Ordinance No. 14,639ORDINANCE NO. 14,639
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST TO A WATER SUPPLY
AGREEMENT WITH CHAMBERS COUNTY MUNICIPAL UTILITY
DISTRICT NO. 3; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the City Manager to execute and the City Clerk to attest to the Water Supply
Agreement with Chambers County Municipal Utility District No. 3. A copy of said agreement is
attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the
City of Baytown, this the 2l' day of December, 2
RANDON CAPETILL , Mayor
APPROVED AS TO FORM:
•' E' City Attorney
R:UU= Homer DocumentsTiles City Council .Ordinances\2020\December 21.CMUD#3 - WaterSupplyAgreement.doc
Exhibit "A"
WATER SUPPLY AGREEMENT
BETWEEN
THE CITY OF BAYTOWN, TEXAS
AND
CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO.3
This Water Supply Agreement (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 located in Harris County, Texas, and Chambers County, Texas (the "City"), and
Chambers County Municipal Utility District No. 3, a body politic and corporate and a
governmental agency of the State of Texas, created by the 861h Texas Legislature and operating
under and governed by the provisions of Chapter 8042, Texas Special District Local Laws Code
and Chapters 49 and 54, Texas Water Code (the "District").
1. The City is a municipal corporation and home -rule city located in Ifarris County,
Texas, and Chambers 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 by the 80h Texas Legislature and
operating under and governed by Article XVI, Section 59, Chapter 8042, Texas Special District
Local Laws Code, and Chapters 49 and 54, Texas Water Code.
3. The District will own or lease a water distribution system serving the Service Area
(hereinafter defined) 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:
AGREEMENT
ARTICLE I
DEFINITIONS AND EXHIBITS
1.01 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:
"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.
"Director" shall mean the Director of Public Works/Engineering of the City of
Baytown, or his designee.
"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.
"Effective Date" shall mean the effective date of the Strategic Partnership
Agreement between the City and the District.
"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.
"Interconnections" shall mean those improvements necessary for the connection of
the City's System and the District's System as set forth herein.
"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.
"Service Area" shall mean the area within the boundaries of the District consisting
of (i) approximately 187.1135 acres, more particularly described on Exhibit "A," which is
attached hereto and incorporated herein for all intents and purposes, and (ii) approximately
36.17 acres more particularly described on Exhibit "A-1," which is attached hereto and
incorporated herein for all intents and purposes, if and when such tract of land is annexed
into the boundaries of the District.
"TCEO" shall mean the Texas Commission on Environmental Quality or its
successor agency.
"Water" shall mean potable water meeting the minimum drinking water standards
prescribed by Texas Department of Health Resources and TCEQ, and their successor
agencies.
1.02 Exhibits. The following Exhibits attached or to be attached to this Agreement
are a part of this Agreement as though fully incorporated herein.
Exhibit A
Service Area (District Property)
Exhibit A-1
Service Area (Annexation Property)
Exhibit B
District Rate Order
Exhibit C
City's Present Water Service Ordinance
Exhibit D
Amendatory Contract between the City of Houston
and the San Jacinto River Authority
ARTICLE II
CONSTRUCTION OF IMPROVEMENTS BY DISTRICT
2.01 District's System. The District shall acquire or construct, or cause to be
acquired or constructed, the District's System. No cost of the District's acquisition or construction
of the District's System, including engineering fees, the acquisition of any lands or easements in
connection therewith, and obtaining the approval of any regulatory agency, shall be borne by the
City.
2.02 City pproval 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 Director 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
Director. The District's Engineer will provide the City, upon completion of the construction, with
one set of "as built" drawings sealed by a licensed engineer in the State of Texas, which meet the
approval of the Director 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, sealed by a licensed
engineer in the State of Texas, 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 be found by the Director not to conform 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 Delivery. The Points of Delivery 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 and subject to the terms of this Agreement, both the City and the District agree as
follows: (i) the City shall deliver to the District and the District shall accept from the City water in
quantities as specified in Article IV herein, for the price at the Point 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 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 or contract with the City to 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, 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 master meter(s), with a
double-backflow preventer at all points of interconnection and measuring total flow through the
Interconnection having an accuracy tolerance of two percent (2°0) 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. The District shall also install,
operate and maintain, or contract with the City to install, operate and maintain, as required by the
City, pressure regulating devices and equipment. 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
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manufacturer thereof, not to exceed tolerance of two percent (2%), at least once
every twelve (12) months. At reasonable intervals, the City agrees to properly
check and calibrate the flow, recording the totalizing measuring equipment for the
purpose of ascertaining its condition of accuracy. The City agrees to notify the
District at least forty-eight (48) hours in advance of the time any test is to be made,
to permit the District to observe such test and to furnish the District with a copy of
the results of all checks and calibration tests performed on said measuring
equipment. If any tests or calibration checks show a condition of inaccuracy,
adjustments shall be made immediately by the City 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.
(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. 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.
3.02 City's Utility Requirements. The District covenants and agrees to comply with the
City's Plumbing Code, Chapter 109 and Chapter 126, Article V, Division 4 of the City's Code of
Ordinances and all amendments thereto (the "Utility Requirements"), 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 Utility Requirements and Chapter 18, Article
IV of the Code of Ordinances and all amendments thereto (the "Plumbing Code"), and after
inspection and approval by the District's operator or other authorized representative. The District
shall, after such inspection and approval and prior to service to the facility, submit to the City an
affidavit of inspection certifying that all the Utility Requirements have been satisfied.
The District further agrees that all water service connections shall be maintained in
compliance with the Utility Requirements and the Plumbing Code 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 specified in Section 2-595 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 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 Utility
Requirements or 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 the District's 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 dissolution 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 Agreement shall pass from the City to the District; and the
District will take such title, possession and control at the Point of Delivery. As between the parties
hereto, the City shall be in exclusive control and possession of the water deliverable hereunder and
solely responsible for any damage or injury caused thereby until the same shall have been delivered
to the District at the Point of Delivery, after which delivery the District shall be in exclusive control
and possession thereof and solely responsible for any injury or damage caused thereby, and such
party respectively shall save and hold the other party harmless from all claims, demands, and
causes 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 Ouantit . All services to be provided by the City herein shall be expressly
subject to the payment of the appropriate impact fees, without credit and/or reimbursement, and
other costs specified in this Agreement and the City's Code of Ordinances. Subject to the terms
and conditions of this Agreement, the 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 Agreement for
water services to be supplied in the Service Area, subject to the limitations expressed hereinabove.
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 400 gpd /ESFC. It is
stipulated that the District's total treated water requirements shall not exceed 400 gpd multiplied
by:
the number of ESFCs necessary to serve any undeveloped property included within
the Service Area for which a preliminary plat has been approved by the City, plus
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2. the number of ESFCs necessary to serve property previously developed or currently
under development within the Service Area;
provided, however, that in no event shall the District's total treated water requirements exceed
1,625 ESFCs. In the event an approved preliminary plat expires, the District's total treated water
requirements shall be reduced by the number of ESFCs associated with the expired preliminary
plat.
4.02 Adjusted Quantity. It is expressly understood and agreed that, commencing five
(5) years after approval of each final plat of the Property, the quantities calculated in accordance
with Section 4.01 and the capacities reserved in Section 4.03 shall be adjusted annually to a
quantity that equals one hundred ten percent (I 10%) of the actual number of ESFCs in the Service
Area; provided that the actual quantity does not exceed the quantity as calculated in accordance
with Section 4.01.
Additionally, it is expressly understood and agreed that:
(i) commencing five (5) years after final plat approval of the last phase of the
development of the Property or
(ii) if there is no preliminary plat filed within five (5) years after the most recent final
plat approval,
the quantities specified in Section 4.01 shall be adjusted annually if the actual usage during the
previous 12-month period is less than one hundred percent (100%) of the quantity calculated
pursuant to Section 4.01. In such event, the quantity shall be reduced to one hundred ten percent
(110%) of the actual usage in the Service Area.
4.03 Capacity Reserved. The City covenants and agrees that upon receipt of impact
fees as provided for in Section 5.01 of this Agreement, the City shall endeavor to reserve for the
exclusive benefit of the District the capacity in its water supply facilities sufficient to supply and
treat the quantities established in Section 4.01 of this Agreement and as adjusted in Section 4.02.
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.
4.04 Service Contracts with Other Entities. The District shall not permit any entity
located outside the Service Area to connect to the District's System during the term of this
Agreement without the express prior written consent of the City. Failure to comply with this
provision shall constitute an Event of Default.
ARTICLE V
PAYMENT AND TERMS
5.01 Impact Fees. The District shall pay to the City impact fees pursuant to Article IV,
Chapter 114 of the Code of Ordinances, Baytown, Texas, to purchase water capacity from the City
to serve the Service Area. 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. The water
impact fee shall be one hundred twenty-five percent (125%) of the water impact fee pursuant to
Section 114-99(b) of the City of Baytown Code of Ordinances for each equivalent single-family
connection ("ESFC") charged to development within the City at the time of collection. The water
impact fee shall be collected at the time the Developer submits each final plat.
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 per connection. The charge shall be
calculated on the basis of the metered water use and otherwise 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(s) or individual residential/commercial meters, whichever is greater.
Should a disparity between the master meter(s) and meters of the individual residences or
commercial developments exist and the master meter(s) records a greater water usage, the District
shall be responsible for the payment of the amount of water usage indicated by the master meter(s)
at the rate hereinabove expressed.
As used in this section, the term "day" shall mean a period of twenty-four (24) consecutive
hours beginning at eight o'clock (8:00) a.m. on one calendar day and ending at eight o'clock (8:00)
a.m. on the next succeeding calendar day. The term "month" shall mean a period beginning at
eight o'clock (8:00) a.m. on the first day of a calendar month and ending at eight o'clock (8:00)
a.m. on the first day of the next succeeding calendar month, except that the first month or partial
month shall begin on the day of the initial delivery of water hereunder, and the minimum monthly
payment, if any, shall be prorated for such partial month.
The measuring equipment used for the measurement of treated water shall be read by the
District on the last day of each month (or at such period of frequency arranged between the parties)
at eight o'clock (8:00) a.m., or as near thereto as reasonably practicable; and on such day, the
District shall account and certify to the City the amount of treated water delivered to the District.
Additionally on that day, the District shall render to the City an accounting of the service charges
as provided in Section 5.04. On receipt of the above -described accounting, the Director will bill
the District for the service charges accrued during the preceding month. Payment by the District
to the City shall be made within thirty (30) days following the receipt of the bill.
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 10t' day of each month
concerning the prior month's operations. After receipt of each preliminary operating report, the
City will generate an invoice specifying the amount due and owing for the report period. The
District shall present both the preliminary operating report and the corresponding invoice to its
Board of Directors each month on or before the third Thursday of the month for the Board's review
and approval. On or before the Friday after the third Thursday of each month, the District shall
tender to the City a final operating report for the previous month in a form approved by the City's
Director of Finance containing a certification by the presiding officer of the Board that the
information contained in the report is true and correct. Should there be any difference between
the preliminary and final operating reports, which affects the amount due and owing to the City,
the City shall adjust the next month's bill to address such difference.
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 Agreement 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 Service Charge 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
due to unforeseen contingencies, 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.
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5.07 Operating Expense and Covenants as to Rates. The sums to be paid the City by the
District under the terms of this Agreement are declared by the District to be an essential cost of
operating and maintaining the District's System as a part of the District's System, and such costs
shall be first charged upon the gross revenues received from the District's System as a part of the
District's System, and such costs shall be a first charge upon the gross revenues received from the
District's operation of said system. The District agrees to establish and maintain rates sufficient to
pay all costs and expenses of operation and maintenance of the District's System.
5.08 Events of Default. An Event of Default, as stated from time to time herein, shall
constitute a material breach of this Agreement. For any material breach of this Agreement, 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
thirty (30) days' 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 thirty
(30) days and faithfully prosecute the same. Termination of service pursuant to this section shall
not limit either party to any other remedy at law or in equity.
ARTICLE VI
PERFORMANCE REGARDING TREATED WATER SERVICES
The City covenants and agrees that it will not contract for the sale of water to other users
to such an extent or for such quantities as to impair the City's ability to perform fully and punctually
its obligations to the District under this Agreement. In case of temporary shortage of water
notwithstanding the City's compliance with the provisions of this Article, the City shall distribute
the available supply as provided by the laws of the State of Texas. It is specifically agreed and
understood that this Agreement contemplates that the District will resell the water purchased
pursuant to the terms hereof.
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 intents and purposes, and not withstanding any other provision of this Agreement to the
contrary, the District covenants and agrees that it takes the treated water under this Agreement
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
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indemnify the City in the amount of all expenses relating to the legal proceeding, including, but
not limited to, costs of court and reasonable attorney's fees.
The District acknowledges that the City may be liable to the Baytown Area Water
Authority, the City of Houston and/or the San Jacinto River Authority for monetary damages in
the event that the District or any purchaser of water from or through the District fails to comply
with the restrictions and limitations on the sale of water set out in this Article. The District
acknowledges that such monetary damages would amount to seventy-five percent (75%) of the
consideration or revenue received by the City for the estimated amount of water distributed, sold
or used in violation of such restrictions or limitations plus all litigation expenses, reasonable
attorney fees, and all other remedies available to the Baytown Area Water Authority, the City of
Houston and/or the San Jacinto River Authority. The District hereby agrees to fully indemnify,
hold harmless and defend the City from and against any such expenses and liability which the City
might incur or any loss the City might suffer as a result of any failure by the District or any
purchaser of water from or through the District, to comply with such restrictions and limitations.
The District further agrees to include covenants in any sales or contracts for sale of water by the
District to any other entity to ensure that said other entity will likewise indemnify, hold harmless
and defend the City. The District agrees to submit the wording of such covenants for the written
approval of the City prior to entering into such contracts.
The District acknowledges that the City of Houston may be liable to the San Jacinto River
authority for monetary damages in the event that the District or any purchaser of water from or
through the District fails to comply with the restrictions and limitations on the sale of water set out
in this Article. The District acknowledges that such monetary damages would amount to seventy-
five percent (75%) of the consideration or revenue received by the City of Houston for the
estimated amount of water distributed, sold or used in violation of such restrictions or limitations
plus all litigation expenses, reasonable attorney fees, and all other remedies available to the San
Jacinto River Authority. The District hereby agrees to fully indemnify, hold harmless and defend
the City of Houston from and against any such expenses and liability which the City of Houston
might incur or any loss the City of Houston might suffer as a result of any failure by the District
or any purchaser of water from or through the District, to comply with such restrictions and
limitations. The District further agrees to include covenants in any sales or contracts for sale of
water by the District to any other entity to ensure that said other entity will likewise indemnify,
hold harmless and defend the City of Houston. The District agrees to submit the wording of such
covenants for the written approval of the City prior to entering into such contracts.
On or before the first anniversary of the date this Agreement is signed, the District shall
approve and implement and throughout the term hereof remain in full compliance with a water
conservation program in accordance with the requirements of the TCEQ. Such plan and any
amendments thereto shall be submitted to the appropriate authority as required by state law for
review and approval. In the event that the TCEQ adopts new requirements, the District shall adopt
an amended plan and submit same to the appropriate authority for review and approval.
Within thirty (30) days after the term of this Agreement, the District shall furnish the City
12
with a statement, under oath, showing the quantities and sources of all water for use or resale by
the District.
ARTICLE VII
MISCELLANEOUS PROVISIONS
7.01 Force Maieure. In the event any party is rendered unable, wholly or in part,
by force majeure to carry out any of its obligations under this Agreement, it is agreed that on such
party's giving notice and full particulars of such force majeure in writing or by telegraph to the
other party as soon as possible after the occurrence of the cause relied upon, then the obligations
of the party giving such notice, to the extent it is affected by force majeure and to the extent that
due diligence is being used to resume performance at the earliest practicable time, shall be
suspended during the continuance of any inability but for no longer period. Such cause shall as
far as possible be remedied with all reasonable dispatch.
The term "force majeure," as used herein, shall include, but not be limited to, acts of God,
strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades,
insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, storms, floods, washouts,
droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions,
breakage or damage to machines or pipelines and any other inability of either party, whether
similar to those enumerated or otherwise and not within the control of the parties claiming such
inability, which by the exercise of due diligence and care such party could not have avoided.
It is understood and agreed that the settlement of strikes or lockouts shall be entirely within
the discretion of the party having the difficulties, and the above -referenced requirement that any
force majeure be remedied with all reasonable dispatch shall not require the settlement of strikes
or lockouts by acceding to demands of the opposing party when such course is inadvisable in the
discretion of the party having the difficulty.
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
13
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
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
Fax: (281) 420-6586
If to the District, to
Chambers County Municipal Utility District No. 3
Attn: Bryan T. Yeates
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 Assi ng ability. 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.
14
7.08 Parties in Interest. This Agreement shall be for the sole and exclusive benefit of
the parties hereto and shall not be construed to confer any rights upon any third party. The City
shall never be subject to any liability in damages to any customer of the District for any failure to
perform its obligations under this Agreement.
7.09 Captions. The captions appearing at the first of each numbered section in this
Agreement are inserted and included solely for convenience and shall never be considered or given
any effect in construing this Agreement or any provision hereof, or in connection with the duties,
obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of
intent should arise.
7.10 Severability. The provisions of this Agreement are severable, and if any provision
or part of this Agreement or its application thereto to any person or circumstance shall ever be held
by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the
remainder of this Agreement and the application of such provisions or part of this Agreement to
other persons or circumstances shall not be affected thereby.
7.11 Merger. This Agreement embodies the entire understanding and agreement
between the parties as to the water supply 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 for a term of thirty (30) 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. This Agreement shall be automatically extended for additional five (5)
year terms unless either party gives written notice of termination three (3) months prior to the date
of any such automatic extension. However, both parties expressly understand and agree that
should any portion of the property involved in this Agreement become annexed by the City of
Baytown for full purposes, this Agreement may terminate with respect to such area at the sole
option of the City.
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.
15
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.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
16
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this
day of , 2020.
ATTEST:
Felica J. Poe
Secretary, Board of Directors
APPROVED AS TO FORM:
Bryan T. Yeates
Attorney for the District
CHAMBERS COUNTY MUNICIPAL UTILITY
DISTRICT NO.3
Adam Kupstas
President, Board of Directors
17
ATTEST:
Leticia Brysch
City Clerk
APPROVED AS TO FORM:
Karen L. Horner
City Attorney
CITY OF BAYTOWN
Richard L. Davis
City Manager
18
EXHIBIT "A"
Description of Service Area (District Property)
19
Chambers County
Municipal Utility District No, 3
187.1135 Acres
STATE OF TEXAS
COUNTY OF CHAMBERS §
Chambers County School Land League
Abstract No. 321
A METES AND BOUNDS of certain 187.1135 acre tract of land situated in the Chambers County School
Land League, Abstract No. 321 in Chambers County, Texas, being all of a called 5.7270 acres conveyed by
Deed Montgomery Jett Angel Trust recorded in Document No. 2018-137473 of the Official Public Records
of Chambers County (OPRCC), the remainder of a called 154.072 acres (Tract 3) conveyed by Correction
Warranty Deed Park Block, Ltd. and recorded in Volume 1161 at Page 209 OPRCC, all of a called 41.7490
acres conveyed by Correction Deed to The Noor Foundation and recorded in Doctnnent No. 2018.131695
OPRCC, and all of a called 27.497 acres conveyed by Deed to Harry W. Freeman, Trustee recorded in
Volume 173, Page 303 of the Deed Records of Chambers County (DRCC) (now carried in the name of Family
Interests, Ltd. on tax roll); said 187.1135 acre tract being more particularly described ds follows with all
bearings being based on the Texas Coordinate System of 1983, South Central Zone;
BEGINNING at a point -for -corner being in the south right-of-way line of Interstate I lighway No. 10 (300
feet wide right-of-way) for the northwest corner of that certain 40.323 acres described in Lis Pendens
dated June 6, 2005. styled State of Texas vs. Family Interests, Ltd., recorder.! in Volume 781, Page 367
OPRCC and the northeast carrier of said 5 7270 acres, being at the intersection of the south right of way
line of said Interstate Highway No. 10 with the west right of -way line of State Highway 99 (af k/a East
Grand Parkway South) and being the northernmost northeast corner of the herein described tract. (Said
BEGINNING POINT has a State Plane Coordinate Value of Y-13,870,267.98 and X=3,278,546.95.)
THENCE, South 02`31'30" East, along the narVreast line of the herein described tract, the east line of said
5.7270 acres. the northernmost west line of said 40.323 acres and the west right-of-emy line of said State
Highway 99, 50.17 feet to a point -far -corner at the beginning of a non -tangent curve to the right being an
interior corner of the herein described tract, an exterior corner of said 40.323 acres, an exterior cnwer of
said State Highway 99 and the nor_hernmost corner of said 154.072 acres;
THENCE, along said -urve to the right, along the SUUtherilmost east line of the herein descntred Ira(-L, the
east line of said 154.072 acres, a west I ne of said 40.323 acres and the Nest right-of-way line of said State
Highway 99, said curve having a radius of 1110.92 feet, a central angle of 28'44'52" and a chord bearing
South 61'49'04" Eacl, 551.57 feet, and an arc length of 557.40 feet to a po nt-for-corner;
THENCE, South 27`18'58" East, along the southernmost east line of the herein described tract, the east
line of said 154.072 acres, the southernmost west line of said 40.323 acres and the west right -or -way line
of said State Highway 99, 2133.74 feet to a point -for -corner at the beginning of a carve to the right;
THENCE, along said curve to the right, along the Southernmost east line of the herein described tract, the
east line of said 154 072 acres, the east line of said 41 7490 acres, the southernmost west line of said
40 323 acres and the west right-of-way line of said State Highway 99, said curve having a radius of 2664.77
feet, a central angle of 57'06'14", a chord bearing South 01'14'09" West, 2547.28 feet, and an arc length
of 2655.84 feet to a point -far -corner in the south line of said Chambers County School Land Survey and
the north line of the Jacob Townsend Survey, Abstract No. 25, Chambers County, Texas, being in the North
lime of a called 92.3102 acres conveyed by Deed to Kilgore Business, LLC recorded In Volume 1663, Page
649 OPRCC and being the southeast corner of the herein described tract, the southeast corner n` said
Page 1 of 3
K:\00280\00280 000100 Boundary Survey - 186 Acre Baytovm Tractjl Surveying Phase\CCN4t10 No. 3\Documents\CCfv'JD No.
3 - Tract Onr PA&B.do,-.x
Chambers County Chambers County School Land League
Municipal Utility District No. 3 !abstract No. 321
187.1135 Acres
41,7490 acres and the southwest corner of said 40.323 acres;
THENCE, South 87`32' 17" West, along the easternmost south line of the herein described tract, the south
line of said Chambers County School land Survey, the south line of said 41.7490 acres, the south line of
said 154.072 acres, the north line of said 92.3102 acres and the north line of said Townsend Survey, 945 19
feet to a point -far -corner being the southernmost southwest corner of the herein described tract, the
southwest corner of said 41.7490 acres, the southernmost southwest corner of said 154.072 acres and
the southeast corner of a called 32.10 acres conveyed by Deed Speer Properties, Inc. recorded in Volume
549, Page 766 OPRCC;
THENCE, North 02°27'43" West, along the southernmost west line of the herein described tract, the
southernmost west line of said 154.072 acres, the west line of said 41.7490 acres and the east line of sa'd
32.10 acres, 3478.65 feet to a point -for -corner, being and interior corner of the herein described tract, the
northwest corner of said 41.7490 acres and the northeast corner of said 32.10 acres;
'I FIENCE, South 87'32'17" Nest, along the westernmost south line of the herein described tract, the
westernmost south line of said 154.072 acres, the north line of said 32.10 acres and the north line of a
ca!lee 1.9821 acre tract conveyed by Deed to Speer Properties, Inc, recorded in Volume 549, Page 769
OPRCC, 1478.70 feet to a point -for -corner being the westeinmist southwest corner of the herein
described tract, the westernmost southwest corner of said 154.072 acres and the northwest corner of
said 1.9821 acres;
THENCE, North 02'27'43" West, along the westernmost west line of the herein described trar, the
westernmost west Fne of said 154.072 acres, and the East line of a called.1.391 acres conveyed by Deed
to Speer Properties, Inc recorded in Volume 89, Page 126 OPRCC, 1040 40 feet to a point -for comer being
the southwest corner of said called 27.497 acres;
THENCE, Continue North 02`27'43'' West, along the westernmost west line of the herein descrioed tract,
the westernmost west line of {.aicl 194.072 acres, the west line of said 27.497 acres, the east line of said
4.391 acres and the east line of a called 1.49 acres conveyed by Deed to United Gas Pipe Line Company
recorded in Volume 163, Page 459 DRCC, 1086.56 feet to a point -for -corner being the westernmost
northwest corner of the herein described tract, the northwest corner of said 27.497 acres and the
southwest corner of a called 20.98 acres conveyed by Betty Stubbs McCune to Frank B. McC,rne in Cause
No. 3127 of the Probate Records of Chambers County, Texas;
Tl-IENCE, North 87°32' 17" East, along the wesrernmost north line of the herein described tract, the north
line of said 27.497 acres and the south fine of said 20.98 acres, 1094.44 feet :o a point -for -corner bei•ig
the northeast corner of sairl 27.497 acres and an exterior corner of said 154.072 acres;
THENCE, Continue North 87'32'17" East, along the westernmost north line of the herein described tract,
the westernmost north line of Bald 154.072 acres and the south line of said 20.98 acres, 123.63 feet to a
point -for -corner being an interior corner of the herein described tract, an interior corner of said 1S4 072
acres and the southeast corner of said 20.98 acres;
THENCE, North 02°31'30"' Vvest, along an interior west line of the herein described tract, the northernnnost
west line of said 154.072 acres and the east line of said 20.98 acres, 764.88 feet to a point -for -corner
Page 2 of 9
K\00280%00280-0001-00 E3or,ndary S,t: vey • 186 Acre Baytown Tract\1 surveying Phase\COOIJO No. 3\Qocurr,ent5\CC4'MUU he
3 Tacl One M&B d0rx
Chambers County Chambers County School Land League
Municipal Utility District No. 3 Abstract No, 321
1.87.1.135 Acres
being an interior corner of the herein described tract, the iorthea5t corner of said 20.98 acres and the
southeast corner of said 5.7270 acres;
THENCE, South 87°31'3S" West, a-ong an interior line of the herein described tract, the south line of said
5,7270 acres and the north line of said 70.98 acres, 607.18 feet to a point for -corner being ar exterior
corner of the herein described tract, the southwest corner of said 5.7270 acres and the southeast corner
of a called 4 964 acres conveyed by Deed to Wowco Properties, LLC recorded in Volume 1677, Page 404
01 RCC;
THENCE, North 02°17'47' West, along the northernmost west line of the herein described tract, the west
line of said 5.72.70 acres and the east line of said 4.964 acres, 383.93 feet to a point -for -corner being the
south right of -way line of said Interstate Highway No. 10 for the northernmost northwest corner of the
herein described tract, the nur thwest m.onrer of said 5.7270 acres and the northeast corner of said 4.964
acres;
l"HENCE, North 82'20' 19" East, along the northernmost north line oftVe herein described tract, the north
line of said S.7270 acres and the so;rth right-of-way line of said Interstate Highway No. 10, 608.09 feet to
the POINT Or BEGINNING, CONTAINING 387.1.135 acres or 8,150,665 scidate feet of land in Chambers
County, Texas as shown on Drawing No. 1,4085 filed it, the offices of Jones I Carter in Bellaire, Texas
This document was prepared under 22 'rAC 663.21, does not reflect the results of anon the ground survey,
and is not to be used to convey or estab"ish interests in real property except those rights and interests
implied or established by the creation or reconfigurat°on of the polijlcal subdivision for which it was
prepared. i
Jones I Carter
6330 West Loop South, Suite 150
Bellaire, Texas 77,101
(713) 777-5337
"Ic.;�s Hoa,doj r1'r�/e.esinna(rnlydSurr e_Yr+r#
4Rfgiit,a1iou ``rn, 100,1000
_--fit- g y/ rough Steven Jares
e its re( Professional Land Surveyor
��•�� escarter,com
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Page 3 of 3
K:\(W280\00280 000100 Boundary $j vey -- 186 Acre Baytown rract\15urveving Phase\CCiVIL0 No. 3\Documents\CCMVD nt..
3 Traci One M&B.docx
EXHIBIT "A"
z
%
J
TRACT ONE
Aq 187.1135 ACRES
Rx Ail 8,15o.(63 SQ FT -lit
y.
W 50 0'
TRACT TWO
36.1733 ACRES
F3
375,708 SQ Fr
c:
zv
pv_
5
4 -1
W4-
BOUNDARY MAP
OF
CHAMBERS COUNTY MUNICIPAL UTILITY
DISTRICT No. 3
CONTAINING
223.2869 ACRES
OUT OF THE
CHAMBERS COUNTY SCHOOL LAND LEAGUE. A-321
CHAMBERS COUNTY. TEXAS
FEBRUARY 2010
OJO.ESICARTER
EXHIBIT "A-1"
Description of Service Area (Annexation Property)
Fill
Chambers County
Municipal Utility District No. 3
36.1733 Acres
STATE OF TEXAS
COUNTY OF CHAMBERS §
Chambers County School Land League
Abstract No. 321
A METES & BOUNDS description of a certain 36,1733 acre tract of land situated in the Chambers County
school Land League, Abstract No. 321 in Chambers County, Texas, being all of a called 1.,9821 acre tract
of land conveyed by General Warranty Deed to Speer- Properties recorded in Volume 549, Page 169 of the
Official Public Records of Chambers County (OPRCC), all of a called 0,9903 acre tract of land conveyed by
General Warranty Deed to Speer Properties recorded in Volume 639, Page 488 OPRCC, al. of a called
0.5951 acre tract of land conveyed by General Warranty Deed to Speer Properties recorded in Volume
776, Page 388 OPRCC, and all of called 32.10 acre tract of land conveyed by General Warranty Deed to
Speer Properties recorded in Volume 549, Page 766 OPRCC; said 36.1733 acre tract being more
particularly described as follows with all bearings based on the Texas Coordinate System of 1983, South
Central Zane;
BEGINNING at a point -for -corner being the southwest corner said 32.10 acre tra.-t, being common with
the southeast corner of a called 3.577 acre tract of land conveyed by Vendor's Lien Deed to David F. Eaves
recorded in Volume 294, Page 518 OPRCC, and being in the north line of a called 92.3102 acre tract of
land conveyed by Special Warranty Deed with Vendor's Lien to Kilgore Business, LLC recorded in Volume
1663, Page 649 OPRCC;
THENCE, North 02'26'43" West, along the west line of said 32.10 acre tract, being common wltn the east
litre of said 3,577 acres, the east line of a called 1.648 acre tract conveyed by Warranty Deed v;itf Vendor's
Lien to Harold L. Duncan and Dane E. Duncan recorded in Volume 309, Page 833 OPRCC, the east line of
a called 1.667 acre tract conveyed by General Warranty Deed to Larry Joe Benton and Lisa Jones Benton
recorded in Volume 311, Page 487 OPRCC, the east line of a called 3.57 ar_rP tract conveyed by tweed to
P.C. Cezeaux ant: G.A. Martin recorded in Volume 16, Page 44 DRCC, and the east line of a called 3.567
arse tract conveyed by Co-rection teed to Ricky Fontenot recorded in Volume 1383, Page 22 OPRCC,
1184.15 feet to a point -for -corner being an interior southwest turner of the herein described tract, being
co-nivion the southeast corner of said 0.9903 acre tract, the northeast corner of said 3.567 acre tract, and
being in the west line of said 32.10 acre tract;
THENCE, South 87°32'17" West, along the south fine of said 0.9903 acre tract, being commor, with the
north line of said 3.567 acre tract, 558.42 feet to a point -for -corner being the southwest corner of said
0.9903 acre tract, and being in the occupied east right of way line of Needle Poirrt Road;
THENCE, along the west line of the hereir described tract being common with the occupied east right of
way line of Needle Point Road the following two (2) courses and distances:
1.. North 08'14'15" West, 36.86 feet to a point -far -comer;
2. North 11`48'00" West, 261.80 feet to a paint -for -corner, being the northwest corner of said 1.9821
acre tract, and being in the south line of said remainder of 21.43 acre tract;
THENCE, North 87°32'17" East, with the north line of the herein described tract being common with the
south line of the remainder of a called 154.072 acre tract conveyed by Special Warranty Deed to Americus
Page 1 of 2
---\00280\00280 0001 00 &wndar/ Survey - 186 A_re Baytown Tract\] Surveying Phase\CMIUD No. 3\Do,--vrrents\CCN4ur) No,
3 - Tract T%vo M&B.docx
Chambers County
Municipal Utility District No. 3
36.1733 Acres
Chambers County School Land League
Abstract No. 321
Holdings, LTD recorded in Document No. 2039-141206 OPRCC, 1554,66 feet to a point -for -corner, being
the northeast corner of said 32.10 acre tract, being con, -non with the northwest corner of a called 41,7490
acre tract conveyed by Special Warranty peed to Arnericus Holdings, LTD recorded in Document No. 2019•
.139029 0PRCC;
THENCE, South 02"28'49' East, along the east line of said 32.10 acre tract, being common with the west
line of said 41.7490 acre tract, 1.476.92 feet to a point -for -corner (Northing: 13,865,474.60, Fasting:
3,279,015,03) being the southeast corner of said 32.10 acre tract, being common with the southwest
corner of said 41.7490 acre tract, and being in the north line of said 92.3102 acre tract;
THENCE, South 87023'25" !Vest, along the north line of said 92.3102 acre tract, 9S0.40 feet to the POINT
OF BEGINNING, CONTAINING 36.1733 acres, or 1,575,708 square feet of land in Chambers County, Texas,
as shown on Drawing No. 14085 in the office of Jones! Career in Belfaire, Texas.
This document was prepared under 22 TAC 663.21, does rot reflect the results of an an the ground survey,
and is not to be used to convey or establish interests in real property except those rights and interests
implied or established by the creation or reconfiguration of the .polit4 al subdivision for which it was
prepared.
!ones j Carter = - -
6330 West Loop South, Suite 150 -` A I
Bellaire, Texas 77401
(713) 777 S337 OF
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ltr flfstilJrron Wb. 100,16100 Q- 1
3y/Through Steven Jares
red Professional Land Surveyor
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SWEN.JARES
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iescarter.com
Page 2 of 2
K:\00280\00250-0001.00 Boun;l.ry Survey --186 Acre B7ytown Tract\1 S-iveyirig Ph Se\CCMUD No. 3,Docurrieras\CCMjJD r}o.
3 - Tract -,A-o M&B.docx
jv fj
EXHIBIT "A-1"
3 V.
TRACT ONE
187.1135 ACRES
8.150,66S SQ Fr
v
0174*15' w
J$ 1.
TRACT TWO
36.1733 ACRES
2
ire
IS*
� ... ... ... .
BOUNDARY MAP
OF
CHAMBERS COUNTY MUNICIPAL UTILITY
DISTRICT No. 3
CONTA NINO
223.2968 ACRES
OUT OF The
CHAMBERS COUNTY SCHOOL LAND LEAGUE. A-321
CHAMBERS COUNTY. TEXAS
FEBRUARY 2020
10 . E 8 A . T . R
EXHIBIT "B"
District Rate Order
21
EXHIBIT "C"
City's Present Water Service Ordinance
22
ARTICLE III. -WATER SERVICE
Footnotes:
---(2) ---
Cross reference— Plumbing code, § 18-461 at seq.; water in mobile home parks, § 58-144.
State Law reference— Authority of city to operate waterworks and set rates, V.T.C.A., Local Government Code § 402.017.
Sec. 98-55. - Utility upgrade surcharge.
(a) A monthly utility upgrade surcharge of $15.00 shall be assessed and collected by the utility billing division for
each lot within the Bay Oaks Harbor Subdivision (Amended), Blocks 2 through 10 inclusive, which receives
utility services from the city. Such surcharge shall be expended by the city for repairs to the water and
wastewater systems within such subdivision in order to meet the state commission on environmental
quality's standards.
(b) A monthly utility upgrade surcharge of $200.00 shall be assessed and collected by the utility billing division
for the commercial recreational vehicle park located in the Bay Oaks Harbor Subdivision (Amended), Block 1,
Reserves A, B and C inclusive, which receives utility services from the city. Such surcharge shall be expended
by the city for repairs to the wastewater system within such subdivision in order to meet the state
commission on environmental quality's standards.
(Ord. No. 10,865, § 1, 3-27-08; Ord. No. 10,998, § 1, 10-23-08)
Sec. 98-56. - Deposits and refunds.
(a) Application for service. Whenever a consumer desires to establish service with the utility billing division, he
shall tender to such division, at least one day prior to the time he desires his premises to be connected with
the water services, the proper deposit.
(b) Amount of deposit.
(1) A residential consumer occupying a single-family dwelling house shall be required to place on deposit the
amount of $50.00 if he is the owner of the dwelling house; however, a residential consumer occupying a
single-family dwelling house shall be required to place on deposit the amount of $200.00 if he is not the
owner of the dwelling house.
(2) Commercial water deposits shall be determined by the utility billing supervisor. This deposit is to be
generally comparable to two months' water service of a commercial business similar to the applicant.
(3) Deposits for apartment houses, mobile parks or other multifamily dwelling projects shall be determined
by the utility billing supervisor, but shall not be less per unit than the deposit required of single-family
dwelling units.
(c) Increase of deposits. Deposits for commercial consumers, apartment houses, mobile parks or other
multifamily projects may be increased from time to time if it is determined by the utility billing supervisor
that additional deposits are necessary in order to ensure payment of charges for water service. The
additional deposit shall be tendered to the utility billing division within 30 days after notice of the increase in
the deposit. Section 98-61 shall apply if the additional deposit is not tendered within 30 days.
(d) Refunds. Deposits will be refunded upon termination of service, provided the consumer has fully satisfied all
charges due the city.
(e) Form of deposits.
(1) Deposits of less than $500.00 shall be cash deposits in the form of cash, check or money order.
(2) Deposits of $500.00 or more for commercial consumers, apartment houses, mobile home parks or other
multifamily dwelling projects shall be by:
a. Cash;
b. Irrevocable bank letter of credit, provided that the irrevocable bank letter of credit shall be:
1. Drawn on an FDIC -insured bank located within Harris County or Chambers County, and
2. For a period of not less than one year; or
c. An assignment of security, provided that any security pledged shall be:
1. Approved by the utility billing manager, and
2. Placed in an FDIC -insured bank located within Harris County or Chambers County; or
d. A bond, provided that the bond shall be:
1. Issued by a surety licensed to do business in the state,
2. In a form approved by the city attorney, and
3. For a term of not less than one year.
Deposits in any form allowed herein shall be maintained throughout the period during which the city
provides utility service. As such, any deposit that is to expire prior to the termination of utility service
shall be renewed prior to its expiration and proof of such renewal must be submitted to the city's utility
billing manager. The remedies for nonpayment of utility bills specified in section 98-61 shall apply if a
deposit is not renewed prior to its expiration.
(Code 1967, § 31-54; Ord. No. 943, § 1, 11-7-68; Ord. No. 1479, § 1, 9-27-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2738,
§ 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 4948, § 1, 3-24-88; Ord. No. 6005, § 1, 9-26-91; Ord. No. 8141, § 1, 11-25-
97; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 11,646, § 1, 5-26-11)
Sec. 98-57. - Tapping fees.
(a) The following fees shall be assessed and collected by the utility billing division for water taps inside the city
limits:
(1) Three -fourths -inch water tap .....$900.00
(2) One -inch water tap .....$1,000.00
(b) The following fees shall be assessed and collected by the utility billing division for water taps outside the city
limits:
(1) Three -fourths -inch water tap .....$1,100.00
(2) One -inch water tap .....$1,200.00
(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; Ord. No. 13,361 , § 1, 11-21-16)
Sec. 98-58. - Service charge for turn on.
If the city turns on a customer's water service at the request of the customer, the customer will be charged a service
charge of $30.00. If the customer requests their existing service to be transferred, the fee will be $25.00. If an additional
trip(s) is required to connect service, a $10.00 additional trip fee will be assessed per trip.
(Code 1967, § 31-55.1; Ord. No. 2738, § 2, 9-27-79; Ord. No. 6005, § 5, 9-26-91; Ord. No. 11,308, § 3, 2-25-10)
Sec. 98-59. - Rates.
(a) Rate schedules. The following are the rate schedules for water service:
Water Service —Rate Schedule
Individually Metered Single -Family Residential
Base Facility Charge:
Per dwelling unit
Customer Charge:
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit
Over 2,000-6,000 gallons per unit
Over 6,000-12,000 gallons per unit
Over 12,000-18,000 gallons per unit
Use over 18,000 gallons per unit
Inside City Outside City
$7.53 $15.05
$3.62 1 $7.24
$2.57
$5.60
$3.86
$8.39
$6.71
$10.09
$8.74
$11.36
$13.10
$17.04
Water Service —Rate Schedule
Multifamily Residential Master Meter Service
Inside City
Base Facility Charge:
Per dwelling unit $7.53
Customer Charge:
Per bill issued $3.62
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit $2.60
Over 2,000 gallons per unit $5.63
Unit = Constructed, regardless of whether occupied.
Base Facility Charge:
Per meter by meter size
t5/8 " x 3/411
3/4n
1"
1 1/z"
Water Service —Rate Schedule
Nonresidential Service
Inside City
$7.53
$11.31
$18.83
$37.67
Outside City
$15.05
$7.24
$3.91
$8.45
Outside City
$15.05
$22.59
$37.67
$75.32
$60.26
$120.51
$188.31
$376.60
$602.56
$866.20
Customer Charge:
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
All use
Water Service —Rate Schedule
High -Volume User Service
Base Facility Charge:
Per meter by meter size
5/8"X3/a"
$120.51
$241.02
$376.60
$753.21
$1,205.13
$1,732.37
Customer Charge:
:1 Per bill issued
Gallonage Charge (Per Thousand Gallons)_
All use
Water Service —Rate Schedule
Metered Irrigation Service
Inside City Outside Citv
Base Facility Charge:
.53 1 $15.05
1.31 , $22.59
8.83 1 $37.67
7.67 1 $75.32
0.26 1 $120.51
20.51 $241.02
88.31 $376.60
6"
8"
10"
Customer Charge.
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
5/8" X 3/a" Meter
Up to 6,000 gallons
Over 6,000-12,000 gallons
Over 12,000-18,000 gallons
Over 18,000 gallons
�3/4"Meter
Up to 9,000 gallons
Over 9,000-18,000 gallons
Over 18,000-27,000 gallons
Over 27,000 gallons
1" Meter
Up to 15,000 gallons
Over 15,000-30,000 gallons
Over 30,000-45,000 gallons
Over 45,000 gallons
$753.21
$1,205.13
$1,732.37
$5.60
$8.39
$6.71
$10.09
$8.74
$13.10
$11.36
$17.04
11/2" Meter
Up to 30,000 gallons
Over 30,000-60,000 gallons
Over 60,000-90,000 gallons
Over 90,000 gallons
2" Meter
Up to 48,000 gallons
Over 48,000-96,000 gallons
Over 96,000-144,000 gallons
Over 144,000 gallons
3" Meter
Up to 96,000 gallons
Over 96,000-192,000 gallons
Over 192,000-288,000 gallons
Over 288,000 gallons
4" Meter
Up to 150,000 gallons
Over 150,000-300,000 gallons
Over 300,000-450,000 gallons
Over 450,000 gallons
6" Meter
L.
$5.60
$8.39
$6.71
$10.09
$8.74
$13.10
$11.36
$17.04
$5.60
$6.71
$8.74
$11.36
$5.60
$6.71
$8.74
$11.36
L
$5.60
$6.71
$8.74
$11.36
$8.39
$10.09
$13.10
$17.04
$8.39
$10.09
$13.10
$17.04
$8.39
$10.09
$13.10
$17.04
Up to 300,000 gallons
Over 300,000-600,000 gallons
Over 600,000-900,000 gallons
Over 900,000 gallons
8" Meter
Up to 480,000 gallons
Over 480,000-960,000 gallons
Over 960,000-1,440,000 gallons
Over 1,440,000 gallons
L10" Meter
I_
Up to 690,000 gallons
Over 690,000-1,380,000 gallons
Over 1,380,000-2,070,000 gallon!
Over 2,070,000 gallons
(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.
(e) Combinations of residential dwelling units and commercial units. The applicable monthly water service
charge for a complex containing a combination of dwelling units and commercial units, with units not
individually metered for water, shall be shall be based on the meter size, and the amount of water consumed,
as determined by the meter reading, applied to the rate schedule in subsection (a) of this section for
nonresidential service.
(f) Service for property outside the city. A person outside the city limits and authorized by the director of utilities
to receive water service shall pay in accordance with subsection (a) of this section for the applicable service
or any other amount as may be established and approved in writing by the city council pursuant to a water
supply agreement.
(g) Volume users. A user of water that:
(1) Either:
a. Is located within the corporate limits who qualifies for tax abatement under the city's tax abatement
policy; or
b. Is located within an established industrial district and has in effect an industrial district agreement
with the city; and
(2) Uses a minimum of 400,000 gallons of water per day, shall be billed a customer charge, a base charge
based on meter size, and the amount of water consumed, as determined by the meter reading, applied to
the rate schedule in subsection (a) of this section for high -volume user service. The minimum usage shall
be determined by dividing the total consumption during the billing period by the number of days in the
billing period to determine the daily usage. Any user or customer who does not pay the amount due by
the due date indicated on his statement shall be charged a late charge, as provided in section 98-61.
(h) Recreational vehicle parks. The monthly water service charge for recreational vehicle parks shall be
determined in accordance with subsection (d)(1) of this section as if it were a commercial unit individually
metered.
(Code 1967, § 31-56; Ord. No. 943, § 3, 11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1351, §§ 1, 2, 1-25-73; Ord. No.
2328, § 1, 10-13-77; Ord. No. 2426, § 1, 3-9-78; Ord. No. 2738, § 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 3120, § 1,
4-9-81; Ord. No. 4548, § 1, 9-25-86; Ord. No. 5101, § 1, 9-22-88; Ord. No. 5645, § 1, 9-27-90; Ord. No. 6006, § 1, 9-26-91;
Ord. No. 6349, § 1, 9-24-92; Ord. No. 6427, § 1, 11-12-92; Ord. No. 6777, § 1, 9-23-93; Ord. No. 6836, § 1, 10-10-93; Ord.
No. 7097, § 1, 9-22-94; Ord. No. 7392, § 1, 9-14-95; Ord. No. 7622, § 1, 2-8-96; Ord. No. 8061, § 1, 9-11-97; Ord. No. 8151,
§ 9, 12-16-97; Ord. No. 8677, §§ 1, 2, 9-9-99; Ord. No. 9225, §§ 1, 2, 9-13-01; Ord. No. 9379, §§ 1, 2, 7-11-02; Ord. No.
9416, §§ 1, 2, 9-12-02; Ord. No. 9629, §§ 1, 2, 9-25-03; Ord. No. 9854, § 2, 8-26-04; Ord. No. 9869, §§ 1-3, 9-9-04; Ord.
No. 10,158, §§ 1, 2, 9-27-05; Ord. No. 10,403, §§ 1, 2, 9-14-06; Ord. No. 10,704, §§ 1, 2, 9-13-07; Ord. No. 10,962, §§ 1, 2, 9-
22-08; Ord. No. 11,308, § 4, 2-25-10; Ord. No. 11,494, § 1, 11-11-10; Ord. No. 11,717, § 1, 9-8-11; Ord. No. 12,331, § 1, 9-
12-13; Ord. No. 12,624, § 1, 8-28-14)
Sec. 98-60. - Flat -rate service prohibited, separate metering required.
(a) No connections for flat -rate water service shall be allowed by the city waterworks system.
(b) Every single-family dwelling house constructed in the city shall be separately metered for water service. This
subsection shall apply to the remodeling or altering of any existing house, garage or other building where an
additional family dwelling is to be added or where the cost of such remodeling or alteration exceeds 50
percent of the original cost of such house or building.
(c) Each multi -unit residential establishment and each commercial establishment shall be either:
(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 or in a dedicated public utility easement.
(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; Ord. No.
14,327 § 6, 2-13-20)
Sec. 98-61. - Billing; payment; late charge; discontinuance of service.
(a) Water meters shall be read monthly and each customer shall be billed monthly. Each water bill shall have a
precalculated and stated due date, which shall be approximately 14 days from the day the bill is to be mailed.
If a water account is not paid by the due date, the customer shall be charged a late charge in the amount of
ten percent of the amount of the water charge, which shall be shown as the gross amount on the bill. If the
gross amount is not paid within 12 days after the indicated due and payable date, the city reserves the right
to terminate water service as provided in subsection 98-62(i) and shall not restore service until the charges
are paid, including reconnect charges.
(b) The provisions of subsection (a) of this section pertaining to a late charge of ten percent for the late payment
of water bills shall not apply to political subdivisions organized under state law or to official public agencies
or either the federal or state government.
(Code 1967, § 31-58; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1081, § 1, 3-25-71; Ord. No. 2328, § 1, 10-13-77; Ord. No. 4459,
§ 1, 5-22-86)
Sec. 98-61.5. - Vacant property.
(a) If a customer desires to have water service temporarily turned on for a period of less than 30 days at a
vacant property, a $50.00 temporary connection charge will be assessed prior to any water usage at the
vacant property.
(b) If there is unauthorized use of water on property that is vacant or closed for non-payment, an unauthorized
use fee of $200.00 shall be assessed and collected prior to the water being turned on again at the property.
( Ord. No. 14,456 . § 1, 8-13-20)
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 and locked for nonpayment of charges for water services and it is
turned on again by anyone other than authorized personnel a $50.00 broken lock fee will be assessed. If it
becomes necessary to pull the meter, an additional $150.00 pull -meter fee will be added to the account. If, 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 contacted and a
$250.00 pull -straight-line fee assessed. Upon a reapplication for water service, all applicable fees and
unauthorized consumption must be paid.
(c) If the water meter has been turned off for nonpayment of charges for water or sanitary sewer services and
the customer has complied with the requirements of the city and is entitled to have the water turned on
again, the following reconnection charges will be made, as applicable:
(1) If the service is to be reconnected at the customer's request between the hours of 8:00 a.m. and 5:00
p.m. of any weekday from Monday through Friday, except holidays authorized by the city council for city
employees, there is no additional charge; or
(2) If the customer requests that service be reconnected at any other time than that stated in subsection (c)
(1) of this section, the charge will be $50.00.
(d) If any person gives the city a check for the payment of water services that is not honored by the drawee bank
for any reason or an automatic bank withdrawal is returned unpaid, the city reserves the right to cut off and
discontinue water service until all charges due have been paid, including, but not limited to, the processing
fee established in section 2-619 of this Code.
(e) If any person damages or destroys any city property used for measuring or distributing water, the utility
billing manager shall collect from such person a sum equal to such destroyed or damaged property, but not
less than $10.00. A $250.00 service charge will also be assessed to make the needed repairs.
(f) Customers may request their meters be reread once a year for a fee of $10.00. Subsequent requests will be
assessed a $25.00 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.
(i) Nonemergency termination.
(1) Generally. Whenever the city is authorized to terminate a customer's water services against that
customer's consent and under this section or whenever the city otherwise terminates water services to a
customer in a nonemergency situation other than by the customer's request, the city shall first provide
notice in the form and manner described in this subsection to the customer and shall afford the
customer an opportunity for a hearing in the form and manner described in this subsection before the
termination of the services. If, after the city has complied with the notice requirements as described in
this subsection, the customer does not request a hearing for review of the termination within the
specified time, the city may terminate water services to the customer on the day and at the time specified
in the notice to the customer or within five calendar days thereafter. Any time elapsing after the declared
termination date, the elapsing of which is due to the pendency of a hearing or the extension of time
granted pursuant to a hearing, shall not be considered when calculating the five days in which the city
may terminate water after a declared termination date.
(2) Notice. Notice must be sent to a water customer at least eight days prior to the proposed termination
date of the services to that customer if notice is sent by mail, or at least five days prior to termination if
notice is delivered by the utility billing division. The notice may be incorporated into the customer's
monthly bill, sent by certified letter, or hand delivered to the customer by a utility billing division
employee or other person designated by the city to deliver such notices. The notice must be written and
clearly communicate the following information:
a. The name of the customer whose service is proposed to be terminated;
b. The address where service is proposed to be terminated;
c. The reason for the proposed termination, including the amount of delinquency, if nonpayment of
charges is the reason for termination;
d. The day and time on which the water service will be terminated, unless conditions bringing about the
termination are sooner remedied;
e. The customer has the right to appear and be heard at a hearing to contest the proposed termination
prior to the date of termination;
f. The means by which the customer may arrange for such a hearing; and
g. The date by which the customer must request and set the hearing in order to receive it, which
deadline may be no earlier than one day prior to the termination date, nor may that deadline ever be
sooner than five days from the date of sending the notice, the five days not including weekdays on
which city offices are closed or holidays.
(3) Affidavit of failure to receive notice. After the deadline for requesting a hearing, as described in
subsection (i)(2)g of this section, has passed, a customer may still request a hearing to review the decision
to terminate the customer's water service within ten days of the deadline upon presentation to the city
manager of an affidavit declaring that the customer, through no fault of that customer, did not receive
notice of termination in time to act upon the notice. When a hearing pursuant to this subsection is
requested, the city manager shall as soon as practicable make a determination of whether the appeal
appears to be meritorious, and if the city manager finds it is meritorious the city manager shall order the
continuation or restoration of services pending the appeal. If the hearing officer finds in favor of the
customer, the hearing officer may order restoration of service.
(4) Notice to tenants. If the customer to whom water service is proposed to be terminated is a landlord who
supplies water services to tenant water users, the city shall attempt to give notice to the tenant water
users pursuant to subsection (i)(2) of this section.
(5) Hearing. If any customer requests a hearing to review the decision to terminate that customer's water
services, the hearing shall be presided over by the city manager or any fair and neutral person he may
appoint, which person must be of managerial employment and not involved in the original decision to
terminate services, in this context known as the hearing officer. The hearing shall be held no sooner than
the next business day or later than 15 business days after being requested by the customer. The hearing
officer may in his discretion delay or advance the hearing time upon showing of good cause by the
customer. At the hearing the customer shall be given the opportunity to be heard in person to present
the customer's case, to present testimony from other persons and to admit documents. The customer
may be represented by counsel, though the city shall not provide counsel to the customer. The customer
shall be given the opportunity to confront and cross examine any witnesses appearing against him at the
hearing. The customer may request that a representative of the utility billing division be present at the
hearing and be subject to questioning. However, the rules of evidence or procedure for civil or criminal
trials need not be enforced. The city's reasons for terminating the customer's water service shall be
stated at the hearing. Upon reaching a final decision, the hearing officer shall state his reasons for
reaching that decision and shall state the evidence on which the hearing officer relied in reaching those
conclusions. If the hearing officer finds in favor of the customer, the customer's water service shall
continue. If the hearing officer finds against the customer, the customer's water service shall be
terminated. The hearing officer shall have the power to grant extensions, modify billings and fashion
other reliefs as would be equitable.
(j) When the water meter has been turned off for nonpayment of charges for water service, sanitary sewer
service, garbage collection service or if the water meter has been turned off for payment of utility services
with a check that is not honored by the drawee bank for any reason, a cutoff fee will be charged in the
amount of $50.00. Nonresidential customers whose doors are tagged prior to disconnection will be assessed
a $100.00 tag door fee. When it is necessary to tag tenants' 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; Ord. No. 14,456 . § 2, 8-13-20)
Sec. 98-63. - Metering water bypassing sewer system.
(a) Any commercial, industrial, multiunit, public utility or public school owning or having control of property on
which there is located one or more facilities requiring water and such water provided to any one or more of
such facilities is not discharged into the city sanitary sewer system may, at the owner's own expense, have
installed by the city a water meter of a type and design and at a location approved by the director of utilities.
(b) Any facility that does not discharge into the city's sewer system when the water is furnished by the city's
water system shall be metered by a city water meter connected to a separate service line from the city water
main and located in the utility easement, upon the making of application therefor by the owner of such
property and making the required deposits and paying the cost of meter installation and tap fees provided
for by this article. Such meter shall be read by the city's meter readers and will be subject to the established
water rates and charges of the city the same as any other metered water connection to a city main.
(c) No person shall be allowed to disconnect a water meter that meters a facility not discharging into the city's
sanitary sewer system as stated in this section and then reconnect such meter to the city's water system
within a 12-month period.
(d) Any person representing to the city that the facility for which a meter is installed, under this section, does not
discharge waste into the city's sanitary sewer system when in fact it does or any person having facilities for
which such a meter is installed who subsequently connects such facility to the city's sanitary sewer system
without notifying the director of utilities shall be punishable as provided in section 1-14.
(Code 1967, § 31-61; Ord. No. 3317, § 1, 2-11-82)
Sec. 98-64. - Study to determine charge when portion of water bypasses sewer.
(a) This section shall apply to those water users stated in section 98-63 who have facilities connected to the city
sanitary sewer system and who make application to the director of utilities under this section.
(b) Any water user owning or having control of property on which there is located one or more facilities requiring
water and such water provided to any such facility is not discharged into the city sanitary sewer system may
make application to the director of utilities requesting that a study of the applicant's property and facilities be
made for the purpose stated in this section and paying the fee required in this section.
(c) Requests for service under this section shall be made to the director of utilities. The applicant shall furnish all
the information and other matters requested therein. The fee for making any study under this section shall
be $35.00. No fee shall be required for studies initiated by the director of utilities subsequent to the first
application. The fee is to reimburse the city for the expense of making the study. Each applicant shall agree,
as a condition precedent to the director of utilities conducting the study and tests provided for in this section,
including those initiated by the director of utilities, to indemnify and hold harmless the city from any and all
such liability for any act or omission by the city, its agents and employees committed while conducting the
studies and tests, causing or resulting in damages to the property or person of the applicant, his agents,
employees and invitees.
(d) Upon receipt of a request and the fee required in this section, the director of utilities will, as soon as possible,
make a study of the applicant's property and facilities. When, in the opinion of the director of utilities, based
upon a study of the property and facilities of the applicant, it is impractical or unfeasible for the applicant to
install one or more meters to measure the amount of water passing through the water meter serving such
property and not being discharged into the city sanitary sewers, the director of utilities is authorized to deny
such request.
(e) The director of utilities is authorized, at his discretion or on written request from an applicant, to make such
additional studies from time to time of any such property and facilities to check the current accuracy of the
filed study on any such property, and a new study based upon the latest available data shall be filed with the
director of utilities to replace the prior one. No change in the basis of computing the sewer service charge for
any property will be made until the first billing date after the filing by the director of utilities of the first or any
subsequent report. Requests by an applicant for a restudy under this subsection will not be accepted or
acted on more often than once in every 12-month period (annually) subsequent to the filing of the first report
on the applicant's property.
(f) If it is necessary that certain testing instruments be installed or that existing equipment or facilities located
on the applicant's property be altered, adjusted, disconnected or temporarily moved in order to facilitate the
making of an engineering study or test under this section, all of such shall be done by and at the expense of
the applicant.
(Code 1967, § 31-62; Ord. No. 3317, § 1, 2-11-82)
Sec. 98-65. - Liens.
(a) Water. Liens for unpaid water charges shall be filed according to the following:
(1) After the city has terminated a customer's water pursuant to subsection 98-62(i) or after the city
terminates water service at the customer's request, the supervisor of the utility billing division shall file a
lien on the property served by the terminated water service and in the amount the customer whose
service was terminated owed to the city for water service at the time of the termination of services.
(2) If a property receives water services illegally, without having an account with the city utility billing division,
the supervisor of the utility billing division shall file a lien against that property in the amount of the
proper charge for the water actually used or, if there is no way of determining the amount of water used,
in the amount of the minimum monthly water charge that would have been charged to that property had
a legitimate account been opened, multiplied by the number of months during which that property
illegally received such water services.
(b) Garbage collection. Liens for unpaid garbage collection service shall be filed as follows:
(1) After the city has terminated a customer's water service pursuant to subsection 98-59(i) or after the city
terminates water service or garbage service at the customer's request or after a customer without water
service becomes more than $50.00 delinquent for garbage service alone, the supervisor of the utility
billing division shall file a lien on the property serviced by garbage collection service and in the amount
the customer whose service was terminated owed to the city for garbage collection service at the time of
the termination of services.
(2) If a property receives garbage collection services illegally, without having an account with the city utility
billing division, the supervisor of the utility billing division shall file a lien against that property in the
amount of the minimum monthly garbage collection charge that would have been charged to that
property had a legitimate account been opened, multiplied by the number of months during which that
property illegally received such garbage collection services.
(c) Sewer service. Liens for unpaid sewer service shall be filed as follows:
(1) After the city has terminated a customer's water service pursuant to subsection 98-62(i) or after the city
terminates water service or sewer service at the customer's request or after a customer without water
service becomes more than $50.00 delinquent in payment for sewer charges alone to the city, the
supervisor of the utility billing division shall file a lien on the property served by the water service and in
the amount the customer whose service was terminated owed to the city for sewer service at the time of
the termination of services or the accumulation of the delinquency in payment for sewer services.
(2) If a property receives sewer services illegally, without having an account with the city utility billing
division, the supervisor of the utility billing division shall file a lien against that property in the amount of
the minimum monthly sewer charge that would be have been charged to that property had a legitimate
account been opened, multiplied by the number of months during which that property illegally received
such sewer services.
(d) Exemptions. No lien for water charges, garbage collection charges, or sewer charges shall be placed on a
property if:
(1) A customer owes less than $50.00 for the aggregate sum of water charges, garbage collection charges
and sewer charges;
(2) The customer is not delinquent in payment for water charges, garbage collection charges, or sewer
charges;
(3) The city knows the property to be a homestead as defined by the state constitution; or
(4) The city knows the property to be a single-family dwelling house and the delinquent water charges,
garbage collection charges, or sewer charges to be for services provided to a residential consumer who is
not the owner of the property.
(e) Filing procedures. Any lien authorized by this section shall be filed with the county clerk or with the county clerk
county in which the property to which the lien will be attached is located. The city shall then have a privileged HE
many lots or pieces of property as the terminated services previously served and are described on the lien instr
by metes and bounds or by city lot and block description or by any other adequate description. The lien shall se
the charges made by the city for the services rendered to that property. Such a lien shall be filed pursuant to thl
authority granted in Vernon's Ann. Civ. St. art. 1175, § 11; V.T.C.A., Local Government Code §§ 51.072 and 402.01
state constitution article XI, section 5. The lien shall bear interest at a rate of ten percent per annum. The super\
the utility billing division shall add to any lien filed pursuant to this section that amount of the filing fee charged
county clerk for filing that lien. The lien shall be effective against that property if the account holder or user of s-
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
designed to secure, suit may be instituted and recovery in the foreclosure of that lien may be had in the name o
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 or account holder,
the property owner or account holder may appeal the decision to impose the lien on that property to the city
manager or any fair and impartial person whom the city manager may designate. The city manager shall
authorize the release of the lien if the property owner or account holder shows that no bill for the services to
this property encumbered by the lien is owing or if the property owner shows that the encumbered property
is and at all times, from the hour of filing of the lien until the time of the appeal, has been a homestead as
defined by the state constitution. The city manager may modify or release the lien to reflect the true amount
of delinquency in payment for services to the property if the owner or account holder demonstrates that a
lesser bill is owing than the lien alleged or if the supervisor of the utility billing division cannot show that all
the lien alleged is owing. The person last listed on the tax records of the county in which the property is
located as being the owner of any given piece of property shall be presumed to be the owner for purposes of
this subsection, and the address listed for the owner on the tax records shall be presumed to be the address
of the owner.
(g) Reconnection of services. No water, garbage or sewer services shall be provided to property encumbered by
a lien filed pursuant to this section, except as otherwise required by V.T.C.A., Local Government Code §
552.0025. Notwithstanding this prohibition, the supervisor of the utility billing division shall be authorized to
reconnect water, garbage and wastewater services if the customer agrees in writing to pay the accrued water
and wastewater charges for such property in accordance with a payment schedule acceptable to the
supervisor of the utility billing division and the customer also agrees to pay all current and future water and
wastewater charges as they come due.
(h) Re/ease. Whenever a person pays all principal, interest and the filing fee of alien validly filed pursuant to this
section, the supervisor of the utility billing division shall execute a release of that lien and surrender it to the
paying party. The release shall be prepared and approved as to form by the city attorney and shall be duly
notarized. The city shall not be responsible for filing that release.
(i) Effect of section. This section is cumulative of any other remedies, methods of collection or security available
to the city under the Charter and city ordinances or under state law.
(Code 1967, § 31-63; Ord. No. 6005, § 4, 9-26-91; Ord. No. 11,624, § 1, 4-14-11; Ord. No. 11,646, §§ 2-4, 5-26-11; Ord.
No. 11,893, § 1, 3-8-12)
Secs. 98-66-98-89. - Reserved.
EXHIBIT "D"
Amendatory Contract between the City of Houston and the San Jacinto River
Authority
23
✓•lllrs d� ' �
Exhibit T"
AMENDATORY CONTRACT BETWEEN
SAN JACINTO RIVER AUTHORITY
AND
THE CITY OF HOUSTON. TEXAS
THE STAT11 OF TEXAS
COUNTY OF HARRIS
THIS CONTRACT executed as of tha,7A& day of
1976, 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 17, 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 governmental entities
for distribution through the municipal water systems of such local
governmental entities, such water to be used for municipal puraoses
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
an the west. Archer Road on the south, and Cedar Bayou on the east,
without written consent of sinA.
2.
The City shall insure that all instruments relating
co the sale of water cc BAWA include appropriate covenants on
the part of BAWA to observe the limitations and restrictions
imposed on the City by the contract dated March 27, 1944. as
modified by this contract. and to include covenants in all
sales and contracts for the sale of water by BAWA insuring
compliance with such rescrieeions 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 sate by the City subject to this contract. The City steal'
be responsible for the enforcement of such covenants, but the;
shall also be enforceable by SJRA directly.
9.
In the event any water delivered by the City to BAWA
under this contract is used in violation of such restrictions
or limitations, SJRA shall be entitled to recover from the
City as liquidated damages an amount equal to seventy-five
percent (75%) of the consideration or revenue received by the
City for the estimated amount distributed. sold or used in
violation of such restrictions or limitations, plus all liti-
gation expenses and reasonable attorney's fees. The recovery
of such liquidated damages shall be in addition cc all ocher
remedies available to SJRA.
4.
In consideration of the foregoing limited waiver by
SJRA of the restrictions and limitations imposed by the
contract dated March 27, 1944, the City shall pay to the SJRA
an amount equal to $50 per day during such period that the
City receives payment from BAWA for water sold under this
waiver, but such payments to SJRA shall not extend beyond a
period of 20 years. Payment shall be made on a quarterly bas:
on or before the 10th day of the month following each calendar
quarter.
-2-
S.
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 assigr.
The waiver provided herein shall be applicable only to sales by
the City to BAWA and shall not be applicable to any sale by
the City to any other entity, including any successors or assign
entity to BAWA, without the written consent of SJRA.
6.
Except as amended by this contract and the contracts
between the parties dated July 19. 1955, May 9. 1968 and the
contract dated September 1. 1971, the provisions of the March
27, 1944, contract shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto, acting under the
authority of their respective governing bodies have caused this
contract to be executed on this 2: >-_ day of . 19;
in duplicate originals. each of which shall constitute an origin&
SAN JACINTO RIVER AUTHORITY
ATTEST:
By 4(&�:Oftz 07- /
4+
By 1e44.se 44.14.&, Vice-FrVOMnt
ecre+tasy
CITY OF HOUSTON
ATTEST: By
.a r
Sy
y ecretary
COUNTERSIGNED;
�i
cy ontro er
PROVED A
GL
ty ttorney
city n