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HomeMy WebLinkAbout20082189.tiff ANNUAL REPORT (Year Ending December 31, 2007) RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT (THE "DISTRICT") Pursuant to Section VII. of the Service Plan for the District approved July 19, 2004, the District hereby submits the following information and attachments. A. Changes in the District's taxing boundary or Service Area boundary. There were no changes in 2007. B. Intergovernmental Agreements The District entered into the following intergovernmental agreement with the Town of Keenesburg in 2007: Intergovernmental Agreement (06/22/07); sets forth the understanding that the District will conduct a feasibility study regarding the respective water supplies and wastewater treatment options and determine if there are operations, projects or opportunities for the parties that will reduce costs for their respective customers. C. Changes in the District's rules and regulations The District amended its Rules and Regulations in 2007. A copy of the Rules and Regulations, as amended April 11, 2007, is attached hereto. D. Summary of any litigation which involves the District The District was involved in the following litigation in 2007. Case No. 06CW256, Water Division No. 1, Application for Approval of Plan for Augmentation, Including Claims for Conditional Ground Water Rights, Storage Rights, Change of Water Rights and Appropriative Rights of Substitution and Exchange ("Augmentation Plan") Status: The case is still pending. Case No. 06CW061, Water Division No. 1, Application for Water Rights Status: A decree was entered in December 2006. Case No. 2006CW256, pertains to a plan for augmentation for the Pioneer Development. Pioneer Communities Inc. is a co-applicant in the case. Status: The case is still pending. Case No. 02CW403, pertains to FRICO cases Status: The case is still pending. Case No. 02CW404, pertains to FRICO cases Status: The case is still pending. SDLA Case No. 03CW442, pertains to FRICO cases Status: The case is still pending. 2008-2189 6 yL7 Q�- // ESOURCF.AAnnual Reports 2007 Annual Report-RESOURCG.DOC �� 1C E. Status of construction of improvements The District did not construct any improvements in 2007. F. Annual audited financial statements of the District or appropriate exemptions from Audit A copy of the Application for Exemption from Audit for the year ended December 31, 2007 is attached hereto. G. Summary of total debt authorized, issued and outstanding See attached summary. 00026002.DOC v:1) 2 RULES AND REGULATIONS OF THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT The Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District("District")hereby declares that the following Rules and Regulations have been prepared and adopted to provide for the construction, administration and operation of the District's public Water and Wastewater Systems (as defined herein). These Rules and Regulations, or any amendment thereto, shall be effective as of the effective date set forth below upon adoption of a resolution by a majority of the Board of Directors of the District at a public meeting approving these Rules and Regulations. The Board of Directors of the District hereby expressly reserves the right to make any lawful addition and/or revisions in these Rules and Regulations when and as they may become advisable to properly manage the District and to promote the peace, health, safety and welfare of the inhabitants of the Service Providers that will be served by the District. These Rules and Regulations are supplementary to, and are not to be construed as, any abridgement of any lawful rights of the Board of Directors of the District as outlined in the Colorado Revised Statutes governing Special Districts, including the right to disconnect or to refuse permission to connect any Service Provider to the District's Water or Wastewater System for violation of these Rules and Regulations or any other applicable law of the State of Colorado. RESOURCE COLORADO WATER AND SANITATION METROP DISTRICT By: Chris R. Paulson, President Attest: By: Sn2 .Name: T-'nrv�i 2.t'(Yc) Title: PSS'F,. Sons o c ADOPTED EFFECTIVE JULY 18,2005 LAST AMENDED EFFECTIVE APRIL 11, 2007 {00096389.DOC v:1} TABLE OF CONTENTS ARTICLE 1. GENERAL PROVISIONS 1 1.1 General 1 1.1.1 Authority 1 1.1.2 Scope 1 1.1.3 Policy 1 1.1.4 Purpose 1 1.1.5 Service Plan Limitations 1 1.1.6 Initial Service Area 1 1.1.7 Enterprises and Authorities 2 1.2 Construction of Rules and Regulations. 2 1.2.1 Intent of Construction 2 1.2.2 Incorporation of Decrees and Rules and Regulations by Other Governmental Entities: 2 1.2.3 Amendment 3 1.2.4 Conflict 3 1.2.5 Severability 3 1.2.6 Modification, Waiver and Suspension of Rules 3 1.2.7 Saving Provision 3 1.2.8 Repeal of Conflicting Resolutions 3 1.3 District Facilities 3 1.3.1 Ownership and Maintenance of District Facilities 3 1.3.2 Service Provider System Compliance with Design Standards 4 1.3.3 Encroachment of the District's Easements 4 1.3.4 Use of District's Easements 4 1.3.5 Non-District Water Wells Prohibited 4 1.4 Inspections 4 1.4.1 Powers and Authority of District 4 1.4.2 Construction Inspection 5 1.5 Protection of District Facilities 5 1.5.1 Compliance with Statutes and Regulations 5 1.5.2 Locate Information 5 1.6 Definitions. 5 1.6.1 Definitions for Water and Wastewater Systems 5 ARTICLE 2. REQUIREMENTS FOR ACQUIRING WATER OR WASTEWATER SERVICE FROM THE DISTRICT 13 2.1 Water or Wastewater Service. 13 2.1.1 Policy 13 2.1.2 No Obligation of Service 13 2.1.3 Revocation of Service 13 2.1.4 Covenants 13 2.1.5 Contracts and Agreements. 13 2.1.6 Denial of Service 14 2.1.7 Application for System Review 14 Other Conditions for Service 15 {00096389.DOC v:1} i 2.1.9 District16 2.1.10 Procedural Requirements for Acquiring Water or Wastewater Service: 17 2.2 Fees, Rates and Service Charges. 17 2.2.1 Policy. 17 2.2.2 Payment of Fees 17 2.2.3 Schedule and Types of Fees, Rates and Service Charges: 17 2.2.4 Billing Procedures for Service Charges 18 ARTICLE 3. WATER SERVICE 19 3.1 Principles for Supplying Water Resources to Public Water Service Providers 19 3.1.1 Policy Regarding Use of District Water System 19 3.1.2 Water Policy 19 3.1.3 Scope of District Water Supply 19 3.1.4 Ownership of Water and Return Flows 19 3.1.5 Consent to Groundwater Appropriation 19 3.2 District Water System and Service Provider Systems 20 3.2.1 Ownership and Maintenance of Service Provider Water Service Facilities and Lines 20 3.2.2 Ownership and Maintenance of Master Water Meters and Related District Facilities: 20 3.2.3 Non-Potable Irrigation System 20 3.3 Protection of District Water Supply. 20 3.3.1 Limitations to Protect District Water Supply 20 3.3.2 Additional Provisions 21 3.3.3 Enforcement 21 3.3.4 Prohibitions 21 3.3.5 Violations 21 ARTICLE 4. WATER CONSERVATION 21 4.1 Compliance with State Laws 21 4.2 Development and Implementation of Water Conservation Programs 21 4.2.1 Leak Detection 21 ARTICLE 5. WATER QUALITY 22 5.1 Monitoring Water Quality 22 5.2 Commingling of Water Supplies 22 5.2.1 Standards 22 ARTICLE 6. PROVISIONS FOR WASTEWATER SERVICE 22 6.1 General 22 6.1.1 Policy 22 6.1.2 Service Area 22 6.1.3 Request for Approval from an Existing Service Provider 22 6.1.4 Request for Approval from a New Service Provider 23 6.1.5 Service Area Information 24 6.1.6 Approval Procedures 24 6.1.7 Post-treatment Waters 24 {00096389.DOC v:1} 11 6.1.8 Prohibited Wastes 24 6.1.9 General Prohibition 24 6.1.10 Construction Modifications to Limit Harmful Waste 25 6.1.11 Lateral Size 25 6.1.12 Maintenance of Laterals 25 ARTICLE 7. LIMITATIONS ON DISCHARGE 25 7.1 Limitations On Discharged Wastes/Prohibited Wastes 25 7.1.1 Standards for Water or Wastewater Discharge into the District's Wastewater System 25 7.1.2 Construction Modifications to Limit the Discharge of Harmful Wastes into the District Facilities, Grease Interceptors/Traps and Sand/Oil Interceptors/Traps 26 7.1.3 Review of Plans for the Construction and Installation of Pretreatment Facilities: 26 7.1.4 Sampling Manholes 26 7.1.5 Interceptor/Trap Maintenance: 26 7.1.6 Interceptor/Trap Requirements for Existing Property/District Facilities 26 7.1.7 Construction Modifications to Limit Harmful Wastes, Wash Racks/Floor Slabs 27 ARTICLE 8. PRETREATMENT REQUIREMENTS 27 8.1 General 27 8.1.1 Authority 27 8.1.2 Compliance 27 8.2 Applicability. 28 8.3 Compliance With Requirements 28 8.4 Legal Authority Requirements. 28 8.5 Program Procedure Requirements. 28 8.5.1 Industrial Waste Survey 28 8.6 Extra-Jurisdictional Industrial Users. 28 8.7 Exemptions. 28 8.8 Program Review. 29 8.9 Remedies 29 8.9.1 Emergency Remedies 29 8.9.2 Routine Remedies 29 8.10 Program Preemption. 29 8.11 Program Delegation 29 8.12 District Monitoring. 29 8.13 General Requirements Regarding Deleterious Wastes 30 8.14 Prohibited Discharges 31 8.15 Specific Discharge Limitations—Service Providers. 33 8.16 Applicability. 34 8.17 General Discharge Prohibitions 34 8.18 Specific Discharge Limitations—Users. 34 8.18.1 District Limitations 34 8.18.2 National Categorical Pretreatment Standards 35 {00096389.DOC v:1) 111 8.18.3 State Requirements 35 8.18.4 Dilution Prohibited 35 8.19 Insignificant Discharges. 35 8.20 Accidental Or Unusual Discharges 35 8.20.1 Accidental Discharge Protection 35 8.20.2 Notification Requirements: 35 8.20.3 Slug Discharge Plan Requirements 36 8.21 8.21 Hazardous Waste Discharge Notification 36 8.22 Wastewater Contribution Permits 36 8.23 Reporting Requirements For Significant Industrial Users 36 8.24 Monitoring District Facilities. 36 8.25 Information Submittal, Inspection and Sampling 37 8.26 Wastewater Treatment 37 8.27 Confidential Information. 37 8.28 Remedies For Noncompliance; Enforcement 38 8.28.1 Notice of Violation 38 8.28.2 Administrative Orders 38 8.28.3 Compliance Orders; Compliance Schedules 38 8.28.4 Suspension of Service 39 8.28.5 Permit Revocation 39 8.28.6 Penalties 39 8.28.7 Legal Action 40 8.28.8 Appeal and Hearing Procedure 40 8.29 Charges and Fees. 40 ARTICLE 9. CROSS-CONNECTION CONTROL AND BACKFLOW CONTROL POLICY AND REGULATIONS 40 9.1 General 40 9.1.1 Policy 40 9.1.2 Responsibility 40 9.1.3 Service Provider Requirements 41 9.1.4 Every Service Provider shall adopt policies and regulations for cross- connection control and backflow control sufficient to: 41 ARTICLE 10. MISCELLANEOUS 41 10.1 Liability: 41 10.1.1 District Not Liable 41 10.1.2 District Not Responsible for Damages 42 10.1.3 Officials Not Liable 42 10.1.4 Non-Liability for Work of Others 42 10.1.5 Indemnity 42 10.1.6 Non-Waiver 42 10.1.7 Notices and Written Submissions 42 ARTICLE 11. PROVISIONS REGARDING MOSQUITO CONTROL SERVICES 43 ARTICLE 12. PROVISIONS REGARDING STREET IMPROVEMENTS 43 {00096389.DOC v:1} ry ARTICLE 13. PROVISIONS REGARDING EMPLOYEE AND PERSONNEL MATTERS ...43 PRE-CAST CONCRETE INTERCEPTORS 6 MANHOLE RINGS AND COVERS 6 PRE-CAST CONCRETE INTERCEPTORS 12 MANHOLE RINGS AND COVERS 12 {00096389.DOC v:1} V EXHIBITS EXHIBIT A Schedule of Fees, Rates and Charges [Reserved] EXHIBIT B Connector Agreement for Wastewater Service [Reserved] EXHIBIT C Pretreatment Discharge Standard to Limit the Discharge of Harmful Wastes into the District's Facilities EXHIBIT D District Design Standards and Standards and Requirements for Service Providers [Reserved] EXHIBIT E Standards for Cross-Connection Control and Backflow Control Policy and Regulations (000963 89.DOC v:I} VI ARTICLE 1. GENERAL PROVISIONS 1.1 General. 1.1.1 Authority: These Rules and Regulations are adopted in accordance with the authority conferred in Title 32,Article 1, and other provisions of the Colorado Revised Statutes, by the Resource Colorado Water and Sanitation Metropolitan District Board of Directors. The District is a political subdivision of the State of Colorado and a quasi-municipal corporation with all the powers thereof which are specifically granted to the District, or are necessary or incidental to or implied from powers specifically granted by statute, constitution or other law, for carrying out the objectives and purposes of the District. 1.1.2 Scope: These Rules and Regulations have been adopted and promulgated pursuant to C.R.S. §32-1-1001(1)(m) and shall be considered a comprehensive set of Rules and Regulations governing the operations and functions of the District as of the effective date stated herein. The District has the authority to implement the Rules and Regulations provided herein by policies and resolutions. The Board reserves the right to make rulings and adopt resolutions concerning matters not covered herein as and when appropriate in the opinion of the Board. 1.1.3 Policy.: It is hereby declared that the Rules and Regulations hereinafter set forth will serve a public use and are necessary to insure and protect the health, safety, prosperity, security, and general welfare of the service users of the District. 1.1.4 Purpose: The purpose of these Rules and Regulations is to provide for the orderly financing, control,management and operation of the Water and Wastewater Systems of the District, including additions, extensions and connections thereto, and to provide for the administration and enforcement of standards to promote the health, safety and general welfare of Customers of Service Providers or other service users of the District. Provision of water and sanitation services by the District will be available only in accordance with these Rules and Regulations. 1.1.5 Service Plan Limitations: The District's Service Plan prohibits the District from providing water or wastewater service directly to individual customers without amending the District's Service Plan. The District is empowered by C.R.S. §32-1-1001(1)(d)(I) and by Colorado law to enter into contracts and agreements affecting the affairs of the District. The District intends to enter into Agreements with water and wastewater Service Providers for the provision of water or wastewater services as set forth in these Rules and Regulations. Such Agreements may require Service Providers to satisfy certain other conditions prior to obtaining service from the District. The District's provision of water and/or wastewater services to Service Providers is contingent upon the District having an adequate Water Supply and that the District Facilities are adequate. Because of these limitations, the District cannot guarantee that it will be able to provide water and sanitation service to Service Providers or properties even if they are within the District's Service Area. 1.1.6 Initial Service Area: The initial Service Area consists of underserved areas within Adams and Weld County including the Cities of Brighton or Commerce City or {00096389.DOC v.1). other Service Providers. The District, through Agreements, will supply water or provide wastewater services to Service Providers for service to their Customers through their systems. The Service Area may be expanded to serve other properties, through Agreements with Service Providers, as demand for service and resources to provide such services are available. 1.1.7 Enterprises and Authorities: The provision of water, sanitation and storm drainage services for the use and benefit of Service Providers shall be through the creation of enterprises and/or authorities which will be authorized to collect rates, fees, tolls and charges for connection to and use of the District Facilities and the provision of service. Such service shall be subject to any capacity limitations and provisions for the operation,maintenance,repair and replacement of all District Facilities owned by the District, in accordance with these Rules and Regulations. 1.2 Construction of Rules and Regulations. 1.2.1 Intent of Construction: It is intended that these Rules and Regulations shall be liberally construed to affect the general purposes set forth herein, and that each and every part thereof is separate and distinct from all other parts. No omission or additional material set forth in these Rules and Regulations shall be construed as an alteration, waiver, or deviation from any grant of power, duty or responsibility, limitation or restriction, imposed or conferred upon the Board by virtue of statutes now existing or subsequently amended or adopted, or under any Agreement existing between the District and any other private or governmental entity or Service Provider. Nothing contained herein shall be so construed as to prejudice or affect the right of the District to secure the full benefit and protection of any law which is now enacted or may subsequently be enacted by the Colorado General Assembly pertaining to the governmental or proprietary affairs of the District. 1.2.2 Incorporation of Decrees and Rules and Regulations by Other Governmental Entities: (a) General: Any limitations, restrictions or prohibitions validly placed upon the District or the water rights comprising the District's Water Supply by any governmental entity or by any Agreement to which the District is a party, are hereby incorporated into these Rules and Regulations by this reference and shall constitute a limitation, restriction and/or prohibition on the District's ability to provide service to Service Providers and on each Service Provider that shall contract with the District for the supply of water or wastewater service. (b) Water: The provision of water service by the District may be governed by and subject to court decrees, stipulations, or other court orders or decrees, including any subsequent court orders concerning the water to be supplied through service or delivery agreements by the District to Service Providers. The District acknowledges that water sources also may be limited by all applicable laws,rules and regulations governing the withdrawal of groundwater, including but not limited to,the Ground Water Management Act, §37-90-101 et seq. the Rules and Regulations for the Management and Control of Designated Ground Water, 2 C.C.R. 410-1, and the Regulations for the Use, Control and Conservation of Ground Water (00096389.DOC v:1) 2 Within the Lost Creek Ground Water Management District, laws and regulations governing water quality, and all other applicable laws and regulations, as now or hereafter constituted. 1.2.3 Amendment: It is specifically acknowledged that the District shall retain the power to amend these Rules and Regulations as it deems appropriate and such amendments shall be entered in the Minutes of the District and periodically incorporated in printed copies of these Rules and Regulations. Prior notice of these amendments shall not be required to be provided by the District exercising its amendment powers pursuant to this Article. 1.2.4 Conflict: In the event of a conflict between these Rules and Regulations and specific terms or conditions of any Agreement entered into between the District and any party, these Rules and Regulations shall control. 1.2.5 Severability: If any provision of these Rules and Regulations, or its application to any person or circumstances is held invalid,the application of such provision to other persons or circumstances, and the validity, enforceability or legality of the remainder of these Rules and Regulations, shall not be affected thereby. 1.2.6 Modification, Waiver and Suspension of Rules: The Board of Directors or the District Manager, acting on prior written instructions of the Board, shall have the sole authority to waive, suspend or modify the application of these Rules and Regulations, and any such waiver, suspension or modification must be in writing, signed by the Board or the District Manager and shall not be deemed an amendment of the Rules and Regulations. No waiver, suspension or modification on any one occasion shall constitute a waiver, suspension or modification on any subsequent or other occasion. 1.2.7 Saving Provision: The enactment of these Rules and Regulations, any amendment thereof, or the repeal of any prior existing Rules and Regulations or resolutions shall not deny or limit any right, action, cause of action,penalty charge or fee which arose under such provision. 1.2.8 Repeal of Conflicting Resolutions: All resolutions or parts of resolutions in conflict herewith as of the effective date hereof, are hereby repealed, except as may be expressly provided herein. 1.3 District Facilities. 1.3.1 Ownership and Maintenance of District Facilities: Except as otherwise provided in these Rules and Regulations,it is the policy of the District that all District Facilities forming an integral part of the District's Water and Wastewater Systems are the property of the District upon acceptance by the District regardless of whether such Facilities are constructed, financed, or paid for by the District or by other Persons. The District shall be responsible for maintenance,repair and reconstruction of such Facilities and all appurtenances thereto, at the cost of the District,unless the District Facility is under warranty in which case the warranty provisions shall apply to the fullest extent provided by law. No other Persons, except those authorized by the District, shall have any right to enter upon, inspect, operate, adjust, change, alter,move or relocate any portion of the District Facilities. {00096389.DOC v:1} 3 i r 1.3.2 Service Provider System Compliance with Design Standards: [Reserved]. 1.3.3 Encroachment of the District's Easements: No Person, including but not limited to, Service Providers with whom the District has a Contract shall construct any temporary or permanent building or other similar structure, place any fill material on, or otherwise encroach upon any of the District's easements. 1.3.4 Use of District's Easements: A Service Provider,property owner, developer or contractor may request permission from the District to share or use the District's easements for the installation of drains,pipelines or other facilities necessary to utilize the District Facilities. The District's determination to allow a Service Provider,property owner, developer or contractor to share or use the District's easements shall be made in the sole discretion of the District. Any such approval shall be in the form of a written agreement,which shall set forth fully the terms of the agreement, specifically including, but not limited to,the terms set forth below: (a) Any such agreement shall be subject to Board approval after a public meeting therefore. (b) The property owner, developer or contractor shall, at all times, have the obligation, enforceable at the demand of the District, to construct, operate, maintain, repair and replace any non-District owned facilities as may be desirable from time-to-time. (c) The Service Provider, developer or contractor shall agree to indemnify and save the District, its officers, directors, agents and employees harmless from and against every claim, demand, liability, cost, charge, suit,judgment and expense of whatsoever kind or nature, including,but not limited to, interest, court costs and attorneys fees which the District, its officers, directors, agents or employees may pay or incur by reason of or which in any way arise out of the sharing or using of the District's easements by the property owner, developer or contractor. Said indemnification shall extend to claims, demands and liability or injury to persons and property and financial loss which incur off the job site as well as on, and for injury and damage to person and property and financial loss occurring after construction and installation of the non-District owned facilities within the District's easements by the property owner, contractor or developer. 1.3.5 Non-District Water Wells Prohibited: In an effort to coordinate the provision of water services as contemplated in the District's Service Plan, only those wells forming part of the District's Water Supply may connect to the District's Water System. Service Providers that have a Service Agreement with the District shall not act to impair the District's water rights or water quality. The District is not responsible for the augmentation of any wells within the District's Service Area other than those owned by the District, except by separate Agreement. 1.4 Inspections. 1.4.1 Powers and Authority of District: The District Manager or representative or their designee bearing proper credentials and identification shall be permitted to enter all property of the Service Provider necessary for the purposes of reading meters,testing related to {00096389.DOC v:1) 4 discharge(s)to the Water or Wastewater Systems, inspection, observation,measurement, sampling,repair,maintenance of any portion of the District Facilities lying within said properties and related matters, upon reasonable notice to the Service Provider, except in the case of an emergency in which case prior notice is not required. 1.4.2 Construction Inspection: The District Manager,representative or their designee shall have the right to inspect any and all work during construction of any Service Provider facilities necessary to receive water or wastewater service from the District, to ensure installation in accordance with District standards. After completion of construction the District Manager and/or his representative shall make a final inspection of construction prior to commencement of service. 1.5 Protection of District Facilities. 1.5.1 Compliance with Statutes and Regulations: For all projects that require digging,boring, directional drilling or excavation in or around District Facilities,the person, contractor or excavator wishing to dig or excavate around said District Facilities shall comply with all applicable statutes and regulations of the State of Colorado. 1.5.2 Locate Information: For projects that require digging, boring, directional drilling or excavation around District Water System facilities, a contractor or excavator must provide location information to the District and must comply with all other District requirements for notification and processing prior to commencing any digging, boring, directional drilling or excavation. 1.6 Definitions. 1.6.1 Definitions for Water and Wastewater Systems: Unless the context specifically indicates otherwise,the meaning of the terms used herein shall be applicable to these Rules and Regulations. (a) Agreement or Agreements: Any Board approved Water Delivery Agreement, Water Resource Agreement, Connector Agreement and/or any other contract or agreement necessary to the provision of water or wastewater service to Service Providers, together or referred to separately herein. (b) Annual Charges or Annual Charges for Service: The sums paid or becoming payable to the District pursuant to a Connectors Agreement and pursuant to any agreement supplemental thereto. (c) Applicant: The Service Provider entering into a contract with the District for new or additional water or sanitation service. (d) Application Fee: The fee charged by the District that is intended to cover the Costs incurred by the District in evaluating a Water Delivery Agreement or Connector Agreement. (00096389.DOC v:11 5 (e) Board or Board of Directors: The duly elected Board of Directors of the District, which acts as the governing body of the District. (f) BODE (5-Day Biochemical Oxygen Demand): The quantity of dissolved oxygen, expressed in parts per million by weight, required by aerobic biological action under standard laboratory procedure in five days at 20 C. (g) Capital Improvement Plans: Shall refer to the District's Water or Wastewater Facilities Capital Improvements Plans. (h) Categorical Standards or National Categorical Pretreatment Standards or Pretreatment Standards: Any regulation containing pollutant discharge limits promulgated by the EPA in accordance with Articles 307(b) and(c) of the Clean Water Act (33 U.S.C. §1317 et seq.)which applies to a specific category of Industrial Users. (i) Clean Water Act: The Federal Water Pollution Control Act, as amended, 33 U.S.C. §1251, et seq. (j) Connector Agreement: A contract between the District and a Service Provider for the District to provide wastewater services to a Service Provider in accordance with these Rules and Regulations. (k) Cost(s): All direct costs applicable to the construction, reconstruction, enlargement or dedication of a given District Facility, including but not limited to, costs associated with planning, design,preliminary and design engineering, construction, inspection, administration, acquisition, or dedication of District Facilities, acquisition of all required rights-of-way, acquisition of water rights, depreciation, attorney fees, regulatory agency fees,plan approval fees, "as built" drawings, and all other fees and/or costs necessary to provide new, different or additional water or wastewater service. (1) Customer: Any person, company, corporation, public entity or authority, developer, property owner, lessee,tenant or occupant of such property owner, or visitor of any of the foregoing, who is supplied with or uses water or sanitation service furnished by any Service Provider. (m) Deleterious Wastes: Any wastes contained in sewage that would be harmful to the District's Sewer System, or which, without pretreatment, would violate federal, state or local pretreatment standards. (n) Design and Construction Standards and Specifications for Water and Wastewater Facilities ("Design Standards"): District document that establishes the minimum standards for the design and construction of all Facilities of the District. (o) District: The Resource Colorado Water and Sanitation Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado. •{00096389.DOC v:1) 6 (p) District Engineer: The person or firm appointed by the Board and employed by or contracted with to do engineering work for the District. (q) District Facility or Facilities: All components of the District's Water and Wastewater Systems however acquired by the District and constructed. The District Facilities shall also include all land, easements,permits or other interests in real property, and all operational permits and licenses and all roadways or access facilities and all improvements necessary to the operation of the District Facilities and to carry out the purposes of the District. (r) District Manager: The person or firm retained by the Board to administer and supervise the affairs of the District and its employees, including, but not limited to, enforcement of the District's Rules and Regulations, and who may, among other things, operate,inspect and approve all connections, excavations, extensions, installations, District Facilities owned,to be dedicated to, or under the control of the District. (s) District Water Supply: All non-potable water,potable water, first use or reuse water,return flows, banked water credits,banked return flow credits, tributary, not non-tributary, non-tributary and designated basin water rights and groundwater rights owned by or which is made available by dedication, lease, contract or Agreement to the District for provision of service to Service Providers pursuant to the terms of an Agreement. (t) ERU(Equivalent Residential Unit): An approximate measure of the level of service necessary to serve a single-family dwelling, which is used to calculate the cost of connection fees and service charges pursuant to an Agreement. (u) Extension: A water transmission main or wastewater interceptor sewer required in order for the District to provide service to Service Providers according to the terms and conditions set forth herein. (v) Extension Agreement: An Agreement executed by the District and a Service Provider providing for the installation of an extension by the District pursuant to which the cost of such extension is paid by the Service District to the District. (w) Inspector: The person,persons or firm duly authorized by the Board to inspect,monitor and approve the installation, connection, and operation of the District Facilities and to periodically monitor and inspect the operations of such District Facilities. (x) Industrial User: Any non-domestic source discharging pollutants into the District's Wastewater Facilities. (y) Industrial Wastes: The liquid wastes from industrial processes, trade or business, as distinct from sanitary sewage. (z) Interceptor: Any one of the intercepting sewers, outfalls, or force mains that is part of the Wastewater Collection System. (aa) Interference: A discharge which, alone or in conjunction with a discharge or discharges from other sources,both: {00096389.DOC v:1} 7 1) Inhibits or disrupts the District's treatment processes or operations, or its sludge processes, use or disposal; and 2) Therefore is a cause of a violation of any requirement of the District's NPDES Permit(s) (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with the following statutory provisions and regulations or permits issued thereunder(or more stringent state or local regulations): Article 405 of the Clean Water Act,the Solid Waste Disposal Act(SWDA) (including Title II, more commonly referred to as the Resource Conservation and Recovery Act (RCRA), and including state regulations contained in any state sludge management plan prepared pursuant to Subtitle D of the SWDA), the Clean Air Act,the Toxic Substances Control Act, and the Marine Protection, Research, and Sanctuaries Act. (bb) Main Line: Water or sewer pipe used for the purpose of conveying water to a Water Connection Point or conveying Wastewater from a Wastewater Connection Point that is part of the District Facilities. (cc) Master Water Meter: Measuring device used to determine the amount of water supplied to a Service Provider at a Water Connection Point. (dd) MG: Million gallons. (ee) National Pollutant Discharge Elimination System or NPDES Permit: A permit issued pursuant to Article 402 of the Clean Water Act(33 U.S.C. 1342). (ff) Permit: Written permission of the Board given pursuant to these Rules and Regulations, subject to the specific terms and conditions contained therein. (gg) Person: Any individual,partnership, co-partnership, firm, company, corporation, association,unincorporated association,joint stock company,trust, estate, governmental entity, or any other legal entity, or their legal representatives, agents or assigns, or two or more such persons acting jointly as a firm,partnership, unincorporated association,joint adventurers or otherwise. (hh) pH: The logarithm (base 10)of the reciprocal of the concentration of hydrogen ions expressed in moles per liter of solution. (ii) Pollutant: Any dredged spoil, solid waste, incinerator residue, sewage, garbage, sewage sludge, munitions, chemical wastes,biological materials,radioactive materials,heat, wrecked or discharged equipment, rock, sand, cellar dirt, and industrial, municipal, and agricultural waste discharged into water. (jj) Pollution- Hazard Activity: Means any of the following activities: 1) Drilling operations. 2) Surface and subsurface mining operations. {00096389.DOC v:I} 8 3) The storage and application of pesticides/herbicides and/or insecticides in any manner, except for private residential or business use. 4) The storage and application of fertilizers in any manner, except for private residential or business use. 5) Using,handling, storing, dispensing or transporting toxic or hazardous substances, including, but not limited to radioactive materials. 6) Using,handling, storing, dispensing or transporting flammable or explosive materials, including petroleum products, except for storage of not more than 25 gallons of petroleum products in a private home or business and except for fuel in vehicular fuel tanks. 7) Using, handling, storing, dispensing or transporting organic nutrients, including phosphorus and nitrates, or engaging in any activity that creates the same. 8) Any solid or liquid waste disposal. 9) Any activity that is conducted in a manner that creates a foreseeable risk of pollution to the District Water Supply or damage to the District's Facilities. (kk) Pretreatment or Treatment: The reduction of the amount of Pollutants, the elimination of Pollutants, or the alteration of the nature of Pollutant properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such Pollutants into a POTW. The reduction or alteration can be obtained by physical, chemical, or biological processes, or by other means, except as prohibited by 40 CFR§403.6(d). (11) Pretreatment Facilities: Structures, devices, equipment or processes for the purpose of reducing or removing the deleterious wastes from Wastewater or altering the nature of deleterious wastes prior to discharging such sewage into the District's Wastewater Collection System. (mm) Pretreatment Requirement: Any substantive or procedural requirement related to pretreatment, other than a National Pre-treatment Standard imposed on an Industrial User. (nn) Properly Shredded Garbage: Garbage that has been shredded to such a degree that all particles will be carried freely under the flow conditions normally prevailing in public sewers with no particle greater than 1/2" in any dimension. (oo) Property Owner or Owner: The person or persons who hold title to a parcel of land as shown on the property tax assessment roll in the office of the applicable County Assessor. (pp) Publicly Owned Treatment Works ("POTW"): A treatment work as defined by Article 212 of the Clean Water Act(33 U.S.C. §1292),which is owned in this instance by the District. This defmition includes any devices and systems used in the storage, {00096389.DOC v:I} 9 treatment,recycling and reclamation of Sewage or industrial wastes of a liquid nature. It also includes sewers,pipes and other conveyances only if they convey wastewater to the POTW treatment plant. "POTW"also refers to the District officials responsible for operations and maintenance of the collection system or treatment plant and the administration of the pretreatment program. (qq) SDWA: The Safe Drinking Water Act of 1974, as amended,42 U.S.C. §300 j -9(i). (n) Service Area: A planning term,which refers to all areas currently being served or proposed or planned to be served pursuant to the District's Service Plan approved on August 25, 2004 by the County Commissioners of Weld County, Colorado, as amended from time to time. However, any reference to the District Service Area or proposed Service Area does not mean that the District is capable or that property within the Service Area is entitled to service. (ss) Service Provider(s): Municipalities, counties, authorities, special districts (including Metropolitan Districts and Water and Sanitation Districts),water companies and ditch companies, as well as state and local entities who will contract with the District for water and/or wastewater services and for the provision of wastewater service, and may also include private entities, and who will in turn distribute the water, collect Sewage and otherwise service and bill the individual Customers, including residential, commercial, and/or Industrial Users. (tt) Sewage or Wastewater: A combination of liquid wastes originating from any residential, commercial, or industrial building or other establishment, which may include household wastes, human excreta, animal or vegetable matter, organic or inorganic material in suspension or solution, and other solids in suspension or solution which enter the POTW. (uu) Sewer or Wastewater Main Line: Any pipe, system of piping and appurtenances used as a conduit for Sewage in the District's Wastewater Collection System and owned by the District. (vv) Sewer or Wastewater Service Line: Any pipe, system of piping, tap, line and appurtenances including lift stations,pumping stations and collection lines, used as a conduit for Sewage from the Wastewater Connection Point to the District's POTW. (ww) Significant Industrial User: 1) Any Industrial User subject to categorical pretreatment standards under 40 CFR §403.6 and 40 CFR Chapter 1, Subchapter N; 2) Any Industrial User designated as such by the District on the basis that the Industrial User has a reasonable potential for adversely affecting District operations or for violating any pretreatment standards or requirement; {00096389.DOC v:1} 10 3) Any Industrial User discharging an average 25,000 gallons per day or more of process wastewater to the sanitary sewer system (excluding sanitary,non- contact cooling, and boiler blow down wastewater); and 4) Any Industrial User discharging a process waste stream which makes up five percent(5%) or more of the average dry weather hydraulic or organic capacity of the District's Wastewater Treatment Works. Upon a finding that an Industrial User meeting the criteria in paragraphs (b), (c), or(d) above has no reasonably potential for adversely affecting the District's operation or for violating any Pretreatment Standard or requirement, the District may at any time, on its own initiative or in response to a petition received from a Service Provider or Industrial User, determine that such Industrial User is not a Significant Industrial User. (xx) Slug Discharge: Any discharge of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch discharge. (yy) Suspended Solids: Solids, expressed in parts per million by weight, that either float on the surface of or are in suspension in the water, sewage or other liquids, which are removable by filtration. (zz) Testing: In the context of water or sewage, the analysis of water or sewage samples for composition, and other characteristics; in the context of construction or connection of Water or Wastewater System facilities,the inspection and trial operation of the construction or connection of Water or Wastewater System facilities. (aaa) Total Kjeldahl Nitrogen(TKN): The sum, expressed in parts per million(ppm) or milligrams per liter(mg/L), of free-ammonia nitrogen and organic nitrogen compounds which are converted to ammonia under digestion conditions specified by the Kjeldahl Nitrogen Test Method. (bbb) Toxic Pollutant: But not limited to, any pollutant or combination of pollutants listed as toxic in regulations promulgated by the administrator of the Environmental Protection Agency under the provisions of Article 307(a) of the Clean Water Act or other acts. (ccc) Upset: An exceptional incident in which there is unintentional and temporary noncompliance with permit effluent limitations because of factors beyond the reasonable control of the District which result in flows or solid materials exiting the District's Wastewater System into state waters and which may cause or threaten pollution of state waters. (ddd) Wastewater Collection System: All structures, facilities, and equipment owned and used by the District for collecting,pumping and transporting Wastewater within the District's Wastewater System from the Wastewater Connection Point to the District's Wastewater Treatment Works, including but not limited to metering facilities, Interceptor sewers,manholes and lift stations. {00096389.DOC v:1) 11 (eee) Wastewater Connection Point: The point at which the Service Provider's sewer service lines or system connects to the District's Wastewater System for a permanent or temporary purpose. (fff) Wastewater System: All components of the District's Wastewater Collection System and Wastewater Treatment Works. (ggg) Wastewater Treatment Works: All structures, facilities, and equipment owned and used by the District for treating Wastewater prior to discharge or disposal, including but not limited to the headworks facilities,treatment basins, disinfection processes and effluent outfall, as well as solids handling facilities. (hhh) Water Connection Point: The point at which the Service Provider's water service system connects to the District Water System for a permanent or temporary purpose. (iii) Water Delivery Agreement: A contract for the delivery of all or a portion of the District's Water through the District's Water Distribution System to the Service Provider and may establish other contractual obligations as conditions for the provision of water service to the Service Provider for delivery by the Service Provider to its Customers. (jjj) Water Distribution System: All structures, facilities and equipment owned and used by the District for storing,boosting,transporting to the Water Connection Point, and measuring the District's Water Supply, including but not limited to tanks, booster pump stations, distribution piping and metering facilities. (kkk) Water Lease: An agreement with a Service Provider to lease District water or water rights subject to limitations for delivery of water so as not to impair existing Water Delivery Agreements and terms sufficient to secure payment for the Costs of delivering such water. (Ill) Water Resources Agreement: Agreement between an owner of a water right and a Service Provider seeking to acquire water service from the District,which provides the Service Provider with water resources to serve all or a portion of the property within the Service Provider's service area and may establish other contractual obligations as conditions on the provision of water to the Service Provider by the District, including but not limited to, assurances regarding water quality and availability of substitute supplies. (nunm)Water System: All components of the District's Water Treatment System and Water Distribution System. (nnn) Water Treatment System: All structures, facilities, equipment and processes owned and used by the District for diverting,producing, transporting and treating the District's Water Supply including but not limited to wells, gathering, piping and treatment facilities. {00096389.DOC v:1} 12 Any Other Term: Any other term not herein defined shall be defined as presented in the "Glossary- Water and Sewage Control Engineering,"A.P.H.A., A.W.W.A., A.S.C.E., and F.W.S.A., latest editions. ARTICLE 2. REQUIREMENTS FOR ACQUIRING WATER OR WASTEWATER SERVICE FROM THE DISTRICT 2.1 Water or Wastewater Service. 2.1.1 Policy.: Provision of water or wastewater service by the District to Service Providers is subject to these Rules and Regulations. Service Providers seeking to acquire water service from the District shall enter into a Water Delivery Agreement with the District whereby the Service Provider's water supply or water resources necessary for meeting the Service Provider's needs shall be made available to the District. For Wastewater Service, Service Providers shall be required to enter into a Connector Agreement. The District may require certain additional conditions prior to granting of service from the District. 2.1.2 No Obligation of Service: Pursuant to C.R.S. §32-1-1001(1)(d)(I),the District may enter into contracts and agreements affecting the District's water or wastewater service and the District's ability to provide such service. The District is not obligated to provide public water or wastewater service other than as required by existing express written Agreements. Subject to the limitations and conditions herein and in any Agreement, it is the intent of the District to make available water or wastewater service to those Service Providers that contract with the District. The relationship between the District and Service Providers receiving water and wastewater service from the District Facilities shall be contractual. 2.1.3 Revocation of Service: Service shall be revocable by the District upon non-payment of fees or charges owed to the District,upon failure to comply with the District's Rules and Regulations, or when the District Manager or Board determines that an emergency exists and such revocation is necessary to protect the health, safety and welfare of the Service Provider Customers. (a) Notice and Hearing: In all cases except as specifically provided otherwise herein, or except in those circumstances involving an imminent hazard to the health, safety or welfare of Service Providers,their Customers or to the District's Water and Wastewater Systems, the District may make provisions for notice and hearing prior to revocation of service. 2.1.4 Covenants: Some conditions of Agreements between the District and Service Providers or other Users seeking service may require Service Providers to enter into commitments concerning real property. Such commitments shall be recorded and shall constitute covenants that run with the property. 2.1.5 Contracts and Agreements: (a) As provided in Article 2.1.2 of this Article 2, the District shall provide water or wastewater service to Service Providers only by Agreement. However,the {000963 89.DOC v:l} 13 District may in its discretion determine on a case-by-case basis the appropriate terms of such Agreement(s),including but not limited to the nature of the water to be delivered, terms that meet special circumstances such as bulk delivery agreements, or provisions accommodating special circumstances for wastewater service. (b) Each Agreement is subject to these operating Rules and Regulations,District engineering standards, and all rules and policies promulgated hereunder and amendments thereto. The operating rules and engineering standards and any amendments shall be incorporated by reference and made a part of any Agreements with Service Providers by reference to these Rules and Regulations. 2.1.6 Denial of Service: The District's Board retains, in its sole discretion and judgment,the right to deny an application for service when granting the application for service would not be in the best interests of the District. The District may deny any application for water or wastewater service to any property within the District's Service Area or wastewater service area as defined in Section 6.1.2, based on the District's determination that the District lacks sufficient water treatment capacity, wastewater treatment capacity, water and/or wastewater Facilities and/or water resources to serve the properties proposed by any Service Provider making application to the District for water or wastewater service. Other factors that the District's Board may consider,not by way of limitation, include each of the following: (a) Whether adequate water resources,water rights, water storage and related water facilities are available and will be available in the future to serve existing or proposed Service Providers and the impact of other factors resulting in the unavailability of water supply, including restrictions that may be imposed by the State Engineer or other applicable agency. (b) The impact of the requested service on the District's existing water or wastewater service,treatment,transmission and storage facilities and capacity limitations related to water and wastewater treatment. (c) The economic effect that the approval of the application for service would have on the District. (d) Whether granting the application for service would adversely affect the public health, welfare or safety of the residents and property owners served by the District's existing or future Service Provider customers pursuant to Agreements. (e) Any other factors related to the application for service. There may be factors and aspects of an application for service that are unique to that application and are not contained in the above list, and the Board retains the right to consider any and all factors related to an application for service and to make a decision based thereon. 2.1.7 Application for System Review: A Service Provider seeking to acquire water service from the District shall submit an application for system review, which is the District's review process designed to ensure that the District has adequate resources, to assess District Facility needs, and determine whether Service Provider's water or wastewater facilities proposed to be connected to the District's Water or Wastewater Systems comply with the {00096389.DOC v:1} 14 District's Design Standards. The District's review will determine the scope of additional District water or wastewater Facilities required to serve the Service Provider. 2.1.8 Other Conditions for Service: In addition to the requirements for service set forth in this Article 2,the District may require that a Service Provider seeking to acquire service from the District satisfy certain conditions, as outlined in this section and as set forth more specifically in other sections of these Rules and Regulations. (a) Integrated System: The District may condition service upon the Service Provider being part of a viable integrated system for the installation, operation and maintenance of water delivery and wastewater systems. The District may adopt operating rules and engineering standards establishing the minimum service requirements,but the District and any Service Providers acknowledge that those requirements may be further limited or restricted by individual Service Provider's rules, regulations or standards. (b) The District may require that all property served or to be served by the District be within the Service Provider boundaries or be included within the Service Provider boundaries or meet other service area requirements for wastewater service as set forth in Article 6 herein, , prior to execution of an Agreement to insure the orderly, efficient, and economically feasible delivery of service. (c) Adequate Water Resources: A Service Provider seeking to acquire water or wastewater service from the District may be required to dedicate reuse or return flow water rights to the District. (d) Adequate Water or Wastewater Systems: The District may require, as a condition of service, advance dedication of fees or capital to build necessary water or wastewater Facilities, and may provide for such fees or capital in an Agreement between the District and the Service Provider, for which the District may,but it is not required to, provide credit to the Service Provider. The District also may require payment of additional fees for the purpose of meeting costs of expanding District Facilities, such fees to be determined by the Board from time to time. (e) Adequate Main Lines and Service Lines: A Service Provider seeking to acquire water or wastewater service from the District shall be required to pay for the District's construction Costs of all Facility extensions necessary to connect the Service Provider's system to the Water and/or Wastewater Systems of the District. (f) Non-Potable Irrigation System: In certain areas of the District a Service Provider seeking to acquire water or wastewater service from the District may be required to pay for the construction of a separate non-potable irrigation system for the Customers of the Service Provider's service area. (g) Well Site Dedication: In order to provide water and/or wastewater service to property within the Service Provider's boundaries or service area, the District may require the dedication of easement(s), easement(s) for well site(s)together with access easement(s), water, sewer and electrical line easement(s) or fee simple property at no cost to the District. The dedication of such easement(s), well site(s) and/or fee simple property shall be in {00096389.DOC v:1} 15 addition to the dedication of water rights that maybe required under a Water Delivery Agreement and any other requirements of these Rules and Regulations, and shall be free and clear of all liens and encumbrances prior to approval of service to the Service Provider. (h) Dedication of Groundwater Rights: As a condition of a service, the District may require that the Service Provider dedicate to the District sufficient tributary,not nontributary,nontributary and designated basin water rights and groundwater rights necessary to supply water sufficient to service the Service Provider's Customers. Such dedication shall include the irrevocable consent to the use by the District, as a part of the District Water Supply, of all of the groundwater rights,which use includes without limitation the exclusive right to take, appropriate,produce,use and otherwise dispose of said water. The District has the sole discretion to determine the adequacy and sufficiency of the dedication of such ground water rights, and to determine whether, in the judgment of the District's Board, the groundwater rights are compatible with the District's Facilities and the needs and infrastructure of the Service Provider. The District may further require that the Service Provider consent to being served with such groundwater through the District's Water System,wherein such water may be commingled with the District Water Supply for the purposes of being furnished by the District, and that the Service Provider consent to the continuing jurisdiction of the Water Court or other agency with respect to such water rights, such groundwater rights be conveyed to the District free and clear of all liens and encumbrances prior to approval of service to the Service Provider. (i) Dedication of Water Rights: Sufficient water rights, water storage or related facilities or the equivalent thereof sufficient to provide water service to the Service Provider may be required to be dedicated to the District as a condition of service. The District has sole discretion to determine the adequacy and sufficiency of the dedication of such water rights, water storage or related facilities, and to determine whether, in the judgment of the District's Board, the water rights,water storage or related facilities are compatible with the District's Facilities and the Service Provider's infrastructure and service needs. Such water rights, water storage or related facilities or monies shall be conveyed to the District free and clear of all liens and encumbrances prior to approval of service to the Service Provider. (j) Water Resources Fee: In the sole discretion of the Board, the Service Provider may satisfy all or part of the water resources, groundwater and/or well site dedication requirements stated above through monetary compensation, defined as a water resources fee, adequate to purchase or compensate the District for the water rights, groundwater rights, water storage or related water facilities required to provide such service to the Service Provider. The District may adopt policies from time to time,by Board resolution,regarding such determinations. (k) Reimbursement for Agreement Processing: The District may require in the application process, that on completion of the Board's approval or denial of a proposed Agreement the District may determine the actual cost expended by the District in considering any Agreement and require reimbursement by the Service Provider. 2.1.9 District. Responsibility for Costs of Providing Service within Service Provider's System: A Service Provider seeking to acquire water or wastewater service from the District shall be responsible for the design costs, construction costs, installation costs, and any {00096389.DOC v:1) 16 other costs and/or fees and charges associated with provision of water or wastewater service through the Service Provider's system from the Water or Wastewater Connection Point(s)to the Service Provider's Customers, except as otherwise provided pursuant to separate Agreement with the District. 2.1.10 Procedural Requirements for Acquiring Water or Wastewater Service: (a) Application: A Service Provider seeking service from the District shall submit an application on an approved District form. Any Agreement may contain any conditions, not contrary to law, for the provision of service. (b) Other Procedural Requirements: [Reserved]. 2.2 Fees, Rates and Service Charges. 2.2.1 Policy. Except as provided in any Agreement, all Costs of new construction,reconstruction, repair, replacement or enlargement of the District Facilities which are necessary to provide new, different or additional water or wastewater services within the District's Service Area shall be the responsibility of Service Provider and incorporated into the District's rate structure to insure the sustainability of water quality and quantity and the adequacy of water and wastewater service to Service Providers. Service Providers seeking to acquire water or wastewater service from the District, or seeking changes to existing service, shall have in place a structure for levying and collection of all applicable fees,rates and service charges, which shall be subject to review of the District prior to entering into an Agreement by the District. The provisions of these Rules and Regulations apply regardless of whether the District or some other person contracts for, or initially pays for, such construction, reconstruction or enlargement of the District Facilities. The District Board may act other than as required in this section when it determines, in its sole discretion,that such action is in the best interests of the District, or is necessary to provide for the health, safety and welfare of the inhabitants and visitors of the Service Providers contracting for service with the District. 2.2.2 Payment of Fees: Subject to the terms of individual Agreements with the District, all fees due to the District shall be paid prior to connection to District Facilities and provision of service. 2.2.3 Schedule and Types of Fees, Rates and Service Charges: (a) Schedule of Fees, Rates and Service Charges: The District's fees, rates and service charges shall be as set forth in Exhibit A hereto [Reserved]. (b) System Development Charges: Except as provided in an Agreement, Service Providers shall pay system development charges and/or plant investment fees for service by the District. Such charges and fees shall be for all Costs associated with construction, development,reconstruction or expansion of all District Facilities, including but not limited to diversion structures,wells,pipelines, pumps, lift stations, storage facilities, collection or gathering pipelines, and all water or wastewater treatment facilities, and all other temporary or permanent structures necessary for the development of the District's Water or Wastewater Systems, as applicable, depreciation, and repair and replacement costs and reserves, {00096389.DOC vi} 17 pursuant to an allocation formula determined by the Board. System development charges or plant investment fees also may include but not be limited to, water resources fees as defined in Section 2.1.8(j), all Costs associated with acquisition of land, water resources, wells or diversion structures, easements,rights of way or permits necessary for the diversion, withdrawal, delivery, treatment, substitution of supply, or storage of the District's Water Supply or provision of water or wastewater service by the District. System development or plant investment fees shall be assessed as provided for in Exhibit A [Reserved]. System development or plant investment fees shall be non-refundable. (c) Connection Fees: Connection fees shall be charged to all Service Providers and shall be due and payable when application is made to the District for new or additional water or wastewater service and prior to the installation of a water or wastewater connection or as otherwise provided in an Agreement. Connection fees can be prepaid. Connection fees shall be calculated to recover all District expenses and costs associated with providing water or wastewater service to a Service Provider or other User as defined in Section 8.16(a). Connection fees may consist of different components such as: connection charge, development plan review fee, water resource development charge, and Master Meter charge. Water and wastewater connection fees shall be assessed as provided for in Exhibit A [Reserved]. Connection fees shall be non-refundable. (d) Service Charges: 1) Policy for Calculation and Payment of Service Charges: Customers' service charges shall be paid by all Service Providers based on rates and charges set by the District pursuant to rate studies and after public hearing. Rates and procedures for payment of service charges to the District shall be as set forth in Agreements or these Rules and Regulations. It shall be the policy of the District to implement procedures for the timely and regular payment of service charges to the District. 2) Amended Service Charges: Agreements shall provide in those situations where, in the Board's sole discretion,the service charges do not represent fair, reasonable and equitable charges for the intended use,the Board may adjust the charges. 3) Payment of Service Charges: Billing cycles for statements for service charges to be paid to the District shall be as determined by the Board or pursuant to an Agreement approved by the Board. Charges for late payments, turn-on, turn-off, or other penalties, shall be added to such statements. Service charges shall be assessed as provided for in Exhibit A [Reserved]. Service charges or fees shall be non-refundable. 2.2.4 Billing Procedures for Service Charges : [Reserved]. {00096389.DOC v:1) 18 ARTICLE 3. WATER SERVICE 3.1 Principles for Supplying Water Resources to Public Water Service Providers. 3.1.1 Policy Regarding Use of District Water System: Use of the District's Water System shall comply with these Rules and Regulations. The right to use the Water System is only by permission granted by the District through a Water Delivery Agreement or other Agreement. The District reserves the right to determine all matters related to the control and use of its Water System. The right to use of the Water System shall be subject to suspension, disconnection or revocation as set forth in these Rules and Regulations or in any Agreement with a Service Provider. 3.1.2 Water Policy: It is the policy of the District to provide Service Providers with single use water unless specified otherwise by Agreement. 3.1.3 Scope of District Water Supply: In order to provide for an integrated Water System as contemplated,the District may acquire water supplies by contractual agreements, purchase contracts, leases or other Agreements. The District Water Supply shall consist of all legally available water, including, but not limited to, supplies of non-potable water, potable water, first use or reuse water,tributary,not non-tributary, non-tributary and designated basin water rights and groundwater rights, return flows,banked return flow credits, or other legally available water supplies together with all well structures, diversion structures, easements, delivery systems, measuring devices and all other appurtenances thereto. All rights to water held, owned or controlled by the District pursuant to any Agreement or conveyance, may be incorporated into the District's Water Supply and shall be available for delivery to Service Providers pursuant to a Water Delivery Agreement. 3.1.4 Ownership of Water and Return Flows: To the extent the District has dominion or control, pursuant to an Agreement or otherwise, of water supplies as part of the District Water Supply, the District shall have sole dominion, control, right and use of all water supplied through the Water System, subject to reasonable use thereof by Service Providers or their Customers in compliance with applicable Water Delivery Agreements and/or these Rules and Regulations. Such dominion and control shall continue without interruption as to all wastewater, return flows,runoff, sewage or tailwater attributable to or originating in water supplied through the Water System,pursuant to any applicable court decrees or regulatory restrictions. The District shall have the exclusive right to recapture such return flows or claim credit therefrom for exchange, replacement, augmentation, substitute supply or any other lawful purpose, and the District's dominion and control over the District's Water Supply shall continue to attach to all such return flows even after they return to the ground. All such return flows from water supplied through the Water System remain the property of the District. The District retains the sole authority to determine the yield of all water, water rights and augmentation plans which are offered to the District for any purpose. 3.1.5 Consent to Groundwater Appropriation: The owners of all land,their heirs, successors and/or assigns which overlies the groundwater comprising all or a portion of the District's Water Supply shall be deemed to have consented to the withdrawal by the District of (00096389.DOC v:1) 19 all such groundwater unless consent shall be deemed to have been withheld as otherwise provided by law upon the effective date of these Rules and Regulations. 3.2 District Water System and Service Provider Systems. 3.2.1 Ownership and Maintenance of Service Provider Water Service Facilities and Lines. (a) Each Service Provider's water service system, commencing from the Connection Point on the District's main water supply line for a Service Provider and continuing through the Service Provider's system, are the property and responsibility of the Service Provider to design, monitor, operate,regulate and maintain as determined by the rules and regulations for the Service Provider. All other water service lines, curb boxes,valve boxes and meter pits, or other improvements necessary for the Service Provider to supply water to its Customers are the property and maintenance responsibility of the Service Provider or Service Provider Customer(s) as determined by the rules and regulations for the Service Provider. (b) Leaks or breaks occurring at Connection Points to the District's Water Distribution System shall be repaired by the Service Provider within seventy-two (72) hours after discovery of such condition by the Service Provider or notification of such condition to the Service Provider by the District. If satisfactory progress toward repairing any leak or break has not been accomplished within such time period, the District shall take actions necessary to make all required repairs at the full expense of the Service Provider. The District reserves the right to make the repair at the expense of the Service Provider when, in the opinion of the District, such repair is necessary to protect the operation of the District's Water System or for the protection of the health, safety and welfare of the inhabitants and visitors of the Service Providers served by the District. 3.2.2 Ownership and Maintenance of Master Water Meters and Related District Facilities: (a) It shall be the duty of all Service Providers to notify the District if a Master Water Meter and/or related facilities at any Connection Point are operating defectively within twenty-four(24)hours of discovery of such condition. It shall also be the duty of all Service Providers to maintain free and clear access to the Master Water Meter and all component parts making up the Master Water Meter assembly. (b) The District shall be responsible for the maintenance and repair of all Master Water Meters unless it determines that said meter has been willfully damaged, in which case the District shall have the Master Water Meter repaired or replaced and shall charge the Service Provider therefore. 3.2.3 Non-Potable Irrigation System: [Reserved]. 3.3 Protection of District Water Supply.Limitations to Protect District Water Supply: In order to protect the District's water supply from pollution and from activities that create a hazard to health and water quality and to protect the health, safety and welfare of the Service Providers and/or their Customers or to District's residents,the District will not provide service to (00096389.DOC v:1) 20 property that is used for a Pollution-Hazard Activity if the location of said property poses an unreasonable risk of contamination that could cause pollution to the District's Water Supply such that the District would not have adequate time following a release of contaminants to protect or provide for a substitute water supply. Such determinations shall be made in the sole discretion of the District. The District shall take all steps necessary in its discretion including contracts with Service Providers to protect the District Water Supply. 3.3.2 Additional Provisions: [Reserved] 3.3.3 Enforcement: [Reserved] 3.3.4 Prohibitions: [Reserved] 3.3.5 Violations: [Reserved] ARTICLE 4. WATER CONSERVATION 4.1 Compliance with State Laws: The District shall implement all measures required by law for water conservation with respect to the operation of the District Water System. 4.2 Development and Implementation of Water Conservation Programs. 4.2.1 Leak Detection: The District's objectives in implementing a leak detection program include assessment of the impact of unaccounted-for water use and Water System loss estimates on the District's Water Supply, and identification and repair of leaks within the Water System to maintain a low and acceptable amount of unaccounted-for water use. The goal is to reduce Water System losses. (a) The District will conduct a water audit to determine the amount of water unaccounted-for or lost in the District Water System. The audit shall include recording information on the Water System, estimating leaks, estimating leak losses, estimating revenue losses from leaks, and estimating costs for repairs. (b) If unaccounted-for water losses from leaks are determined to be ten percent(10%) or more of total consumption,the District shall develop and implement a leak detection program. The program will traverse all of the Water Distribution System that has pipe over twenty (20)years old on a five-year basis to locate and repair leaks. All identified leaks, including leaks in Master Meters and valves, shall be repaired within seventy-two (72) hours. (00096389.DOC v:1) 21 ARTICLE 5. WATER QUALITY 5.1 Monitoring Water Quality. Unless provided otherwise in Water Delivery Agreements or other Agreements, Service Providers shall be solely responsible for meeting all applicable regulations for drinking water or other water quality standards from the Connection Point for delivery through the Service Provider's system to its Customers, including all sampling,monitoring,reporting, notice and compliance standards, regulations and requirements. 5.2 Commingling of Water Supplies. The District may commingle water from its various Water Supply sources provided that delivery requirements are met to Service Providers. 5.2.1 Standards: The District may require that water resources acquired for its Water Supply System meet certain minimum constituent standards for groundwater or other applicable standards and regulations. ARTICLE 6. PROVISIONS FOR WASTEWATER SERVICE 6.1 General. 6.1.1 Policy. Use of and all discharges of wastewater into the District's Wastewater System shall comply with these Rules and Regulations. The right to any use of the Wastewater System is only by permission granted by the District through a Connector Agreement. The District reserves the right to determine all matters related to the control and use of its Wastewater System. The right to use of the District's Wastewater System shall be subject to suspension, disconnection or revocation as set forth in these Rules and Regulations or in a Connector Agreement with a Service Provider. 6.1.2 Service Area: As provided in a Connector Agreement, the form of which is attached hereto as Exhibit B, a Service Provider may only provide wastewater service within its approved service area. The District's wastewater service area is as defined by the local water quality planning agency. This Article describes the procedures for Service Providers requesting approval of an expanded or new wastewater service area. The sewer service area for the District shall only include the area approved by the local water quality planning agency and will only be expanded in accordance with the local water quality planning agency's amendment process. 6.1.3 Request for Approval from an Existing Service Provider: When an existing Service Provider wishes to provide wastewater service to any area outside the service area previously approved by the District, the existing Service Provider shall submit a request in writing to the District . The request shall include, at least, the following: (a) A map of the area showing the boundaries of the enlarged area and showing the existing and the proposed major sewers which will serve the area. The map shall show which existing connection point(s)will serve the additional area and if a new connection point(s)will be required. (00096389.DOC v:1} 22 (b) Information on the projected land use, zoning,residential densities, and commercial/industrial nature of the area. (c) The 10-year, 20-year and ultimate population projections of the enlarged area and the corresponding estimated average and peak quantity of flow expressed in million gallons per day(MGD). The flow data shall be in the form of a flow versus time curve projected to the ultimate development of the area. (d) The 10-year, 20-year and ultimate estimated quality of flow expressed in biochemical oxygen demand(BOD) and suspended solids (SS),plus any additional pertinent information regarding the quality of flow expected,particularly from industrial sources. (e) A letter from all existing sanitation districts or other sewer service entities overlapping or within five miles of the enlarged area stating the feasibility of providing service to the enlarged service area and the justification for not connecting to other existing facilities where feasible. (1) Institutional arrangements such as contracts and/or covenant terms for all users within the expanded service area to insure proper operation and maintenance of the connector's wastewater collection system. (g) Management capabilities, including user contracts, operating agreements,pretreatment requirements, etc., for controlling the wastewater collection system on a continuous long-term basis. 6.1.4 Request for Approval from a New Service Provider: When a new Service Provider wishes to provide wastewater service to any area outside areas previously approved by the District or outside the approved service area of the District,the new Service Provider shall submit a request in writing to the District. The request shall include, at least,the following: (a) A map of the area showing the boundaries of the proposed area and showing the existing and the proposed major sewers which will serve the area. The map shall show which existing connection point(s)will serve the proposed area and if a new connection point(s)will be required. (b) Information on the projected land use, zoning,residential densities, and commerciallindustrial nature of the area. (c) The 10-year,20-year and ultimate population projections of the enlarged area and the corresponding estimated average and peak quantity of flow expressed in million gallons per day(MGD). The flow data shall be in the form of a flow versus time curve projected to the ultimate development of the area. (d) The 10-year, 20-year and ultimate estimated quality of flow expressed in biochemical oxygen demand(BOD) and suspended solids (SS), plus any additional pertinent information regarding the quality of flow expected, particularly from industrial sources. (00096389.DOC v.1) 23 (e) A letter from all existing sanitation districts or other sewer service entities within five miles of the proposed area stating the feasibility of providing service to the proposed service area and the justification for not connecting to other existing facilities where feasible. (f) Institutional arrangements such as contracts and/or covenant terms for all users within the proposed service area to insure proper operation and maintenance of the connector's wastewater collection system. (g) Management capabilities, including user contracts, operating agreements,pretreatment requirements, etc., for controlling the wastewater collection system on a continuous long-term basis. 6.1.5 Service Area Information: The existing or new Service Provider shall supply other information concerning the proposed additional service area when the District determines that the information is necessary to make a proper decision and appropriate application to the local water quality management agency. It is necessary that requests be submitted and approved by the District prior to proceeding with planning and construction of any District Facilities to serve the area. 6.1.6 Approval Procedures: When the service area adjustment requested by an existing or new Service Provider is within the District's approved sewer service area, the Board of Directors shall act on the request. Service Providers are advised that a minimum of thirty (30) days is required for consideration of service area adjustments within the District's approved sewer service area. When the requested service area adjustment includes land which lies partially or completely outside the District's sewer service area, the Board of Directors shall act on the request and, if appropriate,process an Areawide Water Quality Management Plan Amendment application in accordance with the local water quality planning agency's requirements. Service Providers are advised that a minimum of six (6) months is required for consideration of service area adjustments partially or completely outside the District's approved sewer service area. 6.1.7 Post-treatment Waters: All water produced as a result of the treatment of wastewater in the District Wastewater System from whatever source shall be owned by the District and the District shall retail sole dominion, control and right of use of all such post- treatment water, subject to requirements of court decrees, statutory requirements and provisions of any Agreements. 6.1.8 Prohibited Wastes: Discharge of any water or Wastewater into the District's Wastewater System containing substances prohibited by these Rules and Regulations or not meeting the requirements set forth in this Article 6 is prohibited. 6.1.9 General Prohibition: No person shall discharge or cause to be discharged into a public sewer or in the District's Sewer service area, any harmful waters or wastes, whether liquid, solid or gas, capable of causing interference, obstruction or damage to any of the District Facilities or hazards to District personnel. Prohibited sewage shall include such quantity of clear {00096389.DOC v.1} 24 water injected into a public sewer which would interfere with the District's Wastewater treatment process. 6.1.10 Construction Modifications to Limit Harmful Waste: Some Customers or Service Providers may be required to install pretreatment facilities, including, but not limited to grease, sand, and/or oil interceptors into their building construction. As required by the District and set forth in Exhibit C hereto, in order to prevent the discharge of such materials and other prohibited wastes into the District's Wastewater System. 6.1.11 Lateral Size: The District shall require all Service Providers to adopt rules and regulations for the design, planning, locating, sizing, and construction of all service laterals and installation thereof, including change orders, in accordance with District standards and requirements set forth in Exhibit D [Reserved]. All costs and expenses of the Customer or Service Provider incurred for the installation and connection of service laterals to the District's Wastewater System shall be the responsibility of the Service Provider. The Service Provider shall be liable to the District for any loss or damage which may directly or indirectly occur by the installation of a service lateral. The Service Provider shall notify the District of any such damage immediately and shall repair such damage within seventy-two (72) hours. If such repairs are not made within such time,the District shall make such repairs and bill the Service Provider therefore. The Service Provider shall reimburse the District for such repairs within thirty(30) days of the date of occurrence. 6.1.12 Maintenance of Laterals: The District shall require Service Providers to adopt rules and regulations providing that Customers shall be responsible for all maintenance, including routine maintenance or maintenance resulting from damage, repair and replacement of the service lateral from the point of connection from the Service Provider's sewer main. The Service Provider or Customer, as determined by the Service Providers' rules and regulations, is responsible for maintenance of the service laterals from the Customer's point of use to the Wastewater Connection Point. The Wastewater Connection Point shall be determined by the District pursuant to a Connector Agreement between the District and the Service Provider. Maintenance of the service laterals shall include all administrative, monitoring, servicing, repair of all damage whether from abnormal use or not, routine repair or maintenance, and replacements costs. ARTICLE 7. LIMITATIONS ON DISCHARGE 7.1 Limitations On Discharged Wastes/Prohibited Wastes. 7.1.1 Standards for Water or Wastewater Discharge into the District's Wastewater System: Service Providers shall comply with all applicable Pretreatment Standards and Requirements. No Service Provider or Customer shall discharge or cause to be discharged into the District's Wastewater System any storm water, surface water, ground water, roof runoff, subsurface drainage, cooling water, air conditioning wastewater or any other domestic or commercial wastewater that does not meet National Pretreatment Standards. {00096389.DOC v:1} 25 7.1.2 Construction Modifications to Limit the Discharge of Harmful Wastes into the District Facilities, Grease Interceptors/Traps and Sand/Oil Interceptors/Traps: Every Service Provider shall adopt rules and regulations approved by the District sufficient to provide for the proper handling of liquid wastes containing excessive grease, excessive sand or other harmful ingredients, as set forth in Exhibit C hereto. 7.1.3 Review of Plans for the Construction and Installation of Pretreatment Facilities: If any water or wastewater is discharged, or is proposed to be discharged,to the District Facilities (1) from restaurants or other food preparation establishments described above, or(2)that may contain the substances or exceed the limitations for standards for water or wastewater discharged into the District's Wastewater System, the Service Provider shall be responsible for contacting the District regarding planning, review, construction and installation of pretreatment facilities prior to discharging any water or Wastewater into the District's Wastewater System. A process for plan review shall determine the need, method, and size of pretreatment facilities required to pretreat or otherwise control the Wastewater to make it acceptable for discharge into the District Facilities. 7.1.4 Sampling Manholes: The District may require Service Providers to adopt regulations requiring the installation of one or more discreet sampling manholes. All placements of sampling manholes must be approved by the District prior to installation. 7.1.5 Interceptor/Trap Maintenance: (a) Responsibility for Maintenance: Service Provider regulations shall require that it shall be the Customer's responsibility to ensure that grease and sand/oil interceptors/traps are maintained and in proper working order. The interceptors shall be unobstructed and available for periodic maintenance inspections and discharge sampling by the Service Provider and the District. (b) Inspection: Existing interceptor/trap installations shall be inspected by the Service Provider to determine compliance with the District's oil and grease discharge standards. Installations not able to achieve compliance with such standards due to improper design shall be modified or replaced in order to achieve compliance with District Design Standards, including design and sizing criteria as set forth in Exhibit D hereto. (c) Reports: Service Providers shall provide the District with periodic reports of maintenance as requested by the District. 7.1.6 Interceptor/Trap Requirements for Existing Property/District Facilities: Service Provider regulations shall require inspection of existing Customer facilities to determine whether any existing pretreatment facility is deficient in size, or waste emanating from the property,business or industry violates the District's Rules and Regulations and/or may cause harm to the District Facilities, or persons entering said District Facilities to perform maintenance, or to the treatment process and/or environment. The Service Provider shall require the Customer to install suitable pretreatment facilities or take other appropriate remedial measures as directed by the District. {00096389.DOC v.1) 26 • 7.1.7 Construction Modifications to Limit Harmful Wastes, Wash Racks/Floor Slabs. All wash rack construction or modification plans must be approved by the Service Provider in accordance with District Design Standards set forth in Exhibit D hereto. ARTICLE 8. PRETREATMENT REQUIREMENTS 8.1 General. 8.1.1 Authority: This Article 8 is adopted by the District in accordance with the authority conferred in the Clean Water Act, and any regulations implementing the Clean Water Act, including, but not limited to, 40 CFR 403.8,the Colorado Water Quality Control Act, and any regulations implementing the Colorado Water Quality Control Act, C.R.S. §§25-8-101 et seq., and the Safe Drinking Water Act, and any regulations implementing the SDWA, with all the powers thereof which are specifically granted to the District, or are necessary or incidental to or implied from power specifically granted therein for carrying out the objectives and purposes of the District and this Article 8. The provisions in this Article 8 shall be called the Pretreatment/Industrial Waste Control Program of the District. 8.1.2 Compliance: The Pretreatment/Industrial Waste Control Program of the District is designed to enable the District to comply with all conditions of its National Pollutant Discharge Elimination System(NPDES)Permit, Federal Pretreatment Regulations, and any applicable sludge disposal regulations, and to meet the following objectives: (a) To prevent the introduction of pollutants into the District Facilities which will interfere with the operation of the Water or Wastewater Systems or contaminate the sludge. (b) To prevent the introduction of pollutants into the Water or Wastewater System which will pass through the Wastewater System, inadequately treated, into the receiving waters or the atmosphere. (c) To prevent the introduction of pollutants into the Wastewater System which might constitute a hazard to humans or to animals. (d) To assure the District's ability to recycle and reclaim Wastewater and sludge. (e) To protect human health and welfare, the environment, property and the District's Publicly Owned Treatment Works. {00096389.DOC v:1} 27 PART A RULES AND REGULATIONS FOR SERVICE PROVIDER USE OF DISTRICT WASTEWATER SYSTEM 8.2 Applicability. Any Service Provider,the sewage from which directly or indirectly enters the Wastewater System of the District from areas within or without the boundaries or Service Area of the District, shall be subject to the requirements of this Part and shall be bound by these Rules and Regulations as they now exist or may hereafter be amended. All Service Providers with industrial customers are required to design and administer Pretreatment Industrial Waste Control Programs which are in accordance with this Part A of Article 8, and which will enable the District to comply with all pretreatment and effluent limitation conditions of its National Pollutant Discharge Elimination System(NPDES) Permit, Federal Pretreatment Regulations, and applicable sludge disposal regulations. 8.3 Compliance With Requirements. [Reserved] 8.4 Legal Authority Requirements. [Reserved] 8.5 Program Procedure Requirements. 8.5.1 Industrial Waste Survey: Each Service Provider shall formulate and implement procedures for conducting ongoing, comprehensive industrial waste surveys to locate and identify all Significant Industrial Users discharging to the Service Provider's sewer system. The District shall make the final determination as to whether a particular Industrial User is a Significant Industrial User. To this end,the District may require that a Service Provider collect and forward to the District all information necessary to make this determination. 8.6 Extra-Jurisdictional Industrial Users. [Reserved] 8.7 Exemptions. A Service Provider administering a Pretreatment Program, separate from that of the District, which has been approved by the Regional Administrator of EPA or the Director of the Water Quality Control Division of the Colorado Department of Health in accordance with §403.11 of the Federal Pretreatment Regulations, may be exempted from compliance with certain provisions of this Article 8, as determined by the District. (00096389.DOC v:1) 28 8.8 Program Review. [Reserved] 8.9 Remedies. 8.9.1 Emergency Remedies: Where a discharge to the Wastewater System reasonably appears to present an imminent endangerment to the health or welfare of persons, or presents or may present an endangerment to the environment, or threatens to interfere with the operation of the District, the District shall immediately initiate investigative procedures to identify the source of the discharge, and take any steps necessary to halt or prevent the discharge. If necessary,the District shall seek injunctive relief against the violating Service Provider and any User contributing significantly to the emergency condition. 8.9.2 Routine Remedies: If the District determines that a Pretreatment/Industrial Waste Control Program as administered by a Service Provider is not in compliance or that the discharge from a Service Provider is not in compliance with District Standards,the District shall issue a notice setting forth the Requirements and Standards not being complied with and directing the Service Provider to attain conformance to these Requirements and Standards within a period of ten(10) days. If after ten(10) days,the Service Provider has failed or refuses to comply with this notice, the District may issue an additional notice setting forth remedial actions to be taken by the violating Service Provider and a time schedule for attaining compliance with all Pretreatment/Industrial Waste Control Requirements and Standards. If after thirty(30) days notice, the violating Service Provider has not taken necessary steps to correct the violation,the District may assume in whole or in part Pretreatment/Industrial Waste Control Program responsibilities in lieu of the violating Service Provider. The District may continue in this capacity until the violating Service Provider agrees to the original terms of the notice and any additional terms which the District feels are necessary to ensure ongoing compliance by the Service Provider with all Pretreatment/Industrial Waste Control Requirements and Standards. The Service Provider shall be liable for all costs associated with the District's assumption of responsibilities on behalf of the Service Provider and the District may recover such costs in any manner permitted by law. 8.10 Program Preemption. [Reserved] 8.11 Program Delegation. [Reserved] 8.12 District Monitoring. For the purpose of determining the quantity, quality, and other characteristics of any sewage which shall be or may be delivered and discharged into the Wastewater System by a Service Provider, or into the system of a Service Provider by any User, the District shall have the {00096389.DOC v:1} 29 right at all reasonable times to enter upon and to inspect the Service Provider's system or any industrial or commercial installations connected thereto or any other connections which contribute sewage or Wastewater to the Service Provider's system and to inspect and copy records,to take samples and to make tests, measurements, and analyses of sewage or other wastes in, entering, or to be discharged into such Service Provider's system. 8.13 General Requirements Regarding Deleterious Wastes. None of the following described sewage, water, substances, materials or waste shall be discharged into the District's Wastewater System; and each governing body of each Service Provider shall prohibit and shall prevent any discharges from any outlet into its sewer system, if such discharges cause or significantly contribute to a violation of any of the requirements contained herein: (a) Sewage of such a nature and delivered at such a rate as to impair the hydraulic capacity of the District's Wastewater System, normal and reasonable wear and usage excepted. (b) Sewage of such a quantity, quality, or other nature as to impair the strength or the durability of the sewer structures, equipment or treatment works, either by chemical or by mechanical action. (c) Sewage having a flash point lower than 187°F, as determined by the test methods specified in 40 CFR §261.21. (d) Any radioactive substance, the discharge of which, does not comply with Article RH 4.18 of the Colorado Rules and Regulations pertaining to Radiation Control (Volume 6 of the Code of Colorado Regulations, 6 CCR 1007-1, Part 4, et seq.). (e) Any garbage other than that received directly into the Service Provider's sewer system from domestic and commercial garbage grinders in dwellings, restaurants,hotels, stores, and institutions,by which such garbage has been shredded to such a degree that all particles will be carried freely under flow conditions normally prevailing in public sewers with no particle greater than one-half(1/2) inch in any dimension. (f) Any night soil or septic tank pumpage, except by permit in writing from the District at such points and under such conditions as the District may stipulate in each permit. (g) Sludge or other material from sewage or industrial waste treatment plants or from water treatment plants, except such sludge or other material, the discharge of which to the District Wastewater System shall be governed by the provisions of these Rules and Regulations or any Connector Agreement or as otherwise authorized by the District. (h) Water which has been used for cooling or heat transfer purposes without recirculation, discharged from any system of condensation, air conditioning, refrigeration, or similar use. (00096389.DOC v1) 30 (i) Water accumulated in excavations or accumulated as the result of grading, water taken from the ground by well points, or any other drainage associated with construction. (j) Any water or wastes containing grease or oil and other substances that will solidify or become discernibly viscous at temperatures between 32°F and 150°F except by permit in writing from the District at such points and under such conditions as the District may stipulate in each permit. (k) Any wastes that contain a corrosive, noxious, or malodorous material or substance which, either singly or by reaction with other wastes, is capable of causing damage to the District's Wastewater System or to any part thereof, of creating a public nuisance or hazard, or of preventing entry into the sewers for maintenance and repair. (I) Any wastes that contain concentrated dye wastes or other wastes that are either highly colored or could become highly colored by reacting with any other wastes, except by permission of the District. (m) Any wastes which are unusual in composition; i.e., contain an extremely large amount of suspended solids or BOD; are high in dissolved solids such as sodium chloride, calcium chloride, or sodium sulfate; contain substances conducive to creating tastes or odors in drinking water supplies; otherwise make such waters unpalatable even after conventional water purification treatment; or are in any other way extremely unusual unless the District determines that such wastes may be admitted to the District Wastewater System or shall be modified or treated before being so admitted. (n) Any substance which may cause the District's effluent or any other product of the District such as residues, sludges or scums,to be unsuitable for reclamation and reuse or to interfere with the reclamation process. In no case, shall a substance discharged to the Wastewater System cause the District to be in non-compliance with sludge use or disposal criteria, guidelines or regulations developed under Article 405 of the Clean Water Act; any criteria, guidelines, or regulations affecting sludge use or disposal developed pursuant to the Solid Waste Disposal Act, the Clean Air Act,the Toxic Substances Control Act, or State criteria applicable to the sludge management method being used. (o) Any substance which may cause the District to violate its National Pollutant Discharge Elimination System (NPDES)Permit or the receiving water quality standards. (p) Except for existing combined sewer facilities, any storm water, directly or indirectly, from surface drains, ditches, or streams, storm or combined sewers, roof, areaway, sumps and sump pumps, or foundation drains, or from any other means, including subsurface drainage or groundwater. 8.14 Prohibited Discharges. None of the following described sewage,water, substances,materials, or wastes shall be discharged into the District's Wastewater System or into the sewer system of a Service {00096389.DOC v:1) 31 Provider, by any User and each governing body of each Service Provider shall prohibit and shall prevent such discharges by any User, either directly or indirectly, into its sewer system: (a) Any liquids, solids or gases which by reason of their nature or quantity are, or may be, sufficient either alone or by interaction with other substances to cause fire or explosion or be injurious in any other way to the District's Wastewater System, the sewer system of a Service Provider or any of its connectors, or to the operation of the District. At no time shall any reading on an explosion hazard meter, at the point of discharge into the District's Wastewater System or the sewer system of a Service Provider or any of its Customers (or at any point in the Wastewater Systems), or at any monitoring location designated by the District in a wastewater contribution permit, be more than ten percent (10%) of the Lower Explosive Limit (LEL) of the meter. Prohibited materials include, but are not limited to, gasoline, kerosene, naphtha, benzene, toluene, xylene, ethers, alcohols, ketones, aldehydes, peroxides, chlorates, perchlorates,bromates, carbides, hydrides, and sulfides. (b) Any solid or viscous material which could cause an obstruction to flow in the sewers or in any way could interfere with the treatment process, including as examples of such materials but without limiting the generality of the foregoing, significant proportions of ashes, wax, paraffin, cinders, sand, mud, straw, shavings,metal, glass,rags, lint, feathers,tars,plastics, wood and sawdust,paunch manure, hair and fleshings, entrails, lime slurries,beer and distillery slops, grain processing wastes, grinding compounds, acetylene generation sludge, chemical residues, acid residues, food processing bulk solids, snow, ice, and all other solid objects,material, refuse, and debris not normally contained in sanitary sewage. (c) Any Wastewater having a pH less than 5.0 for discharges from Industrial Users into the District's Wastewater System or the sewer system of a Service Provider or that of any of its Customers, or less than 6.0 or greater than 9.0 for other discharges into the District's Wastewater System, or wastewater having any other corrosive property capable of causing damage or hazard to any part of the District's Wastewater System or the sewer system of a Service Provider or any of its Customers, or to personnel. (d) Any wastewater having a temperature which will inhibit biological activity at the District's treatment plant,but in no case wastewater containing heat in such amounts that the temperature at the introduction into the District's, Wastewater Treatment Works exceeds 40°C (104°F). (e) Any pollutants, including oxygen demanding pollutants (BOD, etc.) released at a flow rate and/or pollutant concentration which cause Upset. In no case shall a slug load have a flow rate or contain concentrations or qualities of pollutants that exceed for any time period longer than fifteen(15)minutes more than five (5)times the average twenty-four (24)hour concentration, quantities, or flow during normal operation. (f) Any water or wastes containing a toxic substance in sufficient quantity, either singly or by interaction with other substances,to injure or interfere with any sewage treatment process, to constitute a hazard to humans or to animals, or to create any hazard or toxic effect in the waters which receive the treated or untreated sewage. {00096389.DOC v:1} 32 (g) Petroleum oil, nonbiodegradable cutting oil, or products of mineral oil origin, each in amounts that will cause interference or Upset. (h) Pollutants which result in the presence of toxic gases,vapors, or fumes within the system in a quantity that may cause acute worker health and safety problems. (i) Any trucked or hauled pollutants except at discharge points designated by the District. (j) Any water or wastes containing pollutant quantities or concentrations exceeding the limitations in Article 8 of these Rules and Regulations, or the limitations in any applicable Categorical Standards. (k) Any wastewater discharges to the District's Wastewater System, except at locations approved by the District. 8.15 Specific Discharge Limitations—Service Providers. No Service Provider shall discharge to the Wastewater System at any time or over any period of time wastewater containing any of the following materials and substances in excess of the limitations provided herein: Limit mg/L 1. Cyanides (as HCN) 2 2. Oil and Grease (Hexane or approved solvent extractable) 75 3. Phenolic compounds (as Phenol) 10 4. Sulfides (as H2S) 10 {00096389.DOC v:1) 33 PART B RULES AND REGULATIONS FOR USERS 8.16 Applicability. (a) A User is any Person who contributes, causes, or permits the contribution of wastewater into the District's POTW. (b) Pursuant to its Service Plan,the District may provide wastewater service to Users through Service Providers. Any User, the sewage from which directly or indirectly enters the Wastewater System of the District from an area within or without the boundaries of the District, shall be subject to the requirements of this Part and shall be bound by these Rules and Regulations as they now exist or may hereafter be amended. Such Rules and Regulations may be enforced against any User. 8.17 General Discharge Prohibitions. No User shall contribute or cause to be contributed, directly or indirectly, any pollutant or wastewater which will interfere with the operation or performance of the POTW. These general prohibitions apply to all such Users of a POTW whether or not the User is subject to national categorical pretreatment standards or any other national, State, district, or local pretreatment standards or requirements: A User may not discharge any of the sewage, water, substances,materials, or wastes listed in Articles 8.13 or 8.14 of these Rules and Regulations. 8.18 Specific Discharge Limitations—Users. 8.18.1 District Limitations: No User shall discharge into the District Wastewater System or into any sewer system at any time or over any period of time, Wastewater containing any of the following materials and substances in excess of the limitations provided herein. These limitations may also be imposed directly on process wastewaters prior to dilution by domestic and other Wastewaters discharged by the User: Limit mg/L 1. Arsenic 0.33 2. Cadmium 3.4 3. Chromium 3.6 4. Copper 6.1 5. Lead 2.2 6. Mercury 0.13 7. Molybdenum 0.71 8. Nickel 5.6 9. Selenium 0.66 10. Silver 2.9 11. Tetrachloroethene 1.5* 12. Zinc 15.6 {00096389.DOC v:1) 34 * Notwithstanding this numeric limitation, the discharge of dry-cleaning process wastes, including new and used tetrachloroethene (perchloroethylene), still bottom oil, and separator water, is prohibited entirely. Where necessary the District may require that these wastes be physically prevented from discharging into the District's Wastewater System. 8.18.2 National Categorical Pretreatment Standards: Once promulgated, Categorical Standards for a particular industrial subcategory, if more stringent, shall supersede all conflicting discharge limitations contained in this Article 8, Part B, as they apply to that industrial subcategory. 8.18.3 State Requirements: State requirements and limitations on discharges shall apply in any case where they are more stringent than federal requirements and limitations or those contained elsewhere in this Article 8, Part B. 8.18.4 Dilution Prohibited: [Reserved]. 8.19 Insignificant Discharges. Notwithstanding the prohibitions and limitations contained in Articles 8.17 and 8.18.1 of these Rules and Regulations, the District may allow a proposed discharge to the system if the District determines that the quantity and quality of the discharge, both alone and in conjunction with similar discharges which might be affected by this determination, will have no material effect on the District's operations, including the quality of its effluent or sludges. Approval of the District must be received in writing before the discharge may commence, and the discharge must adhere to any terms and conditions of the District's approval. Approval of such a discharge is entirely at the discretion of the District, and shall not constitute approval of any additional or similar discharges. Disapproval of a proposed discharge by the District shall not be subject to the appeal and hearing procedure set forth in these Rules and Regulations. 8.20 Accidental Or Unusual Discharges. An accidental or unusual discharge is a discharge which may disrupt Wastewater System treatment processes or operations, damage Wastewater System facilities, cause an NPDES Permit violation at the District's treatment plant or degrade sludge quality excessively, or which differs significantly in quantity or quality from discharges under normal operations. 8.20.1 Accidental Discharge Protection: Each User shall provide protection from accidental or unusual discharges of prohibited materials or other substances regulated by these Rules and Regulations. Infrastructure necessary to prevent accidental discharge of prohibited materials shall be provided and maintained at the Customer or User's own cost and expense. 8.20.2 Notification Requirements: (a) Telephone Notification. In the case of any accidental or unusual discharge, it is the responsibility of the User to immediately telephone and notify the District and {00096389.DOC va} 35 the Service Provider providing sewage services of the incident. The notification shall include the location of discharge,type of waste, concentration and volume, and corrective actions. (b) Written Notice. Within five(5) days following an accidental or unusual discharge, the User shall submit to the District a detailed written report describing the cause of the discharge and the measures to be taken by the User to prevent similar future occurrences. Such notification shall not relieve the User of any expense, loss, damage, or other liability which may be incurred as a result of damage to the POTW, fish kills, or any other damage to person or property; nor shall such notification relieve the User of any fines, civil penalties, or other liability which may be imposed by these Rules and Regulations or other applicable law. (c) Notice To Employees. A notice shall be permanently posted on the User's bulletin board or other prominent place advising employees whom to call in the event of an accidental discharge. Employers shall ensure that all employees who may cause or suffer such an accidental discharge to occur are advised of the emergency notification procedure. 8.20.3 Slug Discharge Plan Requirements: [Reserved] 8.21 8.21 Hazardous Waste Discharge Notification. Industrial Users shall notify the District, the EPA Regional Waste Management Division Director, and the state hazardous waste authorities in writing of any discharge into the POTW of any substance which, if otherwise disposed of, would be considered a hazardous waste under 40 CFR Part 261. The specific information required to be reported and the time frames in which it is to be reported are found at 40 CFR §403.12(p). 8.22 Wastewater Contribution Permits. [Reserved] 8.23 Reporting Requirements For Significant Industrial Users. [Reserved] 8.24 Monitoring District Facilities. The District may require to be provided and operated at the User's own expense, monitoring facilities to allow inspection, sampling, and flow measurement of any discharges as necessary to determine compliance with the provisions of these Rules and Regulations. There shall be ample room in or near such sampling manhole or facility to allow accurate sampling and preparation of samples for analysis. The facility, sampling, and measuring equipment shall be maintained at all times in a safe and proper operating condition at the expense of the User. The sampling and monitoring facilities shall be provided in accordance with the District's requirements and all applicable local construction standards and specifications. {00096389.DOC v:1) 36 Construction shall be completed within such a time frame as the District shall specify by written notification. 8.25 Information Submittal, Inspection and Sampling. The District may require any User to submit information as necessary to determine compliance with the requirements of these Rules and Regulations. The District may inspect the facilities of any User to ascertain whether the requirements of these Rules and Regulations are being complied with. Persons or occupants of premises where wastewater is created or discharged shall allow the District or its representatives ready access at all reasonable times to all parts of the premises for the purposes of inspection, sampling,records examination and copying, or in the performance of any of their duties. The District,the Colorado Department of Public Health and Environment, and EPA shall have the right to set up on the User's property such devices as are necessary to conduct sampling, inspection, compliance monitoring and/or metering operations. Where a User has security measures in force which would require proper identification and clearance before entry into the User's premises,the User shall make necessary arrangements with security guards so that upon presentation of suitable identification,personnel from the District,the Colorado Department of Public Health and Environment, and EPA will be permitted to enter, without delay, for the purposes of performing their specific responsibilities. All records relating to compliance with pretreatment standards and requirements shall be made available to officials of the District, the Colorado Department of Health, and EPA upon request. 8.26 Wastewater Treatment. Users shall provide wastewater treatment as required to comply with the requirements of these Rules and Regulations, and shall achieve compliance with all national categorical pretreatment standards within the time limitations as specified by the federal pretreatment regulations. Any facilities required to pretreat wastewater to a level acceptable to the District shall be provided, operated, and maintained at the User's expense. 8.27 Confidential Information. Information and data on a User obtained from reports, questionnaires,permit applications,permits, monitoring programs, and inspections shall be available to the public or other governmental agency without restriction unless the User specifically designates and is able to demonstrate to the satisfaction of the District that the release of such information would divulge sales or marketing data, processes, or methods of production entitled to protection as "Confidential Business Information" of the User. Wastewater constituents and characteristics will not be recognized as confidential information. It shall be the User's obligation to stamp each page, which has been demonstrated to the District's satisfaction to contain trade secrets, with the words "Confidential Business Information,""Confidential Information," or "Confidential." A failure by the User to designate and identify any document in this manner {00096389.DOC v:I} 37 may result in the document losing its protection from disclosure as confidential business information. Confidential business information shall not be made available for inspection by the public but shall be made available upon request to governmental entities or agencies for uses related to these Rules and Regulations and the District's National Pollutant Discharge Elimination System and Colorado Discharge Pollutant System(NPDES/CDPS) Permit. Confidential business information shall not be transmitted to any governmental agency or entity for other uses by the District except upon written request and after a ten(10) day notification and right to object is given to the User. Such notification shall not be required in certain circumstances provided for in 40 CFR Part 2. If after a request for public inspection, a person or entity challenges the determination of any record to protection as confidential business information,the User shall cooperate,to the fullest extent possible and at User's own expense, with the District in the defense of the determination. At the request of the District the user shall, at the User's expense, provide a defense to such challenge. 8.28 Remedies For Noncompliance; Enforcement. 8.28.1 Notice of Violation: Whenever the District determines that any User has violated or is violating any provision of these Rules and Regulations or a Wastewater Contribution Permit issued or approved hereunder,the District may serve upon such User a verbal or written notice stating the nature of the violation(s). Where directed to do so by the notice, a plan for the satisfactory correction of the violation(s) shall be submitted to the District by the User,within a time frame as specified in the notice. 8.28.2 Administrative Orders: Whenever the District determines that any User has violated or is violating any provision of these Rules and Regulations, or any directives, orders, or permits issued or approved hereunder,the District may serve upon such User a written order stating the nature of the violations(s), and requiring that the User correct the violation(s) within a specified period of time; perform such tasks as the District determines are necessary for the User to correct the violations; or perform such tasks and submit such information as is necessary for the District to evaluate the extent of noncompliance or to determine appropriate enforcement actions to be taken. 8.28.3 Compliance Orders; Compliance Schedules: Whenever the District determines that any User has violated or is violating any provision of these Rules and Regulations, or any directives, orders or permits issued or approved hereunder,the District may serve upon the User a written order requiring that the User submit, within a time frame as specified in the notification, a plan (compliance schedule) for the satisfactory correction of such violation(s). The compliance schedule must represent the shortest schedule by which the User will provide additional treatment or perform such other tasks as will enable the User to consistently comply with applicable requirements. The schedule shall contain increments of progress in the form of dates for the commencement and completion of major events leading to compliance(e.g., Hiring an engineer, completing preliminary plans for pretreatment systems, (00096389.DOC v.1) 38 completing final plans, executing contracts for major components, commencing construction, completing construction). In no case shall an increment of progress exceed nine (9)months. Upon approval by the District,the compliance schedule will be issued to the User as an administrative order which contains the approved schedule milestones and any applicable reporting requirements. Issuance of a compliance schedule by the District does not release the User of liability for any violations. Not later than fourteen(14) days following each date in the schedule and the final date for compliance, the User shall submit a progress report to the District including, at a minimum, information on whether or not the User complied with the increment of progress to be met on such date and, if not, the date on which it expects to comply with this increment of progress,the reason(s) for delay, and the steps being taken by the User to return to the schedule established. 8.28.4 Suspension of Service: The District may suspend the wastewater treatment service when such suspension is necessary, in the opinion of the District, in order to stop an actual or threatened discharge which presents or may present an imminent or substantial endangerment to the health or welfare of persons, to the environment, causes pass through or interference or causes the District to violate any condition of its NPDES Permit. Any User notified of a suspension of the wastewater treatment service shall immediately stop or eliminate the discharge. In the event of a failure of the User to comply voluntarily with the suspension order,the District shall take such steps as deemed necessary, including immediate severance of the sewer connection,to prevent or minimize damage to the POTW System or endangerment to any individuals or the environment. The District shall reinstate the wastewater treatment service upon proof of the elimination of the non-complying discharge. A detailed written statement submitted by the User describing the causes of the harmful contribution and the measures taken to prevent any future occurrence shall be submitted to the District within fifteen(15)days of the date of occurrence. 8.28.5 Permit Revocation: [Reserved] 8.28.6 Penalties: Any User who is found to have violated any provision of these Rules and Regulations, or any orders or permits issued or approved hereunder, shall be subject to a penalty not to exceed, except as noted below,ten thousand dollars ($10,000) for such violation. Each day on which a violation occurs or continues shall be deemed a separate and distinct violation. In the case of violations of monthly or other long-term average discharge limitations, penalties may be assessed for each day in the period covered by the violations. In addition to the penalties provided herein,the District may recover reasonable attorney's fees, court costs, court reporter's fees, and other expenses of litigation by appropriate suit at law against the User found to have violated these Rules and Regulations, or the order or permits issued hereunder. Such penalties shall be in addition to any actual damages the District may incur because of such violations. Where a violation is found to have caused Interference or Upset, the maximum penalty of$10,000 per violation as described above may be increased as necessary to allow the (00096389.DOC v1) 39 District to recover any fines or penalties paid by the District for NPDES Permit violations due to the Interference or Upset. 8.28.7 Legal Action: If any person discharges sewage, industrial wastes or other wastes into the District's wastewater disposal system contrary to the provisions of these Rules and Regulations, or any orders or permits issued hereunder, the District's attorney may commence an action for appropriate legal and/or equitable relief in the District Court of this county. 8.28.8 Appeal and Hearing Procedure: Any User who is aggrieved by any enforcement action taken by the District pursuant to this Article 8.28 may within thirty (30) days of the receipt of notice of the determination, order, or finding being appealed request in writing that the District review the enforcement action. The request(Letter of Appeal) shall state all points of disagreement and objection to the determination, order, or finding. If the District reaffirms the action,the User may appeal this decision and request a hearing. (a) Hearing Request, Deadlines, Procedure and Related Matters [Reserved] 8.29 Charges and Fees. Charges and fees to be assessed against Users will be determined by the District and,where instituted,will be set at a level to allow the District to recover its costs for administering elements of the Pretreatment/Industrial Waste Control Program. Program elements for which charges and fees may be assessed include, but are not limited to,permit applications; monitoring, inspection, and surveillance activities; and general program administration. ARTICLE 9. CROSS-CONNECTION CONTROL AND BACKFLOW CONTROL POLICY AND REGULATIONS 9.1 General. 9.1.1 Policy : It is the intent of the District to protect the District Water System from contamination or pollution by backflow from a Service Provider's or Customer's internal distribution system or private water system, and to provide for the maintenance of a continuing program of cross connection control,which will systematically prevent the contamination or pollution of the District Water System as provided in Exhibit E hereto. 9.1.2 Responsibility: (a) The District may delegate the responsibility for implementing a cross connection control program in accordance with this Article and for enforcement thereof. If a backflow prevention device is required at a Connection Point or at the point of connection from any Service Provider's system to any Customer's premises for the protection of the District Water System,District shall give notice in writing to the Customer to install an approved {00096389.DOC v1) 40 backflow prevention device at each service connection to the premises. The Customer shall install an approved device or devices at the owner's own expense. (b) No provision of this article exempts the Customer from the cross connection control provisions for internal water distribution systems as contained in the Uniform Plumbing Code, which has been adopted by reference in Chapter 30 of this Code. 9.1.3 Service Provider Requirements. Every Service Provider shall adopt policies and regulations for cross-connection control and backflow control sufficient to: (a) To protect the District's Water System and the water systems of Service Providers from the possibility of contamination or pollution by backflow or backsiphonage. (b) To promote the elimination or control of existing cross- connections, actual or potential, between its Customers' potable water system(s) and non-potable water systems,plumbing fixtures and industrial piping systems. (c) To provide for the maintenance of a continuing program of cross- connection and backflow control, which will systematically and effectively prevent the contamination or pollution of any potable water system. ARTICLE 10. MISCELLANEOUS 10.1 Liability: 10.1.1 District Not Liable: No claim for damage shall be made against the District, and the District and its officials and employees shall not be liable by reason of damage resulting from,but not limited to, any of the following: breaking of any water or wastewater service line, supply line, main line,pipe, cock or meter by any employee of the District; failure of the water supply; shutting off or turning on water in the water main lines; the making of connections or extensions; damage caused by water running or escaping from facilities not owned by the District; damage to water heaters, boilers, or other appliances resulting from shutting water off, or from turning it on, or from inadequate, sporadic and excessive pressures; blockage in the system causing the backup of sewage; breakage of main lines by District personnel; interruption of water or wastewater service and the conditions resulting therefrom where said interruption of service is brought about by request of claimant, or by circumstances beyond the District's control; failure of District Facilities or Service Provider or Customer water and/or wastewater facilities to be located where the District's map indicates they should be; the shutting off of a sewer lift station and possible backflow resulting therefrom; failure to obtain access to isolation valves; or for taking certain actions with respect to the water or wastewater Systems of the District deemed necessary by the Board of Directors or its agents. This paragraph shall not relieve the District from liability for negligence of its employees, if such liability would otherwise have existed. The Service Provider is responsible to make these limitations known to their Customers at or before commencement of service. {00096389.DOC v:1} 41 • 1 10.1.2 District Not Responsible for Damages: These Rules and Regulations shall not be construed to hold the District in any manner responsible for any damages to persons or property resulting from any inspections as herein authorized or resulting from the issuance or denial of any permit or failure to approve any Agreement as herein provided, or resulting from the institution of court action as allowed by law, or the forbearance by the District to so proceed. 10.1.3 Officials Not Liable: Any District official or employee, charged with the enforcement of these Rules and Regulations, acting in good faith and without malice on behalf of the District in the discharge of his official duties, shall not thereby render himself or herself personally liable for any damages that may accrue to persons or property resulting from any such act or omission committed in the discharge of such duties. Any suit or proceeding instituted against such official or employee, stemming from any act or omission performed by him in the enforcement or attempted enforcement of any provision of these Rules and Regulations, shall be defended by the District until final termination of the proceedings, in such a manner as to be consistent with the District's resolution indemnifying such officials and employees. 10.1.4 Non-Liability for Work of Others: The District does not assume any liability for any work performed by others. No claim shall be made against the District or any of its officers or employees on account of errors of omission or commission made by the District's licensees or independent contractors. 10.1.5 Indemnity: The Service Provider(s) shall indemnify and hold harmless the District from any losses or damages or claims that may directly or indirectly be occasioned by the installation or operation of any of the Service Provider's facilities or that may arise out of or in connection with any claim against the District resulting from the installation or operation of the Service Provider's facilities or those of their customers. These indemnities shall include all costs for repair or replacement of facilities and all attorneys' fees incurred by the District in defending against such claims. 10.1.6 Non-Waiver: The foregoing indemnity provision,nor any provisions of any contract or other service agreement, shall not constitute a waiver by the District of the defense of sovereign immunity or the Colorado Governmental Immunity Act, or any other defenses it may have to an action against the District, its officials or employees, nor a waiver of its insurance coverage. 10.1.7 Notices and Written Submissions: Any notice, written submission, report or other documentation required under these Rules and Regulations or any Agreement shall be provided to the District by first class, United States mail ("Mail") or by facsimile followed by Mail, to the following: Resource Colorado Water and Sanitation Metropolitan District c/o Special District Management Services 141 Union Blvd., Suite 150 Lakewood, CO 80228 Phone: (303) 987-0835 Fax: (303) 987-2032 {00096389.DOC v:1} 42 With copies to: Gateway American Resources, LLC Consultant to Resource Colorado Water and Sanitation Metropolitan District 4643 S. Ulster Street, Suite 1300 Denver, CO 80237 Attention: Nicole Adams, P.E. Phone: (303) 843-9742 Fax: (303) 843-0143 McGeady Sisneros P.C. 1675 Broadway, Suite 2100 Denver, CO 80202 Attention: MaryAnn McGeady Phone: (303) 592-4380 Fax: (303) 592-4385 ARTICLE 11. PROVISIONS REGARDING MOSQUITO CONTROL SERVICES [RESERVED] ARTICLE 12. PROVISIONS REGARDING STREET IMPROVEMENTS [RESERVED] ARTICLE 13. PROVISIONS REGARDING EMPLOYEE AND PERSONNEL MATTERS [RESERVED] These Rules and Regulations are adopted effective July 18, 2005, as amended April 11, 2007 by the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District. {00096389.DOC v:1) 43 Exhibit A Schedule of Fees,Rates and Charges [RESERVED] System Development Fees [Reserved] Plant Investment Fees [Reserved] Connection Fees [Reserved] Service Rates and Charges [Reserved] Other Fees and Charges [Reserved] {00096389.DOC v:1} A-1 Exhibit B Connector Agreement for Wastewater Service [RESERVED] {00096389.OOO v:1} B-1 Exhibit C Pretreatment Discharge Standard to Limit the Discharge of Harmful Wastes into the District's Facilities: Grease Interceptors/Traps and Sand/Oil Interceptors/Traps References to customers in this Exhibit C shall mean service users of the District's Wastewater System pursuant to service agreements between the District and Service Providers. Where these provisions reference the District's right to inspect and enforce these Rules and Regulations, approve connections or otherwise inspect customer use of the Wastewater System, such reference shall not be construed to create a right in the District to provide water or wastewater service directly to individual customers or service users. The District's provision of Water and Wastewater Services shall at all times be pursuant to agreements with Service Providers and the District may apply and enforce these Rules and Regulations or cause the Service Provider to take such action on behalf of the District pursuant to these Rules and Regulations. GREASE INTERCEPTORS/TRAPS APPLICATION This Pretreatment Discharge Standard (PDS) for Food Service Operations defines the local limits, grease interceptor design requirements, and management practices for such facilities. Food service operations subject to this standard include, but are not limited to restaurants, commercial kitchens, cafeterias, food processors, grocery store deli and dairies, schools, fraternal organizations, churches, hospitals, daycare centers, or any other facilities which have the capability to engage in food preparation which are also discharging into a sewer connected to a wastewater treatment facility. This PDS applies to food service operations that: 1. utilize kitchen equipment that discharges oil and grease; or 2. discharge non-domestic waste exceeding the following local limits; or 3. are qualified by the Engineer of the Resource Colorado Water & Sanitation Metropolitan District("District")to fall under this category. LOCAL LIMITS Food Service Operations (hereafter known as customers) shall not discharge waste which at the point of discharge into a sewer contains: 1. oil and grease in a concentration that is in excess of 75 milligrams per liter as analyzed in a grab or continuous sample; 2. suspended solids in a concentration that is in excess of 350 milligrams per liter as analyzed in a grab or continuous sample; 3. 5-day biochemical oxygen demand (BOD5) in a concentration that is in excess of 350 milligrams per liter in a grab or continuous sample; 4. prohibited waste, restricted waste, special waste, as defined by local, state or federal regulations; or 5. storm water. {00096389.DOC v.1) C-1 GREASE INTERCEPTORS The oil and grease interceptor design shall adhere to the following requirements established by the District and shall be subject to approval by the District's Engineer. Oil and grease interceptors not able to achieve compliance with the District's standards shall be subject to modification and/or replacement. Grease interceptors are required to be installed and maintained by the customer. Variances Existing businesses not contributing significant quantities of oil and grease wastes to the collection system may apply for a variance to the grease interceptor requirement, subject to approval by the District. The variance shall apply strictly to the named business owner/operator located at the named business address, subject to an initial inspection and approval by the District. Businesses subject to the variance may include, but not limited to, delicatessens, sandwich shops, and pizza take outs, whereas other than the preparation of pre-cooked meals, no cooking would take place. Design and Installation Oil and grease interceptors must be approved by the District prior to installation. This is to ensure that the interceptor meets the District's sizing, design (see the following Detail Drawing PDS001A), and specification requirements as outlined below, as well as any applicable construction standards and plumbing codes. The following information must be submitted to the District's Engineer to obtain approval: • Detailed plans of interceptor and piping • Number and type of fixtures connected • Proposed interceptor location • Proposed interceptor size • Sizing calculations [Remainder of page intentionally left blank] (00096389.DOC v:1) C-2 Sizing Criteria for Food Grade Oil & Grease Interceptors The basic formula is: (turnover rate)x (categorical use factor(CUF))x 2.5 (gal. of water) x (seating capacity). The varying sizing applications have been broken into the following categories: Customer Category Sizing Formula Comments RESTAURANT/CAFETERIA 2.0 x 1.0 x 2.5 x Seating 1. Full or limited service with the capability (Equipment: one grill, one to serve or prepare 100 or more meals per fryer,one to three ovens.) day. 2. Plumbing fixtures: one pot sink,one 2 or 3 compartment sink,one hand sink,one mop sink, one floor sink,and one dishwasher. 3. For each food disposal and additional dishwasher that is directed to the Grease Interceptor, there will be a factor of .25 added to the CUF. 4. Equipment:For each additional"wok" stove, deep fryer, and grill,there will be a factor of.50 added to the categorical factor. 5. MINIMUM ACCEPTABLE INTERCEPTOR SIZE IS 750 GALLONS HOSPITALS/SCHOOLS 2.0 x.75 x 2.5 x 1. A value of .25 will be added to the bed/seating Categorical Use Factor for each dishwasher or garbage disposal directed to the Grease Interceptor above the number of one each. 2. A value of .50 will be added to the C.U.F. for each additional deep fryer or grill above the number of one each. 3. MINIMUM ACCEPTABLE INTERCEPTOR SIZE IS 750 GALLONS INSTITUTIONS/CARE 2.0 x 1.0 x 2.5 x bed/seating 1.A value of.25 will be added to the FACILITIES Categorical Use Factor for each dishwasher or garbage disposal directed to the Grease Interceptor above the number of one each. 2. A value of.50 will be added to the C.U.F.for each additional deep fryer or grill above the number of one each. 3. Minimum Acceptable Interceptor Size is 750 Gallons {00096389.DOC v:1) C-3 Customer Category Sizing Formula Comments DELI STORES (Hours of operation)x 1. For each of the following conditions, a SUPERMARKETS, 4.0 x 10 factor of.50 is to be added to the C.U.F. value BUTCHERS, and of 4.0 when dealing with meat cutting: BAKERIES I. more than one floor drain (with meat cutting 2. complete cooking of meats capabilities) 2. When dealing with retail-type bakeries or supermarkets that have bakery facilities in addition to a deli and/or meat cutting, the bakery shall be sized separately using the same formula as above with the dejection of the .50 adjustment for the cooking of meats. 3. There is an adjustment of an addition of L55 to the C.F.U. when dealing with bakeries that are wholesale only, or are of the industrial classification. 4. Minimum Acceptable Interceptor Size is 750 Gallons FOOD COURTS and 1. Each case shall be sized by separating "COMMON" TRAPS each of the potential contributors into its own category then combining the operations for a total trap size. 2. Minimum Acceptable Interceptor Size is 750 Gallons COMMISARIES, 1. These must be sized on an individual basis. COMMERCIAL However, it should be noted that the minimum KITCHENS and acceptable size for a commercial kitchen shall CATERERS be 1500 gallons FOOD 1. Each case shall be evaluated separately. MANUFACTURERS Whenever a manufacturing operation is evaluated,it must be noted that a Control Manhole will be required in most cases in addition to a minimum of 1500 gallon Grease Connections to Grease Interceptors An operator of a food service operation shall have the following fixtures connected to the grease interceptor system: a. sinks used for washing pots, pans, dishes, cutlery and kitchen utensils; b. drains serving self-cleaning exhaust hoods installed over commercial cooking equipment; c. drains serving commercial cooking equipment that discharges oil and grease; d. drains serving any garbage compactor used to compact waste that may contain, or be contaminated with, food waste; or e. other fixtures that discharge wastewater containing oil and grease. The following fixtures shall not be connected to a grease interceptor: a. toilets,urinals, clothing washers and hand sinks; b. roof drains or other storm drains. {00096389.DOC v:1} C-4 1) Detail Drawing PDS001A a) Diagram of an Approved Food Grade Oil & Grease Interceptor MANHOLE COVID[ N--2,V—►j , P -- .. Mrt I suzv BAFFLE wAu. \i wATnRLN'H. —r oiTO PUT \\ 1 I / srwEu I �er�n surmnr—'4r' man nawoa 4?j ` INTERCEPTOR SPECIFICATIONS 1. Concrete lid and base of interceptor shall be a minimum of 8"thick. Sidewalls shall be a minimum of 5"thick. Baffle wall shall be a minimum of 3"thick. Submit variances to the District for approval. 2. Baffle wall shall extend a minimum of 10"above water level. 3. PVC screw plug clean outs shall be taken to grade and protected by a cast iron lamp hole cover with a locking lid marked "sewer". Lamp hole covers shall be secured in a square concrete pad. The concrete pad shall extend 12" beyond the center of each cleanout and have a depth equal to the lamp hole cover. Concrete pad to be poured at time of final grade. 4. Inlet invert shall be a minimum of 2"higher than outlet invert. 5. Vent may be cast iron or PVC, schedule 40, taken to 6" above roof line or grade depending on location. 6. Interceptor shall be bedded in a minimum of 6"of 3/4"crushed rock. 7. Grease capacity rated for large compartment only. Secondary compartment has volume equal to 1/3 of total capacity. 8. No bolt down covers allowed without permission from the District. 9. Within trap,all pipe and fittings shall be solvent welded schedule 40 PVC min. 3"diameter. 10. Fill with clean water prior to start up of system. 11. Gray water use only; black water shall be carried by separate sewer. 12. A sampling tee shall be located following the outlet of an interceptor prior to discharge of other waste in the customer's collection line. The tee shall be a minimum of four inches (4") in diameter, installed at right angles to and vertically above the flow of the sewer pipe. Location shall be readily and easily accessible at all times {00096389.DOC v:1} C-S General Specifications For Grease Interceptors PRE-CAST CONCRETE INTERCEPTORS Pre-cast interceptors shall conform to the size, shape, form, and details shown on the plans. Concrete for pre-cast units shall be Class A concrete defined in the following specifications. All units shall be adequate to withstand AASHTO H-2O (44.30% impact, soil weight = 130 pcf, equivalent fluid pressure= 55 pcf) loading and shall be designed in accordance with ACI 301 and ASTM C-858. All structures not specified in the standard detail shall be submitted to the District for approval as a shop drawing at least 3 weeks prior to installation A flexible plastic joint sealing compound shall be used for any tongue and the groove joints to provide a watertight joint. The performing flexible plastic joint sealing compound shall meet Federal Specifications SS-S-210 and AASHTO M198 75 1, Type B. The sealing compound shall show no visible deterioration when immersed separately in a solution of acid, alkalize and saturated hydrogen sulfide for a period of 30 days. The plastic gasket shall be "Ram-Nek" as manufactured by Henry Co. or an approved equal. All piping within these interceptors shall be solvent weld PVC — SCH 40 DWV. Vertical influent and effluent piping shall be secured to the interceptor walls with non-corroding support brackets. Interceptors installed in a parking lot or a roadway shall have manhole rings and covers raised to grade by using pre-cast concrete riser rings that are a minimum of 6" wide. Cast-In-Place Concrete Interceptors: All cast-in-place grease interceptors shall be designed using the same loading criteria as for pre-cast interceptors. Each interceptor shall be designed by a registered Professional Engineer. For each cast-in-place interceptor, there shall be three sets of wet stamped structural plans submitted to the District for approval. MANHOLE RINGS AND COVERS Manhole rings and covers shall be cast iron in accordance with ASTM A-48, Class 35 B. Twenty- four inch diameter assemblies shall be Neenah-1706, or approved equal, style with a combined weight of not less than 400 pounds (approx. distribution: Frame 235 lbs., Lid 165 lbs.) Covers shall be checkered with letters designating"sewer". All bearing surfaces shall be machined. Manhole lids shall be manufactured with a 1" wide elongated oval lifting hole. Manhole lids with more than one lifting hole shall not be accepted. Rim elevation shall be 2" to 4" above grade in open space and shall be 0"to V2"below grade of any finished surface. LOCATION A grease interceptor must be located in a readily and easily accessible area that will not be blocked by vehicular traffic, structural members, or submerged by storm water. {00096389.DOC v:1} C-6 MAINTENANCE The customer shall maintain all grease interceptors installed in connection with the food service operation in accordance with the manufacturer's recommendations for proper function. The grease interceptor must be evacuated entirely when the depth of waste grease in the first pit is 25% of the total depth of the interceptor(e.g. if the operating depth is 30 inches, the interceptor must be pumped when grease layer is 7.5 inches). All grease interceptors must be evacuated at a minimum of every 3 months unless, grease accumulation (25% of depth) requires more frequent evacuation or, subject to approval by the District, it is determined that less frequent pumping is sufficient. Customers shall not dispose of oil or grease from a grease interceptor to a sewer. All cleaning or grease removal shall be accomplished by employing vactor trucks and the contents shall be hauled and disposed of properly and legally off-site and in accordance with all Federal and Local laws and ordinances. Customers must not use or permit the use of chemical agents, enzymes, bacteria, solvents, hot water or other agents to facilitate the passage of oil and grease through a grease interceptor. Use of these products can cause grease to pass through the interceptor and reaccumulate downstream causing costly sewer main blockages. BEST MANAGEMENT PRACTICES Existing sources (entities established prior to the enforcement of this standard) not connected to grease interceptors or those sources connected to in-line interior grease traps, which contribute significant quantities of oil and grease wastes, shall be required to implement Best Management Practices (BMPs). In the event BMPs do not successfully reduce quantities of oil and grease wastes being introduced to the collection system, those sources shall be subject to installation of approved grease interceptors. BMP inspections shall include,however are not limited to, the following: 1. Identification and description of plumbing fixtures 2. Identification of facility grease reduction procedures 3. Identification of facility grease rendering container,where applicable 4. Identification of in-line interior grease trap, where applicable 5. Verification of in-line interior grease trap maintenance records, where applicable 6. Identification of bacterial or enzymatic uses 7. Facility seating capacity 8. Facility hours of operation 9. Facility schedule of routine drain line maintenance OUTDOOR GARBAGE COMPACTORS An owner of an outdoor garbage compactor installation connected to a sewer must install works as necessary to prevent rainwater from entering the drain connected to the sewer. SAMPLING At the request of the District, the customer shall confirm the operation of any grease interceptor via analytical testing. This testing shall be performed by an accredited laboratory, and paid for by the customer. {00096389.DOC v.1) C-7 RECORD KEEPING AND RETENTION Customers must keep a record of all grease interceptor inspection and maintenance activities at the facility where the interceptor is located. Such records shall remain on file for no less than two years and be readily available for inspection by the District. The records shall contain the following: a. the date of inspection or maintenance; b. the maintenance conducted; c. the type and quantity of material removed from the grease interceptor; and d. the location of disposal of the material removed from the grease interceptor. INSPECTIONS The District shall inspect all grease interceptors to ensure compliance with the District's requirements. The inspection frequency shall be, at a minimum, every 6 months, unless the District determines, at its discretion, more or less frequent inspections are required. The inspection criteria shall include,however is not limited to,the following: 1. Location and accessibility 2. Approximate capacity 3. Identification of inlet and outlet compartments,where applicable 4. Identification of inlet and outlet piping systems 5. Identification of bacterial or enzymatic uses 6. Approximate depth of accumulated solids and grease layer 7. Verification of maintenance records The District shall provide written notices to all businesses following inspections. Those businesses determined to be in violation of the District's requirements shall be provided a written notice of non- compliance. Deficiencies found during the inspection shall be corrected by the customer within two weeks of the date of the inspection unless other arrangements are made with the District. Follow-up inspections shall be completed to ensure compliance. Failure to comply may result in fines or may cause the sewer service to the premises in question to be terminated. {00096389.DOC v.1), C-8 SAND/OIL REMOVAL OPERATIONS APPLICATION The following standard for sand/oil removal operations defines the local limits, sand/oil interceptor design requirements, and management requirements for waste discharged from mechanical repair shops, automobile service stations, garden nurseries, warehouses, oil and lube centers, car washes/detail centers, parking garages, machine shops, paint spray booths, and other facilities (where the removal of inert solids and/or mechanical lubricants is a primary or supporting operation) with the potential to discharge into a sewer connected to a wastewater treatment facility. This standard applies to sand/oil removal operations that: 1. utilize hydraulic washing equipment or mechanical lubricants and/or floor drains that collect and discharge inert solids and oils; or 2. discharge non-domestic waste exceeding the following local limits; or 3. are qualified by the District's Engineer to fall under this category. LOCAL LIMITS Sand/Oil removal operations (hereafter known as customers) shall not discharge waste, which at the point of discharge into a sewer, contains: 4. oil and grease in a concentration that is in excess of 75 milligrams per liter as analyzed in a grab or continuous sample; 5. prohibited waste, restricted waste, special waste, as defined by local, state or federal regulations 6. storm water. SAND/OIL INTERCEPTORS Sand/Oil interceptors are required to be installed and maintained by the customer. Sand/oil interceptor design and installation shall conform to the following standards. Sand/oil interceptors not able to achieve compliance with the District's standards shall be subject to modification and/or replacement. Variances Existing businesses not contributing significant quantities of inert solids or oil wastes to the collection system may apply for a variance to the sand/oil interceptor requirement, subject to approval by the District. The variance shall apply strictly to the named business owner/operator located at the named business address, subject to an initial inspection and approval by the District. Design and Installation Sand/oil interceptors must be approved by the District prior to installation. This is to ensure that the interceptor meets the District's sizing, design (see the following Detail Drawing PDS002A), and specification requirements as outlined below, as well as any applicable construction standards and plumbing codes. The following information must be submitted to the District's Engineer to obtain approval: {00096389.DOC v:1} C-9 • Detailed plans of interceptor and piping • Number and type of fixtures connected • Proposed interceptor location • Proposed interceptor size • Sizing calculations Sizing Criteria for Sand/Oil Interceptors The basic formula is: (building surface area in sq. ft.) x (ratio of interceptor capacity (cu.ft.) to building surface area in sq.ft.). Customer Category Sizing Formula Comments Steam Cleaning,Truck Building Area sq.ft.x 1 cu.ft./15 sq ft 1. Minimum sizes is 750 Washes,Heavy Equipment gallons Washes,Garden Nurseries, Automatic Car Washes Manual Car Wash, Building Area sq.ft.x 1 cu.ft./75 sq.ft. 1. Minimum sizes is 750 Automotive Service Garages gallons Machine Shop Building Area sq.ft. x 1 cu.ft./100 sq.ft. 1. Minimum sizes is 750 gallons Paint Spray Booths Building Area sq.ft.x 1 cu.ft./250 sq.ft. 1. Minimum sizes is 750 gallons Printers Building Area sq.ft.x 1 cu.ft/300 sq.ft. 1. Minimum sizes is 750 gallons Warehouses, Parking Garage Building Area sq.ft.x 1 cu.ft/2000 sq.ft. 1. Minimum sizes is 750 (where floors are to be gallons washed) Parking Garage (where Building Area sq.ft.x 1 cu.ft/3000 sq.ft. 1. Minimum sizes is 750 tenants cars are to be washed) gallons Parking Garage (no water Building Area sq.ft.x 1 cu.ft/4000 sq.ft. 1. Minimum sizes is 750 outlets except fire sprinklers) gallons Connections to Sand/oil Interceptors Customers shall have the following fixtures connected to the sand/oil interceptor system: f. Floor drains, sinks for washing parts/equipment, drains sewing automatic washing equipment or g. Other fixtures that discharge wastewater containing sand and/or oil. The following fixtures shall not be connected to a sand/oil interceptor: a. toilets, urinals, kitchen sinks,hand sinks, dishwashers, clothing washers; b. roof drains or other storm drain. (00096389.DOC v:I) C-l0 Detail Drawing PDS002A Diagram of an Approved Sand/Oil/Water Separator VENT MANHOLE DUAL FACING 24„ COVER \ CLEANOUTS [ja `mm'm41 45, CAP _WATER LEVEL XL NLET� SANITARY TEE LET ER-+►- X / SUPPORT BRACKET 4� _G a0 fa' — BAFFLE WALL 1. Concrete lid and base of interceptor shall be a min. of 8" thick. Side walls shall be a min. of 5"thick. Baffle wall shall be a min. of 3" thick. Submit variances to the District for approval. 2. Top of baffle wall shall match water level. 3. PVC screw plug clean outs shall be taken to grade and protected by a cast iron lamp hole cover with a locking lid marked "sewer". Lamp hole covers shall be secured in a square concrete pad. The concrete pad shall extend 12" beyond the center of each cleanout and have a depth equal to the lamp hole cover. Concrete pad to be poured at the time of final grade. 4. Inlet invert shall be a min. of 2" higher than the outlet invert. 5. Vent may be cast iron or PVC, Schedule 40, taken to 6" above roof line or grade depending on location. 6. Interceptor shall be bedded in a min. of 6" of 3/4" crushed rock. 7. Secondary compartment has volume equal to 1/3 of total capacity. 8. No bolt down covers allowed without permission of the District. 9. Within separator, all pipe and fittings shall be solvent welded Schedule 40 PVC min. 3" diameter. 10. Walls and bottom reinforced throughout w/2x16 6/10 remesh. 11. Fill and clean water prior to start up of system. 12. Gray water use only; black water shall be carried by separate sewer. 13. A sampling tee shall be located following the outlet of an interceptor prior to discharge of other waste in the customer's collection line. The tee shall be a minimum of 4 inches in diameter, installed at right angles to and vertically above the flow of the sewer pipe. Location shall be readily and easily accessible at all times. {00096389.DOC v:1} C-11 General Specifications For Sand/oil Interceptors PRE-CAST CONCRETE INTERCEPTORS Pre-cast interceptors shall conform to the size, shape, form, and details shown on the plans. Concrete for pre-cast units shall be Class A concrete defined in the following specifications. All units shall be adequate to withstand AASHTO H-2O (44.30% impact, soil weight = 130 pcf, equivalent fluid pressure = 55 pcf) loading and shall be designed in accordance with ACI 301 and ASTM C-858. All structures not specified in the standard detail shall be submitted to THE DISTRICT for approval as a shop drawing at least 3 weeks prior to installation A flexible plastic joint sealing compound shall be used for any tongue and the groove joints to provide a watertight joint. The performing flexible plastic joint sealing compound shall meet Federal Specifications SS-S-210 and AASHTO M198 75 1, Type B. The sealing compound shall show no visible deterioration when immersed separately in a solution of acid, alkalize and saturated hydrogen sulfide for a period of 30 days. The plastic gasket shall be "Ram-Nek" as manufactured by Henry Co. or an approved equal. All piping within these interceptors shall be solvent weld PVC — SCH 40 DWV. Vertical influent and effluent piping shall be secured to the interceptor walls with non-corroding support brackets. Interceptors installed in a parking lot or a roadway shall have manhole rings and covers raised to grade by using pre-cast concrete riser rings that are a minimum of 6"wide. Cast-In-Place Concrete Interceptors: All cast-in-place sand/oil interceptors shall be designed using the same loading criteria as for pre-cast interceptors. Each interceptor shall be designed by a registered Professional Engineer. For each cast-in-place interceptor, there shall be three sets of wet stamped structural plans submitted to the District for approval. MANHOLE RINGS AND COVERS Manhole rings and covers shall be cast iron in accordance with ASTM A-48, Class 35 B. Twenty- four inch diameter assemblies shall be Neenah-1706, or approved equal, style with a combined weight of not less than 400 pounds (approx. distribution: Frame 235 lbs., Lid 165 lbs.) Covers shall be checkered with letters designating "sewer". All bearing surfaces shall be machined. Manhole lids shall be manufactured with a 1" wide elongated oval lifting hole. Manhole lids with more than one lifting hole shall not be accepted. Rim elevation shall be 2"to 4" above grade in open space and shall be 0"to %]" below grade of any finished surface. LOCATION A sand/oil interceptor must be located in a readily and easily accessible area that will not be blocked by vehicular traffic or structural members. {00096389.DOC v:1} C-12 MAINTENANCE The customer shall maintain all sand/oil interceptors in accordance with the manufacturer's recommendations for proper function. Customers must not permit oil to accumulate in excess of the lesser of six inches or 25% of the wetted height of the sand/oil interceptor. Customers must not permit sand to accumulate to a height greater than 12 inches below the inlet sanitary tee discharge point. Customers shall not dispose of sand or oil from a sand/oil interceptor to a sewer. All cleaning or sand/oil removal shall be accomplished by employing vactor trucks and the contents shall be hauled and disposed of properly and legally off-site and in accordance with all Federal and Local laws and ordinances. BEST MANAGEMENT PRACTICES: Existing sources (entities established prior to the enforcement of this standard) not connected to sand/oil interceptors which contribute significant quantities of inert solids and/or oils, shall be required to implement Best Management Practices (BMPs). In the event BMPs do not successfully reduce quantities of inert solid or oil wastes being introduced to the collection system, those sources shall be subject to installation of approved sand/oil interceptors. BMP inspections shall include, however are not limited to,the following: 1. Identification and description of plumbing fixtures 2. Identification of facility process 3. Identification of sand/oil reduction procedures 4. Identification of facility sand and oil rendering containers,where applicable 5. Verification of used oil evacuation records (including date and contracted hauler's name and contact information), where applicable 6. Facility square footage 7. Facility schedule of routine drain line maintenance SAMPLING At the request of the District,the customer shall confirm the operation of any sand/oil interceptor via analytical testing. This testing shall be performed by an accredited laboratory, and paid for by the customer. RECORD KEEPING AND RETENTION Customers must keep a record of all sand/oil interceptor inspection and maintenance activities at the facility where the interceptor is located. Such records shall remain on file for no less than two years and be readily available for inspection by the District. The records shall contain the following: a. the date of inspection or maintenance; b. the maintenance conducted; c. the type and quantity of material removed from the sand/oil interceptor; and d. the location of disposal of the material removed from the sand/oil interceptor. (00096389.DOC v:I} CA 3 INSPECTIONS The District shall inspect all interceptors to ensure compliance with the District's requirements. The inspection frequency shall be, at a minimum, every 6 months, unless the District determines, at its discretion, more or less frequent inspections are required. The inspection criteria shall include, however is not limited to,the following: 8. Location and accessibility 9. Approximate capacity 10. Identification of inlet and outlet compartments, where applicable 11. Identification of inlet and outlet piping systems 12. Approximate depth of accumulated solids and oil layer 13. Verification of maintenance records The District shall provide written notices to all businesses following inspections. Those businesses determined to be in violation of the District's requirements shall be provided a written notice of non- compliance. Deficiencies found during the inspection shall be corrected by the customer within two weeks of the date of the inspection unless other arrangements are made with the District. Follow-up inspections shall be completed to ensure compliance. Failure to comply may result in fines or may cause the sewer service to the premises in question to be terminated. {00096389.DOC v:1} C-14 Exhibit D District Design Standards and Standards and Requirements for Service Providers [Reserved] {00096389.DOC v:1) D-1 Exhibit E Standards for Cross-Connection Control and Backflow Control Policy and Regulations 1. Definitions: When not clearly otherwise indicated by the context, the following words and phrases in this Article have the following meanings. a. Approved: Accepted by the public works department as meeting the applicable specification stated or cited in this article, or as suitable for the proposed use. b. Auxiliary water supply: Any water supply on or available to the premises other than the District approved public potable water supply. These auxiliary waters may include water from another purveyor's public potable water supply or any natural source such as a well, spring,river, stream,pond, lake, etc., or"used waters"or"industrial fluids." These waters may be polluted or contaminated or may be objectionable and constitute an unacceptable water source over which the District does not have sanitary control. c. Backflow: The undesirable reversal of the direction of flow of the water or mixtures of water and other liquid, gases, or other substances into the distribution pipes of the potable water supply from any source or sources caused by backpressure and/or back-siphonage. d. Back-pressure: The backflow of water or other contaminated fluids caused by a pump, elevated tank, boiler or other means that could create pressure within the Customer's or Service Provider's system greater than the District supply pressure. e. Backflow prevention device: Any device,method, or type of construction designed to prevent backflow or back-siphonage into the public water supply by isolating the Customer's or Service Provider's water system from the public water system. f. Air-gap: The unobstructed vertical distance through the free atmosphere between the lowest opening from any pipe or faucet supplying water to a tank,plumbing fixture, or other device and the flood level rim of said vessel. An approved air-gap will be at least double the diameter of the supply pipe, measured vertically, above the top of the rim of the vessel; and, in no case less than one inch. When an air-gap is used at the service connection to prevent the contamination or pollution of the public potable water system, an emergency bypass shall be installed around the air-gap system and an approved reduced pressure principle device will be installed in the bypass system. g. Double check valve assembly: An assembly of two independently operating approved check valves with tightly closing shut-off valves on each side of the check valves,plus properly located test cocks for the testing of each check valve. The entire assembly shall meet the design and performance specifications and approval of a recognized and District- approved testing establishment for backflow prevention devices. To be approved,these devices must be readily accessible for in-line testing and maintenance. h. Reduced pressure principle device: An assembly of two independently operating approved check valves with an automatically operating differential relief valve {00096389.DOC v:1} E-1 between the two check valves,tightly closing shut-off valves on either side of the check valves, plus properly located test cocks, for the testing of the check and relief valves. The entire assembly will meet the design and performance specifications and approval of a recognized and District-approved testing laboratory for backflow prevention assemblies. The device will operate to maintain the pressure in the zone between the two check valves at a level less than the pressure on the public water supply side of the device. At cessation of normal flow, the pressure between the two check valves will be less than the pressure on the public water supply of the device. In case of leakage of either of the check valves, the differential relief valve will operate to maintain the reduced pressure in the zone between the check valves by discharging to the atmosphere. When the inlet pressure is two pounds per square inch or less,the relief valve will open to the atmosphere. To be approved,these devices must be readily accessible for in-line testing and maintenance, and be installed in a location where no part of the device will be submerged. i. Back-siphonage: The backflow of water or other liquids, mixtures or substances into the distribution pipes of a potable water supply system from any source other than its intended source caused by the sudden reduction of pressure in the potable water supply system. j. Certified inspector and tester: Any person who has passed a state approved or sponsored testing and inspection course, and who is listed by the state as a certified inspector/tester. k. Check valve: A self-closing device which is designed to permit the flow of fluids in one direction and to close if there is a reversal of flow. 1. Colorado Department of Health Cross Connection Control Manual: A manual published by the state addressing cross connection control practices, which will be used as a guidance document for the city in implementing a cross connection control program. m. Compliance period: The time between the receipt by the Customer of a notice from the District or designee thereof to install, test, or repair a backflow prevention assembly and the day upon which such installation, testing, or repair shall be completed or ready for inspection by the District or a designee thereof. n. Contamination: Any impairment of the quality of the potable water by pollution from sewage, industrial fluids or waste liquids, compounds or other materials to a degree which creates an actual hazard to the public health through poisoning or through the spread of disease. o. Critical level: The critical level C-L or C/L marking on a backflow prevention device or vacuum breaker which is a point conforming to approved standards and established by the testing laboratory(usually stamped on the device by the manufacturer), which determines the minimum elevation above the flood-level rim of the fixture or receptacle served at which the device may be installed. When a backflow prevention device does not bear a critical level marking, the bottom of the vacuum breaker, combination valve, or the bottom of any such approved device shall constitute the critical level. {00096389.DOC v:1} B-2 p. Cross connection: Any physical arrangement whereby a public water supply is connected, directly or indirectly, with any other water supply system, sewer, drain, conduit,pool, storage reservoir,plumbing fixture, or other device which contains, or may contain, contaminated water, sewage, or other waste or liquid of unknown or unsafe quality which may be capable of imparting contamination to the public water supply as a result of backflow. Bypass arrangements,jumper connections, removable sections, swivel or changeover devices, and other temporary or permanent devices through which, or because of which, backflow could occur are considered to be cross connections. q. Cross connections, controlled: A connection between a potable water system and a nonpotable water system with an approved backflow prevention device properly installed that will continuously afford the protection commensurate with the degree of hazard. r. Flood-level rim: The edge of the receptacle from which water overflows. s. Hazard, degree of: The term derived from an evaluation of the potential risk to public health and the adverse effect of the hazard upon the public potable water system. t. Hazard, health: Any condition, device, or practice in the water supply system and its operation which could create, or in the judgment of the District, may create a danger to the health and the well being of the water consumer. An example of a health hazard is a structural defect, including cross connections, in a water supply system. u. Hazard,plumbing: A plumbing type cross connection in a consumer's potable water system that has not been properly protected by a vacuum breaker, air-gap separation or backflow prevention device. Unprotected plumbing type cross connections are considered to be a health hazard. v. Hazard, pollutional: An actual or potential threat to the physical properties of the water system or to the potability of the public or the consumer's potable water system which would constitute a nuisance or be aesthetically objectionable or could cause damage to the system or its appurtenances,but would not be dangerous to health. w. Hazard, system: An actual or potential threat of severe damage to the physical properties of the public potable water system or the consumer's potable water system or of a pollution or contamination which would have a protracted effect on the quality of the potable water in the system. x. Industrial fluids system: Any system containing a fluid or solution which may be chemically, biologically or otherwise contaminated or polluted in a form or concentration such as would constitute a health, system,pollutional or plumbing hazard if introduced into an approved water supply. This may include, but not be limited to, polluted or contaminated waters; all types of process water and "used waters"originating from the public water system which may have deteriorated in sanitary quality; chemicals in fluid form; cooling tower and/or cooling towers that are chemically or biologically treated or stabilized with toxic substances; contaminated natural waters such as from wells, springs, streams, rivers, lakes, dams, ponds, retention pits, irrigation canals or systems, etc.; oils, gases, glycerin, paraffins, caustic and acid {00096389.DOC v.1} E-3 solutions and other liquid and gaseous fluids used in industrial or other purposes or for fire- fighting purposes. y. Multistory building: Any building having two or more levels, excluding the basement, or over forty feet in height. Single family units are excluded from this definition. z. Nonpotable water: Water that is not safe for human consumption or that is of questionable potability. as Pollution: The presence of any foreign substance (organic, inorganic, radiological, or biological) in the water that may degrade the water quality so as to constitute a hazard or impair its usefulness. bb. Potable water: Water free from impurities in amounts sufficient to cause disease or harmful physiological effects. The bacteriological, chemical, and radiological quality shall conform with state drinking water regulations. cc. Submerged inlet: A water pipe or extension thereto from the public water supply terminating in a tank, vessel, fixture or appliance which may contain water of questionable quality, waste or other contaminant and which is unprotected against backflow. dd. Vacuum: Any pressure less than that exerted by the atmosphere. ee. Vacuum breaker: Atmospheric nonpressure type: a vacuum breaker designed so as not to be subjected to static line pressure or installed where it would be under pressure for not more than twelve hours in any twenty-four-hour period. ff. Vacuum breaker: Pressure type: a vacuum breaker designed so as not to be subjected to static line pressure. gg. Water service connection: The terminal end of a Service Provider's service connection from the Service Provider's water system, i.e., at the curb stop shut-off valve, property line, or meter. There will be no unprotected takeoffs from the service line ahead of any meter or backflow prevention device located at the point of delivery to the Service Provider's or Customer's water system. Service connection will also include water service connection from a fire hydrant and all other temporary or emergency water service connections from the public potable water system. 2. Requirements. a. Water Systems of Service Providers: Service Provider water systems consist of the source and distribution facilities of their water system to the point of connection of the Customer's system up to the District's Water System. The source includes all components of the facilities utilized in the production, treatment, storage, and delivery of water to the Service Provider's distribution system. The distribution system includes the network of conduits used for the delivery of water from the source to the Customer's water service connection. {00096389.DOC v:1} E-4 b. Plan approval: Service Providers shall adopt requirements setting forth the following: i. All building plans involving water/waste water service, plumbing plans for additions or alterations to existing plumbing systems, and/or irrigation system installation submitted to a planning or building department and shall be reviewed by the public works department and approved prior to the issuance of a building permit. ii. Submitted plans must show: (1) Water service type, size and location. (2) Meter size and location. (3) Backflow prevention assembly size, type and location. (4) Fire sprinkling systems service line, size and type of backflow prevention assembly. c. Installation: Service Providers shall adopt requirements for installation of backflow prevention devices as follows: i. An approved backflow prevention device will be installed at or near the property line, before the first branch line leading off the service line wherever any of the following conditions exist: (1) In the case of premises having an auxiliary water supply which is not or may not be of safe bacteriological or chemical quality and which is not acceptable as an additional source by the Service Provider, the public water system will be protected against backflow from the premises by installing a backflow prevention device in the service line appropriate to the degree of hazard. (2) In the case of premises in which any industrial fluids or any other objectionable substance is handled in such a fashion as to create an actual or potential hazard to the public water system,the public water system shall be protected against backflow from the premises by installing a backflow prevention device in the service line appropriate to the degree of hazard. This will include the handling of process waters and waters originating from the public water system which have been subject to deterioration in quality. (3) In the case of premises having internal cross connections that cannot be permanently corrected and controlled, or having intricate plumbing and piping arrangements, or where entry to all portions of the premises is not readily accessible for inspection purposes making it impracticable or impossible to ascertain whether or not dangerous cross connections exist,the public water system shall be protected against backflow from the premises by installing a backflow prevention device in the service line. {00096389.DOC v:1) E-5 ii. Backflow prevention devices are to be installed in an accessible location to facilitate inspection,testing and maintenance. Adequate drainage area for the device must be provided for in the event that water is released. iii. All connections to the Service Provider's water system, including all existing connections, shall conform or be brought into conformance with the requirements of this chapter within one year of adoption of this chapter. iv. All backflow prevention assemblies shall be installed downstream of the water meter in accordance with the installation details contained in the manuals referenced in Article v. Before installing a backflow prevention assembly, pipelines shall be thoroughly flushed to remove foreign material. vi. Backflow prevention valves shall not be used as the inlet or outlet valve of the water meter. Test cocks shall not be used as supply connections. vii. In order to ensure that backflow prevention assemblies continue to operate satisfactorily,it will be necessary that they be tested by a Colorado State Certified Cross- Connection Control Technician approved by the Service Provider, at the time of installation, and no less than annually thereafter. Such test shall be conducted in accordance with the Foundation for Cross-Connection Control and Hydraulic Research performance standards and field test procedures as directed by the Colorado Department of Health. The backflow assembly test results,plumbing permit and test permit number shall be supplied to the public works department within ten days of the test. viii. The Service Provider will inspect all containment installations and the District may inspect the same upon request. ix. All costs for design, installation, maintenance, repair and testing shall be borne by the Customer. x. All fire sprinkling lines shall have a minimum protection of an approved double check valve for containment of the system. xi. All glycol (ethylene or propylene) or antifreeze systems shall have an approved reduced pressure principal assembly for containment. xii. Dry fire systems shall have an approved double check valve installed upstream of the air pressure valve. xiii. Backflow prevention assemblies shall be installed and inspected in accordance with the codes in Article_ [Reserved]. xiv. Backflow prevention assembly installations shall be inspected and approved for use by the Service Provider and upon request,the District. Inspections must be scheduled at least twenty-four hours in advance of the desired inspection time. {00096389.DOC v:1} E-6 d. Standards: Backflow prevention devices shall adhere to the following standards: i. Any backflow prevention assembly required herein shall be of a model and size approved by the Service Provider. The term approved backflow prevention assembly shall mean an assembly that has been manufactured in full conformance with the standards established by the codes in Article_ [Reserved]. ii. Backflow prevention assemblies currently installed which are not approved shall be replaced with approved assemblies properly installed. iii. Backflow assemblies used on fire lines shall have O.S. and Y. valves listed by Underwriter Laboratories (UL), Factory Manual(FM) and the National Fire Protection Association. iv. Backflow prevention devices currently installed that are not approved shall be replaced with an approved device within one year of adoption of this chapter, unless the device fails an annual operational test. If the device fails any such test, it will be replaced within ten business days with an approved device. v. The following testing laboratory has been qualified by the District to test and certify backflow prevention devices for all Service Providers: [Reserved]. Testing laboratories other than the laboratory listed above will be added to an approved list as they are qualified by the District. 3. Testing Requirements. a. Inspections, testing, and repair.—non-residential connections: It is the responsibility of the Customer to have certified inspections and operational tests made on the backflow prevention device upon installation and at least annually thereafter. The District may require certified inspections at more frequent intervals. These inspections and tests shall be made at the expense of the Customer and will be performed by a certified inspector approved by the Service Provider. A backflow prevention device will be repaired or replaced at the expense of the Customer whenever a device is found to be defective. {00096389.DOC v:1) E-7 i. Annually, it will be the obligation of the Customer/User at any premises where any backflow prevention assemblies are installed to have a certified test made of these assemblies. In those specific instances where the Service Provider deems the hazard to be great enough, it will require certified inspection at more frequent intervals. The cost for any test under this section shall be at the Customer's expense. All tests shall be performed by a certified technician approved by the Service Provider. ii. As necessary, the assembly shall be repaired or replaced at the expense of the Customer/User whenever the assembly or assemblies are found to be defective. Records or copies of same, of all such tests, repairs or replacement shall be kept by the test of the assembly and the Customer/User, and a copy or copies shall be sent to the Service Provider within ten days of the test, as described in Article_ [Reserved]. iii. All testing gauges shall be tested and calibrated for accuracy yearly, or more often in the event of questionable readings. iv. The Service Provider retains the right to test or otherwise check the installation and operation of any containment assembly at any time. v. This section shall also apply to all irrigation services. b. Inspections,testing and repair—residential connections: It is strongly encouraged that all residential water service connections have certified inspections completed annually. All inspections and tests shall be made at the expense of the Customer and will be performed by a certified inspector approved by the Service Provider and reported as described in Article_ [Reserved]. i. All water service connections served by the District or a consecutive water system or water district Service Provider served by the District that have any type of auxiliary water supply will be tested according to Article_ [Reserved]. ii. In those specific instances where the District deems that a hazard to the District water system exists, it will require a certified inspection to be completed within five working days of written notification. Annual inspections will continue, based on this chapter, until the public works director deems that a hazard no longer exists. c. Right of entry. i. The Service Provider representative and/or designee assigned to inspect premises relative to possible hazards shall carry proper credentials of his or her office and, upon exhibit of which, said representative shall have the right of entry to inspect any and all buildings and premises for cross-connections in the performance of his or her duties. If such entry is refused,the District or Service Provider or the designated authorized representative thereof shall have recourse to every remedy provided by law to secure entry. ii. This right of entry shall be a condition of continuation of water service in order to provide assurance that the health, safety and welfare of the people throughout the District and Service potable water distribution system is maintained. Where building security (00096389.DOC v:1) $-8 is required, the backflow assembly or assemblies should be located in an area not subject to security. Questions regarding proper credentials should be directed to the Service Provider. d. Reporting and record-keeping: The certified inspector will report on a form approved by the Service Provider, the results of inspections,tests, and maintenance to the Service Provider and the property owner. This report will be submitted to the Service Provider within ten days following the completion of the inspection, test, or maintenance of the device. The certified inspector shall also, on a form approved by the Service Provider, attach a card to the backflow prevention device following each inspection,test, or maintenance activity to document and date the activities performed. Records of all inspections, tests, or maintenance activities, including materials and parts changed, shall be kept by the certified inspector,the property owner, and the Service Provider for a period of not less than five years. 4. Enforcement and Fees. a. Compliance. i. Customers shall cooperate in the installation, maintenance, testing or inspection of backflow prevention assemblies. Failure to cooperate shall be grounds for the discontinuance of water service to the premises, or the requirement for air-gap separation from the public potable water system. ii. Service of water to any Customer maybe discontinued by the Service Provider if unprotected cross-connections exist on the premises, or if any defect is found in an installed backflow prevention assembly, or if a backflow prevention assembly has been removed or bypassed. Service shall not be restored until such conditions or defects are corrected. iii. Discontinuance of service may be summary, immediate and without written notice whenever, in the judgment of the District administrator or the designated representative thereof,upon the recommendation of the public works director, such action is necessary to protect the purity of the public potable water supply or the safety of the District Water System. b. Violations and penalties. i. Any person who violates any of these Standards shall be punished by a fine of one thousand dollars ($1,000.00). ii. Each such Customer shall be guilty of a separate offense for each and every day during any portion of which any violation is committed, continued or permitted by any such person. iii. The District is authorized to seek recovery of all present and future damages, costs and other relief to which the District is entitled and obtain any available judicial remedies related to maintenance of a cross-connection or any violation of the provisions of this chapter. {00096389.DOC v:1) E-9 APPLICATION FOR EXEMPTION FROM AUDIT -LONG FORM - FOR GOVERNMENTS WITH REVENUES OR EXPENDITURES GREATER THAN $100,000 BUT NOT MORE THAN $500,000 Name of Government: Resource Colorado Water&Sanitation Metro District For the Fiscal Year Address: 8390 E. Crescent Parkway, Suite 600 Ended December 31,2007 Greenwood Village, CO 80111 or fiscal year ended: Contact Person: Jason Carroll Telephone: 303-779-5710 E-Mail: Jason.Carroll@cliftoncpa.com Fax: 720-482-6668 Return to:Office of the State Auditor Local Government Audit Division 225 E. 16th Ave., Suite 555 Denver,CO 80203 Fax: (303)866-4062 Call(303)866-3338 if you need help completing this form. Email: OSA.LG@state.co.us Section 29-1-604, C.R.S. outlines the provisions for an exemption from audit. Generally, any local government where neither revenues nor expenditures exceed$500,000 in any fiscal year qualify for an exemption. If either revenues or expenditures are$100,000 or greater,but not more than$500,000,you may use this form. If both revenues and expenditures are less than$100,000 individually, use the short form application for exemption from audit. Instructions: In order to ensure that your government's application will be accepted by the Office of the State Auditor, you must do the following: 1. Prepare this form completely and accurately. 2. File this form with the Office of the State Auditor within 3 months after the end of the fiscal year. For years ended December 31, the form must be received by the Office of the State Auditor by March 31. 3. The form must be completed by an independent accountant(separate from the entity)with knowledge of governmental accounting. 4. The application may be mailed,faxed, or emailed as indicated above. If faxed or emailed, a resolution of the governing board must accompany the application from exemption from audit in a format that includes the signatures of a majority of the governing body(see sample resolution). If mailed, an original plus one copy should be sent. 5. The preparer must sign the application that is submitted in order for it to be accepted. 6. Additional information may be attached to the exemption at the preparer's discretion. CERTIFICATION OF PREPARER I certify that I am an independent"accountant with knowledge of governmental accounting and that the information in the Application is complete and accurate to the best of my knowledge. Name:Jason Carroll !Title:District Accountant Firm Name:Clifton Gunderson LLP Firm Address:8390 E. Crescent Parkway,Suite 600,Greenwood Village,CO 80111 Date Prepared:3/13/08 !Telephone Number.303-779-5710 Signature: SEE ACCOUNTANT'S COMPILATION REPORT The Audit Law requires that a person independent**of the entity complete the Application if revenues or expenditure are at least$100,000 but not more than$500,000. Please describe what your relationship is with the entity. CPA firm for the District **Independent means someone who is separate from the entity. Page 1 r . C L C I r U. o IJ Z 0 w w w w w w w w w 'w w w w w w w w w w 49L w w w wwww w w v _LL , • • G , • • M N V N • . . Ix tI" Cr:O 1:. W pWW O . • Y •I . N co W C N C ' W W :Y Or N A A N p �LL N M In W 40).69 w 4111,1 w w w 4f) ::a fWWWWWWWWWwww . w wwww w w a R y W "O O a` M p CO a It O y N N F E o W CD L O N O a) $ 0 N M 'CI I.? A 'p ` d VI CM N 10 m 2 J to c z m 7 M C « 16E . E ,.. m.mLLc ^ ' m w Z Comm b o ^ .m:a y fl m m "! S° a„, u' h • b re m u « a m Q Z c P. N c E O y, g carLa c o. 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JLL ].LL .. �Q NIX O O N cJ P N m A W O O a M m a C a W mm ac O m W comma a pmj O O 2 a m A r A A A A A A r A w m m m PART 3 - DEBT OUTSTANDING, ISSUED AND RETIRED -" ''-- '' rib- '';, ir-,1'.''1, 'gIT.i.I.itA,A1iltp')+ Iriff, feLilfi;i1t_itrnpnf{Yt.,_ 7f,. ' i rr .x,1 jF1. �'�`'.:i I�.11.., . 3-1 Does the entity have debt? `� ` - X If yes: Is the debt repayment schedule attached?If no,please explain:Developer advance is payable as funds become available. X Please complete the following debt Outstanding at Total issued Total retired Total Governmental schedule,if applicable beginning of during fiscal during fiscal outstanding at (G)or ( fiscal year year (add) year (less) fiscal year end Proprietary(P) General Obligation Bonds $ - $ - $ $ Revenue Bonds $ - $ - $ - $ - Notes/Loans $ - $ - $ - $ - Leases $ - $ $ $ - Other(specify):Developer Advance $ 315,484 _$ 244,000 $ - $ 559,484 Total $ 315,484 $ 244,000 $ $ 559,484 ' _ %[y 3-2 I1FY :!i cagt`f.rgji `?pf( )°iiiird*1iGLi C;`jl-71 tiIHj Yq k<(L!?iiT_._'_y..�: �,fi Does the entity have authorized,but unissued debt? ._�"""`""� ti _��"� -'��--'-`', X If yes: How much? $ 2,318,000,000 Date debt was authorized: i 11/2/2004 3-3 Does the entity intend to issue debt within the next calendar year(2008)? X If yes: How much? I $ o -1i?(X.T I .,!-,S,C`'771S'7r En 1 , _tifcni n 1ri44• i f R . . :, IiPs IoYi':ii y. E ieh 3-4 Does the entity have defeased debt? X If yes:.What is the amount outstanding? - • I $ '•yy)8.4.7.. 5t ' i. tall.114r (ii4-5? ,0 1<<lutY lJg'..iciliCs...(.3i.'XTrik-C ,-,;{-# ----V VIE:' rr11" i �',.. 3-5 Does the entity have any lease ag_reements7 ` - _ _t� -"` ' X -- If yes: What is being leased? X What is the original date of the lease? Number of years of lease? Is the lease subject to annual appropriation? What are the entity's annual lease payments? $ PART 4-CASH AND INVESTMENTS HELD AT END OF FISCAL YEAR • Checking Savings Certificates of Investments(list Accounts Accounts Deposit below) Total 4-1 Deposits $ 2,985 $ - $ - - • $ 2,985 4-2 Investments Total $ - $ List Investments by Type(If investment is a mutual fund,please list underlying Investments): Total 4.2(a) 4.2(b) $ 4-2(c) $ 4-2(d) $ Total Investments $ - t i ,?is� la. rnblif#11ti.:z the OY;;It`(txlls six �, } i._4-3 ... �2. ry?'.r(Sectio „110. .. .e .L!,.._' L _Are the entity's deposits in an eligible(PDPA)public depository? (Section 11-10.5-101 et.Seq., X �- C.R.S.) If no,please explain: Page 5 rPART 5 -CAPITAL ASSETS Beginning of the End of Year Year Additions Deletions Balance 6.1 For Governmental Funds " Land $ $ _ $ _ $ Buildings $ - $ - $ $ Machinery and Equipment $ - $ - $ - $ • Furniture and Fixtures $ - $ _. $ - $ Infrastructure $ - $ - $ $ _ Accumulated Depreciation $ - $ - $ - $ Other $ _ $ $ $ Total for Governmental Funds $ - $ - $ - $ Beginning of the End of Year Year Additions Deletions Balance 6.2 For Proprietary Funds Land $ - $ - $ $ Buildings $ - $ - $ $ Machinery and Equipment $ - $ - $ - $ Furniture and Fixtures $ - $ - $ - $ - Infrastructure $ - $ 84,404 $ - $ 84,404 Accumulated Depreciation $ $ - $ - $ Other $ - $ - $ $ - - Total for Proprietary Funds - $ - $ 84,404 $ IIIIIMI iijd 5-3 Did the entity inventory tory the capital 3 assets?(Sectionl -29 1 506,C.R.S.)?If no,please explain: `�',(,..- • I :,,,t� X PAR1I6 PENSION INFORMATION f' ';',1 .31* Y i.kil.iLi'ifir r11j sl lit T� 3irAkif. al-i`, filts7'rao , .1iiff�> lA liF,?;:k>" ' ,r, rr1' 6-1 Does the entit have an"old hire"Ore •enslon •Ian7 �',�.- �F `t -"� ' - ' r X 6-2 I•- f tbA•ri.-xtalfrcx=uiirauradyjy i. . X If yes: Who administers the 'Ian? Indicate the contributions from: > �� Tax: Prose ,SO,Sales,etc $ _ State Contribution Amount: $ _ Other. Gifts,Donations,etc $. What is your monthly benefit paid for 20 years of service per retiree as of Jan 1st? $ PART 7-yBUDGET INFORMATION - , I-4 u�1$z0.t rs rr 'iltflvrs il.A*r7r,1, iiii I ri-i a 1 1 r a ' . 2R . f t, ,, 7-1 Did the entity file a 2007 budget with the Department of Local Affairs? If no,please explain: X If yes: •I asein•ic to the m•unt a••r••n te• f•re ch •f •ur fun•s f•r2rr7: Fund Name Bud•eted 2007 Ex•enditures General $ 150,000 Ente •rise $ , 26,450,000 $ 11. I. I Page 6 t I PART 8 -TABOR it Yet f.<�y:: P y:''C1 �.F"ln� T/1 7�.[!K'�1�! k'.i 1ELi�iltYi(z:l•`..1¢ li Yii'� J;Yj . '�i,.t . y '.�j }�i 8-1 Is the entity in compliance with all the provisions of TABOR?[State Constitution Article X, X Section 20(5)[7 If no,please explain: Note:An election to exempt the government from the spending limitations of TABOR does not exempt the government from the 3%emergency reserve requirement In this case,you should se, if the entity meets this requirement and check yes or no above. PART 9 GENERAL INFORMATION RITIS701.14;1 y riff ilia..,;f1k cfN I i 6 o f i i1 ?Rktif >`'1 IR. Atfit, ,_.-.:t II7 ..3" ,� I . f.+1� 9-1 Is this enti a newt f•rme• ••vernment I ntit ? X 9-2 Is this a metro•olitan district? X 9-3 Please indicate what services are provided:Water,sanitation,and drainage facilities;also ancillary street and mosquito conrol 9-4 I. s the enti have an •reement with n•lher••vernment emit t• •r•vi•e servi -s7 X If yes: List the name of the other government entity and the services provided: PART 10 -GOVERNING BODY APPROVAL We,the undersigned,certify that this Application for Exemption from Audit has been: Prepared consistent with Section 29-1-604,C.R.S.,which states that an application with revenues or expenditures at least$100,000 but not more than$500,000 must be prepared by an independent accountant with knowledge of governmental accounting. Completed to the best of our knowledge and is accurate and true. Reviewed and approved by a majority of the governing body Note: Please list all current members of the governing body. In addition,original signatures must be provided for a majority of those liste Name(please print or type all current Date Term 1 members of the governing body) Expires • gin na . ess resolution is attached) 2 Christopher R. Paulson May-08 �� 3 Jean M. Gold May-08 4 Toni L. Serra May-1 5 Jack E. Reutzel May-08 6 William V. Hibbert May-10 / 7 B 4 Page 7 M Clifton Gunderson LLP Certified Public Accountants&Consultants ACCOUNTANT'S COMPILATION REPORT • Board of Directors Resource Colorado Water& Sanitation Metro District Weld County, Colorado We have compiled the Application for Exemption from Audit of Resource Colorado Water & Sanitation Metro District as of and for the year ended December 31, 2007, included in the accompanying prescribed form in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. • Our compilation was limited to presenting in the form prescribed by the Colorado State Auditor's office information that is the representation of management. We have not audited or reviewed the accompanying Application for Exemption from Audit and, accordingly, do not express an opinion or any other form of assurance on it. The Application for Exemption from Audit is presented in accordance with the requirements of the State Auditor's office, which may differ from generally accepted accounting principles. Accordingly, the Application for Exemption from Audit is not designed for those who are not informed about such differences. We are not independent with respectrto Resource Colorado Water& Sanitation Metro District. elAger7.?",\_‘ ,,h4c4AJ L +� Greenwood Village, Colorado March 13, 2008 8390 E.Crescent Parkway,Suite 600 Greenwood Village,Colorado 80111 tab 303.779.5710 fax;303.779.0348 HLB www.cliftoncpa.com pffices in 17 states and Washington,DC HLB International MEMORANDUM To: Weld County, CO From: McGeady Sisneros, PC Date: July 25, 2008 Re: Resource Colorado Water and Sanitation Metropolitan District Election Authorization as of 12/31/07 t =, P�rmcrpal _ a r Amoount o f P incipal Amount s lErmcipal Amount Authorization of Authocrzattori;, of Authorized.Debt •°-Used �-.: Remaining, Purpose - Improvments 5A Streets $324,000,000.00 $0.00 $324,000,000.00 5B Water Supply System $324,000,000.00 $0.00 $324,000,000.00 5C Sanitary Sewer System $324,000,000.00 $0.00 $324,000,000.00 5D Mosquito Control $324,000,000.00 $0.00 $324,000,000.00 Purpose -Other Authorizations Refunding of District debt or other 5E obligations $324,000,000.00 $0.00 $324,000,000.00 IGAs that are MFY obligations; payable from unlimited ad valorem 5F property tax levy $324,000,000.00 $0.00 $324,000,000.00 Operating Expenses and Reimbursement of Operating 5G Advances to the District $50,000,000.00 $0.00 $50,000,000.00 IGAs that are MFY obligations; payable from unlimited ad valorem 5H property tax levy $324,000,000.00 $0.00 $324,000,000.00 IGAs for Regional Improvements 51 that are MFY obligations Allowed Authority to Collect/Spend Facilities 5J Fees, charges, tap fees Allowed Note: IGA = Intergovernmental Agreement; MFY = Multiple Fiscal Year Debt: All authorized debt is in the form of revenue bonds or other obligations of the District including but not limted to contracts, leases and other agreements, except as otherwise noted. Date of Last Election: November 2. 2004 C:\WINDOWS\Temporary Internet Files\OLK1A\Resource Colo W S 2007 Annual Rprt-Debt author 12-31-07 Page 1 (00129468) Hello