22 - City of Toco Wastewater Bill

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share. There were numerous options for determining a pro -rata share, but it was agreed that this seemed less favorable to both parties, particularly in cases of delinquency. Subsequently, we agreed to the following option. First, we propose an agreement whereby the City of Toco will agree to amend its existing agreement and authorize the City of Paris to begin billing its residents directly. The City of Toco will continue to make payments to the City of Paris in the typical amounts it historically has in order to pay back the delinquent amount owed, but the residents will pay for all future amounts directly. Currently, the City of Toco is paying about $2,800.00/month; therefore, it will take about 2-3 years to repay the City of Paris. After that, the City of Toco will cease to pay the City of Paris further payments and can instead use that money for whatever it sees fit. Second, the City of Toco will agree to purchase water meters from the City of Paris and authorize us to, on a monthly basis, read and maintain these meters and charge each resident sewer based on their consumption directly attributable to their usage and not based on a pro -rata option. There will be a small customer service charge added on account that we will be maintaining the water meter while not collecting water revenue. City of Paris would agree to install the meters and bill the City of Toco for their installation, adding it to the amount owed so that it can be paid back in the next 2-3 year period. We believe that this option is best because 1) it reimburses the City of Paris for the delinquent amount owed, 2) it establishes a solution whereby sewer bills will be paid for going forward, 3) it gives us the ability to shut off water should someone become delinquent in their sewer account (which is legal under TAC 24.167(e)), and 4) it gives the residents of Toco a fair means of being billed for sewer actually produced vs. a pro -rata approach. NEXT STEPS If the City Council approves the agreement in its form tonight, our next steps are: 1. Approach and seek approval of the agreement from the City of Toco as well as the LCWSD (as the water provider and given Toco is within their designated Certificate of Convenience and Necessity (CCN) area). 2. Assuming both parties in #1 approve, City of Paris will work with the City of Toco to farther inform their residents (it is our understanding that the City of Toco has been keeping their residents informed these past few months). 3. City of Paris will install new water meters at each account (estimated to be approximately 40 accounts) that we can then read monthly for billing of sewer. 4. City of Toco residents will be added to an existing cycle and route for billing and thereby be handled like all other user accounts. COSTS