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Ordinance No. 12,913ORDINANCE NO. 12,913 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING A WATER SUPPLY AND WASTE DISPOSAL AGREEMENT WITH CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown hereby authorizes and directs the City Manager to execute a Water Supply and Waste Disposal Agreement with Chambers County Improvement District No. 2. Said agreement is attached as Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately, o and after its passage by the City Council of the City of Baytown. 1 INTRODUCED, READ and PASSED, by the affirmative pte of the City Council of the City of Baytown this the 23`d day of July, 2015. STE EN H. DONCARLOS, Mayor AiETICI—ABR�Y T: YSCH, Ci k :U , j�: M APPROVED AS TO FORM: t ° o 'r`tr ACIO RAMIREZ, SR., i A omey R:'.Karen\Files+,City Council',Ordinances\2015Uuly 23•CCID2WatersupplyAgreement.doc Exhibit "A" WATER SUPPLY AND WASTE DISPOSAL AGREEMENT BETWEEN THE CITY OF BAYTOWN, TEXAS AND CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2 This Agreement is made and entered into as of the date herein last specified by and between the City of Baytown, Texas, a municipal corporation and home -rule city which is principally located in Harris County, Texas (the "City"), and Chambers County Improvement District No. 2, a special district created pursuant to Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution (the "District"). 1. The City is a municipal corporation and home -rule city principally located in Harris County, Texas. The City owns, operates and maintains a water supply and distribution system supplying water to residents of the City and a waste collection, treatment and disposal of waste plant and related equipment and facilities for the gathering, treatment and disposal of waste. 2. The District is a special district created pursuant to Sections 52 and 52-a, Article III and Section 59, Article XVI, Texas Constitution. The District has the rights and powers applicable to municipal management districts, including Chapter 375, Texas Local Government Code, and municipal utility districts, including Chapters 49 and 54, Texas Water Code. 3. The District will own or lease a water distribution system and a waste collection system serving the Service Area and desires to purchase Water for the Service Area and to purchase treatment and disposal of waste generated within the Service Area. 4. The District is empowered to supply water for municipal uses, domestic uses, power and commercial purposes and all other beneficial uses or controls; and to collect, transport, process, dispose of, and control all domestic, industrial or commercial waste whether in fluid, solid or composite state. 5. The District is authorized to purchase, construct, acquire, own, maintain, repair or improve or extend inside and outside its boundaries any and all works, improvements, facilities and plants, necessary and incidental to the supply of water and the collection, transportation, processing, disposition and control of all waste. 6. All or part of the Service Area lies within the extraterritorial jurisdiction of the City as established by Chapter 42 of the Texas Local Government Code as amended. The parties acknowledge the possibility that the City may annex the Service Area during the term of this agreement. In addition, the parties desire to avoid overlapping responsibilities for utility service. 7. The parties have determined that they are authorized to enter into this Agreement by the Constitution and the laws of the State of Texas, including without limitation Texas Local Government Code Section 552.001 and Texas Water Code Section 49.213, as same may be from time to time amended. Water Supply and Waste Disposal Agreement, Page I NOW THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained the parties hereto do mutually agree as follows: AGREEMENT ARTICLE I DEFINITIONS The terms and expressions used in this Agreement, unless the context clearly shows otherwise, and in addition to other defined terms herein, have the following meanings: 1.01 "City's System" shall mean the systems for the supply and distribution of Water and for the collection, transportation and treatment of waste and any extensions thereof and additions thereto, currently serving or that may be constructed to serve the City. 1.02 "Director" shall mean the Director of Public Works/Utilities of the City of Baytown. 1.03 "District's System" shall mean the systems for the distribution of Water and the collection and transportation of waste, and any extensions thereof and additions thereto, to be constructed to serve the District, including those lines and facilities necessary for the transportation and distribution of Water from the point of interconnection with the City's System throughout the District's System and the transportation of waste from dwellings and buildings connected to the District's System to the point of interconnection with the City's System. 1.04 "Impact Fee" means a charge or assessment imposed by the City against new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development in accordance with Chapter 395 of the Texas Local Government Code. 1.05 "Industrial Waste" shall mean waste resulting from any process of industry, manufacturing, trade or business from the development of any natural resource, or any mixture of the waste with water or normal wastewater, or distinct from normal wastewater. 1.06 "Infiltration Water" shall mean water or other waste which enters a sanitary sewer system by means other than by a permitted connection; "infiltration water" includes water which leaks into a sanitary sewer system. 1.07 "Interconnections" shall mean those improvements necessary for the connection of the City's System and District's System as set forth herein. 1.08 "Point of Delivery" shall mean the points of connection from the City's System to the District's System, which will be at mutually agreed upon locations. Water Supply and Waste Disposal Agreement, Page 2 1.09 "Prohibited Waste" shall be those discharges prescribed by the City of Baytown's Industrial Waste Ordinance as set forth in Article V of Chapter 98 of the Code of Ordinances of the City of Baytown, a copy of which is attached hereto as Exhibit "A" and for all purposes made a part of this Agreement. All future amendments to the City's Industrial Waste Ordinance shall apply to this agreement when such amendments are adopted. 1.10 "Service Area" shall mean the area within the boundaries of the District, consisting of approximately 723.06 acres located in Chambers County, Texas. The District covenants that the Service Area is within the area as more particularly described in Exhibit "B," which is attached hereto and incorporated herein for all intents and purposes. The parties acknowledge that the District is in the process of annexing approximately 172 acres located in Chambers County, Texas into the boundaries of the District and the Service Area. 1.11 "Sewage" shall mean the liquid and water -carried domestic waste discharged for sanitary conveniences of dwellings and buildings connected to a sanitary sewer collection system, excluding industrial wastewater discharged into sanitary sewers and in which the average concentration of total suspended solids is not more than 250 mg/1 and B.O.D. is not more than 250 mg/l. 1.12 "TCEO" shall mean the Texas Commission on Environmental Quality or its successor agency. 1.13 "Treatment Plant" or "Plant" shall mean the City's East District Wastewater Treatment Plant or the City's Northeast District Wastewater Treatment Plant, including all additions or modifications thereto which may occur subsequent to the execution of this Agreement. 1.14 "Waste" shall mean sewage and industrial waste collected by a sanitary sewer system together with such infiltration water as may be present, provided that such system is constructed in compliance with City Specifications and continually and promptly maintained and repaired. 1.15 "Water" shall mean potable water meeting the minimum drinking water standards prescribed by Texas Department of Health Resources and TCEQ, and their successor agencies. ARTICLE II DISTRICT'S SYSTEM 2.01 District's System. The District shall acquire or construct, or cause to be acquired or constructed, the District's System. No cost of the District's acquisition or construction of the District's System, including engineering fees, the acquisition of any lands or easements in connection therewith, and obtaining the approval of any regulatory agency, shall be borne by the City. Water Supply and Waste Disposal Aereement, Page 3 2.02 City Approval of Plans and Specifications. Prior to the initiation of any construction of the District's System, the engineers of the District shall submit to the City Engineer for written approval the plans and specifications for the District's System. No construction of the District's System shall begin until such plans and specifications are approved in writing by the City Engineer. The District's Engineer will provide the City, upon completion of the construction, with one set of "as built" drawings, which meet the approval of the City Engineer and certification that the District's System was built in accordance with the City's standard plans and specifications and as indicated in the "as built" drawings. The District will likewise obtain approval for and supply the City with "as built" drawings and similar certification for any subsequent alterations or modifications made to the District's System during the term of this Agreement. 2.03 Inspection. The District specifically grants the City the right to inspect at any time any and all construction of the District's System in order to determine whether such construction is in conformance with the City's standards and the approved plans and specifications. Should all or any portion of the District's System, whether detected during construction or after completion thereof, be found by the Director not to conform in some material respect with the City's standards or the approved plans and specifications, then the District shall immediately upon receiving written notice from the City of such non-conformance take those remedial steps necessary to meet the required standards, regardless of when such non- conformity is detected. The District's System must be brought into conformity with the City's standards and the approved plans and specifications within thirty (30) days of the District's receipt of notice of non-conformance, unless an extension is approved in writing by the Director. Failure to adequately and timely remedy the District's System shall be construed as an Event of Default. 2.04 Points of Connection. The points of connection between the City's System and the District's System shall be approved by the Director and shall not be changed without prior written approval of the Director. 2.05 Completion of Construction. Upon completion of the construction provided for in Section 2.01, both the City and the District agree as follows: (i) the City shall deliver to the District and the District shall accept from the City Water in quantities as specified in Article IV herein, for the price and at the point or Point of Delivery herein provided, consistent with other limitations as stated herein, and (ii) the City shall receive from the District and the District shall discharge such volumes of waste at such times and in such quantities as provided in Article IV of this Agreement. 2.06 Commencement of Use of Interconnections. The Interconnections shall be placed into operation only upon the inspection and approval of the Interconnections and the District's System by the engineers of the City and the District. Furthermore, the City reserves the right to reject any Interconnection designated by the District which would, in effect, interfere with or increase the cost of any other facilities or operations which the City might wish to construct or implement, or plan to construct or implement, or which would adversely affect the City's ability to provide water and/or sewer services to any of its customers. Water Sui)ply and Waste Disposal Agreement Page 4 2.07 Water Measuring Equipment. The District will, at its sole cost and expense, furnish and install at any and all interconnections all measuring equipment as may be required by the City, including, but not limited to, meters, totalizers, backflow preventers and devices of standard type for measuring and recording accurately the quantity of Water delivered within an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow. It is expressly understood and agreed by the parties hereto that a Fire Protectus III master meter, Combination Fire and Domestic Water Meter Assembly by Park Environmental Equipment, or other meter specified by the City, measuring total flow through the Interconnection having an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow, is required and must be approved and inspected by the City prior to the City being obligated under this Agreement to deliver any Water to the District. Such measuring equipment shall be approved by the City; and after the City's approval of the installation, the same shall become the property of the City. (a) inspection. During all reasonable hours, the City and the District shall have access to such measuring equipment so installed. The City shall have access to all records pertinent to determining the measurement and quantity of Water actually delivered hereunder, but the reading of the meters for purposes of billing shall be done by the District. (b) Calibration. After approved installation thereof, the City shall perform, at its own cost and expense, periodic calibration tests on the primary measuring equipment so installed in order to maintain the accuracy tolerance within the guarantees of the manufacturer thereof, not to exceed tolerance of two percent (2%), at least once every twelve (12) months. At reasonable intervals, the City agrees to properly check and calibrate the flow, recording the totalizing measuring equipment for the purpose of ascertaining its condition of accuracy. The City agrees to notify the District at least forty-eight (48) hours in advance of the time any test is to be made, to permit the District to observe such test and to furnish the District with a copy of the results of all checks and calibration tests performed on said measuring equipment. If any tests or calibration checks show a condition of inaccuracy, adjustments shall be made immediately so said measuring equipment will register correctly within the aforesaid accuracy tolerance. In addition, the District shall have the right to independently check said measuring equipment at any time upon at least forty-eight (48) hours' notification to the Director. (c) Check Meters. The City may install, at its own cost and expense, such check meters in the District's pipeline as may be deemed appropriate and the District shall have the right of ingress and egress to such check meters during all reasonable hours; provided, however that the billing computation shall be on the basis of the results of the measuring equipment set forth in Section 2.07 hereinabove. (d) Inaccuracy Adjustments. If, upon any test, the percentage of inaccuracy of any measuring equipment is found to be in excess of five percent (5%) for the aforesaid given rate of flow, then the District's account shall be adjusted for a Water Supply and Waste Disposal Agreement, Page 5 period extending back to the time when such inaccuracy began, if such time is ascertainable, and if such time is not ascertainable, for a period extending back one-half (%2) of the time elapsed since the date of the last test, or, the date of the last adjustment to correct the registration, whichever is later, but not to exceed one hundred twenty (120) days. If, for any reason, the measuring equipment is out of service or out of repair and the amount of Water delivered cannot be ascertained or computed from the reading thereof, Water delivered during the period shall be estimated and agreed upon by the parties hereto on the basis of the best data available. (e) Independent Check of Metering Equipment. In the event of a dispute between the District and the City as to the accuracy of the testing equipment used by the City to conduct the test of accuracy upon the meters being used, an independent check may be mutually agreed upon between the District and the City to be conducted by an independent measuring equipment company suitable to both the District and the City, the cost of such test to be at the District's sole expense. (f) Given Rate of Flow. As used in this Article, the expression "given rate of flow" means the total quantities of Water delivered during the preceding period (usually a calendar month) as reflected by the recording devices, divided by the number of days in the period. ARTICLE III OWNERSHIP. OPERATION AND MAINTENANCE OF SYSTEMS 3.01 District's System. The District shall own, operate and maintain at its sole cost and expense the District's System and will promptly repair any of its facilities so as to prevent leakage or infiltration. However, should the District fail to operate and maintain the District's System in a manner consistent with sound engineering principles and should such failure become a danger to the continued proper operation of any portion of the City's System as determined at the sole discretion of the City, then such failure shall be considered an Event of Default. It is expressly understood and agreed that the City at any time upon notice to the District may take whatever steps it believes are necessary to preserve the integrity of the City's System, including but not limited to, discontinuing services. 3.02 City's Plumbing Code. After the effective date of this agreement the District covenants and agrees to comply with the City's current Plumbing Code and all amendments thereto for water distribution and sanitary sewer facilities and agrees not to permit plumbing work relating to water or sewer service or allow connection to the District's System except in compliance with the City's Code and after inspection and approval by the District's operator or other authorized representative. The District shall, after such inspection and approval and prior to service to the facility, submit to the City an affidavit of inspection certifying that all requirements of the City's Plumbing Code have been satisfied. Water Supply and Waste Disposal Agreement, Page 6 The District further agrees that all plumbing connections shall be maintained in compliance with the Plumbing Code requirements of the City. In order to enforce this provision, the City inspectors shall be permitted to act for and on behalf of the District or in lieu of the District's operator, and the District will enforce any notice issued by such inspectors. The District will be charged an inspection fee in the amount as specified in Section 18-462 of the Code of Ordinances, as amended, for each inspection made by the City pursuant to this provision. If any such notices are not complied with, the District shall discontinue service when this may be legally done pursuant to the District's Rate Order upon the request of the City to do so. A copy of such rate order is attached hereto as Exhibit "C" and incorporated herein for all intents and purposes. Failure of the City to act on behalf or in lieu of the District shall not be held construed as a waiver of the right to so act in the future or to exercise any right or remedy occurring as a result of the District's default. Should the District for any reason fail to enforce the standards established by the City Plumbing Code for water or sewer facilities or should the District fail to comply with the foregoing provisions of this section, such failure shall be an Event of Default. 3.03 Outside Service Contracts. The District agrees that should the District desire to delegate responsibility for maintenance or for supervision of the District's System to any individual or entity other than its own employees holding any permit or certificate required by law or a sewage plant operator holding a valid certificate of competency issued under the direction of the TCEQ as required by Texas Water Code Section 26.0301, as amended, or any other permit or certificate required by law, then any such proposed service arrangement, by written contract or otherwise, must be approved in writing by the Director, whose consent shall not be unreasonably withheld, prior to execution by the parties. Failure of the District to submit any such proposed service agreement to the District prior to its execution shall be considered an Event of Default. Any outside service agreement, whether submitted to the City or not, shall contain a clause tenninating the service agreement as to the District on the date of annexation of the District by the City. 3.04 Industrial Waste. The District shall regulate the discharge of Industrial Waste from within its boundaries into its waste collection system, and in turn into the City's System, including any requirements for pretreatment before discharge into the District's System if necessary to meet the quality requirements as stated in the City's Industrial Waste Ordinances or as required by any regulatory agency. No such discharge will be permitted without prior written approval of the Director. The applicant industry and the District shall file a statement with the City containing the following information: (1) Name and address of applicant; (2) Type of Industry; (3) Quantity of waste; (4) Typical laboratory analysis of the waste; Water Supply and Waste Disposal Agreement Page 7 (5) Type of pretreatment proposed; and such other information as the Industrial Waste Ordinance of the City may from time to time require. District shall permit no industrial waste connection until same are approved in writing by the Director, but the City (subject to the specific requirements stated herein) agrees to permit connections to discharge industrial Waste into the City's System upon the same terms and conditions and subject to the same restrictions and requirements as the City permits such discharges to its System within the City's corporate limits in accordance with the City's ordinances and rules and regulations promulgated pursuant thereto and in effect at the time each application is received, including compliance with all the requirements of the City's Industrial Waste Ordinance, a copy of which is attached hereto as Exhibit "A," and for all purposes made a part of this Agreement including all future amendments to said ordinance; provided, however, the City shall not under any conditions be required to accept "Prohibited Waste." The District specifically agrees to adopt for purposes of setting rates those classifications of industrial and commercial activity and those industrial waste standards stated in the City's Sewer Rate Ordinance and Industrial Waste Ordinance. In addition, the District agrees that all such activity will comply with all requirements for connection to the City's System, including acquiring appropriate District Industrial Wastewater Discharge Permits. As a condition of connection to the District's System, all industries located within the District shall agree in writing (i) to contribute to any Industrial Cost Recovery Program imposed upon similar industries within the City and (ii) to provide to the Director on a biannual basis the results of a full and complete analysis of its effluent for those parameters stated in the City's Industrial Waste Ordinance, including as a minimum BOD, TSS, COD, oil and grease, and heavy metals, such analysis to be performed by an independent testing laboratory approved by the Director. 3.05 Waste to Comply with City Ordinance. Discharges of waste into the District's System shall comply with all applicable City Ordinances. The District is obligated to assume the responsibility to enforce the applicable City Ordinances with respect to impermissible discharges of Prohibited Wastes originating from within the District. Failure of the District to enforce said City Ordinances to the satisfaction of the City shall be considered an Event of Default. 3.06 Seepage and Infiltration. The District agrees that it will adopt and enforce written rules, regulations, and provisions to ensure that connections to the District's System will be such as to prevent as much as feasibly possible the discharge into the District's System of anything except sewage; and in particular, but without limitation thereto, that no drains shall be installed or connected in such a manner that any rainwater or other surface waters are permitted to enter the District's System; and, in addition, that adequate safeguards will be taken to prevent any abnormal seepage or infiltration or discharge of any solid matter into said System. Within ninety (90) days following the date of execution of this Agreement by the City, the District shall supply the Director with a copy of such rules, regulations, and contracts, including statement of measures designed to enforce such provision. The District shall initiate whatever lawful actions are necessary to disconnect any customer who, following reasonable notice, refuses to remove Water Supply and Waste Disposal Agreement Page 8 noncompliant connections. The District will inspect all connections at the time made and continue to monitor the District's System as a whole to detect infiltration and unpermitted connections as needed or as otherwise may be ordered by the Director. The District further agrees to continuously maintain the District's System so as to prevent any abnormal seepage or infiltration or discharge of any solid matter into the District's System. Failure to do so shall be an Event of Default notwithstanding any payments pursuant to the following paragraph. In the event excess infiltration or abnormal seepage or the discharge of solid matter or surface water into the District's System is present, the District covenants and agrees to pay the additional charges provided for in Article V herein for such excess infiltration. It is further agreed that the City's inspectors shall have the right to make such inspections as are necessary to ensure that the District is making adequate and proper repairs for the purpose of safeguarding the City's System. 3.07 Participation in State and Federal Grant Programs; Contribution to Costs. The District recognizes that the City is presently participating in a federally -funded grant program for the construction of sewage treatment plants under the provisions of the Federal Water Pollution Control Act, P.L. 92-500, as amended. Furthermore, the District recognizes that the City may in the future participate in similar federal or state programs. As part of such programs, and consistent with the City's successful participation and sharing in grant funds, certain responsibilities may be imposed upon the City with respect to compliance with state and/or federal rules and regulations regarding contributors to the City's System. The District recognizes that by virtue of this Agreement it is a contributor to the City's System and, as a contributor shall be required to take all necessary steps to enable the City to continue to comply with such programs and to bear the District's pro rata share of the expense of such compliance. More specifically, the District authorizes the City and its representatives to enter District property and to conduct those tests, including, but not limited to, infiltration/inflow analyses, smoke tests, and/or other similar analyses as required under the provisions of the Federal Water Pollution Control Act and the City's Federal Grant Agreements to characterize the condition of the District's System. The District agrees to pay costs of such analyses of the District's System not refunded by the state or federal government to the City, within thirty (30) days of receipt of an invoice for the same. In addition, the District agrees to pay within thirty (30) days of receipt of an invoice the unrefunded costs of any remedial measures necessary to improve the District's System in order to comply with state or federal requirements and agrees to see that such remedial measures are timely taken. Such steps are not exclusive, and the District agrees to take all steps necessary to assure City's compliance with such programs. Failure of the District to comply with this section shall constitute an Event of Default. The City shall provide the District notice of the City's participation in any federal or state program and shall report on the status same, including whether remedial measures will be required under any federal or state program. 3.08 Delivery of and Title to Waste. Title to all waste to be treated hereunder shall remain in a particular party so long as such waste remains on such party's side of the Interconnection. Upon passing through the Interconnection, title thereto shall pass to the other party; however, the City shall be under no responsibility to accept those waste materials which Water Supply and Waste Disposal Agreement, Page 9 do not conform with the quality or quantity standards as otherwise specified herein including "Prohibited Waste." 3.09 Title to and Responsibility for Water. Title to, possession, and control of Water shall remain in the City, or its assigns, to the Point of Delivery where title to possession, and control of Water delivered under this Agreement shall pass from the City to the District; and the District will take such title, possession and control at the Point of Delivery. As between the parties hereto, the City shall be in exclusive control and possession of the Water deliverable hereunder and solely responsible for any damage or injury caused thereby until the same shall have been delivered to the District at the Point of Delivery, after which delivery the District shall be in exclusive control and possession thereof and solely responsible for any injury or damage caused thereby, and such party respectively shall save and hold the other party harmless from all claims, demands, and cause of action which may arise while said Water is under its respective ownership and control. The City shall not be responsible in damages for any failure to supply Water or for interruption of the Water furnished hereunder. The District agrees to save harmless the City from all damage to real and personal property occasioned or caused by the making of the water connection or connections herein referred to or caused by the furnishing of Water hereunder, and shall also save and keep harmless the City from all damage of any kind, nature and description which may arise as the result of the making of this Agreement. ARTICLE IV QUANTITY AND CAPACITY 4.01 General. (a) Water. Subject to the terms and conditions of this Agreement, City agrees to sell and deliver (or cause to be delivered) to the District, the District's Water requirements of Water, and the District agrees to purchase from City the District's Water requirements for resale during the term of this Agreement for water services to be supplied to the Service Area as defined in Article I hereof. The District's total Water requirements shall mean the total quantity of Water the District needs to conduct operations, use or resell within the Service Area. The maximum amount of total Water that the City shall be obligated to provide shall be the alternate capacity requirement assigned by the TCEQ to the District. As such, the District is hereby required to submit a request to obtain alternative capacity requirements from the TCEQ in accordance with 30 TAC §290.45(g) within one year of the Effective Date. Until such alternative capacity requirement is obtained, it is stipulated that the District's total Water requirements shall not exceed 87,540 gallons per day average daily flow. The City shall not be required at any time during the term of this Agreement to provide more than the following: Average Dail Flow Peak Hour Flow 1 - 2 87,540 d 177,000 d 3-4 138,540 d 282,060 gpd Water Supply and Waste Disposal Agreement, Page 10 4 - 5 192,540 gpd 385,080 gpd 6+ 245,900 gpd 737,700 gpd (b) Waste. In consideration of the compensation stated herein, the City shall accept and treat waste from the District and the District shall have the privilege of discharging waste into the City's System, not to exceed 300 gallons per minute of capacity in the FM 565 Wastewater Facilities, which consist of a wastewater force main and a section of twelve inch (12") gravity line from FM 565 to the District's territory. 4.02 Capacity Reserved. The City covenants and agrees that the City shall reserve for the benefit of the District, the capacity in its water supply facilities and in its treatment plant sufficient to supply and treat the quantities set forth in Section 4.01 of this Agreement. However, the District shall not be guaranteed any specific quantity or pressure of Water for the services to be provided herein by the City if the City's Water supply is limited or when the District's equipment may become inoperative due to unforeseen breakdown or scheduled maintenance and repairs, and the City is in no case to be held to any liability for failure to furnish any specific amount or pressure of Water. 4.03 Service Contracts with Other Entities. The District shall not permit any entity located outside the Service Area to connect to the District's System during the term of this Agreement without the express prior written consent of the City. Failure to comply with this provision shall constitute an Event of Default. ARTICLE V PAYMENT AND TERMS 5.01 Impact Fees. The District shall pay to the City impact fees, which shall be charged against new development within the Service Area in order to generate revenue for funding or recouping the cost of capital improvements or facility expansions necessitated by and attributable to the new development, pursuant to Article IV, Chapter 114 of the Code of Ordinances, as hereinafter amended. The impact fees may be adjusted from time to time by the City Council, and the District shall be required to pay the rate in effect at the time payment is due. 5.02 Monthly Service Charge. The District shall pay to the City in monthly installments the following: (a) Water Service Charge. A service charge (to cover the City's operation and maintenance) equal to the City's minimum charge and additional charges, if any, applied to the actual quantity of Water delivered to the District during the month in question. The charge shall be calculated on the basis of the number and type of users connected to the District's System as well as the metered water use as measured by the master meter, consistent with the provisions for such calculation found in the City's Water Service Rate Ordinance, which may be amended from Water Supply and Waste Disposal Agreement, Page 11 time to time. A copy of the City's present rate ordinance for water service, as set forth in Chapter 98, Article III of the Code of Ordinances of the City of Baytown, in effect as of the date of this Agreement, is attached as Exhibit "D," and incorporated herein. The District agrees that the payment due herein shall be calculated by using the Water delivered as measured by the master meter. The master meter will be read in accordance with the Code of Ordinances of the City. (b) Wastewater Service Charge. The wastewater service charge shall be calculated on the basis of the metered water use or otherwise for each connected user, consistent with the provisions for such calculation found in the City's Sewer Service Rate Ordinance, which may be amended from time to time. A copy of the City's present rate ordinance for sanitary sewer service, as set forth in Chapter 98, Article N of the Code of Ordinances of the City of Baytown, in effect as of the date of this Agreement, is attached as Exhibit "E," and incorporated herein. 5.03 Right of Inspection. City shall have the right at any time by actual count or by an inspection of the District's books, records and accounts to determine the number of water and sewer connections served by the District, and the District shall have the right at any time to inspect the City's books, records and accounts to verify the charges levied by the City. It shall be the duty of the parties to cooperate fully with each other in any such count, inspection or audit. All books, records and accounts shall be open for inspection at all reasonable hours for any authorized representative of the parties. 5.04 Reporting Requirements. Each month, the District shall provide to the City a preliminary operating report, including the number of water and/or sewer connections, in a form approved by the City's Director of Finance. Such preliminary operating reports shall be tendered to the City on or before the 10h day of each month concerning the prior month's operations. After receipt of each preliminary operating report, the City will generate an invoice specifying the amount due and owing for the report period. The District shall present both the preliminary operating report and the corresponding invoice to its Board of Directors each month on or before the third Thursday of the month for the Board's review and approval. On or before the Friday after the third Thursday of each month, the District shall tender to the City a final operating report for the previous month in a form approved by the City's Director of Finance containing a certification by the presiding officer of the Board that the information contained in the report is true and correct. Should there be any difference between the preliminary and final operating reports, which affects the amount due and owing to the City, the City shall adjust the next month's bill to address such difference. The reporting requirements detailed herein shall continue throughout the term of this Agreement. 5.05 Payments. The City shall send the invoices to the District, at the addresses provided in Section 7.03. Payment by the District to the City shall be made within thirty (30) days following the receipt of such invoice. Any sums payable by the District to the City under this Agreement which are not paid within thirty (30) days following the receipt of the invoice shall bear interest in accordance with Water Supply and Waste Disposal Agreement, Page 12 Section 2251.025, Texas Government Code. If the District defaults on the payment of any invoice, and the amount so past due and unpaid, including interest thereon, is collected by the City by suit, there shall be reasonable attorneys' fees added thereto for collection thereof by suit. Failure to pay charges when due shall constitute an Event of Default. Notwithstanding any of the above, in the event the District fails to tender payment of any amount when due and such failure continues for thirty (30) days after notice in writing to the District of such default, the City may suspend delivery of services offered hereunder, but the exercise of such right shall be in addition to any other remedy available to the City. 5.06 Modifications. Although the City believes that the present charges for such services as set forth herein are fair and reasonable, nonetheless, the parties realize that the City may increase the charges for such services, whether by amendment of the rate schedule for like services outside the City limits upon which the service charges levied hereunder are based, or by other means. 5.07 Operating Expense and Covenants as to Rates. The sums to be paid the City by the District under the terms of this Agreement are declared by the District to be an essential cost of operating and maintaining the District's System as a part of the District's System and such costs shall be first charged upon the gross revenues received from the District's System as a part of the District's System, and such costs shall be a first charge upon the gross revenues received from the District's operation of said system. The District agrees to establish and maintain rates sufficient to pay all costs and expenses of operation and maintenance of the District's System. 5.08 Events of Default. An Event of Default, as stated from time to time herein, shall constitute a material breach of this Agreement for which the City may, and the District explicitly recognizes the City's right to, terminate service under this Agreement and to seek all remedies at law or in equity necessary to enforce the provision(s) violated; provided however, that this Agreement shall not be terminated prior to the City's giving written notice to the District of the Event of Default complained of and a reasonable opportunity for the District to cure said default, or, if not curable in that time as determined at the sole discretion of the City, to commence substantial curative efforts within ten (10) days and faithfully prosecute the same. Termination of service pursuant to this section shall not limit either party to any other remedy at law or in equity. ARTICLE VI PERFORMANCE REGARDING TREATED WATER SERVICES The City covenants and agrees that it will not contract for the sale of water to other users to such an extent or for such quantities as to impair the City's ability to perform fully and punctually its obligations to the District under this Agreement. In case of temporary shortage of water notwithstanding the City's compliance with the provisions of this Article, the City shall distribute the available supply as provided by the laws of the State of Texas. It is specifically agreed and understood that this agreement contemplates that the District will resell the water purchased pursuant to the terms hereof. Water Supply and Waste Disposal Agreement, Page 13 Pursuant to the Amendatory Contract entered into by the City of Houston and the San Jacinto River Authority, a copy of which is attached hereto as Exhibit "F" and incorporated herein for all purposes, and not withstanding any other provision of this Agreement to the contrary, the District covenants and agrees that it takes the Water under this contract from the City for solely municipal purposes, as such term is defined by the TCEQ rules, currently in effect or hereinafter amended, and no other purposes. Such Water shall be sold, distributed or used and ultimately consumed only for residential household and municipal purposes exclusively within the District's Service Area. The District understands and agrees that the City, the Baytown Area Water Authority, the City of Houston or the San Jacinto River Authority, or any combination thereof, may enforce the covenants contained in this Article by an action brought directly against the District. In the event that the City maintains any legal proceeding to enforce such covenants, the District agrees to indemnify the City in the amount of all expenses relating to the legal proceeding, including, but not limited to, costs of court and reasonable attorney's fees. The District acknowledges that the City may be liable to the Baytown Area Water Authority, the City of Houston and/or the San Jacinto River Authority for monetary damages in the event that the District or any purchaser of water from or through the District fails to comply with the restrictions and limitations on the sale of water set out in this Article. The District acknowledges that such monetary damages would amount to seventy-five percent (75%) of the consideration or revenue received by the City for the estimated amount of water distributed, sold or used in violation of such restrictions or limitations plus all litigation expenses, reasonable attorney fees, and all other remedies available to the Baytown Area Water Authority, the City of Houston and/or the San Jacinto River Authority. The District hereby agrees to fully indemnify, hold harmless and defend the City from and against any such expenses and liability which the City might incur or any loss the City might suffer as a result of any failure by the District or any purchaser of water from or through the District, to comply with such restrictions and limitations. The District further agrees to include covenants in any sales or contracts for sale of water by the District to any other entity to ensure that said other entity will likewise indemnify, hold harmless and defend the City. The District agrees to submit the wording of such covenants for the written approval of the City prior to entering into such contracts. The District acknowledges that the City of Houston may be liable to the San Jacinto River authority for monetary damages in the event that the District or any purchaser of water from or through the District fails to comply with the restrictions and limitations on the sale of water set out in this Article. The District acknowledges that such monetary damages would amount to seventy-five percent (75%) of the consideration or revenue received by the City of Houston for the estimated amount of water distributed, sold or used in violation of such restrictions or limitations plus all litigation expenses, reasonable attorney fees, and all other remedies available to the San Jacinto River Authority. The District hereby agrees to fully indemnify, hold harmless and defend the City of Houston from and against any such expenses and liability which the City of Houston might incur or any loss the City of Houston might suffer as a result of any failure by the District or any purchaser of water from or through the District, to Water Supply and Waste Disposal Agreement, Page 14 comply with such restrictions and limitations. The District further agrees to include covenants in any sales or contracts for sale of water by the District to any other entity to ensure that said other entity will likewise indemnify, hold harmless and defend the City of Houston. The District agrees to submit the wording of such covenants for the written approval of the City prior to entering into such contracts. On or before the first anniversary of the date this agreement is signed, the District shall approve and implement and throughout the term hereof remain in full compliance with a water conservation program in accordance with the requirements of the TCEQ. Such plan and any amendments thereto shall be submitted to the appropriate authority as required by state law for review and approval. In the event that the TCEQ adopts new requirements, the District shall adopt an amended plan and submit same to the appropriate authority for review and approval. Within thirty (30) days after the term of this Agreement, the District shall furnish the City with a statement, under oath, showing the quantities and sources of all water for use or resale by the District. ARTICLE VII MISCELLANEOUS PROVISIONS 7.01 Force Maieure. In the event any party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, it is agreed that on such party's giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied upon, then the obligations of the party giving such notice, to the extent it is affected by force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability but for no longer period. Such cause shall as far as possible be remedied with all reasonable dispatch. The term "force majeure" as used herein, shall include, but not be limited to acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades, insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions, breakage or damage to machines or pipelines and any other inability of either party, whether similar to those enumerated or otherwise and not within the control of the parties claiming such inability, which by the exercise of due diligence and care such party could not have avoided. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party having the difficulties, and the above -referenced requirement that any force majeure be remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to demands of the opposing party when such course is inadvisable in the discretion of the party having the difficulty. Water Supply and Waste Disposal Agreement, Page 15 7.02 Approval. Whenever this Agreement requires or permits approval or consent to be hereinafter given by any party, such approval or consent shall not be unreasonably withheld, and, if finally given, shall be effective without regard to whether such approval or consent is given before or after the time required herein. Such approval or consent on behalf of a party shall be evidenced by an ordinance or resolution adopted by the governing body of the party, or by an appropriate certificate executed by a person, firm or entity previously authorized to determine and give such approval or consent on behalf of the party pursuant to an ordinance or resolution adopted by the governing body, unless stated otherwise herein. 7.03 Address and Notice. Unless otherwise provided in this Agreement, any notice, communication, request, reply or advice (herein severally and collectively for convenience, called "Notice") herein provided or permitted to be given, made or accepted by any party to the other must be in writing and may be given or served by depositing the same in the United States mail, postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram, when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this Agreement, from and after the expiration of three (3) days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party to be notified. However, in the event of service interruption or hazardous conditions, neither party will delay remedial action pending the receipt of formal notice. For the purpose of notice, the address of the parties shall, until changed as hereinafter provided, be as follows: If to the City, to City of Baytown City Manager P.O. Box 424 Baytown, TX 77522 Fax: (281) 420-6586 If to the District, to Chambers County Improvement District No. 2 Attn: Peter T. Harding 1300 Post Oak Boulevard, Suite 1400 Houston, TX 77056 Fax: 713-623-6143 The parties shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address, provided at least fifteen (15) days' written notice is given of such new address to the other parties. Water Supply and Waste Disposal Agreement, Page 16 7.04 Assignabilitv. This Agreement shall bind and benefit the respective parties and their legal successors and shall not be assignable in whole or in part by any party without first obtaining written consent of the other party. 7.05 Regulatory Agencies. This Agreement shall be subject to all present and future valid laws, orders, rules and regulations of the United States of America, the State of Texas, and of any regulatory body having jurisdiction. 7.06 No Additional Waiver Implied. The failure of any party hereto to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement, shall not be construed as a waiver or relinquishment of the future performance of any such terms, covenants or conditions by any other party hereto, but the obligation of such other party with respect to such future performance shall continue in full force and effect. 7.07 Modification. Except as otherwise provided herein, this Agreement shall be subject to change or modification only with the mutual written consent of the parties hereto. 7.08 Parties in Interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third party. The City shall never be subject to any liability in damages to any customer of the District for any failure to perform its obligations under this Agreement. 7.09 Captions. The captions appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. 7.10 Severability. The provisions of this Agreement are severable, and if any provision or part of this Agreement or its application thereto to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provisions or part of this Agreement to other persons or circumstances shall not be affected thereby. 7.11 Merger. This Agreement embodies the entire understanding and agreement between the parties as to the water supply and waste disposal services, and there are no prior effective representations, warranties or agreements between the parties. 7.12 Construction of Agreement. The parties agree that this Agreement shall not be construed in favor of or against any party on the basis that the party did or did not author this Agreement. 7.13 Term. This Agreement shall be in force and effect from the date of execution hereof by the City for a term of twenty-five (25) years; provided that (i) City's contract with the Baytown Area Water Authority for the purchase of Water in sufficient quantities to supply the Water Supply and Waste Disposal Agreement, Page 17 District under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged; and (ii) the Baytown Area Water Authority's contract with the City of Houston for the purchase of raw water in sufficient quantities to supply the Baytown Area Water Authority under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged. Should the City's contract with the Baytown Area Water Authority or the Baytown Area Water Authority's contract with the City of Houston be terminated for any reason or should the City become legally unable to supply the District, then this Agreement shall terminate automatically at the time of such termination or inability. 7.14 Agreement Read. The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. 7.15 Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. [signature pages follow] Water Supply and Waste Disposal Agreement, Page 18 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this day of _ 12015. DISTRICT (Signature) By: (Printed Name) (Date) (Title) Chambers County Improvement District No. 2 ATTEST: (Signature) (Printed Name) (Title) APPROVED AS TO FORM: (Signature) (Printed Name) (Title) Water Supply and Waste Disposal Agreement Page 19 CITY RICHARD L. DAVIS (Date) City Manager City of Baytown, Texas ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney llcobfs011legal\KarenlFileslContracts\CCID #21H20&SewerContractpostconferencecall.doc Water Supply and Waste Disposal Agreement, Page 20 Exhibit "A" ARTICLE V. - INDUSTRIAL WASTE DIVISION 1. -GENERALLY Sec. 98-126. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Act or the act means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. § 1251 et seq. Approval authority or administrator means the EPA region VI administrator or the director of a National Pollutant Discharge Elimination System (NPDES) delegated state with an approved state pretreatment program or their duly authorized representatives, as defined in 40 CFR 403.3(c). Authorized representative of the industrial user means that the reports required by this section shall include the certification statement as set forth in 40 CFR 403.6(a)(2)(ii), and shall be signed as follows: (1) By a responsible corporate officer, if the industrial user submitting the reports is a corporation. For the purpose of this subsection, a responsible corporate officer means: a. A president, secretary, treasurer or vice-president of the corporation in charge of a principal business function, or any person with similar policy- or decision-making responsibilities for the corporation; or b. The manager of one or more manufacturing, production or operation facilities employing more than 250 persons or having gross annual sales or expenditures exceeding $25,000,000.00, in second-quarter 1980 dollars, if authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. (2) By a general partner or proprietor if the industrial user submitting the reports is a partnership or sole proprietorship, respectively. (3) By a duly authorized representative of the individual designated in subsection (1) or (2) of this definition if: a. The authorization is made in writing by the individual described in subsection (1) or (2) of this definition; b. The authorization specifies either an individual or a position having responsibility for the overall operation of the facility from which the industrial discharge originates, such as the position of plant manager, operator of a well or wellfield superintendent, or a position of equivalent responsibility for environmental matters for the company; and c. The written authorization is submitted to the director. (4) If an authorization under subsection (3) of this definition is no longer accurate because a different individual or position has responsibility for the overall operation of the facility, or overall responsibility for environmental matters for the company, a new authorization satisfying the requirements of subsection (3) of this definition must be submitted to the city prior to or contemporaneously with any reports to be signed by an authorized representative. Biochemical oxygen demand (BOD) means the quantity of oxygen by weight, expressed in mg/I, utilized in the biochemical oxidation of organic matter under standard laboratory conditions for five days at a temperature of 20 degrees Celsius. Blowdown means the minimum discharge of recirculating water for the purpose of discharging materials contained in the water, the further buildup of which would cause concentration in amounts exceeding limits established by best engineering practices. Building sewer means the extension from the building drain to the public sewer or other place of disposal, also called house lateral and house connection. Chemical oxygen demand (COD) means the measure of the oxygen consuming capacity of inorganic and organic matter present in the water or wastewater expressed in mg/I as the amount of oxygen consumed from a chemical oxidant in a specific test, but not differentiating between stable and unstable organic matter and thus not necessarily correlating with biochemical oxygen demand. City or individuals representing the city means the City of Baytown, Texas, or any authorized person acting in its behalf. Composite sample means a sampling method that combines discrete aliquots of a sample collected over time, based on the flow of the wastestream being sampled. There are two methods used to collect this type of sample. One method collects a constant sample volume at time intervals which may vary based on the stream flow (e.g., 200 milliliters (ml) sample collected for every 5,000 gallons discharged). The other method collects aliquots of varying volume, based on stream flow, at constant time intervals. Contact cooling water means water used for cooling which comes into contact with raw material, intermediate product, waste product or finished product. Control authority refers to the POTW of the city. Control manhole means a manhole giving access to a building sewer at some point before the building sewer discharge mixes with other discharges in the public sewer. Director means the director of the city public works/utilities department, or his authorized deputy, agent or representative. Disposal garbage means animal and vegetable wastes and residue from preparation, cooking and dispensing of food; and from the handling, processing, storage and sale of food products and produce. Environmental protection agency or EPA means the United States Environmental Protection Agency. Grab sample means an individual sample collected over a period of time not exceeding 15 minutes. Indirect discharge or discharge means the introduction of pollutants into a POTW from any nondomestic source regulated under section 307(b), (c) or (d) of the act. Industrial user (IU) or user means a source of indirect discharge. Industrial waste means waste resulting from any process of industry, manufacturing, trade or business from the development of any natural resource, disposal garbage or any mixture of the waste with water or normal wastewater, or distinct from normal wastewater. Industrial waste charge or user charge or surcharge means the charge made on those persons who discharge industrial wastes with high loadings over that of normal domestic sewage into the city's sewer system to recover excessive costs for treatment by the city. Interference means a discharge which, alone or in conjunction with a discharge or discharges from other sources, both: (i) inhibits or disrupts the POTW, its treatment processes or operations, or its sludge processes, use or disposal; and (ii) therefore, is a cause of a violation of any requirement of the POTW's TPDES permit, including an increase in the magnitude or duration of a violation, or of the prevention of sewage sludge use or disposal in compliance with the following statutory provisions and regulations or permits issued there under, or more stringent state or local regulations, or section 405 of the Clean Water Act, the Solid Waste Disposal Act (SWDA) including Title 11, more commonly referred to as the Resource Conservation and Recovery Act (RCRA), and including state regulations contained in any state sludge management plan prepared pursuant to Subtitle D of the SWDA, the Clean Air Act, the Toxic Substances Control Act, and the Marine Protection, Research and Sanctuaries Act. Maximum allowable discharge limit means the highest allowable discharge. Milligrams per liter (mg/1) means the same as parts per million and is a weight -to -volume ratio; the milligram -per -liter value multiplied by the factor 8.34 shall be equivalent to pounds per million gallons of water. Page 2 National pretreatment standard, pretreatment standards or standards means any regulation containing pollutant discharge limits promulgated by the EPA in accordance with section 307 (b) and (c) of the act, which applies to industrial users. This term includes prohibitive discharge limits established pursuant to 40 CFR 403.5. Natural outlet means any outlet into a watercourse, ditch, lake or other body of surface water or groundwater. New source means any building, structure, facility or installation from which there is or may be a discharge of pollutants, the construction of which commenced after the publication of proposed pretreatment standards under section 307(c) of the act which will be applicable to such source if such standards are thereafter promulgated in accordance with that section, provided that (i) the building, structure, facility or installation is constructed at a site at which no other source is located; (ii) the building, structure, facility or installation totally replaces the process or production equipment that causes the discharge of pollutants at an existing source; or (iii) the production or wastewater generating processes of the building, structure, facility or installation are substantially independent of an existing source at the same site. In determining whether these are substantially independent, factors such as the extent to which the new facility is integrated with the existing plant, and the extent to which the new facility is engaged in the same general type of activity as the existing source should be considered. Construction on a site at which an existing source is located results in a modification rather than a new source if the construction does not create a new building, structure, facility or installation meeting the criteria of subsections (i) through (iii) of this definition but otherwise alters, replaces or adds to existing process or production equipment. Construction of a new source has commenced if the owner or operator has: (1) Begun, or caused to begin as part of a continuous on-site construction program: a. Any placement, assembly or installation of facilities or equipment; or Significant site preparation work, including clearing, excavation or removal of existing buildings, structures or facilities which is necessary for the placement, assembly or installation of new source facilities or equipment; or (2) Entered into a binding contractual obligation for the purchase of facilities or equipment which are intended to be used in its operation within a reasonable time. Options to purchase or contracts which can be terminated or modified without substantial loss, and contracts for feasibility, engineering and design studies do not constitute a contractual obligation under this subsection. Noncontact cooling water means water used for cooling which does not come into contact with any raw material, intermediate product, waste product or finished product. Nondomestic user means any person who discharges, causes or permits the discharge of wastewater from any facility other than a residential unit. Normal domestic wastewater means wastewater, excluding industrial wastewater, discharged by a person into sanitary sewers and in which the average concentration of total suspended solids is not more than 250 mg/I and BOD is not more than 250 mg/I. Operator means the person responsible for the overall operation of a facility. Overload means the imposition of organic or hydraulic loading on a treatment facility in excess of its engineered design capacity. Owner means the person who owns a facility or part of a facility. Pass through means a discharge which exits the POTW into waters of the United States, or any state, in quantities or concentrations which, alone or in conjunction with a discharge or discharges from other sources, is a cause of a violation of any requirement of the POTW's TPDES permit, including an increase, in the magnitude or duration of a violation. Person or any individual means and includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association and any other legal entity. Page 3 pH means the logarithm (base 10) of the reciprocal of the hydrogen ion concentration. Pollutant means dredged spoils, solid waste, incinerator residue, filter backwash, sewage, garbage, sewage sludge, munitions, chemical wastes, biological materials, radioactive materials, except those regulated under the Atomic Energy Act of 1954, as amended (42 U.S.C. § 2011 et seq.), heat, wrecked or discarded equipment, rock, sand, cellar dirt and industrial, municipal and agricultural waste discharged into water. It does not mean sewage from vessels; or water, gas or other material which is injected into a well to facilitate production of oil or gas, or water derived in association with oil and gas production and disposed of in a well, if the well used either to facilitate production or for disposal purposes is approved by authority of the state in which the well is located and if the state determines that the injection or disposal will not result in the degradation of groundwater or surface water resources. Pretreatment means the reduction of the amount of pollutants, the elimination of pollutants or the alteration of the nature of pollutant properties in wastewater prior to or instead of discharging or otherwise introducing such pollutants into a POTW. The reduction or alteration may be obtained by physical, chemical or biological processes, process changes or by other means, except as prohibited by 40 CFR 403.6(d). Appropriate pretreatment technology includes control equipment, such as equalization tanks or facilities, for protection against surges or slug loadings that might interfere with or otherwise be incompatible with the POTW. However, where wastewater from a regulated process is mixed in an equalization facility with unregulated wastewater or with wastewater from another regulated process, the effluent from the equalization facility must meet an adjusted pretreatment limit calculated in accordance with 40 CFR 403.6(e). Pretreatment requirements means any substantive or procedural requirement related to pretreatment, other than a national pretreatment standard, imposed on an industrial user. Process wastewater means any water which, during manufacturing or processing, comes into direct contact with or results from the production or use of any raw material, intermediate product, finished product, byproduct or waste product. Public sewer means pipe or conduit carrying wastewater or unpolluted drainage in which owners of abutting properties shall have the use, subject to control by the city. Publicly -owned treatment works (POTW) or wastewater treatment plant means a treatment works as defined by section 212 of the act, which is owned by a state or municipality, as defined by section 502(4) of the act. This definition includes any devices and systems used in the storage, treatment, recycling and reclamation of municipal sewage or industrial wastes of a liquid nature. It also includes sewers, pipes and other conveyances only if they convey wastewater to a POTW treatment plant. The term also means the municipality, as defined in section 502(4) of the act, which has jurisdiction over the indirect discharges to and the discharges from such a treatment works. Sanitary sewer means a public sewer that conveys domestic wastewater or industrial wastes or a combination of both and into which stormwater, surface water, groundwater and other unpolluted wastes are not intentionally passed. Significant industrial user means: (1) All dischargers subject to categorical pretreatment standards under 40 CFR 403.6 and 40 CFR chapter I, subchapter N; and (2) All noncategorical dischargers that, in the opinion of the director, have a reasonable potential to adversely affect the POTW's operation, or that contribute a process wastestream which makes up five percent or more of the average dry weather hydraulic or organic capacity of the POTW treatment plant, or that discharge an average of 25,000 gallons per day or more of process wastewater to the POTW. However, the director need not designate as significant any noncategorical industrial user that, in the opinion of the director and with the agreement of the administrator, has no potential for adversely affecting the POTW's operation or for violating any pretreatment standard or requirement. Any noncategorical industrial user designated as significant may petition the director to be deleted from the list of significant industrial users on the grounds that it has no potential for adversely affecting the POTW's operation or violating any pretreatment standard or requirement. Page 4 Slug load or slug means any discharge of a nonroutine, episodic nature, including, but not limited to, an accidental spill or noncustomary batch discharge of water, wastewater or industrial waste which, in concentration of any given constituent or in quantity of flow, exceeds for any period of duration longer than 15 minutes more than five times the average 24-hour concentration or flows during normal operation. Standard industrial classification (SIC) code means a classification pursuant to the Standard Industrial Classification Manual currently issued by the Executive Office of the President, Office of Management and Budget. The SIC defines industries in accordance with the composition and structure of the economy and covers the entire field of economic activities. Storm sewer means a public sewer that carries stormwater and surface water and drainage and into which domestic wastewater or industrial waste is not intentionally passed. Stormwater means rainfall or any other forms of precipitation. Strong acid means any substance with a pH less than 6.0. Suspended solids or total suspended solids (TSS) means solids measured in mg/I that either float on the surface of or are in suspension in water, wastewater or other liquids and which are largely removable by a laboratory filtration device. To discharge includes to deposit, conduct, drain, emit, throw, run, allow to seep or otherwise release or dispose of, or to allow, permit or suffer any of these acts or omissions. Toxic pollutant means one of 126 pollutants or combination of those pollutants listed as toxic in regulations promulgated by the EPA under the provision of section 307 (33 U.S.C. § 1317) of the act. Trap means a device designed to skim, settle or otherwise remove grease, oil, sand, flammable wastes or other harmful substances. Unpolluted wastewater means water containing: (1) No free or emulsified grease or oil; (2) No acids or alkalis; (3) No phenols or other substances producing taste or odor in receiving water; (4) No toxic or poisonous substances in suspension, colloidal state or solution; (5) No noxious or otherwise obnoxious or odorous gases; (6) Not more than an insignificant amount in mg/I each of suspended solids and BOD, as determined by the state natural resource conservation commission; and (7) Color not exceeding 50 units as measured by the platinum -cobalt method of determination as specified in 40 CFR 136. Waste means rejected, unutilized or superfluous substances in liquid, gaseous or solid form resulting from domestic, agricultural or industrial activities. Wastewater means a combination of the water -carried waste from residences, business buildings, institutions and industrial establishments, together with any groundwater, surface water and stormwater that may be present. Wastewater facilities includes all facilities for collection, pumping, treating and disposing of wastewater and industrial wastes. Watercourse means a natural or manmade channel in which a flow of water occurs, either continuously or intermittently. (Code 1967, §§ 34-11, 34-52(a); Ord. No. 1765, § 1, 3-13-75; Ord. No. 6191, § 2, 3-26-92; Ord. No. 6667, § 1, 6-8-93; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,344, § 2, 5-25-06) Page 5 Cross reference— Definitions generally, § 1-2. Sec. 98-127. - Abbreviations. As used in this article, the following abbreviations shall have the following meanings: BOD means five-day biochemical oxygen demand. CFR means Code of Federal Regulations. COD means chemical oxygen demand. EPA means U.S. Environmental Protection Agency. mg/I means milligrams per liter. NPDES means National Pollutant Discharge Elimination System. O&M means operation and maintenance. POTW means publicly -owned treatment works. SIC means standard industrial classifications. TCEQ means Texas Commission on Environmental Quality TPDES means Texas Pollutant Discharge Elimination System. TSS means total suspended nonfilterable solids. USC means United States Code. (Code 1967, § 34-52(b); Ord. No. 6191, § 2, 3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 3, 5-11-06) Sec. 98-128. - Purpose. This article sets forth uniform requirements for direct and indirect contributors into the wastewater collection and treatment system for the city and enables the city to comply with all applicable state and federal laws required by the Clean Water Act (33 U.S.C. § 1251 et seq.) and the General Pretreatment Regulations (40 CFR 403). (Code 1967, § 34-51(a); Ord. No. 6191, § 1, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-129. - Objectives. (a) The objectives of this article are to: (1) Prevent the introduction of pollutants into the municipal wastewater system which will interfere with the operation of the system or contaminate the resulting sludge; (2) Prevent the introduction of pollutants into the municipal wastewater system which will pass through the system, inadequately treated, into receiving waters or the atmosphere or otherwise be incompatible with the system; (3) Improve the opportunity to recycle and reclaim wastewaters and sludges from the system; (4) Provide for equitable distribution of the cost of the municipal wastewater system; (5) Ensure that the composition of sludge will allow its use and disposal to be in compliance with all local, state and federal statutes and regulations; Page 6 (6) Protect the health and welfare of the general public and all the POTW personnel; (7) Enable the city to comply with TPDES permit conditions, sludge use and disposal requirements and any other applicable federal or state law; and (8) Prevent property damage. (b) This article provides for the regulation of direct and indirect contributors to the municipal wastewater system through the issuance of permits to certain nondomestic users and through enforcement of general requirements for the other users, authorizes monitoring and enforcement activities, requires user reporting, assumes that existing customer's capacity will not be preempted and provides for the setting of fees for the equitable distribution of costs resulting from the program established in this article. (Code 1967, § 34-51(b); Ord. No. 6191, § 1, 3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 4, 5-11-06) Sec. 98-130. -Jurisdiction and enforcement. (a) This article shall apply to the city and to persons and entities outside the city who are, by contract or agreement with the city, users of the city POTW. (b) Except as otherwise provided in this article, the director shall administer, implement and enforce the provisions of this article. (c) The requirements of this article shall apply to all areas within the extraterritorial limits of the city, as established by the Texas Revised Civil Statutes and as they shall be amended, and shall apply to all users of the water and sewer system of the city, regardless of location. (Code 1967, § 34-51(c); Ord. No. 6191, § 1, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-131. - Applicability. This article shall apply to all nondomestic users of the city's POTW discharging directly or indirectly into the POTW's sanitary system. In addition, it shall be unlawful for any nondomestic user located outside the city limits to continue discharges to the POTW except as provided in this article. (Code 1967, § 34-51(d); Ord. No. 6191, § 1, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-132. - Compliance. (a) Unless exception is granted by the city, the public sanitary sewer system shall be used by all persons discharging: (1) Wastewater; (2) Industrial waste; and/or (3) Polluted liquids. (b) Unless authorized by the state natural resource conservation commission, no person may deposit or discharge any waste included in subsection (a) of this section on public or private property into or adjacent to any: (1) Natural outlet; (2) Watercourse; (3) Storm sewer; or Page 7 (4) Other area within the jurisdiction of the city. (c) The city shall verify prior to discharge that wastes authorized to be discharged will receive suitable treatment within the provisions of laws, regulations, ordinances, rules and orders of federal, state and local governments. (Code 1967, § 34-20; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-133. - City requirements. (a) If discharges or proposed discharges to public sewers may (i) cause damages to collection facilities; (ii) impair the processes; (iii) incur treatment cost exceeding those of normal sewage; (iv) render the water unfit for receiving waters or industrial use; (v) create a hazard to life or health; or (vi) create a public nuisance; the approving authority shall require the following: (1) Pretreatment to an acceptable condition for discharge to the public sewers; (2) Control of the quantities and rates of discharge of such waste; and (3) Payment of surcharges for excessive cost for treatment, provided such wastes are amenable to treatment by normal sewage plant facilities operated by the city. (b) The city is entitled to determine whether a discharge or proposed discharge is included under subsection (a) of this section. (c) The city shall reject wastes when: (1) It determines that a discharge or proposed discharge is included under subsection (a) of this section; and (2) The discharger does not meet the requirements of subsection (a) of this section. (Code 1967, § 34-21; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-134. - City review and approval. (a) If pretreatment or control is required under this article, the city shall review and approve design and installation of equipment and processes. (b) The design and installation of equipment and processes must conform to all applicable statutes, codes, ordinances and other laws. (c) Any person responsible for discharges requiring pretreatment, flow equalizing or other facilities shall provide and maintain the facilities in effective operating condition at his own expense. (Code 1967, § 34-22; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-135. - Traps. (a) Under this article, discharges requiring a trap should include grease or waste containing grease in excessive amounts, oil, sand, flammable waste and other harmful ingredients. (b) Any person responsible for discharges requiring a trap shall, at his own expense and as required by the city, provide plans and specifications for equipment and facilities of a design type and design capacity approved by the city engineer and by the director. The person shall locate the trap in a manner that provides easy accessibility for cleaning and inspection and maintain the trap in effective operating condition. The trap shall be inspected by the city's inspection department during construction and upon completion. A final inspection shall be made by all interested parties, including the city engineer, director and chief building official, before any service connections are made. Page 8 (Code 1967, § 34-23; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-136. - Building sewers. (a) Any person responsible for a discharge through a building sewer carrying industrial wastes shall, at his own expense and as required by the city: (1) Install an accessible and safely located control manhole or inspection chamber; (2) Install meters and other appurtenances to facilitate observation sampling and measurement of the waste; and (3) Maintain the equipment and facilities. (b) Every such manhole or inspection chamber, shall be of such design and construction as to prevent infiltration by groundwater and surface water or introduction of slugs or solids by the installation of screens with maximum openings of one inch, but of sufficient fineness to prevent the entrance of objectionable slugs or solids to the sanitary sewer system, and shall be so maintained by the person discharging wastes so that any authorized representative or employee of the city may readily and safely measure the volume and obtain samples of the flow at all times. Plans for the construction of control manholes or inspection chambers, including such flow measuring devices as may be required by this article, shall be approved by the director prior to the beginning of construction. (Code 1967, § 34-24; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-137. - Hauled wastewater procedures. (a) As used in this section, "industrial waste" shall include septic tank waste. (b) Industrial waste may be introduced into the POTW only at locations designated by the director and at such times as are established by the director. Such waste shall not violate division 5 of this article or any other requirements established by the city. (c) Industrial waste haulers may discharge loads only at locations designated by the director. No load may be discharged without prior consent of the director. The director may collect samples of each hauled load to ensure compliance with applicable standards. The director may require the industrial waste hauler to provide a waste analysis of any load prior to discharge. (d) An industrial waste hauler must provide a waste -tracking form for every load. This form shall include at a minimum the name and address of the person generating the industrial waste and the volume and characteristics of the waste. The form shall identify the type of industry, known or suspected waste constituents and whether any wastes are RCRA hazardous wastes. (Ord. No. 8118, § 1, 10-23-97) Sec. 98-138. - Protection from damage. No unauthorized person shall maliciously, willfully or negligently break, damage, destroy, uncover, deface or tamper with any structure, appurtenance or equipment which is part of the sewer works. Any person violating this section shall be guilty of a misdemeanor and fined in accordance with the penalty set out in division 2 of this article. (Code 1967, § 34-55; Ord. No. 6191, § 5, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-139. - Confidential information, access to data. Page 9 Information and data provided to the city pursuant to this article that is effluent data shall be available to the public without restriction. Any other information submitted may be claimed as confidential by the submitter. Any such claim must be asserted at the time of submission in the manner prescribed on the application form or instructions or, for other submissions, by stamping the works "confidential business information" on each page containing such information. If no claim is made at the time of submission, the city may make the information available to the public without further notice. If a claim is asserted, the city will submit the information to the state attorney general and the submitter will be required to assert why the information should not be public. Unless the state attorney general's public information opinion is timely appealed, the city and the submitter shall be bound by such opinion. (Code 1967, § 34-61; Ord. No. 6191, § 11, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-140-98-165. - Reserved. DIVISION 2. - ADMINISTRATION AND ENFORCEMENT Subdivision I. - In General Sec. 98-166. - Publication of industrial users in significant noncompliance. As required by the public participation requirements of 40 CFR Part 25, on July 31 of each year the director shall cause to be published in the largest daily newspaper published in the city a list of all industrial users which at any time during the previous 12 months, were in significant noncompliance with applicable pretreatment standards and requirements. For the purpose of this section, an industrial user is in significant noncompliance if its violation meets one or more of the following criteria: (1) Chronic violations of wastewater discharge limits, defined as those in which 66 percent or more of all of the measurements taken during a six-month period exceed by any magnitude the daily maximum limit or the average limit for the same pollutant parameter; (2) Technical review criteria (TRC) violations, defined here as those in which 33 percent or more of all the measurements for each pollutant parameter taken during a six-month period equal or exceed the product of the daily maximum limit or the average limit multiplied by the applicable TRC (TRC:1.4 for BOD, TSS, fats, oil and grease, and 1.2 for all other pollutants except pH); (3) Any other violation of a pretreatment effluent limit (daily maximum or longer-term average) that the director determines has caused interference or pass through, including endangering the health of POTW personnel or the general public; (4) Any discharge of a pollutant that has caused imminent endangerment to human health or welfare or to the environment or has resulted in the POTW's exercise of its emergency authority under section 98-198 to halt or prevent such a discharge; (5) Failure to meet, within 90 days after the schedule milestone contained in a local control mechanism or enforcement order for starting construction, completing construction or attaining final compliance; (6) Failure to provide, within 30 days after the due date, required reports such as baseline monitoring reports, 90 -day compliance reports, periodic self-monitoring reports and reports on compliance with compliance schedules; (7) Failure to accurately report noncompliance; or (8) Any other violation or group of violations the director determines will adversely affect the operation or implementation of the local pretreatment program. Page 10 (Code 1967, § 34-62; Ord. No. 6191, § 12, 3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 5, 5-11-06) Sec. 98-167. - Act of God defense. (a) The act of God defense constitutes statutory affirmative defense (V.T.C.A., Water Code § 7.251) in an action brought in municipal or state court. If a person can establish that an event that would otherwise be a violation of a pretreatment ordinance or a permit issued under the ordinance was caused solely by an act of God, war, strike, riot or other catastrophe, the event is not a violation of the ordinance or permit. (b) An industrial user who wishes to establish the act of God affirmative defense shall demonstrate, through relevant evidence that: (1) An event that would otherwise be a violation of a pretreatment ordinance or a permit issued under the ordinance occurred and the sole cause of the event was an act of God, war, strike, riot or other catastrophe; and (2) The industrial user has submitted the following information to the POTW and the city within 24 hours of becoming aware of the event that would otherwise be a violation of a pretreatment ordinance or a permit issued under the ordinance (if this information is provided orally, a written submission must be provided within five days): a. A description of the event, and the nature and cause of the event; b. The time period of the event, including exact dates and times or, if still continuing, the anticipated time the event is expected to continue; and c. Steps being taken or planned to reduce, eliminate and prevent recurrence of the event. (c) Burden of proof. In any enforcement proceeding, the industrial user seeking to establish the act of God affirmative defense shall have the burden of proving by a preponderance of the evidence that an event that would otherwise be a violation of a pretreatment ordinance or a permit issued under the ordinance was caused solely by an act of God, war, strike, riot or other catastrophe. (Ord. No. 10,322, § 6, 5-11-06) Editor's note— Ord. No. 10,322, § 6, adopted May 11, 2006, repealed the former § 98-167, and enacted a new § 98-167 as set out herein. The former provisions pertained to affirmative defenses to upsets and derived from Code 1967, § 34-65(a); Ord. No. 6191, § 15, adopted March 26, 1992; Ord. No. 8118, § 1, adopted Oct. 23, 1997. Sec. 98-168. - Affirmative defenses to bypass. (a) Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning. Bypass means the intentional diversion of wastestreams from any portion of an industrial user's treatment facility. Severe property damage means substantial physical damage to property, damage to the treatment facilities which causes them to become inoperable, or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass. Severe property damage does not mean economic loss caused by delays in production. (b) Bypass not violating applicable pretreatment standards or requirements. An industrial user may allow any bypass to occur which does not cause pretreatment standards or requirements to be violated, Page 11 but only if it also is for essential maintenance to assure efficient operation. These bypasses are not subject to the provisions of subsections (c) and (d) of this section. (c) Notice. (1) If an industrial user knows in advance of the need for a bypass, it shall submit prior notice to the director, if possible at least ten days before the date of the bypass. If ten days' notice is not possible, the industrial user shall submit notice as soon as possible. (2) An industrial user shall submit oral notice of an unanticipated bypass that exceeds applicable pretreatment standards to the director within 24 hours from the time the industrial user becomes aware of the bypass. A written submission shall also be provided within five days of the time the industrial user becomes aware of the need for the bypass. The written submission shall contain a description of the bypass and its cause; the duration of the bypass, including exact dates and times, and, if the bypass has not been corrected, the anticipated time it is expected to continue; steps taken or planned to reduce, eliminate and prevent reoccurrence of the bypass. The director may at his discretion waive the written report on a case-by-case basis if the oral report has been received within 24 hours. (d) Prohibition of bypass. (1) Bypass is prohibited, and the director may take enforcement action against an industrial user for a bypass, unless: a. The bypass was unavoidable to prevent loss of life, personal injury or severe property damage; b. There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes or maintenance during normal periods of equipment downtime. This condition is not satisfied if adequate backup equipment should have been installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventive maintenance; and c. The industrial user submitted notices as required under this section. (2) The director may approve an anticipated bypass, after considering its adverse effects, if the director determines that it will meet the three conditions listed in subsection (d)(1) of this section and the industrial user complies with the notice requirements of subsection (c) of this section. (e) Burden of proof. In any enforcement proceeding, the industrial user seeking to establish the occurrence of a nonprohibited bypass shall have the burden of proving the occurrence to a preponderance of the evidence. (Code 1967, § 34-65(b); Ord. No. 6191, § 15, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-169-98-190. - Reserved. Subdivision Il. - Administrative Enforcement Remedies Sec. 98-191. - Notification of violation. Whenever the director finds that any user has violated or is violating this article, a permit or any prohibition, limitation or requirements contained herein, the director may serve upon such person a written notice stating the nature of the violation. Within 30 days of the date of notice, a plan for the satisfactory correction thereof shall be submitted to the director by the user. (Code 1967, § 34-63(a); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Page 12 Sec. 98-192. - Consent orders. The director is empowered to enter in consent orders, assurances of voluntary compliance, or other similar documents establishing an agreement with the industrial user responsible for the noncompliance with this article or any permit. Such orders will include specific action to be taken by the industrial user to correct the noncompliance within a time period also specified by the order. Consent orders shall have the same force and effect as administrative orders issued pursuant to sections 98-194 and 98-195. (Code 1967, § 34-63(b); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-193. - Show cause hearing. (a) Whenever the director has proposed to take any enforcement action against any user pursuant to the provisions of this article, other than an emergency suspension or a cease and desist order, or termination of a discharge, the director shall first provide notice in the form and manner described in subsection (b) of this section to the user and afford the user an opportunity for a hearing in the form and manner described in this section before the enforcement action is taken. If, after the director has complied with the notice requirements as described in subsection (b) of this section, the user does not request a hearing for review of the enforcement action within the specified time, the director may take the enforcement action on the day specified in the notice to the user, or at any time thereafter. (b) Notice must be sent to the user at least eight days prior to the proposed date of the proposed enforcement action, if notice is sent by mail, or at least five days prior to the proposed enforcement action, if notice is delivered by the director. The notice may be sent by certified mail, return receipt requested or hand delivered to the user by a person designated by the director to deliver such notices. The notice must be written and clearly communicate the following information: (1) The name of the user against whom the enforcement action is proposed to be taken; (2) The address of the user against whom the enforcement action is proposed to be taken; (3) The reason for the proposed enforcement action including the date and general nature of the alleged violation of this article; (4) The nature of the proposed action, and the date and time that the proposed enforcement action will take place, including the amount of the fine which could be imposed; (5) The user has the right to appear and be heard at a hearing to show cause why the proposed enforcement action should not be taken; (6) The means by which the user may arrange for such a hearing; and (7) The date by which the user must request and set the hearing in order to receive it, which deadline may be no earlier than one day prior to the date of the proposed enforcement action, nor may that deadline ever be sooner than five days from the date of sending of the notice, the five days not including weekdays on which city offices are closed for holidays. (c) After the deadline for requesting a hearing as described in subsection (b) of this section has passed, a user may still request a hearing to review the proposed enforcement action within ten days of the aforementioned deadline, upon presentation to the city manager of an affidavit declaring that the user, through no fault of that user, did not receive notice of the proposed enforcement action in time to act upon the notice. When a hearing pursuant to this subsection is requested, the city manager shall as soon as practicable make a determination of whether the appeal appears to be meritorious, and if the city manager determines that it is meritorious, the city manager shall order that the proposed enforcement action be postponed pending the appeal. (d) If any user requests a hearing to review the decision to take an enforcement action against that user, the hearing shall be presided over by the city manager or any fair and neutral person he may appoint, which person must be of managerial employment and not involved in the original decision to take the proposed enforcement action, in this context known as the hearing officer. The hearing shall Page 13 be held no sooner than the next business day nor later than 15 business days after being requested by the user. The hearing officer may, in his discretion, delay or advance the hearing time upon showing of good cause by the user. At the hearing, the user shall be given the opportunity to be heard in person to present the user's case, to present testimony from other persons, and to admit documents. The user may be represented by counsel, though the city shall not provide counsel to the user. The user shall be given the opportunity to confront and cross-examine any witnesses appearing against him at the hearing. The user may request that a representative of the utilities department be present at the hearing and be subject to questioning. However, the rules of evidence or procedure for civil or criminal trials need not be enforced. The city's reasons for the proposed enforcement action shall be stated at the hearing. Upon reaching a final decision, the hearing officer shall state his reasons for reaching that decision and state the evidence on which the hearing officer relied in reaching those conclusions. If the hearing officer finds in favor of the user, the proposed enforcement action shall not take place. The hearing officer shall have the power to grant extensions, modify orders and fashion other reliefs as would be equitable and consistent with applicable regulations and laws promulgated by the United States, the state or any administrative agency thereof. (e) At any hearing held pursuant to this article, testimony taken must be under oath and recorded. A transcript of the hearing will be made available to any member of the public or any party to the hearing upon payment of the usual charges for such transcription. (Code 1967, § 34-63(c); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-194. - Compliance order. When the director finds that an industrial user has violated or continues to violate this article or a permit or order issued under this article, but where the violation does not involve a pass through or interference that could cause the city to be in violation of federal or state environmental regulations, he may issue, within a 30 -day period of such finding, an order to the industrial user responsible for the discharge directing that, following a specified time period, sewer service shall be discontinued unless adequate treatment facilities, devices or other related appurtenances have been installed and are properly operated. Orders may also contain such other requirements as might be reasonably necessary and appropriate to address the noncompliance, including the installation of pretreatment technology, additional self-monitoring and management practices. (Code 1967, § 34-63(d); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-195. - Cease and desist orders. When the director finds that an industrial user has violated or continues to violate this article or any permit or order issued under this article, the director may issue an order to cease and desist all such violations and direct those persons in noncompliance to: (1) Comply forthwith; and (2) Take such appropriate remedial or preventive action as may be needed to properly address a continuing or threatened violation, including halting operations and terminating the discharge. (Code 1967, § 34-63(e); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-196. - Administrative fines. Notwithstanding any other section of this article, any user who is found to have violated any provision of this article or any permits and orders issued under this article shall be fined in an amount not to exceed $2,000.00 per violation. Each day on which noncompliance shall occur or continue shall be deemed a Page 14 separate and distinct violation. The amount of such fine may be added to the user's next scheduled sewer service charge and the director shall take such other collection remedies as he has to collect other service charges. Unpaid charges, fines and penalties shall constitute a lien against the individual user's property. Industrial users desiring to dispute such fines must file a request for the director to reconsider the fine in accordance with section 98-193. (Code 1967, § 34-63(fl; Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-197. - Emergency suspensions. (a) The director may suspend the wastewater treatment service and permit of an industrial user whenever such suspension is necessary in order to stop an actual or threatened discharge presenting or causing an imminent or substantial endangerment to the health or welfare of persons, the POTW or the environment. (b) Any user notified of a suspension of the wastewater treatment service or the permit shall immediately stop or eliminate its contribution. If a user fails to immediately comply voluntarily with the suspension order, the director shall take such steps as he deems necessary, including immediate severance of the sewer connection, to prevent or minimize damage to the POTW, its receiving stream or endangerment to any individuals. The director shall allow the user to recommence its discharge when the endangerment has passed, unless the termination proceedings set forth in section 98-198 are initiated against the user. (c) An industrial user which is responsible, in whole or in part, for imminent endangerment shall submit to the director a detailed written statement describing the causes of the harmful contribution and the measures taken to prevent any future occurrence prior to the date of the hearing described in section 98-193, or within the time period allowed for requesting such a hearing if no hearing is requested. (Code 1967, § 34-63(g); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-198. -Termination of discharge. The director shall have authority, after informal notice to the discharger, to immediately and effectively halt or prevent any discharge of pollutants to the POTW which reasonably appears to present an imminent endangerment to the health or welfare of persons. The director shall also have authority, which shall include notice to the affected industrial users and an opportunity to respond, to halt or prevent any discharge to the POTW which presents or may present an endangerment to the environment or which threatens to interfere with the operation of the POTW. The director shall have authority to seek judicial relief and may also use administrative penalty authority when the director has sought a monetary penalty which the director believes to be insufficient. (Code 1967, § 34-63(h); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-199. - Post enforcement hearing. Under this article, whenever the director has ordered an emergency suspension, ordered an enforcement action which, for reasons of imminent public danger must be complied with immediately, such as issuing a cease and desist order, or a termination of discharge, the user shall, upon compliance with such order, be afforded notice of an opportunity to request a hearing in the form and manner specified in section 98-193. The notice referred to therein shall be mailed to the user against whom the enforcement action is taken within three days after the user has complied with the enforcement action. The notice shall be in the same form and of the same contents as the notice prescribed in section 98- 193(b), except that the deadline by which the user must request and set the hearing in order to receive it Page 15 may be no earlier than five days after the mailing of the notice nor later than 15 days after the mailing of the notice. (Code 1967, § 34-63(i); Ord. No. 6191, § 13, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-200-98-220. - Reserved. Subdivision III. -Judicial Enforcement Remedies Sec. 98-221. - Injunctive relief. Whenever an industrial user has violated or continues to violate the provisions of this article or any permit or order issued under this article, the director, through counsel, may petition any court of competent jurisdiction for the issuance of a preliminary or permanent injunction, or both, as may be appropriate, which restrains or compels the activities on the part of the industrial user, and such other actions as appropriate for legal and/or equitable relief may also be sought by the city. (Code 1967, § 34-64(a); Ord. No. 6191, § 14, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-222. - Civil penalties. For any user who is found to have violated an order of the director or who intentionally, recklessly or negligently fails to comply with any section of this article, and the orders, rules, regulations and permits issued under this article, a civil penalty shall be assessed of not more than $2,000.00 for each offense. Each day on which a violation shall occur or continue shall be deemed a separate and distinct offense. The city is specifically authorized to recover all consequential damages available at law or in equity resulting directly or indirectly from an unauthorized discharge to the POTW, including upsets or bypasses. Such damages shall include, but not be limited to, any fines or penalties assessed against the city by any state or federal agency or commission as a result of such discharge. In addition to the penalties and damages provided herein, the director may recover reasonable attorney's fees, court costs, court reporters' fees and other expenses of litigation by appropriate suit at law against the person found to have violated this article or the orders, rules, regulations and permits issued under this article. Additional recoveries and relief in law or equity under existing federal or state law are not precluded by specific recoveries obtained by the city under this subdivision. (Code 1967, § 34-64(b); Ord. No. 6191, § 14, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-223. - Criminal prosecution. (a) Violations generally. Any industrial user who intentionally, recklessly or negligently violates any provision of this article or any orders or permits issued hereunder shall, upon conviction, be guilty of a misdemeanor affecting fire, safety, public health or sanitation, punishable by a fine not to exceed $2,000.00 per violation. Each day on which a violation shall occur or continue shall be deemed a separate and distinct offense. (b) Falsifying information. Any industrial user who knowingly makes any false statements, representations or certifications in any application, record, report, plan or other document filed or required to be maintained pursuant to this article or any permit, or who falsifies, tampers with or knowingly renders inaccurate any monitoring device or method required under this article shall, upon conviction, be guilty of a misdemeanor affecting fire, safety, public health or sanitation and shall be Page 16 punished by a fine of not more than $2,000.00 per violation. Each day on which a violation shall occur or continue shall be deemed a separate and distinct offense. (c) Federal or state penalties. Nothing in this subdivision shall be construed to limit the liability of any violator to penalties or fines imposed by agencies of the United States or this state. (Code 1967, § 34-64(c); Ord. No. 6191, § 14, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-224-98-250. - Reserved. DIVISION 3. - PERMITS Sec. 98-251. - General permit requirements. (a) Notice from nondomestic users. Under this article, every nondomestic user must notify the director of the nature and characteristics of its wastewater prior to commencing the discharge. The director is authorized to prepare a form for this purpose. (b) Control of contributions to POTW. The POTW shall have legal authority to control through permit, order or similar means, the contribution to the POTW by each industrial user to ensure compliance with applicable pretreatment standards and requirements. For significant industrial users under 40 CFR 403.3(t), this control shall be achieved through permits or equivalent individual control mechanisms issued to each such user. (c) Wastewater survey. Every industrial user shall complete a wastewater discharge permit application/survey approved by the director within 30 days of written instruction to do so by a city official. (d) Permit required; effect of permit. It shall be unlawful for any categorical or significant industrial users to discharge wastewater, either directly or indirectly, into the city's sanitary sewer system without first obtaining an industrial user pretreatment permit from the director. Any violation of the terms and conditions of a permit shall be deemed a violation of this article. Obtaining a permit does not relieve a permittee of its obligation to obtain other permits required by federal, state or local law. (e) Denial or conditions of new or increased contributions. The POTW shall have legal authority to deny or condition new or increased contributions of pollutants, or changes in the nature of pollutants, to the POTW by industrial users where such conditions do not meet applicable pretreatment standards and requirements or where such contributions would cause the POTW to violate its NPDES permit. (f) Additional users requiring permit. The director may require that other industrial users, including liquid waste haulers, obtain wastewater discharge permits as necessary to carry out the purposes of this article. (g) Users outside city limits. Any industrial user located beyond the city limits, including, but not limited to, extrajurisdictional industrial users, shall submit a permit application in accordance with this article within 30 days of the effective date of the ordinance from which this article derives. Any new industrial user located beyond city limits shall submit such applications to the director 60 days prior to discharging into the sanitary sewer. Upon review and approval of such application, the director may enter into a contract with the user which requires the user to subject itself to, and abide by, this article, including all permitting, compliance monitoring, reporting and enforcement sections of this article. (h) Existing connections. Any significant industrial user which discharges nondomestic waste into the sanitary sewer system prior to the effective date of the ordinance from which this article derives and who wishes to continue such discharges in the future, shall within 90 days after such effective date, apply to the director for a wastewater discharge permit and shall not cause or allow discharges to the Page 17 POTW to continue after 180 days from and after the effective date of the ordinance from which this article derives, except in accordance with a permit issued by the director. (i) New connections. Any significant industrial user proposing to begin or recommence discharging nondomestic wastes into the sanitary sewer system must obtain a pretreatment permit prior to beginning or recommencing such discharge. An application for this permit must be filed at least 90 days prior to the anticipated startup date. (j) Certification statement. All permit applications must contain the following certification statement and shall be signed in accordance with subsection (k)(1), (2), (3) or (4) of this section: I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person who manages the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations." (k) Signatures on certification statement. The certification statement required in subsection 0) of this section shall be signed by the following: (1) A responsible corporate officer, if the industrial user submitting the reports is a corporation. For the purpose of this subsection a responsible corporate officer means: a. A president, secretary, treasurer or vice-president of the corporation in charge of a principal business function, or any other person with similar policy- or decision-making responsibilities for the corporation; or b. The manager of one or more manufacturing, production or operation facilities employing more than 250 persons or having gross annual sales or expenditures exceeding $25,000,000.00, in second quarter 1980 dollars, if authority to sign documents has been assigned or delegated; (2) A general partner or proprietor if the industrial user submitting the reports is a partnership or sole proprietorship, respectively; (3) The principal executive officer or director having responsibility for the overall operation of the discharging facility if the industrial user submitting the reports is a federal, state or local governmental entity, or its agents; (4) A duly authorized representative of the individual designated in subsection (k)(1), (2) or (3) of this section if: a. The authorization is made in writing by the individual described in subsection (k)(1), (2) or (3) of this section; The authorization specified either an individual or a position having responsibility for the overall operation of the facility from which the industrial user discharge originates, such as the director, or a position of equivalent responsibility, or having overall responsibility for environmental matters for the company; and c. The written authorization is submitted to the director. (5) If an authorization under subsection (k)(4) of this section is no longer accurate because a different individual or position has responsibility for the overall operation of the facility or overall responsibility for environmental matters for the company, a new authorization satisfying the requirements of subsection (k)(4) of this section must be submitted to the director prior to or together with any reports to be signed by an authorized representative. (Code 1967, §§ 34-56, 34-57; Ord. No. 6191, §§ 6, 7, 3-26-92; Ord. No. 6529, § 1, 1-28-93; Ord. No. 6667, § 2, 6-8-93; Ord. No. 8118, § 1, 10-23-97) Page 18 Sec. 98-252. - Application. In order to be considered for a wastewater discharge permit, every industrial user required to have a permit must submit the following information on an application form approved by the director: (1) The name, address and location, if different from the address, state of incorporation, if applicable; (2) Standard industrial classification (SIC) code of both the industry as a whole and any processes for which federal categorical standards have been promulgated; (3) Wastewater constituents and characteristics, including any pollutants in the discharge which are limited by federal, state or local standards. Sampling and analysis will be taken in accordance with 40 CFR 136; (4) The time and duration of the discharge; (5) Daily maximum, daily average and monthly average wastewater flow rates, including daily, monthly and seasonal variations, if any; (6) Description of activities, facilities and plant processes on the premises, including a list of all raw materials and chemicals used at the facility which are or could accidentally or intentionally be discharged to the POTW; (7) The site plans, floor plans and mechanical and plumbing plans and details to show all sewers, floor drains and appurtenances by size, location and elevation; (8) Each product produced by type, amount, process or processes and rate of production; (9) Type and amount of raw materials processed (average and maximum per day); (10) The number and type of employees, and hours of operation, and proposed or actual hours of operation of the pretreatment system; (11) Whether additional operation and maintenance (O&M) or additional pretreatment is required for the user to meet all applicable federal, state and local standards. If additional pretreatment or O&M will be required to meet the standards, then the industrial user shall indicate the shortest time schedule necessary to accomplish installation or adoption of such additional treatment and O&M. The completion date in this schedule shall not be longer than the compliance date established for the applicable pretreatment standard. The following conditions apply to this schedule: a. The schedule shall contain progress increments in the form of dates for the commencement and completion of major events leading to the construction and operation of additional pretreatment required for the user to meet the applicable pretreatment standards. Such events include hiring an engineer, completing preliminary plans, completing final plans, commencing construction, completing construction, beginning operation and conducting routine operation. No increment referred to in this subsection shall exceed nine months, nor shall the total compliance period exceed 18 months; and b. No later than 14 days following each date in the schedule and the final date for compliance, the user shall submit a progress report to the director including, as a minimum, whether or not it complied with the increment of progress, the reason for any delay, and if appropriate, the steps being taken by the user to return to the established schedule. In no event shall more than nine months elapse between such progress reports to the director; (12) Any other information as may be deemed by the director to be necessary to evaluate the permit application; (13) All plans required must be certified for accuracy by a professional engineer registered in the state unless otherwise accepted by the director; and Page 19 (14) A statement, reviewed by an authorized representative of the industrial user, as defined in this article, and certified to by a qualified professional, indicating whether pretreatment standards are being met on a consistent basis, and, if not, whether additional O&M and additional pretreatment is required for the industrial user to meet the pretreatment standards and requirements. (Code 1967, § 34-58(1)—(14), (17); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-253. - Contents. A wastewater discharge permit issued under this division shall contain the following: (1) A statement of duration (in no case more than three years); (2) A statement of nontransferability without, at a minimum, prior notification to the POTW and provision of a copy of the existing control mechanism to the new owner or operator; (3) The effluent limits based on applicable general pretreatment standards in 40 CFR 403, categorical pretreatment standards, local limits and state and local law; (4) Self-monitoring, sampling, reporting, notification and recordkeeping requirements, including an identification of the pollutants to be monitored, sampling location, sampling frequency and sample type, based on the applicable general pretreatment standards in 40 CFR 403, categorical pretreatment standards, local limits and state and local law; (5) A statement of applicable civil and criminal penalties for violation of pretreatment standards and requirements, and any applicable compliance schedule. Such schedules may not extend the compliance date beyond applicable federal deadlines; (6) Limits on average and maximum rate and time of discharge or requirements for flow regulations and equalization; (7) Requirements for installation and maintenance of inspection and sampling facilities. Where the installation of a sampling facility is required, the industrial user shall have 90 days to install it from the date of the issuance of their permit; (8) Compliance schedules; (9) Requirements for maintaining and retaining plant records relating to wastewater discharge as specified by the city, and affording city access thereto; (10) Requirements for notification of the city of any new introduction of wastewater constituents or any substantial change in the volume or character of the wastewater constituents being introduced into the wastewater treatment system; and (11) Other conditions as deemed appropriate by the city to ensure compliance with this article. (Code 1967, § 34-58(18); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-254. - Issuance. The director will evaluate the data furnished by the industrial user on the wastewater permit application and may require additional information. After evaluation of the data furnished, the director may issue a permit subject to terms and conditions provided therein. (Code 1967, § 34-58(15); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-255. - Appeals. Page 20 (a) Except as provided in sections 98-197 and 98-198, the director shall give ten days' prior notice to any person whose utilities are to be terminated pursuant to this article. Any such notice shall specify the reasons for the proposed termination and inform the affected person of the appeal procedure provided in this section. If, within such ten-day period, the director receives notice that such person requests a hearing, the effective date of the termination shall be automatically delayed at least until the date set by the director for a hearing. The director shall select a hearing date, giving the person appealing the decision at least three days' notice thereof. (b) Any person whose application for a permit is denied, whose permit is suspended or revoked pursuant to this article or whose service is being terminated shall be given notice thereof. Any such notice shall specify the reasons for this decision and inform the affected person of the appeal procedure provided in this section. If any such affected person desires a hearing, he shall file a notice of appeal with the director no later than ten days after his receipt of the director's official notice of decision. (c) The director shall establish rules not inconsistent with this division governing hearing procedures. (d) The director shall appoint a qualified individual, who was not involved in the original decision to deny the permit, to serve as hearings examiner to hear appeals. The hearings examiner shall be authorized to affirm, deny or modify the director's initial decision. (e) The hearings examiner may, in lieu of termination of service, require any or all of the following: (1) Penalties not to exceed $2,000.00 per day; (2) Special permit conditions; (3) Mandatory compliance schedules; or (4) Any other action which he deems just and equitable. (f) The city may immediately terminate water/wastewater service and provide a hearing as described in this section within three days of initial termination, if the director determines that a discharge from an industrial user presents an imminent threat that: (1) The health of city employees or the public will be endangered; or (2) A likelihood that the city's treatment plant permit parameters, including sludge, will be violated, (g) To be effective under this section, a notice shall be in writing and either: (1) Delivered in person to the person or his agent entitled to receive such notice; or (2) Sent by United States certified mail, return receipt requested, to the person or his agent entitled to receive notice. (Code 1967, § 34-58(19); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-256. - Modifications. Within nine months of the promulgation of a national categorical pretreatment standard, the wastewater discharge permit to a user subject to such standards shall be revised to require compliance with such standards within the time frame prescribed by such standard. Where a user, subject to national categorical pretreatment standards, has not previously submitted an application for a permit as required by the act, the user shall apply for a permit within 180 days after the promulgation of the applicable national pretreatment standard. In addition, the user with an existing permit shall submit to the director within 180 days after the promulgation of an applicable federal categorical pretreatment standard the information required by 40 CFR 403.12. The director shall notify all industrial users of the existence of requirements under sections 204(b) and 405 of the act and subtitles C and D of the Resource Conservation and Recovery Act. Page 21 (Code 1967, § 34-58(20); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-257. -Transferability. A wastewater discharge permit is issued to a specific user for a specific operation at a specific location. A wastewater discharge permit shall not be reassigned or transferred or sold to a new owner, a new user, a different premises or a new or changed operation without the approval of the director. (Code 1967, § 34-58(21); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-258. - Revocation. (a) The director is authorized to suspend or revoke any permit issued under this division and terminate service at any time that the permittee: (1) Violates any section of any city ordinance pertaining to sewage disposal into the city sewers; or (2) Discharges waste in a quantity or a quality violating the provisions of the permit or otherwise prohibited by the article or other related city ordinances. (b) If a permittee violates any conditions of its permit, the permittee shall submit written notice to the director within 15 days of such violation outlining the steps which will be taken to effectuate correction of such violation. The violation shall be corrected within 30 days after the occurrence of such violation, unless a different time schedule for correction is approved by the director. (c) If the director discovers a violation of a permit condition, the director will give written notice of such violation to the permittee, and the permittee shall, within 15 days after receipt of such notice, furnish the director in writing the proposed action which will be taken to effectuate correction of such violation. (Code 1967, § 34-58(22); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-259. - Reissuance. The user shall apply for reissuance of a wastewater discharge permit by submitting a complete permit application a minimum of 90 days prior to the expiration of the user's existing permit. (Code 1967, § 34-58(23); Ord. No. 6191, § 8, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-260-98-285. - Reserved. DIVISION 4. - USER CHARGES AND AGREEMENTS Sec. 98-286. - Payment and agreement required. (a) A person making discharges of industrial waste where the discharge contains excessive loadings of BOD or TSS shall pay a user charge to cover the cost of collection and treatment. (b) When discharges of industrial waste are approved by the city, the city shall enter into an agreement or arrangement providing: (1) The terms of acceptance by the city; and Page 22 (2) Payment by the person making the discharge. (Code 1967, § 34-27; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-287. - User charge and added costs. (a) If the volume or character of the waste to be treated by the city does not cause overloading to sewage collection, treatment or disposal facilities of the city, prior to approval, the city and the person making the discharge shall enter into an agreement which provides that the discharger pay an industrial waste charge to be determined from a current analysis on the discharger's wastewater and the unit cost calculated by the city. If the BOD and TSS cannot be maintained in compliance with normal domestic wastewater, the city may impose an appropriate user charge. (b) If the volume or character of the waste to be treated by the city requires that wastewater collection, treatment or other disposal facilities of the city be improved, expanded or enlarged in order to treat the waste, prior to approval, the city and the person making the discharge shall enter into an agreement which provides that the discharger pay in full all added costs the city may incur due to acceptance of the waste. (c) The agreement entered into pursuant to subsection (b) of this section shall include, but not be limited to: (1) Amortization of all capital outlay for collecting and treating the waste, including new capital outlay and the proportionate part of the value of the existing system used in handling and treating the waste; (2) O&M, including salaries and wages, power costs, costs of chemicals and supplies, proper allowances for maintenance, depreciation, overhead and office expense. (d) Amortization shall be completed in a 30 -year period and payment shall include all debt service costs. (Code 1967, § 34-30; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-288. - User charge agreements. (a) Under this division, user charges shall be calculated by the following formula with the city's unit cost being assessed after testing has been done: User charge = Where: BOD + TSS 250 250 1 x (O&M cost) x (Volume) BOD Represents the biochemical oxygen demand in mg/I of the industrial waste. Note: For concentrations less than or equal to 250 mg/I, the value of BOD shall be considered zero. TSS Represents the biochemical oxygen demand in mg/I of the industrial waste. Note: For concentrations less than or equal to 250 mg/I, the value of TSS shall be considered zero. Page 23 O&M Represents operations and maintenance cost of the city's sewer works. Note: The operations cost and maintenance cost as determined by the city shall be periodically updated. Volume Represents volume discharged in thousand gallons. (b) The volume of waste shall be determined by the same methods used to calculate the normal sewer service charge or by a sewage flow meter that has been approved by the city and purchased, installed and maintained by the permittee. (c) All flow rates, BOD and TSS values used in determination of the surcharges contemplated in this division shall be reevaluated at least annually. (Ord. No. 8118, § 1, 10-23-97) Sec. 98-289. - Adjustment of charges. (a) The city shall adjust sewer user charges at least annually to reflect changes in the characteristics of wastewater based on the results of sampling and testing. (b) Increases in charges shall continue for 12 billing periods unless subsequent tests determine that the charge should be adjusted. (c) The city shall review at least annually the basis for determining charges and shall adjust the unit cost in the formula to reflect increases or decreases in wastewater treatment and collection costs based on the previous year's experience. (d) The city shall bill the discharger by the month and shall show industrial waste charges as a separate item on the regular bill for water and sewer charges. The discharger shall pay monthly in accordance with practices existing for payment of sewer charges. (Code 1967, § 34-32; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Sec. 98-290. - Failure to pay. In addition to sanctions provided for by this article, the city is entitled to take any action as provided for by this Code and other city ordinance for failure to pay the bill for water and sanitary sewer service when due. (Code 1967, § 34-38; Ord. No. 1765, § 1, 3-13-75; Ord. No. 8118, § 1, 10-23-97) Secs. 98-291-98-315. - Reserved. DIVISION 5. - DISCHARGE PROHIBITIONS AND LIMITATIONS Sec. 98-316. - Prohibited discharges. Page 24 Under this article, a user shall not introduce into a POTW any pollutant that may cause pass through or interference. The general prohibitions and the specific prohibitions in section 98-317 apply to each user introducing pollutants into a POTW whether or not the user is subject to other national pretreatment standards or any national, state or local pretreatment requirements. (Code 1967, §§ 34-12, 34-53(a); Ord. No. 1765, § 1, 3-13-75; Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-317. - Specific prohibitions. In addition to the general prohibited discharges specified in section 98-316, the following pollutants shall not be introduced into a POTW: (1) Pollutants which create a fire or explosion hazard in the POTW, including, but not limited to, wastestreams with a closed cup flashpoint of less than 140 degrees Fahrenheit or 60 degrees Celsius using the test methods specified in 40 CFR 261.21; (2) Pollutants which will cause corrosive structural damage to the POTW, but in no case discharges pH lower than 5.0, unless the works are specifically designed to accommodate such discharges; (3) Solid or viscous pollutants in amounts which may, in the opinion of the director, cause obstruction to the flow in the POTW resulting in interference; (4) Any pollutant, including oxygen demanding pollutants (BOD, etc.), released in a discharge at a flow rate and/or pollutant concentration which may, in the opinion of the director, cause interference with the POTW; (5) Liquid or vapor having a temperature higher than 150 degrees Fahrenheit (65 degrees Celsius) or any substance with heat in amounts which may, in the opinion of the director, inhibit biological activity in the POTW resulting in interference, but in no case heat in such quantities that the temperature at the POTW exceeds 40 degrees Celsius (104 degrees Fahrenheit) unless the administrator, upon request of the POTW, approves the alternate temperature limit; (6) Petroleum oil, or petroleum oil products, non biodegradable cutting oil or products of mineral oil origin in amounts that may, in the opinion of the director, cause interference or pass through; (7) Pollutants which result in the presence of toxic gases, vapors or fumes within the POTW in a quantity that may cause acute worker health and safety problems; (8) Any industrial or domestic waste or wastewater from any tank truck or vehicle into any sewer, manway, manhole, street or public sewage treatment plant within the city without written authorization from the director. (Code 1967, § 34-53(b); Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-318. - Federal categorical pretreatment. National pretreatment standards specifying quantities or concentrations of pollutants or pollutant properties which may be discharged to a POTW by existing or new industrial users in specific industrial subcategories will be established as separate regulations under the applicable subpart of 40 CFR chapter I, subchapter N. These standards, unless specifically noted otherwise, shall be in addition to all applicable pretreatment standards and requirements. (Code 1967, § 34-53(c)(1); Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-319. - Local limits. Page 25 (a) Pursuant to 40 CFR 403.8, each POTW shall develop and enforce specific limits to implement the prohibitions listed in subsections 98-320(a) and (c). The local limits in this section are based on the most restrictive uniform allocation method from all three of the city's POTWs. These local limits shall continue to be developed and reevaluated as necessary and the POTW will effectively enforce such limits. (b) Where specific prohibitions or limits on pollutants or pollutant parameters are developed by a POTW in accordance with this division, such limits shall be deemed pretreatment standards for the purposes of section 307(d) of the act. Such limits shall apply at the last discharge point from the industrial user prior to discharging into the city's sewer system. (Code 1967, § 34-53(c)(2); Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-320. - Specific pollutant limitations. (a) Maximum concentrations of heavy metals. Under this article, the maximum allowable concentrations of heavy metals stated in terms of milligrams per liter (mg/1), determined on the basis of individual sampling in accordance with 40 CFR Part 136 are as follows: (b) (c) (1) Arsenic, 1.39 mg/I; (2) Barium, 56.80 mg/I; (3) Cadmium, 3.34 mg/I; (4) Chromium, 15.41 mg/1; (5) Copper, 2.49 mg/l (6) Cyanide, 0.11 mg/I; (7) Lead, 6.39 mg/I; (8) Mercury, 0.03 mg/I; (9) Nickel, 3.79 mg/l; (10) Silver, 0.48 mg/I; and (11) Zinc, 3.50 mg/I. Permit for other heavy metals or toxic pollutants. No other heavy metals or toxic pollutants may be discharged into public sewers without a permit from the city specifying conditions of pretreatment, concentrations, volumes and other applicable provisions. Prohibited heavy metals and toxic materials. Prohibited heavy metals and toxic materials include, but are not limited to, the following: (1) Antimony; (2) Beryllium; (3) Bismuth; (4) Cobalt; (5) Molybdenum; (6) Tin; (7) Uranyl ion; (8) Rhenium; (9) Strontium; Page 26 (10) Tellurium; (11) Herbicides; (12) Fungicides; and (13) Pesticides. (d) Prohibited discharges. No person may discharge to public sewers any waste which by itself or by interaction with other wastes may: (1) Injure or interfere with wastewater treatment processes or facilities; (2) Constitute a hazard to humans or animals; or (3) Create a hazard in receiving waters of the POTW effluent. (e) Chemical discharges. (1) No discharge to public sewers may contain: a. Chlorides in concentrations of such an amount as to cause pass through or interference with the sanitary sewer system; b. Gasoline, benzene, naphtha, fuel oil or other flammable or explosive liquid, solid or gas; c. Substances causing an excessive chemical oxygen demand; or d. Fluoride other than that contained in the public water supply. (2) No waste or wastewater discharged to public waters may contain: Strong acid, iron pickling wastes or concentrated plating solutions, whether neutralized or not; b. Fats, wax, grease or oils, whether emulsified or not, in excess of 100 mg/I or containing substances which may solidify or become viscous at temperatures between 32 and 150 degrees Fahrenheit (0 and 65 degrees Celsius); c. No waste, wastewater or other substance may be discharged into public sewers which has a pH lower than 5.0 or higher than 9.0 or any other corrosive property capable of causing damage or hazard to structures, equipment and personnel at the wastewater facilities. The limits set forth in this subsection may be altered in a permit properly issued pursuant to this article; d. All waste, wastewater or other substance containing phenols, hydrogen sulfide or other taste- and odor -producing substances shall conform to concentration limits established by the city. After treatment of the composite wastewater, concentration limits may not exceed the requirements established by state, federal or other agencies with jurisdiction over discharges to receiving waters. (f) Garbage. (1) No person may discharge garbage into public sewers unless it is shredded to a degree that all particles can be carried freely under the flow conditions normally prevailing in public sewers. Particles greater than one-half inch in any dimension are prohibited. (2) The city is entitled to review and approve the installation and operation of any garbage grinder equipped with a motor of three-fourths horsepower (0.76 hp metric) or greater. (g) Stormwater and other unpolluted drainage. No person shall discharge, or cause to be discharged, any stormwater, groundwater, roof runoff, subsurface drainage, downspouts, yard drains, yard fountains and ponds or lawn sprays into any sanitary sewer. Water from swimming pools, unpolluted industrial water, such as boiler drains, blowoff pipes or cooling water from various equipment, shall not be discharged into sanitary sewers without a permit issued through this article by the city. With a permit, it may be discharged into the sanitary sewer by an indirect connection whereby such Page 27 discharge is cooled, if required, and flows into the sanitary sewer at a rate not in excess of three gallons per minute; provided, that the waste does not contain materials or substances in suspension or solution in violation of the limits prescribed by this article. (h) Temperature. No person may discharge liquid or vapor having a temperature higher than 150 degrees Fahrenheit (65 degrees Celsius), or any substance that causes the temperature of the total wastewater treatment plant influent to increase at a rate of ten degrees Fahrenheit or more per hour, or a combined total increase of plant influent temperature to 110 degrees Fahrenheit. (i) Radioactive wastes. (1) No person may discharge radioactive wastes or isotopes into public sewers without the permission of the city. (2) The city may establish, in compliance with applicable state and federal regulations, regulations for discharge of radioactive wastes into public sewers. Q) Concentrations of dissolved solids. Materials that exert or cause concentrations of dissolved solids to be discharged in such concentrations as to cause pass through or interference with the sanitary sewer system. (k) Discoloration. A prohibited discharge includes materials with excessive discoloration, including, but not limited to, the following: (1) Dye wastes; and (2) Vegetable tanning solutions. (1) Excessive BOD, COD or chlorine. No person shall discharge BOD, COD or chlorine demand in excess of normal plant capacity. (m) Other prohibitions. No person may discharge into public sewers any substance that may: (1) Deposit grease or oil in the sewer lines in such a manner as to clog the sewers; (2) Overload skimming and grease handling equipment; (3) Pass to the receiving waters without being effectively treated by normal wastewater treatment processes due to the nonamenability of the substance to bacterial action; or (4) Deleteriously affect the treatment process due to excessive quantities. (n) Treatment amenability. No person may discharge any substance into public sewers that: (1) Is not amenable to treatment or reduction by the processes and facilities employed; or (2) Is amenable to treatment only to such a degree that the treatment plant effluent cannot meet the requirements of other agencies having jurisdiction over discharge to the receiving waters. (o) Solid or viscous substances. No person may discharge into public sewers solid or viscous substances which may violate section 98-316 if present in sufficient quantity or size, including, but not limited to: (1) Ashes; (2) Cinders; (3) Sand; (4) Mud; (5) Straw; (6) Shavings; (7) Metal; (8) Glass; Page 28 (9) Rags; (10) Feathers; (11) Tar; (12) Plastics; (13) Wood; (14) Unground garbage; (15) Whole blood; (16) Paunch manure; (17) Hair and fleshings; (18) Entrails; (19) Paper products; either whole or ground by garbage grinders; (20) Slops; (21) Chemical residues; (22) Paint residues; and (23) Bulk solids. (Code 1967, §§ 34-13-34-19, 34-53(d); Ord. No. 1765, § 1, 3-13-75; Ord. No. 6191, § 3, 3-26- 92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 7, 5-11-06) Sec. 98-321. - Pretreatment required. A person or owners discharging industrial wastes that exhibit any of the prohibited wastes set out in the specific pollutant limitations in this article shall pretreat or otherwise dispose of such industrial waste to make the remaining waste acceptable to the city water utilities. (Ord. No. 8118, § 1, 10-23-97) Sec. 98-322. - Excessive BOD and TSS. A person or owner discharging industrial wastes that exhibit none of the characteristics of wastes whose discharge is prohibited by this article or other applicable local, state or federal regulation, other than TSS and BOD in excess of normal domestic wastewater, as defined in this article, shall be required to pretreat the industrial wastes to meet the required levels of normal domestic wastewater or entered into a user charge agreement as provided in division 4 of this article. Such nonprohibited wastes may be accepted for treatment if: (1) The waste will not cause damage to the public sewers or be in violation of this article as prohibited discharges; (2) The waste will not impair the treatment process; and (3) The donor of the waste enters into a contractual and permit agreement as set forth in this article. (Ord. No. 8118, § 1, 10-23-97) Sec. 98-323. - City's right of revision. Page 29 The city reserves the right to establish by ordinance more stringent limitations or requirements on discharge to the wastewater disposal system if deemed necessary to comply with the objectives presented in this article or to secure any other objectives within the police powers of the city. (Code 1967, § 34-53(e); Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-324. - Dilution prohibited. Except where authorized to do so by an applicable pretreatment standard or requirement, no industrial user shall ever increase the use of process water, or in any other way attempt to dilute a discharge as a partial or complete substitute for adequate treatment to achieve compliance with a pretreatment standard or requirement. The director may impose mass limitations on industrial users which are using dilution to meet applicable pretreatment standards or requirements, or in other cases where the imposition of mass limitations is appropriate. (Code 1967, § 34-53(f); Ord. No. 6191, § 3, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-325-98-350. - Reserved. DIVISION 6. - REPORTING AND SAMPLING Sec. 98-351. - Baseline monitoring reports. Within 180 days after the effective date of a categorical pretreatment standard, existing industrial users subject to such categorical pretreatment standards and currently discharging to or scheduled to discharge to the city POTW shall be required to submit to the director a report which contains the information listed in the following sections. Where reports containing this information already have been submitted to the director of EPA, region 6, in compliance with the requirement of 40 CFR 128.140(b) (1977), the industrial user will not be required to submit this information again. At least 90 days prior to commencement of discharge, new sources and sources that become industrial users subsequent to the promulgation of an applicable categorical standard, shall be required to submit to the director a report which contains the information listed in subsections (1) through (5) of this section. New sources shall also be required to include in this report information on the method of pretreatment the source intends to use to meet applicable pretreatment standards. New sources shall give estimates of the information requested in subsections (4) and (5) of this section. The information required is as follows: (1) Identifying information. The user shall submit the name and address of the facility including the name of the operator and owner; (2) Permits. The user shall submit a list of any environmental control permits held by or for the facility; (3) Description of operations. The user shall submit a brief description of the nature, average rate of production and standard industrial classification of the operation carried out by such industrial user. This description should include a schematic process diagram which indicates points of discharge to the POTW from the regulated processes; (4) Flow measurement. The user shall submit information showing the measured average daily and maximum daily flow, in gallons per day, to the POTW from each of the following: Regulated process streams; and Other streams as necessary to allow use of the combined wastestream formula of 40 CFR 403.6(e). Page 30 The director may allow for verified estimates of these flows where justified by cost or feasibility considerations. Such estimates shall be verified by a certified professional engineer; (5) Measurement of pollutants: The user shall identify the pretreatment standards applicable to each regulated process; In addition, the user shall submit the results of sampling and analysis, identifying the nature and concentration or mass, where required by standard or director, of regulated pollutants in the discharge from each regulated process. Both daily maximum and average concentration or mass, where required, shall be reported. The sample shall be representative of daily operations; c. Grab samples must be used for pH, cyanide, total phenols, oil and grease, sulfide and volatile organics. For all other pollutants, 24-hour composite samples must be obtained through flow -proportional composite sampling techniques where feasible. The director may waive flow -proportional composite sampling for any industrial user that demonstrates that flow -proportional sampling is not feasible due to the nature of the operation. In such cases, samples may be obtained through time -proportional composite sampling techniques or through a minimum of four grab samples where the user demonstrates to a reasonable certainty that this will provide a representative sample of the effluent being discharged; d. The user shall take a minimum of one representative sample to compile that data necessary to comply with the requirements of this subsection; e. Samples should be taken immediately downstream from pretreatment facilities if such exist or immediately downstream from the regulated process if no pretreatment exists. If other wastewaters are mixed with the regulated wastewater prior to pretreatment, the user should measure the flows and concentrations necessary to allow use of the combined wastestream formula of 40 CFR 403.6(e) in order to evaluate compliance with the pretreatment standards. Where an alternate concentration or mass limit has been calculated in accordance with 40 CFR 403.6(e), this adjusted limit along with supporting data shall be submitted to the director; F. Sampling and analysis shall be performed in accordance with the techniques prescribed in 40 CFR 136 and amendments thereto. Where 40 CFR 136 does not contain sampling or analytical techniques for the pollutant in question, or where the administrator determines that the 40 CFR 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analysis shall be performed by using methodology approved by the administrator; g. The director may allow the submission of a baseline report which utilizes only historical data so long as the data provides information sufficient to determine the need for industrial pretreatment measures; h. The baseline report shall indicate the time, date and place of sampling, and methods of analysis, and shall certify that such sampling and analysis is representative of normal work cycles and expected pollutant discharges to the POTW; (6) Certification. A statement shall be submitted and reviewed by an authorized representative of the industrial user, as defined in this article, and certified by a qualified professional, indicating whether pretreatment standards are being met on a consistent basis, and, if not, whether additional O&M or additional pretreatment is required for the industrial user to meet the pretreatment standards and requirements; and (7) Sampling and analysis. All sampling and analysis required by this division shall be performed by an independent laboratory that has been approved by the director. All costs of such sampling and analysis shall be borne by the user. (Code 1967, § 34-59(a); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Page 31 Sec. 98-352. - Authority to establish compliance schedules. If additional pretreatment or O&M will be required to meet the pretreatment standards, the shortest schedule by which the industrial user will provide such additional pretreatment or O&M is required. The completion date in this schedule shall not be later than the compliance date established for the applicable pretreatment standard. The following conditions shall apply to the schedule required by this section: (1) The schedule shall contain increments of progress in the form of dates for the commencement and completion of major events leading to the construction and operation of additional pretreatment required for the industrial user to meet applicable categorical pretreatment standards, including, but not limited to, hiring an engineer, completing preliminary plans, completing final plans, executing contract for major components, commencing construction, completing construction, etc. No increment referred to in this subsection shall exceed nine months; and (2) Not later than 14 days following each date in the schedule and the final date for compliance, the industrial user shall submit a progress report to the director including, at a minimum, whether or not it complied with the increment of progress to be met on such date and, if not, the date on which it expects to comply with this increment of progress, the reason for delay and the steps being taken by the industrial user to return the construction to the schedule established. In no event shall more than nine months elapse between such progress reports to the director. (Code 1967, § 34-59(b); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-353. - Report on compliance with categorical pretreatment standard deadline. Within 90 days following the date for final compliance with applicable categorical pretreatment standards or for a new source following commencement of the introduction of wastewater into the POTW, any industrial user subject to pretreatment standards and requirements shall submit to the director a report containing the information described in subsections 98-351(1) through (6). For industrial users subject to equivalent mass or concentration limits established by the director in accordance with the procedures in 40 CFR 403.6(c), this report shall contain a measure of the user's long-term production rate based on a production period of at least 30 days. For all other industrial users subject to categorical pretreatment standards expressed in terms of allowable pollutant discharge per unit of production or other measure of operation, this report shall include the user's actual production during the appropriate sampling period. (Code 1967, § 34-59(c); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-354. - Categorical industrial user periodic compliance reports. Any industrial user subject to a categorical pretreatment standard, after the compliance date of such pretreatment standard, or, for a new source, after commencement of the discharge into the POTW, shall submit to the director during the months of June and December, unless required more frequently in the pretreatment standard or by the director or the administrator, a report indicating the nature and concentration of pollutants in the effluent which are limited by such categorical pretreatment standards. In addition, this report shall include a record of measured or estimated average and maximum daily flows for the reporting period for the discharge reported in section 98-351(4), except that the director may require more detailed reporting of flows. At the discretion of the director and in consideration of such factors as local high or low flow rates, holidays, budget cycles, etc., the director may agree to alter the months during which the above reports are to be submitted. (Code 1967, § 34-59(d); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Page 32 Sec. 98-355. - Noncategorical significant industrial user compliance reports. (a) The director shall require appropriate reporting from those industrial users with discharges that are not subject to categorical pretreatment standards. Noncategorical significant industrial users shall submit to the director at least once every six months on dates specified by the director a description of the nature, concentration and flow of the pollutants required to be reported by the director. These reports shall be based on sampling and analysis performed in the period covered by the report, and performed in accordance with the techniques described in 40 CFR 136 and amendments thereto. (b) This sampling and analysis may be performed by the director in lieu of the significant industrial user. Where the POTW itself collects all the information required for the report, the noncategorical significant industrial user will not be required to submit this report. (Code 1967, § 34-59(e); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-356. - Report due dates and requirements for sampling to be performed during reporting period. (a) The reports required in sections 98-353 through 98-355 shall contain the results of sampling and analysis of the discharge, including the flow and the nature and concentration, or production and mass, where requested by the director, of pollutants contained therein which are limited by the applicable pretreatment standards. (b) The reports required in sections 98-353 through 98-355 shall be based upon data obtained through appropriate sampling and analysis performed during the period covered by the report, which data is representative of conditions occurring during the reporting period. The director shall require that frequency of monitoring necessary to assess and ensure compliance by industrial users with applicable pretreatment standards and requirements. (Code 1967, § 34-59(fl; Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-357. - Inspection and sampling of industrial users by POTW at least once per year. (a) Under this article, the POTW shall: (1) Randomly sample and analyze the effluent from industrial users and conduct surveillance activities in order to identify, independent of information supplied by industrial users, occasional and continuing noncompliance with pretreatment standards; (2) Inspect and sample the effluent from each significant industrial user at least once a year. Such inspection and sampling and analysis thereof shall be performed on behalf of the POTW by an independent laboratory at the request of the director. All costs of such inspection, sampling and analysis shall be borne by the user; and (3) Evaluate, at least once every two years, whether each such significant industrial user needs a plan to control slug discharges. For purposes of this subsection, a slug discharge is any discharge of a nonroutine, episodic nature, including, but not limited to, an accidental spill or a noncustomary batch discharge. (b) The results of such activities shall be available to the administrator upon request. (Code 1967, § 34-59(g); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-358. - Self-monitoring requirements for significant industrial users. Page 33 The reports required in section 98-355 shall contain the results of sampling and analysis of the discharge, including the flow and the nature and concentration or production and mass where requested by the director of pollutants contained therein that are limited by the applicable pretreatment standards. (Code 1967, § 34-59(h); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-359. - Certification statements. Under this article, all reports and/or permit applications submitted by categorical and/or significant industrial users to the city must include the certification as stated in subsection 98-2510). (Code 1967, § 34-59(i); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 8, 5-11-06) Sec. 98-360. - Notification of changed discharge. Every industrial user shall promptly notify the POTW in advance of any substantial change in the volume or character of pollutants in his discharge, including the listed or characteristic hazardous wastes for which the industrial user has submitted initial notification under 40 CFR 403.12(p). (Code 1967, § 34-596); Ord. No. 6191, § 9,3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-361. - Notice of potential problems, including slug loading. Every categorical and noncategorical industrial user shall notify the POTW immediately of all discharges that could cause any difficulties in meeting the objectives of this article, including any slug loadings, as defined in Section 98-126 of this Code and 40 CFR § 403.5(b), by the industrial user. (Code 1967, § 34-59(k); Ord. No. 6191, § 9,3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 9, 5-11-06) Sec. 98-362. - Reports required for nonsignificant/minor users. (a) Effect of permit endorsement. Under this article, a permit endorsement is issued to an industrial user that certifies no industrial wastewater is discharged to the city's sanitary sewer. The permit is issued based on that certification. (b) Noncategorical industrial users. All industrial users not identified as categorical industrial users under 40 CFR 403.6 and 40 CFR chapter I, subsection N must maintain a written log of all waste material that goes to an offsite disposal facility. The log shall be available for inspection by the industrial wastewater service for a minimum of three years after the waste material has left the user's facility. If any process changes, including discharging wastewater from any new or existing process to the sanitary sewer, application must be made at least 30 days prior to the proposed change. (c) Categorical industrial users. (1) All industrial users subject to federal categorical pretreatment regulations are required to submit semiannual compliance reports. During the months of June and December, it is required that a report be submitted to the director with a certification that no regulated wastestreams were discharged to the sanitary sewer during the preceding six-month reporting period. (2) If any person plans to begin discharging industrial waste from any regulated process operation to the city's sanitary sewer system, it is a requirement of 40 CFR 403.12(b) that existing sources that become indirect dischargers after the promulgation of an applicable categorical Page 34 pretreatment standard must submit a baseline monitoring report to the director at least 90 days prior to the commencement of discharges to the POTW. The report must provide information on the method of pretreatment the user proposes to meet applicable standards. For new sources, the industrial user may provide estimates of the production, flow and the quality and presence of regulated pollutants in its wastestream. (3) All industrial users subject to federal categorical pretreatment regulations must maintain a written log of all waste material that goes to an off-site disposal facility. The log shall be available for inspection by the industrial wastewater service for a minimum of three years after the waste material has left the user's facility. (Code 1967, § 34-59(1); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-363. - Notification of violation. (a) If sampling performed by an industrial user indicates a violation of the applicable pretreatment standards, the user shall notify the director within 24 hours of becoming aware of the violation. The user shall also repeat the sampling and analysis and submit the results of the repeat analysis to the director within 30 days after becoming aware of the violation, except the industrial user is not required to resample if the director performs sampling of the industrial user: (1) At a frequency of at least once per month; or (2) Between the time when the user performs its initial sampling and the time when the user receives the results of this sampling. (b) Any repeat sampling and analysis required by this section shall be performed by an independent laboratory acceptable to the director. All costs of such repeat sampling and analysis shall be borne by the user. (Code 1967, § 34-59(m); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-364. - Analytical requirements. Under this division, sampling and analysis shall be performed in accordance with the techniques prescribed in 40 CFR 136 and amendments thereto. Where 40 CFR 136 does not contain sampling or analytical techniques for the pollutant in question, or where the administrator determines that the 40 CFR 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analysis shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures, including procedures suggested by the POTW or other parties, approved by the administrator. (Code 1967, § 34-59(n); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-365. - Method of sample collection. (a) Sampling of the effluent of waste discharges may be accomplished manually or by use of mechanical equipment to obtain a composite sample which would be representative of the total effluent. Samples shall be taken at six-month intervals to establish the BOD and suspended solids of the industrial waste or at such intervals as determined by the director as necessary to maintain a control over the discharges from the permittee. The method used in the examination of all industrial wastes to determine BOD, TSS, chlorine demand and prohibited wastes shall be as set forth in 40 CFR 136. (b) Subsection (a) of this section is not applicable in connection with the following: Page 35 (1) A permit application; (2) A demonstration of compliance after violations of any discharge standard; or (3) Permit requirements of a permittee which specify sampling frequency. Tests made on representative samples collected by the director shall be made at such intervals as the director may designate, so long as samples are taken not less than on an annual basis. (c) Samples may be taken and tests made at the director's option without notice to the permittee, and such test results made by the director shall fix the applicable user charge established in this article. However, with regard to establishment of user charges, a permittee may request in writing for permission to conduct self-monitoring by an independent laboratory approved by the director. Such request must be approved in writing by the director. If approved by the director, all costs of such composite sampling and analyses shall be borne by the permittee. The director's approval of sampling analyses performed by an independent laboratory does not prevent representatives of the department from taking additional samples at its option without notice to the permittee. The director may use the self-monitoring results in determining the user charge. (d) Written notice from the director approving sampling and analyses by an independent laboratory to establish user charges under this article may be canceled by the director by giving written notice of such cancellation to the permittee. (e) Sampling shall be conducted according to methods acceptable to the director. If, after receiving the permit application, the director determines the operations or characteristics of the producer's industrial waste discharge require composite sampling, the director may require same, which shall be provided by the producer on the basis of an average workday. Otherwise, the analysis will be made on the basis of grab samples. The discharge parameter values for which reports are required must be determined by one of the standard analytical test procedures incorporated by reference, and described in, 40 CFR 136.3, tables IA, IB, IC, ID and IE, or by an alternate test procedure that has been approved by the director under the provisions of 40 CFR 136.4 and 136.5. Under certain circumstances, 40 CFR 136.3(b) or (c), or 40 CFR 401.13, other test procedures may be used that may be more advantageous when such other test procedures have been previously approved by the administrator, and providing the director does not object to the use of such alternate test procedure. (f) Under certain circumstances, the administrator may approve, upon recommendation by the director of the Environmental Monitoring and Support Laboratory, Cincinnati, Ohio, additional/alternate test procedures for nationwide use. (g) Sample preservation procedures, container materials and maximum allowable holding times for parameters cited in tables IA, IB, IC, ID and IE of 40 CFR 136.3 are prescribed in table II, 40 CFR 136.3. Any person may apply for a variance from the prescribed preservation techniques, container materials and maximum holding times applicable to samples taken from a specific discharge. Application for variances must be made in writing to the administrator. Sufficient data should be provided to assure such variance does not adversely affect the integrity of the sample. Such data will be forwarded by the regional administrator to the director of the Environmental Monitoring and Support Laboratory in Cincinnati, Ohio, for technical review and recommendations for action on the variance application. Upon receipt of the recommendations from the director of the Environmental Monitoring and Support Laboratory, the administrator may approve a variance applicable to the specific discharge by the applicant. A decision to approve or deny approval of a variance will be made within 90 days of receipt of the application by the administrator. Upon approval by the administrator, the applicant may then present the request for the variance to the city council. (Code 1967, § 34-59(o); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-366. - Recordkeeping. Page 36 (a) Any industrial user and POTW subject to the reporting requirements established in this article shall maintain records of all information resulting from any monitoring activities required by this division. Such records shall include the following for all samples: (1) The date, exact place, method and time of sampling and the name of the person taking the sample; (2) The dates that the analyses were performed; (3) Who performed the analyses; (4) The analytical techniques/methods used; and (5) The results of such analyses. (b) Any industrial user or POTW subject to the reporting requirements established in this division shall be required to retain for a minimum of three years any records of monitoring activities and results, whether or not such monitoring activities are required by this division, and shall make such records available for inspection and copying by the director and the administrator and POTW for an industrial user. This period of retention shall be extended during the course of any unresolved litigation regarding the industrial user or POTW or when requested by the director or the administrator. (Code 1967, § 34-59(p); Ord. No. 6191, § 9, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-367. - Fraud and false statements. The reports and other documents required to be submitted or maintained under the division shall be subject to: (1) The provisions of 18 USC chapter 1001 relating to fraud and false statements; (2) 40 CFR 309(c)(4) of the act, as amended, governing false statements, representation or certification; and (3) 40 CFR 309(c)(6) regarding responsible corporate officers. (Code 1967, § 34-59(q); Ord. No. 6191, § 9,3-26-92; Ord. No. 8118, § 1, 10-23-97) Secs. 98-368-98-395. - Reserved. DIVISION 7. - COMPLIANCE MONITORING Sec. 98-396. - Inspection and sampling. The POTW shall carry out all inspection, surveillance and monitoring procedures necessary to determine, independent of information supplied by industrial users, compliance or noncompliance with applicable pretreatment standards and requirements by industrial users. Representatives of the POTW shall be authorized to enter any premises of any industrial user in which a discharge source or treatment system is located or in which records are required to be kept under 40 CFR 403.12(m) to assure compliance with pretreatment standards. Such authority shall be at least as extensive as the authority provided under section 308 of the act. (Code 1967, § 34-60(a); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-397. - Right of entry. Page 37 A person or occupant of premises where wastewater is created or discharged shall allow the city or its representative ready access at all reasonable times to all parts of the premises for the purposes of inspection, sampling, records examination or in the performance of any of his duties. (Code 1967, § 34-60(b); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-398. - Inspection for compliance. Under this article, the director, state and EPA shall have the right to set up on the user's property such devices as are necessary to conduct sampling, inspection, compliance monitoring and metering operations. Where a user has security measures in force which would require proper identification and clearance before entry into their premises, the user shall make necessary arrangements with their security guards so that, upon presentation of suitable identification, personnel from the city, state and EPA will be permitted to enter, without unnecessary delay, for the purposes of performing their specific responsibilities. (Code 1967, § 34-60(c); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-399. - Independent samples. The director may select an independent firm or laboratory to determine flow and any necessary parameter limit testing required under this article. All costs of such sampling and analysis shall be borne by the user. (Code 1967, § 34-60(d); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-400. - Installation of monitoring equipment. (a) Under this article, the director may require to be provided and operated, at the user's own expense, monitoring facilities to allow inspection, sampling and flow measurement of the building sewer and internal drainage systems. The monitoring facility should normally be situated on the user's premises, but the director may, when such a location would be impractical or cause undue hardship on the user, allow the facility to be constructed in the public street or sidewalk area and located so that it will not be obstructed by landscaping or parked vehicles. (b) There shall be ample room in or near such sampling manhole or facility to allow accurate sampling and preparation of samples for analysis. The facility, sampling and measuring equipment shall be maintained at all times in a safe and proper operating condition at the expense of the user. (c) Whether constructed on public or private property, the sampling and monitoring facilities shall be provided in accordance with the city's requirements and all applicable local construction standards and specifications. Plans for construction of the control manholes or inspection chambers, including such flow -measuring devices as may be required, shall be included with the industrial wastewater discharge application. (Code 1967, § 34-60(e); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-401. - Inspection and copying of records. Any industrial user or POTW subject to the reporting requirements established in 40 CFR 403 shall be required to retain for a minimum of three years any records of discharge monitoring activities and results, whether or not such monitoring activities are required by this article, and shall make such records available for inspection and copying by the director and the administrator and POTW, for an industrial Page 38 user. This period of retention shall be extended during the course of any unresolved litigation regarding the industrial user or POTW or when requested by the director or the administrator. (Code 1967, § 34-60(i); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-402. - Search warrants. (a) If the director has been refused access to a building, structure, or property, or any part thereof, and is able to demonstrate probable cause to believe that there may be a violation of this division, or that there is a need to inspect and/or sample as part of a routine inspection and sampling program of the city designed to verify compliance with this division or any permit or order issued hereunder, or to protect the overall public health, safety and welfare of the community, then director may seek issuance of a search warrant from a magistrate. (b) A search warrant may not be issued under this article except upon the presentation of evidence of probable cause to believe that a fire or health hazard or violation or unsafe building condition is present in the premises sought to be inspected. (c) In determining probable cause, the magistrate is not limited to evidence of specific knowledge, but may consider any of the following: (1) The age and general condition of the premises; (2) Previous violations or hazards found present in the premises; (3) The type of premises; (4) The purposes for which the premises is used; and (5) The presence of hazards or violations in and the general condition of premises near the premises sought to be inspected. (d) The city may designate one code enforcement official for the purpose of being issued a search warrant as authorized by subsection (a) of this section. (Code 1967, § 34-60(g); Ord. No. 6191, § 10, 3-26-92; Ord. No. 8118, § 1, 10-23-97; Ord. No. 10,322, § 10, 5-11-06) Secs. 98-403-98-430. - Reserved. DIVISION 8. -ACCIDENTAL DISCHARGES Sec. 98-431. - Pretreatment facilities. Every industrial user shall provide necessary wastewater treatment as required to comply with this article and shall achieve compliance with all categorical pretreatment standards, local limits and the prohibitions set out in this article, within the time limitations specified by the EPA, the state or the director, whichever is more stringent. Any facilities required to pretreat wastewater to a level acceptable to the director shall be provided, operated and maintained at the industrial user's expense. Detailed plans showing the pretreatment facilities and operating procedures shall be submitted to the director for review, and shall be acceptable to the director before construction of the facility. The review of such plans and operating procedures will in no way relieve the industrial user from the responsibility of modifying the facility as necessary to produce an acceptable discharge to the city under this article. (Code 1967, § 34-54(a); Ord. No. 6191, § 4, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Page 39 Sec. 98-432. - Policy. Each user under this article shall provide protection from accidental discharge of prohibited materials or other substances regulated by this article. Facilities to prevent accidental discharge of prohibited materials shall be provided and maintained at the owner's or user's own cost and expense. Detailed plans showing facilities and operating procedures to provide this protection shall be submitted to the director for review, and shall be approved by the director before construction of the facility. All existing users shall complete such plans within 180 days from the effective date of the ordinance from which this article derives. No user who commences contribution to the POTW after the effective date of the ordinance from which article derives shall be permitted to introduce pollutants into the system until accidental discharge procedures have been approved by the director. Review and approval of such plans and operating procedures shall not relieve the industrial user from the responsibility to modify the user's facility as necessary to meet the requirements of this article. In the case of an accidental discharge, it is the responsibility of the user to immediately telephone and notify the POTW of the incident. The notification shall include location of discharge, type of waste, concentration and volume, and corrective actions. (Code 1967, § 34-54(b); Ord. No. 6191, § 4,3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-433. - Written notice. Within five days following an accidental discharge as provided in this division, the user shall submit to the director a detailed written report describing the cause of the discharge and the measures to be taken by the user to prevent similar future occurrences. Such notification shall not relieve the user of any expense, loss, damage or other liability which may be incurred as a result of damage to the POTW, fish kills or any other damage to person or property; nor shall such notification relieve the user of any fines, civil penalties or other liability which may be imposed by this article or other applicable law. (Code 1967, § 34-54(c); Ord. No. 6191, § 4,3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-434. - Notice to employees. Under this division, the employer shall ensure that all appropriate employees be advised of notification procedures to be used in the event of an accidental discharge. (Code 1967, § 34-54(d); Ord. No. 6191, § 4, 3-26-92; Ord. No. 8118, § 1, 10-23-97) Sec. 98-435. - Slug control plan. The city shall evaluate, at least once every two years, whether each such significant industrial user needs a plan to control slug discharges. For purposes of this subsection, a slug discharge is any discharge of a nonroutine, episodic nature, including but not limited to an accidental spill or a noncustomary batch discharge. The results of such activities shall be available to the approval authority upon request. Alternatively, the director may develop such a plan for any industrial user. If the director decides that a slug control plan is needed, the plan shall contain, at a minimum, the following elements: (1) A description of discharge practices, including nonroutine batch discharges; (2) A description of stored chemicals; (3) Procedures for immediately notifying the director of a slug discharge as required by section 98- 433; and (4) Procedures to prevent adverse impact from any spills, including but not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site runoff, worker training, building of containment structures or Page 40 equipment, measures for containing toxic organic pollutants (including solvents), and/or measures and equipment for emergency response. (Ord. No. 10,322, § 11, 5-11-06) Secs. 98-436-98-469. - Reserved. Page 41 Exhibit "B" AV Windrose Lantr3drvlCes; me 3200 Mlcres4 SuKe 325 Houston, Texas 77042 (N3) 40-2W1 Far (713) 46f -f151 Professional Development Consultants 1- Land Surveying, Platting, Project Management and GIS Services CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 G. L. SHORT SURVEY 723.06 ACRES ABSTRACT NO. 228 R. A. PORTER SURVEY ABSTRACT NO. 205 A METES & BOUNDS DESCRIPTION OF CERTAIN 723.06 ACRE TRACT, SITUATED IN THE G.L. SHORT SURVBY, ABSTRACT NO. 228, THE R- A. PORTER SURVEY, ABSTRACT NO. 205 IN CHAMBERS COUNTY TE (AS; BEING ALL OF A CALLED 1.9725 ACRE TRACT (TRACT 1), ALL OF A CALLED 17.5648 ACRE TRACT (TRACT 2), ALL OF A CALLED 665.8778 ACRE TRACT (TRACT 3), AND ALL OF A CALLED 37.6437 ACRE TRACT (TRACT 4) DESCRIBED IN DEED OF TRUST RECORDED IN VOLUME (08) 1053, PAGE 719 OF THE CHAMBERS COUNTY OFFICIAL PUBLIC RECORDS; SUBJECT 723.06 ACRES BEING A COMPILATION OF EXISTING DOCUMENTS AND RIGHT-OF-WAY MAPS, PREPARED UNDER 22 TAC 663.21 FOR A POLITICAL SUBDIVISION, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS. WITH ALL BEARINGS BEING BASED ON THE TEXAS COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD83; TRACT 1-1.97 ACRES BEGE4NING AT THE NORTHEAST CORNER OF SAID CALLED 1.9725 ACRE TRACT, BEING IN THE NORTH RIGHT-OF-WAY LINE OF FARM TO MARKET ROAD NO. 565 (OLD ALIGNMENT), AS RECORDED IN VOLUME 120, PAGE 475 OF THE CHAMBERS COUNTY DEED RECORDS; THENCE, ALONG THE SOUTHEAST LINE OF THE SAID 1.9725 ACRE TRACT, COMMON WITH THE NORTHWEST RIGHT-OF-WAY LINE OF SAID FARM TO MARKET ROAD NO. 565 (OLD ALIGNMENT), ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 612.% FEET, A CENTRAL ANGLE OF 80°06'00", AN ARC LENGTH OF 856.92 FEET, AND A LONG CHORD BEARING SOUTH 3M249'- WEST, 8°3249"WEST, 788.83 FEET, TO A POINT FOR CORNER. THENCE, SOUTH 01-30-1(r EAST, CONTINUING ALONG SAID COMMON LINE, 51.93 FEET TO A POINT FOR CORNER MARKING THE SOUTHERN CORNER OF THE SAID 1.9725 ACRE TRACT, BEING IN THE EAST LINE OF A CALLED 63.623 ACRE TRACT AS RECORDED IN VOLUME (07) 995, PAGE 26 OF THE CHAMBERS COUNTY OFFICIAL PUBLIC RECORDS; THENCE, NORTH 13°22'45" WEST, ALONG THE WEST LINE OF THE SAID 1.9725 ACRE TRACT, 'COMMON WITH THE EAST LINE OF THE SAID 63.623 ACRE TRACT, 559.38 FEET TO THE NORTHWEST CORNER OF THE SAID 1.9725 ACRE TRACT, COMMON WITH A SOUTHWEST CORNER OF A CALLED 92.8172 ACRE TRACT AS RECORDED IN VOLUME (07) 943, PAGE 142 OF THE CHAMBERS COUNTY OFFICIAL PUBLIC RECORDS; THENCE, NORTH 78°3732" EAST, ALONG THE NORTH LINE OF SAID 1.9725 ACRE TRACT, COMMON WITH A SOUTH LINE OF SAID 92.8172 ACRE TRACT, 632.05 FEET TO THE POINT OF BEGINNING, CONTAINING 1.97 ACRES OF LAND IN CHAMBERS COUNTY, TEXAS. .v Windrose Land Services, Inc 32W W1CM# Suite 325 Housbn, Texas 77042 Phone (713) 458-2M Fex (713) 4614151 Professional Development Consultants X Land Surveying, Platting, ProJect Management and GIS Services CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 G. L. SHORT SURVEY 723.06 ACRES ABSTRACT NO. 228 R. A. PORTER SURVEY ABSTRACT NO. 205 TRACT II 1756 ACRES BEGINNING AT THE NORTHEAST CORNER OF THE AFOREM1ENTIONED 17.5648 ACRE TRACT, BEING IN THE SOUTH RIGHT-OF-WAY LINE OF THE AFOREMENTIONED FARM TO MARKET ROAD NO. 565 (OLD ALIGNMENT); THENCE, SOUTH 17"51-17" EAST, 48.43 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO -THE LEFT IN THE NORTH RIGHT-OF-WAY LINE TO FARM TO MARKET ROAD NO 565 (NEW RIGHT- OF-WAY IGHTOF-WAY LOCATION) AS DESCRIBED IN VOLUME (90) 104, PAGE 441 OF THE CHAMBERS COUNTY OFFICIAL PUBLIC RECORDS; THENCE, ALONG THE SOUTH LINE OF THE AFOREMENTIONED 175648 ACRE TRACT, COMMON WTTH THE NORTH RIGHT-OF-WAY LINE OF SAID FARM TO MARKET ROAD NO. 565 (NEW RIGHT- OF-WAY IGHTOF WAY LOCATION) THE FOLLOWING THREE (3) COURSES AND DISTANCES: 1. ALONG THE ARC OF SAID NON -TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 1,969.86 FEET, A CENTRAL ANGLE OF 14°1039", AN ARC TO LENGTH OF 487.43 FEET, AND A LONG CHORD BEARING SOUTH 50041'22" WEST, 486.19 FEET TO A POINT FOR CORNER; 2. SOUTH 43°36'03" WEST, 894.38 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; 3. ALONG THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 1,849.86 FEET, A CENTRAL ANGLE OF 15°38-15", AN ARC LENGTH OF 504.88 FEET, AND CHORD BEARING SOUTH 51-2Y 10" WEST, 50331 FEET TO A POINT FOR CORNER; THENCE, NORTH 13°25'03" WEST, 198.68 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO 'THE LEFT; THENCE, ALONG THE ARC OF SAID CURVE TO THE LEFT HAVING A RADIUS OF 612.96 FEET, A CENTRAL: ANGLE OF 10010'16", AN ARC LENGTH OF 108.81 FEET, AND A LONG CHORD BEARING NORTH 03°34'57" EAST, 108.67 FEET TO A POINT FOR CORNER; THENCE, NORTH 01-30-1 V WEST, 278.30 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE, ALONG THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 532.96 FEET, A .CENTRAL ANGLE OF 80006'00", AN ARC LENGTH OF 745.08 FEET, AND A LONG CHORD BEARING NORTH 38°32-49" EAST, 685.87 FEET TO A POINT FOR CORNER; THENCE, NORTH 78037132" EAST, 1,010.63 FEET TO THE POINT OF BEGINNING, CONTAINING 1756 ACRES OF LAND IN CHAMBERS COUNTY, TEXAS. _2. w Windrose Land Services, Inc o 3200 W11C164 Suite 325 HOU042 Phone (713) 458-2281 Faux (7 3) 48Texas.161 Professional Development Consultants �- Land Survey/ng, Platting, Project Management and GIS Services CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 G. L. SHORT SURVEY 723.06 ACRES ABSTRACT NO. 228 R. A. PORTER SURVEY ABSTRACT NO. 205 TRACT III 665.89 ACRES BEGINNING AT THE NORTHEAST CORNER OF THE SAID 665.8778 ACRE TRACT, BEING IN THE SOUTH -RIGHT-OF-WAY LINE OF THE AFORE111ENT[ONED FARM TO MARKET ROAD NO. 565 NEW RIGHT-OF-WAY LOCATION); THENCE, SOUTH 0203131" EAST, 2,829.73 FEET TO A POINT FOR CORNER; THENCE, NORTH 87°11'15° EAST, 2,511.97 FEET TO A POINT FOR CORNER; -THENCE, SOUTH 02°4821" EAST, 1,273.32 FEET TO A POINT FOR CORNER; THENCE, SOUTH 32'4113" WEST, 1,392.41 FEET TO A POINT FOR CORNER; THENCE, SOUTH 31 °38'03" WEST, 3,151.63 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE, ALONG THE ARC OF SAID CURVE TO THE LEFT HAVING A RADIUS OF 580.00 FEET, A CENTRAL ANGLE OF 28°30'37", AN ARC LENGTH OF 288.61 FEET, AND A LONG CHORD BEARING SOUTH 17°22'44" WEST, 285.64 FEET TO A POINT FOR CORNER; THENCE, SOUTH 77°21-47" WEST, 641.07 FEET TO A POINT FOR CORNER; THENCE, NORTH 12°48'13" WEST, 3,758.41 FEET TO A POINT FOR CORNER; THENCE, SOUTH 77018'04" WEST, 2,710.16 FEET TO A POINT FOR CORNER; THENCE, NORTH 12° 1924" WEST, 3,101.79 FEET TO A POINT FOR CORNER; THENCE, NORTH 77009113" EAST, 554.10 FEET TO THE BEGINNING OF A CURVE TO THE LEFT; THENCE, ALONG THE ARC OF SAID CURVE TO THE LEFT HAVING A RADIUS OF 1,969.86 FEET, A CENTRAL ANGLE OF 08°25'45", AN ARC LENGTH OF 289.80 FEET, AND A LONG CHORD BEARING NORTH 72°5620" EAST, 289.54 FEET TO A POINT FOR CORNER; THENCE, NORTH 76°5521" EAST, 282.15 FEET TO A POINT FOR CORNER; THENCE NORTH 13025'02" WEST, 61.94 FEET TO THE BEGINNING OF A NON -TANGENT CURVE TO THE LEFT; TRICE, ALONG THE ARC OF SAID CURVE TO THE LEFT HAVING A RADIUS OF 1,969.86 FEET, A CENTRAL ANGLE OF 164327", AN ARC LENGTH OF 574.99 FEET, AND A LONG CHORD BEARING NORTH 51°5T46" EAST, 572.95 FEET TO A POINT FOR CORNER; THENCE, NORTH 43°36'03" EAST, 894.38 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; -3- AV Windrose Land Services, Inc 3200 VTR CM34 Suite 325 Houston, Taxes 77042 Phone (713) 458-2281 Far (713) 4614151 Professional Development Consultants Land Surveying, Platting, Project Management and GIS Services CHAMBERS COUNTY IIeROVEMENT DISTRICT NO.2 G. L. SHORT SURVEY 723.06 ACRES ABSTRACT NO. 229 R. A. PORTER SURVEY ABSTRACT NO. 205 THENCE, ALONG THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 1,849.86 FEET, A CENTRAL ANGLE OF 34°59'56, AN ARC LENGTH OF 1,129.98 FEET, AND A LONG CHORD BEARING NORTH 61°06'01" EAST, 1,112.49 FEET TO A POINT FOR CORNER; THENCE, NORTH 78°3716" EAST, 52222 FEET TO THE BEGINNING OF A CURVE TO THE RIGHT; THENCE, ALONG THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 5,669.58 FEET, A CENTRAL ANGLE OF 0100210", AN ARC LENGTH OF 102.52 FEET, AND A LONG CHORD BEARING NORTH 79°07'09" EAST, 102.52 FEET TO A POINT FOR CORNER; THENCE, NORTH 79°38'13" EAST, 840.20 FEET TO THE POINT OF BEGINNING, CONTAINING 665.89 ACRES OF LAND IN CHAMBERS COUNTY, TEXAS. -TRACT IV -37.64 ACRES BEGINNING AT THE NORTH CORNER OF THE AFOREMENTIONED CALLED 37.6437 ACRE TRACT, BEING IN THE SOU7WAST LINE OF THE COASTAL INDUSTRIAL WATER AUTHORITY CANAL (CALLED 1804EET WIDE) AS RECORDED IN VOLUME 308, PAGE 281 OF THE CHAMBERS COUNTY DEED RECORDS; THENCE, SOUTH 02°4871" EAST, ALONG THE EAST LINE OF THE SAID 37.6437 ACRE TRACT, COMMON WITH THE EAST LINE OF THE REMAINDER OF A CALLED 210.29 ACRE TRACT AS RECORDED IN VOLUME 172, PAGE 166 OF THE CHAMBERS COUNTY DEED RECORDS, 2,158.70 FEET TO A POINT FOR CORNER MARKING THE SOUTHEAST CORNER OF THE SAID 37.6437 ACRE TRACT, COMMON WITH THE NORTHEAST CORNER OF A CALLED 59.974 ACRE TRACT RECORDED IN VOLUME 165, PAGE 456, OF THE CHAMBERS COUNTY DEED RECORDS; THENCE, SOUTH 87°14'23" WEST, ALONG THE SOUTH LINE OF SAID 37.6437 ACRE TRACT, COMMON WITH THE NORTH LINE OF SAID 59.974 ACRE TRACT, 1,504.78 FEET TO A POINT FOR CORNER MARKING THE SOUTHWEST CORNER OF THE SAID 37.6437 ACRE TRACT BEING IN THE SOUTHEAST LINE OF THE AFOREMENTIONED COASTAL INDUSTRIAL WATER AUTHORITY CANAL; •THENCE, NORTH 31 °38'03" EAST, ALONG THE NORTHWEST LINE OF THE SAID 37.6437 ACRE TRACT, COMMON WITH THE SOUTHEAST LINE OF AFOREMENTIONED COASTAL INDUSTRIAL WATER AUTHORITY CANAL, 149223 FEET TO AN ANGLE POINT; THENCE, NORTH 32041'03" EAST, CONTINUING ALONG SAID COMMON LINE, 1,13831 FEET TO THE POINT OF BEGINNING, CONTAINING 37.64 ACRES OF LAND IN CHAMBERS COUNTY, TEXAS ALONG WITH THE HEREINDESCR®ED 197 ACRE TRACT (TRACT 1), AND THE HEREIN DESCRIBED 17.56 ACRE TRACT (TRACT 11), AND THE HEREIN DESCRIBED 665.88 ACRES (TRACT III) FOR A TOTAL ACREAGE OF 723.06 ACRES. -4- AV Windrose Land Services, Inc 3200 Wllcresiy Suite 325 i 20Houston, Texas 77042 !fesZ�Professional `E Phone (713) 458-2281 Fax (713) 461-1151 Development Consultants 1- Land Surveying, Platting, Project Management and GIS Services CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 G. L. SHORT SURVEY 723.06 ACRES ABSTRACT NO. 229 R. A. PORTER SURVEY ABSTRACT NO. 205 THIS DOCUMENT WAS PREPARED UNDER 22 TAC 663.2 1, AND DOES REFLECT THE RESULTS OF AN ON THE GROUND SURVEY, AND IS NOT TO BE USED TO CONVEY OR ESTABLISH INTERESTS IN REAL PROPERTY EXCEPT THOSE RIGHTS AND INTEREST IMPLIED OR ESTABLISHED BY THE CREATION OR CONFIGURATION OF THE POLITICAL SUBDIVISION FOR WHICH IT WAS PREPARED. W!1'eE KUR 5101�v p .1•/ MIKE K * XOWSKI R.P.L.S. NO. 5101 STATE OF TEXAS 11-16-1( DATE: Y:\Projed9\46137-De1ta Companies Group\915-Ward, Getz and Associates, L.P\14411\1441 I-SURVEYING\1441 I -Maus & BoundACCID No 2-Legal-I11611.doc -5- Exhibit "C" CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 RATE ORDER Dated: May 11, 2015 Effective: May 11, 2015 TABLE OF CONTENTS Page Section 1. Definitions I 1.01. Alternative Payment Services 2 1.02. Apartment(s)............................................................................................................................. 2 1.03. Builder................................................................................................................................2 1.04. Commercial...............................................................................................................................2 1.05. Commercial Waste....................................................................................................................2 1.06. Cost................................................................................................................................2 1.07. Customer................................................................................................................................2 1.08. Customer Connection............................................................................................................... 2 1.09. Customer Service Inspection Certification............................................................................... 3 1.10. Delinquent Bill.......................................................................................................................... 3 1.11. District's Engineer..................................................................................................................... 3 1.12. District's Operator..................................................................................................................... 3 1.13. Domestic Waste........................................................................................................................3 1.14. Drainage Facility ...................................................................................................................... 3 1.15. Drought Contingency Plan....................................................................................................... 4 1.16. Fire Line................................................................................................................................ 4 1.17. Health Hazard........................................................................................................................... 4 1.18. Industrial Waste........................................................................................................................4 1.19. Industrial Waste.................................................................... Error! Bookmark not defined.4 1.20. Nontaxable Entity..................................................................................................................... 4 1.21. System................................................................................................................................4 Section 2. Initial Connections to the District's System ('Taps') 4 2.01. Requirement to Connect to the District's System..................................................................... 4 2.02. Septic System and Private Water Supply Systems................................................................... 5 2.03. Application for Water and Sanitary Sewer Connections.......................................................... 5 2.04. Tap Fees................................................................................................................................ 5 2.05. Policies Governing Initial Connections.................................................................................... 7 (a) Certification............................................................................................................... 7 (b) Availability of Access................................................................................................ 7 (c) Property of District.................................................................................................... 7 (d) Connections by District Operator.............................................................................. 8 (e) Submission of Plans for Commercial and Apartment Customer Connections .......... 8 (fl Builder Deposit.......................................................................................................... 9 (g) Swimming Pool and Hot Tub Connections............................................................. 10 2.06. Inspections.............................................................................................................................. 11 (a) Sanitary Sewer Inspections...................................................................................... 11 (b) Customer Service Inspection Certification.............................................................. 11 (c) Inspection of District Facilities................................................................................ 12 2.07. Temporary Water Service 13 Section 3. Rates and Fees for Water and Sanitary Sewer Services 14 3.01. Application Fee and Security Deposit....................................................................................14 3.02. Monthly Rates for Commercial Water Service.......................................................................15 3.03. Monthly Rates for Commercial Irrigation Water Service ...................................................... 15 3.04. Monthly Rates for Commercial Sanitary Sewer Service........................................................ 17 3.05. Monthly Rates for Water Service to Apartments.................................................................... 18 3.06. Monthly Rates for Irrigation Water Service to Apartments...................................................18 3.07. Monthly Rates for Sanitary Sewer Service to Apartments..................................................... 20 3.08. Monthly Rates for Water Service to Builders......................................................................... 20 3.09. Regulatory Assessments and Fees.......................................................................................... 21 3.10. Drought Contingency Plan..................................................................................................... 22 3.11. Bulk Rates.............................................................................................................................. 22 3.12. Policies Governing Services................................................................................................... 22 (a) No Reduced Rates or Free Service.......................................................................... 22 (b) Entitlement...............................................................................................................23 (c) Unauthorized and Extraordinary Waste................................................................... 23 (d) Plumbing Regulations.............................................................................................. 24 (e) Backflow Prevention Requirements........................................................................ 26 Section 4. Delinquency in Payment; Penalty; Discontinuation and Termination of Service 27 4.01. Penalty for Failure to Pay Bill Before Delinquency............................................................... 27 4.02. Termination of Service........................................................................................................... 27 4.03. Discontinuing Service Upon Request of a Customer; After Hours Service ........................... 28 Section 5. Damage to District Facilities; Tampering 29 5.01. Damage to and Tampering With Meters and Appurtenances................................................. 29 5.02. Right to Repair........................................................................................................................ 29 5.03. Obstructions............................................................................................................................ 29 Section 6. Penalties for Violation; Attorney's Fees and Court Costs 30 Section 7. Appeal; Accuracy of Meters 31 Section 8. Amendments 32 Section 9. Severability 32 Exhibit "A" Service Inspection Certification Form Exhibit "B" Sample Backflow Prevention Assembly Test and Maintenance Report RATE ORDER WHEREAS, CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2 (the "District") owns water, sanitary sewer and storm sewer systems designed to serve present and future inhabitants within the District; and WHEREAS, it is necessary that fees, charges and conditions be ratified and established for providing service from the District's water and sanitary sewer systems; and WHEREAS, the Board of Directors has carefully considered the matter, including the establishment of rates and charges for classes of customers in accordance with Texas Water Code, Section 49.2122, as amended, and based upon, among other factors, the cost to construct and operate the facilities, and is of the opinion that the following fees, rates and conditions should be established for service from and protection of the District's water, sanitary sewer and storm sewer systems. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2, THAT THE FOLLOWING RATE ORDER IS HEREBY ADOPTED: Section 1. Definitions. For purposes of this Rate Order (hereafter referred to as "Order"), in addition to terms defined elsewhere herein, the following words or terms shall have the following meanings: 1.01. "Alternative Payment Services" shall mean one or more programs through which a customer may pay for water and sanitary sewer services provided by the District, other than a payment by cash, cashier's check, check, or money order submitted directly by Customer, and which programs are offered to Customers through third party service providers and coordinated by the District's Operator. These Alternative Payment Service Providers may include one or more of the following or others: (a) check by phone, (b) on line payment by credit or debit card, (c) on line bill payment through Customer's bank, (d) payment by Customers at local retail outlets, and (e) automatic monthly debit from Customer's account. 1.02. Apartment(s)" shall mean dwelling structure(s) containing multiple dwelling units and shall include apartments, townhouses, condominiums, and multiplexes. 1.03. "Builder" shall mean a Customer who is constructing a new structure for connection to the District's System. 1.04. "Commercial" shall mean and include any office building, hotel, retail store, clubhouse, warehouse, service station, or other establishment rendering a service or offering a product for sale to the public, and any establishment not generally considered a single- family residence. 1.05. "Commercial Waste" shall mean liquid carried sanitary sewage discharged from Commercial Customer Connections which is properly shredded and amenable to biological treatment and which may contain trace amounts of sand, grit, lubricants and other petroleum products commonly associated with Commercial establishments such as service stations and car wash facilities. 1.06. "Cost" shall mean the District's actual cost of labor and materials with respect to the installation or repair of any facility or work performed by the District. 1.07. "Customer" shall mean the person, firm, corporation or other entity which receives District services for a Residential, Commercial, Apartment or other structure, whether the owner, renter, builder or lessee thereof. Inasmuch as this Order hereinafter makes it mandatory for each such structure to be connected to the District's System as soon as the District's System becomes operable, the term "Customer" shall mean and include the person, firm, corporation or other entity which requests District services for such structure at the time service becomes available to said structure. 1.08. "Customer Connection" or "Connection" shall mean each separately metered Residential, Apartment, or Commercial facility that is physically connected to the -2- District's System, whether occupied or not, and where appropriate, shall refer to the point of physical connection of such facility to the District's System. 1.09. "Customer Service Inspection Certification" shall mean the inspection and subsequent certification required to be provided to the District in the instances and in the manner set forth in this Order, and which shall be evidenced by the completion of a form in the form attached to this Order as Exhibit "A". 1.10. "Delinquent Bill" shall mean a bill for water and/or sanitary sewer service and/or other services, penalties and/or other charges of any nature imposed by the District, whether hereunder or pursuant to any Drought Contingency Plan or District order regulating waste, for which payment in full (including, without limitation, all charges, penalties and late fees) has not been received before 5:00 p.m. of the twentieth (20th) day after the date of the bill (with respect to a regular monthly bill) or (with respect to delinquent or disconnection notices) before the date and time set forth in a notice from the District at an address specified therein for payment. 1.11. "District's Engineer" shall mean the person, firm or corporation which the District has engaged to provide engineering services for the District. 1.12. "District's Operator" shall mean the person, firm, corporation, municipal corporation or political subdivision with which the District has contracted for operation and maintenance of the District's System. 1.13. "Domestic Waste" shall mean liquid carried sanitary sewage discharged from Residential Customer Connections (including Apartments) which is properly shredded and amenable to biological treatment, which is normally discharged from Residential food preparation and bathroom facilities, and which has biological oxygen demand (5 -day) and total suspended solids concentrations not exceeding 200 milligrams per liter. 1.14. "Drainage Facility" shall mean any storm sewer, detention facility, or drainage channel of the District and all extensions and additions thereto, whether now in place or hereafter constructed. -3- 1. 15. "Drought Contingency Plan" shall mean any drought contingency or water conservation plan now in effect or hereafter adopted by the District. 1.16. "Fire Line" shall mean a water supply line installed or constructed for the sole purpose of providing water during a fire or other emergency. 1.17. "Health Hazard" shall mean a cross -connection, potential contamination hazard, or other situation involving any substance that could, in the opinion of the District, cause death, illness, or spread of disease, or which has a high probability of causing such effects if introduced into the District's potable drinking water supply. 1.18. "Industrial Waste" shall mean waste other than Commercial Waste and Domestic Waste. 1.19. "Irrigation Water Service" shall mean water service provided to a Customer through a separate meter designated for irrigation use only and which does not result in the discharge of waste into the District's sanitary sewer System. 1.20. "Nontaxable Entity" shall mean the owner of any property within the District that is exempt from the payment of ad valorem taxes levied by the District. 1.21. "System", as used herein, shall mean the water and/or sanitary sewer and/or storm sewer facilities of the District and all extensions and additions thereto, whether now in place or hereafter constructed. Section 2. Initial Connections to the District's System ("Taps"). 2.01. Requirement to Connect to the District's System. Each structure within the District requiring water and/or sanitary sewer services shall be physically connected to the District's System as soon as the District has made water and sanitary sewer services available to such structure. It is the policy of the District that all properties within the District shall be physically connected to both the sanitary sewer System and water System of the District. In the event that both water and sanitary sewer services are not available to a property at the time a Customer Connection is applied for, the Board of Directors, in its sole discretion, may permit connection to the water System or sanitary sewer System without requiring connection to both -4- the District's water System and sanitary sewer System upon determination by the District that an acceptable alternative water source or wastewater treatment source is available to such property. If both water and sanitary sewer services do not become available at the same time, and if the District permits connection to the water System or sanitary sewer System without requiring connection to both, the water connection must be made at the time water service becomes available and the sanitary sewer connection must be made at the time sanitary sewer service becomes available. 2.02. Septic System and Private Water Supply Systems. The construction and operation of septic systems and private water supply systems within the District shall be permitted until such time as the District's wastewater collection system has been connected to the City of Baytown's wastewater collection and treatment system. 2.03. Application for Water and Sanitary Sewer Connections. Each person desiring initial water and sanitary sewer service connections to the District's System shall notify the District's Operator and shall sign and complete an application for such service and pay such fees as established by this Order. The application form may be amended by the District from time to time, as deemed appropriate, without the necessity of an amendment to this Order. No physical connection to the District's System shall be made until such application has been completed and such fees have been paid. Impact fees required by the City of Baytown shall be paid in full prior to approval of an application for service and written evidence of same provided to the District. Written evidence of compliance with any City of Baytown requirements regarding Industrial Waste applicable to each proposed connection shall be provided prior to approval of an application for service. 2.04. Tap Fees. Subject to the limitations in this Section 2.04, the following fees shall be collected from the applicant by the District's Operator before physical connection is made to the District's System (which fees shall include the meter and meter box and installation thereof): -5- (a) Commercial and Apartment Connections; which as the District obtains its water supply and/or wastewater treatment from the City of Baytown, shall include all impact fees or capital recovery fees charged by the City: Nontaxable Entity Connection (except a (b) Public Safety Facility Connection) (c) Public Safety Facility Connection (d) Fire Line Connection Cost (not including City impact or capital recovery fees) + 200%; plus City impact or capital recovery fees District's cost of installation and materials for the meter(s), plus the actual costs to the District for all facilities that are necessary to provide District services to the tract and that are financed or are to be financed in whole or in part by tax -supported bonds of the District. Notwithstanding any provision in the Order to the contrary, should a tract and/or the improvements thereon be owned and/or occupied by a Nontaxable Entity following the date of initial payment of a tap fee pursuant to one of the other subsections of this Section 2.04 such that ad valorem taxes are not due to the District with respect thereto, said Nontaxable Entity shall pay the fee specified in this Subsection (b) less any tap fee previously paid with respect to the initial connection to the District's System, within thirty (30) days following the date of an invoice from the District therefor. The foregoing shall also apply if the Customer failed to advise the District at the time of the initial application for connection that it was a Nontaxable Entity, regardless of the reason for any such failure, and the fee in this Subsection (b) shall apply retro -actively to the date of the initial application for connection. Cost Cost Notwithstanding anything to the contrary in Section 2.04(b) above, the total amount of the tap fee for a Nontaxable Entity connection shall not be greater than the actual costs to the W District for such work and for all facilities that are necessary to provide District services to the tract and that are financed or are to be financed in whole or in part by tax -supported bonds of the District. For purposes of this provision and the calculation of a tap fee for a Nontaxable Entity connection pursuant to Section 2.04(b) above, the amount set forth therein shall apply to each Equivalent Dwelling Unit as established by the City of Baytown. 2.05. Policies Governing Initial Connections. (a) Certification. Subject to the provisions of Section 2.01 hereof, physical connection shall not be made to the District's System until the District's Engineer has certified that the System is operational. Continuous water service shall not be provided to any Customer until (i) an acceptable sanitary sewer connection (except as to water service only Customers) has been made; (ii) all inspections required pursuant to Section 2.06 hereof have been performed; (iii) any deficiencies or damages noted during said inspections have been corrected and/or paid for; and (iv) a properly completed Customer Service Inspection Certification has been provided to the District. (b) Availability of Access. Upon application for Customer Connection, the applicant shall grant an easement of ingress and egress to and from the water meter for such installation, maintenance and repair as the District, in its judgment, may deem necessary. Physical connection will not be made when, in the opinion of District's Engineer or the District's Operator, the work area is obstructed by building materials and debris or the work area is not completed to finished grade. When sidewalks, driveways or other improvements have been constructed prior to application for Customer Connection, such application shall be construed and accepted as a waiver of any claim for damages to such improvements resulting from the reasonable actions of the District's Operator relative to the installation of the Customer's connection to the District's System. (c) Property of District. All meters, fittings, boxes, valves and appurtenances installed shall remain the property of the District. -7- (d) Connections by District Operator. Physical connection to the District's water System shall be made by the District's Operator unless specified otherwise by the Board of Directors of the District. Physical connection to the District's sanitary sewer System shall be made in accordance with the District's Policy Governing Sewer House Lines and Sewer Connections and in accordance with Section 2.06 hereof. No person, other than the properly authorized agents of the District, shall be permitted to make any connection to the District's water System, except for emergency fire -fighting purposes, or make any repairs or additions to or alterations in any meter, box, tap, pipe, cock or other fixture or appurtenance connected with the water service, or any manhole, main, trunk or appurtenance of the District's sanitary sewer or storm sewer System except by the written permission of the Board of Directors of the District. (e) Submission of Plans for Commercial and Apartment Customer Connections. Each applicant for a Commercial or Apartment Customer Connection or an applicant with an existing Commercial or Apartment Customer Connection that has proposed changes to and/or construction within its site that would provide for an additional connection to its respective system, shall, not less than thirty (30) days prior to the requested connection date, or thirty (30) days prior to the proposed change and/or construction date, as applicable, submit to the District's Engineer or other party designated by the Board of Directors of the District, the following information: (1) Engineering plans (three sets for District purposes) signed and sealed by a Registered Professional Engineer of the State of Texas indicating details of building water distribution and sanitary sewer collection facilities, materials to be used and the location, size and number of proposed connections to the District's System or applicant's existing system, as applicable; (2) The legal description of the land to be served by the District's System and a copy of the recorded plat of same; and (3) A general description of the type of proposed Commercial establishment (including Apartments) and, if applicable, a description of the special measures -8- taken in order to prevent any possible Industrial Waste and/or unauthorized Commercial Waste from entering the District's sanitary sewer System. In recognition of the District's obligation to protect and maintain public health, the District's Engineer or other party designated by the Board of Directors of the District shall review the information presented and may approve or reject the application, request that further information be submitted prior to approval of the application, or require modifications to be made to the plans, including without limitation, requiring the installation of backflow preventors, grease traps, grinders, sampling wells, and/or pretreatment units as may be deemed necessary or appropriate for the protection of the District's System. The Customer shall be responsible for payment of all costs in connection with the review of said information. Customer shall be notified in writing as to the basis for rejection of its application. Failure to construct the facilities in accordance with approved plans shall constitute a basis for denial of District services or a basis for removal or suspension of District services, as applicable. If the application information is not timely provided, the District shall not be held responsible for delays in the installation of water and sanitary sewer connections or the provision of District services. Payment of tap fees to the District's Operator prior to the approval of plans shall not be considered approval of said plans or approval for connection to the District's System or applicant's existing system, as applicable. Any unauthorized physical connection to the District's System or applicant's existing system, as applicable, may be removed without notice at the expense of the person or firm causing such connection to be made. (f) Builder Deposit. Upon first application for a Customer Connection, the applicant (whether property owner, builder or other) (the "Applicant") shall pay a damage deposit in the amount of $1,000.00 (which deposit shall apply to all connections of such Applicant, whether one or more) (the "Builder Deposit"). The Builder Deposit is solely to secure the payment of costs to repair any District facilities damaged by the Applicant or other parties during the construction of the house, building or other improvement on the applicable property ("Builder Damages") and is in addition to the security deposit to secure payment of In service charges described in Section 3.01 of this Order. The applicant shall be held responsible for any Builder Damages and shall reimburse the District for all costs incurred in repairing the Builder Damages. After inspection by the District's Operator, the District may utilize the Builder Deposit to pay for any repairs to the District facilities made necessary by the Applicant's construction activities. If the Builder Deposit is not sufficient to pay for such Builder Damages, the Applicant shall pay such outstanding balance due. No additional connections to the District's System shall be permitted relative to any Applicant who has outstanding Builder Damages. If Applicant is building more than one house, building or other improvement with the District, the Builder Deposit shall, at all times, remain at the amount required by this Order, and if the District utilizes a portion or all of the Builder Deposit to repair Builder Damages, the Applicant shall pay to the District the amount(s) necessary to again have a Builder Deposit equal to such amount. The District shall refund any remaining Builder Deposit upon completion of the last house, building or other improvement to be constructed within the District by the Applicant, final inspection by the District's Operator, and payment by the Applicant of all fees, charges and damages due to the District under this Order or otherwise, and any remaining amount can be applied to any outstanding fee, charge, tax, etc. owed by the Applicant to the District. No interest will be paid by the District on the Builder Deposit. (g) Swimming Pool and Hot Tub Connections. Every Customer who constructs or installs a swimming pool or hot tub within the District shall notify the District's Operator prior to connection of same to the District's facilities and shall pay an inspection fee the amount of the District's cost plus 10%. For purposes of this Order, a swimming pool is defined as a pool having a capacity in excess of 10,000 gallons. After the notification, the Customer constructing or installing said swimming pool or hot tub shall ensure that any and all drains from the swimming pool or hot tub are connected to the District's sanitary sewer system, and it shall be a violation of this Order to drain a swimming pool or hot tub into the District's storm drainage system. After the drains have been installed and prior to backfilling of the area, the applicant -10- shall notify the District's Operator, who shall make an inspection of any and all swimming pool or hot tub drains before water service is authorized for said swimming pool or hot tub. 2.06. Inspections. (a) Sanitary Sewer Inspections. A sanitary sewer inspection fee of $100.00 for Commercial, Nontaxable Entity (including Public Safety Facilities), and Apartment Customer Connections, payable at the time of application for connection to the District's System, shall be charged by the District for inspection of each sanitary sewer physical connection and service line. A fee of $75.00 shall be charged by the District for each grease trap, sampling well or pretreatment unit installation inspection, which installation inspection fee shall be in addition to the monthly fee described in Section 3.02 hereof. Sanitary sewer connections and service lines shall be inspected for strict compliance with the District's "Rules and Regulations Governing Sewer House Lines and Sewer Connections." Customer shall notify the District's Operator prior to any such connection being made. Customer shall again notify the District's Operator after the physical connection has been made and such District's Operator shall inspect and approve the connection prior to backfilling of the area and prior to the commencement of sanitary sewer service. Installations which fail to conform to said rules will be denied. Customer shall be notified in writing as to the basis for such denial. After noted deficiencies have been corrected, a sanitary sewer connection reinspection shall be made upon payment to the District of a reinspection fee of $100.00 for Commercial, Nontaxable Entity (including Public Safety Facilities) and Apartment Customer Connections. If subsequent reinspections are required before the sanitary sewer connection and service lines are found in compliance with the District's rules, an additional sanitary sewer reinspection fee of like amount shall be charged for each such reinspection. (b) Customer Service Inspection Certification. Prior to the District providing continuous water service to (i) any new construction; (ii) any existing Customer Connection when the District, in its sole discretion, has reason to believe that a cross -connection or potential contamination hazards exist; or (iii) any existing Customer Connection after any -11- material improvement, correction or addition to the private water distribution facilities, a properly completed Customer Service Inspection Certification shall be provided by the Customer to the District. "Continuous" water service, with respect to new construction, shall be deemed to commence upon the transfer of service from the builder of a building, residence, or other establishment to the initial occupant or user thereof. For Commercial (including Apartment) Customer Connections, the District's Operator shall perform the inspection and provide the necessary certification, and the District shall charge the Customer a fee of the District's cost plus 10%. Customer shall be charged the same applicable fee set forth above for any reinspection required. Should a Customer fail to provide to the District a properly completed Customer Service Inspection Certification, water service to such Customer will be terminated by the District and service shall not be restored by the District until the required Customer Service Inspection Certification form is provided. (c) Inspection of District Facilities. In accordance with applicable rules of the Texas Commission on Environmental Quality, any person desiring water and sanitary sewer services from the District must notify the District's Operator prior to making any improvement or starting any construction on property within the District if such improvement, construction or equipment used in connection therewith will be within or in close proximity to easements, rights-of-way or property where District facilities are located. The District's Operator shall inspect each property or location at which the improvement or construction is to take place prior to commencement of same to verify the location and condition of District facilities on the property. Upon receipt of instructions from the contractor or builder that construction of the facility or improvement is complete and prior to the transfer of the account to the subsequent Customer, the District's Operator shall make a final inspection of the water tap, meters and all other District facilities located on or around the property in question to verify the condition of such facilities. If damage to any District facilities is found, the District's Operator will repair -12- such facilities and the builder or contractor will be responsible for payment of all costs incurred prior to the initiation of services to the property. A fee of the District's cost plus 10% shall be charged by the District to cover the costs of each of such inspections (both the pre -inspection and final inspection), which fee will be due and payable at the time the tap fee is paid. (d) City of Baytown Permit and Inspection Program. In addition to the various inspection requirements and associated fees provided herein, the City of Baytown maintains its own plumbing permit, water and sanitary sewer inspection program which requires compliance with and payment of certain associated fees to the City by the District Customers. Any applicable inspection or other fees paid by Customer to the City shall be in addition to the total amount owed to the District as provided herein. Further, it shall by Customer's responsibility to contact the City and coordinate with the City for all permits and inspections required by the City's program. 2.07. Temporary Water Service. Withdrawal of water from flushing valves or fire hydrants or other appurtenances of the District's System without prior approval of the District, except for emergency fire -fighting purposes, is prohibited. The District's Operator shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service within the area of the District. Such temporary service shall be provided on ly through a District meter installed by the District's Operator. The applicant for temporary water service shall be required to post a deposit of $1,500.00 which shall secure the payment for water supplied by the District, the installation fee, the safe return of the District's meter and fire hydrant wrench, and the cost of repair of any damage by a user of the hydrant. The fee for temporary water service shall be $100.00 for costs of installation, plus a monthly fee of $63.88 and a charge of $7.28 per 1,000 gallons of water delivered through the meter. Temporary water service may be supplied outside the area of the District only with the express authorization of the Board of Directors of the District. -13- Section 3. Rates and Fees for Water and Sanitary Sewer Services. Each prospective Customer desiring water and sanitary sewer service shall be required to provide appropriate information in order to obtain such service and shall pay an application fee, as set forth below. 3.01. Application Fee and Security Deposit. A non-refundable application fee of $35.00 shall be charged for each Customer application, including for applications to transfer service from a builder to a non -builder Customer. Each Customer shall pay the applicable security deposit as follows: (a) Commercial Customers served by a separate meter (b) Each Apartment unit served by a separate meter (c) Commercial Customer and Apartment served by a master meter (d) Non -Taxable Entity (including Public Safety Facilities) The greater of $100.00 or 200% of the monthly charge' $ 150.00 The greater of $100.00 or 200% of the monthly chargee $ 300.00 Upon final termination of service, such deposit shall be credited against amounts owed to the District and any balance refunded to the Customer within forty-five (45) days after termination of service. The District shall not be required to pay interest to the Customer on such security deposit. Further, any Customer whose service is terminated pursuant to Section 4.02 hereof shall pay such deposit (if such Customer has not previously paid a security deposit) or any deficiency in the deposit as a result of application of the deposit to a Delinquent Bill before the Customer's service is restored. No service shall be restored until such fees and deposits have been received by the District in collected funds. Notwithstanding the foregoing, the District shall The monthly service charges shall be estimated by the District's engineer or operator using the City of Baytown criteria regarding such usage. The monthly service charges shall be estimated by the District's engineer or operator using the City of Baytown criteria regarding such usage. -14- have the right, but not the obligation, at its sole discretion, to apply all or any portion of such security deposit without notice to the Customer to offset the amount of a Delinquent Bill that remains unpaid for more than thirty (30) days after becoming a Delinquent Bill. If the District applies the security deposit prior to termination of service, Customer shall be required to pay a replacement security deposit in accordance with this Section 3.01. Customer's failure to timely pay a replacement security deposit shall result in Customer's bill becoming a Delinquent Bill. Furthermore, nothing contained herein shall prevent the District from applying a Customer's security deposit on file with the District in accordance with 1 I U.S.C. Section 366(c)(4) or any successor provision or any other applicable section of the federal Bankruptcy Code or applicable provision of state law. 3.02. Monthly Rates for Commercial Water Service. The following rates per month, or any part thereof, shall be charged for Commercial water service furnished by the District to each Commercial Customer Connection in every instance in which a different charge is not expressly and clearly provided for herein: (a) Base Bill 5/8" x 3/4" $ 14.50 4" $ 249.51 3/4" $ 19.41 6" $ 494.29 1" $ 29.19 8" $ 788.03 1-1±2" $ 53.68 10" $ 1,130.77 2" $ 83.04 3" $ 161.37 (b) All usage per 1,000 GWM $ 7.28 3.03 Monthly Rates for Commercial Irrigation Water Service. The following rates per month, or any part thereof, shall be charged for Commercial Irrigation Water Service, through a separate irrigation meter, furnished by the District to each Commercial Customer -15- Connection in every instance in which a different charge is not expressly and clearly provided herein: a. 5/8"x3/4" 1. Base Bill $ 14.50 2. Up to 6,000 g $ 7.28 3. 6-12,000g $ 8.72 4. 12-18,000g $ 11.36 5. over 18,000g $ 14.77 b. 3/4" 1. Base Bill $ 19.41 2. Up t o 9,000g $ 7.28 3. 9-18,000g $ 8.72 4. 18-27,000g $ 11.36 5. over 27,000g $ 14.77 C. III 1. Base Bill $ 29.19 2. Up to 15,000g $ 7.28 3. 15-30,000g $ 8.72 4. 30-45,000g $ 11.36 5. over 45,000g $ 14.77 d. 1 1/2" 1. Base Bill $ 53.68 2. up to 30,000g $ 7.28 3. 30-60,000g $ 8.72 4. 60,000-90,000g $ 11.36 5. over 90,000g $ 14.77 e. 2" 1. Base Bill $ 83.04 2. up to 48,000g $ 7.28 3. 48,000-96,000g $ 8.72 4. 96,000-144,000 $ 11.36 5. over 144,000 $ 14.77 11011 f. 311 $ 1,130.77 1. Base Bill $ 161.37 2. up to 96,000g $ 7.28 3. 96,000-192,000g $ 8.72 4. 192,000-288,000g $ 11.36 5. over 288,000g $ 14.77 g 411 1. Base Bill $ 249.51 2. up to 150,000g $ 7.28 3. 150,000-300,000g $ 8.72 4. 300,000-450,000 $ 11.36 5. over 450,000g $ 14.77 h. 6" 1. Base Bill $ 494.29 2. up to 300,000g $ 7.28 3. 300,000-600,000g $ 8.72 4. 600,000-900,000g $ 11.36 5. over 900,000g $ 14.77 i. 8" 1. Base Bill $ 788.03 2. up to 480,000g $ 7.28 3. 480,000-960,000g $ 8.72 4. 960,000-1,440,000g $ 11.36 5. over 1,440,000 $ 14.77 j. 10" 1. Base Bill $ 1,130.77 2. up to 690,000g $ 7.28 3. 690,000-1,380,000g $ 8.72 4. 1,380,000-2,070,000g $ 11.36 5. over 2,070,000g $ 14.77 3.04. Monthly Rates for Commercial Sanitary Sewer Service. The following rates per month, or any part thereof, shall be charged for Commercial sanitary sewer service furnished by the District to each Commercial Customer Connection in every instance in which a different charge is not expressly and clearly provided for herein; provided, however, that said -17- rate shall not be charged to a Commercial Customer Connection which is installed for Irrigation Water Service: (a) Base Bill 5/8" x 3/4" $ 14.50 4" $ 249.51 3/4" $ 19.41 6" $ 494.29 1" $ 29.19 8" $ 788.03 1-1/2" $ 53.68 10" $ 1,130.77 2" $ 83.04 3" $ 161.37 (b) For each 1,000 GWM $ 7.32 3.05. Monthly Rates for Water Service to Apartments. Apartment units shall be served by a master meter. The following rates per month, or any part thereof, shall be charged for water service furnished by the District to each Apartment Customer Connection in every instance in which a different charge is not expressly and clearly provided for herein: (a) Minimum monthly charge $ 14.50 per unit (b) For each 1,000 GWM up to 2,000 GWM $ 3.38 (c) For each 1,000 GWM over 2,000 GWM $ 7.32 3.06 Monthly Rates for Irrigation Water Service to Apartments. The following rates per month, or any part thereof, shall be charged for Irrigation Water Service, through a separate irrigation meter, furnished by the District to each Apartment Customer Connection in every instance in which a different charge is not expressly and clearly provided herein: a. 5/8"0/4" 1. Base Bill $ 14.50 2. Up to 6,000 g $ 7.28 3. 6-12,000g $ 8.72 4. 12-18,000g $ 11.36 5. over 18,000g $ 14.77 -18- b. 3/4" 1. Base Bill $ 19.41 2. Up t o 9,000g $ 7.28 3. 9-18,000g $ 8.72 4. 18-27,000g $ 11.36 5. over 27,000g $ 14.77 C. III 5. over 90,000g 1. Base Bill $ 29.19 2. Up to 15,000g $ 7.28 3. 15-30,000g $ 8.72 4. 30-45,000g $ 11.36 5. over 45,000g $ 14.77 d. 1 1/2 " 1. Base Bill $ 53.68 2. up to 30,000g $ 7.28 3. 30-60,000g $ 8.72 4. 60,000-90,000g $ 11.36 5. over 90,000g $ 14.77 e 2" 1. Base Bill $ 83.04 2. up to 48,000g $ 7.28 3. 48,000-96,000g $ 8.72 4. 96,000-144,000 $ 11.36 5. over 144,000 $ 14.77 f. 3" 1. Base Bill $ 161.37 2. up to 96,000g $ 7.28 3. 96,000-192,000g $ 8.72 4. 192,000-288,000g $ 11.36 5. over 288,000g $ 14.77 g 4" 1. Base Bill $ 249.51 2. up to 150,000g $ 7.28 3. 150,000-300,000g $ 8.72 4. 300,000-450,000 $ 11.36 5. over 450,000g $ 14.77 -19- h. 6" (b) For up to 2,000 GWM 1. Base Bill $ 494.29 2. up to 300,000g $ 7.28 3. 300,000-600,000g $ 8.72 4. 600,000-900,000g $ 11.36 5. over 900,000g $ 14.77 i. 8" 1. Base Bill $ 788.03 2. up to 480,000g $ 7.28 3. 480,000-960,000g $ 8.72 4. 960,000-1,440,000g $ 11.36 5. over 1,440,000 $ 14.77 j. 10" 1. Base Bill $ 1,130.77 2. up to 690,000g $ 7.28 3. 690,000-1,380,000g $ 8.72 4. 1,380,000-2,070,000g $ 11.36 5. over 2,070,000g $ 14.77 3.07. Monthly Rates for Sanitary Sewer Services to Apartments. The following rates per month, or any part thereof, shall be charged for sanitary sewer service furnished by the District to each Apartment Customer Connection in every instance in which a different charge is not expressly and clearly provided for herein; provided, however, that said rate shall not be charged to an Apartment Customer Connection which is installed for Irrigation Water Service: (a) Minimum monthly charge (b) For up to 2,000 GWM (c) For over 2,000 GWM $ 14.50 per unit $ 3.38 $ 7.32 3.08. Monthly Rates for Water Service to Builders. The following rates per month, or any part thereof, shall be charged for water service furnished by the District to each NO Builder Customer Connection in every instance in which a different charge is not expressly and clearly provided for herein: (a) Base Bill 5/8" x 3/4" $ 14.50 4" $ 249.51 3/4" $ 19.41 6" $ 494.29 1" $ 29.19 8" $ 788.03 1-1/2" $ 53.68 10" $ 1,130.77 2" $ 83.04 3" $ 161.37 (b) All usage per 1,000 GWM $ 7.28 3.09. Regulatory Assessments and Fees. The regulatory assessments and fees imposed pursuant to this Section 3.09 shall be billed and collected in the manner set forth in this Order and all Customers of the District shall be subject to penalties and/or termination of service for failure to pay said regulatory assessments and fees when due in the manner set forth herein. (a) Texas Commission on Environmental Quality Assessment. The water and sanitary sewer service rates set forth above in Sections 3.02 through 3.08, inclusive, and the rate for temporary water service in Section 2.07, include a regulatory assessment equal to one-half of one -percent of the charge for water and/or sewer service, as provided by Section 5.701(n), Texas Water Code, as amended. (b) Fees Associated with Alternative Payment Services. Alternative Payment Services which may be offered by the District are provided merely as a convenience to Customers and such services may be discontinued by the District at any time in its sole discretion. Customer's use of any alternative payment services does not relieve Customer of the obligation to ensure that payment is timely received by the District and the provisions of this Order, including, without limitation, Section 4 hereof, shall apply to any Delinquent Bill. All Alternative Payment Services are administered by third party service providers and certain fees -21- for use of the services may apply. With the exception of any automatic monthly debit program which the District may adopt, such fees are set by and charged to the Customer by the Service providers rather than by the District. For any such automatic monthly debit program, a fee of $3.50 per debit transaction processed by the District shall be charged to the Customer as a pass through fee. Customer shall be provided notice of any applicable fees by the service providers for Alternative Payment Services prior to the time of payment and Customer shall be solely responsible for the payment of the same. Any applicable service fees paid by the Customer shall be in addition to the total amount owed to the District as reflected on Customer's bill. 3.10. Drought Contingency Plan. The water and sanitary sewer rates set forth above in Sections 3.02 through 3.08, inclusive, and the rate for temporary water service in Section 2.07, do not include any additional fees or charges imposed by the District during any drought response stage pursuant to the Drought Contingency Plan. Any such additional fees and charges, and any penalties under the Drought Contingency Plan, shall be billed and imposed by the District in accordance with the Drought Contingency Plan and shall be in addition to fees or charges under this Order, unless otherwise set forth in the Drought Contingency Plan. 3.11. Bulk Rates. The water and sanitary sewer service rates set forth above shall not be construed to prevent the District from furnishing water and/or sanitary sewer service to any Customer at a bulk rate if deemed advisable by the District, with such rate to be determined on a case by case basis. 3.12. Policies Governing Services. (a) No Reduced Rates or Free Service: Service Subject to Compliance with Laws and Agreements. All Customers receiving services from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order, and no reduced rate or free service shall be furnished to any Customer; provided, however, this IRA provision shall not prohibit the District, upon good cause shown, from establishing reasonable classifications of Customers for which rates differing from the rates stated herein may be adopted. Failure to comply with (i) all applicable regulations and laws regarding service, including, without limitation, the requirement that a plat of the property to be served be recorded prior to service, and (ii) any agreement between the District and the Customer, including, without limitation, a utility commitment, shall be considered a violation of this Order and may result in termination of service and/or assessment of penalties in accordance with the terms hereof. (b) Entitlement. Customers are not guaranteed a specific quantity or pressure of water or specific capacity in sewer facilities for any purpose whatever; in no instance shall the District be liable for failure or refusal to furnish water or any particular amount or pressure of water or to provide capacity in sewer facilities or to collect solid waste. (c) Unauthorized and Extraordinary Waste. The water and sewer service rates established herein are applicable for ordinary Domestic Waste normally considered to have a biological oxygen demand (five day) and total suspended solids of 200 milligrams per liter. Customers discharging, whether intentionally or unintentionally, non -Domestic Waste into the District's System will be assessed additional charges as established by District based on the volume and concentration of the proposed waste, as well as costs of remediation and/or repairs to the System occasioned as a consequence of such discharge, in addition to any other penalties set forth herein and in any order regulating waste heretofore or hereafter adopted by the District. Customers proposing to discharge or discharging certain Commercial Waste, including Commercial Waste from food processing or other food handling establishments, will be required to install garbage grinders and may be required to install grease traps or pretreatment units when so ordered by the District following the evaluation of the effects of high concentrations of organics on the System. Customers who are required to install garbage grinders, grease traps or other types of pretreatment units shall maintain same in good working condition, which shall include, but not be limited to, regular cleaning. The District shall have the right to inspect such -23- pretreatment units, and, in order to protect the District's facilities, reserves the right, if Customer has failed to do so, to perform the required maintenance at Customer's expense and/or to discontinue service to Customer. District Customers shall be required to comply with all City of Baytown requirements regarding the discharge of waste into the City's sanitary sewer system, including, but not limited to, "industrial waste" and "prohibited waste", as defined by the City of Baytown in its Code of Ordinances. All Customers of the District's sanitary sewer System shall be subject to the terms and conditions of any order regulating waste heretofore or hereafter adopted by the District, pursuant to the terms of which the District may establish rates and charges to produce revenues to pay such additional costs incurred by the District in connection with such Industrial Waste. Further, the District shall have the right to terminate service to any Customer which violates any such order or City of Baytown requirement regulating waste in accordance with Section 4.02 hereof and the penalties specified in Section 6 hereof shall apply, in addition to any other penalties or other charges specified in such order or herein. The District's Operator shall have rights of ingress and egress to Customer's property in order to carry out the provisions of this Section. (d) Plumbing Regulations. The following plumbing regulations and Section 1417 of the federal Safe Drinking Water Act, as amended by the federal Reduction of Lead in Drinking Water Act enacted on January 4, 2011 (and effective January 4, 2014), and any Environmental Protection Agency regulations adopted thereunder and are applicable to all Customers of the District. The stricter of the standards in the above shall be met, notwithstanding anything below to the contrary: (i) No direct connection between the District's water System and a potential source of contamination shall be permitted; potential sources of contamination shall be isolated from the District's water System by an air gap or an appropriate backflow prevention device in accordance with applicable Texas Commission on Environmental Quality requirements and/or as otherwise required by the District in its reasonable discretion; -24- (ii) No cross connection between the District's water System and any private water system shall be permitted, and any potential threat of cross connection shall be eliminated at the service connection by the installation of an air gap or a reduced pressure -zone backflow prevention device; (iii) No connection which allows water used for condensing, cooling or industrial processes, or water from any other system of nonpotable usage over which the District does not have sanitary control to be returned to the District's water System shall be permitted; (iv) No pipe or connection which allows water to be returned to the public drinking water supply is permitted; (v) The use of pipes, pipe fittings, plumbing fittings, and fixtures that contain more than a weighted average of 0.25 percent lead, or solders and flux that contain more than 0.2 percent lead is prohibited for installation or repair of the District's water supply System and for installation or repair of any plumbing in any Residential or Commercial facility providing water for human consumption and connected to the District's water supply System. This requirement may be waived for leaded joints that are necessary for repairs to cast iron pipe; and (vi) Notwithstanding anything to the contrary contained herein, the District reserves the right to inspect each Customer's property at any time for possible cross connections and other potential contamination hazards in violation of this Order, including, without limitation, irrigation and swimming pool connections. The Customer shall, upon receipt of notice from the District, immediately correct any potential contamination hazard existing on his premises to prevent possible contamination of the District's water System. The existence of a serious threat to the integrity of the District's water System shall be considered sufficient grounds for immediate termination of water service. Water service will be restored only when the source of potential contamination no longer exists, or when sufficient additional safeguards have been taken to protect the District's water System from contamination, and a Customer -25- Service Inspection Certification confirming the correction of a potential contamination hazard has been submitted to the District. The District shall not be required to follow the procedures set forth in Section 4.02 hereof when terminating water service to a Customer under this Section 3.18(d). However, the Customer shall be subject to the same charge for restoration of service terminated pursuant to this Section 3.16(d) as set forth in Section 4.02 hereof. (e) Backflow Prevention Requirements. No water connection from the District's System shall be allowed to any Customer Connection where the District, in its sole discretion, has reason to believe that an actual or potential contamination hazard exists unless the District's System is protected from contamination. The following backflow prevention requirements are applicable to all Customers of the District: (i) Backflow prevention assemblies shall be installed, tested and maintained, at the Customer's expense, at any Customer Connection in accordance with applicable Texas Commission on Environmental Quality requirements and/or as otherwise required by the District in its reasonable discretion. The use of a backflow prevention device at the service connection shall be considered additional backflow protection and shall not negate the use of backflow prevention on the internal hazards of any Customer Connection as outlined and enforced by applicable Texas Commission on Environmental Quality regulations and/or local plumbing codes. (ii) All backflow prevention assemblies installed at any Customer Connection shall be tested upon installation by a recognized backflow prevention assembly tester (pursuant to Texas Commission on Environmental Quality regulations) and certified to be operating within specifications. Backflow prevention assemblies which are installed to provide protection against a Health Hazard (as defined in 30 T.A.C. Sec. 290.38) must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester. (iii) The District's Operator shall install and test any backflow prevention assembly required to be installed at any Customer Connection pursuant to this Order, -26- and shall complete and retain in the District's files for recordkeeping purposes an original Backflow Prevention Assembly Test and Maintenance Report ("Test Report"), in the form attached to this Order as Exhibit "B". The District shall charge the Customer for the District's actual cost of the labor, materials and installation of the blackflow prevention assembly. In addition, the District shall charge a fee equal to the District's cost of time and materials plus 10% for the initial test and each annual test performed on such assembly for Customer Connections. Section 4. Delinquency in Payment, Penalty, Discontinuation and Termination of Service. 4.01. Penalty for Failure to Pay Bill Before Delinquency. A charge of ten percent (10%) of the amount of the Customer's bill shall be added to the Customer's bill when such Customer has failed to pay any bill before it becomes a Delinquent Bill. A charge of $15.00 shall also be added to a Customer's bill for each written notice of delinquency sent to a Customer. If a Customer's bill, or any part thereof, becomes a Delinquent Bill, the Delinquent Bill, plus the penalty thereon and all other charges imposed by the District shall be immediately due and payable. All such amounts shall be paid in full prior to the restoration of water service where service has been terminated because of a Customer's failure to pay a bill before it became a Delinquent Bill. A charge of $30.00 shall be imposed for each returned check notice forwarded to a Customer as a result of a Customer's check being returned by a bank for any reason. This provision shall apply regardless of whether Customer's bill is a Delinquent Bill at the time the payment is returned. 4.02. Termination of Service. The District shall have the right to terminate service and cut off the supply of water to a Customer and/or a Customer's access to the District's sanitary sewer System at any time after its bill becomes a Delinquent Bill or upon violation by the Customer of any order regulating waste heretofore or hereafter adopted by the District. The Customer shall, by written notice mailed to the Customer's address as reflected in the records of the District, be notified of the delinquency or violation and the date on which service shall be terminated if the account (including delinquent charges and penalty) is not paid in full or the -27- violation corrected, which date shall not be less than five (5) days from the date such notice is sent. With respect to a Delinquent Bill, such notice shall state the place and time at which the account may be paid and that any errors in the bill may be corrected by contacting the billing company, whose telephone number shall also be given in such notice. All notices of termination shall state that the Customer has the right to appeal such termination to the Board of Directors of the District. The notice shall also be left by the District's Operator on the front door at the address to which the service in question was provided at least twenty-four (24) hours prior to the time at which service shall be terminated. If the delinquent account (including any non - delinquent portion thereof), including penalty and all other charges then due and owing, has not been paid in full or the violation corrected by the proposed termination date, service shall then be discontinued unless otherwise agreed by the Board of Directors of the District. A charge of $75.00 shall be imposed for the restoration of service discontinued pursuant to this section. Payment of the unpaid account, including penalty and all other charges then due and owing plus any required deposit, shall be paid in cash, cashier's check or money order prior to restoration of water service where service has been terminated because of the Customer's failure to pay a bill before it became a Delinquent Bill. 4.03. Discontinuing Service Upon Request of a Customer; After Hours Service. Whenever a Customer of the District requests that water and sewer service be temporarily discontinued, Customer shall notify the District's Operator at least two (2) days prior to the time that such service discontinuation is desired. A charge of $75.00 shall be made for discontinuation of service and a charge of $75.00 shall be made for restoring water service (between 8:00 a.m. and 4:00 p.m.) when such service is discontinued and/or restored at the request of the Customer and Customer is not delinquent in the payment of any bill at the time of either request. Whenever a Customer of the District requests service to be turned on (whether for new or transferred service or after discontinuation as set forth in this Order) prior to 8:00 a.m. or after 4:00 p.m. on weekdays (excluding holidays) or on weekends or holidays, a charge of $75.00 shall be imposed. -28- Section 5. Damage to District Facilities; Tampering. 5.01. Damage to and Tampering With Meters and/or Drainage Facility and Appurtenances. No person other than a duly authorized agent of the District shall connect or otherwise direct flow to any Drainage Facility or open any meter box, repair, alter, adjust, remove, make connections or additions to, restore service when terminated for any reason under this Order, or in any other way take any action which affects any meter, meter box, service line or other water and/or sewer System appurtenance. The District reserves the right to immediately and without notice remove the meter or disconnect water service to any Customer whose meter, meter box, service line or other System appurtenance has been tampered with or altered in any way, or who has reconnected service which was terminated by the District or who has connected or otherwise directed flow to a Drainage Facility. In addition to the disconnection and reconnection fees charged under Section 4.02 of this Order and any penalties assessed under Section 6 of this Order, the District shall assess (i) a fee of $100.00 for the removal and reinstallation of a meter under this Section 5.01, (ii) any repair costs incurred by the District hereunder, and (ii) a damage fee of $50.00. 5.02. Right to Repair. In recognition of the District's obligation to protect and maintain the public health, the District reserves the right to repair damage to the District's System and/or Drainage Facility and appurtenances without prior notice, and to assess against Customer such costs, including attorneys' fees, and such penalties as are provided in this Order or otherwise provided by law or legally available to the District, in addition to those charges necessary to repair the portion of the System and/or Drainage Facility so damaged. 5.03. Obstructions. After a water meter has been set, the Customer shall at all times keep the area in, around and upon the meter and box and District easements and property under Customer's control free from rubbish or obstructions of any kind. Failure to keep the meter and box and District easements and property under Customer's control free from rubbish or obstructions may result in disconnection of water services and/or the assessment of charges necessary to remove said obstructions. Customers are prohibited from introducing material into -29- the District's sanitary sewer System which would cause obstruction of said System. In the event that an inspection by the District's Engineer or District's Operator reveals damage to the sanitary sewer System resulting from a Customer's failure to prevent obstructions from entering said System, the District reserves the right to immediately and without notice remove the obstruction. Any District costs for removal of obstructions, including the cleaning of grease traps or other pretreatment units, plus a District administration fee of fifty percent (50%) of said costs, shall be assessed to Customer. The District's Operator shall have rights of ingress and egress to Customer's property in order to carry out the provisions of this Section 5.03. 5.04. Storm Sewer System and Drainage Facility; Builder Responsibilities. The use of the storm sewer System within the District is limited solely to storm waters. No other liquids or solids, including but not limited to, draining from swimming pools or hot tubs, grass or yard clippings, trash, construction materials, oils or grease, shall be introduced into the storm sewer System or a Drainage Facility within the District. It shall be a violation of this Order to introduce unauthorized material, whether liquid or solid, into the storm sewer System within the District and the District reserves the right to assess such penalties as provided in this Order to any person, corporation, or other entity that makes such unauthorized use of the storm sewer System within the District. Section 6. Penalties for Violation, Attorney's Fees and Court Costs. Any person, corporation or other entity who: (1) violates any section of this Order or any order regulating waste heretofore or hereafter adopted by the District, including the Waste Order; or (2) makes unauthorized use of the System, a Drainage Facility or District services or facilities including any trespass onto District sites, including but not limited to, the site of a Drainage Facility; or (3) violates the District's Rules and Regulations Governing Sewer Lines and Sewer Connections or any other rules or regulations of the District; -30- shall be subject to a civil penalty of not less than $50.00, and in no event to exceed $10,000, for each breach of the foregoing provisions. Each day that a breach continues shall be considered a separate breach. The amount of any penalty levied by the District pursuant to this Section 6 shall be established by the District's Board of Directors after reasonable notice to the violator and a public hearing relative to such matter before the Board of Directors. Penalties levied under this Section 6 shall be in addition to such other penalties as are provided in this Order or any order regulating waste heretofore or hereafter adopted by the District, any other penalties provided under the laws of the State of Texas, and any other right of recovery that the District may have for damages or otherwise under applicable law. Notwithstanding the foregoing, in no event shall the District levy a penalty that is in excess of the jurisdictional limit of the justice court as provided by Section 27.031, Texas Government Code, as amended. In addition to the enforcement provisions set forth in this Order, the provisions of this Order, including any penalties levied hereunder, may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District's principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover reasonable fees for attorneys, expert witnesses and other costs incurred by the District before the court. The amount of attorney's fees shall be fixed by the court. Section 7. Appeal, Accuracy of Meters. Any determination by District's Operator or District's Engineer or authorized agent of the District or any dispute regarding the terms and provisions of this Order may be appealed to the Board of Directors of the District which shall conduct a hearing on the matter. All appeals shall either be submitted by Customer in writing or presented by Customer in person to the Board of Directors of the District at its regular meeting. In order to maintain service during the pendency of any such appeal in connection with fees or charges assessed hereunder, Customer shall pay all amounts, including service charges, penalties and other charges, due and payable to the District. Any amounts which are paid by the Customer and subsequently determined by the Board of Directors not to have been due shall be refunded to -31- the Customer or credited against future bills, at the discretion of the District. The District's Operator and/or attorney shall provide Customer with information regarding appeals and hearing procedures upon Customer's request. Section 8. Amendments. The District's Board of Directors has and specifically reserves the right to change, alter or amend any rate or provision of this Order at any time. Section 9. Severability. The provisions of this Order are severable, and if any provision or part of this Order or the application thereof to any person or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby. The President or Vice President is authorized to execute and the Secretary or Assistant Secretary is authorized to attest this Order on behalf of the Board and the District. [signature page follows] -32- Passed and adopted this 11 th day of May, 2015. ATTEST: Stephen H. Olson Secretary, Board of Directors (SEAL) 380699.1 Patsy T. Waldron President, Board of Directors EXHIBIT "A" Service Inspection Certification Form CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2 District Identification No. Location of Service I, upon inspection of the private water distribution facilities connected to the aforementioned public water supply do hereby certify that, to the best of my knowledge Non - Compliance Compliance (1) No direct connection between the public drinking water supply and a ❑ ❑ potential source of contamination exists. Potential sources of contamination are isolated from the public water system by an air gap or an appropriate backflow prevention assembly in accordance with TCEQ regulations and the provisions of the District's Rate Order. (2) No cross -connection between the public drinking water supply and a ❑ ❑ private water system exists. Where an actual air gap is not maintained between the public water supply and a private water supply, an approved reduced pressure -zone backflow prevention assembly is properly installed and a service agreement exists for annual inspection and testing by a certified backflow prevention device tester. (3) No connection exists which would allow the return of water used for ❑ ❑ condensing, cooling or industrial processes back to the public water supply. (4) No pipe, pipe fitting, plumbing fitting or fixture which contains more ❑ ❑ than a weighted average of 0.25 lead exists in private plumbing facilities installed on or after January 4, 2014. (5) No solder or flux which contains more than 0.2% lead exists in private ❑ ❑ plumbing facilities installed on or after July 1, 1988. I further certify that the following materials were used in the installation of the private water distribution facilities: Service line Lead ❑ Lead Free ❑ Copper ❑ PVC ❑ Other ❑ Solder Lead ❑ Lead Free ❑ Solvent Weld ❑ Other ❑ I recognize that this document shall become an official record of CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2 and that I am legally responsible for the validity of the information I have provided. Signature of Inspector Title Date 2 Registration Number Type of Registration EXHIBIT "B" Backflow Prevention Assembly Test and Maintenance Report The following form must be completed for each assembly tested. A signed and dated original must be submitted to the District for recordkeeping purposes. BACKFLOW PREVENTION ASSEMBLY TEST AND MAINTENANCE REPORT CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.2 DISTRICT IDENTIFICATION NO. MAILING ADDRESS:_ CONTACT PERSON: LOCATION OF SERVICE: The backflow prevention assembly detailed below has been tested and maintained as required by TCEQ regulations and is certified to be operating within acceptable parameters. TYPE OF ASSEMBLY ❑ Reduced Pressure Principle ❑ Reduced Pressure Principle -Detector ❑ Double Check Valve ❑ Double Check -Detector ❑ Pressure Vacuum Breaker ❑ Spill -Resistant Pressure Vacuum Breaker Manufacturer: Model Number: Serial Number: Size: Located At: Is the assembly installed in accordance with manufacturer recommendations and/or local codes?, Testing gauge used: Make/Model: SN: Calibration Date: Remarks: The above is certified to be true at the time of testing. Firm Name: _ Firm Address:_ Firm Phone No. Certified Tester: Cert. Tester No.: Date: 1 Reduced Pressure Principle Ass bly Pressure Vacuum Breaker Double Check Valve Assembly Air Inlet Check Valve 1st Check 2nd Check Opened at psid Did not O en ❑ psid Leaked ❑ Relief Valve Initial Test Held at _ psid Held at _ psid Opened at Closed Tight ❑ Closed Tight ❑ psid Leaked ❑ Leaked ❑ Did not open ❑ Repairs and Materials Used Test After Held at _ psid Held at psid Opened at Opened at psid psid Repair Closed Tight ❑ Closed Tight ❑ psid Testing gauge used: Make/Model: SN: Calibration Date: Remarks: The above is certified to be true at the time of testing. Firm Name: _ Firm Address:_ Firm Phone No. Certified Tester: Cert. Tester No.: Date: 1 Exhibit "D" ARTICLE III. - WATER SERVICE FOOTNOTE(S): --- (2) --- Cross reference— Plumbing code, § 18-461 et seq.; water in mobile home parks, § 58-144. State Law reference— Authority of city to operate waterworks and set rates, V.T.C.A., Local Government Code § 402.017. Sec. 98-55. - Utility upgrade surcharge. (a) A monthly utility upgrade surcharge of $15.00 shall be assessed and collected by the utility billing division for each lot within the Bay Oaks Harbor Subdivision (Amended), Blocks 2 through 10 inclusive, which receives utility services from the city. Such surcharge shall be expended by the city for repairs to the water and wastewater systems within such subdivision in order to meet the state commission on environmental quality's standards. (b) A monthly utility upgrade surcharge of $200.00 shall be assessed and collected by the utility billing division for the commercial recreational vehicle park located in the Bay Oaks Harbor Subdivision (Amended), Block 1, Reserves A, B and C inclusive, which receives utility services from the city. Such surcharge shall be expended by the city for repairs to the wastewater system within such subdivision in order to meet the state commission on environmental quality's standards. (Ord. No. 10,865, § 1, 3-27-08; Ord. No. 10,998, § 1, 10-23-08) Sec. 98-56. - Deposits and refunds. (a) Application for service. Whenever a consumer desires to establish service with the utility billing division, he shall tender to such division, at least one day prior to the time he desires his premises to be connected with the water services, the proper deposit. (b) Amount of deposit. (1) A residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $50.00 if he is the owner of the dwelling house; however, a residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $200.00 if he is not the owner of the dwelling house. (2) Commercial water deposits shall be determined by the utility billing supervisor. This deposit is to be generally comparable to two months' water service of a commercial business similar to the applicant. (3) Deposits for apartment houses, mobile parks or other multifamily dwelling projects shall be determined by the utility billing supervisor, but shall not be less per unit than the deposit required of single-family dwelling units. (c) Increase of deposits. Deposits for commercial consumers, apartment houses, mobile parks or other multifamily projects may be increased from time to time if it is determined by the utility billing supervisor that additional deposits are necessary in order to ensure payment of charges for water service. The additional deposit shall be tendered to the utility billing division within 30 days after notice of the increase in the deposit. Section 98-61 shall apply if the additional deposit is not tendered within 30 days. (d) Refunds. Deposits will be refunded upon termination of service, provided the consumer has fully satisfied all charges due the city. (e) Form of deposits. (1) Deposits of less than $500.00 shall be cash deposits in the form of cash, check or money order. (2) Deposits of $500.00 or more for commercial consumers, apartment houses, mobile home parks or other multifamily dwelling projects shall be by: a. Cash; b. Irrevocable bank letter of credit, provided that the irrevocable bank letter of credit shall be: 1. Drawn on an FDIC -insured bank located within Harris County or Chambers County, and 2. For a period of not less than one year; or c. An assignment of security, provided that any security pledged shall be: 1. Approved by the utility billing manager, and 2. Placed in an FDIC -insured bank located within Harris County or Chambers County; or d. A bond, provided that the bond shall be: 1. Issued by a surety licensed to do business in the state, 2. In a form approved by the city attorney, and 3. For a term of not less than one year. Deposits in any form allowed herein shall be maintained throughout the period during which the city provides utility service. As such, any deposit that is to expire prior to the termination of utility service shall be renewed prior to its expiration and proof of such renewal must be submitted to the city's utility billing manager. The remedies for nonpayment of utility bills specified in section 98-61 shall apply if a deposit is not renewed prior to its expiration. (Code 1967, § 31-54; Ord. No. 943, § 1, 11-7-68; Ord. No. 1479, § 1, 9-27-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 4948, § 1, 3-24- 88; Ord. No. 6005, § 1, 9-26-91; Ord. No. 8141, § 1, 11-25-97; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 11,646, § 1, 5-26-11) Sec. 98-57. - Tapping fees. (a) The following fees shall be assessed and collected by the utility billing division for water taps inside the city limits: (1) Three -fourths -inch, short side, water tap .....$550.00 (2) Three -fourths -inch, long side, water tap .....$650.00 (3) One -inch, short side, water tap .....$650.00 (4) One -inch, long side, water tap .....$750.00 (b) The following fees shall be assessed and collected by the utility billing division for water taps outside the city limits: (1) Three -fourths -inch, short side, water tap .....$700.00 (2) Three -fourths -inch, long side, water tap .....$800.00 (3) One -inch, short side, water tap .....$800.00 Page 2 (4) One -inch, long side, water tap .....$900.00 (c) All other taps and other special water connections shall be made at actual cost, as determined by the utility billing manager, with the consultation of the director of utilities. (d) If a person pays for a water tap and fails to have the tap made within one year from the date such tap fee is paid, the city shall not allow the water tap to be made unless the person requesting the tap pays such additional amount necessary to increase the original payment to the current cost of a water tap. (Code 1967, § 31-55; Ord. No. 943, § 1, 11-7-68; Ord. No. 1752, §§ 1, 2, 2-27-75; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2738, § 1, 9-27-79; Ord. No. 2974, § 1, 9-25-80; Ord. No. 3628, § 1, 5-26-83; Ord. No. 9226, § 1, 9-13-01; Ord. No. 9831, § 1, 7-8-04; Ord. No. 11,308, § 2, 2-25- 10) Sec. 98-58. - Service charge for turn on. If the city turns on a customer's water service at the request of the customer, the customer will be charged a service charge of $30.00. If the customer requests their existing service to be transferred, the fee will be $25.00. If an additional trip(s) is required to connect service, a $10.00 additional trip fee will be assessed per trip. (Code 1967, § 31-55.1; Ord. No. 2738, § 2, 9-27-79; Ord. No. 6005, § 5, 9-26-91; Ord. No. 11,308, § 3, 2-25-10) Sec. 98-59. - Rates. (a) Rate schedules. The following are the rate schedules for water service: Water Service—Rate Schedule Individually Metered Single -Family Residential Inside City Outside City Base Facility Charge: Per dwelling unit $7.53 $15.05 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): Up to 2,000 gallons per unit $2.57 $3.86 Page 3 Over 2,000-6,000 gallons per unit $5.60 $8.39 Over 6,000-12,000 gallons per unit $6.71 $10.09 Over 12,000-18,000 gallons per unit $8.74 $13.10 Use over 18,000 gallons per unit $11.36 $17.04 Water Service—Rate Schedule Multifamily Residential Master Meter Service Inside City Outside City Base Facility Charge: Per dwelling unit $7.53 $15.05 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): Up to 2,000 gallons per unit $2.60 $3.91 Over 2,000 gallons per unit $5.63 $8.45 Unit = Constructed, regardless of whether occupied. Water Service—Rate Schedule Nonresidential Service Inside City Outside City Page 4 Base Facility Charge: Per meter by meter size 5/8„ X %" Y411 1" 1%Z„ 2„ 3„ 4" 7.9 8„ 10" Customer Charge: Per bill issued Gallonage Charge (Per Thousand Gallons): All use Water Service—Rate Schedule High -Volume User Service Base Facility Charge: $7.53 $15.05 $11.31 $22.59 $18.83 $37.67 $37.67 $75.32 $60.26 $120.51 $120.51 $241.02 $188.31 $376.60 $376.60 $753.21 $602.56 $1,205.13 $866.20 $1,732.37 $3.62 $7.24 $5.60 $8.39 Page 5 Per meter by meter size 5/8" x %" $7.53 Customer Charge: Per bill issued $3.62 Gallonage Charge (Per Thousand Gallons): All use $4.13 Water Service—Rate Schedule Metered Irrigation Service Base Facility Charge: Inside City Outside City Page 6 $11.31 1" $18.83 1%z" $37.67 2'/ $60.26 3" $120.51 4" $188.31 6" $376.60 8" $602.56 10" $866.20 Customer Charge: Per bill issued $3.62 Gallonage Charge (Per Thousand Gallons): All use $4.13 Water Service—Rate Schedule Metered Irrigation Service Base Facility Charge: Inside City Outside City Page 6 Per meter by meter size 5/8" x W $7.53 $15.05 3/" $11.31 $22.59 1" $18.83 $37.67 1%" $37.67 $75.32 2" $60.26 $120.51 3" $120.51 $241.02 4" $188.31 $376.60 6" $376.60 $753.21 8" $602.56 $1,205.13 10" $866.20 $1,732.37 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): 5/8" x W Meter Up to 6,000 gallons $5.60 $8.39 Over 6,000-12,000 gallons $6.71 $10.09 Over 12,000-18,000 gallons $8.74 $13.10 Over 18,000 gallons $11.36 $17.04 W Meter Page 7 Up to 9,000 gallons $5.60 $8.39 Over 9,000-18,000 gallons $6.71 $10.09 Over 18,000-27,000 gallons $8.74 $13.10 Over 27,000 gallons $11.36 $17.04 1" Meter Up to 15,000 gallons $5.60 $8.39 Over 15,000-30,000 gallons $6.71 $10.09 Over 30,000-45,000 gallons $8.74 $13.10 Over 45,000 gallons $11.36 $17.04 1%:" Meter Up to 30,000 gallons $5.60 $8.39 Over 30,000-60,000 gallons $6.71 $10.09 Over 60,000-90,000 gallons $8.74 $13.10 Over 90,000 gallons $11.36 $17.04 2" Meter Up to 48,000 gallons $5.60 $8.39 Over 48,000-96,000 gallons $6.71 $10.09 v Over 96,000-144,000 gallons $8.74 $13.10 1 Over 144,000 gallons $11.36�� $17.04 t 3" Meter Page 8 Up to 96,000 gallons $5.60 $8.39 Over 96,000-192,000 gallons $6.71 $10.09 Over 192,000-288,000 gallons $8.74 $13.10 Over 288,000 gallons $11.36 $17.04 4" Meter Up to 150,000 gallons $5.60 $8.39 Over 150,000-300,000 gallons $6.71 $10.09 Over 300,000-450,000 gallons $8.74 $13.10 Over 450,000 gallons $11.36 $17.04 6" Meter Up to 300,000 gallons $5.60 $8.39 Over 300,000-600,000 gallons $6.71 $10.09 Over 600,000-900,000 gallons $8.74 $13.10 Over 900,000 gallons $11.36 $17.04 8" Meter Up to 480,000 gallons $5.60 $8.39 Over 480,000-960,000 gallons $6.71 $10.09 Over 960,000-1,440,000 gallons $8.74 $13.10 Over 1,440,000 gallons $11.36 $17.04 10" Meter Page 9 Up to 690,000 gallons Over 690,000-1,380,000 gallons Over 1,380,000-2,070,000 gallons Over 2,070,000 gallons (b) Residential dwelling units. $5.60 $8.39 $6.71 $10.09 $8.74 $13.10 $11.36 $17.04 (1) Individually metered units. Each residential dwelling unit individually metered and billed for the consumption of water shall be charged for and owe each month a water service charge based upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for individually metered single-family residential. (2) Jointly metered unit. The monthly water service charge for multifamily dwelling unit projects, with units not individually metered for water, shall be determined as follows: a. The total monthly water consumption for the project will be divided by the number of units in the project served by the meter; b. The per-unit water consumption will determine the applicable charge for each unit based upon the rate schedule in subsection (a) of this section for multifamily residential master meter service; and c. The applicable water service charge for each unit will be multiplied by the number of units in the project served by the meter to determine the monthly water service charge for the entire project. (c) Manufactured home parks. The monthly water service charge for manufactured home parks shall be determined as follows: (1) The total water consumption for the project will be divided by the actual number of rental spaces served to determine the per unit water consumption; (2) The per unit water consumption will determine the applicable water service charge for each space based upon the rate schedule in subsection (a) of this section for multifamily residential master meter service; and (3) The applicable charge for each space will be multiplied by the number of spaces in the project served by the meter to determine the monthly water service charge for the project. (d) Commercial units. (1) Individually metered units. Each commercial unit individually metered for the consumption of water shall be charged a monthly water service charge based the meter size and upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (2) Jointly metered units. The monthly water service charge for multiunit commercial projects, with units not individually metered for water, shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. Page 10 (e) Combinations of residential dwelling units and commercial units. The applicable monthly water service charge for a complex containing a combination of dwelling units and commercial units, with units not individually metered for water, shall be shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (f) Service for property outside the city. A person outside the city limits and authorized by the director of utilities to receive water service shall pay in accordance with subsection (a) of this section for the applicable service or any other amount as may be established and approved in writing by the city council pursuant to a water supply agreement. (g) Volume users. A user of water that: (1) Either: a. Is located within the corporate limits who qualifies for tax abatement under the city's tax abatement policy; or b. Is located within an established industrial district and has in effect an industrial district agreement with the city; and (2) Uses a minimum of 400,000 gallons of water per day, shall be billed a customer charge, a base charge based on meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for high-volume user service. The minimum usage shall be determined by dividing the total consumption during the billing period by the number of days in the billing period to determine the daily usage. Any user or customer who does not pay the amount due by the due date indicated on his statement shall be charged a late charge, as provided in section 98-61. (h) Recreational vehicle parks. The monthly water service charge for recreational vehicle parks shall be determined in accordance with subsection (d)(1) of this section as if it were a commercial unit individually metered. (Code 1967, § 31-56; Ord. No. 943, § 3,11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1351, §§ 1, 2, 1-25-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2426, § 1, 3-9-78; Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 3120, § 1, 4-9-81; Ord. No. 4548, § 1, 9-25-86; Ord. No. 5101, § 1, 9-22-88; Ord. No. 5645, § 1, 9-27-90; Ord. No. 6006, § 1, 9-26-91; Ord. No. 6349, § 1, 9-24-92; Ord. No. 6427, § 1, 11-12-92; Ord. No. 6777, § 1, 9-23-93; Ord. No. 6836, § 1, 10-10-93; Ord. No. 7097, § 1, 9-22-94; Ord. No. 7392, § 1, 9-14-95; Ord. No. 7622, § 1, 2-8- 96; Ord. No. 8061, § 1, 9-11-97; Ord. No. 8151, § 9,12-16-97; Ord. No. 8677, §§ 1, 2, 9-9-99; Ord. No. 9225, §§ 1, 2, 9-13-01; Ord. No. 9379, §§ 1, 2, 7-11-02; Ord. No. 9416, §§ 1, 2, 9-12- 02; Ord. No. 9629, §§ 1, 2, 9-25-03; Ord. No. 9854, § 2, 8-26-04; Ord. No. 9869, §§ 1-3, 9-9- 04; Ord. No. 10,158, §§ 1, 2, 9-27-05; Ord. No. 10,403, §§ 1, 2, 9-14-06; Ord. No. 10,704, §§ 1, 2, 9-13-07; Ord. No. 10,962, §§ 1, 2, 9-22-08; Ord. No. 11,308, § 4, 2-25-10; Ord. No. 11,494, § 1, 11-11-10; Ord. No. 11,717, § 1, 9-8-11; Ord. No. 12,331, § 1, 9-12-13; Ord. No. 12,624, § 1, 8-28-14) Sec. 98-60. - Flat -rate service prohibited, separate metering required. (a) No connections for flat -rate water service shall be allowed by the city waterworks system. (b) Every single-family dwelling house constructed in the city shall be separately metered for water service. This subsection shall apply to the remodeling or altering of any existing house, garage or other building where an additional family dwelling is to be added or where the cost of such remodeling or alteration exceeds 50 percent of the original cost of such house or building. (c) Each multi -unit residential establishment and each commercial establishment shall be either: Page 11 (1) Individually metered for water service or (2) Jointly metered for water service if the utility account is opened by and remains in the name of the owner of the property on which such establishment is located. All meters for multi -unit residential establishments and commercial establishments must be installed at the road right-of-way line. (d) If a multi -unit residential establishment or a commercial establishment is connected to the city system in a manner other than as prescribed in subsection (c) on October 29, 2009, the city, when it becomes aware of such condition, shall send notice by certified mail to the last known address of the owner of the property as recorded in the appraisal records of the appraisal district in which the property is located and, if known based upon a search of the city's utility records, to the tenant at the address listed on the city's utility records. A notice which the United States Postal Service returns as "refused" or "unclaimed" shall not affect the validity of the notice; and the notice shall be considered delivered seven days after mailing the same. Such notice shall be sufficient if it generally describes and gives notice that the establishment is connected in violation of this section and advises that violation must be corrected within 365 days after receipt of such notice. If new service or a change in service is requested during such 365 -day period, compliance with subsection (c) shall be required in order to reestablish water service. (e) Any person who shall violate this section shall, upon conviction, be punished as provided in section 1-14. (Code 1967, § 31-57; Ord. No. 943, § 4,11-7-68; Ord. No. 2328, § 1, 10-13-77; Ord. No. 11,224, § 1, 10-19-09) Sec. 98-61. - Billing; payment; late charge; discontinuance of service. (a) Water meters shall be read monthly and each customer shall be billed monthly. Each water bill shall have a precalculated and stated due date, which shall be approximately 14 days from the day the bill is to be mailed. If a water account is not paid by the due date, the customer shall be charged a late charge in the amount of ten percent of the amount of the water charge, which shall be shown as the gross amount on the bill. If the gross amount is not paid within 12 days after the indicated due and payable date, the city reserves the right to terminate water service as provided in subsection 98-62(i) and shall not restore service until the charges are paid, including reconnect charges. (b) The provisions of subsection (a) of this section pertaining to a late charge of ten percent for the late payment of water bills shall not apply to political subdivisions organized under state law or to official public agencies or either the federal or state government. (Code 1967, § 31-58; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1081, § 1, 3-25-71; Ord. No. 2328, § 1, 10-13-77; Ord. No. 4459, § 1, 5-22-86) Sec. 98-62. - Procedures and remedies for nonpayment of bills. (a) If any person shall permit any waste or use of water contrary to law, the city reserves the right to cut off and discontinue water service until all past due charges have been paid and any required deposit has been made and further until any and all objectionable conditions pertaining to the waste or use of water have been corrected to the satisfaction of the director of finance. (b) If the water meter has been turned off for nonpayment of charges for water services and it is turned on again by anyone other than authorized personnel a $35.00 broken lock fee will be assessed. If it becomes necessary to pull the meter, an additional $65.00 pull meter fee will be added to the account. If when, in the opinion of the utility billing manager, the turning off of the water at the curb stop or removal of the meter or the locking of the curb stop is not sufficient protection for the city Page 12 against the use of water, waste or misuse of water, the utility billing manager may cause the water to be cut off and the service line to be cut and plugged. If the meter technicians have to pull an illegal "straight line," the police will be called and a $185.00 pull straight line fee assessed. Upon a reapplication for water service all applicable fees and unauthorized consumption must be paid. (c) If the water meter has been turned off for nonpayment of charges for water or sanitary sewer services and the customer has complied with the requirements of the city and is entitled to have the water turned on again, the following reconnection charges will be made, as applicable: (1) If the service is to be reconnected at the customer's request between the hours of 8:00 a.m. and 5:00 p.m. of any weekday from Monday through Friday, except holidays authorized by the city council for city employees, there is no additional charge; or (2) If the customer requests that service be reconnected at any other time than that stated in subsection (c)(1) of this section, the charge will be $50.00. (d) If any person gives the city a check for the payment of water services that is not honored by the drawee bank for any reason or an automatic bank withdrawal is returned unpaid, the city reserves the right to cut off and discontinue water service until all charges due have been paid, including, but not limited to, the processing fee established in section 2-619 of this Code. (e) If any person damages or destroys any city property used for measuring or distributing water, the director of finance shall collect from such person a sum equal to such destroyed or damaged property, but not less than $10.00. A $35.00 service charge will also be assessed to make the needed repairs. (f) Customers may request their meters be reread once a year at no charge. Subsequent requests will be assessed a $10.00 reread meter fee, if the reading is accurate. If the reading is incorrect, no fee will be assessed and the account will be adjusted to reflect the correct reading. If any person requests that his water meter be tested, the city utility billing division shall test the meter. If the meter test shows that the meter registers more water than actually consumed, the last bill shall be corrected according to the test result, and the meter shall be repaired or replaced. If the meter test shows that the meter correctly registers or registers less water than actually consumed, the customer shall be charged a meter test fee. The meter test fee for five -eighths -inch and one -inch meters is $25.00. Meter tests for meters larger than one inch will be billed actual cost. (g) Any or all of the charges and fees provided by this section may be included in the regular or special billing of the city utility billing division and shall be in addition to all other charges or fees provided by this article. (h) It shall be unlawful for any person to hinder or interfere with any utility billing division employee or agent who is delivering water termination notices pursuant to subsection (i)(2) of this section. It shall further be unlawful for any person, other than an occupant of the premises to which notice is delivered, to remove a water termination notice delivered by the utility billing division from any premises to which the utility billing division delivered that notice. Nonemergency termination. (1) Generally. Whenever the city is authorized to terminate a customer's water services against that customer's consent and under this section or whenever the city otherwise terminates water services to a customer in a nonemergency situation other than by the customer's request, the city shall first provide notice in the form and manner described in this subsection to the customer and shall afford the customer an opportunity for a hearing in the form and manner described in this subsection before the termination of the services. If, after the city has complied with the notice requirements as described in this subsection, the customer does not request a hearing for review of the termination within the specified time, the city may terminate water services to the customer on the day and at the time specified in the notice to the customer or within five calendar days thereafter. Any time elapsing after the declared termination date, the elapsing of which is due to the pendency of a hearing or the extension of time granted pursuant to a hearing, shall not be considered when calculating the five days in which the city may terminate water after a declared termination date. Page 13 (2) Notice. Notice must be sent to a water customer at least eight days prior to the proposed termination date of the services to that customer if notice is sent by mail, or at least five days prior to termination if notice is delivered by the utility billing division. The notice may be incorporated into the customer's monthly bill, sent by certified letter, or hand delivered to the customer by a utility billing division employee or other person designated by the city to deliver such notices. The notice must be written and clearly communicate the following information: a. The name of the customer whose service is proposed to be terminated; b. The address where service is proposed to be terminated; c. The reason for the proposed termination, including the amount of delinquency, if nonpayment of charges is the reason for termination; d. The day and time on which the water service will be terminated, unless conditions bringing about the termination are sooner remedied; e. The customer has the right to appear and be heard at a hearing to contest the proposed termination prior to the date of termination; f. The means by which the customer may arrange for such a hearing; and g. The date by which the customer must request and set the hearing in order to receive it, which deadline may be no earlier than one day prior to the termination date, nor may that deadline ever be sooner than five days from the date of sending the notice, the five days not including weekdays on which city offices are closed or holidays. (3) Affidavit of failure to receive notice. After the deadline for requesting a hearing, as described in subsection (i)(2)g of this section, has passed, a customer may still request a hearing to review the decision to terminate the customer's water service within ten days of the deadline upon presentation to the city manager of an affidavit declaring that the customer, through no fault of that customer, did not receive notice of termination in time to act upon the notice. When a hearing pursuant to this subsection is requested, the city manager shall as soon as practicable make a determination of whether the appeal appears to be meritorious, and if the city manager finds it is meritorious the city manager shall order the continuation or restoration of services pending the appeal. If the hearing officer finds in favor of the customer, the hearing officer may order restoration of service. (4) Notice to tenants. If the customer to whom water service is proposed to be terminated is a landlord who supplies water services to tenant water users, the city shall attempt to give notice to the tenant water users pursuant to subsection (i)(2) of this section. (5) Hearing. If any customer requests a hearing to review the decision to terminate that customer's water services, the hearing shall be presided over by the city manager or any fair and neutral person he may appoint, which person must be of managerial employment and not involved in the original decision to terminate services, in this context known as the hearing officer. The hearing shall be held no sooner than the next business day or later than 15 business days after being requested by the customer. The hearing officer may in his discretion delay or advance the hearing time upon showing of good cause by the customer. At the hearing the customer shall be given the opportunity to be heard in person to present the customer's case, to present testimony from other persons and to admit documents. The customer may be represented by counsel, though the city shall not provide counsel to the customer. The customer shall be given the opportunity to confront and cross examine any witnesses appearing against him at the hearing. The customer may request that a representative of the utility billing division be present at the hearing and be subject to questioning. However, the rules of evidence or procedure for civil or criminal trials need not be enforced. The city's reasons for terminating the customer's water service shall be stated at the hearing. Upon reaching a final decision, the hearing officer shall state his reasons for reaching that decision and shall state the evidence on which the hearing officer relied in reaching those conclusions. If the hearing officer finds in favor of the customer, the customer's water service shall continue. If the hearing officer finds against the customer, the Page 14 customer's water service shall be terminated. The hearing officer shall have the power to grant extensions, modify billings and fashion other reliefs as would be equitable. (j) When the water meter has been turned off for nonpayment of charges for water service, sanitary sewer service, garbage collection service or if the water meter has been turned off for payment of utility services with a check that is not honored by the drawee bank for any reason, a cutoff fee will be charged in the amount of $35.00. Nonresidential customers whose doors are tagged prior to disconnection will be assessed a $25.00 tag door fee. When it is necessary to tag tenant's doors of a multifamily residential development prior to disconnection, a $100.00 tag apartments fee will be imposed. (Code 1967, § 31-59; Ord. No. 943, § 6,11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 2328, § 1, 10-13-77; Ord. No. 3628, § 3, 5-26-83; Ord. No. 3966, § 1, 10-11-84; Ord. No. 4458, § 1, 5- 22-86; Ord. No. 6005, §§ 2, 3, 9-26-91; Ord. No. 10,366, § 3, 7-26-06; Ord. No. 10,366, § 3, 7- 27-06; Ord. No. 11,308, § 5, 2-25-10) Sec. 98-63. - Metering water bypassing sewer system. (a) Any commercial, industrial, multiunit, public utility or public school owning or having control of property on which there is located one or more facilities requiring water and such water provided to any one or more of such facilities is not discharged into the city sanitary sewer system may, at the owner's own expense, have installed by the city a water meter of a type and design and at a location approved by the director of utilities. (b) Any facility that does not discharge into the city's sewer system when the water is furnished by the city's water system shall be metered by a city water meter connected to a separate service line from the city water main and located in the utility easement, upon the making of application therefor by the owner of such property and making the required deposits and paying the cost of meter installation and tap fees provided for by this article. Such meter shall be read by the city's meter readers and will be subject to the established water rates and charges of the city the same as any other metered water connection to a city main. (c) No person shall be allowed to disconnect a water meter that meters a facility not discharging into the city's sanitary sewer system as stated in this section and then reconnect such meter to the city's water system within a 12 -month period. (d) Any person representing to the city that the facility for which a meter is installed, under this section, does not discharge waste into the city's sanitary sewer system when in fact it does or any person having facilities for which such a meter is installed who subsequently connects such facility to the city's sanitary sewer system without notifying the director of utilities shall be punishable as provided in section 1-14. (Code 1967, § 31-61; Ord. No. 3317, § 1, 2-11-82) Sec. 98-64. - Study to determine charge when portion of water bypasses sewer. (a) This section shall apply to those water users stated in section 98-63 who have facilities connected to the city sanitary sewer system and who make application to the director of utilities under this section. (b) Any water user owning or having control of property on which there is located one or more facilities requiring water and such water provided to any such facility is not discharged into the city sanitary sewer system may make application to the director of utilities requesting that a study of the applicant's property and facilities be made for the purpose stated in this section and paying the fee required in this section. Page 15 (c) Requests for service under this section shall be made to the director of utilities. The applicant shall furnish all the information and other matters requested therein. The fee for making any study under this section shall be $35.00. No fee shall be required for studies initiated by the director of utilities subsequent to the first application. The fee is to reimburse the city for the expense of making the study. Each applicant shall agree, as a condition precedent to the director of utilities conducting the study and tests provided for in this section, including those initiated by the director of utilities, to indemnify and hold harmless the city from any and all such liability for any act or omission by the city, its agents and employees committed while conducting the studies and tests, causing or resulting in damages to the property or person of the applicant, his agents, employees and invitees. (d) Upon receipt of a request and the fee required in this section, the director of utilities will, as soon as possible, make a study of the applicant's property and facilities. When, in the opinion of the director of utilities, based upon a study of the property and facilities of the applicant, it is impractical or unfeasible for the applicant to install one or more meters to measure the amount of water passing through the water meter serving such property and not being discharged into the city sanitary sewers, the director of utilities is authorized to deny such request. (e) The director of utilities is authorized, at his discretion or on written request from an applicant, to make such additional studies from time to time of any such property and facilities to check the current accuracy of the filed study on any such property, and a new study based upon the latest available data shall be filed with the director of utilities to replace the prior one. No change in the basis of computing the sewer service charge for any property will be made until the first billing date after the filing by the director of utilities of the first or any subsequent report. Requests by an applicant for a restudy under this subsection will not be accepted or acted on more often than once in every 12 -month period (annually) subsequent to the filing of the first report on the applicant's property. (f) If it is necessary that certain testing instruments be installed or that existing equipment or facilities located on the applicant's property be altered, adjusted, disconnected or temporarily moved in order to facilitate the making of an engineering study or test under this section, all of such shall be done by and at the expense of the applicant. (Code 1967, § 31-62; Ord. No. 3317, § 1, 2-11-82) Sec. 98-65. - Liens. (a) Water. Liens for unpaid water charges shall be filed according to the following: (1) After the city has terminated a customer's water pursuant to subsection 98-62(i) or after the city terminates water service at the customer's request, the supervisor of the utility billing division shall file a lien on the property served by the terminated water service and in the amount the customer whose service was terminated owed to the city for water service at the time of the termination of services. (2) If a property receives water services illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property in the amount of the proper charge for the water actually used or, if there is no way of determining the amount of water used, in the amount of the minimum monthly water charge that would have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such water services. (b) Garbage collection. Liens for unpaid garbage collection service shall be filed as follows: (1) After the city has terminated a customer's water service pursuant to subsection 98-59(i) or after the city terminates water service or garbage service at the customer's request or after a customer without water service becomes more than $50.00 delinquent for garbage service alone, the supervisor of the utility billing division shall file a lien on the property serviced by Page 16 garbage collection service and in the amount the customer whose service was terminated owed to the city for garbage collection service at the time of the termination of services. (2) If a property receives garbage collection services illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property in the amount of the minimum monthly garbage collection charge that would have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such garbage collection services. (c) Sewer service. Liens for unpaid sewer service shall be filed as follows: (1) After the city has terminated a customer's water service pursuant to subsection 98-62(i) or after the city terminates water service or sewer service at the customer's request or after a customer without water service becomes more than $50.00 delinquent in payment for sewer charges alone to the city, the supervisor of the utility billing division shall file a lien on the property served by the water service and in the amount the customer whose service was terminated owed to the city for sewer service at the time of the termination of services or the accumulation of the delinquency in payment for sewer services. (2) If a property receives sewer services illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property in the amount of the minimum monthly sewer charge that would be have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such sewer services. (d) Exemptions. No lien for water charges, garbage collection charges, or sewer charges shall be placed on a property if: (1) A customer owes less than $50.00 for the aggregate sum of water charges, garbage collection charges and sewer charges; (2) The customer is not delinquent in payment for water charges, garbage collection charges, or sewer charges; (3) The city knows the property to be a homestead as defined by the state constitution; or (4) The city knows the property to be a single-family dwelling house and the delinquent water charges, garbage collection charges, or sewer charges to be for services provided to a residential consumer who is not the owner of the property. (e) Filing procedures. Any lien authorized by this section shall be filed with the county clerk or with the county clerk of the county in which the property to which the lien will be attached is located. The city shall then have a privileged lien on as many lots or pieces of property as the terminated services previously served and are described on the lien instrument by metes and bounds or by city lot and block description or by any other adequate description. The lien shall secure the charges made by the city for the services rendered to that property. Such a lien shall be filed pursuant to the authority granted in Vernon's Ann. Civ. St. art. 1175, § 11; V.T.C.A., Local Government Code §§ 51.072 and 402.017; and state constitution article XI, section 5. The lien shall bear interest at a rate of ten percent per annum. The supervisor of the utility billing division shall add to any lien filed pursuant to this section that amount of the filing fee charged by the county clerk for filing that lien. The lien shall be effective against that property if the account holder or user of services at that property was either the owner of that property, a tenant of that property or a permissive holder of that property or an adverse possessor of that property. For any charges for which the lien authorized by this section is designed to secure, suit may be instituted and recovery in the foreclosure of that lien may be had in the name of the city. The city attorney is authorized to file such suits in a state court of competent jurisdiction. (f) Notice and hearing. After the filing of a lien pursuant to this section, the supervisor of the utility billing division shall within 30 days of the filing of that lien give the owner of that property and the account holder notice that such a lien has been filed on that property and shall inform the owner and account holder of their rights of appeal. Within 30 days of the postmark of the notice sent to the property Page 17 owner or account holder, the property owner or account holder may appeal the decision to impose the lien on that property to the city manager or any fair and impartial person whom the city manager may designate. The city manager shall authorize the release of the lien if the property owner or account holder shows that no bill for the services to this property encumbered by the lien is owing or if the property owner shows that the encumbered property is and at all times, from the hour of filing of the lien until the time of the appeal, has been a homestead as defined by the state constitution. The city manager may modify or release the lien to reflect the true amount of delinquency in payment for services to the property if the owner or account holder demonstrates that a lesser bill is owing than the lien alleged or if the supervisor of the utility billing division cannot show that all the lien alleged is owing. The person last listed on the tax records of the county in which the property is located as being the owner of any given piece of property shall be presumed to be the owner for purposes of this subsection, and the address listed for the owner on the tax records shall be presumed to be the address of the owner. (g) Reconnection of services. No water, garbage or sewer services shall be provided to property encumbered by a lien filed pursuant to this section, except as otherwise required by V.T.C.A., Local Government Code § 552.0025. Notwithstanding this prohibition, the supervisor of the utility billing division shall be authorized to reconnect water, garbage and wastewater services if the customer agrees in writing to pay the accrued water and wastewater charges for such property in accordance with a payment schedule acceptable to the supervisor of the utility billing division and the customer also agrees to pay all current and future water and wastewater charges as they come due. (h) Release. Whenever a person pays all principal, interest and the filing fee of a lien validly filed pursuant to this section, the supervisor of the utility billing division shall execute a release of that lien and surrender it to the paying party. The release shall be prepared and approved as to form by the city attorney and shall be duly notarized. The city shall not be responsible for filing that release. (i) Effect of section. This section is cumulative of any other remedies, methods of collection or security available to the city under the Charter and city ordinances or under state law. (Code 1967, § 31-63; Ord. No. 6005, § 4, 9-26-91; Ord. No. 11,624, § 1, 4-14-11; Ord. No. 11,646, §§ 2---4, 5-26-11; Ord. No. 11,893, § 1, 3-8-12) Secs. 98-66-98-89. - Reserved. Page 18 Exhibit "E" ARTICLE IV. - SEWER SERVICE FOOTNOTE(S): --- (3) --- Cross reference— Plumbing code, § 18-461 et seq.; maintenance of private sewer lines, § 42-63; sewage and mobile home parks, § 58-145. Sec. 98-90. - Plumbing connections to sewer lines. All plumbing fixtures installed within a structure, whether residential or nonresidential, shall be connected to sewer lines that discharge into a public sewer system if such line lies within 300 feet of other approved means of disposal. Plumbing fixtures not connected to a public sewer system shall be connected to an approved sewage disposal system. Such private sewage disposal system shall be constructed and repairs or additions made in accordance with the applicable regulations of the city. No sewage from a plumbing system shall be discharged into state waters, unless specially approved by the authority having jurisdiction in accordance with state law. (Ord. No. 11,803, § 18, 11-21-11) Sec. 98-91. - Sewer service charge. (a) Residential dwelling units. The sewer service charge for residential dwelling units shall be as follows: (1) Individually metered for water consumption. Each residential dwelling unit individually metered and billed for the consumption of water shall be charged for and shall owe each month a sewer service charge based upon the consumption of water attributed to it as determined by article III of this chapter relating to water charges, applied to the following usage and the rate schedule for sewer service: Wastewater Service—Rate Schedule Individually Metered Single -Family Residential Inside City Outside City Base Facility Charge: Per dwelling unit $7.53 $15.05 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): Up to 2,000 gallons per unit Over 2,000-12,000 gallons per unit Over 12,000 gallons per unit $2.60 $5.63 No charge $3.91 $8.45 No charge (2) Jointly metered for water consumption. Multifamily dwelling unit projects not individually metered for water shall be charged for and shall owe each month a sanitary sewer charge based upon consumption of water attributed to it as determined by article III of this chapter relating to water charges applied to the following usage and the rate schedule for sewer service: Wastewater Service—Rate Schedule Multifamily Residential Master Meter Service Base Facility Charge: Per dwelling unit Customer Charge: Per bill issued Gallonage Charge (Per Thousand Gallons): Up to 2,000 gallons per unit Inside City $7.53 $3.62 $2.60 Over 2,000 gallons per unit $5.63 Unit = Constructed, regardless of whether occupied. Outside City $15.05 $7.24 $3.91 $8.45 (b) Commercial units. Each commercial unit shall be charged for and shall owe each month a sanitary sewer service charge based upon the consumption of water attributed to it, applied to the following usage and the rate schedule for sewer service: Wastewater Service—Rate Schedule Nonresidential Service Page 2 Inside City Outside City Base Facility Charge: Per meter by meter size 5/8" x W $7.53 $15.05 %" $11.31 $22.59 1" $18.83 $37.67 1%z" $37.67 $75.32 2" $60.26 $120.51 3" $120.51 $241.02 4" $188.31 $376.60 6" $376.60 $753.21 8" $602.56 $1,205.13 10" $866.20 $1,732.37 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): All use $5.63 $8.45 (c) Manufactured home parks. Manufactured home parks shall be charged for and owe a sanitary sewer service charge based upon consumption of water attributed to it as determined by article Ill of this chapter relating to water charges applied to the following usage and the rate schedule for sewer service: Page 3 Wastewater Service—Rate Schedule Multifamily Residential Master Meter Service Inside City Outside City Base Facility Charge: Per dwelling unit $7.53 $15.05 Customer Charge: Per bill issued $3.62 $7.24 Gallonage Charge (Per Thousand Gallons): Up to 2,000 gallons per unit $2.60 $3.91 Over 2,000 gallons per unit $5.63 $8.45 Unit = Total spaces, regardless of whether occupied. (d) Volume users. A sanitary sewer service customer within the corporate limits who (i) qualifies for a tax abatement under the city's tax abatement policy and (ii) uses more than 400,000 gallons of water per day shall be charged and shall owe each month a sewer service charge based upon (i) the consumption of water attributed to it as determined by article III of this chapter relating to water charges; or (ii) the actual wastewater flow as determined by a metering system approved by the city. Such charges shall be applied as follows: Wastewater Service—Rate Schedule High -Volume User Service With City Without City Water Service Water Service Base Facility Charge: Per meter by meter size 5/8" x 3/" $7.53 $7.84 3/" $11.31 $11.74 Page 4 1" $18.83 $19.58 1 2 $37.67 $39.17 2" $60.26 $62.66 3" $120.51 $125.32 4" $188.31 $195.84 6" $376.60 $391.66 8" $602.56 $626.66 10" $866.20 $900.84 Customer Charge: Per bill issued $3.62 $3.77 Gallonage Charge (Per Thousand Gallons): All use $4.17 $4.32 (Code 1967, § 31-65; Ord. No. 944, § 2,11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1465, §§ 1, 2, 9-13-73; Ord. No. 1668, §§ 1, 2, 9-26-74; Ord. No. 2550, § 1, 9-28-78; Ord. No. 2738, § 3, 9-27-79; Ord. No. 2974, § 2, 9-25-80; Ord. No. 3680, § 1, 9-22-83; Ord. No. 4548, § 2, 9-25- 86; Ord. No. 5644, §§ 1, 2, 9-27-90; Ord. No. 6006, § 2, 9-26-91; Ord. No. 6349, § 2, 9-24-92; Ord. No. 6777, §§ 2, 3, 9-23-93; Ord. No. 7097, § 2, 9-22-94; Ord. No. 7392, § 2, 9-14-95; Ord. No. 8061, § 2, 9-11-97; Ord. No. 8151, § 10, 12-16-97; Ord. No. 8677, §§ 3,4,9-9-99; Ord. No. 9225, §§ 3, 4, 9-13-01; Ord. No. 9416, §§ 3, 4, 9-12-02; Ord. No. 9629, §§ 3, 4, 9-25-03; Ord. No. 9869, §§ 4, 5, 9-9-04; Ord. No. 10,158, §§ 3, 4,9-27-05; Ord. No. 10,403, §§ 3-5, 9-14-06; Ord. No. 10,704, §§ 3, 4, 9-13-07; Ord. No. 10,962, §§ 3-5, 9-22-08; Ord. No. 11,308, § 6, 2- 25-10; Ord. No. 11,494, § 2, 11-11-10; Ord. No. 11,717, § 2, 9-8-11; Ord. No. 12,331, § 2, 9-12- 13; Ord. No. 12,624, § 2, 8-28-14) Sec. 98-92. - Charge for users without water or outside city. Page 5 (a) Users without water. A person not connected to the city waterworks system shall be billed monthly by the utility billing division for sanitary sewer services at a rate determined by the utility billing supervisor, which rate shall be consistent with the regular sewer service charge of similar type premises or users receiving service from the city. If a person desiring service uses water or maintains premises in such a manner that a similar type user or premises cannot be found, the utility billing supervisor may recommend for approval to the city council such service charge and conditions as he deems appropriate. (b) Users outside city limits. (1) A person outside the city limits and authorized by the director of utilities to receive sewer service from the city shall pay a monthly sewer service charge equal to: a. The sum of: 1. Two times the city's minimum monthly rate for users within the corporate limits and 2. One and one-half times the rate for any additional usage charged to a user situated within the corporate limits, except that the maximum charge specified in subsection 98-91(b)(1) shall not be applicable; or b. Any other amount as may be otherwise established and approved in writing by the city council pursuant to a wastewater disposal agreement. (2) A person outside the city limits and not connected to the city waterworks system shall be billed monthly by the utility billing division for sanitary sewer services at a rate determined by the utility billing supervisor that produces a charge of twice the city's minimum charge and 1'/z times the rate for additional charges, such charges to be based upon the regular sewer service charge of similar type premises or users receiving service from the city within the city limits, except that the maximum charge specified in subsection 98-91(b)(1) shall not be applicable. (Code 1967, § 31-65.1; Ord. No. 2209, § 1, 4-14-77; Ord. No. 2426, § 2, 3-9-78; Ord. No. 3824, § 1, 4-12-84; Ord. No. 6836, § 2, 10-10-93; Ord. No. 7622, § 2, 2-8-96; Ord. No. 9869, § 6, 9-9- 04; Ord. No. 10,704, § 5, 9-13-07) Sec. 98-93. - Billing; payment; penalty; discontinuance of service. (a) For convenience of collection, the sewer service charge shall be added to the monthly water bills prepared by or for the city, and collection of the charge shall be made by the utility billing division at the time of payment of the monthly water bill covering service to a residence, apartment project, business or other enterprise of whatsoever nature. Employees or agents of the city shall not accept payment of the water bill from any such owner, occupant, tenant or lessee without collecting the full amount of the bill, including the sanitary sewer service charge. (b) If the sewer service charge is not paid by the due date shown on the customer's water bill, the customer shall be charged a late charge in the amount of ten percent of the amount of such sewer charge, which shall be shown as the gross amount on such bill; if not paid by the next billing date, such gross amount will be shown in arrears on the customer's bill for the next month following. If the total amount of the following month's sanitary sewer charges, including arrears and current sanitary sewer service, is not paid by the due date specified on such month's bill, ten percent of the following month's sewer service charge shall be added as a late charge, and the total of the two months' charges will then be in arrears. A notice will be sent to a customer showing the total amount due and specifying a cutoff date for the discontinuance of water service or sewer service. If the account is not paid in full by such cutoff date, the city shall reserve the right to cut off and discontinue water service and sewer service until all past due charges have been paid, together with applicable reconnection charges. (c) A person not connected to the city waterworks system and not owing water service charges will be billed by the utility billing division for sanitary sewer services on an individual basis. Page 6 (Code 1967, § 31-66; Ord. No. 944, § 3, 11-7-68; Ord. No. 1015, § 1, 2-12-70) Sec. 98-94. - Tapping fees. (a) The utility billing division shall assess and collect a sewer tap fee of $600.00 for a short side sewer tap and $650.00 for a long side sewer tap for each and every four -inch sewer tap made within the city limits. All other taps (six inches and larger) and other special connections shall be made by a plumbing contractor or, at the city's option, at the estimated actual cost as determined by the utility billing manager with consultation of the director of utilities. (b) The owner may, at his option and expense, have any four -inch sewer tap made by a licensed master plumber. A sewer tap permit shall be obtained by application with the plumbing inspector. No fee will be charged by the city for such a sewer tap. The sewer tap is subject to inspection by the plumbing inspector and must be constructed according to the city engineer's specifications for sewer taps. (c) Any person who taps a sewer line without a permit or in violation of this section shall be punished as provided in section 1-14. (d) If a person pays for a sewer tap and fails to have the tap made within one year from the date such tap fee is paid, the city shall not allow the sewer tap to be made unless the person requesting the tap pays such additional amount necessary to increase the original payment to the current cost of a sewer tap. (Code 1967, § 31-67; Ord. No. 944, § 5, 11-7-68; Ord. No. 1015, § 3, 2-12-70; Ord. No. 1752, §§ 3, 4,2-27-75; Ord. No. 2061, § 1, 8-12-76; Ord. No. 2356, § 1, 10-27-77; Ord. No. 2738, § 3, 9-27-79; Ord. No. 2974, § 2, 9-25-80; Ord. No. 3628, § 2, 5-26-83; Ord. No. 5644, § 3, 9-27-90; Ord. No. 9226, § 2, 9-13-01; Ord. No. 11,308, § 7, 2-25-10) Sec. 98-95. - Water bypassing sewer system. A person shall not be charged for sewer service based on water consumption, as delineated in this article, where such user has a facility not discharging into the city's sanitary sewer system and metered under sections 98-63 and 98-64. (Code 1967, § 31-68; Ord. No. 3317, § 2, 2-11-82) Secs. 98-96-98-125. - Reserved. Page 7 Exhibit "i=" ' • Td11� d� -f• � 0 i i AMENDATORY CONTRACT BETWEEN SAN JACINTO RIVER AUTHORITY AND s THE CITY OF HOUSTON. TEXAS THE STATE OF TEXAS COUNTY OF HARRIS THIS CONTRACT executed as of the.,? day ofugesm� 1976, by and between the SAN JACINTO RIVER AUTHORITY. ("SJRA") a conservation and reclamation district and political subdivision of the State of Texas. and the CITY OF HOUSTON. TEXAS, ("the City") a municipal corporation: • 1. - The provisions of Section VII of the contract between the• shall have no application to sales parties dated March 27. 1944. of Trinity River raw water by the City to the Baytown Area Water Authority ("BAWA"), a municipal corporation created by Ch. 600. p. 641. Sixty -Third legislature, Regular Session. 1973. for the limited purpose of treating and selling the same as potable treated ' water to the City of Baytown and other local governmental entities - for distribution through the municipal water systems of such, local governmental entities. such water to be used for municipal purposes. as defined by Rule 129.01.15001-.041. promulgated by the Texas Water Rights Comission-IM December 1. 1975, and for no other pur- poses, and only within the boundaries of BAWA as such boundaries &mist on the date of this contract; PROVIDED, that no such water shall be sold. distributed or used other than for residential household and other strictly domestic purposes within the area bounded by Interstate Highway No. 10 on the north. Sjolander Road on the vcst. Archer Road 0:1 the south; and Ceoar Bayou on the east, without written consent of SJRA. - 2. The City shall insure that all instruments relating to the sale of water to BAWA include appropriate covenants on . t � to observe the limitations and restrictions the part of BAWA imposed on the City by the contract dated March 27, 1944, as . modified by this contracts and to include covenants in all " sales and contracts for the sale of Water by BAWA insuring compliance with such restrictions and limitations. The word- ing of the covenants giving effect to such restrictions and limitations shall be submitted to the General Manager of the SJRA for approval as to conformity to this paragraph prior to any sale by the City subject to this contract. The City shall be responsible for the enforcement of such covenants, but they sha21 also be enforceable by SJRA directly. 3. In the event any water delivered by the City to BAWA under this contract is used in violation of such restrictions or limitstions, SJRA shall be entitled to recover from the City as liquidated.damages an amount equal to seventy-five percent (75%) of the consideration or revenue received by the ated amount distributed, sold or used in City for the estim violation of such restrictions or limitations, plus all liti- gation expenses and reasonable attorney's fees. The recovery of such liquidated damages shall be in addition to all other remedies available to SJRA. 4. In consideration of the foregoing limited waiver by SJRA of the restrictions and limitations imposed by the contract dated March 27, 1944, the City shall pay to the SJRA an amount equal to $50 per day during such period that the City receives payment from SAWA for water sold under this waiver. but suit. pa)W-nts .to SJR:+ sull not extend beyond a period of 20 years. Payment shall be made on a quarterly bast. on or before the 10th day of the month following each calendar quarter. -2. The contract shall not be assignable by either party withoutthe written consent of the other; however the obligations imposed. hereunder shall be binding on their successors or assigns The waiver provided herein shall be applicable only to sales by the City to BAWA and shall not be applicable to any sale by the City to any other entity. including any successors or assigner entity to BAWA, without the written consent of SJRA. 6. _ Except as amended by this contract and the contracts between the parties dated July 19, 1955, May 9. 1968 and the contract dated September 1, 1971, the provisions of the.Harch 27, 1944, contract shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto, acting under the. authority of their respective governing bodies have caused this contract to be executed on this >P -,day of 197E in duplicate originals. each of which shall constitute an original SAN JACINTO RIVER AUTHORITY ATTEST: By • ic�-r nt ecretary CITY OF HOUSTON WATTEST: By aa -r By ty ecretary COUNTERSIGNED: ' `y�'�'�•'��..a 3, EFT -Ont r a I I er. A . 0