Ordinance No. 14,652ORDINANCE NO. 14,652
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 DEVELOPMENT
AGREEMENT WITH FORESTAR GROUP INC.; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the City Manager and City Clerk of the City of Baytown to execute and attest to a
Development Agreement with Forestar Group Inc. A copy of said agreement is attached hereto,
marked Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the
City of Baytown, this the 28t" day of January, 2021
BRANDON CAPETILLO, Mayor
ATTEST:
Alb-� �-
LETICIA BRYSCHACIv Clerk
APPROVED AS TO FORM:
KA L. HORNER, City Attorney
R: Karen Homer DocumentsTiles City Council Ordinances\202IVanuary 28\DeveloperAgreementwithForestargroupinc.doc
EXHIBIT "A"
DEVELOPMENT AGREEMENT
STATE OF TEXAS
COUNTY OF HARRIS
This DEVELOPMENT AGREEMENT (this "Agreement"), is made and entered into as of
, 2021 ("Effective Date"), by and between the CITY OF BAYTOWN, TEXAS, a
municipal corporation and home -rule city or the State of Texas (the "City"); and FORESTAR
(USA) REAL ESTATE GROUP INC., a Delaware corporation (the "Developer"), on behalf of
itself and proposed Harris County Municipal Utility District No. 555 (the "District").
RECITALS
WHEREAS, Developer owns or will own (i) the 119.3 acres of land described in the
attached Exhibit "A" (the "District Property"), all of which is located within the boundaries of
the District and in the extraterritorial jurisdiction ("ETJ") of the City; and
WHEREAS, the Developer anticipates that the District will be created for the purpose of
providing water, sewer, drainage, detention, and road facilities to the District Property; and
WHEREAS, Developer would like to develop the Property outside the corporate limits of
the City so that the Property is not subject to the ad valorem taxing jurisdiction of the City; and
WHEREAS, Developer is agreeable to the District entering into the hereinafter defined
Strategic Partnership Agreement with the City so that the provisions contained in the Strategic
Partnership Agreement apply to the Property; and
WHEREAS, the City desires to support the development or the Property outside the
corporate limits of the City upon the terms and conditions of this Agreement; and
WHEREAS, the City and the Developer have determined that they are authorized by the
Constitution and laws of the State of Texas to enter into this Agreement, including particularly
Texas Local Government Code, Section 212.172 et. seq., and have further determined that the
terms, provisions, and conditions hereof are mutually advantageous to each.
GTI II 04-3TO ►�1�1
For and in consideration of these premises and of the mutual promises, obligations,
covenants, and benefits herein contained, the City and the Developer (each individually a "Party"
and collectively, the "Parties") contract and agree as follows:
Development Agreement, Page 1
ARTICLE 1
WAIVER OF FULL PURPOSE ANNEXATION
1.01 Strategic Partnership Agreement. In the event the Board of Directors of the District
approves the Strategic Partnership Agreement in substantially the form and content attached hereto
as Exhibit "B" (the "Strategic Partnership Agreement") and delivers a duly authorized and a fully
executed copy thereof to the City prior to June 30, 2022, the City agrees, subject to the terms
thereof, not to annex the Property into the corporate limits of the City for full purposes until the
expiration of the Strategic Partnership Agreement, including any extensions thereof.
1.02 No Strategic Partnership Agreement. In the event the Board of Directors of the
District fails to deliver the Strategic Partnership Agreement to the City, duly approved and
executed by the District, by June 30, 2022, this Agreement may be terminated at the sole discretion
of the City at any time on or after June 30, 2022.
ARTICLE 2
TERM AND DEFAULT
2.01 Term. This Agreement shall be in force and effect from the Effective Date for a
term of thirty (30) years. 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.
2.02 Default and Remedies. If a Party is in default of a tern of this Agreement, the non -
defaulting Party shall be entitled solely to seek injunctive relief, mandamus or specific
perfonnance. Specifically, no default under this Agreement shall entitle the aggrieved Party to
terminate this Agreement, entitle the aggrieved Party to seek or recover monetary damages of any
kind, or limit the term of this Agreement.
2.03 Limited Waiver of Immunity. The City hereby waives governmental immunity
from suit solely for the purposes of adjudicating claims for breach of this Agreement. The City's
limited waiver of immunity does not stand as a basis for any claim of damage against the City. All
other immunities from suit, liability and damages are specifically retained by the City.
ARTICLE 3
DEVELOPMENT REGULATIONS AND OBLIGATIONS
3.01 Plan of Development and Amendments. The Developer desires to develop the
Property in accordance with the Plan of Development which is attached hereto as Exhibit "C"
and incorporated herein for all intents and purposes (the "Plan of Development"). The Plan of
Development is the preliminary plan for the development of the Property and, with the prior written
approval of the City, may be revised and refined by the Developer as the Developer continues its
investigation of and planning for the Property and prepares a feasible and detailed plan for
development of the Property. In no case shall the Plan of Development (i) be revised or refined to
contradict any of the requirements of this Agreement, or (ii) be construed to limit or otherwise
affect any right or obligation of the Developer unless approved in writing by both the City and
Development Agreement, Page 2
Developer; provided that the number of lots comply with all other provisions of this Agreement
and the applicable provisions of the Code of Ordinances of the City (the "Code") and other
applicable law."). The Developer will work collaboratively with the City to implement the
requirements set forth in this Agreement and shall, in all instances, develop the Property to
standards that meet or exceed all legal requirements generally applicable to development within
the City and Harris County, Texas. All development plans will be submitted to the City and Harris
County for approval to comply with not only all current, applicable laws, rules and regulations but
also with the terms of this Agreement. The Developer shall develop the Property in strict
accordance with approved Plan of Development.
3.02 Density, Land Use and Development Standards. Unless otherwise modified by this
Agreement, the Developer shall develop the Property in conformance with the following:
1. Chapter 18 "Building and Building Regulations,"
XIV "Landscaping";
2. Chapter 42 "Health and Sanitation"
3. Chapter 109 "Engineering Standards";
4. Chapter 112 "Off -Street Parking;
5. Chapter 114 "Sewer and Water Line Extensions,"
6. Chapter 118 "Signs," and
7. Unified Land Development Code.
Article XII "Fencing" and Article
Article IV "Impact Fees";
The Developer and the City acknowledge and agree that certain standards in the Unified Land
Development Code are specifically amended for the Property as set forth in Exhibit "D", which
is attached hereto and incorporated herein for all intents and purposes.
3.03 Platting and Subdivision Design Standards. The Developer shall subdivide the
Property and comply with the minimum design standards in conformance with Chapter 126 and
Chapter 109 of the Code, as amended in Exhibit "E", which is attached hereto and incorporated
herein for all intents and purposes.
3.04 Development Obligations. The Developer shall comply with the obligations
specified in Exhibit "F", which is attached hereto and incorporated herein for all intents and
purposes.
ARTICLE 4
MISCELLANEOUS PROVISIONS
4.01 Address and Notice. Any notice to be given under this Agreement shall be given
in writing, addressed to the Party to be notified as set forth below, and may be given either by
depositing the notice in the United States mail postage prepaid, registered or certified mail, with
return receipt requested; by messenger delivery; or by telecopy. Notice deposited by mail shall be
effective three days after posting. Notice given in any other manner shall be effective upon receipt
by the Party to be notified. For purposes of notice, the addresses of the Parties shall be as follows:
Development Agreement, Page 3
If to the City, to:
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, Texas 77522
Telecopy (281) 420-6586
With a copy to:
City of Baytown
Attn: City Attorney
P.O. Box 424
Baytown, Texas 77522
Telecopy (281) 420-6586
If to Developer, to:
FORESTAR (USA) REAL ESTATE GROUP INC.
Attn: Ms. Justine Collier Klinke
3355 W Alabama Street, Suite 210
Houston, Texas 77098
With a copy to:
Harris County Municipal Utility District No. 555
Attn: David Oliver
3200 Southwest Freeway, Suite 2600
Houston, Texas 77027
Telecopy (713) 860-6665
The Parties shall have the right from time to time to change their respective addresses by giving at
least fifteen (15) days' written notice of such change to the other Parties.
4.02 Parties in Interest. Except as specifically provided for in Section 4.08, including
those regulations contained in Article 3 hereof, 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 parties.
4.03 Modification. This Agreement may be amended only upon written amendment
executed by the City and Developer.
4.04 Captions. The captions of each section of this Agreement are inserted solely for
convenience and shall never be given effect in construing the duties, obligations or liabilities of
the Parties hereto or any provisions hereof, or in ascertaining the intent of either Party, with respect
to the provisions hereof.
Development Agreement, Page 4
4.05 Interpretations. This Agreement and the terms and provisions hereof shall be
liberally construed to effectuate the purposes set forth herein and to sustain the validity of this
Agreement.
4.06 Severability. If any provision of this Agreement or the application thereof to any
person or circumstances is ever judicially declared invalid, such provision shall be deemed severed
from this Agreement and the remaining portions of this Agreement shall remain in effect.
4.07 Further Documents. Each Party shall, upon request of the other Party, execute and
deliver such further documents and perform such further acts as may reasonably be requested to
effectuate the terms of this Agreement and achieve the intent of the Parties.
4.08 Recordation. This Agreement, and all amendments thereto, shall run with the land
and be recorded in the real property records of Harris County and be binding upon the Property,
Parties, and all successor owners. Notwithstanding the foregoing, however, this Agreement shall
not be binding upon, and shall not constitute any encumbrance to title as to, any end -buyer of a
fully developed lot within the Property which has been improved with a residential dwelling unit
except for land use and development regulations, City Ordinances that apply to specific lots or
residents of the City, and annexation of the property by the City. For purposes of this Agreement:
(a) the term "end -buyer" means an owner of any fully developed lot within the Property, but said
end -buyer will not be considered the Developer, and (b) the terms "fully developed lot" means any
lot, regardless of the use, for which a certificate of occupancy has been or could have been issued
for a structure thereon.
(EXECUTION PAGES FOLLOW)
Development Agreement, Page 5
IN WITNESS WHEREOF, the Parties herein have executed this Agreement in multiple
copies, each of equal dignity, as of the date first given above.
CITY OF BAYTOWN, TEXAS
M.
ATTEST
LETICIA BRYSCH, City Clerk
(SEAL)
THE STATE OF TEXAS §
COUNTY OF HARRIS §
RICHARD L. DAVIS, City Manager
This instrument was acknowledged before me on this day of , 2021, by
RICHARD L. DAVIS, the City Manager of City of Baytown, Texas, on behalf of said city.
Notary Public in and for the
State ofTEXAS
(SEAL)
Development Agreement, Page 6
FORESTAR (USA) REAL ESTATE
GROUP INC.
a Delaware corporation
By:
(Signature)
(Printed Name)
(Title)
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This instrument was acknowledged before me on this this day of ,
2021, by President of FORESTAR (USA) REAL ESTATE
GROUP INC., a Delaware corporation, on behalf of said entity.
(SEAL)
Development Agreement, Page 7
Notary Public in and for
the State of TEXAS
EXHIBIT "A"
Description of the District Property
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EXHIBIT "B"
Strategic Partnership Agreement
EXHIBIT"B"
STRATEGIC PARTNERSHIP AGREEMENT
STATE OF TEXAS §
COUNTY OF HARRIS §
This STRATEGIC PARTNERSHIP AGREEMENT (this "Agreement") is made and
entered into, effective as of , by and between the CITY OF BAYTOWN,
TEXAS, a municipal corporation and home -rule city of the State of Texas (the "City"), and
HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO.555, a body politic and corporate
and a governmental agency of the State of Texas, created by the 86`h 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").
RECITALS
1. The District was created with the consent of the City for the purpose of providing
water, sewer, drainage, recreational and road facilities to the land within its boundaries. The
District is located within the extraterritorial jurisdiction ("ETJ") of the City, but is not within its
corporate limits. The District contains approximately 1 l 8.84 acres, as more particularly described
in Exhibit "A", which is attached hereto and incorporated herein for all intents and purposes (the
"Property").
2 The City has historically annexed land into its corporate limits before development
of such land has proceeded. However, the City determined that the District can best proceed
pursuant to a development agreement with Forestar (USA) Real Estate Group Inc., a Delaware
corporation (the "Developer") and a strategic partnership agreement with the District.
3. To provide certainty and order with regard to the conduct of the development within
the District (the "Development") and the roles of the City, the District and the Developer, the City
and the Developer entered into that certain Development Agreement, dated , 2020
(the "Development Agreement") to provide for certain terms in connection with the Development.
In addition, the provisions of Texas Local Government Code, §43.0751 (Vernon Supp. 2000) (the
"Act") state that the City and the District may enter into a strategic partnership agreement that
provides for the terms and conditions under which services will be provided and funded by the
City and the District.
4. The District would like to contract with the City to obtain, among other things,
water supply and waste disposal services from the City, and the District will, once confirmed, enter
into a utility agreement in substantially the form and content as that which is attached hereto and
incorporated herein for all intents and purposes as Exhibit "B" with the City (the "Utility
Agreement").
5. The City and the District, after the provision of required notices, held public
hearings in compliance with the Act. Based upon public input received at such hearings, the City
Strategic Partnership Agreement, Page 1
and the District wish to enter into a strategic partnership agreement to provide the terms and
conditions under which services will be provided by the City and the District and under which the
District will continue to exist after the land in the District is annexed for limited purposes.
NOW, THEREFORE, for and in consideration of the mutual agreements, covenants, and
conditions contained herein, and other good and valuable consideration, the City and the District
agree as follows:
Article 1
DEFINITIONS
1.01 Definitions. The terms "Act," "City," "Developer," "Development," "Development
Agreement," "District," "ETJ," and "Property" shall have the meanings provided for them in the
Recitals, above. Except as may be otherwise defined, or the context clearly requires otherwise,
capitalized terms and phrases used in this Agreement shall have the meanings as follows:
Applicable Ordinances shall include those ordinances currently applicable to all or
part of the area within the boundaries of the District as well as the following chapters,
articles and/or sections of the Code of Ordinances, Baytown, Texas, along with all
amendments thereto:
• Chapter 18 "Building and Building Regulations," Article XII "Fencing" and
Article XIV "Landscaping";
• Chapter 42 "Health and Sanitation"';
• Chapter 109 "Engineering and Construction Standards";
• Chapter 112 "Off -Street Parking";
• Chapter 114 "Sewer and Water Line Extensions," Article IV "Impact Fees";
• Chapter 118 "Signs," and
• Unified Land Development Code.
City Council means the City Council of the City or any successor governing body.
City Manager means the City Manager of the City or his or her designee.
Consent Resolution means the resolution(s), including all attachments and exhibits
passed by the City Council consenting to the creation of and inclusion of land into the
District.
Effective Date and similar references means the date first written above, which shall
be the date City Manager executes this Agreement, after having been authorized to do so
by the City Council.
Party or Parties means a party or the parties to this Agreement, being the City and
the District.
Strategic Partnership Agreement, Page 2
Sales and Use Tax means the sales and use tax authorized to be imposed within the
corporate limits of the City lying within Harris County, Texas, including, but not limited
to, the taxes authorized to be imposed by Chapters 321, 323, 327, and 351 of the Texas
Tax Code, Chapters 344, 363, and 377 of the Texas Local Government Code, and those
imposed by any other district or entity which may be subsequently created by the City
which imposes a sales and use tax within the corporate limits of the City lying within Harris
County, Texas.
102 Findings and Conclusions. The City and the District hereby find and declare:
a The Act authorizes the City and the District to enter into this Agreement to define the
terms and conditions under which services to the District will be provided and under
which the District will continue to exist after the Property is annexed for limited
purposes pursuant to this Agreement;
b. This Agreement does not require the District to provide revenue to the City solely for
the purpose of an agreement with the City to forgo annexation of the District;
c. This Agreement provides benefits to the City and the District, including revenue,
services, and/or regulations which are reasonable and equitable with regard to the
benefits provided to the other Party;
d. All the terms and conditions contained in this Agreement are lawful and appropriate to
provide for the provision of municipal services and annexation; and
e. The City and the District negotiated this Agreement by mutual consent; the terms and
conditions of the Agreement are not a result of the City's Annexation Plan or any
arbitration between the City and the District.
Article 2
LIMITED -PURPOSE ANNEXATION
2.01 Generally. As soon as practicable following the approval of this Agreement by
City Council, as authorized by the Act, the City shall annex the Property for the limited purposes
of applying the Applicable Ordinances within the Property. The District hereby consents to such
annexation for limited purposes regardless of whether the Property is contiguous or non-
contiguous to the corporate boundaries of the City. The Applicable Ordinances will be applicable
to and enforceable in the Property upon the date of limited -purpose annexation.
2.02 Property Taxes and District Liability for Debts of the City. During the term of this
Agreement, except if annexed for full purposes pursuant to this Agreement, ad valorem taxes
levied by the City will not be levied on taxable property within the District.
Strategic Partnership Agreement, Page 3
2.03 Municipal Court's Jurisdiction. Upon the limited purpose annexation of the
Property, the City's municipal court shall have jurisdiction to adjudicate cases filed under the
Applicable Ordinances arising from actions occurring within the Property.
2.04 Powers and Functions Retained by the District. Except as limited by the Consent
Resolution, the District is authorized to exercise all powers and functions of a municipal utility
district provided by existing law or any amendments or additions thereto. The District's assets,
liabilities, indebtedness, and obligations will remain the responsibility of the District during the
period preceding any full -purpose annexation. Disposition or acquisition of additional assets,
liabilities, indebtedness and obligations will be governed by the Consent Resolution.
Article 3
MUNICIPAL SERVICES WITHIN THE DISTRICT
3.01 Enforcement of Applicable Ordinances. The City shall apply and enforce the City's
Applicable Ordinances within the Property.
3.02 No Further Services. The Parties expressly understand and agree that during the
term of this Agreement, the City will only provide those services necessary to apply and enforce
the City's Applicable Ordinances within the District in accordance with Section 3.01. The City
shall have no obligation to provide or extend any City municipal services not expressly agreed to
herein or otherwise agreed in writing in another agreement.
Article 4
SALES AND USE TAX AGREEMENT
4.01 Imposition of the Sales and Use Tax. The City and all special districts or entities
created or hereinafter created by the City having within its boundaries the corporate limits of the
City lying within Harris County shall impose a Sales and Use Tax within the Property upon the
limited -purpose annexation of the Property and upon the imposition of any Sales and Use Tax
hereinafter adopted. The Sales and Use Tax shall be imposed on the receipts from the sale and use
at retail of taxable items at the same rate as such tax is imposed on the receipts from the sale and
use at retail of taxable items within the corporate limits of the City lying within I-larris County.
The Sales and Use Tax shall take effect on the date described in Texas Tax Code §321.102 or such
other applicable law.
4.02 Notification of Comptroller. The City shall send notice of this Agreement and the
limited -purpose annexation of the District to the Texas Comptroller of Public Accounts within
fifteen (15) days of the Effective Date in the manner provided by Texas Tax Code §321.102. The
City shall send to the District a copy of any notice from the Texas Comptroller of Public Accounts
delaying the effectiveness of the Sales and Use Tax in the Property.
4.03 City Audit Rights. The District is required by Subchapter G, Chapter 49, Texas
Water Code, to prepare an annual audit within one hundred twenty (120) days after the close of
Strategic Partnership Agreement, Page 4
the District's fiscal year. The District shall provide a copy of its annual audit to the City within
thirty (30) days after such audit is completed.
Article 5
FULL -PURPOSE ANNEXATION
5.01 No Full -Purpose Annexation During Term of Agreement. The City agrees that it
will not annex all or part of the District or commence any action to annex all or part of the District
for full purposes during the term of this Agreement, except by mutual agreement of the Parties or
in accordance with Section 5.02.
5.02 Full -Purpose Annexation at Termination of Agreement. Upon termination of this
Agreement for cause or on or before the third month prior to the expiration of the term or any
extended term hereof, the City Manager shall evaluate and make a recommendation to the City
Council regarding whether the City should:
a. negotiate a new strategic partnership agreement with the District;
b. annex the land within the District for full purposes upon the termination of this
Agreement and dissolve the District;
C. annex the land within the District for full purposes upon the termination of this
Agreement and allow the District to remain in place as an in -city municipal utility
district for the sole purpose of owning and maintaining the District's Detention
Facilities (as hereinafter defined), in accordance with Section 43.0751, Texas Local
Government Code; or
d. allow this Agreement to expire.
If the City Council desires to annex all of the land in the District within the District for full
purposes, the District agrees that such annexation will be considered a voluntary annexation,
wherein the District and all of the landowners therein at the time of the annexation shall be deemed
to have requested the City to annex their properties. Additionally, any land previously annexed
for limited purposes shall automatically be converted and deemed to be annexed for full purposes
on the date that the City Council decides to include such property in its incorporated limits. For
property not previously annexed by the City for limited purposes, the City shall begin proceedings
for such property as applicable. If the City Council does not desire to negotiate a new strategic
partnership agreement with the District or annex for full purposes any portion of the District that
was previously annexed for limited purposes, the City may begin proceedings to disannex the
Property for limited purposes if necessary under the applicable provision of the Texas Local
Government Code. If the City decides to annex or disannex the Property, the City may institute
any required proceedings to accomplish such annexation or disannexation to be effective upon the
termination of this Agreement.
Article 6
SERVICES PROVIDED BY THE DISTRICT
Strategic Partnership Agreement, Page 5
6.01 Water and Wastewater Facilities. The District will develop, own, operate and
maintain water and wastewater systems in the District and the Property. The City shall provide
water capacities for the Development pursuant to the terms of the Utility Agreement. The City
may periodically inspect the District's water and wastewater facilities.
6.02 Stormwater Facilities. The District will develop, own, operate and maintain a
drainage system in the District and the Property. The drainage facilities that will be constructed
to serve the District will include wet and/or dry detention basins, open channels, pump stations,
outfall structures, and other control structures or appurtenances related thereto (the "District's
Detention Facilities"). The District will own and maintain the District's Detention Facilities until
the dissolution of the District. If the City annexes the District, the City, in its sole discretion, may
allow the District to remain as an in -city municipal utility district for the sole purpose of owning
and maintaining the District's Detention Facilities or may require that the District's Detention
Facilities be conveyed to a homeowners' association or other association that exists in perpetuity
prior to annexation by the City for ownership and maintenance of the District's Detention Facilities.
The City will have no responsibilities with respect thereto. The City may periodically inspect the
District's drainage facilities.
Article 7
DEFAULT, NOTICE AND REMEDIES
7.01 Notice of District's Default.
a The City shall notify the District in writing of an alleged failure by the District to
comply with a provision of this Agreement, describing the alleged failure with
reasonable particularity. The District shall, within thirty (30) days after receipt of
the notice or a longer period of time as the City may specify in the notice, either
cure the alleged failure or, in a written response to the City, either present facts and
arguments in refutation or excuse of the alleged failure or state that the alleged
failure will be cured and set forth the method and time schedule for accomplishing
the cure.
b. The City shall determine (i) whether a failure to comply with a provision has
occurred; (ii) whether the failure is excusable; and (iii) whether the failure has been
cured or will be cured by the District. The District shall make available to the City,
if requested, any records, documents or other information necessary to make the
determination.
c If the City determines that the failure has not occurred, or that the failure either has
been or will be cured in a manner and in accordance with a schedule reasonably
satisfactory to the City, or that the failure is excusable, the determination shall
conclude the investigation.
Strategic Partnership Agreement, Page 6
d. If the City determines that a failure to comply with a provision has occurred and
that the failure is not excusable and has not been or will not be cured by the District
in a manner and in accordance with a schedule reasonably satisfactory to the City,
then the City may exercise the applicable remedy under Section 7.03.
7.02 Notice of City's Default.
a. The District shall notify the City Manager in writing specifying any alleged failure
by the City to comply with a provision of this Agreement, describing the alleged
failure with reasonable particularity. The City shall, within thirty (30) days after
receipt of the notice or the longer period of time as the District may specify in the
notice, either cure the alleged failure or, in a written response to the District, either
present facts and arguments in refutation or excuse of the alleged failure or state
that the alleged failure will be cured and set forth the method and time schedule for
accomplishing the cure.
b. The District shall determine (i) whether a failure to comply with a provision has
occurred; (ii) whether the failure is excusable; and (iii) whether the failure has been
cured or will be cured by the City. The City shall make available to the District, if
requested, any records, documents or other information necessary to make the
determination.
C. If the District determines that the failure has not occurred, or that the failure either
has been or will be cured in a manner and in accordance with a schedule reasonably
satisfactory to the District, or that the failure is excusable, the detennination shall
conclude the investigation.
d. If the District determines that a failure to comply with a provision has occurred and
that the failure is not excusable and has not been or will not be cured by the City in
a manner and in accordance with a schedule reasonably satisfactory to theDistrict,
then the District may exercise the applicable remedy under Section 7.03.
7.03 Remedies. In the event it is determined that a default has occurred under Section
7.01(d) or Section 7.02(d), the remedies of the non -defaulting Party shall be limited to either or
both of the following:
a. If the City determines that the District has committed a 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. Termination of service pursuant to this article
shall not limit the City's remedies at law or in equity, including termination of this
Agreement or the Development Agreement and annexation of the Property for full
purposes.
b. The non -defaulting party may pursue injunctive relief specifying the actions to be
taken by the defaulting Party to cure the default or otherwise comply with its
Strategic Partnership Agreement, Page 7
obligations hereunder. Injunctive relief shall be directed solely to the default and
shall not address or include any activity or actions not directly related to the default.
If the District determines that the City has committed a breach of this Agreement,
the District may file suit in a court of competent jurisdiction in Harris County,
Texas, and seek any relief available at law or in equity, including, but not limited
to, an action under the Uniform Declaratory Judgment Act in addition to the
monetary awards as may be appropriate.
Article 8
MISCELLANEOUS
8.01 Beneficiaries. This Agreement shall bind and inure to the benefit of the Parties,
their successors and assigns, as well as the special districts created by the City and imposing a
Sales and Use Tax within that portion of the City lying within Harris County. The District shall
record this Agreement with the County Clerk in the Official Records of Harris County, and shall
bind and benefit each owner and each future owner of land included within the District's
boundaries in accordance with Texas Local Gov't Code, §43.0751(c).
8.02 Term. This Agreement shall commence and bind the Parties on the Effective Date
and shall remain in effect for an initial term of thirty (30) years unless earlier terminated. 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 for full purposes, this Agreement
may terminate with respect to such area at the sole option of the City.
8.03 Restrictions on Tax Rate. Except as prohibited by law, the District shall
maintain a minimum tax rate (debt service tax plus operation and maintenance tax) such that the
District's tax is greater than the City's tax rate (currently $0.7955 per $100 of valuation). Should
the value within the District increase such that the combined tax rate could be lowered, the District
will accelerate the bond redemption rate. The City and the District agree that the tax burden on
the property owners within the District will decrease upon the City's annexation. The Parties agree
that should the City Council elect for the District to continue after full -purpose annexation, the
District's operation and maintenance tax may continue to be assessed for the operation and
maintenance of the District's Detention Facilities; provided that the tax burden on the residents
within the District will decrease upon annexation.
8.04 Force Majeure. In the event any party is rendered unable, wholly or in part, by
force majeure to carry out any of its obligations under this 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.
Strategic Partnership Agreement, Page 8
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, lightning, 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 inabilities 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.
8.05 Notice. Any notices or other communications (a "Notice") required to be givenby
one Party to another by this Agreement shall be given in writing addressed to the Party to be
notified at the address set forth below for such Party, (i) by delivering the same in person, (ii) by
depositing the same in the United States Mail, certified or registered, return receipt requested,
postage prepaid, addressed to the Party to be notified, (iii) by depositing the same with Federal
Express or another nationally recognized courier service guaranteeing "next day delivery,"
addressed to the Party to be notified, or (iv) by sending the same by telefax with confirming copy
sent by mail. Notice shall be deemed effective when received by the Party to be notified. For the
purposes of notice, the addresses of the Parties, until changed as provided below, shall be as
follows:
City: City of Baytown
Attn: City Manager
2401 Market Street
Baytown, Texas 77520
Fax: (281) 420-6586
District: Harris County Municipal Utility District No. 555
Attn: David M. Oliver, Jr.
Allen Boone Humphries Robinson LLP
Phoenix Tower
3200 Southwest Freeway, Suite 2600
Houston, TX 77027
Fax: (713) 860-6401
The Parties shall have the right from time to time to change their respective addresses, and each
shall have the right to specify as its address any other address within the United States of America
by giving at least five days' written notice to the other Parties. If any date or any period provided
in this Agreement ends on a Saturday, Sunday, or legal holiday, the applicable period for
Strategic Partnership Agreement, Page 9
calculating the notice shall be extended to the first business day following such Saturday, Sunday
or legal holiday.
8.06 Time. Time is of the essence in all things pertaining to the performance of this
Agreement.
8.07 Severability. All parties agree that should any provision of this Agreement be
determined to be invalid or unenforceable, then such determination shall not affect any other term
of this Agreement, which shall continue in full force and effect.
8.08 Waiver. Any failure by a Party hereto to insist upon strict performance by the other
Party of any material provision of this Agreement shall not be deemed a waiver thereof or of any
other provision hereof, and such Party shall have the right at any time thereafter to insist upon
strict performance of any and all of the provisions of this Agreement.
8.09 Applicable Law and Venue. The construction and validity of this Agreement shall
be governed by the laws of the State of Texas without regard to conflicts of law principles. Venue
shall be in Harris County, Texas.
8.10 Reservation of Rights. To the extent not inconsistent with this Agreement, each
Party reserves all rights, privileges, and immunities under applicable laws.
8.11 Further Documents. The Parties agree that at any time after execution of this
Agreement, they will, upon request of another Party, execute and deliver such further documents
and do such further acts and things as the other Party may reasonably request in order to carry out
the terms of this Agreement.
8.12 Incorporation of Exhibits and Other Documents by Reference. All Exhibits and
other documents attached to or referred to in this Agreement are incorporated herein by reference
for the purposes set forth in this Agreement.
8.13 Effect of State and Federal Laws. Notwithstanding any other provision of this
Agreement, the District shall comply with all applicable laws, rules, and regulations of the United
States and the State of Texas, Harris County and the City as such laws, rules and regulations now
exist or as may be hereinafter amended.
8.14 Entire Agreement. This Agreement, including the exhibits hereto, contains all the
agreements between the parties hereto with respect to the strategic partnership and may not be
modified orally or in any other manner other than by an agreement in writing, signed by all the
parties hereto or their respective successors in interest.
8.15 Headings. The headings as to contents or particular articles or sections herein are
inserted only for convenience, and they are in no way to be construed as a part of this Agreement
or as a limitation on the scope of the particular sections to which they refer.
Strategic Partnership Agreement, Page 10
8.16 Ambiguities. In the event of any ambiguity in any of the terms of this Agreement,
it shall not be construed for or against any party hereto on the basis that such party did or did not
author the same.
8.17 Agreement Read. The parties acknowledge that they have read, understand and
intend to be bound by the terms and conditions of this Agreement.
8.18 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.
8.19 Authority for Execution. The City hereby certifies, represents, and warrants that
the execution of this Agreement is duly authorized and adopted in conformity with the City Charter
and City ordinances. The District hereby certifies, represents, and warrants that the execution of
this Agreement is duly authorized and adopted by the Board of Directors of the District.
[Remainder of page intentionally left blank.]
Strategic Partnership Agreement, Page 11
IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement
effective as of the date first written above.
CITY OF BAYTOWN, TEXAS
RICHARD L. DAVIS, City Manager
ATTEST
LETICIA BRYSCH, City Clerk
(SEAL)
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This instrument was acknowledged before me on this day of , 2021, by
Richard L. Davis, the City Manager of the City of Baytown, Texas, on behalf of said City.
Notary Public in and for the
State of Texas
(SEAL)
Strategic Partnership Agreement, Page 12
HARRIS COUNTY MUNICIPAL UTILITY
DISTRICT NO.555
President, Board of Directors
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This instrument was acknowledged before me on this day of _ , 2021,
by , President of the Board of Directors of Harris County Municipal Utility District
No. 555, on behalf of said District.
Notary Public in and for
the State of Texas
(SEAL)
R: Karen Homer Documents\Files.Contracts\ForeStar Group Development Agreement%Strategic Partnership Agreement.docx
Strategic Partnership Agreement, Page 13
EXHIBIT "A"
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EXHIBIT "B"
UtiliU Agreement
WATER SUPPLY AND WASTE DISPOSAL AGREEMENT
BETWEEN
THE CITY OF BAYTOWN, TEXAS
AND
HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 555
This Water Supply and Waste Disposal 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 Harris County Municipal Utility District No. 555, a body politic and corporate and a
governmental agency of the State of Texas, organized under and governed by the provisions of
Article XVI, Section 59 of the Texas Constitution, Chapter 8042 of the 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 Harris 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, organized and existing under Article XVI,
Section 59 of the Texas Constitution, 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 and a waste collection
system serving the Service Area (hereinafter defined) and desires to purchase treated water for the
Service Area and to purchase treatment and disposal of waste generated within the Service Area.
4. The District is empowered to supply water for municipal uses, domestic uses,
power and commercial purposes and all other beneficial uses or controls; and to collect, transport,
process, dispose of, and control all domestic or commercial waste whether in fluid, solid or
composite state.
5. The District is authorized to purchase, construct, acquire, own, maintain, repair or
improve or extend inside and outside its boundaries any and all works, improvements, facilities
and plants, necessary and incidental to the supply of water and the collection, transportation,
processing, disposition and control of all waste.
6. All or part of the Service Area lies within the extraterritorial jurisdiction of the City
as established by Chapter 42 of the Texas Local Government Code, as amended. The parties
acknowledge the possibility that the City may annex the Service Area during the term of this
Agreement. In addition, the parties desire to avoid overlapping responsibilities for utility service.
7. The parties have determined that they are authorized to enter into this Agreement
by the Constitution and the laws of the State of Texas, including, without limitation, Texas Local
Government Code Section 552.001 and Texas Water Code Section 49.213, as same may be from
time to time amended.
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:
"Alteration" or "Alter" shall mean modifying, improving, replacing, expanding,
extending, or making other changes to a facility, exclusive of maintenance repairs which
are preventative in nature.
"City's System" shall mean the systems for the supply and distribution of water and
for the collection, transportation and treatment of wastewater 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, and the
transportation of waste from dwellings and buildings connected to the District's System to
the point of interconnection with the City's System.
"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.
"Industrial Waste" shall mean waste resulting from any process of industry,
manufacturing, trade or business from the development of any natural resource, or any
mixture of the waste with water or normal wastewater, or distinct from normal wastewater.
"Infiltration Water" shall mean water or other waste which enters a sanitary sewer
system by means other than by a permitted connection; "infiltration water" includes water
which leaks into a sanitary sewer system.
2
"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.
"Prohibited Waste" shall be those discharges prescribed by the City of Baytown's
Industrial Waste Ordinance as set forth in Article V of Chapter 98 of the Code of
Ordinances of the City of Baytown, a copy of which is attached hereto as Exhibit "D" and
for all purposes made a part of this Agreement. All future amendments to the City's
Industrial Waste Ordinance shall apply to this agreement when such amendments are
adopted.
"Service Area" shall mean the area within the boundaries of the District consisting
of approximately 119.3 acres, more particularly described on Exhibit "A," which is
attached hereto and incorporated herein for all intents and purposes, which shall include
only 421 single-family detached dwelling units.
"Sewage" shall mean the liquid and water -carried domestic waste discharged for
sanitary conveniences of dwellings and buildings connected to a sanitary sewer collection
system, excluding industrial wastewater discharged into sanitary sewers and in which the
average concentration of total suspended solids is not more than 250 mg/1 and B.O.D. is
not more than 250 mg/l.
"TCEQ" shall mean the Texas Commission on Environmental Quality or its
successor agency.
"Treatment Plant" or "Plant" shall mean either the appropriate wastewater treatment
plant, as determined by the City, including all additions or modifications thereto which
may occur subsequent to the execution of this Agreement.
"Waste" shall mean sewage collected by a sanitary sewer system together with such
infiltration water as may be present, provided that such system is constructed in compliance
with City Specifications and continually and promptly maintained and repaired.
"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 B District Rate Order
Exhibit C City's Present Water Service Ordinance
Exhibit D City's Present Sewer Service Ordinance
Exhibit E 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 Connection. The points of connection between the City's System and the
District's System shall be approved by the Director and shall not be changed without prior written
approval of the Director.
4
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, and (ii) the City shall receive from the District and the
District shall discharge such volumes of waste at such times and in such quantities as provided in
Article IV of this Agreement, for the price and at the point or points of delivery herein provided,
consistent with other limitations as stated herein.
2.06 Commencement of Use of Interconnections. The Interconnections shall be placed
into operation only upon the inspection and approval of the Interconnections and the District's
System by the 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 Meters.
(a) 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%) 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 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
E
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. 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(a) 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 (!4) 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.
0
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 and
sanitary sewer facilities and agrees not to permit plumbing work relating to water or sewer service
or allow connection to the District's System except in compliance with the 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 plumbing 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.
7
3.03 Outside Service Contracts. The District agrees that should the District desire to
delegate responsibility for maintenance or for supervision of the District's System to any individual
or entity other than its own employees holding any permit or certificate required by law or a sewage
plant operator holding a valid certificate of competency issued under the direction of the TCEQ as
required by Texas Water Code Section 26.0301, as amended, or any other permit or certificate
required by law, then any such proposed service arrangement, by written contract or otherwise,
must be approved in writing by the Director, whose consent shall not be unreasonably withheld,
prior to execution by the parties. Failure of the District to submit any such proposed service
agreement to the District prior to its execution shall be considered an Event of Default. Any
outside service agreement, whether submitted to the City or not, shall contain a clause 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.
3.05 Industrial Waste. The District shall not discharge any Industrial Waste or
prohibited waste into the City's System.
3.06 Waste to Comply with City Ordinance. Discharges of waste into the District's
System shall comply with all applicable City Ordinances. The District is obligated to assume the
responsibility to enforce the applicable City Ordinances with respect to impermissible discharges
of Industrial and Prohibited Wastes originating from within the District. Failure of the District to
enforce said City Ordinances to the satisfaction of the City shall be considered an Event of Default.
3.07 Seepage and Infiltration. The District agrees that it will adopt and enforce written
rules, regulations, and provisions to ensure that connections to the System will be such as to
prevent as much as feasibly possible the discharge into said System of anything except sewage;
and in particular, but without limitation thereto, that no drains shall be installed or connected in
such a manner that any rainwater or other surface waters are permitted to enter the District's
System; and, in addition, that adequate safeguards will be taken to prevent any abnormal seepage
or infiltration or discharge of any solid matter into said System. The District agrees that throughout
the term of this Agreement, the District will promulgate and enforce an active program to reduce
the inflow and infiltration into the City's System. Additionally, the District shall tender to the City
a report at least annually on the progress of such program. Within ninety (90) days following the
date of execution of this Agreement by the City, the District shall supply the Director with a copy
of such rules, regulations, and contracts, including a statement of measures designed to enforce
such provision. The District shall initiate whatever lawful actions are necessary to disconnect any
customer who, following reasonable notice, refuses to remove noncompliant connections. The
District will inspect all connections at the time made and continue to monitor the District's System
as a whole to detect infiltration and unpermitted connections at least one (1) time per month or as
otherwise may be ordered by the Director. The District further agrees to continuously maintain
the District's System so as to prevent any abnormal seepage or infiltration or discharge of any solid
matter into said System. Failure to do so shall be an Event of Default notwithstanding any
payments pursuant to the following paragraph.
In the event excess infiltration or abnormal seepage or the discharge of solid matter or
surface water into the District's System is present, the District covenants and agrees to pay the
additional charges provided for in Article V herein for such excess infiltration. It is further agreed
that the City's inspectors shall have the right to make such inspections as are necessary to ensure
that the District is making adequate and proper repairs for the purpose of safeguarding the City's
System.
3.08 Participation in State and Federal Grant Programs, Contribution to Costs. The
District recognizes that the City may participate in a federally funded grant program for the
construction of sewage treatment plants under the provisions of the Federal Water Pollution
Control Act, P.L. 92-500, as amended. Furthermore, the District recognizes that the City may in
the future participate in similar federal or state programs. As part of such programs, and consistent
with the City's successful participation and sharing in grant funds, certain responsibilities may be
imposed upon the City with respect to compliance with state and/or federal rules and regulations
regarding contributors to the City's System. The District recognizes that by virtue of this
Agreement, it is a contributor to the City's System and, as a contributor, shall be required to take
all necessary steps to enable the City to continue to comply with such programs and to bear the
District's pro rata share of the expense of such compliance. More specifically, the District
authorizes the City and its representatives to enter District property and to conduct those tests,
including, but not limited to, infiltration/inflow analyses, smoke tests, and/or other similar analyses
as required under the provisions of the Federal Water Pollution Control Act and the City's Federal
Grant Agreements to characterize the condition of the District's System. The District agrees to
pay costs of such analyses of the District's System not refunded by the state or federal government
to the City, within thirty (30) days of receipt of an invoice for the same. In addition, the District
agrees to pay within thirty (30) days of receipt of an invoice the unrefunded costs of any remedial
measures necessary to improve the District's System in order to comply with state or federal
requirements and agrees to see that such remedial measures are timely taken. Such steps are not
exclusive, and the District agrees to take all steps necessary to assure the City's compliance with
9
such programs. Failure of the District to comply with this section shall constitute an Event of
Default.
3.09 Delivery of and Title to Waste. Title to all waste to be treated hereunder shall
remain in a particular party so long as such waste remains on such party's side of the
Interconnection. Upon passing through the Interconnection, title thereto shall pass to the other
party; however, the City shall be under no responsibility to accept those waste materials which do
not conform with the quality or quantity standards as otherwise specified herein, including
"Prohibited Waste."
ARTICLE IV
QUANTITY AND CAPACITY
4.01 General. 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.
(a) Water. 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 the actual
number of equivalent single-family connections ("ESFCs") multiplied by 400 gpd /ESFC.
It is stipulated that the District's total treated water requirements shall not exceed 400 gpd
multiplied by:
l . 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
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 421 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.
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(b) Waste. In consideration of the compensation stated herein, the City shall
accept and treat waste from the District and the District shall have the privilege of
discharging waste into the City's System for the District to conduct operations, use or resell
within the Service Area. The maximum amount of wastewater that the City shall be
obligated to accept shall be the actual number of equivalent single-family connections
("ESFCs") multiplied by 300 gpd /ESFC; but shall not exceed 300 gpd/ESFC 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
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 discharge exceed 126,300
gallons per day average daily flow (representing connections for the Service Area
described in Article I) based upon 300gpd/ESFC. In the event an approved preliminary
plat expires, the District's total wastewater 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
three 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 (110%) 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 three (3) 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 three (3) 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 ninety percent (90%) 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 or to furnish any specific capacity in its Plant for the District.
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.
a. Water Impact Fee. 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.
b. Wastewater Impact Fee. The wastewater impact fee shall be one hundred
twenty-five percent (125%) of the wastewater impact fee pursuant to Section 114-99 (b) of
the City of Baytown Code of Ordinances for equivalent single-family connection ("ESFC")
charged to development within the City at the time of collection. The wastewater 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 the following:
(a) Water Service Charge. A service charge (to cover the City's operation and
maintenance) equal to the City's minimum charge and additional charges, if any, applied
to the actual quantity of 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
12
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.
(1) As used in this subsection (a), 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.
(2) 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.
(b) Wastewater Service Charge. The wastewater service charge shall be
calculated monthly (i) on the basis of the metered water use as measured by the master
meter less the District's irrigation meter usage, (ii) on a per -connection basis, and (iii) in
accordance with the provisions and rates in the City's Sewer Service Rate Ordinance, which
may be amended from time to time. The usage per user connection shall be calculated by
dividing the total metered water usage less the total metered irrigation meter usage, by the
number of users in the District as reported by the District to the City. A copy of the City's
present rate ordinance for sanitary sewer service, as set forth in Chapter 98, Article IV of
the Code of Ordinances of the City of Baytown, in effect as of the date of this Agreement,
is attached as Exhibit "D," and incorporated herein.
13
5.03 Right of Inspection. City shall have the right at any time by actual count or by an
inspection of the District's books, records and accounts to determine the number of water and/or
sewer connections served by the District, and the District shall have the right at any time to inspect
the City's books, records and accounts to verify the charges levied by the City. It shall be the duty
of the parties to cooperate fully with each other in any such count, inspection or audit. All books,
records and accounts shall be open for inspection at all reasonable hours for any authorized
representative of the parties.
5.04 Reporting Requirements. Each month, the District shall provide to the City a
preliminary operating report in a form approved by the City's Director of Finance. Such
preliminary operating reports shall be tendered to the City on or before the 10`h 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 Billing and Pa ents. Beginning on the date when the City first commences
providing services to the District, the District shall account and certify to the City the number of
connections in use on said first day; and thereafter, the District shall render to the City on the first
day of each month 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.
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 bill shall bear interest in accordance with Section 2251.025,
Texas Government Code. If the District defaults on the payment of any bill, 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.
14
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.
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,
15
distributed or used and ultimately consumed only for residential household and municipal purposes
exclusively within the District's Service Area.
The District understands and agrees that the City, the Baytown Area Water Authority, the
City of Houston or the San Jacinto River Authority, or any combination thereof, may enforce the
covenants contained in this Article by an action brought directly against the District. In the event
that the City maintains any legal proceeding to enforce such covenants, the District agrees to
indemnify the City in the amount of all expenses relating to the legal proceeding, including, but
not limited to, costs of court and reasonable attorney's fees.
The District acknowledges that the City may be liable to the Baytown Area Water
Authority, the City of Houston and/or the San Jacinto River Authority for monetary damages in
the event that the District or any purchaser of water from or through the District fails to comply
with the restrictions and limitations on the sale of water set out in this Article. The District
acknowledges that such monetary damages would amount to seventy-five percent (75%) of the
consideration or revenue received by the City for the estimated amount of water distributed, sold
or used in violation of such restrictions or limitations plus all litigation expenses, reasonable
attorney fees, and all other remedies available to the Baytown Area Water Authority, the City of
Houston and/or the San Jacinto River Authority. The District hereby agrees to fully indemnify,
hold harmless and defend the City from and against any such expenses and liability which the City
might incur or any loss the City might suffer as a result of any failure by the District or any
purchaser of water from or through the District, to comply with such restrictions and limitations.
The District further agrees to include covenants in any sales or contracts for sale of water by the
District to any other entity to ensure that said other entity will likewise indemnify, hold harmless
and defend the City. The District agrees to submit the wording of such covenants for the written
approval of the City prior to entering into such contracts.
The District acknowledges that the City of Houston may be liable to the San Jacinto River
authority for monetary damages in the event that the District or any purchaser of water from or
through the District fails to comply with the restrictions and limitations on the sale of water set out
in this Article. The District acknowledges that such monetary damages would amount to seventy-
five percent (75%) of the consideration or revenue received by the City of Houston for the
estimated amount of water distributed, sold or used in violation of such restrictions or limitations
plus all litigation expenses, reasonable attorney fees, and all other remedies available to the San
Jacinto River Authority. The District hereby agrees to fully indemnify, hold harmless and defend
the City of Houston from and against any such expenses and liability which the City of Houston
might incur or any loss the City of Houston might suffer as a result of any failure by the District
or any purchaser of water from or through the District, to comply with such restrictions and
limitations. The District further agrees to include covenants in 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.
16
On or before the first anniversary of the date this Agreement is signed, the District shall
approve and implement and throughout the term hereof remain in full compliance with a water
conservation program in accordance with the requirements of the TCEQ. Such plan and any
amendments thereto shall be submitted to the appropriate authority as required by state law for
review and approval. In the event that the TCEQ adopts new requirements, the District shall adopt
an amended plan and submit same to the appropriate authority for review and approval.
Within thirty (30) days after the term of this Agreement, the District shall furnish the City
with a statement, under oath, showing the quantities and sources of all water for use or resale by
the District.
ARTICLE VII
MISCELLANEOUS PROVISIONS
7.01 Force Maieure. In the event any party is rendered unable, wholly or in part,
by force majeure to carry out any of its obligations under this Agreement, it is agreed that on such
party's giving notice and full particulars of such force majeure in writing or by telegraph to the
other party as soon as possible after the occurrence of the cause relied upon, then the obligations
of the party giving such notice, to the extent it is affected by force majeure and to the extent that
due diligence is being used to resume performance at the earliest practicable time, shall be
suspended during the continuance of any inability but for no longer period. Such cause shall as
far as possible be remedied with all reasonable dispatch.
The term "force majeure," as used herein, shall include, but not be limited to, acts of God,
strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades,
insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, storms, floods, washouts,
droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions,
breakage or damage to machines or pipelines and any other inability of either party, whether
similar to those enumerated or otherwise and not within the control of the parties claiming such
inability, which by the exercise of due diligence and care such party could not have avoided.
It is understood and agreed that the settlement of strikes or lockouts shall be entirely within
the discretion of the party having the difficulties, and the above -referenced requirement that any
force majeure be remedied with all reasonable dispatch shall not require the settlement of strikes
or lockouts by acceding to demands of the opposing party when such course is inadvisable in the
discretion of the party having the difficulty.
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
17
give such approval or consent on behalf of the party pursuant to an ordinance or resolution adopted
by the governing body, unless stated otherwise herein.
7.03 Address and Notice. Unless otherwise provided in this Agreement, any notice,
communication, request, reply or advice (herein severally and collectively for convenience, called
"Notice") herein provided or permitted to be given, made or accepted by any party to the other
must be in writing and may be given or served by depositing the same in the United States mail,
postpaid and registered or certified and addressed to the party to be notified, with return receipt
requested, or by delivering the same to an officer of such party, or by prepaid telegram, when
appropriate, addressed to the party to be notified. Notice deposited in the mail in the manner
hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this
Agreement, from and after the expiration of three (3) days after it is so deposited.
Notice given in any other manner shall be effective only if and when received by the party
to be notified. However, in the event of service interruption or hazardous conditions, neither party
will delay remedial action pending the receipt of formal notice. For the purpose of notice, the
address of the parties shall, until changed as hereinafter provided, be as follows:
If to the City, to
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
Fax: (281) 420-6586
If to the District, to
Harris County Municipal Utility District No. 555
Attn: David M. Oliver, Jr.
Allen Boone Humphries Robinson LLP
Phoenix Tower
3200 Southwest Freeway, Suite 2600
Houston, TX 77027
Fax: (713) 860-6401
The parties shall have the right from time to time and at any time to change their respective
addresses, and each shall have the right to specify as its address any other address, provided at
least fifteen (15) days' written notice is given of such new address to the other parties.
7.04 Assignability. This Agreement shall bind and benefit the respective parties and
their legal successors and shall not be assignable in whole or in part by any party without first
obtaining written consent of the other party.
7.05 Regulatory Agencies. This Agreement shall be subject to all present and future
valid laws, orders, rules and regulations of the United States of America, the State of Texas, and
of any regulatory body having jurisdiction.
18
7.06 No Additional Waiver Implied. The failure of any party hereto to insist, in
any one or more instances, upon performance of any of the terms, covenants or conditions of this
Agreement, shall not be construed as a waiver or relinquishment of the future performance of any
such terms, covenants or conditions by any other party hereto, but the obligation of such other
party with respect to such future performance shall continue in full force and effect.
7.07 Modification. Except as otherwise provided herein, this Agreement shall be
subject to change or modification only with the mutual written consent of the parties hereto.
7.08 Parties in Interest. This Agreement shall be for the sole and exclusive benefit of
the parties hereto and shall not be construed to confer any rights upon any third party. The City
shall never be subject to any liability in damages to any customer of the District for any failure to
perform its obligations under this Agreement.
7.09 Captions. The captions appearing at the first of each numbered section in this
Agreement are inserted and included solely for convenience and shall never be considered or given
any effect in construing this Agreement or any provision hereof, or in connection with the duties,
obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of
intent should arise.
7.10 Severability. The provisions of this Agreement are severable, and if any provision
or part of this Agreement or its application thereto to any person or circumstance shall ever be held
by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the
remainder of this Agreement and the application of such provisions or part of this Agreement to
other persons or circumstances shall not be affected thereby.
7.11 Merger. This Agreement embodies the entire understanding and agreement
between the parties as to the water supply and waste disposal services, and there are no prior
effective representations, warranties or agreements between the parties.
7.12 Construction of Agreement. The parties agree that this Agreement shall not be
construed in favor of or against any party on the basis that the party did or did not author this
Agreement.
7.13 Term. This Agreement shall be in force and effect from the date of execution
hereof 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
19
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.
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]
PIC
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this
day of , 2020.
ATTEST:
(Signature)
(Printed Name)
Secretary, Board of Directors
APPROVED AS TO FORM:
David M. Oiler
Attorney for the District
HARRIS COUNTY MUNICIPAL UTILITY
DISTRICT NO.555
By: -- -- - - -
(Signature)
21
(Printed Name)
President, Board of Directors
ATTEST:
Leticia Brysch
City Clerk
APPROVED AS TO FORM:
Karen L. Horner
City Attorney
CITY OF BAYTOWN
Lin
Richard L. Davis
City Manager
22
EXHIBIT "A"
Description of Service Area (District Property)
23
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EXHIBIT "B"
District Rate Order
24
EXHIBIT "C"
City's Present Water Service Ordinance
25
ARTICLE III. -WATER SERVICE
Footnotes:
---(2) ---
Cross reference— Plumbing code, § 18-461 et seq.; water in mobile home parks, § 58-144.
State Law reference— Authority of city to operate waterworks and set rates, V.T.C.A., Local Government Code § 402.017.
Sec. 98-55. - Utility upgrade surcharge.
(a) A monthly utility upgrade surcharge of $15.00 shall be assessed and collected by the utility billing division for
each lot within the Bay Oaks Harbor Subdivision (Amended), Blocks 2 through 10 inclusive, which receives
utility services from the city. Such surcharge shall be expended by the city for repairs to the water and
wastewater systems within such subdivision in order to meet the state commission on environmental
quality's standards.
(b) A monthly utility upgrade surcharge of $200.00 shall be assessed and collected by the utility billing division
for the commercial recreational vehicle park located in the Bay Oaks Harbor Subdivision (Amended), Block 1,
Reserves A, B and C inclusive, which receives utility services from the city. Such surcharge shall be expended
by the city for repairs to the wastewater system within such subdivision in order to meet the state
commission on environmental quality's standards.
(Ord. No. 10,865, § 1, 3-27-08; Ord. No. 10,998, § 1, 10-23-08)
Sec. 98-56. - Deposits and refunds.
(a) Application for service. Whenever a consumer desires to establish service with the utility billing division, he
shall tender to such division, at least one day prior to the time he desires his premises to be connected with
the water services, the proper deposit.
(b) Amount of deposit.
(1) A residential consumer occupying a single-family dwelling house shall be required to place on deposit the
amount of $50.00 if he is the owner of the dwelling house; however, a residential consumer occupying a
single-family dwelling house shall be required to place on deposit the amount of $200.00 if he is not the
owner of the dwelling house.
(2) Commercial water deposits shall be determined by the utility billing supervisor. This deposit is to be
generally comparable to two months' water service of a commercial business similar to the applicant.
(3) Deposits for apartment houses, mobile parks or other multifamily dwelling projects shall be determined
by the utility billing supervisor, but shall not be less per unit than the deposit required of single-family
dwelling units.
(c) Increase of deposits. Deposits for commercial consumers, apartment houses, mobile parks or other
multifamily projects may be increased from time to time if it is determined by the utility billing supervisor
that additional deposits are necessary in order to ensure payment of charges for water service. The
additional deposit shall be tendered to the utility billing division within 30 days after notice of the increase in
the deposit. Section 98-61 shall apply if the additional deposit is not tendered within 30 days.
(d) Refunds. Deposits will be refunded upon termination of service, provided the consumer has fully satisfied all
charges due the city.
(e) Form of deposits.
(1) Deposits of less than $500.00 shall be cash deposits in the form of cash, check or money order.
(2) Deposits of $500.00 or more for commercial consumers, apartment houses, mobile home parks or other
multifamily dwelling projects shall be by:
a. Cash;
b. Irrevocable bank letter of credit, provided that the irrevocable bank letter of credit shall be:
1. Drawn on an FDIC -insured bank located within Harris County or Chambers County, and
2. For a period of not less than one year; or
c. An assignment of security, provided that any security pledged shall be:
1. Approved by the utility billing manager, and
2. Placed in an FDIC -insured bank located within Harris County or Chambers County; or
d. A bond, provided that the bond shall be:
1. Issued by a surety licensed to do business in the state,
2. In a form approved by the city attorney, and
3. For a term of not less than one year.
Deposits in any form allowed herein shall be maintained throughout the period during which the city
provides utility service. As such, any deposit that is to expire prior to the termination of utility service
shall be renewed prior to its expiration and proof of such renewal must be submitted to the city's utility
billing manager. The remedies for nonpayment of utility bills specified in section 98-61 shall apply if a
deposit is not renewed prior to its expiration.
(Code 1967, § 31-54; Ord. No. 943, § 1, 11-7-68; Ord. No. 1479, § 1, 9-27-73; Ord. No. 2328, § 1, 10-13-77; Ord. No. 2738,
§ 1, 9-27-79; Ord. No. 3054, § 1, 1-8-81; Ord. No. 4948, § 1, 3-24-88; Ord. No. 6005, § 1, 9-26-91; Ord. No. 8141, § 1, 11-25-
97; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 10,623, § 1, 6-12-07; Ord. No. 11,646, § 1, 5-26-11)
Sec. 98-57. - Tapping fees.
(a) The following fees shall be assessed and collected by the utility billing division for water taps inside the city
limits:
(1) Three -fourths -inch 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 Gallon
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
Water Service —Rate Schedule
Multifamily Residential Master Meter Service
Base Facility Charge:
Per dwelling unit
Customer Charge:
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit
Over 2,000 gallons per unit
Unit = Constructed, regardless of whether occupied.
Base Facility Charge:
Per meter by meter size
5/8"X3/a"
3/411
1"
1'/z"
$2.60
�$5.63
Water Service —Rate Schedule
Nonresidential Service
Inside Citv
Outs
53 j $15.05
1.31 $22.59
$37.67
$37.67 $75.32
$60.26
$120.51
$120.51
$241.02
$188.31
$376.60
I
$602.56
i
$1,205.13
$866.20
$1,732.37
Customer Charge:
j
Per bill issued $3.62 $7.24
Gallonage Charge (Per Thousand Gallons)_
_J
All use $5.60 $8.39
Water Service —Rate Schedule
High -Volume User Service
Gallonage Charge (Per Thousand Gallons)_
All use $4.13
I __1
i Base Facility Charge:
I_.
Per meter by meter size
5/8 X 3/411
Water Service —Rate Schedule
Metered Irrigation Service
Inside City
$7.53
3/4" $11.31 1
Outside City.
$15.05
$22.59
37.67
75.32
120.51
W .02
376.60
6"
i
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/a" Meter
$376.60 $753.21
$602.56 $1,205.13
$866.20 $1,732.37
$3.62
$7.24
$5.60
$8.39
$6.71
$10.09
�$8.74
$13.10 _ _-- -- -
$11.36
$17.04
Up to 9,000 gallons j $5.60
Over 9,000-18,000 gallons $6.71
Over 18,000-27,000 gallons $8.74
Over 27,000 gallons $11.36
1" Meter
Up to 15,000 gallons
Over 15,000-30,000 gallons
4 Over 30,000-45,000 gallons
Over 45,000 gallons
$5.60
$6.71
$8.74
$11.36
$8.39
$10.09
$13.10
$17.04
$8.39
$10.09
$13.10
$17.04
1'/z" Meter
TU p to 30,000 gallons
Over 30,000-60,000 gallons
$5.60
$6.71
$8.39
$10.09
Over 60,000-90,000 gallons
$8.74
$13.10
Over 90,000 gallons
$11.36
$17.04
!
2" Meter
Up to 48,000 gallons
$5.60
1 $8.39
Over 48,000-96,000 gallons
$6.71
$10.09
Over 96,000-144,000 gallons
$8.74
$13.10
Over 144,000 gallons
$11.36
$17.04
3" Meter
Up to 96,000 gallons
$5.60
$8.39
Over 96,000-192,000 gallons
$6.71
$10.09
Over 192,000-288,000 gallons
$8.74
$13.10
Over 288,000 gallons
$11.36
$17.04
4" Meter
Up to 150,000 gallons
$5.60
$8.39
Over 150,000-300,000 gallons
$6.71
$10.09
Over 300,000-450,000 gallons
$8.74
$13.10
Over 450,000 gallons
$11.36
$17.04
6 Meter
Up to 300,000 gallons ! $5.60
-
Over 300,000-600,000 gallons $6.71
Over 600,000-900,000 gallons $8.74
Over 900,000 gallons $11.36
8" Meter
I_ Up to 480,000 gallons $5.60
Over 480,000-960,000 gallons $6.71
Over 960,000-1,440,000 gallons $8.74
Over 1,440,000 gallons $11.36
10" Meter
Up to 690,000 gallons $5.60
Over 690,000-1,380,000 gallons $6.71
f
Over 1,380,000-2,070,000 gallons $8.74
Over 2,070,000 gallons $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
(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.
Q) 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 IiE
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 A 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 c
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 a lien validly filed pursuant to this
section, the supervisor of the utility billing division shall execute a release of that lien and surrender it to the
paying party. The release shall be prepared and approved as to form by the city attorney and shall be duly
notarized. The city shall not be responsible for filing that release.
(i) Effect of section. This section is cumulative of any other remedies, methods of collection or security available
to the city under the Charter and city ordinances or under state law.
EXHIBIT "D"
City's Present Sewer Service Ordinance
Mel
(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.
ARTICLE IV. - SEWER SERVICE
Footnotes:
--- (3) ---
Cross reference— Plumbing code, § 18-461 at seq.; maintenance of private sewer lines, § 42-63; sewage and mobile home parks, § 58-
145.
Sec. 98-90. - Plumbing connections to sewer lines.
All plumbing fixtures installed within a structure, whether residential or nonresidential, shall be connected to sewer
lines that discharge into a public sewer system if such line lies within 300 feet of other approved means of disposal.
Plumbing fixtures not connected to a public sewer system shall be connected to an approved sewage disposal system.
Such private sewage disposal system shall be constructed and repairs or additions made in accordance with the
applicable regulations of the city. No sewage from a plumbing system shall be discharged into state waters, unless
specially approved by the authority having jurisdiction in accordance with state law.
(Ord. No. 11,803, § 18, 11-21-11)
Sec. 98-91. - Sewer service charge.
(a) Residential dwelling units. The sewer service charge for residential dwelling units shall be as follows:
(1) Individually metered for water consumption. Each residential dwelling unit individually metered and
billed for the consumption of water shall be charged for and shall owe each month a sewer service
charge based upon the consumption of water attributed to it as determined by article III of this chapter
relating to water charges, applied to the following usage and the rate schedule for sewer service:
Base Facility Charge:
T
Per dwelling unit
Customer Charge:
J. Per bill issued
Wastewater Service —Rate Schedule
Individually Metered Single -Family Residential
Inside City. Outside City
$8.13 1 $16.26
$3.91 1 $7.82
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit
Over 2,000-12,000 gallons per unit
Over 12,000 gallons per unit
$2.81 $4.22
- -- $6.08 - � $9.13 _ - No charge No charge
(2) Jointlymetered for water consumption. Multifamily dwelling unit projects not individually metered for
water shall be charged for and shall owe each month a sanitary sewer charge based upon consumption
of water attributed to it as determined by article III of this chapter relating to water charges applied to the
following usage and the rate schedule for sewer service:
Wastewater Service —Rate Schedule
Multifamily Residential Master Meter Service
Inside Citv
' Base Facility Charge:
Per dwelling unit $8.13
Customer Charge:
Per bill issued $3.91
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit $2.81
Over 2,000 gallons per unit $6.08
_J
Unit = Constructed, regardless of whether occupied.
Outside City
L.
$16.26
$7.82
$4.22
$9.13
(b) Commercial units. Each commercial unit shall be charged for and shall owe each month a sanitary sewer
service charge based upon the consumption of water attributed to it, applied to the following usage and the
rate schedule for sewer service:
Wastewater Service —Rate Schedule
Nonresidential Service
Inside City
Outside City
Base Facility Charge:
Per meter by meter size
5/8"x3/a" $8.13
$12.21
1"
1 Y2"
2"
3"
4"
6"
me
Customer Charge:
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
TAII use
$20.33
$40.68
$65.08
$130.15
$203.37
$406.73
$650.76
$935.50
$3.91
MO
$16.26
$24.42
$40.66
$81.36
$130.16
$260.30
$406.74
$813.46
$1,301.52
$1,871.00
$7.82
$9.13
(c) Manufactured home parks. Manufactured home parks shall be charged for and owe a sanitary sewer service
charge based upon consumption of water attributed to it as determined by article III of this chapter relating
to water charges applied to the following usage and the rate schedule for sewer service:
Wastewater Service —Rate Schedule
Manufactured Home Parks Master Meter Schedule
(Based upon Multi -Family Residential Master Meter Service)
Base Facility Charge.
Per dwelling unit
Customer Charge:
Per bill issued
Gallonage Charge (Per Thousand Gallons)_
Up to 2,000 gallons per unit
Over 2,000 gallons per unit
Unit = Total spaces, regardless of whether occupied.
Inside City
$8.13
$3.91
$2.81
$6.08
Outside City
$16.26
$7.82
$4.22
$9.13
(d) Volume users. A sanitary sewer service customer within the corporate limits who (i) qualifies for a tax
abatement under the city's tax abatement policy and (ii) uses more than 400,000 gallons of water per day
shall be charged and shall owe each month a sewer service charge based upon (i) the consumption of water
attributed to it as determined by article III of this chapter relating to water charges; or (ii) the actual
wastewater flow as determined by a metering system approved by the city. Such charges shall be applied as
follows:
Base Facility Charge:
-r
Per meter by meter size
i
—a
5/8 Itx 3/4n
3/4n
1"
Wastewater Service —Rate Schedule
High -Volume User Service
With City Without City
Water Service Water Service
$8.13 $8.47
$12.21 $12.68
$20.33 $21.15
-T, Y21# $40.68 --'-F$42.30
3" $130.15 $135.35
4" $203.37 $211.51
f
6" $406.73 $422.99
8" $650.76 $676.79
10" $935.50 $972.91
Customer Charge:
Per bill issued $3.91 $4.07
Gallonage Charge (Per Thousand Gallons)_
All use $4.50 $4.67
(Code 1967, § 31-65; Ord. No. 944, § 2, 11-7-68; Ord. No. 1015, § 1, 2-12-70; Ord. No. 1465, §§ 1, 2, 9-13-73; Ord. No.
1668, §§ 1, 2, 9-26-74; Ord. No. 2550, § 1, 9-28-78; Ord. No. 2738, § 3, 9-27-79; Ord. No. 2974, § 2, 9-25-80; Ord. No. 3680,
§ 1, 9-22-83; Ord. No. 4548, § 2, 9-25-86; Ord. No. 5644, §§ 1, 2, 9-27-90; Ord. No. 6006, § 2, 9-26-91; Ord. No. 6349, § 2,
9-24-92; Ord. No. 6777, §§ 2, 3, 9-23-93; Ord. No. 7097, § 2, 9-22-94; Ord. No. 7392, § 2, 9-14-95; Ord. No. 8061, § 2, 9-11-
97; Ord. No. 8151, § 10, 12-16-97; Ord. No. 8677, §§ 3, 4, 9-9-99; Ord. No. 9225, §§ 3, 4, 9-13-01; Ord. No. 9416, §§ 3, 4, 9-
12-02; Ord. No. 9629, §§ 3, 4, 9-25-03; Ord. No. 9869, §§ 4, 5, 9-9-04; Ord. No. 10,158, §§ 3, 4, 9-27-05; Ord. No. 10,403, §§
3-5, 9-14-06; Ord. No. 10,704, §§ 3, 4, 9-13-07; Ord. No. 10,962, §§ 3-5, 9-22-08; Ord. No. 11,308, § 6, 2-25-10; Ord. No.
11,494, § 2, 11-11-10; Ord. No. 11,717, § 2, 9-8-11; Ord. No. 12,331, § 2, 9-12-13; Ord. No. 12,624, § 2, 8-28-14; Ord. No.
14,050, § 1, 4-11-19)
Sec. 98-92. - Charge for users without water or outside city.
(a) Users without water. A person not connected to the city waterworks system shall be billed monthly by the
utility billing division for sanitary sewer services at a rate determined by the utility billing supervisor, which
rate shall be consistent with the regular sewer service charge of similar type premises or users receiving
service from the city. If a person desiring service uses water or maintains premises in such a manner that a
similar type user or premises cannot be found, the utility billing supervisor may recommend for approval to
the city council such service charge and conditions as he deems appropriate.
(b) Users outside city limits.
(1) A person outside the city limits and authorized by the director of utilities to receive sewer service from
the city shall pay a monthly sewer service charge equal to:
a. The sum of:
1. Two times the city's minimum monthly rate for users within the corporate limits and
2. One and one-half times the rate for any additional usage charged to a user situated within the
corporate limits, except that the maximum charge specified in subsection 98-91(b)(1) shall not be
applicable; or
b. Any other amount as may be otherwise established and approved in writing by the city council
pursuant to a wastewater disposal agreement.
(2) A person outside the city limits and not connected to the city waterworks system shall be billed monthly
by the utility billing division for sanitary sewer services at a rate determined by the utility billing
supervisor that produces a charge of twice the city's minimum charge and 1'/2 times the rate for
additional charges, such charges to be based upon the regular sewer service charge of similar type
premises or users receiving service from the city within the city limits, except that the maximum charge
specified in subsection 98-91(b)(1) shall not be applicable.
(Code 1967, § 31-65.1; Ord. No. 2209, § 1, 4-14-77; Ord. No. 2426, § 2, 3-9-78; Ord. No. 3824, § 1, 4-12-84; Ord. No. 6836,
§ 2, 10-10-93; Ord. No. 7622, § 2, 2-8-96; Ord. No. 9869, § 6, 9-9-04; Ord. No. 10,704, § 5, 9-13-07)
Sec. 98-93. - Billing; payment; penalty; discontinuance of service.
(a) For convenience of collection, the sewer service charge shall be added to the monthly water bills prepared by
or for the city, and collection of the charge shall be made by the utility billing division at the time of payment
of the monthly water bill covering service to a residence, apartment project, business or other enterprise of
whatsoever nature. Employees or agents of the city shall not accept payment of the water bill from any such
owner, occupant, tenant or lessee without collecting the full amount of the bill, including the sanitary sewer
service charge.
(b) If the sewer service charge is not paid by the due date shown on the customer's water bill, the customer shall
be charged a late charge in the amount of ten percent of the amount of such sewer charge, which shall be
shown as the gross amount on such bill; if not paid by the next billing date, such gross amount will be shown
in arrears on the customer's bill for the next month following. If the total amount of the following month's
sanitary sewer charges, including arrears and current sanitary sewer service, is not paid by the due date
specified on such month's bill, ten percent of the following month's sewer service charge shall be added as a
late charge, and the total of the two months' charges will then be in arrears. A notice will be sent to a
customer showing the total amount due and specifying a cutoff date for the discontinuance of water service
or sewer service. If the account is not paid in full by such cutoff date, the city shall reserve the right to cut off
and discontinue water service and sewer service until all past due charges have been paid, together with
applicable reconnection charges.
(c) A person not connected to the city waterworks system and not owing water service charges will be billed by
the utility billing division for sanitary sewer services on an individual basis.
(Code 1967, § 31-66; Ord. No. 944, § 3, 11-7-68; Ord. No. 1015, § 1, 2-12-70)
Sec. 98-94. - Tapping fees.
(a) The utility billing division shall assess and collect a sewer tap fee of $600.00 for a short side sewer tap and
$650.00 for a long side sewer tap for each and every four -inch sewer tap made within the city limits. All other
taps (six inches and larger) and other special connections shall be made by a plumbing contractor or, at the
city's option, at the estimated actual cost as determined by the utility billing manager with consultation of the
director of utilities.
(b) The owner may, at his option and expense, have any four -inch sewer tap made by a licensed master
plumber. A sewer tap permit shall be obtained by application with the plumbing inspector. No fee will be
charged by the city for such a sewer tap. The sewer tap is subject to inspection by the plumbing inspector
and must be constructed according to the city engineer's specifications for sewer taps.
(c) Any person who taps a sewer line without a permit or in violation of this section shall be punished as
provided in section 1-14.
(d) If a person pays for a sewer tap and fails to have the tap made within one year from the date such tap fee is
paid, the city shall not allow the sewer tap to be made unless the person requesting the tap pays such
additional amount necessary to increase the original payment to the current cost of a sewer tap.
(Code 1967, § 31-67; Ord. No. 944, § 5, 11-7-68; Ord. No. 1015, § 3, 2-12-70; Ord. No. 1752, §§ 3, 4, 2-27-75; Ord. No.
2061, § 1, 8-12-76; Ord. No. 2356, § 1, 10-27-77; Ord. No. 2738, § 3, 9-27-79; Ord. No. 2974, § 2, 9-25-80; Ord. No. 3628, §
2, 5-26-83; Ord. No. 5644, § 3, 9-27-90; Ord. No. 9226, § 2, 9-13-01; Ord. No. 11,308, § 7, 2-25-10)
Sec. 98-95. - Water bypassing sewer system.
A person shall not be charged for sewer service based on water consumption, as delineated in this article, where
such user has a facility not discharging into the city's sanitary sewer system and metered under sections 98-63 and 98-
64.
(Code 1967, § 31-68; Ord. No. 3317, § 2, 2-11-82)
Secs. 98-96-98-125. - Reserved.
EXHIBIT "E"
Amendatory Contract between the City of Houston and the San Jacinto River
Authority
0l
AMENDATORY CONTRACT BETWEEN
SAN JACINTO RIVER AUTHORITY
AND
THE CITY OF HOUSTON, TEXAS
THE STATE OF TEXAS X
X
COUNTY OF HARRIS X
THIS CONTRACT executed as of the,;U-;,..(day of17
1976, by and between the SAN JACINTO RIVER AUTHORITY, ("SJRA") a
conservation and reclamation district and political subdivision
of the State of Texas, and the CITY OF HOUSTON, TEXAS, ("the City")
a municipal corporation:
1.
The provisions of Section VII of the contract between the
parties dated March 27, 1944, shall have no application to sales
of Trinity River raw water by the City to the Baytown Area Water
Authority ("BAWA"), a municipal corporation created by Ch. 600,
p. 641, Sixty -Third legislature, Regular Session, 1973, for the
limited purpose of treating and selling the same as potable treated
water to the City of Baytown and other local governmental entities
for distribution through the municipal water systems of such local
governmental entities, such water to be used for municipal purposes
as defined by Rule 129.01.15001-.041, promulgated by the Texas
Water Rights Commission on December 1, 1975. and for no other pur-
poses, and only within the boundaries of BAWA as such boundaries
exist on the date of this contract; PROVIDED. that no such water
shall be sold, distributed or used other than for residential
household and other strictly domestic purposes within the area
bounded by Interstate Hiehwav No_ 10 on the north_ SinlanApr Rnarl
the part of BAWA to observe the limitations and restrictions
imposed on the City by the contract dated March 27, 1944, as
modified by this contract, and to include covenants in all
sales and contracts for the sale of water by BAWA insuring
compliance with such restrictions and limitations. The word-
ing of the covenants giving effect to such restrictions and
limitations shall be submitted to the General Manager of the
SJRA for approval as to conformity to this paragraph prior to
any sale by the City subject to this contract. The City shall
be responsible for the enforcement of such covenants, but they
shall also be enforceable by SJRA directly.
3.
In the event any water delivered by the City to BAWA
under this contract is used in violation of such restrictions
or limitations, SJRA shall be entitled to recover from the
City as liquidated damages an amount equal to seventy-five
percent (75%) of the consideration or revenue received by the
City for the estimated amount distributed, sold or used in
violation of such restrictions or limitations, plus all liti-
gation expenses and reasonable attorney's fees. The recovery
of such liquidated damages shall be in addition to all other
remedies available to SJRA.
M
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
ri f-v roroiirac navmanP frnm RAWA fnr ..rn*e,- o.,1 a
5.
The contract shall not be assignable by either party
without the written consent of the other; however the obligations
imposed hereunder shall be binding on their successors or assigns
The waiver provided herein shall be applicable only to sales by
the City to BAWA and shall not be applicable to any sale by
the City to any other entity, including any successors or assigne
entity to BAWA, without the written consent of SJRA.
21
Except as amended by this contract and the contracts
between the parties dated July 19, 1955, May 9, 1968 and the
contract dated September 1, 1971, the provisions of the March
27, 1944, contract shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto, acting under the
authority of their respective governing bodies have caused this
contract to be executed on this y day of 197
in duplicate originals, each of which shall constitute an origina
ATTEST:
By lld-e<-ze
Secretary
SAN JACINTO RIVER AUTHORITY
By 40
Vice -P rsPMent
CITY OF HOUSTON
ATTEST: By
..4ja W,
.a r
By
City Secretary
COUNTERSIGNED:
EXHIBIT licit
PLAN OF DEVELOPMENT
This Plan of Development is an important opportunity for the City of Baytown to
participate in the strategic planning of a community within the City's extraterritorial jurisdiction
("ETJ" ). This Plan of Development is intended to further the goals and objectives of the City's
Comprehensive Plan.
I. PROJECT DESCRIPTION
The project is a proposed master -planned community of approximately 119.3 acres
(the "Property"), located in Baytown's ETJ off of FM 1942 within the territory of Harris
County Municipal Utility District No. 555. The community will consist solely of residential
uses, including facilities such as parks, lakes and trails and open space.
II. CURRENT LAND USE
The Property is located in llarris County -- south of FM 1942, west of N. Main
Street, north of East Wallisville Road and east of Garth Road within the City of Baytown's
ETJ.
The Property is currently vacant and unimproved, consisting of flat coastal plain
and small trees. The surrounding vicinity is characterized by mostly vacant tracts of land,
with a few large lot residences.
III. PROPOSED LAND USE
The Property is outside of the City, and as such is not zoned, except as provided in
the Development Agreement. The City's Comprehensive Plan indicates this portion of the
planning area low density residential. The proposed Plan of Development, which is
attached hereto as Figure 1 presents a low -density development with a wide range of
attractive housing in a well-defined neighborhood. The Plan of Development currently
complies and must at all times hereafter comply with the intent of the City's Comprehensive
Plan. Figure 2 illustrates the proposed amenities and beautification plan consisting of an
integrated network of parks, trails and open spaces.
Exhibit "C," Page 1
IV. IMPROVEMENTS
The following improvements will be built in phases during the development of the
project. Any particular phase outlined herein maybe changed if proposed by the Developer
and approved in writing by the Director of Public Works and Engineering prior to the time
of preliminary plat submittal:
a. Water and Sewer Improvements
• Figure 3 illustrates the proposed water line and sewer line improvements
b. Traffic Improvements
• The Developer will prepare a Traffic Impact Analysis ("TIA") for the
Development which may include a traffic signal warrant analysis. The
engineer performing the TIA shall consult with each of the entities having
regulatory authority over the traffic and transportation infrastructure
analyzed in the TIA to establish the scope of the TIA. The TIA may analyze
the proposed development as either a single-phase or multi -phase
development. If the TIA analyzes the development as a single-phase
development, all TIA-required improvements shall be constructed and
operational prior to the construction of any vertical improvements within
the Development. If the TIA analyzes the Development as a multi -phase
development, all TIA-required improvements to serve the analysis phase
shall be constructed and operational prior to the construction of any vertical
improvements within the individual phase boundary. The TIA shall include,
as part of its conclusions and recommendations, an itemized list, by phase,
of all traffic and transportation infrastructure necessary to serve the
proposed development. The TIA will be submitted to TxDOT, Harris
County, the City of Baytown, and any other entity having regulatory
authority over the study area for review and approval. The TIA shall receive
approval prior to the start of construction for any development infrastructure
improvements.
C. Drainage and Detention Improvements
• Figure I illustrates the proposed drainage and detention facilities. A
Drainage Impact Analysis shall be prepared by the Developer and submitted
to Harris County, the City of Baytown, and TxDOT for review and written
approval. The Developer shall be required to comply with the approved
Drainage Impact Analysis. The required detention and drainage facilities
shall be constructed, operational, and approved by the City of Baytown prior
to the construction of any vertical improvements within the District
Property.
d. Amenity, Park and Open Space Connectivity Improvements
• Figure 2 illustrates the community trail improvements connecting the
various amenities, parks, and open spaces within the Property as well as
connecting the same to nearby public parks and trail systems.
Exhibit "C," Page 2
e. Residential Fencing Improvements
• Figure 4 illustrates the 8-foot (8') high stained, cap and rail residential
fencing improvements with masonry columns to be included, spaced at a
minimum of every 200' to be installed along the perimeter of all single-
family residential lots bordering FM 1942.
• Figure 4 also illustrates the 6-foot (6') high stained, cap and rail residential
fencing improvements to be installed along all single-family residential lots
bordering the internal collector.
Figures 1 through 7 are attached hereto and incorporated herein for all intents and purposes.
The Developer shall be required to develop the Property in accordance with Figures 1 through 7
as well as all provisions of this Exhibit "C." It is expressly understood and agreed, however, that
(i) the attached figures depict the minimum improvements which must be constructed, (ii) the
standards stated herein constitute the minimum standards which must be satisfied, and (iii) the
ultimate construction of the improvements shall, at a minimum, be in compliance with the
requirements of the City of Baytown as if the Property were located within the corporate limits,
within the zoning districts designated in Exhibit "D," unless expressly varied pursuant to the
Development Agreement, and the requirements of Harris County. If there is a conflict between
the Figures 1 through 4 and the terms of the Code of Ordinances, the Code of Ordinances shall
apply unless specifically varied pursuant to the Development Agreement.
Exhibit "C," Page 3
EXHIBIT "D"
DENSITY, LAND USES AND DEVELOPMENT STANDARDS
Unified Land Development Code. The land uses within the Property shall be governed by
the standards and requirements of the City's Unified Land Development Code ("ULDC"),
as hereinafter amended and as revised herein, as if the Property was within the corporate
limits of the City in the following zoning districts, as more particularly depicted and
described in the Plan of Development:
Residential Zoning District:
(1) Mixed Residential At Low To Medium Densities ("SF2")
Definitions. The following capitalized terms and phrases used in this Agreement shall have
the meanings set forth below and are in addition to those set forth in the ULDC:
Density. The Property shall be developed in accordance with the Plan of
Development and the Unified Land Development Code as amended herein. The total
number of single-family residential housing units within the area designated for single-
family use in the Plan of Development shall not exceed 450 units.
4. Land Uses.
a. Permitted Uses. The land uses allowed within the applicable residential zoning
districts as noted in the Plan of Development shall comply with the standards set
forth in the ULDC unless specified differently below:
i. Residential Use Table:
USES SF2 OR
Private Open Space P P
Private Recreation Space P P
Sports Courts P P
ii. Residential Accessory Use Table:
USES
Private Open Space
SF2
P
OR
P
Private Recreation Space
P
P
Sports Courts
P
P
Community Building
P
b. Prohibited Uses. It is expressly understood and agreed that the following uses shall
be prohibited:
Exhibit "D," Page 1
all non-residential uses and accessory uses, and
ii. the following residential uses and accessory uses:
1. Agriculture,
2. Manufactured home,
3. Industrialized home,
4. Multifamily dwelling,
5. Single-family attached, and
6. Two-family dwelling duplex.
5. Single -Family Residential, Amenities and Park Standards.
a. Property Development Standards. The minimum property development standards
shall comply with the standards set forth in the ULDC unless specified differently
below:
*The minimum front building setback for front -loading garages is 25', except that any radial, cul-
de-sac lot may allow 20' front building setback for front -loading garages. 15' setback is allowed for
side loaded garage.
(1) Landscape Requirements. Each single-family detached home shall have a
minimum of (i) two front yard trees, each with a minimum caliper size of 3
inches and a minimum height of 8 feet, (ii) two 10-gallon shrubs, (iii) ten
5-gallon shrubs, and (iv) fifteen 1-gallon shrubs/plants.
(2) Lot Grading. Residential lots will have Type A grading.
b. Property and Building Design Standards. All residential buildings shall comply with
the masonry, architectural and design standards of Sections 3.11 and 3.115 of the
ULDC, and as modified hereinbelow.
(1) Masonry. All single-family homes shall have a minimum of 70% masonry
covering all exterior walls, exclusive of doors and windows. All sides of a
single-family along a right-of-way must have 100% masonry for the first
floor, exclusive of doors and windows.
(2) Spacing and Repetition of Plans and Materials. Floor plans and exterior
elevations shall be complementary in architectural design and materials, and
compatible with neighboring structures. Spacing and repetition of floor
plans and exterior elevations must be separated by a minimum of.
Same floor plan, same exterior elevation, same or opposite side of
street — 5 lots separation;
Exhibit "D," Page 2
ii. Same floor plan, different exterior elevation, opposite side of the
street — 2 lots separation; and
iii. Same floor plan, different exterior elevation, same side of street - 3
lots separation.
(3) Recessed Entries and Articulation. In addition to the architectural standards
in Section 3.11 (b) of the ULDC, the articulation on the front facade,
exclusive of the front entry, shall be at least 12 inches.
6. Amenities and Parks.
a. The proposed pocket parks, open spaces, recreation areas, trails, landscaping and
identity features are shown in Figure 2. The Developer agrees to dedicate to the
Residential Homeowner's Association for ownership and maintenance, a minimum
of 2.2 acres of reserves, parkland and open space as set forth in Figure 2.
b. The Developer will provide one location for a recreation area, which will be built
as part of the first phase of the residential development. The recreation area will
serve the residential community and provide the following features:
a. Playground Equipment (including nature play areas);
b. Covered Area and Picnic Tables; and
C. Trails as shown in Figure 2.
C. Trails will consist of a minimum 5'-wide sidewalk path as detailed in Figure 2;
provided that the trails along FM-1942 shall consist of a minimum of 8'-wide
sidewalk as detailed in Exhibit 2.
d. Amenities along trails - - Benches and landscaping will be provided along the
proposed trails as shown in Figure 5.
e. Playground will be designed and constructed to be inclusive for all levels of ability
and to meet ADA requirements.
7. Recreation Area. The Developer shall provide at least 100 square feet of restricted,
landscaped and maintained outdoor recreation or open space for each single-family
detached unit within the residential subdivision(s). Recreation or open space must be
deeded to the Residential Homeowner's Association for ownership and perpetual
maintenance. The square footage of (i) the landscaping in the right-of-way and (ii) the
restricted open space reserves of less than 1,500 square feet shall not be counted towards
the minimum outdoor recreation or open space square footage requirement. Landscaped
detention facilities and landscaped reserves adjacent to the rights -of -way may not count
towards this requirement.
8. Fees. The Developer shall be required to pay to the City fees equal to 125° o of those
specified in Section 2-595 of the Code of Ordinances, Baytown, Texas in effect when
due.
Exhibit "D," Page 3
9. Perimeter Landscaping, Screening, and Fencing. The perimeter of the Property adjacent
to FM 1942 will be landscaped and screened with trees, shrubbery and other plants in a
manner consistent with and complementary to the overall landscaping for the Property.
The perimeter fencing of the Property will comply with the City of Baytown Code of
Ordinances and Section IV.e of Exhibit C. Prior to the development of a phase of the
Plan of Development, the Developer will submit a landscaping plan for that development
phase to the City for its written approval. The Developer will develop the Property in
accordance with the approved landscaping plan. The perimeter fencing of the Property
is detailed in Figure 4. Such plan shall include the following items:
a. Along FM 1942 frontage and all collectors — 6-inch caliper trees planted no further
than 30 feet apart with irrigation. Tree Species will be an approved species as set
forth in Section 11 below.
b. Landscaped areas will include automated irrigation systems and will be maintained
by a Residential Homeowner's Association.
10. FM 1942 Screening for Single Family Residential. The Developer will provide a 35'
vegetative buffer and fencing in accordance with section IV.e of Exhibit C. The
vegetative buffer shall meet the planting requirements in section 18-1206 of the City of
Baytown Code of Ordinances for freeway streetscapes.
11. Landscaping. The Developer will comply with the City of Baytown Code of Ordinances.
The Developer will submit a tree preservation plan to the City for approval. The
Developer will develop the Property in accordance with the approved tree preservation
plan. Tree Species may only include the following, unless otherwise approved in
advance in writing by the Director of Planning and Development Services:
• American Elm
(Ulmus americana)
• Lacebark Elm
(Ulmus parvifolia)
• Southern Magnolia
(Magnolia grandiflora)
• Live Oak
(Quercus virginiana)
• American Holly
(Ilex opaca)
• Montezuma Cypress
(Taxodium
mucronatum)
• Eastern Redcedar
(Juniperus virginiana)
• Common Crapemyrtle
(Lagerstroemia indica)
• Waxmyrtle
(Myrica cerifera)
• Yaupon
(Ilex vomitoria)
• Little Gem Magnolia
(Magnolia grandiflora)
• Sweetbay Magnolia
(Magnolia virginiana)
• Foster Holly
(Ilex x attenuata 'Fosteri')
• Flowering Dogwood
(Comus florida)
• Nellie Stevens Holly
(Ilex x)
Exhibit "D," Page 4
12. Infrastructure.
a. Block length will comply with the City of Baytown Code of Ordinances, as shown
on Figure 1.
b. Local and collector street widths and design will comply with Chapter 109 of the
City of Baytown Code of Ordinances.
C. All street lighting and signs, including the entry monument and wayfinding signs,
will comply with the City of Baytown Code of Ordinances and shall be erected as
shown on Figure 6. The monument signs must be constructed during the first phase
of development and located outside the public right-of-way.
d. Franchise utilities will be underground. The Developer will work with the power
company to place overhead power along FM 1942 and not within the development.
Exhibit "D," Page 5
EXHIBIT "E"
PLATTING AND SUBDIVISION DESIGN STANDARDS
Platting. The Developer shall be required to plat any subdivision of the Property in
accordance with Chapter 126 of the Code of Ordinances, Baytown, Texas, as amended (the
"City's Subdivision Ordinance"). The subdivision plat shall be subject to review and
approval by the Planning and Zoning Commission in accordance with those requirements
and procedures and planning standards of the City's Subdivision Ordinance and this
Agreement.
Subdivision Design. The Developer agrees to comply with the minimum design standards
in the City's Subdivision Ordinance as modified herein. The modifications shall be only to
the extent indicated hereinbelow.
a. The definition of "outdoor living area" contained in Article I "In General," Section
126-1 "Definitions" of the Subdivision Ordinance is modified for purposes of this
Agreement to read as follows:
ARTICLE I. IN GENERAL
Sec. 126-1. Definitions.
Outdoor living area means a common outdoor area designed to provide a
more pleasant and healthful environment of the occupants of a dwelling unit and
the neighborhood in which such dwelling unit is located. It includes natural ground
areas, patios, terraces, detention areas or similar areas developed for active or
passive recreational activities. Such outdoor living areas shall be owned and
maintained by either a Residential Homeowner's Association, or the District. For
detention areas to qualify as outdoor living areas they must be developed with
trails, benches, landscaping or similar improvements to make them considered
assets to the neighborhood.
b. Article II "Administration," Division 2 "Lot Consolidation and Lot Line
Adjustment," Section 126-68 "Lot line adjustment requirements," Subsection (c) of
the Subdivision Ordinance is modified for purposes of this Agreement to read as
follows:
ARTICLE H. ADMINISTRATION
DIVISION 2. LOT CONSOLIDATION AND LOT LINE ADJUSTMENT
Sec. 126-68. Lot line adjustment requirements.
(c) The lot line adjustment shall not be more than a maximum of five feet from
the existing lot line.
Exhibit "E," Page 1
C. Article III "Developments," Division 5 "Private Subdivision Development" of the
Subdivision Ordinance shall be allowed on land within the Property following the
SF2 zoning requirements as applicable pursuant to the Plan of Development and in
compliance with the property standards of this Development Agreement. All utility
systems shall comply with the requirements of this division and any other
applicable regulations as defined in the Development Agreement. Water, sanitary
sewer, and storm sewer systems within a private subdivision shall be dedicated to
the District and maintained by the District in the same manner as its other water,
sanitary sewer, and storm sewer systems.
d. Article III "Developments," Division 5 "Private Subdivision Development" Section
126-436 "Lot size" of the Subdivision Ordinance is modified for purposes of this
Agreement as follows:
ARTICLE III. DEVELOPMENTS
DIVISION 5. PRIVATE SUBDIVISION DEVELOPMENT
Sec. 126-436. Lot size.
All development within a private subdivision shall be in conformance with
the SF2 categories pursuant to the Plan of Development and shall be regulated by
Article 3 of the Development Agreement
e. Article IV "Improvements," Division 1 "Generally" Section 126-460 "Sidewalks"
of the Subdivision Ordinance is modified for purposes of this Agreement as
follows:
ARTICLE IV. IMPROVEMENTS
DIVISION 1. GENERALLY
Sec. 126-460. Sidewalks.
Sidewalks conforming to the requirements of the Development Agreement
shall be constructed along all roadways abutting property within the platted area.
f. Article IV "Improvements," Division 2 "Design Standards," Subdivision III "Lots,"
Section 126-551 "Minimum sizes" of the Subdivision Ordinance is modified for
purposes of this Agreement as follows:
ARTICLE IV. IMPROVEMENTS
DIVISION 2. DESIGN STANDARDS
SUBDIVISION III. LOTS
Exhibit "E," Page 2
Sec. 126-551. Minimum sizes.
The minimum size of lots shall comply with the modifications to the
ULDC included in the Development Agreement.
Article IV "Improvements," Division 2 "Design Standards," Subdivision III "Lots,"
Section 126-554 "Building lines" of the Subdivision Ordinance is modified for
purposes of this Agreement as follows:
Sec. 126-554. Building lines.
The building lines shall comply with the modifications to the ULDC
included in the Development Agreement; provided that the minimum street -side
setback shall be 10 feet.
11. Article IV "Improvements," Division 2 "Design Standards," Subdivision III "Lots,"
Section 126-551 "Minimum sizes" of the Subdivision Ordinance is modified
consistent with this Agreement.
Exhibit "E," Page 3
EXHIBIT "F"
DEVELOPMENT OBLIGATIONS
The Developer shall have the following development obligations pursuant to this Agreement and
all construction referenced herein shall be constructed in conformance with the City's engineering
and design criteria, specifications, and standards and are subject to the city engineer's review and
approval:
1. Water Improvements.
a. The Developer agrees to tie into the existing 12" water main located on Garth Road
as shown in Figure 3 of the Plan of Development. The Developer will dedicate one
or more utility easements along the Property for the water distribution line and will
install the water line within such easement(s). The Developer will construct a potable
water distribution system within the Property in accordance with the City's
engineering and design criteria, specifications, and standards. This internal system
shall be owned, maintained and operated by the District. The City may determine that
the District's water facilities should be sized to serve areas outside the Property, as
well as land within the Property. The Developer hereby agrees that, in conjunction
with the Developer's design and construction of the water distribution system as
described in this Agreement, the District shall cooperate with the City to include such
oversized facilities as requested by the City in accordance with the cost -sharing
provisions of Section 114-69(a) of the Code of Ordinances, Baytown, Texas.
b. The District will pay a water impact fee as described in the Water Supply Agreement
between the District and the City.
2. Roadway & Sidewalk Improvements._ Except as modified herein, Developer agrees to
comply with (i) the City's minimum design standards for streets and sidewalks in
accordance with the Code of Ordinances, Baytown, Texas, including, but not limited to,
Chapter 122 of the Code of Ordinances, Baytown, Texas.
a. Roadway Improvements will be designed and constructed in four phases as shown
in Figure 7.
• The Developer will prepare a Traffic Impact Analysis (TIA) for the
Development which may include a traffic signal warrant analysis. The
engineer performing the TIA shall consult with each of the entities having
regulatory authority over the traffic and transportation infrastructure
analyzed in the TIA to establish the scope of the TIA. The TIA may analyze
the proposed development as either a single-phase or multi -phase
development. If the TIA analyzes the development as a single-phase
development, all TIA-required improvements shall be constructed and
operational prior to the construction of any vertical improvements within
the Development. If the TIA analyzes the Development as a multi -phase
development, all TIA-required improvements to serve the analysis phase
shall be constructed and operational prior to the construction of any vertical
Exhibit'T." Page t
improvements within the individual phase boundary. The TIA shall include,
as part of its conclusions and recommendations, an itemized list, by phase,
of all traffic and transportation infrastructure necessary to serve the
proposed development. The TIA will be submitted to TxDOT, Harris
County, the City of Baytown, and any other entity having regulatory
authority over the study area for review and approval. The TIA shall receive
approval prior to the start of construction for any development infrastructure
improvements.
b. Sidewalks adjacent to major thoroughfares and collectors, and within restricted
reserves shall have a width of not less than five feet. Sidewalks in the front and side
yards of single-family residences and within restricted reserves adjacent to local
streets shall have a minimum width of five feet.
3. Open Space and Recreation Facilities.
a. The Developer hereby agrees to dedicate to the Residential Homeowner's
Association a minimum of 2.2 acres of reserves, parkland and open space
(collectively, the "Open Space") and the Residential Homeowner's Association shall
be responsible for the perpetual ownership and maintenance of the Open Space.
b. Private park and recreational facilities available only to residents of the Property
will be conveyed to the Residential Homeowner's Association for ownership and
operation, and shall not be the responsibility of the City in the event the City
dissolves the District.
4, Storm Water Detention Facilities. The Developer agrees to comply with the minimum
design standards of Harris County, Region 3. Harris County shall be the floodplain
administrator. Upon completion, the storm water detention facilities shall be deeded to the
District for ownership and maintenance. The storm water detention facilities shall remain
the responsibility of the District and/or the Residential Homeowner's Association. Slab on
grade construction is permitted so long as the slab is elevated at least 24 inches above the
base flood elevation.
5. Off -Street Parking. The Developer agrees to comply with the minimum design standards in
the City's Off -Street Parking Ordinance contained in Section 112 of the Code of Ordinances,
Baytown, Texas, as amended herein. Detached single-family homes shall have a minimum
of two enclosed covered parking spaces and two off-street parking spaces per dwelling unit.
All other uses shall comply with Chapter 112 of the Code of Ordinances, Baytown, Texas.
Exhibit " F," Page 2
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