Party, the dissatisfied Party shall give notice to that effect to the other Party
whereupon each Party shall appoint a person having authority over the activities of the
respective Parties who shall promptly meet, in person, in an effort to resolve the dispute,
and (3) if those persons cannot or do not resolve the dispute, then the Parties shall each
appoint a person from the highest tier of managerial responsibility within each respective
Party, who shall then promptly meet, in person, in an effort to resolve the dispute. Any suit
filed prior to performing these steps shall be abated pending completion of this step
process. This Section shall not apply to any disputes regarding rates or fees Anna charges
Customer.
24.02 Rate or Fee Disputes. Customer agrees that, as a condition precedent to instituting
any lawsuit or other proceeding arising from a rate or fee dispute (including any surcharges
Anna may assess) under this Contract, Customer shall first attempt to resolve the dispute
by taking the following steps:
a. Customer shall deliver a written notice substantially describing the nature of
and reasons for the dispute to Anna,
b. Anna shall respond to the dispute notification in writing within ten business
days after receipt of the notice of dispute;
c. if Customer does not believe Anna's response reasonably resolves the
dispute, Customer may, within ten business days after receipt of Anna's response,
request, in writing, that the Anna City Council consider the rate or fee dispute; and
d. Anna shall, within ten (10) business days of receipt of Customer's written
request that the Anna City Council consider the dispute, place the matter on the
Anna City Council agenda for either a regular or special meeting.
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24.03 Customer shall appear before and have one hour to present any evidence and
arguments it has regarding the rate or fee dispute to the Anna City Council. The Anna City
Council shall issue a written final decision regarding the rate or fee dispute within ten
business days after Customer's appearance and said decision shall be final subject to any
remedy Customer may have under applicable law.
24.04 Expenses. Customer shall have the right to challenge Anna's decision regarding
any rate or fee dispute before the PUC. If Customer initiates or participates in any
proceeding regarding the Wastewater rate and City's policies under this Contract and
advocate a position that is adverse to City, and City prevails, Customer shall reimburse
City for its reasonable expenses, including attorneys' fees in the proceeding, within thirty
(30) days after City's demand for payment. If Customer initiates or participates in any
proceeding regarding the Wastewater rate and City's policies under this Contract and
advocate a position that is adverse to City, and Customer prevails, Anna shall reimburse
Customer for its reasonable expenses, including attorneys' fees in the proceeding, within
thirty (30) days after Customers demand for payment.
Article 25. Exhibits
25.01 The following Exhibits are attached to and made a part of this Contract, and are
incorporated by reference for any and all purposes wherever reference is made to same:
Exhibit "A" —The legal description of the Property.
Exhibit "B" —The Basin Map, including the location of the initial Approved
Connection Points at the time this Contract is executed.
Exhibit "C" — An example of the methodology Anna shall use to calculate the cost
of service.
Executed on this � day of 2022
CITE OF
Proce
ity Manager
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Executed on this day of , 2022
CHAMBERS GROVE MUNICIPAL UTILITY DISTRICT NO. I
President, Board %J Directors
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THE PROPERTY
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BASIN MAP, INCLUDING APPROVED CONNECTION POINTS
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EXHIBIT C
THE GENERAL METHODOLOGY ANNA SHALL USE TO CALCULATE THE
COST OF SERVICE
This exhibit shall be amended in accordance with Section 7.01 of the Contract.
Wholesale Wastewater rates established hereunder will be determined based upon cost -of -
service analysis to be performed by or on behalf of Anna using the methodologies and
principals generally accepted within the industry and detailed further herein, as applicable,
and which are generally being utilized by Anna to set the rate for wholesale wastewater
service to customers located outside the corporate limits of the Anna. The cost of such
analysis is a System Cost.
The Parties agree that the methodologies and principals used to conduct acost-of-service
analysis shall be those generally accepted within the industry as promulgated by the Water
Environment Federation within the WEF Manual of Practice No. 27, Financing and
Charges for Wastewater Systems, as revised. Notwithstanding the forgoing, the Parties
agree the following methodologies and principals will apply until agreed otherwise in
writing:
a. The cost of service for the service class shall include allocated reasonable
and necessary operation and maintenance expenses based on the then -adopted and
approved budget for the Anna System, budgeted debt service including principal
and interest payments, capital outlay and budgeted funds necessary to comply with
Anna's established financial policies such as, but not limited to, operating cash
reserves, externally required or internally adopted debt coverage requirements,
repair and replacement reserves, and any other reserve requirements that may be
necessary to maintain the financial stability of the Anna's System.
b. To determine the allocation and distribution of costs to the service class, the
analysis shall consider at least the following factors: total volume, rate %J flow,
Wastewater quality, metering, and customer -related costs such as accounting,
billing, and monitoring.
c. Capital -related costs will consist of budgeted cash capital outlays as well as
budgeted debt service payments including principal and interest and debt service
coverage as may be required.
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