Construction of the Water System Extension. (a) Customer shall select a contractor to construct the Water System Extension that has satisfactorily completed five projects of similar scope and size in the past five years and shall provide the District evidence thereof. No construction will commence until plans and specifications for the Water System Extension have been submitted to and approved by the TCEQ and any other required regulatory agency, as may be required by law, if any such approval i

Staff Report & Agenda Item Details

Construction of the Water System Extension. (a) Customer shall select a contractor to construct the Water System Extension that has satisfactorily completed five projects of similar scope and size in the past five years and shall provide the District evidence thereof. No construction will commence until plans and specifications for the Water System Extension have been submitted to and approved by the TCEQ and any other required regulatory agency, as may be required by law, if any such approval is required. (b) The Water System Extension improvements shall be constructed by Customer in accordance with the Approved Extension Plans, the District’s Construction Guidelines, and in accordance with all applicable laws, regulations, and requirements of all regulatory Crystal Clear SUD – Palomino Alpha NSSA authorities having jurisdiction. Water System Extension construction must commence within one year of the District’s formal approval of the final construction plans and no later than two years following the Effective Date of this Agreement. (c) No construction will commence until plans and specifications for the Water System Extension improvements have been submitted to and approved by the District’s consulting engineer, provided that the scope of the District consulting engineer’s review and approval of the On-Site Distribution System plans shall be limited solely to confirmation of compliance with the District’s legal and regulatory obligations as a public water service provider and retail public utility pursuant to state law and regulatory requirements, with such District approval not to be unreasonably withheld or delayed. Customer must give written notice to the District of the date on which construction of the Water System Extension improvements is scheduled to begin so that the District may assign an inspector, who shall be permitted by Customer and Customer’s contractor to observe all work performed. Customer shall be responsible for all costs associated with such inspector’s work. (d) Customer shall be responsible and liable for the safety of the work site and the preservation of materials and equipment related to the Water System Extension construction. (e) INDEMNITY. Customer shall indemnify and defend the District for any claims, demands, suits, or causes of action asserted against the District related to the Water System Extension improvements caused by the negligent acts or omissions of Customer, its engineer(s), its contractor(s), or its subcontractor(s). All rights and protections of the District in this Paragraph 5(e) shall be extended to the District’s directors, officers, employees, attorney(s), engineer(s), contractor(s), and subcontractor(s) (the “District Indemnified Parties”). To the fullest extent permitted by Texas law, Customer shall indemnify and defend the District Indemnified Parties against all demands, legal action (whether filed or threatened), liabilities, damages (including actual, special, consequential, and exemplary/punitive damages), expenses, fines or penalties of any nature or description arising from the performance or non-performance of Customer’s engineer(s), contractor(s), or subcontractor(s) work; any breach or default by Customer’s engineer(s), contractor(s), or subcontractor(s); failure by Customer’s engineer(s), contractor(s), or subcontractor(s) to maintain any insurance policies or comply with applicable insurance requirements; violations of or failure to comply with any applicable laws, ordinances or regulations by Customer’s engineer(s), contractor(s), or subcontractor(s); claims arising from violation by Customer’s engineer(s), contractor(s), or subcontractor(s) of laws and obligations regarding hazardous materials or pollution; claims of any creditor to or assignee of Customer’s engineer(s), contractor(s), or subcontractor(s); and, claims arising from property damage to property of third parties by Customer’s engineer(s), contractor(s), or subcontractor(s). (f) The Customer shall cause its contractor to comply with and furnish performance and payment bonds for all work performed pursuant to and in compliance with Texas Crystal Clear SUD – Palomino Alpha NSSA Government Code Chapter 2253. Bonds shall be provided to the District prior to commencement of any construction of the Water System Extension.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.2/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.