Ordinance No. 14,226ORDINANCE NO. 14,226
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE THIRD -PARTY SUPPLEMENTAL ENVIRONMENTAL PROJECT
WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City
Manager to execute the Third -Party Supplemental Environmental Project Agreement with the Texas
Commission on Environmental Quality regarding funding for the Residential Sewer Line Repair and
Replacement Program. A copy of said agreement is attached hereto as Exhibit "A," and incorporated
herein for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Court '1 of the City of
Baytown this the 24`h day of October, 2019.
B NDON CAPETILLO, Maydi
ATTE
S
L ICIA BRYSCH, City CWk
SVX
APPROVED AS TO FORM:
ACID RAMIREZ, SR., C' y ttorney
.cobfsOl legal Karen iles,City Council.Ordinances\2019 October 24 TCEQSEPAgreement.doc
EXHIBIT "A"
Third -Party City of Baytown, Public Works Department
Administrator
Agreement Number 2018-03
SEP Title I Residential Sewer Line Repair and Replacement
Program
Texas Commission on Environmental Quality Third -Party Supplemental
Environmental Project Agreement
This Agreement Concerning Supplemental Environmental Project Funds (hereinafter
"Agreement") is entered into by and between the Texas Commission on
Environmental Quality (hereinafter "TCEQ"), an agency of the State of Texas, and City
of Baytown, Public Works Department (hereinafter "Third -Party Administrator"), a city
of the State of Texas (collectively, "the Parties").
General Conditions
1. Contact Information
Each Party hereby designates the following person as its representative for
implementing this Agreement and for receipt of notice or other information pursuant
to the Agreement:
Contact Information for Third -Party Administrator:
Name: Frank O. Simoneaux, P.E.
Title: Director of Public Works
Address: P.O. Box 424 Baytown, TX 77522
Telephone: 281-420-5300
Facsimile: 281-420-5322
Email: frank.simoneaux@baytown.org
Contact Information for TCEQ:
Name:
Ryan Rutledge
Telephone:
512-239-0600
Facsimile:
512-239-3434
Email:
ryan.rutiedge@tceq.texas.gov
Mailing Address:
Litigation Division
Attn: SEP Attorney
Mail Code 175
Texas Commission on Environmental
Quality
P.O. Box 13087
Austin, Texas 78711-3087
Overnight or Courier:
Litigation Division
Attn: SEP Attorney
Mail Code 175
Texas Commission on Environmental
Quality
12100 Park 35 Circle, Bldg. A
Austin, Texas 78753
Page 1 of 18
2. Definitions & Clarifications
2.1 "Effective Date" refers to the date this Agreement begins and is the
date of the last signatory below.
2.2 "Includes" and "including" are terms of enlargement and not of
limitation or exclusive enumeration, and the use of the terms does not create
a presumption that components not expressed are excluded.
2.3 "Party" or "Parties" refers to one or all of the signatories to this
Agreement, respectively.
2.4 "'SEP" refers to Supplemental Environmental Project.
2.5 "SEP Funds" means funds that, with the TCEQ approval, are
contributed to Third -Party Administrator by respondents in enforcement
actions brought by the TCEQ to offset the administrative penalty due to the
State of Texas General Revenue Fund. The term includes interest earned on
the original contribution.
2.6 "Project" refers to the project that is approved by the TCEQ as a SEP
and described in the exhibits in this Agreement.
2.7 Computation of Times. When any period of time is referred to in the
Agreement by days, it will be computed to exclude the first and include the
last day of such period. A calendar day of twenty-four hours measured from
midnight to the next midnight constitutes a day. A period referred to as a
"month" is the period ending on the same numerical day in the subsequent
calendar month as the day on which the period began, e.g., from the 9th to
the 9th, provided that if the numerical day for calculation of a period of
months is greater than the number of actual days in the concluding month,
the period will end on the last day of that month. A period referred to as a
"week" is a period of seven days. A period referred to as a "year" is a period
of 365 days. If the last day of any period described above falls on a
Saturday or Sunday or on a state or federal holiday and action is required of
the Third -Party Administrator on that day, such day will be omitted from the
computation and the required day for action will move forward to the next
day that is not a Saturday or Sunday or a state or federal holiday.
2.8 "Allowable SEP Expenses" are the reasonable, necessary, actual
costs listed in Exhibit 2 of this Agreement.
3. Exhibits
The following exhibits are attached to this Agreement and incorporated herein by
reference:
Page 2 of 18
Exhibit 1, entitled "Residential Sewer Line Repair and Replacement
Program."
Exhibit 2, entitled "Estimated Project Budget for Residential Sewer
Line Repair and Replacement Program."
Exhibit 3, entitled "'Estimated Costs associated with Residential Sewer
Line Repair and Replacement Program."
4. Approvable SEP
The Parties agree that the Project meets the definition of a SEP pursuant to Texas
Water Code § 7.067 and the TCEQ guidance on SEPs.
S. SEP Funds
5.1 Estimated Project Budget. TCEQ has approved the Estimated
Project Budget attached as Exhibit 2. SEP expenditures for each line item
must be Allowable SEP Expenses and must not exceed ten percent (10%)
over the budgeted amount for that line item, unless Third -Party
Administrator receives written approval from TCEQ prior to the expenditure
pursuant to Section 11 of this Agreement. If Third -Party Administrator does
not receive TCEQ approval for the increased cost expenditure, SEP Funds
must not be used for that increased cost expenditure. The Parties
acknowledge that there may be other Project costs that are not in Exhibit 2
that may be paid for with non-SEP funds.
5.2 Maintenance of SEP Funds. Upon receipt of its first Project
contribution from a respondent in a TCEQ enforcement action, Third -Party
Administrator shall open and maintain a separate SEP Funds Account. The
SEP Funds Account must be a fee -free account used exclusively for SEP
Funds at a financial institution that is insured by the Federal Deposit
Insurance Corporation and provides regular accounting statements that are
acceptable to the TCEQ. All earned interest on SEP Funds must be accounted
for and becomes part of the SEP Funds under this Agreement. Allowable SEP
Expenses must be paid directly to the recipient from the SEP Funds Account.
SEP Funds must not be commingled with any non-SEP Funds. Use of SEP
Funds to reimburse payments made from accounts other than the SEP Funds
Account is considered commingling.
5.3 Use of SEP Funds. Third -Party Administrator shall expend SEP Funds
only for Allowable SEP Expenses that are authorized by the Estimated Project
Budget in Exhibit 2 of this Agreement. Third -Party Administrator shall ensure
that the expenditure of SEP Funds results in the performance of adequate
and timely work and that purchases are made in accordance with this
Agreement. Third -Party Administrator may expend SEP Funds for work being
performed by or for Third -Party Administrator. However, Third -Party
Administrator shall not act as a third -party administrator granting SEP Funds
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for the benefit of other parties, except under a legally enforceable written
contract on a cost reimbursement basis. Third -Party Administrator shall
provide copies of such contracts to the TCEQ.
5.4 Administrative Expenses. TCEQ may include administrative
expenses related to implementing the Project in the Estimated Project Budget
attached as Exhibit 2. Administrative expenses include overhead costs,
personnel salary and fringe benefits, and travel and per diem expenses
associated with implementing the Project. Administrative expenses may not
exceed ten percent (10%) of the total direct cost of implementing the
project. If administrative expenses are included in the Estimated Project
Budget in Exhibit 2, ten percent of each contribution may be applied towards
administrative expenses until the maximum allowed by the Estimated Project
Budget in Exhibit 2 is reached. SEP Funds used for administrative costs must
be used in accordance with the Uniform Grant and Contract Management Act,
Texas Government Code Chapter 783.
5.5 Accounting. Third -Party Administrator shall specifically account, at
least on a quarterly basis, for the receipt and expenditure of SEP Funds,
including all interest earned on such funds, on the approved TCEQ reporting
form as set forth in General Condition 13.2. Failure to provide required
reports will constitute grounds for termination of this Agreement; however,
an extension of time may be granted at the sole discretion of the TCEQ.
5.6 Timely Expenditure. Third -Party Administrator shall expend SEP
Funds within one year of receiving the contribution. In the TCEQ's sole
discretion, this time period may be extended upon request from Third -Party
Administrator. Any request for extension must be on the approved TCEQ
form, include reasonable justification for the extension, and be received
thirty (30) days prior to the end of the required performance period.
5.7 No Guarantee of Funding. Funding under this Agreement is limited
to voluntary SEP contributions through the TCEQ enforcement process.
Third -Party Administrator understands that there is no guarantee that it will
receive any SEP Funds under this Agreement.
5.8 Refund of SEP Funds. If at any time the TCEQ determines that SEP
Funds were spent in a manner that is not in accordance with this Agreement,
Third -Party Administrator shall, on request from the TCEQ, return all such
SEP Funds to the TCEQ and account for all SEP Funds within thirty (30) days
of demand by TCEQ. Return of SEP Funds will be accompanied by a detailed
written accounting connecting the funds to specific docket numbers in a
manner acceptable to the TCEQ. The refunded SEP Funds must be in the
form of a check or money order made out to "Texas Commission on
Environmental Quality" and sent to the TCEQ address in Section 10 of this
Agreement.
Page 4 of 18
If at any time the TCEQ determines that Third -Party Administrator failed to
spend SEP Funds in a timely manner as required by this Agreement, Third -
Party Administrator shall, on request from the TCEQ, return all such SEP
Funds to the TCEQ and account for all SEP Funds within thirty (30) days of
demand by TCEQ. Return of SEP Funds will be accompanied by a detailed
written accounting connecting the funds to specific docket numbers in a
manner acceptable to the TCEQ. The refunded SEP Funds must be in the
form of a check or money order made out to "Texas Commission on
Environmental Quality" and sent to the TCEQ address in Section 10 of this
Agreement. In lieu of the return of unexpended SEP Funds and with the
approval of TCEQ, Third -Party Administrator shall transfer the SEP Funds to
another TCEQ SEP as directed by TCEQ.
These obligations survive termination of the Agreement.
6. Other Contributions
Nothing in this Agreement is to be construed to prevent Third -Party Administrator
from accepting funds from charitable contributors or other sources to the extent
permitted by law. If Third -Party Administrator receives funding from sources other
than SEP Funds ("non-SEP funds") for any of the items listed in Exhibit 2 of this
Agreement for which Third -Party Administrator also receives SEP Funds, Third -Party
Administrator shall report the source and amount of the non-SEP funds and provide
a list of items and expenses for which the non-SEP funds were used in the Quarterly
Reports required under General Condition 13.2.
7. TCEQ Enforcement Actions
This Agreement does not create any rights on behalf of Third -Party Administrator or
contributing respondents in TCEQ enforcement actions. Third -Party Administrator
shall have no role in the TCEQ enforcement process other than to receive approved,
voluntary SEP contributions from respondents and perform the Project according to
the terms of this Agreement.
8. Compliance
Third -Party Administrator shall perform the Project in accordance with this
Agreement as well as applicable state and federal laws, rules, and regulations. In
so doing, Third -Party Administrator shall obtain all necessary permits and licenses.
9. Term of Agreement
The Agreement begins on the Effective Date and automatically renews in one-year
increments unless terminated by either Party in accordance with this Agreement.
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10. Termination
Upon thirty (30) days prior written notice to the other Party, either Party may
terminate this Agreement with or without cause. Within thirty (30) days of the
effective date of the termination, Third -Party Administrator shall make a written
accounting to the TCEQ of all SEP Funds received, expended, and remaining under
this Agreement. This accounting must associate SEP Funds to specific docket
numbers and must utilize the TCEQ SEP Third -Party Administrator Final Quarterly
Report as set forth in General Condition 13.3. With this written accounting, Third -
Party Administrator shall also return all remaining SEP Funds to the TCEQ that have
not been expended. The return of remaining SEP Funds must be in the form of a
check or money order made out to "Texas Commission on Environmental Quality"
and sent to the TCEQ address listed below. These obligations survive termination
of the Agreement.
Texas Commission on Environmental Quality
Litigation Division
Attention: SEP Coordinator, MC 175
P.O. Box 13087
Austin, Texas 78711-3087
11. Amendments
With the exception of contact information or a Section 5.1 TCEQ-approved increase
in an Allowable SEP Expense, line item changes to this Agreement may only be
made by a written amendment, signed and agreed to by all Parties. Changes to
Section 1, Contact Information, may be made by written notice from one Party to
the other Party. Increases of more than 10% in an Allowable SEP Expense line
item must be approved in writing by the TCEQ Litigation Division Director. In the
sole discretion of TCEQ, extensive change requests may require a new Agreement.
12. Notices and Other Information
12.1 Effective Delivery. All notices and other information will be deemed
to be delivered on the date they are received if they are: 1) hand -delivered,
as evidenced by a signed acknowledgement of receipt; 2) delivered by a
nationally recognized courier service, as evidenced by the confirmation of
delivery rendered by the courier service; 3) or mailed through the U.S. Postal
Service by certified or registered mail, return receipt requested, as evidenced
by the acknowledgement of receipt returned to the sender by the postal
authorities. Electronic transfer by facsimile or email is not effective for notice
unless acknowledged by the other Party.
12.2 Bankruptcy and/or Business Closing. In the event that Third -
Party Administrator closes its business and/or files a petition for bankruptcy
protection, Third -Party Administrator shall provide written notice to the TCEQ
within twenty-four (24) hours of such closure and/or filing. Notice must be
sent to the designated TCEQ contact under this Agreement as well as the
Page 6 of 38
TCEQ Bankruptcy Program. Notice to the TCEQ Bankruptcy Program must
include contact information and be sent to: TCEQ Bankruptcy Program, P.O.
Box 13087, Mail Code 205, Austin, Texas 78711.
12.3 Notice of Change. Third -Party Administrator agrees that all
information it provided to the TCEQ was correct at the time of submission
and will remain correct throughout the term of this Agreement, and that in
entering into this Agreement, the TCEQ has materially relied on all
information provided by Third -Party Administrator, regardless of whether
such information is incorporated into this Agreement. Third -Party
Administrator agrees to give five (5) days written notice to the TCEQ if there
is any material change in the information.
13. Records and Reporting
13.1 Records. Third -Party Administrator shall maintain organized and
legible financial records, books, documents, and other evidence reasonably
pertinent to its performance under this Agreement for a minimum of three
(3) years from the date that a Final Quarterly Report is submitted. Third -
Party Administrator shall maintain all financial records in accordance with
generally accepted accounting principles. This obligation survives
termination of the Agreement.
13.2 Quarterly Reports. Third -Party Administrator shall submit quarterly
reports, within the timelines contained therein, to the TCEQ on the approved
TCEQ SEP Third -Party Administrator Quarterly Report form ("QR" or
"Quarterly Report"). The QRs must contain the following information:
13.2.1 A list of the amount of SEP Funds received during the
previous quarter with each respondent name, corresponding
contribution docket number, dollar amount received, and date
received, as well as copies of contribution checks;
13.2.2 A list of actual expenditures on the Project paid for with
SEP Funds and any necessary accompanying explanation and
documentation including invoices and general ledgers;
13.2.3 SEP Fund Account financial institution statements for each
month of the previous quarter;
13.2.4 The total balance of the SEP Funds with interest
separately noted;
13.2.5 A description of the Project to which SEP Funds were
allocated and progress made to date;
13.2.6 Copies of all receipts for all SEP Fund expenditures,
copies of all checks for SEP Fund expenditures, and documentation and
Page 7 of 18
explanations to support all electronic funds transfers from the SEP
Account.
13.2.7 Any additional information listed in the Special Conditions
of this Agreement, requested by the TCEQ or the Quarterly Report
Form, or that Third -Party Administrator believes would demonstrate
compliance with this Agreement.
13.3 Final Reports. Third -Party Administrator shall submit a final
Quarterly Report to the TCEQ on the approved TCEQ SEP Third -Party
Administrator QR form ("Final QR" or "Final Quarterly Report"), within the
timelines contained therein, for the quarter during which the Project
concluded. This obligation survives termination of the Agreement. In
addition to the information required in General Condition 13.2, the Final QR
must contain the following information:
13.3.1 A list of remaining SEP Funds assigned by contribution
docket number that were not used for the Project (such funds must be
returned to TCEQ within thirty (30) days) after the due date of the
Final QR;
13.3.2 Any additional information Third -Party Administrator
believes would demonstrate compliance with this Agreement; and
13.3.3 Any additional information requested by the TCEQ.
13.4 Additional Reporting. Third -Party Administrator agrees to provide
additional information requested by the TCEQ under this Agreement within
thirty (30) days of receipt of the request.
14. Access
14.1 Inspection and Audit. Third -Party Administrator shall permit TCEQ
as well as authorized state and federal agencies to have unrestricted access
to all records, data, and facilities as necessary to review, inspect, and audit
all activities and services associated with SEP Funds under this Agreement.
Third -Party Administrator shall provide appropriate accommodations for such
access and inspection.
14.2 Access to Project. Third -Party Administrator agrees to provide
access by the TCEQ and its representatives to the site of any work performed
in whole or in part utilizing SEP Funds, and it shall require its contractors to
provide the same access.
14.3 These obligations survive termination of this Agreement.
Page 8 of 18
15. Insurance
Unless prohibited by law, Third -Party Administrator shall require its contractors and
suppliers to obtain and maintain adequate insurance coverages sufficient to protect
the Third -Party Administrator from all claims and liability for injury to persons and
for damage to property arising under the Agreement. If Third -Party Administrator is
performing work under this Agreement using its own employees and resources,
then, unless Third -Party Administrator is a governmental entity or this requirement
is waived by TCEQ, Third -Party Administrator shall obtain and maintain insurance
coverages sufficient to protect the Third -Party Administrator from all claims and
liability for injury to persons and for damage to property arising out of Third -Party
Administrator's performance of the work under this Agreement.
16. Assumption of Risk
The Project is performed at Third -Party Administrator's sole risk as to the means,
methods, design, processes, procedures, and conduct of the Project.
17. Independent Entity
Third -Party Administrator is an independent entity and performs the Project as part
of its own authorized functions. Third -Party Administrator agrees that it undertakes
performance in accordance with this Agreement as its own work and does not act in
any capacity on behalf of the TCEQ or as a TCEQ-hired contractor or vendor of
goods or services.
18. Acknowledgement of Financial Support
Third -Party Administrator shall acknowledge the financial support of the TCEQ SEP
program in any publication involving the use of SEP Funds or whenever work
funded in whole or in part by this Agreement is publicized or reported in news
media. All publications, news releases and project signs must contain the following
notation (or its equivalent if approved by the TCEQ):
Performed with penalty monies from a
Texas Commission on Environmental Quality enforcement action.
19. Publicity
Third -Party Administrator shall not publicize the name of contributors of SEP Funds
without consent of the contributor and notice to the TCEQ.
20. Public Information
The Texas Public Information Act (Texas Government Code, Chapter 552) applies to
all information delivered to the TCEQ in the course of performance under this
Agreement. The TCEQ assumes no obligation to make legal arguments in support
of any claims pertaining to confidentiality, patents, trade secrets, or copyright.
Page 9 of IS
21. Severability
If any provision of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, or otherwise unenforceable, the remainder of the Agreement will be
construed to conform to the intent of the Parties.
22. Conflict of Interest
Third -Party Administrator shall notify the TCEQ in writing of any actual, apparent,
or potential conflict of interest regarding Third -Party Administrator or any related
entity or individual performing or having involvement with any portion of the
Project. At the TCEQ's request, Third -Party Administrator shall ensure that any
entity with an organizational conflict of interest or an individual with a personal
conflict of interest will not take part in any way in the performance of the Project.
Third -Party Administrator agrees that the TCEQ has sole discretion to determine
whether a conflict exists.
23. Governing Law
This Agreement will be governed by, construed, and interpreted under the laws of
the State of Texas as well as any applicable federal law.
24. Venue
Third -Party Administrator agrees that the Agreement is being performed in Travis
County, Texas, because this Agreement has been solicited and is being
administered in Travis County, Texas. Third -Party Administrator agrees that any
permissible cause of action involving this Agreement arises solely in Travis County.
This provision does not waive the TCEQ's sovereign immunity.
25. Sovereign Immunity
The Parties agree that this Agreement does not waive the State of Texas' sovereign
immunity or official immunity to which TCEQ's officers, employees, or agents are
entitled relating to suit, liability, and the payment of damages.
26. Assignment
No delegation, transfer, or assignment of duties, obligations, or rights under or
interests in the Agreement will be binding on the TCEQ without its express written
consent. Any such delegation, transfer, or assignment made without the written
consent of TCEQ is void. No delegation, transfer, or assignment will release or
discharge Third -Party Administrator from any duty or responsibility under this
Agreement.
Page 10 of 18
27. Survival of Obligations
All representations, warranties, and guarantees made in, required by, or given in
accordance with this Agreement, as well as all continuing obligations indicated in
the Agreement, will survive beyond the termination or completion of the
Agreement.
28. Indemnification
To the fullest extent permitted by law, Third -Party Administrator shall indemnify
and hold harmless TCEQ and its representatives from and against all losses,
liabilities, damages, and other claims of any type arising from the performance of
the Project by Third -Party Administrator or its contractors, subcontractors, suppliers
and agents, including those arising from workmanship, materials, or from a breach
of applicable laws, regulations, safety standards, or directives regardless of whether
such acts or omissions are negligently or recklessly performed. This covenant
survives the termination of the Agreement.
29. Full Integration
This Agreement, including all exhibits, merges any prior negotiations and
understandings of the Parties and embodies the entire agreement of the Parties.
No other agreements, assurances, conditions, covenants (express or implied), or
other terms of any kind exist between the Parties regarding the Project.
30. Counterparts
This Agreement may be signed in any number of counterparts, and as signed,
constitutes one Agreement binding on the Parties hereto, even though the Parties
do not sign the same counterpart.
31. Authorized Signatories
The Parties agree that the signatories to this Agreement are authorized to enter
into this Agreement on behalf of the entities indicated below each respective
signature. Furthermore, the Parties agree that each is bound by the terms and
conditions of this Agreement after it is signed by each Party.
32. Conflicting Conditions
There are Special Conditions and an Exhibit 1 to this Agreement that may be more
restrictive than the General Conditions to this Agreement. If there is a conflict
between the Special and the General Conditions, the Special Conditions and Exhibit
1 control.
Page 11 of 18
Special Conditions
1. The following provisions are added to General Condition 13.2 Quarterly
Reports:
13.2.1 Documentation for all contracted services and all equipment and
materials purchased, including detailed receipts, invoices, and work plans.
13.2.2 Detailed receipts, invoices, and paid checks for all equipment,
supplies, and materials purchased by Third -Party Administrator.
13.2.3 Dated photographs showing before and after details of work
performed labeled with site address.
13.2.4 Documentation of any repairs and/or replacement to existing
private sewer laterals, including the system design, copies of applicable
permits, information regarding where the replacement or repair took place,
and the location of the site where the replacement or repair took place.
13.2.5 Documentation regarding the eligibility of the household where
the repairs and/or replacement took place, including location of household,
proof of home ownership, proof of primary residency status, proof that
property tax and mortgage payments are current, and copy of notice from
Third -Party Administrator that the private sewer line was in need of repairs
or replacement.
Page 12 of 18
Exhibit 1
Residential Sewer Line Repair and Replacement Program
Project Description
The purpose of this program is to reduce inflow and infiltration (I&I) of storm water
into Third -Party Administrator's wastewater system. I&I cause Third -Party
Administrator to build wastewater treatment plants and pipes larger than they
would otherwise, thereby wasting public resources. Since 2007, Third -Party
Administrator has inspected 5,818 homes as part the Private Sewer Line Inspection
program (PSLIP) with 2,673 homes having been identified as having defective
sewer lines, or 46%. With 13,139 homes remaining to be inspected, it is estimated
that as many as 6,653 homes could be identified as needing private sewer line
repair or replacement. The PSLIP program includes inspection of private sewer lines
from the main line to the residential structure. Residents are notified of defects and
whether the private sewer line needs repairs or replacement. Currently, funding for
repair or replacement for qualified low to moderate -income homeowners is
available through the Community Development Block Grant (CDBG).
Third -Party Administrator shall identify homeowners for potential repair or
replacement of their private sewer lines. Each homeowner shall complete an
application to determine their eligibility. Eligibility will be based on the following:
1. Homeowner must reside within the Baytown city limits;
2. Homeowner must own the home;
3. Homeowner must occupy the home as primary residence;
4. Homeowner must show proof that all property taxes are current;
5. Homeowner must show proof that mortgage payments are current;
6. Homeowner must have received notice from Third -Party Administrator that
the private sewer line is in need of repairs or replacement;
7. Homeowner must be a legal resident of the United States; and
8. Homeowner did not qualify for the CDBG funded Residential Sewer Line
Repair and Replacement Program.
Once homeowner eligibility is verified, Third -Party Administrator shall determine
whether the private sewer line should be repaired or replaced. Third -Party
Administrator shall select a qualified contractor for the repair or replacement
installation. The contractor shall submit an application including all standard sewer
lateral repair or replacement installation requirements that shall be reviewed by
Third -Party Administrator. Upon approval of the application, the private sewer line
shall be repaired or replaced, as needed, by the selected contractor. After the
private sewer line repair/replacement is completed by the contractor and
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approved by Third -Party Administrator, payment shall be made by Third -Party
Administrator to the selected contractor using SEP Funds to cover the actual cost of
repair or replacement up to $3,000.1
Third -Party Administrator shall ensure that all repairs, replacements, installations
and associated costs are consistent with the items listed in Exhibit 3 of this
agreement and performed in compliance with local, state, and federal rules relating
to wastewater systems. Third -Party Administrator shall ensure that only properly
licensed contractors are utilized for repair or replacement of private sewer laterals.
Proiect Scone
The scope of this SEP is one year. The estimated budget in Exhibit 2 for this SEP is
for one year. Pursuant to General Condition 9, this Agreement renews annually
unless terminated by either Party in accordance with this Agreement.
nvironmental Benefi
The City of Baytown had 164 Sanitary Sewer Overflows (SSOs) in 2017, which
included 3,406,735 gallons of untreated wastewater polluting waterways. It is a
common industry estimate that 50% of I&I originates from private sewer laterals.
This program could effectively address over 1.5 million gallons of untreated
wastewater that pollutes Texas waterways each year.
Eligible Areas and Counties
Fort Bend, Grimes, Harris, Liberty, Montgomery, San Jacinto, Walker, and Waller
Counties
Minimum Contribution Amount
$500
1 According to Third -Party Administrator, historical data indicates that the average cost of
repair/replacement ranges between $1,900.00 and $6,300.00 per household.
Page 14 of 18
Exhibit 2
Estimated Project Budget for Residential Sewer Line Repair and
Replacement Program
No.
Allowable SE Expense
Items
Quantity
Price Per
Re air Replacement
Item Total
1
Private Sewer Line
RepairjReplacement
Total Direct Project Cost
6,653
Actual cost up to
$3,000
$19,959,000
19 959. 000
Page 15 of 18
Exhibit 3
Estimated Costs associated with Residential Sewer Line Repair and
Replacement Program
Defect
Substandard pipe material '
(concrete, clay, cast iron,
asbestos cement, or
Orangeburg pipe) w/other
defect (root intrusion, offsets,
cracked pipe, improper
cleanout connection)
Collapsed line
Root intrusion
Solution
Replace private sewer line from
city main to edge of house with
PVC pipe
Replacement with PVC pipe
Point repair with PVC pipe
Offset joints Point repair with PVC pipe
Leaking joints Point repair with PVC pipe
Cracked pipe Point repair with PVC pipe
Improper cleanout connection Replacement with PVC pipe and
coupling
Improper tie-in to main Replacement with PVC pipe and
and/or connection to their coupling
private line
Page 16 of 18
Cost
$150/Linear
Feet (LF)
$150/LF
$150/LF
$150/LF
$150/LF
$150/LF
$200/LF
$600/LF
Signatures for Third -Party Administrator
THIRD -PARTY ADMINISTRATOR:
City_ of Btown, Public _Works Department
(Signature)
(Printed Name)
City Manager - City of Baytown
(Title)
Date:
Page 17 of IS
Signature for the TCEQ
W�(4'A -1 -'�
Marga t Lig rde
Deputy Director, Office of Legal Services
Texas Commission on Environmental Quality
Page 18 of 18
Aul.D
Date