R2011-127 - 2011-10-10ATTEST:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO AN AMENDED AND RESTATED EMERGENCY WATER
SUPPLY CONTRACT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Amended and Restated Emergency Water Supply
Contract by and between the City of Pearland, Brazoria County Municipal District No. 2,
Brazoria County Municipal District No. 3, Brazoria County Municipal District No. 6 and
Brazoria County Municipal Utility District No. 25, a copy of which is attached hereto as
Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an Amended and Restated Emergency Water Supply
Contract.
PASSED, APPROVED and ADOPTED this the 10 day of October, A.D., 2011.
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
RESOLUTION NO. R2011 -127
TOM REID
MAYOR
AMENDED AND RESTATED
EMERGENCY WATER SUPPLY CONTRACT
THE STATE OF TEXAS §
COUNTY OF BRAZORIA
This Emergency Water Supply Contract (herein the "Contract"), entered into as
of the day of , 2011, by and between BRAZORIA COUNTY
MUNICIPAL UTILITY DISTRICT NO. 25 ("MUD 25"), a body politic and corporate and
governmental agency of the State of Texas, BRAZORIA COUNTY MUNICIPAL
UTILITY DISTRICT NO. 6 ("MUD 6"), and the CITY OF PEARLAND ("COP"),
formerly BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1, on behalf of
itself and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 2 ("MUD 2"),
and BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 3 ("MUD 3")
(collectively, including COP, the "Districts").
WITNESSETH:
RECITALS
Under certain conditions, the rules and regulations of the Texas Commission on
Environmental Quality (hereinafter referred to as the "TCEQ") require a second source
of water supply to serve as a standby source in the event the primary source of supply
fails. The object of the parties hereto in executing this Contract is to satisfy those rules
and regulations in the most economical and feasible manner.
WHEREAS, the Districts desire to enter into this Contract and to establish the
terms and conditions pursuant to which emergency water supply will be provided and
each represents that it has the authority to enter into this Contract; and
WHEREAS, at this time the Districts believe it is in their best interests to amend
and restate that certain contract entered into between the Districts on September 2, 2004.
The Districts now recognize MUD 2 as the District that is the managing District for
which the joint water facilities provide regular water service for MUD 6, COP, MUD 3
and MUD 2. NOW, THEREFORE,
The parties to this Contract have determined that they are authorized to enter
into this Contract by the Constitution and laws of the State of Texas, particularly
Chapters 49 and 54, Texas Water Code, as amended.
Agreement-BC MUD 25 Interconnect
AGREEMENT
For and in consideration of the premises and the mutual obligations, covenants,
and benefits hereinafter set forth, MUD 25, COP, MUD 2, MUD 3, and MUD 6 contract
and agree as follows:
ARTICLE I
Section 1.01 Definitions. Unless the context requires otherwise, the following
terms and phrases used in this Contract shall have meanings as follows:
"Emergency" shall mean a mechanical or electrical failure causing loss in
productive capacity of either Party's water plant or any act of nature which results in
either party being unable to produce or supply water adequately and safely to its
customers, or a fire occurring in either party's water supply system area. "Emergency"
shall also include a planned and mutually agreed upon shut down of a water well or
water plant for repairs, inspections, improvements and/or maintenance.
"Point of Delivery" shall mean the actual point of connection between the MUD
25 System and the MUD 6 System as approved by the Water Plant Engineer installed to
serve as an interconnect for the parties during an Emergency.
"Temporary Period" shall mean a maximum period of 14 days unless otherwise
agreed in writing by the parties.
"Water" shall mean potable water meeting the minimum drinking standards
prescribed by the TCEQ and the Environmental Protection Agency.
"Water Plant Engineer" shall mean the MUD 2 Engineer, Jones & Carter, Inc.,
who was designated as the Water Plant Engineer under the Terms and Conditions of
the Restated Joint Water Facilities Contract between COP, MUD 2, MUD 3, and MUD 6.
ARTICLE II
TESTING OF FACILITIES
Section 2.01 Point of Delivery. The Point of Delivery for Water sold under this
Contract has been located at the physical point of connection to MUD 6's System at the
Point of Delivery. The connecting waterline is a 12" line and the interconnect
equipment will be a manual system whereby Water shall flow from one system to the
other when the required valve is opened manually. The interconnect equipment will
now include a two way flow meter, which must be approved by the Water Plant
Engineer. The Point of Delivery is shown on Exhibit "A" attached hereto and made a
part hereof.
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Section 2.02 Installation of Interconnect Equipment. MUD 25 shall be
responsible for all matters incidental or necessary to the installation of all necessary
interconnect equipment. All costs incurred in acquiring and installing such
interconnect equipment will be the sole responsibility of MUD 25. The design and
construction of the interconnect line and equipment shall be in accordance with the
requirements of all governmental entities having jurisdiction over plans for public
water systems. The parties agree that a two-way flow meter shall be required at this
time. The costs of the meter, the cost of its installation and its maintenance and testing
shall be the sole responsibility of MUD 25.
The Water Plant Engineer shall review the plans and specifications for the
interconnect line, the valve, the meter, and all related equipment and shall make an on-
sight inspection of the same to confirm that all facilities are duly approved and
operating properly. MUD 25 will correct any deficiencies in the interconnect equipment
found by the Water Plant Engineer within 30 days of notification of deficiencies.
Section 2.03 Interconnect, Equipment, Ownership, Maintenance and Title to
Water. There will be located at the point of interconnection a valve and lock box
controlling the flow of Water from MUD 6 to MUD 25 and from MUD 25 to MUD 6.
The operator for MUD 2, MUD 25, and MUD 6 shall each have a key to the lock box and
must notify the other whenever the valve is proposed to be opened. In non-Emergency
situations, the valve shall remain closed. COP, MUD 2, MUD 3, and MUD 6 will have
title to, possession and control of all Water on the MUD 6 side of the interconnect
equipment and MUD 25 will have title to, possession and control of Water on their side.
Each district will be solely responsible for the maintenance and repair of the water lines
on their side of the interconnect equipment.
MUD 25 shall be responsible for routine maintenance of the valve, meter and
lock box. All costs of repair and maintenance shall be borne by MUD 25. MUD 25 shall
be responsible for having the meter tested annually on or before August 1 to ensure the
meter's accuracy is within ±5%. If the accuracy is found to be less than ±5%, MUD 25
shall be responsible for having the meter calibrated. Copies of the annual test reports
shall be provided to the Water Plant Engineer. The Water Plant Engineer shall make an
annual inspection of the interconnect, the valve, the meter and lock box and shall report
to all parties the condition of the facilities and his recommendations for repairs or
replacements.
COP and MUDs 2, 3 and 6 shall have no responsibility for the costs of operation
and maintenance of the valve and lock box provided however, that if the COP and
MUDs 2, 3 and 6 ever use water on an Emergency basis, the Water Plant Engineer will
make a reasonable assessment of a pro rata share of operations and maintenance costs
for that year only.
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ARTICLE III
DELIVERY OF WATER, PRICE, BILLING, AND PAYMENT
Section 3.01 Emergency Supply. During an Emergency, the party whose Water
plant has failed or is otherwise inoperative will be supplied Water by the other party on
the terms and conditions set forth herein.
Section 3.02 Calculation of Quantity. Water usage shall be calculated based on
the metered usage. MUD 2 will be responsible for reading the meter monthly.
In the event the meter is non-operational or found to be outside the accuracy
limits, water usage by either party during an Emergency shall be calculated as follows:
for each month in which Water is supplied, the supplying party shall use the total
metered gallons of Water produced by the supplying party and deduct five percent
(5%) from that total for routine non-billable usage. From this reduced production
figure, the supplying party shall deduct the actual gallons of Water billed by the
supplying party to its customers and the result will give the total number of gallons of
Water used by the receiving party.
Section 3.03 Priority to Serve its Customers. Neither party shall ever be
obligated to provide Water service to the other party where the Board of Directors of
the other party determines, in its sole discretion, that providing such service would
impair or jeopardize service to its customers. The parties agree that each party's
priority is to first serve customers within its boundaries and within the boundaries of
any other entity they serve.
Section 3.04 Price. During the first year of this Contract, the price to be paid for
Water delivered pursuant to this Contract shall be $2.00 per 1,000 gallons of Water
provided. If Water is provided beyond the Temporary Period, such rate shall
automatically increase to $3.00 per 1,000 gallons following the last day of the
Temporary Period. The parties agree that, in the event any groundwater pumpage
fees, surface water usage fees, disincentive fees and/or other fees or charges are
incurred by the supplying District or Districts in connection with supplying Water
under this Contract, such fees and/or charges shall be billed to the receiving District or
Districts in addition to all other charges assessed hereunder; provided, however, that
should the interconnect be used to provide services to MUD 25 and the supplying
Districts incur differing fees and/or charges in order to provide said service, the parties
agree that the highest rate of fees and/or charges incurred by any one supplying
District shall be billed to MUD 25 at such rate, in addition to all other charges assessed
hereunder. All parties recognize that the cost of producing and delivering the Water is
subject to increase during the term of this Contract, and, therefore, the price to be paid
for Water delivered pursuant to this Contract shall be negotiated annually in advance of
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the day and month of execution of this Contract. In the event the parties are unable to
agree upon a price to be paid for Water delivered within 30 days after the end of each
12-month period following the execution of this Contract, then either party may notify
the other of its intention to declare this Contract null and void, and if an agreement on
the price to be paid is not reached within 30 days of said notice, this Contract shall
thereafter be void.
Section 3.05. Billing and Payment. Each party shall render a bill to the other, or
its designated representatives, on or before the 19th day of each month for Water
supplied during the preceding calendar month and such bill shall be due and payable
30 days after such bill is deposited into the United States mail properly stamped and
addressed. If either party fails to pay for Water delivered hereunder or pay for a repair
bill owed to the other party hereunder when such payment is due, such party shall pay
interest on its past due obligation, accruing from the due date, at the rate of ten percent
(10%) per annum, and shall in addition pay reasonable attorney's fees incurred in the
collection thereof. If either party fails to pay any bills on or before their due date, the
party entitled to payment shall give notice of such delinquent bills to the other party in
writing, and if all such bills due are not paid within 30 days after deposit of such notice
in the United States mail, properly stamped and addressed to such party, then the party
entitled to payment shall be authorized to initiate legal proceedings for the collection
thereof and to pursue any other available legal remedy which may be appropriate,
including the right to refuse to supply additional Water during an Emergency until
such payment is made in full.
Bills shall be paid promptly upon receipt of an invoice form the party supplying
the Water or providing maintenance under the terms of this Contract. If a party fails or
refuses to (1) supply the information concerning the Water usage required herein, (2)
pay for Water delivered hereunder, or (3) pay for a repair bill owed by a party to the
other party hereunder, and such failure to supply said information and/or make
payment shall extend for a period in excess of 60 days from the notice and/or demand
for payment, the party which has not received information or been paid may, at its
option (i) notify said party of its intention to declare this Contract null and void if such
information has not been delivered or if payment has not been made within 30 days of
the date of said notice or (ii) refuse to supply additional Water until such payment is
made in full or such information is received.
ARTICLE IV
MISCELLANEOUS PROVISIONS
Section 4.01 Quality of Water. Each party shall use its best efforts to provide
Water meeting all applicable Texas and Federal regulations regarding Water quality,
including the Safe Drinking Water Act.
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EXCEPT AS PROVIDED IN THIS SECTION 4.01, THE PARTIES HERETO
MAKE NO WARRANTY EXPRESSED OR IMPLIED, REGARDING THE QUALITY OR
DELIVERY PRESSURE OF THE WATER, INCLUDING THE IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
EACH PARTY HEREBY RELEASES AND DISCHARGES THE OTHER PARTY
FROM ANY AND ALL FINES, DEMANDS, JUDGMENTS, LIABILITIES, OR CLAIMS
ARISING BY REASON OF OR IN CONNECTION WITH THE DELIVERY OF WATER
WHICH MEETS THE REQUIREMENTS OF THIS SECTION 4.01.
Section 4.02 Subject to Law; Backflow Prevention. This Contract shall be subject
to all present and future valid laws, orders, rules, and regulations of the United States of
America, the State of Texas, and any regulatory body having jurisdiction. In order to
protect each party's waterworks system, it is specifically agreed that each party's
waterworks system shall be constructed and operated to comply with the rules and
requirements of the TCEQ, and any other entities with jurisdiction thereover regarding
backflow prevention and cross-connections. Should a condition in violation of these
requirements be discovered, the responsible party shall promptly cure same.
Section 4.03 Drought Contingency Plan. Emergency water usage under this
Contract is subject to compliance with the supplying District's drought contingency
plan.
Section 4.04 Inspections. Each party agrees that either party may conduct
inspections from time to time to determine that no conditions exist in the other party's
waterworks system and connections to its customers' premises which would or might
adversely affect a party's waterworks system.
Section 4.05 Sale of Water Outside Boundaries Prohibited. In entering into this
Contract, the parties agree that MUD 25 will provide Water service solely to the
inhabitants of the District. MUD 25 is forbidden to sell water purchased hereunder to
customers outside its boundaries.
Section 4.06 Notice and Consent. Each party shall notify the other immediately
after it has opened the valve so as to utilize the Water of the other by telephone or
similar method and by giving written notice as prescribed herein. As Water furnished
under this Contract is intended to be supplied on an Emergency basis, it is expressly
agreed that neither party shall utilize the Water supplied for a period in excess of 72
hours without the written consent of the other party's operator. Any party which has
opened the valve shall use due diligence to remedy the Emergency requiring the
opening as quickly as possible.
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The Operator for MUD 2 is:
Severn Trent Services, Inc.
16337 Park Row
Houston, TX 77084
Attention: Joe Williams
Telephone: 281-578-4264
The Operator for MUD 25 is:
Municipal Operations &Consulting, Inc.
312 Spring Hill, Suite 100
Spring, TX 77386
Attention: Gary Hastings
Telephone: (281) 367-5511
Section 4.07 Simultaneous Emergencies. No party shall be obligated to supply
Water pursuant to this Contract if an Emergency exists for that party. Consequently,
during a period of simultaneous Emergencies, no party shall be obligated to deliver
Water to the others, but may do so pursuant to mutual agreement.
Section 4.08 Force Majeure. If either party should be prevented, wholly or in
part, from furnishing Water to the other party under this Contract by reason of any
force majeure, including without limitation, acts of God, unavoidable accidents, acts of
the public enemy, strikes, riots, floods, fires, government restraint or regulations, breaks
in either party's pipelines, power failure, or for any other cause beyond either party's
control, then the obligations of that party to deliver Water to the other shall be
suspended during the continuance of such force majeure.
No damages shall be recoverable from either party by reason of the suspension
of delivery of Water due to any force majeure or other cause specified herein.
Section 4.09 Approval. Whenever this Contract requires or permits approval or
consent to be hereafter given by either party, such approval or consent shall be effective
without regard to whether such approval or consent is given before or after the time
required herein, and the parties agree that no such approval or consent shall be
unreasonably withheld. Such approval or consent shall be evidenced by an ordinance
or resolution adopted by the governing body of the party or by an appropriate
certificate executed by a person, firm, or entity previously authorized to determine and
give such approval or consent on behalf of the party pursuant to an ordinance or
resolution adopted by the governing body.
337557 7
Section 4.10 Address and Notice. Unless otherwise provided in this Contract,
any notice, communication, request, reply, or advice (herein severally and collectively,
for convenience called "Notice") herein provided or permitted to be given, made, or
accepted by either party to the other must be in writing and may be given or be served
by depositing the same in the United States mail, postpaid and registered or certified,
and addressed to the party to be notified, with return receipt requested, or by
delivering the same to an officer of such party, or by prepaid telegram, when
appropriate, addressed to the party to be notified. Notice deposited in the mail in the
manner hereinafter above described shall be conclusively deemed to be effective, unless
otherwise stated in this Contract, from and after the expiration of three (3) days after it
is so deposited. Notice given in any other manner shall be effective only if and when
received by the party to be notified. For the purposes of Notice, the addressed of the
parties shall, until changed as hereinafter provided,be as follows:
To MUD 25:
Brazoria County Municipal Utility District No. 25
c/o Allen Boone Humphries LLP
3200 Southwest Freeway, Suite 2600
Houston, Texas 77027
Attention: Timothy Austin
Fax: (713) 860-6612
To COP:
City of Pearland
3519 Liberty Drive
Pearland, TX 77581
Houston, Texas 77057
Attention: City Manager
Fax: (281) 652-1708
To MUD 2:
Brazoria County Municipal Utility District No. 2
c/o Paul A. Philbin & Assoc., PC
6363 Woodway Drive, Suite 725
Houston, Texas 77057
Attention: Paul Philbin
Fax: (713) 783-8812
337557 8
To MUD 3:
Brazoria County Municipal Utility District No. 3
c/o Paul A. Philbin & Assoc., PC
6363 Woodway Drive, Suite 725
Houston, Texas 77057
Attention: Paul Philbin
Fax: (713) 783-8812
To MUD 6:
Brazoria County Municipal Utility District No. 6
c/o Schwartz Page & Harding, LLP
1600 Post Oak Blvd.,Suite 1400
Houston, Texas 77056
Attention: Peter Harding
Fax: (713) 623-4531
The parties shall have the right from time to time and at any time to change their
respective addresses and each shall have the right to specify any other address upon 15
days' written notice to the other party.
Section 4.11 Assignability. This Contract shall bind and benefit the respective
parties and their legal successors, but shall not otherwise be assignable, in whole or in
part, by either party without first obtaining the written consent of the other. It is agreed
and understood that upon the full purpose annexation of MUD 2, MUD 3 shall,
pursuant to the Restated Joint Water Facilities Agreement, assume MUD 2's position. It
is further agreed and understood that upon the full purpose annexation of MUD 3,
MUD 6 shall, pursuant to the Restated Joint Facilities Agreement, assume MUD 3's
position.
Section 4.12 Regulatory Agencies/Service Limitations. This Contract shall be
subject to all present and future valid laws, orders, rules, and regulations which may be
applicable by the United States, the State of Texas, or any regulatory agency having
jurisdiction. Either party may terminate service to the other party in the event that such
service would cause a violation of their respective withdrawal permit or violation of
any other rules of the United States, the State of Texas, or any other regulatory agency
having jurisdiction. In addition, service to MUD 25 shall also be subject to the pre-
existing contracts and obligations between MUD 6 and COP, MUD 2, and MUD 3.
COP, MUD 2, and MUD 3 must approve this Contract before it becomes effective.
Section 4.13 Books and Records. Each party to this Contract shall preserve for a
period of at least four (4) years from the date of their respective origins, all books,
337337 9
records, test data, charts and other records pertaining to this Contract. All parties shall
have the right, at all reasonable business hours, to inspect such records of the other
party to the extent necessary to verify the accuracy of any statement, charge or
computation made pursuant to any provisions of this Contract.
Section 4.14 No Additional Waiver Implied. The failure of either party hereto to
insist, in any one or more instances upon performance of any of the terms, covenants, or
conditions of this Contract, shall not be construed as a waiver or relinquishment of the
future performance of any such term, covenant, or condition by the other party hereto,
but the obligation of such other party with respect to such future performance shall
continue in full force and effect.
Section 4.15 Entire Contract. This Contract, together with such descriptions,
terms and conditions as may be included in the recitals contains the entire Contract
between the parties relating to the rights herein granted and the obligations herein
assumed and supersedes all prior Contracts. There have been and are no contracts,
covenants, representations or warranties between the parties other than those expressly
stated or provided for herein. Any modifications concerning this instrument shall be of
no force and effect unless reduced to writing and signed by all parties hereto.
Section 4.16 Modification. Except as otherwise provided in this Contract, this
Contract shall be subject to change or modification, but only with the mutual consent of
the governing bodies of the parties hereto.
Section 4.17 Parties in Interest. This Contract shall be for the sole purpose and
exclusive benefit of the parties hereto and shall not be construed to confer any rights
upon any third party. Neither party shall ever be subject to any liability in damages to
the customers of the other party for any failure to perform its obligations under this
Contract.
Section 4.18 No Liability for General Obligations. Nothing in this Contract shall
have the effect of causing any party to assume, guarantee or become in any way liable
upon any bond, warrant, indebtedness or other obligation of the other parties or to
undertake any obligation of such party or the inhabitants or customers of such party.
NO PARTY SHALL HAVE THIRD PARTY LIABILITY TO THE OTHER PARTIES
OR ANY CUSTOMER OF SUCH PARTIES AND EACH PARTY SHALL HOLD THE
OTHER PARTIES HARMLESS AND FULLY INDEMNIFY SUCH PARTIES FOR
ANY AND ALL CLAIMS OR DAMAGES ASSERTED OR MADE BY ANY
CUSTOMER OF THE PARTY OR BY ANY OTHER THIRD PARTY DUE TO OR IN
ANY WAY RELATED TO THE PARTIES PROVIDING SERVICES HEREUNDER.
337557 10
Section 4.19 Remedies. Upon breach of any term of this Contract by any party,
the non-breaching parties shall have the right to terminate service, to terminate this
Contract and to any other remedies at law.
Section 4.20 Captions. The captions appearing at the first of each numbered
section in this Contract are inserted and included solely for convenience and shall never
be considered or given any effect in considering this Contract, or any provisions hereof,
or in connection with the duties, obligations, or liabilities of the respective parties hereto
or in ascertaining intent, if any question or intent should arise.
Section 4.21 Severability. The provisions of this Contract are severable, and if
any provisions or part of this Contract or the application thereof to any person or
circumstance shall ever be held by any court of competent jurisdiction to be invalid or
unconstitutional for any reason, the remainder of this Contract and the application of
such provision or part of this Contract to the persons or circumstances shall not be
affected hereby.
Section 4.22 Merger. This Contract embodies the entire understanding between
the parties and there are not prior effective representations, warranties, or agreements
between the parties.
Section 4.23 Construction of Contract. The parties agree that this Contract shall
not be construed in favor of or against either party on the basis that the party did or did
not authorize this Contract.
Section 4.24 Term. This Contract shall be in force and effect from the
date of execution for a term of five (5) years subject to the termination provisions
contained herein.
[EXECUTION PAGES FOLLOW]
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IN WITNESS WHEREOF, this Agreement has been executed in multiple copies,
each of which shall be deemed an original, effective as of the date first written above.
BRAZORIA COUNTY MUNICIPAL UTILITY
DISTRICT NO. 25
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(SEAL)
337557 12
CITY OF PEARLAND
Mayor
ATTEST:
City Secretary
(SEAL)
337557 13
BRAZORIA COUNTY MUNICIPAL UTILITY
DISTRICT NO. 2
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(SEAL)
337557 14
BRAZORIA COUNTY MUNICIPAL UTILITY
DISTRICT NO. 3
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(SEAL)
337557 15
BRAZORIA COUNTY MUNICIPAL UTILITY
DISTRICT NO. 6
President, Board of Directors
ATTEST:
Secretary, Board of Directors
(SEAL)
317557 16
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3100 WEST ALAt3AMA HOUSTON,TEXAS 77008(713)520-9570
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SCALE: 1" = 100 OCT. 05, 2011
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