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Home My WebLink About20061075.tiff MCGEADY SISNEROS, P. C. ATTORNEYS AT LAW 1675 BROADWAY, SUITE 2100 DENVER,COLORADO 80202 TELEPHONE:13031 592-4380 FACSIMILE:13031592-4385 WWW.MCGEADYSISNEROS.COM MARYANN M.Mc GEADY SPECIAL COUNSEL DARLENE SISNEROS MARY JO DOUGHERTY KENNETH M.K ANNE K.LAPOIC2 APORTA MEGAN BECHER RUSSELL W.DYKSTRA KATHRYN S.KANDA JACQUELINE C.MURPHY GEORGE M.ROW LEY April 4, 2006 Carol Harding, Clerk to the Board of Commissioners 915 Tenth Street; P. O. Box 758 Greeley, CO 80632 Re: Resource Colorado Water and Sanitation Metropolitan District Dear Ms. Harding: Enclosed for your files is an executed copy of the Annual Report to Southern Weld Advisory Board relative to the above-captioned district. Feel free to contact me directly (Ext. 2094)with any questions or concerns. Very truly yours, MCGEADY SISNEROS,P.C. Anne K. LaPorta AKL/dt Enclosure cc: Vicky Sprague (w/o enclosure) Don Warden (w/o enclosure) 2006-1075 (00069308.DOC v:11 /r 0pvef nmA.Al(Ct� f 1t^iS l C � �d ( 01� (YV la. - OCc7 G‘7. Z RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT ANNUAL REPORT TO SOUTHERN WELD ADVISORY BOARD Pursuant to Section II.C of the Service Plan as approved by the Board of County Commissioners of Weld County, Colorado on August 25, 2004, the District is required to provide, on an annual basis, the following report to the Southern Weld Advisory Board. Additional questions regarding the information set forth in this Report may be directed to the office of the District Manager, Resource Colorado Water and Sanitation Metropolitan District, 141 Union Blvd., Lakewood, CO 80228, (303) 987-0835, during regular business hours and pursuant to the Rules and Regulations adopted by the District. All information provided in this summary is through December 31, 2005. 1. Capital Improvement Progress Report. —• (a) Summary of Description and Mapping of Completed Improvements from Date of Organization through December 31 of the Year Prior to the Year of the Report. _. No improvements were completed as of December 31, 2005. Please see response in 1(b) below. (b) Summary of Description and Drawing of Improvements Proposed to be Constructed within 36 Months of January 1 of the Year of the Report("Three Year CIP Plan"). From the date of organization, December 14, 2004, through December 31, 2005, the District has been focusing on planning, engineering, and administrative and legal matters related to the District's proposed water and wastewater improvements and services. The District was formed to provide water and wastewater service for communities within Weld County. Among the proposed service providers that the Districts are expected to serve are the Pioneer Metropolitan Districts Nos.1 —6. The Service Plans for the Pioneer Districts currently are in process with Weld County. However, the District moved forward with the preliminary work necessary to insure that it will be able to provide the services when needed by the Pioneer Districts. The District has been negotiating for the purchase of water rights necessary to secure an adequate water supply for the Weld County communities it expects to serve, including the Pioneer District, as well as other existing communities in the County. The District submitted an application for and received conditional approval of a Wastewater Treatment Plant permit through the North Front Range Water Quality Planning Association. One of the conditions to approval of the permit is the approval of the Weld County Comprehensive Plan Amendment that currently is under consideration by the Weld County Board of County Commissioners. A copy of the approval letter is attached hereto as Exhibit A hereto. The District also is considering and (00061423.DOC va} working with Weld County in the review of the County's Draft 1041 Regulations, which set forth the County's procedures for approval and construction of the facilities necessary for the District to provide the services set forth in its service plan. The District will prepare the Three Year CIP once these pending matters are resolved. (c) Summary of Infrastructure Phasing and Schedules of Improvements Described in Three Year CIP Plan. _ Please see response in 1(b) above. 2. District Financial Reporting. (a) Annual Budget for Year of Report. See Exhibit B attached hereto. (b) Annual Audit of Financial Statements for the Fiscal Year Ending December 31 of the Year Prior to the Year of the Report. The District is expected to file for an audit exemption for fiscal year 2005. Attached hereto as Exhibit C are unaudited financial statements for the year ended December 31, 2005. (c) Summary of Total Debt Outstanding and Remaining Amounts of Authorized but Unissued Debt Authorization. See Exhibit D attached hereto. 3. Operations Reporting. (a) Current Rules and Regulations. See Exhibit E attached hereto. (b) Changes to District's Taxing Boundary or Service Area Boundary, as such Terms are Defined in District's Service Plan. There have been no changes to the District's taxing boundary or Service Area boundary, as such terms are defined in District's Service Plan from the date of organization through December 31, 2005. (c) Copies of Executed Intergovernmental Agreements. See Exhibit F attached hereto. (i) Operation Funding Agreement 2005. (d) Names and Terms of Board Members and Contact Information. Harvey E. Deutsch, President 9145 E. Kenyon Avenue, Suite 200 Denver, CO 80237 Telephone: (303) 843-9742 Fax: (303) 843-0143 Term expires: 2008 {00061423.DOC v:1} 2 Steven H. Deutsch, Assistant Secretary 9145 E. Kenyon Avenue, Suite 200 Denver, CO 80237 Telephone: (303) 843-9742 Fax: (303) 843-0143 Term expires: 2008 Joel H. Farkas, Secretary 9145 E. Kenyon Avenue, Suite 200 Denver, CO 80237 Telephone: (303) 843-9742 Fax: (303) 843-0143 Term expires: 2006 Toni L. Serra,Treasurer 9145 E. Kenyon Avenue, Suite 200 Denver, CO 80237 Telephone: (303) 843-9742 Fax: (303) 843-0143 Term expires: 2006 Jack E. Reutzel, Vice President 9145 E. Kenyon Avenue, Suite 301 — Denver, CO 80237 Telephone: (303) 843-9742 Fax: (303) 843-0143 Term expires: 2008 (e) Schedule and Locations of Regular Board Meetings. Provided for 2005 as Exhibit G. (000614aa.DOC v I) 3 4. Summary of any Outstanding Litigation. There is no threatened or pending litigation as of the date of this report. Respectfully submitted this day of , 2006. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN _. DISTRICT By: Its: Attest: By: Its: (00061423.DOC v:1) 4 EXHIBIT A North Front Range Water Quality Planning Association Letter re: Wastewater Treatment Plant Permit {00061423.DOC v:1} A-1 EXHIBIT B 2005 Budget {00061423DOC v:l) B-1 EXHIBIT C Unaudited Financial Statements as of December 31, 2005 (00061423.DOC v:1} C-1 EXHIBIT D Summary of Debt December 31, 2005 Resource Colorado Water and Sanitation Metropolitan District Election Authorization z j anteNF A'h. I : nY 1 IF, 1 '� 1 1 y I I I i I 9 fl } n.-4144, 4i III4�A 1�4 iyq k' r 2 , '� i 1 M r �B: ' e� •� 4.••�a1. - .�. e��3,rYlE:)j�.� x, n Purpose Streets $324,000,000.00 $0.00 $324,000,000.00 Water Supply System $324,000,000.00 $0.00 $324,000,000.00 Sanitary Sewer System $324,000,000.00 $0.00 $324,000,000.00 Mosquito Control $324,000,000.00 $0.00 $324,000,000.00 _. btgrt � s �' s6aapp j�gl O&M Debt $50,000,000.00 $0.00 $50,000,000.00 —• Refinancing $324,000,000.00 $0.00 $324,000,000.00 Operations and Maintenance $324,000,000.00 $0.00 $324,000,000.00 Operations Expenses or Advances $50,000,000.00 $0.00 $50,000,000.00 IGA for Debt $324,000,000.00 $0.00 $324,000,000.00 IGA for Regional Improvements Allowed Authority to Collect/Spend _ Facilities Fees,charges,tap fees Allowed Date of Last Election: November 2, 2004 {00061423.DOC v1) D-1 EXHIBIT E Current Rules and Regulations (00061423.DOC v:l) E-1 EXHIBIT F Intergovernmental Agreements 1. 2005 Operation Funding Agreement (00061423.)OC v:1) F-1 �j1o7t0o Z NORTH FRONT RANGE WATER QUALITY PLANNING ASSOCIATION Civic Center,500 E. 3f°Street, Loveland,CO 80537 970.962.2785—970.962.2913 fax nfrwana@frii.com—www.nfrwgpa.orq - September 30, 2005 OCT 0 3 2905 Brad Simons Gateway American Resources • — 9145 E. Kenyon Avenue, Suite 2'00 Denver, Colorado 80237 Dear Mr. Simons: As you know, the North Front Range Water Quality Planning Association held a public - hearing on September 22, 2005, to consider a plan amendment that would designate Resource Colorado Water and Sanitation District as a Management/Operating Agency and designate a service area for the District. That plan amendment request was approved - by the Association with the following conditions: • The District must submit a Utility Plan for review to the Association prior to the -- consideration of any site applications. This plan should include such information as the District's financing ability, densities, loading projections, and ability to serve the area. -• • The approval is contingent on the approval of the Weld County Comprehensive Plan amendment. • Should Weld County choose not to approve a Comprehensive Plan amendment, the Association will have the ability to reconsider this approval. I have enclosed a draft copy of the minutes from the September meeting for you records. This amendment will be incorporated into the 2005 Update to the Management Plan. Please contact me at (970) 962-2785 if you have any questions. Sincerely, • C_ Dom, �^ Connie O'Neill Manager Enclosures: (I) Attachment No. 2 DRAFT MINUTES NFRWQPA September 22,2005 1. Roll Call The meeting was called to order at 3:15 pm by Chair Gale McGaha Miller at the offices of the Northern Colorado Water Conservancy District. Roll was called and the following members were in attendance: Tony Huerta—Berthoud Larry Ketcham—Milliken Gale McGaha Miller—Ft. Collins Nicole Seltzer—NCWCD Tracy Kitten—Greeley Bob Alberts—Pierce Jim Landeck—Hudson Tim Gaines—Timnath _. Ed Schemm—Larimer County Mike Geile—Weld County Cindy Titus—Lochbuie Lee Morrison—Weld County Larry Wyeno—Longmont Also present were Connie O'Neill,Brad Simons, Chris Paulson,Tom Bishop, Darlene Sisneros, and Harvey Deutsch. 2. Minutes Minutes of the August 25, 2005 meeting were considered. Mr. Schemm made a motion to approve the minutes, Mr. Kittell seconded the motion and it passed. _. 3. Financial Reports The financial reports for August were considered. Because several members did not have copies of the August reports, Ms. McGaha Miller suggested coming back to this agenda item later in the meeting. Copies of the financial reports were made and distributed. 4. Resource Colorado Water and Sanitation District—Plan Amendment Ms. O'Neill presented a summary of the discussion of this item from the August meeting. She also presented a summary of the attachments that were sent along with the agenda packet and pointed out a correction to the map on section 14. She then reviewed the public meeting process for this agenda item. Mr. Simons then gave a summary of the plan amendment request and the comments received. He reviewed the property to be included in the service area and presented a map delineating the area. Mr. Deutsch gave an overview of the water project for Resource Colorado. They have obtained the rights to export water from an area near Prospect Valley for municipal purposes. This is the location of the initial District boundary. As part of the District's approval with Weld County, they committed to use part of the water in Weld County. As a result of this commitment,they began to look for a place to use this water. They are now in the process of requesting a Comprehensive Plan Amendment with Weld County for the area they would like to develop. This is the area that they are requesting a plan amendment for. As a part of the development plan, a portion of the water from the municipal discharge will go back into agricultural use. The approval of the plan amendment would allow them to move forward in the public hearing process of the Comprehensive Plan amendment. Minutes, September 22,2005 /Page 2 of 3 DRAFT Ms. Sisneros explained the function and abilities of the District as outlined by the Service Plan. Mr. Bishop then explained the cost estimates and bonding for the District. Ms. McGaha Miller then asked for any questions from the general public. Hearing none, Ms. McGaha Miller opened up the discussion to questions and comments for the Board. Mr. Landeck questioned the location of the initial service area and the language in the Service Plan that would allow for services to be provided in a different location. Ms. McGaha Miller reviewed the conditions that were discussed in the August meeting. Mr. Morrison explained that further action will be required by Weld County to either approve a retail district in the area or amend the existing Service Plan to allow for that. He stated that it was not the intent of Weld County to limit the service to the initial _. District boundaries. Ms. O'Neill suggested that the inclusion of a condition that would require a Utility Plan may help to address some of the issues in the future. Ms. McGaha Miller then summarized the two conditions that had been suggested. Mr. Simons stated that Resource Colorado would not be opposed to those conditions. Mr. Schemm stated that we may want to include the condition that if Weld County does not approve the Comp. Plan that we reconsider this amendment. Mr. Landeck questioned whether zoning density changes may also require a reconsideration of the amendment. Ms. McGaha Miller stated that all we are considering approving at this time is the service area. Mr. Paulson stated that they have got to be able to show that they can provide urban services before the County will consider the Comprehensive Plan amendment. Mr. Simons also added that the densities included in the NFRWQPA request are the same as the densities included in the Comprehensive Plan amendment _. request. Mr. Wyeno requested clarification on the public notification / hearing process. Mr. Morrison indicated that the applicants will include a broader notification than just the land area included in the amendment request. Mr. Wyeno then questioned how this amendment may affect the land use in the surrounding area. Mr. Morrison indicated that the effect on the use of the surrounding areas would be a consideration. Mr. Wyeno then questions the necessity for a decision of this Board at this time. Mr. Morrison explained that without the NFRWQPA approval in order to demonstrate the availability of services, the Comprehensive Plan amendment request may never get past the Planning Department. Mr. Paulson indicated that the Planning Department has indicated that the NFRWQPA approval is necessary in order to move forward. Ms. McGaha Miller then referred to the minutes of the August meeting and indicated what conditions of approval would be necessary including defming the area limited to properties that the applicant owned, on a Comprehensive Plan amendment, and on the ability to provide service with greater practicality than another provider. Also that the Association would want to reserve the right to choose a better alternative in the future if that becomes a possibility and that the district is defined as a wholesale district. Mr. Landeck then asked if a resolution could be passed in place of a plan amendment approval. Ms. O'Neill stated that a resolution may imply more approval by the Association than what the amendment is considering. Mr. Schemm stated that this is the first time the Association has been asked to make a service area designation prior to densities be determined. He then made a motion to approve the service area and Management/ Operating Agency designation subject to Weld County's approval of the Comprehensive Plan Amendment and a Utility Plan, that delineates the densities, loading, financing, and ability to serve, be submitted prior to the consideration of a site application. Mr. Kittell seconded the motion. Mr. Schemm then requested a friendly amendment to his motion to include the condition that if Weld County does not approve the Comprehensive Plan Amendment, the NFRWQPA would reconsider its approval. Mr. Kittell agreed with the addition to the motion. Minutes, Septeml 2,2005 /Page 3 of 3 DRAFT Ms. McGaha Miller clarified that the service area will include lands owned by Pioneer Communities and Resource Colorado as described in the map presented by the applicants. Ms. McGaha Miller then asked for a show of hands for those in favor of the motion. The motion passed by a vote of eight to two. There was then discussion about whether there were sufficient members present to represent a quorum. Ms. O'Neill was instructed to follow up and determine whether the vote would stand or whether the item would need to be reconsidered at the next meeting. (Note: Following the meeting it was determined that there was a quorum present. However, two of the votes cast were invalid because they represented non-voting members. The decision will stand by a vote of seven to one.) 5. Financial Report Ms. McGaha Miller then asked the members to return to the financial reports for August. Copies of the report were handed out to the members present. Mr. Geile made a motion to approve the financial reports. Mr. Schemm seconded the motion and it passed. Ms. McGaha Miller then asked that the minutes reflect that side conversions will not be tolerated by this organization. 6. Town of Lochbuie—Site Application Ms. O'Neill summarized the site application submitted by the Town to increase the existing plant from 1.0 mgd to 2.0 mgd. The NFRWQPA had originally considered the phased Lochbuie facility in May of 2001. Mr. Schemm stated that this facility had be previously considered by the Board and made a motion to approve the application. Mr. Geile seconded the motion. Mr. Landeck asked what the capacity of the existing plant was. Ms. Titus indicated that the existing plant has a 1.0 mgd capacity. Ms. McGaha Miller then called for a vote and the application was approved unanimously. 7. Other Business A. Ms. O'Neill indicated that there as not a Water Quality Control Commission report this month as the Commission held their annual retreat in September. "'• B. Ms. O'Neill reported that the 303(d) "For Sure" list from the state was included with the agenda packet. She indicated that there were several segments in Larimer and Weld County on the list and that the final report should be available on the state's web site in October. — There was then some discussion about the cause of the impairments. C. Ms. O'Neill presented some options for the Association's meeting dates in October, November, and December. It was decided that the October meeting date will be changed due to the South Platte Forum and will be held on November 3, meeting location to be announce. There will not be an additional meeting in November and the December meeting will be held on the 15th at the Northern Colorado Water Conservancy District Office. 8. Adjournment - There being no further business the meeting was adjourned at 4:40 p.m. RESOLUTION NO. 04-05 RESOLUTION TO ADOPT BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO,FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2005,AND ENDING ON THE LAST DAY OF DECEMBER 2005. WHEREAS,the Board of Directors of Resource Colorado Water and Sanitation Metropolitan District has appointed Clifton Gunderson LLP, to prepare and submit a proposed budget to said governing body at the proper time; and WHEREAS, Clifton Gunderson LLP, has submitted a proposed budget to this governing body on December 14,2004 for its consideration, and; WHEREAS, upon due and proper notice,published or posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place, a public hearing was held on December 14, 2004, and interested taxpayers were given the opportunity to file or register any objections to said proposed budget, and; WHEREAS,whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE,BE IT RESOLVED BY THE Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District, Weld County, Colorado: 1. That the budget as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the budget of the Resource Colorado Water and Sanitation Metropolitan District for the year stated above. 2. That the budget hereby approved and adopted and made a part of the public records of the Resource Colorado Water and Sanitation Metropolitan District. (0003 fl67.DOC v:1) ADOPTED this I L-144. day of December, 2004. RESOURCE COL RADO WA R AND SANITATIO TROPO DI By: —' re ent Attest: By: Secrets {00031767DOC 76 7.DOC v:11 2 i=rsOLI LLP Centred Public Accm.aaea a ca.dts.S January 28,2005 Board of Directors Resource Colorado Water and Sanitation Metropolitan District Enclosed are copies of the 2005 Budget for the Resource Colorado Water and Sanitation Metropolitan District as adopted by the Board at its meeting on December 14,2004. By copy of this letter, we are sending two copies of the final budget to Anne Laporta at McGeady Sisneros PC who will file one copy of the budget with the State Division of Local Governments, as required by statute. Please call if you have any questions. Very truly yours, CLIFTON GUNDERSON,LLP Pte _ CC •� Certified Public Accountants&Consultants cc: Anne Laporta 6199 South Fiddler's Green Circle,Suite 100 Greenwood Village,Colorado 80111 -, tab 303.7793710 fu:303.779.0348 ••.�••••• www.cuftoncpa.com Offices in 13 states and Washington,DC H LB a.t..n on.t afton Gunderson LLP ewtited Public sewnta ds Is C.whams Accountant's Report Board of Directors -- Resource Colorado Water and Sanitation Metropolitan District Adams County,Colorado We have compiled the accompanying forecasted budget of revenue, expenditures, and funds available of the Resource Colorado Water and Sanitation Metropolitan District for the General and Capital Projects Funds for the year ending December 31, 2005, including the forecasted estimate of comparative information for the year ending December 31,2004, in accordance with — attestation standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of a forecast information that is the representation of management and does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the forecast and,accordingly, do not express an opinion or any other form of assurance on the accompanying budget of revenue, expenditures, —- and funds available or assumptions. Furthermore,there will usually be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected,and those differences may be material. We have no responsibility to update this report for events or circumstances occurring after the date of this report. Management has elected to omit the summary of significant accounting policies required by the guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants. If the omitted disclosures were included in the.forecast,they might influence the user's conclusions about the District's results of operations for the forecasted periods. Accordingly,this forecast is not designed for those who are not informed about such matters. We are not independent with respect to the Resource Colorado Water and Sanitation Metropolitan District. ytv�— .,f1d-. -.ei-w...-- LC.0.0 Greenwood Village,Colorado December 14,2004 6399 Soars Fiddler Green Circle,Suite 100 Greenwood Village,Colorado 80111 .— teL-303.779.5710 ,...... ., fax 303.779.0348 www.cliftontpa.com Offices in 13 states and Washington,DC HLB international RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT ... SUMMARY FORECASTED 2005 BUDGET AS ADOPTED WITH 2004 ESTIMATED For the Years Ended and Ending December 31, 12/14/04 • _. ESTIMATED ADOPTED 2004 2005 BEGINNING FUNDS AVAILABLE S - S - REVENUE Property taxes - - Specific ownership tax - - Investment income - - System development fees -Developer advance - 27,560,000 Bond proceeds - - Total revenue - 27,560,000 -. TRANSFERS IN - - Total funds available - 27,560,000 r. EXPENDITURES General Accounting - 1,500 Audit - - ^� Bond issue costs - - County Treasurer's fees - - - Director fees - - Election costs - Insurance - 12.000 Legal - 22,000 Management - 2Z000 • Miscellaneous - 1,000 Contingency - - Debt Service Paying agent fees - - Bond principal - - Bond interest - Letter of credit fees - - -. Capital outlay - 27,500,000 Total expenditures - 27,558,500 TRANSFERS OUT ' Total expenditures and transfers out requiring appropriation - 27,558,500 ENDING FUNDS AVAILABLE S _ - S 1 55O00 These financial statements should be read only in connection with the accompanying accountants report and summary of significant assumptions. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT PROPERTY TAX SUMMARY INFORMATION For the Years Ended and Ending December 31, 12/14/04 P e3 ESTIMATED] ADOPTED] 2004 J 2005 ASSESSED VALUATION Residential S - S - Commercial - - State assessed - - Vacant land -Personal property - - Adjustments • - - _ Certified Assessed Value S S - MILL LEVY -. General 0.000 0.000 Debt Service 0.000 0.000 Temporary Mill Levy Reduction (pursuant to C.R.S39-5-121) 0.000 0.000 _ Refund and abatements 0.000 0.000 Total mill levy 0.000 0.000 PROPERTY TAXES General S - S - Debt Service - - Temporary Mill Levy Reduction - - Refund and abatements - - Levied property taxes - - Adjustments to actual/rounding - - Refunds and abatements - - Budgeted property taxes S - S - BUDGETED PROPERTY TAXES General S - S - Debt Service - - S - S - This financial information should be read only in connection with the accompanying accountant's report and summary of significant assumptions. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT GENERAL FUND FORECASTED 2005 BUDGET AS ADOPTED WITH 2004 ESTIMATED For the Years.Ended and Ending December 31, 12/14/04 Page 4 ESTIMATED ADOPTED 2004 2005 BEGINNING FUNDS AVAILABLE S - S REVENUE Propertytaxes - - Specific ownership tax - - Investment income - - - System development fees -Developer advance - 60,000 Bond proceeds - - Total revenue - 60,000 TRANSFERS IN Capital Projects Fund - - Debt Service Fund - - Total transfers in ' Total funds available - 60,000 EXPENDITURES ••. Accounting - 1,500 Audit - - Bond issue costs - - County Treasurers fees - - �. Director fees - - Election costs - - Insurance - 12,000 Legal - 22,000 r• Management - 22,000 Miscellaneous - 1,000 Contingency - - Total expenditures - 58,500 TRANSFERS our Capital Projects Fund - - -' Debt Service Fund - - Total transfers out - - Total expenditures and transfers out requiring appropriation - - 58,500 ENDING FUNDS AVAILABLE S 1,500 EMERGENCY RESERVE S - These financial statements should be read only in connection with the accompanying accountants report and summary of significant assumptions. • RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT CAPITAL PROJECTS FUND FORECASTED 2005 BUDGET AS ADOPTED WITH 2004 ESTIMATED For the Years Ended and Ending December 31, 12/14/04 P 5 _- ESTIMATED ADOPTED II 2004 2005 BEGINNING FUNDS AVAILABLE S - S - - REVENUE Investment income System development fees - - Developeradvance - 27,500,000 Bond proceeds - - Total revenue - 27,500,000 TRANSFERS IN Debt Service Fund - - General Fund - -• Total transfers in - - Total funds available - 27,500,000 -- EXPENDITURES General Accounting - - Legal - Management Repayment of Developer advance - - Bond issue costs Miscellaneous - - Capital outlay - - Streets - - Water - 27,000,000 r Sewer - - Stonn drainage - - Parkshecreation - - Landscaping - - Engineering - 500,000 Contigency - - Total expenditures - 27,500,000 TRANSFERS OUT Debt Service Fund - - General Fund - Total transfers out - - Total expenditures and transfers out requiring appropriation - 27,500,000 ENDING FUNDS AVAILABLE S - S These financial statements should be read only in connection with the accompanying accountants report and summary of significant assumptions. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2005 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided ' Resource Colorado Water and Sanitation Metropolitan District was organized to provide construction, installation, financing and operation of public improvements, including water and sanitary sewer. The District's service area is located entirely within Weld County,Colorado. The District was formed by Court Order on November 16,2004,with its formation election held on November 2,2004. The District prepares its budget on the modified accrual basis of accounting, except that — Developer Advances are recorded as revenue and the repayment of Developer Advances are. recorded as expenditures; whereas the financial statement presentation, in accordance with generally accepted accounting principles (GAAP), records these transactions as fund liabilities -- and does not affect the operating statement. Consequently the terminology of"Funds Available"' is used in the budget to distinguish the difference from GAAP accounting for Fund Balance. Funds Available represents each fund's current assets less its current liabilities except for the developer advance fund liability. _. Revenue Developer Advances The District is in the development stage and the Developer is anticipated to advance expenditures necessary for the District's operation and capital outlay. Expenditures Administrative Expenditures Administrative expenditures have been provided based on estimates of the District's Board of Directors and consultants and include the services nrrPccary to maintain the District's administrative viability such as legal, accounting, managerial, insurance, meeting expense, and _ • other administrative expenses. Capital Outlay Anticipated expenditures for capital projects in 2005 are outlined on page 5 of the budget. Page 6 RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2005 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS (Continued) Reserves Emergency Reserve The District has provided for an emergency reserve fund equal to at least 3% of fiscal year spending for 2005,as defined under TABOR —• Debt and Leases The District's has no debt or operating or capital leases. This information is an integral part of the accompanying forecasted budget. Page 7 I, Jotl 4. ,tr ku5 ,hereby certify that I am a Director and the duly elected and qualified Secretary of the Resource Colorado Water and Sanitation Metropolitan District, and that the foregoing is a true and correct copy of the budget for the budget year 2005, duly adopted at a meeting of the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District held on the / 4/& day of December, 2004. Secretary j00031767.DOC v:1) RESOLUTION NO. 0y-o'1 RESOLUTION TO APPROPRIATE SUMS OF MONEY A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS FORTH BELOW, FOR THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO, FOR THE 2005 BUDGET YEAR. WHEREAS, the Board of Directors has adopted the annual budget in accordance with the Local Government Budget Law, on December 1 , 2004, and; WHEREAS, the Board of Directors has made provision therein for revenues in an . amount equal to or greater than the total proposed expenditures as set forth in said budget, and; 'WHEREAS, it is not only required by law,but also necessary to appropriate the revenues provided in the budget to and for the purposes described below,thereby establishing a limitation — on expenditures for the operations of the Resource Colorado Water and Sanitation Metropolitan District. —. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO: I. That the following sums are hereby appropriated from the revenue of each fund, to each fund, for purposes stated: General Fund: $58, 500 Debt Service Fund: $0 Capital Projects Fund: $ 27, 500 , 00(1 Emergency Reserve Fund: $ 1,5 00 Enterprise Fund: $ ADOPTED this P 1 `K- day of December, 2004. Pre g e Attest: By: �. Secre ry ' {00031914.DOCv:1; Gc7. Goo 5 t — Division of Local Government January 27, 2005 Page 2 RECEIPT OF 2004 BUDGET PROCEEDINGS _. We have received the 2004 budget proceedings for the Resource Colorado Water and Sanitation Metropolitan District this day of January, 2005. STATE OF COLORADO DIVISION OF LOCAL GOVERNMENT • ELIZABETH VILLEGAS By: Title: JAN 2 8 2005 Dept. of Zocai Affair I {00034686.DOC v:I} Y 7- 0005 O' MCGEADY SISNEROS, R C. ATTORNEYS AT LAW • 1675 BROADWAY,SUITE 2100 DENVER,COLORADO 80202 TELEPHONE:(3031 592-4380 FACSIMILE:1303)592-4395 WWW.MCGEADYSISNEROS.COM W.MCGEADYSISNEROS.COM PP• MARYANN M.MCGEADY SPECIAL COUNSEL DARLENE SISNEROS KENNETH M.KOPROW ICZ MARY JO DOUGHERTY ANNE K.LAPORTA MEGAN BECHER VALERIE D.BROMLEY �• RUSSELL W.DYKSTRA KATHRYN S.KANDA JACOUELINE C.MURPHY GEORGE M.ROWLEY January 27, 2005 VIA HAND DELIVERY Division of Local Government 1313 Sherman St., Room 520 Denver, CO 80203 Re: Resource Colorado Water and Sanitation Metropolitan District Dear Sir or Madam: Enclosed for your information and records is a copy of the 2004 budget proceedings for the Resource Colorado Water and Sanitation Metropolitan District. To confirm our records that you have received the proceedings, please sign the enclosed Receipt and fax it back to me at 303-592-4385. If you have any questions pertaining to the budget, please feel free to contact our office. Very truly yours, MCGEADY SISNEROS,P.C. _ Elisabeth A. Cortese Paralegal Enclosure '•• {00034686.DOC v:1) Y Division of Local Government January 27, 2005 Page 2 RECEIPT OF 2004 BUDGET PROCEEDINGS -- We have received the 2004 budget proceedings for the Resource Colorado Water and Sanitation Metropolitan District this day of January, 2005. STATE OF COLORADO DIVISION OF LOCAL GOVERNMENT By: Title: {00034686.DOC v:l) RESOLUTION NO. 04-004 RESOLUTION TO ADOPT BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO,FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2004, AND ENDING ON THE LAST DAY OF DECEMBER 2004. WHEREAS, the Board of Directors of Resource Colorado Water and Sanitation Metropolitan District has appointed Clifton Gunderson LLP to prepare and submit a proposed budget to said governing body at the proper time; and WHEREAS, Clifton Gunderson LLP has submitted a proposed budget to this governing body on December 14, 2004 for its consideration, and; WHEREAS, upon due and proper notice,published or posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place, a public hearing was held on December 14, 2004, and interested taxpayers were given the opportunity to file or register any objections to said proposed budget, and; WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District, Weld County, Colorado: 1. That the budget as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the budget of the Resource Colorado Water and Sanitation Metropolitan District for the year stated above. 2. That the budget hereby approved and adopted and made a part of the public _ records of the Resource Colorado Water and Sanitation Metropolitan District. (00031765.DOC v:1) ADOPTED this I4 day of December, 2004. RESOURC IWCT e t Attest: By: Secret 2 _. 8= 0[1 LLP Cerilid Public Accanny i CewdWOr January 28,2005 Board of Directors • Resource Colorado Water and Sanitation Metropolitan District Enclosed are copies of the 2004 Budget for the Resource Colorado Water and Sanitation Metropolitan District as adopted by the Board at its meeting on December 14, 2004. By copy of this letter, we are sending two copies of the final budget to Anne Laporta at McGeady Sisneros PC who will file one copy of the budget with the State Division of Local Governments, as required by statute. Please call if you have any questions. — Very truly yours, CLIFTON GUNDERSON,LLP Certified Public Accountants&Consultants cc: Anne Laporta 6399 Sarah Fiddle,',C Circle,Suite 100 Greenwood Village,Calorodo 80111 .— te1-303.779.5710 fu:303.779.0348 ..�..... www.enrtoncpa.cons Offices in 13 states and Washington,DC HLB ina.,...uee.r • i■ alitort Gundezzon LLP Certified na0c,ten.&CwAww. Accountant's Report Board of Directors Resource Colorado Water and Sanitation Metropolitan District Adams County, Colorado We have compiled the accompanying forecasted budget of revenue, expenditures, and funds available of the Resource Colorado Water and Sanitation Metropolitan District for the General Fund for the year ending December 31,2004 in accordance with attestation standards established by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of a forecast information that is the representation of management and does not include evaluation of the support for the assumptions underlying the forecast. We have not examined the forecast and, accordingly, do not express an opinion gr any other form of assurance on the accompanying budget of revenue, expenditures, and funds available or assumptions. Furthermore, there will usually be differences between the ^, forecasted and actual results because events and circumstances frequently do not occur as expected,and those differences may be material. We have no responsibility to update this report for events or circumstances occurring after the date of this report. Management has elected to omit the summary of significant accounting policies required by the guidelines for presentation of a forecast established by the American Institute of Certified Public Accountants. If the omitted disclosures were included in the forecast, they might influence the user's conclusions about the District's results of operations for the forecasted periods. Accordingly,this forecast is not designed for those who are not informed about such matters. We are not independent with respect to the Resource Colorado Water and Sanitation Metropolitan District. Greenwood Village,Colorado December 14,2004 6399 South Fiddler's Green Cirek,Suite 100 Greenwood Village,Colemdo 80111 tel:3037793710 fax:303.779.0318 www.diftoncpa.coa Offices in 13 states and Washington,DC HLB n.owui RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT — GENERAL FUND FORECASTED 2004 BUDGET AS ADOPTED For the Vein Ended and Ending December 31, _ 12/14/04 ADOPI'ED 2004 BEGINNING FUNDS AVAILABLE S - REVENUE Property taxes Specific ovmcrship tax - Investment income _. System development fees - Developer advance 50,000 Bond proceeds - �' Total revenue 50,000 TRANSFERS IN Capital Projects Fund - -� Debt Service Fund - Total transfers in - —' Total funds available 50,000 EXPENDITURES Accounting 500 n. Audit - Bond Isom cost - County Treasurers fees - -. Director&m - Election cost - Insurance 3,000 22,000 Management 22,000 bfisceilaneotn 1,000 Contingency - _. Total expenditures 48,500 TRANSFERS OUT Capital Projects Fund - Debt Service Fund - Total transfers out - ... Total expenditures and hasten out requiring appropriation 48,500 ENDING FUNDS AVAILABLE S 1,500 EMERGENCY RESERVE S These financial statement should be read only in connection with the accompanying accountant's report and summery of significant assmnpdons. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2004 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided Resource Colorado Water and Sanitation Metropolitan District was organized to provide construction, installation, financing and operation of public improvements, including water and sanitary sewer. The District's service area is located entirely within Weld County,Colorado. The District was formed by Court Order on November 16,2004,with its formation election held on November 2,2004. _. The District prepares its budget on the modified accrual basis of accounting, except that Developer Advances are recorded as revenue and the repayment of Developer Advances are recorded as expenditures; whereas the financial statement presentation, in accordance with generally accepted accounting principles (GAAP), records these transactions as fund liabilities _ and does not affect the operating statement. Consequently the terminology of"Funds Available" is used in the budget to distinguish the difference from GAAP accounting for Fund Balance. Funds Available represents each fund's current assets less its current liabilities except for the "' developer advance fund liability. — Revenue Developer Advances The District is in the development stage and the Developer is anticipated to advance expenditures necessary for the District's operation and capital outlay. Expenditures Administrative Expenditures —' Administrative expenditures have been provided based on estimates of the District's Board of Directors and consultants and include the services necessary to maintain the District's administrative viability such as legal, accounting, managerial, insurance, meeting expense, and — other administrative expenses. Page 3 RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT 2004 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS (Continued) Reserves Emergency Reserve The District has provided for an emergency reserve fund equal to at least 3% of fiscal year spending for 2004,as defined under TABOR. Debt and Leases The District's has no debt or operating or capital leases. This information is an integral part of the accompanying forecasted budget. Page 4 I, Joel 11• fa✓k aS , hereby certify that I am a Director and the duly elected and qualified Secretary of the Resource Colorado Water and Sanitation Metropolitan District, and that the foregoing is a true and correct copy of the budget for the budget year 2004, duly adopted at a meeting of the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District held on the / LH& day of December,2004. Secretary {00031765.DOC v:11 RESOLUTION NO. Ott-0 6 RESOLUTION TO APPROPRIATE SUMS OF MONEY A RESOLUTION APPROPRIATING SUMS OF MONEY TO THE VARIOUS FUNDS AND SPENDING AGENCIES, IN THE AMOUNT AND FOR THE PURPOSE AS SET FORTH BELOW,FOR THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO, FOR THE 2004 BUDGET YEAR. WHEREAS, the Board of Directors has adopted the annual budget in accordance with the Local Government Budget Law, on December / , 2004, and; WHEREAS, the Board of Directors has made provision therein for revenues in an amount equal to or greater than the total proposed expenditures as set forth in said budget, and; WHEREAS, it is not only required by law, but also necessary to appropriate the revenues provided in the budget to and for the purposes described below, thereby establishing a limitation on expenditures for the operations of the Resource Colorado Water and Sanitation Metropolitan District. —• NOW, THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, WELD COUNTY, COLORADO: 1. That the following sums are hereby appropriated from the revenue of each fund, to each fund, for purposes stated: General Fund: $ 48,500 Debt Service Fund: $ 0 Capital Projects Fund: $ 0 Emergency Reserve Fund: $ 1,5 0 0 Enterprise Fund: $ ADOPTED this /4' . day of December, 2004. By: resi en Attest: By: Secret y j00031915.DOC v:1) RESOLUTION TO AMEND 2005 BUDGET RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT WHEREAS, the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District adopted a budget and appropriated funds for the fiscal year 2005 as follows: General Fund $ 58, 500 Enterprise Fund $27, 500, 000 WHEREAS, the necessity has arisen for additional expenditures in the General Fund requiring the unanticipated expenditure of funds in excess of those appropriated for the fiscal year 2005; and WHEREAS, the expenditure of such funds is a contingency which could not have been reasonably foreseen at the time of adoption of the budget; and WHEREAS, funds' are available for such expenditures in the General Fund from developer advances; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District shall and hereby does amend the adopted Budget for the fiscal year 2005 and adopts a supplemental budget and appropriation for the General Fund for the fiscal year 2005, as follows : General Fund $250, 000 BE IT FURTHER RESOLVED, that such sums are hereby appropriated from the revenues of the District to the proper funds for the purposes stated. DATED this 5th day of December, 2005 . RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT By: - Assistan ntzczuir 2005 BUDGET AMENDMENT RESOLUTION flleirso 1 LLP Certified Public Accountants&Consultants Accountant's Report Board of Directors Resource Colorado Water&San. Dist. Weld County,Colorado We have compiled the accompanying balance sheet - governmental funds Resource Colorado Water & San. Dist. as of October 31, 2005, and the related statement of revenue, expenditures and changes in fund balance - budget and actual for the period from January 1,2005 through October 31, 2005,for the General Fund, and the accompanying supplemental information, which is presented only for additional -- analysis purposes, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements and supplemental schedules information that is the representation of management. We have not audited or reviewed the accompanying financial statements and supplemental information and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit the management discussion and analysis, the government-wide financial statements,the statement of revenue,expenditures and changes in fund balance-governmental — funds, and substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the District's financial position and results of operations. Accordingly,these financial —. statements are not designed for those who are not informed about such matters. We are not independent with respect to Resource Colorado Water& San.Dist.. Clifton Gunderson LLP Greenwood Village,Colorado November 23,2005 Offices in 14 states and Washington,DC t • a -. RESOURCE COLORADO WATER& SAN. DIST. FINANCIAL STATEMENTS OCTOBER 31,2005 TABLE OF CONTENTS PAGE Accountant's Report I Financial Statements 2 __ Supplemental Information 4 Accountant's Report Board of Directors Resource Colorado Water&San. Dist. Weld County,Colorado We have compiled the accompanying balance sheet- governmental funds Resource Colorado.Water& _. San. Dist. as of October 31, 2005, and the related statement of revenue, expenditures and changes in fund balance- budget and actual for the period from January 1,2005 through October 31,2005, for the General Fund, and the accompanying supplemental information, which is presented only for additional analysis purposes, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements and supplemental schedules information that is the representation of management. We have not audited or reviewed the accompanying financial statements and supplemental information and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit the management discussion and analysis, the government-wide financial statements,the statement of revenue,expenditures and changes in fund balance-governmental funds, and substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the District's financial position and results of operations. Accordingly,these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to Resource Colorado Water& San. Dist.. Clifton Gunderson LLP Greenwood Village,Colorado November 23,2005 - RESOI CE COLORADO WATER & : N. DIST. BALANCE SHEET-GOVERNMENTAL FUNDS OCTOBER 31,2005 '^ colts General Debt Service Projects Total ASSETS Cash S 16,476 S - S 5,099 S 21,575 TOTAL ASSETS S 16,476 S - S 5,099 S 21,575 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 5 4,240 S - S 2,566 S 6,806 Total liabilities 4,240 - 2,566 6,806 -- FUND BALANCES Fund balances 12,236 - 2,533 14,769 TOTAL LIABILITIES AND FUND BALANCES S 16,476 S - S 5,099 S 21,575 Those financial statements should be read only in connection with the accompanying accountants report. 2 RESOURCE COLORADO WATER & SAN. DIST. STATEMENT OF REVENUE,EXPENDITURES AND -• CHANGES IN FUND BALANCE-BUDGET AND ACTUAL FOR THE TEN MONTHS ENDED OCTOBER 31,2005 GENERAL FUND Annual Year to Date Budeet Actual Variance REVENUE Interest income $ - $ 411 $ 411 Developer advance 60,000 132,328 72,328 Total revenue 60,000 132,739 72,739 EXPENDITURES • -- Accounting 1,500 5,414 (3,914) Insurance and bonds 12,000 1,322 10,678 District management 22,000 15,072 6,928 _. Legal services 22,000 98,409 (76,409) Miscellaneous 1,000 267 733 Banking fees - 19 (19) Total expenditures 58,500 120,503 (62,003) EXCESS OF REVENUE OVER — (UNDER)EXPENDITURES 1,500 12,236 10,736 OTHER FINANCING SOURCES(USES) — Total other financing sources(uses) - - - EXCESS OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES 1,500 12,236 10,736 FUND BALANCE-BEGINNING - - - FUND BALANCE-ENDING $ 1,500 $ 12,236 $ 10,736 These financial statements should be read only in connection with the accompanying accountant's repot 3 SUPPLEMENTAL INFORMATION RESOURCE COLORADO WATER& SAN.DIST. SCHEDULE OF REVENUE,EXPENDITURES AND -- CHANGES IN FUND BALANCE-BUDGET AND ACTUAL FOR THE TEN MONTHS ENDED OCTOBER 31,2005 DEBT SERVICE FUND Annual Year to Date ' Budeet Actual Variance REVENUE Total revenue $ - $ - $ - —• EXPENDITURES Total expenditures - EXCESS OF REVENUE OVER (UNDER)EXPENDITURES - _. OTHER FINANCING SOURCES(USES) Total other financing sources(uses) - - EXCESS OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER USES - - -• FUND BALANCE-BEGINNING - - FUND BALANCE-ENDING $ - $ - $ These financial statements should be read only in connection with the accompanying accountant's report. 5 RESOURCE COLORADO WATER& SAN.DIST. SCHEDULE OF REVENUE,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL FOR THE TEN MONTHS ENDED OCTOBER 31,2005 CAPITAL PROJECTS FUND _ Annual Year to Date Budeet Actual Variance _ REVENUE Developer advance $ 27,500,000 $ 92,156 $(27,407,844) Total revenue 27,500,000 92,156 (27,407,844) EXPENDITURES Legal services - 14,623 (14,623) Water 27,000,000 - 27,000,000 Engineering 500,000 75,000 425,000 Total expenditures 27,500,000 89,623 27,410,377 EXCESS OF REVENUE OVER (UNDER)EXPENDITURES - 2,533 2,533 •s OTHER FINANCING SOURCES(USES) _ Total other financing sources(uses) - - - EXCESS OF REVENUE AND OTHER FINANCING SOURCES OVER ._ EXPENDITURES AND OTHER USES - 2,533 2,533 FUND BALANCE-BEGINNING - - - FUND BALANCE-ENDING $ - $ 2,533 $ 2,533 These financial statements should be read only in connection with the accompanying accountant's mpon. 6 —' Resource Colorado Water and Sanitation Metropolitan District Statement of Cash Position As of 12/05/2005 Checking Account Balance at 10/31/05 $ 21,575.32 Vouchers Payable 11/23/05-12/05/05 (8,558.39) Anticipated balance at 12/05/05: $ 13,016.93 SUMMARY OF REIMBURSEMENT DUE DEVELOPER: General Fund Capital Fund Total CASH ADVANCE 5/27/05 $ 1,300.00 $ - $ 1,300.00 -- Developer Directly Paid Legal Costs(McGeady Sisneros)June 8,936.68 12,748.78 21,685.46 Developer Directly Paid Legal Costs(McGeady Sisneros)July 3,793.48 9,185.57 12,979.05 CASH ADVANCE 07/20/05 108,881.30 9,118.70 118,000.00 -- CASH ADVANCE 09/20/05 22,146.82 8,037.24 30,184.06 CASH ADVANCE 09/22/05 - 75,000.00 75,000.00 S 145,058.28 S 114,090.29 S 259,148.57 This information should be read in connection with the accompanying accountant's report. -' 7 MEMORANDUM To: Weld County Colorado From: McGeady Sisneros, PC Date: July 31, 2005 Re: Resource Colorado Water and Sanitation Metropolitan District Election Authorization Principal Amount of Principal Amount of Principal Amount of Authorization _ Authorized Debt Authorization Used Remaining Purpose Streets $324,000,000.00 $0.00 $324,000,000.00 Water Supply System $324,000,000.00 $0.00 $324,000,000.00 Sanitary Sewer System $324,000,000.00 $0.00 $324,000,000.00 Mosquito Control $324,000,000.00 $0.00 $324,000,000.00 Improvements Total .$1;296,000,000:@_t ru !..l244$9, $0 k 'h'" 96000≥000;11.0 O&M Debt $50,000,000.00 $0.00 $50,000,000.00 Refinancing $324,000,000.00 $0.00 $324,000,000.00 Operations and Maintenance $324,000,000.00 $0.00 $324,000,000.00 Operations Expenses or Advances —• $50,000,000.00 $0.00 $50,000,000.00 IGA for Debt $324,000,000.00 $0.00 $324,000,000.00 IGA for Regional Improvements Allowed Authority to Collect/Spend Facilities Fees, charges, tap fees Allowed Date of Last Election: November 2, 2004 00041875.XLS V:1 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 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. These Rules and Regulations shall be effective on the date of adoption by a majority of the Board at a public meeting. The Board of Directors 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 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. Adopted the l8`h day of July, 2005 RESOURCE COLO ATE ND SANITATION OPOLI By eutsch, President Attest: By: Its: Secretary EFFECTIVE DATE JULY 18, 2005 \ (0004646o.DOC v:2) j 'v 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 2.1.8 Other Conditions for Service 15 (00046460.DOC vi) 1 2.1.9 Responsibility for Costs of Providing Service within Service Provider's System 16 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 20 -� 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 21 3.3.1 Limitations to Protect District Water Supply 21 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 {00046460.DOC v:2) 11 6.1.7 Post-treatment Waters 24 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/INDUSTRIAL WASTE CONTROL 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 8.3.1 Penalties 28 — 8.4 Legal Authority Requirements 29 8.4.1 Ordinance/Resolution 29 8.4.2 Attorney's Statement 30 — 8.4.3 Legal Authority Exemption 30 8.5 Program Procedure Requirements 30 8.5.1 General 30 8.5.2 Procedures Manual 30 8.5.3 Industrial Waste Survey 31 8.5.4 Notification to Industrial Users 31 — 8.5.5 Permitting of Significant Industrial Users 31 8.5.6 Monitoring of Industrial Users 31 8.5.7 Slug Discharge Determinations 31 8.5.8 Compliance Activities 31 8.5.9 Industrial User Reporting/Confidentiality 31 8.5.10 Public Participation: 32 — 8.5.11 Information Transmittal 32 8.5.12 Staffing, Costs, and Funding 32 8.6 Extra-Jurisdictional Industrial Users 33 — {00046460.DOC v:2) iii 8.7 Exemptions 33 8.8 Program Review 33 8.9 Remedies 34 8.9.1 Emergency Remedies 34 8.9.2 Routine Remedies 34 8.10 Program Preemption 35 8.11 Program Delegation 35 8.12 District Monitoring 35 8.13 General Requirements Regarding Deleterious Wastes. 36 8.14 Prohibited Discharges. 37 8.15 Specific Discharge Limitations—Service Providers 39 8.16 Applicability 39 8.17 General Discharge Prohibitions. 39 8.18 Specific Discharge Limitations—Users 40 8.18.1 District Limitations 40 8.18.2 National Categorical Pretreatment Standards 40 8.18.3 State Requirements 40 8.18.4 Dilution Prohibited 40 8.19 Insignificant Discharges 41 8.20 Accidental Or Unusual Discharges. 41 8.20.1 Accidental Discharge Protection 41 8.20.2 Notification Requirements: 41 8.20.3 Slug Discharge Plan Requirements 42 8.21 Hazardous Waste Discharge Notification. 42 8.22 Wastewater Contribution Permits. 42 8.22.1 Applicability 42 8.22.2 Permit Application 43 8.22.3 Permit Issuance 44 8.22.4 Permit Denial; Appeal and Hearing 45 8.22.5 Permit Conditions 45 8.22.6 Permit Modifications 46 8.22.7 Permit Duration; Reapplication 46 8.23 Reporting Requirements For Significant Industrial Users. 46 8.23.1 Initial Compliance Report For Users Subject To National Categorical -. Pretreatment Standards 46 8.23.2 Periodic Compliance Reports 47 8.24 Monitoring District Facilities 47 —' 8.25 Information Submittal, Inspection and Sampling. 48 8.26 Wastewater Treatment 48 8.27 Confidential Information 48 8.28 Remedies For Noncompliance; Enforcement. 49 8.28.1 Notice Of Violation 49 8.28.2 Administrative Orders 49 —' 8.28.3 Compliance Orders; Compliance Schedules 49 8.28.4 Suspension Of Service 50 8.28.5 Permit Revocation 50 (00O46460.DOC v:2) iv 8.28.6 Penalties 51 8.28.7 Legal Action 51 — 8.28.8 Appeal and Hearing Procedure 51 8.29 Charges and Fees 51 ARTICLE 9. CROSS-CONNECTION CONTROL AND BACKFLOW CONTROL POLICY AND REGULATIONS 52 9.1 General. 52 — 9.1.1 Policy 52 9.1.2 Responsibility 52 9.1.3 Service Provider Requirements 52 — ARTICLE 10. MISCELLANEOUS 53 10.1 Liability: 53 — 10.1.1 District Not Liable 53 10.1.2 District Not Responsible for Damages 53 10.1.3 Officials Not Liable 53 — 10.1.4 Non-Liability for Work of Others 53 10.1.5 Indemnity 54 10.1.6 Non-Waiver 54 — 10.1.7 Notices and Written Submissions 54 ARTICLE 11. PROVISIONS REGARDING MOSQUITO CONTROL SERVICES 55 _ ARTICLE 12. PROVISIONS REGARDING STREET IMPROVEMENTS 55 ARTICLE 13. PROVISIONS REGARDING EMPLOYEE AND PERSONNEL MATTERS 55 {00046460.DOC v:2} V ARTICLE I. " 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 {00046460.DOC v:2} 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 effect 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 {00046460.DOC v:2) 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 repeale4 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. _ {00046460.DOC v:2) 3 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 — {00046wo.DOC v:2} 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. (00646460.DOC v:2) 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. — (0 BOD5 (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 semc.)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 semc. (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. (00046460.DOC v:2} 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: (00046460.DOC v:2} 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. {00046460.DOC v:2} 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 definition includes any devices and systems used in the storage, (00046460.DOC v:2) 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). - (rr) 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; 100046wo.DOC v:2} 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. _- {00046460.DOCv:2) 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. — (111) 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. (mmm)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. — (00046 60.DOC v:2) 12 (000) 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 _ (00O46460 DOC v:2) 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 — (00046460.DOc v:2} 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 (00046460DOC v:2) 15 addition to the dedication of water rights that may be 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 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 other costs {00046460.DOC v:2} I6 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, (00046460.DOC v:2) 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]. 100046460.DOC v:2) 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. {00046460.DOCv:2} 19 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 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]. (0004(460.DOC v:2) 20 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 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. __ (00046460.OOC v:21 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. (00046460.OOO v:2) 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. (0 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 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. (00046460.DOC v:2} 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. (t) 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 (00046460.DOC v:2} 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, commercial or industrial wastewater that does not meet National Pretreatment Standards including, but not limited to those standards adopted by the Metro Wastewater Reclamation {00046460.DOC v:2} 25 District as of the Effective Date hereof or as amended from time to time, incorporated herein by reference. — 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 (00046460.DOC v:2) 26 - to install suitable pretreatment facilities or take other appropriate remedial measures as directed by the District. 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/INDUSTRIAL WASTE CONTROL _. 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. _, (00046460.DOC v2) 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 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. Each Service Provider will cause all sewage at any time discharged directly or indirectly into its sewer system, or into the District Wastewater System by it or on its behalf, to comply with any requirements of the District. In all cases where the application or the enforcement of said requirements involve technical or scientific analyses or determinations, the District shall have final authority as to methods, standards, criteria, significance, evaluation, and — interpretation of such analyses and determinations. Each Service Provider will permit no new connections and will discontinue existing public connections and will require the discontinuance of existing private connections to its sewer system which allow entrance therein of such sewage — as will cause the discharge at any time into its sewer system,or into the District Wastewater System from such sewer system of sewage that does not comply with said requirements of the District. — The District may from time to time make a determination of the respects in which sewage discharged or to be discharged into the sewer system of a Service Provider, or into the — District Wastewater System by any Service Provider, is not in compliance with said requirements and with the amendments thereof, if any, then in effect. A copy of said determination shall be mailed to the Service Provider at its usual place of business and for all purposes of these Rules and Regulations shall be conclusively deemed to have been made in accordance with this section and to be correct at the expiration of thirty(30)days after such mailing unless within said period of thirty(30) days the Service Provider shall have filed with the District an objection thereto — stating that such determination is incorrect and stating the changes therein which should be made in order to correct such determination. 8.3.1 Penalties: Any Service Provider who is found to have violated any provision of this Article 8 shall be subject to a penalty not to exceed, except as noted below, five thousand dollars ($5,000) for such violation. Each day on which a violation occurs or continues — shall be deemed a separate and distinct violation. Such penalty shall be in addition to any actual damages the District may incur because of such violation. {00046460.DOC v:2} 28 In addition to the penalties provided here, 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 Service Provider found to have violated these Rules and Regulations. Where a violation is found to have caused Interference or Upset, the maximum penalty of$5,000 per violation described above may be increased as necessary to allow the District to recover any fines or penalties paid by the District for NPDES permit violations due to - the Interference or Upset. 8.4 Legal Authority Requirements. 8.4.1 Ordinance/Resolution: Except as provided in Subsection 8.4.3, each Service Provider will enact and enforce an ordinance or resolution which conforms to 40 CFR §403.8(f)(1)Pretreatment Program Requirements, as from time to time amended, for legal authority and containing all other legal provisions mandated by these Rules and Regulations. Any proposed amendments to such ordinance or resolution, or any proposed actions which would serve to amend such ordinance or resolution with respect to any pretreatment program requirements, must be submitted to the District for review, and must be approved in writing by the District,prior to such enactment. Each Service Provider shall adopt and enforce in its ordinance or resolution provisions which are in conformance to the following provisions: (a) A provision requiring any Industrial User responsible for a significant accidental or unusual discharge to notify immediately both the Service Provider and the District. (b) A provision precluding, except where authorized by Categorical Standards, the use of dilution to attain conformance to Pretreatment/Industrial Waste Control Standards, and authorizing the Service Provider to set mass limitations for any Industrial User using improper dilution. (c) A provision forbidding and where possible penalizing the knowing transmittal of false information by an Industrial User to the Service Provider or District. (d) A provision requiring the installation of all necessary monitoring and pretreatment facilities by Industrial Users. This provision shall also authorize the Service Provider to impose compliance schedules on Industrial Users for the installation of such -• facilities. (e) A provision applying civil or criminal penalties or, where _. permitted by 40 CFR §403.8(f)(1),assessing liquidated damages against Industrial Users which violate Pretreatment/Industrial Waste Control Standards and Requirements. Where possible, such penalties and liquidated damages shall be set at a level determined by the District to provide _. a reasonable degree of deterrence to violations. (0 A provision adopting discharge limitations for Users at least as stringent as the corresponding limitations in Article 8, Part B of these Rules and Regulations. (00046460.DOC v:2) 29 (g) A provision requiring that Industrial Users agree to act and allow the District to act as provided under the provisions of this Article 8. (h) A provision requiring that any User discharging any toxic Pollutants which cause an increase in the cost of managing the effluent or the sludge of the — District's POTW shall pay for such increased costs. 8.4.2 Attorney's Statement: Except as provided in Subsection 8.4.3, each — Service Provider must submit to the District an Attorney's Statement which conforms to the requirements of 40 CFR §403.9(b)(1), and which certifies that the Service Provider has adequate authority to carry out its responsibilities under the District's Pretreatment/Industrial Waste Control Program including the provisions of these Rules and Regulations. 8.4.3 Legal Authority Exemption: Any Service Provider that does not serve any — commercial or Industrial Users may submit a letter to the District in lieu of enacting the ordinance or resolution, and submitting the Attorney's Statement, as required by these Rules and Regulations. The letter must state that the Service Provider has no commercial or Industrial _ Users, and must identify any nonresidential Users served. Furthermore, any Service Provider submitting such a letter shall (1)notify the District at least fourteen(14) days in advance of the date that any commercial or Industrial User is granted a sewer connection and(2) fully comply with the District's Pretreatment/Industrial Waste Control Program, including the requirements of these Rules and Regulations, and the Federal Pretreatment Regulations prior to allowing that User to connect to the Service Provider's sewer system. The District, at its own discretion, may — require any Service Provider to fully comply with these Rules and Regulations, regardless of whether or not the aforementioned letter has been submitted and/or previously accepted by the District. 8.5 Program Procedure Requirements. 8.5.1 General: Each Service Provider must formulate, fund, and implement procedures which will enable District compliance with the"Procedures"and"Funding" requirements contained in 40 CFR §403.8(0(2)and(3)of the Federal Pretreatment Regulations, and which will enable Service Provider compliance with the requirements of these Rules and — Regulations. 8.5.2 Procedures Manual: The District shall issue to all Service Providers a — manual on Procedures for Implementing the Pretreatment/Industrial Waste Control Program of the District(Procedures Manual). The Procedures Manual shall set forth District requirements on formulating, funding,and implementing Pretreatment/Industrial Waste Control Program procedures, and shall provide guidance to Service Providers on implementing the procedural requirements. Where necessary to maintain continued compliance with applicable federal and state regulations,or these Rules and Regulations, or to facilitate the operation of the Pretreatment/Industrial Waste Control Program, the District may from time to time amend the — Procedures Manual, and shall provide notice of such amendments to all Service Providers. (00046460.DOC v:2} 30 The following subsections highlight the procedural requirements that will be more fully presented in the Procedures Manual to be adopted by the District. 8.5.3 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. - 8.5.4 Notification to Industrial Users: Each Service Provider is responsible for notifying its Industrial Users of their obligations under the Pretreatment/Industrial Waste Control Program. 8.5.5 Permitting of Significant Industrial Users: Each Service Provider shall control,through permits, industrial waste discharges from each Significant Industrial User within its service area. 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. In the event that a Service Provider fails to issue a suitable permit to a Significant Industrial User upon notification to do so by the District, the District shall deny service to the Significant Industrial User, and may impose conditions upon the Service Provider to take such steps as are necessary to provide such service. 8.5.6 Monitoring of Industrial Users: Each Service Provider must sample, monitor, and inspect its Significant Industrial Users, and where appropriate,require industrial self-monitoring, at a frequency adequate to determine if such Users are in compliance with applicable Pretreatment/Industrial Waste Control Program Standards and Requirements. 8.5.7 Slug Discharge Determinations: Each Service Provider must evaluate, at least every two (2) years, whether each Significant Industrial User needs a plan to control slug —' discharges. If needed, the Slug Control Plan must contain the minimum elements listed at 40 CFR §403.8(f)(2)(v). - 8.5.8 Compliance Activities: Each Service Provider is required to implement procedures for identifying violators of Pretreatment/Industrial Waste Control Program Standards and Requirements, and to diligently enforce such Standards and Requirements and provide - suitable remedies for non-compliance. 8.5.9 Industrial User Reporting/Confidentiality: Each Service Provider is required to receive and analyze self-monitoring reports and any other notices submitted by Industrial Users pursuant to the requirements of the Pretreatment/Industrial Waste Control Program. Where an Industrial User claims confidentiality for any information transmitted, the Service Provider must implement procedures to ensure that confidential information is treated in accordance with the procedures in 40 CFR Part 2 and/or 5 CCR 1002-63. (00046460.DOC v:2) 31 8.5.10 Public Participation: (a) Each Service Provider must comply with the public participation — requirements of 40 CFR Part 25 in the enforcement of National Pretreatment Standards. (b) Each Service Provider must make all information collected under the Pretreatment/Industrial Waste Control Program, except those documents legitimately classified as"confidential,"available for public review and copying to the extent required by 40 CFR §403.14 and the Colorado Public Records Act(C.R.S. 1973,Title 24,Article 72). (c) The District will publish an annual notice in the newspaper with the largest daily circulation within the District, a list of Users that were found to be in significant — noncompliance during the previous year with Pretreatment Standards or other Pretreatment Requirements. For the purposes of this provision, "significant noncompliance"is as defined at 40 CFR §403.8(f)(2)(vii). - 8.5.11 Information Transmittal: Each Service Provider shall transmit to the District, in a timely manner, all documents as necessary to enable the District to effectively administer the Pretreatment/Industrial Waste Control Program. Such documents shall include: (a) A certified copy of the Industrial Waste Discharge Ordinance or Resolution, and any amendments thereto, together with any Rules and Regulations issued pursuant to such ordinance or resolution. (b) Copies of all Industrial Waste permits and contracts issued or — entered into pursuant to the requirements of the Pretreatment/Industrial Waste Control Program. (c) Copies of all industrial survey, monitoring, and inspection reports. — (d) Any information needed to enable the District to determine whether a particular Industrial User is subject to a particular Categorical Standard. — (e) Notices of all compliance and enforcement activities,and all related correspondence. — (f) An annual staffing, costs, and funding report, if requested by the District Manager(see Subsection 6.5.12). — 8.5.12 Staffing, Costs, and Funding: Each Service Provider must provide sufficient resources and qualified personnel to carry out its responsibilities under the Pretreatment/Industrial Waste Control Program. Upon request of the District,a Service Provider must submit to the District a report describing personnel responsibilities, an itemization of program capital and operating costs, and a demonstration that adequate funds are available to support program activities. — (00046460.DOC v:2) 32 8.6 Extra-Jurisdictional Industrial Users. -- Each Service Provider shall have the responsibility for those Industrial Users located outside its corporate limits, who discharge industrial wastewater into the Service Provider's sewer system. Each extra jurisdictional Industrial User shall be subject to an ordinance, resolution, or equivalent source of legal authority which contains 40 CFR §403.8(f)(1)minimum legal authorities and all other legal provisions mandated by these Rules and Regulations. Each extra jurisdictional Industrial User shall also be included in a Pretreatment Program which substantially conforms to 40 CFR §403.8(f)(2) and(3) "Procedures"and"Funding"requirements. To this end, the Service Provider shall make contractual arrangements with the extra jurisdictional legal entity exercising powers over the -- Industrial User providing either for the inclusion of the Industrial User in the District's Pretreatment/Industrial Waste Control Program, or for formal review of a Pretreatment Program administered by the extra jurisdictional legal entity. Where necessary to obtain compliance with -- Federal Pretreatment Regulations, the Service Provider shall enter into a separate contract with each extra jurisdictional Industrial User discharging into its sewer system. _. The Service Provider shall also secure by contract, as it applies to extra- jurisdictional Industrial Users, for each of the following District rights: (i)the right to inspect, sample, and monitor Industrial Users, (ii)the right to terminate service to an Industrial User on an emergency basis, (iii)the right to determine the applicability of Categorical Standards and to determine Significant Industrial Users,(iv)the right to receive copies of all monitoring reports, (v)the right to enforce all Article 8 discharge limitations and(vi) the right to act in lieu of the Service Provider in executing Pretreatment/Industrial Waste Control Program responsibilities. Where the Service Provider and extra jurisdictional legal entity fail to execute their Program responsibilities in obtaining compliance by extra jurisdictional Industrial Users with all applicable Pretreatment/Industrial Waste Control Standards and Requirements, the District shall have full recourse to the remedy provisions of these Rules and Regulations as they apply to the Service Provider receiving the industrial waste discharge in question. 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. 8.8 Program Review. The District shall review Municipal ordinances or other Service Provider resolutions,measures, guidelines, or regulations, and amendments thereof, for conformance to 40 CFR §403.8(f)(1) Pretreatment Requirements for minimum legal authorities and for the inclusion of all other legal provisions mandated by these Rules and Regulations. The District shall periodically review the enforcement efforts of Service Providers to ascertain whether {00046460 DOC v:2} 33 Pretreatment/Industrial Waste Control Requirements and Standards are being diligently enforced at the local level. — Insofar as a Service Provider administers the Pretreatment/Industrial Waste Control Program,the District shall periodically review the Service Provider's procedures, — including,but not limited to,procedures for updating the industrial waste survey,and for inspecting, sampling, and monitoring industrial waste discharges, to ensure that each such Service Provider is administering the Program in technical conformance to"Procedures" and — "Funding"requirements under 40 CFR §403.8(f)(2)and(3)of the Federal Pretreatment Regulations and to the provisions of these Rules and Regulations. Any significant Program changes shall be subject to District approval. — 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 with Pretreatment/Industrial Waste Control Requirements, 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. {00O4ow0.DOC v:2) 34 8.10 Program Preemption. - Where the District preempts a Service Provider in the execution of Pretreatment/Industrial Waste Control Program responsibilities, the District shall directly enforce Federal Pretreatment Standards, including Categorical Standards, and the provisions of Article 8 of these Rules and Regulations against the Industrial Users located within the service area of the Service Provider. The District may request that all industrial self-monitoring reports, including those required under 40 CFR §403.12,be conveyed directly to the District. Moreover, the -- District shall carry out all inspection and sampling activities necessary to monitor compliance with Pretreatment/Industrial Waste Control Standards and Requirements. Where Program preemption occurs, the District shall have the right to seek injunctive relief against the Service Provider and any Industrial User in order to obtain full compliance with Pretreatment/Industrial Waste Control Standards and Requirements. The District shall bill and the Service Provider shall be liable for costs incurred by the District in conjunction with the administration of the -- Program in lieu of the Service Provider, and the District may recover such costs, including attorneys fees and costs, in any manner permitted by law. The District shall have the right to require the cessation of any industrial wastewater discharge in violation of Pretreatment/Industrial Waste Control Standards and Requirements. Where the District finds an Industrial User to be in violation of any Pretreatment/Industrial Waste Control Standard or Requirement, the District may require the Industrial User to enter into a bilateral contract with the District containing any conditions, including conditions relating to the installment of pretreatment or monitoring facilities, necessary _. to ensure compliance with Pretreatment/Industrial Waste Control Standards and Requirements. At the discretion of the District, these conditions may be incorporated into the municipal industrial waste discharge permit or Agreement once Program responsibilities are returned to the Service Provider. 8.11 Program Delegation. Any Service Provider may enter into an Agreement with the District providing the District with the legal authority to carry out technical and administrative procedures necessary to implement the Pretreatment/Industrial Waste Control Program at the local level. These procedures may include, among others, updating the industrial waste survey,providing technical services relating to the issuance and review of industrial waste discharge permits, inspecting and monitoring industrial waste discharges, waste discharge facilities and operations of permittees, and providing technical assistance for local enforcement actions. Where Program delegation occurs, the delegation agreement shall contain provisions for the District to recover the costs, _ including attorneys fees and costs, incurred by the District in conjunction with the administration of the Program on behalf of the Service Provider. 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 {00046460.DOC v2) 35 Service Provider, or into the system of a Service Provider by any User,the District shall have the 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 RI-1 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 seg.). (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. (0 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. (00046460.DOC v:2) 36 (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. (1) 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 stormwater, 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 (00046460.DOC v:2) 37 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. {00046460.DOC v:2} 38 - (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 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 (00046460.DOC v.2) 39 ( 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 * 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: Except where permitted by Categorical Standards, no User may increase the use of process water or, in any way, attempt to dilute a discharge as a partial or complete substitute for adequate treatment to attain compliance with the limitations contained in National Categorical Pretreatment Standards or any other specific discharge limitations contained in this Article 8. The District may set or require a Service Provider to set (00046460.DOC v2} 40 - mass limitations or alternate concentration-based limitations for those Users which are using improper dilution to meet these limitations. 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 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 _, {00046460.DOC v:2} 41 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: At least every two (2) years, or as required by 40 CFR §403.8(f)(2)(v), the District shall evaluate whether each Significant — Industrial User needs a plan to control slug discharges. If a slug discharge plan is needed, it shall be submitted to the District for review and approval as directed by the District, and shall contain, at a minimum,the following elements: — (a) A description of discharge practices, including non-routine batch discharges. — (b) A description of stored chemicals. (c) Procedures for immediately notifying the District and the Service Provider providing sewage services of slug discharges, including any discharge that would violate any prohibition or limitation under Articles 8.17 or 8.18 of these Rules and Regulations, — with procedures for follow-up written notification within five (5) days. (d) If necessary, procedures to prevent adverse impact from accidental _ spills, including inspection and maintenance of storage areas,handling and transfer of materials, loading and unloading operations, control of plant-site runoff,worker training,building of containment structures or equipment,measures for containing toxic organic pollutants (including _ solvents), and/or measures and equipment for emergency response. 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. This notification requirement does not apply to pollutants already being reported under the reporting requirements contained in these Rules and Regulations. 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. — 8.22.1 Applicability: All Significant Industrial Users and other users as required by the District, contributing to or proposing to connect to or to contribute to the POTW, shall — obtain a Wastewater Contribution Permit. Such permit shall either be issued by the District, or co-issued by the Service Provider providing sewage services and the District or in a form acceptable to the District. — Requirements pertaining to permits co-issued with municipalities or issued solely by the District are contained in the District's Rules and Regulations. Permits co-issued with — Service Providers may also contain requirements contained in the various municipal codes, ordinances,resolutions,and rules and regulations. {0004660.OOC v:2) 42 8.22.2 Permit Application: Users required to obtain a Wastewater Contribution Permit shall complete and file with the District an application on the form prescribed by the District, and accompanied by a fee as determined pursuant to Article 8.29 of these Rules and Regulations. Applications Are Due: For new dischargers, at least 90 days prior to beginning discharge to the POTW. For existing dischargers who become subject to a newly promulgated Categorical Standard, at least 90 days prior to the effective date of such standard. For existing dischargers who,because of process changes or additions, will become subject to an existing Categorical Standard, at least 90 days prior to beginning discharge from the categorical process. For existing dischargers subject to Categorical Standards as of the effective date of this regulation, who have not previously obtained a Wastewater Contribution Permit, within 30 days of the effective date of this regulation. For all other dischargers, in a time frame as specified in notice from the _ District. In support of the application, the User shall submit, in units and terms appropriate for evaluation, the following information: (a) Name,mailing address, and facility location. (b) SIC number(s) according to the Standard Industrial Classification (SIC)Manual, Office of Management and Budget, 1987, as amended or the 1997 North American Industrial Classification System (NAICS), as amended. (c) Time and duration of wastewater discharges. — (d) Average daily and thirty(30)minute peak wastewater flow rates, including daily, monthly, and seasonal variations, if any. _. (e) Site plan, floor plans,mechanical and plumbing plans, and details to show all sewers, sewer connections, and appurtenances by the size, location,and elevation. _ (f) Description of activities, facilities, and plant processes on the premises including all materials which are or could be discharged. _ (g) Wastewater constituents and characteristics including,but not limited to,those limited by Articles 8.17 and 8.18 of these Rules and Regulations, as determined by a reliable analytical laboratory. Sampling and analysis shall be performed in accordance with {00046460.DOC v:2} 43 procedures established by the EPA pursuant to Article 304(g) of the act and contained in 40 CFR, Part 136, as amended. — (h) A statement regarding whether or not the discharge standards and pollutant limitations contained in Articles 8.17 and 8.18 of these Rules and Regulations, including any applicable State or national pretreatment standards, are being met on a consistent basis and if not, whether additional O&M and/or additional pretreatment is required for the User to meet the applicable standards. — (i) If additional pretreatment and/or O&M will be required to meet the discharge standards and pollutant limitations, the shortest schedule by which the User will — provide such additional treatment. For state or national pretreatment standards,the completion date in this schedule shall not be later than the compliance date established for the applicable pretreatment standard. — The schedule shall contain increments of progress in the form of dates for the commencement and completion of major events leading to the construction and operation of — additional pretreatment required for the User to meet the applicable discharge standards and pollutant limitations(e.g., Hiring an engineer, completing preliminary plans, completing final plans, executing contract for major components, commencing construction, completing — construction, etc.). In no case shall an increment of progress exceed nine(9)months. (j) Each product produced by type, amount,process or processes, and — rate of production. (k) The type and amount of raw materials processed(average and maximum per day). (1) The number and type of employees, and hours of operation of the plant, and proposed or actual hours of operation of the Pretreatment System. -" (m) Any other information as may be deemed by the District to be necessary to evaluate the permit application. — 8.22.3 Permit Issuance: The District shall issue a Wastewater Contribution Permit to the applicant if the District finds that all of the following conditions are met: — (a) The proposed discharge of the applicant is in compliance with the prohibitions and limitations of Articles 8.17 and 8.18 of these Rules and Regulations; — (b) The proposed discharge of the applicant would permit the normal and efficient operation of the wastewater treatment system; and _ (c) The proposed discharge of the applicant would not result in a violation by the District of the terms and conditions of its NPDES Permit. — If the District finds that the condition set out in Paragraph 1 of this Subsection is not met, the District may issue a Wastewater Contribution Permit to the applicant if the {00046460.DOC v:2} 44 conditions set out in Paragraphs 2 and 3 of this Subsection are met and if the applicant submits, and the District approves, a schedule setting out the measures to be taken by the applicant and the dates that such measures will be implemented to ensure compliance with the provisions of these Rules and Regulations. 8.22.4 Permit Denial; Appeal and Hearing. In the event an application for a Wastewater Contribution Permit is denied, the District shall notify the applicant in writing of - such denial. Such notification shall state the grounds for denial with that degree of specificity which will inform the applicant of the measures or actions which must be taken by the applicant prior to issuance of a permit. An applicant denied a Wastewater Contribution Permit may request that the District Manager review the denial and issue a permit. If the District Manager reaffirms the denial, the applicant may appeal this decision pursuant to the terms and conditions of the District's appeal and hearing procedure as set forth in these Rules and Regulations. 8.22.5 Permit Conditions: Wastewater Contribution Permits shall be expressly subject to all provisions of these Rules and Regulations. Permits will contain, at a minimum, the following: (a) A statement of duration(in no case more than five (5) years). - (b) A statement of non-transferability without, at a minimum,prior notification to the District and provision of a copy of the existing permit to the new Customer or operator. (c) Effluent limits based on applicable Pretreatment Standards, Categorical Pretreatment Standards, specific discharge limitations, as cited in these Rules and Regulations, site-specific discharge limitations, and other federal, state and local law and regulations. (d) Self-monitoring, sampling, reporting,notification, and record keeping requirements, including an identification of the pollutants to be monitored, sampling locations, sampling frequencies, and sample types. These requirements shall be based on applicable general pretreatment standards and requirements at 40 CFR §403; categorical -' pretreatment standards; specific discharge limitations; State and local law and regulations; and District determinations as to the type, quantity, quality, and frequency of information needed to adequately determine compliance with conditions of the permit. (e) A statement of applicable civil and criminal penalties for violation of pretreatment standards and requirements, and any applicable compliance schedules. Such -- schedules may not extend compliance dates beyond federal deadlines. (f) Permits may also contain the following: (g) A Schedule Of User Charges and Fees pursuant to Article 8.29 of these Rules and Regulations. [(1004r460.DOC v:2) 45 (h) Limits on average and maximum rate and time of discharge or requirements for flow regulation and equalization. — (i) Requirements for installation and maintenance of inspection and sampling facilities. — (j) Requirements for notification to the District of any new introduction of wastewater constituents or any substantial change in operations or in the volume or character of the wastewater constituents being introduced into the POTW. (k) Requirements for notification of slug discharges. — (1) Other conditions as deemed appropriate by the District to ensure compliance with these Rules and Regulations. — 8.22.6 Permit Modifications: • (a) The terms and conditions of a Wastewater Contribution Permit may be modified by the District during the term of the permit as limitations or requirements as identified in these Rules and Regulations are modified or other just cause exists. The User shall be informed of any proposed changes in his permit at least thirty(30)days prior to the effective — date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. — (b) Within nine(9)months of the promulgation of a national categorical pretreatment standard,the Wastewater Contribution Permit of Users subject to such standard shall be revised to require compliance with such standard within the time frame — prescribed by such standard. 8.22.7 Permit Duration; Reapplication: Permits shall be issued for a specified time period,not to exceed five(5) years. The User shall apply for permit reissuance a minimum of ninety(90) days prior to the expiration of the User's existing Permit. 8.23 Reporting Requirements For Significant Industrial Users. 8.23.1 Initial Compliance Report For Users Subject To National Categorical Pretreatment Standards: Within ninety(90)days following the date for final compliance with applicable Pretreatment Standards or,in the case of a new source, following commencement of the introduction of wastewater into the POTW, or as specified in the wastewater discharge permit, any User subject to Pretreatment Standards and requirements shall submit to the District a report indicating the nature and concentration of all pollutants in the discharge from the regulated processes which are limited by the Pretreatment Standards and requirements and the — average and maximum daily flow for those process units in the User's facility which are limited by such Pretreatment Standards or requirements. Where applicable Pretreatment Standards contain limitations on the mass of pollutants discharged per unit of production, the report shall also contain the pollutant mass and production information necessary to determine compliance with such Pretreatment Standards. — (00046460.DOC v:2} 46 - The report shall state whether the applicable Pretreatment Standards and Requirements are being met on a consistent basis and,if not,what additional O&M and/or pretreatment is necessary to bring the User into compliance with the applicable Pretreatment Standards or Requirements. This statement shall be signed by an authorized representative of the Industrial User, and —. certified to by a qualified professional. 8.23.2 Periodic Compliance Reports: (a) Any User subject to a National Categorical Pretreatment Standard, after the compliance date of such Pretreatment Standard, or, in the case of a new source, after commencement of the discharge into the POTW, shall submit to the District during the months of July and January,unless required more frequently in the pretreatment standard or by the District, a report covering the preceding six (6)months and indicating the nature and concentration of pollutants in the effluent which are limited by such pretreatment standards. In addition, this report shall include a record of average and maximum daily flows for the reporting period for all regulated processes. (b) Where applicable Pretreatment Standards contain limitations on the mass of pollutants discharged per unit of production,the report shall also contain the pollutant mass and production information necessary to determine compliance with such pretreatment standards. At the discretion of the District and in consideration of such factors as local high or low flow rates, holidays, and budget cycles, the District may agree to alter the months during which the above reports are to be submitted. (c) Significant Industrial Users not subject to National Categorical Pretreatment Standards shall submit to the District at least once every six(6)months (on dates specified by the District), unless required more frequently by the District, a description of the nature,pollutant concentrations, flows, and, where requested, pollutant masses, of the discharges required to be reported by the District. (d) All reports submitted pursuant to this section shall be based on analyses performed in accordance with procedures established by the administrator pursuant to Article 304(g) of the act and contained in 40 CFR, Part 136 and amendments thereto or with any other test procedures approved by the administrator. Sampling shall be performed in accordance with the techniques approved by the administrator. 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. (00O46460.DOC v:2) 47 The sampling and monitoring facilities shall be provided in accordance with the District's requirements and all applicable local construction standards and specifications. 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 _ (00O46a60.DOC v:2) 48 - "Confidential" A failure by the User to designate and identify any document in this manner — 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, the District's National Pollutant Discharge Elimination System and Colorado Discharge Pollutant System (NPDES/CDPS)Permit and/or the pretreatment program in accordance with 40 CFR Part 2 and/or 5 CCR 1002-63, Article 83.13. 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 _. (00046460.DOC v:2) 49 compliance(e.g.,Hiring an engineer, completing preliminary plans for pretreatment systems, 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 and/or a Wastewater Contribution Permit 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 and/or the Wastewater Contribution Permit 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 Contribution Permit and/or 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: Any User who has violated or is violating any provision of these Rules and Regulations, or any orders or permits issued or approved hereunder, is subject to having his permit revoked. Grounds for permit revocation include,but are not limited to: (a) Failure of a User to factually report the wastewater constituents and characteristics of his discharge. (b) Failure of the User to report significant changes in operations, or wastewater constituents and characteristics. (c) Refusal of reasonable access to the User's premises for the purpose of inspection or monitoring. {00046460.DOC v:2) 50 - (d) Violation of conditions of the permit. 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, five thousand dollars ($5,000) 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$5,000 per violation as described above may be increased as necessary to allow the 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. _„ (00046460.DOC v:2} 51 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: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 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.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. — (00046460.DOC v:2} 52 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. 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. (00046460.DOC v:2} 53 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 With copies to: — Gateway American Resources, LLC Consultant to Resource Colorado Water and Sanitation Metropolitan District — 9145 E. Kenyon Ave., Suite 200 Denver, CO 80237 Attention: Brad Simons, 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 tuao464 0 DOC v:2} 54 - 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 this 18th day of July, 2005,by the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District. __ (00046460.DOC v:2) 55 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] {00O464so.DOC v:2) A-1 - Exhibit B Connector Agreement for Wastewater Service tOO 46460.DOC v:2) B-1 Exhibit C Construction Modifications to Limit the Discharge of Harmful Wastes into the District's — District Facilities Grease Interceptors/Traps and Sand/Oil Interceptors/Traps 1. General Requirements for Service Providers' Rules and Regulations: a. Policy: Service Providers may require Customers to install a grease interceptor/trap and/or a sand/oil interceptor/trap on a waste line in order to protect the District's — Wastewater Facilities from the introduction of large quantities of grease, sand and/or oil. A determination by the District that a grease interceptor/trap and/or sand/oil interceptor/trap is required to be installed on a waste line in order to protect the District's Wastewater System from the introduction of grease, sand and/or oil shall be final and conclusive direction to the Service Provider to implement such requirement with Customer. i. Property/District Facilities Requiring Grease Interceptor or Trap: Service Providers shall approve grease/interceptor traps only in accordance with District standards in Article 1(b) herein. An approved grease interceptor/trap shall be installed on the — waste line leading from sinks,drains and all other fixtures or equipment in food preparation establishments such as(but not limited to)restaurants, cafes, lunch counters, cafeterias,bars and clubs, hotels,hospitals, factory kitchens, school kitchens, church kitchens or other establishments — where grease may be introduced into the District Facilities. ii. Property/District Facilities Requiring Sand/Oil Interceptor: — Service Providers shall approve sand/oil interceptor traps only in accordance with District standards herein. An approved sand/oil interceptor/trap shall be installed on the waste line for all parking and repair garages, filling stations, car washes, truck terminals with washout facilities, — engine steam cleaning facilities,commercial laundries, and any other commercial or industrial establishments that have wash racks or oil producing waste products. These establishments shall also have facilities to prevent storm or surface water drainage from entering the waste line. — iii. Residential Property: Residential Customers shall not be required to install grease interceptors/traps or sand/oil interceptors/traps for their dwelling units and — associated structures,unless the Service Provider determines there is a likely probability of a significant grease, sand or oil discharge into the District Facilities. iv. District Approval: All grease interceptors/traps and sand/oil — interceptors/traps shall meet specific requirements established by the District, and the installation of all grease and sand/oil interceptors/traps shall be subject to inspection and approval by the Service Provider in accordance with District standards. Additionally, all interceptors and traps must be approved by the District prior to installation. If a District inspection is requested by the Service Provider, the District shall charge an inspection fee in an amount to be determined by the District pursuant to schedules set forth in Table_ [Reserved]. v. Interceptor/Trap Maintenance: Proper maintenance and operation of all grease and sand/oil interceptors/traps shall be the responsibility of the Customers and the — Customers shall ensure that said interceptors/traps are maintained in proper working order. Service Providers shall require, at a minimum,the following: {00O46460.DOC v:2) Cl- - (1) Maintenance of interceptor/trap contents shall be performed by a contractor licensed to perform such work. Maintenance shall entail removal of entire interceptor/trap contents. Partial removal of contents (i.e.,removal of grease layer,oil layer or sludge layer) is not allowed. Contents removed from interceptors/traps shall be hauled off site and disposed of properly. All records of maintenance of interceptors/traps and of off-site hauling and removal of interceptors/traps contents shall remain on-site and accessible for review by Service Provider personnel. Under no circumstances shall interceptors/traps contents be re- introduced to the District Facilities. Maintenance of all interceptors/traps shall be performed on an as needed basis and at least once every 6 months or more than once every 6 months if necessary for the protection of the District Facilities. The District may institute an enforcement action to ensure compliance with these requirements. b. Technical Specifications and Design Criteria for Grease and Sand/Oil Inceptors/Traps: (1) Definitions: (a) Fixture Unit: A rating in terms of gallons per minute(gpm)representing the maximum amount of water that can flow from a fixture or piece of equipment in one minute. The value of one fixture unit("F.U".) is equal to 7.6 gpm. (b) Grease Interceptors—Types A& B: Two compartment interceptors normally located outside of a building and of the following sized: Type A: 750 - 1565 gallon capacity- see — [Reserved] Type B: 1566+ gallon capacity- see [Reserved] (c) In-line Grease Traps: A prefabricated unit, generally made of metal, for the trapping of grease normally set indoors under a sink or near the fixture connected to it. In-like grease traps are only allowed where it is not possible to go outside with a larger trap or where there is only a minor concern with grease (this will be determined only by the Service Provider and District). In-line grease traps may be connected to any water source with a discharge temperature greater than 140°F (60°F). (d) Pretreatment Facilities: Structures,devices or equipment including, but not limited to, interceptors for neutralizing or removing deleterious wastes from wastewater prior to its discharge into the District Facilities. c. Sampling: A periodic collection of wastewater as it flows through the District Facilities and/or a customer's service line. (1) Sand/Oil Interceptors - Types A& B: Two compartment interceptors normally located outside a building and of the following sizes: -" Type A:750 750 - 1565 gallon capacity- (00046460.DOC v:2) C-2 specifications to be determined Type B: 1566 +gallon capacity— specifications to be determined d. Testing: The laboratory analysis of wastewater. e. General Design Criteria for Interceptors: Establishments required to install grease and/or sand/oil interceptors due to the nature of their operations shall use the following design criteria. The design criteria stated below represent the minimum requirements for interceptors and do not reflect special circumstances that may necessitate increased sizing. — f. All interceptor installations shall contain two manholes, one accessing the interceptor's discharge line and one accessing the interceptor's influent line. These manholes — shall be accessible to the Service Provider and District at all times, and provide ample room for conducting discharge sampling and flow measurement activities. g. All interceptor installations shall meet the requirements of the District and all other local government requirements. The District will not be responsible for violations of Service Provider or other local government requirements. — h. Interceptor installation, including equipment, structural design, backfilling, safety provisions, etc. shall be the sole responsibility of the Customer and their suppliers, contractors, and other agents. i. Maintenance and removal of interceptor contents (i.e., grease, oil, sand, and water) shall be the sole responsibility of the Customer. j. All interceptors shall be accessible for inspection by the Service Provider and District. k. All interceptors shall be divided into two compartments, separated by a divider wall. The first compartment shall contain approximately 2/3 of the interceptor's total — volume. 1. All interceptors shall have a minimum capacity of 750 gallons, shall be concrete,unless otherwise specifically authorized by the District, and of a single,monolithic pour and shall be constructed in accordance with the District's detailed drawings attached hereto as Exhibit_ [Reserved]. — m. Inlet and outlet pipes for all interceptors shall be elbowed down below the water surface. — n. Grease interceptors shall have a first compartment grease volume equal to approximately 2 of the total first compartment water volume. o. Grease interceptor divider walls shall extend a minimum of 10"above the first compartment water surface. Water transfer to the second compartment shall be via a 90° — t00046460.DOC v:2} C-3 pipe elbow, turned down in the first compartment,with the bottom of the elbow located 6"to 12" above the floor depending on interceptor size. P. In-line grease interceptors are not permitted unless specifically approved — by the District. q. Sand/oil interceptors shall have a full-size divider wall between the first and second compartments. Flow between the compartments must travel over the top of the divider wall or through slots or ports near the top of the divider wall. _. r. Sizing Calculations for Grease Interceptors: Sizing calculations are to be prepared by the owner's engineer and submitted to the District per the following methods: s. Where food is served and seating capacity can be determined, compute: (Number of seats)x(0.9) x(2.2) =number of meals served per . meal period. 0.9 =a full capacity factor 2.2 =turnover rate per meal period or, (Number of meals served per meal period)x (2.5 gallons per meal)=volumetric water capacity of the grease interceptor. t. Where food is prepared and where seating capacity or number of meals cannot be adequately determined, the following rule shall apply: The Service Provider shall establish the fixture unit values for various pieces of equipment that may require connection to a grease interceptor. The total number of fixture units shall be multiplied by 7.5 gpm to determine maximum rate of flow (gpm) into the grease interceptor. The volumetric water capacity of the unit shall be eight times the maximum rate of flow. The Service Provider shall establish the methodology for sizing grease interceptors for fixtures. u. Sizing Calculations for Sand/Oil Interceptors: Sizing calculations are to be prepared by the owner's engineer and submitted to the District per the following method: i. Total fixture units connected x 7.5 gpm x 5 minutes =interceptor - . size. The total fixture unit values shall be established by the Service Provider. v. Drawings for Technical Specifications and Design Criteria for Grease and -- Sand/oil Interceptors/Traps [Reserved]. {00046460.DOC v:2) C-4 Exhibit D District Design Standards and Standards and Requirements for Service Providers [Reserved] {00046460.DOC v:2} 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 (00046460.DOC v:2) 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. (00046460.DOC v:2) E-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 _, (00046460.DOC v:2} 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. aa. 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. ec. 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. (00046460.DOC v:2} 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. (00046460.DOC v:2} 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. {00046460.DOC v:2) 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. {00046460.DOC v:2) 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 — }000a646o.oOC v:2} E-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 may be 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 (00046460.DOC v:2} E-9 2004 AND 2005 OPERATION FUNDING AGREEMENT THIS 2004 and 2005 OPERATION FUNDING AGREEMENT ("Agreement") is made and entered into and effective as of the j Llday of December, 2004, by and between RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (the "District") and GATEWAY AMERICAN RESOURCES,LLC, a Colorado limited liability company ("Developer"). The District and the Developer collectively are referred to herein as the "Parties". RECITALS WHEREAS, the Developer has determined that it is necessary to provide water, sanitation and other services in order to develop certain property located in the Cities of Commerce City and Brighton, Colorado (the"Cities") and Unincorporated Adams and Weld • Counties, Colorado (the"Counties"); and WHEREAS, the District intends to construct certain public improvements and provide certain services ("District Services") for the benefit of properties within its boundaries (the "Property") and to benefit other users of the District's systems in the Cities and Counties; and WHEREAS, in order for the improvements to be constructed to enable the District to provide the District Services, it is necessary for the District to be able to pay its ongoing operations and maintenance expenses; and WHEREAS, the District's Budget anticipates that it will not have sufficient revenues to make payment of its operations and maintenance expenses for the budget years 2004 and 2005; and —^ WHEREAS, in order to enable the District to provide District Services, the Developer is willing to advance funds to the District for ongoing operations and maintenance expenses pursuant to the terms of this Agreement; and WHEREAS, the District desires to evidence its obligation to repay the Developer for the advances made hereunder; and WHEREAS,the District's Service Plan authorizes the repayment of amounts advanced for operations and maintenance expenses, together with interest thereon by the District; and NOW, THEREFORE, in consideration of the foregoing and the respective agreements of the Parties contained herein, the Parties agree as follows: COVENANTS AND AGREEMENTS 1. Acknowledgment of Anticipated Shortfalls. For the budget years 2004 and 2005, the District's budget anticipates a shortfall for operations and maintenance expenses in the amount$50,000 for 2004 ("2004 Shortfall Amount") and$60,000 for 2005 ("2005 Shortfall Amount") (The 2004 Shortfall Amount and the 2005 Shortfall Amount shall hereafter be referred (00030314.DOC v:2} to as the"Shortfall Amount.") A copy of the 2004 and 2005 budgets are attached hereto as Exhibit A and Exhibit B respectively. 2. District's Commitment. The District hereby agrees to exercise its reasonable - efforts to impose and collect through Service Providers, all rates, tolls, fees and charges imposed by the District for connection to and use of the systems, including but not limited to infrastructure fees, sufficient to meet its operations and maintenance expenses and its repayment obligations pursuant to this Agreement (the "Operations Fees"). The District will impose the Operations Fees until all amounts advanced to the District under the Agreement, plus interest, have been paid to the Developer in full. 3. Payment of Shortfall. The District shall provide written notice to the Developer that payment of all or part of the Shortfall Amount is required, which notice shall be provided by the 15` of every month. The Developer shall make payment to the District within ten(10)days after receipt from the District of the written notice that such funding is required. 4. Request for Additional Contributions. If the District requires additional contributions from the Developer for 2004 or 2005 in order to meet its operation and maintenance expenses, the District shall request such additional funds in writing to the Developer. Such request shall be accompanied by written explanation regarding the reasons additional funds are required. The Developer shall provide such additional funds within fifteen (15) days of receipt of District's notice requesting such funds. The amount of the additional funds shall be added to and included with the Shortfall Amount. 5. Accounting. The District shall keep an accounting of each advance made by the Developer of the Shortfall Amount, including the accrued and unpaid interest on such advances, and shall provide unaudited financial statements reflecting this accounting to the Developer on a monthly basis. 6. Repayment. The District hereby agrees that it is its intention to repay the amounts deposited hereunder to the extent it has funds available from the imposition of its Operations Fees after the payment of its annual debt service obligations and annual operations and maintenance expenses, which repayment is subject to annual budget and appropriation. The repayment obligations under this Agreement shall be specifically subordinate to the District's annual debt service obligations, unless the District receives an opinion from its bond counsel —' stating that the repayment obligations under this Agreement can be on a parity with any debt service obligations or are payable only from revenue not pledged to debt services. Interest shall accrue on the Shortfall Amount from the date of deposit into the District's account, until paid, at the rate of 8%. It is hereby agreed and acknowledged that this Agreement evidences an intent to reimburse the Developer hereunder, but that this Agreement shall not constitute a debt or indebtedness of the District within the meaning of any constitutional or statutory provision,nor " shall it constitute a multiple fiscal year financial obligation, and the making of any reimbursement hereunder shall be at all times subject to annual appropriation by the District. Payments shall be made on December 1 of each year and shall credit first against accrued and —' unpaid interest and then to the principal amount due. (00030314.DOC v:2} 2 7. Representations. Developer hereby represents and warrants to and for the benefit of the District as follows: a. Developer has the full power and legal authority to enter into this Agreement. Neither the execution and delivery of this Agreement nor the compliance by the Developer with any of its terms, covenants or conditions is or shall become a default under any other agreement or contract to which the Developer is a party or by which Developer is or may be bound. Developer has taken or performed all requisite acts or actions which may be required by its organizational or operational documents to confirm its authority to execute, deliver and perform each of its obligations under this Agreement. b. Developer represents that it has sufficient available funds to fulfill its obligations under this Agreement. c. Developer is a limited liability company in good standing under the laws of the State of Colorado. The foregoing representations and warranties are made as of the date hereof and shall be deemed continually made by the Developer to the District for the entire term of this Agreement. 8. Term. The term of this Agreement shall extend from the date hereof through and including December 31, 2044, unless terminated earlier by the mutual agreement of the Parties. 9. Notices. All notices, demands,requests or other communications to be sent by one party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the addressee or by courier — delivery via Federal Express or other nationally recognized overnight air courier service or by depositing same in the United States mail, postage prepaid, addressed as follows: —• To District: Resource Colorado Water and Sanitation District 9145 E. Kenyon Ave., Suite 202 Denver, CO 80237 ,• Attention: Toni Serra Phone: (303) 843-9742 - ext. 120 Fax: (303) 843-0143 With a copy to: McGeady Sisneros, P.C. 1675 Broadway, #2100 Denver, CO 80202 Attention: MaryAnn M. McGeady Phone: 303-592-4380 Fax: 303-592-4385 (00030314.DOC v:21 3 To Developer: "- Gateway American Resources, LLC 9145 E. Kenyon Ave., Suite 202 Denver, CO 80237 Attention: Eric Chekal Phone: (303) 843-9742 - ext. 120 Fax: (303) 843-0143 All notices, demands, requests or other communications shall be effective upon such personal delivery or one (1)business day after being deposited with Federal Express or other nationally recognized overnight air courier service or three(3)business days after deposit in the United States mail. By giving the other party hereto at least ten(10) days written notice thereof in accordance with the provisions hereof, each of the Parties shall have the right from time to time to change its address. 10. Assignment. None of the parties hereto shall assign any of its rights or delegate any of its duties hereunder to any person or entity without having first obtained the prior written consent of the other parties, which consent will not be unreasonably withheld. Any purported assignment or delegation in violation of the provisions hereof shall be void and ineffectual. 11. Default/Remedies. In the event of a breach or default of this Agreement by either party, the non-defaulting party shall be entitled to exercise all remedies available at law or in equity. In the event of any litigation, arbitration or other proceeding to enforce the terms, covenants or conditions hereof, the prevailing party in such litigation, arbitration or other proceeding shall be entitled to obtain as part of its judgment or award its reasonable attorneys' fees. 12. Governing Law. This Agreement shall be governed and construed under the laws of the State of Colorado. 13. Inurement. Each of the terms, covenants and conditions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. 14. Integration. This Agreement constitutes the entire agreement between the Parties with respect to the matters addressed herein. All prior discussions and negotiations regarding the subject matter hereof are merged herein. 15. Paragraph Headings. Paragraph headings are inserted for convenience of reference only. 16. Parties Interested Herein. Nothing expressed or implied in this Agreement is — intended or shall be construed to confer upon, or to give to, any person other than the parties any right, remedy, or claim under or by reason of this Agreement or any covenants, terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions in this Agreement by and on behalf of the Parties shall be for the sole and exclusive benefit of the Parties. {00030314.DOC v:2} 4 17. Severability. If any covenant, term, condition, or provision under this Agreement shall, for any reason,be held to be invalid or unenforceable, the invalidity or unenforceability of such covenant, term, condition, or provision shall not affect any other provision contained herein, the intention being that such provisions are severable. 18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which shall constitute one and the same document. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above. "Developer" GATEWAY AMERICAN SOURCES, LLC, a Colorado limited liabili omp By: By: "District" RESOURCE COLORADO WATER AND SANITATION ME '-•POLITAN DISTRICT, a quasi- municipal corp y] 'on an litic s division of the State of Co By: ar ey Deutsch,President Attest: Joel kas, Secretary {00030314.DOC v:2) 5 EXHIBIT A Resource Colorado Water and Sanitation Metropolitan District 2004 General Fund Budget (00030314.DOC v:2) EXHIBIT B Resource Colorado Water and Sanitation Metropolitan District 2005 General Fund Budget (00030314.DOC v:2} PUBLIC NOTICE OF 2005 REGULAR MEETINGS OF THE _ BOARD OF DIRECTORS OF THE RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT PUBLIC NOTICE is hereby given that the regular meetings of the Board of Directors of the Resource Colorado Water and Sanitation Metropolitan District of the County of Weld, State of Colorado,shall be held at 11:15 a.m. at the offices of Gateway American Resources, LLC, 9145 East Kenyon Avenue, #202, Denver, Colorado 80237 on the following dates: January 17, 2005 February 21, 2005 March 21, 2005 April 18, 2005 May 16, 2005 June 20, 2005 July 18,2005 August 15, 2005 September 19, 2005 October 17, 2005 November 21,2005 s December 19, 2005 At such meetings,the Board shall conduct the regular business of the District and other business which may come before the Board. All meetings shall be open to the public. IN WITNESS WHEREOF,this notice is given and duly posted pursuant to statute this 11th day of February,2005. RESOURCE COLORADO WATER AND SANITATION METROPOLITAN DISTRICT By: /s/MarvAnn McGeady McGEADY SISNEROS, P.C . Attorneys for the District Hello