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CM-11-02-044ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY Item Caption: Approval Date: City Manager Approval Summary Sheet Consider executing a TCEQ Application to Obtain or Amend a Water or Sewer Certificate of Convenience and Necessity (CCN). February 18, 2011 Department: Infrastructure Development and Construction Management Project Manager: Michael Thane Item Summary: The City of Round Rock is submitting this application to the Texas Commission on Environmental Quality (TCEQ) to amend the City's Water Certificate of Convenience and Necessity (CCN) service area on the south side of town. This amendment is necessary in order for the City to serve the property that Manville Water Supply Corporation released from their CCN service area. Once the application is approved by the TCEQ, the City will be able to legally provide water service to the property. Strategic Plan Relevance: 27.0 "Ensure there is an adequate, affordable and safe water supply." Cost: Source of Funds: N/A N/A REV. 6/10/10 Uri ... . ma__ . --riL.iii TCEQ APPLICATION TO OBTAIN OR AMEND A WATER OR SEWER CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) Ovi-it-oE-oi-pi TCEQ-10362 (REV 4/09) Page 1 of 28 GENERAL INFORMATION * * * THIS APPLICATION IS NOT A RATE CHANGE APPLICATION. THE APPROPRIATE FORMS NEEDED TO FILE A RATE CHANGE APPLICATION MAY BE OBTAINED FROM THE TEXAS COMMISSION ON EVNIRONMENTAL QUALIY'S (TCEQ'S) WEBSISTE OR BY CONTACTING THE UTILITIES AND DISTRICTS SECTION OF THE TCEQ. 111 osF Pursuant to V.T.C.A., Water Code, Chapter 13, Subchapter G: ❑ CCNs may be obtained by any retail public water and/or sewer utility. ❑ CCNs are required for: a) Investor Owned Utilities (IOU); b) Non-profit, member -owned, member -controlled water supply or sewer service corporations (WSC) incorporated under Water Code, Chapter 67; and c) Affected counties. ❑ CCNs may be required for political subdivisions, except affected counties, before utility service can be provided to an area already lawfully being served. A CCN gives the holder: ❑ the legal right to provide water and/or sewer utility service; ❑ the legal right to be compensated, either directly through a monthly rate or indirectly through maintenance fees, property owners fees, etc.; ❑ a delineated service area; AND ❑ the obligation to provide service to every customer and qualified applicant who requests service within that area. A CCN is not required when service is either submetered pursuant to Water Code, Chapter 13, Subchapter M, or included in the rental of the property. EGF IOUs and WSCs with less than 15 potential retail water service connections may register as Aexempt@ and then are not required to possess a CCN for their service area if they meet the exemption criteria. This exemption does not apply to sewer providers with less than 15 potential retail sewer connections. Retail sewer utilities must obtain a CCN to provide retail sewer service to more than one connection. This application shall not be changed, altered or amended from its original form only available from the TCEQ. PROCESSING YOUR CCN APPLICATION FLOW CHART Attached are flowcharts of the review process. Your application will go through an Administrative Review and, when accepted for filing, a Technical Review. For uncontested applications, processing time depends on the response time of the applicant. Contested applications generally take longer because of the need for scheduling a public hearing, and processing time depends on whether a settlement agreement between the applicant and the protestor(s) is reached. TCEQ-10362 (REV 4/09) Page 2 of 28 CCN Administrative (Admin) Review Process -Flowchart CAdministrative Review Process -Application # assigned Setup files Enter in Water Utilities Database (WUD) 10 days Checklist Admin complete No or Incomplete Response Received • Return File Not OK 30 day NOD Complete Response Received OK Admin Review for Completeness C05/09 ) 0-10 days Admin Review for Overlap Check/Maps Application accepted for filing and Begin Technical Review (BTR) letter with revised notices mailed to applicant. • Forward Official File to Staff for Technical review * Includes TWC 13.255, 13.254 and 13.246 type applications. TCEQ-10362 (REV 4/09) Page 3 of 28 CCN Technical (Tech) Review Application Process -Flowchart 1 Begin Technical Review (BTR) Process No Tech. Review Team Leader • Team Leader Assigns to Technical Staff BTR Applicant provides/publishes notice 30 days protest period begins Applicant submits notice affidavits Staff reviews application for proper notice, tariff, maps, and criteria for deficiencies ( 05/09 equeste information submitted? 30 day NOD Application sent to State Office of Administrative Hearings (SOAH), legal, and CCO. Preliminary hearing scheduled Requested information submitted Yes Evidentiary Hearing t Agreement reached at pre -hearing? 14 Day NOD Letter Sent Yes Requested Information Received Staff recommendation, including maps, tariff, letter to applicant and consent form prepared Recommend by ALJ Recommendation of Administrative Law Judge (ALJ) to Remand Case • Application Returned To CCO for Posting on EDs Agenda Remand Order from Legal Consent Received Commission Decision Approval by the Executive Director Map Request to Cartographer To CCO for posting on ED's Agenda Motion to Overturn General Council * Includes TWC 13.255, 13.254 and 13.246 type applications. TCEQ-10362 (REV 4/09) • Page 4 of 28 NF ADMINISTRATIVE REVIEW OF YOUR CCN APPLICATION ❑ Your application will be reviewed for completeness by the Commission staff within ten (10) working days after it is received in our offices. ❑ Proposed notice forms are included with the application. ❑ If the application is administratively incomplete, you will be sent a letter that outlines the application=s deficiencies and describes what is needed to correct the deficiencies. After receiving that letter, you will have thirty (30) days to make the necessary corrections. If you fail to make the corrections in full, (a) the application will be returned, (b) the application fee will be forfeited, and (c) if you are already operating a system, you will be referred for enforcement action which may include administrative penalties of up to $500 per day. NOTICE The Commission cannot grant a CCN until proper notice of the application has been given. It is the applicant's responsibility to ensure that proper notice is given. Notice forms for publication, neighboring cities and systems, customers, and landowners are included with this application to use as a template in preparing your proposed notices. These notice forms are also available in Spanish upon request. If the applicant is an operating IOU currently providing service without a CCN, then proposed notices must be provided for publication, to neighboring cities and systems, landowners with 25 acres or more, and current customers in the proposed service area. All three forms must be completed and submitted with the application. However, if the applicant has no customers in the proposed area at the time of filing and is only proposing to provide service at some future date, or if the applicant is a WSC or political subdivision, then only the notices for landowners with 25 acres or more, publication and neighboring cities and systems must be submitted. Do not publish the notice or send copies of the proposed notices or maps to anyone before submitting this application to the Commission. Your proposed notices and maps will be reviewed for completeness. When your application is accepted for filing, you will be directed to provide the appropriate notices for publication, to the neighboring cities and systems and, if necessary, to current customers. Ersr TECHNICAL REVIEW OF YOUR CCN APPLICATION When the application is accepted for filing, you will be notified by mail and will be required: ❑ to publish notice once each week for two (2) consecutive weeks in a newspaper of general circulation in your local area and county. If the proposed area is in more than one county, publication in each county is required; ❑ to provide individual notice with a copy of the proposed CCN map to neighboring cities and systems within: a) two (2) miles of your proposed service area, if you are an existing retail public utility amending the existing service area, or b) five (5) miles if you are obtaining a new CCN to serve a new service area, and ❑ to provide individual mailed notice with a copy of the proposed CCN map to all affected current customers if you are required to have a CCN but are currently providing service without a CCN. If the application is technically incomplete, you will be sent a letter that outlines the application=s deficiencies and describing what you need to do to correct the deficiencies. After receiving that letter, you will have thirty (30) days to make the necessary corrections. If you fail to make the corrections in full: a) the application will be returned, b) the application fee will be forfeited, and c) if you are already operating a system, you will be referred for enforcement action which may include administrative penalties of up to $500 per day. TCEQ-10362 (REV 4/09) Page 5 of 28 V.T.C.A. Water Code Section 13.246(c) requires the Commission to consider the following factors before it can issue a CCN: ❑ the adequacy of service currently provided to the requested area; ❑ the need for additional service in the requested area, including whether any landowners; prospective landowners, tenants, or residents have requested service; ❑ the effect of the granting of a certificate or amendment on the recipient of the certificate or amendment, on the landowners in the area, and on any retail public utility of the same kind already serving the proximate area; ❑ the ability of the applicant to provide adequate service, including meeting the standards of the commission, taking into consideration the current and projected density and land use of the area; ❑ the feasibility of obtaining service from an adjacent retail public utility; ❑ the financial stability of the applicant to pay for the facilities necessary to provide continuous and adequate service and the financial stability of the applicant including, if applicable, the adequacy of the applicant=s debt -equity ratio; ❑ environmental integrity; ❑ the probable improvement of service or lowering of cost to consumers in that area resulting from the granting of the certificate or amendment; AND ❑ the effect on the land to be included in the certificated area. In addition to these factors, ❑ the Commission must ensure that the applicant possesses the financial, managerial, and technical capability to provide continuous and adequate service AND ❑ the applicant must also demonstrate that regionalization or consolidation with another retail public utility is not economically feasible. If there are no protests, you will be provided a copy of the technical staff recommendation and proposed CCN. If you have any questions or concerns, you should contact the technical staff person assigned to your application immediately. If you disagree with the staff recommendation and/or proposed CCN, the application will be considered contested, and a hearing may be requested. If the application is contested and a hearing is requested, the application may be referred to the State Office of Administrative Hearings (SOAH). During the preliminary hearing, the presiding Administrative Law Judge (ALJ) may give the parties time to negotiate a settlement. Alternative Dispute Resolution (ADR) is available upon request of all of the parties. If a settlement is reached, the application will be remanded to staff for administrative processing. If a settlement is not reached, a discovery schedule and a date for an evidentiary hearing will be set. The ALJ will take testimony from each party and present a report to the Commission to consider in making a final decision on the application. The completed application and copies should be sent to: Texas Commission on Environmental Quality Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 ***THIS APPLICATION IS NOT A RATE CHANGE APPLICATION. THE APPROPRIATE FORMS NEEDED TO FILE A RATE CHANGE APPLICATION MAY BE OBTAINED BY CONTACTING THE UTILITIES AND DISTRICTS SECTION, TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. * * * TCEQ-10362 (REV 4/09) Page 6 of 28 APPLICATION TO OBTAIN OR AMEND A WATER/SEWER CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) TCECI*CN# *RN# If known (See Instructions) PURPOSE OF THIS APPLICATION OBTAIN New Water CCN New Sewer CCN AMEND x Water CCN # 11047 Sewer CCN # 1. APPLICANT INFORMATION Utility Name: City of Round Rock Utility Address 221 East Main Street (city/state/zip) Round Rock, TX 78664 Utility Phone Number (512) 218-5400 Fax ( ) Contact Person: Please provide information about the person to be contacted regarding this application. Indicate if this person is the owner, operator, engineer, attorney, accountant manager, or other title related to the applicant. Name: Michael Thane, P.E. Title: Director of Infrastructure Management Address: 2008 Enterprise Dr. Telephone ( ) 512 671-2755 City Round Rock St TX Zip 78664 Fax ( ) 512 218-5563 E-mail: mthane@round-rock.tx.us County(ies) in which service is proposed Williamson A. Check the appropriate box and provide information regarding the legal status of the applicant: Investor owned utility Individual Home or Property Owners Association Partnership For-profit corporation Non-profit, member -owned, member -controlled cooperative corporation (Water Code Chapter 67, Water Supply or Sewer Service Corporation) X Municipality District Other Please Explain: B. If the applicant is a For -Profit business or corporation: Not Applicable i. Provide a copy of the corporation=s ACertification of Account Status@ from the Texas State Comptroller of Public Accounts. ii. Provide the corporation=s charter number as recorded with the Office of the Texas Secretary of State. iii. Provide a listing of all stockholders and their respective percentages of ownership. iv. Provide a copy of the company's organizational chart, if available. v. Provide a list of all directors and disclose the tile of each individual. vi. Provide a list of all affiliated organizations (if any) and explain the relationship with the applicant. TCEQ-10362 (REV 4/09) Page 7 of 28 C. If the applicant is a Water Code Chapter 67 water supply or sewer service corporation: Not Applicable i. Provide a copy of the Articles of Incorporation and By -Laws. ii. Provide the corporation=s charter number as recorded with the Office of the Texas Secretary of State. iii. Identify all members including name, address, title, and telephone number. iv. Provide a copy of the corporation's Certificate of Account Status from the Texas Comptroller of Public Accounts. 2. LOCATION INFORMATION A. Are there people already living in the proposed area? YES X NO If YES, are any currently receiving utility service? YES NO X if YES, from Whom? Demonstrate the Need for Service by providing the following: B. Have you received any requests for service in the requested service area? YES X NO if YES, provide the following: i. Describe the service area and circumstances driving the need for service in the requested area. Indicate the name(s) and address(es) of landowner(s), prospective landowner(s), tenant(s), or resident(s) that have requested service; and/or: Warner Ranch PUD among other developers are requesting- water service. The requested area to amend is in Round Rocks' city limits. The City of Round Rock can provide immediate water service with minimal cost for infrastructure improvements. ii. Describe the economic need(s) for service in the requested area (i.e. plat approvals, recent annexation(s) or annexation request(s), building permits, septic tank permits, hospitals, etc.); and/or: Plat approvals, building permits, PUD service request. iii. Discuss in detail the environmental need(s) for service in the requested area (i.e. failing septic tanks in the requested area, fueling wells, etc.); and/or Not Applicable iv. Provide copies of any written applications or requests for service in the requested area; and/or See attached letter from Warner Ranch PUD v. Provide copies of any reports and/or market studies demonstrating existing or anticipated growth in the requested area. If no, please justify the need for service in the proposed area. Over the past several years the City of Round Rock has had numerous developers in this area wanting to develop, yet prevented due to lack of utility service. vi. If none of these items exist or are available, please justify the need for service in the proposed area in writing. Not applicable. Note: Failure to demonstrate a need for additional service in the proposed service area may result in the delay and /or possible denial of the application. C. Is any portion of the proposed service area inside an incorporated city or district? YES X NO If YES, within the corporate limits of: City of Round Rock (applicant) Provide a copy of any franchise, permit, or consent granted by the city or district. If not available please explain: Proposed service areas are inside only the City of Round Rock (applicant) city limits and /or ETJ — proposed service areas are not within any other incorporated city TCEQ-10362 (REV 4/09) Page 8 of 28 D. Is any portion of the proposed service area inside another utility=s CCN area? YES X NO If YES, has the current CCN holder agreed to decertify the proposed area? YES NO X If NO, are you seeking dual or single certification of the area? Explain why decertification of the area is in the public interest Yes. The City of Round Rock is seeking dual certification of the area. According to TCEQ the current service provider is shown to be TP Investments. The CCN number is 12064. The area's North boundary is Louis Henna Blvd. The East boundary is Warner Ranch Drive. The South boundary is approximately 156 feet from Dry Branch Creek. The West boundary is Jazz St. 3. MAP REQUIREMENTS: Attach the following hard copy maps with each copy of the application: See attached maps and compact disk with digital shapefiles A. A general location map delineating the proposed service area with enough detail to accurately locate the proposed area within the county. B. A map showing only the proposed area by: metes and bounds survey certified by a licensed state or register professional land surveyor; or projectable digital data with metadata (proposed areas should be in a single record and clearly labeled). Also, a data disk labeled with the applicant's name must be provided; or following verifiable natural and man-made landmarks; or a copy of recorded plat map with metes and bounds. C. A written description of the proposed service area. The proposed service area is bound by Louis Henna Blvd from Jazz St. to approximately 301 feet to the west of A. W. Grimes Blvd. then runs Southeast to approximately 302 feet South of Louis Henna Blvd., then runs Northeast to AW Grimes Blvd. The boundary then runs Southeast along Louis Henna Blvd.approximately 305 feet, then runs Southwest approximately 250 feet. The boundary then runs Southeast approximately 180 eet then turns Northeast and runs a roximatel 295 eet. The bounda then runs Southeast alon AW Grimes Blvd approximately 110 feet then runs Southwest approximately 530 feet. The boundary then runs Northwest approximately 1000 feet, then jogs Northwest along Warner Ranch Dr approximately 150 feet. The boundary then runs West approximately 662 feet, then runs Northwest along Jazz St. and closes the boundary at Jazz St. and Louis Henna Blvd There is a second boundary in the same area that starts approximately 160 feet North of the Northeast end of Thibodeaux Dr. and runs Southeast approximately 166 feet, then runs Southwest approximately 137 feet. Then boundary then runs Southeast approximately 1,525 eet then runs Norrtheast a roximatel 607 eet. The bounda then runs Southeast approximately 576 feet, then runs Southwest approximately 405 feet. The boundary then runs Northwest approximately 527 feet, then runs Southwest approximately 402 feet. The boundary then runs Southeast approximately 575 feet, it then runs Southwest approximately 1500 feet. The boundary then runs Northwest approximately 1300 feet, it then runs Southwest approximately 267 feet. The boundary then runs Northwest approximately 1800 feet, it then runs Northeast approximately 1700 feet and closes the boundary. Provide separate and additional maps of the proposed area(s) to show the following: i. all facilities, illustrating separately facilities for production, transmission, and distribution TCEQ-10362 (REV 4/09) Page 9 of 28 of the applicant's service(s); and ii. any facilities, customers or area currently being served outside the applicant's certificated area(s). Note: Failure to provide adequate mapping information may result in the delay or possible denial of your application. Digital data submitted in a format other than ESRI AreGIS may result in the delay or inability to review applicant's mapping information. 4. NEW SYSTEM INFORMATION OR UTILITIES REQUESTING A CCN FOR THE FIRST TIME A. Please provide the following information: i. a list of public drinking water supply system(s) or sewer system(s) within a 2 mile radius of the proposed system; Round Rock and Manville ii. copies of written requests seeking to obtain service from each of the public drinking water systems or sewer systems listed in #4.A.i above or documentation that it is not economically feasible to obtain service from each entity; See letter from Warner Ranch PUD iii. copies of written responses from each system or evidence that they did not reply; and iv. for sewer utilities, documentation showing that you have obtained or applied for a wastewater discharge permit. Not Applicable B. Were your requests for service denied? Not Applicable i. If yes, please provide documentation of the denial of service and go to 4.C. ii. If no, please provide a detailed analysis which justifies your reasons for not accepting service. A separate analysis must be prepared and submitted for each utility that granted your request for service. C. Please summarize how the proposed utility system will be constructed and describe each projected construction phase, if any: The Citv of Round Rock has offsite utilities to serve the proposed area. Future water service installments in this area will be constructed b develo i ers. D. Date of plat approval, if Not Applicable required: Approved by: E. Date Plans & Specifications submitted for Not Applicable Log No. approval Attach copy of approval letter if available. F. Date construction is scheduled to Not Applicable commence G. Date service is scheduled to commence Not Applicable 5. EXISTING SYSTEM INFORMATION A. Please provide the following information for each water and/or sewer system, attach additional sheets if necessary. i. Water system's TCEQ Public Water Sstem identification number(s): 6 0 0 0 7 2 4 ii. Sewer system's TCEQ Discharge Permit number(s) 1 1 1 1 1 1 1 1 1 1 1 TCEQ-10362 (REV 4/09) 1 1 1 1 1 1 1 1 1 1 Page 10 of 28 iii Date of last June 27, 2007 inspection iv Attach a copy of the most recent inspection report letter. See attached inspection report letter. v. For each system deficiency listed in the inspection report letter, attach a brief explanation listing the actions taken or being taken by the utility to correct the listed deficiencies, including the proposed completion dates. B. Provide the following information about the utility=s certified operators. See attached utility certified operators Name Classes License Number - Attach additional sheet(s) if necessary — C. Using the current number of customers, is any facility component in systems named in #5A above operating at 85% or greater of minimum standard capacity? YES NO X Attach an explanation listing the actions to be taken to make system improvements including proposed completion dates (See 291.93(3)(A) of TCEQ Rules). D. List in the table below, the number of existing and/or proposed metered and non -metered connections (by size). The proposed number should reflect the information presented in the business plan or financial documentation and reflect the number of service requests identified in Question 2.b in the application. Water System Sewer System Connection Existing Proposed Connection Existing Proposed 5/8" or 3/4" meter 29,351 1200 Residential N/A N/A 1" meter or larger 1454 113 Commercial N/A N/A Non -Metered N/A N/A Industrial N/A N/A Other: N/A N/A Other: N/A N/A Total Water 30,805 1,313 Total Sewer N/A N/A E. If this application is for a water CCN only, please explain how sewer service is or will be provided: The sewer service for this area is provided by: The City of Round Rock and Southwest Water Company. TCEQ-10362 (REV 4/09) Page 11 of 28 F. If this application is for a sewer CCN only, please explain how water service is or will be provided: Not Applicable. G Effect of Granting a Certificate Amendment. Explain in detail the effect of granting of a certificate or an amendment, including, but not limited to regionalization, compliance and economic effects on the following: i the applicant, ii any retail public utility of the same kind already serving the proximate area; and iii any landowner(s) in the requested area. The effect of granting this request on the applicant (Round Rock) is that the change in water service CCN will ensure a CCN designation for this area and will spur growth and development in the area. H Do you currently purchase or plan to purchase water or sewer treatment capacity from another source? i No X (skip the rest of this question and go to #6) ii Water Yes Purchased on a X regular seasonal Emergency basis? Source % of Total Treatment Brazos River Authority Lake Georgetown and Lake Stillhouse Hollow 92 Ground Water 8% iii Sewer treatment capacity iv Yes Purchased on a regular seasonal Emergency basis? Source of Total Treatment vi Provide a signed and dated copy of the most current water or sewer treatment capacity purchase agreement or contract. TCEQ-10362 (REV 4/09) Page 12 of 28 Ability to Provide Adequate Service. Describe the ability of the applicant to provide adequate service, including meeting the standards of the commission, taking both of the following items into consideration: i. the current and projected density, and ii. the land use of the requested area. The City of Round Rock has the water infrastructure capacity available to serve the proposed area. J Effect on the Land. Explain the effect on the land to be included in the certificated area. Will provide positive effect on by enabling The City of Round Rock to commit to providing water service to this area, which will enable growth and development. 6. FINANCIAL INFORMATION A. For new systems and for applicants with existing CCNs who are constructing a new stand alone system: Not Applicable i. the applicant must provide an analysis of all necessary costs for constructing, operating, and maintaining the system, and the source of that capital (such as a financial statement for the developing entity) for which the CCN is requested for at least the first five years. In addition, if service has been offered by an existing water service provider as stated in #4.A., but the applicant has determined that the cost of service as finally offered renders the project not economically feasible, the applicant must provide a comparison analysis of all necessary costs for acquiring and continuing to receive service from the existing system for the same period. ii. Attach projected profit and loss statements, cash flow worksheets, and balance sheets (projected five year financial plan worksheet is attached) for each of the first five years of operation. Income from rates should correlate to the projected growth in connections, shown on the projected profit and loss statement. iii. Attach a proposed rate schedule or tariff. Describe the procedure for determining the rates and fees and indicate the date of last change, if applicable. Attach copies of any cost of service studies or rate analysis worksheets. B. For existing systems: i. Attach a profit and loss statement and current balance sheet for existing businesses (end of last fiscal year is acceptable). Describe sources and terms for borrowed capital such as loans, bonds, or notes (profit and loss and balance sheet worksheets are attached, if needed). See attached Comprehensive Annual Finacial Report ii. Attach a proposed rate schedule or tariff. *NOTE: An existing system may be required to provide the information in 6.A.i. above during the technical review phase if necessary for staff to completely evaluate the application. C. Identify any funds you are required to accumulate and restrict by lenders or capital providers. Not Applicable D. In lieu of the information in #6.A. thru #6.C., you may provide information concerning loan approvals within the last three (3) years from lending institutions or agencies including the most recent financial audit of the applicant. Not Applicable Note: Failure to provide adequate financial information may result in the delay or possible denial of your application. 7. NOTICE REQUIREMENTS A. All proposed notice forms must be completed and submitted with the application. However, do not mail or publish them until you receive written approval from the Commission to do so. TCEQ-10362 (REV 4/09) Page 13 of 28 B. The Commission cannot grant a CCN until proper notice of the application has been given. Commission rules do not allow a waiver of these notice requirements for CCN applicants. C. It is the applicant=s responsibility to ensure that proper notice is given to all entities that are required to receive notice. D. Recommended notice forms for publication, neighboring cities and systems, landowners with 25 acres or more, and customers are included with this application to use in preparing your proposed notices. (These notice forms are also available in Spanish upon request.) E. After reviewing and, if necessary, modifying the proposed notice, the Commission will send the notice to the applicant after the application is accepted for filing along with instructions for publication and/or mailing. Please review the notice carefully and note any additional neighboring utilities which may be included in the acceptance letter. F. Notice For Publication: The applicant shall publish the notice in a newspaper having general circulation in the county or counties where a CCN is being requested, once each week for two consecutive weeks beginning with the week after the notice is received from the Commission. Proof of publication in the form of a publisher=s affidavit shall be submitted to the Commission within 30 days of the last publication date. The affidavit shall state with specificity each county in which the newspaper is of general circulation. G. Notice To Neighboring Utilities: i. List all neighboring retail public utilities and cities providing the same utility service within the following vicinities of the applicant's proposed certificate area. ii. For applications for the issuance of a NEW CCN, the applicant must mail the notice with a copy of the proposed CCN map to all cities and neighboring retail public utilities providing the same utility service within five (5) miles of the requested service area. iii. For applications for the AMENDMENT of a CCN, the applicant must mail the notice with a copy of the proposed CCN map to all cities and neighboring retail public utilities providing the same utility service within two (2) miles of the requested service area. H. Notice to Customers Investor Owned Utilities (IOUs) that are currently providing service without a CCN must provide individual mailed notice to all current customers. The notice must contain the current rates, the date those rates were instituted and any other information required in the application. The notice must also list all zip codes affected by the application. Not Applicable I. The Commission may require the applicant to deliver notice to other affected persons or agencies. Do not publish or send copies of the proposed notices to anyone at the time you submit the application to the Commission. Wait until you receive written authorization to do so. This will occur after the Commission has reviewed the notices for completeness, and your application has been accepted for filing. Once the application is accepted for filing, you will receive written authorization to provide notice. Please check the notices for accuracy before providing them to the public. It is the applicant's burden to ensure that correct and accurate notice is provided. TCEQ-10362 (REV 4/09) Page 14 of 28 OATH STATE OF Texas COUNTY OF Williamson I, Steve Norwood ,being duly sworn, file this application as (indicate relationship to Applicant, that is, owner, member of partnership, title as officer of corporation, or other authorized representative of Applicant); that, in such capacity, I am qualified and authorized to file and verify such application, am personally familiar with the maps and financial information filed with this application, and have complied with all the requirements contained in this application; and, that all such statements made and matters set forth therein are true and correct. I further state that the application is made in good faith and that this application does not duplicate any filing presently before the Texas Commission on Environmental Quality. I further represent that the application form has not been changed, altered or amended from its original form available only from the Commission. I further represent that the Applicant will provide continuous and adequate service to all customers and qualified applicants for service within its certificated service area. AFFIANT (Utility's Authorized Representative) If the Affiant to this form is any person other than the sole owner, partner, officer of the Applicant, or its attorney, a properly verified Power of Attorney must be enclosed. SUBSCRIBED AND SWORN TO BEFORE ME, a Notary Public in and for the State of Texas, this day itt. of ';i4, .44,A , 20 U . SEAL TCEQ-10362 (REV 4/09) ghligLm NOTARY PiJBLIC IN AND FOR THE STATE OF TEXAS Qozh L. Wisftre PRINT OR TYPE NAME OF NOTARY MY COMMISSION EXPIRES atIA' �' 04)12 - Page 15 of 28 Notice for Publication NOTICE OF APPLICATION FOR CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) TO PROVIDE WATER/SEWER UTILITY SERVICE IN COUNTY(IES), TEXAS Name of Applicant has filed an application for a CCN to obtain or amend CCN No. and to decertify a portion(s) of with the Texas Commission on Environmental Quality to provide (Name of Decertificated Utility) (specify 1) water or 2) sewer or 3) water & sewer) utility service in County(ies). The proposed utility service area is located approximately miles [direction] of downtown ,[City or Town] Texas, and is generally bounded on the north by ;on the east by ;on the south by ;and on the west by See enclosed map of the proposed service area. The total area being requested includes approximately acres and current customers. The proposed amendment affects customers and/or areas located in the following zip code(s): (List All Affected Zip Codes) A copy of the proposed service area map is available at (Utility Address and Phone Number): A request for a public hearing must be in writing. You must state (1) your name, mailing address, and daytime telephone number; (2) the applicant's name, application number or another recognizable reference to this application; (3) the statement, I/we request a public hearing"; (4) a brief description of how you or the persons you represent, would be adversely affected by the granting of the application for a CCN; and (5) your proposed adjustment to the application or CCN which would satisfy your concerns and cause you to withdraw your request for a hearing. Persons who wish to intervene or comment should write the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 within thirty (30) days from the date of this publication or notice. A public hearing will be held only if a legally sufficient hearing request is received or if the Commission on its own motion requests a hearing. Only those individuals who submit a written hearing request or a written request to be notified if a hearing is set will receive notice if a hearing is scheduled. TCEQ-10362 (REV 4/09) Page 16 of 28 If a public hearing is requested, the Executive Director will not issue the CCN and will forward the application to the State Office of Administrative Hearings (SOAH) for a hearing. If no settlement is reached and an evidentiary hearing is held, the SOAH will submit a recommendation to the Commission for final decision. If an evidentiary hearing is held, it will be a legal proceeding similar to a civil trial in state district court. If you are a landowner with a tract of land at least 25 acres or more, that is partially or wholly located within the proposed area, you may request to be excluded from the proposed area (or Aopt out@) by providing written notice to the Commission within (30) days from the date that notice was provided by the applicant. All requests to opt out of the requested service area must include a scaled, general location map and a metes and bounds description of the tract of land. Persons who meet the requirements to opt out, and wish to request this option should file the required documents with the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 A copy of the request to opt out of the proposed area must also be sent to the applicant. Staff may request additional information regarding your request. TCEQ-10362 (REV 4/09) Si desea informacion en Espanol, puede llamar al 1-512-239-0200. Page 17 of 28 To: Notice to Neighboring Systems, Landowners and Cities NOTICE OF APPLICATION FOR CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) TO PROVIDE WATER/SEWER UTILITY SERVICE IN COUNTY(IES), TEXAS (Neighboring System, Landowner or City) (Address) City State Zip Date Notice Mailed , 20 Name of Applicant has filed an application for a CCN /to amend CCN No. and to decertify a portion(s) of with the Texas Commission on Environmental Quality to provide (Name of Decertificated Utility) (specify 1) water or 2) sewer or 3) water & sewer) utility service in County(ies). The proposed utility service area is located approximately miles [direction] of downtown ,[City or Town] Texas, and is generally bounded on the north by ;on the east by ;on the south by ;and on the west by See enclosed map of the proposed service area. The total area being requested includes approximately acres and current customers. The proposed amendment affects customers and/or areas located in the following zip code(s): (List All Affected Zip Codes) A request for a public hearing must be in writing. You must state (1) your name, mailing address, and daytime telephone number; (2) the applicant's name, application number or another recognizable reference to this application; (3) the statement, I/we request a public hearing"; (4) a brief description of how you or the persons you represent, would be adversely affected by the granting of the application for a CCN; and (5) your proposed adjustment to the application or CCN which would satisfy your concerns and cause you to withdraw your request for a hearing. Persons who wish to intervene or comment should write the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 within thirty (30) days from the date of this publication or notice. A public hearing will be held only if a legally sufficient hearing request is received or if the Commission on its own motion requests a hearing. Only those individuals who submit a written hearing request or a written request to be notified if a hearing is set will receive notice if a hearing is scheduled. TCEQ-10362 (REV 4/09) Page 18 of 28 If a public hearing is requested, the Executive Director will not issue the CCN and will forward the application to the State Office of Administrative Hearings (SOAH) for a hearing. If no settlement is reached and an evidentiary hearing is held, the SOAH will submit a recommendation to the Commission for final decision. If an evidentiary hearing is held, it will be a legal proceeding similar to a civil trial in state district court. If you are a landowner with a tract of land at least 25 acres or more, that is partially or wholly located within the proposed area, you may request to be excluded from the proposed area (or Aopt out@) by providing written notice to the Commission within (30) days from the date that notice was provided by the applicant. All requests to opt out of the requested service area must include a scaled, general location map and a metes and bounds description of the tract of land. Persons who meet the requirements to opt out, and wish to request this option should file the required documents with the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 A copy of the request to opt out of the proposed area must also be sent to the applicant. Staff may request additional information regarding your request. TCEQ-10362 (REV 4/09) Si desea informacion en Espanol, puede llamar al 1-512-239-0200. Page 19 of 28 Notice to Customers of IOUs in Proposed Area NOTICE OF APPLICATION FOR CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) TO PROVIDE WATER/SEWER UTILITY SERVICE IN COUNTY Dear Customer: Date Notice Mailed , 20 Name of Applicant has filed an application for a CCN to amend CCN No. and to decertify a portion(s) of with the Texas Commission on Environmental Quality to provide (Name of Decertificated Utility) (specify 1) water or 2) sewer or 3) water & sewer) utility service in County(ies). The proposed utility service area is located approximately miles downtown , [City or Town] Texas. [direction] of A copy of the proposed service area map is available at the Utility Address and Phone Number: The proposed amendment affects customers and/or areas located in the following zip code(s): (List All Affected Zip Codes) The current utility rates which were first effective on • Monthly Flat Rate of per connection Miscellaneous Fees -OR- • Monthly Base Rate including per connection for: Other 5/8" meter 1" meter 1 1/2" meter 2" meter gallons Gallonage charge of $ Per 1,000 Gallons above minimum (same for all meter sizes) Regulatory Assessment Tap Fee (Average Actual ost) Reconnection fee: - Non Payment ($25.00 Zax) - Transfer - Customer's request Late fee Returned Check charge Customer Deposit ($50.00 max) Meter test fee (Actual Cost not Exceed $25.00) Other Fees , 20 1% $5.00 or 10% Your utility service rates and fees cannot be changed by this application. If you are currently paying rates, those rates must remain in effect unchanged. Rates may only be increased if the utility files and gives notice of a separate rate change application. TCEQ-10362 (REV 4/09) Page 20 of 28 A request for a public hearing must be in writing. You must state (1) your name, mailing address, and daytime telephone number; (2) the applicant's name, application number or another recognizable reference to this application; (3) the statement, I/we request a public hearing"; (4) a brief description of how you or the persons you represent, would be adversely affected by the granting of the application for a CCN; and (5) your proposed adjustment to the application or CCN which would satisfy your concerns and cause you to withdraw your request for a hearing. Persons who wish to intervene or comment should write the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 within thirty (30) days from the date of this publication or notice. A public hearing will be held only if a legally sufficient hearing request is received or if the Commission on its own motion requests a hearing. Only those individuals who submit a written hearing request or a written request to be notified if a hearing is set will receive notice if a hearing is scheduled. If a public hearing is requested, the Executive Director will not issue the CCN and will forward the application to the State Office of Administrative Hearings (SOAH) for a hearing. If no settlement is reached and an evidentiary hearing is held, the SOAH will submit a recommendation to the Commission for final decision. If an evidentiary hearing is held, it will be a legal proceeding similar to a civil trial in state district court. IF A HEARING IS HELD, it is important that you or your representative attend to present your concerns. Your request serves only to cause a hearing to be held and is not used during the hearing. If you are a landowner with a tract of land at least 25 acres or more, and is partially or wholly located within the proposed area, you may request to be excluded from the proposed area (or Aopt out@) by providing written notice to the Commission within (30) days from the date that notice was provided by the applicant. All requests to opt out of the requested service area must include a scaled, general location map and a metes and bounds description of the tract of land. Persons who meet the requirements to opt out, and wish to request this option should file the required documents with the: Texas Commission on Environmental Quality Water Supply Division Utilities and Districts Section, MC -153 P. O. Box 13087 Austin, TX 78711-3087 A copy of the request to opt out of the proposed area must also be sent to the applicant. Staff may request additional information regarding your request. TCEQ-10362 (REV 4/09) Si desea informacion en Espanol, puede llamar al 1-512-239-0200 Page 21 of 28 HISTORICAL BALANCE SHEETS CURRENT ASSETS Cash CURRENT A-1 YEAR A-2 YEAR A-3 YEAR A-4 YEAR A-5 YEAR YEAR (A) Accounts Receivable Inventories Income Tax Receivable Other FIXED ASSETS Land Total Collection/Distribution System Buildings Equipment Other Less: Accum. Depreciation or Reserves Total TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Notes Payable, Current Accrued Expenses Other LONGTERM LIABILITIES Notes Payable, Long-term Total Other TOTAL LIABILITIES OWNER'S EQUITY Paid in Capital Retained Equity Other Current Period Profit or Loss TOTAL OWNER'S EQUITY TOTAL LIABILITIES AND EQUITY WORKING CAPITAL CURRENT RATIO DEBT TO EQUITY RATIO EQUITY TO TOTAL ASSETS TCEQ-10362 (REV 4/09) Page 22 of 28 HISTORICAL INCOME STATEMENT METER NUMBER Existing Number of Taps CURRENT YEAR (A) A-1 YEAR A-2 YEAR A-3 YEAR A-4 YEAR A-5 YEAR New Taps per Year Total Meters at Year End METER REVENUE Fees Per Meter Cost Per Meter Operating Revenue Per Meter GROSS WATER REVENUE Fees Other Gross Income OPERATING EXPENSES General & Administrative Interest Other NET INCOME TCEQ-10362 (REV 4/09) Page 23 of 28 HISTORICAL GENERA1JADMINISTRATNE EXPENSES Salaries CURRENT YEAR (A) A-1 YEAR A-2 YEAR A-3 YEAR A-4 YEAR Office Expense Computer Expense Auto Expense Insurance Expense Telephone Expense Utilities Expense Depreciation Expense Property Taxes Professional Fees Other Total % Increase Per Year OPERATIONAL EXPENSES Salaries Auto Expense Utilities Expense Depreciation Expense Repair & Maintenance Supplies Other Total Increase Per Year ASSUMPTIONS Interest Rate/Terms Utility Cost/gal. Depreciation Schedule Other TCEQ-10362 (REV 4/09) Page 24 of 28 A-5 YEAR PROJECTED BALANCE SHEE CURRENT ASSETS Cash START UP YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Accounts Receivable Inventories Income Tax Receivable Other Total FIXED ASSETS Land Collection/Distribution System Buildings Equipment Other Less: Accum. Depreciation or Reserves Total. TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Notes Payable, Current Accrued Expenses Other Total LONGTERM LIABILITIES Notes Payable, Long-term Other TOTAL LIABILITIES OWNER'S EQUITY Paid in Capital Retained Equity Other Current Period Profit or Loss TOTAL OWNER'S EQUITY TOTAL LIABILITIES AND EQUITY WORKING CAPITAL CURRENT RATIO DEBT TO EQUITY RATIO EQUITY TO TOTAL ASSETS TCEQ-10362 (REV 4/09) Page 25 of 28 PROJECTED INCOME ST METER NUMBER YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTALS Existing Number of Taps New Taps per Year Total Meters at Year End METER REVENUE Fees Per Meter Cost Per Meter Operating Revenue Per Meter GROSS WATER REVENUE Fees Other Gross Income OPERATING EXPENSES General & Administrative Interest Other NET INCOME TCEQ-10362 (REV 4/09) Page 26 of 28 PROJECTED EXPENSES STATEMENT GENERAL/ADMINISTRATIVE EXPENSES YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTALS Salaries Office Expense Computer Expense Auto Expense Insurance Expense Telephone Expense Utilities Expense Depreciation Expense Property Taxes Professional Fees Other Total % Increase Per Year OPERATIONAL EXPENSES Salaries Auto Expense Utilities Expense Depreciation Expense Repair & Maintenance Supplies Other Total Increase Per Year ASSUMPTIONS Interest Rate/Terms Utility Cost/gal. Depreciation Schedule Other TCEQ-10362 (REV 4/09) Page 27 of 28 PROJECTED SOURCES AND USES OF CASH STATEMENTS SOURCES OF CASH Net Income YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTALS Depreciation (if Funded) Loan Proceeds Other _--■ Total Sources USES OF CASH Net Loss Principle Portion of Pmts. Fixed Asset Purchase Reserve -_-_ ■_ Other TOTAL USES NET CASH FLOW DEBT SERVICE COVERAGE Cash Available for Debt Service (CADS) Net Income (Loss) ■_■ ■_-- Depreciation , or Reserve Interest ■_ TOTAL REQUIRED DEBT SERVICE (RDS) Principle Plus Interest DEBT SERVICE COVERAGE RATIO CADS Divided by RDS ■_ , TCEQ-10362 (REV 4/09) Page 28 of 28