Tariff

Table Contents

STATEMENTS - B

DEFINITIONS - C

SERVICE RULES AND REGULATIONS - E

EXTENSION POLICY - F

RATES AND SERVICE FEES - G

EMERGENCY RATIONING PROGRAM - H

 

SECTION B:  STATEMENTS

1. Organization.  The Kingsland Water Supply Corporation is a member-owned, non-profit corporation incorporated pursuant to the Water Supply Act, Article a, Tex Rev. Cia. Stat., (West 1980, Vernon Sup. 1993 as amended) and as supplemented by the Texas Non-Profit Corporation Act, Tex. Rev. Cia. Stat. Ann., Art. 1396-1.01, et seq. (West 1980, Vernon Sup. 1993 as amended) for the purpose of furnishing a potable water utility service.  Corporation operating policies, rates, tariffs, and regulations are formulated and effected by a Board of Directors elected by the Members of the Corporation.
2. Non-Discrimination Policy.  Membership in the Corporation and service of water is provided to all Applicants who comply with the provisions of this Tariff regardless of race, creed, color, national origin, sex, or martial status.
3. Rules Application.  The rules and regulations specified herein apply to the water services furnished by Kingsland Water Supply Corporation, also referred to as Corporation, or KWSC.  Failure on the part of the Member, Consumer, or Applicant to observe these rules and regulations of the Corporation, after due notice of such failure, automatically gives the Corporation the authority to deny or to discontinue the furnishing of service as provided herein and as may be amended from time to time by the Board of Directors of the Corporation.
4. Corporation Bylaws.  The Corporation has adopted bylaws that establish the make-up of the Board of Directors, establish the Membership voting rights, provide for annual and regular meeting, provide for reserve accounts, and establish the rights of the Members and other important regulations of the water system.  These bylaws are included by reference herein, as amended from time to time, and are on file for inspection in the Corporation’s office.
5. Fire Protection Responsibility.  The Corporation does not imply that fire protection is available on any of the distribution system.  When the installation of new lines occurs, the Corporation will make every effort to include the connection of one fire hydrant per every one thousand feet of adequately sized line, providing the availability of funds is sufficient to do so.  Fire hydrants paid for by individuals or groups of individuals and donated to the Corporation for county volunteer fire department use shall remain in place for such use as “refill only” of fire trucks.  All hydrants or flush valves are for the operation and maintenance of the system and may be used for refill only by authorized fire departments.  The Corporation reserves the right to remove any hydrant, due to improper use or detriment to the system as determined by the Corporation, at any time without notice, refund, or compensation to the contributors unless such hydrants are installed  pursuant to the terms of a Non-Standard Service Contract in which event the terms and conditions of the contract shall apply.
6. Damage Liability.  The Kingsland Water Supply Corp. is not liable for damages caused  by service interruptions, events beyond its control, and for normal system failures.  The limit of liability of the KWSC is the extent of the cost of service provided.  By acceptance of Membership, member consents to waiver of such liability.
7. Information Disclosure.   The records of the Corporation shall be kept in the Corporation office in Kingsland, Texas.  All information collected, assembled, or maintained by or for the corporation shall be disclosed to the public in accordance with the Texas Open Records Act:  Article 6252-17a, Tex. Rev. Cia. Stat. (Vernon Pampa. 1992).  An individual customer may request in writing that their name, address, telephone number, or social security number be kept confidential.  Such confidentiality does not prohibit the utility from disclosing this information to an official or employee of the state or a political subdivision of the state acting in an official capacity or an employee of a utility acting in connection with the employee’s duties.  Further, such confidentiality does not prohibit the Corporation from disclosing the name and address of each member on a list to be made available to the Corporation’s voting members, or their agents or attorneys, in connection with any meeting of the Corporation’s members.  The utility shall give its applicants and customers notice of rights to confidentiality under this policy and all prevailing associated fees for such request.
8. Customer Notice Provisions.  The Corporation shall give written notice of proposed monthly rate changes by mail or hand delivery to all affected Members and/or consumers at least 30 days prior to the Board meeting at which the new rates will be approved.  The notice shall contain the old rates, new rates, an effective date of the new rate, date of Board authorization, and the name and phone number of the Corporation’s contact person designated to address inquiries about the rate change.
9. Grievance Procedures. Any Member of the Corporation or individual demonstrating interest under the policies of this Tariff in becoming a Member of the Corporation shall have an opportunity to voice concerns or grievances to the Corporation by the following means and procedures:
   • By presentation of concerns to the Corporation’s manger or authorized staff member for discussion and resolution.  If not resolved to the satisfaction of the aggrieved party then,
   • By presenting a letter of request for a hearing before the Board of Directors.  The letter shall state the individual’s desired business before the Board and the desired result.
   • The President of the Board of Directors shall review the request and determine the best means by which the complaint shall be resolved.
   • The President shall further determine a reasonable time and place of all hearings, but not beyond forty-five (45) days of the date of receipt of the letter of complaint.
   • The Board of Directors, committee thereof, and/or legal counsel shall hear the complaint as directed by the Board.
   • Any hearings by committees or staff delegated to hear complaints shall report its recommendation to the full Board for a decision by the Board.
   • The Board of Directors shall act upon the information available and direct the President or other representative to respond to the complaint by communicating the Board’s decision in writing.
   • Any charges or fees contested as a part of the complaint in review by the Corporation under this policy shall be retroactive to the point when the reason/change for the complaint occurred and will be held in escrow for all those accounts affected by the results of the complaint until a satisfactory review and final decision has been made by the Board of Directors.  The Corporation is responsible to its members to keep an accurate record of those escrowed accounts as separate items within their accounting system.  The Board’s decision shall be final.

10. Plumbing Standards.  The Corporation adopts the Southern Standard Plumbing Code as guidance in the design, installation, and maintenance of plumbing systems and service facilities connecting or connected to the utility’s water to the extent appropriate under the applicable statutes and regulations governing public water utility systems.  Any Member may be required to retrofit plumbing systems and service facilities as determined to be necessary by the Corporation for purposes of compliance with the Southern Standard Plumbing Code.

ACTIVE SERVICE – Service status of any Member receiving authorized water service under the provisions of this Tariff.

APPLICANT – Person, partnership, cooperative corporation, corporation, agency, public or private organization of any character applying for service with the Kingsland Water Supply Corporation.

BOARD OF DIRECTORS – The Board of Directors elected by the Members of the Kingsland Water Supply Corporation.

BYLAWS – The rules pertaining to the governing of the Kingsland Water Supply Corporation adopted by the Corporation Members.

CERTIFICATE OF CONVENIENCE AND NECESSITY (CCN) – The authorization granted under Chapter 13 of the Texas Water Code for Kingsland Water Supply Corporation to provide water utility service within a defined territory.  Kingsland Water Supply Corporation has Certificate Number 12217.  Territory defined in the CCN shall be the Certificated Service Area.

CORPORATION – The Kingsland Water Supply Corporation.

DISCONNECTION OF SERVICE – The locking or removal of a water meter to prevent the use of water by a Member/Consumer.

EASEMENT – A private perpetual dedicated right-of-way for the installation of water pipelines and necessary facilities which allows access to property for future operation, maintenance, facility replacement, and/or installation of additional pipelines (if applicable).

FmHA – Abbreviation for Farmers Home Administration, an agency of the U.S. Department of Agriculture, providing loan and grant funds for development of rural water systems serving communities with a population of less than ten thousand (10,000) people.  Includes succeeding agencies such as the Rural Development Administration.

FINAL PLAT – A complete and exact plan for the subdivision of a tract of land into lots for marketing which has been approved by all regulatory agencies having jurisdiction over approval of the design, planning, and specifications of the facilities of such subdivision.  The Kingsland Water Supply Corporation shall determine if a plat submitted for the purposes of this Tariff shall qualify as a final plat.

FRONT-END CAPITAL CONTRIBUTION – A fee assessed of new Applicants for water service for the purpose of acquiring capital to defray the costs of expanding the system facilities in order to meet the customer growth needs of the Corporation.  This fee is charged for each meter equivalent or Service Unit for which service has been requested.

HAZARDOUS CONDITION – A condition, which jeopardizes the health and welfare of the Member/Consumers of the Corporation as, determined by the Corporation or regulatory authority.

INACTIVE ACCOUNT – An account, which is no longer actively taking water service from the Corporation.

INDICATION OF INTEREST FEE – A fee paid by a potential Member of the Corporation for the purpose of aiding the FMHA and Corporation officials in determining the feasibility of a construction and/or expansion project.  The Indication of Interest Fee may be converted to a Membership Fee upon determination that service to the Applicant if feasible and available.  Upon such conversion, the Applicant may then further qualify as a Member and shall become a Member of the Corporation upon receipt of a Membership Certificate.

LIQUIDATED MEMBERSHIP – A Membership which has been cancelled due to delinquent charges exceeding the Membership fee or for other reasons as specified in this Tariff.  Service shall not be provided to any person whose Membership Fee has been liquidated until a new Membership Fee has been paid and all other applicable requirements for service as provided in this Tariff.

MEMBERSHIP FEE – A fee paid by the applicant to join the Corporation.  It is paid at the time membership is approved.  A Membership fee shall be collected for each metered tap on the Corporation’s system.  The Membership Fee is a non-refundable fee.  It shall not be refunded upon termination of service or transfer of any real property or ownership.

MEMBERSHIP CERTIFICATE – A certificate of Membership with the corporation evidencing a Member’s standings in the Corporation.

MINIMUM MONTHLY CHARGE – The term Minimum Monthly Charge (proper name) is used to define the monthly charge assessed each Member of the Corporation utilizing service or each Member who has the opportunity to utilize service via a metering device installed by the Corporation.  In the text of this Tariff, minimum monthly charge (common name) may be used generically to describe Minimum Monthly Charge or Reserved Service Charge, the two monthly charges assessed each Member entitled to service.  See definition of Reserved Service Charge.

PERSON – Any natural person, partnership, cooperative corporation, association, private corporation, agency or public or private organization of any character.

RENTER – A consumer who rents property from a Member and may otherwise be termed a lessee or tenant.

RE-SERVICE – Providing service to an Applicant at a location for which service previously existed, but where Membership has been liquidated and now requires the fitting of a metering device into an existing setting and possibly requiring modifications to the setting in order to restore service.  Costs of such re-servicing shall be based on justifiable and reasonable costs to the Corporation for restoration of service.
RESERVED SERVICE CHARGE – A monthly charge assessed for each property where service is being reserved in behalf of a Member or future Member.  The purpose of this fee is to reserve service capacity at a specified location pending installation of a tap by the Corporation.  This fee is paid monthly in lieu of the Minimum Monthly Charge until such time as a lot may be sold and a tap is provided as requested.  The Reserved Service Charge shall be cost-based to defray actual costs of service to the property for which service has been requested.

SERVICE CLASSIFICATION – A type of service which warrants a specific charge for service based on specific criteria such as usage, meter size, demand, type application, etc. as determined by the Corporation upon evaluation of the service requirements of the Applicant or Member.

SERVICE APPLICATION AND AGREEMENT – A written agreement between the Member/Applicant and the Corporation outlining the responsibilities of each party regarding the service of water.

SERVICE UNIT – The base unit of service used in facilities design and rate making.  For the purposes of this tariff, a service unit equivalent serves any single family residence, each unit of a duplex or apartment, or businesses with separate water using facilities.  Where multiple businesses share facilities, a Service Unit Equivalent or Base Charge will be assessed for every two businesses.

SURRENDERED MEMBERSHIP – A Membership in which service has been discontinued upon request of the Member and all indebtedness due the Corporation has been paid in full.

TARIFF – The Corporation’s published rates, fees, and conditions of service.

TRANSFEREE – An Applicant receiving a Kingsland Water Supply Corporation Membership by legal means from a person or entity desiring to forfeit and transfer current rights to Membership to another person or entity.

TRANSFEROR – A Member who transfers Membership by legal means to another person or entity desiring to qualify for service to a property for which the Membership is currently issued or to the Corporation.

SECTION E:  SERVICE RULES AND REGULATIONS

1. Service Entitlement.  An Applicant shall be considered fully qualified and entitled to water service when proper application has been made, terms and conditions of SERVICE AND MEMBERSHIP have been met and continue to be met, and all fees have been paid as prescribed by this Tariff.
2. Application Procedures and Requirements.  For the purpose of this Tariff, service requested by an Applicant and provided by the Corporation shall be divided into the following two (2) classes:
• Standard Service is defined as service on an existing pipeline where pipeline or service facility extensions are not required and special design and/or engineering considerations are not necessary.
• Non-Standard Service is defined as any service applied for which is not Standard Service.  In addition to the following requirements for service, service requirements as prescribed by Section F of this Tariff shall be required of the Non-Standard Service Applicant prior to extension of such pipelines, and/or service facilities.
  1. The number of Service Unit Equivalents, for non-standard service not otherwise addressed, will be based on anticipated flow rate and fixtures.  This will determine meter size.  Meter sizes will be determined by the Corporation.
  2. A service Unit Equivalent will also be established on a per bed situation for Prisons, Nursing Homes, Hospitals, etc.  Every four beds will equal a Service Unit.  When a fraction of a S.U.E. exits, .5 or over goes to the next S.U.E.
• Requirements for Standard and Non-Standard Service.
  1. The Corporation’s Service Application and Agreement Form shall be completed in full and signed by the Applicant.  (See Sample Application Packet).
  2. A Right-of-Way Easement Form, sanitary control easement, or other such easement forms, approved by the Corporation, must be completed by the Applicant for the purpose of allowing future extensions or facility additions to improve or provide service to future Applicants. (See Sample Application Packet).  NOTE:  This requirement may be delayed for Non-Standard Service requests.
  3. The Applicant shall provide proof of ownership or title to property for which service has been requested in a manner acceptable to the Corporation.
  4. The Applicant shall provide proof that application has been made to the proper regulatory authority for approval and installation of on-site sewage disposal facilities as authorized under the Texas Sanitation and Health Protection Law, Texas Civil Statutes, Article 4477-1, for all services requiring such installations.
  5. The Corporation shall consider master metering multiple units for an applicant’s request provided the total number of units to be served are all:
  6. owned by the same person, partnership, cooperative, corporation, agency, public or private organization of any character.
  7. inaccessible to public right-or-way, and
  8. considered a commercial enterprise i.e. for business, rental or lease purposes.
  9. All Service Applications approved and cost of service fees quoted by the Corporation shall be presented to the Applicant in writing and shall stand approved at quoted costs for a period not to exceed thirty (30) days.  After thirty (30) days, each Applicant shall re-apply for service under the terms of this Tariff.
3. Activation of Standard Service.
   • New Tap – The Corporation shall charge a non-refundable service installation fee as required under Section G of this Tariff.  The service installation fee shall be quoted in writing to the Applicant.  All other fees shall be paid in advance of installation or in advance of reservation of service capacity including, as applicable, the Membership Fee, any Easement Fees, and the Front-end Capital Contributions as required under Section G of this Tariff.
   • Re-Service – In the event an application is made for service on property where service previously existed, and for which an in-active account exists (metering device removed), the Corporation shall charge the applicant a new Membership Fee and labor and materials costs necessary to restore service to full operation.  In addition, the Corporation shall charge accumulated Reserved Service Fees which have been entered on the in-active account as monthly debits for the purpose of allowing the Corporation to recover the costs of reserving capacity at the location for which re-service has been requested.  If restoration of service is not requested, this fee will accumulate monthly until the total balance of Reserved Service Fees equals the amount of the Front-end Capital Contribution previously paid for service to the property.  At such time, all service equipment shall be removed by the Corporation and all subsequent service requests shall be treated as new applications.
   • Performance of Work – After all applicable fees are paid and approval is granted by proper authorities, all tap and equipment installations specified by the Corporation shall be completed by the Corporation staff or the Corporation’s designated representative.  The tap shall be completed within ten (10) working days after receipt of payment of quoted installation fees.
   • Inspection of Customer Service Facilities – The Corporation staff or its designated representative shall inspect all customer service facilities before and periodically after the tap is made to insure compliance with state required Minimum Acceptable Operating Practices for Public Drinking Water Systems as promulgated by the Texas Natural Resource Conservation Commission or successor agency, applicable plumbing codes, and utility construction standards.  This inspection will also be conducted  each time an account experiences a transfer of membership.   A Customer Service Inspection fee will be charged in accordance to Section G of this tariff.
4. Activation of Non-Standard Service.
   • Activation of Non-Standard Service shall be conducted as prescribed by terms of Section F of this Tariff.
   • Re-Service – The same terms which apply under the Activation of Standard Service Sub-Section on Re-Servicing shall be applied to Non-Standard Re-Service requests.
5. Changes in Service Classification.  If at any time the Corporation determines that the customer service needs change from those needs originally applied for to a different service classification and the Corporation determines that additional or different facilities are necessary to provide adequate service, the Corporation shall require the Applicant/Member to re-apply for service under the terms and conditions of this Tariff.  Applicant/Members failing to comply with this provision shall be subject to the Disconnect with Notice Provisions of this Tariff, Sub-Section 14-a.
6. Membership.

• Eligibility – Eligibility for Membership shall not guarantee service to the Applicant or Transferee; however, qualification for service is a prerequisite to Membership eligibility for new Applicants or continued Membership for Membership Transferees.
• Membership Certificates – Upon qualification for service, qualification for Membership, and payment of the required fees, the Corporation shall issue a Membership Certificate to the Applicant.  The Membership Certificate provides proof of Membership in the Corporation and shall entitle the Applicant/Member to one (1) connection to the Corporation’s water main and to one (1) vote at any Annual or Special Membership Meeting of the Corporation as prescribed by the Corporation Bylaws.  An original of each Membership Certificate shall be held on file in the Corporation office.  Ownership of more than one (1) Membership Certificate shall not authorize the Member to cast more than one (1) vote at any Annual or Special Meeting.

Each Membership Certificate thereby represented shall be assigned to the specified parcel of land originally designated to receive service at the time of application.

NOTE:  In the event that the Corporation is conducting a potential Members survey for indications of interest in future water service for the purpose of determining the feasibility of an initial construction or expansion project under FMHA guidelines (See Sample Application Packet FMHA Form 442-1, Membership Survey Data Sheet), regular application procedures may be modified.  An indication of Interest Fee may be required prior to qualifications for receipt of service by the Applicant but shall only be used or applied as a Membership Fee for Membership purposes (upon issuance of a Membership Certificate) if water service is ultimately received or reserved by the Applicant as a result of the planned project facilities.  If service is not provided within the scope of this project, Indication of Interest Fees shall be refunded, less expenses, within sixty (60) days on the loan closing with FMHA.

• Transfers of Memberships
  1. A Member is entitled to transfer Membership in the Corporation without the prior approval on the Corporation only under the following circumstances:
     • The Membership is transferred by will to a person related to the Transferor with the second degree by consanguinity; or
     • The Membership is transferred without compensation to a person related to the Transferor within the second degree consanguinity; or
     • The Membership is transferred without compensation or by sale to the Corporation; or
     • The Membership is transferred as a part of the conveyance of real estate from which the Membership arose.
  2. In the event that Membership is transferred pursuant to the provisions of Sub-Section 6.c (1) such transfer shall not be completed or recorded on the books and record of the Corporation until such time as the transferor has provided satisfactory evidence to the Corporation of such transfer.  A transfer of Membership shall not be binding on the Corporation until such transfer has been approved as provided by Sub-Section 6.c (3).
  3. Qualifications for water service upon transfer of Membership set forth in Sub-Section 6.c (1) and 6.c (2) shall be subject to approval of the Corporation and shall be recorded on the books and records of the Corporation only upon the following terms and conditions:
     • A Service Application Form has been completed by the Transferor and Transferee;
     • The Transferee has completed the required Application Packet;
     • All indebtedness due the Corporation has been paid;
     • The Membership Certificate has been surrendered, properly endorsed, by the record Transferor; and
     • The Transferee demonstrates satisfactory evidence of ownership of the property designated to receive service and from which the Membership originally arose.
• Cancellation of Membership – To keep an account/Membership in good standing and “active”, a minimum charge must be paid monthly to the Corporation, whether or not water is used.  Failure to pay this monthly charge to the Corporation shall jeopardize the Member’s Membership standing and give rise to liquidation of the Membership Fee.  A Member may be relived of this obligation to pay by surrendering the Membership Certificate, properly endorsed to the Corporation.  The Member shall also complete a Service Discontinuance Request Form prior to termination of service.  (See Misc. Transaction Forms).  However, a Member is not relieved of any obligations incurred prior to the date of surrender of a properly endorsed Membership Certificate prior to termination of service.  Rights to future service at this tap shall be extended on an as-available basis and subject to the terms of the Activation of Service Sub-Section 3.a. of this Tariff.
• Liquidation Due to Delinquency – When the amount of the delinquent minimum monthly charges, gallonage charges, penalties, and service fees owed by the Member equals the Membership Fee, The Membership Fee shall be liquidated and the Membership cancelled and transferred back to the Corporation.  In the event the Member leaves a balance due on an account guaranteed under the terms of a Service Application and Agreement, and the delinquent Member owns more than one Membership Certificate, the Corporation may liquidate as many of the Member Guarantor’s Membership Fees as necessary to satisfy the balance due the Corporation.  The Corporation shall collect any remaining account balances through appropriate means.  Reinstatement of service shall be subject to the terms of the Activation of Service Sub-Section 3.b. of this Tariff.
• Cancellation Due to Policy Non-Compliance – The Corporation may cancel a Membership anytime a Member fails to comply with policies of the Corporation, including but not limited to Member’s failure to provide proof of ownership of the property from which the Membership arose.
• Re-assignment of Cancelled Membership – The Corporation, upon cancellation of Membership under the provisions of this Tariff, may re-assign the Membership rights thereby granted to any person who satisfactorily demonstrates eligibility for Membership, including but not limited to proof of ownership of the property from which the Membership arose.
• Mortgaging of Memberships – Nothing herein shall preclude a Member from mortgaging his Memberships.  However, notification to the holder of any security interest (mortgagee/lien-holder) of account status of Member/mortgagor will be provided only upon satisfactory completion of requirements for such conditions under the Membership Mortgage Agreement (See Misc. Transaction Forms).  Prior to the cancellation of any Membership as provided under Sub-Section 6.d. (Cancellation of Membership), the Corporation will notify the holder of any security interest in the Membership.  The holder of the security interest also must hold a security interest in the real property at which water service is provided under the Membership.  The Corporation may transfer the Membership to the holder of such security interest in lieu of cancellation, provided the holder of the security interest pay in full all delinquent and unpaid obligations and provided further that the holder of the security interest has secured title to the real property from which the Membership arose.  The Corporation may withhold cancellation of Membership pending the resolution of any foreclosure proceedings or similar legal proceedings by the holder of the security interest.
  
  
• Owners of Rental Property. Under no circumstances shall the Corporation bill a renter/lessee in behalf of a Member, unless the Member has given specific written instructions to send the bill direct to the renter/lessee.
  

• Denial of Service.  The Corporation may deny service for the following reasons:
  • Failure of the Applicant or Transferee to complete all required forms and pay all required fees and charges;
  • Failure of the Applicant or Transferee to comply with rules, regulations, policies, and bylaws of the Corporation;
  • Existence of a hazardous condition at the Applicant’s property which would jeopardize the welfare of the Members/Users of the Corporation upon connection;
  • Failure of the Applicant or Transferee to provide representatives or employees of the Corporation reasonable access to property for which water service has been requested when there is reason to believe that a hazardous condition may exist for which access is necessary to verify.  This to include bad dogs;
  • Failure of the Applicant or Transferee to comply with all governmental rules and regulations of the Corporation on file with the state regulatory agency governing the service applied for by the Applicant;
  • Failure of the Applicant or Transferee to provide proof of ownership; to the satisfaction of the Corporation, of property for which the tap has been requested, and/or
  • Applicant’s service facilities are known to be inadequate or of such character that satisfactory service cannot be provided.
• Applicant’s or Transferee’s Recourse.  In the event the Corporation refuses to serve an applicant under the provisions of these rules, the Corporation must notify the Applicant, in writing of the basis of its refusal, and the Applicant may file for an appeal, in writing, with the Board of Directors of the Corporation.
  
  
• Insufficient Grounds for Refusal of Service.  The following shall not constitute sufficient cause for the refusal of service to an Applicant:

• Failure to pay a bill to correct previous under-billing due to misapplication of rates more than six (6) months prior to the date of application;
• Violation of Corporation’s rules pertaining to operation of non-standard equipment or unauthorized attachments which interferes with the service of others, or other services such as communication services, unless the member has first been notified and been afforded reasonable opportunity to comply with said rules;
• Failure to pay a bill of another Member as guarantor thereof unless the guarantee was made in writing to the Corporation as a condition precedent to service;
• Delinquency in payment for service by a previous occupant of the premises to be served;
• Failure to pay for material or charges for non-utility service provided by the Corporation.

• Derferred Payment Agreement.  The Corporation may offer a deferred payment plan to a Member who cannot pay an outstanding balance in full and is willing to pay the balance in reasonable installments as determined by the Corporation, including any Late Penalty Fees or interest on the monthly balance to be determined as per agreement.  (See Misc. Transaction Forms).
• Charge Distribution and Payment Application. 
• The Minimum Monthly Charge or the Reserved Service Charge is applied from the 18th day of the month to the 18th day of the next month.  Billings for this amount shall be mailed on the 25th of the month for which this charge is due.  All services shall be subject to this charge whether or not the service is in use by the Member.
• Gallonage Charge, defined as water usage in excess of any water allotment, if included, in the Minimum Monthly Charge, shall be billed at the rate specified in Section G, and shall be billed in one thousand (1000) gallon increments.  Water charges for usage exceeding the monthly allotment are based on monthly meter readings and are calculated from reading date to reading date.  Readings used in all billing calculations shall be taken by the Corporation’s employees or designated representative.
• Posting of Payments – All payments shall be posted against previous balances prior to posting against current billings.
• Due Dates, Delinquent Bills, and Service Disconnection Date.  The Corporation shall mail all bills on or about the 25th of the month.  All bills shall be due upon receipt and are past due beyond the date indicated on the bill (allowing approximately fifteen (15) days to pay), after which time a penalty shall be applied as described in Section G.  A bill is delinquent if not paid by the past due date.  Payments made by mail will be considered late if not in office during regular hours of the past due date.   Final notices shall be mailed allowing fifteen (15) additional days for payment prior to disconnection.  The fifteen (15) additional days shall begin on the day the final notice is deposited with the U.S. Postal Service with sufficient postage.  If the due date for the regular or final billing is on a weekend or holiday, the next due date for payment purposes shall be the next day the Corporation office is open for business after said weekend or holiday.  For all disputed payment deadlines, the date postmarked on each bill will determine the beginning of each billing cycle or final notice mailings.
  Upon written request, any residential customer 60 years of age or older who occupies the entire premises of a dwelling receiving water utility service from the Corporation shall receive extension of the past due date, without penalty.  The extension shall not exceed ten (10) days beyond the usual fifteen (15) day payment period for a total of no more than twenty-five (25) days from the date the bill is issued.  The request may specify extension of the late payment periods for current and subsequent billings.
• Rules for Disconnection of Service.  The following describes the rules and conditions for disconnection of service:
  • Disconnection With Notice – Water utility service may be disconnected for any of the following reasons after proper notification has been given:
  • Returned Checks – In the event a check, draft, or any other similar instrument is given by a person, firm, corporation, or partnership to the Corporation for payment of services provided for in this Tariff, and the instrument is returned by the bank or other similar institution as insufficient or non-negotiable for any reason, the Corporation shall mail, via the U.S. Postal Service, a notice requiring redemption of the returned instrument within ten (10) days of the date of the notice to be made in the Corporation office.  Redemption of the returned instrument shall be made by cash, money order, or certified check.  Failure to meet these terms shall initiate disconnection of service.
  • Any such instruments returned as insufficient or non-negotiable for any reason for any two billing periods within a twelve (12) month period shall be considered evidence of bad credit risk by the Corporation.  The Member/customer in violation shall be placed on a “cash-only” basis for a period of twelve (12) months.
  • Failure to pay a delinquent account for utility service or failure to comply with the terms of a deferred payment agreement;
  • Violation of the Corporation’s rules pertaining to the use of service in a manner which interferes with the service of others or the operation of non-standard equipment if a reasonable attempt has been made to notify the Member and the Member is provided with a reasonable opportunity to remedy the situation;
  • Failure of the Member to comply with the terms of the Corporation’s Service Agreement, Tariff, Bylaws, or Special Contract provided that the Corporation has given notice of said failure to comply, and Member has failed to comply within a specified amount of time after notification.
  • Failure to provide access to the meter under the terms of this Tariff or to property at which water service is received when there is reason to believe that a hazardous condition or policy violation exists for which access is necessary to verify.
  • Misrepresentation by any Applicant or Transferee of any fact on any form, document, or other agreement required to be executed by the Corporation.
  • Failure of a Member to meet requirements of the regulatory authority for construction or maintenance of on-site sewage facilities as authorized by the Texas Sanitation and Health Protection Law, TCS, Article 4477-1.
  • Failure of a Member to re-apply for service upon notification by the Corporation that the Member no longer meets the terms of the service classification originally applied for under the original service application.
• Disconnection Without Notice – Water utility service may be disconnected without notice for any of the following conditions:

• A known dangerous or hazardous condition exists for which service may remain disconnected for as long as the condition exists, including but not limited to a violation of the Texas Sanitation and Health Protection Law 4477-1, or there is reason to believe a dangerous or hazardous condition exists and the Member refuses to allow access for the purpose of confirming the existence of such condition an/or removing the dangerous or hazardous condition;
• Service is connected without authority by a person who has not made application for service or who has reconnected service without authority following termination of service for non-payment; and
• In instances of tampering with the Corporation’s meter or equipment, bypassing the meter or equipment, or other diversion of service.
• In the event a check, draft, or any other similar instrument is given by a person, firm, copporation, or partnership to the Corporation for payment of an account in order to avoid being disconnected or in order to have service restored, and the instrument is returned by the bank or other similar institution as insufficient or non-negotiable for any reason, the Corporation shall immediately disconnect the account and service will not be restored until the account is paid current by cash, money order or certified check.
  When reasonable, given the nature of the reason for disconnection, a written statement providing notice of disconnection and the reason therefore shall be posted at the place of common entry or upon the front door of each affected residential unit as soon as possible after service has been disconnected.

• Disconnection Prohibited – Utility service may not be disconnected for any of the following reasons:

• Failure of the Member to pay for merchandise or charges for non-utility service provided by the Corporation, unless an agreement exists between the Applicant and the Corporation whereby the Member guarantees payment of non-utility service as a condition of service;
• Failure of the Member to pay for a different type or class of utility service unless a fee for such service is included in the same bill;
• Failure of the Member to pay charges arising from an under-billing occurring due to any misapplication of rates more than six (6) months prior to the current billing;
• Failure of the Member to pay the account of another Member as guarantor thereof, unless the Corporation has in writing the guarantee as a condition precedent to service;
• Failure of the Member to pay charges arising from an under-billing due to any faulty metering, unless the meter has been tampered with or unless such under-billing charges are due to meter error.
• Failure of the Member to pay estimated bill other than a bill rendered pursuant to an approved meter reading plan, unless the Corporation is unable to read the meter due to circumstances beyond its control; e.g. car parked over meter; locked gates; vicious dogs.

• Disconnection on Holidays and Weekends – Unless a dangerous condition exists or the Member requests disconnection, service shall not be disconnected on a day, or on a day preceding a day, when personnel of the Corporation are not available to the public for the purpose of making collections and reconnecting service.
• Disconnection Due to Utility Abandonment – The Corporation may not abandon a Member or Certificated Service Area without written notice to its Members and all similar neighboring utilities and approval for the Texas Natural Resource Conversation Commission.
• Disconnection for Ill and Disabled – The Corporation may not discontinue service to a delinquent residential Member permanently residing in an individually metered dwelling unit when that Member establishes that discontinuance of service will result in some person at that residence becoming seriously ill or more seriously ill if service is discontinued.  Each time a Member seeks to avoid termination of service under this Sub-Section, the Member must have the attending physician call or contact the Corporation within sixteen (16) days of issuance of the bill.  A written statement must be received by the Corporation from the physician within twenty-six (26) days of the issuance of the utility bill.  The prohibition against service termination shall last sixty-three (63) days from the issuance of the utility bill or such lesser period as may be agreed upon by the Corporation and Member’s physician.  The Member shall enter into a Deferred Payment Agreement.
• Disconnection of Master-Metered Services – When a bill for water utility services is delinquent for a master-metered service complex (defined as a complex in which a single meter serves two (2) or more residential dwelling units), the following shall apply:
• The Corporation shall send a notice to the Member as required.  This notice shall also inform the Member that notice of possible disconnection will be provided to the tenants of the service complex in six (6) days if payment is not rendered before that time.
  • At least six (6) days after providing notice to the Member and at least four (4) days prior to disconnection, the Corporation shall post at least five (5) notices in public areas of the service complex notifying the residents of the scheduled date for disconnection of service.

The tenants may pay the Corporation for any delinquent bill in behalf of the owner to avert disconnection or to reconnect service to the complex.

Billing Cycle Changes.  The Corporation reserves the right to change its billing cycles if the work load requires such practice.  After a billing period has been changed, the billings shall be sent on the new change date unless otherwise determined by the Corporation.

Bill Adjustment Due to Inoperative Meters or Meter Errors. (Back-billing).  If any meter is found to be outside of the accuracy standards established by the American National Standards Institute, Inc., of the American Waterworks Association, proper correction shall be made of previous reading for the period six month (6) immediately preceding the removal of such meter from service.

Disputed Bills.  In the event of a dispute between the Member and the Corporation regarding any bill, the Corporation shall forthwith make and conduct an investigation as shall be required by the particular case, and report the results in writing thereof to the Member.  All disputes under this subsection must be submitted to the Corporation, in writing, prior to the due date posted on said bill.

Inoperative Meters.  Water meters found inoperative will be repaired or replaced within a reasonable time.  If a meter is found not to register for any period, unless bypassed or tampered with, the Corporation shall make a charge for units used, but not metered, for a period not to exceed three (3) months, based on amounts used under similar conditions during the period preceding or subsequent thereto, or during corresponding periods in previous years.

Bill Adjustment Due to Meter Error.  The Corporation shall test any Member’s meter upon written request of the Member.  In the event the meter tests within the accuracy standards of The American Water Works Association, a test fee as prescribed in Section G of this Tariff will be imposed.  In the event the test results indicate that the meter is faulty or inaccurate, the test fee shall be waived, the meter shall be calibrated or replaced, and a billing adjustment may be made as far back as six (6) months but not extending beyond current Membership.  The billing adjustment shall be made to the degree of the meter’s inaccuracy as determined by the test.  The Member shall complete a Meter Test Request Form prior to the test.  (See Misc. Transaction Forms).

Meter Tampering and Diversion.  For purposes of these Sections, meter-tampering, bypassing, or diversion shall all be defined as tampering with Corporation’s meter or equipment, bypassing the same, or other instances of diversion, such as removing a locking or shut-off devise used by the Corporation to discontinue service, physically disorienting the meter, attaching objects to the meter to divert service or to by-pass, inserting objects into the meter, and other electrical and mechanical means of tampering with, bypassing, or diverting service.  The burden of proof of meter-tampering, bypassing, or diversion is on the Corporation.  Photographic evidence or any other reliable and credible evidence may be used; however, any evidence shall be accompanied by a sworn affidavit by the Corporation’s staff when any action regarding meter-tampering as provided for in these Sections is initiated.  A court finding of meter-tampering may be used instead of photographic or other evidence, if applicable.  Unauthorized users of services of the Corporation shall be prosecuted to the extent allowed by law under the Texas Penal Code 28.03.

Meter Relocation.  Relocation of meters/taps shall be allowed by the Corporation provided that:

1. No transfer of Membership is involved;
2. An easement for the proposed location has been granted to the Corporation;
3. The property of the new location requested is owned by the current Member of the meter to be moved; and
4.  The Member pays the actual cost of relocation plus administrative fees.

Prohibition of Multiple Connections to a Single Tap.  In order that the Corporation may maintain adequate records of the actual number of users on its system to assure compliance with Texas Natural Resource Conservation Commission Rules and Regulations on minimum service standards, to ensure that charges are received for each user on the system, and to ensure that the Corporation’s metering device is adequately sized for proper flow and accurate measurement of water used, all connections of any dwelling, household, business, and/or water-consuming establishment currently receiving or planning to receive water service, either directly or indirectly from the Corporation’s water system, shall individually apply for service under the rules of this Tariff.  Any unauthorized submetering or diversion of service shall be considered a Multiple Connection and subject to disconnection of service.  If the Corporation has sufficient reason to believe a Multiple Connection exists, the Corporation shall discontinue service under the Disconnection with Notice provisions of this Tariff.

• Member’s Responsibility.
• The Member shall provide access to the meter at all reasonable times for the purpose of reading, installing, checking, repairing, or replacing the meter.  Member shall provide a key to locked gates.  If the gate to the Member’s premises is locked, preventing the reading of the meter, an estimated bill shall be rendered to the Member for the month; and a notice shall be sent to the effect that entrance could not be gained and that a key should be furnished or the gate unlocked for each reading period.  Should the gate remain locked for three (3) consecutive months after proper notification to the Member, then service shall be discontinued and the meter removed with no further notice.
• The Member shall be responsible for compliance with all utility, local, and state codes, requirements, and regulations concerning on-site service and plumbing facilities.
• All connections shall be designed to ensure against back-flow or siphonage into the Corporation’s water supply.  In particular, livestock water troughs shall be plumbed above the top of the trough with air space between the discharge and the water level in the trough.
• The use of pipe and pipe fittings that contain more than 8.0% lead or solder and flux that contain more than 0.2% lead is prohibited for any plumbing installation or repair of any residential or non-residential facility providing water for human consumption and connected to the Corporation’s facilities.  Customer service pipelines shall be installed by the applicant and shall be a minimum SDR-26 PVC pipe. (Schedule 40 PVC is the recommended.)
• All wastewater and potable water service pipeline installations must be minimum of nine feet apart and meet all applicable plumbing standards for crossings, etc.

Service shall be discontinued without further notice when installations of new facilities or repair of existing facilities are found to be in violation of this regulation until such time as the violation is corrected.

• A Member owning more than one (1) Membership Certificate shall keep all payments current on all accounts.  Failure to maintain current status on all accounts shall be enforceable as per Service Application and Agreement executed by the Member.
• The Corporation’s ownership and maintenance responsibility of water supply and metering equipment shall end at the meter.  Therefore, all water usage registering upon and/or damages occurring to the metering equipment owned and maintained by the Corporation shall be subject to charges as determined by the Corporation’s Tariff as amended from time to time by the Board of Directors.
• The Corporation shall require each Member to provide a cut-off valve on the Member’s side of the meter for purposes of isolating the Member’s service pipeline and plumbing facilities from the Corporation’s water pressure.  The Member’s use of the Corporation’s curb stop or other similar valve for such purposes is prohibited.  Any damage to the Corporation’s equipment shall be subject to service charges.

SECTION F:  NON-STANDARD SERVICE REQUIREMENTS

1. Corporation’s Limitation.  All Applicants shall recognize that the Corporation must comply with local, state, and federal rules and regulations as promulgated from time to time, and by covenants of current indebtedness.
   1. Purpose.  The purpose of this Section is to govern agreements and service procedures for subdivisions, additions to subdivisions or developments where service to more than one tract is necessary; and/or additional piping, service facilities, etc. are required to accommodate individual, multiple, commercial, or industrial Applicants.  For the purpose of this Tariff, Applicants subject to this Section shall be defined as Non-Standard.
   2. Application of Rules.  This Section may be altered or suspended when applied to planned facility expansions for which the Corporation extends its indebtedness.  The Board of Directors of the Corporation shall interpret on an individual basis whether or not the Applicant’s service request shall be subject to all or part of the conditions of this Section.
   3. Non-Standard Service Application.  The Applicant shall meet the following requirements prior to the initiation of a Service Contract by the Corporation:
      • The Applicant shall provide the Corporation a completed Service Application and Agreement giving special attention to the item on SPECIAL SERVICE NEEDS OF THE APPLICANT.
      • A final plat approved by the Corporation must accompany the Application showing the Applicant’s requested service area.  The plat must be approved by all regulatory authorities having jurisdiction over lot sizes, sewage control, drainage, right-of-way, and other service facilities.  Plans, specifications, and special requirements of such regulatory authorities shall be submitted with the plat.  Applicant’s for single taps involving extension or upsizing of facilities shall be required to submit maps or plans detailing the location of the requested extension and details of demand requirements.
      • At the time the Applicant tenders the Application, a Non-Standard Service Investigation Fee (See Section G) to cover initial administrative, legal and engineering fees shall be paid to the Corporation.  The balance of actual expenses incurred, as a result of efforts by the Corporation to study service requirements of the Applicant shall be paid by the Applicant.
      • If after the service investigation has been completed, the Corporation determines that the Applicant’s service request is for property outside the Corporation’s Certificated Service Area of Public Convenience and Necessity, service may be extended provided that:
      • The service location is contiguous to or within one-fourth (1/4) mile of the Corporation’s Certificated Service Area of Public Convenience and Necessity;
        • The service location is not in an area receiving similar service from another utility; and
        • The service location is not within the Area of Public Convenience and Necessity of another similar utility.
   4. Design.  The Corporation shall study the design requirements of the Applicant’s required facilities prior to initiation of a Service Agreement by adopting the following schedule:
      • The Corporation’s Consulting Engineer shall design all service facilities for the Applicant’s requested service within the Corporation’s specifications or within certain codes and specifications of neighboring municipalities for all Non-Standard Service Applications which lie within a five (5) mile margin around the boundaries of municipalities having jurisdiction over such design criteria (municipalities with a population greater than five thousand (5,000)).
      • The Engineer’s fees shall be paid out of the Non-Standard Service Investigation Fee, provided however, that the actual costs of the Engineer’s services do not exceed the amount of the Non-Standard Service Investigation Fee allotted for engineering services.  If the Applicant’s services exceed the allotted fee, the Applicant shall pay the balance of engineering fees prior to commencing with service investigation.
      • The Consulting Engineer shall submit to the Corporation a set of detailed plans, specifications, and cost estimates for the project.
      • If no local authority imposes other design criteria on the Applicant’s service request, the Corporation’s Engineer shall design all facilities for any Applicant to meet the demand for service as platted and/or requested in the plans or plat submitted in application for service.  The Corporation reserves the right to upgrade design of service facilities to meet future demands provided however, that the Corporation pays the expense of such upgrading above the Applicant’s facility requirements.
   5. Non-Standard Service Contract.  All Applicants requesting or requiring Non-
      Standard Service shall enter into a written contract, drawn up by the Corporation’s Attorney, in addition to submitting the Corporation’s Service Application and Agreement.  Said contract shall define the terms of service prior to construction of required service facilities.  Guidelines for the service contract may include, but are not limited to:
      • Definition of all costs associated with required administration, design, construction and inspection of facilities for water service to the Applicants’ service area and terms by which these costs are to be paid.
      • Definition of procedures by which the Applicant shall accept or deny a contractor’s bid, thereby, committing to continue or discontinue the project.
      • Definition of Front-end Capital Contributions required by the Corporation in addition to the other costs required under this Section.
      • Definition of monthly Reserved Service Charges as applicable to the service request.
      • Definition of terms by which reserved service shall be provided to the Applicant and duration of reserved service with respect to the impact the Applicant’s service request will have upon the Corporation’s system capability to meet other service requests.
      • Definition of terms by which the Applicant shall be reimbursed or compensated for fees duplicated in assessments for monthly rates and Front-end Capital Contributions.
      • Definition of terms by which the Corporation shall administer the Applicant’s project with respect to:
      • Design of the Applicant’s service facilities;
      • Securing and qualifying bids;
      • Execution of the Service Agreement;
      • Selection of a qualified bidder for construction;
      • Dispensing advanced funds for construction of facilities required for the Applicant’s service;
      • Inspecting construction of facilities; and
      • Testing facilities and closing the project.
      • Definition of terms by which the Applicant shall indemnify the Corporation from all third party claims and lawsuit in connection with the project contemplated.
      • Definition of terms by which the Applicant shall deed all constructed facilities to the Corporation and by which the Corporation shall assume operation and maintenance responsibility, including any enforcement of warranties in connection with construction of the Applicant’s project.
      • Definition of terms by which the Applicant shall grant title or easement for right-of-ways, constructed facilities and facility sites and/or terms by which the Applicant shall provide for the securing of required right-of-ways and sites.
      • Definition of terms by which the Board of Directors shall review and approve the Service Contract pursuant to current rules, regulations, and by-laws.
   6. Property and Right-of-Way Acquisition.  With regard to construction of facilities, the Corporation shall require private right-of-way easements or private property as per the following conditions:
      • If the Corporation determines that right-of-way easements or facility sites outside the Applicant’s property are required, the Corporation shall require the Applicant to secure easements or title to facility sites in behalf of the Corporation.  All right-of-way easements and property titles shall be researched, validated, and filed by the Corporation at the expenses of the Applicant.
      • All facilities required to be installed in public right-of-ways in behalf of the Applicant, due to inability to secure private right-of-way easements, shall be subject to costs equal to the original cost of facility installation for those facilities in public right-of ways, plus the estimated cost of future relocation to private right-of ways or subject to the cost of installation under state condemnation procedures, whichever is most desired by the Applicant.
      • The Corporation shall require an exclusive dedicated right-of-way on the Applicant’s property (as required by the size of the planned facilities and as determined by the Corporation) and title to property required for other on-site facilities.
      • Easement and facility sites shall be prepared for the construction of the Corporation’s pipeline and facility installations in accordance with the Corporation’s requirements and at the expense of the Applicant.
   7. Bids for Construction.  The Corporation’s Consulting Engineer shall advertise for bids for the construction of the Applicant’s proposed facilities in accordance with generally accepted practices.  Plans and specifications shall be made available with or without charge, to prospective bidders.  Although the Corporation reserves the right to reject any bid or contractor, the Corporation shall generally award the contract to the lowest and best bidder in accordance with the following criteria:
      • The Applicant shall sign the Service Contract noting willingness to proceed with the project and shall pay all costs in advance of construction associated with the project.
      • The Contractor shall secure adequate bid bond under terms acceptable to the Corporation.
   8. Pre-Payment for Construction and Service.  After the Applicant has executed the Service Agreement, the Applicant shall pay to the Corporation all costs necessary for completion of the project prior to construction and in accordance with the terms of the Service Contract.
   9. Construction.
      • All roadwork pursuant to county and/or municipal standards (if applicable) shall be completed prior to facility construction to avoid future problems resulting from road right-of-way completion and excavation.  Subject to approval of the requisite authority, road sleeves may be installed prior to road construction to avoid road damage during construction of Applicant’s facilities.
      • The Corporation shall inspect the facilities to ensure that Corporation standards are achieved.  The Inspection Fee (See Section G) of 1-1/2% of the total waterline project will be paid by the Applicant before the Corporation will assume maintenance and operations responsibility or install member connections.
      • Construction plans and specifications shall be strictly adhered to, but the Corporation reserves the right to change-order any specifications, due to unforeseen circumstances during the design phase, to better facilitate operation of the Applicant’s facility.  All change-order amounts shall be charged to the Applicant.

   SECTION G:  RATES AND SERVICE FEES

   Unless specifically defined in this Tariff, all fees, rates, and charges as herein stated shall be non-refundable.

   1. Service Investigation Fee  The Corporation shall conduct a service investigation for each service application submitted at the Corporation office.  An initial determination shall be made by the Corporation, without charge, as to whether the service request is Standard or Non-Standard.  An investigation shall then be conducted and the results reported under the following terms:
      • All Standard Service requests shall be investigated without charge and all applicable costs for providing service shall be quoted in writing to the Applicant with ten (10) working days of application.
      • All Non-Standard Service requests shall be subject to a fee, unique to each project, of sufficient amount to cover all administrative, legal, and engineering fees associated with investigation of the Corporation’s ability to deliver service to the Applicant, to provide cost estimates of the project, to present detailed plans and specifications as per final plat, to advertise and accept bids for the project, to present a Non-Standard Service Contract to the Applicant, and to provide other services as required by the Corporation for such investigation.  A Non-Standard Service Contract shall be presented to the Applicant within a suitable amount of time as determined by the complexity of the project.  (See Section F).
   2. Inspection Fee.  The Corporation will conduct inspections of materials, locations and installation periodically throughout the project.  The inspection fee will be based on 1-1/2% of the total projected cost of the waterline project.  If bids were not received on the project, the Corporation will have its appointed engineer estimate the fair market value of the project for a reasonable cost on which to base the inspection fee.  Before the Corporation will assume maintenance and operations responsibility or install member connections, the inspection fee must be paid by the Applicant.
       
   3. Membership Fee.  At the time the application for service is approved, a non-refundable Membership Fee must be paid before service shall be provided or reserved for the Applicant by the Corporation. The Membership Fee is based on the TRWA recommended meter equivalent.  The base fee is $100.00 for a 5/8” x 3/4” meter and then graduates per service unit equivalent if a larger meter is required for each tap/lot for which the service was originally requested.
       
   4. Easement Fee.  When the Corporation determines that private right-of-way easements and/or facilities sites are necessary to provide service to the Applicant, the Applicant shall be required to secure easements in behalf of the Corporation and/or pay all costs incurred by the Corporation in validating, clearing, and retaining such right-of way in addition to tap fees otherwise required pursuant to the provisions of this Tariff.  The costs may include all legal fees and expenses necessary to attempt to secure such right-of-way and/or facilities sites in behalf of the Applicant.
   5. Front-end Capital Contributions.  In addition to the Membership Fee, each Applicant shall be required to contribute capital in an amount projected to defray the cost of up-grading system facilities to meet growth demands created by adding customers.  This fee shall be assessed immediately prior to providing or reserving service on a per service unit equivalent basis for each tap/lot. This fee is $2,000.00 and is subject to change by the Board of Directors without notice. This fee for Look Out Mountain shall be $10,000.00 and is subject to change by the Board of Directors without notice. This fee for Rock Bluff shall be $3,600.00 and is subject to change by the Board of Directors without notice.  Any change will not become effective for a period of thirty (30) days after adoption by the Board of Director.
   6. Installation Fee.  The Corporation shall charge an installation fee for service as follows:
      • Standard Service shall include all current labor, material, engineering, legal, plumbing inspections and administrative costs necessary to provide individual metered water service and shall be charged on a per tap basis as computed immediately prior to such time as metered service is requested and installed.  This fee is $350.00, plus $40.00 for a customer valve.
        The charge for a road bore up to two inches or a road cut, if required, for meter installation will be $400.00 plus all applicable county permit fees. A road bore to a State road will be at actual cost.
      • Non-Standard Service shall include any and all construction labor and materials, plumbing inspections, administration, legal and engineering fees, as determined by the Corporation under the rules of Section F of this Tariff.
      • Standard and Non-Standard Service Installations shall include all costs of any pipeline relocations.
   7. Line Extension Fee.  If water line extension is required to install new service, the charge is $8.00 per foot plus material cost for line extension.  Our field personnel will measure from the end of our exiting line to the farthermost point of the property of the new installation.  Regardless of where the meter is installed on the member’s property line, the water line must be installed across the full length of the property.
        
   8. Fire Hydrant Meter Setup Fee.  The Corporation shall require a $75.00 setup fee forthe temporary installation of a fire hydrant meter used to meter water usage for construction purposes.  The contractor will then be billed monthly for a $75.00 monthly minimum and the amount of water used at the graduated rate scale.
       
   9. Customer Service Inspection Fee.  The Corporation shall inspect all customer service facilities to insure compliance with state required Minimum Acceptable Operating Practices for Public Drinking Water Systems, applicable plumbing codes, and utility construction standards.  This fee shall be assessed immediately prior to providing or reserving service and on all membership transfers on a per service unit equivalent basis for each tap/lot for which the service was originally requested. Vacuum breakers are required to complete this inspection.  If more than the allotted number of vacuum breakers are required, the customer will be billed $5.00 for each extra vacuum breaker.  The additional vacuum breakers necessary to complete the inspection will be calculated on the monthly bill following the inspection.  

   10. Monthly Charges.
       • Minimum Monthly Charges – The monthly charge for metered water service, including allowable gallonage, is $21.00 minimum monthly charge for 1,000 gallons.
       • Reserved Service Charges – The monthly charge for each active account at a specific location for which a meter has not been installed but for which the Corporation and the Applicant have entered into agreement and/or contract for reserved service.  This monthly charge shall be based on the Corporation’s monthly operating costs to service the Applicant’s dedicated facilities on a per lot/tap or Service Unit basis.  This charge reserves service to the Applicant’s service area.  This fee is $21.00 per month and shall never exceed the Minimum Monthly Charge for Metered Service on a per Service Unit.
       • In addition to the Minimum Monthly Charge, a gallonage charge shall be added at the rate of $2.50 per 1,000 gallons for any gallonage over 1,000 gallons used in any one (1) billing period up to 15,000 gallons.  The gallonage charge thereafter shall be $3.50 per 1,000 gallons up to 25,000; over 25,000 gallons the charge will be $4.75 per 1,000 gallons.
       • The Corporation shall, as required by Section 5.235, Water Code of the State of Texas, collect from each of its retail customers a regulatory assessment equal to one-half of one percent of the charge for retail water service.  This charge shall be collected in addition to other charges for utility service.  This fee is collected on all charges pertaining to Section G.9. Monthly Charges of this Tariff.  (At present the Corporation is absorbing this charge.)
   11. Late Payment Fee.  A penalty of $10.00 per billing period shall be made on delinquent bills.  This late payment penalty shall be applied to any unpaid balance exceeding one-half (1/2) a Minimum Monthly or Reserved Service Charge during one billing period.
   12. Returned Check Fee.  In the event a check, draft, or any other similar instrument is given by a person, firm, corporation, or partnership to the Corporation for payment of services provided for in the Tariff, and the instrument is returned by the bank or other similar institution as insufficient or non-negotiable for any reason, the account for which the instrument was issued shall be assessed a return check charge of $25.00.       
   13. Reconnect Fee.  The Corporation shall charge a fee for reconnecting service after the Corporation has previously disconnected the service for any reason provided for in this Tariff except for activation of service under Section E.3.b. (Re-Service).   The reconnect fee will be $50.00.
   14.  Service Trip Fee.  The Corporation may charge a trip fee of $25.00 for any service call or trip to the Member’s tap as a result of a request by the Member or resident (unless the service call is in response to damage of the Corporation’s or another Member’s facilities).
   15. Tampering Charge.   If tampering of any of the Corporation’s facilities occurs, a$250.00 charge will be assessed against the property owner.  This charge shall be paid in full in addition to any itemized Equipment Damage Fee before service is restored to a Member.  If the property owner is not a Member, then the charge will be paid in full before Membership is granted.  A lien will be filed against the property where the unauthorized connection has occurred, if arrangements are not made with the General Manager within 90 days of occurrence.   If it becomes necessary to file a lien against said property, then the property owner will be responsible for the reimbursement to the Corporation of not only any associated fees to file the lien, but also for any legal fees incurred by the Corporation to resolve the issue.
        
   16. Equipment Damage Fee.  If the Corporation’s facilities or equipment have beendamaged by tampering, by-passing, installing unauthorized taps or installing any unauthorized appurtenances, reconnecting service without authority, or other service diversion, a fee shall be charged equal to the actual costs for all labor, material, and equipment necessary for repair, replacement, and other Corporation actions.  This fee shall be charged and paid before service is re-established.  All components of this fee will be itemized, and a statement shall be provided to the Member.  If the Corporation’s facilities or equipment have been damaged due to negligence or unauthorized use of the Corporation’s equipment, right-of-way, or meter shut-off valve, or due to other acts for which the Corporation incurs losses or damages, the Member shall be liable for all labor and material charges incurred as a result of said acts or negligence.
        
   17. Customer History Report Fee.  A minimum fee of $5.00 and not more than $50.00 may be charged to provide a copy of the Member’s record of past water purchases in response to a Member’s request for such a record.
   18. Meter Test Fee.  The Corporation shall provide, install, own and maintain meters to measure amounts of water consumed by its customers.  Upon written request, a customer may have his meter tested without charge in his presence at a convenient time during normal working hours.  A charge not to exceed $45.00 may be assessed for an additional requested test within four (4) years of the first test if any such additional test shows the meter to be accurate.  Records of all meters and tests will be properly kept by the Corporation, and no meter may be placed in service until its accuracy has been established.
   19. Double Check Valve/ P.R.V. Test Fee.  Any customer with a backflow preventor device installed must have the device tested upon installation by a licensed tester and certified gauges.  The Corporation has licensed personnel and certified gauges available and will offer this service for a charge of $50.00 per device tested.  Should a customer choose to have someone outside the Corporation do the testing, we will need a copy of their license and a copy of the certification of the gauges used, as well as test results on the device.
   20. RPZ Unit Test Fee.  All customers with a RPZ unit installed must have the units tested annually.  The Corporation has licensed personnel and certified gauges to perform the test and will offer this service for a $50.00 charge per unit.  Should a customer choose to have someone outside the Corporation do the testing, we will need a copy of their license and a copy of the certification of the gauges used, as well as test results on the unit.
   21. Processing Fee.  An Applicant for service that is a Transferee shall complete all required application forms, etc., and pay a Processing Fee of $75.00.  This fee consist of two different services:  a. Transfer of Membership Certificate and account transfer process.
   22. Membership Certificate Copy Fee.  A fee of $1.00 will be charged to provide a duplicate copy of the Membership Certificate.
   23. Information Disclosure Fee.  All public information except that which has been individually requested as confidential shall be available to the public for a fee to be determined by the Corporation based on the level of service and costs to provide such information, but not to be inconsistent with the terms of the Texas Open Records Act: Article 6252-a.
       Copying documents up to 8 ½ inches by 14 inches are as follows:
       For 50 or fewer pages – 10 cents per page;
       For more that 50 pages – 85 cents for the first page and 15 cents for each additional page;
       For information that is not readily available, the charge is 70 cents for the first page, plus 15 cents for each additional page, plus actual labor costs incurred in providing the information.
   24.  Non-Disclosure Fee.  A fee may or may not be assessed any customer requesting in writing that personal information under the terms of this tariff not be disclosed to the public.
   25. Other Fees.  All services outside the normal scope of utility operations which the Corporation may be compelled to provide at the request of a customer or Member shall be charged to the recipient based on the cost of providing such service.
   • Transient Commercial Users.  Commercial users of water from Kingsland Water Supply Corporation including, Motels, Hotels, Lodges, Mobil Home Parks, and Transient or so-called “overnight” trailer parks.  (“Transient” means user of 90 days or less).  There will be required one (1) connection with proper meter size to serve the commercial user. 

   The present charge for this is:

   • A capital contribution for each S.U.E.  An S.U.E. is for each two units.
   • Membership fee based on total S.U.E.’s
   • Installation charge including proper meter.
   • Monthly charge - one S.U.E. per two units or fraction thereof - one S.U.E. for resident/manager
     There will also be a charge for use in excess of the total allowed  gallonage per Service Unit.

   
         27.  Multiple Housing Units on a Single Meter.   A Member may add an additional S.U.E. to an exiting account if a second permanent housing unit (i.e. living quarter, bath & kitchen) exist on the same property that the meter account was originally established to serve.  The Corporation must determine if a standard 5/8” X 3/4” meter is large enough to provide adequate capacity to both units and the Member must pay an additional capital contribution.  The monthly minimum will be based on two units.

   28. Multiple Housing or Business Units.  Duplex Housing Units, Apartments, Mobile Home Parks or any other type of Permanent Housing Units or Business Units that require a meter larger than the standard size will be charged the following:

   • A capital contribution based on total units
   • Membership fee based on total units
   • Installation charge including proper size meter
   • Monthly Charge – one monthly minimum per unit

   There will also be a charge for use in excess of the total allowed gallonage per Service Unit.

   29. Demand Meter  Any Member requesting a larger meter than the standard 5/8” x 3/4” meter for an individual business or residence will be charged the following:
   • A capital contribution based on AWWA meter equivalents
   • Membership fee based on AWWA meter equivalents
   • Installation charge based on meter size
   • Monthly Charge – monthly minimum based on AWWA meter equivalents

   At present 1,000 gallons are included in the monthly minimum.  Any demand meter customer will receive the allowed gallons based on AWWA meter equivalent and then pay the graduated rate for all excess water used.

   EXAMPLE

   1-1/2” meter is equivalent to 5 S.U.E.’s and allowed gallonage included in the monthly minimum is 1,000 gallons per S.U.E.
   1-1/2” Meter Charge would be
   
   Monthly Minimum = $105.00 with  5,000 allowed gallons
    5,001 – 15,000 gallons $2.50 per 1,000 gallons
   15,001 – 25,000 gallons $3.50 per 1,000 gallons
   25,001 and up $4.75 per 1,000 gallons
   

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   TRWA RECOMMENDED 5/8” X 3/4” METER EQUIVALENTS

   BASED ON AWWA SPECIFICATIONS AND DESIGN CRITERIA

   Meter Size            Recommended Continuous          Residential Meter       Capital          Monthly 

                                          Rate of Flow                           Equivalents                Fees          Minimum

   5/8” X 3/4”                    10.0 GPM                                          1                   $  2,000.00       $   21.00
          
            3/4”                    15.0 GPM                                         1.5                   3,000.00            31.50

      1”                             25.0 GPM                                         2.5                   5,000.00            52.50
    
      1-1/2”                       50.0 GPM                                         5                    10,000.00          105.00

      2”                             80.0 GPM                                         8                    16,000.00          168.00

       3” CMPD                160.0 GPM                                        16                     32,000.00          336.00          
       4” CMPD                250.0 GPM                                        25                      50,000.00         525.00

       6” CMPD                500.0 GPM                                        50                    100,000.00       1,050.00                
       8” CMPD                800.0 GPM                                        80                    160,000.00       1,680.00                                             
     10” CMPD             1,150.0 GPM                                       115                   230,000.00       2,415.00

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   LOOKOUT MOUNTAIN

   ______________________________________________________________________________

   Meter Size            Recommended Continuous          Residential Meter       Capital          Monthly 

                                          Rate of Flow                           Equivalents                Fees          Minimum

   5/8” X 3/4”                    10.0 GPM                                         1                      10,000.00      $   21.00
          
            3/4”                     15.0 GPM                                         1.5                   15,000.00           31.50

      1”                              25.0 GPM                                          2.5                  25,000.00           52.50
    
      1-1/2”                        50.0 GPM                                         5                      50,000.00          105.00

      2”                               80.0 GPM                                         8                     80,000.00          168.00

       3” CMPD                160.0 GPM                                        16                    160,000.00          336.00          
       4” CMPD                250.0 GPM                                        25                    250,000.00          525.00

       6” CMPD                500.0 GPM                                        50                    500,000.00        1,050.00               
       8” CMPD                800.0 GPM                                        80                    800,000.00        1,680.00                                           
     10” CMPD             1,150.0 GPM                                       115                1,150,000.00         2,415.00
    

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                                                               ROCK BLUFF
   ______________________________________________________________________________

   Meter Size            Recommended Continuous          Residential Meter       Capital          Monthly 

                                          Rate of Flow                           Equivalents                Fees          Minimum

   5/8” X 3/4”                    10.0 GPM                                          1                   $  3,600.00      $   21.00
          
            3/4”                     15.0 GPM                                          1.5                   5,400.00           31.50

      1”                              25.0 GPM                                          2.5                   9,000.00           52.50
    
      1-1/2”                        50.0 GPM                                          5                     18,000.00        105.00

      2”                               80.0 GPM                                         8                     28,800.00        168.00

       3” CMPD                160.0 GPM                                        16                      57,600.00          336.00          
       4” CMPD                250.0 GPM                                        25                      90,000.00          525.00

       6” CMPD                500.0 GPM                                        50                    180,000.00       1,050.00                
       8” CMPD                800.0 GPM                                        80                    288,000.00       1,680.00                                             

   10” CMPD             1,150.0 GPM                                       115                   414,000.00       2,415.00    

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   WATER CONSERVATION PLAN

   Kingsland Water Supply conservation activities consist of those that improve its efficiency in producing and marketing potable water and those that encourage or support the conservation of supplies by its customers.  KWSC recognizes that it can promote conservation most effectively by protecting its resources through efficient system operations.

   TARGETS FOR WATER SAVINGS FOR FIVE AND TEN YEAR FORECAST

   Target goals for municipal use in gallons per capita per day
   Per-capita water use, measured by gallons per person per day (gpcd), varies according to climate, geography, and an individual water system’s population and service profile.  In the 2005 year, the minimum gpcd was 66 gpcd, the peak reading was 147 gpcd; therefore, the average gpcd was 106 gpcd.  The target goal for KWSC municipal water customers is a voluntary minimum annual reduction of one percent of the previous year’s average gpcd with an ultimate average gpcd to be 86 gpcd.
   
   Target goals for wholesale use in gallons per capita per day
   Since any wholesale customers we might acquire would be purchasing potable water from KWSC to service a municipal area, the target goal would be the same voluntary minimum annual reduction of one percent in total gpcd.
   
   Target goals for maximum acceptable unaccounted-for water
   KWSC has a monthly water audit program in place.  The goal for maximum acceptable unaccounted-for water at present is 13% of all water pumped monthly.  Over the next five years it is our goal to reduce maximum acceptable unaccounted-for water to 10%.  In the next ten years it is our goal to reduce maximum acceptable unaccounted-for water to 7.5%.

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   EDUCATION AND INFORMATION

   The Corporation will promote water conservation by informing the public of ways to conserve water.  The following methods will be used to inform water users.

   • Distribution of educational materials to all customers.
   • Articles will be published periodically in the local paper as steady reminders to always conserve water.  These will be published more frequently when prudent.
   • New Customers will receive general conservation information when applying for service.
   • Utilize Billing Cards for periodic water conservation advisement.

   Information presented for public education as well as pre-printed brochures available from:
   
   Texas Water Development Board
   P. O. Box 13231, Capital Station
   Austin, TX  78711-3231

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   CONSERVATION PRACTICES

   Plumbing Codes

   The Corporation has adopted the Southern Standard plumbing codes.  Builders in the area utilize these codes when constructing or remodeling homes.  The Corporation will encourage local builders and developers to use water conservation-plumbing fixtures in new construction and replacing of existing fixtures.

   Retrofit Program

   Customers in existing buildings, which do not have water saving devices, will be encouraged to replace their old plumbing fixtures.  The advertising program will help inform them of the advantages of installing water saving devices.  The proposed excess rate structure mentioned below will encourage them to be conservative in their water use.  Customers will be informed of water saving kits available to aid in their water conservation efforts.

   Water Rate Structures

   A water rate structure that encourages water conservation has been implemented.  The rate structure will include a step rate to increase with increased water usage during Stage II and Stage III. When a customer applies for a tap, the water rate is identified based on the guidelines set forth in the plan. The new rate structure that went into effect January 01, 2004 is to be reviewed annually.

   Metering

   The System currently meters 100% of the water used.  The System has a policy of testing all meters that appear to have abnormally high or low water usage.  By incorporating this procedure into the Water Conservation Plan, the System will maintain the lowest possible water loss.  Meters suspected of running slow (or fast) will always be pulled and tested upon detection by a meter reader, by the monthly billing cycle readings or during a random inspection.

   A meter management program is in place whereby the following schedule is adhered to by the Corporation:

   •         Meters larger than 1” – test once a year.
   •         Meters 1”  and smaller – test every ten years minimum.

   Water Conservation Landscaping

   The System does not have the authority to establish subdivision regulations, which would require developers to plant only low water using plants and grasses.  The advertising program will include suggestions on landscaping and irrigation procedures that will save water usage and money.

   Leak Detection and Repair

   The System currently has a leak detection program, which will be maintained.  The program includes:
   • Monthly water use accounting by the RVS billing program that identifies high water use.
   • Constant monitoring of facilities through the SCADA system indicating low water levels.  A sudden drop in water levels triggers an investigation by a plant operator for the possibility of major watermain breaks.
   • Visual inspection by field operators and plant operators who keep a constant watch out for abnormal conditions indicating leaks.
   • An adequate maintenance staff and inventory supply to repair any leaks.

   Control of Unaccounted-for Usage of Water

   Monthly audits of the water system to determine illegal connections, abandonment of domicile  and leaks along water distribution lines are done by Kingsland Water Supply personnel during meter reading.

   Recycling and Reuse

   The System recycles and reuses all backwash water.

   IMPLEMENTATION AND ENFORCEMENT

   The Water Conservation Plan will be enforced by the following methods:

   • Staff will always encourage builders, buyers, and new customers to install the water conservation plumbing fixtures.
   • The rate structure should encourage retrofitting of old plumbing fixtures, which are using large amounts of water.  People will realize that replacing their fixtures will save them money on their water bill.  The current rate structure is as follows:

   Monthly Minimum (Includes first 2,000 gallons)    $21.00
   2,001 - 15,000 gallons                                    $ 2.50/1,000 gallons    
   15,000 – 25,000 gallons                                  $ 3.50/1,000 gallons
   25,000 and up                                               $ 4.75 per 1,000 gallons

   • The water rate structure will be enforced as it is programmed into the RVS Billing Program.   A late payment fee will automatically be added to all accounts not paid by the 10th of the month. Accounts two full months in arrears will have a lock placed on their meter which will not be removed until the charges have been paid.

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   WHOLESALE CUSTOMERS

   KWSC will require all wholesale customers signing new and renewed wholesale water supply contracts to develop and implement their own TCEQ approved water conservation plan.

   At present, the Corporation has one wholesale customer, Bridgepoint.  Bridgepoint is managed by LCRA (Region K Lower Colorado Regional Water Group) and they have a water conservation plan in place. LCRA has provided KWSC with their Water Conservation Plan. Since LCRA purchases treated water from KWSC to their subdivision at Bridgepoint, they fall under the same Water Conservation Plan as KWSC’s residential customers.

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   COORDINATION WITH THE REGIONAL WATER PLANNING GROUPS (RWPG)

   The water service area of  Kingsland Water Supply is within Region K Water Planning Area.  Kingsland Water Supply will provide a copy of the Water Conservation Plan to the RWPG’s.

   RESOLUTION

   A RESOLUTION OF THE BOARD OF DIRECTORS OF THE KINGLAND WATER SUPPLY CORPORATION ADOPTING THE ATTACHED DROUGHT CONTINGENCY PLAN.

   BE IT RESOLVED BY THE BOARD OF DIRECTORS:  that on this 31st day of May, 2006 we do hereby adopt the attached updated  Drought  Contingency Plan to be implemented by June 1, 2006.  Any violation of this plan may cause the forfeiture of Membership in the Corporation and/or termination of water service.  Water service termination penalties will only apply to violations of mandatory rationing imposed by the Corporation.

   ADOPTED THIS 31st day of May 2006, at a regular meeting of the Board of Directors at which a quorum was present.

   BOARD OF DIRECTORS

   President, Anita Aaron
   Sectetary/Treasurer,   C. J. Getschmann

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   DROUGHT CONTINGENCY PLAN
   DECLARATION OF POLICY, PURPOSE AND INTENT

   In order to conserve the available water supply and /or to protect the integrity of the water supply facilities, with particular regard for domestic water use, sanitation, and fire protection and to protect and preserve public health, welfare, and safety and minimize the adverse impacts of water supply shortages and other water supply emergency conditions, Kingsland Water Supply adopts the following Drought Contingency Plan.

   INFORMATION AND EDUCATION PROGRAM

     Once trigger conditions and emergency measures have been reached, the public will be informed of these conditions, and the measures to be taken.  The process for notifying the public includes:

   • Posting the Notice of Drought conditions at the Corporation’s office, Post Office and major businesses within the Area.
   • Announcement in the local newspapers.
   • Broadcasts from the local radio stations.
   • Direct mailing to customers explaining need for and provisions of the Drought Contingency Plan including steps to be taken to insure compliance with the plan.
   • Phone Calls directly to all those listed on our EMERGENCY CONTACT LIST. 

   WHOLESALE WATER CUSTOMER EDUCATION

   Wholesale water customer education will be provided through the same Education and Information Program provided to our residential customers.

   OORDINATION WITH REGIONAL WATER PLANNING GROUPS (RWPG)

   The water service area of Kingsland Water Supply is within Region K Water Planning Area.  Kingsland Water Supply will provide a copy of the Drought Contingency Plan to the RWPG’s.
    
   CONSENT

   At no time will this plan ever be used without consent of, or instructions from the Board of Directors.
   AUTHORIZATION

   The General Manager of Kingsland Water Supply, as approved by the Board of Directors, is authorized to implement the applicable provisions of this Drought Contingency Plan upon determination that implementation is necessary to protect public health, safety, and welfare.  The General Manager will have the authority to initiate or terminate drought or other water supply emergency response measures as described in this Drought Contingency Plan.

   APPLICATION

   The provisions of the Drought Contingency Plan will apply to all customers using water provided by Kingland Water Supply.  In addition, as a term of contract renewal with its wholesale customers, Kingsland Water Supply is requiring its wholesale customers to implement KWSC’s Drought Contingency Plan as well as create their own TCEQ approved water conservation and drought contingency plans.

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   TRIGGER CRITERIA FOR INITIATION AND TERMINATION OF DROUGHT RESPONSE STAGES

   The following trigger conditions indicate when drought contingency measures will be put into effect.  Trigger conditions will be set for mild, moderate and severe conditions.

   STAGE ONE -MILD DROUGHT
               Requirements for initiation

   • Average Daily Water use reaches 1.2 mgd (85% of firm plant capacity) for three consecutive days.

   Consideration will be given to weather conditions, time of year, and customer complaints of low water pressure.

   Requirements for termination
   Termination of the Drought measures will take place when the trigger conditions that initiated the drought measures have subsided, and an emergency situation no longer exists as determined by the General Manager.  The public will be informed of the termination of the drought measures in the same manner that they were informed of the initiation of the drought measures.
   
   STAGE TWO - MODERATE DROUGHT

   Requirements for Initiation                                                 

   • Average Daily Water use reaches firm plant capacity of 1.3 mgd for three consecutive days.
   • Net storage in water storage is continually decreasing on a daily basis and falls below 300,000 gallons (75% capacity) for 48 hours.
   • Water pressures reach 35 psi in the distribution system as measured by the pressure gauges in the system.

   Requirements for Termination
     Termination of the Drought measures will take place when the trigger conditions that initiated the drought measures have subsided, and an emergency situation no longer exists as determined by the General Manager.  The public will be informed of the termination of the drought measures in the same manner that they were informed of the initiation of the drought measures.

   
   STAGE THREE - SEVERE DROUGHRequirements for Initiaiton

   1. The imminent or actual failure of a major component of the system that would cause an immediate health or safety hazard.
   2. Water demand is exceeding the firm system capacity of 1.2 mgd for three consecutive days.
   3. The level of all available water supply (Llano River, arm of Lake LBJ and ground water from local wells owned and operated by KWSC ) is so low that the pumps  cannot pump the daily water demanded.
   4. All water is being pumped from the System’s storage reservoirs and all  replenishment of water reservoirs has stopped.

   NOTE:  All water system improvements have been completed in 1989 and  maintained. Firm water capacity at 1.4 mgd.

   
   Requirements for Termination

   Termination of the Drought measures will take place when the trigger conditions that initiated the drought measures have subsided, and an emergency situation no longer exists as determined by the General Manager.  The public will be informed of the termination of the drought measures in the same manner that they were informed of the initiation of the drought measures.

   STAGE FOUR – EMERGENCY WATER SHORTAGE CONDITIONS

   The System has in their Rules and Regulations a plan in which water can be partially or totally restricted, in the purview of the Board of Directors and the General Manager and as necessitated by the emergency.

   The failure of a major component of the pumps or a contamination of the water supply would have a significant impact on KWSC customers.  However, the supply restriction will tend to be of short duration in this situation.  In the event of an emergency condition, KWSC will notify its customers of the water supply emergency through the media and as delineated in the Information and Education Program section of our plan and make such operational changes it finds necessary while the emergency condition exists. Once the emergency condition has been cleared, customers will again be notified using the same venues as when the emergency situation began that the emergency has been cleared and the system is fully operational.

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   DROUGHT RESPONSE STAGES

   The General Manager will monitor water supply conditions in accordance with the trigger criteria set forth above, will determine that mild, moderate, or severe water shortage condition exists or that an emergency condition exists and will implement the following actions:

   STAGE 1 –MILD WATER SHORTAGE CONDITIONS

   Goal – Inform KWSC customers and the general public of the situation and encourage the wise use of water.
   Measures: The General Manager can restrict the use of water for outdoor sprinkling, watering of lawns, shrubs, driveways and the washing of automobiles.  Said restrictions will remain in effect until the General Manager lifts the restrictions.  More specifically stated shall be:

   • Inform the public through the news media that a trigger condition has been reached, and that they should look for ways to voluntarily reduce water use.  Specific steps that can be taken will be provided through the news media.
   • Notify major water users of the situation and request voluntary water use reductions.
   • The following mandatory lawn watering schedule shall be implemented:

               Residential watering shall occur only between the hours of 6 – 10 A.M. 
               Businesses shall water between the hours of  8 – 10 P.M. and none on the
               weekends. During winter months, request water users to insulate pipes rather than
               running water to prevent freezing.

   • Monitoring water pressure in the distribution system and water levels in the storage tanks.
   • Public will be advised of the status of the trigger conditions daily.
   • STAGE TWO – MODERATE WATER SHORTAGE CONDITIONS

   Goal – Achieve a voluntary 30 percent reduction in non-essential outdoor water use.
   Measures: The General Manager will ban the use of water totally for outdoor sprinkling, watering lawns, shrubs, driveways and  the washing automobiles.  Said restriction will remain in effect until the General Manager lifts the ban.  More specifically stated as follows:

   • Continue implementation of all relevant actions in preceding phase;
   • Car washing, window washing, pavement washing prohibited except when a bucket is used.
   • The following public water uses, not essential for public health or safety, are prohibited.

   1).  Street washing
   2).  Water hydrant flushing
   3).  Filling pools
   4).  Athletic field watering

   • Public will be advised of the status of the trigger conditions daily.
   • Water rates to be increased (See Violations)

   3. STAGES THREE & FOUR – SEVERE & EMERGENGY WATER SHORTAGE CONDITIONS
   Goal – Achieve a voluntary 90 percent reduction in non essential outdoor water use and a reduction of 30 percent in total water use.
   Measures: The General Manager’s giving notice of curtailment to the customers within the Area; the posting of a notice of curtailment and notifying the news media of curtailment and as stated in the Information and Education Program  section of this plan.

   • All outdoor water usage is prohibited;
   • Continue all relevant action in preceding stages.
   • Water uses that are not essential to the health and safety of the community will be prohibited.
   • Public will be advised of the status of the trigger conditions daily.
   • Water rates to be increased (See Violations)

   VIOLATIONS OF EMERGENCY RATIONING RULES

   The Board of Directors may grant exemptions or variance from the uniform rationing program, for health or safety reasons.

   The General Manager can amend, add or delete any of these Rules and Regulations when notified by the Board of Directors of said amendments, additions or deletions.

   Any violation of the Rules and Regulations adopted by the System can carry a penalty of forfeiture of membership and termination of water service, with approval of Directors.

   Stage I  - Warning – Rate remains the same.
   Stage II -  Warning – Rate increase – Shut Off and Reconnect Fee.
   Stage III – Rate increase, Shut Off and Reconnect Fee – Possible loss of service and membership.

   RATES

   Existing rates remain in effect during Stage I rationing period.
   Rate for Stage II – Rates remain the same up to average monthly usage.  All above this will be figured at $5.00 per thousand gallons.
   Rate for Stage III – Rates remain the same up to 80% of the average monthly usage.  All above this $5.00 but not over $10.00 per thousand gallons to be set by the Board of Directors depending on the conditions at that time.

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   PROVISIONS OF THE KINGSLAND WATER SUPPLY CORPORATION
   DROUGHT CONTINGENCY PLAN

   STAGE	TRIGGERING CRITERIA	ACTION/RESTRICTIONS
   1.  Mild	(A)  Average daily water use reaches 85% of firm plant capacity (1.2 mgd) for three consecutive days.  Consideration given to weather, time of year and customer complaints.	(1)  Initiate public information efforts. (2)  Request that the public look for ways to conserve water.
   2.  Moderate	Average daily water use reaches firm plant capacity (1.3 mgd) for three consecutive days; or Water storage levels decreasing and fall below 60% (200,000 gallons) for 24 hours; or Water pressure dorps to 35psi.	(1)  Continue stage 1 actions. (2)  Lawn irrigation limited to every other day between the hours of 6:00 AM to 10:00 AM and 8:00 PM to 10:00 PM. Request customers to voluntarily reduce water use. Monitor system pressure. $5.00 per thousand gallon over average monthly usage.
   3.  Severe	Water demand exceeds firm system capacity (1.4 mgd) for three consecutive days; or Supply reservoir levels reduced to a point were demand exceeds available supply; or Imminent or actual failure of system components affecting health and safety.	(1)Continue stage 1 and 2 actions. (2)Ban lawn irrigation water use. (3)Prohibit car washing, window washing, and   pavement washing except when a bucket is used. Ban nonessential public water uses. (5)$5.00 at least, but not over $10.00 per thousand gallons over average monthly usage.  This is set by the Board of Directors.

   INTRODUCTION

   The Kingsland Water Supply Corporation is a non-profit Corporation and is owned by its members.  As provided in the by-laws, the Board of Directors has the managing control and operation of the waterworks system.  The Directors must approve final budgets and rates.  The Directors are elected by the membership.

   The System serves an area of approximately seven to eight square miles in Llano and Burnet Counties known as the Kingsland area.

   Over the past several years, the area has experienced a high growth, and the System has been able to increase the capacity of supply and storage facilities.  In order to accommodate continuing growth and demand, the Corporation must insure that its users conserve this resource to the maximum amount achievable.

   It is the goal of the Corporation and the System to enact a plan to achieve a 1% reduction in gpcd, (per-capita water use, measured by gallons per person per day) upon implementation of this plan.  Achieving this goal would, in effect, increase the capacity of the water facilities.

   UTILITY EVALUATION

   A. Population of Service Area (Estimated)                                    5,000

   B. Size of Service Area                                                             7 to 8 square miles           

   Number of Residential Connections in Service Area                         2,800

   D. Rate of New Connections per Year                                          125

   E. Water Use Information

               (1) Water Production for Fiscal Year 2005                        221,344,940

               (2) Average Monthly Water Production 2005                       18,445,412

               (3) Gallons Sold per Month – Fiscal Year 2005

    

   October 2004	15,688,000
   November 2004	13,305,000
   December 2004	9,328,000
   January 2005	11,369,000
   February 2005	9,539,000
   March 2005	9,672,000
   April 2005	12,811,660
   May 2005	16,711,830
   June 2005	17,734,000
   July 2005	26,944,000
   August 2005	20,621,000
   September 2005	22,506,000

   
   

               (4) Peak Daily Use                                                         1,103,000 gpd

   F. Safe Annual Yield of Water Supply                                            365 MG

   G. Peak Daily Capacity of System                                                 1,800,000 gpd

   H. Major High Volume Customers                    Quantity (gal/year)
   • The Windchime                                           7,676,000
   • Hoover Construction                                    4,605,000
   • Kingsland Nursing Home                                2,987,000
   • Townepark                                                 2,893,000
   •  Packsaddle Elementary School                      2,640,000                                           

   J. Population and Water Use Projections

   Daily Avg.                    Daily Max.                   Meters
         Year                            mgd                              mgd                         Potential
   2005-2015                   0.5 to 1.2                           1.8                            4390 (with 4.1 rule exemption)

   • Percent of Connections in System Metered
   • Residential – 100%
   • Water Rate Structure

     Existing Rate Structure – Residential and Commercial
              
   $21.00 minimum monthly includes up to 1,000 gallons
               Next 14,000 gallons @ $2.50 per thousand gallons
               Next 10,000 gallons @ $3.50 per thousand gallons
               26,000 gallons and above is $4.75 per thousand gallons

   
   L. Annual Water Sales – Fiscal Year 2005                          $ 1,154,650.00

   M. Annual Revenue from Other Sources – Fiscal Year 2005   $     179,565.00

   Annual Cost of Operation – Fiscal Year 2005                      $ 1,194,084.00

   Applicable State, Federal or Other Regulations
   As a public water supply, the Corporation must abide by the rules of the following agencies:

   • Texas Water Development Board
   • Texas Department of Health
   • Texas Commission on Environmental Quality

   PUBLIC INVOLVEMENT

   Public at Large

   The corporation holds a regular board meeting each year to elect Directors as required by the by-laws, along with monthly meetings, which are open to the membership, and anyone is free to speak.  At the meeting, the directors hear the concerns of the members, which help their decision-making processes.