CERTIFICATE FOR ORDER

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1 CERTIFICATE FOR ORDER THE STATE OF TEXAS COUNTY OF HARRIS I, the undersigned officer of the Board of Directors of Harris County Municipal Utility District No. 264, hereby certify as follows: 1. The Board of Directors of Harris County Municipal Utility District No. 264 convened in regular session on March 20, 2019, outside the boundaries of the District, and the roll was called of the members of the Board: Russell Appelget Jose Nava Donnice Hoffman Charles M. Brandman Thomas Winkler President Vice President Secretary Assistant Vice President Assistant Secretary and all of said persons were present, except Director BfilV'ld MO..V\, thus constituting a quorum. Whereupon, among other business, the following was tr ansacted at the meeting: a written ORDER ADOPTING AMENDED RATE ORDER AND REGULATIONS REGARDING WATER AND SEWER LINES AND CONNECTIONS was inh oduced for the consideration of the Board. It was then duly moved and seconded that the order be adopted, and, after due discussion, the motion, carrying with it the adoption of the order, prevailed and carried unanimously. 2. A tr ue, full, and correct copy of the aforesaid order adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; the action approving the order has been duly recorded in the Board's minutes of the meeting; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid meeting, and that the order would be introduced and considered for adoption at the meeting, and each of the officers and members consented, in advance, to the holding of the meeting for such purpose; the meeting was open to the public as required by law; and public notice of the time, place, and subject of the meeting was given as required by Chapter 551, Texas Government Code, and Section , Texas Water Code. SIG ~ij,~~m~iialed March 20, t'!ff- _,, c_:,\~l\l ll Tlt. ~7,,~\ oo o o 1.,.~ 'r o. a -.. ~ I "~,.1... ;...,.. ~ +. ~ ""' ~ Jt,i-o. " = (SEAL'l.t3: ~- ~~ ~ ~,... '.&..,,. CJ..0 ~, -~ \ h <..:> y. '-.b : <=J ~ ~. 'c: 0o.O ~ ~. S o -.CU ~~ * ~~~ 11/11 1omn U\\\\\\~

2 AMENDED RATE ORDER AND REGULATIONS REGARDING WATER AND SEWER LINES AND CONNECTIONS WHEREAS, Harris County Municipal Utility District No. 264 (the "District") was created to provide water, sanitary sewer and storm sewer and drainage service to residential and commercial establishments within the District; and WHEREAS, the Board of Directors deems it necessary to amend its Rate Order and Regulations Regarding Water and Sewer Lines and Connections ("Rate Order"); Now, Therefore, BE IT ORDERED BY THE BOARD OF DIRECTORS OF HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 264 THAT: Section 1: DEFINITIONS. The following words or phrases shall have the meanings indicated below: A. "NDWO" - means the District's Order Regulating the Introduction of Wastewater into the Sanitary Sewer System of the District, which is hereby incorporated as if set forth in its entirety in this Rate Order. All references to the NDWO in this Rate Order shall mean the then-current version of such order. B. "Non-Single Family Residential User" - means any user of the District's System other than a Single Family Residential User including, but not limited to, commercial establishments, apartments, commercial recreational facilities, clubs and multi-family dwelling units. C. "Non-Taxable User" - means a user that is exempt from ad valorem taxation by the District under the Property Tax Code, including, but not limited to, schools and churches. D. "Public Space User" - means any user of the District's System for public or community homeowner association facilities, such as esplanades, recreational areas, swimming pools, splash pads, spray grounds, trails or green spaces ("Public Spaces"). E. "Single Family Residential User" - means a user of the District's water and/ or sewer system ("System") which consists of one residence designed for use and occupancy by a single family unit. F. "User" - means any user of the District's System.

3 Section 2: RATES. A. Water Rates 1. General. After the meter is installed, all Users, except Public Space Users, within the District shall be charged for water service from the District on a monthly basis according to the water used in accordance with the following schedule: Amount of Payment Water Usage $10.00 (minimum monthly charge) 0-5,000 gallons (per user) (per equivalent single family residential connection as determined by the District's engineer) $1.25 per 1,000 gallons $1.50per1,000 gallons $1. 75 per 1,000 gallons $2.00 per 1,000 gallons 5,001-20,000 gallons 20,001-50,000 gallons 50, ,000 gallons More than 100,000 gallons 2. Public Space Users. After the meter is installed, Public Space Users within the District shall be charged for water service from the District on a monthly basis according to water used in accordance with the following schedule: $0.45 per 1,000 gallons of water usage. In order to promote conservation of the District's water supply, however, Public Space Users will pay an increased rate to be set by the District if the District determines that the Public Space User's water usage is excessive, inefficient, and/ or wasteful; provided that such increased rate shall not exceed the rates set forth in Section 2(A)(1) above. 3. Billing for Cypress-Fairbanks Independent School District complex. The Cypress-Fairbanks school complex, located outside the District's boundaries, will be billed for water according to the rates set forth in Section 2(A)(1) above. 4. West Harris County Regional Water Authority ("WHCRWA") Surface Water Fee. The WHCRWA assesses a fee to the District for each 1,000 gallons of surface water delivered ("Surface Water Fee"). In addition to the water rates set forth herein, each User within the District shall be billed a separate amount for the Surface Water -Fee, determined by multiplying each -2-

4 1,000 gallons of water delivered by the District to such User in a billing cycle by 105% of the Surface Water Fee. B. Sewer Rates 1. General. After initial occupancy, each User within the District shall be charged for sewer service on a monthly basis in accordance with the following schedule: Amount of Payment $15.00 per equivalent single family residential connection as determined by the District's engineer (minimum monthly charge) Sewer Usage Flat Rate 2. Billing for Cypress-Fairbanks Independent School District Complex. For sewer billing purposes, the Cypress-Fairbanks school complex located outside the District's boundaries will be billed as if it were a participant in the regional wastewater treatment facility. 3. Charges imposed pursuant to the NDWO are in addition to the fees charged under Section B(l) above. C. No Free Service No free service shall be provided by the District to any person, organization or institution, including charitable or eleemosynary institutions, political subdivisions or municipal corporations, and all charges for service shall be made as required herein. Section 3: PAYMENT OPTIONS AND INFORMATION; FEES AND CHARGES. A. Payment Options. Any User may pay for monthly water and sewer service via the payment options provided through the District and its operator, including but not limited to automatic bank debit program; checks, credit/ debit card payments and money orders through the mail; checks, money orders, credit/ debit card payments, or cash in person; online check and credit/ debit card payments; check and credit/ debit card payments processed over the telephone; and other payment options as they may become available and be approved by the District. B. Payment Posting Date. For purposes of this Rate Order, the controlling date for any payment shall be the date the payment is posted by the District, which may be after the day that the payment is made or authorized by the User. -3-

5 C. Failure to Receive a Bill. Failure to receive a bill or late notice does not avoid or waive any penalty or other charges that are due under this Rate Order. D. Automatic Bank Debit Program Fee. Each User who participates in the District automatic bank debit program for monthly payment for water and sewer shall be charged a transaction fee of $1.00 per transaction. Non-payment of any such transaction fee(s) may subject the User to termination of service in accordance with this Rate Order. E. Convenience Fees; Credit Card Fees. Certain payment options are made available through service providers who may charge Users a convenience fee in connection with some payment options. Such convenience fees are the sole responsibility of the User and are separate from any amount owed by the User to the District. In addition, for payments made by credit card, the District may collect a processing fee of up to five percent (5 %) of the fee or charge being paid by the User, as provided by Chapter of the Texas Water Code, and non-payment of any such processing fee may subject the User to termination of service in accordance with this Rate Order. F. Returned Check and Returned Item Fees. If any User payment is refused or returned by the processing financial institution, the District will charge the User a returned item fee of $25.00; provided, however, the User will not be charged the returned item fee if the District's operator is notified at the time of payment that the payment is not honored and the User immediately submits an acceptable alternative form of payment. Payments attempted to be made by a check which is returned or a credit/ debit card that is refused shall be considered delinquent unless cash or certified funds are presented to the District for payment within the time -period required by Section 9(A). G. Additional Fee to Restore Service. If service to a User is terminated for failure to pay or for any cause legally authorized (other than ordinary transfer of service), then in addition to User being required to make full payment of all amounts then due, along with any applicable late charges or penalties, User shall also pay a fee prior to service being restored in the amount of $60.00, if service is restored during business hours, or in the amount of $105.00, if User requests that service be restored after business hours. H. Meter Removal and Reinstallation Fee. If, after service to User has been terminated for any reason, the District's operator concludes that User's meter has been tampered with or that efforts have been made by unauthorized persons to reestablish flow through the meter, the operator may remove User's meter, in which case User shall be required to pay a meter reinstallation fee of $85.00 prior to service being restored, in addition to any other fees imposed. -4-

6 I. Restriction of Payment Options Following Termination of Service. Payment options may be restricted following termination of service, as specified is Section 9(C) below. J. Account Transfer Fee. A fee of $10.00 shall be charged by the District to cover the expense to the District of the transfer of water and sewer from the builder of any housing unit to its initial occupant and to each subsequent occupant. This fee shall cover the establishment of an account to provide service to the new occupant. The transfer fee shall be billed to each new occupant as an item on that User's first monthly bill for water and/ or sewer service. K. Termination of Service upon Request of Consumer. Whenever a User of the District requests that water and sewer service be temporarily discontinued, such User shall notify the District's Operator at least two (2) days prior to the time service is to be discontinued. A charge of $30.00 shall be made for discontinuing and a charge of $20.00 for restoring water service where such service is discontinued or restored at the request of the User. This Section K shall not be applicable if payment is delinquent at the time of User's request. Section 4: TAP AND INSPECTION FEES. A. Single Family Residential User Water Tap. Prior to connection to the District's System, a tap fee in the following amount shall be paid to the District to cover the cost of making said connection and the cost of providing the water meter. Connections to the District's water system shall not be allowed prior to an approved sewer inspection, and all such connections shall be inspected by the District's operator or its subcontractor. 1. In the case of a 5 / 8 or 3 / 4 inch meter, the tap fee shall be $ In the case of a 1 inch water meter, the tap fee shall be $ B. Non-Single Family Residential Users. Prior to connection to the District's water system, a tap fee in the following amount shall be paid to the District: a tap fee equal to three (3) times the District's actual cost of installing the tap, meter, and necessary service lines, and repairing or restoring any yards, property, landscaping, sidewalks, streets or other improvements affected by the installation (the "Installation Costs"). The District's operator will produce an estimate for the Installation Costs, which will be sent to the User. The User shall pay the Installation Costs, plus 20 %, prior to the installation of the tap. If the actual Installation Costs are greater than the estimated Installation Costs paid by the User, the difference must be paid by the User before the District will provide service to the User. If the actual Installation Costs are less than the estimated Installation Costs paid by the User, a refund for the difference shall be issued to the User. -5-

7 Connections to the District's water system shall not be allowed prior to an approved sewer inspection, and all such connections shall be inspected by the District's operator or its subcontractor. C. Non-Taxable Users. 1. Non-Taxable Users shall pay a tap fee equal to the District's actual cost of installing the tap, meter and any necessary service lines and the cost of repairing or restoring any yards, sidewalks, streets or other improvements affected by the installation (as determined by the District's operator) plus the User's pro rata share of the District's actual cost of the facilities necessary to provide District services to the Non-Taxable User that are financed or to be fully or partially financed by the District's tax bonds (as determined by the District's consultants and approved by the Board of Directors) (the "Installation Costs"). 2. The District's operator will produce an estimate of the Installation Costs, which will then be sent to the User. The User shall pay the estimated Installation Costs, plus 20%, prior to installation of the tap. If the actual Installation Costs are greater than the estimated Installation Costs paid by the User, the difference must be paid by the User before the District will provide service to the User. If the actual Installation Costs are less than the estimated Installation Costs paid by the User, a refund for the difference shall be issued to the User. D. Public Space User. All Public Space Users shall be required to have meters installed, which shall be installed by the District's operator. A Public Space User shall pay a tap fee equal to the District's cost to install the tap and meter and to repair or replace property, improvements, sidewalks, yards, streets or landscaping damaged during the installation process. E. Sewer Connection Inspection. All connections to the District's sewer system shall be made in accordance with the provisions of the Rules and Regulations Governing Sewer Lines and Connections. All connections to the District's sewer system shall be inspected by a representative of the District prior to being covered in the ground. In the event a connection is made and covered without inspection by a representative of the District, water service at such location shall be terminated until the line is uncovered and so inspected. Water service shall not commence until the connection has been installed in accordance with such Rules. An inspection fee of $30.00 shall be paid to the District to cover the cost of making said inspection of a single family residence connection. A fee of $75.00 shall be paid to the District for making an inspection of a non-single family residence connection. All inspection fees shall be paid at the time the tap fee is paid. -6-

8 F. Drainage System Connection. Before any non-single family residential or non-taxable connection is made to the District's water, sewage or drainage systems, or before any reconnection is made, the person requesting such connection shall submit to the District's engineer for review and approval the drainage plans for the property for which the connection is sought. Such plans shall clearly show the estimated volume of water and the points of connection to the District's drainage system. A copy of such approved drainage plan with the engineer's approval indicated thereon shall be submitted to the District's operator. Any modification of such drainage plan shall require reapproval by the District's engineer. The District reserves the right to require removal of any connection made in violation of this section. G. Pre-Facility Inspection. All builders or contractors for property owners within the District must contact the operator, prior to starting any work on property within the District, to do an inspection to verify District facilities. If any District facility is either damaged or cannot be located, the operator will make necessary repairs or locate and make visible at the expense of the District. A copy of the inspection will be given to the builder's or contractor's representative. After the inspection and any necessary work is completed, the builder or contractor will then be responsible for paying the costs of all damages, adjustments, relocations and repairs found during the Final Site Survey. The cost for each pre-facility inspection is $ H. Facility Inspection. Immediately upon completion of the District's operator's installation of the initial water tap and meter, the sewer connection and inspection, the operator will conduct a facility inspection. At such inspection, the operator shall make note of the condition and location of all District facilities on the property. After construction has been completed on the property, but before service is transferred to a User, the District's operator will reinspect the water tap, meter and all other District facilities on the property for a fee of $ (The $30.00 fee shall be collected at the time the tap fee is paid.) The property owner, builder or contractor will be held responsible for any damages or adjustments to District facilities or other conditions that might be reasonably expected to cause damage to District facilities, and the cost of correcting such conditions, repairing, adjusting or relocating the facilities ("Backcharges") before service shall be initiated to a User. If any re-inspections of the facilities are required to ensure that the District's facilities are repaired, relocated or adjusted, a fee of $30.00 shall be charged for each such re-inspection before service will be transferred to a subsequent User. Payment of the Backcharges, or any $30.00 inspection or re-inspection fees, shall be made on or before the 30th day after the date of the invoice for said charges. The District may withhold the provision of service to the property or to other property owned by any User, property owner, builder or contractor who has failed to timely pay the Backcharges or any $30.00 inspection or re-inspection fee, including specifically the provision of additional taps; provided, however, the District shall follow. the notification procedures set forth in Section 9(B) prior to withholding the provision of service. -7-

9 I. Swimming Pool Inspections and Fee. Every User who plans to construct or install a swimming pool within the District shall notify the District's operator in writing prior to commencing construction of the pool. Upon notification by the User of the intention to construct or install a swimming pool, the User shall pay an inspection fee of $ After the notification is received, the District's operator shall ensure that all drains from the swimming pool are connected to the District's sanitary sewer system. After the drains have been installed, the User shall notify the District's operator, who shall make an inspection of all swimming pool drains to verify that the proper connection is made, before service is authorized for said swimming pool. J. Customer Service Inspections. A customer service inspection is required prior to the time the District (i) provides continuous water service to new construction, (ii) provides water service to private plumbing facilities that have been added to existing construction or materially improved or corrected, or (iii) continues service to a User when the District has reason to believe that cross-connections or other unacceptable plumbing practices exist. Customer service inspections include an inspection prior to the pouring of the slab, an inspection prior to the installation of the sheet rock, and a final plumbing inspection. The District's operator will perform this customer service inspection. The cost for new construction will be $25.00 for inspection prior to pouring of the slab; $25.00 for inspection prior to the installation of sheet rock; and $50.00 for the final plumbing inspection for a total of $ The cost for existing residential construction will be determined on a time and material basis. The costs for performing inspections on commercial construction will be determined on a case-bycase basis, based upon the quantity and complexity of the construction. All fees relating to the customer service inspections shall be paid by the User prior to the inspection, and if the inspection is made in connection with new construction, the fee will be collected with the tap fee. Re-inspections are performed at the same cost as the original inspection. The District's operator will complete, sign, and date a "Customer Service Inspection Certification" in the form attached to this Rate Order as Exhibit "A". The District's operator will retain such inspection certifications for a minimum of ten (10) years. If the User requests a copy of the certification, the District's operator will provide the User with the Certification. In connection with the customer service inspection, the User shall allow its property to be inspected by the District's operator or its subcontractors during normal business hours for possible cross-connections and other unacceptable plumbing practices which violate this Rate Order. Thereafter, the District's operator or its subcontractors may, at the discretion of the District and/ or the District's operator, periodically inspect a User's plumbing system during normal business hours for the purpose of identifying possible cross-connections and other unacceptable plumbing practices which violate this Rate Order. -8-

10 K. Service Agreements. Prior to receiving service from the District to new construction or to buildings containing new plumbing fixtures, or prior to having service reconnected to any building after termination of water service, a User must execute a Service Agreement in the form attached to this Rate Order as Exhibit "B". L. Service Line Repair Policy. The User will be responsible for repairing problems located outside the easement or on the service line, as determined by the District. Repairs by the User shall be completed within a maximum of five working days. In the interest of public safety, however, the District may require immediate repairs. In the case of sanitary sewer line repairs, the User must schedule an inspection of the repaired line with the District prior to backfill. The charge for inspection is $ The User will be held responsible for repairing the line within the required time period. If the User does not timely repair the line, the District can make the necessary repair and charge the User for the cost of such repairs, or the District may discontinue water and sewer service, provided, however, that prior to disconnecting service the District shall give written notice by first class mail or otherwise, to such User, and shall give such User the opportunity to contest, explain or correct the situation at a meeting of the Board of Directors of the District. Section 5: PLATTING AND PLATTING REQUIREMENTS. A. Permit Requirement. Before any connection is made to the District's water, sewer or drainage systems, the person requesting such connection shall provide to the District a copy of: (1) any necessary development?r building permit from the County; or (2) a waiver for any development or building permit from the County. B. Platting Requirement. Prior to initially coru:lecting to the District's water, sewer or drainage systems, a User shall submit to the District's operator or engineer proof that the User's property has been platted in accordance with the subdivision ordinances of the City of Houston. Acceptable proof of platting includes a copy of the recorded plat, or a certificate from the City of Houston that the property has been platted or that the property is legally exempt from the platting process. Section 6: MAINTENANCE AND REPAIR. It shall be the responsibility of each User to maintain the water, sanitary sewer and storm sewer lines from the home or building to the point that the User's lines connect to the District's system's main lines. Section 7: WATER REGULATIONS. The following plumbing material restrictions and regulations apply to all users of the District's potable water distribution system. -9-

11 A. Plumbing Regulations; Prohibition against Cross-Connections and Unacceptable Plumbing Practicesj Penalty for Violation. Pursuant to Chapter 290 of the Texas Administrative Code, the District adopts the following plumbing regulations, which apply to all Users of the District's potable water distribution system. 1. Plumbing Fixtures. A User is not permitted to install any plumbing fixture which is not in compliance with a state approved plumbing code and the plumbing code, if any, required by the city in whose jurisdiction the District is located. 2. Prohibition Against Water Contamination. No direct connection between the District's potable water distribution system and a potential source of contamination is permitted. Potential sources of contamination shall be isolated from the District's potable water distribution system by the installation of an airgap or an appropriate backflow prevention device,in accordance with state plumbing regulations. In addition, all pressure relief valves and thermal expansion devices must be in accordance with state plumbing codes and the plumbing code, if any, required by the city in whose jurisdiction the District is located. 3. Backflow Prevention Assemblies. All sprinkler systems, spas and pools must have backflow prevention assemblies installed by the User at the User's sole cost and expense. In addition, the District, in its sole discretion, may require a Non-Single Family Residential User to install a backflow prevention assembly at any meter(s) servicing such a User's property. The District, in its sole discretion, also may require any User to install other backflow prevention assemblies at any fixture in order to prevent contamination of the District's potable water distribution system or if the User's plumbing system poses a high health hazard. A high health hazard is defined by the Texas Commission on Environmental Quality (the "TCEQ") as a "cross-connection, potential crossconnection, or other situation involving any substance that could cause death, illness, spread of disease, or has a high probability of causing such effects if introduced into the potable drinking water supply." If the District determines that a User must install a backflow prevention assembly as a protection against a high health hazard, the backflow prevention assembly used must comply with a state approved plumbing code and the plumbing code, if any, required by the city in whose jurisdiction the District is located, and must be tested and certified at least annually by a recognized backflow prevention assembly tester. A list of certified backflow prevention assembly inspectors can be obtained from the local office of the TCEQ. The User is responsible for insuring that all backflow prevention assemblies are tested upon installation by a recognized backflow prevention assembly tester. The User is solely responsible for the cost of this test. If the District requires the installation of a backflow prevention assembly in order to -10-

12 prevent a serious threat to the District's public water supply, then the District, in its sole discretion, may immediately terminate service to the User. In that event, service will not be restored until the backflow prevention assembly has been installed and tested and a signed and dated original of a "Backflow Prevention Assembly Test and Maintenance Report" in the form attached to this Rate Order as Exhibit "C" has been provided to the District's operator. If the District determines that a backflow prevention assembly must be installed pursuant to this Rate Order for reasons other than to eliminate a serious threat to the District's public water system, the User must install the backflow prevention assembly within five (5) working days after receipt of notice from the District that such installation is required. In addition, the User must provide the District's operator with a signed and dated original of a "Backflow Prevention Assembly Test and Maintenance Report" in the form attached to this Rate Order as Exhibit "C" within three (3) working days of the installation of the backflow prevention assembly and within three (3) working days of any subsequent repair, maintenance or testing of such assembly. If the User fails to provide the testing certificate within this time, the District, in its discretion, may terminate service to the User pursuant to the terms of this Rate Order. The District's operator will retain such reports for a minimum of three (3) years.. 4. Prohibition Against Cross-Connections. No cross-connection between the District's potable water distribution system and a private water system is permitted. Where an actual air gap is not maintained between the public water supply and a private water supply, an approved reduced pressurezone backflow prevention assembly must be properly installed and such assembly must be annually inspected and tested by a certified backflow prevention device tester. A list of certified backflow prevention device testers may be obtained from the local office of the TCEQ. By accepting service from the District, all Users agree to allow such annual inspection and testing of backflow prevention assemblies to take place during normal business hours. If any User refuses to allow such annual inspection and testing, service to such User will be discontinued until such inspection and testing is completed. No connection which allows water to be returned to the District's potable water distribution system is permitted. This includes, but is not limited to, any device pursuant to which water is removed from the District's potable water distribution system, circulated through a User's system for condensing, cooling and heating of fluids or industrial processes, including but not limited to a heat exchange system, and routed back to the District's potable water distribution system. 5. Notice of Unacceptable Plumbing Practices. The District shall notify the User in writing of any cross-connection or other unacceptable plumbing practice which has been identified during the customer service -11-

13 inspection, any periodic reinspection, or any other inspection. At its sole cost and expense, the User shall immediately correct any unacceptable plumbing practice on its premises and properly install, test and maintain any backflow prevention device required by the District within five (5) working days of receipt of notice of the improper cross-connection. The User shall provide copies of all testing and maintenance records on such devices to the District within three (3) working days of the testing or maintenance. If the User fails to correct the noted unacceptable plumbing practice, the District may immediately terminate water service or, at the User's sole cost and expense, eliminate the cross-connection or correct the unacceptable plumbing practice. 6. Penalty for Violation. The failure of a User to comply with the terms of this Section will be considered a violation of this Rate Order as set forth in Section 15. B. Quantity and Pressure of Water. The District does not guarantee any User any specific quantity or pressure of water for any purpose whatsoever, and all Users understand and agree that the District is not liable for failure or refusal to furnish any particular amount or pressure of water to any User at any time. Section 8: SEWER REGULATIONS. The following regulations apply to all Users of the District's Sanitary Sewer System. A. NDWO. In the event of any conflict between this Rate Order and the NDWO, the stricter standard shall prevail, as determined by the District's Board of Directors. B. Connection Permit. 1. Application for Sanitary Sewer Service must be filed prior to construction of the service line and the connection fee should accompany this application. (Application forms are available from the District's operating company). Construction must not begin until authorized by the District. 2. When the service line is complete, and prior to backfilling the pipe trench, the applicant for sewer service shall request an inspection of the installation. Requests for inspections shall be made to the District's operator twenty-four hours in advance of the inspection. 3. The physical connection to the District's sewer main will be made by use of an adapter of a type compatible with materials being joined. The connection shall be water-tight. No cement grout materials are permitted. 4. Backfilling of service lines trench must be accomplished within twenty-four hours of inspection and approval. No debris will be permitted in the trench. -12-

14 5. A connection permit will be granted after inspection confirms that all requirements of these Rules and Regulations have been met. 6. A fee of $30.00 will be charged for each inspection of a singlefamily connection and a fee of $30.00 will be charged for each inspection of a multi-family or commercial or school district connection. A separate charge will be made in the event re-inspection is required. C. Quality of Sewage. 1. Domestic Waste. Except as set forth in the IWO, only ordinary liquid and water-carried waste from domestic activities that is amenable to biological treatment and that is discharged from sanitary conveniences of buildings connected to a public sanitary sewer system shall be discharged into the District's sanitary sewer lines. D. Service Lines. 1. Service line is defined as the sewer line from the foundation of the house or commercial building to the sewer line owned by the District. 2. Only one service line connection to the District's sanitary sewage collection system is permitted for each residence or commercial building. 3. Only the following types of pipe and fitting materials are approved for constructing service lines. Pipe and fittings in each individual service line will be of identical material. a. Vitrified clay pipe conforming to ASTM Specification C700 with joint coupling conforming to ASTM Specifications C425 or C594 and installed according to ASTM C12. b. Cast iron soil pipe, standard weight, conforming to ASTM Specification A74 with rubber gasket joint coupling conforming to ASTM Specification C564. c. Poly-vinyl-chloride PSM (SDR26 PVC) pipe conforming to ASTM Specification D3034 and installed according to ASTM D2321. d. Ductile-Iron Pipe conforming to ANSI A21.51 with rubber gasket joints ANSI A21.ll, and installed according to manufacturer's recommendations AWWA C with polyethylene as specified. e. Acrylonitrile-butadiene-styrene (ABS) pipe, material conforming to ASTM Specification D

15 f. The bedding in field must meet manufacturer's specifications for installation of the pipe. 4. Minimum sizes of service lines shall be as follows: a. Residential -- 4 inches in diameter. b. Commercial -- 6 inches in diameter. 5. Minimum grades for service lines shall be as follows: a. 4 inch pipe -- one foot drop per hundred feet (1 % ). b. 6 inch pipe -- six inches drop per hundred feet (0.7% ). c. 8 inch pipe -- four inches drop per hundred feet (0.44 % ). 6. Maximum grades for service lines shall be as follows: a. 4 inch pipe - two and one-half feet drop per hundred feet (2.5 %). b. 6 inch pipe -- one and one-half feet drop per hundred feet (1.5 %). c. 8 inch pipe -- one foot drop per hundred feet (1 % ). 7. Service lines must be constructed to true alignment and grade. Warped and sagging lines will not be permitted. D. Connection of Building Sewer Outlet to Service Lines. 1. Building tie-on connection will be made directly to the stub-out from the building plumbing at the foundation on all waste outlets. 2. Water-tight adapters of a type compatible with the materials being joined will be used at the point of connection of the service line to the building plumbing. No cement grout materials are permitted. 3. Existing "wye" and stack connections must be utilized for connection of the service line to the sewer main unless an exception is permitted by the District's operator. 4. The physical connection to the sewer main shall be made by use of an adapter of a type compatible with materials being joined. The connection shall be watertight. Portion to be cut out from sewer main shall be circular and available for inspection. -14-

16 5. No connection shall be made into a manhole without approval from the District. 6. No sewer lines shall be laid within nine (9) feet of a water line unless the sewer pipe and its couplings shall have a pressure rating of not less than one hundred fifty (150) pounds per square inch (psi). E. Fittings and Cleanouts. 1. No bends or turns at any point will be greater than 45 degrees. 2. Each horizontal service line will be provided with a cleanout at its upper terminal; and each such run of piping which is more than ninety (90) feet in length will be provided with a cleanout for each ninety (90) feet or fraction thereof, in the length of such piping. 3. Each cleanout will be installed so that it opens in a direction opposite to the flow of the waste and, except in the case of "wye" branch and end-of-the-line cleanouts, cleanouts will be installed vertically above the flow line of the pipe. 4. Cleanout will be made with air-tight mechanical plug. F. Grease, Lint, and Sand Traps and Sampling Wells. 1. Grease traps will be required for dining establishments where food is prepared and served to consumers on premises. 2. Any User that has or occupies a building or structure with commercial laundry facilities shall install and have in operation lint traps that are approved by the District's operator and engineer. 3. Air space above the water line must be vented with four-inch soil pipe if the trap is located inside a building. well. 4. All shopping centers shall provide a grease trap and a sampling 5. All health care facilities shall provide an acid dilution basin and a sampling well. 6. Sand traps will be required for all car washing establishments. 7. All commercial and industrial Users are required to install sampling wells in accordance with City of Houston standards and that are approved by the District's operator and engineer. -15-

17 8. All commercial and industrial Users are required to install grease traps in accordance with City of Houston standards and that are approved by the District's operator and engineer. Such Users shall provide the District with a copy of an ongoing contract with a licensed hauler for regular, routine pumping and disposal prior to receiving service from the District and a copy of the cancelled checks evidencing payment for such regular pumping and disposal shall be provided to the operator of the District's facilities on a regular basis. 9. In order to protect the District's ability to properly treat the waste produced in the District, the District shall have the right to inspect all grease traps, sand traps, lint traps, and sampling wells operated within the District or pursuant to a contract with the District. Inspection shall be performed by the operator monthly. If the operator finds a grease trap, sand trap, lint trap, or sampling well that is not being properly cleaned and monitored, the operator shall give written notice to the User and/ or other responsible party of failure to maintain the trap or well. If the trap or well has not cleaned to the District's reasonable satisfaction within 48 hours of receipt of notice from the operator, the operator may take all necessary and advisable action to clean the trap or well and shall bill the User and/ or other responsible party for the cost of such service. Charges for grease trap, lint trap, sand trap and sampling well inspections shall be as follows: Inspection Fee Re-inspection Fee $55.00 $55.00 G. Excluded Flow and Waste. 1. No waste material which is not biologically degradable will be permitted to be discharged into the District's sewage facilities, including mud and debris accumulated during service line installation. 2. The quality of sewage discharged into the District's system must meet all requirements set forth in this Rate Order and any other applicable regulations adopted by the District. 3. No downspouts, yard or street drains, or gutters will be permitted to be connected into the District's sanitary sewer facilities. 4. Swimming pool connections will be made in accordance with the City of Houston Plumbing Code requirements. H. Regulatory Assessment. Pursuant to the Texas Water Code, each User of the District's water and sanitary sewer system is hereby assessed a charge of one-half of one percent of the District's charge for water and sewer service. This assessment is included in the rate schedules listed above and will be forwarded to the TCEQ, as -16-

18 required by the Texas Water Code, and used to pay costs and expenses incurred in its regulation of water districts. Section 9: MONTHLY BILLS; TERMINATION OF SERVICE A. Monthly Bills and Delinquent Accounts. Charges for service shall be billed monthly. All bills shall be payable on the 20th day after the date of the statement ("Due Date") for said charges. Unless payment of the monthly bill is received and posted on or before the Due Date or unless payment of any Backcharges (Section 4(H)) is received and posted on or before the 30th day after the date of the invoice, such account shall be considered delinquent and a one-time late charge equal to ten percent (10%) of the unpaid overdue balance shall be charged. If payment in full of all sums due and owing is not timely received to allow posting on or before the Due Date, the District may terminate service as specified herein. B. Termination of Service for Delinquent Account and User's Right to Respond. Prior to terminating service for a delinquent account, the District shall send written notice of termination by United States first class mail to the User or entity at the last address on file with the District and will provide the User or entity with an opportunity to contest or correct the charges, or to otherwise explain why service should not be terminated, at a meeting of the Board of Directors of the District. The written notice shall inform the User or entity of the amount of the payment due to avoid termination of service (including all past due and currently due amounts and any late charges and additional fees or deposits), the date service will be terminated or additional service withheld if payment is not made, the date, time and place of the next scheduled meeting of the Board of Directors and of the opportunity to contest or correct the charges, or to otherwise explain why service should not be terminated by presenting, in person or in writing, such matter to the Board of Directors at a scheduled meeting as shown on the notice. The date specified for termination or withholding additional service shall be not less than ten (10) days after the date of the next scheduled meeting of the Board of Directors as shown in the notice. The notice shall be deposited, postpaid, in a post office or official depository under the care and custody of the United States Postal Service at least ten (10) days prior to the date of the scheduled meeting of the Board of Directors. A written statement by the District's operator that the notice was so mailed and a certificate of mailing by the United States Postal Service shall be prima facie evidence of delivery of same. If the User or entity timely appears before the Board. in person or in writing, the Board shall hear and consider the matter and inform the User or entity of the Board's determination by sending written notice by United States first class mail to the User or entity at the appropriate address. C. Restriction of Payment Options Following Termination of Service. If service has been terminated for failure to pay or for violation of this Rate Order, payment of all amounts due, including all applicable fees, deposits, and charges, must be made either (1) in the form of cash, cashier's check or money order, or (2) by credit card or debit card, subject to the condition that the District's operator is able to obtain -17-

19 immediate electronic confirmation that such credit card or debit card is valid and that payment is authorized; provided, however, that payment for service restored after business hours is subject to verification by noon of the following business day and the terms of any agreement signed by User in connection with the restoration of service. D. Termination of Service for Violation of Rate Order. Termination of service pursuant to this Section shall be in addition to penalties that may be imposed by the District under Section 15. Section 10: DRAINAGE FACILITIES AND UNAUTHORIZED MATERIALS. The drainage and storm sewer facilities within the District ("Drainage Facilities") must be kept clear of any objects or debris that may block them and interfere with their intended purpose, which is solely to carry storm water runoff. Any individual who disposes of or is responsible for the disposal of (1) trash, debris, household refuse, hazardous materials, construction materials or debris, chemicals, grass, tree or yard clippings, (2) any materials prohibited under regulations implemented pursuant to the Federal Water Pollution Control Act or any state, county or local equivalent act, or (3) anything that impedes or could potentially impede the free flow of storm water runoff (collectively, "Unauthorized Materials") in the Drainage Facilities or the District's right-of-way will be responsible for reimbursing the District for all costs of restoration of the Drainage Facilities to their unimpeded flow if the District elects, at its sole discretion, to perform such work or to cause such work to be performed. In addition to or in place of the foregoing, the District may assess a penalty or disconnect the consumer's water service to collect such penalty for such violation under Section 15 of this Rate Order. Section 11: PROHIBITION OF SEPTIC TANKS AND HOLDING TANKS. No septic tanks or holding tanks shall be permitted or used within the District. Section 12: SALE OR USE OF WATER. It shall be an unauthorized use of District services or facilities for any person, firm or entity to sell or use water from the District's water system without having a direct connection to the District's water system, unless such sale or use of water is to or by Users having common ownership or tenancy of the land being served by the District's water system. Section 13: OBSTRUCTION. After any District facility has been set, the consumer shall at all times keep the area in, around and upon the facility and District easements and property under consumer's control free from rubbish or obstructions of any kind. Failure to keep the facility and District easements and property under consumer's control free from rubbish or obstructions shall result in disconnection of water services and/ or the assessment of charges necessary to remove said obstructions. -18-

20 Section 14: TEMPORARY WATER SERVICE. A. The District's operator shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon receipt of a written request for temporary water service. Such temporary service shall be supplied only through a District meter installed by the District's operator. B. The person applying for temporary water service shall be required to deposit $ with the District to secure the payment for water supplied by the District and the safe return of the District's meter. Upon receipt of full payment for temporary water used and return of the meter in good condition, the deposit will be returned; provided, however, any damage to the meter or unpaid balances will be paid from the deposit. C. The fee for temporary water service shall be calculated according to the rates set forth in Sections 2(A)(l) and 2(B)(l) of this Rate Order. Section 15: PENALTIES FOR VIOLATION. In addition to the other remedies available to the District under this Rate Order any person, corporation or other entity who: A. violates this Rate Order; or B. makes unauthorized use of District services or facilities; or C. causes damage to Distrii:t facilities by using such facilities in a manner or for a purpose contrary to the purpose for which such facilities were designed; or D. uses or permits the use of any septic tank or holding tank within the District; or E. constructs facilities or buildings which are not included in the approved plans for development under Section 5 of this Rate Order may be subject to a penalty, in the Board's discretion, of up to $10, for each breach of the foregoing provisions. Each day that a breach of any provision hereof continues may be considered, in the Board's discretion, a separate breach. The penalties in this Section 15 shall be in addition to any other penalties, fees and charges provided by this Rate Order, the then-current District's Drought Contingency Plan, and the laws of the State, County and City of Houston, and to any other rights and remedies of the District as may be allowed by law or equity. Notwithstanding the foregoing, this Section 15 shall not apply to violations arising under Section 9 above which consist solely of a delinquent payment(s) of one or more bills from the District for service. -19-

21 Section 16: TERMINATION OF SERVICE; NOTICE. Any person, corporation or other entity that violates any provision of this Rate Order shall be given written notice of the violation, by first class mail or otherwise, and of the pending termination of service, and shall be given an opportunity to contest, explain or correct the violation of the Rate Order at a meeting of the Board of Directors of the District; provided, however, that notice of termination for failure to pay monthly water and sewer charges shall be given pursuant to Section 9(B) above. Notwithstanding the foregoing, if the District determines the existence of a serious threat to the integrity of the District's System or other District facilities, the District, in its sole option, may, in addition to all other remedies available to it, immediately terminate water and/ or sewer service or, at the User's sole cost and expense, install the fixtures or assemblies necessary to correct the unacceptable practice. If the District terminates service in order to preserve the integrity of the District's System or other facilities, service will be restored only when the threat to the System or facility no longer exists. Any and all expenses associated with such termination shall be billed to the User. Section 17. APPLICABILITY OF THIS RATE ORDER. This Rate Order and all of the provisions herein apply only to utility service to land within the District and to Users outside the District who are served by District facilities. The Board of Directors shall determine whether to provide any utility service to areas outside of the District and the terms and conditions for such service. Section 18. SUPERSEDING ORDERS. Upon adoption, this Rate Order supersedes all prior orders, resolutions and other actions of the Board concerning fees and charges for water and sewer services and is effective as of the date specified above. [EXECUTION PAGE FOLLOWS] -20-

22 ADOPTED AND EFFECTIVE on March 20, ~ President, Board of Dire ATTEST: (SEAL),.,.,.~~~H~l~a!~~"",,. \PALU,/~ U \~\~o o <> o o ~(/)').- ~~,'t-.? a~. <(;,!\ I " S:-o,\ -L.' \ o~ 11>. ~..,::7( :,, "~-:.;:p ~ - : 0 0 ~. ~.~ :~ =.....> 0 (").::::> u. ~,...,... "l(',p>.a -I I: (f)_ ~:/. ~\ \ e"$!:[11: fa ~....t>~~"\\,:.<::> IJ ~ Oi. 0 0 BJ,. '\J if ~~ '>' 000.,.,0... " '\I~,, ~ tr ~ -~ 1 iev"gom11ai&\\~~ -21-

23 CERTIFICATION I, the undersigned officer of the Board of Directors of Harris County Municipal Utility District No. 264, do hereby certify that the foregoing is a true and correct copy of the Amended Rate Order and Regulations Regarding Water and Sewer Lines and Connections approved by the Board of Directors of said District on March 20, Witness my hand and seal of the District on March 20, (SEAL) ~ l\'i~ummu~,,,_ (:~ "'<iz'j... r.7"::!,..;..,'('i'-\.util!ry. -v~~. -:'fijj.,,., \$}.\.J () o., $ e o o o o 4" ~? p ~'~ L <"l o~~ "'~ 0 <(., -r A"\.:->.).. 0.,,-*- ~ <'1 ;... 0 ",..,.-,,;;' (1 l:i; :>1 z 0..!1:Y d.1' ;...i,,, t,'.{ :::> ~.~1... ~~:/ )> : z ii.o...-:.~.'.o! <.J. '<' rf.. \-:0.;._ fl c,... ~ ~ 0 :._y -~ ~. v s. ~ ~ &., o o.,:;fl. 1'/y/./ Q 0 0 ~- ir ~~~ '6iB!aQ6i\\\\\\~ -22-

24 LIST OF EXHIBITS Exhibit "A" - Exhibit "B" - Exhibit "C" - Customer Service Inspection Certification Service Agreement Backflow Prevention Assembly Test and Maintenance Report -23-

25 EXHIBIT "A" Customer Service Inspection Certification Nan1eofPWS :~ ~ PWS I.D. #: Location of Service: I, upon inspection of the private plumbing facilities connected to the aforementioned public water supply do hereby certify that, to the best of my knowledge: (1) No direct connection between the public water supply and a potential source of contamination exists. Potential sources of contamination are isolated from the public water system by an air gap or an appropriate backflow prevention assembly in accordance with state plumbing regulations. Additionally, all pressure relief valves and thermal expansion devices are in compliance with state plumbing codes. (2) No cross-connection between the public drinking water supply and a private water system exists. Where an actual air gap is not maintained between the public water supply and a private water supply, an approved reduced pressure zone backflow prevention assembly is properly installed and a service agreement exists for annual inspection and testing by a certified backflow prevention device tester. (3) No connection exists which would allow the return of water used for condensing, cooling or industrial processes back to the public water supply. (4) No pipe or pipe fitting which contains more than 8.0% lead exists in private plumbing facilities installed on or after July 1, 1988 and before January 4, For facilities installed after January 4, 2014, no pipe or pipe fitting which contains more than a weighted average of 0.25 %. (5) No solder or flux which contains more than 0.2% lead exists in private plumbing facilities installed on or after July 1, (6) No plumbing fixture is installed which is not in compliance with a state approved plumbing code. Compliance Non Compliance Water service shall not be provided or restored to the private plumbing facilities until the above conditions are determined to be in compliance. I further certify that the following materials were used in the installation of the plumbing facilities: Service Lines: Lead o Copper o PVC. o Other o Solder: Lead o Lead Free o Solvent Weld o Other o I recognize that this document shall become a permanent record of the aforementioned Public Water Svstem and that I am lel!allv responsible for the validitv of the information I have provided. Signature of Inspector Title Date Registration Number Type of Registration License Expiration Date A-1

26 EXHIBIT "B" SERVICE AGREEMENT I. PURPOSE. The Harris County Municipal Utility District No. 264 ("District") is responsible for protecting the drinking water supply from contamination or pollution which could result from improper plumbing practices. The purpose of this service agreement is to notify each customer of the plumbing restrictions which are in place to provide this protection. / J>he District enforces these restrictions to ensure the public health and weltary Each customer must sign this agreement before the District will begin service \(~ addition, when service to an existing connection has been the District will not reestablish service unless it has a signed cq,f>'f'~ this ag}ee"'rtient. II. PLUMBING RESTRICTIONS. The~o~owing una~ceptabl ~ are prohibited by State regulations. A. B. D. N ' ipe or pipe ~itting which contains more than a weighted average of,.,, ~ ~ i 0.25 %'1ead may ye used for the installation or repair of plumbing at any connecthm'which 1'.).fovides water for human use. E. No solder or "'flux which contains more than 0.2 percent lead can be used for the installation or repair of plumbing at any connection which provides water for human use. III. SERVICE AGREEMENT. The following are the terms of the service agreement between the Harris County Municipal Utility District No. 264 (the "District") and [NAME OF CUSTOMER] (the "Customer"). B-1

27 A. The District will maintain a copy of this agreement as long as Customer and/ or the premises is connected to the District's water system. B. Customer shall allow his/her property to be inspected for possible crossconnections and other unacceptable plumbing practices. These inspections shall be conducted by the District or its designated agent prior to initiating new water service; when there is reason to believe that crossconnections or other unacceptable plumbing practices exist; or after any major changes to the private plumbing facilities. The inspections shall be conducted during the District's normal busine~hours. C. The District shall notify Customer in writing of any cross-connection or other unacceptable plumbing practia(,-h~~a~ been identified during the initial inspection or the perio qitr~inspectiort. D. Customer shall immediately (orr/ ct any unacceptablf-p~umbing practice on his/her premises. E. F. any particu,lar'\..amognt or pressur,,e'>qf water to Customer at any time. IV. DATE: ADDRESS: B-2

28 EXHIBIT "C" Backflow Prevention Assembly Test and Maintenance Report The following form must be completed for each assembly tested. A signed and dated original must be submitted to the public water supplier for recordkeeping purposes. BACKFLOW PREVENTION ASSEMBLY TEST AND MAINTENANCE REPORT NAME OF PWS: PWS I.D. #: LOCATION OF SERVICE:./) The backflow prevention assembly detailed below has been)~ted and maintained as required by TCEQ regulations and is certified to be operating ~ifltiryacceptabl._e parameters. o o o Manufacturer: Not needed at this address TYPE OF ASSEMBLY Reduced Pressure Principle Double Check Valve,.._ Model Number: ~ Serial Number: ~. '...,..._ ~ ~ Pressure Vacuum Breaker Air Inlet Opened at., ~ ~, psid Check Valve psid Did Not Open D Leaked o Repairs and Materials Used Test After I DC - Closed Repair Tight o RF psid Leaked o The above is certified to be true. Closed Tight D Opened at psid Opened at psid psid Firm name: Firm Address: Date: Certified Tester: Cert. Tester No.: C-1

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