Sec. 34-1201. - Distribution mains.

(a)

In the event a recycled water customer desires the extension of distribution mains to provide the customer with recycled water service, the customer shall bear all costs of extending the distribution main from the transmission main to the customer's property line. The size of such distribution mains are to be determined by SAWS, in its discretion, based on the customer's expected recycled water purchases.

(b)

SAWS shall review and approve the location of all recycled water distribution mains, as well as the plans and specifications for recycled water distribution mains and associated improvements including without limitation, pumps, monitoring devices and storage facilities. All construction of distribution mains shall be performed by the customer or a contractor selected by the customer, provided, however, that the customer or contractor shall furnish a performance bond, executed by a corporate security authorized to do business in the state and maintaining an agent in Bexar County upon whom service of citation may be had. Such performance bond shall be in an amount equal to the total construction cost under the contract. The bond shall be in favor of SAWS and the customer and shall assure (1) completion of all construction required under the contract in full conformity with the plans and specifications approved by SAWS; (2) maintenance of such construction for a period of at least ninety (90) days after acceptance of construction by SAWS; and (3) payment in full by contractor of all subcontractors and materialmen providing labor and/or material in connection with the construction of the distribution main. All construction work on the distribution main shall be subject to inspection by city and SAWS officials and representatives. In no event shall any portion of any distribution main installed in an excavation be covered over unless and until it has been inspected and approved by SAWS.

(c)

Upon completion of construction of a recycled water distribution main and receipt of evidence acceptable to SAWS that all costs and fees for construction of the distribution main have been paid in full and all liens released, SAWS shall issue a written certificate of acceptance of the specific distribution main by SAWS, whereupon the distribution main covered by the acceptance certificate shall be the property of SAWS.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1202. - Distribution main oversizing.

SAWS may require that a distribution main being constructed by a recycled water customer be increased in diameter to a diameter larger than reasonably necessary to provide adequate recycled water service to a customer's property as a condition of approving the customer's plans and specifications for the distribution main. SAWS shall, upon completion of a distribution main constructed by a customer which meets SAWS' required sizing, reimburse the customer the reasonable incremental cost of the construction of the larger mains. The customer's responsibility for a share of the total cost of the oversized main will be limited to the greater of the scheduled charge for a six-inch main or prorated share of the total cost of the oversize main. Cost sharing for distribution mains shall be based on the following examples:

Example 1:

Prorated customer share of main cost:
848 / 3393 = 0.2499

0.2499 x $66,003.00 = $16,494.00

Customer pays cost of six-inch main or prorated cost of $16,494.00, whichever is greater.

Example 2:

Prorated customer share of main cost:
3393 / 5729 = 0.5922

0.5922 x $104,655.00 = $61,976.00

Customer pays prorated cost of $61,976.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1203. - Oversize distribution main—Construction.

Any distribution main construction by a customer which includes oversizing of a distribution main at the request of SAWS and for which oversizing the customer is to be reimbursed by SAWS shall be advertised for bids in the manner generally required for SAWS construction. All qualified bids submitted shall be publicly opened and let in the same manner as other SAWS construction contracts are bid and let. The construction contract shall be between the customer and contractor. Prior to commencement of the work under the contract for construction of an oversize distribution main, the contractor must have supplied SAWS with:

(1)

A copy of the fully-executed construction contract for the distribution main. The contract shall provide that SAWS is a beneficiary of the contract with rights to enforce such contract and that all warranties of the contractor under the contract also extend to SAWS once SAWS has accepted the distribution main. The contractor shall agree that SAWS may enforce any guaranty of contractor's work without joinder of the contractor;

(2)

An original executed copy of the payment and performance bond naming SAWS as an additional insured;

(3)

A sales tax certificate; and

(4)

Evidence that all insurance requested by SAWS is in place and where required evidence that SAWS is an additional insured. The minimum insurance requirements shall be the same as those required by SAWS from general contractors for a similar size project.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1204. - Same—Payment.

Any oversize reimbursement computed pursuant to section 34-1202 above shall be paid by SAWS to the customer who constructed and paid for the oversize distribution main, unless the customer and SAWS have previously agreed in writing to the payment of the oversize reimbursement in the manner set forth in section 34-1205 below. The payment shall be made within thirty (30) days of the final acceptance of the oversize distribution main by SAWS.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1205. - Same—Deferred reimbursement of costs by credit application.

SAWS and a customer may agree in writing at any time before SAWS' acceptance of oversize work by SAWS that the oversize reimbursement will be paid by SAWS to the customer by SAWS, allowing the customer to apply the oversize reimbursement on a dollar-for-dollar basis as a credit against twenty (20) percent of the customer's recycled water bill each month until the oversize reimbursement credits are fully utilized.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1206. - Same—Third party use.

If a customer wishes to connect to a distribution line oversized at SAWS' expense, then SAWS, as a condition of allowing the customer to acquire recycled water from the oversize distribution main, shall require the customer to pay SAWS a prorata share of the distribution main's oversize costs based on a ratio of available oversize flow capacity and the contracted monthly purchases or expected monthly purchases of the customer.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1207. - Same—Requirements for reimbursement.

In no event shall a customer be entitled to receive oversize distribution main credit reimbursements unless the customer has complied with all conditions and obligations of the customer's recycled water contract and all applicable laws. SAWS shall provide customers with the form of the certification required from the customer before SAWS will accept the oversize distribution main.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1208. - Distribution main constructed by SAWS.

SAWS may, at its discretion, construct distribution mains at its cost and expense where SAWS determines that such extensions are beneficial to the growth of the recycled water system and are practical in light of projected revenue, expected acquisition of Edwards Aquifer water withdrawal rights and/or impact of Edwards Aquifer water pumping reductions that will result from the availability of the distribution main. In said event, SAWS may charge recycled water customers their prorata share of the distribution main built at SAWS' expense. The customer's prorata share shall be based on the total capacity of the distribution main to the capacity to be used by the customer's system, but in no event less than the volume contracted for by the customer in relationship to the capacity of the main. If a customer oversizes its system for future expansion, the customer's share of the distribution main cost will be based on the projected volumes of recycled water to be purchased by the customer.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1209. - Where mains may be located.

All recycled water mains and other recycled water infrastructure which are owned by SAWS shall be constructed in or located:

(1)

On SAWS, city, county or state-owned property, including any public street or alley or any platted or publicly owned drainage facility;

(2)

Within the boundaries of any SAWS, city, county or state-owned creek or river bed; or

(3)

Within a platted or otherwise dedicated easement or right-of-way which has been granted to SAWS, the city, the county or the state and recorded in the real property records of the county in which the land is located.

(Ord. No. 87597, § 1, 3-26-98)

Sec. 34-1210. - Public property requirement.

Where SAWS, as part of its recycled water transportation and distribution system, requires pumps, treatment facilities, storage, testing sites or other facilities, all such facilities including all access roads to them, shall be located on public land or within an easement properly granted SAWS for such purpose as evidenced by a written instrument recorded in the real property records of the county in which it is located.

(Ord. No. 87597, § 1, 3-26-98)

Secs. 34-1211—34-1230. - Reserved.