22 - City of Toco Wastewater BillItem No. 22
Memorandum
TO: Mayor, Mayor Pro Tem & City Council
FROM: Grayson Path, City Manager, City of Paris
SUBJECT: City of Toco Wastewater Bill
DATE: December 12, 2022
BACKGROUND:
On December 8, 1969, the City of Paris ("Paris") entered in to an agreement with W.E. Thompson
on behalf of the Toco Water Supply Corporation ("Toco") for wastewater services. Toco would
construct and own all sewer lines within their jurisdiction (Sections 2a and 6a). Toco would also
construct the necessary transmission infrastructure to feed wastewater to Paris for treatment
(Section 2b). Once constructed, Paris would own and maintain the transmission infrastructure
outside of Toco (Sections 3, 6b and 6c). Paris, working through the Lamar County Water Supply
District ("LCWSD") would then bill Toco for the wastewater service (Section 4). Side note —
Paris began billing Toco directly many years ago. Uncertain how or why this change occurred,
but it is the current practice. There is however, a clause that should Toco fail to pay, LCWSD
water could be shut off (Section 5). ATTACHMENT A
On February 13, 2006, Paris and Toco entered in to an amendment to the 12/8/69 agreement simply
to require all connections to Toco's infrastructure to follow the Paris Sewer Use Ordinance and
Pretreatment. ATTACHMENT B
On April 10, 2006, Paris and Toco entered in to an amendment to the 12/8/69 agreement to increase
the wastewater utility rate as well as set it to adjust and match whatever the rate Paris residents
were paying going forward. ATTACHMENT C
To the best of our records, beginning August 14, 2014, Toco became delinquent in paying the
entire balance of their wastewater bill to Paris. This has remained true ever since with payments
being insufficient to cover the entire owed debt. The balance owed remained relatively steady for
many years until January 2020 when the delinquent amount began to escalate. This corresponds
to the City's increase in wastewater rates because of its new Waste Water Treatment Plant
("WWTP") project. It appears, based on the payments being made; the amount Toco was paying
did not increase even though the monthly bill was increasing. ATTACHMENTS D AND E.
STATUS OF ISSUE:
Paris staff reached out to Toco representatives earlier this year to discuss the growing delinquency
in the bill. After some time, I was brought in. Paris cannot continue to allow the growing
delinquency to occur, particularly given 1) the WWTP project is underway and 2) other utility
ratepayers have to subsidize the delinquent amount owed to treat the wastewater. Our mission is
to seek fairness for all ratepayers and have everyone pay for their own account balance.
In the course of meeting with the Toco representatives, we learned of Toco's arrangement with its
citizens. It is our understanding that the City of Toco pays for all of its residents' water,
wastewater, and trash bills. Their sources of revenue to cover this is a natural gas franchise fee,
liquor store sales, and donations. However, this revenue has been insufficient to cover all three
bills, which has led to Paris' full bill going unpaid.
On September 27, 2022, Mayor Paula Portugal, Gene Anderson and I met with the Mayor and a
Council Member of the City of Toco to discuss this issue. This led to a meeting between Mayor
Paula Portugal, Mayor Pro Tem Reginald Hughes, Rob Vine, Gene Anderson, myself and the
entire Toco City Council on November 10, 2022. Both meetings went very well as the City of
Toco recognizes that it cannot continue to be delinquent with their sewer bills. They were eager
to develop a solution to prevent this from escalating further. We discussed several options and
ultimately agreed to the proposal written below.
I_1-8 Lei W`►i ICSINTAaa
Under statute of limitations, we recognize that we may be prevented from collecting delinquent
debt older than four years. The owed amount today for the last four years is therefore
approximately $80,000.00 - $85,000.00 (depending on recent bills).
PROPOSALS
The City of Toco City Council acknowledges that they are not in a position to raise the needed
funding to pay the sewer bill nor keep up with the monthly payments. Therefore, they have
requested assistance in developing an option whereby their residents will begin to pay on
individual accounts. The City of Toco will continue to pay for water and trash services for all
residents, but sewer will need to be offloaded to the residents.
Given LCWSD provides water to a master meter for the City of Toco, and the City of Toco is in
charge of their own water infrastructure after the master meter, and given the age of the existing
water meters within their infrastructure (we have deemed these to be unreliable due to age and lack
of known maintenance), one option was to bill each individual resident/business on a pro -rata
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
The City of Toco owes the City of Paris an approximate $80k - $85k, which will be reimbursed
over the next 2-4 years. In addition, our estimated cost for meter installation is $30,000.00, which
will be added to the amount the City of Toco will reimburse the City of Paris for.
City of Toco residents will be charged standard residential sewer rates, which is in line with the
April 10, 2006 agreement between the City of Toco and City of Paris, plus a small monthly charge
for maintenance and care of the water meter.
OPTIONS
1. Approve the attached agreement between the City of Paris and City of Toco and authorize
the City Manager to pursue with the City of Toco.
2. Request edits to the proposed agreement and/or reject the agreement and pursue the
delinquent amount by another means.
RECOMMENDATION
1. Approve the attached agreement between the City of Paris and City of Toco and authorize
the City Manager to pursue with the City of Toco.
ATTACHMENT A
STATE OF TEXAS
COUNTY OF LAMAR
I! VI15MV.Iii 1.111i I III I I i III I I I III' I I 1 1, 1 i ill I 1111 �11 I I I I Ill! 1� I I I Ill I 1, 14. 11 1 1
1. W. E. Thompson owns or has control of a tract of
land, the title to white is presently in the name of O, G. Snowden,
located about three miles West of the city limits of Paris, on which land
it is p,roposcd that a housing subdivision be built and desires sewer ser-
vice from the City and for the mutual advantage flowing to each W. E,
Thompson and the City it is agreed that sevier service shatt be provided,
upon the terms all;d conditions hereinafter stated, on that certain tract
or parcel of land described as followse
All that certain tract or parcel of land situatcd abovL
4 miles West ol Paris. Lanxt r Co unty, Tcnasl. a Part of
the Mitchell Keller Survey, land being that Portion Of 3 tract
of lallIlld conveycd M. L. Smitcy ct a] from Margarct Hodges
ct al September 2Z, 1950, li d4ce as evidenced in Book 318,
paGe 181, Lamar County Deed Records, The portion of
said tract as set forth above is the area lying North of U, S.
Highway 62,
DECINNMG at a corner post or, the West side of a
public road, at the original NEC of the Henry Orr tract,
same bcin,,,, the SEC of a 7-1/2 acre tri-ict formerly owned
by Robert Crurrl
THENCE N. 850 W. 1701l feet with a fence;
THENCE continuing with said fence S., 99-1/2o W. 987
feet as fence corner;
TNENCE South 00 20' 1"1 2 1-116 feet to the Old Bonham
noad.,
THENCE %Vc.st %vith the old Donham Road IS feet. a
fence corner;
T14ENCE South 183 feet to the NBL of the present L', S.
Highway ll SZ-.
THENCE with the NBL of said Highway with enc following
calls. N, 74* E. 656 feet,- N. 70 1V. 40 feet-, N. 7.10 E. 481
feet, N. 31* 1:. 34 feet, N. 73 0 E. 44 feet, S. 390
feet, N. 7.10 Z. 703 feet, N. 68 -1 /20 V. 785 feet; to a con-
crtte monument in the NBL of Highway No. 82,
THENCE K. 41 0 E. 167 feet a concrete monument in
the WIIL of an actoss road,
THENCC with the WL.L of saitl access road N. 1 0 Z.
IZZ3 feet to the placc of beginning, ccritainin-D 114.8Z acres
of land.
"I "1 '111" 1
(a) W. E. Thon%ps*n, acting on behalf of T OCO Water
Supply Corporation, will construct, own, maintain and control all, sewer,
lines within the above described property.
(b) IV. E. Thompson will pay all costs, incl din inves.i-
gation, survey, engineering, casements, equipment, inspcction and
supervision in construction 0.1 the se%ycr transmission facilities to the
City, in accordance with plans and specifications approved by the City,
which sewer facilities shall consist of (1) a gravity lina frarn the above
described property limits to a lift station to be located in Pine Creek,
(2) a Lift station will be initially constructed at Pine Creek adequate to
handle sc%vage for 50 houses ata ns houses constructed on the above
described premises approach 50 in oumUor, pump cquipmem will be In-
crcascd at the lift station to handle the adchtional sewqc reciwire rnerts
for customers located within the above described property, the cost of
%which shall be paid for by %V. E. Thompson, his successors and astiigns.
(3) a sewage force line shall be built at the lift station at Rine Creek to
a poInt for the bcginning of a gravity (lov.- line to an existing sewer line
Of the City; (4) a gravity flow line shall be constructed from the end
of the force line to connect with an existing scwcr line scrving Kaywood
Addition located oil U. S, Ijil;hway 82 West within the corporate limits
of the City of Paris and belonging to the City.
D
3, Upon completion of cons cruction of the sewer line
and lift stations set out above the City will become owner and operator
of said facitities, and be responsible for the maintenanco. repairs and
ropiaccricnt thereof, except for the kncraascd pumping capacity as
specified in paragraph 2(b (2 above,
4. W . Thompson, his successors and assigns wRl
pay unto the City, for its controlling, maintaining and operating these
facilities and treating the s ew a t; e from said subdivision $0. 84 per
1, 000 gallons of metered tvater sold to the subdivision by the Larnar
County Avater Supply Corporation or $t$O, 00 per month, whichever is
greater. The minimum charge of $150. 00 per inonth shall entide V1, E,
Thompson, his successors and assi-vs to sck%-cr serviceon 176571 gallons
of metered %vater but -.-her, the matercd %vater exceeds this figure, the
charge wM be in excess of the minin-tum moothly bil1 to be computed A,
the rate of $0. 64 per thou -sand gallons of mate -ed water served.
5. Payment for the see-,cr service is due on or before tca
days after billing date, The bill for sewer service to customers within
the above describcd prt„ndlscs shall be made to W. E. Thorvipson, F,%s
successors -,nd asslgns, at the rate schedulic se. out above b)r the Lan -tar
County Water Supply District, simultancous %vith the %vater bill rendered
b,; it to I'l, E. Thompson, his succcssors and assigns, and Lamar County
V,Iater Supply District will promptly remit all seNN,cr collections to the
City, 11 W, C.Thompson, his successors and assiGns, fail to pay the
sewer bill in the same rnanncr As piyment of the water bill is pro%,idcd
for in paragraph 3(c) of Section 3 of that ccr%ain contract dated October
29, 1969 by and betNveen Lamar County tVatc.r Supply District and TOCO
Water Supply znd Scu,-or Service Corpor3tion, as the same appears on
pages 10 and I I of said contract, Lamar County Water Supply District
will discontinue watcr service to customers in the one described
property upon request by City.
6. Control of the sewer facilities to be conSLructcd by
W, E, Thompson shall be as follows:
(a) W. E. Thor-apson, his successors rind assigns, shall
Fame control of all sewer connections within the above described pro-
perty, provided, however, only domestic and commercial scwage shall
be permitted to enter the sewer lines.
(b) The control, of all sewer connections on the portion of
the line outside of the above described property shall be under the jolnt
control of W. E. Thompson, his successors and assigns, and the City. of
Paris unit July 1. 1980. During this period of time all sewer connections
on this portion of the line sFall be rnadc only on joint approval of the City
and IV, E. Thompson but the City shall receive all income on any cor.-
nections made on this portion of the line during this period.
(c) At the cxpii-akion of this period of time the City shall
thenceforth have full control of alt connection& on the portion of Ore Line
outside of Lhc abQvc described pretrisos, l7rovWcd, Fo-wevcr, that at no
time shall the City permit connections on the line that will impair %V, E.
Thompson, his successors and assigns, from hiving sewage trcat mcn,
for 1, 500, 000 gallons of metered waler per nionth is-orn the premists
above described, that is to say. %V, E, Thompson, his successors and
assigns, are guarantccd by the City, sewer treatment on 1, 500, DOC'
gallons of metered %vater per month from the above described premises,
and the City shall provide pumping facilities at the lift station at Pine
creek for customers perntitted on the line after it has sole control of
the line.
(4) It connections on the sewer line outside of the
above described prornives shall be at a rate negotiated between the
wast risers and the party or parties having control of the sewer line
at the time the connection is madc and if the customer is also a
customer or becomes a customer of Larnar County Water Supply
District, the Lamar County Water Supply District agrees to bill the
customer for sc%ver service at the negotiated rate and promptly remit
collections to the ity® and discontinue service in the event the Sewer
bill is not paid by the customer in the same manner as provided in
paragraph numbered 5.
7. The foregoing rate for sewer treatment and main-
tenance as set out in paragraph 4 hereof, %,41.1 be subject to review once
each year and adjustments made in comparison %vith established policies
and water -sewage service in the City of Paris, except, lto%vcvcr, it is
agreed and understood that the monthly minimum charge of $150. 00
shall at all, orrice entitle %VE, Thompson, his successors And assigns,
to sc%vagc treater -cont for 'it least M1,571 gallons of nictercd %vater per
month on the above describcd prcinises.
8° 1; is to read lntkvccn the parties that this contract is
cm,%difioncd upon the City of Paris obtaining i grant for W;v o" the con-
struction cost under the provil5ions of Pubtic L�ay. 6M It is further
agreed that the City %vill forth%vith make application for a cornmitmcnt
of the gram and will use the commitment for "he pvrposc of obtaining
a loan tothe cxkcait of the graw, to be used in connection with the cost or
building the above, sot oul, sewage facWtics. However, V1, E, Thomp-
son, his successors and assigns, agree to reimburse the City all inter-
est cost incurred by the City in connection with the loan o4mined on said
commitment kip to July l" 1970,
9. W. E. Thompson agrcos to make every rca3oriabj,�;
effW rt to obtain easernents outside the limits of U. S. Highway 62 for
the construction ot the sewer facties hcrein contemplated and B
outside of US. Highway 8Z for saii
WITNES$ OUR HANDS this 801 day'of December, 1961
CITY OF PARIS
ATTEST:
13
B.. A, Kennedy, lvf�X�or
'Prie, City Clcrk
V1. Z. Tl-,ornpion
The forcGoing contract is approved and accepted by Lamar
County Water Supply District and it agrces to bill its custon-lers for
sewer scrvice ind to prowptly° rcnit the collections for scrv�cc
to the City of P,:irts as provided for above and discontmuc -ater service
upon demand by Llw City in the vvent the customer does tin, pay the scwcr
bill as provided for ibovc, at n charge of 50 cents per month to the city
for each collection froni catch customer located outside of the ak)ove
described property.
L.A..'NIAR COUNTY WATER SUPPLY
MSTRICT
President
A T CST
S at a r y
ATTACHMENT B
dated December
STATE OF TEXAS
COUNTY OF LAMAR
lwcfu��
U- j---Ad!L0-* j -, 0 ? :
Service Contract dated December 8, 1969, between the City of Toco and the City of Paris, Paris, Texas, is
made this 13th day of February, 2006, by and between the City of Toco, hereinafter called "Tocoll, and the
City of Paris, is, T-exas, acting by and through its Mayor, Curtis Fendley, duly authorized, hereinafter
called "City".
WITNESSETH
paragraph be added as 6(e) to read as follows:
13EM
I
ZMMEMME==- MA 1 GM==
Q���J I4 4 f f 4 fPmkm M,1147#mmmy-m
Preveatment program within the Cityof Toco collection system. City of Paris
wiv a -rd all re-mvi-able readv
points, and otner appurtenarnk I In c - o Yow co ection system Toirme
......... ...
ax ioRniTextdst-Tg--,r to r1t �eaftA OfAt p0�6c,67:entry tkeelvi"m7m7r,
or cause interference, pass through or sludge contamination of the City of Paris
Publicly Owned Treatment Works. Such enforcement actions include, but am not
limited to, fines, civil penalties or other remedies as allowed by courts of law."
I *N xelly 101 11 6
cc YOFPAR IS, PARIS, TEXAS,
By:
. . . . .......... ... .
Curtis Fendley, ayor
ATTEST:
Jnice Ellis, City Clerk
1�
-f.est' o c' ' k' ...... Ass' is"t'a n t C i ty, A ... t"t" o ' r, e y" ......... .....
io-5-
0 9 If, I AN, V
J'Ason '1" filer, Mayor
1-11 . .............
Kim Hanley, City Sccretary
9 a W—V q �— —
♦t'll m vecute, 'F�9.7- -U* vts
1"F"Will-V , I *Rt W ktue- ielv "Im, f"'t4jmv
i:Toj J� , 'A A g4i i -A I I (wj#
AM X PWM
tow F=
STATE Of TM
Notary Public, of Texas
ack-f,owledwed tone tht ke e.ve-wed thevme for the .......... ....... ;-z%jisideratim.
4 ln4f e
OF OFFICE, thl;,)day of--F�, 2006.
NoNblic, State of Texas
ATTACHMENT C
ON M
Irma "�: a M11 11 1! i
F
MW 177='T InTIMM,
STATE OF TEXAS
COUNTY OF LAMAR
KXOW ALL NZK BY TEIESE PRESENTS, that this Addendum Number Two to the Sewer
Service Contract dated December 8, 1969, between the City of Toco and the City of Paris, Pads, Texas, is
made this 10th day of ApfiL 2006, by and between the City of Toco, hereinafter called "Toco", and the City
of Paris, Paris, Texas, acting by and through its yor, Curtis Fendley, duty authorized, hereinafter called
-City-a
WITNESSETH
It is hereby mutually agreed by and between the City ofToco and the City of Paris that the follow
�mgraph number 4 be amended to read as follows:
014. W, E. Thompson, his successors and assigns will pay unto the City, fbr its
coritr6iling, maintaining and operating these facilities and treating the sewage from said
subdivision per I,GG0 S&Uons of metered water sold to the subdivision by the Lamar
County Water Supply District or $870.00 per month, whichever is greater. The minimum
charge of $870.00 shall entitle W. E. Thompson, his suc=ssors and assigns to sewer service
on 178,571 plions of metered water but when the metered water exceeds this figure the
charge will be in excess of the minimum monthly bill to be computed at the rate of $4.87 per
1,000 gallons of metered water served. The rate per 1,000 gallons ofmetered water sold and
the minimum monthly charge will be changed annually to equal the rate for service in excess
of base cost� charged to City of Paris residential sewer service customers with a nwer size
of 3/4 irr*c-
m
.�acte Alis. City Clerk
........ .. u..
I � n D. Lestock, Assistant City Attorney
Kim Hanley,
�r t
nWaller, Mayor
;A 1 �- � i :...' _t 4 ,.. 1 1 t f f t iY i♦ 1 4 °. �w 4 e:
Notary Public, State of Texas
BEFORE MEE, the undersiped authority, on this day pemonatly appeared Jason Waller, Mayor of
TrITTL IT M),
YAM
ATTACHMENT D
City of
Toco Utility Payments
Date
Charge
Payment
Late Charge
Rolling
8/14/2014
$
2,734.91
$
2,734.91
9/3/2014
$
1,400.00
$
1,334.91
9/4/2014
_
$
5.00
$
1,339.91
9/12/2014
$
2,389.85
$
3,729.76µW
9/29/2014
._........................................
_.. $
1.00
,800
. .......... _
_..._..
$
1,.
92976
............
10/3/2014'
$
5.00
$
1,934.76
10/14/20141
$
2,257.73
...
......
.........__....�
$
..........
4,192.49
.....
10/30/2014m
�� ����
$
���
1' 934.76
$
2,257.73
11/4/2014
$
5.00
$
2,262.73
11/14/2014
$
.....................�
2,177....81. .
....._
......................
....$._.....1,919.02..........
..,,,,,,.....e
_
.�
. $
...
4,440.544
12/4/201_4
$•
2,521.5-2-
12/12/2014
$
........................................................._
2,324.33...........___M._._._
...................�
.....
$
4,845.85
..5
....._845.85
_14
12/31/20
_
..._..........._....._...
$
_.....�
z,000.00
.............._$..._
.m
$
IT .
2
--
1/2/2015
....................._.._........
_� ._......_._........$......5,235.12
5.00
2....
5
1/14/2015...$.......
............................_._..
2,384.27
�..� ..
m _..�m.5.00
...
2/4/201_5
$
5 '2......µw
40.12
2/13/2015._$
_ .................................._
......2,117.87. ...............
_$_..._2,700.00.
._._....._.
..........
_.............
_._...
..._
............_$......4,657.
.._._._._...........7......_.
$
7,35 99
..
2/_18/2015 ..............._......_........................................
3/6/2015
$
5.00
$
4,662.99
3/13/2015
$
2,137.85
$
6,800.84
3/20/2015
$
1,800.00
$
5,000.84
4/6/2015
$
5.00
$
5,005.84
4/13/2015
$
2,233.00
$
2,772.84
4/14/2015
$
2,337.65
$
5,110.49
5/5/2015
$
5.00
$
5,115.49
5/14/2015
$
2,171.15
$
7,286.64
5/22/2015
$
2,000.00
$
5,286.64
6/4/2015
$
5.00
$
5,291.64
6/12/2015
$
2,550.77
..1,900
....
$
.. 7,842.41
6/22/2015.
$
00
$
5,942.41
7/6/.....215 �......_
................................
................................
.mm$
5.0.0
$
I .......................9......
5,47.41...
7/15/2015''
$
2,730.59
$
8,678.00
7/17_/2015
$
2,200.00
$
6,478.00
I 8/4/2015
$
5.00
$
6,483.00
8/14/2015
$��
3,136.85
$
9,619.85
8/17/2015
$
2,300.00
$
7,319.85
9/4/2015
$
5.00
$
7,324.85
9/14/2015
$
3,369.95
$
10,694.80
9/28/2015
$
2,200.00
$
8,494.80
10/5/20155.00
..mm$
mm
�....
$
8,499.80
10/14/2015
. .............................................................._�
3,549.77mmm
...........................................
.�
.. $
12,049.57
...........
10/19/2015
$
2,050.00
$
9,999.57
11/4/2015
$
5.00
$ 10,004.57
11/13/2015
$
3,796.19
$
13,800.76
..12/3/20.15
.................W.....
...........00 ..............m...................................
$ 2,000
_......
$ 11,800.76
_
_.....
12/4/2015
.
�
$ 5.00
$ 11,805.76...
....
12/14/2015
w....
v
$ 3,776.21
$ 15,581.97
12/18/2015
$ 2,240.00
w
$ 13,341.97 W
1/4/2016
$ 5.00
$ 13,346.97
1/14/2016
$ 2,930.39
$ 16,277.36
1/15/2016
$ 2,000.00
$ 14,277.36
2/4/2016
$ 5.00
$ 14,282.36
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ATTACHMENT E
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING ADDENDUM NUMBER THREE TO THE SEWER SERVICE
CONTRACT BETWEEN THE CITY OF PARIS AND THE CITY OF TOCO
DATED DECEMBER 8, 1969 AND AUTHORIZING THE MAYOR TO EXECUTE
SAME; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 8th day of
December, 1969, in Resolution No. 1350, approve the execution of a Sewer Service Contract
with the City of Toco; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 13th day of
February, 2006, in Resolution No. 2006-016 approve Addendum Number One to said Sewer
Service Contract, adding paragraph number 6 (e); and,
WHEREAS, the City Council of the City of Paris did heretofore, on 10th day of April,
2006, in Resolution No. 2006-063 approve Addendum Number Two to said Sewer Service
Contract amending paragraph number 4 to insure compliance with the City of Paris Sewer
Use Ordinance and Pretreatment Program; and
WHEREAS, it is deemed appropriate that the terms of the contract be revised related
to sewer services provided to the City of Toco by the City of Paris; and,
WHEREAS, the form of Addendum Number Three to the contact, attached hereto as
Exhibit A, should, in all things, be approved, and the Mayor should be authorized to execute
the same;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS,TEXAS:
Section 1. That the findings set out in the preamble of this resolution are hereby in
all things approved.
Section 2. That the form of Addendum Number Three to the Sewer Service
Contract between the City of Paris and the City of Toco dated December 8, 1969, attached
hereto as Exhibit A, be, and the same is hereby, approved.
Section 3. That the Mayor be, and she is hereby, authorized and directed to
execute, on behalf of the City of Paris, Addendum Number Three to said contract, under the
terms and conditions and in the form shown in Exhibit A, attached hereto.
Section 4. That this resolution shall be effective from and after the date of passage.
PASSED AND APPROVED this 12th day of December, 2022.
Paula Portugal, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris City Attorney
ADDENDUM NUMBER THREE
to Sewer Service Contract Between
the City of Paris and the City of Toco
dated December S 1969
STATE OF TEXAS )
COUNTY OF LAMAR )
KNOW ALL MEN BY THESE PRESENTS, that this Addendum Number Three to the
Sewer Service Contract dated December 8, 1969 (the "Contract"), between the City of Toco,
Texas, the City of Paris, Texas, and Lamar County Water Supply District is made this day
of —, 20_, by and between the City of Toco, hereinafter called "Toco," acting by and
through its duly authorized Mayor, the City of Paris, Texas, acting by and through its City
Manager, duly authorized, hereinafter called "City," and Lamar County Water Supply District,
hereinafter called "LCWSD."
WITNESSETH
I.
It is hereby mutually agreed by and among the parties that paragraphs 4 and 7 of the
Contract be deleted, and Addendum Number Two be rescinded.
II.
It is hereby mutually agreed by and among the parties that paragraph number 5 of the
Contract be amended to read as follows:
"5. Billing and payment of charges for sewer services that City provides
to the residents and businesses of Toco shall be made as follows:
(a) Toco hereby contracts with City to bill individual residents and
commercial businesses for sewer services provided through the infrastructure
owned by Toco. The rates for such services shall be equal to the rates paid by
residential and commercial sewer accounts within Paris' corporate limits in
accordance with Chapter 12 of the City of Paris Code of Ordinances, as may be
amended from time to time. Each new sewer service customer will be subject to a
deposit requirement in the amount as established in Section 12.02.008 of the City
of Paris Municipal Code of Ordinances, as may be amended from time to time.
(b) In order to accomplish the objectives set out in paragraph No. 5(a)
hereinabove, City will install new water meters at each existing residence or
commercial structure receiving sewer service for the purpose of identifying the
usage for waste water billing. Each new water meter will be associated with a newly
created sewer user account. City will read each meter monthly and bill for sewer
service in accordance with Chapter 12 of the City of Paris Municipal Code of
Ordinances, as may be amended from time to time. This subparagraph shall apply
to meters installed in association with any new construction in the Toco corporate
limits henceforth. Toco hereby will require all new construction to install a water
meter for billing purposes.
(c) Toco shall reimburse City for the cost of each meter installed
pursuant to paragraph 5(b) for existing structures along with installation charges.
Said reimbursement shall be THIRTY THOUSAND AND NO/100 DOLLARS
($30,000.00) and shall be paid in accordance with paragraph 10 hereunder. City
shall retain ownership of each meter and be responsible for servicing and
maintenance thereof. Each new sewer account shall be assessed an additional
customer service fee for servicing its water meter equal to that paid by residential
and commercial accounts located within City's corporate limits. Should City install
a new meter pursuant to new construction in the Toco corporate limits after the
meters have been installed at structures existing at the time of the execution of this
Addendum Number Three, meter costs shall be paid to City by the developer or
requesting entity. City shall not be responsible for any water or sewer taps,
repairs, extensions of lines, maintenance or any other work to Toco infrastructure.
(d) LCWSD and Toco hereby agree that LCWASD shall delegate to
City the right and mandate set forth in 16 Texas Administrative Code Sec. 24.167(e)
to shut off water service to any water meter associated with a delinquent sewer
account. A sewer account shall become delinquent and shall be subject to cutoff in
accordance with Chapter 12 of the City of Paris Municipal Code of Ordinances, as
may be amended from time to time."
II.
It is hereby mutually agreed by and among the parties that paragraph number 10 be
added to read as follows:
"10. Toco agrees to pay City the sum of at least TWO THOUSAND EIGHT -
HUNDRED DOLLARS AND NO/100 ($2,800.00) per month for months or
until a grand total of ($ ') consisting of an arrearage of past
sewer service fees in the amount of ($ 1) and costs
associated with City's installation of new water meters as set forth in paragraph 5(c) in the
amount of THIRTY THOUSAND DOLLARS AND NO/100 ($30,000.00), has been
retired, whichever comes first."
EXECUTED on the day of m_,_,_,_,_, _,_.._ _, 202_.
Signature page to follow:
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
ATTEST:
, City Secretary
By:
CITY OF PARIS, PARIS, TEXAS,
Paula Portugal, Mayor
THE CITY OF TOCO
, Mayor
LAMAR COUNTY WATER SUPPLY
DISTRICT
Title:
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared Paula Portugal,
Mayor, City Manager of the City of Paris, Texas, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 202_.
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared ,
Mayor of the City of Toco, Texas, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 202.
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared ,
of Lamar County Water Supply District, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 202_.
Notary Public, State of Texas