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Item No. 22 <br />Memorandum <br />TO: Mayor, Mayor Pro Tem & City Council <br />FROM: Grayson Path, City Manager, City of Paris <br />SUBJECT: City of Toco Wastewater Bill <br />DATE: December 12, 2022 <br />BACKGROUND: <br />On December 8, 1969, the City of Paris ("Paris") entered in to an agreement with W.E. Thompson <br />on behalf of the Toco Water Supply Corporation ("Toco") for wastewater services. Toco would <br />construct and own all sewer lines within their jurisdiction (Sections 2a and 6a). Toco would also <br />construct the necessary transmission infrastructure to feed wastewater to Paris for treatment <br />(Section 2b). Once constructed, Paris would own and maintain the transmission infrastructure <br />outside of Toco (Sections 3, 6b and 6c). Paris, working through the Lamar County Water Supply <br />District ("LCWSD") would then bill Toco for the wastewater service (Section 4). Side note — <br />Paris began billing Toco directly many years ago. Uncertain how or why this change occurred, <br />but it is the current practice. There is however, a clause that should Toco fail to pay, LCWSD <br />water could be shut off (Section 5). ATTACHMENT A <br />On February 13, 2006, Paris and Toco entered in to an amendment to the 12/8/69 agreement simply <br />to require all connections to Toco's infrastructure to follow the Paris Sewer Use Ordinance and <br />Pretreatment. ATTACHMENT B <br />On April 10, 2006, Paris and Toco entered in to an amendment to the 12/8/69 agreement to increase <br />the wastewater utility rate as well as set it to adjust and match whatever the rate Paris residents <br />were paying going forward. ATTACHMENT C <br />To the best of our records, beginning August 14, 2014, Toco became delinquent in paying the <br />entire balance of their wastewater bill to Paris. This has remained true ever since with payments <br />being insufficient to cover the entire owed debt. The balance owed remained relatively steady for <br />many years until January 2020 when the delinquent amount began to escalate. This corresponds <br />to the City's increase in wastewater rates because of its new Waste Water Treatment Plant <br />