designee, for each nonresidential commercial customer other than an industrial customer who uses water for processing purposes. The non-residential customer's allocation shall be approximately seventy-five (75%) percent of the customer's usage for corresponding month's billing period for the previous twelve (12) months. If the customer's billing history is shorter than twelve (12) months, the monthly average for the period for which there is a record shall be used for any monthly period for which no history exists. Provided, however, a customer, whose monthly usage is less than 6,000 gallons, shall be Allocated 6,000 gallons. The General Manager shall give his/her best effort to see that notice of each non-residential customer's allocation is mailed to such customer. If. howeverI a customer does no not receive such notice, it shall be the customer's responsibility to contact Dog Ridge WSC to determine the allocation. Upon request of the customer or at the initiative of the manager, the allocation may b be reduced or increased if, (1) the designated period does not accurately reflect the customer's normal water usage, (2) one nonresidential customer agrees to transfer part of its allocation another nonresident sidential customer, or (3) other objective evidence demonstrates that the designated allocation is inac ^curate under present conditions. A customer may appeal an allocation established hereunder to Do^ Ridge WSC's Board of Directors. Nonresidential commercial customers shall pay the following surcharges: Customers I whose allocation is 6,000 gallons per month: $.50 per t^housand gallons for the first 1,000 gallons over allocation. $.75 per thousandl gallons for the second 1,000 gallons over allocation. $1.00 per thousandl'^ gallons for the third 1,000 gallons over allocation. $1.50 per thousand lgallons for each additional 1,000 gallons over allocation. Customers whose allocation is 100,000 gallons per month or more: 1.25 times the block rate for each 1,000 gallons is excess of the allocation up through 10 percent Above allocation. 1.50 time's the block rate for each 1,000 gallons from 10.1 percent through 20 percent above allocatio#^. 1.75 times the block rate for each 1,000 gallons from 20.1 percent though 30 percent above allocation. 2.5 times the block rate for each 1,000 gallons more than 30 percent above allocation. The surcharge shall be cumulative. As used herein, "block rate" means the charge to the customer per 1,000 gallons at the regular water rate schedule at the level of the customer's allocation. Page-48^^. 2 0 2 a^^'^i4 Industrial CustQmers - A monthly water allocation shall be established by the general manager, or his/her designee, or each industrial customer, which uses water for processing purposes. The industrial customer's allocation shall be approximately eighty percent (80%) percent of the customer's water usage baseline. Ninety (90) days after the initial imposition of the allocation for industrial customers, the industrial customer's allocation shall be further reduced to sixty percent (60%) percent of the customer's water'lusage baseline. The industrial customer's water use baseline will be computed on the average water use for the six month period ending prior to the date of implementation of Stage 3 of the Plan. If the industrial water customer's billing history is shorter than six (6) months, the monthly average for the p&iod for which there is a record shall be used for any monthly period for which billing history exists. The general manager shall give his/her best effort t see that notice of each industrial customer's allocation is mailed to such customer. If, however, a customer does not receive such notice, it shall be the customer's responsibility to contact Dog Ridge WSC to determine the allocation, and the allocation shall be fully effective notwithstanding the lack of receipt of written notice. Upon request of the customer or at the initiative of the General Manager, the allocation may be reduced or increased, (1) if the designated period does not accurately reflect the customer's normal water use because the customer had shutdown a major processing unit for repair or overhaul during the period, (2) the customer has added or is in the process of adding significant additional processing capacity, (3) the customer has shutdown or significantly reduced the production of a major processing unit, (4) the customer has previously implemented significant permanent water conservation measures such that the ability to further educe water use is limited, (5) the customer agrees to transfer part of its allocation to another industri^l customer, or (6) if other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. A customer may appeal an allocation established hereunder to the IiBoard of Directors. Industrial customers shall pay the following surcharges: Customers whose allocation is 6,000 gallons through 100,000 gallons per month: $0.50 pe^ thousand gallons for the first 10,000 gallons over allocation. $0.75 per thousandI gallons for the second 10,000 gallons over allocation. $1.00 per thousand gallons for the third 10,000 gallons over allocation. $1.50 per thousand gallons for each additional 10,000 gallons over allocation. Customers whoe allocation is 200,000 gallons per month or more: 1.25 times the block rate for each 1,000 gallons is excess of the allocation up through 10 percent above allocation. 1.5 timesthe block rate for each 1,000 gallons from 10.1 percent through 20 percent above allocation. 1.75 time's the block rate for each 1,000 gallons from 20.1 percent though 30 percent above allocatio^n. Page-49- •K r_ IV, 2 0 23A 2.5 times the block rate for each 1,000 gallons more than :30 percent above allocation. The surcharges ^hall be cumulative. As used herein, "block rate" means the charge to the customer per 1,000 gallons at. the regular water rate schedule at the level of the customer's allocation. 10. Eiiforceme tL a) No pers^n shall knowingly or intentionally allow the use of water from Dogg Ridge WSC for residenth ' 1, commercial, industrial, agricultural, govemmental, or any other purpose in a manner contrary^o any provision of this Plan, or in an amount in excess of that permitted by the drought response stage in effect at the time pursuant to action taken by the General Manager, or his/her designe^, in accordance with provisions of this Plan. b.) If a merr^ber violates one or more of the provisions in this Plan, the General Manager shall give notilce of violation to the customer. The General Manager is authorized to discontinue water se^vice to the premises where such violations occur if a member has been notified of three (3) violations within any sixty (60) day period.. Services discontinued under such circumst^ces shall be restored only upon payment of a re-connection charge, hereby established at $200.00, and any other costs incurred by Dog Ridge WSC in discontinuing service. ^1i addition, suitable assurance must be given to the General Manager that the same action shall not the repeated while the Plan is in effect. Compliance with this plan may also be sought through injunctive relief in any district court. c) Any perslion, including a person classified as a water customer of Dog Ridge WSC, in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person's property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation but any such person shall have the right to show that he/she did not commit the violatior^. d) Any employee of Dog Ridge WSC or other employee designated by the General Manger, may issue a n^tice of violation to a person he/she reasonably believes to be in violation of this Plan. 11. Variances , The General Mahager, or his/her designee, may, in writing, gim1t temporary variance for existing water uses otherwise prohibited under this Plan if it is determined that failure to grant such variance would cause an emergency condition adversely affecting the health, sanitation, or fire protection for the public or the person requesting such variance and it one or more of the following conditions are met: a) Complianc^ with this Plan cannot be technically accomplished during the duration of the water supply sho age or other condition for which the Plan is in effect. Page - 50 r- , b) Alternativei methods can be implemented which will achieve the same level of reduction in water use. I Persons requesting an exemption from the provisions of this Plan shall file a petition for variance with Dog Ridge WS within five (5) days after the Plan or a particular drought response stage has been invoked. All pet tions for variances shall be reviewed by the General Manager, or his/her designee, shall include thi following: a) Name and Address of the petitioner(s). b) Purpose of water use. c) Specific provision(s) of the Plan from which the petitioner is requesting relief. d) Detailed ^tatement as to how the specific provision of the Plan adversely affects the petitioner or what damage or harm will occur to the petitioner or others if petitioner complies with this Plan. e) Description of the relief requested. fl Period o^time for which the variance is sought. g) Altemati^e water use restrictions or other measures the petitioner is taking or proposes to take to meet the intent of this Plan and the compliance date„ h) Other pertinent information. Variances granted by Dog Ridge WSC shall be subject to the following conditions, unless waived or modified by the manager or his/her designee: a) Variance^ granted shall include a timetable for compliance. b) Variancel granted shall expire when the Plan is no longer in effect, unless the petitioner has failed to meet specified requirements. No variance shahl be retroactive or otherwise justify any violation. of this Plan occurring prior to the issuance of the variance. Page-51- ^^. 2 0 20"A w ,,,,-:^ UT1? I..,s . .^ ^1' r,,`^^^^S NON-STANDARD SERVICE AGREEMENT THE STATE OF TEXAS § COUNTY OF BELL § THIS AGREEMENT is made and entered into by and between hereinafter referred to as "Developer," and Dog Ridge Water Supply Corporation, hereinafter referred to as "DRWSC" or "Dog Ridge WSC". WHEREAS, Developer is engaged in developing that certain tract containing approximately acres of land in Bell, County, Texas, more particularly described in exhibit "A" attached hereto and incorporated herein, said land being hereinafter referred to as "the Property"; and, WHEREAS, Dog Ridge WSC owns and operates a water system which supplies potable water for human consumption and other domestic uses to customers within its service area; and, WHEREAS, Developer has requested Dog Ridge WSC to provide such water service to the Property through an extension of Dog Ridge WSC's water system, such extension being hereinafter referred to as "the Water System Extension"; NOW THEREFORE: THAT for and in consideration for the mutual promises hereinafter expressed, and other good and valuable consideration, the sufficiency of which is hereby acknowledged by the parties, Developer and Dog Ridge WSC agree as follows: Engineering and Design of the Water System Extension. (A.) The Water System Extension shall be engineered and designed Dog Ridge Water (B.) Supply Corporation's Consulting Engineer who is a Texas Registered Professional Engineer and shall be in accordance with the applicable specifications of Dog Ridge WSC, in compliance with law and with the rules and regulations of all governmental agencies having jurisdiction. All plans and specifications must be approved by Dog Ridge WSC's consulting engineer prior to the issuance of any request for bids for the construction of the Water System Extension. After such approval of the plans and specifications by Dog Ridge WSC's consulting engineer, the plans and specifications shall become part of this Agreement by reference, shall not be modified without the consent of Dog Ridge WSC and shall particularly define "the Water System Extension." The Water System Extension must be sized to provide continuous and adequate water service to the property based on plans for the development as the provided to Dog Ridge WSC by the Developer. All service and/or distributions mains within or to the property Page - 52 .^ ^ ,; 2 0 ^^^ 4 ^, t^^^^^ ^ ^ ^^ 7 2. 3. 4. 5. shall be a minimum of eight inches (8"). All taps on Dog Ridge WSC's distribution main shall be contained in a vault and that vault shall contain a suitably sized meter for the purposes of metering all water flowing to the property to be developed. Dog Ridge WSC may require the Water System Extension to be oversized in anticipation of the needs of other customers of Dog Ridge WSC or for the provision or potential provision of future or additional water utility service within or outside of the property, at Dog Ridge WSC's sole and unfettered discretion. Required Easements or Rights-of-Wav. (A.) Developer shall be responsible for dedicating and/or acquiring any easements across privately owned land which are necessary for the construction of the Water System Extension and for obtaining any governmental approvals necessary to construct the Water System Extension in public right-of-way. (B.) Any easements for the placement of water lines or water service facilities acquired by the Developer shall be assigned to Dog Ridge WSC upon proper completion of the construction of the Water System Extension. The validity of the legal instruments by which the Developer acquires any such easements and by which Developer assigns such easements to Dog Ridge WSC must be approved by Dog Ridge WSC's attorney. Construction of the Water System Extension. (A.) Developer shall advertise for bids for the construction of the Water System Extension in accordance with generally accepted bidding practices and shall award the contract for the construction of the Water System Extension subject to the approval of Dog Ridge WSC. Dog Ridge WSC may reject any bid for any reason or for no stated reason and at the sole and absolute discretion of Dog Ridge WSC's Board of Directors. (B.) The Water System Extension shall be constructed in accordance with the approved plans and specifications. Dog Ridge WSC shall have the right to inspect all phases of the construction of the Water System Extension. Developer must give written notice to Dog Ridge WSC of the date on which construction is scheduled to begin so that Dog Ridge WSC may assign an inspector. Dog Ridge WSC shall charge reasonable inspection fees based on the actual costs of labor, travel and incidental expenses of the inspectors, plus ten percent (10%) for Dog Ridge INS C's overhead. Dedication of Water System Extension to Dog Ridge WSC. Upon proper completion of construction of the Water System Extension and final inspection thereof by Dog Ridge WSC, the Water System Extension shall be dedicated and conveyed to the Dog Ridge WSC by an appropriate legal instrument approved by Dog Ridge WSC's Attorney. The Water System Extension shall thereafter be owned and maintained by Dog Ridge WSC. Cost of the Water System Extension. (A.) Developer shall pay all costs associated with the Water System Extension as a contribution in aid of construction, including, without limitation, the cost of the following: (i) engineering and design; (ii) easement or right-of-way acquisition; (iii) construction; Page-531,; C`-1^G y 2 ^ ^^r 0", ^ ^ ^w.. (iv) inspection, including all fees for water use in flushing any Water System Extension, costs of sampling (including but not limited to transportation costs of samples to the Corporation's testing laboratory, fees of the testing laboratory, etc.); (v) (vi) 6. attorneys' fees; and governmental or regulatory approvals and fees required to lawfully provide service. (B.) Developer shall indemnify Dog Ridge WSC and hold Dog Ridge WSC harmless from all of the foregoing costs. Provided, however, nothing herein shall be construed as obligating the Developer to maintain the Water System Extension subsequent to its dedication, conveyance and acceptance for maintenance by Dog Ridge WSC. Service From the Water System Extension. (A.) After proper completion and dedication of the Water System Extension to Dog Ridge WSC, Dog Ridge WSC shall provide water service to the Property, subject to all duly adopted rules and regulations of Dog Ridge WSC and the payment of the following: (i) All standard rates, fees and charges as reflected in Dog Ridge WSC's approved tariff; (ii) Any applicable impact fee adopted by Dog Ridge WSC; (iii) Any applicable reserved service charge adopted by Dog Ridge WSC. (iv) It is understood and agreed by the parties that the obligation of Dog Ridge WSC to provide water service in the mariner contemplated by this Agreement is subject to the issuance by the Texas Commission on Environmental Quality and all other governmental agencies having jurisdiction of all permits, certificates or approvals required to lawfully provide such service. (B.) Unless the prior approval of Dog Ridge WSC is obtained, the Developer shall not: (i) 7. construct or install additional water lines or facilities to service areas outside the Property; (ii) add any additional lands to the Property for which water service is to be provided pursuant to this agreement; or (iii) connect or serve any person or entity who, in turn, sells water service directly or indirectly to another person or entity. Effect of Force Maieure. In the event either party is rendered unable by force majeure to carry out any of its obligations under this Agreement, in whole or in part, then the obligations of that party, to the extent affected by the force majeure shall be suspended during the continuance of the inability, provided however, that due diligence is exercised to resume performance at the earliest practical time. As soon as reasonably possible after the occurrence of the force majeure relied upon to suspend perfonnance, the party whose contractual obligations are atTected thereby shall give notice and full particulars of the force majeure to the other party. The cause, as far as possible, shall be remedied with all reasonable diligence. The term "force majeure" includes acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, orders of the government of the United States or the State, of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, Page - 54 t ^.`1 •^ : d UTiL;-3 ° 2 ^ storms, qoods, washouts, droughts, arrests, restraints of government and civil disturbances, explosio s, breakage, or accidents to equipment, pipelines, or canals, partial or complete failure of water^upply, and any other inability's of either party, whether similar to those enumerated or otherwise, that are not within the control of the party claiming the inability and that could not have been avoided by the exercise of due diligence and care. It is understood and agreed that the settlemerit or strikes and lockouts shall be entirely within the discretion of the party having the difficult^ and that the requirement that any force majeure be remedied with all reasonable dispatch Lll not require the settlement of strikes and lockouts by acceding to the demands of the oppo^ing party if the settlement is unfavorable to it in the judgment of the party having the difficulty. Notices. Any notice to be given by either patty to the other party shall be in writing and may be effected by personal delivery or by sending said notices by registered or certified mail, return receipt ^^quested, to the address set forth below. Notice shall be deemed given when deposited with the United States Postal Service with sufficient postage affixed. Any notice mailed to Dog Ridge Water Supply Corporation shall be addressed: Dog Ridge Water Supply Corporation PI .O. Box 232 $elton, Texas 76513-0232 Any notillce mailed to Developer shall be addressed to: Either party m ay change the address for notice to it by giving notice of such change in accordance with the provisions of this paragraph. 9. Severabili . The provisions of this Agreement are severable, and if any word, phrase, clause, entence, paragraph, section, or other part of this Agreement or the application t hereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be ulvl alid or unenforceable for any reason, the remainder of this Agreement and the application of such Page , ^^^R 2 0 ^'+^a'^ U, T I r ^ IC", i'L 10. 11. 12. 13. 14. 15. 16. word, clause, sentence ara raph, section, or other art of this Agreement to other persons or circumstances shall not be affected thereby and this Agreement shall be construed as if such invalid or unconstitutional portion had never been contained therein. The parties ftirther agree that this contact is not and that no part of this contract shall ever be deemed to be any manner of an "adhesion" or mandatory contract for the provision of water utility service and shall not be construed more or less favorably against either party. Entire Aareement. This Agreement, including any exhibits attached hereto and made a part hereof, constitutes the entire agreement between the par ties relative to the subject matter of this Agreement. All prior agreements, covenants, representations, or warranties, whether oral or in writing, between the parties are merged herein. There are no prior or contemporaneous agreements , oral or written, that are not contained within this agreement. Amendtnent. No amendment of this Agreement shall be effective unless and until it is duly approved by each party, reduced to a writing, and signed by the authorized representatives of Dog Ridge WSC and the Developer, respectively, which amendment shall incorporate this Agreement in every particular not otherwise changed by the amendment. Governing Law. This Agreement shall be construed under and in accordance with the laws of the State of Texas and all obligations of the parties are expressly deemed performable u1 Bell County] Texas. ^ Venue and Jurisdiction. Venue for any suit arising hereunder shall be in Bell County, Texas and juri§diction shall be in the district courts of Bell County, Texas. EACH PARTY HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY and FURTHER AGREES TO SUBMISSION OF ANY DISPUTE ARISING UNDER THIS AGREEMENT TO COMMERCIAL ALTERNATIVE DISPUTE RESOLUTION PURSUANT TO THE PROVISIONS OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE. The decision of any arbiter shall be by substantial evidence only and no other standard shall apply. Successors and Assigns. This Agreement shall be binding on and shall inure to the benefit of the heirS, successors and assigns of the parties. There are no third-party beneficiaries of this agreement and no benefit is intended to be conferred upon or in connection with this agreement upon any party not specifically named herein unless such party is specifically an heir, successor or assig i n of or to this agreement. Assignability. The rights and obligations of the Developer hereunder may not be assigned without the prior written consent of Dog Ridge WSC. Dog Ridge WSC, in the sole and absolute discretion of its Board of Directors and without the Board of Directors giving or stating any reason whatsoever, may decline to permit any requested assignment or transfer of this agreement or, in Dog Ridge WSC's Board of Directors' sole and absolute discretion, may impose additional conditions, guaranties, limitations or requirements upon any assignment of this agreement by the Developer. Effective Date. This Agreement shall be effective from and after the date of due execution by all parties. Page - 56 _ >. 20 ^. IN WITNESS WHEREOF each of the parties has caused this Agreement to be executed by its duly authorized representative in multiple copies, each of equal dignity, on the date or dates indicated below. Dog Ridge Water Supply Corporation DEVELOPER By: By: Name: Name: Title: President / Vice President Title: Date: Date: Page - 57 - 2 0 2304 ' mRsC-rs L )TIa U._ DOG RIDGE WATER SUPPLY CORPORATION Mailim Address Post Office Box 232 Belton, Texas 76513 Business Office Address 7480 FM 2410 Belton, Texas 76513 Telephone Numbers Office and Water Emergencies (254) 939-6533 (Answered Twenty-four (24) Hours) CERTIFICATE OF CONVENIENCE AND NECESSITY NUMBER 10048 SERVING WATER TO CENTRAL BELL COUNTY, TEXAS Page-58- __.. . _. ..^^ ,^^^ C"^ ^,L n^ ^ J ' Ma'^'iTS ae.sa. s.t4^l^^1
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