High Point WSC, Talty SUD, and Markout WSC Petition Public Utilities Commission To Review City of Forney Water Rates

1111 1 111 1 11111 11
Control Number: 47814
11111111111111111111111111111111111
Item Number: 3
Addendum StartPage: 0
E CEi % /TO
PUC DOCKET NO. 47814
713110EC -1
kl11: 13
PETITION OF HIGH POINT WATER BEFQR TIIE
,•
SUPPLY CORPORATION, TALTY
SPECIAL UTHLITY DISTICT, AND
MARKOUT WATER SUPPLY PUBLIC UTILITY COMMISSION
CORPORATION APPEALING OF
WHOLESALE WATER RATES
IMPLEMENTED BY CITY OF FORNEY
AND REQUEST FOR INTERIM RATES TEXAS
FIRST AMENDED PETITION OF HIGH POINT WATER SUPPLY CORPORATION,

TALTY SPECIAL UTILITY DISTRICT, AND MARKOUT WATER SUPPLY
CORPORATION APPEALING WHOLESALE WATER RATES IMPLEMENTED BY
CITY OF FORNEY AND REQUEST FOR INTERIM RATES
COMES NOW HighPoint Water Supply Corporation ('HighPoint WSC"), Talty Special
Utility District (`Talty SUD"), and Markout Water Supply Corporation (`Markout WSC"), by
and through the undersigned counsel, and pursuant to Tex. Water Code (TWC) § 13.043(f) and
16 Tex. Admin. Code (TAC) § 24.131(a) and § 24.130, files this Petition to Appeal the
Wholesale Water Rates Increase by the City of Forney (the "City" or "Forney") for Wholesale
Water Service and Request for Interim Rates (the "Petitioe).
In the alternative and in addition to, HighPoint WSC, Talty SUD, and Markout WSC file
this Petition pursuant to TWC § 12.013. Further, pursuant to TWC§§ 13.043(h) and 12.013(e),
HighPoint WSC, Talty SUD, and Markout WSC request that the Public Utility Commission (the
"Commissioe or "PUC") establish interim rates to be in effect until a final decision is made.
In support of its Petition, HighPoint WSC, Talty SUD, and Markout WSC respectfully
show as follows:
I. OVERVIEW
1. This case involves a wholesale water rate appeal by HighPoint WSC, Talty SUD, and
Markout WSC (collectively, the "Petitioners") on the increased wholesale water rates
charged by the City.
Page 1 of 60 3
II. PARTIES
2. The City of Forney is a municipal corporation in Kaufman County, Texas, and a political
subdivision of the State of Texas, governed by the Constitution of the State of Texas and the
Texas Local Government Code. The City provides both retail water service and wholesale
water service.
3. Petitioners are all retail public utilities that purchase water exclusively from the City of
Forney through wholesale agreements.1 The agreement and amendments for HighPoint WSC
are attached as Exhibit A, the agreement and amendments for Talty SUD are attached as
Exhibit B, and the agreement and amendments for Markout WSC are attached as Exhibit C.
III. JURISDICTION
4. TWC § 13.043(0 provides that a retail public utility that receives water from another retail
public utility or political subdivision may appeal to the Commission a decision of the
provider of water affecting the amount paid for water. In this case, Petitioners are purchasing
water from the City. Therefore, TWC § 13.043(0 is the basis for the Commission's
jurisdiction over this Petition.
5. In the alternative and in addition to Tex. Water Code § 13.043(0, Petitioners bring this
appeal pursuant to TWC § 12.013.
6. The Commission has jurisdiction over this appeal pursuant to TWC § 13.043(0 and/or
§ 12.013. Petitioners are entitled to relief under this section because all Petitioners are retail
public utilities that receive water from another retail public utility, the City of Forney, under
Wholesale Water Contracts. All parties are retail water utilities as defmed in TWC
§ 13.002(19).
7. City provided notice to Petitioners of an increase in rates by letter dated August 31, 2017.
8. Petitioners have 90 days after the date of the notice to file this appea1.2 Therefore, this
Petition is timely filed pursuant to TWC § 13.043 (0.
1 TWC §13.002 (19).

2 TWC § 13.043(f).
Page 2 of 60
IV. BACKGROUND AND CHRONOLOGY OF EVENTS
9. Groundwater supply has never been an option in the Kaufman County area due to its poor
water quality and depth. The only source of water available to communities since the 1960s
has been through purchase from North Texas Municipal Water District ("NTMWD") or a
member-city of NTMWD.
10. During a time of explosive growth in early 2000s, Talty SUD, HighPoint WSC, Kaufman
County Fresh Water Supply District No. 1 A ("Windmill Farms") and the City entered into an
agreement to build future and shared improvements to increase water supplies available from
NTMWD to the City and thus to the Petitioners.3
11. In May of 2006, with the first major improvement, Phase 1: Pump Station #2, being
constructed, the City required Petitioners to enter into new Wholesale Water Contracts
("New Wholesale Contract"). The New Wholesale Contract altered the method for
calculating the wholesale rate charged to the Petitioners, although the impact of that change
was insignificant at the time.
12. In New Wholesale Contract, Petitioners are required to pay City either $0.61 more per
thousand gallons (1,000/gal) or 63% more per 1,000/gal, whichever is higher, than the rate
the City pays NTMWD for water (the "Differential Rate"). This Differential Rate raised by
the City adversely affects the public interest under the criteria provided in 16 TAC §24.133.
13. In 2017, North Texas Municipal Water District increased the rate it charged to the City's rate
by $0.25 (-10%), from $2.53 to $2.78 per 1000 gallons.
14. Subsequently the City changed its rates to Petitioners and, due to the Differential Rate
imposed on the Petitioners, Petitioners rates have now been increased from $4.12 to $4.53
per 1,000 gallons — a full 63% above the rate charged to the City by NTMWD per 1,000
gallons.
15. Recently, the City of Crandall has become a potential source of water for Petitioners and
would be able to satisfy existing demand at a lower rate. However, NTMWD policies require
that because the City of Forney is a member of NTMWD, Petitioners must first obtain a letter
3 Markout WSC was not a party to the arrangement due to slower growth.
Page 3 of 60
of permission from the City of Forney before beginning formal negotiations with the City of
Crandall. The City of Forney has refused to provide a letter of permission. The Petitioners
remain captive customers of the City.
16. In addition, the City has been unwilling to revise the method of calculating Petitioner's
current wholesale rate despite its inherent unfairness.
17. As a result of this unfair treatment, the Petitioners retail rates are vastly higher than the
City's own retail rates as shown below:
City of Forney
0 to 2,000 gallons $15.94 Base Rate
2,001 to 15,000 gallons $5.09 per thousand gallons
Above 15,001 gallons $6.36 per thousand gallons
Talty SUD
2,001-10,000 gallons $6.00 per thousand gallons
20,001 and up $9.00 per thousand gallons
Markout WSC
High Point WSC
Residential Service
Commercial Service
Page 4 of 60
V. PUBLIC INTEREST VIOLATION
18. The Differential Rate and terms set forth in the Water Service Contracts are an abuse of
monopoly power due to the disparate bargaining power of the Petitioners and the City.
19. The Differential Rate and terms set forth in the Water Service Contracts will eventually rate
impair the Petitioners ability to continue to provide service to their retail customers, based
on the Petitioners' financial integrity and operational capability
20. The Petitioners have been obtaining water from the City for decades and have collectively
invested millions of dollars in the City's infrastructure to ensure that they have access to a
sufficient water supply for their retail customers.
21. The Petitioners have no other reasonable alternative water supply available to them because
the NTMWD's policy for the past several years has been to not enter into new contracts for
water supply. Any entities seeking new water supply, must contract with the NTMWD's
existing customers to obtain that water supply.
22. Since 2006 and the investment of millions of dollars in the City's infrastructure by the
Petitioners, the City has exercised control of the market and required the execution of new
wholesale agreements with the captive Petitioners. Thus, the City has been Petitioners only
option and as a direct result Petitioners have significantly less bargaining power.
23. The City changed its rate computation methodology in 2006 after the construction of shared
improvements with Petitioners. Notably, Windmill Farms pays only $.061 above NTMWD's
rate. As a percentage, the wholesale rate paid by Windmill Farms is currently only 21.9%
above the rate paid by the City to NTMWD compared to the Petitioners 63% above the rate
paid by the City to NTMWD.
24. The rates and terms set forth in the Water Service Contracts are preferential, prejudicial, and
discriminatory compared to the wholesale rates the seller charges other customers, and thus,
adversely affect the public interest.
Page 5 of 60
25. For these reasons, the City's rate violates the public interest and warrants further
Commission action, including the implementation of interim rates and the establishment of
new just and reasonable rates.
VI. REQUEST FOR INTERIM RATES
26. Pursuant to TWC § 12.013(h) and 16 TAC § 24.29, the Commission has authority to set
interim rates pending the determination of final rates in this proceeding. Because of the
continued increased magnitude of the Differential Rate, Petitioners request that the
Commission establish interim rates to be in effect until a final decision is made. As a result of
the preferential, prejudicial, and discriminatory wholesale rates charged to Petitioners,
Petitioners request the rates be comparable and set to Windmill Farms, which is $0.61 above
NTMWD's rate, resulting in the overall percentage rate paid by Petitioners be 21.9% above
the rate paid by the City to NTMWD.
VII. CONCLUSION AND PRAYER
WHEREFORE, PREMISES CONSIDERED, Petitioners request the Commission to:
1. Take jurisdiction of this controversy;

2. Determine that this Petition satisfies the requirements of 16 TAC §24.130 and that it be
referred to the State Office of Administrative Hearings (SOAH) for an evidentiary
hearing under 16 TAC § 24.131;
3. Immediately set an interim rate at the rate either in effect prior to October 2017 or the
rates be set at $0.61 above NTMD's rates.
4. After the interim rate is set, conduct a hearing to determine that the rates set are not fair
or reasonable, are discriminatory and adversely affect the public interest, and set a final
rate that is just, fair, reasonable and non-discriminatory;
5. Grant such other and further relief to which Petitioners may be justly entitled.
Page 6 of 60
Respectfully submitted,
By:
John J. Carlton
The Carlton Law Firm P.L.L.C.
4301 Westbank Drive, Suite B-130
Austin, Texas 78746
(512) 614-0901
Fax (512) 900-2855
State Bar No. 03817600
ATTORNEY FOR HIGH POINT WATER

SUPPLY CORPORATION, TALTY SPECIAL
UTILITY DISTRICT, AND MARKOUT WATER
SUPPLY CORPORATION
CERTIFICATE OF SERVICE
I hereby certify that I have served or will serve a true and correct copy of the foregoing
document via hand delivery, facsimile, electronic mail, overnight mail, U.S. mail and/or
Certified Mail Return Receipt Requested to all parties on this the 1st day of December, 2017
John Carlton
Page 7 of 60
Exhibit A
Page 8 of 60
WHOLESALE WATER CONTRACT
•
STATE OF TEXAS
COUNTY OF KAUFMAN
This Wholesale Water Contract (`Contract") is made and entered into this(Ir 2006, by
and between the City of Forney. Texas, a municipal corporation in Kaufman Coun , Texas, acting
under the laws of the State of Texas (hereinafter called "City"), and HighPoint Water Supply
Corporation (hereinafter called "HighPoinr). This contract supersedes all Wholesale Water
Contracts that may have been previously entered into by and between the parties prior to the date
indicated above.
WITNESSETH:
WHEREAS, the City owns and operates water distribution and water supply facilities; and
WHEREAS, HighPoint and the City have previously entered into a Wholesale Water
Contract dated February 2, 2001. whereby the City agreed to provide potable water to
HighPoint in quantities specified therein; and
WHEREAS. due to increased development and demand for water within HighPoint s
service area. it has become necessary for HighPoint and the City to restate and amend the
prior Wholesale Water Contract to provide for additional quantities of potable water to meet
the current and future demand for water by customer within HighPoint's service area; and
WHEREAS, HighPoint is desirous of obtaining an additional adequate and dependable

water supply; and
WHEREAS, the City will have available potable water in quantities hereinafter contracted to
be sold by it to HighPoint, subject to the terms and provisions of this Contract; and
WHEREAS, the parties desire to establish provisions for the sale and distribution of treated
water by City to HighPoint and to establish the rate, duration, metering, and related
responsibilities of the parties;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein

contained, the parties agree that the City will furnish and HighPoint will pay for water supply
services upon the terms and conditions hereafter set forth, to wit:
1 Responsibilities of the Parties.
a. City is responsible for operating a water supply system to the extent permitted by
available water revenues and water supply, for developing cost of service information
to support rate changes, and for informing HighPoint of changes in financial data.
C.‘DOCUME- 11MHOWIN-11,OCALS-1 Temp\MXLibDir\HIGHPOINT Amended (# I ) Water Purchase Contract - 04- 10-06
v3 (Clean).doc
Page 1 of 11
Page 9 of 60
•
b. HighPoint is responsible for keeping the City informed concerning its projected water
supply needs and operating requirements. for planning and managing the HighPoint
system to promote water conservation and efficient system operation, and for paying
rates adequate to cover costs incurred in providing services to it. HighPoint is also
responsible for maintaining pumping and pressure requirements and storage capacity
within the HighPoint system in accordance with rules and regulations set forth by the
Texas Commission on Environmental Quality (TCEQ"), or its successor agency
2. Quantity.
Subject to the provisions of this Contract and available supply from North Texas Municipal
Water District ("NTMWD”). the City agrees, during the term hereof and at the delivery
points hereafter specified, to deliver treated water to HighPoint at a rate not exceeding Six
Hundred Ninety Four (694) gallons per minute (One Million [1,000,0001 gallons per day) at
the Glenwood Trail point of delivery and at a rate not exceeding Two Thousand Three
Hundred Forty Seven (2,347) gallons per minutes (Three Million Three Hundred Seventy
Nine Six Hundred Eighty [3.379,6801 gallons per day) at the FM548 point of delivery
Rates of delivery shall be regulated by a rate of flow controller installed by HighPoint but
solely accessible by the City The City shall have authority to limit HighPoint's usage in the
event City does not have the ability to provide the usage permitted. City will use its best
efforts to remain in a position to furnish treated water as herein contracted to be sold to
HighPoint, but the City s obligations shall be limited in accordance with other conditions
herein contained. In the event the total water supply available to the City shall be
insufficient to meet all of the needs of the residents of the City and customers of HighPoint,
the City may prorate the water available among all customers of the City and HighPoint. In
the event of shortage, HighPoint shall be furnished water in a quantity which bears the same
proportion to the total water available to City for use by individual connections as the
number of individual connections served by the City HighPoint may prescribe a schedule of
hours covering use of water for the watering of lawns and gardens by its customers, and
require adherence hereto, or prohibit the use of water for the watering of lawns and gardens,
provided that if at any time the total water supply available to HighPoint shall be insufficient
to meet all the needs of its customers, water must first be furnished to all customers of
HighPoint sufficient to satisfy their needs for domestic purposes before supplying any water
for the watering of lawns and gardens. Further. HighPoint shall institute a Drought
Contingency and Water Emergency Plan that meets the requirements of the NTMWD and/or
the requirements of the TCEQ, or any other governmental entity having jurisdiction thereof,
whichever is more stringent. HighPoint shall give reasonable notice to City of any
anticipated changes in demand requirements. Such notice shall he utilized by City in
determining whether construction of additional facilities or utilization of existing system
capacity will be required. In the event of a change in demand requirements. HighPoint shall
be responsible for the cost of any additional facilities, or the utilization of existing excess
system capacity (even if such utilization of existing capacity does not require additional
construction), in which direct participation has not already occurred by HighPoint. Payments
by HighPoint contemplated by this section for additional facilities are required prior to the
CADOCUME-1\MHOWIN-11LOCALS-1\Temp\MXLibDirffIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

v3 (Clean).doc
Page 2 of 11
Page 10 of 60
•
awarding of any construction contracts. Payment by HighPoint for utilization of existing
excess capacity must be paid prior to the capacity being provided. HighPoint understands
and agrees that City's ability and capacity to provide increases in demand or volume is
subject to available supply and the ability to deliver treated water as may be determined by
City through its sole source of such water, NTMWD The City reserves the right to enter
into water purchase contracts with other entities under the same or similar provisions as
contained in this contract.
3 Quality.
Under the provisions of this Contract, City is obligated to furnish HighPoint treated water
suitable for human consumption in accordance with all applicable laws, rules, and
regulations of this state.
4 Point(s) of Delivery.
The points of delivery of water to HighPoint from the City's system shall be at HighPoint's
two delivery points at Glenwood Trail (at the intersection of Ranch Road) and at FM 548
(just south of the intersection of Reeder Road) respectively in the manner and the amounts
specified in Section 2 above. HighPoint shall install a flow meter and a rate of flow
controller to be set according to the contracted amount of water contained herein at the point
of delivery All flow meters installed after the date of this Contract shall be equipped with
Supervisory Control and Data Acquisition (-SCADATiv) transmission devices. All existing
meters as of the effective date of the Contract shall be equipped in conformance with this
provision within three years of such effective date. City agrees to deliver at the point of
delivery the quantities of water herein contracted for, said water to be delivered at the
pressure which is maintained in the water supply system of the City, it being specifically
understood that the City is under no obligation to furnish pressurized treated water to any
connection between the delivery point and HighPoint's facilities for sustaining and/or
increasing pressure to include the below mentioned air gap. HighPoint may utilize the
pressure which is maintained in the City system for the movement of water from the delivery
point to the point where HighPoint shall have facilities for sustaining or increasing pressure.
HighPoint agrees that it shall take all reasonable measures to insure all lines and equipment
installed and operated by it and that all lines and plumbing facilities which are installed or
owned by its customers shall comply with the Plumbing and Sanitation Codes of the City and
the requirements of the TCEQ, as the same now exist or as they may be modified hereafter.
HighPoint must provide an air gap prior to any connections of service. Cost of all connection
facilities from the delivery point to the contracting party's facilities installed subsequent to
the date of this contract shall be borne by HighPoint. HighPoint shall be responsible for the
design, contracting, construction, and financing of connection facilities and acquisition of
any right-of-way for delivery of the water from the applicable delivery point to HighPoint's
facilities. Should the quantities desired by HighPoint as contained herein or identified at a
future date require improvements to the City of Forney facilities or the City of Forney
distribution system, or require the utilization of existing excess system capacity (even if such
utilization of existing capacity does not require additional construction), in which direct
CADOCUME-11MHOWIN-11LOCALS-1\Temp\MXLibDir\HIGHPOINT Amended (#1 1 Water Purchase Contract - 04-10-06

v3 (Cleaadoc
Page 3 of 11
Page 11 of 60
•
participation has not already occurred by HighPoint then, in such case, HighPoint shall be
responsible for their proportional share of the cost of those improvements or any above
described excess capacity utilization. Payments by HighPoint contemplated by this section
for additional facilities are required prior to the awarding of any construction contracts and
for the utilization of existing excess capacity payments must be made prior to the capacity
being provided. Any improvements made to the City of Forney distribution system up to the
point of delivery become the property of the City of Forney Plans for such improvements
shall be submitted to City for written approval with all designs, materials and specification
conforming to the City s requirements. The City shall have the right to make periodic
inspections and final approval.
5 Measuring Equipment.
HighPoint shall furnish. install, operate, and maintain at its own expense at the delivery
point, the necessary equipment and devices of standard type, as approved by the City, for
measuring properly the quantity of water delivered under this Contract. City shall read the
meter monthly, and HighPoint shall test and calibrate the meter at intervals of not more than
twenty-four (24) months. The cost of all tests shall be bome by HighPoint, provided
however, that if any special test is made at the request of City and shall disclose that the
meter is recording accurately, City shall reimburse HighPoint for the cost of such tests.
Meters registering not more than one and one-half percent (1 '72%) above or below normal
shall be deemed to be accurate. The readings of any meter which have been disclosed by test
to be inaccurate shall be corrected for the ninety (90) days preceding the test in accordance
with the percentage of inaccuracy found. Should any meter fail to register for any period, the
amount payable shall be based upon the water delivered in the corresponding period
immediately prior to the failure, unless the City and HighPoint shall agree to the amount of
water furnished during such period. The meters used under this Contract shall be read on the
last day of each calendar month by the City's operator and shall be available for checking by
a representative of HighPoint during normal business hours of the City
6 Unit of Measurement.
The unit of measurement for water delivered under the provisions of this Contract shall be
one thousand (1,000) gallons of water, U.S. Standard Liquid Measure.
7 Price and Terms.
a. For purposes of this Contract the total of all water to be annually purchased under the
terms of this Contract by HighPoint shall constitute the Annual Minimum.
HighPoint will pay for all water services required hereby as indicated below.
1 HighPoint shall pay for all water purchased under this Contract, save and
except that amount of water contemplated in Section 7.a.2. below, shall be paid for at
a rate of Sixty Three percent (63%) above the rate charged City by NTMWD per one
thousand (1,000) gallons ("Differential Rate") for water furnished to the City Said
CADOCUME--1\MHOWIN-111,OCALS--11Temp\MXLibDir\HIGHPOINT Amended (#1) Water Purchase Contract - 04-1(1-06

v3 (Clean).doc
Page 4 of 11
Page 12 of 60
•
Differential Rate shall automatically adjust upon any change to the rate charged City
by NTMWD, however, in no case shall the differential result in a rate of less than
$.61 per one thousand (1,000) gallons. The Differential Rate shall be subject to
review and adjustment by the City Council each year during the term of this Contract,
beginning with the effective date hereof. Adjustment of the percentage associated
with the Differential Rate by the City Council shall be based upon factors such as, but
limited to, any and all debt load of the City, required water system improvements not
otherwise contemplated by this Contract, administrative costs, any and all regulatory
changes that impact water system operating costs, and any other factor which may
impact the operations or funding of the City water system. The only portion of the
Differential Rate subject to the above factors during any City Council review is that
portion of the rate above Sixty Three percent (63%).
2. The unused portion of the minimum associated with the NTMWD

infrastructure from Forney pump station #1 to Forney pump station #2 ("PS#2
Minimum.' hereinafter defined in 7.b.(3) below) will be paid for by HighPoint at the
rate charged City by NTMWD The PS#2 Minimum which is used in one year and
used the next, will be paid for by HighPoint at the Differential Rate subject to the
same terms and conditions outlined in 7.a.1 above.
b. The Annual Minimum amount of water that HighPoint shall be deemed to have been
taken and used, regardless of whether or not such amount is or was actually taken or
used, and which HighPoint shall be required to purchase and pay for at the above rate
shall be calculated as:
the greater of:
(1) 94,589,000 gallons, or
(2) the maximum number of gallons actually taken from the system by
HighPoint during any previous Water Year during the term of this Contract.
For purposes of this section, Water Year means the period of August 1 of
each calendar year through July 31 of the next following calendar year,
plus:
(3) an additional annual amount shall be added to the Annual Minimum amount
contemplated in Section 7.b.(1) and (2) and hereinafter referred to as PS#2
Minimum. The purpose of the PS#2 Minimum amount is to pay for the
NTMWD infrastructure required for Forney Pump Station #2. PS#2
Minimum was divided based on project demand among various users of the
system. The PS#2 Minimum amount shall begin when Forney Pump Station
#2 is capable of pumping water which may not necessarily be when
HighPoint is ready to take/receive water from the pump station. The annual
PS#2 Minimum amount shall be implemented over a six year period as
C \DOCUME--11MHOWIN-11LOCALS-1 \Temp \MXLibDir\HIGHPOINT Amended (#11 Water Purchase Contract - 04-10-06

v3 (C1can).doc
Page 5 of 11
Page 13 of 60
indicated below unless such amounts are changed by action of the NTMWD-
Annual Annual
PS#2 Minimum Increase
Year 1 9,168,246 NA
Year 2 14,669,298 5,501,052
Year 3 20,170,175 5,500,877
Year 4 25,671,228 5,501,053
Year 5 31,172,105 5,500,877
Year 6 36,673,158 5,501,053
In the event that supply becomes available from Forney pump station #2 prior
to the end of the first full Water Year after execution of this Contract then the
amount of Year 1 PS#2 Minimum indicated above shall be divided by twelve
(12) then multiplied by the number of months remaining in the then current
Water Year and the resulting total shall be added to the Annual Minimum
Amount. The monthly installments required in Section 7.d. below shall be
increased in an amount equal to the proportional PS#2 Minimum at the then
current rate charged by NTMWD to City for water
Upon completion of the sixth year the Annual Minimum shall be that amount
as determined by the calculations in Section 7.b.(1) and (2) above which shall
include the total amount of the PS#2 Minimum in Year 6 above.
c. The Annual Minimum amount of water HighPoint will be required to purchase at the
above rates shall be calculated annually for the following Annual Payment Period,
and the amount of water to be purchased by HighPoint during the following Annual
Payment Period shall be calculated in accordance with the requirements of Section
7.b. above. For purposes of this section, "Annual Payment Periods' shall mean
October 1 of each calendar year through September 30 of the next following calendar
year.
d. Payment for water service charges as calculated above shall be made each year by
HighPoint to the City in twelve (12) equal monthly installments, each of which shall
be due and payable on or before the lOth day of the month following the service.
Payment for water delivered in any year in excess of the volume allowed for in the
Annual Minimum payment effective for that year shall be made by HighPoint to the
City at the rates specified herein as follows: When HighPoint usage exceeds one
hundred percent (100%) of the Annual Minimum amount required to be taken or paid
for during any year. charges for the excess water will be billed by the City to
HighPoint on the second month following the month in which the one hundred
percent (100%) level is reached, such billing being for the excess water delivered in
the month prior to the month being billed, and the procedure shall continue to the end
of the water year with HighPoint making payment for all the excess not previously
paid for on or before the 1 Oth of the month following the end of such water year.
CADOCUME-11M1-10WIN--1\LOCALS-1\Temp\MXLibDir1HIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

v3 (Clean).doc
Page 6 of 11
Page 14 of 60
HighPoint s liability and responsibility for making such payments as herein set forth
shall commence on the effective date of this Contract. The initial monthly payment
shall be one-twelfth (1/12) of the amount that would result from the sale of
94,589,000 gallons at the above rate.
e. In the event HighPoint shall fail to make any such monthly payment or annual
payment within the time required, interest on such amount shall accrue at the rate of
ten percent (10%) per annum from the date such payment becomes due until paid in
full with interest, as herein specified. In the event said payment is not made within
sixty (60) days from the date such payment becomes due, City may, at its option,
discontinue delivery of water to HighPoint until the amount due City is paid in full
with interest as herein specified.
8. Cooperative Collections and Customer Cutoff.
The City may from time to time provide sewer and/or garbage collection services to
customers within HighPoint's water service area. The City and HighPoint agree that
HighPoint will provide billing services for sewer and/or garbage collection service, as
applicable, through its billing process. HighPoint agrees that it will bill and collect at rates
established by the City and will remit to the City on a monthly basis the total collected for
such services less a ten percent (10%) administrative services fee. HighPoint will provide a
statement with each monthly remittance including the total collected by customer, less the
administrative fee and the net amount.
The parties further desire to cooperate in the disconnection of water service to any customer
who fails to keep an account current (defined for the purposes of this Contract as 10 days
past due), including sewer and/or garbage service charges and, in that regard, HighPoint
agrees, except as otherwise set forth in this Section, to disconnect, in accordance with its
Tariff, water service to any customer who fails to keep an account current. Provided,
however, that the parties recognize and agree that HighPoint is bound by and limited in its
ability to disconnect water service to a customer by the terms and conditions of its Tariff
together with the other state statutes, rules and regulations applicable to HighPoint. Nothing
herein shall be considered or construed as an obligation on the part of HighPoint to
disconnect water service to any customer if, to do so, would be contrary to HighPoinf s Tariff
or any other state statute, rule, regulation applicable to HighPoint. The failure of HighPoint
to disconnect water to a customer that fails to keep an account current, when to do so would
be a violation of HighPoint's Tariff or other state statutes, rules or regulations applicable to
HighPoint, shall not constitute a default hereunder, or breach of this contract by HighPoint.
In the event HighPoint does disconnect water service to a customer in accordance with this
Section, HighPoint may choose to charge a customer reconnection and/or late fee and the
City shall not be entitled to any portion thereof. HighPoint shall only be required to remit to
the City those fees that otherwise would have been due to the City under this Section.
Should it become necessary to refer an account for collection to a collection agency, the City
shall be responsible for its proportionate share of such expense.
C•\DOCUME--1 \MHOWIN-- 1 \LOCALS-- I \Temp \MXLibDir\HIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06
v3 (Clcan).doc
Page 7 of 11
Page 15 of 60
9 Annual Report.
•
HighPoint shall provide an Annual Report to the City which shall be used for water planning
and budgeting purposes. The report shall be due no later than July 31s1 of each year and shall
be in the form attached hereto as Exhibit "A"
10. Force Majeure.
In case of reason of "force majeure" wherein either party hereto shall be rendered unable
wholly or in part to carry out its obligations under this Contract, then, if such party shall give
notice and full particulars of such "force majeure in writing to the other party within a
reasonable time after occurrence of the event or cause so relied on, the obligation of the party
giving such notice, insofar 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 a public enemy, orders of any kind of the government of the
United States or the State of Texas or any kind of civil or military authority, earthquake,
fires, hurricanes, storms, floods, washouts, droughts, arrests. restrain of government and
people, civil disturbances, explosions, breakage, or accidents of machinery, pipe lines or
canals. partial or entire failure of the water supply, and inability on the part of City to deliver
water hereunder or of HighPoint to receive such water, or on account of any other causes not
reasonably within the control of the party claiming such inability It is understood and agreed
that the settlement of strikes and lockouts shall be entirely within the discretion of the party
having the difficulty, and that the above requirement that any "force majeure" shall be
remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts
by acceding to the demands of the opposing party or parties when such settlement is
unfavorable to it in the judgment of the party having the difficulty
11 Hold Harmless.
HighPoint hereby agrees to hold the City whole and harmless from any claims or damages to
HigfrPoint water mains or water system resulting from the rate of flow or quantity of water
delivered, from any claims or damages arising as a result of the chemical or bacteriological
content of water provided, unless such damages resulting from the chemical or
bacteriological content of the water are caused by the negligence of the City, and from any
act or omission of any representative, agent, customer, employee, and/or invitee of
HighPoint, including any and all claims for damages. cost, and expenses, including
reasonable attorney's fees and costs of court, if any, that may arise out of, or be occasioned
by, this contract or any of its activities unless such damages result from the gross negligence
or willful misconduct of the City
C:1DOCUME-1\MHOWIN-11LOCALS-1 \Temp\MXLibDir\HIGHPO1NT Amended Of 1) Water Purchase Contract - 04-10-06

v3 (Cleaadoc
Page 8 of 11
Page 16 of 60
•
1 /. Term of Contract.
This Contract shall continue in force and effect for a period of 25 years from the effective
date hereof and for such period of time in addition thereto as may be agreed upon by the
parties.
13 Assignment.
This contract is herby assigned by HighPoint to FARMERS HOME ADMINISTRATION,

RURAL DEVELOPMENT, its successors and assigns, as security for certain loans extended,
renewed and/or increased by the UNITED STATES OF AMERICA, acting through the
FARMERS HOME ADMINSITRATION, to HighPoint. Provided that if FARMERS
HOME ADMINISTRATION assumes operational responsibility from HighPoint, they will
do so with the provisions of this contract. This contract may not be further assigned, or
reassigned if released from FARMERS HOME ADMINISTRATION, RURAL
DEVELOPMENT by HighPoint to any other party without the express written consent of the
City Council of the City of Forney
14 Modification and Review.
The Differential Rate established by this Contract may be modified by the City Council of
the City each year, provided that any modification shall be withheld until the City shall have
given HighPoint ninety (90) days notice in writing that a modification will take effect.
Should the NTMWD increase the price of water to the City of Forney then that increase will
be automatically and immediately reflected in the next billing to HighPoint without notice or
hearing.
15 Regulatory Bodies.
This Contract shall be subject to all valid rules, regulations, and law applicable hereto,
passed or promulgated by the United States of America, the State of Texas, or any
governmental body or agency thereof having lawful jurisdiction, or any authorized
representative or agency of any of them.
16 Sanitary Supervision.
It is agreed that HighPoint will furnish all sanitary supervision as may be necessary for the
purpose of inspection, observation, measurement, sampling, and testing of any of
HighPoint's waterline improvements to be constructed to accomplish the purposes of this
Contract and that such supervision shall be in accordance with the sanitary provisions of the
rules and regulations of the Texas Department of Health, the TCEQ, and the Sanitary and
Plumbing Codes of the City
C:DOCUME--11MHOWIN-11LOCALS-1\Temp\MXLibDir\HIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

v3 (Clean).doc
Page 9 of 11
Page 17 of 60
17 Limitation on Resale.
•
HighPoint agrees that it will not, during the term of this Contract, resell any of the treated
water it purchases from City hereunder to any wholesale or other customer other than retail
customers within its service area, without prior written consent by the City Council of the
City of Forney, Texas , based on a formal action of the Council.
18. Notice.
All notices or communications provided for herein or necessary in connection with this
Contract shall be in writing and hand delivered or sent certified mail, postage prepaid, return
receipt requested, to:
City of Forney HighPoint Water Supply Corporation

P 0 Box 826 16986 Valleyview
Forney, Texas 75126 Forney, Texas 75126
Either address may be changed by either party by written notice to the other party
IN WITNESS WHEREOF, the parties hereto have executed this Contract in duplicate originals on
the date first written above, which date shall also be the effective date hereof.
CITY OF FORNEY, TEXAS HIGHPOINT WATER SUPPLYCORPORATION
1:
010114; ''
l0 of FO Groo
i President
...- -L-Cs 1-1
- cf
-
- st: 1. Attest:
%*
- By.
Moore
City Secretary Secretary
. ;COVED TO FO
41p / el
f
City Attorney
C: \DOCUME-11MHOWIN--BLOCALS-1 \Temp\MXLibDir\HIGHPOINT Amended (#11 Water Purchase Contract - 04-10-06

v3 (Clean).doc
Page 10 of 11
Page 18 of 60
EXHIBIT "A"
Annual Report
Below is the Annual report required by Section 9 of that certain Wholesale Water Contract by and
between the water supply corporation named below and the City of Forney
Name of Water Supply Corporation.

Name/title of person completing report:
Contact number of person completing report:
Number of active connections for
current reporting period (June 1 through July 31):
Average demand per connection for
current reporting period (August 1 through July 31):
Projected number of connections in
next Water Year (August 1 through July 31):
Projected demand per connection for
next Water Year (June 1 through July 31):
Projected total demand for
Printed Name of Person Completing Report
Signature of Person Completing Report
Date of Submission
C'DOCUME-1.1MHOWIN--11LOCALS-11Temp\MXLibDir\H1OHPOINT Amended f#1) Water Purchase Contract - 04-10-06

v3 (Clean).doc
Page 11 of 11
Page 19 of 60
AMENDMENT #1 TO
STATE OF TEXAS
COUNTY OF KAUFMAN §
This Amendment #1 to the Wholesale Water Contract ("Amendment #1") is made and entered into
this 44,4"e . a 2006, by and between the City of Forney, Texas, a municipal corporation in
Kaufman County, Texas, azting under the laws ofthe State ofTexas (hereinafter called "City"), and
IfighPoint Water Supply Corporation (hereinafter called "IfighPoint"):
W1TNESSETH:
WHEREAS, HighPoint and the City entered into a Wholesale Water Contract dated May 2,
2006 ("Contract"), whereby the City agreed to provide potable water to HighPoint in
quanfities specified therein; and
WHEREAS, the Contract was submitted to the North Texas Municipal Water District
("NTMWD") for review and approval; and
WHEREAS, the Board of Directors of the NTMWD approved such Contract contingent
upon City and HighPoint making certain changes to the Contract;

contained, the parties agree that the City and I-figbPoint hereby amend the Contract as
hereafter set forth, to wit
1. That the above recitals are hereby found to be true and correct and are incorporated herein for
all purposes.
2. City and IfighPoint agree to amend that certain Wholesale Water Contract dated May 2, 2006
("Contract") by adding a Section 19 containing the following language:
19. Additional Reenairenumta of the N•Ith Texas Manicinal Water District.
a. Place of Use. The Parties acknowledge and agree that, notwithstanding any
provisions of this Agreement to the contrary, any water supply made
available to HighPoint hereunder shall be used solely in the Trinity River
Basin and shall not be authorized for use outside of the Trinity River Basin.
b. Conservation. HighPoint shall prepare, formally adopt, and implement a

water conservation plan that is consistent with TCEQ requirements and that is
consistent with similar plans adopted by the City and the NTMWD.
CADocuments end SettingaindaWy DocturentANTMWDLtr(PODundAmendeoWSCContrads)05-30-

06tAmendwandltreIGHPOINTWaterPurchaseContractdated05-02-06.doc
Page l of 2
Page 20 of 60
•
c. Surface water Impoundments. IfighPoint or its customers shall not use
treated water for the purpose of filling or maintaining the level of surface
water impoundments without the express written consent of the City and the
NTMWD.
d. Title to Water: Indemnification. Title to all water supplied to IfighPoint shall

be in the City up to the Point of Delivery, at which point title shall pass to the
HighPoint, except that the NTMWD reserves the right of reuse of treated
effluent resulting from the use of water by the NTMWD, its customers or
IfighPoint, to the extent authorized by the State of Texas. The NTMWD, the
City, and IfighPoint shall save and hold each other harmless from all riaims,
demands, and ranges of action., which may be asserted by anyone on account
of the transportation and delivexy of said water, while title remains in such
party Notwithstanding anything contained herein to the contrary, the parties
hereto do not waive and hereby expressly retain any and all immunities and
defenses, sovereign, legislative, official and otherwise, that each may now or
hereafter possess. Nothing contained in this Contract shall be interpreted as
conferring any rights to any petson not a party to this Contract.
3. This Amendment #1 shall be deemed to have been incorporated into the Contract for all
purposes with the same force and effect as all other provisions of said Contract. Except as
specifically amended by this Amendment #1, the provisions of the Contract shall remain in full force
and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 in duplicate
originals on the date first written above, which date shall also be the effective date hereof.
CITY OF FORNEY, TEXAS HIGHPOINT WATER SUPPLYCORPORATION
Attest
• .&kSAO& 11 .SA
11/inin ntliattasa
Moore
City Secretary
APPROVED AS TO FORM4)
cg4 j4aer
City Attorney
CM)oeureents and SeuinedledaWy Doeumeter17+4WDLtr(PODivadAmendloWSCContrat005-30-
061Ainendmemall IteHIGHPOINfWaterPurehaseCcalractdated0542-06.doe
Page 2 of 2
Page 21 of 60
AMENDMENT #2 TO
STATE OF TEXAS §
This Amendment #2 to the Wholesale Water Contract ("Amendment #2-) is made and entered
into by and between the City of Forney, Texas, a municipal corporation in Kaufman County, Texas acting
under the laws of the State of Texas (hereinafter called the "City"), and High Point Water Supply
Corporation (hereinafter called "High Point"):
WHEREAS, High Point and thc City entered into a Wholesale Water Contract dated May 2,
2006 ("Contracr), whereby the City agreed to provide specified quantities of potable water to High Point
at a wholesale rate; and
WHEREAS, High Point and the City entered into that certain Amendment #1 to Whole Water
Contract, dated June 22, 2006, to add a Section 19 setting forth additional requirements of the North
Texas Municipal Water District; and
WHEREAS, thc City also supplies wholesale potable water to other retail public water utilities
including Talty Special Utility District ("Tatty SUD") and Kaufman County Development District No. 1
("KCDD No. 1"); and
WHEREAS, High Point, Talty SUD and KCDD No. 1 (collectively the "PS2 Participants") have
requested additional quantities of potable water from the City to supply rapidly growing populations
located inside their respective certificated service areas; and
WHEREAS, the City agrees to make improvements to the City's water system including
completion of Phase 2 of Pump Station #2, which generally consists of a five million gallon water tank,
pumps, and appurtenances, and the City and PS2 Participants will participate in the cost of the
improvements based on the City's and PS2 Participants allocated share of the increased pumping
capacity of Pump Station #2 after Phase 2 is complete; and
WHEREAS, the City will have available potable water in quantities hereinafter agreed to under
this Amendment #2 to be sold by High Point, subject to the terms and provisions of the Contract as
amended by this Amendment #2 and previous amendment.

contained, the parties agree that the City and High Point hereby amend the Contract as follows:
1. The partics hereto find the above recitals to be true and correct and the same are
incorporated herein for all purposes.
2. The first sentence of the first paragraph of Section 2 of the Contract is hereby amended
and restated in its entirety to read as follows:
Quantiv
Subject to the provisions of this Contract and available supply from North Texas
Municipal Water District ("NTMWD"), and following completion of Phase 2 of
2017 Amendment #2 to Wholesale Water Contract Pagel 1
Page 22 of 60
Pwitp Station #2 as described in Section 7.1 of this Contract, the City agrees
during the tem of this Contract to deliver treated water to High Point at a rate
not to exceed 7,525 gallons per minute (or 10,836,000 gallons per day) at High
Point's two points of delivety located at Glenwood Trail (at the intersection of
Ranch Road) and at FM 598 (just south of the intersection of Reeder Road)
respectively, with a maximum delivery rate of 3,762 gallons per minute to each
point of delivoy or as equally distributed as possible.
3. The Contract is amended to add Section 7.1 as follows:
73 Phase 2 of Pump Station ii2,
The City agrees to inake improvements to the City's water systent

including completion of Phase 2 of Pump Station #2, which will
generally consist of a 5,000,000 gallon water tank, pumps, and
appurtenances. The City and PS2 Participants will participate in the
total cost of Phase 2 of Pump Station #2 based on each entity's allocated
share of the increased pumping capacity of Ptunp Station #2 after Phase
2 is complete and put into service. High Point's allocated share of the
Phase 2 improvements will be 3,612 gallons per minute. High Point's
pro rata share of the total cost of the Phase 2 improvements is 34.70% or
$2,585,095.56, less previous contributions for design and engineering in
the amount of $75,199.00. leaving a remaining balance of $2,509,996.56
owed to the City.
The total cost of Phase 2 of Pump Station #2 stated above includes a

25% construction contingency fitnd. Within 10 days after completion of
the Phase 2 improvements the City shall refitnd the balance of High
Point's construction contingency ftmds.
4. Except as expressly modified by this Amendment #2 and previous amendments to the

Contract, all terms and provisions of the Contract are hereby ratified and confirmed and shall rcmain in
full forcc and effect.
5. The undersigned represent and affirm that they have authority to execute this Amendment
#2 on behalf of the respective parties hereto.
6. This Amendment #2 shall be effective from and after the date of the last party to execute
this Amendment #2.
IN WITNESS WHEREOF, thc parties hereto have caused this Amendment #2 to be executed
by its duly authorized representatives in multiple copies, each of equal dignity, on the date or dates
indicated below.
2017 Amendment #2 to Wholesale Water Contract Page l 2
Page 23 of 60
CITY OF FORNEY, TEXAS
By:
Rick Wilso ,
Date: \ 211 2017
ATTEST: APPROVED AS TO FORM:
Dorothy Brooks / ity Secretary Jon T atchcr, City Attorney
OF.L0p0,1'1
[SEAL]
i*
** /*
EXAS
Page 24 of 60
HIGH POINT WATER SUPPLY CORP.
By:
Susie Taylor, President
Date: , 2017
Samantha Keats, Secretary James W. Wilson, Attorney for

High Point Water Supply Corporation
[SEAL]
Page 25 of 60
Exhibit B
Page 26 of 60
STATE OF TEXAS
COUNTY OF KAUFMAN
This Wholesale Water Contract (`Contract") is made and entered into thisqf 2006, by
and between the City of Forney, Texas, a municipal corporation in Kaufman Coun , Texas, acting
under the laws of the State of Texas (hereinafter called "City"), and Talty Water Supply Corporation
(hereinafter called "Talty"). This contract supersedes all Wholesale Water Contracts that may have
been previously entered into by and between the parties prior to the date indicated above:
WITNESSETH:
WHEREAS, Talty and the City have previously entered into a Wholesale Water Contract
dated December 18, 2001, whereby the City weed to provide potable water to Talty in
quantities specified therein; and
WHEREAS, due to increased development and demand for water within Tatty' s service
area, it has become necessary for Tally and the City to restate and amend the prior Wholesale
Water Contract to provide for additional quantities of potable water to meet the current and
future demand for water by customer within Talty's service area; and
WHEREAS, Talty is desirous of obtaining an additional adequate and dependable water

supply; and
be sold by it to Tatty, subject to the terms and provisions of this Contract; and
water by City to Talty and to establish the rate, duration, metering, and related

contained, the parties agree that the City will furnish and Talty will pay for water supply
I. Responsibilities of the Parties.
to support rate changes, and for informing Talty of changes in financial data.
CADOCUME-1\MHOWIN--1\LOCALS--11Temp\TALTY Arnended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 1 of 11
Page 27 of 60
b. Talty is responsible for keeping the City informed concerning its projected water
supply needs and operating requirements, for planning and managing the Talty
rates adequate to cover costs incurred in providing services to it. Talty is also
within the Talty system in accordance with rules and regulations set forth by the
Texas Commission on Environmental Quality (`TCET), or its successor agency.
2. Quantity.
Water District ("NTMWD"), the City agrees, during the term hereof and at the delivery
points hereafter specified, to deliver treated water to Talty at a rate not exceeding Two
Thousand Five Hundred Ninety (2,590) gallons per minute (Three Million Seven Hundred
Twenty Nine Thousand Six Hundred [3,729,600] gallons per day) at Talty's two delivery
points located at FM1641 and FM 741 respectively with one half or One Thousand Two
Hundred Ninety Five (1,295) gallons per minute maximum being delivered to each point of
delivery or as equally distributed as possible. Rates of delivery shall be regulated by a rate of
flow controller installed by Talty but solely accessible by the City. The City shall have
authority to limit Talty's usage in the event City does not have the ability to provide the
usage permitted. City will use its best efforts to remain in a position to furnish treated water
as herein contracted to be sold to Talty, but the City's obligations shall be limited in
accordance with other conditions herein contained. In the event the total water supply
available to the City shall be insufficient to meet all of the needs of the residents of the City
and custorners of Tally, the City may prorate the water available among all customers of the
City and Talty. In the event of shortage, Talty shall be furnished water in a quantity which
bears the same proportion to the total water available to City for use by individual
connections as the number of individual connections served by the City. Talty may prescribe
a schedule of hours covering use of water for the watering of lawns and gardens by its
customers, and require adherence hereto, or prohibit the use of water for the watering of
lawns and gardens, provided that if at any time the total water supply available to Talty shall
be insufficient to meet all the needs of its customers, water must first be furnished to all
customers of Talty sufficient to satisfy their needs for domestic purposes before supplying
any water for the watering of lawns and gardens. Further, Talty shall institute a Drought
Contingency and Water Emergency Plan that meets the requirements of the NTMWD and/or
the requirements of the TCEQ, or any other governmental entity having jurisdiction thereof,
whichever is more stringent. Talty shall give reasonable notice to City of any anticipated
changes in demand requirements. Such notice shall be utilized by City in determining
whether construction of addifional facilities or utilization of existing system capacity will be
required. In the event of a change in demand requirements, Talty shall be responsible for the
cost of any additional facilities, or the utilization of existing excess system capacity (even if
such utilization of existing capacity does not require additional construction), in which direct
participation has not already occurred by Talty. Payments by Talty contemplated by this
section for additional facilities are required prior to the awarding of any construction
contracts. Payment by Talty for utilization of existing excess capacity must be paid prior to
CADOCUME--1\MHOWIN--I\LOCALS-1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 2 of 11
Page 28 of 60
the capacity being provided. Tatty understands and agrees that City's ability and capacity to
provide increases in demand or volume is subject to available supply and the ability to
deliver treated water as may be determined by City through its sole source of such water,
NTMWD. The City reserves the right to enter into water purchase contracts with other
entities under the same or similar provisions as contained in this contract.
Subject to approval by NTMWD and the payment of One Hundred Ninety-Four Thousand
Four Hundred Dollars ($194,400.00) by Talty to City for the cost of improvements to the
water transmission system the above quantities include an additional one million gallons per
day capacity beyond that additional amount contemplated in Section 7.b.3. of this Contract.
3. Quality.
Under the provisions of this Contract, City is obligated to furnish Tatty treated water suitable
for human consumption in accordance with all applicable laws, rules, and regulations of this
state.
4. Point(s) of Delivery.
The points of delivery of water to Talty from the City's system shall be at Talty's two
delivery points at FM1641 and FM 741 respectively in the manner and the amounts specified
in Section 2 above. Talty shall install a flow meter and a rate of flow controller to be set
according to the contracted amount of water contained herein at the point of delivery. All
flow meters installed after the date of this Contract shall be equipped with Supervisory
Confrol and Data Acquisition ("SCADA) transmission devices. All existing meters as of
the effective date of the Contract shall be equipped in conformance with this provision within
three years of such effective date. City agrees to deliver at the point of delivery the quantities
of water herein contracted for, said water to be delivered at the pressure which is maintained
in the water supply system of the City, it being specifically understood that the City is under
no obligation to furnish pressurized treated water to any connection between the delivery
point and Talty's facilities for sustaining and/or increasing pressure to include the below
mentioned air gap. Talty rnay utilize the pressure which is maintained in the City system for
the movement of water from the delivery point to the point where Talty shall have facilities
for sustaining or increasing pressure. Talty agrees that it shall take all reasonable measures to
insure all lines and equipment installed and operated by it and that all lines and plumbing
facilities which are installed or owned by its customers shall comply with the Plumbing and
Sanitation Codes of the City and the requirements of the TCEQ, as the same now exist or as
they may be modified hereafter. Talty must provide an air gap prior to any connections of
service. Cost of all connection facilities from the delivery point to the contracting party's
facilities installed subsequent to the date of this contract shall be borne by Talty. Talty shall
be responsible for the design, contracting, construction, and financing of connection facilities
and acquisition of any right-of-way for delivery of the water from the applicable delivery
point to Tally's facilities. Should the quantities desired by Tatty as contained herein or
identified at a future date require improvements to the City of Forney facilities or the City of
Forney distribution system, or require the utilization of existing excess system capacity (even
CADOCUME--1\MHOWIN-11LOCALS--1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Ckan).doc

Page 3 of 11
Page 29 of 60
if such utilization of existing capacity does not require additional construction), in which
direct participation has not already occurred by Talty then, in such case, Talty shall be
described excess capacity utilization. Payments by Talty contemplated by this section for
additional facilities are required prior to the awarding of any construction contracts and for
the utilization of existing excess capacity payments must be made prior to the capacity being
provided. Any improvements made to the City of Forney distribution system up to the point
of delivery become the property of the City of Forney. Plans for such improvements shall be
submitted to City for written approval with all designs, materials and specification
conforming to the City's requirements. The City shall have the right to make periodic
5. Measuring Equipment.
Tatty shall furnish, install, operate, and maintain at its own expense at the delivery point, the
necessary equipment and devices of standard type, as approved by the City, for measuring
properly the quantity of water delivered under this Contract. City shall read the meter
monthly, and Tatty shall test and calibrate the meter at intervals of not more than twenty-four
(24) months. The cost of all tests shall be borne by Talty, provided however, that if any
special test is made at the request of City and shall disclose that the meter is recording
accurately, City shall reimburse Tally for the cost of such tests. Meters registering not more
than one and one-half percent (1 'A%) above or below normal shall be deemed to be accurate.
The readings of any meter which have been disclosed by test to be inaccurate shall be
corrected for the ninety (90) days preceding the test in accordance with the percentage of
inaccuracy found. Should any meter fail to register for any period, the amount payable shall
be based upon the water delivered in the corresponding period immediately prior to the
failure, unless the City and Talty shall agree to the amount of water furnished during such
period. The meters used under this Contract shall be read on the last day of each calendar
month by the City's operator and shall be avthlable for checking by a representative of Talty
during normal business hours of the City.
6. Unit of Measurement.
7. Price and Terms.
terms of this Contract by Tatty shall constitute the Annual Minimum. Talty will pay
for all water services required hereby as indicated below:
1. Talty shall pay for all water purchased under this Contract, save and except
that amount of water contemplated in Section 7.a.2. below, shall be paid for at a rate
of Sixty Three percent (63%) above the rate charged City by NTMWD per one
CADOCUME-11MHOWIN--11,0CALS--11Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 4 of 11
Page 30 of 60
thousand (1,000) gallons (`Differential Rate) for water furnished to the City. Said
Differential Rate subject to the above factors during any City Council review is to
that portion of the rate above Sixty Three percent (63%).

infrastructure from Forney pump station #1 to Forney pump station #2 (PS#2
Minimum" hereinafter defined in 7.b.(3) below) will be paid for by Talty at the rate
charged City by NTMWD. The PS#2 Minimum which is used in one year and used
the next, will be paid for by Talty at the Differential Rate subject to the same terms
and conditions outlined in 7.a. 1 . above.
b. The Annual Minimum amount of water that Tatty shall be deemed to have been taken
and used, regardless of whether or not such amount is or was actually taken or used,
and which Talty shall be required to purchase and pay for at the above rate shall be
calculated as:
the greater of:
(1) 266,940,000 gallons, or
(2) the maximum number of gallons actually taken from the system by Talty
during any previous Water Year during the term of this Contract. For
purposes of this section, Water Year means the period of August 1 of each
calendar year through July 31 of the next following calendar year,
plus:
#2 is capable of pumping water which may not necessarily be when Talty is
ready to take/receive water from the pump station. The annual PS#2
CADOCUME--1 WHOWIN-11LOCALS-1 \Temp VTALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc
Page 5 of 11
Page 31 of 60
Minimum amount shall be implemented over a six year period as indicated
below unless such amounts are changed by action of the NTMWD:
Annual Annual
Year 1 3,185,965 NA
Year 2 5,097,581 1,911,616
Year 3 7,009,136 1,911,555
Year 4 8,920,752 1,911,616
Year 5 10,832,307 1,911,555
Year 6 12,743,922 1,911,615
amount of Year 1 PS#2 Minimum indicated above shall be divided by twelve
current rate charged by NTMWD to City for water.
c. The Annual Minimum amount of water Talty will be required to purchase at the
and the amount of water to be purchased by Talty during the following Annual
7.b. above. For purposes of this section, "Annual Payment Periocr shall mean
year.
Talty to the City in twelve (12) equal monthly installments, each of which shall be
due and payable on or before the 10th day of the month following the service.
Annual Minimum payment effective for that year shall be made by Talty to the City
at the rates specified herein as follows: When Talty usage exceeds one hundred
percent (100%) of the Annual Minimum amount required to be taken or paid for
during any year, charges for the excess water will be billed by the City to Talty on the
second month following the month in which the one hundred percent (100%) level is
reached, such billing being for the excess water delivered in the month prior to the
month being billed, and the procedure shall continue to the end of the water year with
Talty making payment for all the excess not previously paid for on or before the lOth
CADOCUME-.1\MHOWIN--1\LOCALS--1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 6 of 11
Page 32 of 60
of the month following the end of such water year. Tatty' s liability and responsibility
for making such payments as herein set forth shall commence on the effective date of
this Contract. The initial monthly payment shall be one-twelfth (1/12) of the amount
that would result from the sale of 266,940,000 gallons at the above rate.
e. In the event Talty shall fail to make any such monthly payment or annual payment
within the time required, interest on such amount shall accrue at the rate of ten
percent (10%) per annum from the date such payment becomes due until paid in full
with interest, as herein specified. In the event said payment is not made within sixty
(60) days from the date such payment becomes due, City may, at its option,
discontinue delivery of water to Talty until the amount due City is paid in full with
interest as herein specified.
customers within Tally's water service area. The City and Tally agree that Talty will provide
billing services for sewer and/or garbage collection service, as applicable, through its billing
process. Talty agrees that it will bill and collect at rates established by the City and will
remit to the City on a monthly basis the total collected for such services less a ten percent
(10%) administiative services fee. Talty will provide a statement with each monthly
remittance including the total collected by customer, less the administrative fee and the net
amount.
past due), including sewer and/or garbage service charges and, in that regard, Taity agrees,
except as otherwise set forth in this Section, to disconnect, in accordance with its Tariff,
water service to any customer who fails to keep an account current. Provided, however, that
the parties recognize and agree that Talty is bound by and limited in its ability to disconnect
water service to a customer by the tenns and conditions of its Tariff together with the other
state statutes, rules and regulations applicable to Talty. Nothing herein shall be considered or
construed as an obligation on the part of Talty to disconnect water service to any customer if,
to do so, would be contrary to Talty's Tariff or any other state statute, rule, regulation
applicable to Talty. The failure of Talty to disconnect water to a customer that fails to keep
an account current, when to do so would be a violation of Talty's Tariff or other state
statutes, rules or regulations applicable to Talty, shall not constitute a default hereunder, or
breach of this contract by Talty. In the event Talty does disconnect water service to a
customer in accordance with this Section, Talty may choose to charge a customer
reconnection and/or late fee and the City shall not be entitled to any portion thereof. Talty
shall only be required to remit to the City those fees that otherwise would have been due to
the City under this Section. Should it become necegsnry to refer an account for collection to
a collection agency, the City shall be responsible for its proportionate share of such expense.
CADOCUME-11MHOWIN-1\LOCALS--11Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 7 of 11
Page 33 of 60
9. Annual Report.
Tatty shall provide an Annual Report to the City which shall be used for water planning and
budgeting purposes. The report shall be due no later than July 3 lst of each year and shall be
in the form attached hereto as Exhibit A.
10. Force Majeure.
In case of reason of "force majeure wherein either party hereto shall be rendered unable
notice and full particulars of such "force majeure in writing to the other party within a
giving such notice, insofar as it is affected by such "force majeure shall be suspended during
"force majeure as employed herein, shall mean acts of God, strikes, lockouts, or other
fires, hurricanes, storms, floods, washouts, droughts, arrests, restrain of government and
canals, partial or entire failure of the water supply, and inability on the part of City to deliver
water hereunder or of Talty to receive such water, or on account of any other causes not
reasonably within the control of the party claiming such inability. It is understood and agreed
having the difficulty, and that the above requirement that any "force majeure shall be
unfavorable to it in the judgment of the party having the difficulty.
11. Hold Harmless
Talty hereby agrees to hold the City whole and harmless from any claims or damages to Talty
water mains or water system resulting from the rate of flow or quantity of water delivered,
from any claims or damages arising as a result of the chemical or bacteriological content of
water provided, unless such damages resulting from the chemical or bacteriological content
of the water are caused by the negligence of the City, and from any act or omission of any
representative, agent, customer, employee, and/or invitee of Tally, including any and all
claims for damages, cost, and expenses, including reasonable attorney' s fees and costs of
court, if any, that may arise out of, or be occasioned by, this contract or any of its activities
unless such damages result from the gross negligence or willful misconduct of the City.
CADOCUME--1 \MHOWIN-1 \LOCALS-1 WemplTALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc
Page 8 of 11
Page 34 of 60
12. Term of Contract.
parties.
13. Assignment.
This contract may not be assigned by Talty to any other party without the express written
consent of the City Council of the City of Forney.
14. Modification and Review.
given Talty ninety (90) days notice in writing that a modification will take effect. Should
the NTMWD increase the price of water to the City of Forney then that increase will be
automatically and immediately reflected in the next billing to Talty without notice or hearing.
15. Regulatory Bodies.
16. Sanitary Supervision.
It is agreed that Talty will furnish all sanitary supervision as may be necessary for the
purpose of inspection, observation, measurement, sampling, and testing of any of Talty's
waterline improvements to be constructed to accomplish the purposes of this Contract and
that such supervision shall be in accordance with the sanitary provisions of the rules and
regulations of the Texas Department of Health, the TCEQ, and the Sanitary and Plumbing
Codes of the City.
17. Limitation on Resale.
Talty agrees that it will not, during the term of this Contract, resell any of the treated water it
purchases from City hereunder to any wholesale or other customer other than retail customers
within its service area, without prior written consent by the City Council of the City of
Forney, Texas , based on a formal action of the Council.
CADOCUME-1\MHOWIN-.1 \LOCA1S-4 \Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc
Page 9 of 11
Page 35 of 60
1 8. Notice.
City of Fomey Talty Water Supply Corporation

P.O. Box 826 P.O. Box 890
Fomey, Texas 75126 Forney, Texas 75126
Either address may be changed by either party by written notice to the other party.
CITY OF FORNEY, TEXAS TALTY WATER SUPPLYCORPORATION
By: ChAVe_' tie 11 By: .1P- Cs4 ) a kt X"Li:4

\owal iffitorpll Grooms
OF F tto., President
s
Attest:
\
* tintvoRQ
%tin it a Moore
City Secretaty Secretary
PROVED AS TO FORM:
City Attorney
CADOCUME--11MHOWIN-1\LOCALS-4 \Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 10 of 11
Page 36 of 60
EXHIBIT "A"
Annual Report
between the water supply corporation named below and the City of Forney.
Name of Water Supply Corporation:

current reporting period (June 1 through July 31):
current reporting period (August 1 through July 31):
next Water Year (August 1 through July 31):
Printed Name of Person Completing Report
Signature of Person Completing Report
Date of Submission
CADOCUME-1\MHOWIN--1\LOCALS-1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

Page 11 of 11
Page 37 of 60
AMENDMENT #1 TO
STATE OF TEXAS
This sendment 1 to the Wholesale Water Contract ("Amendment #1") is made and entered into
this 111 I _ . 2006, by and between the City of Forney, Texas, a municipal corporation in
Ka i County, Texas, acting under the laws of the Stale of Texas (hereinafter called -city"), and
Tatty Water Supply Corporation (hereinafter called "Talty"):
WITNESSETH:
WHEREAS, Talty and the City entered into a Wholesale Water Contract dated May 2, 2006
("Contract"), whereby the City agreed to provide potable water to Talty in quantities
specified therein; and
upon City and Talty making certain changes to the Contract

contained, the parties agree that the City and Talty hereby amend the Contract as hereafter set
forth, to wit
all purposes.
2. City and Talty agree to amend that certain Wholesale Water Contract dated May 2, 2006
("Confiner) by adding a Section 19 containing the following language:
19. Additional Requirements of the North Tpxas Municipal Water District
provisions of this Agreement to tbe contrary, any water supply made
available to Talty hereunder shall be used solely in the Trinity River Basin
and shall not be authorized for use outside of the Trinity River Basin.
b. Conservation. Talty shall prepare, formally adopt, and implement a water

conservation plan that is consistent with TCEQ requirements and that is
CADocumcnts and SeatingsikirreLoca1SceingsVremporary blame Files1ContontlEAT.13T10EIAnandment /1 tol'ALTY

Wmor Purchase Contract dated 05-02-06.doc
Page 1 of2
Page 38 of 60
v.,
OD -
c. Surface water Impoundments. Talty or its customers shall not use treated
water for the purpose of filling or maintaining the level of surface water
impoundments without the express written consent of the City and the
NTMWD.
d. Title to Water: Indemnification. ritle to all water supplied to Talty shall be

in the City up to the Point of Delivery, at which point title shall pass to the
Tally, except that the NTMWD reserves the right of reuse of treated effluent
resulting froin the use ofwater by the NTMWD, its customers or Talty, to the
extent authorized by the State of Texas. The NTMWD, the City, and Talty
shall save and hold each other hannless from all claims, demands, and causes
cf action, which may be asserted by anyone on account of the transportation
and delivery of said water, while title remains in such party. Notwithstanding
anything contained herein to the contrary, the parties hereto do not waive and
hereby expressly retain any and all immunities and defenses, sovereign,
legislative, official and otherwise, that each may now or hereafter possess.
Nothing contained in this Contract shall be interpreted .as conferring any
rights to any person not a party to this Contract.
purposes with the same force and effect as all other provisions of said Contract Except as
and effect.
originals on _the date fust written above, which date chali also be the effective date hereof.
CITY OF FORNEY, TEXAS TALTY WATER SUPPLYCORPORATION
., ., By. 04"4.0P ,Q11

is7/0arrell Gro
,. ‘019myl t LOU& 141.59e1—
, 1 4.yor
' - Of Faii President
-
Attest
By
essa Moore 11%4i CA CAt.A1 CRT
iffintitiO City Secretary Secretary
City Attorney .
CADocuments aad SettinglakinstLocod Settings1Tempotary latetnet Files1Content.1E5713379CEIAzocadtneot #1 to TALTY
Water Purdisse Caw= dated 05-02-06.doe
Page 2 of 2
Page 39 of 60
AMENDMENT #2 TO
STATE OF TEXAS §
This Amendment #2 to the Wholesale Water Contract ("Amendment #T') is made and entered
into by and between the City of Forney, Texas, a municipal corporation in Kaufman County,
Texas acting under the laws of the State of Texas (hereinafter called the "City"), and Talty
Special Utility District, formerly known as Talty Water Supply Corporation, a political
subdivision of the State of Texas (hereinafter called "Talty"):
WITNESSETH:
WHEREAS, Talty and the City entered into a Wholesale Water Contract dated May 2,
2006 (`Contract") and executed Arnendment #1 to the Contract on June 22, 2006 ("Amendment
#1"), whereby the City agreed to provide potable water to Talty in quantities specified therein;
and
WHEREAS, Talty has requested additional quantities of water from the City to provide
for the growing needs within the service area of Talty; and
WHEREAS, the City will have available potable water in quantities hereinafter agreed to
under this Amendment #2 to be sold to Talty, subject to the terms and provisions of the Contract
and this Amendment #2;

contained, the parties agree that the City and Talty hereby amend the Contract as hereafter set
forth, to wit:
1. That the above recitals are hereby found to be true and correct and are incorporated
herein for all purposes.
2. The City and Talty agree to amend Section 2. of the Wholesale Water Contract dated
May 2, 2006 by deleting it in its entirety and replacing it with the following:
2. Quantity.
Subject to the provisions of this Contract and available supply from North Texas
Municipal Water District ("NTMWD"), the City agrees, during the term hereof and at the
delivery points hereafter specified, to deliver treated water to Tatty at a rate not to exceed
Three Thousand Five Hundred Ninety (3,590) gallons per minute (Five Million One
Hundred Sixty Nine Thousand Six Hundred [5,169,600] gallons per day) at Talty's two
delivery points located at FM 1641 and FM 741 respectively with one half or One
Thousand Seven Hundred Ninety Five (1,795) gallons per minute maximum being
Page I 1
Page 40 of 60
delivered to each point of delivery or as equally distributed as possible. Rates of delivery
shall be regulated by a rate of flow controller installed by Talty but solely accessible by
the City. The City shall have authority to limit Taltys usage in the event City does not
have the ability to provide the usage permitted. City will use its best efforts to remain in
a position to furnish treated water as herein contracted to be sold to Talty, but the Citys
obligations shall be limited in accordance with other conditions herein contained. In the
event the total water supply available to the City shall be insufficient to meet all of the
needs of the residents of the City and customers of Talty, the City may prorate the water
available among all customers of the City and Talty. In the event of shortage, Talty shall
be furnished water in a quantity which bears the same proportion to the total water
available to City for use by individual connections as the number of individual
connections served by the City. Talty may prescribe a schedule of hours covering use of
water for the watering of lawns and gardens by its customers, and require adherence
hereto, or prohibit the use of water for the watering of lawns and gardens, provided that if
at any time the total water supply available to Talty shall be insufficient to meet all the
needs of its customers, water must first be furnished to all customers of Talty sufficient to
satisfy their needs for domestic purposes before supplying any water for the watering of
lawns and gardens. Further, Talty shall institute a Drought Contingency and Water
Emergency Plan that meets the requirements of the NTMWD and/or the requirements of
the TCEQ, or any other governmental entity having jurisdiction thereof, whichever is
more stringent. Talty shall give reasonable notice to City of any anticipated changes in
demand requirements. Such notice shall be utilized by City in determining whether
construction of additional facilities or utilization of existing system capacity will be
required. In the event of a change in demand requirements, Talty shall be responsible for
the cost of any additional facilities, or the utilization of existing excess system capacity
(even if such utilization of existing capacity does not require additional construction), in
which direct participation has not already occurred by Talty. Payments by Talty
contemplated by this section for additional facilities are required prior to the awarding of
any construction contracts. Payment by Talty for utilization of existing excess capacity
must be paid prior to the capacity being provided. Talty understands and agrees that
City's ability and capacity to provide increases in demand or volume is subject to
available supply and the ability to deliver treated water as may be determined by City
through its sole source of such water, NTMWD. The City reserves the right to enter into
water purchase contracts with other entities under the same or similar provisions as
contained in this contract.
specifically amended by this Amendment #2 and the previous Amendment #1, the provisions of
the Contract shall remain in full force and effect until such time they are amended, modified, or
superseded by other provisions to account for future phases of improvements for Pump Station
#2.
Page I 2
Page 41 of 60
IN WITNESS WHEREOF, the parties hereto have caused this Amendment #2 to be executed
( by its duly authorized representative in multiple copies, each of equal dignity, the effective date
of which is the last date of execution by the parties.
EXECUTED by the CITY on this the ep* day of , 2017.
CITY OF FORNEY, TEXAS,

a municipal corporation of the State of Texas
By:
Rick Wilson, Mayor
APPROVED AS TO FORM: ATTEST:
Jon hatcher, City Attorney Dorothy Brook ity Secretary
EXECUTED by TALTY on this the 2, c day of , 2017.
TALTY SPECIAL UTILITY DISTRICT,

a political subdivision of the State of Texa
By:
stervich, President
ATTEST:
Bill Hart, Secretary
Page l 3
Page 42 of 60
AMENDMENT #3
TO WHOLESALE WATER CONTRACT
THE STATE OF TEXAS§

§
This Amendment #3 to Wholesale Water Contract ("Amendment #3") is made and entered
into by and between the City of Forney, a Texas municipal corporation located in Kaufman County
(the "City"), and Talty Special Utility District, a Texas political subdivision and retail public water
utility ("Talty SUD"):
WHEREAS, Talty SUD and the City entered into a Wholesale Water Contract dated May 2,
2006, ("Contrace), whereby the City agreed to provide specified quantities of potable water to
Talty SUD at a wholesale rate; and
WHEREAS, Talty SUD and the City entered into that certain Amendment #1 to Wholesale
Water Contract, dated June 22, 2006, to add a Section 19 setting forth additional requirements
of the North Texas Municipal Water District; and
WHEREAS, Talty SUD and the City entered into that certain Amendment 1t2 to Wholesale
Water Contract, dated July 6, 2017, amending Section 2 of the Contract to increase the amount
of potable water available to be delivered to Talty SUD; and
WHEREAS, the City also supplies wholesale potable water to other retail public water
utilities including High Point Water Supply Corporation ("High Point WSC") and Kaufman County
Development District No. 1 ("KCDD No. 1"); and
WHEREAS, Talty SUD, High Point WSC and KCDD No. 1 (collectively the "PS2 Participants")
have requested additional quantities of potable water from the City to supply a rapidly growing
populations located inside their respective certificated service areas; and
WHEREAS, the City agrees to make improvements to the City's water system including
completion of Phase 2 of Pump Station #2, which generally consists of a five million gallon water
tank, pumps, and appurtenances, and the City and PS2 Participants will participate in the cost of
the improvements based on the City's and PS2 Participants allocated share of the increased
pumping capacity of Pump Station #2 after Phase 2 is complete; and
WHEREAS, the City will have available potable water in quantities hereinafter agreed to
under this Amendment #3 to be sold by Talty SUD, subject to the terms and provisions of the
Contract as amended by this Amendment #3 and previous amendments.

contained, the parties agree that the City and Talty SUD hereby amend the Contract as follows:
1 2017 Ameminont NI tu %Mahal* Water COMM' (Ver21wod
Page 43 of 60
1. The parties hereto find the above recitals to be true and correct and the same are
incorporated herein for all purposes.
2. In 2016, Talky Water Supply Corporation converted into a special utility district
under the authority of Section 59, Article XVI, Texas Constitution, and Chapter 65 of the Texas
Water Code. Henceforth the name "TaIty Special utility Districe shall replace "Talty Water Supply
Corporation" in the Contract.
3. The first sentence of the first paragraph of Section 2 of the Contract is hereby
amended and restated in its entirety to read as follows:
Quantity.
Subject to the provisions of this Contract and available supply from North
Texas Municipal Water District ("NTMWD"), and following completion of
Phase 2 of Pump Station #2 as described in Section 7.1 of this Contract, the
City agrees during the term of this Contract to deliver treated water to Talty
at a rate not to exceed 6,011 gallons per minute (or 8,655,840 gallons per
day) at Talty's two points of delivery located at FM1641 and FM 741
respectively, with a maximum delivery rate of 3,005 gallons per minute to
each point of delivery or as equally distributed as possible.
4. The Contract is amended to add Section 7.1 as follows:
7.1 Phase 2 of Pump Station #2.
The City agrees to make improvements to the City's water system

including completion of Phase 2 of Pump Station #2, which will
generally consist of a 5,000,000 gallon water tank, pumps, and
appurtenances. The City and PS2 Participants will participate in the
total cost of Phase 2 of Pump Station #2 based on each entity's
allocated share of the increased pumping capacity of Pump Station #2
after Phase 2 is complete and put into service. Tatty's allocated share
of the Phase 2 improvements will be 3,421 gallons per minute. Talty's
pro rata share of the total cost of the Phase 2 improvements is 32.86%
or $2,448,397.54, less previous contributions for design and
engineering in the amount of $S2,739.00, leaving a remaining balance
of $2,395,658.54 owed to the City.
The total cost of Phase 2 of Pump Station #2 stated above includes a

25% construction contingency fund. Within 10 days after completion
of the Phase 2 improvements the City shall refund the balance of
Talty's construction contingency funds.
2 2017 Amendment N3 le WegeseleWater Contact (Ver21wpd
Page 44 of 60
5. Except as expressly modified by this Amendment #3 and previous amendments to
the Contract, all terms and provisions of the Contract are hereby ratified and confirmed and shall
remain in full force and effect.
6. The undersigned represent and affirm that they have authority to execute this
Amendment #3 on behalf of the respective parties hereto.
7. This Amendment #3 shall be effective from and after the date of the last party to
execute this Amendment #3.
IN WITNESS WHEREOF each of the Parties has caused this Amendment #3 to be executed
by its duly authorized representative in multiple copies, each of equal dignity, on the date or dates
indicated below.
CITY OF FORNEY, a Texas municipal

corporation
By:
Rick Wilson, Mayor
Date: ill 2 1 , 2017
Dorothy Broo f City Secretary Jon Tha cher, City Attorney

o
luilmiliii
.0
A i
r
E
*z
.el. * i. .' ' . . • . ......, *
. . . . * %.: .•
,
.0*,
l'ififrinisli0-
7017 Amendment n to Mateo le Water Caolnet Illetnropd
Page 45 of 60
TALTY SPECIAL UTILITY DISTRICT, a Texas
political subdivision
By: i AA .«,
John astervich, 'rem. ent
Date: / 0 /2-,‘// -I , 2017
/
/, A. .isorr1 II _ ivirI
Bill Hart, Secretary Jame . Wilson, Attorney for Talty Special
Utilit istrict
ISEAL]
4 no Anwo.dments3 to Wholesale Water CoMredt Nell) wpd
Page 46 of 60
Exhibit C
Page 47 of 60
STATE OF TEXAS
COUNTY OF KAUFMAN
This Wholesale Water Contract ("Contracr) is made and entered into this n# 02) 2006, by
and between the City of Forney, Texas, a municipal corporation in Kaufman Coun , Texas, acting
under the laws of the State of Texas (hereinafter called "City"), and Markout Water Supply
Corporation (hereinafter called "Markout'). This contract supersedes all Wholesale Water Contracts
that may have been previously entered into by and between the parties prior to the date indicated
above:
WITNESSETH:
WHEREAS, Markout and the City have previously entered into a Wholesale Water Contract
dated January 18, 2000, whereby the City agreed to provide potable water to Markout in
quantities specified therein; and
WHEREAS, due to increased development and demand for water within Markout's service
area, it has become necessary for Markout and the City to restate and amend the prior
Wholesale Water Contract to provide for additional quantities of potable water to meet the
current and future demand for water by customer within Markout's service area; and
WHEREAS, Markout is desirous of obtaining an additional adequate and dependable water

supply; and
be sold by it to Markout, subject to the terms and provisions of this Contract; and
water by City to Markout and to establish the rate, duration, metering, and related

contained, the parties agree that the City will furnish and Markout will pay for water supply
1. Responsibilities of the Parties.
to support rate changes, and for informing Markout of changes in financial data.
CADOCUME-1\MHOWIN-1\LOCALS-1\Temp\MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3
(Clean).doc
Page 1 of 1 1
Page 48 of 60
b. Markout is responsible for keeping the City informed concerning its projected water
supply needs and operating requirements, for planning and managing the Markout
rates adequate to cover costs incurred in providing services to it. Markout is also
within the Markout system in accordance with rules and regulations set forth by the
Texas Commission on Environmental Quality ("TCEQ"), or its successor agency.
2. Q uantity.
Water District ("NTMWD"), the City agrees, during the term hereof and at the delivery point
hereafter specified, to deliver treated water to Markout at a rate not exceeding One Thousand
Three Hundred Fifteen (1,315) gallons per minute (One Million Eight Hundred Ninety Three
Thousand Six Hundred [1,893,600] gallons per day) at Markout's delivery point located at
the south entrance to the Forney Middle School Football Field on South Bois D Arc Street.
Rates of delivery shall be regulated by• a rate of flow controller installed by Markout but
solely accessible by the City, The City shall have authority to limit Markout' s usage in the
event City does not have the ability to provide the usage permitted. City will use its best
efforts to remain in a position to furnish treated water as herein contracted to be sold to
Markout, but the City' s obligations shall be limited in accordance with other conditions
herein contained. In the event the total water supply available to the City shall be
insufficient to meet all of the needs of the residents of the City and customers of Markout,
the City may prorate the water available among all customers of the City and Markout. In the
event of shortage, Markout shall be furnished water in a quantity which bears the same
proportion to the total water available to City for use by individual connections as the
number of individual connections served by the City. Markout may prescribe a schedule of
hours covering use of water for the watering of lawns and gardens by its customers, and
require adherence hereto, or prohibit the use of water for the watering of lawns and gardens,
provided that if at any time the total water supply available to Markout shall be insufficient to
meet all the needs of its customers, water must first be furnished to all customers of Markout
sufficient to satisfy their needs for domestic purposes before supplying any water for the
watering of lawns and gardens. Further, Markout shall institute a Drought Contingency and
Water Emergency Plan that meets the requirements of the NTMWD and/or the requirements
of the TCEQ, or any other governmental entity having jurisdiction thereof, whichever is more
stringent. Markout shall give reasonable notice to City of any anticipated changes in demand
requirements. Such notice shall be utilized by City in determining whether construction of
additional facilities or utilization of existing system capacity will be required. In the event of
a change in demand requirements, Markout shall be responsible for the cost of any additional
facilities, or the utilization of existing excess system capacity (even if such utilization of
existing capacity does not require additional construction), in which direct participation has
not already occurred by Markout. Payments by Markout contemplated by this section for
additional facilities are required prior to the awarding of any construction contracts.
Payment by Markout for utilization of existing excess capacity must be paid prior to the
C: \DOCIJME--1\MHOWIN--1\LOCALS--1 \Temp \MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3

(Clean).doc
Page 2 of 11
Page 49 of 60
capacity being provided. Markout understands and agrees that City's ability and capacity to
provide increases in demand or volume is subject to available supply and the ability to
deliver treated water as may be determined by City through its sole source of such water,
NTMWD. The City reserves the right to enter into water purchase contracts with other
entities under the same or similar provisions as contained in this contract.
3. Quality.
Under the provisions of this Contract, City is obligated to furnish Markout treated water
suitable for human consumption in accordance with all applicable laws, rules, and
regulations of this state.
4. Point(s) of Delivery.
The point of delivery of water to Markout from the City's system shall be at the south
entrance to the Forney Middle School Football Field on South Bois D Arc Street in the
manner and the amounts specified in Section 2 above. Markout shall install a flow meter and
a rate of flow controller to be set according to the contracted amount of water contained
herein at the point of delivery. All flow meters installed after the date of this Contract shall
be equipped with Supervisory Control and Data Acquisition (SCADATM) transmission
devices. All existing meters as of the effective date of the Contract 'shall be equipped in
conformance with this provision within three years of such effective date. City agrees to
deliver at the point of delivery the quantities of water herein contracted for, said water to be
delivered at the pressure which is maintained in the water supply system of the City, it being
specifically understood that the City is under no obligation to furnish pressurized treated
water to any connection between the delivery point and Markout's facilities for sustaining
and/or increasing pressure to include the below mentioned air gap. Markout may utilize the
pressure which is maintained in the City system for the movement of water from the delivery
point to the point where Markout shall have facilities for sustaining or increasing pressure.
Markout agrees that it shall take all reasonable measures to insure all lines and equipment
installed and operated by it and that all lines and plumbing facilities which are installed or
owned by its customers shall comply with the Plumbing and Sanitation Codes of the City and
the requirements of the TCEQ, as the same now exist or as they may be modified hereafter.
Markout must provide an air gap prior to any connections of service. Cost of all connection
facilities from the delivery point to the contracting party's facilities installed subsequent to
the date of this contract shall be borne by Markout. Markout shall be responsible for the
design, contracting, construction, and financing of connection facilities and acquisition of
any right-of-way for delivery of the water from the applicable delivery point to Markout's
facilities. Should the quantities desired by Markout as contained herein or identified at a
future date require improvements to the City of Forney facilities or the City of Forney
distribution system, or require the utilization of existing excess system capacity (even if such
utilization of existing capacity does not require additional construction), in which direct
participation has not already occurred by Markout then, in such case, Markout shall be
described excess capacity utilization. Payments by Markout contemplated by this section for
CADOCUME-1\MHOWIN-1 \LOCALS-1 Temp VARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3
(Clean).doc
Page 3 of 11
Page 50 of 60
additional facilities are required prior to the awarding of any construction contracts and for
the utilization of existing excess capacity payments must be made prior to the capacity being
provided. Any improvements made to the City of Forney distribution system up to the point
of delivery become the property of the City of Forney. Plans for such improvements shall be
submitted to City for written approval with all designs, materials and specification
conforming to the City's requirements. The City shall have the right to make periodic
5. Measuring Equipment.
Markout shall furnish, install, operate, and maintain at its own expense at the delivery point,
the necessary equipment and devices of standard type, as approved by the City, for measuring
properly the quantity of water delivered under this Contract. City shall read the meter
monthly, and Markout shall test and calibrate the meter at intervals of not more than twenty-
four (24) months. The cost of all tests shall be borne by Markout, provided however, that if
any special test is made at the request of City and shall disclose that the meter is recording
accurately, City shall reimburse Markout for the cost of such tests. Meters registering not
more than one and one-half percent (1 1/2%) above or below normal shall be deemed to be
accurate. The readings of any meter which have been disclosed by test to be inaccurate shall
be corrected for the ninety (90) days preceding the test in accordance with the percentage of
inaccuracy found. Should any meter fail to register for any period, the amount payable shall
be based upon the water delivered in the corresponding period immediately prior to the
failure, unless the City and Markout shall agree to the amount of water furnished during such
period. The meters used under this Contract shall be read on the last day of each calendar
month by the City's operator and shall be available for checking by a representative of
Markout during normal business hours of the City.
6. Unit of Measurement.
7. Price and Terms.
terms of this Contract by Markout shall constitute the Annual Minimum. Markout
will pay for all water services required hereby as indicated below:
1. Markout shall pay for all water purchased under this Contract, save and
except that amount of water contemplated in Section 7.a.2. below, shall be paid for at
a rate of Sixty Three percent (63%) above the rate charged City by NTMWD per one
thousand (1,000) gallons ('Differential Rate") for water furnished to the City. Said
C: \DOCUME-1 \MHOWIN-1 \LOCALS-1 \Temp \MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3
(Clean). do c
Page 4 of 11
Page 51 of 60
Differential Rate subject to the above factors during any City Council review is that
portion of the rate above Sixty Three percent (63%).

infrastructure from Forney pump station #1 to Forney pump station #2 (PS#2
Minimum" hereinafter defined in 7.b.(3) below) will be paid for by Markout at the
rate charged City by NTMWD. The PS#2 Minimum which is used in one year and
used the next, will be paid for by Markout at the Differential Rate subject to the same
terms and conditions outlined in 7.a. 1 . above.
b. The Annual Minimum amount of water that Markout shall be deemed to have been
taken and used, regardless of whether or not such amount is or was actually taken or
used, and which Markout shall be required to purchase and pay for at the above rate
shall be calculated as:
the greater of:
(1) 65,046,000 gallons, or '
(2) the maximum number of gallons actually taken from the system by Markout
during any previous Water Year during the term of this Contract. For
purposes of this section, Water Year means the period of August 1 of each
calendar year through July 31 of the next following calendar year,
plus:
#2 is capable of pumping water which may not necessarily be when Markout
is ready to take/receive water from the pump station. The annual PS#2
Minimum amount shall be implemented over a six year period as indicated
below unless such amounts are changed by action of the NTMWD:
C:\DOCUME-1\MHOWIN-1\LOCALS---1\Temp\MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3

(Clcan).doc
Page 5 of 11
Page 52 of 60
Annual Annual
Year 1 2,842,156 NA
Year 2 4,547,482 1,705,326
Year 3 6,252,754 1,705,272
Year 4 7,958,081 1,705,327
Year 5 9,663,353 1,705,272
Year 6 11,368,679 1,705,326
arnount of Year 1 PS#2 Minimum indicated above shall be divided by twelve
current rate charged by NTMWD to City for water.
c. The Annual Minimum amount of water Markout will be required to purchase at the
and the amount of water to be purchased by Markout during the following Annual
7.b. above. For purposes of this section, "Annual Payment Perioe shall mean
year.
Markout to the City in twelve (12) equal monthly installments, each of which shall be
due and payable on or before the 10th day of the month following the service.
Annual Minimum payment effective for that year shall be made by Markout to the
City at the rates specified herein as follows: When Markout usage exceeds one
hundred percent (100%) of the Annual Minimum amount required to be taken or paid
for during any year, charges for the excess water will be billed by the City to Markout
on the second month following the month in which the one hundred percent (100%)
level is reached, such billing being for the excess water delivered in the month prior
to the month being billed, and the procedure shall continue to the end of the water
year with Markout making payment for all the excess not previously paid for on or
before the 10th of the month following the end of such water year. Markout's
liability and responsibility for making such payments as herein set forth shall
commence on the effective date of this Contract. The initial monthly payment shall
CADOCUME-1WHOWIN---1 \LOCALS-1 Temp\MARKOUT Arnended (#1) Water Purchase Contract - 04-10-06 v3

(Clean).doc
Page 6 of 11
Page 53 of 60
be one-twelfth (1/12) of the amount that would result from the sale of 65,046,000
gallons at the above rate.
e. In the event Markout shall fail to- make any such monthly payment or annual payment
within the time required, interest on such amount shall accrue at the rate of ten
percent (10%) per annum from the date such payment becomes due until paid in full
with interest, as herein specified. In the event said payment is not rnade within sixty
(60) days from the date such payment becomes due, City may, at its option,
discontinue delivery of water to Markout until the amount due City is paid in full
with interest as herein specified.
customers within Markout's water service area. The City and Markout agree that Markout
will provide billing services for sewer and/or garbage collection service, as applicable,
through its billing process. Markout agrees that it will bill and collect at rates established by
the City and will remit to the City on a monthly basis the total collected for such services less
a ten percent (1 0%) administrative services fee. Markout will provide a statement with each
monthly remittance including the total cbllected by customer, less the administrative fee and
the net amount.
past due), including sewer and/or garbage service charges and, in that regard, Markout
agrees, except as otherwise set forth in this Section, to disconnect, in accordance with its
Tariff, water service to any customer who fails to keep an account current. Provided,
however, that the parties recognize and agree that Markout is bound by and limited in its
ability to disconnect water service to a customer by the terms and conditions of its Tariff
together with the other state statutes, rules and regulations applicable to Markout. Nothing
herein shall be considered or construed as an obligation on the part of Markout to disconnect
water service to any customer if, to do so, would be contrary to Markout's Tariff or any other
state statute, rule, regulation applicable to Markout. The failure of Markout to disconnect
water to a customer that fails to keep an account current, when to do so would be a violation
of Markout's Tariff or other state statutes, rules or regulations applicable to Markout, shall
not constitute a default hereunder, or breach of this contract by Markout. In the event
Markout does disconnect water service to a customer in accordance with this Section,
Markout may choose to charge a customer reconnection and/or late fee and the City shall not
be entitled to any portion thereof. Markout shall only be required to remit to the City those
fees that otherwise would have been due to the City under this Section. Should it become
necessary to refer an account for collection to a collection agency, the City shall be
responsible for its proportionate share of such expense.
CADOCUME-1\MHOWIN-1\LOCALS-11Temp\MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3

(Clean).doc
Page 7 of 1 1
Page 54 of 60
9. Annual Report.
Markout shall provide an Annual Report to the City which shall be used for water planning
and budgeting purposes. The report shall be due no later than July 31st of each year and shall
be in the form attached hereto as Exhibit A.
10. Force Majeure.
In case of reason of "force majeure wherein either party hereto shall be rendered unable
notice and full particulars of such "force majeure" in writing to the other party within a
giving such notice, insofar as it is affected by such "force majeure shall be suspended during
"force majeure as employed herein, shall mean acts of God, strikes, lockouts, or other
fires, hurricanes, storms, floods, washouts, droughts, arrests, restrain of government and
canals, partial or entire failure of the water supply, and inability on the part of City to deliver
water hereunder or of Markout to receive such water, or on account of any other causes not
reasonably within the control of the party claiming such inability. It is understood and agreed
having the difficulty, and that the above requirement that any "force majeure shall be
unfavorable to it in the judgment of the party having the difficulty.
11. Hold Harmless
Markout hereby agrees to hold the City whole and harmless from any claims or damages to
Markout water mains or water system resulting from the rate of flow or quantity of water
delivered, from any claims or damages arising as a result of the chemical or bacteriological
content of water provided, unless such damages resulting from the chemical or
bacteriological content of the water are caused by the negligence of the City, and from any
act or omission of any representative, agent, customer, employee, and/or invitee of Markout,
including any and all claims for damages, cost, and expenses, including reasonable attorney's
fees and costs of court, if any, that may arise out of, or be occasioned by, this contract or any
of its activities unless such damages result from the gross negligence or willful misconduct
of the City.
C:\DOCUME-1\MHOWiN1\LOCALS-1\Temp\MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3

(Clean).doc
Page 8 of 11
Page 55 of 60
12. Term of Contract.
parties.
13. Assignment.
This contract may not be assigned by Markout to any other party without the express written
consent of the City Council of the City of Forney.
14. Modification and Review.
given Markout ninety (90) days notice in writing that a modification will take effect. Should
the NTMWD increase the price of water to the City of Forney then that increase will be
automatically and immediately reflected in the next billing to Markout without notice or
hearing.
15. Regulatory Bodies.
16. Sanitary Supervision.
It is agreed that Markout will furnish all sanitary supervision as may be necessary for the
purpose of inspection, observation, measurement, sampling, and testing of any of Markout's
waterline improvements to be constructed to accomplish the purposes of this Contract and
that such supervision shall be in accordance with the sanitary provisions of the rules and
regulations of the Texas Department of Health, the TCEQ, and the Sanitary and Plumbing
Codes of the City.
17. Limitation on Resale.
Markout agrees that it will not, during the term of this Contract, resell any of the treated
water it purchases from City hereunder to any wholesale or other customer other than retail
customers within its service area, without prior written consent by the City Council of the
City of Forney, Texas , based on a formal action of the Council.
CADOCUME-1 \MHOWIN--I TOCALS-11Temp \MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3
(Clean). do c
Page 9 of 11
Page 56 of 60
18. Notice.
City of Forney Markout Water Supply Corporation

P.O. Box 826 P.O. Box 907
Forney, Texas 75126 Forney, Texas 75126
Either address may be changed by either party by written notice to the other party.
CITY OF FORNEY, TEXAS MARKOUT WATER SUPPLYCORPORATION
11 Grooms
A44-tsa_ a k•Avrf
04441
President
Attest:
gDna,Yr)03 By: et-01,100

Odessa Moore eiketvieS g011ectia
City Secretary Secretaty
CADOCUME-1 \MHOWIN-1 \LOCALS-1 \Temp \MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3
(Clean).doc
Page 16 of II
Page 57 of 60
EXHIBIT "A"
Annual Report
between the water supply corporation named below and the City of Forney.
Name of Water Supply Corporation: in0-7440— 143 s c...

e...
8 ,? ceici Al---e-e-.A-5.
er-70? — tf 7^- e9.a5 ý
current reporting period (June 1 through July 31): 5 35
current reporting period (August 1 through July 31): 1.2, 0060
next Water Year (August 1 through July 31): - SX5-
next Water Year (June 1 through July 31): ,,/,e)c...),,,
next Water Year (June 1 through July 31): 4* 7, non" ono
Printed Name of Person Com ting Report
.efle1464k- le/&id
Signature of Person Completing port
5/o V 6
Date o Submission
C: TOCUME-1\MHOWIN--1\LOCALS-1 \Temp \MARKOUT Amended (#1) Water Purchase Contract - 04-10-06 v3

(Clean).doc
Page 11 of 11
Page 58 of 60
AMENDMENT #1 TO
STATE OF TEXAS
COUNTY OF KAUFMAN
Thi Amendm t #1 to the Wholesale Water Contract ("Amendment #1") is made and entered into
this 2006, by and between the City of Forney, Texas, a municipal corporation in
Kaufn an County, Texas, acting under the laws of the State of Texas (hereinafter called "City"), and
Markout Water Supply Corporation (hereinafter called "Markour):
WITNESSETH:
WHEREAS, Markout and the City entered into a Wholesale Water Contract dated May 2,
2006 (Contracr), whereby the City agreed to provide potable water to Markout in quantities
specified therein; and
upon City and Markout making certain changes to the Contract;

contained, the parties agree that the City and Markout hereby amend the Contract as hereafter
set forth, to wit:
all purposes,
2. City and Markout agree to amend that certain Wholesale Water Contract dated May 2, 2006
(Contracr) by adding a Section 19 containing the following language:
19. Additional Requirements of the North Texas Municipal Water District.
provisions of this Agreement to the contrary, any water supply made
available to Markout hereunder shall be used solely in the Trinity River Basin
and shall not be authorized for use outside of the Trinity River Basin.
b. Conservation. Markout shall prepare, formally adopt, and implement a water

conservation plan that is consistent with TCEQ requirements and that is
C:\Documents and Settings\Owner1Local Settings\Temporary Internet

Files\Content.1E5WHGFYXSD\Amendment_l toMARKOUTWaterPurchaseContractdated05-02-06[2].doc
Page 1 of 2
Page 59 of 60
c. Surface water Impoundments. Markout or its customers shall not use treated
water for the purpose of filling or maintaining the level of surface water
impoundments without the express written consent of the City and the
NTMWD.
d. Title to Water: Indemnification. Title to all water supplied to Markout shall

be in the City up to the Point of Delivery, at which point title shall pass to the
Markout, except that the NTMWD reserves the right of reuse of treated
effluent resulting from the use of water by the NTMWD, its customers or
Markout, to the extent authorized by the State of Texas. The NTMWD, the
City, and Markout shall save and hold each other harmless from all claims,
demands, and causes of action, which may be asserted by anyone on account
of the transportation and delivery of said water, while title remains in such
party. Notwithstanding anything contained herein to the contrary, the parties
hereto do not waive and hereby expressly retain any and all immunities and
defenses, sovereign, legislative, official and otherwise, that each may now or
hereafter possess. Nothing contained in this Contract shall be interpreted as
conferring any rights to any person not a party to this Contract.
3. This Aniendment #1 shall be deemed to have been incorporated into the Contract for all
and effect.
originals on the date first written above, which date shall also be the effective date hereof.
CITY OF FORNEY, TEXAS MARKOUT WATER SUPPLYCORPORATION
By.
00111150A1061 Grooms
%
Attest:
B:A aver., )17

oore h a it /e. s m (‘'661j
fty Secretary Secretary
City Attorney
CADoeurnents and Settings\Owner\Local Settings\Temporary Internet
Files\Content1E5WHGFYXSMAmendrnent_ I toM ARKOUTWaterPurthaseContractdated05-02-06[2].doc
Page 2 of 2
Page 60 of 60

High Point WSC, Talty SUD, and Markout WSC Petition Public Utilities Commission To Review City of Forney Water Rates

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

High Point WSC, Talty SUD, and Markout WSC Petition Public Utilities Commission To Review City of Forney Water Rates

Uploaded by

Copyright:

Available Formats

1111 1 111 1 11111 11

Control Number: 47814

FIRST AMENDED PETITION OF HIGH POINT WATER SUPPLY CORPORATION,

1 TWC §13.002 (19).

High Point WSC

VI. REQUEST FOR INTERIM RATES

VII. CONCLUSION AND PRAYER

WHEREFORE, PREMISES CONSIDERED, Petitioners request the Commission to:

1. Take jurisdiction of this controversy;

ATTORNEY FOR HIGH POINT WATER

WHEREAS, HighPoint is desirous of obtaining an additional adequate and dependable

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein

1 Responsibilities of the Parties.

CADOCUME-1\MHOWIN-11LOCALS-1\Temp\MXLibDirffIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

CADOCUME-11MHOWIN-11LOCALS-1\Temp\MXLibDir\HIGHPOINT Amended (#1 1 Water Purchase Contract - 04-10-06

7 Price and Terms.

CADOCUME--1\MHOWIN-111,OCALS--11Temp\MXLibDir\HIGHPOINT Amended (#1) Water Purchase Contract - 04-1(1-06

2. The unused portion of the minimum associated with the NTMWD

the greater of:

(1) 94,589,000 gallons, or

C \DOCUME--11MHOWIN-11LOCALS-1 \Temp \MXLibDir\HIGHPOINT Amended (#11 Water Purchase Contract - 04-10-06

CADOCUME-11M1-10WIN--1\LOCALS-1\Temp\MXLibDir1HIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

8. Cooperative Collections and Customer Cutoff.

10. Force Majeure.

C:1DOCUME-1\MHOWIN-11LOCALS-1 \Temp\MXLibDir\HIGHPO1NT Amended Of 1) Water Purchase Contract - 04-10-06

This contract is herby assigned by HighPoint to FARMERS HOME ADMINISTRATION,

14 Modification and Review.

C:DOCUME--11MHOWIN-11LOCALS-1\Temp\MXLibDir\HIGHPOINT Amended (#1) Water Purchase Contract - 04-10-06

City of Forney HighPoint Water Supply Corporation

CITY OF FORNEY, TEXAS HIGHPOINT WATER SUPPLYCORPORATION

C: \DOCUME-11MHOWIN--BLOCALS-1 \Temp\MXLibDir\HIGHPOINT Amended (#11 Water Purchase Contract - 04-10-06

Name of Water Supply Corporation.

Printed Name of Person Completing Report

Signature of Person Completing Report

C'DOCUME-1.1MHOWIN--11LOCALS-11Temp\MXLibDir\H1OHPOINT Amended f#1) Water Purchase Contract - 04-10-06

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein

19. Additional Reenairenumta of the N•Ith Texas Manicinal Water District.

b. Conservation. HighPoint shall prepare, formally adopt, and implement a

CADocuments end SettingaindaWy DocturentANTMWDLtr(PODundAmendeoWSCContrads)05-30-

d. Title to Water: Indemnification. Title to all water supplied to IfighPoint shall

CITY OF FORNEY, TEXAS HIGHPOINT WATER SUPPLYCORPORATION

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein

2017 Amendment #2 to Wholesale Water Contract Pagel 1

3. The Contract is amended to add Section 7.1 as follows:

73 Phase 2 of Pump Station ii2,

The City agrees to inake improvements to the City's water systent

The total cost of Phase 2 of Pump Station #2 stated above includes a

4. Except as expressly modified by this Amendment #2 and previous amendments to the

2017 Amendment #2 to Wholesale Water Contract Page l 2

Date: \ 211 2017

ATTEST: APPROVED AS TO FORM:

Dorothy Brooks / ity Secretary Jon T atchcr, City Attorney

2017 Amendment #2 to Wholesale Water Contract Page l 3

ATTEST: APPROVED AS TO FORM:

Samantha Keats, Secretary James W. Wilson, Attorney for

2017 Amendment #2 to Wholesale Water Contract Page l 4

WHEREAS, Talty is desirous of obtaining an additional adequate and dependable water

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein

I. Responsibilities of the Parties.

CADOCUME-1\MHOWIN--1\LOCALS--11Temp\TALTY Arnended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

CADOCUME--1\MHOWIN--I\LOCALS-1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Clean).doc

CADOCUME--1\MHOWIN-11LOCALS--1\Temp\TALTY Amended (#1) Water Purchase Contract - 04-10-06 v3 (Ckan).doc

7. Price and Terms.