Article 3 - Special Provisions

The following special provisions shall be in full force and effect; however, nothing stated herein below
shall be deemed a waiver of any privileges or rights granted to the County by the Regional Water
Agreement.

This Part 2 shall become effective upon its adoption.

This Part 2 may be altered, amended or added to from time to time by a majority vote of the County Board
of Commissioners acting in formal session. Such alterations, amendments or additions when effective, shall
have the same force and effect as this Part 2. Nothing herein shall be deemed to amend, supersede, or
nullify any requirements for approval of such alterations, amendments, or additions, contained in the
Regional Water Agreement.

This Part 2 shall automatically become a part of all contracts for receiving water service from the
Authority, the County, the Water Department and the Utilities Department, whether the service is based on
contract, agreement, application or otherwise, in as full and ample manner as if the same were set out in
each contract, agreement, application or otherwise.

Under special circumstances on a case-by-case basis, the Authority and/or the County may deviate from the
terms of this Part 2 for undue hardship by motion duly passed acting in formal session. For those variances
affecting the water system, approval by the County Board of Commissioners shall be required. For those
variances affecting the water system owned by the city and maintained and operated by the Authority,
approval by the Authority shall be required in accordance with the Authority Policies. Variances affecting
both the water system and the water system owned by the city and maintained and operated by the
Authority shall require the approval of both the County Board of Commissioners and the Authority. In
every case, application for a variance shall be submitted to the Utilities Director, who shall seek comments
from the Authority Director and shall then present the application to the County Board of Commissioners.
(If comments are not received from the Authority Director within a reasonable time, the Utilities Director
may submit such application to the County Board of Commissioners without such comments.) The County
Board of Commissioners shall determine whether such a variance should be granted (if affecting the water
system) and/or submitted to the Authority for approval (if affecting the water system owned by the city and
maintained and operated by the Authority).

If any portion of this Part 2 or the application thereof to any person or circumstance is held invalid, such
invalidity shall not affect any other provision or application, and to this end, the various provisions of this
Part 2 are declared to be severable.

Titles used in this Part 2 are for convenience only and shall not be considered in interpreting their meaning
or scope.

The County, the Authority, and/or the city shall institute and/or defend all litigation affecting its powers
and duties or which relates to the water system and the property and rights connected therewith or
incidental thereto. The Utilities Department shall immediately report to the Authority's attorney and the
County's attorney if any legal process is served on the County and/or the Utilities Department, in a manner
affecting the powers, duties, properties, or trusts of the County.

The Authority, the County, the city and/or the Districts shall not be liable for any losses, injuries or
damages related in any way to the water system and/or the water system owned by the city and maintained
and operated by the Authority or the maintenance or operation of either except for its affirmative
negligence and then only to the extent of its insurance coverage or the extent set forth below.

Neither the Water Department, the Utilities Department, the city, the County, the districts nor the Authority shall be liable to consumers, customers, owners or any other person for the failure to furnish water for any purpose or any conditions, or for the quantity, quality, pressure or rate of the water furnished, or for any damage that may result from the shutting off of water, even though no notice of the shutting off of water shall have been given to the customer or consumer, except those damages occurring in cases of affirmative negligence by the Authority, the City, the County, The Districts, the Utilities Department, or the Water Department.

The Utilities Director shall maintain a file containing the name of each claimant, the amount of the claim and a summary of the basis of the claims for all claims related to the water system whether covered by insurance or not. The Utilities Director shall send a copy of each claim received to the Authority Director on behalf of the Authority.

Subject to the availability of water, any person residing in or doing business within the service district shall be eligible to apply for water service from the water system and the water system owned by the City and maintained and operated by the Authority, which application shall be considered in accordance with the provisions of this Part 2 and in all other respects with all the rules, regulations and procedures prescribed by the Authority.

Water service at County facilities shall be metered and subject to the minimum monthly meter charge. The
Authority will provide to all direct activities operated as general governmental services by the County,
except schools, a reasonable amount of water free of charge.