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HomeMy WebLinkAboutResolution - 2002-R0178 - Wholesale Wastewater Interlocal Contract - Reese Redevelopment Authority - 05_09_2002Resolution No. 2002-RO178 May 9, 2002 Item No. 35 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Wholesale Wastewater Interlocal Contract, providing for the development of adequate systems of sewage collection and disposal, the elimination of water pollution and the preservation of the water resources of the State of Texas, by and between the City of Lubbock and the Lubbock Reese Redevelopment Authority, a political subdivision of the State of Texas, and any associated documents. Said Interlocal Contract for wastewater treatment services by the City of Lubbock for Lubbock Reese Redevelopment Authority, and is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 9th day of May , 2002. ATTEST: -Q-0 Leec�'� : � Rebecca Garza., City Secretary APPROVED AS TO CONTENT: VTe llerbrook aging Director of Public Works APPROVED AS TO FO Richard K. Casner, Natural Resources Attorney RKC/ke/l/ccdocs/LRRA W ho l esal e W aterI nterl ocal. Res April 25, 2002 A , . L Resolution No. 2002—RO178 May 9, 2002 Item No. 35 WHOLESALE WASTEWATER INTERLOCAL CONTRACT STATE OF TEXAS § CITY OF LUBBOCK § This contract made and entered into this, the day of J,&t4LJAr-Y , 200;4,- by and between the City of Lubbock, Texas, a Texas home rule municipal corporation, hereinafter referred to as "Lubbock," and Lubbock Reese Redevelopment Authority, a political subdivision of the State of Texas, hereinafter referred to as "Customer." WHEREAS, the public health, welfare and safety of the residents of Lubbock and tenants and residents of Customer require the development of adequate systems of sewage collection and disposal, the elimination of water pollution and the preservation of the water resources of the State of Texas; and WHEREAS, Lubbock is required to comply with standards and treatment methods for wastewater as set forth in federal, state and local laws and regulations and permits; and WHEREAS, Lubbock and Customer have an interest in maintaining and restoring integrity of waters and the chemical, physical and biological integrity of waters and water resources and insuring the reduction of pollution in said waters and water resources, and planning the use, development, restoration, preservation and enhancement of said waters and water resources; and WHEREAS, Customer desires to enter into a contract for wastewater treatment service and Lubbock desires to provide wastewater treatment service to Customer; and WHEREAS, Chapter 791 of the Government Code, authorizes Lubbock and Customer to enter into this Contract; NOW, THEREFORE, Lubbock and Customer, in consideration of the terms, covenants and conditions herein contained, hereby agree as follows: 1. Definitions When used in this contract, these terms shall be defined as follows: 1.1 Act - The Clean Water Act, as amended. (33 U.S.C. 1251, et seq.) 1.2 Biochemical Oxygen Demand (BOD) - The quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedure, as specified in "Standard Methods" in five (5) days at twenty (20) degrees Centigrade expressed as milligrams per liter (mg/1). 1.3 Calibration - Verification of primary measuring device and secondary instrumentation accuracy utilizing standard primary device procedures and calibration signals and/or a separate flow measurement instrument. 1.4 Customer System - The facilities of Customer used for pretreatment, collection and transportation of wastewater to the point of entry. 1.5 Delivery facilities - All facilities necessary for the transmission of wastewater to the Lubbock System that are on the Customer's side of the point of entry that are constructed specifically to allow Lubbock to serve Customer. 1.6 Director - The Director of Water Utilities of the City of Lubbock. 2 1.7 Lubbock System - Lubbock's wastewater collection and treatment system, also defined as "publicly owned treatment works" as provided in Title 40 of the Code of Federal Regulations. 1.8 Industrial User — Any industry that discharges industrial processing wastewater, including sanitary wastewater into the City of Lubbock's sanitary sewer system. 1.9 Industrial wastes - All water -borne solids, liquids or gaseous substances resulting from any commercial, industrial, manufacturing or food processing operations, or from the development of any natural resource, or any mixture of these with water or domestic sewage. 1.10 Infiltration - Water that has migrated from the ground into the wastewater system. 1.11 Inflow - Water other than wastewater that enters a sewerage 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 water. 1.12 Liquid Waste - The water -borne solids, liquids, and gaseous substances derived from certain sources including, but not limited to, grease trap, septic tank, chemical toilet waste and sand trap waste. 1.13 Metering and sampling facility - The meter, meter vault, and all metering and telemetry equipment required to measure and/or sample wastewater flows of the Customer at the point of entry or other such locations, as may be mutually agreed upon in writing. 91 1.14 Non -metered area - Areas within the Customer's statutory boundaries that generate wastewater that do not drain into a part of the Customer System for which wastewater flow is measured by an approved metering and sampling facility. 1.15 Point of entry - The metering facility or, where no metering facility is utilized, the point of connection to the Lubbock System, unless otherwise mutually agreed upon in writing. 1.16 Pretreatment or treatment - The reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such pollutants into a Publicly Owned Treatment Works ("POTW"). The reduction or alteration can be obtained by physical, chemical or biological processes, or process changes by other means, except as prohibited by 40 CFR Section 403.6(d). Pretreatment or treatment shall also include, without limitation, such devices as grease, oil, or sand interceptors, and hydrocarbon removal units. 1.17 Pretreatment requirements — Any substantive or procedural requirement related to pretreatment, other than a national pretreatment standard, imposed on an industrial user. 1.18 Significant industrial user — (A) Any user which discharges industrial wastes directly or indirectly into the Customer System or Lubbock System that: (1) Is subject to National Pretreatment Standards or categorical pretreatment standards of the U.S. Environmental Protection Agency or Texas Natural Resource Conservation Commission, or the successors thereof; or 4 (2) Discharges an average of twenty-five thousand (25,000) gallons per day or more of process wastewater(excluding sanitary, non -contact cooling, and boiler blowdown wastewater); (3) Contributes a process wastestream which makes up five percent (5%) or more of the average dry weather hydraulic or organic capacity of the Lubbock System treatment plant; or (4) Has a reasonable potential, in the opinion of the Director, for adversely affecting the Lubbock System due to discharge of wastewater or for violating any pre-treatment standard or requirement. (B) Upon finding that an industrial user meeting the criteria in Section 1.16(A)(4) has no reasonable potential for adversely affecting the POTW's operation or for violating any pre-treatment standard or requirement, the Director may at any time on it's own initiative or in response to a petition received from a user, and in accordance with procedure in 40 CFR 403.8(f)(6), determine that such user should not be considered a significant industrial user. 1.19 Standard methods - The examination and analytical procedures set forth in the 18th edition of "Standard Methods for the Examination of Water and Wastewater," as prepared, approved and published jointly by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation. 1.20 System Access Fee - A capital contribution (impact fee, capital recovery fee, system development charge) which represents a proportional capital cost of the capacity of Lubbock 5 V facilities that provide utility services and benefits common to all customers, less depreciation, outstanding debt, and appropriate contributions paid to Lubbock, required to provide service for new connections, whether located within the jurisdictional limits of Lubbock or Customer. 1.21 Total Suspended Solids (TSS) or Suspended solids — The solids that either float on the surface of, or in suspension in, water, sewage or other liquids, and which are largely removable by laboratory filtrating. Quantitative determination of suspended solids shall be made in accordance with procedures set forth in "Standard Methods." 1.22 Wastewater - Liquid or water -carried waste products and sewage from whatever source, including without limitation, residential dwellings, commercial buildings, industrial and manufacturing facilities, and institutions, whether treated or untreated, which are discharged into or permitted to enter the Lubbock System. interchangeable. 2. Connection to the Lubbock POTW The terms wastewater and sewage are 2.1 Subject to the terms hereof, Lubbock hereby grants to Customer, upon compliance with the terms and conditions contained herein, permission to connect its System to the Lubbock System. 2.2 Lubbock agrees to accept all wastewater from Customer at the point of entry as designated on Exhibit'A', attached hereto and incorporated herein. 2.3 The cost of all delivery facilities necessary to convey wastewater to the designated point of entry, whether shown on Exhibit 'A' or mutually agreed upon at a later date, together with the cost of connection of the Customer System to the Lubbock System, including metering and sampling facilities, shall be borne by Customer. All such metering and delivery facilities C shall be approved by Lubbock. In the event Lubbock requires Customer to increase the size of any such delivery facility, the difference in the cost of the delivery facility of Customer previously approved by Lubbock and the cost of the delivery facility as requested by Lubbock shall be at Lubbock's expense and may be allocated as a system cost if so determined in future cost -of -service studies. 2.4 Customer shall be responsible for the design, construction of delivery facilities. All designs, materials and specifications shall conform to Lubbock's requirements. Plans and specifications for any delivery facility which actually connects to the Lubbock System shall be submitted to the Director for written approval. Such approval shall not be unreasonably withheld. No construction shall begin until such approval has been given. Customer agrees that Lubbock has the right to make periodic inspections during the construction phase of the delivery facilities and final acception of same is subject to written approval of the Director. Final acceptance of such facility from the point of connection up to and including the metering and sampling facility is subject to the inspection and written approval of the Director. 2.5 After the date of this contract, Customer agrees not to provide service to or contract or subcontract with any new customer whose need for wastewater service would exceed 25,000 gallons per day without written notice to the Director. 3. Maintenance of Customer System Customer agrees to maintain its system in good condition and to make repairs in a timely manner. Lubbock shall not have any responsibility or liability now or ever for the operation of the Customer's System. 7 4. Maintenance of Lubbock System 4.1 Lubbock agrees to maintain its system in good condition and to make repairs in a timely manner. Customer shall not have any responsibility or liability now or ever for the operation of the Lubbock System, except as otherwise provided herein. 5. Metering and Sampling Facilities 5.1 Customer shall be responsible for providing metering and sampling facilities at the point of entry in accordance with the Lubbock Code of Ordinances, Sec. 28-131, as may be amended from time to time. 6. Metering and Sampling 6.1 All flow discharged into the Lubbock System by Customer shall be metered, unless specifically agreed to by both parties in writing. Should both parties agree in writing that metering is not possible, the agreed upon method for determining the volume shall include an adjustment for infiltration and inflow. 6.2 All readings of the meter will be entered in ink upon bound journals maintained by Lubbock. Customer shall have access to such records during reasonable business hours and shall be furnished with monthly totalizer readings for the point of entry metering and sampling facility. 6.3 Lubbock shall calibrate and routinely service the meter not less than once during each six (6) month period. Copies of the results of such calibration and all related information shall be provided to Customer. Lubbock shall notify Customer at least seventy-two (72) hours in advance of the date and time for any calibration and Customer may observe, if so desired. 8 6.4 Upon any calibration, if it is determined that the accuracy envelope of such meter is found to be lower than ninety-five percent (95%) or higher than one hundred five percent (105%) expressed as a percentage of the full scale of the meter, the registration of the flow as determined by such defective 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 (1/2) of the time elapsed since the date of the last calibration, but in no event further back than a period of six (6) months. 6.5 If any meter used to determine volume from Customer is out of service or out of repair so that the amount of wastewater metered cannot be ascertained or computed from the reading thereof, the wastewater delivered through the period such meter is out of service or out of repair shall be estimated and agreed upon by the parties hereto upon the basis of the best data available. The basis for estimating such flow includes, but is not limited to, extrapolation of past patterns of flow for said metering station under similar conditions. 6.7 Lubbock may periodically determine the quality of the wastewater at the metering and sampling facilities or other agreed upon sampling points for the purposes of billing for the strength of the wastewater and relating to compliance with pre-treatment requirements. To determine the quality of the wastewater, in the event Lubbock desires to conduct sampling activities, Lubbock shall collect twenty-four (24) hour composite samples or other sampling methods as deemed necessary or advisable by Lubbock. If, at the request of Customer or at the request of the Director, more extensive monitoring is desired, such additional monitoring shall be paid for by the party making the request and shall be done in compliance with Section 7. 9 c Lubbock shall analyze the samples collected in accordance with standard methods. Customer may be present during the initial setup of sampling equipment and at the time of pickup for the sample. Lubbock agrees, if requested, to split said wastewater samples with Customer. 6.8 If in the opinion of the Director, compliance monitoring is required, the Director may order that additional monitoring be performed with or without prior notice to Customer. 6.9 Costs incurred by Lubbock under this section will be the expense of Lubbock. 7. Rates and Charges 7.1 Wastewater rates to be paid by Customer shall be that set forth in Section 28-86 of the Lubbock Code of Ordinances, as may be amended from time to time. 7.2 Bills for wastewater treatment and disposal service shall be rendered to ustomer monthly by Lubbock. All such bills shall be due and payable by the Customer not more than thirty (30) days from the billing date. The bill will show current charges, as well as past -due charges, if any. Current charges shall be the amount due for wastewater collection, treatment and disposal service provided since the prior billing period. Past -due charges shall be the total amount unpaid from all prior billings as of the current billing date. Payments received by Lubbock shall first be applied to the past -due charges, if any, and thereafter to the current charges. 7.3 In the event a payment is not paid as specified in this agreement, a late charge of ten percent (10%) per annum will be calculated from the date which the payment was required to be made. 10 7.4 The parties hereto agree that services obtained pursuant to this contract are essential and necessary to the operation of Customer's waterworks and wastewater facilities and that all payments made by each Customer hereunder shall constitute reasonable and necessary operating expenses of Customer's waterworks and wastewater systems. 8. Industrial Connection and monitoring 8.1 Customer agrees that it will not permit any significant industrial user within its jurisdiction to connect directly or indirectly either to its system or to the Lubbock System without at least thirty (30) days' prior written notification to the Director of such intent to connect. Customer shall provide the Director with such information pertaining to volume and composition of flow as may be requested by the Director. 8.2 Customer agrees to conduct any and all monitoring, sampling and inspection of Customer System and industrial users as necessary to insure that industrial waste introduced into the Customer System meets the quality standards set out in Section 9.2 hereof. Upon request to Customer, a representative of Lubbock will be permitted to observe Customer's collection of samples from industrial users, and Customer agrees to furnish Lubbock separate duplicate samples for independent testing, and, upon request, to provide the Director sample analysis results and pretreatment records. 8.3 Customer agrees that Lubbock shall have the right to sample wastewater at the point of entry and such other locations as may be needed for the purpose of determining the volume and quality of wastewater entering the Lubbock System. Customer agrees to disconnect from its system any industrial user found to be in violation of allowable discharges or who refuses access to its facilities for the purpose of sampling wastewater being discharged into the Customer II System; provided, however, that said disconnected industrial user shall be afforded the same rights, privileges of appeal and deficiency cure periods as are industrial users operating within Lubbock's jurisdiction. 8.4 Customer grants to Lubbock the right to enter Customer's jurisdiction if Lubbock determines that questionable discharges or prohibited discharges are entering the Lubbock System emanating from the Customer System. Customer agrees to assist Lubbock in locating and eliminating such prohibited discharges. 9. Wastewater Ouality 9.1 Customer agrees that on or before thirty (30) days from date of execution of this contract it shall enact and cause to be enforced rules, regulations or ordinances at least as stringent as (i) Division 3, Division 4 and Division 5 of Chapter 28 of the Lubbock Code of Ordinances, as may be amended from time to time; and (ii) applicable state and federal regulations relating to (a) discharged substances; (b) prohibited discharges; (c) pretreatment requirements; (d) industrial discharge permitting systems; and (e) industrial self -monitoring reports. 9.2 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 Division 3 of Chapter 28 of the Lubbock Code of Ordinances, as may be amended from time to time. 9.3 Customer shall require all significant industrial users within its jurisdiction that ultimately discharge into the Lubbock System to apply for and obtain a permit from Customer allowing such discharge. Such permit shall require industrial users to abate prohibited substances from their discharge as a condition to discharging wastewater into the Customer 12 System. The permit application shall be identical to that used by Lubbock for significant industrial users within its jurisdiction. Customer shall provide Lubbock a copy of such application and permit, if issued, within fourteen (14) days after issuance. 10. Infiltration and Inflow Customer agrees that it has an obligation to prevent infiltration and inflow into its System and then into the Lubbock System. Customer further agrees that all sewer connections within its jurisdiction which ultimately enter into the Lubbock System will be constructed in accordance with applicable specifications and standards at least equal to those of the Lubbock. Further, Customer covenants and agrees to maintain strict supervision and maintenance of its System to prevent connections through which surface drainage can enter ultimately into the Lubbock System. Customer shall not make, nor shall it permit to be made, any connection which will contribute storm water run-off of any kind, including without limitation, from rainwater spouts, rainwater areas, streets, gutter drain or other source, into its sanitary sewer system. 11. Wastehaulers Customer agrees to prohibit the introduction of liquid waste or wastewater from wastehaulers into the Customer System, directly or indirectly. 12. Assistance 12.1 In the event Customer requests assistance with its System, Lubbock may, at its option, assist Customer. Customer agrees to pay Lubbock its actual costs incurred, including, but not limited to, labor and material expended. Nothing herein shall be construed to require Lubbock to assist Customer. Such costs will be invoiced to Customer and payment made within ten (10) days after receipt of invoice. 13 i . F � � s 13. Payment and Finance Charge The parties hereto agree that the failure to make any payments within the times provided for herein results in additional cost to the parry to be paid; therefore, the parties agree that any payment required herein not made within thirty (30) days of the billing date shall be subject to a late charge of ten percent (10%) per annum to be calculated from the date which the payment was required to be made. 14. Reports and Records If requested by the Director, the Customer shall provide quarterly the following data: A. Actual number of customer accounts discharging directly or indirectly into the Lubbock System and/or Customer System within Customer's service area; B. Classification of industrial and nonindustrial accounts within its service area by number and percentage of accounts discharging directly or indirectly into the Lubbock System and/or Customer System within Customer's service area. C. Additional data which may assist Lubbock in developing methodology for cost of service studies, planning studies for analyzing federal grants, and system access fees. 15. Notices Any notice, communication, request, reply or advice herein provided or permitted to be given, made or accepted by either parry to the other parry must be in writing to: City of Lubbock: Director of Water Utilities City of Lubbock P O Box 2000 Lubbock, Texas 79457 14 Customer: Executive Director Lubbock Reese Redevelopment Authority P.O. Box 586 Reese AFB, Texas 79489 The parties hereto shall indicate in writing any change that may occur in such respective addresses from time to time. 16. Inspection and Audit Complete records and accounts required to be maintained by each party hereto shall be kept for a period required by law or five (5) years, whichever is greater. Each party shall at all times, upon notice, have the right at reasonable times to examine and inspect said records and accounts during normal business hours. Further, if required by any law, rule or regulation, make said records and accounts available to federal and/or state auditors. 17. Consent 17.1 Whenever, under the terms of this agreement, Lubbock is permitted to give its written consent or approval, Lubbock, in its discretion, may give or may refuse such written consent or approval and, if given, may restrict, limit or condition such consent or approval in any manner it shall deem advisable. 18 Waiver, Remedy, Severability 18 .1 No waiver by either party hereto of any term or condition of this agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 15 18.2 In addition to any other remedy as may be provided by law, this agreement shall be specifically enforceable by the parties hereto. Laws of the state of Texas shall govern the terms, performance and enforcement of this agreement. Exclusive venue for any action shall be in Lubbock County, Texas. 18.3 It is agreed that, in the event any term or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of such term or provision shall in no way affect any other term or provision contained herein. In such event, this agreement shall continue as if such invalid term or provision had not been contained herein. 19. Ownership and Liability 19.1 No provision of this agreement 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 and 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 Lubbock System. 19.2 Subject to the terms of this provision, liability for damages arising out of the transportation, delivery, reception, treatment, and/or disposal of all wastewater discharged into the Lubbock System shall remain in the Customer, together with, except as provided herein, title thereto, until such wastewater passes through the point of entry to the Lubbock System, at which time liability for such damage shall pass to Lubbock. Title to any prohibited discharge or contribution to the Lubbock System in contravention or violation of the terms of this agreement and any liability therefore shall not pass to Lubbock unless such prohibited discharge originated in the Lubbock System. Customer shall, to the extent permitted by law, save and hold Lubbock 16 i I , L harmless from any and all claims, demands, causes of action, damages, losses, costs, fines, penalties and expenses, of any kind or manner including attorney's fees, that may be asserted by anyone at any time on account of or related to the transportation, delivery, reception, treatment and/or disposal of wastewater from Customer or the Customer's System or other activity contemplated by this agreement. 19.3 Contracts made and entered into by Customer for the construction, reconstruction or repair of any delivery facility shall include the requirements that the independent contractor(s) must provide adequate insurance protecting both the Customer and Lubbock as insured. Such contract must also provide that the independent contractor(s) covenant to indemnify, hold harmless and defend both the Customer and Lubbock against any and all suits or claims for damages of any nature arising out of the performance of such contract. 20. Compliance with Permit Conditions Customer acknowledges that Lubbock is the holder of discharge permits issued by the United States and/or the State of Texas and is subject to regulations and requirements related to the collection and treatment of wastewater (collectively the "Permit"). Customer agrees that it will comply with all Permit conditions in any way relating to the collection system and the discharge into the collection system. Customer shall save and hold Lubbock harmless against any penalty or fine assessed against Lubbock for any violation of any Permit, if such violation is attributable or related to an act of omission or commission by Customer. 21. Term of Contract The term of this contract shall be five (5) years from the date of its execution by Lubbock. 17 22. Force Maieure 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 an uncontrollable force beyond the 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 such 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 remove such inability with all reasonable dispatch. In the event the proper operation of the Lubbock System, as a result of the above, requires Lubbock to temporarily interrupt all or part of the services to Customer, no claims for damage shall be made by Customer against Lubbock. 23. Events of Default and Remedies Notwithstanding anything contained herein to the contrary, any material breach, as defined below, by Customer to perform any of the duties or the obligations assumed by Customer hereunder or to faithfully keep and perform any of the terms, conditions and provisions hereof shall be cause for termination of this agreement by Lubbock in the manner- set forth in this Section. 18 In addition to the remedy of termination, in the event of material breach of this agreement by Customer, Lubbock may also seek any other remedy available to it by law, equity, contract or otherwise. The remedies provided to Lubbock, in the event of a material breach of this agreement by Customer, shall be cumulative in nature and may be exercised concurrently by Lubbock. Lubbock shall deliver to Customer sixty (60) days written notice of the breach or default of Customer and its intention to terminate this agreement if Customer fails to cure or adjust such material breach, including in such notice a reasonable description of the breach. If within said sixty (60) days Customer shall fail or refuse to cure such default to the satisfaction of Lubbock, then and in such event, Lubbock shall have the right, without any liability whatsoever on the part of Lubbock, to immediately declare this agreement terminated and to exercise any and all other rights and remedies it may have, as set forth above. In the event of termination of this agreement, all rights, powers, and privileges of Customer hereunder shall cease and terminate and Customer shall make no claim of any kind whatsoever against Lubbock, its agents or representatives, by reason of such termination or any act incident thereto. Lubbock shall advise Customer in writing upon acceptance of the cure of any default. The following breach, default or failure to perform a duty or obligation by Customer shall be considered to be a material breach: a. Failure to adopt and enforce any rule required to be adopted and enforced herein; b. Failure to make any payment of any bill, charge or fee as provided for in this agreement; 19 C. Making any connection to the Lubbock System at any point except as provided in Section 2.2 hereof; d. Failure to provide Lubbock ingress and egress for purposes of sampling and operation and maintenance of any metering or any sampling facility; C. Failure to permit or conduct any sampling of wastewater as provided for herein; f. Failure to disconnect industrial users of Customer pursuant to Section 8.3; g. Failure to maintain the quality of discharge as required in Sections 9.2 and 9.3; h. Failure of Customer to comply with Section 20 hereof. In the event of any other nonmaterial breach, default or failure to perform duties under this agreement, Lubbock shall deliver to Customer sixty (60) days advance written notice of such default. If Customer fails to cure such breach, default or failure, then Lubbock shall give Customer written notice of such failure to cure and may surcharge Customer Five Thousand Dollars ($5,000) per month until such time as Customer cures such nonmaterial default. Any failure by Lubbock to so terminate this agreement or the acceptance by Lubbock of any benefits under this agreement for any period of time after such material breach, default or failure by Customer shall not be determined to be a waiver by Lubbock of any rights to terminate this agreement for any subsequent material breach, default or failure. In the event Lubbock shall fail to perform under this agreement, Customer may, as its sole and exclusive remedy, terminate this agreement, upon providing notice to Lubbock in the same manner Customer is to be provided notice pursuant to the notice provisions provided above regarding notice of material breach of Customer. 20 24. Effective Date This contract, together with all terms and conditions and covenants, shall be effective as of the date of the execution hereof by Lubbock.. 25. Condition Precedent The obligation of Lubbock to perform under this agreement is subject to the condition precedent that, prior to accepting any liquid waste, wastewater or other water pursuant to the terms hereof, Lubbock and Customer shall have received written approval and authorization to perform hereunder by the Environmental Protection Agency of the United States of America, the Texas Natural Resource Conservation Commission and any other governmental or regulatory body or authority having jurisdiction over such matters. 26. Miscellaneous 26.1 This agreement is subject to all applicable federal and state laws and any applicable permits, rules or amendments adopted pursuant to Section 9.1 rules, orders and regulations of any state or federal governmental authority having or asserting jurisdiction. 26.2 The Customer agrees to abide by and comply with any changes in this agreement made necessary by any amendment or revision to state or federal regulations. 26.3 Upon prior notice by Lubbock, any duly authorized employee of Lubbock bearing proper credentials and identification shall notify Customer of need for access to any premises located within Customer's jurisdiction as may be necessary for the purpose of inspections and observation, measurement, sampling and testing and/or auditing, in accordance with the provisions of this contract. Upon such notice, Customer shall immediately allow access to the Lubbock representative. Customer may elect to accompany the Lubbock representative. 21 A ! j C 26.4 In each instance herein where reference is made to a federal or state statute regulation or rule, it is the intention of the parties that, at any given time, the current federal or state statue, regulation or rule 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 Lubbock, new standards shall be adopted which are in compliance with state and federal laws and any valid rules and regulations pursuant thereto. 26.5 Lubbock must comply with all federal, state and local government requirements to obtain grants and assistance for system design, system construction and studies. Customer agrees to assist Lubbock in compliance by setting adequate rates, establishing proper user charges and complying with governmental requirements. 26.6 Section headings in this agreement are for convenience only and do not purport to accurately or completely describe the contents of any section. Such headings are not to be construed as a part of this agreement or any way defining, limiting or amplifying the provisions hereof. 27. Current Revenues Each party paying for performance under this agreement shall make all payments from current revenues available to the paying parry. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their respective officers thereunto duly authorized. 22 LUBBOCK REESE REDEVELOPMENT AUTHORITY CITY OF LUBBOCK ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: Terry llerbrook Managing Director Water Utilities APPROVED AS TO FORM: Richard K. Casner Natural Resources Attorney RKKC:ke L:\Cityatt\Richard\ReeseWholesaleWastewaterContract-Redlined-Accepted-3 November 15, 2001 23 Resolution No. 2002-RO178 W 4TH 19TH EXHIBIT A SCALE: 1"-3000' LUBBOCK WATER UTILITIES tit a J.O. d W.W.O. 1"-3000' DATE: NOV. 2001 * * DESIGNER: DRAWN BY-'ZF REVIEWED BY: CC