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Ordinance No. 10,610ORDINANCE NO. 10,610 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING A WATER SUPPLY AGREEMENT WITH CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 1; 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 Interim City Manager to execute a Water Supply Agreement with Chambers County Improvement District No. 1. Said agreement is attached 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! to of the City Council of the City of Baytown this the 22nd day of May, 2007. ST HEN H. DONCARLOS, Mayor APPROVED AS TO FORM: 4UNACIO RAMIREZ, SR., Uty Attorney RAKarcn\Filcs\City Counci110rdinanccs\20071May 22\CCIDWatcrSupp1yAgrccmcnt.doc WATER SUPPLY AGREEMENT BETWEEN THE CITY OF BAYTOWN, TEXAS AND CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 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. 1, *a body politic and corporate and a political subdivision of the State of Texas, operating pursuant to Chapter 566, Act of the 73rd Legislature of the State of Texas (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. 2. The District is a political subdivision of the State of Texas, operating pursuant to Chapter 566, Act of the 73rd Legislature of the State of Texas. 3. The District will own or lease a water distribution system serving the Service Area and desires to purchase treated water for 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. 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. 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 402.001 and Texas Water Code Section 49.213, as same may be from time to time amended. 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: Water Supply Agreement. Page 1 T A 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 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 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. 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 "Interconnections" shall mean those improvements necessary for the connection of the City's System and District's System as set forth herein. 1.06 "Point of Delivery" shall mean the point of connection from the City's System to the District's system, which will be at a mutually agreed upon location. 1.07 "Service Area" shall mean the area within the boundaries of the District, consisting of approximately 13,900 acres and 1,428 single-family equivalent connections. The District covenants that the Service Area is within the area as more particularly described in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes. 1.08 "TCEQ" shall mean the Texas Commission on Environmental Quality or its successor agency. 1.09 "Water" shall mean potable water meeting the minimum drinking water standards prescribed by Texas Department of Health Resources and TCEQ, and their successor agencies. Water Supply Agreement. Paget 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. 2.02 City Approval of Plan s 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 for which no additional opportunity to cure shall be given. 2.05 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. 2.06 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 Water Supply Agreement, Page3 herein, for the price and at the point or points of delivery herein provided, consistent with other limitations as stated herein. 2.07 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 services to any of its customers. 2.08 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 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. (1) 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 treated water actually delivered hereunder, but the reading of the meters for purposes of billing shall be done by the District. (2) 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. Water Supply Arreement. Page4 (3) 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 2.08 hereinabove. (4) 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 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 ('/z) 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 treated 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. (5) 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. (6) Given Rate of Flow. As used in this Article, the expression "given rate of flow" means the total quantities of treated 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. 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. Water Supply Agreement. Pages 3.02 City's Plumbing Cade. The District covenants and agrees to comply with the City's current Plumbing Code and all amendments thereto for water distribution facilities and agrees not to permit plumbing work relating to water 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 the all requirements of the City's Plumbing Code have been satisfied. 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 18462 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 `B" 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 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 its System to any individual or entity other than its own employees holding any 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 terminating the service agreement as to the District on the date of annexation of the District by the City. 3.04 Title to and ResQonsibility 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 contract 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 Water Supply Agreement. Page6 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. Subject to the terms and conditions of this contract, City agrees to sell and deliver (or cause to be delivered) to the District, the District's water requirements of treated water, and the District agrees to purchase from City the District's treated water requirements for resale during the term of this contract for water services to be supplied the Service Area as defined in Article I hereof. The District's total treated water requirements shall mean the total quantity of treated water the District needs to conduct operations, use or resell within the Service Area and shall not exceed 500,000 gallons per day average daily flow. 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 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 Contract 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. Water Supply Agreement. Pagel 5.02 Monthly Service Charge. The District shall pay to the City in monthly installments 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 treated water delivered to the District during the month in question. The charge shall be calculated on the basis of the metered water use for each user connected to the District's system, consistent with the provisions for such calculation found in the City's Water Service Rate Ordinance, which may be amended from 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 "C," and incorporated herein. For example for single-family residences connected to the District's system on the effective date of this contract, the District shall pay each month $10.15 for each 2,000 gallons used per connection and $3.85 for each additional 1,000 gallons used per connection. 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. 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 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 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 10'" 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. Payment by the District to the City shall be made within thirty (30) days following the receipt of the invoice specified in Section 5.04 hereinabove. Any sums payable by the District to the City under this Contract which are not paid within thirty (30) days following the receipt of the invoice shall bear interest in accordance with 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 Water Supply Agreement. Page8 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 terns of this Contract 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 contract. 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 Agreement. Page9 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 "D" and incorporated herein for all purposes, and not withstanding any other provision of this contract to the contrary, the District covenants and agrees that it takes the treated 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 treated 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 comply with such restrictions and limitations. The District further agrees to include covenants in Water Supply Agreement. Page 10 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 contract, 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 Majeure. In the event any party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Contract, 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 Agreement. Pagel l 7.02 AARnroval. 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 determined 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. 1 c/o Smith, Murdaugh, Little & Bonham, L.L.P. 1100 Louisiana Street, Suite 400 Houston, Texas 77002 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. 7.04 Assignability. 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. Water Supply Agreement. Pagel2 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 Sate 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. 7.04 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 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 treated water in sufficient quantities to supply the 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 Water Supply Agreement. Pagel3 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. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this day of , 2007. ATTEST: (Signature) - (Printed Name) S i-C4L VIA L., (Title) Water Supply Attreement. Page 14 DISTRICT (Signature) By: cN�VLs 1 h (Printed Name) (Date) (Title) Chambers County Improvement District No. 1 FORM: G. L�— (Signature) j I'mWS \t' &�\6w\ (Printed Name) 0�vlwn (Title) CITY ROBERT D. LEIPER (Date) Interim City Manager City of Baytown, Texas ATTEST: LORRI COODY, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney R:\Kmtn\FilalConMMkWater& Wastewater Agrecn=1Wbamberz County ]mprowntent District No. hH20Cantranl.doc Water Supply Agreement. Page 15 Exhibit "All Highlands U mnety ow u1: WD #1 8110" in, 330 14V 134 146 , Baytown � --- - CHAMBERS COUNTY a Bury+Partners IMPROVEMENT DISTRICT #1•�N MAP E M O 1 N E E R 1 N O S O l Y T 1 O N f LOiA ' `O !EMP 1001 Wen law S03 Slcef :00 u ��COUNTY.fkwnm lean7701' CHAMBERS COUNTY. 7rv�<► ifl 1y1712t2o011 FL. C 1 212•uno Wain 1 1 � Gnrw flmy•RrONn-H011, inc C 2We G \70109\005\EIIH18115\ DPAIYN BY AIC SCALL N 1.S OAIL: 12/21/06 Pro) fW: m -W 146 r �nz • � r iby� - -I" }r ., - CHAMBERS COUNTY a Bury+Partners IMPROVEMENT DISTRICT #1•�N MAP E M O 1 N E E R 1 N O S O l Y T 1 O N f LOiA ' `O !EMP 1001 Wen law S03 Slcef :00 u ��COUNTY.fkwnm lean7701' CHAMBERS COUNTY. 7rv�<► ifl 1y1712t2o011 FL. C 1 212•uno Wain 1 1 � Gnrw flmy•RrONn-H011, inc C 2We G \70109\005\EIIH18115\ DPAIYN BY AIC SCALL N 1.S OAIL: 12/21/06 Pro) fW: m -W a Pott! r ., •' iyL��l `�N S, � 1{ - CHAMBERS COUNTY a Bury+Partners IMPROVEMENT DISTRICT #1•�N MAP E M O 1 N E E R 1 N O S O l Y T 1 O N f LOiA ' `O !EMP 1001 Wen law S03 Slcef :00 u ��COUNTY.fkwnm lean7701' CHAMBERS COUNTY. 7rv�<► ifl 1y1712t2o011 FL. C 1 212•uno Wain 1 1 � Gnrw flmy•RrONn-H011, inc C 2We G \70109\005\EIIH18115\ DPAIYN BY AIC SCALL N 1.S OAIL: 12/21/06 Pro) fW: m -W Exhibit "B" CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 1 Resolution for Adoption of Order Establishing Policy and Rates for Water and Sewer Service The Board of Directors (`Board') of Chambers County Improvement District No. 1 ("District") met at the Board's regular meeting place on December 13, 2006, with a quorum of directors present, as follows: Charles S. Iupe, Jr. — Position 1, President Joseph Urey — Position 2, Secretary H. Lee Goodwin - Position 4, Director Kelley Parker - Position 3, Director Raymond Wetegrove - Position 6, Director and the following absent: None when the following business was transacted: The order set out below ("Order") was introduced for consideration of the Board. It was duly moved and seconded that said Order be adopted; and, after due discussion, said motion carried by the following vote: Ayes: All directors present. Noes: None. The Order thus adopted is as follows: Any order and amendments thereto, heretofore adopted by the Board of District, providing for policy or rates for water and sewer service for customers within the District, is hereby revoked upon the effective date of this Order. The Order hereinafter set forth shall become effective on December 13, 2006. 94095-002145283V1 DW ORDER ESTABLISHING POLICY AND SETTING RATES FOR WATER AND SEWER SERVICE ARTICLE I General Provisions Section 1.1 Definitions For purposes of this order, the following words or terms shall have the following meanings: a) "Commercial Consumers" 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; apartments; churches; schools; and any and all establishments not generally considered a single-family residence. b) "Consumer" shall mean the user of a District utility service at a residential, commercial or industrial structure within the area of the District, whether the owner, renter or lessee thereof. C) "Cross Connection" shall mean a physical connection or other arrangement through which a potable water system may be contaminated by back siphonage or backflow. d) "Delinquent bill" shall mean a bill for water and/or sewer service which has not been received or postmarked within twenty (20) days after the date of the bill for the preceding month's service. e) "Grease Trap" shall mean a facility connected to the customer's sanitary sewer line in a manner and form approved by the District's operator, which is designed to trap grease, oil, or other harmful residue prior to discharge into the District's waste treatment collection line. 94095-002 14$287 V 1 DW 2 f) "Nontaxable Entity" shall mean an entity which is exempt from ad valorem taxation under Chapter 11, Texas Tax Code, as amended. g) "Operator" shall mean the person, firm, corporation, municipal corporation or political subdivision with which the District has contracted for operation and maintenance of the plants and lines of the District's system. h) "Residential connection" shall mean and include any single family residence, townhouse, or multiplex (other than apartments), when such is separately metered. i) "Separate connection" shall mean each residential unit occupied by a separate family or person, including separate apartments within a single building, and each business unit occupied by a separate business, including separate establishments within a single building. j) "System" as used herein shall mean the water and/or sanitary sewer facilities of the District and all extensions and additions thereto, whether now in place or hereafter constructed. k) "Unacceptable plumbing practices" shall mean practices not accepted by or which are in violation of the Southern Standard Plumbing Code, the Uniform Plumbing Code or the National Standard Plumbing Code. 1) "Unauthorized Usage" shall mean the intentional or unintentional delivery or receipt of water and/or sewer service from the District without making prior application therefor as required herein; or where a meter has been turned on or service otherwise reconnected to a structure by someone other than a duly authorized District representative. Section 1.2 Consumers not entitled to specific quantity or pressure of water Water Consumers are not guaranteed a specific quantity or pressure of water for any purpose whatever, and it is understood that District is only to furnish a connection with its water 440 S -002145283V1 DW 3 system and is in no case to be liable for failure or refusal to furnish water or any particular amount or pressure of water. Section 1.3 Water connections generally No person, other than the properly authorized agents of the District, shall be permitted to tap or make any connection with the mains or distributing pipes of the District's water system, or make any repairs or additions to or alterations in any tap, pipe, cock, or other fixture connected with the service water pipe. Section 1.4 Unauthorized practices a) Potable water -supply piping, water discharge outlets, backflow -prevention devices or similar equipment shall not be located so as to make possible their submergence in any contaminated or polluted liquid or substance. b) The Operator or other duly authorized representative of the District shall be authorized, after providing reasonable notice to the landowner in advance, to enter upon any tract within the District to inspect individual water facilities prior to providing service and periodically thereafter to prevent possible cross -connections between the potable water system and any non -potable water. All water Consumers shall allow their property to be inspected for possible cross -connections and other unacceptable plumbing practices. The District shall notify the Consumer in writing of any cross -connection or other unacceptable plumbing practice which has been identified during an initial inspection or any periodic reinspection. The Consumer shall immediately correct any unacceptable plumbing practice on its premises. C) Continuous efforts shall be made by the District to locate unauthorized connections or and possible interconnections between privately owned water systems and the public water system, and other unacceptable plumbing practices. As unacceptable plumbing 94095-M 145283 V l DW 4 practices are located, they shall be eliminated so as to prevent possible contamination of the water supplied by the District. d) The District shall consider the existence of a health hazard as identified in 30 Texas Administrative Code § 290.47 (i), or other serious threat to the integrity of the water supplied by the District, to be sufficient grounds for immediate termination of water service to Consumers who may be vulnerable to possible water supply contamination. If terminated under such circumstances, water service shall be restored by the District when it determines that such health hazard or other source of potential contamination no longer exists, or when the health hazard or other contamination source has been isolated from the District's water supply system in accordance with 30 Texas Administrative Code § 290.44 (h). The District is not required to follow the provisions of Section 2.3 when terminating water service under this Section 1.4d). C) The District may invoke the procedure described in Section 2.3 of this Order to discontinue water service to a Consumer in the event such Consumer either (1) refuses to permit an inspection pursuant to this Section, or (2) fails, within a reasonable time after receiving written notice issued by the Board, to correct or remove any unauthorized connection, tap, plumbing or other condition found to be contributing to or causing (i) contamination of the District's water supply, or (ii) infiltration into the District's sewage system. Further, all tampering with District meters, taps or other District facilities, Unauthorized Usage of water or sewer service, and illegal discharges into the District's sanitary or storm sewer systems are prohibited. In addition to any of the foregoing, the District may bill and collect from any Consumer who violates the terms of this Section any costs or expenses incurred by the District as a result of such violation. 94095-M 145283VI DW 5 Section 1.5 Plumbing restrictions The following unacceptable plumbing practices are prohibited by State regulations and the District. a) No direct connection between the public drinking water supply and a potential source of contamination is permitted. Potential sources of contamination shall be isolated from the public water system by an air -gap or an appropriate backflow prevention device. b) No cross -connection between the public drinking water supply and a private water system is permitted. These potential threats to the public drinking water supply shall be eliminated at the service connection by the installation of an air -gap or a reduced pressure -zone backflow prevention device. c) No connection which allows water to be returned to the public drinking water supply is permitted. d) No pipe or pipe fitting which contains more than 8.0% lead may be used for the installation or repair of plumbing at any connection which provides water for human use. e) No solder or flux which contains more than 0.2% lead can be used for the installation or repair of plumbing at any connection which provides water for human use. f) No plumbing fixture shall be installed which is not in compliance with a State approved plumbing code. g) In an effort to ensure that neither cross -connections nor other unacceptable plumbing practices are permitted, each new Consumer and each Consumer whose service has been suspended or terminated and is proposed for reconnection must sign a copy of the Service Agreement attached hereto as Exhibit "A" prior to commencement of service by the District. 94095-002145283V1 DW 6 Section 1.6 Plumbing material restrictions, Customer Service Inspection Certifications No new connections to the District's water system shall be made unless (1) a customer service inspection has been made by a qualified inspector and (2) a Customer Service Inspection Certification in the form attached hereto as Exhibit `B" has been completed and submitted to the District. Such an inspection and certification also shall be required at any existing service location when the District has reason to believe that cross -connections or other unacceptable plumbing practices exist, or after any material improvement, correction or addition to the private plumbing facilities. The District shall recognize only the individuals specified in 30 Texas Administrative Code §290.466)(1) as capable of conducting customer service inspection certifications, and shall retain copies of properly completed certifications on file for a minimum of ten (10) years. The District is not obligated to perform inspections for customers; however, the District reserves the right to conduct independent inspections where necessary at a cost of $50.00 per inspection. Service inspection certifications for new construction shall be submitted to the District before continuous service to the connection is provided, and the District shall not transfer the account from the builder to the initial occupant until the certificate is provided. Certifications for inspections in all other instances (when the District has reason to believe unacceptable plumbing practices exist or after a material change to private plumbing facilities has been made) shall be submitted to the District no later than ten (10) days after the inspection has been completed. Section 1.7 Backflow prevention devices a) In the event that the District, in its sole discretion, requires a Consumer to install a backflow prevention device in order to prevent possible contamination of the District's water supply, the Consumer shall, at its own expense and through the use of an independent testing 94095-M 145283V1 DW 7 company, properly install, test and maintain according to Commission rules such backflow prevention device, and shall provide all testing and maintenance records to the District. If the Consumer fails to comply with the requirements of this Section, the District may, at its option, terminate service in accordance with the provisions of Section 2.3 of this Order, or, the District may properly install, test and maintain such backflow prevention device and bill the Consumer all expenses relating thereto. b) All backflow prevention assemblies that are required according to 30 Texas Administrative Code §§ 290.44 (h) and 290.47 (i) shall be tested upon installation by a recognized backflow prevention assembly tester and shall be certified to be operating within specifications. Further, backflow prevention assemblies installed to provide protection against health hazards as defined in 30 Texas Administrative Code § 290.38 must be tested and certified at least annually by a recognized backflow prevention assembly tester. If tested by the Operator, the District shall charge the Consumer the District's actual costs incurred for each backflow prevention assembly tested. For each assembly tested, a signed and dated original Test Report in the form attached hereto as Exhibit "C" must be completed by the recognized backflow prevention assembly tester and submitted to the District. C) The District must retain for a minimum of three (3) years such test reports and maintenance records submitted to it under subsections a) and b) of this section. Section 1.8 Plumbing code The District hereby adopts by reference as the District's plumbing code the Uniform Plumbing Code, a nationally recognized set of rules governing plumbing practices. 94095-002145283V1 DW 8 Section 1.9 Monitoring Plan a) Legal Authority and Purpose The District shall implement a chemical and microbiological monitoring plan (the "Monitoring Plan") in accordance with the requirements of 30 Texas Administrative Code, Chapter 290, Subchapter F, Drinking Water Standards Governing Drinking Water Quality and Reporting Requirements for Public Water Supply Systems, effective September 13, 2001 ("Subchapter F"); the federal Safe Drinking Water Act, 42 United States Code § 300f et. seq.; and the Primary Drinking Water Regulations promulgated by the United States Environmental Protection Agency. b) Monitoring Plan (1) The District's operator is authorized and directed to prepare and carry out the Monitoring Plan as required by the applicable rules and regulations of the Texas Commission on Environmental Quality ("Commission") or any successor governmental agency thereof. (2) In accordance with 30 Texas Administrative Code § 290.121 (b), the Monitoring Plan shall identify all sampling locations, describe the sampling frequency, and specify the analytical procedures and laboratories that the District will use to comply with the monitoring requirements of Subchapter F. (3) The Operator shall maintain a copy of the current Monitoring Plan at each treatment plant and at a central location and shall update the Monitoring Plan in accordance with the rules of the Commission. (4) Public water systems such as the District that treat groundwater that is not under the direct influence of surface water or that purchase treated water from a wholesaler must submit a copy of their Monitoring Plan to the Commission's public drinking 94W5 -M 145283VI nw 9 water program upon the request of the Commission's Executive Director. Failure to maintain an up-to-date Monitoring Plan is a monitoring violation. ARTICLE H Commencement and Termination of Service Section 2.1 Connection to District's system Each structure within the District may be connected to the system of the District as soon as the District has made available to such structure plant and line capacity to serve same. If both water and sewer services do not become available at the same time, the Consumer may connect to the water system at the time water service becomes available and to the sewer system at the time sewer service becomes available. However, prior to receiving either water or sewer service singularly, the customer shall pay contemporaneously all tap fees, connection charges, inspection fees, and other charges required hereunder for water and sewer service. Section 2.2 Termination of service upon request of Consumer Whenever a Consumer of District water temporarily or permanently abandons the structure being served and no longer wishes to be furnished with water, he shall notify the District's operator at least two (2) days prior to the time he desires such service discontinued. A charge of $50.00 shall be made for restoring water service where such service is discontinued and then restored at the request of the Consumer and he is not delinquent in the payment of any bill at the time of either request. Section 2.3 Termination of service upon initiative of District a) The District may terminate utility service to a tract or Consumer: (1) at any time after a Consumer's bill becomes delinquent as defined in Subsection 1.1d) above; or 44095-002145283V1 DW 10 of this Order; (2) upon the occurrence of an event described in Subsection 1.4e) or 1.7a) (3) to prevent or discontinue conduct which interferes with the orderly provision of utility service by the District or the implementation of any provision or requirement of this Order; or (4) to abate any condition in connection with the District's facilities which in the opinion of the Board is harmful to the health, safety or welfare of District Consumers or the public. b) At any time a Consumer's bill, or any part thereof, becomes a Delinquent Bill, all charges, be they current or past due, to the Consumer shall be due and payable immediately, and shall be payable by cash, cashier's check or money order only. If the Operator has not received payment of a Consumer's bill by the date it becomes a Delinquent Bill, the Operator shall deliver a delinquent letter to the Consumer pursuant to Section 2.3c) below and add a $11.00 fee ("Delinquent Letter Fee") to the Consumer's bill on the date the delinquent letter is delivered. C) Except for termination of service upon the occurrence of an event described in Subsections 1.4d) or 5.1b) of this Order, notice to the Consumer shall be made as follows: (1) At least ten (10) days prior to termination of a Consumer's service pursuant to this Section, a notice shall be delivered to the Consumer advising the Consumer of termination of service pursuant to this Section. (2) Delivery of the notice shall be considered complete upon deposit of the notice in the United States mail, postage prepaid, addressed to the Consumer at his last known mailing address. 94095-002 145293VI DW t t (3) The notice shall include: (a) a statement that service will be terminated; (b) the date of termination; and (c) the reason for termination. In the event the termination is based upon failure to pay a Delinquent Bill, then the notice shall state that the Delinquent. Letter Fee is being added to the Consumer's account, and that additional charges may become due pursuant to Section 2.3 f) and g) of this Order if service is actually terminated, or if it is necessary to remove the Consumer's meter; and the notice shall also include: (d) a statement that in the event the Consumer desires to object to a Delinquent Bill on account of clerical error or other billing irregularity, then the Consumer must notify the designated representative of the District of such objection; and the notice shall contain the name, mailing address and telephone number of the designated representative. Such statement shall read as follows: You are advised that the District's utility operator (Operator's name address and telephone number) may make an adjustment of a utility bill if there is a clerical error or other billing irregularity. If your bill contains an error, notify the operator at once. If the operator is unable to adjust your bill, your service will not be terminated until the District's Board of Directors considers the matter. You will be notified of the time, date, and place of the meeting at which the matter will be considered. You may present your objection to the Board of Directors at that time. (4) At least 72 hours prior to termination of a Consumer's water service pursuant to this Section, a 72 -hour notice (door -hanger) will be placed by the District's Operator at the Consumer's location of service. A service charge of $5.00 will be assessed for placement of door -hangers. 94095-M 145283V1 DW 12 d) Adjustment of bill by designated representative: (1) The District's designated representative for purposes of this Section is the District's Operator. (2) The designated representative is authorized to receive and consider Consumer objections presented in accordance with Subsection 2.3c)(3)(d) and to make adjustments in a Consumer's billing to correct clerical errors or other billing irregularities. (3) The designated representative is not required to make an adjustment in any particular case; any Consumer objection received pursuant to this Section and not adjusted by the designated representative to the satisfaction of the Consumer shall be referred for a hearing in a meeting of the Board. e) Hearing before Board of Directors: (1) In the event a Consumer objection is referred to the Board pursuant to Subsection 2.3c) (3), the termination of service shall be held in abeyance until further order of the Board. (2) The Consumer shall be given notice, at least seventy-two (72) hours in advance, of the time, date, and place of the meeting at which the Board will consider the Consumer objection. (3) At such meeting, the Board shall consider all matters set forth by the Consumer and take such action, including termination of service, as it deems advisable. f) A reconnection charge of $50.00, together with full payment of Consumer's account and payment of an additional deposit of $25.00 shall be paid by a Consumer, by cash, cashier's check or money order, in advance of restoration of service when service has been terminated pursuant to this Order. The maximum residential deposit shall be $300.00. 94095.002145283V1 DW 13 g) In the event it becomes necessary to remove a Consumer's meter due to unauthorized reconnection of service subsequent to its termination by the District, there shall be charged a meter pull fee of $35.00 together with all other debts owed. Further, the penalty provided for in Section 7.1 of this Order for unauthorized use may be applied in this situation. The meter pull fee, together with all other debts owed, shall be payable by cash, cashier's check or money order only. Section 2.4 Application for installation of water meter with two-inch or less connection Every person desiring the installation of a water meter with a connection of two inches or less shall be required to sign and execute an application for installing a meter before the District will make such installation. The installation of water meters with connections of more than two inches shall be covered by separate agreements. Any person desiring temporary water service for construction or other interim needs shall be required to receive same by means of a temporary meter. Such meter shall be provided upon receipt of an application. Further, the District shall require the payment of a deposit of $1,000.00. In addition to the deposit, there shall be a monthly rental fee of $90.00 per month for use of such temporary meter. The water rate will be $3.00 per 1,000 gallons. Section 2.5 AARplication for inspection of sewer tan Every person requesting sewer service from the District shall so notify the District's operator. After the notification, the person requesting said service shall have a plumber make the tap on the District's sewer line. After the tap has been completed, the applicant shall notify the District's operator, who shall make an inspection of the connection and tie-in line before sewer service is commenced. 94095-M 145293V1 DW 14 Section 2.6 Request for utility service Each residential Consumer or Commercial Consumer requesting utility service from the District shall make an application in person at the office of the District. The District's Operator is hereby given authority to require persons requesting water and/or sewer service from the District to pay a $35.00 nonrefundable setup charge for each connection to the District's System. Section 2.7 Deposit to securepayment The District's operator is hereby given authority to require persons requesting water and/or sewer service from the District to post a deposit with the District of $75.00 for each connection to the District's system. Such deposit is solely to secure the payment of charges established by this Order and will be applied to the Customer's first utility bill. Upon termination of service, the District shall apply the deposit on hand to the unpaid service charges of the Consumer, and the excess, if any, will be paid to the Consumer. For purposes of multi- family residential customers, a $75.00 deposit will be required for each separate unit within a multi -family residential project. For purposes of commercial projects, such deposit will be equal to two times the estimated utility bill. Each person requesting interim water service through a temporary meter shall be required to pay a deposit of $1,000.00. A $1,000 deposit shall be required of each builder prior to any water taps being made for such builder in the District. Said deposit shall be refunded by the District upon written request by a builder; provided, however, that all or a portion of the deposit shall be forfeited as a penalty in the event that any provision of this Order or the District's Rules and Regulations Governing Sewer House Lines and Sewer Connections, as may be amended from time to time, is violated. The deposit described herein may be applied by the District to the cost of repair of any damage caused to District property by the builder or builder's agent, whereupon it will be the 94095-M 143293VI DW 15 builder's responsibility to reinstate the original amount of the deposit prior to the District's operator making any additional water taps for said builder. No interest will be paid by the District on such deposit. Section 2.8 Charge for returned checks The District shall charge a fee of $30.00 for each check issued for payment of water and/or sewer bills which is returned to the District by a bank due to insufficient funds. Section 2.9 Charge for Unauthorized Usage The District shall charge a fee of $50.00 for any meter which has been turned on or service otherwise reconnected by someone other than a duly authorized District representative. Section 2.10 Facility inspections a) Prior to starting any construction or improvement on a lot or tract in the District, the builder shall contact the Operator to arrange an inspection ("Pre -Construction Inspection") to verify the location and condition of District facilities on and in the vicinity of the lot or tract on which the construction or improvement will be built. At the time of the Pre -Construction Inspection, if any District facility has been damaged or cannot be located, the Operator will make necessary repairs to or locate such facilities at the expense of the District. A copy of the Pre - Construction Inspection report will be given to the builder. After the Pre -Construction Inspection has been performed and any necessary work has been completed, the builder will then be responsible for paying the costs of all damages, adjustments, relocations and repairs found during the inspections described in b) below. b) After construction has been completed on the lot or tract, but before service is transferred to or initiated for a Consumer, the Operator will conduct an inspection ("Post - Construction Inspection") to verify the location and condition of District facilities on and in the 44MS-art 145283VI DW 16 vicinity of the lot or tract on which the construction or improvement has been built. The builder will be held responsible for any damages or adjustments to or relocations of District facilities found to be necessary as a result of the Post -Construction Inspection and shall pay the cost of repairing, adjusting or relocating the facilities before service will be transferred to or initiated for a Consumer. The Operator may conduct any re -inspections as necessary to ensure that the District's facilities are repaired, adjusted or relocated, and the builder shall pay the fee for any such re -inspections before service will be transferred to or initiated for a Consumer. The District may withhold service to the lot or tract or to other property owned by any builder who has failed to pay the District for any other repairs, adjustments, relocations or re -inspection fees, including specifically the provision of additional taps to such builder. C) The total fee for the Pre -Construction and Post -Construction Inspections described in Section 2.7 a) and b) shall be $50.00 each, which is due at the time the tap fee is paid. If any re -inspections are required, a fee of $50.00 shall be paid for each such re -inspection. Section 2.11 Transfer fee The District shall charge a fee of $35.00 to transfer an account from one customer to another. ARTICLE III Tap Charges Section 3.1 Residential water tgR charges a) The following charge shall be made for every residential (including duplex) tap or connection up to and including a 3/4 -inch connection, to the District's water distribution system, which charge shall include the meter and meter box and the installation thereof. $825.00 plus the District's cost for the required meter and meter box. 94095.002145283VI DW 17 b) The following charge shall be made for every residential (including duplex) tap or connection for a 1 -inch connection, to the District's water distribution system, which charge shall include the meter and meter box and the installation thereof $1,000.00 plus the District's cost for the required meter and meter box. C) For connections of over 1 -inch, the District will establish tap charges by separate order or agreement. d) All tap charges shown above shall be paid when application for the tap or connection is made, and the request for service shall be held in abeyance until such charges have been paid. Section 3.2 Residential sewer tap inspection fee After the completion of a sewer tap as provided in Section 2.5, and the inspection thereof by the District's operator, the person requesting such sewer tap shall be charged the following rates for inspections for residential sewer taps: $50.00 per tap. In the event that a sewer tap must be reinspected, the person initially requesting such sewer tap shall be charged an additional $50.00 per connection. Section 3.3 Commercial water and sewer tap charges a) The following charge shall be made for every commercial tap or connection to the District's water, sanitary sewer or drainage facilities, other than a tap or connection for a Consumer which is a Nontaxable Entity; actual and reasonable costs for construction, installation and inspection of the tap or connection to District water, sanitary sewer or drainage facilities, including all necessary service lines and meters, plus 200% of the aforementioned costs. b) The following charge shall be made for every tap or connection to the District's water, sanitary sewer or drainage facilities by a Consumer which is a Nontaxable Entity: actual 44095-M 145283VI DW 18 costs to the District for construction, installation and inspection of the tap or connection to the water, sanitary sewer or drainage facilities, including all necessary service lines and meters. In addition, the District may charge to any Consumer which is a Nontaxable Entity an amount not to exceed the costs for all facilities that are necessary to provide District services to such Nontaxable Entity and that are financed or are to be financed in whole or in part by tax - supported bonds of the District. c) A deposit in the amount of the estimated costs of construction, installation and inspection of the tap or connection shall be paid when application for the tap or connection is made. The balance of the tap charges in Sections 3.3a) or b) above, as appropriate, shall be paid prior to commencement of service at the tap or connection, and the request for service shall be held in abeyance until such charges have been paid. d) In the event that a sewer tap must be reinspected, the commercial consumer initially requesting such sewer tap shall be charged an additional $100.00 per connection requiring reinspection. Section 3.4 Resident controlled homeowners' associations tap charges The following charge shall be made for every connection and tie-in line to the District's water distribution and/or sanitary sewer system, by a resident controlled homeowners' association, which charge shall include the meter and meter box and the installation thereof. the District's actual costs. 94W5 -M 345283VI nw 19 ARTICLE IV Rates for Service Section 4.1 Monthly rates for residential and builder water service a) The following rates per month shall be charged for water service furnished by the District through meters to each separate connection in every instance in which a different charge is not expressly and clearly provided for elsewhere herein: 0 to 3,000 gallons of water used over 3,000 gallons water used $10.00 $3.85/1,000 gallons b) The minimum monthly charge shall be $10.00. Until a meter is installed, the minimum amount shall be charged to such connection each month. Section 4.2 Monthly rates for water service to apartment projects The following rates for water service shall be charged to apartment projects furnished water through a master meter: same as residential rates set forth herein. Section 4.3 Monthly rates for water service to non-taxable facility In addition to the charges set forth in Section 4.2 above, the following rates shall be charged monthly to any facility that is exempt from District taxation and to which a Nontaxable Entity tap fee pursuant to Section 3.3 was not assessed: An amount equal to 1/12 of the District taxes the facility would have paid had the facility remained taxable as calculated by the District tax assessor/collector. Section 4.4 Monthly rates for water service to Commercial Consumers The following rates per month shall be charged for water service furnished by the District through meters to each separate commercial connection (excluding apartment projects) in every instance in which a different charge is not expressly and clearly provided for elsewhere herein: Same as residential rates set forth herein 94095.002145283V1 DW 20 Section 4.5 Monthly rates for water service to homeowners' associations a) The following rates per month shall be charged for water service furnished by the District to sprinklers in esplanades, in every instance in which a different charge is not expressly and clearly provided for herein: Up to 3,000 gallons of water used Over 3,000 gallons of water used $10.00 $3.85/1,000 gallons b) The minimum monthly charge shall be $10.00. Until a meter is installed, the minimum amount shall be charged to such connection each month. Section 4.6 Monthly rates for residential and builder sewer service a) The following rates per month shall be charged for sewer service furnished by the District through meters to each separate connection in every instance in which a different charge is not expressly and clearly provided for elsewhere herein: 0 to 3,000 gallons of water used Over 3,000 gallons of water used $10.00 $3.85/1,000 gallons b) The minimum monthly charge shall be $10.00. Until a meter is installed, the minimum amount shall be charged to such connection each month. Section 4.7 Monthly rates for sewer service to apartment projects The following rates for sewer service shall be charged to apartment projects furnished water through a master meter: $10.00 per unit Section 4.8 Monthly rates for commercial sewer service a) The following rates per month shall be charged for sewer service furnished by the District to Commercial Consumers in every instance in which a different charge is not expressly and clearly provided for herein: same as residential sewer service rates set forth herein. 94095-M 14S283V1 DW 21 Section 4.9 Monthly rates to builders for water and sewer service to unoccupied residences The following monthly rate shall be charged to builders for water and sewer service to unoccupied residences connected to the District's system: regular residential rate. Section 4.10 Texas Commission on Environmental Quality regulatory assessment The District shall assess and collect from each customer that receives retail water and/or sewer service from the District a regulatory assessment equal to 0.5% of the District's charges for such water and/or sewer service. The District shall not list the regulatory assessment as a separate item on customer utility bills, but the District shall instead deduct the amount of such regulatory assessments from the water and sewer service revenues assessed and collected pursuant to this Order. The District shall remit such regulatory assessments to the Texas Commission on Environmental Quality in the manner required by law. Section 4.11 No reduced rates or free service All Consumers receiving either water or sewer service, or both, 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 such Consumer. Section 4.12 Penalty for failure to pay bill before delinquent A charge of 15% of the amount of the Consumer's bill shall be added thereto when such bill has become delinquent as "delinquent" is defined in Subsection 1.1d) of this Order. 940 5-002 MUM x1 DW 22 ARTICLE V Meters Section 5.1 Title, tampering, maintenance, setting a) Title to all water meters and appurtenances, including the meter boxes enclosing same, shall vest in the District. b) No person other than a duly authorized agent of the District shall open the meter box or tamper or in any way interfere with the 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 Consumer whose meter has been tampered with, and assess repair charges to such Consumer plus a damage fee of $50.00, and pursuant to Section 7.1 below, to impose a penalty. c) The District will maintain, repair and replace all meters and appurtenances in connection therewith at its cost. d) All meters shall be set by employees or agents of the District. e) All persons causing damage to District facilities shall be back charged for the costs thereof. All such back charges shall be equal to 110% of the cost to the District for materials and labor associated with the repair of such damages. Section 5.2 Meters and boxes to be free from rubbish and obstructions After a meter has been set, the Consumer shall at all times keep the space occupied by and around the meter, box and manhole free from rubbish or obstructions of any kind. The District reserves the right to remove, at any time and at no cost to the District, all obstructions, including shrubbery, landscaping or other similar improvements located on a District or public 94095-00214S293V1 DW 23 easement which may interfere with the prudent operation, maintenance, and repair of the District's facilities. ARTICLE VI Grease Traps Section 6.1 Grease trap inspections a) The operator or other duly authorized representative of the District shall be authorized, after providing reasonable notice to the landowner in advance, to enter upon any tract within the District to determine the necessity for a grease trap as defined in Section 1.1 of this Order. b) Any person who is responsible for a discharge into the District's sanitary sewer system for which, in the sole opinion of the District and its operator, a grease trap is required and who does not have an approved grease trap in place shall have 60 days from the date of notice by the District within which to construct and install the required grease trap and secure necessary approvals thereof. C) The operator or other duly authorized representative of the District. shall be authorized to conduct periodic inspections of all grease traps within the District that are subject to this order to ensure that grease traps are being maintained in effective operating condition and that all necessary manholes, inspection chambers and related facilities are being maintained and are fully operational. d) In the event a grease trap or any related facilities are found in an unserviceable condition or in need of cleaning or maintenance, the operator or other duly authorized representative of the District shall give written notice to the person responsible for the discharge for which the grease trap is required advising such person of the deficiencies and requesting 94095-002145293V1 DW 24 prompt attention to the matter. The operator shall conduct such follow-up inspections as may be necessary until the grease trap is in effective operating condition. e) The District may require that any customer who installs and maintains a grease trap submit a report on the cleaning and condition of the grease trap. Such report shall be under the terms of and in the form of a report required by the District. 0 The District may invoke the procedure described in Section 2.3 of this Order to discontinue water service to a tract or establishment in the event the owner or proprietor of said tract or establishment either (1) refuses to permit an inspection pursuant to this Section; (2) fails to timely submit a report on the condition of the customer's grease trap as required by the District; or (3) fails, within seven days after receiving written notice issued by the operator, the board of directors or other duly authorized representative of the District to correct any condition found to be in violation of the District's requirements for installation, maintenance and operation of the grease traps. In addition, the District may assess a fine of $100.00 per day to any party that fails, within seven days after receiving written notice of violation, to correct the condition prompting the notice. Section 6.2 Grease trap fee A monthly charge of $50.00 shall be made against each person responsible for maintenance of a grease trap pursuant to this Order. The charge (monthly grease trap fee) shall defray the District's expenses of periodic inspections of grease traps as provided in this Order. 94095-002145283V1 DW 25 ARTICLE VII Enforcement Section 7.1 Penalties Pursuant to the authority granted by §§ 49.004 and 54.205, Texas Water Code, as amended, it is hereby declared and ordered that the Board may levy reasonable civil penalties, payable to the District, for the breach or violation of any requirement or rule herein stated, which penalties shall not exceed the jurisdiction of a justice court as provided in § 27.031, Texas Gov't Code, currently, up to $5,000.00 for each violation or each day of a continuing violation. The District may bring an action to recover the penalty in a district court in the county where the violation occurred. Such penalties shall be in addition to any other penalties provided by the laws of the State of Texas. Further, in any suit to enforce its rules, the District shall seek to recover reasonable fees for attorneys, expert witnesses and other costs incurred by the District before the court. Notice of the rules and penalties set forth herein shall be published once a week for two (2) consecutive weeks in one or more newspapers with general circulation in the area in which the District is located. ARTICLE VIII Miscellaneous Section 8.1 Savings If any word, phrase, clause, paragraph, sentence, part, portion or provision of this Order or the application thereof to any person or circumstance shall ever be held by a court of competent jurisdiction to be invalid or unconstitutional, the remainder of this Order shall nevertheless be valid, and the Board declares that this Order would have been adopted without 94WS-002 DW 26 such invalid or unconstitutional word, phrase, clause, paragraph, sentence, part, portion or provision. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) 9409s-002145283VI nw 27 The president or vice president is authorized to execute and the secretary, assistant secretary or secretary pro tempore to attest this Order on behalf of the Board and the District. Passed and adopted, this December 13, 2006. 94695-002 145283V 1 DW 28 I..4. 1: SERVICE AGREEMENT I. PURPOSE. The Chambers County Improvement District No. 1 (hereinafter referred to as the "District") is responsible for protecting the drinking water supply from contamination or pollution which could result from improper plumbing practices. The purpose of this Service Agreement is to notify each customer of the plumbing restrictions which are in place to provide this protection. The District enforces these restrictions to ensure the public health and welfare. Each customer must sign this agreement before the District will begin service. In addition, when service to an existing connection has been suspended or terminated, the District will not re-establish service unless it has a signed copy of this agreement. II. PLUMBING RESTRICTIONS. The following unacceptable plumbing practices are prohibited by State regulations. A. No direct connection between the public drinking water supply and a potential source of contamination is permitted. Potential sources of contamination shall be isolated from the public water system by an air -gap or an appropriate backflow prevention device. B. No cross -connection between the public drinking water supply and a private water system is permitted. These potential threats to the public drinking water supply shall be eliminated at the service connection by the installation of an air -gap or a reduced pressure -zone backflow prevention device. C. No connection which allows water to be returned to the public drinking water supply is permitted. D. No pipe or pipe fitting which contains more than 8.0% lead may be used for the installation or repair of plumbing at any connection which provides water for human use. E. No solder or flux which contains more than 0.2% lead can be used for the installation or repair of plumbing at any connection which provides water for human use. III. SERVICE AGREEMENT. The following are the terms of the Service Agreement between the District and (the "Customer"). A. The District will maintain a copy of this agreement as long as the Customer and/or the premises is connected to the District's water system. 94095.M 145283VI DW B. The Customer shall allow his property to be inspected for possible cross -connections and other unacceptable plumbing practices. These inspections shall be conducted by the District or its designated agent prior to initiating new water service; when there is reason to believe that cross -connections or other unacceptable plumbing practices exist; or after any major changes to the private plumbing facilities. The inspections shall be conducted during the District's normal business hours. C. The District shall notify the Customer in writing of any cross -connection or other unacceptable plumbing practice which has been identified during the initial inspection or the periodic reinspection. D. The Customer shall immediately correct any unacceptable plumbing practice on his premises. E. The Customer shall, at his expense, properly install, test, and maintain any backflow prevention device required by the District. Copies of all testing and maintenance records shall be provided to the District. IV. ENFORCEMENT. If the Customer fails to comply with the terns of this Service Agreement, the District shall, at its option, either terminate service or properly install, test, and maintain an appropriate backflow prevention device at the service connection. Any expenses associated with the enforcement of this Service Agreement shall be billed to the Customer. DATE: CUSTOMER'S SIGNATURE: Printed Name Mailing Address Telephone Number 94095-M 145293V1 DW Name of PWS: _ Location of Service EXHIBIT `B„ Customer Service Inspection Certification PWS I.D.#: Reason for Inspection: New construction................................................................................................. ❑ Existing service where contaminant hazards are suspected ................................. ❑ Major renovation or expansion of distribution facilities ...................................... O 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: (1) No direct connection between the public drinking water supply and a potential source of compii— Non -Compliance 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 Commission regulations. 0 0 (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 assembly tester. 0 0 (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 or pipe fitting which contains more than 8.0% lead exists in private water distribution facilities installed on or after July 1, 1988. (5) No solder or flux which contains more than 0.2% lead exists in private water distribution facilities installed on or after July 1, 1988. 0 0 0 0 0 0 I further certify that the following materials were used in the installation of the private water distribution facilities: Service lines Lead ❑ Copper a PVC ❑ Other ❑ Solder Lead ❑ Lead Free ❑ . Solvent Weld ❑ Other o I recognize that this document shall become a permanent record of the aforementioned Public Water System and that I am legally responsible for the validity of the information I have provided. Remarks: Signature of Inspector Title Date: 94095 -OM 145283 V I nw Registration Number Type of Registration EXHIBIT "C„ The following form must be completed for each assembly tested. A signed and dated original must be submitted to the public water supplier for record keeping purposes: BACKFLOW PREVENTION ASSEMBLY TEST AND MAINTENANCE REPORT NAME OF PWS: PWS I.D. # 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. ❑ Reduced Pressure Principle o Double Check Valve ❑ Pressure Vacuum Breaker Manufacturer Model Number Serial Number TYPE OF ASSEMBLY ❑ Reduced Pressure Principle -Detector ❑ Double Check -Detector ❑ Spill -Resistant Pressure Vacuum Breaker Size Located At Is the assembly installed in accordance with manufacturer recommendations and/or local codes? Test gauge used: Make/Model Remarks: The above is certified to be true at the time of testing. Firm Name Firm Address SN: Certified Tester Calibration Date: Cert. Tester No. Date Firm Phone # • TEST RECORDS MUST BE KEPT FOR AT LEAST THREE YEARS •• USE ONLY MANUFACTURER'S REPLACEMENT PARTS 94095-002145233V1 DW Reduced Pressure Principle Assembly Pressure Vacuum Breaker Double Check Valve Assembly Air Inlet Check Valve 1st Check 2nd Check Relief Opened at psid Held at _ psid Valve Initial Test Held at psid Held at psid Opened at psid Closed tight o Closed tight ❑ Did not open ❑ Did not Open a Leaked ❑ Leaked ❑ Leaked ❑ Repairs and Materials Used Test After Repair Held at psid Held at psid Closed Tight ❑ Closed Tight ❑ Opened at psid Opened at psid Held at psid _ Test gauge used: Make/Model Remarks: The above is certified to be true at the time of testing. Firm Name Firm Address SN: Certified Tester Calibration Date: Cert. Tester No. Date Firm Phone # • TEST RECORDS MUST BE KEPT FOR AT LEAST THREE YEARS •• USE ONLY MANUFACTURER'S REPLACEMENT PARTS 94095-002145233V1 DW ARTICLE III. WATER SERVICE* Exhibit "C' ARTICLE III. WATER SERVICE* Page 1 of 12 *Cross references: Plumbing code, § 18-461 at seq.; water in mobile home parks, § 58-144. State law references: Authority of city to operate waterworks and set rates, V.T.C.A., Local Government Code § 402.017. 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 $125.00 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 cash, irrevocable bank letter of credit, an assignment of security or a bond. An irrevocable bank letter of credit must be drawn on an FDIC -Insured bank located within Harris County or Chambers County and shall be for a period of not less than one year. Any security pledged In an assignment of security shall be approved by the utility office manager and placed in an FDIC -insured bank located within Harris County or Chambers County. A bond tendered pursuant to this subsection must be Issued by a surety licensed to do business in the httpJ/library2.municode.conVmcc/DocView/10022/1/312/315 5/2/2007 ARTICLE M. WATER SERVICE* Page 2 of 12 state, be in a form approved by the city attorney, and have a term of not less than one year. (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) 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 water tap ... $ 450.00 (2) One -inch water tap ... 500.00 (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 water tap ... $ 600.00 (2) One -inch water tap ... 650.00 (c) All other taps and other special water connections shall be made at actual cost, as determined by the utility billing supervisor, 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) 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 $10.00. (Code 1967, § 31-55.1; Ord. No. 2738, § 2, 9-27-79; Ord. No. 6005, § 5, 9-26-91) Sec. 98-59. Rates. (a) Basic rate schedule. The basic water rate schedule shall be as follows: (1) Rate table. TABLE INSET: Gallons of Water Used per Month: I Amount or Rate to be Charged: a. First 2,000, minimum monthly rate ... $10.15 b. All over 2,000, per 1,000 gallons ... 3.85 (2) Penalty. Any user or customer who does not pay the amount due by the due dale Indicated on his statement shall be charged a late charge, as provided in section 98-61. httpJ/Iibrary2.municode.com/mcc/DocView/10022/1/312/3 15 5/2/2007 ARTICLE III. WATER SERVICE'S (b) Residential dwelling units. Page 3 of 12 (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. (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 occupied units in the project served by the meter as of the first day of the current month to determine the per-unit water consumption. The number of occupied units in the project shall be taken to be the total number of units in the project, unless the project manager shall report to the city by the tenth day of the month the actual number of occupied units as of the first day of the current month, in terms as follows: "Utility Billing Supervisor City of Baytown P. O. Box 424 Baytown, Texas 77520 Dear Sir: I hereby certify that I am the owner (or manager) of a multifamily dwelling project located at Street, Baytown, Texas. This project is known as the (Indicate the project's name, If applicable). I hereby certify that the aforementioned project has (number) units. I further certify that as of the first day of the current calendar month, there were (number) occupied units in the project, and that there were (number) unoccupied units. I understand that the information hereby given is to be used by the City of Baytown in computing the current month's water service charge for this project. I also understand that this information must be received by the City of Baytown no later than the tenth day of each month in order to be considered. I further understand that the information hereby given may be verified at any time upon the request of the Utility Office Manager of the City of Baytown. (Signature) Manager or Owner" b. The per-unit water consumption will determine the applicable charge for each occupied unit based upon the rate schedule in subsection (a) of this section; and c. The applicable water service charge for each occupied unit will be multiplied by the number of occupied 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 occupied/rental spaces served by the meter at the time the meter is read to determine the per unit water consumption; (2) The per unit water consumption will determine the applicable water service charge for each occupied/rented space based upon the rate schedule in subsection (a) of this section; and http://Iibmry2.municodc.com/mcc/DocView/10022/1/312/315 5/2/2007 ARTICLE III. WATER SERVICE* Page 4 of 12 (3) The applicable charge for each occupied/rented space will be multiplied by the actual number of occupied/rented 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 upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule In subsection (a) of this section. (2) Jointly metered units. The monthly water service charge for multiunit commercial 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 as of the first day of the current month to determine the per-unit water consumption; and b. The per-unit water consumption will determine the applicable monthly water service charge for each unit based upon the rate schedule. (e) Combinations of residential dwelling units and commercial units. The applicable monthly water service charge for each unit of a complex containing a combination of dwelling units and commercial units, with units not individually metered for water, shall be determined as follows: The total monthly water consumption for the complex will be divided by the number of units In the complex to determine the per-unit water consumption. (f) Service for property outside the city. (1) Reserved. (2) Monthly service charges. A person outside the city limits and authorized by the director of utilities to receive water service from the city shall pay a monthly water 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; or b. Any other amount as may be otherwise 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 charged $2.52 per 1,000 gallons of water. 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 shad be charged a late charge, as provided In section 98-61. http://Iibmry2.municode.com/mcc/DocView/10022/1/312/315 5/2/2007 ARTICLE III. WATER SERVICE* Page 5 of 12 (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) 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 commercial establishment shall be individually metered for water service. (Code 1967, § 31-57; Ord. No. 943, § 4, 11-7-68; Ord. No. 2328, § 1.10-13-77) 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 http://libmry2.municode.com/mcc/DocView/10022/1/312/315 5/2/2007 ARTICLE IiI. WATER SERVICE* Page 6 of 12 is turned on again by anyone other than authorized personnel of the utility billing division or when, in the opinion of the utility billing office supervisor, 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 against the use of water, waste or misuse of water, the utility billing office supervisor may cause the water to be cut off and the service line to be cut and plugged. Upon a reapplication for water service, the cost of reconnecting the service will be charged to the customer plus an additional service fee of $10.00. (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, the charge will be $10.00; 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 $15.00. (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, the city reserves the right to cut off and discontinue water service until all charges due have been paid. (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. (f) 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 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 testing fee of $15.00. (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 (1)(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. (i) Nonemergency termination. (1) Generally. Whenever the city is authorized to terminate a customers water services against that customers consent and under this section or whenever the city otherwise terminates water services to a customer in a nonemergency situation other than by the customers 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 terminale water after a declared termination date. http:/Aibrary2.municode.corn/mcc/DocView/10022/1/312/315 5/2/2007 ARTICLE III. WATER SERVICE* Page 7 of 12 (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 (1)(2) of this section. (5) Nearing. 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 http://Iibmry2.municode.com/mcc/DocViewilOO22/l/312/315 5/2/2007 ARTICLE 111. WATER SERVICE* Page 8 of 12 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 customers 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 customers 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 utilities 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 $15.00. (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) 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 besubject 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 http://Iibmry2.municode.com/mcc/DocView/10022/1/312/315 SrM007 ARTICLE III. WATER SERVICE* Page 9 of 12 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. (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 thefiling 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 38-62(1) 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: http://libmry2.municode.com/mcc/DocVicw/10022/l/312/315 5/2/2007 ARTICLE III. WATER SERVICE' Page 10 of 12 (1) After the city has terminated a customers water service pursuant to subsection 98- 59(1) 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 garbage collection service and in the amount the customer whose service was terminated owed to the city for garbage collection service atthe 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 customers water service pursuant to subsection 98- 62(1) or after the city terminates water service or sewer service at the customers 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 thetime 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. If a customer owes less than $50.00 for the aggregate sum of water charges, garbage collection charges and sewer charges at the time of termination of any of those services, no lien shall be filed against the property served by those services. if the customer is not delinquent in payment at the time of termination of any of the services, no lien shall be filed until that customer becomes delinquent in payment. No lien shall be filed on any property the city knows to be a homestead as defined by the state constitution. (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 servicesrendered to that property. Such a lien shall be filed pursuant to the authority granted In Vernon's Ann. Civ. SL 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 againsithat 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 city clerk shall within 30 days of the filing of that lien give the owner of that property and the account holder http://library2.municode.cont/mcc/DocView/10022/1/312/315 5/2/2007 ARTICLE III. WATER SERVICE" Page 11 of 12 notice that such a lien has been filed an 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 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 orany 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. However, 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 waterand 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) Rental property. (1) The owner of any property, which property is rented to another and such tenant carries city water, sewer or garbage collection services In the tenant's name, may prevent the city from using that property as security for the water, sewer and garbage collection service charges for service to that property and from filing any lien on such property under this section by filing with the city utility billing division a declaration In writing specifically naming the service address of that property and declaring such to be rental property, which the owner does not wish to be security for the water, sewer and garbage collection service charges for service to that property. (2) When such declaration has been filed with the city prior to the time the account holder begins to receive services, the city shall collect a deposit in the amount of $125.00 pursuant to subsection 98-56(b)(1). If a property owner wishes to declare in regard to the bill of a person already receiving services at a particular property, that declaration shall not be effective until the posting of a deposit in the amount of $125.00 required by subsection 98-56(b)(1). (3) Subsection (i)(2) of this section notwithstanding, an owner of property who files the declaration on property which is rented to another and the tenant is carrying the city water, sewer or garbage collection services in the tenant's name on the effective date of the ordinance from which this section derives, such declaration shall become Immediately effective without the posting of a deposit In the amount of $125.00 as described in subsection 98-56(b)(1). However, if water service Is terminated to that tenant for delinquency in payment, a deposit in the amount of $125.00 pursuant to subsection 98-56(b)(1) shall be collected before such city water, sewer or garbage collection service is resumed. Any service account for water, sewer or garbage collection service established after September 26, 1991, shall be subject to subsections (1)(1) and http://Iibrary2.municode.cora/mcc/Doc V iew/ 10022/1/312/315 5/2/2007 ARTICLE III. WATER SERVICE* Page 12 of 12 (2) this section. (4) The declaration of rental property shall be valid only so long as the person making such declaration owns such property, rents such property to another and the tenant of such property carries city water, sewer or garbage collection services In the tenant's name. The owner may revoke the declaration of rental property at any time by so notifying the city In writing. (j) 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) Secs. 98-66--98-90. Reserved. http://Iibrary2.municode.com/mcc/DocView/10022/1/312/315 5/2/2007 Exhibit "D" AMENDATORY CONTRACT BETWEEN SAN JACINTO RIVER AUTHORITY AND THE CITY OF HOUSTON. TEXAS THE STATE OF TEXAS I I COUNTY OF HARRIS I THIS CONTRACT executed as of the.r??day of ..�� 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 corooration: 1. The provisions of Section VII of the contract between the parties dated March 27, 1944. shall have no application to sales 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 created 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 Commission on December 1, 1975. and for no other pur- poses, and only within the boundaries of BAWA as such boundaries exist 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 west. Archer Road on the south. and Cedar 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 the part of BAWA to observe the limitations and restrictions imposed on the City by the contract dated March 27. 1944, as modified by this contract. 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 shal' be responsible for the enforcement of such covenants, but the; shall 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 limitations, 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 City for the estimated amount distributed. sold or used in 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 BAWA for water sold under this waiver, but such payments to SJRA shall not extend beyond a period of 20 years. Payment shall be made on a quarterly bas: on or before the 10th day of the month following each calendar quarter. -2- 5. The contract shall not be assignable by either party without the written consent of the other; however the obligation imposed hereunder shall be binding on their successors or assign. 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 assign 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 March 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 Y day of 19; in duplicate originals. each of which shall constitute an origina SAN JACINTO RIVER AUTHORITY ATTEST: By 8y tom 44.10-Z4,44.10-Z4,ice- re nt N secretary CITY OF HOUSTON ATTEST: By .a r By ty Secretary COUNTERSIGNED: ty Controller