Loading...
Item 10EMEMORADUM February 3, 2004 To: Billy Campbell, City Manager From: Pedram Farahnak, P.E., Director of Public Works Subject: Authorize Mayor to execute a settlement agreement between the City of Southlake and AquaSource Utility, Inc. for operations and maintenance, sale of ground water supply and distribution system and transfer of Certificate of Convenience and Necessity (CCN) in the Lakewood Ridge and the Indian Creek Estates subdivisions. Action Requested: Authorize Mayor to execute a settlement agreement between the City of Southlake and AquaSource Utility, Inc. for operations and maintenance, sale of ground water supply and distribution systems and transfer of Certificate of Convenience and Necessity (CCN) in the Lakewood Ridge and the Indian Creek Estates subdivisions. Background Information: AquaSource Utilities, Inc. owns and operates two pump station systems at the Lakewood Ridge and the Indian Creek Estates subdivisions. These pump station systems consist of two (2) wells each, pressure tanks, electrical controllers, ground water storage and chemical feeding equipment. Due to the limited production capacity of the wells and growth, these wells have not been able to meet the customers demand. Because of ever growing number of complaints in both subdivisions, the City Council directed the staff to take the necessary action to assist the 45 Southlake residents residing in both subdivisions (27 homes in Lakewood Ridge and 18 in Indian Creek Estates). In January 2002, the Texas Commission on Environmental Quality (TCEQ) informed the City that AquaSource, Inc. lacked a Certificate of Necessity and Convenience to operate and serve customers in the Lakewood Ridge subdivision. In February, 2002 Southlake submitted application to TCEQ for certification in Lakewood Ridge, decertification of AquaSource, Inc. in Indian Creek Estates and the Northeast corner of T.W. King and Bob Jones Road. After an initial evidentiary hearing in August of 2002 and a final hearing in January of 2003 before an Administrative Law Judge in Denton, Texas, the case was ruled in all cases in favor of Southlake and the final approval was scheduled for September, 2003 before the TCEQ. Due to repeated water shortage, the residents of both subdivisions requested a hearing before the TCEQ in August, 2003 to consider emergency, supplemental water service from Southlake and the City of Fort Worth. The commission declined the request, but provided the necessary staff to encourage negotiations for transfer of service from AquaSource, Inc. to the City of Southlake. Southlake began a voluntary emergency delivery of water service to both subdivisions on August 26, 2003. The City of Southlake and AquaSource, Inc. have been negotiating a settlement agreement since August, 2003 for transfer of CCN, assets and maintenance and operations of systems. The major components of the agreement are as follows: • Southlake will become certificated in both subdivisions. • AquaSource, Inc. will operate and maintain both pump stations and well systems and deliver each annually 4,000,000 gallons of water to Southlake at a delivery point designated by Southlake over the next five (5) years. • After closing the transaction, Southlake will pay AquaSource, Inc. $60,000. Each year, after satisfactory delivery of water, Southlake will pay AquaSource, Inc. $25,000 over the next five (5) years. • Five (5) years after the initial purchase, AquaSource transfers all assets to Southlake. Financial Consideration: It is projected that this settlement agreement will have no overall financial impact on Southlake customers. $60,000 fund for the initial payment is available from FY 2003 -2004 water utility operating budget 147. Citizen Input/ Board Review: Overwhelming number of customers in both subdivisions support Southlake in this transaction. Legal Review: City Attorney has reviewed the settlement agreement. Alternative: Approve or disapprove the agreement. Supporting Documents: Agreement Vicinity Map of Subdivisions Staff Recommendation: Authorize Mayor to execute a settlement agreement between the City of Southlake and AquaSource Utility, Inc. for operations and maintenance, sale of ground water supply and distributions systems and transfer of Certificate of Convenience and Necessity (CCN) in the Lakewood Ridge and the Indian Creek Estates subdivisions. Staff Contact Pedram Farahnak, P.E., Director of Public Works, 481 -2308 CC: Sharen Elam, CPA, Finance Director AquaS©urce Issue Oo �yDG ty 1G Q o BOB JONES RD � G N N o� qq � Q d e G r !�cTri,y.mb.',NT AGREILMENT BE.TWEEW THY, CM (of SOUTHL46XF, TEXAS AND AQUA,%7(Jt; RCii', LMLM, INC. nis Satflernimt Agroumm (Lbr - AV=%=7 1B by md betwbm Lb-- Ody -of So4ktlaku, Tana. C mm. Aqu.&DwEe Milk, lnC CAQU&S*U=`), cnl%! m&wrBd b3 as "Flm� fbr the Ifurpnms mW c=dkrubm set Fwffi Me". 'rN.8 Agyment is effective CLbL- "Effy.miw 17 10 -on the We.1 daiie executed by the Pw-ti m oxoW ft pr"Worm im Articles III Lhmugh VI imlofivt shall W be e until Ibis Agrwoxmi i� MpRmW LM remm C, oaun i ss i um " E Qtmliry piumumt io Texas Wahff' 5.&-4. L5.248, KV=AI.S *11E1dFAS, Soujda-t J1 :p [K*n,e Fuk imunkipality aWundz:jL and cV-=1rj in jecardmme v6fth 1ha laws dMC 3= Of 11'"R9 " its, himne rule chaffer, md VoWER1 Aq=Samra i� a Tmas oxTmLion, authnrixed - 10 da business in br Raw of 1 044. UMERBAS, Aqmgcurw is premmdy prluyijlihg 10011 wow - utility service iD the LA-cwkKH.l Pjdgc Addj4irm wMi%iisim ("LaLnwocd ]Wvu wKj the 1"m Cmek rmmmm subavisi� c uook boft of %sivWme located within theviLy linetiLe Of 6ML114kc, m5d WIMUEAS, Suaodakt Mad wM Cc Tr.T.Q an appfiradoo so zummd its wintr Coitfwalff of Canyonienca and Nuve!zky CICCIV W. 11 (" 'SouffiUc AjppLkm6arLj to incluft urriwry OW incluAcs Lakei;m-od P.i *. and htdm (seek, and in dzce�rbf}- AquaSauroe from oulkinorem it is ouffiaaimA so szrve qmdeT its CL and WHEREAS, AgmSou I Hod Ya1Ch lk TCEQ iis prolut e+f lkse hulk e A011CO re Fwd Lbe Fo i n j La Lk S La w Uffi d A nimsd ve l [sari n,p VS GA.H' ), mid ,�1 I '�F•I.I ::° id�i€ar�r hesria� °an laa [�1 �, � ?F W t i> KBA S, Aq uaSmuzE fcled an app] K;kd w n w gmcM its UN (ihr - Aqu Guarm. Apphcal icv'y vhiWb appiwa&n viva IndLesiml by Suu&lgk* *4 M&I&WW Of l uOd R'* anal rr -rmTM b the °i°1•_ jo q")AH lay aropudr la°rarin ; mvJ W][E�fE , Suulf :.c, RM Aqua%a mold dusiry lu r -l 1k 65pule. bEtwem then mgardirkq the pmvi�idxi Of PCMI WILEf uiilieY Make ba Lakvt& xl RAi t kW 101n C-T k cd•er L-sues w•ilh Ust 'cAAhlike Application and 62 AqkRdSk,1u.rw, : llaliari; and. WHEREAS, Soul_hla}°,e mW .UuRSOWIG Mulimily dasLm is mi rr irift, Lhij r vm9nt igT6ng fm& llae mrms and DanfliLtiUM pug UWII �p Atkh j%qu2S wi ll M(hdrtW i t oppolidu I�u O�c t iu li thk e AVd3iLaVLm4 ;3 , will k Wr CC dOiM fanlitk3- rrurri AquaSutorm Wid Aq;*SouPce Ymill wiffibmw ihie AquxSmutc ApVlwalvorl, m dkscribed beceint NOW, THERMM im p ideratiam of the pnomi immal and .zm nnts maWned kTgjh, officT fib arui vaImble cumidrTa n, ULW +pj and alb OF - i5 hetqby &Ltkft "I in saelrlemEM iDf their diTwW cMmF, 4W ,qun_5 -+= h emby mn l &W ftrft a; Wows: .+aJII4TICLE I 11-k rkrm and 3hal^� } d MM belnw €mac lrurpa u 1.1- eamersd rrs l rnwrpllr shall rntm lh� aktomvlic mwfed LTdn by 9owlMake an f 4Lts. no Augwt 22,, 2003, mirrmbgr immim. %Ymrr udlt y st rvice wres iii the provided by Stake to LakcvpW Rid and Inds C rnclt_ 1 -2, 'A AWfeWW" shall nran .b ur 's apol w iOn f f an arraen&nenc to hL WM& CM 11 " is Lhe s ubjet-t cwFa crcmmled cam pnmvcdmg b re SGAIH (TCEQ DXket loo 3-N 124101. MAO r :i 1&. SKIM- 27SH). I.�. ",tq m%m&we UYillW, .nru-. " m 'A6+1&. ° shall ru qua Source ULLIRY. lw- a reiail pubs ie ufflity audm izad uD do bur in± n.1' *3Ak!, Rod IRs Rw and assigns_ I.& "f'i.HVt —mRr grCanwniras and .Arvc� & ®x,41" shall rnemr a Ceriifkale 4oi nWcaot acd Neceuitf issued Irt the T exas Camu i:i!kOd orb EtMaOMrn QuallitY, Cc its P 1.5, "UID" or '&xur$iaU" dWI Tncmr the City -of Imuud. in aefflon and Tananl Cciu &% Tom. 1.6 cranrou aer ° 4 " wffw "" am nm Ihc " pmwisim of water From the gwkutd %%MtET T eft W&W the xaler alarm fMALW K 0. `5 C11, Sir* in fisdimt (Creek amd 14c%x Ridgc tr, the Dishiklim Py Aem suMdM M LNG YAW XbC &ffW& in 1hea 9uWavl6 , hta not tn° examd Aq arc 's Fr®r' uctim and st o tMPdCjW Lm Ira VxurlhwaLtr ,; r s arrdh-I ttit w9w str7nTe fmiliiies. sarvirg these subdhisios. The yumtuTY Oi'c4=10 W 3jr41vidw wd Lbc Trim m - fw h lk'a"i Amll }.d ripnhJ. r,FlwinB Im nxi &A ■hall hr,. Nz 4m Mr1h in J4r&k iv aF1his -rr 1. 1.7 Ctrarr X rte' ° shall mnan I i C.d �7m nr.cr.yn p r r]r a ds A,qun, tr"f7em its Disb5bubnn 3y A ms m p j. -Pkk! in s mioll 3 °2. Sly aemt nWnr Farr 3K - I &MI6Jlp'F M I I cl sfnJrnwm azmmxm 3 a.reaac&irc day p lbac4er. Fie . sub C.-onlr-a d YM St zramn7encA� nn 1he wud-;vrsiry doe arlhe inru$l CMW Ycw- 1.8. "1G4ywibjdfiFna Sy sigm " X11 Clip -nf that in used 1D cki3vtu -nuwr bum It W9II1 dial * lay the ultiaalz a?un. . Ac lribLviaa "ygelm ifa buds lakEwu�A Ridpa; ant Eft4ja l C,rek slhaU iccLude all pipet tawnud by , gw1su ial lh rights - waay wd nn pri- aix pr+.vL.-riy from iodudiRS the €urtnra>er m�� up Gu 111C , fc-a oummindiml the Wall Sivas in exb subdia=Woh. 1,9, - FffvLPfa't Awe ' shall mcafn the dmc dW Agagwd is effective. wlfich shall W thn laws( dw eot=uW by tha: Pa rties 1.10. " !tufty d '° exr `ED" shall --numn Me. El.mllym F*rm►alrr of the Tvm Camnisakm bid Fie V64 0- WCMIAI QWJ . L_I I_ ".IS'ua «+ hfi�l0a11'11 " sttlslli MCW aargl CAOX DOt dh3Q 4a firult, of Imadlinn ni A P" mndd beyced the ru&wmb3v tarr�l -of lhFd part}r_ F- xmm plrs DF Fae Mujcurc alidudg, k�;w1 Am Da Iim l ad Ida, ads arCood; Fm; w>. - -cl'idable- a*:kJUU s POY fasilme -, drill ww or k:kp3il'115 trionj out or or att3ibruwlle lu - Lw (dmiarcd ipr nfndwJ ed); floods, tboamt, cwthy mL% ate r ll.pturral dwh; m x ; and imurruckm4 rW4 and other civil. disturbwKrsL 1.12. - hdk ' Ctveg t h•dh- Vsfaff" ax "fradfim Dcek" shall inl*l lw [Adim C 2suum subdMfpm ifs SwIdAc, l[knirm Ckxxniy. Texas. 7 r" -dimll reran I hL , r -key& n'r gg A-ddiitim suhdh-isiiaa in gsuffi3akti,1 N- 1 rbllMy, Texas. 1,14. "fi t}' ° ' ar 'e'm'ir z" %Mall mum a paMy of iha pank -A La r3'Iis Agm—mcu kkmCf r d it illy buoduomy paragaapb -of ihe Apwmra. Ia rc °WvLwDI I aiwenaltan 4 I.A.5, AfgrrJ mAm' shall maw SuuulhbA)s spok a im. fix an aumxi m iD its walaer caN m. 1 N01 Ow is the mkjm ai a he&b . bdom the Sterl Offixe a Admicisbwim Huwinge, SOAH Dxkct N a 5826 US; TC-EQ Dmlt l W. 40 ,14-[JCR. I.l.ix. –MEQ t daM mean dp I'tKm rAmmissioa an Emirmmumul. QiiF><Jlry, or as may tc viplina1r, its prrderassw, Lbrc Tcx;jN N ,, . : KtaalXDN Cr m&rL Comminrium 1..17_ "'Weil Sfft " shall memr IPrr are, r p l r h vui lbin Lite se curity fince surrU LtAin iL No , ntnd- & - olor wells., am age and pr€murrc Iw I.x_ a td a aquipmeed m d EmciEtiirt is kAlt LacwDod kjdp and Ind.i]n: Creel To ik mot ihid ray ef!'the lm= or pbmms drlisHl 4bDvc Ire QJF@L deffi ied alsrwhme- this Agr mnunL and a ocW.10 axis TmitwwD the Lb:: dcf,1nl11#w MBd in .Jkftkle 1 shall oonba Anjy Irrm rttl &-A hbove nr els t,em in . ftis AgFmnci t EMI We Ike u suearriryi ,rs puvidrd by Te rrdulolians_'ifacey ..:ilk r cw MAI I E7'71 E 1ET�T MF 7 `J fll!- [- 2.1 Within bm (10) calundat days of er the E.ifactive Dais, Saufli aku acid AgktFLS "I execute and file= C Q, -nilh Ga TC'EQ a Joini Mocio -rr la app me -- dlris Apreermam paytwo Lo Tanabe WrAcr Co& %mtio® 13.24:9 lhrlety TVA[[ ft all dlrsPLUM baleen the Pml+ties m7elknk ttre SamKUke AppikaLkm and the AgmL&urm Av ' n, wd Lo -apprcmi the 5mtldakl; Armliwitm after omG 4img This AumnurL; mW Q) wi(h d* $tali 4) fiioe of Admin&Lratiz-c I Icarinp a Jbinn Mucioft w dlmnlm wirh pre rudioe the AguaSaurm-• rVU -M1M- 2.2. Frans and ahty cht Effmlvc Dae of saris AgmcmLmL, (jWudir As mit irneyr, and experts) 51411 Owl OMSC, PW= dWIL -nM apped or adbnwLst occOO the ` nhbka A*ieatium, and staD not mist. any P:tWn Off entity i' aplrodl& ehmJlen inv, appmlina cy glherwirr mAmtimg Lba SuuLWalc Appli ion,. unlerz the TCLQ does awl appm—em Lhis AlZamo 4 pa Muant it T EKm Walrs C'crJe sarYiud 13.24f. 2.3. The A ;u n in Prlrb*le duO m nlimix in Fu]I limo acrd kd4ct amlil die TCT aMTcAw this Agreernea as prcrv bulb• ARTICLE 111 CON -MANCE 2E WATER DI - 1 lO:l+i: �YSIE�S 3.1_ �k laber ffim l (20) � arAw da} z Aer die TCEQ appmw IWs Agrcemmt Vzmw -d to Tm m T41mw Crrrxk � lion 73,24& S" Make sba19 pay to AquaScv w �w em..Q— t of Nixmy omx Dot ar3 ISWM.00} in m dor the Itwx hme of the waster utility Lht,wbwtiarn s }'ems aM h1l rail pmp" anwimed with sL vb CtlMilhulirm SrIemrs in k ak t!wfxd Ind Eui Crc*k, Mij ibutiom S dome shall bo Clrfs+G IS, ^aith m waunmliilt 'hy .4qua.^r. uass �,,%pttn 4r lr�lir,�" at dm r}�r r..ra w ikm 3.2 14Q IaLCr L Tu+0IY ( ) a3x3 afiL-c Lbt T4� ippMYM Lhis J Vemnmt, A gu0nu m sbaIl prate TAG S oWikk IL Bill of Sake e%idencing thL b-enSkt of em refFlup ed the IliAlribidien Sysmm arsd an asarnt jeW of the mumi" casernenu ur inba ml pwq&rt' imcwU Ko Sop ffilake. The I waitim anal prWy w kt trs wvmd we mare pardodady ad ' as fi�11,� 3.21 LjL'kewrwud Riggs watcr ]Y33Lrib�Aiol S}S s, ei 3tsc ribed in AL hanaaal A (> 32.20 kadia Cry w MsUibuiea SyALTn d€ iW in A rlacbrnmt Q bwauk 3.2.3_ ra4**+wu far ihe CAur ood RkIv waler aisbibuuu -n Syswm DFJ1 -- as eKnbed in. AlladuncislC 1&7umlgAD4DI I Q ■etYL mum aWrenmC 43 3'.1_ r1L9CmvnL!; fur Clan [ndiun ('r+: YLowr l )igA.hiarir.n ."ivm!fn facilities, as desm`W iD Aiw Hun LmL 7) F*--rs.w. 1 1 The pa3mcm and mnyeymces d= in sternum! 3.I � 3.2. # 6. and 41 hcresm ahall Ik irr pl-- r -micd lhmaigb a filIr company is T==4 Cbuntw. TcAm. 11eG ftnl dWI OXW D IIt4 W l L-C11Mj it 'Muhmily ram I r d i Lk nampa" andl &LE Lw c I araing� Cu 5W tOF 506 cksirp shall 1kr L•ymlly L -Idod bov= the PAr6n. 3A. AqinSwuve bag prolmly ailpp[W 10 wmxhla ke dhe vun - enL cusaximcr lisLs R- ccus kxrwn in LskvA -tx l l?idpc rarJ lndiian Uotk anrler 1hP rams ms L%f LFe : ummertl in pr!rN#le. There arse awe uuAamur da-pusils. 3.5. On &Ed after the dale thal AqufiSLvua4 inmsjkm owrt�Nhip of iL. ]Ympm w as DravW W s akm 3.2 DI this Acrnenmera, Suuthlaiktt sliall Ft u� .J-t rkS0xMiNc fnr 1he mM1•l , ;nm a.c w4 llpcndiom of the Ltisl nbuti= firma, and A.quaSuuffw Jlmdl Iio y rmpansi i far Ll' rrl.dnii a s it of aguipm�rrt sued fa iG0 L�aiaad aw Lbc '* 91 sites_ AFMCL'LE 1#, ()N%' %F' RSM I I' . MAIN I - P. - ANCE OF' W ELLS,kND,'.kICIL1l7FR 41. Afier :qu;rSource Leansrm ils pTgxTLy m p"idod lair wcwn 31 of ibis .A3 ( MCn W fb a perind of €tile (i) )+ears ffieraater, males aLbEn+ifsc 4qpvbd w by tk pNli* wA .k3 pto kma r.r m nchu-Aixe pmr iau sec inca 4..7, AquaSumw will ixmiknut ra mainiaim wErshiip &d M11H.+riraNlicy f0f mainwnance " opewkon ap all fadlibs Ivv9v] mi the Well Site incluOmn ilea naund arl4r u lr.. grit and puMlrs. and sill Fovidie a. {'cmiruim t Supply of Water ba tla Lnkr mcd lUdge grid Inhm, Mck DiMiWion S3slems. 00 1Ewima& tlrad five ) penrl k will c mYcy ilic f'aclillics MA N uipnml 162IV1 &7 as 14wwomawr rrom1 7 Ma nML Pr-O ffl llro w*II ;fits m Sauthlake as prveid3 fift this A; unlew such vwPmyance occurs ruli c r i3 PfO %4d*d b Ail; Agreenxmt 4.1.1. Aguas Fide a ta#al nr 4 minim � km of wab!ff an a Caewc9. yftr hirb fn eueh of the WeD 5 iLes Ids Itt mgxw ive Disbilru im Sy'0r=1 Tic WGII 'Sim aL Indian Crux& ahall bt Of p ueing mater s1 the nAC a MA I M than 3 1 gaDans per rain u4m 'Mc 44O SiLe x Lrkewncd :Ridgt 111A bC aPpAhIc of paa, ucmg ti rater ag 1hQ mic of E al less Lh= 25 FAILL . pLT IYiLi alt. PTcrsae Innks at eaeh Wdl, silo SwIl he a& da3v&wLvS WMt f"M 00 r2 u a Femue or not. kas i[w 0 pounds M square irrth Cp#i"'L if A C;jg�- yed ir} do so hry SauVi kr, ,q quSource m,ay, at its sa1a dii5mLk)n, � "Dare than 4 witw gw iLm a`usw pm, yeua rim, eats ufl]m wea aiic& x.1.2- The supplied MI he mmmmvd by exisiinp mukxt currcnth in use at tech ld4rell file, soh #i� ea]ihrac by .Squx In amor{anoewill" Amedran 1�°'aL -.-r 4' 1 As - WI [dim whin LFM (t% *3yS fFlw the slari Df iba Lnil xs3 C".aarYirwi Y ear and acarually thL-n alkT. III IhC eaaenL Llhe perreatzSc cf turd }' fm #wch nwLers is fa+.md Io k - L&AnL:A Ac lokfanm of Aiilhim twu ptaU -- it of Kgarnay when the cictcm arr, ualiki[uwxla iFwn ru ®b mules LhzU kn drwam 1Q a ly measured Ibex yaoLsrW y of vwpd r rAwpikd k1}• AgmSumtt fix pmccling twelve mruiha. irmcb w.lwu= Is frnnurd ID he in exC oCiwa pitrglrl ofw4mucy, tbm a AgmSuwtee CgwaeL w& meters shall be ad MIUd to rc& -Wt131 and amuralely and dit, r i�;trdinn ihor€of wwwlzrw11!x -dr --dq a shall be caaTTcad fi)r a pmriod -of six (6) mrii h -. S*uthlnl e, a&r pr rti °i iinp rer nod�g 10 algw&x =e, shall kt pLruldcd On ra h :rnmm al. a maiialhe n %)m lime La enmiru LLx -• &c. in P mTgff xtinekimg oTdEr. At Aq ua-Ru ullae s apfirin, Aquia.SoLume may i rL%W l as rya a -vplac.e mAnrratic meter Lnmirtk &VI14= -K ibe '9L'e1L SiLes RAJILPCX ua 4 r . no- °ai of the anc y of 1 dje tiafuc6 error all shall lair k i nrc&:nnaFAy %&ithheldL Suudrllike dip ll not nt iae Lmpum any rux4ulrurlienl9 cm a iher t1he inrWlnL vM at doW MIP]m2freffil of Lbe auLumativ rnej=f marl at J&L 4.1.3. Shat. -term irrlVa 0[Il' Di Pupply causlyJ by rtpad of Et*intenamoe acli. -.dl es;� Fmce Maje4ri� c%vaU, fir demand in eyms of AABaSvurce's �Inrdiuellam u slues mMuliy in i Ly 5JyrsLearn AS UIJ.'Laul S W ill 1110 AV ahaell na+t to coffui&Ttd a f IUM 1x3- Pmvi& s CccrlinLiclu 5upoy of Wat" to Me Dian - buGun 'Syucnw. r,.o Ifirig as Aqua.SaurxE� raaaka g a rt4wn AWc efinn to aim that L}ra e* 0 rr4 f4a i liLies at the 'Well Siam am espewc of qWMWDS RwREr]y and 4M L11t tapwldcs Amed in Sec Gan 4.1.,1_ 4,1.4 .%quaSanaze will r fW! W . , ' ° - , .Iurr a bremk.daym Lhax iv4oir:s icgording ony rid tbc caquipmum ur ru+ ii.-di. Lu iF u WmLJ �Umr -69hilrr 1 - P.)1W of Wiring aan!ase arsua. , lur:'- °.er hrL;Lk &aarn and %ill wti.ry Sauffikice d wh fail or lareakdxmu Wd will C-.np6!m the m3msaarw cautchera afAJOW M BWn os: is prMctxahlf.. 1 IlSA NDI l k x0virwl rp-- 9 4.2. As mw as pantk2ibk. ahu gttt + ilk TCEiQ atpprave€ Lhis Aw7AbMUK Aq,+ x dUdl fromsh ioirWtali«on of Lbe, L_W0 lon pTessw Lurk and Ltx 31,430 gIw, Wjun mr r at the Minn Crack ad'ell &R8 so aM — I1iG iink�; Kb ma 4irmzimd as spun as pasm�le. SwjNrilm :hall rirrL m� my pre -c�k U Ora 1110 l", n1laFinn Or surly marks- iii wiu.& bu a +>r ]irll'ilo -I W. my requi rrmrnts TeCa rA to a building tKTI -sir The exiszing 5 g0lom pressure twk ill b4 mftjv6td "f y AqumSaume as %mm as Lhe mew I .�?�H.l g .:1L" lwamare Umk is apamfixW. Snil lukt; shill 1105 uml" any permri req duenwa s vn LN, ronowal of lhr "I in6 pWn pressure Lank by Aq; . .due_ a wri,T] retaim ovmmuh]p or&W may rw1 m. a dhe 34JDW Sllw V=d MtW r five (5) ymn afier thm TCEQ arppr O N At mcnL, prm7drd thm Aq=Sawvr kmToOnUMS Idbc mrrwiwng pipe zd the lzidian Creek W01 $iw in a imllr+:r that p.1`ll enmmL- ffiie lead zm is DimAgdon Sygm rerna,in; rperetiomal. 4.3. CLMMIlCliving A the staL uf fie iaailial CZMUW Y (5) Canlrou Years frmro autsh drl1�G, Agkw &uric shall sell to Sauthlak.e, and SwAdakc d 11 PwrChnit Inv Aquasaur£e rw use by & taWkms of 1-akc%%md ELidpe and I Em Cm;:. 0*4"lwaret p (raced hey the row . 4 +? ground-Palty w lls w4 the a s wialed La nks and wn wymx- I tcd M dhe WeU Sui.sm ha LakevvtKA lUda Iftdian fte&. Souffilalm dnU pay 10 A"S*4X= OC mmulrrr DrTwenLy -five Th.0 L)kjl ( 5,(fflQd ) per Cantrarl Fear, ax dkmilbcd IvrCllrr. for live (b) iCanua_t Yew as LumpewWon f€rr il-c pu of 4 millica plums orwaft ondusod of wh WlffU giv m asa; air "I - mil. 4.3 ColiaW yal palpmdmis shill L-ti maile mmlhly in vIs. -em -n f r dmuExl doll ($2.. {'11 JXfj and 49ne k5MLlrrr a U!' thnX dkalfars (53.0M.90). 7he f'rr°rl pa Tn mi raT LbL- Can r& l Year s}urll Ivry Jr1 thirty (30) days eEtm Ilhe �w 0d 11rc C,)nmL V -rte mbwgmrA pa mccu ldMIMAdwl19 pmlerwry Amax] 10 dwIl be -due &kTry thirty (3D) &ys ffirrealti-r. I]-'(lr cxamoc� if the Comm Yt:m wimmmes 4rL Nbra 15, mKmLbly pa1xnmnis UlAr 11W �Lj will k dj� em At 15 &y ®f each subsequEm mx3nLh dufimg 1W Cumtm L Y uu, I 4-3.2. m aw start stir w& unitm Y-cLw afw " initial Canwact Year, SculJd�L e'r� inunffily prfmiffat ILb AqKaS� 1[tpli �ae adjumed as fcilknm3: 4.1.2.1. If, in L1 immediawly p Cow&W Year Aqua %urw hm faik-d to supply at Imi 4 mcilbun, gWlotts ol 1wimid"Wgr fmcn mab WEU Site is Lbe ragmaive Dhotrik6on, the Tick mmbjy lurpnEnt by S-cmNAe to AqLmSmuzu sTWI bo mDJW4 i an awxmM calculated by mLOLLplyimS each lOM gWkxnS of wIT W of dw k irp - .)r Onnftw YLmex xborffidl by Lbc urmvunL of Thrm DuRm ard T .hjrjmC4=($jJ1j. [FoTvxwnVIr-iE Aqm&ourqz su ppW 4,WU,UM jal[ow of wjUr tram do Indim Cre--k Well Or bid -only 3,500 p1lorm of 'alai from the ]akEmond Ridge Well Site in Or iodLi2LL Cj:mbtW YW of WE- APO=nvrt, dit rmd, manLbly pzr5munL w%m1d be 52,U0Q.09 - (33. 1 YX HO) - $4.15.0.] 4.3.2.1 I f A4%mdilvw7r; (101p re ppp.W. q. rqplirm"ic I.RirWy of Widw F= ciffim syi*m ruir aMy &Y JUft ak PdOT Carrhwt Yew, S . mem mm0fly paytmw waWd U rWuoM by "4a5 fpc ewh axii day for caa s•s5mi Souddake OW] pmA& nmkc La Aquagaume wiffiin ibirty (3 caJmld& dkw I Q IL 16, 1 O,:L:Kj I j 9 ad I I riTcn I d Vom mm I I I after iL &- h-umnu Llml 'qdaSOWU h &3 &kkd 10 PTM'ide a CaolinrXW S ppl3• 0r eaW. 43,2,E If. in any CDnn l 'year- Aj4 Lmue mp,pii;:s more ilm 4 millicin pollmr of water born eilficy WrIL Silo., Lbe 6W nlim1 pkvment by SairWake is Aqu&%.uri dbM tar, irwrvaq% - 1 by FM Sm ourA cakU rlcied by multiplying BKh 1,00 VAIlrvms - 4 millim pIIL ms by Sl Aft. [par example, it AtImSuur c nuppbol #,LH)Q.(H.HJ gm1kin; ft am Llreo lakewoed Ridg Fall Sit. tmd 4_ 011oilj f iom elm Indian C We I I She during dw preLeding CIumama Year. Ihk*I "R reott mandilp• Iraym,ent ti %v-ild be X00..00 * ¢SI:O X 1) 's "A 4_1a Dwirs LbPL d of iMs Aumnim', 5whlake "I en®ntain pxessue- activaLed imft=Dmmeas beir wem ilx wd[L:r uliliLy � ;yAamis wd the DIgHbu5on Systerms. The pnessure- mdi-t-uLed - 6uh%-s sh� be seL ra azyw nu, L! S usrLblAv w -Y..t7 into 1114 L3tVib+xi4tn S5 ^mss %%txn Ma pert im ieiLher s stem decIimr 10- a level less Lhin 1 rK akb pcT Sq UAM lrA. 4.5, All rsk of I:rr:•aak&wn, loss, or dmnaEj! La the egdp nmt md tadlilks Sbv Wd SLa rill p=kin 4y.n AqumSoLmue prior b, their canreYamrM la SuutHiAt_ 1h U wrvnt TrkrTWLw&."m, gih-t Sri rw in Ih:°s nnymprPmra rn Sauhlake, . quLSmz c sharp di its exptwt mpdr 69 Sam m SQM m is pr2ctKnl3lc, 2s prw idod herein. if the oast LD repair either W elL Sift silo nil exouA fbM � "lu; l #40,0 in Ok injr al CmabwL Year, thiM4wu thomand & lan M12:000) itl LbO aWMd CLH14TW Year, mat}' - tbnjE ln4 dln1lm. (224:0 in Lbe I drd Con[racL rear. aixlsX LBOLI&Md klL ISM3&%O=] 19 sen rx agymmm 12 (!&16, in Lhe fl)UMh WOnKc Year, and eight lhnlmnd dollars MAM Il!t dW FIN Csrntrz" Year, lhen AquaSujAw sWI, kc rcg4brd to makr %wh repairs. Agws * rmay d"M W make repairs iF the cos lu da xa Crime dMM WROW 4 but it dill nDt be raquirud 10 d4 tO: If the costs iL mpahr mcced tlFex mn"yti If AA"Source chansr_s m ca rnailve such rk'praim Ihat . lh,c ah4ieoiam of the pxdts dWI be, as sal rvAb in aaxtinn 4.7 rrf di is .kpm and the pay raffft:.;hall LhereaHcr be 4u.sted ae prL L•idW in maim 4:3 4 dhin A greeracnt- AqujSDLzw will noil y SOaWakt in •urAing sirir dcci&s to not rupairvr rcp[aoc cquirmcnt wWor facilities l at 4aAl:1 fi Wcll halt W4ii&,in L-wo (2) bmimss -3 of naakinR arh a dixl&�an. 4.66 Am rnl the f(we (3) yew period far thr• purefhiat of Ktre Wmandwader by Se"Jrlake. and Wan 7x*cilx by Aqua 't?urce ad any ol= vul ng, paw wW by Sog7lhlnke, Aq ua.kwc.e stall timrny lu Sauid i k * $1w Fid to A lhe faciliiier, kcuw al tln Wdl SIle suulurlsug, die Siuwidwalel vti0h, raU an b7kapa vxd In pravidc wol= la La kLw4mA Rifte xid Ondian Creek xJ any real p rprrty a ciatad wlllh� far ifre .4,1900 gplion ground rage Clt* Fd IridLw Creel. %dCxh Aq Lrgz wit] van1ia31� to own. P6"img conveyance of Liz pm -pumY dvxd cd AV k Aq- n urce shall prufgrd r rmmi -rte lht 34, 1^ VDm sWmW l=k at its own eapc _ Tht NcIiili I he errr w) AS IS, wiLb mo v r alit+ by A. twSourcf exprrtss w bnplied, as lu their cuMICi)& 4;7. if AquaSccmt hid dlfii}Cd III 10 m7#4 ow er±plane equipmEnL anther lilt'ililikS at Oldrw Wdl Sil&,, w pr�idad in ®'Aim 4� i d& . s ti -Jllmv rj+ 't R11 ran —V Ifs SouWalw dow dtk din the omwrdwaler wrils. unks, and - PLUWS WW 00 Kftilv wME, to the putbift lAsh6bufloin Syftm 2rd wry reA property amommiud am widh. Wit on i e 34.DO} plhm Umod tawvV tok [a Indi4 CT&ek shall be as prcnided in s?iadliod 46 abw-- The L1I mtkzncuL wdnmrrz=l L3 rariltlius shall bk ):4 A% IS, wiLb w - AwnLntimby Aq Sourw -. earpress OT implid_ ul 10 heir candidiDcL 4.&, E'trucar to ttm ng p pEm' to Sou makv m paow°tiW Imfi waticm 4.6 of diix A d, AqumSumw shall ah-mm fbr om err rrum quab rmJ L-n y i mltdh VM j Oonam1lan K b:- be tm11Wly agD!d upan by the Parim.-x Lu oont L rLn erm ironmenlal msmKdVM of thm, Well Sifim W, idtatllh AIM?,' pnemM or p M rrla r or Ili (: re u xesm umnmw my cbmiaBI subokff m oy v hnm.d suhslanct!s, Thr mud *buldm$ ilx eu;'i.mfLmrmW &mx*W' shall be burn.: ryllally by SnuLbIA -a am kq=Suurec, Aqmggouiror, ail its mm cm Lr Ahall WMK'°t and dispose UFall bEag1 01 sul LL$rrer� w�a'rte- mLlG idlBt ,ernical su a s if my, lcxaLed al Lhu WL�II Sipe, in w- cefdance w211L TC-E{Q ckartup and &spoml slandmrh ud rquiremenLs. . INW TQR141<,t,NDTF RMI.FIA I{IIN rPR Tf11S S Rl EMEN - l" s. I This Apx="i itW be Far a term be mi ng um Effcclume Date end rndms AW AgLu.';mmue comr)s iu 3t}UNEU IICIC lit prOpLIrLy as SpEr :1 9=60n 4,6 Of this ,q 1, (W unril %upowded by a aariMm agmemmL by All Of 1110 Wi&N in US f'4WL=Trai1. ARTICLE V1, 6,1 , In the e+reet arry Rare' is mKkTW unaMe, in whole ow in part„ by Forog Majem Ln carry w its oblIgWi m under Ns AFmmrm4 AIL f" — shall give craw al LbG pamIcul af sucb. Force KC*PRUe .iii ruling Lo Lhe albesr PUties ifj Kbon, 9 rWOCLirable after the e 9 the amm relied m Arty obikadon snider they Agremxml of ft VArty giving rLc6M inwrar as: at Ihgp`I4°lF'ie`mrig=uIc=i tkrx 14 i�; offeclad by sueli I Muj n, uOur d-w flip: ObligNiOM proMed by seco 4.7 or this ASgr---i, shell he mspmde during the vmliouYxt of we LI°mlity qn amlmd, 6ui ke o0 lonW Gem w d �;u& urAilky s- - I .m far as prmEtk L* rcmcbW wM A nmsmohle aiwich. All tfime P"jQ& s ifiod in ILlris Agrmmfmi fix the ptrljrYnor°rc of Obl gatinnsd -nr Lhe tojoymmu of HOM lhrn wre x fecwd hay Fxrrce M3. rum shalt bL cxlLndtvj by flips Kwmi of lirtye- the inaWiVr cau>na by lu h FOX,* Mwjeu.re acids. 6.7. No Fwt;r 3fudl tie isr ddifIlh If r :ac&n of The Party, the fma`lure Lo purfuvm b� ft Party, ac the delay in perfurmancc by Me Fftm lhsl awimld atherwim d,omAitulc LEw d6aOl w46 coed b Force K( jeure. ARTICLE VII ML- AELL.S -iEVus 71 1If. - a, 1hr dip 4w Tf H) �tfVrcr IhOL Aff.rrmmri the :s Fmment in P im:ipk StWI 1erminaie mid be cif ma Rxtlwr force or effca. Ot tb mhe Agm-amew in Maple and rhlg fttdivow, TIO trther ogre,enyents ®aw exist ur hm tNw ixdwW betw= %3ud fakr and Aqua.Souir•c CawKank%. the snFjw mutter of Lbh Agreemrrrrl. 7.2. '11i; A W Eh+all Ise binding are SuAhlakc mid ray un.%W'M any I he bintbp car and inLn lay L'rr kndR of tk Wxtess N and amsigrvi of E.he rmpettive Fwlia 10IWO .IL,-rttm.!nL 7.. 'Chia Arrevri nt is IN: rnfim,, ul -mum t.. the Pwrims haereia uiffi L KFr she suh;e l Fruder hereof. No mcdiCxatiuns ul" Ih 9 AUtcnxM AW1 bi� 0 my focce and effect uulr. ww—cro .ex by subsequ ml modification in wrier* 119XA by the F4WM 7.4. A.tl} w(a n rirrdi rrr permirned to be given unJLT this Age teal bg' am PaM to the uther Trull bs in wHilug aW the warrrt %h L be deermed ID bwm bey ssrrr W and rlwen if (k) IdMn&ll&Ml 19 malemerd W rwV 13 dC:jIwCrW ill p =scm ub the A&hem wt fhct$ below for the Pamy w M.hm ffie noLice is FiVen C7 Co) plawd In U 061pd 81fl1cs moil by Mtifiedmaill, pastap Fepaid and TehLn rec--,3pL.mquestce * dm- iii Ek Plan . rjo YLjwm lc mdlq4 is jisan at 1hr oddren.; sal foreh helorw_ 1kLkr stall be cLfuzfj ?e upm r im 7.#_] . Thm ml hma Aw &w6lak for all pwrzoa 1alt4*r 1161 N r 1,&-m mA far all motiom herein shall be: Atto: City M mmWw City ofSout ak 1.400 Main Street, Seize u il Tides " 7A.2. Thie alldnw fur AqwSomw ror all mepcom anda 4kiis AC=Dmt nna ror all mots-es herein &A be- .14ttrte RoberL 1 "� an AIWA v 4rmo 1_ 11iLyJ 115 14'21 Welk Cnmeb Par1c:%my, N Pinufgery lle, TrrKm 7 7.4.1 Tram lisle to time auy Rmmy may drsipat aw. 1hl=T addrm WICIiIA ih 'I:miled S es -roF al] pmpases [f this ApmemccA by 40 Cha [a htt Fhorlim m. L less tfw ten (I lFj calendar days a h ce aasitten imcdkm g.Csueh chaW d addrm in awmdoam vALb the pmvisaares ]Iereaf. 7.5. Tlll 1v4ioit mph bl j�s P1 Jncd i th:k Apseserne are for rmfenmm jmrrrrvr4 nnl;r mnr1 An rrnd mfFd7-:1 in anal " 11r jnj *_J jHV of iPtMff*ftWlnf" 1 L� k njwh-n12i1L .h. This Agmement is pcTonuabl® in Dwsum Cuwy, TcxaL Aby acilim f1 hw € f In wily 'hrcugk Lo enfmme my prnwision flf Lbis ,geemenL shall be bnju6b m a wuYl of {kwNii afl ir`iion aa w yn Dortnn f`asarty, Te xas_ Ili'_PL" FLIVM4011 Scnlviciii 4Pbff&AL L6 7.7. In tk €yen[ of a ddauh bvroumlu bv my fir, pin mhe, F' ly 5WI N cW161 to mA spl%wrm pm4bmwnm , i*wtwtiz rulicly or fey o6er m msyly 1# — AhkA it is Of may be arrtitkd al law Dr ira egdLy. 7.6. Wbenewer 1hr oanjExl Tequims Lhae Sen&r nd WE vxm-cs heryar shaD irr>:lude Lbv mmculir�:, fenrimne and r,_rmes~„ utd 6 rumrber of all wards sls I ircl Ilhk- simgWar and the 7rluml. Y,9 `INs ARwmLgu war " porEA md drafwd jrsiartllfy her le g-9 arsunsrN rclxe enlirtg rz: hvr buwurlaTzs arsd &wwnunrm as arc Lx Ina} kX[Xofi rude rj of COMWa ni 14 A"CIMle wd =7 mX the imknl sxf this tlnent.. 7.L1. This Agi4Sim2nL ma y Im - memi1ed in mlrMple wionalr. amy ,r w h iui kw dee=ned Lo he on offiginnl. 7.IZ The "es h =Io xTcLsaft ad xffinn 1h.31 they Five L}re zmhneiiy to eubume and bbd Ihle Party on %%bcft Id elf they 6p1t lxlow, of thisARreremrenl; or uuneerm.nL4 thu mbjm nssMu of Itds `.-mmy, Ila€ pmneiling Pyi y shall rec4wer frum the nun- prevailing ]'arty its remsaruNu and rn •Rzr)r atlssrmj - .% fees., cxpni wrimeo I and ail other reason. h & rsastz and expenses mrwred in resol wsno the suit_ 7'. R4. Th � i� indii'risahle rend can7ceable. 16M lai °1 rF34j] 114 wbL -rant wq rnzmcrt p WMnS THE AUREEMENT by LM Pumice k cmmiH d Im dupliWc Mamlv CITY OIF SoDUEHLAM, TEXAS Lvc : TIM AT' rd1gI AQUASO ►RCE, UTIIJTY, INC. EkIr By: Pri i ?;aw: 1-Alm; 162 w 1 1 Vdo* I S 9 MA Icrmrl lgrCSrvm 1 18