2010-051ORDINANCE N0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TExAS
APPROVING A RENEWAL OF BENEFICIAL REUSE WATER CONTRACT BY AND
BETWEEN THE CITY OF DENTON, TExAS AND THE OAI~MONT MANAGEMENT
CORP,; PROVIDING FOR THE CITY MANAGER' S EXECUTION THEREOF; PROVIDING
FOR THE ExPENDITURE OF RINDS THEREFOR; PROVIDING FOR RETROACTIVE
RATIFICATION AND APPROVAL THEREOF; AND PROVIDING AN EFFECTNE DATE.
WHEREAS, on the 19~h day of November, 2002, the City Council adopted Ordinance No,
2002-377 that provided for approval of the Beneficial Reuse water Contract, wherein the City
would sell treated wastewater effluent to Oakmont Country Club for irrigation pu~~oses; that
Contract has expired, and the City and Oakmont desire to extend the terms and provisions of the
Contract by a "Renewal of Beneficial Reuse Water Contract," thereafter the "Renewal
Contract"} which provides for a further eve ~5} year term; NOW THEREFOR,
THE COUNCIL OF THE CITY OF DENTON, TEAS HEREBY ORDAINS:
SECTION 1, The City Manager is hereby authorized to execute a Renewal of Beneficial
Reuse water Contract the "Renewal Contract"} by and between the City of Dentan, Texas and
the Oal~naont Management Corp,, in substantially the form of the Renewal Contract which is
attached hereto and made a part of this ordinance for all purposes,
SECTION 2. The preamble to this ordinance is incorporated rota the terms of this
Ordinance for all purposes,
SECTION 3, The expenditure of funds as provided for in said Renewal Contract is
hereby authorized,
SECTION 4, This ordinance shall be ratified, confit~ned and retroactively approved and
shall become effective as of March 1, 2009, the date of ex iration of the revious Contract; and p p
this Ordinance shall otherwise be effective as of its date of passage and approval.
PASSED AND APPROVED this the day of , 2o10,
f
~ A, B 0 GHS, MAYOR.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED A TO LEGAL FORM:
ANITA BURGES S, CITY ATTORNEY
By:
U
THE STATE ~F TEXAS §
COUNTY ~F DENTON §
RENEWAL (~F BENEFICIAL REUSE WATER CONTRACT
THIS CUNTRACT for the renewal of the "Beneficial Reuse Water Contract" dated
November 19, 2002, ~s hereby entered into on this the day of ~ , 2010,
by and between the CITY ~F DENTIN, TEXAS, a Texas Municipal Corpo Lion, 215 East
McKinney Street, Denton, Texas 76201 thereafter "CITY"}; and the UAKMONT COUNTRY
CLUB, acting herein by and through its duly authorized Board of Directors, of 1200 Club House
Drive, Corinth, Texas 76210 thereafter "PURCHASER"}.
V~ITNESSETH
WHEREAS, the PURCHASER has previously identified a use for treated wastewater
effluent, for beneficial reuse, hereinafter sometimes alternatively referred to as the "reclaimed water,"
or "reuse water" in order to maintain its general landscaping at the Oakmont Country Club
~herelnafter ~AKNr4NT } and to be a more viable and cost-effective alternative than purchasing
potable irrigation water; and
WHEREAS, the City of Denton, Texas, through its Pecan Creek Water Reclamation Plant,
expects to be able to continue to supply to the PURCHASER treated wastewater effluent, for the
purpose of its reuse, and
~-IEREAS, in connection with this 'L~astewater Effluent Transmission Line Project
~"Project"} the CITY has constructed a transmission line for the purpose of serving several entities
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with treated wastewater effluent, which line extends by and is contiguous to the Denton State School
property, with its South terminus at the aakmont Country Club in Corinth, Texas; and
WHEREAS, this Project generally involves awater-recycling project, and the quality of
effluent produced from the Pecan Creek Water Reclamation Plant presently meets the highest
standard for effluent reuse (Type 1}; and
WHEREAS, because this Renewal Contract involves the sale of treated wastewater effluent,
as distinguished from treated potable water suitable far human consumption, the ordinances of the
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City of Denton, Texas concerning potable water rates do not apply to this Renewal Contract; and
WHEREAS, the Texas Natural Resource Conservation Commission thereafter "TNRCC"}
has adapted the 3 D TAC Chapter 21 D Rules which regulate the use of reclaimed water, and
wHEREAS, the City of Denton, Texas has incorporated the 3 0 TAC Chapter ~ 1 D Rules in the
"Beneficial Reuse water User's Handbook;" and
WHEREAS, the CITY and PURCHASER intend by this Renewal Contract to extend, for a
term of five ~5} years, the previous Contract entered into by and between the CITY and
PURCHASER, which Contract was approved by the City Council of CITY by Ordinance No. 2DD~~
377; and
Naw THEREFaRE, for and in consideration of the terms and conditions contained herein;
the promises and covenants made herein; the terms and provisions of this renewal hereinabove
referred to, and the consideration paid and to be paid by the PURCHASER to the CITY, the parties
do hereby CONTRACT and AGREE as follows:
ARTICLE I,
PURCHASE, TRANSP~RTATIQN AND DELI'~ERY OF REUSE WATER
~ 1.1 UBLIGATICNS. Purchaser has previously signed a Letter of Renewal thereafter the
"Commitment Letter"} on October 21, ZDD9 that is attached hereto and incorporated herewith by
r f r n Exhi i "A " Th n L r r i h h P R HA ER I'' e e e ce as b t e Comnutme t ette p ov des t at t e U C S will continue
purchase reuse water from the CITY. HOWEVER, PURCHASER shall purchase such reuse water
from CITY, subject to terms as provided in the Commitment Letter. PURCHASER hereby agrees to
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"take or pay," far the sum of $4,004 for each and every month of the term hereof, for sixty ~~D}
:months, for an indefinite quantity of reuse water, solely for the purpose of on~site irrigation only of
the property owned or used by PURCHASER, at the paint of delivery before described in Exhibit "B"
of the original hereinafter described Beneficial Reuse water Contract" that is referred to herein and is
incorporated herewith by reference,
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§ 1.2 DELIVERY OF REUSE.wATER, CITY agrees to deliver, under the limitations and
conditions hereafter set forth in this Renewal Contract, the reuse water which PURCHASER needs on
a continuous basis at the deliverylindividual meter point shown on Exhibit "B" referenced in the
preceding paragraph, PURCHASER shall be responsible for construction and maintenance of all
distribution lines from the existing CITY reuse lines. PURCHASER shall pay all associated costs for
tapping fees, meters, hatching stations, and any other costs incurred by the CITY to provide the reuse
water to the PURCHASER. Each treated wastewater effluent customer of the CITY along the
Project, shall have its own reinforced concrete buried meter station. Title to, possession, and control
of the reuse water shall remain with the CITY until it passes through the PURCHASER' S meter and
control valve at the point or points of delivery as herein described; where title to, possession, and
control of the reuse water shall pass from the CITY to the PURCHASER. The CITY does not
guarantee its ability to furnish any reuse water supplied under this Contract at any particular pressure,
but rather the pressure delivered shall be such pressure as the CITY'S system will render at the
PURCHASER' S point of delivery.
~ 1.3 NO RATIONING OF WATER. The treated wastewater effluent sold by the CITY to
the PURCHASER shall not be sub jest to rationing during any period of drought, or during any period
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of time that the use of potable water rs curtarled or otherwise restricted pursuant to any drought
contingency plan, then in force and effect,
ARTICLE II.
QUALITY AND USE nF REUSE WATER
X2,1 QUALITY OF REUSE WATER. The quality of the reuse water to be supplied by CITY to
PURCHASER under this Renewal Contract shall meet the quality requirements established in 30
TAC Chapter 210 for "Type I," as they may be amended from time-to-time, which quality
requirements are currently as shown below:
GODS or CBODS 5mgIL
Turbidity 3 NTU
3
Fecal Coliform 20 CFU1100 ml~
Fecal Coliform 75 CFUII 00 ml~ ~
~ Geometric mean
~ ~ Single grab sample knot to exceed)
The CITY shall perform required sampling and analysis on the reuse water as prescribed by
applicable regulatory agencies+
§2.2 USE ~F REUSE WATER BY PURCHASER. PURCHASER SHALL USE THE
WATER RECEIVED BY AND UNDER THIS CONTRACT FUR ON-SITE IRRIGATION
PURPOSES ONLY AND IN COMPLIANCE WITH ALL REQUIREMENTS OF 30 TAC
CHAPTER 210.22, 2IU.23 AND 210.24. "fin-site irrigation" refers to the use of water for
maintenance and beautification of the landscaping and facilities of the PURCHASER. THE REUSE
'WATER SUPPLIED UNDER THIS CONTRACT IS NOT SUITABLE FUR HUMAN
CONSUMPTION AND SHALL NUT BE USED BY PURCHASER OR ANY THIRD PARTY
FOR ORDINARY DOMESTIC USE. PURCHASER shall take all necessary precautions to
prevent consumption of the subject reuse water by its employees or other persons, including the
posting of warning signs in both English and Spanish, in large and conspicuous printed letters at least
four ~4"}inches high, at all places where employees or other persons are likely to have access to the
reuse water, The actual establishment, maintenance, and enforcement of such safety precautions shall
be under the exclusive dominion and control of PURCHASER. PURCHASER assumes full le al g i
responsibility for any and all damages resulting from human consumption of the subj ect reuse water
after it reaches the PURCHASER' S point of delivery. PROVIDED HOWEVER, PURCHASER does
not hereby waive any defense that may be available under the laws and the Constitution of the State
of Texas, or otherwise, in the event of any suit or action brought against it by any third-party for
damages.
X2.3 USE OF REUSE WATER BY THIRD PARTIES. PURCHASER shall not sell, trade,
exchange, donate, or otherwise transfer the reuse water provided by this Renewal Contract to any
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. . .
third party, and shall not permit or allow the reuse water to be used in any manner by any third
parties,
~~.4 CGMMINGLING OF REUSE wATER. PURCHASER shall construct or cause to be
constructed supply lines such that it is not possible for any reuse water supplied to PURCHASER
under this Renewal Contract from PURCHASER to reenter any potable water system. However, this
shall not prevent the commingling in water storage facilities of PURCHASER' S reuse water with
other water obtained by PURCHASER from another system or source for irrigation purposes. All
such commingling shall be subject, however, to applicable City of Denton regulations and
ordinances, or those of other governmental agencies governing the use of reuse water.
~~.5 DISCHARGE GF REUSE wATER PURCHASER shall not cause or permit the
discharge of reuse water off~site, either airborne or by surface runoff, unless permitted by the
TNRCC.
§2.6 EXCESS AMUUNTS aF REUSE VLjATER PURCHASER shall use all of the reuse
water provided under this Renewal Contract, and it shall not have any excess to be disposed of unless
the excess reuse water is returned to the wastewater collection system.
X2.7 DRIFT GR SPRAY GF REUSE wATER PURCHASER shall not use reuse water in any
manner where the result would be any drift ar spray to areas where the general public would be
exposed.
§2.8 wET GRASS CGND~TiGNS. PURCHASER shall apply reuse water in such manner as
to minimize wet grass conditions in unrestricted landscaped areas during the periods that the area
should be in use.
~~.9 EFFECT ClN GRGUND wATER, PURCHASER shall utilize reuse water in a manner
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that does not threaten or adversely affect ground water,
X2,1 o CONDITION OF SOIL, PURCHASER shall not apply any reuse water to the ground
when the ground is either saturated or frozen,
§2.11 NUISANCE. PURCHASER shall be solely responsible for the prompt cleanup of any
nuisance conditions that exist on PURCHASER' S real property, which result from storage or the use
of reuse water received from the CITY.
§2.12 BENEFICIAL REUSE WATER USERS' HANDBOOK. PURCHASER confirms its
. cc ~ ~ » cc »
previous receipt of the Beneficial Reuse water Users Handbook thereafter the Handbook }
published by the City of Denton, Wastewater Utilities, and which Handbook was approved by the
City of Denton Public Utilities Board on the 7t~' day of January, 2002. The CITY confirms that it will
prom ti issue PURCHASER a co of an new or amended Handbook that it ma issue in the p y pY y Y
future. PURCHASER is fully responsible for knowing the contents of the Handbook and fully
complying with it,
X2.13 RESPONSIBILITY OF THE PARTIES. CITY shall not be responsible, nor will it be
liable for any contamination of the reuse water or the inappropriate use or application of the reuse
water su lied under this Renewal Contract after it asses throw h the PURCHASER' S described
pp p g ~
point of delivery. PURCHASER shall fully and absolutely indemnify the CITY for any and all
damages and claims for damages arising from any contamination of the reuse water supplied under
this Renewal Contract after it passes through the PURCHASER' S point of delivery; except regarding
any damages resulting from the CITY' S failure to deliver the quality of reuse water required by State
law and by the terms and conditions of this Renewal Contract.
ARTICLE III,
RATE AND METERING
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~ 3.1 RATE CHARGED FOR REUSE WATER, The rate for reuse water based on this
Renewal Contract, for a period of five ~5} years from the effective date of this Renewal Contract shall
be:
A, A monthly base charge of $4,404 for each month for the sixty X60}month terra of this
Renewal Contract, take or pay. This monthly base rate provision is similar to a "take or pay"
provision used in the water industry. In other words, the monthly base charge shall be due and
payable by PURCHASER to CITY for each and every month that this Renewal Contract is in effect,
whether or not PURCHASER has utilized any treated wastewater effluent far that month or not; and
B. A monthly facility charge of $16.20, per thirty days.
X3.2 RATES AFTER FIVE YEARS. After five ~5} years from the effective date of this
Renewal Contract, the terms may be adjusted by negotiation of the parties, and the rates for reuse
water shall be subject to change by the CITY on each October 1, thereafter, effective with the
CITY' S fiscal year rate ordinance beginning effective October 1, 2014. The revised rates, if any, will
be based on water reclamation plant operation and maintenance and non-operating expenses and
wastewater treatment volumes from the most recently completed fiscal year.
§3.3 METERING, CITY shall operate, maintain and read the reuse meterlmeters and shall
record monthly usage, based on such meter reading. Further PURCHASER agrees that it shall not in
an manner interfere tam er or ahem t to do an thin with re and to the o eration or functionin I'~ Y ~ p~ p Y g g p g of
such meterlmeters.
X3.4. PURCHASER' S OPTION. The CITY shall be obligated to increase the reuse flow to
PURCHASER, subject however, to the condition that the CITY must be able to transport the
increased volume of treated wastewater effluent to PURCHASER through the existing treated
wastewater effluent transmission line,
ARTICLE IV.
TERM
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~4, TERM AND RENEWAL CF RENEWAL CONTRACT. This Renewal Contract shall
be for a term beginning effective as of March 1, 2409 and ending flue ~5}years after that date, on
February 2$, 2014 as stated in the Commitment Letter, This Renewal Contract may then be re-
negotiated by CITY and PURCHASER for subsequent minimum five ~5} year termts} with the
concurrence of both parties, with the expectation that the CITY, after ten years service under the
previous Contract and this Renewal Contract, will likely require an upward adjustment in rates, The
PURCHASER shall provide written notice to the CITY at least six ~6~ months in advance of
expiration of this Renewal Contract stating that the PURCHASER desires to re-negotiate this
Contract,
§4,2 EFFECTIVE DATE. This Renewal Contract shall be effective as of March 1, 2009 as
the CITY has preciously connected its treated wastewater effluent transmission line to the
PURCHASER' S delivery point.
X4.3 TERMINATION OF RENEWAL CONTRACT. This Renewal Contract shall be
terminated if either party is prevented from fulfilling an obligation under this Renewal Contract by
s
any final judgment of a court of competent jurisdiction, legislation, or other force majeure.
PURCHASER may terminate the Renewal Contract if PURCII.A,.SER is of the opinion that the reuse
water uali is such as to revent the PURCHASER from using it for the purpose of irrigation. In q p
that event, PURCHASER shall provide the CITY at least sixty X60} days written notice of its
intention to terminate the Renewal Contract. CITY may terminate this Renewal Contract if monies
required to be paid by PURCHASER pursuant to this Renewal Contract are not paid within thirty
X30) days of written notification issued by the CITY to PURCHASER at PURCHASER'S billing
address according to the CITY' S records. Either party may terminate this Renewal Contract upon the
failure of the other party to abide by the provisions of this Renewal Contract and to cure the alleged
,
default, after bung provided thirty X30} days written nonce to do so by the other party, This Renewal
Contract also may be terminated by the mutual agreement of PURCHASER and CITY,
ARTICLE V.
FACILITIES
§5,1 ON-SITE FACILITIES, PURCHASER shall construct andpay for all necessary facilities
to deliver, store, use and discharge or dispose of the reuse water from the point of delivery onto
PURCHASER' S property, until such reuse water is used, discharged, or disposed of, which facilities
shall be described far purposes of this Renewal Contract, as on-site facilities. Design and
construction must meet criteria established by CITY regulation and ordinance as well as those
established by 30 TAC §210, despite the fact that the facilities are situated in the City of Corinth,
Texas.
§5.2 SECURITY ~F PURCHASER' S SERVICE SYSTEM, PURCHASER' S service system
shall be installed by PURCHASER so as to prevent operation by unauthorized personnel pursuant to
30 TAC §210,25,
~ 5 , 3 REQUIRED PIPING. PURCHASER shall use an existing separate non-potable, or shall
design and construct a separate non-potable water distribution system in compliance with 30 TAC
§210,25 and any other applicable local and state regulations,
X5,4 STORAGE PURCHASER shall comply with storage as required by 30 TAC X210.23
and any other applicable local and state requirements.
~5, 5 TAILwATER WATER C~NTR~LS. PURCHASER shall construuct any required tailwater
water controls, as required by applicable local and state regulations,
~ 5.6 COST OF PURCHASER' S GN-SITE FACILITIES, PURCHASER shall have title and
bear all responsibilities including the casts of installing, operating, maintaining, permitting, licensing,
9
and repairing any and all of PURCHASER' S on-site facilities, other than those facilities owned by
the CITY unless provided for by other mechanisms,
§ 5.7 ACCES S TQ PURCHASER' S PRQPERTY. PURCHASER shall allow the CITY 24-hour
access onto PURCHASER'S property only that property which is the subject of this Renewal
Contract} as necessary to operate, maintain, and inspect facilities owned by the CITY.
ARTICLE VI,
GENERAL PRUVISIClNS
§d.l GaVERNING LAw~ VENUE LEGAL CQNSTRUCTIQN. This Renewal Contract
shall be governed by and construed in accordance with the laws of the State of Texas, The
obligations of the parties to this Renewal Contract are performable in Denton County, Texas, and if
legal action is necessary to enforce same, exclusive venue shall lie in Denton County, Texas. Incase
any one or more of the provisions contained in this Renewal Contract shall far any reason be held to
be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall
not affect any other provision of this Renewal Contract, and this Renewal Contract shall be
considered as if such invalid, illegal, or unenforceable provision had never been contained in this
Renewal Contract,
X6.2 ASSIGNMENT OF CQNTRACT. This Renewal Contract cannot be assigned without
the prior written consent of the other party, which consent shall not be unreasonably withheld..
~~.3 CQMPLIANCE wITH APPLICABLE LAwS. This Renewal Contract is subjectto all
legal requirements of the City Charter of the City of Denton, Texas, the Denton Code of Qrdinances,
and other laws and regulations both state and federal; and PURCHASER agrees that it will promptly
comply with all applicable laws, regulations, orders, and rules of the Federal, State, County, City, and
all other applicable governmental agencies. Specifically, PURCHASER will comply with all
provisions of 3 0 TAC X21 o as it is currently adopted or as it may be hereafter amended. These
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regulations are Included in the abovewreferenced "Beneficial Reuse water Handbook."
X6,4 FORCE MAJEURE, Neither CITY nor PURCHASER shall be required to perform any
term, condition, or covenant in this Renewal Contract, so long as such performance is delayed or
prevented by force majeure, which shall mean acts of God, civil riots, floods, and any other cause, not
reasonably within the control of CITY andlor PURCHASER and which by the exercise of due
diligence, CITY or PURCHASER is unable, wholly or in part, to prevent or overcome,
X6.5 ENTIRE AGREEMENT, This Renewal Contract embodies the complete agreement of
the parties hereto, superseding any and ail oral or written previous and contemporary contracts or
agreements between the parties and relating to matters contained in this Renewal Contract, except as
otherwise provided herein, This Renewal Contract may not be modified without the written
agreement of both parties hereto.
X6,6 HOLD HARMLESS, PURCHASER, only to the extent allowed by applicable law,
agrees to protect, defend, and save the CITY, its representatives, officers, agents, employees, and
attorneys harmless from and against any and all claims, demands, and causes of action of every kind
and character, losses, costs, expenses, attorney's fees, and damages of every kind and character, for
injury to, or death of any person or damage to any property arising out of or in connection with the
construction, use, storage, maintenance, disposal, or discharge of reuse water of or from 'i
PURCHASER'S on-site facilities, Also, this provision shall not apply if any claim arises and is
proximately caused by the CITY S failure to deliver the quality of reuse water required by State law,
and by the provisions of this Renewal Contract, The provisions of this Subsection 6.6 shall not apply
to any liability resulting from the sole negligence of CITY, its representatives, officers, agents,
employees, or attorneys.
X6,7. HOLD HARMLESS GOVERNMENT REGULATION. In its performance of this
Renewal Contract, PURCHASER shall comply with all applicable federal, state, and local laws or
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. . . . . . . . . . . . . . . . - - - - . . - - - - . .
regulations related to the use or reuse of reuse water, or the environment, and will hold the CITY, its
representatives, officers, agents, employees, and attorneys harmless from and against any and all
claims, demands, suits, causes of action, losses, damages, costs, attorney's fees, and expenses arising
out of any noncompliance violation or alleged noncompliance violation by PURCHASER of any such
laws; PROVIDED HOWEVER, only to the extent provided by applicable law.
§~.8 REMEDIES. In the event that CITY is unable in good faith to comply with the delivery
of reuse water requirements to PURCHASER in this Renewal Contract, then PURCHASER' S sole
remedy shall be to take CITY potable water and to pay far the potable water sa taken at the rates
established for the potable water used, The exercise of this remedy by PURCHASER shall require
ten X10} days prior written notice by PURCHASER to the CITY,
§6.9 RE UIRp,D PERMITS AND LICENSES. The parties shall each maintain in effect
during the term of this Renewal Contract, any and all federal, state, andlor local licenses and permits
which may be required of parties generally regarding the subject of reuse water.
~6.I 0 REQUIRED RECORDS. Both CITY and PURCHASER shall maintain such records as
are required by state regulations and shall notify the TNRCC in writing within five ~5} days of
obtaining knowledge of reuse water use not specified and approved by the Executive Director of the
TNRCC.
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§6.11 POLICE POWERS NOT AFFECTED, This provision does not affect the police powers
of the CITY of Denton, Texas or of any other governmental agency.
§6.12 BINDING EFFECT ON SUCCESSORS AND ASSIGNS, This Renewal Contract shall
be binding upon and shall inure to the benefit of the parties hereto and their respective officials, heirs,
executors, administrators, successors, employees and their assigns.
§6.13 CAPTIONS AND COUNTERPARTS, The captions to the various Articles and
Subsections of this Renewal Contract are for informational purposes only and shall in no way alter
the substance or meaning of the terms and conditions of this Renewal Contract. This Renewal
Contract shall be executed in duplicate original counterparts, each of which shall be deemed an
original and constitute one and the same instrument,
ExECUTED by the City of Denton, Texas ~"CITY"} and the OAKMONT COUNTRY CLUB, acting
C' l cc ~s by and through ~ thereafter the PURCHASER } acting by and
through their respective duly authorized and empowered directors, officers and representatives, on
,
this the ~ ~ day of ~ c1 ~ , 2010,
"CITY"
CITY OF DENTON, TEAS A Texas Municipal Corporation
By:
GEO GEC, CAMP ELL
CITY MANAGER
ATTEST:
JENNIFER wALTERS, CITY SECRETARY;
By:
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. . . . . . . . . . . . . . . . . . . . . . .
APPROVED AS Ta LEGAL FURM;
ANITA BURGESS, CITY ATTURNEY
By.
"PURCHASER"
aAKMONT ~
By:
~~S
ATTEST
By:
APPRGVED AS T4 LEGAL FGRM;
By•
i~
EXH I BIT A of ~~fQ~ ~r t
t
i•
~~y T i'.
~~rer ~.1t~~~~~~ 90~-A Texas 5tr~et, DentUn, TX 7~24~ ~940~ ~49.8~#52 fax X940) ~4~-8~5~
W~~~~ ~r~~~~r~~
October 2009
Derek l.inders
General Manager
OakmantCauntry~iub
~.~OD Club House Drive
Corinth, Texas 7~~~0
Re: letter of Renewal
Purchase of Treated wastewater effluent frar~ Denton Municipal Utilities
Dear Mr. finders;
The purpose of this letter is to renew the current agreement with Oakmont for an additional five years
under the general terms of the final separate Agreer~ent -Ordinance No. ~oD2~377 signed November
19, ~~o~. This Agreement will be extended beginning March ~00~ and will end on l~ebruary ~S~",
2D~4.
we have experienced significant cast increases associated with the treatment of wastewater and the
production of effluent water. Over the past 5 years we have experienced approximately increase
in treatr~rent costs. we are not anticipating this type of increase aver the next five years. At the conclusion of this 5 year extension it will be necessary to renegotiate the terms and conditions of this
contract. we would anticipate an approximate 2D ~ 30% increase in effluent water costs which will have
to be passed an to our customers, Please anticipate these rate increases beginning March 1, X014, V(le
will contact you prior to this period to renegotiate the contract,
We a reciate our interest and your desire to participate in this project, The City Staff looks forward to pp v
working with you on the Project and serving your treated wastewater effluent needs.
Please contact me at 94~.~49,7~,94 if you have any questions.
sincerely, 3
dim Coulter
Director, Water Utilities
Cc; wade Mud
APPROVED AND AGREED:
Oakrno C untry lub
~y; Date: ~
erek 'der
eral Manager