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Ordinance No. 11,911
ORDINANCE NO. 11,911 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING A WATER SUPPLY AGREEMENT WITH CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown hereby authorizes and directs the City Manager to execute a Water Supply Agreement with Chambers County Improvement District No. 3. Said agreement is attached as Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately the City Council of the City of Baytown. 10 INTRODUCED, READ and PASSED, by the City of Baytown this the 12a' day of April, 2012. U LETICIA B S� •`tis APPROVED AS i NAC10 RAMIREZ, SR., City A orney \\Cobfs0l\legal\Karen\Files\CityCouncil\Ordinances\2012Wpril 12\CCID3WaterSupplyAgreement.doc and after its passage by of the City Council of the RLOS, Mayor Exhibit "A" WATER SUPPLY AGREEMENT BETWEEN THE CITY OF BAYTOWN, TEXAS AND CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3 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. 3, a municipal utility district created pursuant to Article XVI, Sections 52 and 59, Texas Constitution (the "District"). 1. The City is a municipal corporation and home -rule city principally located in Harris County, Texas. The City owns, operates and maintains a water supply and distribution system supplying water to residents of the City. 2. The District is a municipal utility district created pursuant to Article XVI, Sections 52 and 59, Texas Constitution. 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 552.001 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 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 880.30 acres and 2,175 (400 gpd/ESFC) 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 "TCE " 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. Page 2 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 CityApproval of Plans and Specifications. Prior to the initiation of any construction of the District's System, the engineers of the District shall submit to the City Engineer for written approval the plans and specifications for the District's System. No construction of the District's System shall begin until such plans and specifications are approved in writing by the City Engineer. The District's Engineer will provide the City, upon completion of the construction, with one set of "as built" drawings, which meet the approval of the City Engineer and certification that the District's System was built in accordance with the City's standard plans and specifications and as indicated in the "as built" drawings. The District will likewise obtain approval for and supply the City with "as built" drawings and similar certification for any subsequent alterations or modifications made to the District's System during the term of this Agreement. 2.03 Inspection. The District specifically grants the City the right to inspect at any time any and all construction of the District's System in order to determine whether such construction is in conformance with the City's standards and the approved plans and specifications. Should all or any portion of the District's System, whether detected during construction or after completion thereof, be found by the Director not to conform in some material respect with the City's standards or the approved plans and specifications, then the District shall immediately upon receiving written notice from the City of such non-conformance take those remedial steps necessary to meet the required standards, regardless of when such non- conformity is detected. The District's System must be brought into conformity with the City's standards and the approved plans and specifications within thirty (30) days of the District's receipt of notice of non-conformance, unless an extension is approved in writing by the Director. Failure to adequately and timely remedy the District's System shall be construed as an Event of Default for which no additional opportunity to cure shall be given. 2.04 Points of Connection. The points of connection between the City's System and the District's System shall be approved by the Director and shall not be changed without prior written approval of the Director. 2.05 Completion of Construction. Upon completion of the construction provided for in Section 2.01, both the City and the District agree as follows: (i) the City shall deliver to the District and the District shall accept from the City water in quantities as specified in Article IV Water Sueply Agreement, Page 3 herein, for the price and at the point or points of delivery herein provided, consistent with other limitations as stated herein. 2.06 Commencement of Use of Interconnections. The Interconnections shall be placed into operation only upon the inspection and approval of the Interconnections and the District's System by the engineers of the City and the District. Furthermore, the City reserves the right to reject any Interconnection designated by the District which would, in effect, interfere with or increase the cost of any other facilities or operations which the City might wish to construct or implement, or plan to construct or implement, or which would adversely affect the City's ability to provide water services to any of its customers. 2.07 Water Measuring Equipment. The District will, at its sole cost and expense, furnish and install at any and all interconnections all measuring equipment as may be required by the City, including, but not limited to, meters, totalizers, backflow preventers and devices of standard type for measuring and recording accurately the quantity of water delivered within an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow. It is expressly understood and agreed by the parties hereto that a Fire Protectus III master meter, Combination Fire and Domestic Water Meter Assembly by Park Environmental Equipment, or other meter specified by the City, measuring total flow through the Interconnection having an accuracy tolerance of two percent (2%) plus or minus for a given rate of flow, is required and must be approved and inspected by the City prior to the City being obligated under this Agreement to deliver any water to the District. Such measuring equipment shall be approved by the City; and after the City's approval of the installation, the same shall become the property of the City. (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 (20/o), 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 Agreement, Page 4 (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 2.07 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, Page 5 3.02 City's Plumbing Code. 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 18-462 of the Code of Ordinances, as amended, for each inspection made by the City pursuant to this provision. If any such notices are not complied with, the District shall discontinue service when this may be legally done pursuant to the District's Rate Order upon the request of the City to do so. A copy of such rate order is attached hereto as Exhibit "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 Responsibility for Water. Title to, possession, and control of water shall remain in the City, or its assigns, to the Point of Delivery where title to possession, and control of water delivered under this 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. Page 6 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. The maximum amount of total treated water that the City shall be obligated to provide shall be the alternate capacity requirement assigned by the TCEQ to the District. As such, the District is hereby required to submit a request to obtain alternative capacity requirements from the TCEQ in accordance with 30 TAC §290.45(g) within one year of the Effective Date. Until such alternative capacity requirement is obtained, it is stipulated that the District's total treated water requirements shall not exceed 870,000 gallons per day average daily flow. The City shall not be required at any time during the term of this Agreement be required to provide more than 870,000 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. Water SupplyAgreement. Page 7 ARTICLE V PAYMENT AND TERMS 5.01 Impact Fees. The District shall pay to the City impact fees, which shall be charged against new development within the Service Area in order to generate revenue for funding or recouping the cost of capital improvements or facility expansions necessitated by and attributable to the new development, pursuant to Article IV, Chapter 114 of the Code of Ordinances, as hereinafter amended. The impact fees may be adjusted from time to time by the City Council, and the District shall be required to pay the rate in effect at the time payment is due. 5.02 Monthly Service Charge. The District shall pay to the City in monthly installments 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. 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 1 oth day of each month concerning the prior month's operations. After receipt of each preliminary operating report, the City will generate an invoice specifying the amount due and owing for the report period. The District shall present both the preliminary operating report and the corresponding invoice to its Board of Directors each month on or before the third Thursday of the month for the Board's review and approval. On or before the Friday after the third Thursday of each month, the District shall tender to the City a final operating report for the previous month in a form approved by the City's Director of Finance containing a certification by the presiding officer of the Board that the information contained in the report is true and correct. Should there be any difference between the preliminary and final operating reports, which affects the amount due and Water Supply Agreement, Page 8 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 City by suit, there shall be reasonable attorneys' fees added thereto for collection thereof by suit. Failure to pay charges when due shall constitute an Event of Default. Notwithstanding any of the above, in the event the District fails to tender payment of any amount when due and such failure continues for thirty (30) days after notice in writing to the District of such default, the City may suspend delivery of services offered hereunder, but the exercise of such right shall be in addition to any other remedy available to the City. 5.06 Modifications. Although the City believes that the present charges for such services as set forth herein are fair and reasonable, nonetheless, the parties realize that the City may increase the charges for such services, whether by amendment of the rate schedule for like services outside the City limits upon which the service charges levied hereunder are based, or by other means. 5.07 Operating Expense and Covenants as to Rates. The sums to be paid the City by the District under the terms of this 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. Water Supply Agreement, Page 9 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. 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. Water SuRRly Agreement, Page 10 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 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 Maieure. In the event any party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this 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, Water Supply Agreement, Page 11 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. 7.02 Approval. Whenever this Agreement requires or permits approval or consent to be hereinafter given by any party, such approval or consent shall not be unreasonably withheld, and, if finally given, shall be effective without regard to whether such approval or consent is given before or after the time required herein. Such approval or consent on behalf of a party shall be evidenced by an ordinance or resolution adopted by the governing body of the party, or by an appropriate certificate executed by a person, firm or entity previously authorized to determine and give such approval or consent on behalf of the party pursuant to an ordinance or resolution adopted by the governing body, unless stated otherwise herein. 7.03 Address and Notice. Unless otherwise provided in this Agreement, any notice, communication, request, reply or advice (herein severally and collectively for convenience, called "Notice") herein provided or permitted to be given, made or accepted by any party to the other must be in writing and may be given or served by depositing the same in the United States mail, postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of such party, or by prepaid telegram, when appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this Agreement, from and after the expiration of three (3) days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party to be notified. However, in the event of service interruption or hazardous conditions, neither party will delay remedial action pending the receipt of formal notice. For the purpose of notice, the address of the parties shall, until changed as hereinafter provided, be as follows: If to the City, to City of Baytown City Manager P.O. Box 424 Baytown, TX 77522 Fax: (281) 420-6586 Water Supply Agreement, Page 12 If to the District, to Chambers County Improvement District No. 3 Attn: Peter T. Harding 1300 Post Oak Boulevard, Suite 1400 Houston, TX 77056 Fax: 713-623-6143 The parties shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address, provided at least fifteen (15) days' written notice is given of such new address to the other parties. 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. 7.05 Regulatory Agencies. This Agreement shall be subject to all present and future valid laws, orders, rules and regulations of the United States of America, the State of Texas, and of any regulatory body having jurisdiction. 7.06 No Additional Waiver Implied. The failure of any party hereto to insist, in any one or more instances, upon performance of any of the terms, covenants or conditions of this Agreement, shall not be construed as a waiver or relinquishment of the future performance of any such terms, covenants or conditions by any other party hereto, but the obligation of such other party with respect to such future performance shall continue in full force and effect. 7.07 Modification. Except as otherwise provided herein, this Agreement shall be subject to change or modification only with the mutual written consent of the parties hereto. 7.08 Parties in Interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third party. The City shall never be subject to any liability in damages to any customer of the District for any failure to perform its obligations under this Agreement. 7.09 Captions. The captions appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. 7.10 Severability. The provisions of this Agreement are severable, and if any provision or part of this Agreement or its application thereto to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provisions or part of this Agreement to other persons or circumstances shall not be affected thereby. Water Supply Agreement, Page 13 7.11 Merge . 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 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 , 2011. DISTRICT (Signature) By: (Printed Name) (Date) (Title) Chambers County Improvement District No. 3 Water Supply Agreement, Page 14 ATTEST: (Signature) (Printed Name) (Title) APPROVED AS TO FORM: (Signature) (Printed Name) (Title) CITY ROBERT D. LEIPER (Date) City Manager City of Baytown, Texas ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney \\Cobfs0l\legal\KarcnTiles\Contracts\CCID 03\Water Supply Agreement - Baytown - 2-3-2012 FINAL.doc Water Supply Agreement, Page 15 Exhibit A Chambers County Improvement District No. 3 880.30 Acres STATE OF TEXAS COUNTY OF CHAMBERS § Jacob Townsend Survey Abstract No. 25 R. A West Survey Abstract No. 314 Kate Dugat Survey Abstract No. 416 A. B. J. Winfree Survey Abstract No. 306 A METES S BOUNDS description of a certain 880.30 acre tract, situated in the Jacob Townsend Survey, Abstract No. 25, the R. A. West Surrey, Abstract No. 314, the Kate Dugat Survey, Abstract No. 416, and the A. B. J. Winfres Survey, Absract No. 306 all in Chambers County, Texas; being all of a called 285.48 acre tract (Tract 1), all of a called 129.96 acre tract (Tract 2), and all of a called 2544.14 acre tract (Tract 3) described in Special Warranty Deed with Vendor's Lien recorded in Volume (08) 10671 Page 264 of the Chambers County Official Public Records, and all of a called 210.72 acre tract described in Special Warranty Deed recorded in Volume (08) 1074, Page 223 of the Chambers County Official Public Records; said 880.30 acre tract being comprised of three tracts and being more particularly described as follows with all bearings being based on the Texas Coordinate System, South Central Zone, NAD83; Tract I — 285.48 acres BEGINNING at the northeast comer of said called 285.48 acre tract, being common with a northwest comer of a called 11.89 acre tract conveyed to Coastal Industrial Water Authority recorded in Volume 313, Page 663 of the Chambers County Deed Records; THENCE, South 04019'04" West, 2683.79 feet to a point for comer in the.beginning of a curve to the right; THENCE, along the are of said curve to the right, having a radius of 930.06 feet, a central angle of 12032'5T, an arc length of 203.71 feet, and a long chord bearing South 10°35134" West, 203.30 feet to a.point for comer; THENCE, South 16055'29" West, 1096.02 feet to a point for corner .marking the southeast comer of the aforementioned called 285.48 acre tract, THENCE, South 87°37'03" West, along the south line of said called 285.48 acre tract, 3049.05 feet to a point for coemer marking the southwest comer of the said called 285.48 acre tract, THENCE, North 01°43'33" West along a west line of the said called 285.48 acre tract, being common with the east line of the B.B.B.&C. R.R. Co. Surrey, Abstract No. 61, 1108.94 feet to a point for corner marking a southern northwest comer of the said called 285.48 acre tract; THENCE, North 80°14'58" East, along the lower west line of the said called 285.48 acre tract, 421.47 feet to a point for comer marking an interior comer of the said called 285.48 acre tract; Chambers County Improvement District No. 3 880.30 Acres , Jacob Townsend Survey Abstract No. 25 R. A. West Survey Abstract No. 314 Kate Dugat Survey Abstract No. 416 A. B. J. Winfree Survey Abstract No. 306 THENCE, North 02°3944" West, along the upper west line of the said called 285.48 acre tract, 2708.36 feet to a point for comer marking the northwest comer of said called 285.48 acre tract, said point being the occupied northwest comer of the Jacob Townsend Survey, Abstract 25; THENCE, North 87°0416" East, along the north line of the called 285.48 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1773.49 feet to a point for corner, THENCE, North 87°15'45" East, along the north line of the called 285.48 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1579.36 feet to the POINT OF BEGINNING, CONTAINING 285.48 acres of land in Chambers County, Texas Tract il—129.96 acres BEGINNING at the northeast comer of the aforementioned 129.95 acre tract (in the north line of the Jacob Townsend Survey, Abstract 25), said point also marking the northwest comer of a, called 40.801 acre tract (Parcel 18) as described in Second Amended Notice of Lis Pendis recorded in Volume (07) 934, Page 280 of the Chambers County Official Public Records; THENCE, South 29047'53" West along the east line of said 129.96 acre tract common with the west line of said 40.801 acre tract being the west right-of-way line of State Highway 99, 2795.10 feet to a point for comer at the beginning of a curve to the left; THENCE, along the arc of said curve to the left, having a radius of 4019.72 feet: a central angle of 23°18'04"a chord length of 1623.51 feet, and a long chord bearing South 18008'51" West, continuing in, all a total arc length of 1634.75 feet to a point for comer at the southeast comer of the said 129.96 acre tract, said point also marking the southwest comer of said 40.801 acre tract; THENCE, South 8703W30" West, along the south line of said 129.96 acre tract (common with the south line of the Jacob Townsend Survey, Abstract 25), 1005.32 feet to a point for comer marking the southwest comer of said 129.96 acre tract, being in the occupied east right-of-way line of Needlepoint Road (as described in the parent tract deed); THENCE, along the west line of said 129.96 acre tract, described as being common with the occupied east right-of-way line of Needlepoint Road the following nine (9) courses and distances: 1. North 16'24'09" East, 1157.81 feet to a point for comer, 2. North 15019142" East, 41.33 feet to a point for comer; 2 Chambers County improvement District No. 3 880.30 Acres Jacob Townsend Survey Abstract No. 25 R. A. West Survey Abstract No. 314 Kate Dugat Survey Abstract No. 416 A. B. J. Winfree Survey Abstract No. 306 3. North 1502S18" East, 55.80 feet to a point for comer; 4. North 17"10'54" East, 45.19 feet to a point for comer; 5. North 08038'1 T' East, 37.06 feet to a point for comer, S. North 02031'50" East, 54.46 feet to a point for comer, 7. North 01057'55" East, 47.69 feet to a point for comer, S. North 01022126" East, 524.57 feet to a point for comer; 9. North 04"28'33" East, 2045.44 feet to a point for comer marking the northwest comer of said 129.96 acre tract; THENCE, Notch 89012'24" East, with the north line of said 129.96 acre tract (common with the north line of the Jacob Townsend Survey, Abstract 25), 1407.80 feet to a point for comer, THENCE, North 87°34'17" East, along the north line of said 129.96 acre tract, 944.50 feet to the POINT OF BEGINNING, CONTAINING 129.96 acres of land in Chambers County, Texas Tract III - 464.86 acres (combination of 254.14 and 210.72 acre tracts) BEGINNING at the northwest comer of the said 210.72 acre tract; THENCE, North 87"31'31" East, along the north line of said 210.72 acre tract, 1796.29 feet to a point for corner at a northeast comer of the said 210.72 acre tract; THENCE, South 03"07'50" East, along the east line of said 210.72 acre tract, 1709.93 feet to a point for corner, THENCE, North 88"05'10" East, with a north line of said 210.72 acre tract, 1716.89 feet to a point for corner, THENCE, South 01'40'35" East, along an east line of said 210.72 acre tract, 1242.97 feet to a point for corner, THENCE, South 87059'43"West, 3.91 feet to a point for comer; THENCE, South 01033'16" East, along an east line of the aforementioned 210.72 acre tract, 868.67 feet to a point for comer, 3 Chambers County Improvement District No. 3 880.30 Acres Jacob Townsend Survey Abstract No. 25 R. A. West Survey Abstract No. 314 Kate Dugat Survey Abstract No. 416 A. B. J. Winfree Survey Abstract No. 306 THENCE, South 88*18'21" West, 398.02 feet to a point for comer; THENCE, South 01 "2648" East,192.80 feet to a point for comer, THENCE, South 87"28'30" West, 819.13 feet to a point for comer; THENCE, South 02°30'46" East, 160.39 feet to a point for corner, THENCE, South 07"49'09" East, 360.01 feet to a point for comer, THENCE, South 15"38'38" East, 338.95 feet to a point for comer, THENCE, North 87027'23" East, 693.04 feet to a point for comer, THENCE, South 01 02648" East 19.26 feet to a point for comer; THENCE, South 87"43'36" East, 396.00 feet to a point for comer, THENCE, South 01 "27'10" East, 26.18 feet to a point for comer, THENCE,. South 89031'04" East, 598.07 feet to a point for comer, said point also being in the westerly right-of-way of Farm to Market Road (F.M.) 3180 (140 foot right-of-way), dedication of which is recorded in Volume 300, Page 622 of the Chambers County Deed Records; THENCE, South 07"09'09 West, along the westerly right-of-way of said F.M. 3180, 100.68 feet to a point for comer, THENCE, North 89031'04" West, 577.87 feet to a point for comer, THENCE, North 01033'16" West, 25.84 feet to a point for comer, THENCE, North 87"43'36" West, 497.18 feet to a point for comer; THENCE, North 04"36'34" West, 11.39 feet to a point for comer; THENCE, South 87027'23" West, 673.99 feet to a point for comer, THENCE, North 15038'45" West, 425.19 feet to a point for comer; THENCE, North 07049'09" West, 371.48 feet to a point for comer; 4 Chambers County Improvement District No. 3 Jacob Townsend Survey 880.30 Acres Abstract No. 25 R. A. West Survey Abstract No. 314 Kate Dugat Survey Abstract No. 416 A. B. J. Winfree Survey Abstract No. 306 THENCE, South 87°27'38" West, 509.36 feet to a point for comer, said east line of the aforementioned 254.14 acre tract; • point also being in the THENCE, South 02031116" East along the east line of the said 254.14 acre the east line of the Jacob Townsend Survey, Abstract 25), 2747.10 fee to tact (common with marking the southeast comer of said 254.14 acre tract; a point for comer THENCE, South 87039130" Vilest, along the south line of said 254.14 acre f atract the south line of the Jacob Townsend Survey, Abstract 25), 3790.48 feet to (common with a the east right-of-way line of State Highway 99 being described as a cal Point for comer in led 40.801 acre tract (Parcel 18) In Second Amended Notice of Lis Pendis recorded in Volume the Chambers County Offrclal Public Records, said point being in the are o a non-to-t Page cur of to the right; Page curve THENCE, along the west line of the said 254.14 acre tract, common with line of said State Highway 99 and the arc of said non -tangent curve to the right, east right-of-way of 3619.72 feet, a central angle of 22°18'55", an are length9ht, having a radius bearing North 18°38'26" East, 1400.90 feet to a point for comer, 1409.79 feet, and a long chord THENCE, North 29°47153" East, continuing along said east right-of-way line of State 99, 2795.78 feet to a point for comer at the beginning of a curve to the left; Highway THENCE, along the east line of said State Highway 99, and along the are left, having a radius of 3064.79 feet, a central angle of 57°06'39", an arc lengthof said curve to the and a long chord bearing North 01a14'33" East, 2,929.99 feet to a point for coon of 3,054.89 feet, met, THENCE, North 27°18'47" West, continuing along the east line of said 156.96 feet to a point for comer; d State Highway 99, THENCE, North 02'44'58° Vilest, 193.07 feet to the POI NT 464.86 acres of land in Chambers County, Texas, along with the herein NG, described 285-4 acre tract (Tract 1), and the herein described 129.98 acre tract (Tract 11 for tca e of 8 acre acres. ) tal acreage of 880.30 This document was prepared under 22 TAC 663.21, and does refl ground survey, and is not to be used to convey or establish interessttsti�n results of ty on the those rights and interests implied or established by the creation or mat prOPertY except subdivision for which it was prepared, config P:IPROJECTSM945"ational Property Haidngs1003%02tSURVEYILEGALSIPOUnCAL BOUNDARY V1 4� CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.3 Dated effective April 23, 2012 0II113113►U*O K^1 Page Section 1. Definitions I 1.01. Apartment(s).............................................................................................................................1 1.02. Builder(s)................................................................................................................................1 1.03. Commercial...............................................................................................................................1 1.04. Commercial Waste....................................................................................................................2 1.05. Cost................................................................................................................................2 1.06. Customer................................................................................................................................2 1.07. Customer Connection ...............................................................................................................2 1.08. Customer Service Inspection Certification...............................................................................2 1.09. Delinquent Bill..........................................................................................................................2 1.10. District's Engineer.....................................................................................................................3 1.11. District's Operator.....................................................................................................................3 1.12. Domestic Waste........................................................................................................................3 1.13. Drought Contingency Plan........................................................................................................3 1.14. Fire Line................................................................................................................................3 1.15. Health Hazard........................................................................................................................... 3 1.16. Industrial Waste........................................................................................................................4 1.17. Industrial Waste........................................................................................................................4 1.18. Nontaxable Entity.....................................................................................................................4 1.19. Park and Recreational...............................................................................................................4 1.20. Public Safety Facility................................................................................................................4 1.21. Residential................................................................................................................................4 1.22. System................................................................................................................................4 Section 2. Initial Connections to the District's System ('Taps') 4 2.01. Requirement to Connect to the District's System.....................................................................4 2.02. Septic System and Private Water Supply Systems...................................................................5 2.03. Application for Water and Sanitary Sewer Connections..........................................................5 2.04. Tap Fees................................................................................................................................5 2.05. Policies Governing Initial Connections....................................................................................6 (a) Certification...............................................................................................................6 (b) Availability of Access................................................................................................7 (c) Property of District....................................................................................................7 (d) Connections by District Operator..............................................................................7 (e) Submission of Plans for Commercial and Apartment Customer Connections .......... 7 (0 Builder Deposit..........................................................................................................9 (g) Swimming Pool and Hot Tub Connections................................................................9 2.06. Inspections..............................................................................................................................10 (a) Sanitary Sewer Inspections......................................................................................10 (b) Customer Service Inspection Certification.............................................................. I I (c) Inspection of District Facilities................................................................................ I I (d) City of Baytown Permit and Inspection Program 11 2.07. Temporary Water Service 12 Section 3. Rates and Fees for Water and Sanitary Sewer Services 13 3.01. Application Fee and Security Deposit....................................................................................13 3.02. Monthly Rates for Residential Water Service........................................................................14 -i- 283296.1 3.02. Monthly Rates for Residential Irrigation Water Service ...................................... 3.03. Monthly Rates for Residential Sanitary Sewer Service ........................................ 3.04. Monthly Rates for Commercial Water Service ..................................................... 3.05. Monthly Rates for Commercial Sanitary Sewer Service ...................................... 3.06. Monthly Rates for Water Service to Apartments .................................................. 3.07. Monthly Rates for Sanitary Sewer Service to Apartments ................................... 3.08. Monthly Rates for Water Service to Builders....................................................... 3.09. Monthly Rates for Sanitary Sewer Services to Builders ....................................... 3.08. Monthly Rates for Water Service to Park and Recreational Facilities ................. 3.09. Monthly Rates for Sanitary Sewer Services to Park and Recreational Facilities. 3.16. Regulatory Assessments and Fees........................................................................ 3.17. Drought Contingency Plan.................................................................................... 3.18. Bulk Rates............................................................................................................ 3.19. Policies Governing Services................................................................................. (a) No Reduced Rates or Free Service........................................................ (b) Entitlement............................................................................................. (c) Unauthorized and Extraordinary Waste ................................................. (d) Plumbing Regulations............................................................................ (e) Backflow Prevention Requirements...................................................... Section 4. Delinquency in Payment; Penalty; Discontinuation and Termination of Service 4.01. Penalty for Failure to Pay Bill Before Delinquency ............................................. 4.02. Termination of Service......................................................................................... 4.03. Discontinuing Service Upon Request of a Customer; After Hours Service ......... Section 5. Damage to District Facilities; Tampering 5.01. Damage to and Tampering With Meters and Appurtenances ............................... 5.02. Right to Repair....................................................................................................... 5.03. Obstructions........................................................................................................... 5.04. Stone Sewer System.............................................................................................. Section 6. Penalties for Violation; Attorney's Fees and Court Costs Section 7. Appeal; Accuracy of Meters Section 8. Amendments Section 9. Severability Exhibit "A" Fees Exhibit "B" Rates for Water and Sanitary Sewer Service Exhibit "C" Service Inspection Certification Form Exhibit "D" Sample Backflow Prevention Assembly Test and Maintenance Report ..........14 ..........14 ..........15 ..........15 ..........15 ..........16 ..........16 ..........16 ..........17 ..........17 ..........17 ..........18 ..........18 ..........18 ..........18 ..........19 ..........19 ..........20 ..........21 22 ..........22 ..........23 ..........23 24 .....24 ..........24 ..........25 ..........25 25 26 27 27 283296.1 WHEREAS, CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3 (the "District") owns water, sanitary sewer and storm sewer systems designed to serve present and future inhabitants within the District; and WHEREAS, it is necessary that fees, charges and conditions be ratified and established for providing service from the District's water and sanitary sewer systems; and WHEREAS, the Board of Directors has carefully considered the matter, including the establishment of rates and charges for classes of customers in accordance with Texas Water Code, Section 49.2122, as amended, and based upon, among other factors, the cost to construct and operate the facilities, and is of the opinion that the following fees, rates and conditions should be established for service from and protection of the District's water, sanitary sewer and storm sewer systems. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3, THAT THE FOLLOWING RATE ORDER IS HEREBY ADOPTED: Any Rate Order, and amendments thereto, heretofore adopted by the Board establishing rates for water and sewer service and pertaining to related matters shall be revoked on April 23, 2012, the effective date of this Rate Order (hereafter referred to as "Order"). Section 1. Definitions. For purposes of this Order, in addition to terms defined elsewhere herein, the following words or terms shall have the following meanings: 1.01. "Apartment(s)" shall mean dwelling structure(s) containing multiple dwelling units and shall include apartments, townhouses, condominiums and multiplexes. 1.02. 'Builders " shall mean a Customer who is constructing a new Residential structure for sale to a third party Customer upon completion of said structure. 1.03. "Commercial" shall mean and include any office building, hotel, retail store, clubhouse, warehouse, service station, or other establishment rendering a service or offering a -1- product for sale to the public, and any establishment not generally considered a single-family residence. 1.04. "Commercial Waste" shall mean liquid carried sanitary sewage discharged from Commercial Customer Connections which is properly shredded and amenable to biological treatment and which may contain trace amounts of sand, grit, lubricants and other petroleum products commonly associated with Commercial establishments such as service stations and car wash facilities. 1.05. "Cost" shall mean the District's actual cost of labor and materials with respect to the installation or repair of any facility or work performed by the District. 1.06. "Customer" shall mean the person, firm, corporation or other entity which receives District services for a Residential, Commercial, Apartment or other structure, whether the owner, renter, builder or lessee thereof. Inasmuch as this Order hereinafter makes it mandatory for each such structure to be connected to the District's System as soon as the District's System becomes operable, the term "Customer" shall mean and include the person, firm, corporation or other entity which requests District services for such structure at the time service becomes available to said structure. 1.07. "Customer Connection" or "Connection" shall mean each separately metered Residential, Apartment, Park and Recreational or Commercial facility that is physically connected to the District's System, whether occupied or not, and where appropriate, shall refer to the point of physical connection of such facility to the District's System. 1.08. "Customer Service Inspection Certification" shall mean the inspection and subsequent certification required to be provided to the District in the instances and in the manner set forth in this Order, and which shall be evidenced by the completion of a form in the form attached to this Order as Exhibit "C". 1.09. "Delinquent Bill" shall mean a bill for water and/or sanitary sewer service and/or other services, penalties and/or other charges of any nature imposed by the District, whether hereunder or pursuant to any Drought Contingency Plan or District order regulating -2- 283296.1 waste, for which payment in full (including, without limitation, all charges, penalties and late fees) has not been received before 5:00 p.m. of the twentieth (20th) day after the date of the bill (with respect to a regular monthly bill) or (with respect to delinquent or disconnection notices) before the date and time set forth in a notice from the District at an address specified therein for payment. 1.10. "District's En ig neer" shall mean the person, firm or corporation which the District has engaged to provide engineering services for the District. 1.11. "District's Operator" shall mean the person, firm, corporation, municipal corporation or political subdivision with which the District has contracted for operation and maintenance of the District's System. 1.12. "Domestic Waste" shall mean liquid carried sanitaiy sewage discharged from Residential Customer Connections (including Apartments) which is properly shredded and amenable to biological treatment, which is normally discharged from Residential food preparation and bathroom facilities, and which has biological oxygen demand (5-day) and total suspended solids concentrations not exceeding 200 milligrams per liter. 1.13. "Drainage Facility" shall mean any detention facility or drainage channel of the District and all extensions and additions thereto, whether now in place or hereafter constructed. 1.14. "Drought Contingency PI " shall mean any drought contingency or water conservation plan now in effect or hereafter adopted by the District. 1.15. "Fire Line" shall mean a water supply line installed or constructed for the sole purpose of providing water during a fire or other emergency. 1.16. "Health Hazard" shall mean a cross -connection, potential contamination hazard, or other situation involving any substance that could, in the opinion of the District, cause death, illness, or spread of disease, or which has a high probability of causing such effects if introduced into the District's potable drinking water supply. -3- 283296.1 1.17. "Industrial Waste" shall mean waste other than Commercial Waste and Domestic Waste 1.18. "Irrigation Water Service" " shall mean water service provided to a Customer through a separate meter designated for irrigation use only and which does not result in the discharge of waste into the District's sanitary sewer System. 1.19. "Nontaxable Entity" shall mean the owner of any property within the District that is exempt from the payment of ad valorem taxes levied by the District. 1.20. "Park and Recreational Facilities" shall mean landscaping in esplanades and green spaces within public rights -of -way or easements dedicated to a public body or non-profit homeowners association, landscaping in recreational areas owned and/or operated by a public body or non-profit homeowners association, and recreational facilities owned and/or operated by a public body or non-profit homeowners association existing primarily for the use and enjoyment of property owners within the District. 1.21. "Public Safety Facility"" shall mean any building, structure or other establishment owned by a Non -Taxable Entity that is engaged in providing police, fire protection, fire suppression, or emergency medical and transport services to the area within the District. 1.22. "Residential" shall mean and include only single family residences and shall not include Apartments unless specifically stated herein to the contrary. 1.23. "System", as used herein, shall mean the water and/or sanitary sewer and/or storm sewer facilities of the District and all extensions and additions thereto, whether now in place or hereafter constructed. Section 2. Initial Connections to the District's System ("Taps"). 2.01. Requirement to Connect to the District's System. Each structure within the District requiring water and/or sanitary sewer services shall be physically connected to the District's System as soon as the District has made water and sanitary sewer services available to such structure. It is the policy of the District that all properties within the District shall be -4- 283296.1 physically connected to both the sanitary sewer System and water System of the District. In the event that both water and sanitary sewer services are not available to a property at the time a Customer Connection is applied for, the Board of Directors, in its sole discretion, may permit connection to the water System or sanitary sewer System without requiring connection to both the District's water System and sanitary sewer System upon determination by the District that an acceptable alternative water source or wastewater treatment source is available to such property. If both water and sanitary sewer services do not become available at the same time, and if the District pen -nits connection to the water System or sanitary sewer System without requiring connection to both, the water connection must be made at the time water service becomes available and the sanitary sewer connection must be made at the time sanitary sewer service becomes available. 2.02. Septic System and Private Water Supply Systems. The construction and operation of septic systems and private water supply systems within the District shall be prohibited, unless the prior written consent of the Board of Directors, on terns and conditions deemed acceptable to the Board of Directors in its discretion, is otherwise obtained and satisfactory arrangements are made with all regulatory agencies with jurisdiction over such matters. 2.03. Application for Water and Sanitary Sewer Connections. Each person desiring initial water and sanitary sewer service connections to the District's System shall notify the District's Operator and shall sign and complete an application for such service and pay such fees as established by this Order. The application form may be amended by the District from time to time, as deemed appropriate, without the necessity of an amendment to this Order. No physical connection to the District's System shall be made until such application has been completed and such fees have been paid. Impact fees required by the City of Baytown shall be paid in full prior to approval of an application for service. 2.04. Tap Fees. Subject to the limitations in this Section 2.04, the fees set forth in Section 1 of Exhibit "A" attached hereto shall be collected from the applicant by the District's -5- 283296.1 Operator before physical connection is made to the District's System (which fees shall include the meter and meter box and installation thereof). Notwithstanding anything to the contrary in Section 1(C) of Exhibit "A", the total amount of the tap fee for a Nontaxable Entity connection shall not be greater than the actual costs to the District for such work and for all facilities that are necessary to provide District services to the tract and that are financed or are to be financed in whole or in part by tax -supported bonds of the District. For purposes of this provision and the calculation of a tap fee for a Nontaxable Entity connection pursuant to Section 1(C) of Exhibit "A", the amount set forth therein shall apply to each Equivalent Dwelling Unit as established by the City of Baytown. Notwithstanding any provision in the Rate Order to the contrary, should a tract and/or the improvement thereon be owned and/or occupied by a Nontaxable Entity following the date of initial payment of a tap fee pursuant to one of the other subsections of this Section 2.04 such that ad valorem taxes are not due to the District with respect thereto, said Nontaxable Entity shall pay the fee specified in Section 1(C) of Exhibit "A" less any tap fee previously paid with respect to the initial connection to the District's System, within thirty (30) days following the date of an invoice from the District therefore. The foregoing shall also apply if the Customer failed to advise the District at the time of the initial application for connection that it was a Nontaxable Entity, regardless of the reason for any such failure, and the tap fee for a Non -Taxable Entity connection shall apply retroactively to the date of the initial application for connection. 2.05. Policies Governing Initial Connections. (a) Certification. Subject to the provisions of Section 2.01 hereof, physical connection shall not be made to the District's System until the District's Engineer has certified that the System is operational. Continuous water service shall not be provided to any Customer until (i) an acceptable sanitary sewer connection (except as to water service only Customers) has been made; (ii) all inspections required pursuant to Section 2.06 hereof have been performed; (iii) any deficiencies or damages noted during said inspections have been -6- 283296.1 corrected and/or paid for; and (iv) a properly completed Customer Service Inspection Certification has been provided to the District. (b) Availability of Access. Upon application for Customer Connection, the applicant shall grant an easement of ingress and egress to and from the water meter for such installation, maintenance and repair as the District, in its judgment, may deem necessary. Physical connection will not be made when, in the opinion of District's Engineer or the District's Operator, the work area is obstructed by building materials and debris or the work area is not completed to finished grade. When sidewalks, driveways or other improvements have been constructed prior to application for Customer Connection, such application shall be construed and accepted as a waiver of any claim for damages to such improvements resulting from the reasonable actions of the District's Operator relative to the installation of the Customer's connection to the District's System. (e) Property of District. All meters, fittings, boxes, valves and appurtenances installed shall remain the property of the District. (d) Connections by District Operator. Physical connection to the District's water System shall be made by the District's Operator unless specified otherwise by the Board of Directors of the District. Physical confection to the District's sanitary sewer System shall be made in accordance with the District's Policy Governing Sewer House Lines and Sewer Connections and in accordance with Section 2.06 hereof. No person, other than the properly authorized agents of the District, shall be permitted to make any connection to the District's water System, except for emergency fire -fighting purposes, or make any repairs or additions to or alterations in any meter, box, tap, pipe, cock or other fixture or appurtenance connected with the water service, or any manhole, main, trunk or appurtenance of the District's sanitary sewer or stonn sewer System except by the written permission of the Board of Directors of the District. (e) Submission of Plans for Commercial and Apartment Customer Connections. Each applicant for a Commercial or Apartment Customer Connection shall, not -7- 283296.1 less than thirty (30) days prior to the requested connection date, submit to the District's Engineer or other party designated by the Board of Directors of the District, the following information: (1) Engineering drawings (three sets for District purposes) signed and sealed by a Registered Professional Engineer of the State of Texas indicating details of building water distribution facilities, materials to be used and the location, size and number of proposed connections to the District's System; (2) The legal description of the land to be served by the District's System and a copy of the recorded plat of same; and (3) A general description of the type of proposed Commercial establishment (including Apartments) and, if applicable, a description of the special measures taken in order to prevent any possible Industrial Waste and/or unauthorized Commercial Waste from entering the District's sanitary sewer System. In recognition of the District's obligation to protect and maintain public health, the District's Engineer or other parry designated by the Board of Directors of the District shall review the information presented and may approve or reject the application, request that further information be submitted prior to approval of the application, or require modifications to be made to the plans, including without limitation, requiring the installation of backflow preventers, grease traps, grinders, sampling wells, and/or pretreatment units as may be deemed necessary or appropriate for the protection of the District's System. Customer shall be notified in writing as to the basis for rejection of its application. Failure to construct the facilities in accordance with approved drawings shall constitute a basis for denial of District services. If the application information is not timely provided, the District shall not be held responsible for delays in the installation of water and sanitary sewer connections or the provision of District services. Payment of tap fees to the District's Operator prior to the approval of plans shall not be considered approval of said plans or approval for connection to the District's System. Any unauthorized physical connection to the District's System may be removed without notice at the expense of the person or firm causing such connection to be made. -8- 283296.1 (f) Builder Deposit. Upon first application for a Customer Connection, the applicant (whether property owner, builder or other) (the "Applicant") shall pay a damage deposit in the amount set forth in Section 1(F) of Exhibit "A" attached hereto (which deposit shall apply to all connections of such Applicant, whether one or more) (the "Builder Deposit"). The Builder Deposit is solely to secure the payment of costs to repair any District facilities damaged by the Applicant or other parties during the construction of the house, building or other improvement on the applicable property ("Builder Damages") and is in addition to the security deposit to secure payment of service charges described in Section 3.01 of this Order. The applicant shall be held responsible for any Builder Damages and shall reimburse the District for all costs incurred in repairing the Builder Damages. After inspection by the District's Operator, the District may utilize the Builder Deposit to pay for any repairs to the District facilities made necessary by the Applicant's construction activities. If the Builder Deposit is not sufficient to pay for such Builder Damages, the Applicant shall pay such outstanding balance due. No additional connections to the District's System shall be permitted relative to any Applicant who has outstanding Builder Damages. If Applicant is building more than one house, building or other improvement with the District, the Builder Deposit shall, at all times, remain at the amount required by this Order, and if the District utilizes a portion or all of the Builder Deposit to repair Builder Damages, the Applicant shall pay to the District the amount(s) necessary to again have a Builder Deposit equal to such amount. The District shall refund any remaining Builder Deposit upon completion of the last house, building or other improvement to be constructed within the District by the Applicant, final inspection by the District's Operator, and payment by the Builder of all fees, charges and damages due to the District under this Rate Order or otherwise. No interest will be paid by the District on the Builder Deposit. (g) Swimming Pool and Hot Tub Connections. Every Customer who constructs or installs a swimming pool or hot tub within the District shall notify the District's Operator prior to connection of same to the District's facilities and shall pay an inspection fee in -9- 283296.1 the amount shown in Section 1(G) of Exhibit "A" attached hereto. For purposes of this Order, a swimming pool is defined as a pool having a capacity in excess of 10,000 gallons. After the notification, the Customer constructing or installing said swimming pool or hot tub shall ensure that any and all drains from the swimming pool or hot tub are connected to the District's sanitary sewer system, and it shall be a violation of this Order to drain a swimming pool or hot tub into the District's storm drainage system. After the drains have been installed and prior to backfilling of the area, the applicant shall notify the District's Operator, who shall make an inspection of any and all swimming pool or hot tub drains before water service is authorized for said swimming pool or hot tub. 2.06. Inspections. (a) Sanitary Sewer Inspections. A sanitary sewer inspection fee payable at the time of application for connection to the District's System, shall be charged by the District for inspection of each sanitary sewer physical connection and service line in accordance with the schedule of fees set forth in Section 2(A) of Exhibit "A" attached hereto. For each grease trap, sampling well or pretreatment unit installation inspection, the District shall charge the fee set forth in Section 2(A) of Exhibit "A" attached hereto, which installation inspection fee shall be in addition to the monthly fee described in Section 3.05 hereof. Sanitary sewer connections and service lines shall be inspected for strict compliance with the District's "Rules and Regulations Governing Sewer House Lines and Sewer Connections." Customer shall notify the District's Operator prior to any such connection being made. Customer shall again notify the District's Operator after the physical connection has been made and such District's Operator shall inspect and approve the connection prior to backfnlling of the area and prior to the commencement of sanitary sewer service. Installations which fail to conform to said rules will be denied. Customer shall be notified in writing as to the basis for such denial. After noted deficiencies have been corrected, a sanitary sewer comnection reinspection shall be made upon payinent to the District of the appropriate reinspection fee set forth in Section 2(A) of Exhibit "A" hereto. If subsequent reinspection are required before the sanitary sewer connection and -10- 283296.1 service lines are found in compliance with the District's rules, an additional sanitary sewer reinspection fee of like amount shall be charged for each such reinspection. (b) Customer Service Inspection Certification. Prior to the District providing continuous water service to (i) any new construction; (ii) any existing Customer Connection when the District, in its sole discretion, has reason to believe that a cross -connection or potential contamination hazards exist; or (iii) any existing Customer Conmection after any material improvement, correction or addition to the private water distribution facilities, a properly completed Customer Service Inspection Certification shall be provided by the Customer to the District. "Continuous" water service, with respect to new construction, shall be deemed to commence upon the transfer of service from the builder of a building, residence, or other establishment to the initial occupant or user thereof. For Residential or Commercial (including Apartment) Customer Connections, the District's Operator shall perform the inspection and provide the necessary certification, and the District shall charge the Customer a fee in accordance with the schedule of fees set forth in Section 2(B) of Exhibit "A" attached hereto. Should a Customer fail to provide to the District a properly completed Customer Service Inspection Certification, water service to such Customer will be terminated by the District and service shall not be restored by the District until the required Customer Service Inspection Certification form is provided. (c) Inspection of District Facilities. In accordance with applicable rules of the Texas Commission on Environmental Quality, any person desiring water and sanitary sewer services from the District must notify the District's Operator prior to making any improvement or starting any construction on property within the District if such improvement, construction or equipment used in connection therewith will be within or in close proximity to easements, rights -of -way or property where District facilities are located. The District's Operator shall inspect each property or location at which the improvement or construction is to take place prior to cormnencement of same to verify the location and condition of District facilities on the property. Upon receipt of instructions from the contractor or builder that construction of the -11- 283296.1 facility or improvement is complete and prior to the transfer of the account to the subsequent Customer, the District's Operator shall make a final inspection of the water tap, meters and all other District facilities located on or around the property in question to verify the condition of such facilities. If damage to any District facilities is found, the District's Operator will repair such facilities and the builder or contractor will be responsible for payment of all costs incurred prior to the initiation of services to the property. To cover the costs of such inspections (both the pre -inspection and final inspection), the District will charge a fee in the amount set forth Section 2(C) of in Exhibit "A" attached hereto, which fee will be due and payable at the time the tap fee is paid. (d) Cityoytown Permit and Inspection Program. In addition to the various inspection requirements and associated fees provided herein, the City of Baytown maintains its own plumbing permit, water and sanitary sewer inspection program which requires compliance with and payment of certain associated fees to the City by the District Customers. Any applicable inspection or other fees paid by Customer to the City shall be in addition to the total amount owed to the District as provide herein. Further, it shall by Customer's responsibility to contact the City and coordinate with the City for all permits and inspections required by the City's program. 2.07. Temporary Water Service. Withdrawal of water from flushing valves or fire hydrants or other appurtenances of the District's System without prior approval of the District, except for emergency fire -fighting purposes, is prohibited. The District's Operator shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service within the area of the District. Such temporary service shall be provided only through a District meter installed by the District's Operator. The applicant for temporary water service shall be required to post a deposit in the amount set forth in Section 3(A) of Exhibit "A" attached hereto, which shall secure the payment for water supplied by the District, the installation fee, the safe return of the District's meter and fire hydrant wrench, and the cost of repair of any damage by a user of the hydrant. The fee for temporary water service shall be as set -12- 283296.1 forth in Sections 3 of Exhibit "A" attached hereto. Temporary water service may be supplied outside the area of the District only with the express authorization of the Board of Directors of the District. Section 3. Rates and Fees for Water and Sanitary Sewer Services. Each prospective Customer desiring water and sanitary sewer service shall be required to provide appropriate information in order to obtain such service and shall pay an application fee. All monthly rates set forth in Exhibit "B" attached hereto shall apply to each month, or any part thereof, that the District provides service. 3.01. Application Fee and Security Deposit. A non-refundable application fee in the amount set forth in Section 11 of Exhibit "A" attached hereto shall be charged for each Customer application, including for applications to transfer service from a builder to a non - builder Customer. Each Customer shall pay the applicable security deposit set forth in Exhibit A attached hereto. Upon final termination of service, such deposit shall be credited against amounts owed to the District and any balance refunded to the Customer within forty-five (45) days after termination of service. The District shall not be required to pay interest to the Customer on such security deposit. Further, any Customer whose service is terminated pursuant to Section 4.02 hereof shall pay such deposit (if such Customer has not previously paid a security deposit) or any deficiency in the deposit as a result of application of the deposit to a Delinquent Bill before the Customer's service is restored. No service shall be restored until such fees and deposits have been received by the District in collected funds. Notwithstanding the foregoing, the District shall have the right, but not the obligation, at its sole discretion, to apply all or any portion of such security deposit without notice to the Customer to offset the amount of a Delinquent Bill that remains unpaid for more than thirty (30) days after becoming a Delinquent Bill. If the District -13- 283296.1 applies the security deposit prior to termination of service, Customer shall be required to pay a replacement security deposit in accordance with this Section 3.01. Customer's failure to timely pay a replacement security deposit shall result in Customer's bill becoming a Delinquent Bill. Furthermore, nothing contained herein shall prevent the District from applying a Customer's security deposit on file with the District in accordance with 11 U.S.C. Section 366(c)(4) or any successor provision or any other applicable section of the federal Bankruptcy Code or applicable provision of state law. 3.02. Monthly Rates for Residential Water Service. Unless a different charge is expressly and clearly provided for herein, Residential Customers shall be charged for Residential water service furnished by the District to each Residential Customer Connection in accordance with the schedule of monthly rates for Residential Water Service set forth in Section 1 of Exhibit "B" attached hereto. 3.03 Monthly Rates for Residential Irrigation Water Service. Unless a different charge is expressly and clearly provided for herein, Residential Customers shall be charged for Residential Irrigation Water Service, through a separate irrigation meter, furnished by the District to each Residential Customer Connection in accordance with the schedule of monthly rates for Residential Irrigation Water Service set forth in Section 2 of Exhibit "B" attached hereto. 3.04. Monthly Rates for Residential Sanitary Sewer Service. Unless a different charge is expressly and clearly provided for herein, Residential Customers shall be charged for Residential sanitary sewer service furnished by the District to each Residential Customer Connection in accordance with the schedule of monthly rates for Residential Sanitary Sewer Service set forth in Section 3 of Exhibit "B" attached hereto; provided, however, that said rate -14- 283296.1 shall not be charged to a Residential Customer Connection which is installed for Irrigation Water Service. 3.05. Monthly Rates for Commercial Water Service. Unless a different charge is expressly and clearly provided for herein, Commercial Customers shall be charged for Commercial water service furnished by the District to each Commercial Customer Connection in accordance with the schedule of monthly rates for Commercial Water Service set forth in Section 4 of Exhibit 'B" attached hereto. 3.06 Monthly Rates for Commercial Irrigation Water Service. Unless a different charge is expressly and clearly provided for herein, Commercial Customers shall be charged for Commercial Irrigation Water Service furnished by the District to each Commercial Customer Connection in accordance with the schedule of Monthly Rates for Commercial Irrigation Water Service set forth in Section 5 of Exhibit "B" attached hereto. 3.07. Monthly Rates for Commercial Sanitary Sewer Service. Unless a different charge is expressly and clearly provided for herein, Commercial Customers shall be charged for Conunercial sanitary sewer service furnished by the District to each Commercial Customer Connection in accordance with the schedule of Monthly Rates for Commercial Sanitary Sewer Service set forth in Section 6 of Exhibit 'B" attached hereto; provided, however, that said rate shall not be charged to a Commercial Customer Connection which is installed for Irrigation Water Service. 3.08. Monthly Rates for Water Service to Apartments. Apartment units shall be served by a master meter. Unless a different charge is expressly and clearly provided for herein, Apartments shall be charged for water service furnished by the District to each Apartment -15- 283296.1 Customer Connection in accordance with the schedule of monthly rates for Water Service to Apartments set forth in Section 7 of Exhibit "B" attached hereto. 3.09 Monthly Rates for Irrigation Water Service to Apartments. Unless a different charge is expressly and clearly provided herein, Apartments shall be charged for Irrigation Water Service furnished by the District to each Apartment Customer Connection in accordance with the schedule of monthly rates for Irrigation Water Service to Apartments set forth in Section 8 of Exhibit 'B" attached hereto. 3.10. Monthly Rates for Sanitary Sewer Service to Apartments. Unless a different charge is expressly and clearly provided herein, Apartments shall be charged for sanitary sewer service furnished by the District to each Apartment Customer Connection in accordance with the schedule of monthly rates for Sanitary Sewer Service to Apartments set forth in Section 9 of Exhibit "B" attached hereto; provided, however, that said rate shall not be charged to an Apartment Customer Connection which is installed for Irrigation Water Service. 3.11. Monthly Rates for Water Service to Builders. Unless a different charge is furnished by the District to each Builder Customer Connection expressly and clearly provided for herein. Builders shall be charged for water service furnished by the District to each Builder Customer Connection in accordance with the schedule of monthly rates for Water Service to Builders set forth in Section 10 of Exhibit "B" attached hereto. 3.12. Monthly Rates for Sanitary Sewer Services to Builders. Unless a different charge is expressly and clearly provided herein, Builders shall be charged for sanitary sewer service famished by the District to each Builder Customer Connection in accordance with the schedule of montlily rates for Sanitary Sewer Services to Builders set forth in Section 11 of -16- 283296.1 Exhibit "B" attached hereto; provided, however, that said rate shall not be charged to a Builder Customer Connection which is installed for Irrigation Water Use. 3.13. Monthly Rates for Water Service to Park and Recreational Facilities. Unless a different charge is furnished by the District to each Recreational Facility Customer Connection expressly and clearly provided for herein. Park and Recreational Facilities shall be charged for water service furnished by the District to each Apartment Customer Connection in accordance with the schedule of monthly rates for Water Service to Park and Recreational Facilities set forth in Section 12 of Exhibit "B" attached hereto; provided, however, that Park and Recreational Facilities owned and operated by the District shall be exempt from payment of said rates. 3.14. Monthly Rates for Sanitary Sewer Services to Park and Recreational Facilities. Unless a different charge is expressly and clearly provided herein, Park and Recreational Facilities shall be charged for sanitary sewer service furnished by the District to each Park and Recreational Facility Customer Connection in accordance with the schedule of monthly rates set forth in Section 13 of Exhibit 'B" attached hereto; provided, however, that said rate shall not be charged to a Customer Connection which is installed for Irrigation Water Use and further provided, however, that Park and Recreational Facilities owned and operated by the District shall be exempt from payment of said rate. 3.15. Regulatory Assessments and Fees. The regulatory assessments and fees imposed pursuant to this Section 3.10 shall be billed and collected in the manner set forth in this Rate Order and all Customers of the District shall be subject to penalties and/or termination of service for failure to pay said regulatory assessments and fees when due in the manner set forth herein. -17- 283296.1 (a) Texas Commission on Environmental Quality Assessment. The water and sanitary sewer service rates described above in Sections 3.02 through 3.09, inclusive, and set forth in Exhibit 'B" attached hereto, include a regulatory assessment equal to one-half of one -percent of the charge for water and/or sewer service, as provided by Section 5.701(n), Texas Water Code, as amended. 3.16. Drought Contingency Plan. The water and sanitary sewer rates described above in Sections 3.02 through 3.09, inclusive, do not include any additional fees or charges imposed by the District during any drought response stage pursuant to the Drought Contingency Plan. Any such additional fees and charges, and any penalties under the Drought Contingency Plan, shall be billed and imposed by the District in accordance with the Drought Contingency Plan and shall be in addition to fees or charges under this Order, unless otherwise set forth in the Drought Contingency Plan. 3.17. Bulk Rates. The water and sanitary sewer service rates described above and set forth in Exhibit "B" attached hereto shall not be construed to prevent the District from famishing water and/or sanitary sewer service to any Customer at a bulk rate if deemed advisable by the District, with such rate to be determined on a case by case basis. 3.18. Policies Governing Services. (a) No Reduced Rates or Free Service. All Customers receiving services from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order, and no reduced rate or free service shall be furnished to any Customer; provided, however, this provision shall not prohibit the District, upon good cause shown, from establishing reasonable classifications of Customers for which rates differing from the rates stated herein may be adopted. -18- 283296.1 (b) Entitlement. Customers are not guaranteed a specific quantity or pressure of water or specific capacity in sewer facilities for any purpose whatever; in no instance shall the District be liable for failure or refusal to furnish water or any particular amount or pressure of water or to provide capacity in sewer facilities or to collect solid waste. (c) Unauthorized and Extraordinary Waste. The water and sewer service rates established herein are applicable for ordinary Domestic Waste normally considered to have a biological oxygen demand (five day) and total suspended solids of 200 milligrams per liter. Customers discharging, whether intentionally or unintentionally, non -Domestic Waste into the District's System will be assessed additional charges as established by District based on the volume and concentration of the proposed waste, as well as costs of remediation and/or repairs to the System occasioned as a consequence of such discharge, in addition to any other penalties set forth herein and in any order regulating waste heretofore or hereafter adopted by the District. Customers proposing to discharge or discharging certain Commercial Waste, including Commercial Waste from food processing or other food handling establishments, will be required to install garbage grinders and may be required to install grease traps or pretreatment units when so ordered by the District following the evaluation of the effects of high concentrations of organics on the System. Customers who are required to install garbage grinders, grease traps or other types of pretreatment units shall maintain same in good working condition, which shall include, but not be limited to, regular cleaning. The District shall have the right to inspect such pretreatment units, and, in order to protect the District's facilities, reserves the right, if Customer has failed to do so, to perform the required maintenance at Customer's expense and/or to discontinue service to Customer. District Customers shall be required to comply with all City of Baytown requirements regarding the discharge of waste into its sanitary sewer system. All Customers of the District's sanitary sewer System shall be subject to the terms and conditions of any order regulating waste heretofore or hereafter adopted by the District, pursuant to the terms of which the District may establish rates and charges to produce revenues to pay such additional costs incurred by the District in connection with such hidustrial Waste. Further, the District shall -19- 283296.1 have the right to terminate service to any Customer which violates any such order or City of Baytown requirement regulating waste in accordance with Section 4.02 hereof and the penalties specified in Section 6 hereof shall apply, in addition to any other penalties or other charges specified in such order or herein. The District's Operator shall have rights of ingress and egress to Customer's property in order to carry out the provisions of this Section. (d) Plumbing Regulations. The following plumbing regulations are, pursuant to Texas Commission on Environmental Quality regulations, applicable to all Customers of the District: (i) No direct connection between the District's water System and a potential source of contamination shall be permitted; potential sources of contamination shall be isolated from the District's water System by an air gap or an appropriate backflow prevention device in accordance with applicable Texas Commission on Environmental Quality requireinents and/or as otherwise required by the District in its reasonable discretion; (ii) No cross connection between the District's water System and any private water system shall be permitted, and any potential threat of cross connection shall be eliminated at the service connection by the installation of an air gap or a reduced pressure -zone backflow prevention device; (iii) No connection which allows water used for condensing, cooling or industrial processes, or water from any other system of nonpotable usage over which the District does not have sanitary control to be returned to the District's water System shall be permitted; (iv) No pipe or comnection which allows water to be returned to the public drinking water supply is permitted; (v) The use of pipes and pipe fittings that contain more than 8.0 percent lead, or solders and flux that contain more than 0.2 percent lead is prohibited for installation or repair of the District's water supply System and for installation or repair of any plumbing in any Residential or Commercial facility providing water for human consumption and -20- 283296.1 connected to the District's water supply System. This requirement may be waived for lead joints that are necessary for repairs to cast iron pipe; and (vi) Notwithstanding anything to the contrary contained herein, the District reserves the right to inspect each Customer's property at any time for possible cross connections and other potential contamination hazards in violation of this Order, including, without limitation, irrigation and swimming pool connections. The Customer shall, upon receipt of notice from the District, immediately correct any potential contamination hazard existing on his premises to prevent possible contamination of the District's water System. The existence of a serious threat to the integrity of the District's water System shall be considered sufficient grounds for immediate termination of water service. Water service will be restored only when the source of potential contamination no longer exists, or when sufficient additional safeguards have been taken to protect the District's water System from contamination, and a Customer Service Inspection Certification confirming the correction of a potential contamination hazard has been submitted to the District. The District shall not be required to follow the procedures set forth in Section 4.02 hereof when terminating water service to a Customer under this Section 3.13(d). However, the Customer shall be subject to the same charge for restoration of service terminated pursuant to this Section 3.18(d) as is described in Section 4.02 hereof and set forth in Section 7(E) of Exhibit "A" attached hereto. (e) Backflow Prevention Requirements. No water connection from the District's System shall be allowed to any Customer Connection where the District, in its sole discretion, has reason to believe that an actual or potential contamination hazard exists unless the District's System is protected from contamination. The following backflow prevention requirements are applicable to all Customers of the District: (i) Backflow prevention assemblies shall be installed, tested and maintained, at the Customer's expense, at any Customer Connection in accordance with applicable Texas Commission on Environmental Quality requirements and/or as otherwise required by the District in its reasonable discretion. -21- 283296.1 The use of a backflow prevention device at the service connection shall be considered additional backflow protection and shall not negate the use of backflow prevention on the internal hazards of any Customer Connection as outlined and enforced by applicable Texas Commission on Environmental Quality regulations and/or local plumbing codes. (ii) All backflow prevention assemblies installed at any Customer Connection shall be tested upon installation by a recognized backflow prevention assembly tester (pursuant to Texas Commission on Environmental Quality regulations) and certified to be operating within specifications. Backflow prevention assemblies which are installed to provide protection against a Health Hazard must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester. (iii) The District's Operator shall install and test any backflow prevention assembly required to be installed at any Customer Connection pursuant to this Order, and shall complete and retain in the District's files for recordkeeping purposes an original Backflow Prevention Assembly Test and Maintenance Report ("Test Report"), in the form attached to this Order as Exhibit "D". The District shall charge the Customer the fees set forth in Section 6 of Exhibit "A" attached hereto for installation of the backflow prevention assembly and the initial and annual tests thereof. Section 4. Delinquency in Payment; Penalty; Discontinuation and Termination of Service. 4.01. Penalty for Failure to Pay Bill Before Delinquency. Charges associated with the failure of Customer to pay any bill before it becomes delniquent will be imposed in accordance with the schedule of fees set forth in Section 7 of Exhibit "A" attached hereto. if a Customer's bill, or any part thereof, becomes a Delinquent Bill, the Delinquent Bill plus the penalty thereon shall be immediately due and payable. A charge in the amount shown in Section AD) of Exhibit "A" attached hereto shall be imposed for each returned check notice forwarded to a Customer as a result of a Customer's check being returned by a bank for any reason. _ZZ_ 283296.1 4.02. Termination of Service. The District shall have the right to terminate service and cut off the supply of water to a Customer and/or a Customer's access to the District's sanitary sewer System at any time after its bill becomes a Delinquent Bill or upon violation by the Customer of any order regulating waste heretofore or hereafter adopted by the District. The Customer shall, by written notice mailed to the Customer's address as reflected in the records of the District, be notified of the delinquency or violation and the date on which service shall be terminated if the account (including delinquent charges and penalty) is not paid in full or the violation corrected, which date shall not be less than five (5) days from the date such notice is sent. With respect to a delinquent bill, such notice shall state the place and time at which the account may be paid and that any errors in the bill may be corrected by contacting the billing company, whose telephone number shall also be given in such notice. All notices of termination shall state that the Customer has the right to appeal such termination to the Board of Directors of the District. The notice shall also be left by the District's Operator on the front door at the address to which the service in question was provided at least twenty-four (24) hours prior to the time at which service shall be terminated. If the delinquent account (including any non - delinquent portion thereof), including penalty and all other charges then due and owing, has not been paid in full or the violation corrected by the proposed termination date, service shall then be discontinued unless otherwise agreed by the Board of Directors of the District. A charge in the amount shown in Section AE) of Exhibit "A" attached hereto shall be imposed for the restoration of service discontinued pursuant to this section. Payment of the unpaid account, including penalty and all other charges then due and owing plus any required deposit, shall be paid in cash, cashier's check or money order prior to restoration of water service where service has been terminated because of the Customer's failure to pay a bill before it became a Delinquent Bill. 4.03. Discontinuing Service Upon Request of a Customer; After Hours Service. Whenever a Customer of the District requests that water and sewer service be temporarily discontinued, Customer shall notify the District's Operator at least two days prior to the time that such service discontinuation is desired. Charges in the amounts shown Section 8(A) of Exhibit -23- 283296.1 "A" attached hereto shall be made for discontinuation of and restoration of water service (between 8:00 a.m. and 4:00 p.m.) when such service is discontinued and/or restored at the request of the Customer and Customer is not delinquent in the payment of any bill at the time of either request. Temporary discontinuation and restoration of service requested by a Customer to enable Customer to make plumbing repairs within the facility served shall also be performed by the District for a charge to the Customer in the amount set forth Section 8(13) of Exhibit "A" attached hereto. Whenever a Customer of the District requests service to be turned on (whether for new or transferred service or after discontinuation as set forth in this Rate Order) prior to 8:00 a.m. or after 4:00 p.m. on weekdays (excluding holidays) or on weekends or holidays, a charge in the amount set forth Section 8(B) of Exhibit "A" attached hereto shall be imposed for after hours restoration of service. Section 5. Damage to District Facilities; Tampering. 5.01. Damage to and Tampering With Meters and Appurtenances. No person other than a duly authorized agent of the District shall open any meter box, repair, alter, adjust, remove, make connections or additions to, restore service when terminated for any reason under this Rate Order, or in any other way take any action which affects any meter, meter box, service line or other water and/or sewer System appurtenance. The District reserves the right to immediately and without notice remove the meter or disconnect water service to any Customer whose meter, meter box, service line or other System appurtenance has been tampered with or altered in any way, or who has reconnected service which was terminated by the District and, further, to assess the fees set forth in Section 9 of Exhibit "A" attached hereto relative to such damage or tampering. 5.02. Right to Repair. In recognition of the District's obligation to protect and maintain the public health, the District reserves the right to repair damage to the District's System and appurtenances without prior notice, and to assess against Customer such costs, including attorneys' fees, and such penalties as are provided in this Order or otherwise provided by law or _24_ 283296.1 legally available to the District, in addition to those charges necessary to repair the portion of the System so damaged. 5.03. Obstructions. After a water meter has been set, the Customer shall at all times keep the area in, around and upon the meter and box and District easements and property under Customer's control free from rubbish or obstructions of any kind. Failure to keep the meter and box and District easements and property under Customer's control fi-ee from rubbish or obstructions may result in disconnection of water services and/or the assessment of charges necessary to remove said obstructions. Customers are prohibited from introducing material into the District's sanitary sewer System which would cause obstruction of said System. In the event that an inspection by the District's Engineer or District's Operator reveals damage to the sanitary sewer System resulting from a Customer's failure to prevent obstructions from entering said System, the District reserves the right to immediately and without notice remove the obstruction. Any District costs for removal of obstructions, including the cleaning of grease traps or other pretreatment units, plus a District administration fee of fifty percent (50%) of said costs, shall be assessed to Customer. The District's Operator shall have rights of ingress and egress to Customer's property in order to carry out the provisions of this Section. 5.04. Storm Sewer System and Drainage Facility. The use of the storm sewer System within the District is limited solely to stonn waters. No other liquids or solids, including but not limited to, drainage from swimming pools or hot tubs, grass or yard clippings, trash, construction materials, oils or grease, shall be introduced into the storm sewer System or a Drainage Facility within the District. It shall be a violation of this Order to introduce unauthorized material, whether liquid or solid, into the storm sewer System within the District and the District reserves the right to assess such penalties as provided in this Order to any person, corporation, or other entity that makes such unauthorized use of the storm sewer System within the District. Section 6. Penalties for Violation: Attorney's Fees and Court Costs. Any person, corporation or other entity who: -25- 283296.1 (1) violates any section of this Order or any order regulating waste heretofore or hereafter adopted by the District, including the Waste Order; or (2) makes unauthorized use of District services or facilities; or (3) violates the District's Rules and Regulations Governing Sewer Lines and Sewer Connections or any other rules or regulations of the District; shall be subject to a civil penalty of not less than $50.00, and in no event to exceed $10,000, for each breach of the foregoing provisions. Each day that a breach continues shall be considered a separate breach. The amount of any penalty levied by the District pursuant to this Section 6 shall be established by the District's Board of Directors after reasonable notice to the violator and a public hearing relative to such matter before the Board of Directors. Penalties levied under this Section 6 shall be in addition to such other penalties as are provided in this Order or any order regulating waste heretofore or hereafter adopted by the District, any other penalties provided under the laws of the State of Texas, and any other right of recovery that the District may have for damages or otherwise under applicable law. Notwithstanding the foregoing, in no event shall the District levy a penalty that is in excess of the jurisdictional limit of the justice court as provided by Section 27.031, Texas Government Code, as amended. In addition to the enforcement provisions set forth in this Order, the provisions of this Order, including any penalties levied hereunder, may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District's principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover reasonable fees for attorneys, expert witnesses and other costs incurred by the District before the court. The amount of attorney's fees shall be fixed by the court. Section 7. Appeal; Accuracy of Meters. (a) Any determination by District's Operator or District's Engineer or authorized agent of the District or any dispute regarding the terms and provisions of this Order may be appealed to the Board of Directors of the District which shall conduct a hearing on the matter. All appeals shall either be submitted by Customer in writing or presented by Customer in person to the Board of Directors of the District at its regular meeting. -26- 283296.1 In order to maintain service during the pendency of any such appeal in connection with fees or charges assessed hereunder, Customer shall pay all amounts, including service charges, penalties and other charges, due and payable to the District. Any amounts which are paid by the Customer and subsequently determined by the Board of Directors not to have been due shall be refunded to the Customer or credited against future bills, at the discretion of the District. The District's Operator and/or attorney shall provide Customer with information regarding appeals and hearing procedures upon Customer's request. (b) If a Customer requests that the meter which serves the Customer be removed for testing to verify the accuracy of same, the following charges shall apply: (1) If the test of the meter reflects that it measures more than 105% (or less than 95%) of the water actually delivered, the District shall not charge the Customer for testing or replacement of the meter. (2) If the test of the meter reflects that it measures between 95% and 105% of the water actually delivered, the Customer shall be charged the fee set forth in Section 10 of Exhibit "A" attached hereto. In no event shall an adjustment be made to Customer's bills prior to the request for testing of the meter unless the District, in its sole judgment, can ascertain with reasonable certainty when the inaccuracy began. Section 8. Amendments. The District's Board of Directors has and specifically reserves the right to change, alter or amend any rate or provision of this Order at any time. Section 9. Severability. The provisions of this Order are severable, and if any provision or part of this Order or the application thereof to any person or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby. The President or Vice President is authorized to execute and the Secretary or Assistant Secretary is authorized to attest this Order on behalf of the Board and the District. _27_ 283296.1 Passed and adopted this 23rd day of April, 2012. ATTEST: /s/ Brian Cunningham /s/ Elizabeth Gilbert Vice President, Board of Directors Secretary, Board of Directors (SEAL) _28_ 283296.1 1. TAP FEES A. Single Family Residential Connection 5/8" meter $ 600.00 3/4" meter $ 750.00 1" meter $ 1,000.00 B. Nonstandard Residential Connection (other than 3/4", 5/8" or 1" Cost not including meter), Commercial and Apartment Connections; which as the impact or capital District obtains its water supply and/or wastewater treatment recovery fees) + from the City of Baytown, shall include all impact fees or 200%; plus City capital recovery fees charged by the City: impact on capital recovery fees C. Nontaxable Entity Comrection (except a Public Safety Facility District's cost of Connection) installation and mate- rials for the meter(s), plus the actual costs to the District for all facilities that are necessary to provide District services to the tract and that are financed or are to be financed in whole or in part by tax - supported bonds of the District. Notwithstand- ing any provision in the Rate Order to the contrary, should a tract and/or the improve- ments thereon be owned and/or occu- pied by a Nontaxable Entity following the date of initial payment of a tap fee pursuant to 1 283296.1 D. Public Safety Facility Connection E. Fire Line Connection: F. Park and Recreational Connection: one of the other subsections of this Section 2.04 such that ad valorem taxes are not due to the District with respect thereto, said Nontaxable Entity shall pay the fee specified in this Subsection (c) less any tap fee previously paid with respect to the initial connection to the District's System, within thirty (30) days following the date of an invoice from the District therefor. The foregoing shall also apply if the Customer failed to advise the District at the time of the initial application for connection that it was a Nontaxable Entity, regardless of the reason for any such failure, and the fee in this Subsection (c) shall apply retro- actively to the date of the initial application for connection. Cost Cost Cost G. Builder Deposit $ 1,000.00 H. Swimming Pool and Hot Tub Connections $ 50.00 2 283296.1 2. A. Sanitary Sewer Inspections: Residential Customer Connection $ 50.00 Commercial, Nontaxable Entity (including Public Safety $ 100.00 Facilities) and Apartment Customer Connections Grease trap, sampling well or pretreatment unit $ 75.00 installation Reinspection Fees: Residential Customer Connections $ 50.00 Commercial, Nontaxable Entity and Apartment $ 100.00 Customer Comnections B. Customer Service Inspection Certification Fee: Residential Customer Connections $ 50.00 Commercial (including Apartment) Customer $ 125.00 Connections C. Inspection of District Facilities $ 100.00 3. TEMPORARY WATER SERVICE FEES A. Deposit $ 1,000.00 B. Installation Fee $ 100.00 C. Monthly fee (per 1,000 gallons of water metered) $ 6.00 4. WATER AND SANITARY SEWER SERVICES FEES Application Fee $ 35.00 5. BACKFLOW PREVENTION ASSEMBLY A. Installation Cost 3 281296.1 B. Each initial and annual test (Residential Connection) $ 100.00 C. Each initial and annual test (Commercial Connection) $ 150.00 6. PENALTIES FOR FAILURE TO PAY BILL BEFORE DELINQUENCY A. Failure to pay before delinquent date 10% of past due. amount B. Each Mailed Notice of Delinquency $ 15.00 C. Returned Checks $ 30.00 D. Restoration of service discontinued due to delinquency $ 50.00 7. VOLUNTARY TERMINATION AND RESTORATION OF SERVICE A. Normal Business Hours 1. Termination $ 30.00 2. Restoration $ 30.00 B. Before or after Normal Business Hours 1. Termination $ 45.00 2. Restoration $ 45.00 8. DAMAGE TO DISTRICT FACILITIES. TAMPERING A. Removal and reinstallation of meter $ 100.00 B. Costs incurred by the District Actual C. Damage Fee $ 50.00 9. APPEAL BASED ON ACCURAC_OF METER Meter Testing N/A 4 283296.1 10. SECURITY DEPOSIT A. Each Residential Customer that owns or rents the home at the $ 100.00 address to be serviced, including Builders (as evidenced by a copy of a deed or other proof of ownership acceptable to the District, or a lease or rental agreement, which shall accompany the application for services) B. Commercial Customers served by a separate meter The greater of $100 or 200% of the monthly charge." C. Each Apartment unit served by a separate meter $ 150.00 D. Commercial Customers and Apartments served by a master The greater of $500 or meter 200% of the monthly charge.* E. Non -Taxable Entity (including Public Safety Facilities) $ 300.00 { The monthly service charges shall be estimated by the District's engineer or operator using the City of Houston criteria regarding such usage. 5 283296.1 1. MONTHLY RATES FOR RESIDENTIAL WATER SERVICE (Inside City) a. Minimum Bill $ 12.94 b. For every 1,000 GWM up to 2,000 GWM $ 2.99 c. For every 1,000 GWM over 2,000 GWM up to 6,000 GWM $ 6.50 d. For every 1,000 GWM over 6,000 GWM up to 12,000 GWM $ 7.79 e. For every 1,000 GWM over 12,000 GWM up to 18,000 GWM $ 10.14 f. Use over 18,000 GWM $ 13.18 2. MONTHLY RATES FOR RESIDENTIAL WATER SERVICE (Outside City) a. Minimum Bill b. For every 1,000 GWM up to 2,000 GWM c. For every 1,000 GWM over 2,000 GWM up to 6,000 GWM d. For every 1,000 GWM over 6,000 GWM up to 12,000 GWM e. For every 1,000 GWM over 12,000 GWM up to 18,000 GWM f Use over 18,000 GWM 3. MONTHLY RATES FOR IRRIGATION WATER SERVICE (Inside City) $ $ $ $ $ $ 25.87 4.49 9.74 11.70 15.21 19.77 a. 5/8"x3/4" 1. Base Bill $ 12.94 2. Up to 6,000 g $ 6.50 3. 6-12,000g $ 7.79 4. 12-18,000g $ 10.14 5. over 18,000g $ 13.18 b. 3/4" 1. Base Bill $ 1732 2. Up t o 9,000g $ 6.50 3. 9-18,000g $ 7.79 4. 18-27,000g $ 10.14 5. over 27,000g $ 13.18 C. 1" 1. Base Bill $ 26.05 2. Up to 15,000g $ 6.50 3. 15-30,000g $ 7,79 1 283296.1 4. 30-45,000g 5. over 45,000g d. 1 1/2" 1. Base Bill 2. up to 30,000g 3. 30-60,000g 4. 60,000-90,000g 5. over 90,000g e. 2" 1. Base Bill 2. up to 48,000g 3. 48,000-96,000g 4. 96,000-144,000 5. over 144,000 f. 3" 1. Base Bill 2. up to 96,000g 3. 96,000-192,000g 4. 192,000-288,000g 5. over 288,000g g 4" 1. Base Bill 2. up to 150,000g 3. 150,000-300,000g 4. 300,000-450,000 5. over 450,000g h. 6" 1. Base Bill 2. up to 300,000g 3. 300,000-600,000g 4. 600,000-900,000g 5. over 900,000g i. 8" 1. Base Bill 2. up to 480,000g 2 283296.1 $ 10.14 $ 13.18 $ 47.91 $ 6.50 $ 7.79 $ 10.14 $ 13.18 $ 74.11 $ 6.50 $ 7.79 $ 10.14 $ 13.18 $ 144.03 $ 6.50 $ 7.79 $ 10.14 $ 13.18 $ 222.69 $ 6.50 $ 7.79 $ 10.14 $ 13.18 $ 441.17 $ 6.50 $ 7.79 $ 10.14 $ 13.18 $ 703.34 $ 6.50 3. 480,000-960,000g $ 7.79 4. 960,000-1,440,000g $ 10.14 5. over 1,440,000 $ 13.18 j. 10" 1. Base Bill $ 1,009.23 2. up to 690,000g $ 6.50 3. 690,000-1,380,000g $ 7.79 4. 1,380,000-2,070,000g $ 10.14 5. over 2,070,000g $ 13.18 4. MONTHLY RATES FOR IRRIGATION WATER SERVICE (Outside City a. 5/8"x3/4" 1. Base Bill 2. Up to 6,000 g 3. 6-12,000g 4. 12-18,000g 5. over 18,000g b. 3/4" 1. Base Bill 2. Up t o 9,000g 3. 9-18,000g 4. 18-27,000g 5. over 27,000g C. 1 " 1. Base Bill 2. Up to 15,000g 3. 15-30,000g 4. 30-45,000g 5. over 45,000g d. 1 1/2" 1. Base Bill 2. up to 30,000g 3. 30-60,000g 4. 60,000-90,000g 5. over 90,000g e 2" 1. Base Bill 2. up to 48,000g 3 283296.1 $ 25.87 $ 9.74 $ 11.70 $ 15.21 $ 19.77 $ 34.61 $ 9.74 $ 11.70 $ 15.21 $ 19.77 $ 52.10 $ 9.74 $ 11.70 $ 15.21 $ 19.77 $ 95.80 $ 9.74 $ 11.70 $ 15.21 $ 19.77 $ 148.23 $ 9.74 3. 48,000-96,OOOg $ 11.70 4. 96,000-144,000 $ 15.21 5. over 144,000 $ 19.77 £ 3" 1. Base Bill $ 288.05 2. up to 96,OOOg $ 9.74 3. 96,000-192,OOOg $ 11.70 4. 192,000-288,OOOg $ 15.21 5. over 288,OOOg $ 19.77 g 4" 1. Base Bill $ 445.37 2. up to 150,OOOg $ 9.74 3. 150,000-300,OOOg $ 11.70 4. 300,000-450,000 $ 15.21 5. over 450,OOOg $ 19.77 h. 6" 1. Base Bill $ 882.32 2. up to 300,OOOg $ 9.74 3. 300,000-600,OOOg $ 11.70 4. 600,000-900,OOOg $ 15.21 5. over 900,OOOg $ 19.77 i. 8" 1. Base Bill $ 1,018.43 2. up to 480,OOOg $ 9.74 3. 480,000-960,OOOg $ 11.70 4. 960,000-1,440,OOOg $ 15.21 5. over 1,440,000 $ 19.77 1. Base Bill $ 2,018.43 2. up to 690,OOOg $ 9.74 3. 690,000-1,380,OOOg $ 11.70 4. 1,380,000-2,070,OOOg $ 15.21 5. over 2,070,OOOg $ 19.77 5. MONTHLY RATES FOR RESIDENTIAL SANITARY SEWER SERVICE (Inside Cit (a) Base Bill 4 283296.1 $ 12.94 (b) For up to 2,000GWM $ 3.02 (c) For each 2,000GWM over 12,000GWM, subject to (c) $ 6.54 (d) Over 12,000 gallons per unit No Charge 6. MONTHLY RATES FOR RESIDENTIAL SANITARY SEWER SERVICE (Outside Cit (a) Base Bill $ 25.87 (b) For up to 2,000GWM $ 4.52 (c) For each 2,000GWM over 12,000GWM, subject to (c) $ 9.82 (d) Over 12,000 gallons per unit No Charge 7. MONTHLY RATES FOR COMMERCIAL WATER SERVICE (Inside City) (a) Base Bill 5/8" x'/4" $ 12.90 4" $ 222.69 3/4" $ 17.32 6" $ 441.17 1" $ 26.05 8" $ 703.34 1-1/2" $ 47.91 10" $ 1,009.23 2" $ 74.11 3" $ 144.03 (b) All usage per 1,000GWM $ 6.50 8. MONTHLY RATES FOR COMMERCIAL WATER SERVICE (Outside City) (a) Base Bill 5/8" x'/4" $ 25.87 3" $ 288.05 3/4" $ 34.61 4" $ 445.37 P $ 52.10 6" $ 882.32 1-1/2" $ 95.80 8" $ 1,406.69 2" $ 148.23 10" $ 2,018.43 (b) All usage per 1,000GWM $ 9.74 9. MONTHLY RATES FOR COMMERCIAL SANITARY SEWER SERVICE (Inside Citv) (a) Base Bill 5/8" x 3/4" $ 12.94 3" $ 144.03 3/4" $ 17.32 4" $ 222.69 5 283296.1 ill $ 26.05 6" $ 441.17 1-1/2" $ 47.91 8" $ 703.34 2" $ 74.11 10" $ 1,009.23 10. MONTHLY RATES FOR COMMERCIAL SANITARY SEWER SERVICE (Outside City (a) Base Bill 5/8" x 3/4" $ 25.87 3" $ 288.05 3/4" $ 34.61 4" $ 513.89 1" $ 52.10 6" $ 882.32 1-1/2" $ 95.80 8" $ 1,406.69 2" $ 148.23 10" $ 2,018.43 (b) For each 1,000GWM $ 9.82 11. MONTHLY RATES FOR WATER SERVICE TO APARTMENTS(,Inside City (a) Minhnum monthly charge $ 12.94 per unit (b) For each 1,OOOGWM up to 2,000GWM $ 2.99 © For each 1,OOOGWM over 2,000GWM $ 6.50 12. MONTHLY RATES FOR WATER SERVICE TO APARTMENTS(Outside City) (a) Minimum monthly charge $ 25.87 per unit (b) For each 1,000GWM up to 2,000GWM $ 4.49 © For each 1,OOOGWM over 2,000GWM $ 9.74 13. MONTHLY RATES FOR SANITARY SEWER SERVICE TO APARTMENTS (Inside Cit (a) Minimum monthly charge $ 12.94 per unit (b) For up to 2,000GWM $ 3.02 (c) For over 2,000GWM $ 6.54 14. MONTHLY RATES FOR SANITARY SEWER SERVICE TO APARTMENTS Outside City) (a) Minimum monthly charge $ 25.87 per unit 6 283296.1 (b) For up to 2,000GWM $ 4.52 (c) For over 2,000GWM $ 9.82 15. MONTHLY RATES FOR WATER TO HIGH VOLUME USERS 1. Base bill (a) 5/8" x'/4" $ 12.90 (b) 3/W $ 17.32 (c) P $ 26.05 (d) 1-1/2" $ 47.91 (e) 2" $ 74.11 (fl 3" $ 144.03 (g) 4" $ 222.69 (h) 6" $ 441.17 (i) 8" $ 703.34 0) 10" $ 1,009.23 16. MONTHLY RATES FOR SANITARY SEWER SERVICE TO HIGH VOLUME USERS (with City Water Service) 1. Base bill (a) 5/8" x 3/4" $ 12.94 (b) 3/4" $ 17.32 (c) ill $ 26.05 (d) 1-1/2" $ 47.91 (e) 2" $ 74.11 (fl 3" $ 144.03 (9) 4" $ 222.69 7 283296.1 (h) 6" $ 441.17 (i) 8" $ 703.34 (j) 101, $ 1,009.23 2. All usage per 1,000GWM $ 4.94 17. MONTHLY RATES FOR SANITARY SEWER SERVICE TO HIGH VOLUME USERS (without City Water Service) 1. Base bill (a) 5/8" x 3/4" $ 13.48 (b) 3W $ 18.02 (o) 1" $ 27.11 (d) 1-1/2" $ 49.83 (e) 2" $ 77.09 (fl 3" $ 149.80 (9) 4" $ 231.61 (h) 6" $ 458.82 (i) 8" $ 731.48 0) 10" $ 1,049.61 2. All usage per 1,OOOGWM $ 5.02 8 283296.1 EXHIBIT "C" Service Inspection Certification Form CHAMBERS COUNTY IMPROVEMENT DISTRICT NO.3 District Identification No. 20-0200479 Location of Service I, , upon inspection of the private water distribution facilities connected to the aforementioned public water supply do hereby certify that, to the best of my knowledge Non - Compliance Compliance (1) No direct connection between the public drinking water supply and a potential source ❑ ❑ of contamination exists. Potential sources of contamination are isolated from the public water system by an air gap or an appropriate backflow prevention assembly in accordance with TCEQ regulations and the provisions of the District's Rate Order. (2) No cross -connection between the public drinking water supply and a private water ❑ ❑ system exists. Where an actual air gap is not maintained between the public water supply and a private water supply, an approved reduced pressure -zone backflow prevention assembly is properly installed and a service agreement exists for annual inspection and testing by a certified backflow prevention device tester. (3) No connection exists which would allow the return of water used for condensing, ❑ ❑ cooling or industrial processes back to the public water supply. (4) No pipe or pipe fitting which contains more than 8.0% lead exists in private ❑ ❑ plumbing facilities installed on or after July 1, 1988. (5) No solder or flux which contains more than 0.2% lead exists in private plumbing ❑ ❑ facilities installed on or after July 1, 1988. I further certify that the following materials were used in the installation of the private water distribution facilities: Service line Lead ❑ Copper ❑ PVC ❑ Other ❑ Solder Lead ❑ Lead Free ❑ Solvent Weld ❑ Other ❑ I recognize that this document shall become an official record of CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3 and that I am legally responsible for the validity of the information I have provided. Signature of Inspector Title Date 9 283296.1 Registration Number Type of Registration r�: r Backflow Prevention Assembly Test and Maintenance Report The following form must be completed for each assembly tested. A signed and dated original must be submitted to the District for recordkeeping purposes. BACKFLOW PREVENTION ASSEMBLY TEST AND MAINTENANCE REPORT CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 3 DISTRICT IDENTIFICATION NO. MAILING ADDRESS:_ CONTACT PERSON:_ LOCATION OF SERVICE: The backflow prevention assembly detailed below has been tested and maintained as required by TCEQ regulations and is certified to be operating within acceptable parameters. TYPE OF ASSEMBLY ❑ Reduced Pressure Principle ❑ Double Check Valve ❑ Pressure Vacuum Breaker ❑ Manufacturer: Model Number: Serial Nmnber: ❑ 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? Reduced Pressure Principle Assembly cuum Breaker Double Check Valve AssemblyCheck Valve IstCheck 2ndCheck Opened at psid Relief Valve OpenLeaked ❑ Eitial Test Held at psid Held at _ psid Opened at Closed Tight ❑ Closed Tight ❑ psid Leaked ❑ Leaked ❑ Did not open ❑ 7PEs Repairs and Materials Used Test After Held at _psid Held at _psid Opened at psid d psid Repa r Closed Tight ❑ Closed Tight ❑ Testing gauge used: Make/Model: SN: Calibration Date: The above is certified to be true at the time of testing. Firm Name: Firm Address: Finn Phone N 283296.1 Certified Tester: Cert. Tester No.: Municode Page 1 of 14 Exhibit "C" Baytown, Texas, Code of Ordinances >> PART II - CODE OF ORDINANCES >> Chapter 98 - UTILITIES >> ARTICLE III. - WATER SERVICE >> ARTICLE III. -WATER SERVICE ""' Sec. 98-55. - Utility upgrade surcharge. Sec. 98-56. - Deposits and refunds. Sec. 98-57. - Tapping fees. Sec. 98-58. - Service charge for turn on. Sec. 98-59. - Rates. Sec. 98-60. - Flat -rate service Prohibited, separate metering required. Sec. 98-61. - Billing: oayment: late charge: discontinuance of service. Sec. 98-62. - Procedures and remedies for nonpayment of bills. Sec. 98-63. - Metering water bvoassing sewer system. Sec. 98-64. - Study to determine charge when portion of water bypasses sewer. Sec. 98-65. - Liens. Secs. 98-66-98-89. - Reserved. Sec. 98-55. - Utility upgrade surcharge. (a) A monthly utility upgrade surcharge of $15.00 shall be assessed and collected by the utility billing division for each lot within the Bay Oaks Harbor Subdivision (Amended), Blocks 2 through 10 Inclusive, which receives utility services from the city. Such surcharge shall be expended by the city for repairs to the water and wastewater systems within such subdivision in order to meet the state commission on environmental quality's standards. (b) A monthly utility upgrade surcharge of $200.00 shall be assessed and collected by the utility billing division for the commercial recreational vehicle park located in the Bay Oaks Harbor Subdivision (Amended), Block 1, Reserves A, B and C inclusive, which receives utility services from the city. Such surcharge shall be expended by the city for repairs to the wastewater system within such subdivision in order to meet the state commission on environmental quality's standards. (Ord. No. 10,865, § 1, 3-27-08; Ord. No. 10,998, § 1, 10-23-08) Sec. 98.56. - Deposits and refunds. (a) Application for service. Whenever a consumer desires to establish service with the utility billing division, he shall tender to such division, at least one day pdor to the time he desires his premises to be connected with the water services, the proper deposit. (b) Amount of deposit. (1) A residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $50.00 if he is the owner of the dwelling house; however, a residential consumer occupying a single-family dwelling house shall be required to place on deposit the amount of $200.00 if he is not the owner of the dwelling house. (2) Commercial water deposits shall be determined by the utility billing supervisor. This deposit is to be generally comparable to two months' water service of a commercial business similar to the applicant. (3) Deposits for apartment houses, mobile packs 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. http://library.municode.comlprint.aspx?clientID=10022&HTMRequest=http%3a%2P Io2flib... 3/9/2012 Municode Page 2 of 14 (e) Form of deposits. (1) Deposits of less than $500.00 shall be cash deposits in the form of cash, check or money order. (2) Deposits of $500.00 or more for commercial consumers, apartment houses, mobile home parks or other multifamily dwelling projects shall be by: a. Cash; b. Irrevocable bank letter of credit, provided that the irrevocable bank letter of credit shall be: 1. Drawn on an FDIC -insured bank located within Hams County or Chambers County, and 2. For a period of not less than one year; or C. An assignment of security, provided that any security pledged shall be: 1. Approved by the utility billing manager, and 2. Placed in an FDIC -insured bank located within Harris County or Chambers County; or d. A bond, provided that the bond shall be: 1. Issued by a surety licensed to do business in the state, 2. In a form approved by the city attorney, and 3. For a term of not less than one year. Deposits in any form allowed herein shall be maintained throughout the period during which the city provides utility service. As such, any deposit that is to expire prior to the termination of utility service shall be renewed prior to its expiration and proof of such renewal must be submitted to the city's utility billing manager. The remedies for nonpayment of utility bills specified in section 9898=61 shall apply if a deposit is not renewed prior to its expiration. (Code 1967, § 31-54; Ord. No. 943, § 1, 11-7-68; Ord. No. 1479, § 1, 9-27-73; Ord. No. 2328, § 1, 10-13-77:Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-6-81; Ord. No. 4948, § 1, 3-24-88; Ord, No. 6005, § 1, 9-26-91; Ord. No. 8141, § 1, 11-25-97; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 10,623, § 1, 6-12-07:Ord. No. 11,646, § 1, 5-26-11) Sec. 98.57. - Tapping fees. (a) The following fees shall be assessed and collected by the utility billing division for water taps inside the city limits: (1) Three -fourths -inch, short side, water tap .....$550.00 (2) Three -fourths -inch, long side, water tap .....$650.00 (3) One -inch, short side, water tap .....$650.00 (4) One -Inch, long side, water tap .....$750.00 (b) The following fees shall be assessed and collected by the utility billing division for water taps outside the city limits: (1) Three -fourths -inch, short side, water tap .....$700.00 (2) Three -fourths -inch, long side, water tap .....$800.00 (3) One -inch, short side, water tap .....$800.00 (4) One -inch, long side, water tap .....$900.00 (c) All other taps and other special water connections shall be made at actual cost, as determined by the utility billing manager, with the consultation of the director of utilities. (d) If a person pays for a water tap and fails to have the tap made within one year from the date such tap fee is paid, the city shall not allow the water tap to be made unless the person requesting the tap pays such additional amount necessary to increase the original payment to the current cost of a water tap. (Code 1967, § 31-55; Ord. No. 943, § 1, 11-7-68; Ord. No. 1752, §§ 1, 2, 2-27-75; Ord. No. 2328, § 1, 10-13-77, Ord. No. 2738, § 1, 9-27-79; Ord. No. 2974, § 1, 9-25-80; Ord. No. 3628, § 1, 5-26-83; Ord. No. 9226, § 1, 9-13-01; Ord. No. 9831, § 1, 7-8-04; Ord. No. 11, 308, § 2, 2-25-10) Sec. 98.58. - Service charge for turn on. If the city turns on a customer's water service at the request of the customer, the customer will be charged a service charge of $30.00. If the customer requests their existing service to be transferred, the fee will be $25.00. If an additional trip(s) is required to connect service, a $10.00 additional trip fee will be assessed per trip. (Code 1967, § 31-55.1; Ord. No. 2738, § 2, 9-27-79; Ord. No. 6005, § 5, 9-26-91; Ord. No. 11,308, § 3, 2-25-10) Sec. 98.59. - Rates. (a) Rate schedules. The following are the rate schedules for water service: http:lllibrary.municode.com/print.aspx?clientID=10022&HTMRequest=http%3ae/n2f%2flib... 3/9/2012 Municode Page 3 of 14 Water ServiceRateSchedule Individually Metered Single -Family Residential er $6.72 $13.44 welling nit ustomer Charge: Per bill $3.23 $6.46 ssued Gallonage Chare Per Thousand Gallons): Up to $2.30 $3.45 2,000 allons er unit ver $5.00 $7.49 2, 000— ,000 allons er unit Over $5.99 $9.00 6,000- 12, 000 allons per unit Over $7.80 $11.70 12,000- 18,000 allons er unit Use over $10.14 $15.21 18.000 allons er unit Water Service —Rate Schedule Multifamily Residential Master Meter Service Inside City Outside City Base Facility Charge: Per dwelling $6.72 $13.44 unit Customer Chor e: Per bill $3.23 $6.46 'ssued Gallona e Char a Per http://library.municode.com/print. aspx?clientID=10022&HTMRequest=http%3 a%2f%2flib... 3/9/2012 Municode Page 4 of 14 Thousand Gallons): $2.30 $3.45 to 2,000 rallons per t aer 2,000 $5.00 $7.49 llons per unit Unit = Constructed, regardless of whether ccu ied. Water Service -Rate Schedule Nonresidential Service Inside City Outside Cit Base acil it Charge: Per eter by eter ize Is" x 3/4" $6.72 $13.44 A" $10.09 $20.16 1" $16.81 $33.62 11/2" $33.62 $67.23 2" $53.78 $107.56 3" $107.56 $215.12 $168.07 $336.13 6" $336.13 $672.25 8" $537.80 $1 075.61 101, $773.10 $1 546.18 Customer Char e: Per bill ssued $3.23 $6.46 allons Char e Per Thousand Gallons): II use $5.00 $7.49 Water Service -Rate Schedule High -Volume User Service Base Facility Charge: Per meter by meter size /e" X'/4" $6.72 $10.09 1" $16.81 11/2" $33.62 2" $53.78 3" 1$107.56 http://library.municode.con/print.aspx?clientID=10022&HTMRequest=http%3 a%2f%2flib... 3/9/2012 Municode Page 5 of 14 $168.07 6" $336.13 8" $537.80 10'. $773.10 Customer Charge: Per bill issued $3.23 Gallonage Charge Per Thousand Gallons): II use 1$3.68 Water Service -Rate Schedule Metered Irrigation Service Inside City Outside City ase 4 cilit har e: Per meter y meter ize /a" X 3/4" $6.72 $13.44 /a $10.09 $20.16 V $16.81 $33.62 1'h" $33.62 $67.23 2" $53.78 $107.56 3" $107.56 $215.12 $168.07 $336.13 6" $336.13 $672.25 8" $537.80 $1075.61 101, 1$773.10 $1 546.18 Customer Charge: Per bill $3.23 $6.46 ssued allona e Charge Per Thousand Gallons): /B' X 3/4 " Meter Up to 6,000$5.00 $7.49 gallons Over $5.99 $9.00 6,000- 12, 000 gallons Over $7.80 $11.70 12,000- 18,000 allons Over $10.14 $15.21 18,000 gallons '/4" Meter Up to 9,000$5.00 $7.49 gallons Over $5.99 $9.00 9, 000- http://library.municode.com/print.aspx?clientID=10022&HTMRequest--http%3a%2f%2flib... 3/9/2012 Municode Page 6 of 14 18,000 gallons $7.80 $11.70 Over 18, 000- 27, 000 gallons Over $10.14 $15.21 27,000 gallons 1" Meter Up to $5.00 $7.49 15,000 gallons Over $5.99 $9.00 15,000- 30,000 gallons Over $7.80 $11.70 30, 000- 5,000 gallons Over $10.14 $15.21 5,000 al Ions 1 /2' Meter Up to $5.00 $7.49 30,000 gallons Over $5.99 $9.00 30,000- 60,000 gallons Over $7.80 $11.70 60, 000- 90,000 allons Over $10.14 $15.21 90,000 gallons 2" Meter Up to $5.00 $7.49 48,000 gallons Over $5.99 $9.00 8, 000- 96,000 allons Over $7.80 $11.70 96,000- 144,000 gallons Over $10.14 $15.21 144,000 allons 3" Meter http://library.municode.com/print.aspx?clientID=10022&HTMRequest=http%3 a%2fOlo2flib... 3/9/2012 Municode Page 7 of 14 Up to $5.00 $7.49 96,000 allons Over $5.99 $9.00 96,000- 192,000 gallons Over $7.80 $11.70 192,000- 288,000 gallons Over $10.14 $15.21 288,000 gallons " Meter Up to $5.00 $7.49 150,000 gallons Over $5.99 $9.00 150,000- 300,000 gallons Over $7.80 $11.70 300,000- 50,000 gallons Over $10.14 $15.21 50,000 allons 6" Meter Up to $5.00 $7.49 300,000 gallons Over $5.99 $9.00 300,000— 600,000 allons Over $7.80 $11.70 600,000— 900,000 gallons Over $10.14 $15.21 900,000 allons 8" Meter Up to $5.00 $7.49 480,000 gallons Over $5.99 $9.00 480,000- 960,000 gallons Over 1$7.80 $11.70 960,000- 1,440,000 gallons http://library.municode.comlprint.aspx?clientID=10022&HTMRequest=http%3a%2f%2flib... 3/9/2012 Municode Page 8 of 14 Over $10.14 $15.21 1,440,000 gall(ns 10" Meter Up to $5.00 $7.49 690,000 gallons Over $5.99 $9.00 690,000- 1,380,000 allons Over $7.80 $11.70 1,380,000- 2,070,000 gallons ver $10.14 $15.21 2'070,000 allons (b) Residential dwelling units. (1) Individually metered units. Each residential dwelling unit individually metered and billed for the consumption of water shall be charged for and owe each month a water service charge based upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for individually metered single-family residential. (2) Jointly metered unit. The monthly water service charge for multifamily dwelling unit projects, with units not individually metered for water, shall be determined as follows: a. The total monthly water consumption for the project will be divided by the number of units in the project served by the meter; b. The per -unit water consumption will determine the applicable charge for each unit based upon the rate schedule in subsection (a) of this section for multifamily residential master meter service; and c. The applicable water service charge for each unit will be multiplied by the number of units in the project served by the meter to determine the monthly water service charge for the entire project. (c) Manufactured home parks. The monthly water service charge for manufactured home parks shall be determined as follows: (1) The total water consumption for the project will be divided by the actual number of rental spaces served to determine the per unit water consumption; (2) The per unit water consumption will determine the applicable water service charge for each space based upon the rate schedule in subsection (a) of this section for multifamily residential master meter service; and (3) The applicable charge for each space will be multiplied by the number of spaces in the project served by the meter to determine the monthly water service charge for the project. (d) Commercial units. (1) Individually metered units. Each commercial unit individually metered for the consumption of water shall be charged a monthly water service charge based the meter size and upon the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (2) Jointly metered units. The monthly water service charge for multiunit commercial projects, with units not Individually metered for water, shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (a) Combinations of residential dwelling units and commercial units. The applicable monthly water service charge for a complex containing a combination of dwelling units and commercial units, with units not individually metered for water, shall be shall be based on the meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for nonresidential service. (f) Service for property outside the city. A person outside the city limits and authorized by the director of utilities to receive water service shall pay in accordance with subsection (a) of this section for the applicable service or any other amount as may be established and approved in writing by the city council pursuant to a water supply agreement. http://library.municode.comlprint.aspx?clientlD=10022&HTMRequest--http%3a%2P/o2flib... 3/9/2012 Municode Page 9 of 14 (g) Volume users. A user of water that: (1) Either: a, Is located within the corporate limits who qualifies for tax abatement under the city's tax abatement policy; or b. Is located within an established industrial district and has in effect an industrial district agreement with the city; and (2) Uses a minimum of 400,000 gallons of water per day, shall be billed a customer charge, a base charge based on meter size, and the amount of water consumed, as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for high -volume user service. The minimum usage shall be determined by dividing the total consumption during the billing period by the number of days in the billing period to determine the daily usage. Any user or customer who does not pay the amount due by the due date indicated on his statement shall be charged a late charge, as provided in section 98-61 (h) Recreational vehicle parks. The monthly water service charge for recreational vehicle parks shall be determined in accordance with subsection (d)(1) of this section as if it were a commercial unit individually metered. (Code 1967, § 31-56; Ord. No. 943, § 3, 11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1351, §§ 1, 2, 1-25-73, Ord. No. 2328, § 1, 10-13-77; Ord. No. 2426, § 1, 3-9-78, Ord. No. 2738, § 1, 9-27-79, Ord. No. 3054, § 1, 1-8-81; Ord, No. 3120, § 1, 4-9-81; Ord. No. 4546, § 1, 9-25-86; Ord. No. 5101, § 1, 9.22-86; Ord. No. 5645, § 1, 9-27-90; Ord. No. 6006, § 1, 9 -26-91; Ord. No. 6349, § 1, 9-24-92; Ord. No. 6427, § 1, 11-12.92; Ord. No. 6777, § 1, 9-23-93; Ord. No. 6836, § 1, 10- 10-93; Ord. No. 7097, § 1, 9-22-94; Ord. No. 7392, § 1, 9-14-95; Ord. No. 7622, § 1, 2-8-96; Ord. No. 8061, § 1, 9-11- 97; Ord. No. 8151, § 9, 12-16-97, Ord. No. 8677, §§ 1, 2, 9-9.99; Ord. No. 9225, §§ 1, 2, 9-13.01; Ord. No. 9379, §§ 1, 2, 7-11-02, Ord. No. 9416, §§ 1, 2, 9-12-02, Ord. No. 9629, §§ 1, 2, 9-25-03; Ord. No. 9854, § 2, 8-26-04; Ord. No. 9869, §§ 1-3, 9-9-04; Ord. No. 10, 158, §§ 1, 2, 9-27-05; Ord. No. 10,403, §§ 1, 2, 9-14-06; Ord. No. 10, 704, §§ 1, 2, 9- 13-07; Ord. No. 10,962, §§ 1, 2, 9-22-08; Ord. No. 11,308, § 4, 2-25.10; Ord. No. 11,494, § 1, 11-11-10; Ord. No. 11,717, § 1, 9-8-11) Sec. 98.60. - Flat -rate service prohibited, separate metering required. (a) No connections for flat -rate water service shall be allowed by the city waterworks system. (b) Every single-family dwelling house constructed in the city shall be separately metered for water service. This subsection shall apply to the remodeling or altering of any existing house, garage or other building where an additional family dwelling is to be added or where the cost of such remodeling or alteration exceeds 50 percent of the original cost of such house or building. (c) Each multi -unit residential establishment and each commercial establishment shall be either: (1) Individually metered for water service or (2) Jointly metered for water service if the utility account is opened by and remains in the name of the owner of the property on which such establishment is located. All meters for multi -unit residential establishments and commercial establishments must be installed at the road right-of-way line. (d) If a multi -unit residential establishment or a commercial establishment is connected to the city system in a manner other than as prescribed in subsection (c) on October 29, 2009, the city, when it becomes aware of such condition, shall send notice by certified mail to the last known address of the owner of the property as recorded in the appraisal records of the appraisal district in which the property is located and, if known based upon a search of the city's utility records, to the tenant at the address listed on the city's utility records. A notice which the United States Postal Service returns as "refused" or "unclaimed" shall not affect the validity of the notice; and the notice shall be considered delivered seven days after mailing the same. Such notice shall be sufficient if it generally describes and gives notice that the establishment is connected in violation of this section and advises that violation must be corrected within 365 days after receipt of such notice. If new service or a change in service is requested during such 365-day period, compliance with subsection (c) shall be required in order to reestablish water service. (e) Any person who shall violate this section shall, upon conviction, be punished as provided in section 1- 14 (Code 1967, § 31-57; Ord. No. 943, § 4, 11-7-68; Ord. No. 2328, § 1, 10-13-77; Ord. No. 11,224, § 1, 10-19-09) Sec. 98.61. - Billing; payment; late charge; discontinuance of service. (a) Water meters shall be read monthly and each customer shall be billed monthly. Each water bill shall have a precalculated and stated due date, which shall be approximately 14 days from the day the bill Is to be mailed. If a water account is not paid by the due date, the customer shall be charged a late charge in the amount of ten percent of the amount of the water charge, which shall be shown as the gross amount on the bill. If the gross amount is not paid within 12 days after the indicated due and payable date, the city reserves the right to terminate water service as provided in subsection 98_62(1) and shall not restore service until the charges are paid, including reconnect charges. http://library.municode.com/print.aspx?clientID=10022&HTMRequest=http%3a%2f%2flib... 3/9/2012 Municode Page 10 of 14 (b) The provisions of subsection (a) of this section pertaining to a late charge of ten percent for the late payment of water bills shall not apply to political subdivisions organized under state law or to official public agencies or either the federal or state government. (Code 1967, § 31-58; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1081, § 1, 3-25-71; Ord. No. 2328, § 1, 10-13-77, Ord. No. 4459, § 1, 5.22-86) Sec. 98-62. - Procedures and remedies for nonpayment of bills. (a) If any person shall permit any waste or use of water contrary to law, the city reserves the right to cut off and discontinue water service until all past due charges have been paid and any required deposit has been made and further until any and all objectionable conditions pertaining to the waste or use of water have been corrected to the satisfaction of the director of finance. (b) If the water meter has been turned off for nonpayment of charges for water services and it is turned on again by anyone other than authorized personnel a $35.00 broken lock fee will be assessed. If it becomes necessary to pull the meter, an additional $65.00 pull meter fee will be added to the account. If when, in the opinion of the utility billing manager, the turning off of the water at the curb stop or removal of the meter or the locking of the curb stop is not sufficient protection for the city against the use of water, waste or misuse of water, the utility billing manager may cause the water to be cut off and the service line to be cut and plugged. If the meter technicians have to pull an illegal "straight line," the police will be called and a $185.00 pull straight line fee assessed. Upon a reapplication for water service all applicable fees and unauthorized consumption must be paid. (a) If the water meter has been turned off for nonpayment of charges for water or sanitary sewer services and the customer has complied with the requirements of the city and is entitled to have the water turned on again, the following reconnection charges will be made, as applicable: (1) If the service is to be reconnected at the customer's request between the hours of 8:00 a.m. and 5:00 p.m. of any weekday from Monday through Friday, except holidays authorized by the city council for city employees, there is no additional charge; or (2) If the customer requests that service be reconnected at any other time than that stated in subsection (c)(1) of this section, the charge will be $50.00. (d) If any person gives the city a check for the payment of water services that is not honored by the drawee bank for any reason or an automatic bank withdrawal is returned unpaid, the city reserves the right to cut off and discontinue water service until all charges due have been paid, including, but not limited to, the processing fee established In section 2-619 of this Code. (a) If any person damages or destroys any city property used for measuring or distributing water, the director of finance shall collect from such person a sum equal to such destroyed or damaged property, but not less than $10.00. A $35.00 service charge will also be assessed to make the needed repairs. (f) Customers may request their meters be reread once a year at no charge. Subsequent requests will be assessed a $10.00 reread meter fee, if the reading is accurate. If the reading is incorrect, no fee will be assessed and the account will be adjusted to reflect the correct reading. If any person requests that his water meter be tested, the city utility billing division shall test the meter. If the meter test shows that the meter registers more water than actually consumed, the last bill shall be corrected according to the test result, and the meter shall be repaired or replaced. If the meter test shows that the meter correctly registers or registers less water than actually consumed, the customer shall be charged a meter test fee. The meter test fee for five -eighths -inch and one -inch meters is $25.00. Meter tests for meters larger than one Inch will be billed actual cost. (g) Any or all of the charges and fees provided by this section may be included in the regular or special billing of the city utility billing division and shall be in addition to all other charges or fees provided by this article. (h) It shall be unlawful for any person to hinder or interfere with any utility billing division employee or agent who is delivering water termination notices pursuant to subsection (i)(2) of this section. It shall further be unlawful for any person, other than an occupant of the premises to which notice is delivered, to remove a water termination notice delivered by the utility billing division from any premises to which the utility billing division delivered that notice. (1) Nonemergency termination. (1) Generally. Whenever the city is authorized to terminate a customer's water services against that customer's consent and under this section or whenever the city otherwise terminates water services to a customer in a nonemergency situation other than by the customer's request, the city shall first provide notice in the form and manner described in this subsection to the customer and shall afford the customer an opportunity for a hearing in the form and manner described in this subsection before the termination of the services. If, after the city has complied with the notice requirements as described in this subsection, the customer does not request a hearing for review of the termination within the specified time, the city may terminate water services to the customer on the day and at the time specified in the notice to the customer or within five calendar days thereafter. Any time elapsing after the declared termination date, the elapsing of which is due to the pendency of a hearing or the extension of time granted pursuant to a hearing, shall not be http:lllibrary.municode.com/print.aspx?clientID=10022&HTMRequest=http%3a%2f%2flib... 3/9/2012 Municode Page 11 of 14 considered when calculating the five days in which the city may terminate water after a declared termination date. (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. 1 (3) Affidavit of failure to receive notice. After the deadline for requesting a hearing, as described in subsection (1)(2)g of this section, has passed, a customer may still request a hearing to review the decision to terminate the customer's water service within ten days of the deadline upon presentation to the city manager of an affidavit declaring that the customer, through no fault of that customer, did not receive notice of termination in time to act upon the notice. When a hearing pursuant to this subsection is requested, the city manager shall as soon as practicable make a determination of whether the appeal appears to be meritorious, and if the city manager finds it is meritorious the city manager shall order the continuation or restoration of services pending the appeal. If the hearing officer finds in favor of the customer, the hearing officer may order restoration of service. (4) Notice to tenants. If the customer to whom water service is proposed to be terminated is a landlord who supplies water services to tenant water users, the city shall attempt to give notice to the tenant water users pursuant to subsection (i)(2) of this section. (5) Hearing. If any customer requests a hearing to review the decision to terminate that customer's water services, the hearing shall be presided over by the city manager or any fair and neutral person he may appoint, which person must be of managerial employment and not involved in the original decision to terminate services, in this context known as the hearing officer. The hearing shall be held no sooner than the next business day or later than 15 business days after being requested by the customer. The hearing officer may in his discretion delay or advance the hearing time upon showing of good cause by the customer. At the hearing the customer shall be given the opportunity to be heard in person to present the customer's case, to present testimony f from other persons and to admit documents. The customer may be represented by counsel, though the city shall not provide counsel to the customer. The customer shall be given the opportunity to confront and cross examine any witnesses appearing against him at the hearing. The customer may request that a representative of the utility billing division be present at the hearing and be subject to questioning. However, the rules of evidence or procedure for civil or 1 criminal trials need not be enforced. The city's reasons for terminating the customer's water j 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 customer's water service shall be terminated. The hearing officer shall have the power to grant extensions, modify billings and fashion other reliefs as would be equitable. j (j) When the water meter has been turned off for nonpayment of charges for water service, sanitary sewer service, garbage collection service or if the water meter has been turned off for payment of utility services with a check that is not honored by the drawee bank for any reason, a cutoff fee will be I charged in the amount of $35.00. Nonresidential customers whose doors are tagged prior to disconnection will be assessed a $25.00 tag door fee. When it is necessary to tag tenant's doors of a multifamily residential development prior to disconnection, a $100.00 tag apartments fee will be imposed. (Code 1967, § 31-59; Ord. No. 943, § 6, 11-7-68, Ord. No. 1015, § 1, 2-12-70, Ord. No. 2328, § 1, 10-13-77; Ord. No. 3628, § 3, 5-26-83; Ord. No. 3966, § 1, 10-11-84; Ord. No. 4458, § 1, 5-22-86; Ord. No. 6005, §§ 2, 3, 9-26-91; Ord. No. 10,366, § 3, 7-26-06, Ord. No. 10,366, § 3, 7-27-06; Ord. No. 11,308, § 5, 2-25-10) http://Iibrmy.municode.com/print.aspx?clienUD=10022&HTMRequest=http%3a%2P%2flib... 3/9/2012 Municode Page 12 of 14 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 fumished by the city's water system shall be metered by a city water meter connected to a separate service line from the city water main and located in the utility easement, upon the making of application therefor by the owner of such property and making the required deposits and paying the cost of meter installation and tap fees provided for by this article. Such meter shall be read by the city's meter readers and will be subject to the established water rates and charges of the city the same as any other metered water connection to a city main. (c) No person shall be allowed to disconnect a water meter that meters a facility not discharging into the city's sanitary sewer system as stated in this section and then reconnect such meter to the city's water system within a 12-month period. (d) Any person representing to the city that the facility for which a meter is installed, under this section, does not discharge waste into the city's sanitary sewer system when in fact it does or any person having facilities for which such a meter is installed who subsequently connects such facility to the city's sanitary sewer system without notifying the director of utilities shall be punishable as provided in section 1-14 (Code 1967, § 31-61; Ord, No. 3317, § 1, 2-11-82) Sec. 98.64. - Study to determine charge when portion of water bypasses sewer. (a) This section shall apply to those water users stated in section 98-63 who have facilities connected to the city sanitary sewer system and who make application to the director of utilities under this section. (b) Any water user owning or having control of property on which there is located one or more facilities requiring water and such water provided to any such facility is not discharged into the city sanitary sewer system may make application to the director of utilities requesting that a study of the applicant's property and facilities be made for the purpose stated in this section and paying the fee required in this section. (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. (a) The director of utilities is authorized, at his discretion or on written request from an applicant, to make such additional studies from time to time of any such property and facilities to check the current accuracy of the filed study on any such property, and a new study based upon the latest available data shall be filed with the director of utilities to replace the prior one. No change in the basis of computing the sewer service charge for any property will be made until the first billing date after the filing by the director of utilities of the first or any subsequent report. Requests by an applicant for a restudy under this subsection will not be accepted or acted on more often than once in every 12-month period (annually) subsequent to the filing of the first report on the applicant's property. (f) If it is necessary that certain testing instruments be installed or that existing equipment or facilities located on the applicant's property be altered, adjusted, disconnected or temporarily moved in order to facilitate the making of an engineering study or test under this section, all of such shall be done by and at the expense of the applicant. (Code 1967, § 31-62; Ord. No. 3317, § 1, 2-11-82) Sec. 98.65. - Liens. (a) Water. Liens for unpaid water charges shall be filed according to the following: http://library.municode.com/print.aspx?clientID=10022&HTMRequest=http%3a%2PIo2flib... 3/9/2012 Municode Page 13 of 14 (1) After the city has terminated a customer's water pursuant to subsection 9898=62(i) or after the city terminates water service at the customer's request, the supervisor of the utility billing division shall file a lien on the property served by the terminated water service and in the amount the customer whose service was terminated owed to the city for water service at the time of the termination of services. (2) If a property receives water services illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property in the amount of the proper charge for the water actually used or, if there is no way of determining the amount of water used, in the amount of the minimum monthly water charge that would have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such water services. (b) Garbage collection. Liens for unpaid garbage collection service shall be filed as follows: (1) After the city has terminated a customer's water service pursuant to subsection 9859(I) or after the city terminates water service or garbage service at the customer's request or after a customer without water service becomes more than $50.00 delinquent for garbage service alone, the supervisor of the utility billing division shall file a lien on the property serviced by garbage collection service and In the amount the customer whose service was terminated owed to the city for garbage collection service at the time of the termination of services. (2) If a property receives garbage collection services illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property in the amount of the minimum monthly garbage collection charge that would have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such garbage collection services. (c) Sewer service. Liens for unpaid sewer service shall be filed as follows: (1) After the city has terminated a customer's water service pursuant to subsection 98-620) or after the city terminates water service or sewer service at the customer's request or after a customer without water service becomes more than $50.00 delinquent in payment for sewer charges alone to the city, the supervisor of the utility billing division shall file a lien on the property served by the water service and in the amount the customer whose service was terminated owed to the city for sewer service at the time of the termination of services or the accumulation of the delinquency in payment for sewer services. (2) If a property receives sewer services Illegally, without having an account with the city utility billing division, the supervisor of the utility billing division shall file a lien against that property In the amount of the minimum monthly sewer charge that would be have been charged to that property had a legitimate account been opened, multiplied by the number of months during which that property illegally received such sewer services. (d) Exemptions. No lien for water charges, garbage collection charges, or sewer charges shall be placed on a property it. (1) A customer owes less than $50.00 for the aggregate sum of water charges, garbage collection charges and sewer charges; (2) The customer is not delinquent in payment for water charges, garbage collection charges, or sewer charges; (3) The city knows the property to be a homestead as defined by the stale constitution; or (4) The city knows the property to be a single-family dwelling house and the delinquent water charges, garbage collection charges, or sewer charges to be for services provided to a residential consumer who is not the owner of the property. (a) Filing procedures. Any lien authorized by this section shall be filed with the county clerk or with the county clerk of the county in which the property to which the lien will be attached is located. The city shall then have a privileged lien on as many lots or pieces of property as the terminated services previously served and are described on the lien instrument by metes and bounds or by city lot and block description or by any other adequate description. The lien shall secure the charges made by the city for the services rendered to that property. Such a lien shall be filed pursuant to the authority granted in Vernon's Ann. Civ. St. art. 1175, § 11; V.T.C.A., Local Government Code §§ 51.072 and 402.017; and state constitution article XI, section 5. The lien shall bear interest at a rate of ten percent per annum. The supervisor of the utility billing division shall add to any lien filed pursuant to this section that amount of the filing fee charged by the county clerk for filing that lien. The lien shall be effective against that property if the account holder or user of services at that property was either the owner of that property, a tenant of that property or a permissive holder of that property or an adverse possessor of that property. For any charges for which the lien authorized by this section is designed to secure, suit may be instituted and recovery in the foreclosure of that lien may be had in the name of the city. The city attorney is authorized to file such suits in a state court of competent jurisdiction. (f) Notice and hearing. After the filing of a lien pursuant to this section, the supervisor of the utility billing division shall within 30 days of the filing of that lien give the owner of that property and the account holder notice that such a lien has been filed on that property and shall inform the owner and account holder of their rights of appeal. Within 30 days of the postmark of the notice sent to the property owner http://library.mumeode.comlprint.aspx?clientID=10022&HTMRequest=http%3a%2PIo2Rib... 3/9/2012 Municode Page 14 of 14 (g) (h) or account holder, the property owner or account holder may appeal the decision to impose the lien on that property to the city manager or any fair and impartial person whom the city manager may designate. The city manager shall authorize the release of the lien if the property owner or account holder shows that no bill for the services to this property encumbered by the lien is owing or if the property owner shows that the encumbered property is and at all times, from the hour of filing of the lien until the time of the appeal, has been a homestead as defined by the state constitution. The city manager may modify or release the lien to reflect the true amount of delinquency in payment for services to the property If the owner or account holder demonstrates that a lesser bill is owing than the lien alleged or if the supervisor of the utility billing division cannot show that all the lien alleged is owing. The person last listed on the tax records of the county in which the property is located as being the owner of any given piece of property shall be presumed to be the owner for purposes of this subsection, and the address listed for the owner on the tax records shall be presumed to be the address of the owner. 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 water and wastewater charges as they come due. 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. 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. 1967, § 31-63; Ord. No. 6005, § 4, 9-25-91; Ord. No. 11,624, § 1, 4-14-11; Ord. No. 11,645, §§ 2-4, 5-26-11) Secs. 98.66-98-89. - Reserved. FOOTNOTE(S): t+r'I Cross reference— Plumbing code, § 18-461 at seq.; water in mobile home parks, § 58-144. Back tttfi State Law reference —Authority of city to operate waterworks and set rates, V.TC.A., Local Government Code § 402.017. Back http://iibrary.municode.comlprint.aspx?clientID=10022&HTMRequest=http%3a%2t%2flib... 3/9/2012 ' Exhibit "D" J l 0� 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.0 .n1 d$y of , 19760 by add between the SAN JACINTO RIVER AUTHORITY. ("SJRA") a conservation and reclamation district and political subdivision • of the State of Texas, and the CITY OF HOUSTON, TEXAS, ("the City"% a municipal corporation: 1. The provisions of Section VII of the contract between the 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 treated water to the City of Baytown and other local govermental 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 CO BAWA include appropriate covenants on the part of SAWA 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 SAWA 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 SAWA 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 cc 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, 19440 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 lOth 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 obligatior imposed hereunder shall be binding on their successors or assigc The waiver provided herein shall be applicable only to sales by the City to SAWA 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 Harch 27, 1944, contract shall remain in full force and effect. IN WITNESS WHEREOFt the parties hereto, acting under the authority of their respective governing bodies have caused this contract to be executed an this 2t >-_ day of 197 in duplicate originals, each of which shall constitute an origins SAN JACINTO RIVER AUTHORITY ATTEST: By BY A4 t-w 4-le-Vice-Pre nt secretary CITY OF HOUSTON ATTEST: By .ayur By ty Secretiry COUNTERSIGNED: �i ty ontro er