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R-13-08-08-G7 - 8/8/2013RESOLUTION NO. R -13-08-08-G7 WHEREAS, the City of Round Rock ("City") has previously entered into that certain Wholesale Water Supply and Wastewater Collection and Treatment Agreement ("Original Agreement") with R&R Mobile Joint Venture ("R&R"); and WHEREAS, City and R&R desire to amend and restate the terms and conditions of the Original Agreement, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City a First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement with R&R Mobile Joint Venture, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 8th day of August, 2013. ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA L. WHITE, City Clerk 0112/1304'; 00279313 EXHIBIT FIRST AMENDED AND RESTATED WHOLESALE WATER SUPPLY AND WASTEWATER COLLECTION AND TREATMENT AGREEMENT BETWEEN THE CITY OF ROUND ROCK, TEXAS AND R&R MOBILE JOINT VENTURE STATE OF TEXAS KNOW ALL MEN AT THESE PRESENTS: COUNTY OF WILLIAMSON This First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement ("Agreement") is made and entered into as of the day of 2013 by and between the City of Round Rock, Texas ("City"), a home rule city located in Williamson County, Texas and R&R Mobile Joint Venture ("R&R"), a Texas joint venture. RECITALS Whereas, the City and R&R have previously entered into that certain Wholesale Water Supply and Wastewater Collection and Treatment Agreement ("Original Agreement") effective January 27, 2000, and Whereas, the City and R&R desire to amend and restate the terms and conditions of the Original Agreement, Now therefore, for and in consideration of the premises and mutual obligations and benefits herein contained, the City and R&R hereby agree as follows: ARTICLE I Definitions 1.01 In addition to the terms defined in the preceding paragraphs of this Agreement, the following terms, when used in this Agreement, have the following meanings: a. "Agreement" means this First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement. b. "BRA" means the Brazos River Authority. c. "City Code" means the Code of Ordinances (2010 Edition) of the City of Round Rock, as amended. d. "Commission" means the Texas Commission on Environmental Quality, or its successor agency. e. "Director" means the Director of the City's Water and Wastewater Utility. a0d0afOc-a9fd-4c3 c-a817-646afe8ce720.DOCX f. "EPA" means the United States Environmental Protection Agency. g. "Force Majeure" means acts of God, strikes, lockouts, or other industrial disturbances; acts of a public enemy; orders of the government of the United States or the State of Texas or any civil or military authority other than the Parties; insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, and droughts; restraint of government and people; civil disturbances; explosions, breakage or accidents to machinery, pipelines, or canals or other causes not reasonably within the control of the party claiming the inability. h. "Impact Fees" means the amount charged by the City pursuant to Chapter 395 of the Local Government Code to pay for a portion of the capital costs of the City's Water System and Wastewater System necessary to provide Water and Wastewater collection, treatment, and disposal services to R&R. i. "Manufactured Home" means a HUD -code manufactured home constructed after June 15, 1976. J• "Mobile Home" means a structure that was constructed before June 15, 1976, transportable in one or more sections, which in the traveling mode is eight body feet or more in width and 40 body feet or more in length, and which is built on a permanent chassis and designed to be used as a dwelling. k. "Ordinances" means City ordinances, as amended from time to time. 1. "Original Agreement" means the Wholesale Water Supply and Wastewater Collection and Treatment Agreement entered into between the parties dated effective January 27, 2000. m. "Point(s) of Entry" means the one or more locations at which Wastewater passes through a manhole and enters the City's Wastewater System. n. "Point(s) of Delivery" means the one or more locations at which water passes from the City's Water System through a master meter and thereafter is owned and controlled by R&R. o. "R&R Service Area" means that area within R&R's Certificate of Convenience and Necessity, a copy of which is attached hereto as Exhibit A. P. 9. "R&R Water Facilities" means all water facilities located on the downstream side of the Point(s) of Delivery. "R&R Wastewater Facilities" means all Wastewater facilities located on the upstream side of the Point(s) of Entry. -2- r. "Recreational Vehicle" means a unit designed as temporary living quarters for recreational, camping or travel use that has a body width not exceeding eight feet and a body length not exceeding 40 feet. s. "Service Unit" means a standardized measure of the consumption of Water and the production of Wastewater by a typical single-family residential unit. It has been determined by the City that each "Service Unit" consumes 450 gallons per day of Water and produces 350 gallons per day of Wastewater. t. "Significant Industrial User" has the meaning set forth in 40 CFR §403.3(t). u. "Wastewater" means liquid and water carried waste discharged from sanitary conveniences of dwellings, businesses, buildings, institutions, industries and the like including garbage which has been shredded to such a degree that all particles will be carried freely under flow conditions normally prevailing in public sewers, with no particle greater than one-half (1/2) inch in any dimension and the liquid wastes from industrial processes, and includes any infiltration water that has migrated from the ground into the R&R Wastewater Facilities. v. "Wastewater Impact Fee' means the wastewater impact fee as established in § 44.32 of the City Code, as amended from time to time w. "Wastewater System" means the City's wastewater collection system and the Brushy Creek Regional Wastewater Treatment Plant owned by the cities of Austin, Cedar Park, and Round Rock and operated by the BRA. x. "Water" means potable water suitable for use for domestic and municipal uses and meeting the requirements of the Commission for public consumption. y "Water Impact Fee" means the water impact fee as established in § 44.32 of the City Code, as amended from time to time. z. "Water System" means the City's water treatment and distribution system. aa. "Winter -Averaging Period" means the consecutive months of December, January, and February, unless another winter -averaging period is approved by the City Council of the City. bb. "Winter Average Usage" means R&R's monthly average Water usage during the preceding Winter -Averaging Period. ARTICLE II Service Units and Land Uses 2.01 Service Units. Pursuant to the terms of the Original Agreement, R&R has previously paid Water Impact Fees and Wastewater Impact Fees for and is entitled to connect 230 Service Units to the City's Water System and Wastewater System. - 3 - 2.02 Land Uses. The primary land uses within the R&R Service Area are currently mobile homes, manufactured homes and recreational vehicles. However, it is anticipated that in the future, there may be single family detached homes, as well as commercial and/or industrial uses within the R&R Service Area. 2.03 Allocation of Service Units. For the purposes of this Agreement, the 230 Service Units previously purchased by R&R will be allocated to the various land uses in the R&R Service Area as follows: a. Single Family Detached 1.0 Service Unit b. Manufactured Home/Duplex/Condominium 0.7 Service Unit c. Apartment Unit 0.5 Service Unit d. Recreational Vehicle 0.4 Service Unit All other land uses will be allocated Service Units based on the size and type of water meter servicing such land use in accordance with § 44-32(e) of the City Code. 2.04 Record of R&R's Customers by Land Use. Attached hereto as Exhibit B is a complete list of all of R&R's current customers, as of April 1, 2013, shown by address, land use, and allocated Service Units. R&R agrees to provide the City with an updated list whenever any of the information thereon changes. 2.05 Purchase of Additional Service Units. In the event that R&R utilizes all of its 230 Service Units, it may request to purchase additional Service Units. Such additional Service Units shall be subject to the payment of the then current Water Impact Fees and Wastewater Impact Fees. The City will endeavor to provide such additional Service Units, but cannot guarantee that they will be available when requested by R&R. ARTICLE III Water Service 3.01 Delivery and Supply of Water. The City shall deliver and sell Water to R&R, for residential and commercial uses only, from the City's Water System. The City presently has and will maintain an adequate Water supply with which to meet R&R's current and future needs, but is not obligated to provide service for more than 230 Service Units. The City will make a reasonable effort to obtain an additional supply of Water to serve any additional future needs of R&R beyond the 230 Service Units. R&R agrees that the supply of Water to R&R may be reasonably limited by the City on the same basis and to the same extent as the supply of Water to other customers within the City. 3.02 Compliance with Conservation Ordinances. R&R shall require its retail customers to comply with the City's water protection and conservation ordinances, as amended from time to time. -4- 3.03 Sole Source of Water. The City shall be the sole source of non -irrigation water to R&R and R&R shall not seek to develop its own wells for uses other than irrigation, unless the City is unable to provide Water service as contemplated in this Agreement or is unable to provide additional service capacity in excess of 230 Service Units when requested by R&R. R&R may provide irrigation water from its own well(s), but R&R may not connect its irrigation water system to the Water distribution system that delivers the City's Water to retail customers within the R&R Service Area or to the Wastewater collection system within the R&R Service Area. 3.04 Quantity of Water Service. The quantity of Water service delivered by the City shall be measured by master meters at all Point(s) of Delivery. Regardless of anything contained herein to the contrary, the number of Service Units for Water service provided herein is limited to no more than 230, unless this Agreement is amended in writing by the parties. City agrees to provide Water in quantities sufficient to meet the minimum standards established by the Texas Commission on Environmental Quality for the 230 Service Units at the Point(s) of Delivery. 3.05 Water Pressure. City agrees to provide the minimum water pressure required for the 230 Service Units by the Texas Commission on Environmental Quality at the Point(s) of Delivery. City shall have no obligation to provide water pressure beyond the Point(s) of Delivery. 3.06 Backflow Prevention Devices. R&R agrees to install, at its sole cost, at each Point of Delivery, a backflow prevention device of a size, design, location, configuration and capacity as approved by the Director. 3.07 Water Service Rates and Procedures. The City shall charge and R&R shall pay the City, for Water service received at the applicable wholesale water rate and under the billing, payment, collection and disconnect procedures as established by the City Council and as amended from time to time. The initial rate for Water under this Agreement will be $1.90 per 1000 gallons of Water metered at the Point of Delivery plus a monthly demand charge of $850.00. The City will notify R&R at least 60 days before any rate increase for R&R becomes effective. Any increase in rate for R&R must be based upon an increase in the actual cost of service as determined by a rate study using standard methodologies. The rate study must be provided to R&R at least 30 days before the rate increase is adopted. 3.08 Metering Equipment. R&R, at its sole expense, shall install and maintain at the Point(s) of Delivery the necessary metering equipment and required devices of standard type to measure properly the quantity of Water delivered to R&R. Once installed, the meters shall be owned by the City. From time to time the City shall have the option of calibrating the meters at its cost. A meter registering not more than three percent (3%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate and the statement of charges for Water delivered to R&R shall be corrected for the three months previous to such test in accordance with the percentage of inaccuracy found by such test. If the meter fails to register for any period, the amount of Water furnished during such period shall be deemed to be the amount of Water delivered in the corresponding period immediately prior to the failure adjusting for seasonal differences, unless the City and R&R shall agree upon a - 5 - different amount. The metering equipment register shall be read on or about the first day of each month during normal business hours. 3.09 Consumption Record. The City shall keep accurate records of all readings from the meters installed pursuant to Section 3.08 above for a minimum of three years. These records shall be subject to inspection by R&R at reasonable times and places. R&R shall read the meters daily and provide such readings to the City on a monthly basis. 3.10 Point of Delivery. The initial Point of Delivery has previously been determined by the City and R&R and it shall be at the discharge side of the meters installed by R&R pursuant to Section 3.08 above on the existing City Water System. One or more additional Point(s) of Delivery may be constructed by mutual consent of the parties. Upon passing through the meter at the Points of Delivery, the Water becomes the property of R&R. 3.11 Ownership of R&R Water Facilities. Ownership of the R&R Water Facilities shall remain in R&R, which shall be responsible for the repair, maintenance, and replacement of said Facilities. R&R will maintain R&R's Water Facilities in compliance with all federal, state and local regulations so that adverse impacts on the health, safety and welfare of the customers of the system and waste are minimized After providing R&R with 24 hours prior notice, City may enter R&R's property and to inspect R&R's.Water Facilities at all reasonable times. R&R's failure to so maintain the R&R Water Facilities as provided in this paragraph is a default under this Agreement. ARTICLE IV Wastewater Service 4.01 Collection and Treatment of Wastewater. The City will collect, transport and treat Wastewater generated by customers within the R&R Service Area and delivered to the City's Wastewater System. The City presently has and will maintain adequate Wastewater collection, treatment and disposal facilities with which to meet R&R's current and future needs, but is not obligated to provide Wastewater Service for more than 230 Service Units. The City will make a reasonable effort to obtain an additional supply of Water to serve any additional future needs of R&R beyond the 230 Service Units. 4.02 Sole Source of Wastewater Services. The City shall be the sole source of Wastewater services to R&R and R&R shall not seek to develop its own Wastewater service, unless the City is unable to provide Wastewater service as contemplated in this Agreement or is unable to provide additional service capacity in excess of 230 Service Units when requested by R&R. 4.03 Quantity of Wastewater Service. Regardless of anything contained herein to the contrary, the number of Service Units for Wastewater service provided herein is limited to no more than 230, unless this Agreement is amended in writing by the parties. 4.04 Wastewater Service Rates and Procedures. The City shall charge and R&R shall pay the City for Wastewater service provided at the applicable wholesale Wastewater service rate and under the billing, payment, collection and disconnect procedures as established by the -6- City Council and as amended from time to time. The initial rate for Wastewater service provided under this Agreement shall be $3.90 per 1,000 gallons of Wastewater delivered. The amount of Wastewater delivered each month shall be equal to R&R's Winter Average Usage or its actual Water consumption, whichever is less. The City will notify R&R at least 60 days before any rate increase for R&R becomes effective. Any increase in rate for R&R must be based upon an increase in the actual cost of service as determined by a rate study using standard methodologies. The rate study must be provided to R&R at least 30 days before the rate increase is adopted. 4.05 Determining Winter Average Usage. R&R's Winter Average Usage shall be calculated by taking R&R Service Area's total water usage during the Winter Averaging Period, and then dividing said total water usage by the number of months in the Winter Averaging Period to obtain R&R Service Area's Winter Average Usage. 4.06 Point of Entry. The initial Point of Entry has previously been determined by the City and R&R. One or more additional Point(s) of Entry may be constructed by mutual consent of the parties. Upon passing through the Point(s) of Entry, the Wastewater becomes the property of the City. 4.07 Ownership of R&R Wastewater Facilities. Ownership of the R&R Wastewater Facilities shall remain in R&R, which shall be responsible for the repair, maintenance, and replacement of said Facilities. R&R will maintain R&R's Wastewater Facilities in compliance with all federal, state and local regulations so that adverse impacts on the health, safety and welfare of the customers of the system and waste are minimized After providing R&R with 24 hours prior notice, City may enter R&R's property and to inspect R&R's Wastewater Facilities at all reasonable times. R&R's failure to so maintain the R&R Wastewater Facilities as provided in this paragraph is a default under this Agreement. Article V Wastewater Quality 5.01 Wastewater Quality. R&R shall deliver Wastewater into the Wastewater System meeting the requirements of quality as set forth in this Article and not containing wastes identified in the List of Inadmissible Wastes attached as Exhibit C of this Agreement. a. General Requirements. In order to properly treat and dispose of R&R's Wastewater, to protect the public health, and to permit cooperation with other agencies which have requirements for the protection of the physical, chemical, and bacteriological quality of public water and watercourses, R&R agrees to prohibit discharges into its own collection system at unauthorized points of entry or at rates of flow or of quality not herein specified as admissible. b. Admissible Wastes. Discharges into the Wastewater System by R&R shall consist only of waste which the Wastewater System is designed to treat and process: -7- (i) so that the effluent and sludge from the Wastewater System meets the legal standards of the EPA, the Commission or any governmental body having legal authority to set standards for such effluents; (ii) without causing damage to the System which would result in increased maintenance costs; (iii) without causing excessive treatment costs; and (iv) which meets the requirements of the EPA Pretreatment Regulations, 40 CFR Part 403, City's applicable rules and the EPA -approved pretreatment program for the Wastewater System. c. Inadmissible Wastes. A List of Inadmissible Wastes is attached hereto as Exhibit C. EPA and the Commission periodically modify standards on prohibited discharges; therefore, revisions to, additions to or deletions from the items listed in this Section will become necessary to comply with these latest standards. It is the intention of this Agreement that prohibited discharge requirements be reviewed periodically by the City and that Exhibit C be revised by the City in accordance with the latest standards of EPA, the Commission or federal or state agency having regulatory authority over the discharges made to the System. Exhibit C may also be revised on the basis of changes in the treatment process or the general character of Wastewater received at the Wastewater Treatment Plant from R&R or indicated in the monitoring data related to R&R's discharges collected pursuant to the system pretreatment program. Any required revisions shall be made by the City only after notice and opportunity to comment has been provided to R&R and shall become effective upon written notice thereof being given to R&R. R&R shall be responsible for integrating such changes into its local sewer use regulations and notifying all affected users of the change. 5.02 Regulations. Discharges to the Wastewater System shall be governed by the requirements set forth in the EPA pretreatment regulations, Commission pretreatment regulations, the List of Inadmissible Wastes, the Wastewater System pretreatment program and R&R's regulations. Periodically, the City will promulgate a new List of Inadmissible Wastes, Exhibit C of this Agreement, in response to changes in federal or state requirements, changes in the treatment process, or the general character of the Wastewater received at the Wastewater System's treatment plant. The List of Inadmissible Wastes will contain pollutant allocations to R&R. R&R is responsible for developing specific local limits from the pollutant allocations and enforcing these limits through R&R's regulations and sewer use permits. Notwithstanding any provision in this Agreement to the contrary, R&R is subject to the same quality requirements that apply to the City, subject to R&R having received notice and opportunity to comment on any changes as required under Section 5.01. 5.03 Industrial Wastes. R&R agrees to implement and enforce the Wastewater System pretreatment program for all areas receiving sanitary sewer service from R&R. R&R also covenants that it will have in effect and will enforce sewer use regulations in accordance with -8- EPA and Commission regulations or regulations of other governmental agencies having lawful jurisdiction to set standards for waste discharges. Furthermore, R&R shall, at any reasonable time upon request by City, produce pretreatment program records for review. 5.04 Significant Industrial Users. R&R also agrees that no new Significant Industrial User shall be allowed to connect to R&R's sewer system without prior notification being given by R&R to City of the intent to connect. R&R will provide City with a copy of the draft sewer use permit and permit application at the time such notification is given. All Significant Industrial Users that are customers of R&R will also be required to obtain a sewer use permit. 5.05 Title to and Responsibility for Treatment and Disposal of Wastewater. Title to and responsibility for the reception, transportation, delivery and disposal of all Wastewater discharged hereunder shall remain with R&R to the Point(s) of Entry, and upon passing through the Point(s) of Entry, title to and responsibility for the Wastewater shall pass to City, and City shall be responsible for the proper reception, transportation, treatment, disposal and/or reuse of all such Wastewater, meeting the applicable quality standards, received by it at the Point(s) of Entry. Responsibility for proper reception, transportation, treatment and disposal of Wastewater received by City at the Point(s) of Entry which does not meet the applicable quality standards shall remain with R&R and any expenses incurred by City in receiving, transporting, treating and disposing of such non-compliant Wastewater shall be charged directly to R&R by City, upon demonstrating that such Wastewater was delivered by R&R. ARTICLE VI Maintenance and Repair of Wastewater System 6.01 Inflow and Infiltration. R&R agrees to use reasonable efforts to maintain and repair R&R's collection system to minimize inflow and infiltration into the Wastewater System. Reasonable efforts shall include, but are not limited to, inspecting all of R&R's collection lines with a video camera at least every five years. R&R shall provide the City with a copy of all reports and data obtained from the video camera inspection. R&R shall promptly take steps to repair any problems that are resulting in inflow and infiltration into R&R's system. 6.02 Inspection. In addition to the foregoing, R&R agrees to allow the City to inspect R&R's collection system to assure that inflow and infiltration is minimized. This inspection shall include the right to video the collection system at any time deemed necessary by the City. 6.03. Repairs and Maintenance. If R&R fails or refuses to perform such needed repairs or maintenance within 30 days of said notice, then the City shall have the right to perform such repairs or maintenance. In that event, the City will add the cost of such repairs or maintenance to R&R's monthly bill and R&R will be responsible for the prompt payment of same. -9- ARTICLE VII Miscellaneous 7.01 Force Majeure. If, by reason of Force Majeure, a party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, such party will give written notice and the full particulars of such Force Majeure to the other party within a reasonable time after occurrence of the event or cause relied upon, and the obligation of the party giving such notice, to the extent it is affected by such Force Majeure, will be suspended during the continuance of the inability then claimed, but for no longer period, and any such party will endeavor to remove or overcome such inability with all reasonable dispatch. The City shall not be held liable to R&R or any customer of R&R for the failure of the City to provide Water or Wastewater service where the failure results from Force Majeure. 7.02 Contracts with Others. The City reserves the right to contract with other persons, natural or corporate, private or public, and to perform services similar to those performed under this Agreement as well as other services, but shall not contract with other persons to provide such services within the R&R Service Area. R&R shall not contract with other persons to provide such services within the City's service area. 7.03 Indemnification. R&R agrees to indemnify and hold the City harmless from any claims which are made against the City which arise as a result of R&R's negligence in the operation of R&R's Water System. Likewise, the City agrees to indemnify and hold R&R harmless from any claims which are made against R&R which may arise as a result of the City's negligence in the operations of the City's Water System. 7.04 No Reservations. R&R acknowledges and agrees that it is not reserving a guaranteed supply of Water and Wastewater service to meet current or future needs beyond the flow required for the 230 Service Units that are the subject of this Agreement. The City has an adequate supply of Water and Wastewater service to satisfy the reasonable requirement of its current population, other contractual obligations, and the 230 Service Units provided for in this Agreement. The City will endeavor to obtain Water and Wastewater service to meet the future needs of its own citizens, as well as its contractual customers, including R&R. 7.05 Rules, Regulations and Laws.This Agreement is subject to all valid rules, regulations and laws applicable thereto promulgated by the United States of America, the State of Texas, or any agency thereof or regulatory body having lawful jurisdiction. 7.06 No Third Party Beneficiaries. This Agreement will be for the sole and exclusive benefit of the City and R&R and will not be construed to confirm any benefit or right upon any other parties. 7.07 Amendment. This Agreement may be amended by the written consent of both of the parties. 7.08 Severability. The provisions of this Agreement are severable and, if any word, phrase, clause, sentence, paragraph, section or other part of this Agreement or the application thereof to any person or circumstance is ever held by any court of competent jurisdiction to be - 10 - invalid or unconstitutional for any reason, the remainder of this Agreement will be construed as if such invalid provision was not contained herein. 7.09 Term. This Agreement will be in force and effect from the date of execution by both Parties and will continue in effect for 30 years from the effective date of the Original Agreement. The foregoing notwithstanding, if all of the land within R&R is annexed and R&R is dissolved, this Agreement will terminate on the date of dissolution of R&R. 7.10 Notice and Opportunity to Cure. Notwithstanding any provision in this Agreement, on the occurrence of an event of default under this Agreement and prior to any right of City or R&R to declare an event of default, accelerate payment or exercise any remedy under this Agreement, R&R or the City shall have the right to written notice of default specifically stating the default claimed("Default Notice") and the opportunity to cure such default or condition giving rise to City's right to declare a default or take any remedial action. If the defaulting party fails to cure any default or conditions specified in the notice which can be cured by the payment of money within ten business days of the date that party receives the Default Notice, or fails to commence the cure of any default or condition within 20 business days from the date that party receives the Default Notice and thereafter diligently pursue such cure to completion, then the non -defaulting party may declare an event of default under this Agreement and exercise all other remedies including but not limited to the remedies set forth herein. 7.11 Agreement to Negotiate First to Resolve Issues. The parties agree to attempt first to resolve disputes concerning this Agreement amicably by promptly entering into negotiations in good faith. The parties agree that they will not refer any dispute to another dispute resolution procedure including mediation or litigation until they have first made reasonable and good faith efforts to settle their differences by joint negotiations conducted in a timely manner. 7.12 Governing Law and Venue. This Agreement will be construed under and in accordance with Texas law. Venue for any action arising hereunder will be in Williamson County, Texas. 7.13 Notice.Any notice given under this Agreement must be in writing. Notice may be given: (i) by depositing the notice in the United States Mail, postage paid, certified, and addressed to the party to be notified with return receipt requested; (ii) by delivering the notice to the party, or an agent of the party or (iii) by confirmed facsimile, provided that a copy of the notice is also given in one of the manners specified in (i) or (ii). Notice deposited in the mail in the manner specified will be effective three days after deposit. Notice given in any other manner will be effective only if and when received by the party to be notified. For the purposes of notice, the addresses of the parties will, until changed as provided below, be as follows: CITY: City of Round Rock 221 East Main Street Round Rock, Texas 78664 Attn: City Manager - 11 - With copy to: R&R: With copy to: Stephan L. Sheets Sheets & Crossfield, P.C. City Attorney 309 E. Main St. Round Rock, Texas 78664 Email: steve@scrrlaw.com R. Kip Lewis R&R Mobile Joint Venture 1102 Martin Avenue Round Rock, TX 78681 Email: lewis investmentsnaustin.rr.com John Carlton The Carlton Law Firm, P.L.L.C. 2705 Bee Cave Road, Suite 200 Austin, Texas 78746 Email: john@carltonlawaustin.com The parties may change their respective addresses for purposes of Notice by giving at least five days written notice of the new address to the other party. 7.14 Counting Days. If any date or any period provided in this Agreement ends on a Saturday, Sunday or legal holiday, the applicable period will be extended to the next business day. 7.15 Own Legal Counsel. Each party has been represented by legal counsel who have participated equally in the formulation, drafting, and approval of this Agreement. Therefore, in the event of any ambiguity, the provisions of this Agreement will not be construed for or against either party based on draftsmanship. Wherever appropriate, the masculine gender may include the feminine or neuter, and the singular may include the plural, and vice versa. IN WITNESS WHEREOF, the City and R&R, acting under the authority of their respective governing bodies, have caused multiple counterparts of this Agreement to be duly executed, each of which will be of equal dignity, all as of the day of , 2013. ATTEST: SARA WHITE, City Clerk CITY OF ROUND ROCK, TEXAS By: ALAN McGRAW, Mayor Date: - 12 - Acknowledgment This instrument was acknowledged before me this day of , 2013 by Alan McGraw, Mayor of the City of Round Rock, on behalf of said municipality. Notary Public, State of Texas Printed Name My Commission Expires: R&R MOBILE JOINT VENTURE By: R. Kip Lewis, its General Partner Date: Acknowledgment This instrument was acknowledged before me this day of , 2013 by R. Kip Lewis, General Partner of the R&R Mobile Joint Venture, on behalf of said joint venture. Notary Public, State of Texas Printed Name My Commission Expires: - 13 - EXHIBIT A Map of R&R Mobile Joint Venture's Service Area - 14 - EXHIBIT B List of R&R's Customers - 15 - EXHIBIT C List of Inadmissible Wastes - 16 - ROUND ROCK, TEXAS PURPOSE PASSION PROSPERITY City of Round Rock Agenda Item Summary Agenda Number: G.7 Title: Consider a resolution authorizing the Mayor to execute the First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement with R&R Mobile Joint Venture. Type: Resolution Governing Body: City Council Agenda Date: 8/8/2013 Dept Director: Michael Thane, Director of Utilities and Environmental Services Cost: Indexes: Attachments: Resolution, Exhibit A, Map Text of Legislative File 13-570 The City of Round Rock and R&R Mobile Joint Venture previously entered a Wholesale Water Supply and Wastewater Collection and Treatment Agreement on January 27, 2000. The City and R&R would like to amend the agreement to ensure that Blessing Mobile Home Park has the reserved capacity in the City's system for full build -out of their property. R&R has previously paid water and wastewater impact fees for 230 service units. For purposes of this agreement, the 230 service units purchased by R&R will be allocated to the various land uses in the R&R service area as follows: - Single Family Detached - 1.0 Service Unit -Manufactured Home/Duplex/Condominium - 0.7 Service Unit - Apartment Unit - 0.5 Service Unit - Recreational Vehicle - 0.4 Service Unit In addition, the City and R&R included additional language to ensure that R&R makes reasonable efforts to maintain their wastewater collection system in order to minimize inflow and infiltration into the City's wastewater collection system. Staff recommends approval. City of Round Rock Page 1 Printed on 8/5/2013 EXECUTED ORIGINAL DOCUMEN1S FOLLOW FIRST AMENDED AND RESTATED WHOLESALE WATER SUPPLY AND WASTEWATER COLLECTION AND TREATMENT AGREEMENT BETWEEN THE CITY OF ROUND ROCK, TEXAS AND R&R MOBILE JOINT VENTURE STATE OF TEXAS KNOW ALL MEN AT THESE PRESENTS: COUNTY OF WILLIAMSON § This First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement ("Agreement") is made and entered into as of the e --day of A lef As - 2013 by and between the City of Round Rock, Texas ("City"), a home rule city located in Williamson County, Texas and R&R Mobile Joint Venture ("R&R"), a Texas joint venture. RECITALS Whereas, the City and R&R have previously entered into that certain Wholesale Water Supply and Wastewater Collection and Treatment Agreement ("Original Agreement") effective January 27, 2000, and Whereas, the City and R&R desire to amend and restate the terms and conditions of the Original Agreement, Now therefore, for and in consideration of the premises and mutual obligations and benefits herein contained, the City and R&R hereby agree as follows: ARTICLE I Definitions 1.01 In addition to the terms defined in the preceding paragraphs of this Agreement, the following terms, when used in this Agreement, have the following meanings: a. "Agreement" means this First Amended and Restated Wholesale Water Supply and Wastewater Collection and Treatment Agreement. b. "BRA" means the Brazos River Authority. c. "City Code" means the Code of Ordinances (2010 Edition) of the City of Round Rock, as amended. d. "Commission" means the Texas Commission on Environmental Quality, or its successor agency. e. "Director" means the Director of the City's Water and Wastewater Utility. 00278425 DOCX f. "EPA" means the United States Environmental Protection Agency. g• "Force Majeure" means acts of God, strikes, lockouts, or other industrial disturbances; acts of a public enemy; orders of the government of the United States or the State of Texas or any civil or military authority other than the Parties; insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, and droughts; restraint of government and people; civil disturbances; explosions, breakage or accidents to machinery, pipelines, or canals or other causes not reasonably within the control of the party claiming the inability. h. "Impact Fees" means the amount charged by the City pursuant to Chapter 395 of the Local Government Code to pay for a portion of the capital costs of the City's Water System and Wastewater System necessary to provide Water and Wastewater collection, treatment, and disposal services to R&R. i. "Manufactured Home" means a HUD -code manufactured home constructed after June 15, 1976. "Mobile Home" means a structure that was constructed before June 15, 1976, transportable in one or more sections, which in the traveling mode is eight body feet or more in width and 40 body feet or more in length, and which is built on a permanent chassis and designed to be used as a dwelling. k. "Ordinances" means City ordinances, as amended from time to time. 1. "Original Agreement" means the Wholesale Water Supply and Wastewater Collection and Treatment Agreement entered into between the parties dated effective January 27, 2000. m. "Point(s) of Entry" means the one or more locations at which Wastewater passes through a manhole and enters the City's Wastewater System. n. "Point(s) of Delivery" means the one or more locations at which water passes from the City's Water System through a master meter and thereafter is owned and controlled by R&R. o. "R&R Service Area" means that area within R&R's Certificate of Convenience and Necessity, a copy of which is attached hereto as Exhibit A. P. q. "R&R Water Facilities" means all water facilities located on the downstream side of the Point(s) of Delivery. "R&R Wastewater Facilities" means all Wastewater facilities located on the upstream side of the Point(s) of Entry. -2- r. "Recreational Vehicle" means a unit designed as temporary living quarters for recreational, camping or travel use that has a body width not exceeding eight feet and a body length not exceeding 40 feet. s. "Service Unit" means a standardized measure of the consumption of Water and the production of Wastewater by a typical single-family residential unit. It has been determined by the City that each "Service Unit" consumes 450 gallons per day of Water and produces 350 gallons per day of Wastewater. t. "Significant Industrial User" has the meaning set forth in 40 CFR §403.3(t). u. "Wastewater" means liquid and water carried waste discharged from sanitary conveniences of dwellings, businesses, buildings, institutions, industries and the like including garbage which has been shredded to such a degree that all particles will be carried freely under flow conditions normally prevailing in public sewers, with no particle greater than one-half (1/2) inch in any dimension and the liquid wastes from industrial processes, and includes any infiltration water that has migrated from the ground into the R&R Wastewater Facilities. v. "Wastewater Impact Fee" means the wastewater impact fee as established in § 44.32 of the City Code, as amended from time to time w. "Wastewater System" means the City's wastewater collection system and the Brushy Creek Regional Wastewater Treatment Plant owned by the cities of Austin, Cedar Park, and Round Rock and operated by the BRA. x. "Water" means potable water suitable for use for domestic and municipal uses and meeting the requirements of the Commission for public consumption. "Water Impact Fee" means the water impact fee as established in § 44.32 of the City Code, as amended from time to time. z. "Water System" means the City's water treatment and distribution system. aa. "Winter -Averaging Period" means the consecutive months of December, January, and February, unless another winter -averaging period is approved by the City Council of the City. y. bb. "Winter Average Usage" means R&R's monthly average Water usage during the preceding Winter -Averaging Period. ARTICLE II Service Units and Land Uses 2.01 Service Units. Pursuant to the terms of the Original Agreement, R&R has previously paid Water Impact Fees and Wastewater Impact Fees for and is entitled to connect 230 Service Units to the City's Water System and Wastewater System. -3- 2.02 Land Uses. The primary land uses within the R&R Service Area are currently mobile homes, manufactured homes and recreational vehicles. However, it is anticipated that in the future, there may be single family detached homes, as well as commercial and/or industrial uses within the R&R Service Area. 2.03 Allocation of Service Units. For the purposes of this Agreement, the 230 Service Units previously purchased by R&R will be allocated to the various land uses in the R&R Service Area as follows: a. Single Family Detached 1.0 Service Unit b. Manufactured Home/Duplex/Condominium 0.7 Service Unit c. Apartment Unit 0.5 Service Unit d. Recreational Vehicle 0.4 Service Unit All other land uses will be allocated Service Units based on the size and type of water meter servicing such land use in accordance with § 44-32(e) of the City Code. 2.04 Record of R&R's Customers by Land Use. Attached hereto as Exhibit B is a complete list of all of R&R's current customers, as of April 1, 2013, shown by address, land use, and allocated Service Units. R&R agrees to provide the City with an updated list whenever any of the information thereon changes. 2.05 Purchase of Additional Service Units. In the event that R&R utilizes all of its 230 Service Units, it may request to purchase additional Service Units. Such additional Service Units shall be subject to the payment of the then current Water Impact Fees and Wastewater Impact Fees. The City will endeavor to provide such additional Service Units, but cannot guarantee that they will be available when requested by R&R. ARTICLE III Water Service 3.01 Delivery and Supply of Water. The City shall deliver and sell Water to R&R, for residential and commercial uses only, from the City's Water System. The City presently has and will maintain an adequate Water supply with which to meet R&R's current and future needs, but is not obligated to provide service for more than 230 Service Units. The City will make a reasonable effort to obtain an additional supply of Water to serve any additional future needs of R&R beyond the 230 Service Units. R&R agrees that the supply of Water to R&R may be reasonably limited by the City on the same basis and to the same extent as the supply of Water to other customers within the City. 3.02 Compliance with Conservation Ordinances. R&R shall require its retail customers to comply with the City's water protection and conservation ordinances, as amended from time to time. -4- 3.03 Sole Source of Water. The City shall be the sole source of non -irrigation water to R&R and R&R shall not seek to develop its own wells for uses other than irrigation, unless the City is unable to provide Water service as contemplated in this Agreement or is unable to provide additional service capacity in excess of 230 Service Units when requested by R&R. R&R may provide irrigation water from its own well(s), but R&R may not connect its irrigation water system to the Water distribution system that delivers the City's Water to retail customers within the R&R Service Area or to the Wastewater collection system within the R&R Service Area. 3.04 Quantity of Water Service. The quantity of Water service delivered by the City shall be measured by master meters at all Point(s) of Delivery. Regardless of anything contained herein to the contrary, the number of Service Units for Water service provided herein is limited to no more than 230, unless this Agreement is amended in writing by the parties. City agrees to provide Water in quantities sufficient to meet the minimum standards established by the Texas Commission on Environmental Quality for the 230 Service Units at the Point(s) of Delivery. 3.05 Water Pressure. City agrees to provide the minimum water pressure required for the 230 Service Units by the Texas Commission on Environmental Quality at the Point(s) of Delivery. City shall have no obligation to provide water pressure beyond the Point(s) of Delivery. 3.06 Backflow Prevention Devices. R&R agrees to install, at its sole cost, at each Point of Delivery, a backflow prevention device of a size, design, location, configuration and capacity as approved by the Director. 3.07 Water Service Rates and Procedures. The City shall charge and R&R shall pay the City, for Water service received at the applicable wholesale water rate and under the billing, payment, collection and disconnect procedures as established by the City Council and as amended from time to time. The initial rate for Water under this Agreement will be $1.90 per 1000 gallons of Water metered at the Point of Delivery plus a monthly demand charge of $850.00. The City will notify R&R at least 60 days before any rate increase for R&R becomes effective. Any increase in rate for R&R must be based upon an increase in the actual cost of service as determined by a rate study using standard methodologies. The rate study must be provided to R&R at least 30 days before the rate increase is adopted. 3.08 Metering Equipment. R&R, at its sole expense, shall install and maintain at the Point(s) of Delivery the necessary metering equipment and required devices of standard type to measure properly the quantity of Water delivered to R&R. Once installed, the meters shall be owned by the City. From time to time the City shall have the option of calibrating the meters at its cost. A meter registering not more than three percent (3%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate and the statement of charges for Water delivered to R&R shall be corrected for the three months previous to such test in accordance with the percentage of inaccuracy found by such test. If the meter fails to register for any period, the amount of Water furnished during such period shall be deemed to be the amount of Water delivered in the corresponding period immediately prior to the failure adjusting for seasonal differences, unless the City and R&R shall agree upon a -5- different amount. The metering equipment register shall be read on or about the first day of each month during normal business hours. 3.09 Consumption Record. The City shall keep accurate records of all readings from the meters installed pursuant to Section 3.08 above for a minimum of three years. These records shall be subject to inspection by R&R at reasonable times and places. R&R shall read the meters daily and provide such readings to the City on a monthly basis. 3.10 Point of Delivery. The initial Point of Delivery has previously been determined by the City and R&R and it shall be at the discharge side of the meters installed by R&R pursuant to Section 3.08 above on the existing City Water System. One or more additional Point(s) of Delivery may be constructed by mutual consent of the parties. Upon passing through the meter at the Points of Delivery, the Water becomes the property of R&R. 3.11 Ownership of R&R Water Facilities. Ownership of the R&R Water Facilities shall remain in R&R, which shall be responsible for the repair, maintenance, and replacement of said Facilities. R&R will maintain R&R's Water Facilities in compliance with all federal, state and local regulations so that adverse impacts on the health, safety and welfare of the customers of the system and waste are minimized After providing R&R with 24 hours prior notice, City may enter R&R's property and to inspect R&R's Water Facilities at all reasonable times. R&R's failure to so maintain the R&R Water Facilities as provided in this paragraph is a default under this Agreement. ARTICLE IV Wastewater Service 4.01 Collection and Treatment of Wastewater. The City will collect, transport and treat Wastewater generated by customers within the R&R Service Area and delivered to the City's Wastewater System. The City presently has and will maintain adequate Wastewater collection, treatment and disposal facilities with which to meet R&R's current and future needs, but is not obligated to provide Wastewater Service for more than 230 Service Units. The City will make a reasonable effort to obtain an additional supply of Water to serve any additional future needs of R&R beyond the 230 Service Units. 4.02 Sole Source of Wastewater Services. The City shall be the sole source of Wastewater services to R&R and R&R shall not seek to develop its own Wastewater service, unless the City is unable to provide Wastewater service as contemplated in this Agreement or is unable to provide additional service capacity in excess of 230 Service Units when requested by R&R. 4.03 Quantity of Wastewater Service. Regardless of anything contained herein to the contrary, the number of Service Units for Wastewater service provided herein is limited to no more than 230, unless this Agreement is amended in writing by the parties. 4.04 Wastewater Service Rates and Procedures. The City shall charge and R&R shall pay the City for Wastewater service provided at the applicable wholesale Wastewater service rate and under the billing, payment, collection and disconnect procedures as established by the -6- City Council and as amended from time to time. The initial rate for Wastewater service provided under this Agreement shall be $3.90 per 1,000 gallons of Wastewater delivered. The amount of Wastewater delivered each month shall be equal to R&R's Winter Average Usage or its actual Water consumption, whichever is less. The City will notify R&R at least 60 days before any rate increase for R&R becomes effective. Any increase in rate for R&R must be based upon an increase in the actual cost of service as determined by a rate study using standard methodologies. The rate study must be provided to R&R at least 30 days before the rate increase is adopted. 4.05 Determining Winter Average Usage. R&R's Winter Average Usage shall be calculated by taking R&R Service Area's total water usage during the Winter Averaging Period, and then dividing said total water usage by the number of months in the Winter Averaging Period to obtain R&R Service Area's Winter Average Usage. 4.06 Point of Entry. The initial Point of Entry has previously been determined by the City and R&R. One or more additional Point(s) of Entry may be constructed by mutual consent of the parties. Upon passing through the Point(s) of Entry, the Wastewater becomes the property of the City. 4.07 Ownership of R&R Wastewater Facilities. Ownership of the R&R Wastewater Facilities shall remain in R&R, which shall be responsible for the repair, maintenance, and replacement of said Facilities. R&R will maintain R&R's Wastewater Facilities in compliance with all federal, state and local regulations so that adverse impacts on the health, safety and welfare of the customers of the system and waste are minimized After providing R&R with 24 hours prior notice, City may enter R&R's property and to inspect R&R's Wastewater Facilities at all reasonable times. R&R's failure to so maintain the R&R Wastewater Facilities as provided in this paragraph is a default under this Agreement. Article V Wastewater Quality 5.01 Wastewater Quality. R&R shall deliver Wastewater into the Wastewater System meeting the requirements of quality as set forth in this Article and not containing wastes identified in the List of Inadmissible Wastes attached as Exhibit C of this Agreement. a. General Requirements. In order to properly treat and dispose of R&R's Wastewater, to protect the public health, and to permit cooperation with other agencies which have requirements for the protection of the physical, chemical, and bacteriological quality of public water and watercourses, R&R agrees to prohibit discharges into its own collection system at unauthorized points of entry or at rates of flow or of quality not herein specified as admissible. b. Admissible Wastes. Discharges into the Wastewater System by R&R shall consist only of waste which the Wastewater System is designed to treat and process: -7- (i) so that the effluent and sludge from the Wastewater System meets the legal standards of the EPA, the Commission or any governmental body having legal authority to set standards for such effluents; (ii) without causing damage to the System which would result in increased maintenance costs; (iii) without causing excessive treatment costs; and (iv) which meets the requirements of the EPA Pretreatment Regulations, 40 CFR Part 403, City's applicable rules and the EPA -approved pretreatment program for the Wastewater System. c. Inadmissible Wastes. A List of Inadmissible Wastes is attached hereto as Exhibit C. EPA and the Commission periodically modify standards on prohibited discharges; therefore, revisions to, additions to or deletions from the items listed in this Section will become necessary to comply with these latest standards. It is the intention of this Agreement that prohibited discharge requirements be reviewed periodically by the City and that Exhibit C be revised by the City in accordance with the latest standards of EPA, the Commission or federal or state agency having regulatory authority over the discharges made to the System. Exhibit C may also be revised on the basis of changes in the treatment process or the general character of Wastewater received at the Wastewater Treatment Plant from R&R or indicated in the monitoring data related to R&R's discharges collected pursuant to the system pretreatment program. Any required revisions shall be made by the City only after notice and opportunity to comment has been provided to R&R and shall become effective upon written notice thereof being given to R&R. R&R shall be responsible for integrating such changes into its local sewer use regulations and notifying all affected users of the change. 5.02 Regulations. Discharges to the Wastewater System shall be governed by the requirements set forth in the EPA pretreatment regulations, Commission pretreatment regulations, the List of Inadmissible Wastes, the Wastewater System pretreatment program and R&R's regulations. Periodically, the City will promulgate a new List of Inadmissible Wastes, Exhibit C of this Agreement, in response to changes in federal or state requirements, changes in the treatment process, or the general character of the Wastewater received at the Wastewater System's treatment plant. The List of Inadmissible Wastes will contain pollutant allocations to R&R. R&R is responsible for developing specific local limits from the pollutant allocations and enforcing these limits through R&R's regulations and sewer use permits. Notwithstanding any provision in this Agreement to the contrary, R&R is subject to the same quality requirements that apply to the City, subject to R&R having received notice and opportunity to comment on any changes as required under Section 5.01. 5.03 Industrial Wastes. R&R agrees to implement and enforce the Wastewater System pretreatment program for all areas receiving sanitary sewer service from R&R. R&R also covenants that it will have in effect and will enforce sewer use regulations in accordance with -8- EPA and Commission regulations or regulations of other governmental agencies having lawful jurisdiction to set standards for waste discharges. Furthermore, R&R shall, at any reasonable time upon request by City, produce pretreatment program records for review. 5.04 Significant Industrial Users. R&R also agrees that no new Significant Industrial User shall be allowed to connect to R&R's sewer system without prior notification being given by R&R to City of the intent to connect. R&R will provide City with a copy of the draft sewer use permit and permit application at the time such notification is given. All Significant Industrial Users that are customers of R&R will also be required to obtain a sewer use permit. 5.05 Title to and Responsibility for Treatment and Disposal of Wastewater. Title to and responsibility for the reception, transportation, delivery and disposal of all Wastewater discharged hereunder shall remain with R&R to the Point(s) of Entry, and upon passing through the Point(s) of Entry, title to and responsibility for the Wastewater shall pass to City, and City shall be responsible for the proper reception, transportation, treatment, disposal and/or reuse of all such Wastewater, meeting the applicable quality standards, received by it at the Point(s) of Entry. Responsibility for proper reception, transportation, treatment and disposal of Wastewater received by City at the Point(s) of Entry which does not meet the applicable quality standards shall remain with R&R and any expenses incurred by City in receiving, transporting, treating and disposing of such non-compliant Wastewater shall be charged directly to R&R by City, upon demonstrating that such Wastewater was delivered by R&R. ARTICLE VI Maintenance and Repair of Wastewater System 6.01 Inflow and Infiltration. R&R agrees to use reasonable efforts to maintain and repair R&R's collection system to minimize inflow and infiltration into the Wastewater System. Reasonable efforts shall include, but are not limited to, inspecting all of R&R's collection lines with a video camera at least every five years. R&R shall provide the City with a copy of all reports and data obtained from the video camera inspection. R&R shall promptly take steps to repair any problems that are resulting in inflow and infiltration into R&R's system. 6.02 Inspection. In addition to the foregoing, R&R agrees to allow the City to inspect R&R's collection system to assure that inflow and infiltration is minimized. This inspection shall include the right to video the collection system at any time deemed necessary by the City. 6.03. Repairs and Maintenance. If R&R fails or refuses to perform such needed repairs or maintenance within 30 days of said notice, then the City shall have the right to perform such repairs or maintenance. In that event, the City will add the cost of such repairs or maintenance to R&R's monthly bill and R&R will be responsible for the prompt payment of same. -9- ARTICLE VII Miscellaneous 7.01 Force Majeure. If, by reason of Force Majeure, a party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, such party will give written notice and the full particulars of such Force Majeure to the other party within a reasonable time after occurrence of the event or cause relied upon, and the obligation of the party giving such notice, to the extent it is affected by such Force Majeure, will be suspended during the continuance of the inability then claimed, but for no longer period, and any such party will endeavor to remove or overcome such inability with all reasonable dispatch. The City shall not be held liable to R&R or any customer of R&R for the failure of the City to provide Water or Wastewater service where the failure results from Force Majeure. 7.02 Contracts with Others. The City reserves the right to contract with other persons, natural or corporate, private or public, and to perform services similar to those performed under this Agreement as well as other services, but shall not contract with other persons to provide such services within the R&R Service Area. R&R shall not contract with other persons to provide such services within the City's service area. 7.03 Indemnification. R&R agrees to indemnify and hold the City harmless from any claims which are made against the City which arise as a result of R&R's negligence in the operation of R&R's Water System. Likewise, the City agrees to indemnify and hold R&R harmless from any claims which are made against R&R which may arise as a result of the City's negligence in the operations of the City's Water System. 7.04 No Reservations. R&R acknowledges and agrees that it is not reserving a guaranteed supply of Water and Wastewater service to meet current or future needs beyond the flow required for the 230 Service Units that are the subject of this Agreement. The City has an adequate supply of Water and Wastewater service to satisfy the reasonable requirement of its current population, other contractual obligations, and the 230 Service Units provided for in this Agreement. The City will endeavor to obtain Water and Wastewater service to meet the future needs of its own citizens, as well as its contractual customers, including R&R. 7.05 Rules, Regulations and Laws. This Agreement is subject to all valid rules, regulations and laws applicable thereto promulgated by the United States of America, the State of Texas, or any agency thereof or regulatory body having lawful jurisdiction. 7.06 No Third Party Beneficiaries. This Agreement will be for the sole and exclusive benefit of the City and R&R and will not be construed to confirm any benefit or right upon any other parties. 7.07 Amendment. This Agreement may be amended by the written consent of both of the parties. 7.08 Severability. The provisions of this Agreement are severable and, if any word, phrase, clause, sentence, paragraph, section or other part of this Agreement or the application thereof to any person or circumstance is ever held by any court of competent jurisdiction to be - 10 - invalid or unconstitutional for any reason, the remainder of this Agreement will be construed as if such invalid provision was not contained herein. 7.09 Term. This Agreement will be in force and effect from the date of execution by both Parties and will continue in effect for 30 years from the effective date of the Original Agreement. The foregoing notwithstanding, if all of the land within R&R is annexed and R&R is dissolved, this Agreement will terminate on the date of dissolution of R&R. 7.10 Notice and Opportunity to Cure. Notwithstanding any provision in this Agreement, on the occurrence of an event of default under this Agreement and prior to any right of City or R&R to declare an event of default, accelerate payment or exercise any remedy under this Agreement, R&R or the City shall have the right to written notice of default specifically stating the default claimed("Default Notice") and the opportunity to cure such default or condition giving rise to City's right to declare a default or take any remedial action. If the defaulting party fails to cure any default or conditions specified in the notice which can be cured by the payment of money within ten business days of the date that party receives the Default Notice, or fails to commence the cure of any default or condition within 20 business days from the date that party receives the Default Notice and thereafter diligently pursue such cure to completion, then the non -defaulting party may declare an event of default under this Agreement and exercise all other remedies including but not limited to the remedies set forth herein. 7.11 Agreement to Negotiate First to Resolve Issues. The parties agree to attempt first to resolve disputes concerning this Agreement amicably by promptly entering into negotiations in good faith. The parties agree that they will not refer any dispute to another dispute resolution procedure including mediation or litigation until they have first made reasonable and good faith efforts to settle their differences by joint negotiations conducted in a timely manner. 7.12 Governing Law and Venue. This Agreement will be construed under and in accordance with Texas law. Venue for any action arising hereunder will be in Williamson County, Texas. 7.13 Notice. Any notice given under this Agreement must be in writing. Notice may be given: (i) by depositing the notice in the United States Mail, postage paid, certified, and addressed to the party to be notified with return receipt requested; (ii) by delivering the notice to the party, or an agent of the party or (iii) by confirmed facsimile, provided that a copy of the notice is also given in one of the manners specified in (i) or (ii). Notice deposited in the mail in the manner specified will be effective three days after deposit. Notice given in any other manner will be effective only if and when received by the party to be notified. For the purposes of notice, the addresses of the parties will, until changed as provided below, be as follows: CITY: City of Round Rock 221 East Main Street Round Rock, Texas 78664 Attn: City Manager - 11 - With copy to: Stephan L. Sheets Sheets & Crossfield, P.C. City Attorney 309 E. Main St. Round Rock, Texas 78664 Email: steve(a�scrrlaw.com R&R: With copy to: R. Kip Lewis R&R Mobile Joint Venture 1102 Martin Avenue Round Rock, TX 78681 Email: lewis investments@austin.rr.com John Carlton The Carlton Law Firm, P.L.L.C. 2705 Bee Cave Road, Suite 200 Austin, Texas 78746 Email: john@carltonlawaustin.com The parties may change their respective addresses for purposes of Notice by giving at least five days written notice of the new address to the other party. 7.14 Counting Days. If any date or any period provided in this Agreement ends on a Saturday, Sunday or legal holiday, the applicable period will be extended to the next business day. 7.15 Own Legal Counsel. Each party has been represented by legal counsel who have participated equally in the formulation, drafting, and approval of this Agreement. Therefore, in the event of any ambiguity, the provisions of this Agreement will not be construed for or against either party based on draftsmanship. Wherever appropriate, the masculine gender may include the feminine or neuter, and the singular may include the plural, and vice versa. IN WITNESS WHEREOF, the City and R&R, acting under the authority of their respective governing bodies, have caused multiple counterparts of this Agreement to be duly executed, each of which will be of equal dignity, all as of the '9202' day ofA*, 2013. ATTEST: 2 I4'(L lith( t SARA WHITE, City Clerk CITY OF ROUND ROCK, TEXAS By: ALAN McGRAW, Mayor Date: - 12 - Acknowledgment This instrument was acknowledged before me this day of Alan McGraw, Mayor of the City of Round Rock, on behalf of said muni ality. `��„►►u a url�,,,/, p P ..'6,< 'mo• io • :� mo O.FXPIR�a•'a , 2013 by YYIEA6A44 rV1. SPI NKS Printed Name My Commission Expires: _1 -9-14 R&R MOBILE JOINT VE RE Gene al Partner Date: Acknowledgment This instrument was acknowledged before me this L� day of , 2013 by R. Kip Lewis, General Partner of the R&R Mobile Joint Venture, on behalf of said joint venture. al'Y°PN. �c��w Z4', DARBY GANCAS :�: Notary Public, State of Texos ?s. . J My Corr,rnission Expires ��;r l�� August 31, 2016 - N//llll -13- &CGA Notary ublic, S .: to of Texas Printed Nam My Commission Expires: EXHIBIT A Map of R&R Mobile Joint Venture's Service Area - 14 - �uaLLiaaa6e �30d punoH }o f;i'; 101 dew Aaepuno8 NOD AIiunwwoo bUISS013 r A 9P 'pp 1 o �\ i y +y • CdA y, .. .. qw', ,; may. S � '�°�,• 1!. r sow 44 Ir F g s p. y. , r , ��n, ", ♦ _ p,'.f�tpr`'+� �f.d;. 1..,.'L ,rr,K 'y.;; k I S,�� �r� .. '• • y M1 1 a tl 4- lk r J +� k 4yl1f Rfrc. v;. .. eaa wwoo ,,, r. BuissaIg r r X , EXHIBIT B List of R&R's Customers - 15 - Service Unit Listing Properties: Blessing Utility RV, Blessing Utility System Dates from 5/1/2013 to 5/1/2013 Acct Unit Type Street Address Current Occupant Unit 002 BU - RV 2502 Blessing Ave Houston, Janie 0.4 008 BU - RV 1000 A Lynda Sue Rouse, Abbe 0.4 013 BU - RV 2506 B Blessing ave Garza, Robert 0.4 135 BU - RV 1000 Lynda Sue Kain, Dyzan 0.4 136 BU - RV 1001 Lynda Sue Boyd, Stella Marie 0.4 138 BU - RV 1003 Lynda Sue McCorkle, Charles 0.4 139 BU - RV 1005 Lynda Sue Hammill, Victoria 0.4 400 BU - RV 1106 Martin #1 Alfalla, Wilfredo 0.4 401 BU - RV 1106 Martin #2 Milligan, T.J. 0.4 402 BU - RV 1106 Martin Ave. #3 Guitron, Jonathan Carlos 0.4 403 BU - RV 1106 Martin Av #4 Makela, Andrew 0.4 405 BU - RV 1106 Martin Ave. #5 R & L Electric 0.4 406 BU - RV 1106 Martin Ave. #6 Garza, George 0.4 407 BU - RV 1106 Martin Ave. #7 Rogers, Kristopher 0.4 408 BU - RV 1106 Martin Ave #8 Friedrichs, Cleo 0.4 409 BU - RV 2000 Meredith Lane Nance, George 0.4 410 BU - RV 2002 Meredith Lane Morris, Katon 0.4 411 BU - RV 2004 Meredith Lane Weber, Agmed 0.4 412 BU - RV 2006 Meredith Lane Rodriguez Young, Rita 0.4 413 BU - RV 2008 Meredith Lane Franco, Alejandro 0.4 414 BU - RV 2010 Meredith Lane Galliano, Andrea 0.4 415 BU - RV 2012 Meredith Lane Hays, Jack Michael 0.4 416 BU - RV 2014 Meredith Lane Duke, Karen 0.4 417 BU - RV 2016 Meredith Lane Simmons, Lance 0.4 418 BU - RV 2018 Meredith Lane Hyde, James 0.4 419 BU - RV 2020 Meredith Lane Reyes, Ramon Miguel 0.4 420 BU - RV 2022 Meredith Lane Bjorklund, Jay 0.4 421 BU - RV 2024 Meredith Lane Logue, Thomas D 0.4 422 BU - RV 2026 Meredith Lane Mika, Mace 0.4 423 BU - RV 2028 Meredith Lane Russell, Pat 0.4 424 BU - RV 2011 Meredith Lane Kelley, Terry 0.4 425 BU - RV 2009 Meredith Lane Gutierrez, Johnny 0.4 426 BU - RV 2007 Meredith Lane Velasquez, Manny 0.4 427 BU - RV 2005 Meredith Lane Martinez, Manuel 0.4 428 BU - RV 2003 Meredith Lane Brinkley, Joseph 0.4 429 BU - MH 2001 Meredith Lane Lee Meredith 0.7 430 BU - MH 2001-A Meredith Lane Lewis Blessing, LP 0.7 001 BU - MH 2501 Blessing Ave Korszowsky, Malinee 0.7 003 BU - MH 2503 Blessing Ave Ouellet Sr., Joseph G. 0.7 004 BU - MH 2503-A Blessing Ave. Hemandez, Yvette 0.7 005 BU - RV 2504-A Blessing Ave. 0.4 006 BU - RV 2504 B Blessing Ave 0.4 007 BU - MH 2505 Blessing Ave Dominguez, Christian E. 0.7 009 BU - MH 2505 A Blessing Ave Castro, Jose Angel 0.7 010 BU - MH 2505 B Blessing Ave Moreno, Leticia 0.7 011 BU - MH 2505 C Blessing Ave Alvarado, Monica 0.7 012 BU - MH 2506 Blessing Ave Valchar, Daniel 0.7 014 BU - MH 2507 Blessing Ave Guerrero Rosas, Jose 0.7 015 BU - MH 2511 Blessing Ave Quevedo, Alma D 0.7 016 BU - MH 2507 A Blessing Ave Sanchez, Emilio 0.7 017 BU - MH 2507 B Blessing Ave. Alvarado, Alma 0.7 018 BU - RV 2508 A Blessing Ave 0.4 019 BU - RV 2508 B Blessing Ave 0.4 020 BU - RV 2508 C Blessing Ave Brunson, Daryl F. 0.4 Acct Unit Type Street Address Current Occupant Unit 021 BU - RV 2508 D Blessing Ave 0.4 022 BU - MH 2508 E Blessing Ave Vasquez, Ruben 0.7 023 BU - MH 2509 Blessing Ave Vera, Abraham 0.7 024 BU - MH 2510 Blessing Ave Lugo, Francisico 0.7 025 BU - MH 2513 Blessing Ave Salinas, Eduviges 0.7 026 BU - MH 2512 Blessing Ave Dominguez, Alfredo 0.7 027 BU - MH 2514 Blessing Ave Shine, Shirley 0.7 028 BU - MH 2600 Blessing Ave Rodas, Juan 0.7 030 BU - MH 2602 Blessing Ave Alvarado, Sylvia 0.7 031 BU - MH 2603 Blessing Ave Blacketer, William 0.7 032 BU - MH 2604 Blessing Ave Diaz -Martinez, Julio C 0.7 033 BU - MH 2605 Blessing Ave Ramirez, Adriana 0.7 034 BU - MH 2606 Blessing Ave Martinez, Jesus 0.7 035 BU - MH 2607 Blessing Ave Landin, Maria 0.7 036 BU - MH 2608 Blessing Ave Espinoza, Juan 0.7 037 BU - MH 2609 Blessing Ave Mitchell, Cynthia 0.7 038 BU - MH 2610 Blessing Ave Vazquez, Hilario 0.7 039 BU - MH 2611 Blessing Ave Aldana, Miguel 0.7 040 BU - MH 2612 Blessing Ave Flores, Hilario 0.7 041 BU - MH 2613 Blessing Ave Jaramillo, Cesar 0.7 042 BU - MH 2614 Blessing Ave Leatherwood, Zachary 0.7 043 BU - MH 2615 Blessing Ave Sanchez, Edward 0.7 044 BU - MH 2616 Blessing Ave 0.7 045 BU - MH 2617 Blessing Ave Guerrero, Armando 0.7 046 BU - MH 2618 Blessing Ave Mendoza, Andres 0.7 047 BU - MH 2619 Blessing Ave Servin, Jose Luis 0.7 048 BU - MH 2600 George St. Ibarra, Sofia M. 0.7 049 BU - MH 2601 George St. Stark, Edward 0.7 050 BU - MH 2602 George St. Manuel Ariza, Victor 0.7 051 BU - MH 2603 George St. Barbeau, Richard 0.7 052 BU - MH 2604 George St. Rivera, John Paul 0.7 053 BU - MH 2605 George St Hassinger, Gerald 0.7 054 BU - MH 2606 George St. Flores, Andres 0.7 055 BU - MH 2607 George St. Mendoza, Gildardo 0.7 056 BU - MH 2608 George St. Flores Mora, Margarita 0.7 057 BU - MH 2609 George St. Nava, Elvia 0.7 058 BU - MH 2610 George St. Horvatich, Marcia E 0.7 059 BU - MH 2611 George St. Balderas, Jorge 0.7 060 BU - MH 2612 George St. Venegas, Ann 0.7 061 BU - MH 2613 George St. Becker, Diane 0.7 062 BU - MH 2615 George St. Caraballo, Ivelisse 0.7 063 BU - MH 2617 George St. Anselmo, Shandel 0.7 064 BU - MH 2619 George St. Rios Cortes, Rafael 0.7 065 BU - MH 2621 George St. Gonzalez, Sandra Noemi 0.7 066 BU - MH 2623 George St. Herrera, Erasmo 0.7 067 BU - MH 2625 George St. Reyes/harris 0.7 068 BU - MH 2600 Sinclair St. Veladro, Isidro 0.7 069 BU - MH 2601 Sinclair St. C. Martinez, Rodolfo 0.7 070 BU - MH 2602 Sinclair St. Northington, Anna 0.7 071 BU - MH 2603 Sinclair St. Lopez, Jose D 0.7 072 BU - MH 2604 Sinclair St. Lara, Berta 0.7 073 BU - MH 2605 Sinclair St. Zambrano, Antonio 0.7 074 BU - MH 2606 Sinclair St. Wiseman, David 0.7 075 BU - MH 2607 Sinclair St. Navarrete, Rogelio 0.7 076 BU - MH 2608 Sinclair St. Colley, Robert 0.7 077 BU - MH 2609 Sinclair St. Mata, Yvette 0.7 078 BU - MH 2610 Sinclair St. Navarro -Delgado, Y 0.7 079 BU - MH 2611 Sinclair St. Navarette, Rogelio 0.7 080 BU - MH 2612 Sinclair St. Carlile, Beth P. 0.7 Acct Unit Tyne Street Address Current Occupant 081 BU - MH 2613 Sinclair St. Garcia, Lorenzo 082 BU - SF 2610 Mobil Deck, Elsa 084 BU - MH 901 Martin Ave Shirley, Kathryn 085 BU - MH 902 Martin Ave Marin, Juan B 086 BU - MH 904 Martin Ave Manzano, Adrian 087 BU - MH 905 Martin Ave Waddle, Brenda 088 BU - MH 908 Martin Ave Narvaez, Juan Gabriel 089 BU - MH 909 Martin Ave Denova, Arturo 090 BU - MH 910 Martin Ave Gatica, Apolonia 091 BU - SF 911 Martin Ave Olvera Bernal, Elizabeth 092 BU - MH 990 Martin Ave Martinez, Noel B 093 BU - MH 1000 Martin Ave Rodriguez Jr, Martin 094 BU - MH 1002 Martin Ave Rodea, Jesus 095 BU - MH 1004 Martin Ave Cruz, Heriberto 096 BU - MH 1006 Martin Ave McKinley, Dawn 097 BU - MH 1008 Martin Ave Schulze, Monika 098 BU - MH 1102 Martin Ave Blessing Office 099 BU - MH 2605 Mobil Quinonez, Ramon 100 BU - MH 1108 Martin Ave Olvera, Salvador 101 BU - MH 1110 Martin Ave Olvera, Salvador 102 BU - BS 1110 A Martin Ave Olvera, Salvador 103 BU - BS 1200 Martin Ave Beach, Glen 104 BU - MH 2606 Mobil 105 BU - MH 2607 Mobil Ambriz, David 106 BU - MH 2608 Mobil Deck, Elsa 107 BU - MH 2609 Mobil Rotthoff, Chuck 108 BU - MH 2611 Mobil Figueroa, Gerardo 109 BU - MH 2613 Mobil Chapa, JoAnna 110 BU - SF 1100 Lynda Sue Mata, Olga 112 BU - MH 1102 Lynda Sue Tidwell, Michael 113 BU - MH 1103 Lynda Sue Korszowsky, Malinee 114 BU - SF 1104 Lynda Sue Reyna, Steve 116 BU - MH 1106 Lynda Sue Mancha, Leopoldo 117 BU - MH 1107 Lynda Sue Blanco, Juan 118 BU - MH 1108 Lynda Sue Mendez-deleon, Amalia 119 BU - SF 1109 Lynda Sue Rodriguez, J. Gumaro 120 BU - MH 1110 Lynda Sue Pharis, Matthew 121 BU - MH 1111 Lynda Sue Lewis Blessing, LP 122 BU - MH 1201 A Lynda Sue Ortega, Narcisco 123 BU - MH 1201 B Lynda Sue Ortega, Narciso 124 BU - MH 1202 B Lynda Sue Moctezuma, Regelio 125 BU - MH 1202 C Lynda Sue Arzola, Angelica 126 BU - MH 1202 D Lynda Sue Cavasos, Martin 127 BU - MH 1201 C Lynda Sue Ortega, Narcisco 128 BU - MH 1204 Lynda Sue Real, Jose 129 BU - MH 1205 Lynda Sue Godina, Jose 130 BU - MH 1208 Lynda Sue Ruelas, Braulio 131 BU - MH 1209 Lynda Sue Littera!, Ben Kevin 132 BU - BS 1212 Lynda Sue Beach, Ron 133 BU - BS 2500 County Rd. 172 Beach, Marion L. 134 BU - BS 2506 County Rd.172 Sapp, Leslie 137 BU - MH 1002 Lynda Sue Salas, Bias 140 BU - MH 906 Martin Ave Rodea, Alma 141 BU - MH 912 Martin Ave Rosales, Roberto 142 BU - MH 806 Martin Ave Noble, Nicole 144 BU - BS 1109 Martin Ave May, James 145 BU - BS 803 Martin Ave Blessing Shop 146 BU - MH 808 Martin Ave Lopez, Florencio 147 BU - MH 810 Martin Ave Unit 0.7 1.0 0.7 0.7 0.7 0.7 0.7 0.7 0.7 1.0 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 1.0 0.7 0.7 1.0 0.7 0.7 0.7 1.0 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 1.0 0.7 0.7 Acct Unit Tyne Street Address 148 BU - MH 907 Martin Ave 149 BU - MH 2615 Mobil 150 BU - MH 2617 Mobil 151 BU - MH 2611 B Mobil 152 BU - MH 2020 Cooper Way 154 BU - MH 1000 Meredith Lane 155 BU - MH 1001 Meredith Lane 156 BU - MH 1003 Meredith Lane 157 BU - MH 2001 Meredith Lane 159 BU - MH 3018 Dean Drive 161 BU - MH 2021 Cooper Way 163 BU - MH 3011 Dean Drive 164 BU - MH 1024 Meredith Lane 165 BU - MH 1002 Meredith Lane 166 BU - MH 1020 Meredith Lane 167 BU - MH 1022 Meredith Lane 168 BU - MH 1018 Meredith Lane 169 BU - MH 1016 Meredith Lane 170 BU - MH 1014 Meredith Lane 171 BU - MH 1012 Meredith Lane 172 BU - MH 1010 Meredith Lane 173 BU - MH 1008 Meredith Lane 174 BU - MH 1006 Meredith Lane 175 BU - MH 1004 Meredith Lane 176 BU - MH 3000 Dean Drive 177 BU - MH 3001 Dean Drive 178 BU - MH 3002 Dean Drive 179 BU - MH 3003 Dean Drive 180 BU - MH 3004 Dean Drive 181 BU - MH 3005 Dean Drive 182 BU - MH 3006 Dean Drive 183 BU - MH 3007 Dean Drive 184 BU - MH 3008 Dean Drive 185 BU - MH 3009 Dean Drive 186 BU - MH 3010 Dean Drive 187 BU - MH 3012 Dean Drive 188 BU - MH 3013 Dean Drive 189 BU - MH 3014 Dean Drive 190 BU - MH 3016 Dean Drive 191 BU - MH 2000 Cooper Way 192 BU - MH 2001 Cooper Way 193 BU - MH 2002 Cooper Way 194 BU - MH 2003 Cooper Way 195 BU - MH 2004 Cooper Way 196 BU - MH 2005 Cooper Way 197 BU - MH 2006 Cooper Way 198 BU - MH 2007 Cooper Way 199 BU - MH 2008 Cooper Way 200 BU - MH 2010 Cooper Way 201 BU - MH 2012 Cooper Way 203 BU - MH 2016 Cooper Way 209 BU - MH 2009 Cooper Way 210 BU - RV 1104 Martin Avenue 211 BU - RV 2500 Blessing Avenue 212 BU - SF 2700 CR 172 213 BU - RV 2700 CR 172 Current Occupant Unit Thompson, David Garcia, Narciso Navarro Macedo, David Tipton, Neal Hatch, Judith K. Castro, Pablo Meredith, Lee Rivas, Rafael Kemp, Marjorie Scantlin, Ben Catalan, Carolina Mondragon, Reyna Burgard, Kim Cruz, Anastacio Herrera, Juan Garcia, Jose Hughes, Kendrick Williams, Floris Jean Ton -es, Victor Yepez, Conchita Anderson, Ruby Gonzalez, Sergio Scholl (R), Michael Narvaez, Ramon Araujo, Narciso Silla, Susan Medina, Gildardo Ruiz, Reyna Aviles -Aviles, Guillermo Sleeper, Tylor Clark, Wayne Munoz, Jorge Maldonado, Marcelino Zacarias, Carlos Guerrero, Jose Jesus Cedillo-Cervera, F Grimaido, Ignacio Martinez Jaramillo, M Galindo, William Gonzalez, Rosa Douglas, Edmonia Hamaker, Matthew Heath Burkart, Jennifer Jaimes, Ofelia Hernandez, Victor Kizer, Victoria Denise FLores, Jose Chimuahua Garcia, Adan Jaimes, Efrain Lewis Blessing, LP Lewis Blessing, LP Lewis Blessing, LP Lewis Blessing, LP Total LUE 32 120 3 49 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 12.8 48.0 3.0 19.6 229.7 EXHIBIT "C" LIST OF INADMISSIBLE WASTES The following list constitutes the pollutant allocations and local limits established under the Brushy Creek Regional Wastewater System Pretreatment Program specifying both numerical concentration limits and prohibited substances for discharge to the System of toxic or regulated pollutants which could cause interference with the operation of the treatment plant or cause a violation of the State or Federal discharge permit provisions. Customer agrees to limit discharges to the System in accordance with the following list: Prohibited discharges include: 1. Wastewater having a temperature that would result in the total combined influent to the treatment plant to exceed a temperature of 104 degrees Fahrenheit or 32.2 degrees Celsius. 2. Wastewater having a pH value lower than 5.0 or higher than 10.5 or which will cause structural damage to the System. 3. Wastewater containing gasoline, benzene, naphtha, fuel oil, or other flammable or explosive liquids, solids, gases, or any material that will result in the presence of toxic gases, vapors or fumes within the System in quantities which may cause acute worker health and safety problems. 4. Wastewater containing oil and grease or any grease, fats, waxes, oil, plastic or other substances that will solidify or become discernibly viscous at any temperature between 32 degrees Fahrenheit and 90 degrees Fahrenheit so as to cause obstruction in the collection system or at the treatment plant. 5. Wastewater with a radioactive content greater than allowable by applicable provisions of the Texas Radiation Control Act, Article 4590 (f), Revised Civil Statutes of Texas, and Texas Regulations for Control of Radiation issued thereunder. 6. Wastewater with a dissolved hydrogen sulfide concentration greater than 1.0 milligrams per liter. 7. Wastewater containing corrosive constituents that have a damaging or corrosive effect on system components. 8. Any hazardous wastes prohibited by regulatory agencies. 9. Any trucked or hauled pollutants except at discharge points designated by the BRA. 10. Wastewater, which alone or in conjunction with other wastewater, causes the wastewater entering any entry point into the system to exceed a five-day Biochemical Oxygen Demand (BOD), concentration of 300 milligrams per liter or a Total Suspended Solids 00279373.DOCX (TSS), concentration of 400 milligrams per liter, shall be subject to surcharge on the basis of actual increased operating costs so long as the pollutant is not causing interference with the operation of the BRA's State or Federal discharge permit provisions, and as long as said pollutants are deemed acceptable by the BRA. BRA shall determine the cost of treatment for pollutants received from all Customers and determine additional treatment costs for excessive pollutants to be surcharged. 11. Wastewater with concentrations of toxic pollutants, including heavy metals and other pollutants designated under the System Pretreatment Program, which will alone or in conjunction with other wastewater cause the treatment plant influent to contain in excess of: Pollutant System Headworks Limit 24 Hour Composite lbs/day (mg/1) Cadmium 24.6864 0.2 Chloroform 493.7280 4.0 Chromium (Total) 2,098.3440 17.0 Copper 432.0120 3.5 Ethyl Benzene 1,974.9120 16.0 Lead 61.7160 0.5 Naphthalene 1,851.4800 15.0 Nickel 555.4440 4.5 Silver 8.6402 0.07 Tetrachloroethylene 617.1600 5.0 Toluene 1,728.0480 14.0 Zinc 469.0416 3.8 2