EXHIBIT B. Notice of Non-Compliance

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1 Page 1 of 6 EXHIBIT B Town of Flower Mound Large Residential and Commercial Water Meter Installation Policy 3-6 Compound or HP Turbine Meters Or 2 Compound Meter (06/20/05) The Town of Flower Mound has implemented a policy for large residential and commercial water meter installation, which provides for the installation of water meters by individual contractors or builders. This policy, effective January 1, 1996, requires all contractors or builders engaged in new construction of residential or commercial building to install water meters using their own labor resources. On January 18, 2001, Meter Services implemented a detailed residential and commercial water meter installation policy for all contractors and builders to follow. Notice of Non-Compliance All contractors or builders are hereby notified that during the entire construction process, all installation procedures shall be followed. If any procedure is violated during the entire construction process, an employee of The Town of Flower Mound will issue a warning tag notifying the contractor or builder of the violation. The contractor or builder will then have three business days to have any violation corrected. If the violation is not corrected within three business days, a citation will be issued to the contractor or builder. Also, failure to have any violation corrected will result in all inspections of the address in violation to be suspended by the Town of Flower Mound Building Inspections Division, until such problem is corrected. Furthermore, administrative fees will be charged to the contractor or builder for changing information related to water meters set at the wrong address or location. Town of Flower Mound Code of Ordinance References The procedures for all large residential and commercial water meter installations, as outlined below, shall follow all Town of Flower Mound specifications. Furthermore, connection to the water system is prohibited without the water meter being present. Specifically stated, direct-ties or by-pass of a water meter are not allowed under any circumstances. The Town of Flower Mound Code establishes relocating water meter equipment, or bypassing a water meter reading device as a misdemeanor offense by the Town of Flower Mound Code of Ordinances. A copy of the following Town of Flower Mound Codes can be obtained through the office of the Town Secretary for reference, Chapter 70: Sections Bypassing utility meter, Tap or Turn On of utility service, Use of utility after cut off, and Presumption of bypass violation.

2 Page 2 of 6 Purchasing Water Meters Prior to any contractor or builder picking up the water meter(s), they must pay all impact fees at the Building and Inspections Division and provide proof that all impact fees are paid in full before purchasing the water meter from the Utility Billing Division. The Utility Billing Division is located in the Town of Flower Mound Town Hall at 2121 Cross Timbers Rd. Meters can be picked up between the hours of 7:30 a.m. to 5:00 p.m. Monday through Friday, Town holidays excluded. All large Compound and HP Turbine meters are special order meters, therefore all contractors and builders must notify the Meter Services Division at least 30 days in advance prior picking up any water meter(s) at (972) , (972) , (972) Town Supplied Water Meter Materials Effective October 20, 2003, all new water meter sets will include a radio read transmitter. The radio read transmitter will be attached to the meter and shall be set inside of the meter vault at all times. Meters 2 and larger are supplied with the following materials: One flange kit, which includes a flange for the inlet and outlet-side; Two flange gaskets; Four nuts and four bolts for large meters under 4 ; Six nuts and six bolts for large meters over 6 ; and One Radio Read Transmitter for each meter register. All materials supplied with the meter must be used in conjunction with the installation of the water meter. If the contractor or builder purchases a water meter and the angle stop or service line does not correspond with the meter size, it is the contractor or builders responsibility to supply all other materials required in the installation of the water meter. Setting Water Meter Requirements After you have paid all impact fees and have picked up the water meter(s) from the Meter Services Division, the meter(s) must be installed within a maximum of ten working days. After the tenth day, personnel from the Meter Services Division has the right to inspect the jobsite to verify that the water meter(s) has been installed correctly. If the water meter(s) is not installed within ten working days the Meter Services Division has the right to confiscate the water meter(s) until the contractor or builder is ready to install any such meter(s).

3 Page 3 of 6 When installing a Tru/Flo Compound or a HP Turbine meter, the following recommended installation instructions should be followed: All Tru/Flo Compound and HP Turbine meters operate more accurately and reliably if installed properly. Tru/Flo Compound and HP Turbine meter performance is directly related to the flow conditions of the water stream entering the meter. If the flow conditions are distorted as a result of upstream fittings or piping changes, the Tru/Flo Compound and HP Turbine meter performance can be adversely affected. For example, a properly installed meter with a length of straight pipe equal to 8 to 10 diameters, immediately upstream of the inlet, would register at 100%. The same meter installed with an elbow fitting, immediately upstream of the meter, will cause distortions in the flow stream conditions, which would make meter performance highly erratic. The meter manufacturer along with the Town requires that all Tru/Flo Compound and HP Turbine meters be installed with a plate strainer at the meter inlet. The strainer, in addition to protecting the meter from debris in the line, also corrects the velocity profile of the flow to the meter. The recommended installation of a Tru/Flo Compound or a HP Turbine meter is shown in the Town of Flower Mound Construction Standards. This installation incorporates a plate-type strainer attached to the inlet of the meter. This illustration also shows an optical bypass of the same size line as the service line, which provides uninterrupted service capability during periods of meter service. Also, one bypass valve with chain and lock, all located inside the vault must be installed. As indicated previously, the upstream plate-type strainer provides protection against meter damage from debris in the lines and virtually eliminates the effects of variations in upstream piping. Use of a strainer of the same line size as the meter is specifically recommended. This strainer design provides optimum velocity profile correction at minimum additional head loss. Install the Tru/Flo Compound or HP Turbine water meter horizontally with all registers facing upwards. Do not install pressure reducing or check valves before the inlet-side of the water meter. Do not open or connect any service pipe to the plugs located on the side of the Tru/Flo Compound water meter. These plugs are designed for the multi-jet meter low flow, allowing factory installation of a low flow water meter. Any connection of these parts will adversely affect the water meter performance.

4 Page 4 of 6 Before putting the Tru/Flo Compound or the HP Turbine meter in service, make sure the outlet-side valve is in the closed position. Slowly open the bypass line allowing the service line to pressurize. CAUTION SHOULD BE EXERCISED TO AVOID AIR IN THE LINE, SUDDEN FLOW SURGES, OR EXCESSIVE FLOW RATES SINCE THESE CONDITIONS MAY CAUSE SEVERE DAMAGE TO THE METER. Slowly open the outlet-side valve to create backpressure in the measuring chamber. Slowly open the inlet-side valve to purge air slowly from the line. Opening the inlet-side valve quickly can cause severe damage to the measuring chamber and the pressure valve. After the water line has been fully pressurize, turn off the gate valve to the bypass. This will place the meter fully in service. The bypass must remain closed at all times after the water meter has been placed into service. Before leaving the site, check for any possible leaks. If any leaks are discovered, shut the inlet-side valve down followed by the outlet-side valve slowly and make the necessary repairs. At all times during the construction process the water meter vault shall be clean and free of debris. The correct placement of the Tru/Flo Compound or HP Turbine meter should be centered inside of the vault. The top of the water meter vault shall match the surrounding surface elevation (example curb or sidewalk). The water meter vault must conform to the Town of Flower Mound Construction Standards. After installation, it is important that the upstream (inlet) valve be put in full open condition during service. A partially throttled upstream valve will cause flow profile distortion, which will adversely affect meter accuracy. All throttling should be done ONLY on the downstream (outlet) side of the meter. Freezing Weather It is recommended when inclement weather is expected during the construction process that the contractor or builder turn off the water at the meter and drain all lines to prevent damage to the meter. Damaged or Destroyed Water Meters

5 Page 5 of 6 If a water meter is installed backwards and usage has registered on the meter the contractor or builder shall purchase a new water meter at their expense. If a water meter freezes during cold weather and is non-functional it shall be the contractor or builders responsibility to purchase a new water meter at their expense. If a water meter is damaged or destroyed during the construction process it is the contractor or builders responsibility to purchase a new meter at their expense. Prior to purchasing a replacement water meter for any water meters that have been damaged or destroyed the contractor or builder must return the damaged or destroyed water meter to the Utility Billing Division before a new water meter is issued. Water Meter Vault Requirements Commercial water meters will be located in a utility easement and clear of high traffic areas. Water meter vaults shall be sized according to the size of the water meter. All water meter vaults shall have a 2 hole drilled in the access panel for the Town s radio read system. Minimum water meter vault sizes are as follows: 2 Compound meter 6 x 8 3 Compound / HP Turbine meter 6 x 8 4 Compound / HP Turbine meter 6 x 8 6 Compound / HP Turbine meter 8 x 10 8 Compound / HP Turbine meter 8 x 12 Requests for meters larger than those indicated above should be submitted with an installation detail specifying dimensions, materials and location of the water meter vault for review and approval by the Town Engineer. Issuing Citations Town of Flower Mound personnel have the right to issue a citation for the following water meter and water meter box or water meter vault violations: Water meter not installed within ten working days; Wrong size meter box; No water meter box installed; Water meter box not set to grade; Water meter box destroyed; Water meter vault full of debris; Water meter installed backwards;

6 Water meter covered with excessive debris; Water meter installed at wrong address; Unlawful bypass of water meter; and Other violations of the polices set forth in, Exhibits A or B. Page 6 of 6

7 Exhibit B Town of Flower Mound Residential and Commercial Water Meter Installation Policy 3 6 Compound or HP Turbine Meters Or 2 Compound Meter Attached is Exhibit B of the Town of Flower Mound Residential and Commercial Water Meter Installation Policy for water meters 3 6 Compound or HP Turbine Meters or 2 Compound Meters. The following is an outline of the procedures that must be followed at all times during the construction process. Notice of non-compliance; Town of Flower Mound Code of Ordinance; Purchasing water meters; Town supplied water meter materials; Setting water meter requirements; Freezing weather; Damaged or destroyed water meters; Water meter box requirements; and Issuing citations. I have read the attached Town of Flower Mounds Code of Ordinance Chapter 70, Section 70-56(b) Exhibit B and will comply with all Town standard throughout all phases of the construction process. Company Name: Print Name: Signature: Date: