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1990-186NOTE: Amended by Ordinance No. 2000-011. ORDINANCE NO. *-196 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE UPPER TRINITY REGIONAL WATER DISTRICT PROVIDING FOR INTERIM WASTEWATER TREATMENT SERVICES; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is authorized to execute the Agreement for Interim Wastewater Treatment Services between the City of Denton and the Upper Trinity Regional Water District, the original of which is attached hereto. SECTION II. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /gd/day of , 1990. BOB CASTLEBERRY, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: A-1 14 f%%IIA A 0 APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: - WV~"1 x 119026 0 INTERIM WASTEWATER TREATMENT SERVICES CONTRACT BETWEEN THE CITY OF DENTON, TEXAS AND THE UPPER TRINITY REGIONAL WATER DISTRICT This Agreement is made between the Upper Trinity Regional Water District (the District), a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Constitution of the State of Texas, and the City of Denton (Denton), a municipal corporation of the State of Texas. Recitals The District proposes to develop a regional wastewater system in the Denton County area and proposes to enter into contracts with entities (Participating Members) to provide regional wastewater services to those entities. Denton owns and operates a wastewater collection, treatment, and disposal system in Denton County, Texas, and the District desires to utilize the excess capacity of the Denton system for the collection, treatment, and disposal of the Members' wastewater. The "Denton County Water and Wastewater Study-Regional Master Plan for the Year 201011, recommends that certain portions of Denton County be provided regional wholesale wastewater service through the Denton wastewater system. Denton has agreed to provide waste- water services for the District on an interim basis, with the expectation and on the condition that the District will in the future enter into another contract with Denton to provide for the joint planning, funding, and ownership of additional wastewater collection and treatment facilities to serve the future wastewater requirements of both the District and Denton. Agreement In consideration of the recitals and the mutual promises of each, the District and Denton agree as follows: ARTICLE I GENERAL 1.1. Definitions. "Major Industrial/Commercial User" shall mean any user of a Participating Member's wastewater system that: (a) discharges 50,000 gallons or more of wastewater per average work day; (b) is regulated by the Categorical Pretreatment Stan- dards; or (c) is found by Denton to discharge wastewater which can cause deterioration of the sewer system facilities or is detrimental to the biological process of the treatment plant. "Participating Member" or "Member" shall mean any entity that contracts with the District to provide wastewater treatment and disposal services, all or part of which are to be provided by Denton under this Agreement. PAGE 2 "Pretreatment Service Program" means: (1) Wastewater treatment by a major industrial/ commercial user before it is discharged into a public sewage system when necessary to comply with Federal or State laws or regulations; (2) The monitoring, testing, and inspection of a user's wastewater discharges to insure the discharges do not violate Federal, State, or local laws or regulations regarding wastewater discharges or cause Denton to be in violation of any required wastewater, operating, treat- ment, or discharge permits; and (3) Ordinances, rules, or regulations imposed by a Member with lawful regulatory authority over all persons discharging wastewater into a Member's system, that provide penalties, remedies, or other enforcement mechanisms to insure compliance with state and federal laws and regulations regarding wastewater discharges. "Point of Entry" means the location or locations where wastewater from the District is delivered to the Denton system, as shown in Exhibit B. "Service Area" means the land area served with wastewater collection facilities by any Participating Member of the District whose wastewater is to be received by Denton under this Agreement. "SUO" or "Sewer Use Ordinance" means Ordinance No. 82-39, as enacted by the City Council of Denton, as amended, and codified as Article VIII of Chapter 25 of Denton's Code of Ordinances, PAGE 3 providing for the regulation of wastewater discharges into the Denton system. "Wastewater System" or "System" means any property, equipment, or facilities used for receiving, transporting, treating or disposing of wastewater. 1.2. Exhibits. All exhibits attached to this Agreement are true and correct copies of the originals and are incorporated herein for all purposes. ARTICLE II WASTEWATER SERVICES TO BE PROVIDED 2.1. General. The District shall deliver and discharge wastewater into the Denton wastewater system and Denton shall transport, treat, and dispose of the wastewater received from the District, in accordance with this Agreement. 2.2. Prior Member Approval. The District shall not allow or cause wastewater from a Participating Member to be discharged into the Denton system without first obtaining the written approval from the Executive Director of Utilities. The Director's approval shall be given if, in the judgment of the Director, the discharge of the Member's wastewater into the Denton System would not violate any provision of this Agreement. The Director's written approval shall be limited to the cities of Corinth, Argyle, Corral City, Hickory Creek and Krum, which are or may become Participating Members of the District. PAGE 4 2.3. Maximum Daily Flow Specified for Each Service Year. (a) The maximum amount of wastewater to be treated by Denton under this Agreement shall be established for each Service Year based on maximum daily flow, in gallons per day. A Service Year shall be the period of time from October 1 to September 30, except for the first Service Year, which shall be the time from the date wastewater service begins to the next September 30. The daily flow shall be measured at the location or locations where the wastewater is metered. (b) For the first Service Year the District may discharge wastewater into the Denton system at a maximum daily flow of 300 gallons per day. The estimated average daily flow for the first service year is 10,000 gals. Not less than 120 days prior to the beginning of the second Service Year and the beginning of each successive Service Year thereafter, the District shall give written notice to Denton of the District's requested maximum and average daily flow for the following Service Year and the projected maximum and average daily flow for each successive Service Year during the term of this Contract. (c) Each notice required to be given by the District of its maximum and average daily flow requirements for each Service Year shall be designated as Exhibit E, be signed by the authorized agents of both parties, and attached hereto and be incorporated herein by reference. (d) Should the District fail to give timely notice of its wastewater treatment requirements for any Service Year, the maximum PAGE 5 daily flow for the succeeding Service Years shall be the same as that established by the prior notice properly given. (e) Denton, may, but shall not be obligated to receive or treat any wastewater in excess of the maximum daily flow specified by the District in its written notice for each Service Year. Denton shall never be required to receive or treat more than 300,000 gallons of wastewater per day from the District except as provided for in paragraph 2.5. The obligation of Denton to receive and treat District wastewater shall also be subject to the provisions of 2.4 regarding the use of excess capacity of the Denton wastewater system. 2.4. Service Limited to Excess Capacity. (a) The wastewater services provided by Denton to the District shall be solely from the excess wastewater collection and treatment capacity of the Denton system. (b) As the wastewater collection and treatment demands of the Denton system increase, Denton will be required to either make use of the excess capacity being allocated to the District under this Agreement, or construct additional wastewater treatment facilities. However, Denton may not be able to afford to construct sufficient wastewater facilities to meet the future wastewater requirements of both Denton and the District unless the District enters into a contract with Denton to provide for the joint planning, funding, and ownership of additional wastewater collection and treatment facilities. PAGE 6 (c) This Agreement, therefore, contemplates that continued performance of the collection and treatment of wastewater by Denton for the District throughout the term of this Agreement is based upon the expectation and condition that the parties will enter into a separate contract to provide for the cost of additional waste- water collection and treatment facilities to meet the future wastewater needs of both parties. (d) If, at any time during this Agreement, Denton determines that it will need the excess wastewater collection or treatment capacity allocated to the District to serve the requirements of the Denton system or proposes to review or accept engineering proposals for the construction of additional wastewater treatment facilities, Denton shall give written notice to the District. (e) If, within one year after the date the written notice is sent by Denton to the District, the parties fail to enter into a separate contract for the planning, funding, and ownership of additional wastewater treatment facilities as contemplated in this Agreement, Denton may terminate this Agreement at any time after two years from the date the notice was sent, by giving the District a notice of termination at least one year prior to the termination date specified in the notice of termination. 2.5. Districtfs Request for Increased Capacity. (a) If, prior to the time Denton gives notice under section 2.4, the District determines that it needs more capacity than the maximum 300,000 gallons per day volume allowed under this PAGE 7 Agreement, the District shall give Denton written notice specifying the new maximum gallons per day limitation being requested. (b) If, within one year after the date the written notice is sent by the District to Denton, the parties fail to enter into a separate contract for the planning, funding, and ownership of additional wastewater treatment facilities as contemplated in this Agreement or Denton fails to agree in writing to a new maximum volume above 300,000 gallons per day as requested by the District, the District may terminate this Agreement at any time after two years from the date the notice was sent, by giving Denton notice of termination at least one year prior to the termination date specified in the notice of termination. ARTICLE III MASTER PLAN AND INVENTORY 3.1. Master Plans. The District shall provide Denton a written wastewater master plan, prepared by a registered professional engineer, for each Participating Member, containing the information required in Exhibit A, before the wastewater of the Participating Member is discharged into the Denton system. 3.2. Updates. An updated master plan for each Participating Member shall be submitted to Denton within five years of the date the Member begins wastewater discharges into the Denton system. 3.3. Annual Inventory. The District shall provide to Denton in writing by February 1 of each year, as to each Participating Member, the following: PAGE 8 (a) The number of domestic users being served under this Agreement; (b) The number of industrial/ commercial users being served under this Agreement; and (c) The name and address of each major industrial/ commercial user being served under this Agreement. ARTICLE IV FACILITIES AND POINT OF ENTRY 4.1. District to Provide Facilities and Property. The District shall provide all lines, lift stations, and associated facilities and shall acquire all property interests, licenses, and permits that are necessary to collect and transport wastewater from each Participating Member to the Denton system. 4.2. Facilities Within Denton. Any lines and facilities constructed by or for the District for the purposes of carrying out this Agreement which are located within an area for which Denton holds a certificate of public convenience and necessity to provide sewer utility service shall comply with standards and specifications approved by Denton. For those lines, Denton may require that the lines or portions thereof be oversized pursuant to a separate participation agreement with the District, if Denton agrees to pay for the increased cost of the oversizing. Denton shall have the right to approve the location of any oversized lines. Upon completion of an oversized line and payment by Denton of its participating share, the District shall transfer to Denton PAGE 9 ownership of the oversized line and associated easements and property interests. 4.3. District to Convey to Point of Entry. It shall be the sole responsibility of the District to convey and deliver the wastewater from each Participating Member to the Point or Points of Entry approved by Denton and designated in Exhibit B. A Point of Entry may be changed, or additional Points of Entry added upon the approval of Denton, which shall be indicated by amendment of Exhibit B, signed by the agents of the both parties. The District shall pay for any change in the location of a Point of Entry, if the change was requested by the District. 4.4. Control Manholes. The District shall construct, install, and maintain for each Point of Entry a control manhole to allow Denton to monitor the wastewater received from the District. The control manholes shall be located and constructed in accordance with specifications approved by Denton, so as to allow Denton to have unrestricted access at all reasonable times. Upon completion, the control manholes shall become the property of Denton and shall be maintained and repaired by Denton. ARTICLE V METERING 5.1. Installation. The District agrees to furnish and install or cause to be furnished and installed at its own expense at each Point of Entry, the necessary equipment and devices, as approved by Denton, for measuring all wastewater to be discharged by the PAGE 10 District into Denton's system. Denton may approve alternative metering locations if metering facilities cannot be located at each point of entry because of engineering applications. 5.2. Ownership. All the wastewater meters and associated equipment shall become and remain the property of Denton upon installation and acceptance by Denton and shall thereafter be operated, maintained, and repaired by Denton. 5.3. Inspection and Reading. The District shall have access to the metering equipment at all reasonable times for inspection, but the reading, calibration, and adjustment shall be done only be employees of Denton. If a District inspection determines that a meter is not functioning properly, it shall notify Denton within 48 hours of the determination. 5.4. Calibration. Denton shall calibrate each meter a minimum of twice a year unless requested in writing by the District to calibrate more frequently. If the District requests Denton to calibrate a Point of Entry meter more often than twice a year and Denton finds the percentage of inaccuracy to be five percent or less, the District agrees to pay for the cost of the calibration. ARTICLE VI REGULATION OF WASTEWATER CHARACTERISTICS 6.1. Denton's Sewer Use ordinance. Denton must receive, treat, and discharge wastewater in accordance with Federal and State laws and applicable regulations imposed by Federal and State agencies. To insure compliance with these laws and regulations, PAGE 11 Denton has enacted a Sewer Use Ordinance or "SUO," a copy of which is attached hereto as Exhibit C. To properly regulate the wastewater discharges received by Denton from the District, the following provisions of the SUO shall apply to this Agreement: Sec. 25-132. Definitions. Sec. 25-133. Administration. Sec. 25-136. Determining the Character and Concentration of Wastewater. Sec. 25-160. Discharge Prohibitions. Sec. 25-161. Hazardous Metals or Toxic Substances. Sec. 25-162. Discharge of Waters Not Containing Sewage. 6.2. Application and Interpretation of SUO Provisions. The provisions of the SUO applied to this Agreement shall be inter- preted to apply as follows: (a) A "prohibited" or "unlawful" wastewater discharge shall mean that the District is contractually pro- hibited from making such a discharge into the Denton system. (b) Any provision which relates to or requires a discharge permit, shall be interpreted to apply to the District and its discharges without regard to a permit. (c) "Major Industrial/Commercial User" as defined in section 25-132, shall have the meaning as defined in this Agreement. PAGE 12 6.3 Amendments to SUO. (a) The parties recognize that federal and state laws and regulations concerning wastewater treatment and discharges may periodically change during the term of this Agreement, requiring revisions in the SUO. It is the intent of this Agreement that the SUO be reviewed periodically by Denton and revised in accordance with the latest laws and regulations of federal and state agencies having jurisdiction over wastewater treatment and discharges. (b) Denton shall give written notice to the District at least 90 days prior to the effective date of any amendment of the SUO that amends a provision of the SUO that applies to this Agreement or that adds a new provision to the SUO that Denton is required to apply to wastewater received by Denton under this Agreement. The District shall be responsible for giving notice of the proposed amendment to any of its Participating Members affected by the amendment. Upon the effective date of the amendment to the SUO, it shall be considered an amendment to this Agreement and shall be attached to Exhibit C, showing the amendment made. Failure of Denton to give the notice required herein shall not, however, relieve the District or any Participating Member from the responsibility of complying with the amendment as of the date it becomes effective. 6.4. Members Pretreatment Service Program. (a) The parties recognize and acknowledge that for Denton to properly treat and dispose of the wastewater received under this Agreement, it will be necessary for Participating members discharg- PAGE 13 ing wastewater from major industrial/commercial users into the Denton system to have an established pretreatment service program to satisfy the requirements of State and Federal laws and regulations and the requirements and conditions of Denton's wastewater permits. (b) The Executive Director of Utilities shall not give the written approval required by this Agreement to serve a Partici- pating Member if the Member has any major industrial/ commercial customer which requires wastewater pretreatment until the Member has established a satisfactory pretreatment service program. (c) Participating Member may establish its own pretreat- ment service program or contract with another party to provide for all or part of the required program for the Member. If the Member establishes its own program, it must be approved by the Environ- mental Protection Agency, or its successor agency. If all or part of a pretreatment service program is to be provided to the Partici- pating Member by an entity other than Denton, the pretreatment ser- vice program must be approved by Denton as a condition to beginning and continuing the discharge of any wastewater into any system that will be received by the Denton system. (d) If requested by the District, Denton will contract with the District to develop and administer pretreatment service for any Participating Member. 6.5. Notice of Violation. The Executive Director of Utilities shall send written notice to the District if he determines that a Member is failing to provide a satisfactory pretreatment program or PAGE 14 a discharge by the District is in violation of the SUO or this Agreement. The notice shall contain the following: (1) the nature and description of the violation; (2) the provision of the SUO or of this Agreement violated; (3) the corrective action that must be taken; and (4) the time in which the corrective action must be taken. Denton and the District shall cooperate to determine the source of any wastewater discharge violation and agree to cooperate in remedying the violation, but the District shall be responsible for insuring that the violation is properly and timely corrected. The District's failure to have the violation corrected in the time specified shall be a breach of this Agreement for which Denton may terminate this Agreement. The District agrees to pay Denton the costs Denton incurs in the investigation of any wastewater discharge violation. ARTICLE VII RATES AND BILLING 7.1. Applicable Rate. The District shall pay Denton for the metered wastewater received by the Denton system at the rate established by the applicable Rate Schedule approved by ordinance of the City Council of Denton. The initial Rate Schedule is shown in Exhibit D. The rate charged the District shall always be just and reasonable, without unlawful discrimination, and consistent in application to the class and type of service provided the District PAGE 15 under this Contract. The rate charged the District shall be developed in accordance with the methodology accepted by the Texas Water Commission and shall include the cost of operation and maintenance, depreciation, a return on the applicable rate base equal to the interest on outstanding wastewater system revenue bonds, plus one and a half percent interest (1.5%), and other reasonable expenses. The District shall have access to all data used to calculate the rate charged and the District may review and comment on any proposed rate changes. 7.2. Amendment of Rate. The rate charged the District shall increase or decrease in accordance with any amendment to the Rate Schedule applicable to the District, as approved by ordinance of the City Council of Denton. At least ninety (90) days prior to the effective date of any proposed amendment of the rate charged to District, Denton shall send written notice of the proposed rate amendment to the District. If Denton fails to give written notice at least ninety (90) days prior to the effective date of the amended rate, the amended rate shall become effective, as it applies to the District, on the ninety-first (91) day after the written notice is sent. Upon amendment of the applicable Rate Schedule, Exhibit D shall be amended by attaching a copy of the amended Rate Schedule. 7.3 Billing and Payment. (a) Denton shall bill and the District shall pay for the wastewater services provided for in this Contract, in accordance with the procedures and requirements of the applicable Rate PAGE 16 Schedule and ordinances of Denton, except as otherwise provided in this Agreement. (b) Denton shall bill the District monthly for the ser- vices provided and the District shall pay the bill within thirty days of the date of mailing. (c) If the District disputes the amount of any bill, it shall still pay the bill. If the parties agree or a court decides that the District was incorrectly billed, Denton shall credit that amount to the District on the next monthly bill or bills. 7.4 corrections in Billing. (a) If a meter completely fails or the percentage of inaccuracy of any meter is in excess of five percent, the amount billed to the District shall be corrected for a period of time extending back to the time when the failure or inaccuracy began, if known, but if not, then for a period extending back to the date of the last calibration or six (6) months, whichever is less. (b) In the case where a meter is determined to be reading inaccurately by more than five percent, a correction to the billing shall be made as follows: (1) Take the number of gallons measured by the meter since the last calibration or six months, whichever is less; (2) Multiply that amount by the percentage of inaccuracy to obtain the total number of gallons not properly registered; PAGE 17 (3) Multiply the gallons by the applicable rate at the time of the inaccuracy to get the amount to be debited or credited, as appropriate. (c) In the case where a meter completely fails, a correction shall be made by using the average of the gallons of wastewater billed for the prior three months, or some other mutually agreeable method, to obtain a daily average, which shall be applied to the days for which the meter was not working. (d) Any adjustments in billing provided in this section, whether a credit or debit, may be satisfied immediately or made in equal installments over the time equal to the time for which the failure or inaccuracy was calculated. ARTICLE VIII MISCELLANEOUS 8.1. Term. This Agreement shall become effective beginning on 1990, and terminate on December 31, 1999. 8.2. Notices. Any notice required under this Agreement shall be in writing and sent by certified mail, return receipt requested, postage prepaid and addressed as follows: Notice to Denton: Notice to the District: Executive Director of Utilities General Manager Utilities Administration Upper Trinity Regional Water 215 E. McKinney Street District Denton, Tx 76201 P.O. Drawer 305 396 W. Main, Suite #102 Lewisville, Tx 75067 PAGE 18 8.3. Termination. (a) Remedies Upon Default. This Agreement is not intended to specify an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by either party and shall be cumulative. Recognizing, however, that the failure of either party to perform cannot be adequately compensated in money damages alone, both parties agree that in the event of any default on its part, the other shall have available to it the equitable remedy of mandamus and specific performance in addition to any other legal or equitable remedies (other than termination) which may be available. The remedy of termination for default precluded by this paragraph does not include and does not prohibit Denton from terminating this Agreement in accordance with section 2.4, or for failure to remedy a violation under section 6.4 or 6.5, or for the failure of the District to pay for the services received. Should the District default in the performance of any provision for which Denton is entitled to terminate this Contract, Denton shall give written notice to the District of the provision breached. For failure to pay for services rendered in accordance with this Agreement, Denton may terminate this Agreement thirty (30) days following the date notice of nonpayment is sent unless payment is made by the District within that time. For other violations for which termination is authorized, Denton may terminate this Contract after sixty (60) days following the date the notice was sent, unless the District shall perform the PAGE 19 conditions or obligations specified in the notice within the sixty (60) day period. (b) No Waiver. The failure of either party to exercise any right of termination or their failure to seek enforcement or performance of any provision at any time, shall not be construed to be a waiver of the performance of any provision, or the waiver of the right of either party to exercise its right of termination, or to seek enforcement or performance of any provision of this Contract. (c) Payments Due. The termination of this Contract shall not release the District from its obligation to make payments for services rendered under this Contract prior to the date of termination. 8.4 Force Majeure. (a) If by reason of "force majeure", either party is unable to perform any obligation of this Contract, it shall give notice of the force majeure to the other party in writing within ten days of the occurrence relied upon. The obligation of the party giving the notice, to the extent and for the period of time affected by the force majeure, shall be suspended. The party giving notice shall endeavor to remove or overcome the inability with all reasonable effort. In no case, however, shall the District's obligation to make payments for wastewater already delivered to Denton be suspended. (b) "Force Majeure" shall mean acts of God, landslides, lightning, earthquakes, hurricanes, storms, floods, or other PAGE 20 natural occurrences; strikes, lockouts, insurrections, riots, wars, or other civil or industrial disturbances; orders of any kind of the Federal or State government or of any civil or military authority; explosions, fires, breakage or accidents to machinery, lines, or equipment, or the failure of the system or water supply system; or any other cause not reasonably within the control of the party claiming the disability. 8.5. Liability and Indemnification. (a) Liability for damages arising from the reception, transportation, delivery and disposal of all wastewater covered by this Contract shall, as between the parties, remain with the District until delivered into the Denton system at the Point of Entry. (b) The District agrees to hold harmless and defend Denton, its officers and employees, from any claims for injuries, damages or losses that arise from any act, omission or negligence of the District, its officers or employees, arising from the performance of this Agreement. Denton agrees to hold harmless and defend the District, its officers and employees, from any claims for injuries, damages or losses that arise from any act, omission or negligence of Denton, its officers or employees, arising from the performance of this Agreement. 8.6. Subject to Laws and Regulations. The Agreement is made and shall be subject to the laws of the United States and the State of Texas and all applicable regulations or rules of any regulatory PAGE 21 authority having jurisdiction of the subject matter of this Agreement. 8.7. Severability. If any provision of this Contract is by any court held to be illegal or in conflict with any law or regulation, the validity of the remaining provisions of this Contract shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. 8.8. Assignment. Neither party shall assign nor transfer in whole or in part the rights and privileges granted in this Contract without first obtaining the written consent of the other. 8.9. Entire Agreement. This Contract embodies the whole agree- ment of the parties. There are no promises, terms, conditions, or obligations other than those contained herein. This Contract shall supersede all previous communications, representations, or agree- ments, either verbal or written, between the parties, and all modifications of this Contract shall be in writing and approved by both parties. 8.10. Headings. All headings in this Contract are used for convenience only and are not intended to define or to limit the scope of any provision. The parties' authorized officers have executed this Agreement in multiple originals as of the date given above. Signed this the jO) day of Q 1990. BO Ar"TLEBERRY, MAYOR PAGE 22 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~ L"M APPRO AS T LEGAL FORM: DEBRA A AMI DRAYOVITCH, CITY ATTORNEY r BY: UPPER TRINITY REGIONAL WATER DISTRICT BY : i PR S DENT BOARD OF DIRECTORS ATTEST: SECRETARY, BOARD OF DIREC S APPROVED AS TO LEGAL FORM: ATTORNEY FOR THE TRICT EXHIBIT LIS` Exhibit Exhibit Exhibit Exhibit Exhibit C A, B, C, D, E, Master Points Denton Curren Annual Plan Information of Entry Sewer Use Ordinance t Rate Schedule Wastewater Requirements K\29060\11\02\90 PAGE 23 EXHIBIT A WASTEWATER MASTER PLAN INFORMATION A. Existing and Future System 1. Written Description of Present System a. Past Experience b. Demands C. Collection System d. Type of Treatment e. Future Improvements f. Goals 2. Map of System a. Entity's Owned Facilities b. Contracted Wastewater Disposal Facilities C. Sewer Mains d. Effluent Location 3. Flow Data a. Peak Flow b. Average Daily Flow 4. Treatment a. Entity's Owned Facilities b. Contracted Wastewater Disposal Facilities c. Type of Treatment d. Type of Discharge Permit 2978L EXHIBIT B POINT OF ENTRY DENION WASTEWATER TREATMM CONIRACT 444 Exhibit C NO. Rat 39 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, 1966, AS AMENDED, BY DELETING THEREFROM DIVISION 1 OF ARTICLE III "SANITARY SEWERS" OF CHAPTER 25, SECTIONS 25-35 THROUGH AND INCLUDING SECTION 25-48, BY ADDING A NEW ARTICLE VIII TO CHAPTER 25, PROVIDING FOR REGULATION AND USE OF AND DISCHARGE INTO SANITARY SEWERS; PROVIDING FOR PERMITS AND FEES FOR CERTAIN DISCHARGES; PROVIDING FOR CERTAIN USER CHARGES; PROVIDING FOR A PENALTY NOT TO EXCEED TWO HUNDRED DOLLARS ($200.00) FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: PART I. That the Code of Ordinances of the City of Denton, Texas, as amended, 1966, is further amended by deleting therefrom Division 1 of Article III "Sanitary Sewers" of Chapter 25, Sections 25-35 through' and including Section 25-48. PART II. That Chapter 25 of the Code of Ordinances of the City of Denton, Texas, 1966, as amended, is further amended by adding thereto a new Article VIII, Section 25-130 through and includinq Section 25-180 which shall read as follows: ARTICLE VIII. REGULATION OF DIRECT AND INDIRECT DISCHARGE INTO SANITARY SEWAGE SYSTEM. DIVISION 1 GENERAL PROVISIONS SECTION 25-130. PURPOSE The purpose of this Article is to regulate and control wastewater disposal facilities and practices within the City so as to protect the health, welfare and property of its citizens and to insure that all wastewater disposal facilities and practices are in compliance with state and federal laws, rules and regulations. SECTION 25-131. SCOPE This Article shall apply to the direct or indirect discharqe of all water-carried wastes in the City of Denton and shall, PAGE 445 among other things provide for the regulation of sewer construction in areas within the Jurisdiction of the City of Denton, the- approval of plans for sewer construction, the quantity and quality of wastewater discharged, the degree of wastewater pretreatment required, the issuance of Industrial/Commercial Wastewater Discharge Permits and of other miscellaneous permits. SECTION 25-132. DEFINITIONS Unless the context specifically indicates otherwise, the meaning of terms used in this Article shall be as follows: 1. "ABNORMAL STRENGTH WASTEWATER" shall mean any wastewater having a suspended solid, BOD, COD chlorine demand or total phosphate concentration in excess of that found in normal strength wastewater. 2. "ACT" shall mean Public Law 92-500, as amended, as enacted by the United States Congress and known as the Federal Water Pollution Control Act or Clean Water Act. 3. "BOD" (denoting Biochemical Oxygen Demand) shall mean the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedure in five (5) days at 200C, expressed in milligrams per liter. 4. "BUILDING" is any structure used or intended for supporting or sheltering any use or occupancy. 5. "BUILDING DRAIN" is that part of the piping of a building drainage system which receives the discharge of all soil, waste, and other drainage from inside the structure and conveys the same to the building service line outside the foundation wall of such building. 6. "CATEGORICAL PRETREATMENT STANDARD" shall mean wastewater discharge limits applicable to a specific category of major commercial/industrial users as promulgated by the EPA in accordance with Section 307(b) and (c) of the Act. 7. "CHLORINE DEMAND" shall mean the difference between the amount of chlorine added to water, wastewater or industrial wastes and the amount of residual chlorine remaining at the end of a twenty (20) minute contact period. 8. "COD" (denoting Chemical Oxygen Demand) shall mean the measure of the oxygen equivalent of that portion of the organic matter in a sample that is susceptible to oxidation by a strong chemical oxidant. 9. "COMMITTEE" shall mean the Environmental Appeals Committee. PAGE 446 10. "COMPOSITE SAMPLE" shall mean a mixture of grab samples collected at the same sampling point at different times. 11. "CONTROL MANHOLE" shall mean an opening giving access to a service line at some point before the service line discharges to the sewage system. 12. "COOLING WATER" shall mean the water discharged from any system of condensation such as air conditioning, cooling or refrigeration. 13. "DIRECT DISCHARGE" shall mean the conveyance of wastewater from a service line uninterrupted to a City public sewer. 14. "DIRECTOR OF UTILITIES" shall mean the Chief Executive Officer of the Utility Department of the City of Denton or his authorized deputy, agent or representative. 15. "DOMESTIC USER" shall mean any user who is not an Industrial User or Commercial User. 16. "DRY CLOSET" is an indoor room or an outdoor privy used as a toilet but lacking water for conveyance of waste. 17. "EPA" shall mean the United States Environmental Protection Agency or its successor agencies. 18. "FLOW RATE" shall mean the quantity of wastewater that flows past a particular point in a certain period of time. 19. "GRAB SAMPLE" shall mean a sample collected at a particular time and place, representing only the composition of the source at that time and place. 20. "INDIRECT DISCHARGE" shall mean the conveyance of wastewater to a public sewer by any means other than direct discharge. 21. "INDUSTRIAL/COMMERCIAL USER" shall mean any industrial or commercial establishment which uses the sewage system of the City and falls under a standard industrial classification. 22. "INDUSTRIAL/COMMERCIAL WASTEWATER DISCHARGE PERMIT", referred to herein as "Industrial/ Commercial Discharge Permit", shall mean a permit required of a major industrial/commercial user to deposit or discharge waste into any sewage system under jurisdiction of the City of Denton. 23. "INDUSTRIAL/COMMERCIAL WASTEWATER SURCHARGE" shall mean a charge, as set forth in the latest edition of the City of Denton Code of Ordinances levied on industrial/commercial users of the sewage treatment works for the additional cost of treating wastewater discharges of abnormal strength wastewater. 24. "INTERFERE" shall mean inhibition or disruption of the sewage system which contributes to a violation of any requirement of this Article. PAGE 44 25. "MAJOR INDUSTRIAL/COMMERCIAL USER" shall mean a user of the sewage system that: (a) discharges 25,000 gallons or more of wastewater into the sewage system per average work day; or (b) is regulated by the Categorical Pretreatment Standards; or (c) is found by the City of Denton to discharge wastewater which can cause deterioration of the sewer system facilities or is detrimental to the biological process, either singly or in combination with other contributing wastewater, on the treated sewage system or upon the quality of the discharge from the sewage system. 26. "mg/1" shall mean milligrams per liter. 27. "NATURAL OUTLET" shall mean any outlet into a watercourse ditch, lake, or other body of surface water or groundwater. 28. "NORMAL STRENGTH WASTEWATER" shall mean wastewater which, when analyzed, by the City, shows by weight a daily average of not more than 2,085 pounds per million gallons (250 milligrams per liter) of suspended solids, and 2,502 lb/mg (250 milligrams/1) of BOD (Biochemical Oxygen Demand), and 2,085 lb/mg of COD (250 mg/1), and not more than 75.1 pounds per million gallons (9.0 milligrams per liter (mg/1) of chlorine demand, and 41.7 pounds per million gallons (5.0 mg/1) of phosphorus, and which is otherwise acceptable into a public sewer under the terms of this Article. 29. "NPDES PERMIT" shall mean the National Pollution Discharge Eliminations System (NPDES) permit as issued pursuant to Section 402 of the Act (33 U.S.C. 1342). 30. "OBJECTIONABLE WASTE" shall mean any wastewater that can harm either the sewers, sewer treatment process, or equipment, have an adverse effect on receiving stream, or otherwise endanger life, health, or property, or constitutes a nuisance. 31. "PERSON" shall mean any individual, firm, company, association, society, corporation or entity, including a city, county, town, village, or sewer district. 32. "pH" shall mean the degree of acidity or alkalinity of a solution, expressed as the logarithm of the reciprocal of the hydrogen ion concentration in gram equivalents per liter of solution. conveyance a or vessel discerniblef 33. OPOINT P S Hiscrete shall confined and d from which wastewater may be discharged into a public waterway or public sewage system. 34. "POLLUTED WATER" shall mean any water, liquid or gaseous waste containing any of the following: soluble or unsoluble substances of organic or inorganic depositsi grease e and oils; dsflathat ting as slud olids PAGE 448 which may cause unsightly appearance; color; phenols and other substances to an extent which would impart any taste or odor to the receiving stream; and toxic or poisonous substances in suspension, colloidal state, solution or gases. 35. "PRIVY" is an outhouse or similar type small building used as a toilet where wastes are either buried on site or collected and disposed of elsewhere. 36. "PRETREATMENT" shall mean the treatment of wastewater before introduction into a sewage system. 37. "SANITARY SEWER" shall mean a sewer intended to receive domestic wastewater and admissible industrial/commercial wastewater but to which storm, surface and groundwaters are not intentionally admitted. 38. "SEPTIC TANK" shall mean any covered water-tight tank not connected to the sewage system and which is designed for the treatment of sewage. 39. "SERVICE LINE" shall mean that part of the horizontal piping of the building drainage system beginning at the outside foundation wall and terminating at its connection with the sewage system. 40. "SEWER" shall mean a pipe or conduit for carrying wastewater. 41. "SEWAGE SYSTEM" shall mean all facilities which are owned by the City of Denton for collecting, carrying, treating and disposing of wastewater. 42. "SLUG" shall mean any discharge of wastewater which in concentration of any given constituent or in quantity of flow exceeds for any period of duration longer than fifteen (15) minutes, more than five (5) times the average twenty-four (24) hour concentration of flow during normal operation. 43. "STANDARD INDUSTRIAL CLASSIFICATION" (SIC) shall mean a classification pursuant to the Standard Industrial Classification manual issued by the Executive Office of the President of the United States, Office of Management and Budget, 1972, or latest edition. 44. "STANDARD METHODS" shall mean the latest edition of "Standard Methods for the Examination of Water and Wastewater" prepared and published jointly by the American Public Health Association, American Waterworks Association and the Water Pollution Control Federation. 45. "STATE" shall mean the State of Texas. 46. "STORM DRAIN" (sometimes termed "storm sewer") shall mean a public drainage pipe which carries storm and surface waters and drainage, but is not intended to carry wastewater other than unpolluted cooling water. PAGE 149 47. "STORMWATER" shall mean rainfall or any other forms of excess water which are derived from precipitation. 48. "SUSPENDED SOLIDS" shall mean solids that either float on the surface of, or are in suspension in water, wastewater, or other liquids, and which are removable by acceptable laboratory procedures as set forth in Standard Methods. 49. "TOTAL DISSOLVED SOLIDS" shall mean the material left in the vessel after evaporation of a sample and its subsequent drying in an oven at a defined temperature. 50. "TOXIC SUBSTANCES" shall mean any substance whether gaseous, liquid or solid which, when discharged to the sanitary sewer in sufficient concentrations, as determined by the Director of Utilities, may be hazardous to sewer maintenance and personnel, tend to interfere with any wastewater treatment process, or to constitute a hazard to human beings or animals, or to inhibit aquatic life, or to create a hazard to recreation in the receiving waters of the effluent from a wastewater treatment plant. 51. "TRANSPORT TRUCK DISCHARGE PERMIT" shall mean a permit to deposit or discharge septic tank, cesspool or seepage pit wastes into the City of Denton sewage system. 52. "TRAP" shall mean a device designed to skim, settle, or otherwise remove grease, oil, sand, flammable wastes, or other harmful substances from wastewater before entering sewage system. 53. "USER CHARGE" shall mean a charge levied on users of the sewage system for the capital cost, as well as the operation and maintenance of such works as set forth in the City of Denton code of ordinances. 54• shall mean rejected, substances in liquid, gaseous, or solid form resulting from domestic, agricultural, or industrial activities. 55. "WASTEWATER" shall mean the water-carried wastes which are discharged into the sewage system. connected to 56. e"WATER quipped with CLOSET* toilet shall thatnis a properlym o the sanitary sewer and has the means for mechanical discharge. SECTION 25-133. ADMINISTRATION Except as otherwise provided herein, the Director of Utilities of the City of Denton, or his designee, shall administer the provisions of this Article. PAGE 450 SECTION 25-134. PROCEDURES FOR ABATEMENT OF VIOLATIONS 1. Notice and Order. Whenever the Director of Utilities has determined that any person has violated any provision of this Article or that such violation is continuing, reoccurrinq or may reoccur, he may, in addition to any other remedy provided for in this Article, issue a notice and order directing that such violation be corrected or such other order as is necessarv to prevent the violation from continuing or reoccurring. Such notice and order shall state: (a) The nature of the violation and the provisions of this Article which have been violated. (b) The corrective action that must be taken to correct or abate the violation. (c) The amount of time within which the violation must be corrected. (d) That the person to whom the notice and order are issued may appeal from the notice and order to the Environmental Appeals Committee by filing in writing with the Director of utilities an appeal and filing fee within ten (10) days of the service of the notice and order. (e) That failure to comply with the notice and order and failure to file a timely appeal may result in termination of sewer service. 2. Service of Notice and Order. Any notice and order issued under this Article shall be in writing and served in person or by registered or certified mail on the record user or users of the sewage system or other persons determined to be responsible for such violation. 3. Appeals. Any person may appeal the notice and order of the Director of Utilities by filing a written notice of appeal with the Director of Utilities on forms provided by the Director of Utilities and by paying a filing fee of $10.00. Such notice of appeal shall be filed and filing fee paid within ten (10) days of service of the order. PAGE 451 4. No Appeal Filed, If no timely appeal and filing fee are filed, the Director of Utilities may, if a violation is continuing or reoccurring or may reoccur, terminate sewer service to the person ordered to correct or abate such violation if such violation has not been corrected or abated within the time specified in such order. 5. Hearing and Determination. (a) An Environmental Appeals Committee is hereby established and authorized to hear and decide appeals from any order issued by the Director of Utilities pursuant to said Article. The Committee shall be composed of the Citv Manager, or Assistant Citv Manager, the Director of Utilities and the City Attorney or their designated representative. (b) The Committee may call and hold hearings, administer oaths, receive evidence at the hearing, issue subpoenas to compel the attendance of witnesses and the production of papers and documents related to the hearing, and make findings of fact and decisions with respect to administering its powers herein. (c) Upon the hearing, the Committee shall determine if there is substantial evidence to support the Director of Utilities' determination and order. The decision of the Committee shall be in writing and contain findings of fact. If the Committee determines that there is substantial evidence to support the determination and order of the Director of Utilities, the Committee shall, in addition to its decision, issue an order (i) requiring discontinuance of such violation or condition, (ii) requiring compliance with any requirement to correct or prevent any condition or violation, or (iii) suspending or revoking any permit issued under the Article. (d) In any decision and order issued by the Committee, the order shall specify the time in which the compliance with the order must be taken. A copy of the decision and order shall be delivered to the appellant or person to whom the order is directed in person or sent to him by registered or certified mail. (e) Should the appellant fail to comply with the order of the Committee within the time specified therein, if any, the Director of Utilities, in addition to any other remedv provided for in this Article, may terminate sewage service to the appellant. SECTION 25-135. PENALTIES A person who violates any provision of this Article is guilty of a misdemeanor and upon conviction is punishable by a PAGE 452 fine of up to Two Hundred Dollars ($200.00) for each act in violation of any provision of this Article and for each day anv violation of this Article occurs. In addition to proceeding under authority of subsection (1) of this section, the City is entitled to pursue all other criminal and civil remedies to which it is entitled under authority of statutes or other ordinances against a person continuing prohibited discharges or violating any other provision of this Article. SECTION 25-136. DETERMINING THE CHARACTER AND CONCENTRATION OF WASTEWATER The wastewater discharged or deposited into the sewage system shall be subject to periodic inspection and sampling as often as may be deemed necessary by the Director of. Utilities. Sampling shall be conducted according to customarily accepted methods, reflecting the effect of constituents upon the sewage system and determining the existence of hazards to health, life, limb, and property. The examination and analyses of the characteristics of waters and wastes required by this Article shall be: (a) Conducted in accordance with the latest edition of "Standard Methods", and (b) Determined from suitable samples taken at the control manhole provided or other control points authorized by the City. The determination of the character and concentration of industrial/commercial wastewater shall be made by the Director of Utilities at such times and on such schedules as may be established by the Director of Utilities. Any person determined to be discharging wastewater in violation of this Article shall compensate the City for the cost of sampling and monitoring the discharges until such time as the discharged wastewater is in compliance with this Article. The Director of Utilities shall determine the number of samples and the frequency of sampling necessary to maintain surveillance of the discharges. PAGE 453 SECTION 25-137. APPROVAL OF PLANS, ISSUANCE OF PERMITS AND CERTIFICATION OF FINAL INSPECTION 1. Sewage Svstem Work Permit Required. It shall be unlawful for any user of the sewage system to construct, reconstruct, modify, enlarge or alter any equipment, device, machinery apparatus or facility or system or component thereof, which is used or is intended to be used to treat, process, measure, or convey any wastewater which is or will be discharqed into the sewage system without first obtaining a Sewaqe Svstem Work Permit from the Director of Utilities. 2. Requirements for Permit. A Sewage System Work Permit shall be issued when all plans, drawings and specifications are submitted in such detail as the Director of Utilities' may require and the Director of Utilities has determined that the work to be done will result in adequate treatment, processing, measuring, and conveyance of the wastewater discharged into the sewage system in accordance with the provisions of this Article. 3. Certificate of Final inspection upon Completion (a) Upon completion of the work to be done under the Sewage System Work Permit, the Director of Utilities shall inspect the work; and if done in accordance with the permit, the Director of utilities shall issue a Certificate of Final Inspection to the permit holder. (b) If the completed work does not comply with the plans and specifications submitted for which the permit was issued, the Director of Utilities shall require such correction as necessary before a Certificate of Inspection is issued. (c) No person receiving a Sewage System work Permit shall utilize or make use of any equipment, device, machinery, apparatus or facility covered by the permit until a Certificate of Final Inspection is issued in accordance with this Article. 4. Right to Inspect. No person shall refuse the Director of Utilities the right to inspect any work done or required to be done under this Article. SECTION 25-138. INSPECTIONS Representatives of the City of Denton, the Environmental Protection Agency, the Texas Department of Water Resources, and n wnv 454 the Texas State Health Department, or any successor agency bearing proper credentials and identification, shall be permitted to- enter upon all properties for the purpose of inspection, observation, measurements, sampling and testing of the sewage system or any wastewater discharged into the sewage system. SECTION 25-139 thru SECTION 25-149. RESERVED DIVISION 2 SANITARY FACILITIES REQUIRED SECTION 25-150. CONNECTIONS REQUIRED Any owner/occupant of every building where such building is within one hundred (100) feet of any City sanitary sewer and is utilized as a dwelling or residential unit shall construct, or cause to be constructed, a suitable water closet upon such property, and shall connect or cause the same to be connected with such sanitary sewer in accordance with all ordinances of the City regulating such construction and shall, within thirty (30) days after written notice to do so from the Director of utilities, abate and cease to use any septic tank, dry closet, or privey upon such premise. Any owner/occupant of every building where such building is within three hundred (300) feet of any City sanitarv sewer and is utilized as a business or commercial establishment discharging wastewater exceeding the limits established by this ordinance shall construct, or cause to be constructed, a suitable water closet upon such property, and shall connect or cause the same to be connected with such sanitarv sewer in accordance with all ordinances of the City regulating such construction and shall, within thirty (30) days after written notice to do so from the Director of Utilities, abate and cease to use any septic tank, dry closet, or privy upon such premise. The owner or occupant of any such property shall keep and maintain such water closet and all connections in good condition and free from any obstructions. DA(- . flaw s SECTION 25-151. SEPTIC SYSTEMS Septic tanks shall be installed in accordance with the provisions of the latest edition of the "Construction Standards for Private Sewage Facilities", as published by the Texas Department of Health. SECTION 25-152. DRY CLOSETS PROHIBITED It shall be unlawful for any person or persons to build, use or maintain any privy, or dry closet on any lot of land within the corporate limits of the City except for portable sanitary privies utilized temporarily. SECTION 25-153. CONSTRUCTION OF SANITARY SEWERS AND CONNECTIONS The construction of sanitary sewers and connections thereto shall be as provided in the Ordinances of the City of Denton. SECTION 25-154. OWNER RESPONSIBLE FOR MAINTENANCE OF SANITARY SEWER SERVICE LINES. The City shall not be responsible for the maintenance of any building drains or service lines and such maintenance shall be the responsibility and duty of the owner of the premises serviced by any such service line. SECTION 25-155. COMPLIANCE WITH PLUMBING REGULATIONS REQUIRED. Sanitary sewer service shall not be furnished to any Premise where the plumbing thereof has not been installed in accordance with the building regulations or any other provisions as provided in the Ordinances of the City of Denton. SECTION 25-156 thru SECTION 25-159. RESERVED DIVISION 3 USE OF PUBLIC SEWERS SECTION 25-160. DISCHARGE PROHIBITIONS It shall be unlawful for any person to discharge or cause to be discharged into the sewage system or into a natural outlet, materials, waters, or wastewater, if such substances may interfere with the facilities, operation, or performance of the sewage system, or have an adverse effect on the environment, or may otherwise endanger life, health or property, or constitute a PAGE 456 Public nuisance. In determining the acceptability of substances for discharge into the sewage system, the Director of Utilities shall give consideration to such factors as the quantities of subject substances in relation to flows and velocities in the sewer system, materials of which the sewer system is constructed, nature of the wastewater treatment process, capacity of the wastewater treatment plant, degree of treatability of the substances in the wastewater treatment plant and such other factors which may be pertinent to such evaluation. Substances specifically prohibited from being discharged into the sewage system are as follows: (a) Any liquids, solids or gases, including but not limited to, gasoline, kerosene, naphtha, benzene, toluene, xylene, ethers, alcohols, ketones, aldehydes, peroxides, chlorates, perchlorates, bromates, carbides, hydrides, sulfides or any other substances which are a fire or other hazard to the system, which by reason of their nature or quantity are, or may be, sufficient either alone or by interaction with other substances to cause fires, explosions, or be injurious in any other way to the facilities or operation of the sewage system. (b) Any substance which causes two successive readings on an explosion hazard meter, to be more than five percent (53) or any single reading over ten percent (103) of the Lower Explosive Limit MEL) of the meter as measured at the point where the wastewater is discharged into the sewage system. (c) Any wastewater having a pH less than five (5), greater than ten (10), or any wastewater having any other corrosive property capable of causing damage or hazard to the sewage svstem or any person. (d) Any wastewater containing toxic substances in sufficient quantity that may, either singly or by interaction with other substances, injure or interfere with any wastewater treatment process, constitute a hazard to humans or animals, create a toxic effect in the receiving waters of the sewage system, or exceed the limitation set forth in the Categorical Pretreatment Standards. A toxic substance shall include but not be limited to any substance identified pursuant to Section 307(a) of the Act. (e) Any substance discharged into the sewage system such as residues, sludges, or scums, which interferes with the reclamation process, or anv substance which causes the sewage system to be in non-compliance with sludge use or disposal guidelines or regulations developed under Section 405 of the Act, or any guidelines, or regulations PAGE 457 affecting sludge use or disposal promulgated pursuant to the Solid Waste Disposal Act, the Clean Air Act, and the Toxic Substances Control Act as amended by the U.S. Congress. (f) Any liquid or vapor having a temperature higher than one hundred fifty (150) degrees Fahrenheit, (650C). If, in the opinion of the Director of Utilities, lower temperatures of such wastewater could harm either the sewage system, wastewater treatment process, equipment, or have an adverse effect on the receiving stream or could otherwise endanger life, health or property or constitutes a public nuisance, then the Director of Utilities may prohibit such discharges. (g) Any wastewater containing fats, wax, grease, or oils, whether emulsified or not, in excess of fifty (50) mg/l or containing substances which may solidify or become viscous at temperatures between thirty-two (32) degrees Fahrenheit, (OoC), and one hundred fifty (150) degrees Fahrenheit, (65oC). SECTION 25-161 HAZARDOUS METALS OR TOXIC SUBSTANCES 1. It shall be unlawful for any person to discharge into the sewage system unless such discharge is allowed under the provisions of Section 25-174, "Industrial/Commercial Wastewater Surcharge": (a) Any wastewater containing hazardous metals to such degree that any such material received at the point of discharge into the sewage system exceeds the limits established below: NOT TO EXCEED Daily Grab Metal Average Composite Sample Arsenic 0.1 0.2 0.3 Barium 1.0 2.0 4.0 Cadmium 0.05 0.1 0.2 Chromium 0.5 1.0 5.0 Copper 0.5 1.0 2.0 Lead 0.5 1.0 1.5 Manganese 1.0 2.0 3.0 Mercury 0.005 0.005 0.01 Nickel 1.0 2.0 3.0 Selenium 0.05 0.1 0.2 Silver 0.05 0.1 0.2 Zinc 1.0 2.0 6.0 (b) Other metals not listed above which will, in the opinion of the Director of Utilities, damage the sewage system or interfere with the treatment process. (c) Any wastewater that contains phenolics in excess of 0.1 milligrams per liter (mg/1) by weight. (d) Any radioactive wastes or isotopes into the public sewers without permission of the City. PAGE FOURTEEN 458 (e) Quantities of flow, concentrations, or both, which constitute a "slug" as defined herein. (f). Materials or Substances which cause: (1) Concentrations of inert suspended solids exceeding 250 mg/l or total dissolved solids in concentrations greater than 800 mg/l and sodium sulfate in concentrations greater than 500 mg/1. (2) Concentrations of BOD exceeding 250 mg/l, COD requirements exceeding 250 mq/l, chlorine requirements exceeding 9.0 mg/l or phosphorus concentrations exceeding 5.0 mg/l. (3) Discolorations, such as, but not limited to dye waters and vegetable tanning solution. (g) Any wastewater with a concentration of cyanide the total of which is in excess of 1.0 mq/1. 2. In cases where a user wishes to discharge any wastewater having characteristics exceeding maximum permissible limits stated-'above, the Director of Utilities may, pursuant to an Industrial Commercial Wastewater Discharge Permit granted to such user, after conducting necessary evaluation of the wastewater, permit such discharge if: (a) the wastewater will not cause damage to the sewage system; (b) the wastewater will not impair the City's treatment process; and (c) the user discharging the wastewater complies with any pretreatment process and/or requirement imposed by the Director of Utilities. SECTION 25-162. DISCHARGE OF WATERS NOT CONTAINING SEWAGE It shall be unlawful for any person to discharge unpolluted waters into the sewage system. Except with the approval of the Director of Utilities, or as otherwise provided in this Article, no storm water connection from any building or yard, nor any drain from any catch basin, lake, swamp, pond, or swimming cool, nor any outlet for surface water, storm water or ground water of any kind shall be connected to the sewage system. Within any area served by a separate sanitary sewer and a storm sewer, no storm water shall be allowed to enter the PAGE 459 sanitary sewer from waste or vent pipes of any building. Within any such area no down spout, roof leaders, gutters, other pipes, or drains such as channels which may at any time carry storm water surface drainage derived from hydraulic pressure or from well points, or lake water, shall be connected with any sanitarv sewer. SECTION 25-163. DISCHARGE TO A NATURAL OUTLET it shall be unlawful for any person to discharge polluted water to any storm sewers or natural outlet within the area served by the City except where suitable treatment has been provided in accordance with the provisions of this Article, and except where a Federal National Pollutant Discharge Elimination Systems (NPDES) Permit has been duly issued and is currently valid for such discharge. A valid copy of such a permit and any modifications thereof must be filed with the Director of Utilities. SECTION 25-164. WASTEWATER DISCHARGES REOUIRING TRAPS All persons discharging oil, grease, sand, flammable wastes, or other harmful substances in amounts that, in the opinion of the Director of Utilities, will impede or stop the flow in the sewage system shall install a trap before the point of discharge into the sewage system. Any person responsible for discharges requiring a trap shall, at his own expense and as required by the City: (1) cprovide euiment and apacity approved by he facilities of a type and (2) locate the trap ccessibility manner for at cprovies leaning ready and easy a and inspection; and (3) maintain the trap in effective operating condition. SECTION 25-165. WASTEWATER DISCHARGE FROM TRANSPORT TRUCKS All persons owning or operating a vacuum truck, "cesspool" pump truck, liquid wastewater transport truck, or other vehicle, shall not discharge or unload any septic tank, seepage pit, inceptor or cesspool contents from such vehicle without first PAGE 460 having received a valid Transport Truck Discharge Permit (TTD Permit). TTD Permits shall be issued by the Director of Utilities upon proper application and payment of a Fifty Dollar (S50.00) permit fee. All TTD Permits shall be valid for one (1) year. No person holding a TTD Permit shall unload or discharge any waste or wastewater except in a manner and at a place as specified by the Director of Utilities. Before discharging under a TTD Permit, the Director of Utilities may require the person holding such permit to furnish a sample of the contents of the material to be discharged as a prerequisite to discharging into the sewage system. The Director of Utilities may refuse permission to discharge abnormal strength wastewater into the sewage system. Any person discharging or unloading normal strength wastewater under a TTD Permit into the sewage svstem shall be charged at the regular commercial sewer rates. Any person discharging abnormal strength wastewater under a TTD Permit into the sewage system shall be charged an industrial/commercial surcharge rate. SECTION 25-166 THRU 25-169. RESERVED DIVISION 4 INDUSTRIAL/COMMERCIAL WASTEWATER DISCHARGE SECTION 25-170 INDUSTRIAL/COMMERCIAL WASTEWATER DISCHARGE PERMIT REQUIRED It shall be unlawful for any major industrial/commercial user to connect to the sewage system or to discharge wastewater to the sewage system without first obtaining an Industrial/ Commercial Wastewater Discharge Permit from the Director of Utilities. All major industrial/commercial users discharging wastewater directly or indirectly into the sewage system prior to the effective date of this Article may continue that discharge one hundred eighty (180) days after the effective date of this PAGE 161 Article. Prior to the expiration of the one hundred eighty (180) day period, the major industrial/commercial user shall apply for art Industrial/Commercial Wastewater Discharge Permit from the Director of Utilities. SECTION 25-171. PROCEDURE FOR OBTAINING: A PERMIT FOR INDUSTRIAL WASTEWATER DISCHARGE 1. Permit Application. Major industrial/commercial users required to obtain an Industrial/Commercial Wastewater Discharge Permit shall complete and file with the City, an application in the form prescribed by the City, and accompanied by a fee of Twenty-Five Dollars ($25.00). New major industrial/commercial users shall apply at least ninety (90) days prior to connecting to or contributing to the sewaqe svstem for an industrial/Commercial Wastewater Discharge Permit. In support of the application, the major industrial/commercial user shall. submit the following information: (a) Name, address, and location (if different from the address). (b) SIC number according to the Standard Industrial Classification Manual, Bureau of the Budget, 1972, as amended. (c) Wastewater constituents and characteristics including but not limited to those mentioned in this Article as determined by a reliable analytical laboratory, sampling and analvsis shall be performed in accordance with procedures established by the EPA pursuant to the Act and contained in 40 CPR, Part 136, as amended. (d) Time and duration of contribution. (e) Average daily wastewater flow rates, including daily, monthly and seasonal variations if any. (f) Site plans, floor plans, mechanical and plumbing plans and details to show all service lines, sewer connections, and appurtenances by the size, location and elevation. (g) Description of activities, facilities and plant processes on the premises including all materials which are, or could be, discharged. (h) Where known, the nature and concentration of any pollutants in the discharge which are limited by any City law or regulation, or by the State or Categorical Pretreatment Standards, and a state- ment regarding whether or not the pretreatment standards are being met on a consistent basis. PAGE 4s? (i) If additional pretreatment and/or O&M will be required to meet the Categorical Pretreatment Standards, the shortest schedule by which the major industrial/commercial user will provide such additional pretreatment. The completion date in this schedule shall not be later than the compliance date established for the applicable Categorical Pretreatment Standard. The following conditions shall apply to this schedule: (1) The schedule shall contain increments of progress in the form of dates for the commencement and completion of major events leading to the construction and operation of additional pretreatment required for the major industrial/commercial user to meet the applicable Categorical Pretreatment Standards (e.g., hiring an engineer, completing preliminary plans, completing final plans, executing contract for major components, commencing construction, etc.). (2) No increment referred to in paragraph (1) shall exceed nine (9) months. (3) Not later than fourteen (14) days following each date in the schedule and the final date for compliance, the major industrial/ commercial user shall submit a progress report to the Director of Utilities including, as a minimum, whether or not it complied with the increment of progress to be met on such date and, if not, the date on which it expects to comply with this increment of progress, the reason for delay, and the steps being taken by the major industrial/commercial user to return the construction to the schedule established. In no event shall more than nine (9) months elapse between such progress reports to the Director of Utilities. (j) Each product produced by type, amount, process or processes and rate of production. (k) Type and amount of raw materials processed (average and maximum per day). (1) Number and type of employees, and hours of operation of plant and proposed or actual hours of operation of pretreatment svstem. (m) Any other information as may be deemed by the City to be necessary to evaluate the permit application. 2. Permit Modifications Within nine (9) months of the promulgation of a Categorical Pretreatment Standard, the industrial/commercial Wastewater Discharge Permit of major industrial/commercial users subject to such standards shall be revised to require compliance with such standard within the time frame prescribed by such standard. Where a major industrial/commercial user, subject to a PAGE , 463 Categorical Pretreatment Standard has not previously submitted an application for an Industrial/Commercial Wastewater Discharge Permit the major industrial/commercial user shall apply for an Industrial/Commercial Wastewater Discharge Permit within one hundred eighty (180) days after the promulgation of the applicable Categorical Pretreatment Standard. In addition, the major industrial/commercial user with an existing Industrial/ Commercial Wastewater Discharge Permit shall submit to the Director of Utilities within one hundred eighty (180) days after the promulgation of an applicable Categorical Pretreatment Standard the information required by paragraph (h) and (i) of Section 25-171 (2. Permit Application). 3. Permit Conditions. Industrial/Commercial. Wastewater Discharge Permits shall be expressly subject to all provisions of this Article and all other applicable regulations, major industrial/commercial user charges and fees established by the Code of Ordinances of the City of. Denton. Permits may contain the following: (a) The unit charge or schedule of industrial/ commercial user charges and fees for the wastewater to be discharged to the sewage system. (b) Limits on the average and maximum wastewater constituents and characteristics. (c) Limits on average and maximum rate and time of discharge or requirements for flow regulations and equalization. (d) Requirements for installation and maintenance of inspection and sampling facilities. (e) Specifications for monitoring programs which may include sampling locations, frequency of sampling, number types, and standards for tests and reporting schedule. (f) Compliance schedules. (g) Requirements for submission of technical reports or discharge reports. (h) Requirements for maintaining and retaining plant records relating to wastewater discharge as specified by the City and affording city access thereto. PAGE 464 (i) Requirements for notification of the City of any new introduction of wastewater constitutents or any substantial change in the volume or character of the wastewater constituents being introduced into.the wastewater treatment system. (j) Requirements for notification of slug discharges. (k) Other conditions as deemed appropriate by the Citv to ensure compliance with this Article. 4. Permit Duration. Permits shall be issued for a specified time period not to exceed three (3) _years. A permit may be issued for a period less than a year or may be stated to expire on a specified date. The major industrial/commercial user shall apply for permit reissuance a minimum of one hundred eighty (180) days prior to the expiration of the major industrial/commercial user's existing permit. The terms and conditions of the permit may be subject to modification by the City during the term of the permit. The major industrial/commercial user shall be informed of any proposed changes in his permit at least thirty (30) days prior to the effective date of change. 5. Permit Transfer. Industrial/Commercial Wastewater Discharge Permits are issued to a specified major industrial/commercial user for a specific operation. An Industrial/Commercial Wastewater Discharge Permit shall not be reassigned or transferred or sold to a new owner, new user, different premises, or a new or changed operation without the approval of the Director of Utilities. Any succeeding owner or major industrial/commercial user shall also comply with the terms and conditions of the existing permit. S. Reporting Requirements for Permittee. (a) Compliance Date Report Within ninety (90) days following the date for final compliance with applicable Categorical Pretreatment Standards, any major industrial/ commercial user subject to Categorical Pretreatment Standards shall submit to the Director of Utilities a report indicating the nature and concentration of all pollutants in the discharge from the regulated process which are limited by Categorical Pretreatment Standards and the average and maximum daily PAGE 465 flow for these process units in the industrial/commercial facility. The report shall state whether the applicable Categorical Pretreatment Standards are being met on a consistent basis and, if not, what additional 08M and/or pretreatment is necessarv to bring the industrial/commercial user into compliance with the applicable Categorical Pretreatment Standards. This statement shall be signed by an authorized representative of the industrial/commercial user and certified to by a qualified professional. (b) Periodic Compliance Reports (1) Any major industrial/commercial user subject to a Categorical Pretreatment Standard, after the compliance date of such standard, shall submit to the Director of Utilities during the month of June, unless required more frequently in the Categorical Pretreatment Standards or by the Wastewater Industrial/Commercial Discharge Permits, a report indicating the nature and concentration of pollutants in the effluent which are limited by such Categorical Pretreatment Standards. At the discretion of the Director of Utilities and in consideration of such factors as local high or low flow rates, holidays, budget cycles, etc., the Director of Utilities may agree to alter the months during which the above reports are to be submitted. (2) The Director of Utilities may impose mass limitations on major industrial/commercial users which are using dilution to meet applicable Categorical Pretreatment Standards or in other cases where the imposition of mass limitations are appropriate. In such cases, the compliance report shall indicate the mass of pollutants regulated by Categorical Pretreatment Standards in the effluent of the major industrial/commercial user. These reports shall contain the results of sampling and analysis of the discharge, including the flow and the nature and concentration, or production and mass where requested by the Director of utilities, of pollutants contained therein which are limited by the applicable Categorical Pretreatment Standard. All analysis shall be performed in accordance with procedures pursuant to Section 304 (g) of the Act and contained in 40 CPR, Part 136 and amendments thereto, or with any other test procedures approved by the Director of Utilities. Sampling shall be performed in accordance with the techniques approved by the Director of Utilities. PAGE 466 SECTION 25-172. PRETREATMENT OF INDUSTRIAL WASTEWATER Industrial/commercial users shall provide necessary wastewater treatment as required to comply with this Article and the Categorical Pretreatment Regulations. Any facilities required to pretreat wastewater to a level acceptable to the Director of Utilities shall be provided, operated, and maintained at the user's expense. Detailed plans showing the pretreatment facilities and operating procedures shall be submitted to the Director of Utilities for review before construction of such facility. The review of such plans and operating procedures will in no way relieve the user from the responsibility of modifying the facility as necessary to produce an effluent acceptable to the Director of Utilities under the provisions of this Article. Any subsequent changes in the pretreatment facilities or method of operation shall be reported to and be acceptable to the City prior to the user's initiation of the changes. All records relating to compliance with the Categorical Pretreatment Standards shall be made available to officials of the Environmental Protection Agency or City upon request. SECTION 25-173. CONTROL MANHOLE As a prerequisite to receiving an Industrial/Commercial Wastewater Discharge Permit, the Director of Utilities may, when necessary to monitor wastewater discharged into the sewage system, require an industrial/commercial user to install a suitable control manhole together with such meters, equipment and appurtenances as deemed necessary by the Director of utilities, in order to adequately sample and measure such wastewater. All required control manholes shall be located so as to permit unrestricted access by the Director of Utilities or his representatives. SECTION 25-174. INDUSTRIAL/COMMERCIAL WASTEWATER SURCHARGE If abnormal strength industrial/commercial wastewater is PAGE 467 acceptable for discharge into the sewage system under the provisions set forth under the Industrial/Commercial wastewater Discharge Permit, an industrial/commercial wastewater surcharge shall be added to the base sewer charge to cover the additional cost of treating abnormal strength wastewater. Such surcharge shall be calculated as follows: Cu-VU [(Bu - 250) B + (Su-250) S) + (XU-250)X) Where: Cu is the surcharge for user x. Vu is the billing volume for user x. Bu is the tested BOD level for user x or 250 mg/1, whichever is greater. B is the unit cost factor for treating one unit of BOD per 1,000 gallons. Su is the tested SS level for user x or 250 mg/l, whichever is greater. S is the unit cost factor for treating one unit of SS per 1,000 gallons. Xu is the tested pollutant level for user x or 250 mg/1, whichever is greater. X is the unit cost factor for treating one unit of pollutant per 1000 gallons. SECTION 25-175. SUSPENSION OR REVOCATION OF PERMIT FOR COMMERCIAL/INDUSTRIAL WASTEWATER DISCHARGE 1. Permit Not Vested Right. A permit issued under this Article does not become a vested right in the person holding the permit. 2. Grounds for Suspension or Revocation of Permit A permit issued under this Article may be revoked or suspended upon any of the following grounds: (a) The permittee has or is violating one or more provisions of this Article. (b) The permittee has failed or is failing to comply with one or more conditions of a permit. (c) There is a change in conditions which requires elimination or modification of the discharge covered by a permit. (d) Revocation or suspension is necessary in order to prevent harm or damage to the sewage system or treatment process or is necessary to PAGE 468 protect the health or welfare of persons, animals or property. (e) The permit was obtained by misrepresentation or failure to disclose all relevant facts. 3. Procedure for Suspension or Revocation of Permit. The Director of Utilities may issue an order suspending or revoking a permit issued under this Article upon the grounds specified in this Article. Such order shall state the grounds therefor and shall be served upon the permittee in person or by certified or registered mail. Such order of suspension or revocation shall become effective after five (5) days from the date of service, unless the permittee within such five (5) day period files an appeal and filing fee in accordance with Section 25-134 of this Article. 4. Procedure for Appeals From Order of Revocation or Suspension. Appeals from the order of the Director of Utilities suspending or revoking a permit shall be processed and heard in accordance with procedures for other appeals as set forth in Section 25-134. SECTION 25-176. SUSPENDED OR REVOKED PERMIT Any permittee who receives an order from the Director of Utilities revoking or suspending a permit shall discontinue any discharge covered by the permit after five (5) days from notice of such order, unless within such five (5) day period the permittee appeals such order to the Committee. Any permittee who has been notified by the Director of Utilities of a suspension or revocation of a permit and does not timely appeal such order or any permittee who has been notified of the order of the Committee, after a hearing, of the revocation or suspension of a permit and who continues a discharge covered by a permit after the effective date of the revocation or suspension of the permit may have sewage service terminated by the Director of Utilities. SECTION 25-177. REINSTATEMENT OF SUSPENDED OR REVOKED PERMIT The Director of Utilities shall reinstate a suspended Industrial/Commercial Discharge Permit upon satisfactory proof 469 to the Director of Utilities of corrective action of the permittee of the conditions or discharge for which the nermit was suspended. A user whose Industrial/Commercial Discharge Permit has been revoked must apply for a new permit and comply with all provisions and conditions required as though a permit had not been issued for such user. SECTION 25-178 through 25-180. RESERVED. PART III. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. PART IV. That this Ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this Ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. 44 A PASSED AND APPROVED this the day of1982. ITCYARD O. ST , MAYOR CI OF D TON, TEXAS ATTEST: C E ALLEN, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C.J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: EXHIBIT D SCHEDULE S3 (Effective Date 10-10-89) WHOLESALE SEWER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION OR SUBDIVISION APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a sewer collection system and contracts with the City of Denton for sewer treatment service. NET MONTHLY RATE (1) Facility Charge $125.00/30 days (2) Volume Charge $1.95/1,000 gallon of effluent Billing shall be based on one-hundred (100x) percent of actual gallons measured by meter at one point. MINIMUM BILLING $125.00/30 days INDUSTRIAL SURCHARGE In addition to the above charge for commercial and industrial, there will be added to the net monthly rate an industrial surcharge based on the following formula: Cu-Vu ([Bu-250] B + [Su-2501 S1) Where: Cu is the surcharge for user X. Vu is the billing volume for user X. Bu is the tested BOD level for user X or 250 mg/1, whichever is greater. B BOD per 1,000 gallons ($0.000743) is the unit cost factor for treating one unit. Su is the tested SS level for user X or 250 mg/l, whichever is greater. S ($0.000751) is the unit cost factor for treating one unit of SS per 1,000 gallons. EXHIBIT D SCHEDULE SSC [Effective 1-1-911 WHOLESALE SEWER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION OR SUBDIVISION APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a sewer collection system and, contracts with the City of Denton for sewer treatment service. NET MONTHLY RATE (1) Facility charge (2) volume charge (3) Surcharge $125.00/30 days $2.10/1,000 gallon of effluent 10.001386/mg/l of SOD 0.001715/mg/1 of Ss Billing shall be based on one-hundred (1001) percent of actual gallons measured by meter at one point. MINIMUM BILLING $125.00/30 days INDUSTRIAL SURCHARGE In addition to the above charge for commercial and industrial, there will be added to the net monthly rate an industrial surcharge based on the following formula: Cu=VU ([BU-2501 B + [Su-250) S)) Where: Cu is the surcharge for user X. Vu is the billing volume per 1000 gallons for user X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor ($0.001386) for treating one unit of SOD per 1,000 gallons. Su is the tested SS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor ($0.001715) for treating one unit of SS per 1,000 gallons. EXHIBIT E REQUESTED WASTEWATER COLLECTION & TREATMENT VOLUMES REQUIREMENTS SERVICE YEAR AVERAGE DAILY FLOW (MGD) MAXIMUM DAILY FLOW (MGD) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 O 03 2979L UPPER TRINITY REGIONAL WATER DISTRICT REGIONAL WASTEWATER TREATMENT SERVICE PARTICIPATING MEMBER CONTRACT (DENTON SYSTEM PROJECT) THE STATE OF TEXAS S S COUNTY OF DENTON S THIS REGIONAL WASTEWATER TREATMENT CONTRACT (Denton System Project) (the "Contract") made and entered into as of the 6 day of December , 19_90 (the "Contract Date"), by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the "District"), a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Constitution of the State of Texas, and the City of Argyle, Texas ("Argyle"). W I T N E S S E T H• WHEREAS, Argyle has requested that the District provide wastewater treatment service for the initial installment phase of its local wastewater collection and transportation system; and WHEREAS, the Denton County Water and Wastewater Study Regional Master Plan prepared in March, 1988 by Espey, Huston & Associates, Inc. recommends that regional wastewater treatment services for Argyle and certain other communities by provided through the City of Denton System; and WHEREAS, Argyle, as a Participating Member as herein defined, is a governmental entity which has taken and is taking definitive steps to provide a retail utility service to its customers and is currently operating under the Constitution and laws of the State of Texas; and WHEREAS, the District has contracted with the City of F ~ Denton for wastewater treatment services based on interim use of surplus capacity and the option for future participation in expanded treatment capacity; and WHEREAS, Argyle proposes to finance, construct, own and operate the outfall pipeline (Trunk Sewer) to transport the wastewater from the Argyle collection system to the Denton wastewater interceptor in Hickory Creek; and WHEREAS, the District will function as the planning and managing agency for the regional wastewater treatment service provided Argyle, including the responsibility to assure permanent and continuing capability for wastewater treatment whether such service is provided through, or separate from, the City of Denton system; and WHEREAS, Argyle proposes to construct the pipeline, pump station, metering facilities and associated improvements described in an engineering report entitled " , 1990"; and WHEREAS, the District agrees that Argyle shall continue to own and operate the internal wastewater collection and pumping facilities and the outfall pipeline (Trunk Sewer), and Denton shall own and operate the pipelines and treatment works which are to be used for providing the interim services provided for herein; and WHEREAS, the Parties hereto acknowieage LnaL L/LIICL entities may become parties to the regional wastewater treatment services provided by the District through the City of -2- 063lx P I Denton System; and WHEREAS, it is expected that Argyle will issue an installment of bonds to provide funding to construct the facilities necessary to collect, transport and measure wastewater from Argyle to the Point of Entry; and WHEREAS, Argyle desires to maintain control over and access to its outfall line (Trunk Sewer) and to serve retail customers along the route of the Trunk Sewer; and NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the District agrees to provide wastewater treatment services of the System to Argyle under this Contract, subject to the terms and conditions hereinafter set forth, to-wit: ARTICLE I Definitions The following terms and expressions as used in this Contract, unless the context clearly shows otherwise, shall have the following meanings: 1. "Additional Participating Member" means any party other than Argyle with which the District makes a contract similar to this Contract. 2. "Administrative Payment" means the amount of money to be paid to the District by each of the Contract Members during each Annual Payment Period as its proportionate share of administration and planning expenses of the District, which expenses are unrelated to the operating costs of any contract or capital projects managed by the District for specific -3- 0631x entities. 3. "Adjusted Annual Payment" means the Annual Payment as adjusted during or after such Annual Payment Period, as provided by this Contract. 4. "Annual Payment" means the amount of money to be paid to the District by each of the Participating Members during each Annual Payment Period as its proportionate share of the Annual Requirement. 5. "Annual Payment Period" means the District's Fiscal Year, which currently begins on October 1 of each calendar year and ends on September 30 of the next calendar year, and the first Annual Payment Period under this Contract is estimated to be for the period of October 1, 1990 through September 30, 1991, but may be for a partial year. 6. "Annual Requirement" means the total amount of money required for the District to pay all Operating and Maintenance Expenses of the System, all as further described herein. 7. "District" means the Upper Trinity Regional Water District, a conservation and reclamation district pursuant to Article XVI, Section 59 of the Constitution of the State of Texas created by the Texas Legislature in 1989 by passage of House Bill 3112. 8. "Board" means the governing board of the District. 9. "Board members" means a member or members of the Board. 10. "B.O.D." (denoting Biochemical Oxygen Demand) -4- 063lx I i means the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedure in five days at 20*c., expressed in milligrams per liter. 11. "Bond Resolution" means any resolution of the District which authorizes any Bonds. 12. "Bonds" means all bonds hereafter issued by the District and the interest thereon, to acquire and construct the System (including all bonds issued to complete the acquisition and construction of the System), and/or all bonds issued subsequently to improve and/or extend the System, and any bonds issued to refund any Bonds or to refund any such refunding bonds. 13. "Contract Member" means one or more, as the case may be, of the entities that contract with the District to retain the option to become a Participating Member. 14. "County" means Denton County, Texas. 15. "Customer" means any wholesale user of the wastewater services provided by the District which user provides r etail utility service within its boundaries. 16. "Customer Advisory Council" or "Council" means the committee to be created to consult with and advise the District with respe ct to the System as provided in this Contract. 17. "gpd" means gallons per day. 18. "Garbage" means solid wastes from the preparation, cooking, and dispensing of food, and from handling, storage, and sale of produce. 19. "Grease" means fats, waxes, oils, and other -5- 063lx similar nonvolatile materials in wastewater. 20. "Industrial User (IU)" means any person, including but not limited to, any individual, firm, partnership, corporation, association, or any other group or combination acting as a unit, or any other legal entity, who discharges or desires to discharge industrial wastes into the System. 21. "Infiltration water" means rainwater or other water which leaks into a sewer.' 22. 40mg/1" means milligrams per liter. 23. "Operation and Maintenance Expenses" means all costs and expenses of operation and maintenance of the System including (for greater certainty but without limiting the generality of the foregoing) repairs and replacements for which no special fund is created in the Bond Resolutions, operating personnel, the cost of utilities, the costs of supervision, engineering, accounting, auditing, legal services, supplies, services, administration of the System, including the District's general overhead expenses attributable to the System, insurance premiums,. equipment necessary for proper operation and maintenance of the System, and payments made by the District in satisfaction of judgments resulting from claims .not covered by the District's insurance arising in connection with the operation and maintenance of the System. The term does not include depreciation. 24. "Participating Member" means one or more, as the case may be, of the governmental entities which provides retail utility service within its boundaries that contracts pursuant -6- 0631x to this contract for the acquisition, construction, improvement, enlargement, and payment of the System to be financed from time to time by the District. 25. "pH" means the common logarithm of the reciprocal of the weight of hydrogen ions in grams per liter of solution. 26. "Project" means the contracts and contractual responsibilities established pursuant to this Contract as may be necessary to provide the services committed herein through the City of Denton Wastewater Collection and Treatment System. 27. "POTW" means a Publicly Owned Treatment Works as defined in 40 CFR 403. 28. "Properly Shredded Garbage" means garbage that has been shredded to such degree that all particles will be carried freely under the flow conditions normally prevailing in public sewers, with no particle greater than 1/2 inch in any dimension. 29. "Significant Industrial User (SIU)" means any industrial user who is connected or desires to connect to a governmental entity's domestic wastewater collection system and meets at least one of the following criteria: (i) Average industrial wastewater discharge rate greater than 50,000 gpd. (ii) BOD and/or suspended solids concentrations in industrial wastewater greater than 250 mg/1. (iii) Industrial category regulated by National Pre-treatment Standards as promulgated by the United States Environmental Protection Agency. 30. "Suspended Solids" means solids that either float on the surface or are in suspension in water, sewage, or other liquids, and which are removable by laboratory filtering, expressed in milligrams per liter. -7- 063lx 31. "State" means the State of Texas. 32. "System" means the regional wastewater system, not including Argyle's Trunk Sewer, and all improvements and additions to and extensions, enlargements thereto, and replacements thereof which are deemed necessary and feasible by the District in order to receive, treat, and dispose of Wastewater from any Participating Member receiving service through the City of Denton Wastewater System under similar contracts as this one and to comply with the requirements of the regulatory agencies of the State of Texas and the United States of America. Said term does not include any facilities acquired or constructed by the District (i) with the proceeds from the issuance of "Special Facilities Bonds," which are hereby defined as being revenue obligations of the District which are not secured by or payable from payments made under this Contract and similar contracts with Additional Participating Members, and which are payable solely from other sources, or (ii) for Customers not receiving service through the City of Denton Wastewater System. 33. "Total Toxic Organics" means the sum of all detected concentrations greater than 10 micrograms per liter for all organic compounds classified as priority pollutants by the United States Environmental Protection Agency. 34. "Trunk Sewer" means any sewer in which sewage from collecting and lateral sewers is received and conveyed to the System. 35. "Wastewater" means sewage, industrial waste, -8- 0631x municipal waste, recreational waste, and agricultural waste, as defined in the Texas Water Code, together with Properly Shredded Garbage and such Infiltration Water that may be present. ARTICLE II Board Representation 1. The Board of Directors shall be composed of those members that were designated by the legislation creating the District, plus one member appointed by the governing body of each Contract Member, each Participating Member and the County of Denton. Terms of members designated in the legislation shall expire June 16, 1991. Denton County, acting through its Commissioners Court, shall appoint one member to the Board and may, upon the approval of the Board, appoint one additional member to the Board if the Board deems such additional appointment to be in the best interests of the District. 2. Members of the Board appointed by the governing body of Participating Members shall be entitled to vote on all matters coming before the Board. Members of the Board appointed by the governing body of Contract Members shall be entitled to vote on all matters before the Board except those matters that require a weighted vote. The Board shall establish rules for the implementation of a system of weighted votes for matters concerning authorization of and financial commitments for capital projects. 3. Members of the Board shall serve staggered terms in accordance with procedures established by the Board; -9- 0631x provided, however, that no Board member shall serve for a term in excess of four (4) years. Members of the Board may serve consecutive terms. 4. The Board may establish a classification of ex-officio members who will not be voting members of the Board but who will have such other duties and responsibilities as determined by the Board. ARTICLE III Section 3.01. Consulting Engineers; Construction of System. The District and the Participating Members agree that the District will choose the Consulting Engineers for the System and may change Consulting Engineers at the option of the District. The District may issue its Bonds, payable from and secured by Annual Payments made pursuant to contracts with the District, to acquire, construct, extend, enlarge, repair, renovate, equip and otherwise improve the System, and agrees that such improvement will be made in general accordance with generally accepted engineering practices. Each Bond Resolution of the District shall specify the exact principal amount of the Bonds to be issued thereunder, which shall mature within the maximum period, and shall bear interest not exceeding the maximum allowable rates, permitted by law, and each Bond Resolution shall create and provide for the maintenance of a revenue fund, an interest and sinking fund, a debt service reserve fund, and any other funds deemed advisable, all in the manner and amounts as provided in such Bond Resolution. Section 3.02. Ouantity and Points of Entry. (a) Except -10- 0631x for reasonably small fringe areas which could be more effectively served by other means, Argyle agrees that during each Annual Payment Period while the system is in operation, it shall be obligated to transport and discharge into the System at its Point of Entry, all of the Wastewater which is generated and collected within its boundaries, subject to the restrictions hereinafter stated. (b) The combined maximum hourly rate at which Wastewater is discharged by Argyle at its Point of Entry shall not exceed a rate which, if continued for a period of twenty-four hours would equal 3.5 times the estimated average daily contributing flow of Wastewater for the then current Annual Payment Period. The total quantity of Wastewater discharged into the System shall never exceed the amount which the System is capable of receiving, treating, and disposing, unless approved by the Board, subject to the terms and conditions to be established by the District. Notwithstanding the foregoing, no Participating Member shall ever make any discharge into the System which would cause the System to be overloaded or be in violation of its permits from the State and/or the United States of America. (c) Wastewater meeting the quality requirements of Section 3.03 of this Contract will be received into the System at the Point of Entry, shown on Exhibit A hereto, which Exhibit is attached hereto and incorporated herein for all purposes, for Argyle, or at such other Points of Entry that may be established by mutual agreement between the District and -11- 0631x I Argyle, if such other Points of Entry are determined by the District to be economical and beneficial to the System, and if Argyle pays the costs thereof. (d) It is the intention of the parties hereto that the System shall be acquired, constructed, extended, and improved so that at all reasonable times it will be capable of receiving, transporting, treating, and disposing of all eligible Wastewater generated within the collection system of each Participating Member which such Participating Member delivers to its Point of Entry. With prior written approval of Argyle, the District will from time to time issue its Bonds in such amounts as are, within its judgment and discretion, sufficient to achieve such results. Section 3.03. ua 't . The obligation of the District to receive into the System such Wastewater depends upon compliance by Argyle with the provisions of this Section. General Objectives of Quality Recuirements. In order to permit the District to properly treat and dispose of Argyle's Wastewater; to protect the public health; and to permit cooperation with other agencies which have requirements for the protection of the physical, chemical, and bacteriological quality of public water and water courses, and to protect the properties of the System, Argyle agrees that: (a) Admissible Discharges into District's System. Discharges into the System shall consist only of Wastewater and other waste free from the prohibited constituents listed on Exhibit B, and limited in B.O.D., Suspended Solids, dissolved -12- 0631x sulfides, and pH as provided in said Exhibit B, which is attached hereto and incorporated herein for all purposes. (b) Prohibited Discharge Limitations Subject to ange. Notwithstanding the foregoing provisions of this Section, the parties hereto agree and understand that the District has a responsibility to operate the System in a cost-effective, environmentally safe manner and that federal and state regulatory agencies periodically modify standards on prohibited discharges; therefore, revisions to, additions to, or deletions from the items listed or incorporated in this Section may become necessary in the future to comply with the requirements applicable to the District and such revised standards. It is the intention of this Contract that prohibited discharge requirements be reviewed periodically by the District and revised in accordance with the latest standards of any federal or state regulatory agency having jurisdiction over such standards. Any required revisions shall be made and written notice thereof given to each Participating Member. Each Participating Member shall be responsible for integrating such changes into the local industrial waste ordinance, resolution or regulation and notifying all affected users of the change within ninety days following written notice to the Participating Member of such changes. Any such change shall automatically be incorporated in Exhibit B hereto, to the extent applicable, unless an objection from a Participating Member shall be filed with the District within 60 days, in which case the District shall hold a hearing relating to such -13- 063lx change or changes prior to incorporating such change or changes in Exhibit B. (c) To determine normal quality of Wastewater, the District will collect samples of Wastewater at each Point of Entry and cause same to be analyzed in accordance with testing procedures as set forth in the latest edition of standard 14ethods of Examination of Water and Wastewater, published by American Public Health Association, Inc., or by such other procedures as may be established or authorized by the Board. Composite samples may be taken monthly, or at other intervals as necessary to determine Wastewater quality. Such Wastewater shall not exceed the limits of concentration specified in Exhibit B for Normal Wastewater. Should the analysis disclose concentrations higher than those listed, the District immediately will inform Argyle of the violation of this Section, and such discharges shall cease immediately. However, with the approval of the District, Wastewater with concentrations of BOD and TSS greater than specified above may be discharged by Argyle into the System on an emergency and temporary basis, subject to the payment of a surcharge (in addition to all other payments required by this Contract), which surcharge shall be determined by the District and shall be in an amount sufficient to cover and pay for all additional costs of transportation, treatment, and disposal related to such excess concentration discharges. Section 3.04. Metering of Wastewater. Argyle agrees to furnish and install at its own expense at the Point of Entry , -14- 0631x standard type devices and equipment and related facilities for measuring and sampling all Wastewater to be discharged into the System. The design and construction of such meters shall conform to the requirements of the District, or its designee, and plans therefore shall be submitted to the District for. prior approval. Upon completion of construction and acceptance by the District, the ownership of the meter facilities shall be conveyed to the District or its designee. The District, or its designee, will operate and maintain at its expense the measuring equipment and devices so installed, accepted and conveyed. Such meters and other equipment shall remain the property of the District or its designee. The District or its designee may from time to time inspect, calibrate, and adjust its meters as necessary to maintain accurate measurements of the Wastewater entering the System. Argyle shall have access to the metering equipment at all reasonable times for inspection and examination, but the reading, calibration, and adjustment thereof shall be done only by employees or agents of the District or its designee. If requested, Argyle may witness such reading, calibration and adjustment of meters. All readings of meters will be entered upon proper books of record maintained by the District or its designee. Argyle may have access to said record books during normal business hours. Argyle may request, in writing, that the District calibrate its meter or meters. The District will make or cause to be made up to two (2) such calibrations in any fiscal year at no charge to the requesting Participating Member. All requested -15- 063lx calibrations in excess of two (2) will be made at the expense of the requesting Participating Member, except when the accuracy of the meter is beyond the limits specified herein, in which case the District shall bear such expense. If, for any reason, any meter is out of service or out of repair, or if, upon any test, the percentage of inaccuracy of any meter is found to be in excess of five (5%) percent, registration thereof shall be corrected for a period of time extending back to the time when such inaccuracy began, if such time is ascertainable, and if 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. Any Participating Member may, at its option and its own expense, install and operate a check meter to check each meter installed by the District, but the measurement for the purpose of this Contract shall be solely by the District's meters, except as in this Section specifically provided to the contrary. All such check meters shall be of standard make, shall be installed in a location approved by the District or its designee, and shall be subject at all reasonable times to inspection and examination by any employee or agent of the District, but the reading, calibration, and adjustment thereof shall be made only by Argyle, except during any period when a check meter may be used under specific written consent by the District for measuring the amount of Wastewater delivered into the System, in which case the reading, calibration, and adjustment thereof shall be made by -16- 0631x the District or its designee. Section 3.05. Unit of Measurement. The unit of measurement for Wastewater discharged into the System hereunder shall be 1,000 gallons, U.S. Standard Liquid Measure. Section 3.06. Title to and Liability for Damages and Responsibility for Treatment and Disposal of Wastewater. Liability for damages arising from the transportation, delivery, reception, treatment, and/or disposal of all Wastewater discharged into the System hereunder shall remain Argyle's to the Point of Entry, and title to such Wastewater shall be in the name of Argyle to the Point of Entry, and upon passing through Point of Entry, title to such Wastewater and liability for such damages shall pass to the District. As between the District and Argyle, each party agrees to indemnify and to save and hold the other party harmless from any and all claims, demands, causes of action, damages, losses, costs, fines, and expenses, including reasonable attorney's fees, which may arise or be asserted by anyone at any time on account of the transportation, delivery, reception, treatment, and/or disposal while title to the Wastewater is in such party, or on account of a prohibited discharge by a Participating Member. The District has the responsibility as between the parties for the proper reception, transportation, treatment, and disposal of all Wastewater discharged into the System, but not for prohibited discharges by any party at any Point of Entry. The District may after treatment of such Wastewater reclaim and sell the water. Any net revenues and other benefits of such -17- 0631x reclamation and sale shall be fairly apportioned among the members and customers of the District. Section 3.07. Reporting Requirements. (a) Approximately thirty days after the end of each Annual Payment Period, Argyle shall furnish in writing to the District the following information: (1) The number of active domestic sewer connections tributary to the System and which will be served by the System; (2) The number of commercial and business sewer connections to be served by the System; (3) The number of industrial connections to be served by the System, with name and location of each. (4) An estimate of the projected annual wastewater flow into the System by the Participating Member for the next five (5) years. The purpose of this provision is to permit the District to accumulate statistical data which will enable it to plan for adequate service and facilitate plans for betterment and future facilities expansion. (b) Industrial Waste. The effects of certain types of industrial waste upon sewers and sewage treatment processes are such as to require that careful consideration be made of each industrial connection. To accomplish the purpose of the National Industrial Waste Control Program, when Argyle has an industrial customer, Argyle shall obtain approval by the U.S. Environmental Protection Agency of it's industrial waste pretreatment program or contract with the District or its -18- 0631x designee to administer the program for Argyle. If Argyle chooses to administer its own program, it shall regulate by permit the discharge of industrial waste generated by a SIU into its sewer system, and will authorize discharge of industrial waste into its sewers subject to the general provision that no harm will result from such discharge and subject to the filing by applicant industry of a statement, copy of which shall be forwarded to the District, containing the following information: (1) Name and address of applicant; (2) Type of industry; (3) Total quantity of plant waste produced; (4) Quantity of plant wastes proposed to be discharged; (5) Typical analysis of the waste; (6) Type of pre-treatment proposed. To facilitate inspection and control of industrial waste, Argyle will require industries to separate industrial waste from sanitary sewage until such industrial waste has passed through a monitoring portal which shall be located so as to be accessible at all times to inspectors of Argyle and the District. If inspection indicates that damage might result from the discharge the permit shall be revoked unless and until the industry promptly establishes acceptable remedial measures. As necessary and indicated, the District will collect and analyze samples of all Wastewater in accordance with Section 3.03 at each Point of Entry. Such Wastewater shall not contain prohibited constituents or exceed the limits -19- 063lx of concentration specified in Section 3.03 of this Contract. Should the analysis disclose prohibited constituents or concentrations higher than those stipulated the District immediately will inform Argyle of such unauthorized wastes. It shall be the obligation of Argyle to require the offending originator of said waste to immediately initiate and undertake remedial pre-treatment or other legal means before further discharge into such Participating Member's sewers. (c) Ordinances Resolutions, Orders. Argyle agrees that it has enacted or will enact on a timely basis ordinances, resolutions, or orders, as appropriate, as necessary to include the following provisions: (1) For each existing and future SIU, Argyle shall require said user to complete and submit a permit application containing information specified in a sample application form to be furnished by the District. The District shall be provided a copy of the permit application within thirty days after receipt by Argyle. The District shall provide written comments to Argyle regarding said application within thirty days of receipt. Failure to comment shall be construed as concurrence by the District. After approval of the Permit Application by Argyle, Argyle shall issue a discharge permit containing standard requirements as specified in a sample permit form to be furnished by the District. Said discharge permit shall be required of all SIU's before said user will be allowed to discharge industrial wastes into the sewage system. The -20- 0631x District reserves the right upon notice to Argyle to review all Permit Applications and the proposed permit before issuance. In the absence of such notice, such review and issuance shall be accomplished by Argyle without the necessity for District review and approval, subject to periodic inspection of records by the District. It is mutually agreed that unless Argyle obtains approval by the U.S. Environmental Protection Agency of its Industrial Pretreatment Program that it will contract with the District or its designee to administer said pretreatment program and will pay the cost of such program, including all monitoring, sampling and testing or will cause said cost to be paid by the affected industry. (2) Argyle shall require Significant Industrial Users to comply with applicable Federal Categorical Pre-treatment Standards as well as any applicable state and local standards. (3) Argyle shall maintain certain information contained in permit applications as confidential at SIU's request. (4) Argyle shall not allow a user to employ dilution as a means of reducing pollutant concentrations in an SIU's waste stream. (5) Argyle and the District or its designee shall be authorized to enter SIU premises at any time for independent monitoring, inspection, or review of applicable records to determine compliance. (6) Argyle shall develop and require adherence to SIU compliance schedules. -21- 063lx (7) Argyle shall require self-monitoring and reporting at SIU's expense. (8) Argyle shall choose or approve laboratory to analyze industrial wastes. (9) Argyle shall require SIU's to pay applicable fees for: (i) sampling and testing to determine compliance; (ii) disconnection/reconnection of service resulting from noncompliance; (iii) excess concentrations above the criteria for Normal Wastewater; (iv) additional costs incurred by Argyle or the District in transporting or treating wastes; and (v) filing, revision, or renewal of Permit Application (10) Argyle shall provide prompt notification to the permit holder and the District for instances of violation. (11) Argyle shall deny/revoke permit, disallow/disconnect service, assess civil or criminal penalties, and seek other available legal and equitable remedies against SIU for: (i) discharge to sewerage system resulting in violation of applicable POTW discharge permit conditions; -22- 0631x (ii) hazard to health or life of POTW personnel or users of receiving waters; (iii) violation of any applicable ordinance or regulation; and (iv) false information transmitted to Argyle through Permit Application, monitoring reports, etc.; Argyle shall furnish to the District all documents and records, in addition to those outlined herein, as necessary to demonstrate compliance by all industries. Section 3.08. Other Contracts. (a) The District reserves the right to enter into contracts to provide the Wastewater services of the System to Additional Participating Members under contracts similar to this Contract. Each contract with any Additional Participating Member shall comply with the requirements of this Contract, shall substantially restate the essential provisions of this Contract, and shall be structured to be similar hereto to the fullest extent applicable and practicable, with such additions or changes as are necessary to meet the actual circumstances, with the effect that each Additional Participating Member will substantially adopt the provisions of this Contract, as supplemented and necessarily changed by its contract. However, the District shall not obligate itself to receive Wastewater into the System from a future Additional Participating Member if, in the judgment and discretion of the District, such obligation would jeopardize the District's ability to meet its obligation to receive, -23- 0631x transport, treat and dispose of Wastewater discharged into the system by prior Participating Members, including specifically Argyle. (b) It is further recognized and agreed that in the future the District may provide services of the System to parties which are not Additional Participating Members, provided that all such services of the System to parties which are not Additional Participating Members shall in all respects be subordinate to the prior rights of the Participating Members, and all contracts or other arrangements relating to such services shall recognize, and be made subordinate to, such prior rights. (c) The parties hereto recognize and acknowledge that it is the policy and practice of the District that any other party that desires to receive service from the System shall contract directly with the District to become a Customer of the District or a Participating Member. However, in exceptional circumstances Argyle may propose, and with the approval of the District, may negotiate and enter into subcontracts with another city or other entity for wastewater service. Any such Wastewater to be discharged into the System under such subcontract shall be generated within the planned boundaries of the System, but outside the boundaries of Argyle, and shall be discharged into Argyle's sewers, to be transported into the System at Argyle's Point of Entry along with Argyle's Wastewater. In such case the additional Wastewater shall be regarded as being Argyle's Wastewater for all purposes of this -24- 063lx Contract. If such arrangement is approved by the District, the consideration as between or among such cities or other entities may be determined by such parties, but no such transaction shall relieve Argyle of its obligations to the District under the terms of this Contract. (d) The District reserves the right to contract with Contract Members. Section 3.09. Customer Advisory Council. (a) The governing Body of each of the Participating Members annually may appoint one of the members of its governing body or one of its employees as a member of the Customer Advisory Council for the District, which Council is hereby created and established. The Council, at its first meeting, shall elect a Chairman, a vice Chairman, and a Secretary. The Council may establish bylaws governing the election of officers, meeting dates and other matters pertinent to its function. The Council shall consult with and advise the District and the Board with regard to the following matters pertaining to the District: (i) The issuance of Bonds; (ii) The operation and maintenance of the District and the System; (iii) Contracts for services to Customers; (iv) The District's Annual Budget, prior to its submission to the Board; (v) Review of the District's annual audit; (vi) All other pertinent matters relating to operation of the District and the System; and -25- 0631x (vii) Improvements and extensions of the System. The Council shall have access to and may inspect at any reasonable times all physical elements of the System and all records and accounts of the District pertaining to the System. (b) The term of membership on the Council shall be at the pleasure of each governing body represented, respectively, and each member shall serve until replaced by such governing body. All expenses of the Council in discharging its duties under this Section shall be considered as an Operation and Maintenance Expense of the District. Section 3.10. Fiscal Provisions. (a) Subject to the terms and provisions of this Contract, the District will provide or contract for and pay for the cost of the System. It is acknowledged and agreed that payments to be made under this Contract and similar contracts with Additional Participating Members, if any, will be the primary source available to the District to provide the Annual Requirement. In compliance with the District's duty to fix and from time to time to revise the rates and charges for services of the System, the Annual Requirement may change from time to time. Each such Annual Requirement shall be allocated among the Participating Members as hereinafter provided, and the Annual Requirement for each Annual Payment Period shall be provided for in each Annual Budget and shall at all times be not less than an amount sufficient to pay or provide for the payment of: (A) An amount equal to the amount paid or payable for all Operation and Maintenance Expenses; and -26- 0631x (B) An amount deemed appropriate and necessary by the Board to be required as a special reserve for operation and maintenance expenses of the System or for capital improvements. Any such reserve shall be used as operating capital for Operation and Maintenance Expenses, for emergency expenses and a fluctuating reserve for additions to or shortfalls in the annual revenues of the System. The normal level of such reserve shall not exceed 25% of the annual Operation and Maintenance Expenses (estimated to be approximately three (3) months expenses). Section 3.11. Annual Budget. Each Annual Budget for the System shall always provide for amounts sufficient to pay the Annual Requirement. The Annual Budget for the System for all or any part of the Annual Payment Period during which the System is first placed into operation shall be prepared by the District based on estimates made by the District. On or before June 15 of each year after the System is first placed in operation, the District shall furnish to each Participating Member a preliminary estimate of the Annual Payment required from each Participating Member for the next following Annual Payment Period. Not less than forty days before the commencement of the Annual Payment Period after the System is first placed into operation, and not less than forty days before the commencement of each Annual Payment Period thereafter, the District shall cause to be prepared as herein -27- 0631x provided its preliminary budget for the system for the next ensuing Annual Payment Period. A copy of such preliminary budget shall be filed with each Participating Member for review before action by the Board. Any Participating Member may submit comments about the preliminary budget directly to the Board. The Board may adopt the preliminary budget or make such amendments thereof as to it may seem proper. The budget thus approved by the Board shall be the Annual Budget for the next ensuing Annual Payment Period. The Annual Budget (including the first Annual Budget) may be amended by the District at any time to transfer funds from one account or fund to another account or fund so long as such transfer will not increase the total budget. The amount for any account or fund, or the amount for any purpose, in the Annual Budget may be increased through formal action by the Board even though such action might cause the total amount of the Annual Budget to be exceeded; provided that such action shall be taken only in the event of an emergency or special circumstances which shall be clearly stated in a resolution at the time such action is taken by the Board. Section 3.12. Pa,, ents by Participating Members. (a) For the Wastewater services to be provided to the Participating Members under this Contract, each of the Participating Members agrees to pay, at the time and in the manner hereinafter provided, its proportionate share of the Annual Requirement. Each of the Participating Members shall pay its part of the Annual Requirement for each Annual Payment Period directly to -28- 0631x the District, in monthly installments in accordance with the schedule of payments furnished by the District, as hereinafter provided. (b) Each Participating member shall pay a proportionate share of the Annual Requirement according to the relative flow contribution it makes to the total System flow. The District shall estimate its cost per 1,000 gallons of flow and shall establish a price per 11000 gallons of flow for purposes of determining the monthly payment to be made by each Participating Member. (c) It is provided, however, that in estimating costs for services, the District is specifically authorized to include in such estimate of costs reasonable contributions to reserve funds as provided in Section 3.10(B). This fiscal policy is expressly approved by the Participating Members and is deemed by the parties hereto to be beneficial in the fiscal management of the System, and will assure the timely availability of funds even under unexpected circumstances. Upon receipt during any Annual Payment Period of an amount sufficient to meet the then current Annual Budget of the System for the remainder of the then current Annual Payment Period, the District shall deposit subsequent revenues received into appropriate reserve or contingency accounts, unless otherwise specifically hereinafter provided in the event of unexpected or additional Annual Budget requirements. If there is a shortfall in revenues, the District may withdraw from the reserves, adjust the Annual Requirement, revise the payment schedule or do any combination -29- 0631x thereof. (d) All such payments for each Annual Payment Period shall be made in accordance with a written schedule of payments for the appropriate Annual Payment Period which will be supplied to each of the Participating Members by the District. Such schedule of payments may be based on the use of monthly flow volumes as determined by meter readings or estimates of flow or may be based on other factors determined by the District, but in no case shall a Participating Member's Annual payment requirement exceed its pro rata share of the System cost. At the close of each Annual Payment Period the District shall determine the actual metered number of gallons of contributing flow of Wastewater discharged into the System by each Participating Member during said period and make adjustments in billings that may be indicated. (e) Notwithstanding the foregoing, the Annual Requirement, and each Participating Member's share thereof, shall be redetermined, after consultation with each of the Participating Members, at any time during any Annual Payment Period, to the extent deemed necessary or advisable by the District, if: (i) The District commences furnishing services of the System to an Additional Participating Member or Participating Members: (ii) Unusual, extraordinary, or unexpected expenditures for operation and maintenance expenses are required which are not provided for in the -30- 0631x District's Annual Budget or reserves for the System; (iii) Operation and maintenance expenses of the System are substantially less than estimated; (iv) The City of Argyle authorizes the District to issue Bonds; or (v) The District receives either significantly more or significantly less revenues or other amounts than those anticipated. (f) During each Annual Payment Period, all revenue received by the District from providing services of the System to parties which are not Participating Members shall be used to help cover the costs of the System. All payments made by Contract Members and all surcharges collected from any Customer or Participating Member under Section 3.03 of this Contract shall be used to cover other costs of the System and of the District. Under any of the provisions of this Subsection (f), the revenues, payments and surcharges shall not be used to pay expenses which are the obligation of Argyle under this Contract. (g) Each Participating Member hereby agrees that it will make payments to the District required by this Contract within 20 days of the date a bill for service is rendered. If any Participating Member at any time disputes the amount to be paid by it to the District, such complaining party shall nevertheless promptly make such payment or payments, but if it is subsequently determined by agreement or court decision that such disputed payments made by Argyle should have been less, or -31- 063lx more, the District shall promptly revise and reallocate the charges to Argyle in such manner that Argyle will recover its overpayment or the District will recover the amount due it. All amounts due and owing to the District by each Participating Member or due and owing to any Participating Member by the District shall, if not paid when due, bear interest at the rate of ten (10) percent per annum from the date when due until paid. (h) The District shall, to the extent permitted by law, discontinue the services of the System to any Participating Member which remains delinquent in any payments due hereunder for a period of sixty days, and shall not resume such services while such Participating Member is so delinquent. However, the District shall pursue all legal remedies against any such delinquent Participating Member to enforce and protect the rights of the District, the other Participating Members, and the holders of the Bonds. The delinquent Participating Member shall not be relieved of the liability to the District for the payment of all amounts which would have been due hereunder had no default occurred. If any amount due and owing the District by any Participating Member is placed with an attorney for collection, such Participating Member shall pay to the District all attorneys fees, in addition to all other payments provided for herein, including interest. (i) If, during any Annual Payment Period, any Participating Member's Annual Payment is redetermined in any manner as provided or required in this Section, the District -32- 063lx will promptly furnish such Participating Member with an updated schedule of monthly payments reflecting such redetermination. Section 3.13. Miscellaneous Provisions. (a) The District will continuously operate and maintain the System in an efficient manner and in accordance with good business and engineering practices, and at reasonable cost and expense. (b) Argyle agrees to carry fire, casualty, public liability, and other insurance on the Trunk Sewer and other facilities used to pump and transport the wastewater to the System for purposes and in amounts which ordinarily would be carried by a privately owned utility company owning and operating such facilities, except that Argyle shall not be required to carry liability insurance except to insure itself against risk of loss due to claims for which it can, in the opinion of its legal counsel, be liable under the Texas Tort Claims Act or any similar law or judicial decision. Such insurance will provide, to the extent feasible and practicable, for the restoration of damaged or destroyed properties and equipment, to minimize the interruption of the services of such facilities. (c) It is the intent of the parties that the Project will be placed in operation as soon as practicable, and Argyle agrees to proceed diligently with the design and construction of the Trunk Sewer and metering facilities and that the District will expedite the Project to meet such schedule, subject to the other terms and conditions in this Contract. If Argyle is unable to, or is prevented from, completing the Trunk -33- 0631x Sewer in a reasonable period of time, this Contract is subject to renegotiation by all parties thereto. (d) Argyle represents and covenants that all payments to be made by it under this Contract shall constitute reasonable and necessary operating expenses of its sewer system within the scope of the provisions of Vernon's Ann. Civ. St. Article 1113, and that all such payments will be made from the system revenues or any other lawful sources. Argyle represents and has determined that the services to be provided by the System are necessary and essential to the present and future operation of its City and wastewater system, and that the System constitutes the best long-term method for discharging, receiving, treating, and disposing of its wastewater, and, accordingly, all payments required by this Contract to be made by Argyle shall constitute reasonable and necessary operating expenses of its system, respectively, as described above, with the effect that the obligation to make such payments from any lawful source, including revenues of such system, shall have priority over any obligation to make any payments from such lawful source, including revenues of such system, of principal, interest, or otherwise, with respect to all bonds or other obligations heretofore or hereafter issued by Argyle. (f) Argyle agrees throughout the term of this Contract to continuously operate and maintain its sewer system and to fix and collect such rates and charges or taxes for sewer services to be supplied by its wastewater system as will -34- 0631x produce revenues in an amount equal to at least (i) all of the expenses of operation and maintenance expenses of such system or systems, including specifically its payments under this Contract, and (ii) all other amount as required by law and the provisions of the ordinance or resolutions authorizing its revenue bonds or other obligations now or hereafter outstanding, including the amounts required to pay all principal of and interest on such bonds and other obligations. (g) The District covenants and agrees that the moneys paid to it pursuant to this Contract will not be used for any purposes, except .those directly relating to the System. Each of the Participating Members covenants and agrees that it will not use or permit the use of the System in any manner that would cause the interest on any of the bonds of the District or of the-City of Denton to be or become subject to federal income taxation under the Code or any amendments thereto in effect on the date of issue of such bonds. (h) Each Participating Member hereby grants to the District without additional cost to the District, the perpetual use of the streets, easements, and rights-of-way under its control for the construction, operation, and maintenance of the System and the Project. . (i) The parties hereto acknowledge and agree to the Special Provisions which are set forth in Exhibit C hereto which Exhibit is incorporated herein for all purposes. Section 3.14. Eorce Maje= If by reason of force majeure any party hereto shall be rendered unable wholly or in -35- 0631x part to carry out its obligations under this Contract, other than the obligation of each Participating Member to make the payments required under Section 3.12 of this Contract, then if such party shall give notice and full particulars of such force majeure in writing to the other parties within a reasonable time after occurrence of the event or cause relied on, the obligation of the party giving such notice, so far as it is affected by such force majeure, shall be suspended during the continuance of the inability then claimed, but for no longer period, and any such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein shall mean acts of God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders of any kind of the Government of the United States or the State of Texas, or any Civil or military authority, insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply, or on account of any other causes not reasonably within the control of the party claiming such inability. Section 3.15. limitations and Conditions /Future Bonds. To provide the services and to perform the obligations contemplated in this Contract, it is the intent of both Argyle and the District to make interim use of surplus capacity in pipelines, treatment works and other facilities of City of -36- 0631x Denton. To that end, the District has entered into a contract with the city of Denton, a copy of which is incorporated herein as Exhibit D. It is expressly understood that the Denton Contract may require the District to participate with the City of Denton in the construction of expanded or additional pipelines, treatment works or additional facilities in order to assure the capability to transport and treat the wastewater to be discharged by Argyle into the System. The District retains the right and option to construct its own facilities or to contract with parties other than the City of Denton, if in the District's judgment such other facilities or contracts would allow the District to provide more dependable or economical service to Participating Members. If the District determines that it will be necessary to construct capital facilities in order to fulfill its obligations under this Contract, the District will notify Argyle and will discuss alternatives with Argyle. If the construction of such facilities requires the sale and issuance of bonds, it is understood and Argyle agrees that it will enter into an amended, acceptable contract with the District legally and factually sufficient to allow the District to issue the District's Bonds. The District will make its best and reasonable efforts to sell said Bonds. The District will make use of the temporarily surplus facilities of the City of Denton as long as such facilities are adequate, available and advantageous to the District and Argyle. However, because this Contract is for an extended period of time and because Argyle -37- 0631x desires assurance of service for the entire term of the Contract, the District reserves the right and recognizes its duty to take such action as may be necessary to fulfill the requirements of the Contract. Argyle recognizes and agrees that the District on behalf of Argyle and other Participating Members, may have to develop and implement plans not contemplated at the date of execution of this Contract. Accordingly, Argyle agrees to enter into an amended contract on reasonable terms as may be required to allow the District to fulfill its obligations hereunder. Otherwise, the District may declare the contract to be in default and to give reasonable notice of termination of service hereunder. Section 3.16. Term of Contract; Modification; Notices; state or Federal laws Rules Orders or Reaulations. (a) This Contract shall be effective on and from the Contract Date, and shall continue in force and effect until September 1, 2010; provided, however, the term of the Contract and the expiration date may be extended for a period not to exceed 20 years at the option of Argyle, upon the mutual agreement of Argyle and the District as to the terms and conditions. The District's obligation to provide the contracted for services shall commence from the date that the District, in writing, deems the System operational and functional to receive, treat, and dispose of wastewater from any Participating Member. This Contract constitutes the sole agreement between the parties hereto with respect to the Project. (b) Modification. No change, amendment or -38- 0631x modification of this Contract shall be made or be effective which will affect adversely the prompt payment when due of all moneys required to be paid by Argyle and no such change, amendment or modification shall be made or be effective which would cause a violation of any provisions of any susequent Bond Resolution. (c) Addresses and Notice. Unless otherwise provided herein, any notice, communication, request, reply or advice (herein severally and collectively, for convenience, called "Notice") herein provided or permitted to be given, made or accepted by any party to any other party must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated herein, from and after the expiration of three days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party to be notified. For the purposes of notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: If to the District, to: If to Argyle, to: Upper Trinity Regional City of Argyle Water District P.O. Box 1035 396 W. Main Street Argyle, Texas 76226 P. 0. Drawer 305 Lewisville, Texas 75067 -39- 0631x The parties hereto shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address by at least fifteen (15) days' written notice to the other parties hereto. (d) State or Federal Laws Rules Orders or Regulations. This Contract is subject to all applicable Federal and state laws and any applicable permits, ordinances, rules, orders and regulations of any local, 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. Section 3.17. Remedies Upon Default. It is not intended hereby to specify (and this Contract shall not be considered as specifying) an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by any party hereto and shall be cumulative. Recognizing however, that the District's undertaking to provide and maintain the services of the System is an obligation, failure in the performance of which cannot be adequately compensated in money damages alone, the District agrees, in the event of any default on its part, that each Participating Member shall have available to it the equitable remedy of mandamus and specific performance in addition to any other legal or equitable remedies (other than termination) which may also be available. Recognizing that failure in the performance of any Participating Member's obligations hereunder -40- 0631x could not be adequately compensated in money damages alone, each Participating Member agrees in the event of any default on its part that the District shall have available to it the equitable remedy of mandamus and specific performance in addition to any other legal or equitable remedies (other than termination) which may also be available to the District. Notwithstanding anything to the contrary contained in this Contract, any right or remedy or any default hereunder, except the right of the District to receive the Annual Payment which shall never be determined to be waived, shall be deemed to be conclusively waived unless asserted by a proper proceeding at law or in equity within two (2) years plus on (1) day after the occurrence of such default. No waiver or waivers of any breach or default (or any breaches or defaults) by any party hereto or of performance by any other party of any duty or obligation hereunder shall be deemed a waiver thereof in the future, nor shall any such waiver or waivers be deemed or construed to be a waiver of subsequent breaches or defaults of any kind, character or description, under any circumstance. Section 3.18. Severability. The parties hereto specifically agree that in case any one or more of the sections, subsections, provisions, clauses or words of this Contract or the application of such sections, subsections, provisions, clauses or words to any situation or circumstance should be, or should be held to be, for any reason, invalid or unconstitutional, under the laws or constitutions of the state or the United States of America, or in contravention of any -41- 0631x such laws or constitutions, such invalidity, unconstitution- ality or contravention shall not affect any other sections, subsections, provisions, clauses or words of this Contract or the application of such sections, subsections, provisions, clauses or words to any other situation or circumstance, and it is intended that this Contract shall be severable and shall be construed and applied as if any such invalid or unconstitu- tional section, subsection, provision, clause or word had not been included herein, and the rights and obligations of the parties hereto shall be construed and remain in force accordingly. Section 3.19. Venue. All amounts due under this Contract, including, but not limited to, payments due under this Contract or damages for the breach of this Contract, shall be paid and be due in Denton County, Texas, which is the County in which the principal administrative offices of the Authority are located. It is specifically agreed among the parties to this Contract that Denton County, Texas, is the place of performance of this Contract; and in the event that any legal proceeding is brought to enforce this Contract or any provision hereof, the same shall be brought in Denton County, Texas. IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this Contract to be duly executed in several counterparts, each of -42- 0631x which shall constitute an original, all as of the day and year first above written, which is the date of this Contract. UPPER TRINITY REGIONAL WATER DISTRICT BY:' Pre nt, rO of Directors ATTEST: Secretary, Board of Directors (AUTHORITY SEAL) APPROVED AS TO FORM AND LEGALITY: Counsel for the Dist ct CITY OF ARGYLE, TEXAS By: ayor, Ci y of Argyle, Texas ATTEST: City Secretary, City of Argyle, Texas APPROVED AS TO FORM: City Attorney City of Argyle, Texas -43- 0631x EXHIBIT A POINT OF ENTRY CITY OF ARGYLE CONTRACT EXHIBIT B Wastes Not Admissible. Gasoline; cleaning solvents; non emulsified oils and greases; mineral oils; ashes; cinders; sand; gravel; tar; asphalt; ceramic wastes; plastics; other viscous substances; feathers; hair; rags; metal; metal filings; glass; wood shavings; sawdust; unshredded garbage; toxic, corrosive, explosive or malodorous gases; acetylene generation sludge; cyanides or cyanide or cyanogen compounds capable of liberating hydrocyanic gas on acidification in excess of 2 mg/1 by weight as CN; radioactive materials which will permit a transient concentration higher than 100 microcuries per liter; emulsified oil and grease, exclusive of soaps, exceeding on analysis an average of 100 mg/l of ether-soluble matter; acids or alkalis having a pH value lower than 6.0 or higher than 10.0; and Wastewater containing specific pollutant concentrations in excess of any of the numerical limitations named hereunder shall be prohibited from discharge to the Systems Maximum Allowable Pollutant Concentration (ug11) Arsenic Barium Cadmium Chromium Copper Lead Manganese Mercury Nickel Selenium Silver Zinc Total Toxic Organics Requirements for Normal Wastewater 100 1,000 50 500 500 500 1,000 5 1,000 50 50 1,000 1,000 (a) Biochemical Owen Demand (B.O.D.). B.O.D. of Wastewater delivered to the System, as determined by standard methods, shall not exceed 250 mg/1. (b) Total Suspended Solids. Total Suspended Solids delivered to the System as determined by Standard Methods, shall not exceed 250 mg/1. (c) Hydrogen Ion Concentration (PH). The pH of Wastewater delivered to the System shall not be lower than 6.0 nor higher than 10.0. No acids shall be discharged into the System unless neutralized to a pH of 6.0 or more. (d) Hydrogen Sulfide Concentration. Dissolved sulfides in Wastewater at the point of delivery to the System shall not exceed 0.1 mg/1. -45- 0631x EXHIBIT C Special Provisions for the City of Argyle, Texas The provisions of this Exhibit C form a part of the Contract and are applicable to the District and to Argyle as if set forth in the body of the Contract. 1) In this Contract, the term "Trunk System" shall mean the wastewater outfall pipeline used to transport wastewater from Argyle's collection system to City of Denton's wastewater interceptor in Hickory Creek, which pipeline shall be constructed, owned, operated and maintained by, at the expense of and for the benefit of Argyle. 2) The District and Argyle agree that subject to the approval of any city having jurisdiction over such customer, Argyle may contract with retail customers along the route of the Trunk System at Argyle's expense. Unless otherwise agreed in writing, such customers shall be considered to be customers of Argyle whether in or out of the City of Argyle and Argyle shall take full responsibility for the wastewater quantity and quality and for enforcement of the provisions of this Contract. The flow for such customers shall be included in the flow metered at the Point of Entry and shall be included in all bills rendered to Argyle. 3) Performance of this Contract by both parties will necessarily be accomplished in phases and will require the utmost in cooperation, trust, goodwill and due diligence. Subsequent phases will require additional or amended agreements. Nonetheless, it is the intention and commitment of both parties that this Contract will provide the basis for long-term wastewater treatment services adequate for Argyle's future needs, growth and economic development. 4) Phase I is defined herein as the Project. Argyle has the responsibility under Phase I to construct, operate and maintain a Trunk System to connect to the Denton Interceptor in Hickory Creek to make available the services of the System as defined herein. The District has the responsibility to negotiate rates and charges with the City of Denton, to plan for future needs of Argyle, to coordinate the needs of services for Argyle with other Customers of the District and System, and upon notice from the City of Denton, to negotiate a Joint Development Contract for permanent treatment plant capacity for Argyle and other Participating Members of the System, and to represent Argyle's interest in regulatory proceedings as may be indicated. 5) The District acknowledges its duty under the Contract to carry out its responsibilities with due diligence and in a proficient manner so that the services provided will -47- 063lx be adequate and at reasonable costs. Argyle recognizes its duty to pay its prorata share of costs associated with the contract between the District and Denton, and to pay other direct expenses the District associated with providing the service provided for in this Contract, and together with all Participating Members, Contract Members and Customers of the District to pay a pro rata share of the general administrative and planning costs of the District. 6) Both parties acknowledge that "Denton County Water and Wastewater Study Regional Master Plan for the Year 2010" indicates an intention to serve a small area south and southwest of Argyle through a common wastewater line through Argyle connecting with the Denton Hickory Creek Interceptor. However, both parties agree that such service is not provided for in this Project. If such service is proposed at a future date, any use of the Trunk System being constructed by Argyle as part of this Project will require agreement by Argyle and appropriate compensation to Argyle. 7) Argyle agrees to use its lawful powers to require parties to connect to a wastewater collection system under reasonable rules as such collection system may be extended from time to time. -48- 0631x ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AN AMENDMENT TO THE EXISTING INTERIM WASTEWATER TREATMENT SERVICES CONTRACT BETWEEN THE CITY OF DENTON, TEXAS AND THE UPPER TRINITY REGIONAL WATER DISTRICT HERETOFORE EXECUTED ON NOVEMBER 20, 1990, EXTENDING THE TERM THEREOF FOR AN ADDITIONAL SIX MONTH PERIOD; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT; PROVIDING FOR RETROACTIVE EFFECT OF SAID AMENDMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, by Ordinance No. 90-186, passed by the City Council on November 20, 1990, the City Council authorized the Mayor to execute an "Interim Wastewater Treatment Service Contract Between the City of Denton, Texas and the Upper Trinity Regional Water District" (the "Contract"); thereafter the City of Denton (the "City") and the Upper Trinity Regional Water District (the "UTRWD") executed and entered into said Contract on November 20, 1990; and WHEREAS, the City and the UTRWD have operated under the terms and provisions of said Contract continuously since November 20, 1999. However, Article VIII., Section 8.1 of the Contract provides that the Contract will terminate on December 31, 1999; and WHEREAS, because the City and the UTRWD are currently negotiating the terms for a new wholesale wastewater treatment service contract, it is the mutual desire of the City and the UTRWD to extend the term of the Contract for an additional six (6) months, so that the Contract will continue in full force and effect and will terminate instead, on June 30, 2000; and the City and the UTRWD mutually desire that the existing Contract continue in full force and effect, without lapse, expiration, or interruption while their respective governing bodies approve and enter into an "Amended Interim Wastewater Treatment Services Contract Between the City of Denton and the Upper Trinity Regional Water District' (the "Amended Contract") providing for such six (6) month extension of time; and WHEREAS, the City Council deems it in the public interest to enter into the Amended Contract with the UTRWD to extend the current term of the "Contract" for an additional six (6) month period; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Manager is hereby authorized to execute an "Amended Interim Wastewater Treatment Services Contract Between the City of Denton and the Upper Trinity Regional Water District" substantially in the form of the Amended Contract attached hereto and incorporated herewith by reference. D n rzr7 1 SECTION 2. That the City Secretary is hereby directed to affix a copy of this Ordinance to Ordinance No. 90-186, and inscribe thereon the notation that the Amended Contract has been amended by the adoption of this Ordinance. SECTION 3. That this Amended Contract is hereby ratified, confirmed, and retroactively approved, and shall be effective from and after January 1, 2000, so that the Contract heretofore executed by the City and the UTRWD on November 20, 1990, shall remain and continue in full force and effect, without lapse or interruption. SECTION 4. That except as otherwise provided in Section 3 hereinabove, this Ordinance shall become effective immediately upon its pass age and approval. PASSED AND APPROVED this the ~t ~h day of 2000. JAC LLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY n By: S `Our Documents\OrdmancesM\UTRW D - COD - WW - Amend Agrmt Ord.doc PAGE 2 AMENDMENT TO THE EXISTING INTERIM WASTEWATER TREATMENT SERVICES CONTRACT BETWEEN THE CITY OF DENTON, TEXAS AND THE UPPER TRINITY REGIONAL WATER DISTRICT HERETOFORE EXECUTED ON NOVEMBER 20, 1990 WHEREAS, the City of Denton, Texas (hereinafter the "CITY"), a Texas Municipal Corporation, and a Home-Rule City under the laws of the State of Texas, heretofore entered into an "Interim Wastewater Treatment Services Contract Between the City of Denton, Texas and the Upper Trinity Regional Water District, a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Constitution of the State of Texas (hereinafter the "UTRWD") on the 201h day of November, 1990, which contract is hereinafter referred to as the "Original Contract;" and which Original Contract was approved by the Denton City Council by Ordinance No. 90-186, passed on the 201h day of November, 1990; and WHEREAS, at the time that the Original Contract was entered into in 1990, it was the UTRWD's objective to develop a regional wastewater system in the Denton County area and to enter into contracts with entities which were "Participating Members" of the UTRWD to provide regional wastewater services to those entities. The CITY at that time, and at the present, owns and operates a wastewater collection, treatment, and disposal system in Denton County, Texas, and the UTRWD, at the time of the Original Contract, and at the present, desires to utilize the excess capacity of the Denton system for the collection, treatment, and disposal of the UTRWD Members' wastewater; and WHEREAS, the "Denton County Water and Wastewater Study Regional Master Plan for the Year 2010," recommended that certain portions of Denton County be provided regional wholesale wastewater service through the CITY's wastewater system. In said Original Agreement, the CITY agreed to provide wastewater services for the UTRWD on an interim basis, with the expectation that, and on the condition that the UTRWD would in the future enter into another and further contract with the CITY to provide for the joint planning, funding, and ownership of additional wastewater collection and treatment facilities to serve the future wastewater requirements of both the CITY and the UTRWD; and WHEREAS, Article VIII, Section 8.1 of the Original Contract provides that the Original Contract shall expire by its own terms on December 31, 1999; and WHEREAS, the CITY's Wastewater Utility Department currently has a wholesale wastewater contract with the UTRWD, and the CITY and the UTRWD are currently negotiating acceptable terms for a new wholesale contract, while at the same time considering the needs of other customer cities and/or districts being added to the wastewater system in light of the rapid growth and development activities in the Hickory Creek Basin; and in order to maintain the status quo, and in order to allow sufficient time for completion of the negotiations between the CITY and the UTRWD, the CITY and the UTRWD mutually desire to extend the term of the Original Contract for an additional six (6) month period; and WHEREAS, the City Council deems it in the public interest for the CITY to enter into this "Amendment to the Existing Interim Wastewater Treatment Services Contract Between the City of Denton, Texas and the Upper Trinity Regional Water District Heretofore Executed on November 20, 1990" (hereinafter the "Amended Contract") which provides that the term of the Original Contract shall be extended for an additional six month period of time, pending their good-faith negotiation of a new Contract; and to keep said Original Contract in continuous force and effect, without lapse Page 2 NOW, THEREFORE, for good and valuable consideration, and in further consideration of the mutual promises and covenants of the parties, the CITY and the UTRWD do hereby AGREE as follows, to wit: SECTION 1. That Article VIII, Section 8.1 of the Original Contract is hereby amended to read as follows: "This Agreement shall terminate on June 30, 2000." SECTION 2. That in all respects, except as specifically and expressly amended by this document, the said Original Contract heretofore duly passed and approved by the City Council of the City of Denton, Texas on the 201E day of November, 1990, shall remain and continue in full force and effect, without lapse or interruption, for all purposes pertinent. EXECUTED by the undersigned duly-authorized officials and officers of the CITY and the UTRWD, in two (2) original counterparts, on this the c~ld t day of 2000. CITY OF DENTON, TEXAS By: MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY By: hj, op"~ Page 3 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY dy UPPER TRINITY REGIONAL WATER DISTRICT By: avm' ( PRESIDENT L11 - BOARD OF DIRECTOR ATTEST- By: - SECRETARY, BOARD OF DIRECTORS PPROVED AS TO LEGAL FORM: S.\Our Documents\Contracts\99\UTRWD Amend WW Agrmt - Argyle - Hickory Crk Basin.doc Page 4