Johnson Controls, Inc. Initials: Customer Initials: Performance Contract (Rev 15) Johnson Controls, Inc

CITY OF GALVESTON – RFP # 20-04 ADDENDUM # 1 STUDY AND RECOMMENDATIONS FOR AUTOMATIC METER READING/ADVANCED METERING INFRASTRUCTURE

Date: 1/23/2020

To: Prospective Proposers

Subject: Addendum No. 1 Propagation Study

This addendum forms part of the proposal and contract documents and modifies the original solicitation documents dated 1/6/2020 Acknowledge receipt of this addendum in the space provided below. FAILURE TO DO SO WILL SUBJECT OFFEROR TO DISQUALIFICATION.

See attached Propagation Study.

I hereby certify receipt of this addendum and have incorporated its information or changes in preparation of my submittal.

______Authorized Signature Date

______Printed Name Company Name

A COPY OF THE ADDENDUM MUST BE SIGNED AND RETURNED WITH YOUR PROPOSAL PERFORMANCE CONTRACT c This Performance Contract (this "Agreement") is made this _day of August, 2015, between: PARTIES

JOHNSON CONTROLS, INC. ("JCI") 3021 West Bend Drive Irving, TX 75063

and

City of Galveston ("Customer") 823 Rosenberg Galveston, TX 77553

RECITALS

WHEREAS, Customer desires to retain JCI to perform the work specified in Schedule 1 (Scope of Work) hereto {the 'Work") relating to the installation of the improvement measures (the "Improvement Measures") described therein; and

WHEREAS, Customer is authorized and empowered under applicable Laws (as defined below) to enter into this Agreement, and has taken all necessary action under applicable Laws to enter into this Agreement; and

WHEREAS, Customer selected JCI to perform the Work after it determined JCI's proposal was the most advantageous to Customer in accordance with all applicable procurement and other Laws.

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows:

AGREEMENT

1. SCOPE OF THE AGREEMENT. JCI shall perform the Work set forth in Schedule 1. After the Work is Substantially Complete (as defined below) and the Certificate of Substantial Completion is executed by Customer and JCI, JCI shall provide the assured performance guarantee (the "Assured Performance Guarantee") and the measurement and verification services (the "M&V Services") set forth in Schedule 2 (Assured Performance Guarantee) and/or Schedule 2A {Assured Performance Guarantee- Utility Meters), as applicable. Customer shall make payments to JCI for the Work and the M&V Services in accordance with Schedule 4 (Price and Payment Terms).

2. AGREEMENT DOCUMENTS: In addition to the terms and conditions of this Agreement, the following Schedules are incorporated into and shall be deemed an integral part of this Agreement:

Schedule 1 -Scope of Work Schedule 2 -Assured Performance Guarantee - Utility Meters Schedule 3 - Customer Responsibilities Schedule 4- Price and Payment Terms

3. NOTICE TO PROCEED; SUBSTANTIAL COMPLETION; M&V SERVICES. This Agreement shall become effective on the date of the last signature on the signature page below. JCI shall commence performance of the Work within ten (1 0) business days of receipt of Customer's Notice to Proceed, a form of which is attached hereto as Attachment 1, and shall achieve Substantial Completion of the Work by the Substantial Completion ( date, which shall be the earlier of: Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 1 (a) the date on which Customer executes a Certificate of Substantial Completion substantially in the form attached hereto as Attachment 3; or (b) [months] after JCI's receipt of Customer's Notice to Proceed, subject to adjustments set forth in Section 4 and Section 5 below. For purposes of this Agreement, "Substantial Completion" means that JCI has provided sufficient materials and services to permit Customer to operate the Improvement Measures. The M&V Services shall commence on the first day of the month following the month in which Customer executes a Certificate of Substantial Completion and shall continue throughout the Guarantee Term, subject to earlier termination of the Assured Performance Guarantee as provided herein. Customer acknowledges and agrees that if, for any reason, it (i) cancels, or terminates receipt of M&V Services, (ii) fails to pay for M&V Services in accordance with Schedule 4, (iii) fails to fulfill any of Customer's responsibilities necessary to enable JCI to complete the Work and provide the M&V Services, or (iv) otherwise cancels, terminates or materially breaches this Agreement, the Assured Performance Guarantee shall automatically terminate and JCI shall have no liability thereunder.

4. DELAYS AND IMPACTS. If JCI is delayed in the commencement, performance, or completion of the Work and/or M& V Services by causes beyond its control and without its fault, including but not limited to inability to access property; concealed or unknown conditions encountered at the project, differing from the conditions represented by Customer in the bid documents or otherwise disclosed by Customer to JCI prior to the commencement of the Work; a Force Majeure (as defined below) condition; failure by Customer to perform its obligations under this Agreement; or failure by Customer to cooperate with JCI in the timely completion of the Work, JCI shall provide written notice to Customer of the existence, extent of, and reason for such delays and impacts. Under such circumstances, an equitable adjustment in the time for performance, price and payment terms, and the Assured Performance Guarantee shall be made.

5. ACCESS. Customer shall provide JCI, its subcontractors, and its agents reasonable and safe access to all facilities and properties in Customer's control that are subject to the Work and M&V Services. Customer further agrees to assist JCI, its subcontractors, and its agents to gain access to facilities and properties that are not controlled by Customer and are necessary for JCI to complete the Work and provide the M&V Services. An ( equitable adjustment in the time for performance, price and payment Terms, and Assured Performance Guarantee shall be made as a result of any failure to grant such access.

6. PERMITS, TAXES, AND FEES. Unless otherwise specified in Schedule 3 (Customer Responsibilities), JCI shall be responsible for obtaining all building permits required for it to perform the Work. Unless otherwise specified in Schedule 1 (Scope of Work), Customer shall be responsible for obtaining all other permits, licenses, approvals, permissions and certifications, including but not limited to, all zoning and land use changes or exceptions required for the provision of the Work and the ownership and use of the Improvement Measures. JCI shall not be obligated to provide any changes to or improvement of the facilities or any portion thereof required under any applicable building, fire, safety, sprinkler or other applicable code, standard, law, regulation, ordinance or other requirement unless the same expressly regulates the installation of the Improvement Measures. Without limiting the foregoing, JCI's obligation with respect to the Work is not intended to encompass any changes or improvements that relate to any compliance matters (whether known or unknown) that are not directly related to the installation of the Improvement Measures or which have been imposed or enforced because of the occasion or opportunity of review by any governmental authority. Customer shall be responsible for and shall pay when due all assessments, charges and sales, use, property, excise, or other taxes now or hereafter imposed by any governmental body or agency upon the provision of the Work or the M&V Services, implementation or presence of the Improvement Measures, the use thereof or payments due to JCI under this Agreement, other than taxes upon the net income of JCI. Customer shall also be responsible for real or personal property taxes relating to equipment or material included in the Improvement Measures. Any fees, taxes, or other lawful charges paid by JCI on account of Customer shall become immediately due from Customer to JCI.

7. WARRANTY. JCI will perform the Work in a professional, workman-like manner. JCI will promptly re-perform any non-conforming Work for no charge, as long as Customer provides written notice to JCI within one (1) year following Substantial Completion or such other period identified in Schedule 1. If JCI installs or furnishes goods or eq uipment under this Agreement, and such goods or equipment are covered by an end-user warranty from

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 2 their manufacturer, JCI will transfer the benefits of such warranty to Customer. The foregoing remedy with respect to the Work, together with any remedy provided by goods or equipment manufacturers, shall be Customer's sole and exclusive remedies for warranty claims. Customer agrees that the one (1) year period ( following Substantial Completion, or such other period identified in Schedule 1, shall be a reasonable time for purposes of submitting valid warranty claims with respect to the Work. These exclusive remedies shall not have failed of their essential purpose so long as JCI transfers the benefits of any goods or equipment end-user warranty to Customer and remains willing to re-perform any non-conforming Work for no charge within the one (1) year period described above or such other period identified in Schedule 1. NO OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE PROVIDED BY JCI. This warranty does not extend to any Work that has been abused, altered, or misused, or repaired by Customer or third parties without the supervision or prior written approval of JCI. Except with respect to goods or equipment manufactured by JCI and furnished to Customer hereunder, for which JCI shall provide its express written manufacturer's warranty, JCI shall not be considered a merchant or vendor of goods or equipment.

8. CLEANUP. JCI shall keep the premises and the surrounding area free from accumulation of waste materials or rubbish caused by the Work and, upon completion of the Work, JCI shall remove all waste materials, rubbish, tools, construction equipment, machinery, and surplus materials.

9. SAFETY; COMPLIANCE WITH LAWS. JCI shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the performance of the Work and M&V Services. Each of JCI and Customer shall comply with all applicable laws, ordinances, rules, regulations, and lawful orders of public authorities (collectively, "Laws") in connection with its performance hereunder.

10. ASBESTOS-CONTAINING MATERIALS AND OTHER HAZARDOUS MATERIALS.

Asbestos-Containing Materials: Neither party desires to or is licensed to undertake direct obligations relating to the identification, abatement, cleanup, control, removal or disposal of asbestos-containing materials ("ACM"). Consistent with applicable Laws, Customer shall supply JCI with any information in its possession relating to the presence of ACM in areas where JCI undertakes any Work or M&V Services that may result in the disturbance of ACM. It is JCI's policy to seek certification for facilities constructed prior to 1982 that no ACM is c present, and Customer shall provide such certification for buildings it owns, or aid JCI in obtaining such certification from facility owners in the case of buildings that Customer does not own, if JCI will undertake Work or M& V Services in the facility that could disturb ACM. If either Customer or JCI becomes aware of or suspects the presence of ACM that may be disturbed by JCI's Work or M&V Services, it shall promptly stop the Work or M&V Services in the affected area and notify the other. As between Customer and JCI, Customer shall be responsible at its sole expense for addressing the potential for or the presence of ACM in conformance with all applicable Laws and addressing the impact of its disturbance before JCI continues with its Work or M&V Services, unless JCI had actual knowledge that ACM was present and acted with intentional disregard of that knowledge in which case (i) JCI shall be responsible at is sole expense for remediating areas impacted by the disturbance of the ACM, and (ii) Customer shall resume its responsibilities for the ACM after JCI's remediation has been completed.

Other Hazardous Materials: JCI shall be responsible for removing or disposing of any Hazardous Materials (as defined below) that it uses in providing Work or M&V Services ("JCI Hazardous Materials") and for the remediation of any areas impacted by the release of JCI Hazardous Materials. For other hazardous materials that may be otherwise present at Customer's facilities ("Non-JCI Hazardous Materials"), Customer shall supply JCI with any information in its possession relating to the presence of such materials if their presence may affect JCI's performance of the Work or M&V Services. If either Customer or JCI becomes aware of or suspects the presence of Non-JCI Hazardous Materials that may interfere with JCI's Work or M&V Services, it shall promptly stop the Work or M&V Services in the affected area and notify the other. As between Customer and JCI, Customer shall be responsible at its sole expense for removing and disposing of Non-JCI Hazardous Materials from its facilities and the remediation of any areas impacted by the release of Non-JCI Hazardous Materials, unless JCI had actual knowledge that Non-JCI Hazardous Materials were present and acted with intentional disregard of that knowledge, in which case (i) JCI shall be responsible at its sole expense for the remediation of any areas impacted by its release of such Non-JCI Hazardous Materials, and (ii) Customer shall remain ( responsible at its sole expense for the removal of Non-JCI Hazardous Materials that have not been released Perfonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 3 and for releases not resulting from JCI's performance of the Work or M&V Services. For purposes of this Agreement, "Hazardous Materials" means any material or substance that, whether by its nature or use, is now or hereafter defined or regulated as a hazardous waste, hazardous substance, pollutant or contaminant under applicable Law relating to or addressing public and employee health and safety and protection of the environment, or which is toxic, explosive, corrosive, flammable, radioactive, carcinogenic, mutagenic or otherwise hazardous or which is or contains petroleum, gasoline, diesel, fuel, another petroleum hydrocarbon product, or polychlorinated biphenyls. Hazardous Materials specifically includes mold and lead-based paint and specifically excludes ACM. JCI shall have no obligations relating to the identification, abatement, cleanup, control, removal, or disposal of mold, regardless of the cause of the mold.

Environmentallndemnitv: To the fullest extent permitted by Law, Customer shall indemnify and hold harmless JCI and JCI's subcontractors, and their respective directors, officers, employees, agents, representatives, shareholders, affiliates, and assigns and successors, from and against any and all losses, costs, damages, expenses (including reasonable legal fees and defense costs), claims, causes of action or liability, directly or indirectly, relating to or arising from the Customer's use, or the storage, release, discharge, handling or presence of ACM, mold (actual or alleged and regardless of the cause of such condition) or Non-JCI Hazardous Materials on, under or about the facilities, or the noncompliance with this Section 10.

11. CHANGE ORDERS. The parties, without invalidating this Agreement, may request changes in the Work to be performed under this Agreement, consisting of additions, deletions, or other revisions to the Work ("Change Orders"). The price and payment terms, time for performance and, if necessary, the Assured Performance Guarantee, shall be equitably adjusted in accordance with the Change Order. Such adjustments shall be determined by mutual agreement of the parties. JCI may delay performance until adjustments arising out of the Change Order are clarified and agreed upon. Any Change Order must be signed by an authorized representative of each party. If concealed or unknown conditions are encountered at the project, differing from the conditions represented by Customer in the bid documents or otherwise disclosed by Customer to JCI prior to the commencement of the Work, price and payment terms, time for performance and, if necessary, the Assured Performance Guarantee, shall be equitably adjusted. Claims for equitable adjustment may be asserted in writing within a reasonable time from the date a party becomes aware of a change to the Work by written notification. Failure to promptly assert a request for equitable adjustment, however, shall not constitute c a waiver of any rights to seek any equitable adjustment with respect to such change. 12. CUSTOMER FINANCING; TREATMENT; TAXES. The parties acknowledge and agree that JCI is not making any representation or warranty to Customer with respect to matters not expressly addressed in this Agreement, including, but not limited to:

(a) Customer's ability to obtain or make payments on any financing associated with paying for the Improvement Measures, related services, or otherwise; (b) Customer's proper legal, tax, accounting, or credit rating agency treatment relating to this Agreement; and (c) the necessity of Customer to raise taxes or seek additional funding for any purpose.

Customer is solely responsible for its obligations and determinations with respect to the foregoing matters. In addition, the parties acknowledge and agree that Customer shall be responsible to comply, at its cost and expense, with all Laws that may be applicable to it relating to performance contracting, including, without limitation, any requirements relating to the procurement of goods and/or services and any legal, accounting, or engineering opinions or reviews required or obtained in connection with this Agreement.

Performance Contract {Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 4 13. INSURANCE. JCI shall maintain insurance in amounts no less than those set forth below in full force and effect at all times until the Work has been completed, and shall provide a certificate evidencing such coverage promptly following Customer's request therefor.

COVERAGES LIMITS OF LIABILITY

Workmen's Compensation Insurance or self insurance, Statutory including Employer's Liability

Commercial General Liability Insurance $5,000,000 Per Occurrence $5,000,000 Aggregate

Comprehensive Automobile Liability Insurance $5,000,000 Combined Single Limit

The above limits may be obtained through primary and excess policies, and may be subject to self-insured retentions.

Customer shall be responsible for obtaining builder's risk insurance coverage for the Improvement Measures and shall at all times be responsible for any loss or casualty to the Improvement Measures. Customer shall also maintain insurance coverage, of the types and in the amounts customary for the conduct of its business, throughout the term of this Agreement.

14. INDEMNIFICATION. To the fullest extent permitted by applicable Law, each party shall indemnify the other with respect to any third party claim alleging bodily injury, including death, or property damage to the extent such injury or damage is caused by the negligence or willful misconduct of the indemnifying party. A condition precedent to any obligation of a party to indemnify the other pursuant to this Section 14 shall be for the indemnified party to promptly advise the indemnifying party of the claim pursuant to the notice provision of this Agreement.

15. LIMITATION OF LIABILITY. NEITHER JCI NOR CUSTOMER WILL BE RESPONSIBLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE, PUNITIVE, EXEMPLARY, LOSS OF PROFITS OR REVENUE, LOSS OF USE, OR SIMILAR DAMAGES, REGARDLESS OF HOW CHARACTERIZED AND REGARDLESS OF A PARTY HAVING BEEN ADVISED OF THE POSSIBILITY OF c SUCH POTENTIAL LOSSES OR RELIEF, ARISING IN ANY MANNER FROM THIS AGREEMENT, THE WORK, THE IMPROVEMENT MEASURES, THE PREMISES, THE M&V SERVICES, OR OTHERWISE. WITHOUT LIMITING JCI'S EXPRESS OBLIGATIONS UNDER THE ASSURED PERFORMANCE GUARANTEE, JCI'S LIABILITY UNDER THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION, SHALL IN NO EVENT EXCEED THE AMOUNT OF THE PAYMENTS ACTUALLY RECEIVED BY JCI UNDER SCHEDULE 4. If this Agreement covers fire safety or security equipment, Customer understands that JCI is not an insurer regarding those services, and that JCI shall not be responsible for any damage or loss that may result from fire safety or security equipment that fails to prevent a casualty loss. The foregoing waivers and limitations are fundamental elements of the basis for this Agreement between JCI and Customer, and each party acknowledges that JCI would not be able to provide the work and services contemplated by this Agreement on an economic basis in the absence of such waivers and limitations, and would not have entered into this Agreement without such waivers and limitations.

16. FORCE MAJEURE. Neither party will be responsible to the other for damages, loss, injury, or delay caused by conditions that are beyond the reasonable control, and without the intentional misconduct or negligence of that party. Such conditions (each, a "Force Majeure") include, but are not limited to: acts of God; acts of Government agencies; strikes; labor disputes; fires; explosions or other casualties; thefts; vandalism; riots or war; acts of terrorism; electrical power outages; interruptions or degradations in telecommunications, computer, or electronic communications systems; changes in Laws; or unavailability of parts, materials or supplies.

17. JCI'S PROPERTY. All materials furnished or used by JCI personnel and/or JCI authorized subcontractors or agents at the installation site, including documentation, schematics, test equipment, software and associated media remain the exclusive property of JCI or such other third party. Customer agrees not to use such materials for any purpose at any time without the express authorization of JCI. Customer agrees to allow JCI personnel and/or JCI authorized subcontractors or agents to retrieve and to remove all such materials remaining after installation or maintenance operations have been completed. Customer acknowledges that any

Pertormance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 5 software furnished in connection with the Work and/or M&V Services is proprietary and subject to the provisions of any software license agreement associated with such software. ( 18. DISPUTES. JCI and Customer will attempt to settle any controversy, dispute, difference, or claim between them concerning the performance, enforcement, or interpretation of this Agreement (collectively, "Dispute") through direct discussion in good faith, but if unsuccessful, will submit any Dispute to non-binding mediation in the nearest major metropolitan area of the state where the project is performed. If the parties are unable to agree on a mediator or a date for mediation, either party may request JAMS, Inc. to appoint a mediator and designate the time and procedure for mediation. Such mediator shall be knowledgeable, to each party's reasonable satisfaction, with respect to matters concerning construction law. Neither JCI nor Customer will file a lawsuit against the other until not less than sixty {60) days after the mediation referred to herein has occurred, unless one or both parties is genuinely and reasonably concerned that any applicable statue of limitations is on the verge of expiring. JCI AND CUSTOMER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL AS TO ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF OR DIRECTLY OR INDIRECTLY RELATED TO THIS AGREEMENT, INCLUDING CONTRACT, TORT AND STATUTORY CLAIMS, AND EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS UNDER THIS AGREEMENT.

19. GOVERNING LAW. This Agreement and the construction and enforceability thereof shall be interpreted in accordance with the laws of the state where the Work is conducted.

20. CONSENTS; APPROVALS; COOPERATION. Whenever Customer's consent, approval, satisfaction or determination shall be required or permitted under this Agreement, and this Agreement does not expressly state that Customer may act in its sole discretion, such consent, approval, satisfaction or determination shall not be unreasonably withheld, qualified, conditioned or delayed, whether or not such a "reasonableness" standard is expressly stated in this Agreement. Whenever Customer's cooperation is required by JCI in order to carry out JCI's obligations hereunder, Customer agrees that it shall act in good faith and reasonably in so cooperating with JCI and/or JCI's designated representatives or assignees or subcontractors. Customer shall furnish decisions, information, and approvals required by this Agreement in a timely manner so as not to delay c the performance of the Work or M&V Services.

21. FURTHER ASSURANCES. The parties shall execute and deliver all documents and perform all further acts that may be reasonably necessary to effectuate the provisions of this Agreement.

22. INDEPENDENT CONTRACTOR. The relationship of the parties hereunder shall be that of independent contractors. Nothing in this Agreement shall be deemed to create a partnership, joint venture, fiduciary, or similar relationship between the parties.

23. POWER AND AUTHORITY. Each party represents and warrants to the other that (a) it has all requisite power and authority to execute and deliver this Agreement and perform its obligations hereunder, (b) all corporate, board, body politic, or other approvals necessary for its execution, delivery, and performance of this Agreement have been or will be obtained, and (c) this Agreement constitutes its legal, valid, and binding obligation.

23. SEVERABILITY. In the event that any clause, provision, or portion of this Agreement or any part thereof shall be declared invalid, void, or unenforceable by any court having jurisdiction, such invalidity shall not affect the validity or enforceability of the remaining portions of this Agreement unless the result would be manifestly inequitable or materially impair the benefits intended to inure to either party under this Agreement.

24. COMPLETE AGREEMENT. It is understood and agreed that this Agreement contains the entire agreement between the parties relating to all issues involving the subject matter of this Agreement. No binding understandings, statements, promises or inducements contrary to this Agreement exist. This Agreement supersedes and cancels all previous agreements, negotiations, communications, commitments and understandings with respect to the subject matter hereof, whether made orally or in writing. Each of the parties to this Agreement expressly warrants and represents to the other that no promise or agreement which is not herein expressed has been made to the other, and that neither party is relying upon any statement or

Pertonnance Contract (Rev I 5) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 6 representation of the other that is not expressly set forth in this Agreement. Each party hereto is relying exclusively on the terms of this Agreement, its own judgment, and the advice of its own legal counsel and/or other advisors in entering into this Agreement. Customer acknowledges and agrees that any purchase order issued by Customer, in accordance with this Agreement, is intended only to establish payment authority for Customer's internal accounting purposes. No purchase order shall be considered a counteroffer, amendment, modification, or other revision to the terms of this Agreement. No term or condition included in Customer's purchase order will have any force or effect.

25. HEADINGS. The captions and titles in this Agreement are for convenience only and shall not affect the interpretation or meaning of this Agreement.

26. COUNTERPARTS. This Agreement may be executed in any number of counterparts, all of which when taken together shall constitute one single agreement between the parties.

27. NOTICES. All notices or communications related to this Agreement shall be in writing and shall be deemed served if and when sent by facsimile or mailed by certified or registered mail: to Johnson Controls, Inc. at the address listed on the first page of this Agreement, ATTN: Regional Solutions Manager, with a copy to Johnson Controls, Inc., ATTN: General Counsel- Building Efficiency Americas, 507 East Michigan Street, Milwaukee, Wisconsin, 53202: and to Customer at the address listed on the first page of this Agreement.

CITY OF GALVESTON JOHNSON CONTROLS, INC.

Signature: ______Signature: ______

Printed Name: ______Printed Name:. ______

Title:. ______Title: ______c Date: ______Date: ______

SCOPE OF WORK

BIM Description 1 Water Meter Improvements 2 Automated Leak Detection System 3 Advanced Metering Infrastructure (AMI) System Installation 4 Remote Disconnect/Reconnect Ball Valve

Entities provided water service by Customer will be referred to as "End Users."

BIM-1 Water Meter Improvements This Business Improvement Measure will include the following: • Replacement of active small water meters and intermediate water meters that have reached the end of their design life. • Replacement of select intermediate and large water meters for the purpose of meter typing. • Improvements to select large water meters.

Demolition: Customer will have first right of refusal to keep removed equipment. JCI will properly dispose of removed equipment which is not kept by the Customer.

Exclusions: It is understood by the Customer that JCI and its subcontractors will not provide, nor be responsible for the identification, testing or removal of asbestos or lead. If asbestos or lead is encountered during construction, c Customer will be solely responsible for its identification, testing, removal and/or encapsulation. Any work relating to lead that goes beyond the unscrewing and screwing of couplings in order to remove and install meters will not be the responsibility of JCI. Moreover, JCI will not be responsible for any work that requires cutting or torching any lead pipe.

Any work associated with cutting and patching, painting, demolition and excavation and backfill

Warranties: • One (1) year warranty on materials (excluding water meters, encoder registers, and endpoints) and thirty (30) days on labor beginning at the date of signoff for each route. Water meter, encoder register, and endpoint warranties commence upon date of shipment from the original equipment manufacturer. See Attachment 1 for a copy of the warranties • Specific details for each extended warranty is shown in Attachment 1 and will also be provided in the O&M manuals.

a) Small Water Meter Improvements and AMI System Installation

JCI shall remove up to two hundred and thirty-one (231) existing Badger Meter M25 0.625" x 0.75" water meters that have reached the end of their design life from service and both provide and install new Badger Meter M25 low-lead bronze water meters with HR-E absolute encoder registers that read in US gallons and have the ltron Pit!ERT lnline Connector.

JCI shall provide and install up to two hundred and thirty-one (231) ltron 100W+ ERT endpoints. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install up to two

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 8 Schedule 1 hundred and thirty-one (231) new ltron Through-The-Lid (TTL) Antennas and shall connect the antenna to the endpoint at each affected service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole. ( JCI shall remove up to one hundred and five (105) existing Badger Meter M70 1" water meters that have reached the end of their design life from service and both provide and install new Badger Meter M70 low-lead bronze water meters with HR-E absolute encoder registers that read in US gallons and have the ltron PiVERT lnline Connector.

JCI shall provide and install up to one hundred and five (105) ltron 100W+ ERT endpoints. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install up to one hundred and five (1 05) new ltron Through-The-Lid (TTL) Antennas and shall connect the antenna to the endpoint at each affected service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

b) Intermediate Water Meter Improvements and AMI System Installation

JCI shall remove up to fifty-four (54) existing Badger Meter M120 1.5" water meters that have reached the end of their design life from service and both provide and install new Badger Meter M120 low-lead bronze water meters with HR-E absolute encoder registers that read in US gallons and have the ltron PiVERT lnline Connector.

JCI shall provide and install up to fifty-four (54) It ron 1OOW+ ERT endpoints. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install up to fifty-four (54) new ltron Through-The-Lid (TTL) Antennas and shall connect the antenna to the endpoint at each affected service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

JCI shall remove the existing Badger Meter M120 1.5" water meter from service at account number c 353612, meter ID #70379280, Galveston lSD, 1524-42"d Street. JCI shall both provide and install a new Badger Meter E120 transit time ultrasonic meter at this service for the purpose of meter typing. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

JCI shall remove up to fifty-eight (58) existing Badger Meter M170 2" water meters that have reached the end of their design life from service and both provide and install new Badger Meter M170 low-lead bronze water meters with HR-E absolute encoder registers that read in US gallons and have the ltron PiVERT lnline Connector.

JCI shall provide and install up to fifty-eight (58) ltron 100W+ ERT endpoints. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install up to fifty-eight (58) new ltron Through-The-Lid (TTL) Antennas and shall connect the antenna to the endpoint at each affected service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

JCI shall remove the existing Badger Meter M170 2" water meters from service at the eighty-one (81) services shown in the table below. JCI shall both provide and install a new Badger Meter E170 transit time ultrasonic meter at this service for the purpose of meter typing. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Perfonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 9 Schedule 1 the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

Table 1. List of 2" Services to Receive a Badger Meter E170 Meter for Meter Typing

Converted Location Customer Name Service Address Serial No. No. 000214 COMFORT INN & SUITES 6302 SEAWALL BLVD 05009289H 000720 TRANSITIONAL LEARNING CENTER-RESIDENTIAL HOUSING C 6444 CENTRAL CITY BLVD 5022105 016400 VILLA MARINA APARTMENTS,LP 320 AVE B 5022941 016510 LOASIS APT. 610 FERRY ROAD 5022151 016520 VILLA MARINA APARTMENTS,LP 400 FERRY ROAD 5022152 016530 VILLA MARINA APARTMENTS,LP 300AVEB II 5022150 016970 CARELTON COURTYARD 215 AVE D 6098529 016980 {CAREL TON COURTYARD) PORT HOLIDAY APARTMENTS 215 AVE D 6098098 017080 PORT AUX PRINCES CONDOMINIUMS 7000 NORTH HOLIDAY DRIVE 6098095 017110 PORT AUX PRINCES CONDOMINIUMS 11 7000 NORTH HOLIDAY DRIVE 6098103 017190 HARBOR VIEW INN II 928 FERRY ROAD 5022149 021930 UTMB BLDG #75 328 AVEC 5022127 025100 UTMB 500 HARBORSIDE--TEMP KITCHEN 7280542 031630 LANDRY'S SEAFOOD HOUSE 3502 SEAWALL BLVD/BRICK HOUSE 10259310 031631 LANDRY'S SEAFOOD HOUSE 3502 SEAWALL BLVD 7280538 032770 CROCKETI COURT MOTEL 4214 AVE U 5291478 032920 GAIDOS HOTEL 3702 SEAWALL BLVD 6098093 033010 FOUR SEASONS ON THE GULF 4000 AVE U 6098100 033190 GAl DO'S 3828 SEAWALL BLVD 6098532 033270 MAHALAXMI ENT. INC. C/0 SUPER 8 MOTEL 3924AVE U 5022110 ( 052920 RONALD MC DONALD HOUSE OF GALVESTON 301 14TH ST 4360159 070570 THE SUNFLOWER BAKERY 50614TH ST 5022070 074170 SILVER WOLF {WITHERS, KENNETH) 327 AVE E 12134441 074360 BEACH SIDE VILLAS LLC 217 AVE F 5022114 074380 YISHLAM INC 325 AVE F 5022094 081452 PHI CHI ASSOC 606 UNIVERSITY BLVD 5022060 083000 CARR IAGE HOUSE CONVERSION LLC 615 HOLIDAY DRIVE 5022009 092140 THETHREEOFOURCORP 711 HOLIDAY DRIVE 5022159 092150 THETHREEOFOURCORP 711 HOLIDAY DRIVE 5022072 161610 AMSALEM & SEGAL INVESTMENTS 2115 AVE G 6098102 171355 SANDPIPER MOTEL 201 SEAWALL/MOTEL/POOL 10259307 173690 BRINKER INTERNATIONAL CHILl'S 500 SEAWALL CH ILl'S 5022950 181100 EIBAND'S LUXURY CONDOMINIUM ASSOCIATION.,INC 2201 AVE E UP 24-UNITS 5014208 184020 ARTIST LOFTS 2223 AVE D 5022146 211120 MOTEL 9,1NC 1002 SEAWALL BLVD 5022154 263200 COUNTRY INN SUITES 2818 AVER 1/2 8506908 322682 G.I.S.D. 1804 41ST ST 5022100 323200 G.I.S.D. 4115 Avenue 0 403640 TEXAS SAl ENTERPRIZES INC 4429 AVE J 5022907 410001 GALVESTON COUNTY COURT HOUSE 600 59TH ST 4036219

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 10 Schedule 1 Converted Location Customer Name Service Address Serial No. No. 410011 GALVESTON COUNTY COURT HOUSE 600 59TH ST 4036218 415400 B & G FOOD ENTERPRISES/TACO BELL 5701 AVEJ 7280545 553180 MCDONALDS 5223 AVEJ 7280541 590860 QUALITY INN & SUITES 5924 SEAWALL BLVD 6124193 594100 MCDONALDS 2912 61ST ST 8506909 595140 SOMMERSET RETIREMENT 2828 61ST ST 5022104 595810 ROYAL INVESTORS GROUP LLC 2808 61ST ST 5022091 596200 KROGER 5730 SEAWALL BLVD 5022068 604900 GREIG, ROBERT 6028 HEARDS LANE 5022844 609990 GANDHI, ANDY 2826 63RD ST 5022090 614620 BACK BAY TOWN HOMES 7210 HEARDS LANE 5022062 631660 MBP CORP 29 PIER 21/WILLIE G'S/ BLDG A 8506927 643100 GANDHI, ANDY 2825 1/2 61ST ST 5022862 643150 1859 HISTORIC HOTELS, LTD. 2525 JONES DRIVE 6097415 643255 MAFRIGE, DON 6600 SEAWALL 5014210 643510 HEALTHY CHINESE BUFFET 6125 CENTRAL CITIES BLVD 5022900 643640 LANDRY'S SEAFOOD HOUSE/ LANDRY'S 5310 SEAWALL BLVD 6098094 644310 CAPTAINS COVE 7600 SEAWALL BLVD 5022912 644570 GAUTIER REMODELING 8902 SEAWALL BLVD 5022891 644650 CAPTAINS COVE 7502 SEAWALL BLVD 6098479 644790 RANDALL'S #31 2805 61ST ST 5022126 646370 GOLDEN CORRAL 6200 SEAWALL BLVD 5022206 647500 ASHTON PLACE HOMEOWNERS ASSOCIATION 7200 WILLIAMS DRIVE 6098097 647640 ASHTON PLACE HOMEOWNERS ASSOCIATION 6900 WILLIAMS DRIVE 5022890 648100 AMERICA BEST VALUE INN & SUITES 6311 CENTRAL CITY BLVD 5022885 c 648628 HOLIDAY INN EXPRESS 8628 SEAWALL BUILDING 8165123 649430 CARIBBEAN TOWN HOUSE 7500 STEWART ROAD 5022886 652180 FORT CROCKETI APARTMENTS 4800 FORT CROCKETI 5022134 652530 ELM AT SEASIDE LTD. 4918 SEAWALL BLVD 5022874 652780 SALSAS MEXICAN & SEAFOOD RESTAURANT 4604 SEAWALL BLVD 5022133 664320 DAVITA,INC.#3479-ISLAND DIALYSIS 5920 AVE J 6098101 666370 MOTEL 6 7404 AVE J 5022083 666820 GAYATRI ENTERPRISES INC 6107 AVE J 5022135 667110 R.H. INTERESTS INC. 6118 AVE L 5022852 667700 GUO, BING 5902 AVE J 8506921 668180 HOWARD JOHNSON 8216 HARBORSIDE DR 5022063 669098 TARGET STORE T1535 6128 AVE J 5022944 669101 HOME DEPOT C/0 FACILITY 10 6128 AVE J 5022073 782697 HARVE LAFITIE TOWN HOMES PHASE II 3100 75TH ST 03116434H 959710 THE WATERMAN RESTAURANT 14302 STEWART RD RESTAURANT 99172035

At the service below, JCI shall remove both the existing Badger Meter M170 2" water meter and the 2" inlet valve from service. JCI shall both provide and install a new valve of a type approved by the Customer. JCI shall both provide and install a new Badger Meter E170 transit time ultrasonic meter at this service for the purpose of meter typing. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL} Antenna and shall connect the antenna to the

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 11 Schedule 1 endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter box lid. JCI shall install the TTL antenna through that hole.

Converted . . . Serv1ce Senal Locat1on Customer Name Add N ress o. N o. EBB TIDE APARTMENTS 00 E 90 06

c) Large Water Meter Improvements and AMI System Installation

1) Account Number: 662600 Customer Name: Four Brothers Boats Service Address: 17303 Central Avenue Existing Meter: 3" Badger Recordall Turbo 450

Scope of Work: JCI shall remove the existing 3" Badger Meter Recordall Turbo 450 measuring chamber from service. JCI shall provide and install a new 3" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1. 75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

2) Account Number: 000851 Customer Name: Galveston Island Convention Center Service Address: 5600 Seawall Blvd. Existing Meter: 4" Badger Recordall Turbo 1000 Scope of Work: JCI shall remove the existing 4" Badger Meter Recordall Turbo 1000 measuring chamber from service. JCI shall provide and install a new 4" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this ( service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new It ron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

3) Account Number: 631500 Customer Name: Galveston Wharves Service Address: 3300 Avenue A Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1 OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

4) Account Number: 630910 Customer Name: Galveston Wharves Service Address: 2200 Avenue A Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1OOW + ERT endpoint at this

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 12 Schedule 1 service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault ( lid. JCI shall install the TTL antenna through that hole.

5) Account Number: 631790 Customer Name: Seawall Park c/o Park Board Trustees Service Address: 100 Seawolf Park Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing vault lid from service. JCI shall provide and install a new vault lid. JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new It ron 1DOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

6) Account Number: 021703 Customer Name: UTMB Bldg. #44 Service Address: BOO Avenue C Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1 DOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. · JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole. c 7) Account Number: 630022 Customer Name: US Army Corps of Engineers Service Address: 2201 Fort Point Highway Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new It ron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

8) Account Number: 000810 Customer Name: Galveston Convention Center Service Address: 5600 Seawall Blvd. Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1DOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

Johnson Controls, lnc.lnitiafs: ____ Customer Initials: ____

Perfonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 13 Schedule 1 9) Account Number: 646340 Customer Name: Moody Gardens Service Address: 1 Hope Blvd. Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall Turbo 2000 measuring chamber from service. JCI shall provide and install a new 6" Sensus Omni C2 measuring chamber into the existing meter body. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

10) Scope of Work: At the fifty-eight (58) services with Badger Meter FSAA-01 Fire Service Meter Assemblies listed in Table 2, JCI shall remove the existing bypass meter isolation valve handles from service. JCI shall provide and install two (2) new stainless steel bypass meter isolation valve handles.

For both the bypass meter and the main meter at each of these fifty-eight (58) services listed in Table 2 below, JCI shall remove the existing Badger Orion CE endpoint from service and shall cut the register cable near the endpoint. JCI shall provide one hundred and fifty-six (156) pigtails with ltron Pit/ERT lnline Connectors and ltron Splice Kits. Using an ltron Splice Kit, JCI shall splice the existing water meter register cables to the new pigtail with the ltron Pit/ERT lnline Connector.

At each of the fifty-eight (58) services listed in Table 2 below, JCI shall provide and install a new ltron 100W+ ERT endpoint for both the bypass meter and the main meter at this service. JCI shall connect the register cable from the existing bypass meter to a new endpoint and shall connect the register cable from the main meter to a new endpoint.

At each of the fifty-eight (58) services listed in Table 2 below, JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna for both the bypass meter and for the main meter, and JCI shall ( connect a new TTL antenna to each new endpoint. JCI shall bore, burn, cut, or drill two (2) 1. 75" diameter holes through the existing meter vault lids at each of the servi ces listed below in Table 2. JCI shall install the TTL antennas through those holes.

Customer shall be responsible for providing locks to each bypass meter isolation valve assembly to prevent theft of service events.

Meter Meter Account Address Customer Number Size 062660WT 05013393 415 University UTMB 6" X 2" 766330WT 05013402 07 Mile Pa rk Board of Trust ees 6" X 2" 643380WT 05013404 1812 Hope Hope Charities, Inc. 6" X 2" 021693WT 05013401 1100 Avenue C UTMB Bldg. 55 6" X 2" 022630WT 05013406 1202 Avenue B UTMB West Chill Plant 6" X 2" 323300WT 05013407 4115 Avenue 0 Galveston I.S.D. 6" X 1.5" 022540WT 05013426 600 Avenue B UTMB Bldg. 21 022550WT 05013429 901 Avenue B UTMB Bldg. 94 10" X 2" 615300WT 05013420 7302 Hea rds Marina Landing Apartments 6" X 2" 644360WT 05013419 3102 69th Street Captain's Landing Apartments 6" X 2" 647900WT 05013411 3002 69th Street Stewarts Landing Apartments 6" X 2" 630693WT 05013417 438 Yacht Bas in The Yacht Club 6" X 2"

Johnson Controls, Inc. Initials: _ ___ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 14 Schedule 1 Meter Meter Account Address Customer Number Size 742570WT 05013418 3428 Cove View St. Thomas Apartments 6" X 2" 743010WT 05013416 3702 Cove View Health Mark Partners 6" X 2" 644500WT 05013421 6424 Central City Vi llage by the Sea Apartments 6" X 2" 742540WT 05013415 3102 Cove View Lakeside at Campeche Cove 6" X 2" 645070WT 05013451 6315 Central City Broadwater Apartments 6" X 2" 742550WT 05013450 3428 Cove View St . Thomas Apartments 6" x2" 649890WT 05013449 3220- 69th Tampico Cove Co ndominiums 6" X 2" 643250WT 05013408 6702 Seawall Wal Mart 6" X 1.5" 173280WT 05013444 1401 East Beach The Galvestonian 6" X 2" 643840WT 05013433 7000 Seawall Dawn by the Beach 6" X 2" 644590WT 05013435 7700 Seawall The Breakers Condominiums 6" X 2" 769091WT 05013413 19420 San Luis Pass Silverleaf Condominiums 6" X 2" 631023WT 05013443 0 Pelican Island Tesoro/ Coastwlde Marine 6" X 2" 022530WT 05013410 728 Avenue B UTMB Bldg. 71 6" X 1.5" 766780WT 05013432 11947 FM 3005 The Riviera Phase II 6" X 2" 766560WT 05013441 11949 FM 3005 The Riviera Phase I 6" X 2" 742520WT 05013434 3506 Cove View Heron Walks Apartments 6" X 2" 630982WT 05013445 0 Todd Shipyar ds Galveston Wharves 6" X 2"

11 375130WT 05013448 4400 Avenue N The Park Apartments 6 X 2" 767200WT 05013439 11945 FM 3005 West Beach Grand 6" X 2" 173320WT 05013446 415 Seawall Islander East Condominiums 6" X 2" 644740WT 05013447 9520 Seawall Maravilla Condominiums 6" X 2" 652400WT 05013436 5220 Seawa ll San Luis Resort 6" X 2"

11 022590WT 05013431 815 Avenue D Shriners Burn Institute 6" X 2 ( 667120WT 05013396 4800 Port Industrial Oxbow Carbon & Minerals 6" X 2" 120173WT 05013438 2501 Seawall Flagsh ip Hotel 6" X 2" 744080WT 04195850 3433 Cove View Club of the Isle 8" X 1.5" 644730WT 050113430 7820 Seawall The Oceanfront Apartments 6" X 2" 652380WT 05013440 5002 Seawall Holiday Inn Express 6" X 2" 0 Pier 41/Duval 647373WT 05013423 Gulf Sulphur Service 6" X 2" Corporation 100033WT 05013437 1900 Avenue H County of Galveston 6" X 2" 644190WT 05013442 6300 Seawall The Victorian Condominiums 6" X 2" 631460WT 05013392 3800 Jack Field boul. A Galveston Terminal 6" X 2" 191770WT 05013397 1900 Avenue 0 American National Insurance 6" X 2" 631070WT 05013422 0 Mitchell Campus Texas A&M University 8" X 2" 631610WT 05013425 2001 Fort Point US Army Corps of Engineers 8" X 2" 122750 WT 05013403 2302 Seawall RAMADA 6" X 2" 192330WT 05013405 2328 Avenue B MBP Corporation 6" X 2" 192310WT 05013390 2209 Avenue C MBP Corporation 6" X 2" 652440WT 05013412 5220 Seawall The San Luis Condominiums 6" x2" 614810WT 05013395 7200 Hearts Lane Bay Walk Apartments 6" X 2" 192350WT 05013394 2228 Avenue C Washington Building 6" X 2" 649800WT 05013391 6102 Seawall Casa Del Mar 6" X 2"

Johnson Controls, Inc. Initials: ___ _ _ Customer Initials: _____

Perfonnance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 15 Schedule 1 Meter Meter Account Address Customer Number Size 192140WT 05013399 2320 Avenue C The Tremont House 6" X 2" 021920WT 05013428 900 Avenue 0 UTMB Building M-23 8" X 2" 022560WT 05013398 1100 Avenue C UTMB Building M -69 6" X 2"

11) Account Number: 595800WT Customer Name: Best Western Beach Front Inn Service Address: 5914 Seawall Existing Meter: 6" x 2" Badger FSAA-01 Scope of Work: JCI shall remove the existing bypass meter isolation valve handles from service. JCI shall provide and install two (2) new stainless steel bypass meter isolation valve handles. JCI shall remove the existing inlet valve from service. JCI shall provide and install a 6" gate valve of a type approved by the Customer. JCI shal l provide gaskets and stainless steel fasteners.

For both the bypass meter and the main meter, JCI shall remove the existing Badger Orion CE endpoint from service and shall cut the register cable near the endpoint. JCI shall provide two (2) pigtails with ltron Pit/ERT lnline Connectors and ltron Splice Kits. Using an ltron Splice Kit, JCI shall splice the existing water meter register cables to the new pigtail with the ltron Pit/ERT lnline Connector.

JCI shall provide and install a new ltron 100W+ ERT endpoint for both the bypass meter and the main meter at this service. JCI shall connect the register cable from the existing bypass meter to a new endpoint and shall connect the register cable from the main meter to a new endpoint.

JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna for both the bypass meter and for the main meter, and JCI shall connect a new TTL antenna to each new endpoint. JCI shall bore, burn, cut, or drill two (2) 1.75" diameter holes through the existing meter vault lid. JCI shall install the TTL antennas through those holes. ( Customer shall be responsible for providing Jocks to each bypass meter isolation valve assembly to prevent theft of service events.

12) Account Number: 122450 Customer Name: RJ Meridian Care of Galveston, LLC Service Address: 2208 Avenue Q Existing Meter: 4" Badger Recordall CSM Scope of Work: JCI shall remove the existing 4" Badger Meter Recordall CSM from service. JCI shall provide and install a new 4" Sensus Omni C2 meter. The Sensus Electronic Register shall feature an ltron Pit/ERT In line Connector. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vau lt lid. JCI shall install the TTL antenna through that hole.

13) Account Number: 191850 Customer Name: Waverly Holding Co. Service Address: 2200 Avenue 0 Existing Meter: 3" Badger Recordall CSM Scope of Work: JCI shall remove the existing 3" Badger Meter Recordall CSM from service. JCI shall provide and install a new 3" Sensus Omni C2 meter. The Sensus Electronic Register shall feature an ltron Pit/ERT lnline Connector. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the

Johnson Controls, Inc. Initials: _ ___ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 16 Schedule 1 endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

( 14) Account Number: 630242 Customer Name: UTMB Service Address: 1902 Avenue A Existing Meter: 3" Badger Recordall CSM Scope of Work: JCI shall remove the existing 3" Badger Meter Recordall CSM from service. JCI shall provide and install a new 3" Sensus Omni C2 meter. The Sensus Electronic Register shall feature an ltron Pit/ERT lnline Connector. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

15) Account Number: 652510 Customer Name: Seaside Village Service Address: 4925 Fort Crockett Existing Meter: 4" Badger Recordall CSM Scope of Work: JCI shall remove both the existing 4" Badger Meter Recordall CSM and the outlet valve from service. JCI shall provide and install a new 4" outlet gate valve of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners. JCI shall provide and install a new 4" Sensus Omni C2 meter.

The Sensus Electronic Register shall feature an ltron Pit/ERT lnline Connector. JCI shall provide and install a new ltron 1OOW+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. The new endpoint shall be enclosed in a capped section of PVC pipe that is installed in the landscaping adjacent to the vault. The top of the cap shall be at grade level. JCI shall provide both the section of PVC and the cap. JCI shall bore a hole through the vault wall, run the register cable through this hole, and then connect the new water meter register to the new c endpoint. 16) Account Number: 761133 Customer Name: The Villas of Pointe West Condo Assoc., Inc. Service Address: 26555 A-Jetty Drive Existing Meter: 6" Badger Recordall CSM Scope of Work: JCI shall remove the existing 6" Badger Meter Recordall CSM from service. JCI shall provide and install a new 6" Sensus Omni C2 meter. The Sensus Electronic Register shall feature an ltron Pit/ERT lnline Connector. JCI shall provide and install a new ltron 100W+ ERT endpoint at this service. JCI shall connect the new water meter register to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

Johnson Controls, Inc. Initials: ____ Customer Initials: ____ ~ .. Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 17 Schedule 1 17) At each of the three (3) locations listed in the table below, JCI shall remove the existing meter box and lid from service. JCI shall provide and install both a new vault that is suitable for the existing service and a new vault lid. JCI shall remove the existing Badger ORION CE endpoints from service.

JCI shall provide and install two (2) new ltron 1OOW+ ERT endpoints, two (2) ltron Splice Kits, and two (2) ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. JCI shall provide and install two (2) new ltron Through-The-Lid (TTL) Antennas and shall connect each antenna to an endpoint.

18) Account Number: 646530WT Customer Name: Houston Pilots Service Address: 0 Travel Air & Copilot Existing Meter: 3" Badger Recordall Turbo 450 Scope of Work: JCI shall remove the existing meter box and lid from service. JCI shall provide and install both a new vault that is suitable for the existing service and a new vault lid. JCI shall remove the existing Badger ORION CE endpoint from service.

JCI shall provide and install a new ltron 100W+ ERT endpoint, an ltron Splice Kit, and an ltron 5' Cable with In line Connector. JCI shall use an ltron Splice Kit to connect the existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect the existing register cable to a new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect ( the antenna to the endpoint. 19) Account Number: 000721 Customer Name: Hampton Inn & Suites Service Address: 6431 Central Cities Blvd. Existing Meter: 3" Badger Recordall Compound Scope of Work: JCI shall remove the existing meter vault lid from service, and shall both provide and install a new vault lid. JCI shall remove the existing Badger ORION CE endpoints from service.

JCI shall provide and install two (2) new ltron 1OOW+ ERT endpoints, two (2) It ron Splice Kits, and two (2) ltron 5' Cable with In line Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. JCI shall provide and install two (2) new ltron Through-The-Lid (TTL) Antennas and shall connect each antenna to an endpoint.

20) Account Number: 572972 Customer Name: Centerpoint Energy Service Address: 2700 Avenue E Existing Meter: 0.75" Badger Model 35 Scope of Work: JCI shall remove the existing meter vault lid from service, and shall both provide and install a new vault lid. JCI shall remove the existing Badger ORION CE endpoint from service.

JCI shall provide and install a new It ron 1OOW + ERT endpoint, an It ron Splice Kit, and an It ron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect the existing water meter register cable to an ltron 5' Cable with In line Connector. JCI shall connect the existing register cable to a new

Johnson Controls, Inc. Initials: ___ _ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 18 Schedule 1 endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint.

( 21) Account Number: 667510 Customer Name: Main Wastewater Treatment Plant Service Address: 5100 Port Industrial Existing Meter: 4" Badger Record all Turbo 1000 Scope of Work: JCI shall remove the existing meter box and lid from service. JCI shall provide and install both a new vault that is suitable for the existing service and a new vault lid. JCI shall remove the existing Badger ORION CE endpoint from service.

JCI shall provide and install a new It ron 100W + ERT endpoint, an It ron Splice Kit, and an ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect the existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect the existing register cable to a new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint.

22) Account Number: 631240 Customer Name: Pelican Offshore Services Service Address: 0 Pelican Island Existing Meter: 3" Badger Recordall Compound Scope of Work: JCI shall excavate the existing service that is buried (there is no existing vault or lid). JCI shall both provide and install a new vault and vault lid for this service. JCI shall remove the existing Badger ORION CE endpoints from service.

JCI shall provide and install two (2) new ltron 100W+ ERT endpoints, two (2) ltron Splice Kits, and two (2) ltron 5' Cable with In line Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. JCI shall provide and install two (2) new ltron Through-The-Lid (TTL) Antennas and shall connect each antenna to an endpoint. c 23) Account Number: 610901 WT Customer Name: GISD Service Address: 6802 Stewart Existing Meter: 3" Badger Recordall Compound Scope of Work: JCI shall remove the existing meter box and lid from service. JCI shall provide and install both a new vault that is suitable for the existing service and a new vault lid. JCI shall remove the existing Badger ORION CE endpoints from service. JCI shall remove the existing inlet valve from service. JCI shall provide and install a 3" gate valve of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners.

JCI shall provide and install two (2) new ltron 100W+ ERT endpoints, two (2) ltron Splice Kits, and two (2) ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. JCI shall provide and install two (2) new ltron Through-The-Lid (TTL) Antennas and shall connect each antenna to an endpoint.

24) Account Number: 631800 Customer Name: Port of Galveston Service Address: 24'" Street & Harborside Existing Meter: 1 0" Badger Recorda II Turbo 5500 Scope of Work: JCI shall remove both the existing backflow prevention device and the Badger ORION CE endpoint from service. JCI shall both provide and install a spool piece with a 50" lay length to the outlet flange of the existing meter inlet gate valve. JCI shall both provide and install a 1 0" plate

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Pertonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary ©2008 Johnson Controls, Inc. 19 Schedule 1 strainer. JCI shall re-install the existing meter to the outlet flange of the strainer. JCI shall both provide and install a spool piece with a 50" lay length to the outlet flange of the existing meter. The spool piece shall include both a valve and a test port. JCI shall both provide and install a new backflow prevention ( device of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners. JCI shall provide and install a new ltron 100W+ ERT endpoint, an ltron Splice Kit, and an ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect the existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect the existing register cable to a new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

25) Account Number: 543770 Customer Name: Sandpiper Cove Apartments Service Address: 3916 Avenue G Existing Meter: 3" Badger Recordall Turbo 450 Scope of Work: JCI shall remove the existing inlet and outlet valves from service. JCI shall provide and install a new 4" inlet gate valve and a new 4" outlet gate valve of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners.

JCI shall provide and install a new ltron 100W+ ERT endpoint, an ltron Splice Kit, and an ltron 5' Cable with In line Connector. JCI shall use an ltron Splice Kit to connect the existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect the existing register cable to a new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

26) Account Number: 161140 Customer Name: County of Galveston Service Address: 816- 21st Street Existing Meter: 4" Badger Recordall Compound Scope of Work: JCI shall remove the existing inlet valve from service. JCI shall provide and install a new 4" inlet gate valve of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners.

JCI shall remove the existing Badger ORION CE endpoints from service. JCI shall provide and install two (2) new ltron 1 OOW+ ERT endpoints, two (2) ltron Splice Kits, and two (2) ltron 5' Cable with In line Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. JCI shall provide and install two (2) new ltron Through-The-Lid {TTL) Antennas and shall connect each antenna to an endpoint.

27) Account Number: 182002 Customer Name: US National Bank Service Address: 2201 Avenue D Existing Meter: 4" Badger Recordall Compound Scope of Work: JCI shall remove the existing inlet valve from service. JCI shall provide and install a new 4" inlet gate valve of a type approved by the Customer. JCI shall provide gaskets and stainless steel fasteners. JCI shall remove the existing Badger ORION CE endpoints from service.

JCI shall provide and install four (4) new ltron 1DOW+ ERT endpoints, two (2) ltron Splice Kits, and two (2) ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect each existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect each existing register cable to a new endpoint. The endpoints shall be mounted as high in the vault as possible. The two

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Performance Contract {Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 20 Schedule 1 remaining endpoints shall be installed as near to the vault as possible but without posing a trip hazard and programmed transmit in Geomode.

( 28) Account Number: 182750 Customer Name: Frost Bank Service Address: 2201 Avenue D Existing Meter: 4" Badger Recordall Turbo 1000 Scope of Work: JC\ shall remove both the existing register and Badger ORION CE endpoint from service. JCI shall provide and install a new Badger HR-E encoder register with \tron Pit!ERT lnline Connector.

JC\ shall provide and install two (2) new It ron 1OOW+ ERT endpoints. JC\ shall connect the new register cable to a new endpoint. The endpoint shall be mounted as high in the vault as possible. The remaining endpoint shall be installed as near to the vault as possible but without posing a trip hazard and programmed transmit in Geomode.

29) Account Number: 631470 Customer Name: Halliburton Service Address: 0\MCO Pelican Island Existing Meter: 6" Badger Recordall Turbo 2000 Scope of Work: The backflow prevention device is located upstream of the meter. JCI shall rework the existing service so that the existing plate strainer is mounted to the outlet flange of the existing 6" inlet gate valve. JC\ shall provide and install another plate strainer to the existing plate strainer so that there are two strainers with a combined 18" lay-length between the inlet gate valve and the water meter. JC\ shall install the existing backflow prevention device to the inlet flange of the existing outlet gate valve. JCI shall provide and install a spool piece of sufficient length to span the distance between the meter outlet flange and the inlet flange of the backflow prevention device. JC\ shall provide gaskets and stainless steel fasteners.

JC\ shall provide and install a new \Iron 100W+ ERT endpoint, an \Iron Splice Kit, and an \Iron 5' Cable (_ with lnline Connector. JC\ shall use an \Iron Splice Kit to connect the existing water meter register cable to an \Iron 5' Cable with \nline Connector. JCI shall connect the existing register cable to a new endpoint. JC\ shall provide and install a new \Iron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JC\ shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JC\ shall install the TTL antenna through that hole.

30) Account Number: 022180 Customer Name: UTMB Building M-21 Service Address: 600 Avenue B Existing Meter: 4" Badger Recordall Turbo 1000 Scope of Work: The backflow prevention device is located upstream of the meter. JCI shall rework the existing service so that the existing plate strainer is mounted to the outlet flange of the existing 4" inlet gate valve. JC\ shall provide and install another plate strainer to the existing plate strainer so that there are two strainers with a combined minimum lay-length of 15" between the inlet gate valve and the water meter measuring chamber. JC\ shall install the existing backflow prevention device to the inlet flange of the existing outlet gate valve. JC\ shall provide and install a spool piece of sufficient length to span the distance between the meter outlet flange and the inlet flange of the backflow prevention device. JC\ shall provide gaskets and stainless steel fasteners.

JC\ shall provide and install a new \Iron 1 OOW+ ERT endpoint, an \Iron Splice Kit, and an \Iron 5' Cable with lnline Connector. JC\ shall use an \Iron Splice Kit to connect the existing water meter register cable to an \Iron 5' Cable with \nline Connector. JCI shall connect the existing register cable to a new endpoint. JC\ shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Pertorrnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 21 Schedule 1 the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

31) Account Number: 284110 Customer Name: Galveston College Service Address: 4000 Avenue R Existing Meter: 3" Badger Recorda!! CSM Scope of Work: JCI shall remove the existing 3" Badger Meter Recorda!! CSM from service. JCI shall provide and install a new 3" Sensus Omni C2 meter. JCI shall provide gaskets and stainless steel fasteners. The Sensus Electronic Register shall feature an ltron Pit!ERT In line Connector. JCI shall provide and install two (2) new ltron 1OOW+ ERT endpoints. JCI shall connect the new register cable to a new endpoint. The endpoint shall be mounted as high in the vault as possible. The remaining endpoint shall be installed as near to the vault as possible but without posing a trip hazard and programmed transmit in Geomode.

32) Account Number: 668890 Customer Name: Inland Southwest Management Service Address: 6228 Avenue J Existing Meter: 3" Badger Recorda!! CSM Scope of Work: JCI shall remove the existing 3" Badger Meter Recorda!! CSM from service. JCI shall provide and install a new 3" Sensus Omni C2 meter. JCI shall provide gaskets and stainless steel fasteners. The Sensus Electronic Register shall feature an ltron Pit!ERT lnline Connector. JCI shall provide and install two (2) new ltron 1OOW+ ERT endpoints. JCI shall connect the new register cable to a new endpoint. The endpoint shall be mounted as high in the vault as possible. The remaining endpoint shall be installed as near to the vault as possible but without posing a trip hazard and programmed transmit in Geomode.

33) Account Number: 648590 Customer Name: Antigua Apartments Service Address: 8008 Seawall Blvd. c Existing Meter: 3" Badger Recorda!! CSM Scope of Work: JCI shall remove the existing 3" Badger Meter Recorda!! CSM from service. JCI shall provide and install a new 3" Sensus Omni C2 meter. JCI shall provide gaskets and stainless steel fasteners. The Sensus Electronic Register shall feature an ltron Pit!ERT In line Connector.

JCI shall provide and install a new ltron 100W+ ERT endpoint. JCI shall connect the new register cable to the new endpoint. JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

34) Account Number: 410004 Customer Name: Galveston County Service Address: 5800 Avenue H (Site Plant) Existing Meter: 6" Badger Recorda!! CSM Scope of Work: JCI shall remove the existing 6" Badger Meter Recorda!! CSM from service. JCI shall provide and install a new 6" Sensus Omni C2 meter. JCI shall provide gaskets and stainless steel fasteners. The Sensus Electronic Register shall feature an ltron Pit!ERT lnline Connector.

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 22 Schedule 1 35) Account Number: 122910 Customer Name: RJ Meridian Care of Galveston Service Address: 2228 Seawall Blvd. ( Existing Meter: 6" Badger Recordall CSM Scope of Work: JCJ shall remove the existing 6" Badger Meter Recordall CSM from service. JCJ shall provide and install a new 6" Sensus Omni C2 meter. JCJ shall provide gaskets and stainless steel fasteners. The Sensus Electronic Register shall feature an ltron Pit/ERT lnline Connector.

JCJ shall provide and install a new ltron 1OOW+ ERT endpoint. JCJ shall connect the new register cable to the new endpoint. JCJ shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCJ shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCJ shall install the TTL antenna through that hole.

The following applies to the water meters listed above under Small Meter Improvements, Intermediate Meter Improvements, and Large Meter Improvements

Basis of Proposal • The Customer has selected the Badger Meter Model 25, Model 70, M120, M170, E120, and E170 water meters. The Customer has selected the Omni C2 water metering system manufactured by Sensus. The customer has selected the ltron ChoiceConnect AMI system. • Quantities and conditions are based upon information provided to JCI by the Customer as the City of Galveston Data 09-01-2012 to 08-31-2013 R2.zip and the JCIIarge water meter survey that was completed on February 7, 2014. • Existing conditions of the water distribution system that affects JCJ's ability to complete the Scope of Work may require additional compensation.

Miscellaneous Meter Scope of Work: c • Newly installed gate valves shall be approved by Customer prior to installation. • JCJ shall document the End User account number, service address, existing serial number and size, and the final reading from the existing register and outside meter. • For new water meters, JCI shall document the serial number, meter size, initial register reading, and ltron 1OOW+ ERT radio transmitter serial number. • JCI shall provide and install couplings, connectors, gaskets, stainless steel fasteners, and accessories as required. • JCJ shall provide the commissioning of new water meters and the AMI system. • Manufacturer product warranties will be transferred directly to the Customer upon installation • System performance measure for route sign-off: a minimum of 98% of the billing reads shall be obtained for newly installed meters, within a route and within a 3-day read window and containing the billing determinants needed to generate a bill. For the remaining 2%, the Customer will receive an ltron MC3 mobile collector that will enable those meters to be read remotely. If the Jiron MC3 mobile collector cannot obtain a reading, there is a need to troubleshoot the endpoint. • The Customer has selected the Badger Meter Model25, Model70, M120, M170, E120, and E170 water meters. The Customer has selected the Omni C2 water metering system manufactured by Sensus. The customer has selected the Jiron ChoiceConnect AMI system. • Quantities and conditions are based upon information provided to JCJ by the Customer and the JCJ large water meter survey. • JCJ does not accept responsibility for existing conditions of the water distribution system that affects JCJ's ability to complete the Scope of Work. • JCJ shall be responsible for coordinating installation activities with both the End User and the Customer. JCJ shall also provide digital photographs of meter installations included in this improvement measure. The

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Pertormance Contract (Rev 15) Johnson Controls, Inc. - Proprietal}' © 2008 Johnson Controls, Inc. 23 Schedule 1 photographs shall include the final register reading on impacted meters and the area surrounding the meter box or vault just prior to their retrofit or replacement. • JCI will provide necessary data and support for the data integration from the It ron Network software into the ( Customer's existing utility billing system. • JCI shall provide an interface to the existing billing system and shall be responsible for new data entry included with this project into the existing billing system. The interface will be in the form of a Microsoft Excel "flat data" file. • JCI shall provide equipment and service manuals to the Customer. This shall include one-time training of equipment provided in the above scope for the Customers employees.

SYSTEM MAINTENANCE PROCESS

1. JCI will respond to 100% of initial service calls on any meter installed as part of this contract, and not signed off/accepted, where the route was entered (opened). Once the meter has been installed properly per the contract and route acceptance has been completed, Customer will be the initial responder to the call. JCI will only be called out to a meter if a problem consists in item 2 below. 2. If the problem has anything to do with workmanship from an installation (during the warranty period), the problem is the responsibility of JCI. Workmanship examples include anything that has not been completed per the contract (e.g., meter not installed per manufacturer and AWWA guidelines). 3. As stated in Section 7 (Warranty) of this contract and expanded upon in Section 1 of Schedule 1, upon sign-off of each route, all responsibility for warranty coverage of installed equipment will be transferred from JCI to the Customer. Further, meters that are "faulty'' due to non-wear related failure such as, but not limited to, a broken freeze plate, register errors or failure, any End User damages and/or a meter that stops recording water flow after it has already recorded flow are Customer's responsibility.

USE OF, AND ACCESS TO PROJECT CRITICAL EQUIPMENT AND SOFTWARE c Customer agrees to provide unrestricted and timely access to all equipment, software and hardware that is provided through the meter manufacturer as part of this project. This equipment is inclusive of (but not limited to) the following items:

• Handheld Programming Device (Radix, Nomad, or the like) • Fixed Base Advanced Metering Infrastructure (AMI) Hardware and Software • Meter programming and interrogation devices • Remote access and administrative privileges to AMI system management software • Any other manufacturer equipment that is critical to installation

UTILITY INTERRUPTIONS AND CUSTOMER SUPPORT

JCI will be responsible for adequate management, notification, and coordination of installation efforts related to this project. Customer involvement and support will also be required during implementation of this improvement measure. Any staff overtime or water fees that are a result of this project are the responsibility of the Customer.

WEEKLY UTILITY DATABASE REFRESH

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Perfonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 24 Schedule 1 advance of project Notice to Proceed. The file should be either comma delimited or fixed-width and contain (at minimum) the following fields:

( • Service Type (water) • Account ID (Location ID) • Address • Cycle/Zone (if applicable) • Route/Book • Reading Sequence • Radio ID (Smartpoint) • Register ID (e.g., AMI#, Register 10, MIU ID) • Meter Number (e.g., Serial#) • Meter Make (Sensus, Badger Meter, etc ... ) • Meter Model (not required) • Meter Size (0.625 x 0.75, 0.75, 1, 1.5, 2, 3, and 4)

Notes: • The quantities of existing water meters with "Active" accounts are based upon data provided to JCI by the Customer in a spreadsheet contained in an email with explanations to Robert J. Bowen of JCI from the Customer. The name of the file was: City of Galveston Data 09-01-2012 to 08-31-2013 R2.zip. Any additional meters that are found during installation will not be replaced as part of this contract. Any excess materials will be left with the Customer to be used as bench stock. If JCI is requested to install additional quantities of water meters to complete this project, the total installed unit price per meter will be negotiated at that time. • Meter Access Program: Customer support will be required during implementation to obtain access to meters and to coordinate utility interruptions. When Customer confirms access with building owner JCI shall respond as required to meet the installation schedule and the Customer will not be held responsible for any delays associated with those accounts. JCI personnel will be responsible for adequate notification and coordination with appropriate Customer personnel and end users to facilitate access and minimal c disruption. • JCI shall follow the following Access Program: o Written attempt one: JCI will proceed with meter replacement per a scheduled implementation plan. If the installer cannot gain access to the meter (inaccessible), a door hanger with the installer contact phone number to make an arrangement for access, will be left. o Written attempt two: On a second occasion, JCI will attempt to reschedule and access the meter in an attempt to complete the work. If JCI still cannot gain access to the meter, another door hanger will be left. o If access cannot be obtained via "cold-calls", JCI will attempt to contact the end user via telephone to gain access to the meter. A valid telephone attempt is: a) when the End User can be reached; or, b) when a message is left on an answering machine or voice mail. JCI will make a minimum of three telephone attempts utilizing the telephone number supplied by the Customer via the work order data and any other reasonable means available to JCI. A minimum of one telephone call must be attempted on Saturday or on a weekday after 5:00pm. o Written attempt three: On a third occasion, JCI will call for an appointment, and then visit the premise in an attempt to complete the work. If JCI still cannot gain access to the meter, another door hanger will be left. o If 10 business days after JCI delivers the third written attempt, the work order has not been completed and an appointment has not been established, the work order will be returned to the Customer as a "Cannot Complete" order. For project tracking purposes, such orders will be considered complete. A weekly "Cannot Complete" list will be returned to the Customer in an Excel format and at a minimum will contain the following information: o Name o Address

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Pertonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 25 Schedule 1 o Phone numbers called o Dates door hanger left for each of three written attempts o Dates of written attempts ( o Dates and time of each of three valid telephone attempts • Hard to access accounts- Accounts that do not respond to the above attempts process shall be listed by JCI on a weekly basis and submitted back to the Customer, and the Customer will then be responsible for gaining access to these accounts; JCI may participate in the scheduling (with the Customer) and shall participate in the meter change-out of these accounts. • Faulty plumbing or abnormal conditions- If the JCI installer identifies a condition in a residence or business that would prevent the meter from being replaced, that account will be submitted by JCI in a list of accounts to return to the Customer, and the Customer will be responsible for repairing the identified problem within a reasonable time period such that repair will not cause a delay in the implementation of this Scope of Work. Examples of abnormal conditions for water meters include but are not limited to: o Faulty curb stop o Broken isolation valve or isolation valve that will not shut-off o Broken crocks o Corroded plumbing

BIM-2 Automated Leak Detection System This Business Improvement Measure will include the following:

JCI shall furnish and install the following: • Furnish and install up to eleven thousand, five hundred and seventy (11,570) ltron Leak Sensors • Furnish and install Leak Sensor Mounting Brackets for 1.5" and 2" pipes where required • Furnish one (1) WaterPoint PLD Ground Microphone • Furnish one (1) Vivax-Metrotech HL 6000X-PC correlation system that consists of two (2) radio transmitters, two {2) sensors, computer software, and case. • Furnish two (2) Vivax-Metrotech PamHydro-2 hydrophones • Furnish ltron mlogonline hosting services for up to eleven thousand, five hundred and seventy (11,570) c ltron Leak Sensors for one (1) year. • ltron Project Services - Leak Sensor • One (1) year of annual maintenance for the Vivax-Metrotech leak noise correlation system

JCI shall provide three {3) days of onsite training in the installation and operation of the ltron automated leak detection system hardware and software, Vivax-Metrotech leak noise correlators, and WaterPoint PLD ground microphone. In both Years 1 and 2 of the term, JCI shall provide the on-site services of an experienced field engineer for eighty (80) hours per month to manage the Leak Sensors, to correlate probable and possible leak sites, to perform acoustic leak surveys, to provide asset location and field data collection, to train Galveston staff in the operation of the mlogonline software and in the use of a leak noise correlator and a ground microphone, to analyze the results of the leak detection system, and to provide quality assurance in collecting data.

In Year 3, 4 and 5 of the term, JCI shall provide the on-site services of an experienced field engineer for forty (40) hours per month to manage the Leak Sensors, to correlate probable and possible leak sites, to perform acoustic leak surveys, to provide asset location and field data collection, to train Galveston staff in the operation of the mlogonline software and in the use of a leak noise correlator and a ground microphone, to analyze the results of the leak detection system, and to provide quality assurance in collecting data.

The Customer is responsible for making any repairs to its distribution system that are identified by the leak detection system in order to achieve the benefits described in Schedule 2. It is expressly understood that the costs associated with the potential repairs identified by the automated leak detection system shall be borne by the Customer and are not included within the scope of this Agreement, other than amounts that have been included as Customer Controlled Contingency funds in Schedule 4.

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 26 Schedule 1 BIM-3 Advanced Metering Infrastructure System This Business Improvement Measure will include the following:

• AMI system installed shall be the ltron ChoiceConnect™ AMI system with the ltron Analytics Software package • Four (4) tower-mounted collectors (TCU 1 00) and six (6) pole-mounted collectors (CCU 1 00):

20 ccu Power Pole 20 ccu Joint Use Asset Power Pole 20 ccu Joint Use Asset Power Pole 30 ccu Terramar Plant Buildi 20 ccu Joint Use Asset Power Pole 135 TCU UTMB 401 Harborside Dr Tower 150 TCU Galveston Cou Courts 29.229451 TCU 10 Mile Road Water Tower T_4 -95.082079 29.113848 150 TCU White Sands Tower Water Tower

• Forty-three (43) repeaters

Site Height Equipment Longitude Latitude Site Address Site Name ID (ft) Type R 1 -94.749473 29.323336 40 Repeater Seaside Dr. Lift Station Building ( R_10 -94.791864 29.303616 20 Repeater Joint Use Asset Power Pole R 11 -94.793967 29.302557 20 Repeater Joint Use Asset Power Pole R 12 -94.788936 29.301961 20 Repeater Joint Use Asset Power Pole R13 -94.797514 29.304774 20 Repeater Joint Use Asset Power Pole R 14 -94.792661 29.295117 20 Repeater Joint Use Asset Power Pole R 15 -94.805774 29.296653 20 Repeater Joint Use Asset Power Pole R 16 -94.800339 29.287409 20 Repeater Joint Use Asset Power Pole R 17 -94.81654551 29.29171561 20 Repeater Joint Use Asset Power Po le R 18 -94.849863 29.267233 40 Repeater Airport Water Pump Station Building R 19 -94.839527 29.27621 20 Repeater Joint Use Asset Power Pole R 2 -94.78110575 29.31168297 20 Repeater Joint Use Asset Power Pole R_20 -94.823068 29.27386 20 Repeater Joint Use Asset Power Pole R 21 -94.83676 29.267641 20 Repeater Joint Use Asset Power Pole R 22 -94.856936 29.286906 20 Repeater Joint Use Asset Power Pole R 23 -94.873264 29.281963 35 Repeater Teichman Road #28 Power Pole R 24 -94.864529 29.292264 20 Repeater Joint Use Asset Power Pole R 25 -94.876974 29.264862 30 Repeater 103 Cloud Lane #24 Building R 26 -94.86601 29.253143 20 Repeater Joint Use Asset Power Pole

Johnson Controls, Inc. Initials: _ ___ Customer Initials: _ _ _ _

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 27 Schedule 1 Site Height Equipment Longitude Latitude Site Address Site Name ID (ft) Type R 27 -94.808154 29.288999 20 Repeater Joint Use Asset Power Pole R 28 -94.816701 29.28125 20 Repeater Joint Use Asset Power Pole R 29 -94.935968 29.216584 20 Repeater Joint Use Asset Power Pole R 3 -94.78376651 29.30908238 20 Repeater Joint Use Asset Power Pole R 30 -94.936965 29.20891 35 Repeater Pirates Beach 7 Building R 31 -94.948695 29.19986 20 Repeater Joint Use Asset Power Pole R 32 -94.918009 29.222554 18 Repeater #32B Building R 33 -94.987386 29.174012 20 Repeater Joint Use Asset Power Pole R 34 -95.015537 29.156858 20 Repeater Joint Use Asset Power Pole R 35 -95.030157 29.147854 20 Repeater Joint Use Asset Power Pole R 36 -95.045214 29.145464 20 Repeater Joint Use Asset Power Pole R 37 -95.049949 29.140028 20 Repeater Joint Use Asset Power Pole R 38 -95.06919 29.130551 20 Repeater Joint Use Asset Power Pole R 39 -95.104145 29.100819 20 Repeater Joint Use Asset Power Pole R 4 -94.780171 29.308891 20 Repeater Joint Use Asset Power Pole R 40 -95.095597 29.106878 20 Repeater Joint Use Asset Power Pole R 41 -94.827076 29.282982 20 Repeater Lift Station #7 Building R 42 -94.891322 29 .232533 20 Repeater Joint Use Asset Power Pole R 43 -94.884166 29 .237537 20 Repeater Joint Use Asset Power Pole R 5 -94.779055 29.302719 20 Repeater Joint Use Asset Power Pole R 6 -94.789205 29.306524 20 Repeater Joint Use Asset Power Pole ( R 7 -94.794322 29.307229 20 Repeater Joint Use Asset Power Pole R 8 -94.792676 29.305612 20 Repeater Joint Use Asset Power Pole R 9 -94.79002 29.305077 20 Repeater Joint Use Asset Power Pole

(Note: see RF Propagation Map below tor general locations of repeaters. The actual location shall be determined during installation.)

Johnson Controls, Inc. Initials: ____ Customer Initials: ___ _

'·"

miles Scale: 1:200.700 ( • Three (3) FC300 SR, Bluetooth and three (3) FC300 single dock with power supply and power cable • Furnish one (1) ltron MC3 Mobile Collector • Furnish one (1) ltron MC3 Portability Kit • Furnish one (1) ltron MC3 Basic Accessory Kit • Furnish one (1) Toughbook CF-53 Laptop w/DVD • Furnish one (1) Power Adapter, DC Automotive, CF-53 • Furnish MC Software v3.6.1 • Furnish one (1) ltron MC3 RF Unit • Furnish one (1) ltron MC3 Packaging • Furnish and install ltron MVRS Software, License for up to 25,000 ERTs, and software support for one (1) year • Furnish one (1) ltron Network Software with ltron Analytics Software for up to 20,000 ERTs. • Provide up to eleven thousand, nine hundred and ninety (11 ,990) ltron 100W+ ERT Encoder with Integral Connector and Integral Connectors for Leak Sensor & Antenna • Provide up to eleven thousand, eight hundred and thirty-six (11 ,836) ltron 1OOW+ ERT Encoder with Integral Connector and Antenna Connector • Provide up to twenty-three thousand, six hundred and sixty-six (23,666) ltron TTL Antennas • Provide up to twenty-three thousand, eight hundred and twenty-six (23,826) ltron Splice Kits • Provide up to twenty-three thousand, eight hundred and twenty-six (23,826) ltron Standard 5' cable with In Line connector with 0.135" diameter protective cover • Provide up to twenty-four thousand, three hundred and sixty-seven (24,367) Nicer ERT Mounting Brackets for mounting the ltron 1OOW+ ERT endpoints. • Utility billing system interface

Johnson Controls, Inc. Initials: _ ___ Customer Initials: ____

Performance Contract (Rev 15) Johnson Controls, Inc. - Proprietary © 2008 Johnson Controls, Inc. 29 Schedule 1 • For each existing Badger RTR pulse encoder register that shall remain in service, JCI shall remove the existing Badger ORION CE endpoint. JCI shall provide and install a new ltron 100W+ ERT endpoint, an ltron Splice Kit, and an ltron 5' Cable with lnline Connector. JCI shall use an ltron Splice Kit to connect the ( existing water meter register cable to an ltron 5' Cable with lnline Connector. JCI shall connect the existing register cable to a new endpoint.

If the meter box or vault is not located in either a walkway or roadway, JCI shall provide and install a new ltron Through-The-Lid (TTL) Antenna and shall connect the antenna to the endpoint at this service. JCI shall bore, burn, cut, or drill a 1.75" diameter hole through the existing meter vault lid. JCI shall install the TTL antenna through that hole.

If the meter box or vault is located in either a walkway or roadway, JCI shall provide and install an additionalltron 1 OOW+ or ltron 100W-R+ endpoint adjacent to the meter box or vault, and this enpoint shall be programmed to transmit in Geomode. • JCI shall provide a full-time AMI system supervisor who will be responsible for the following: o Answer questions from the public works department, the finance department and the billing department (customer service) o Reply to special requests for information from both the finance department and billing department (customer service) o Operate the ltron ChoiceConnect AMI system Network Administration Application software on a daily basis to promptly identify problems o Convert reports generated by the AMI system into actionable work orders and distribute those work orders in a timely fashion to the responsible parties as proscribed by the Customer. o In conjunction with the Customer, create an auditing program to confirm that the work orders have been executed correctly and in a timely fashion. o Develop procedures and appropriate timelines to escalate awareness of incomplete and incorrectly completed work orders to Customer's management. • JCI shall provide at least three (3) days of on-site training for the ltron Network and Data Analytics software • JCI shall provide It ron Cloud Services for both the Network and the Data Analytics software and for one (1) year of hosting fees. c • JCI shall provide the ltron Analytics Customer Web Portal Software and Professional Services for up to 25,000 ERT's. JCI shall provide ltron Cloud Services for the ltron Analytics Customer Web Portal for one (1) year of hosting fees. • JCI will ensure diligent care in installation and will communicate closely with the Customer's staff if issues are becoming frequent in particular areas of the city. Follow-up repairs will be made as quickly as possible once the need is identified, while installation crews continue their work. In cases of frequent or serious repairs being required, JCI will notify the Customer, and may stop work to investigate the causes and determine a solution. The Customer will be responsible for additional repairs beyond the scope of repair listed within the terms of this contract. • JCI reserves the right to utilize the programming equipment during installation if available on an as needed basis. • The Customer shall continue to be responsible for reading meters until all commissioning and acceptance plan steps are completed for the AMI system route. • All removed water meters and mobile AMR system components are the property of the Customer and will be placed in a mutually agreed upon storage location. • Customer shall be responsible for all annual hardware and software maintenance agreements and hosting service fees for all years of the performance period.

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Pertonnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 30 Schedule 1 BIM-4 Remote Disconnect and Reconnect Ball Valves This Business Improvement Measure will include the following:

( • JCI shall provide and install up to four hundred and twenty (420) SETflowTM 100 Smart Valves at 0.625", ' 0.75", and 1" services specified by the Customer. Immediately upstream of the existing meter box at the selected service, JCI shall excavate the existing service line, cut-in the ball valve, and connect the control wiring from the ball valve to the ltron 100W+ ERT endpoint. JCI shall provide and install a composite valve box in which to contain the ball valve. JCI shall restore the landscaping around the new valve box to its original condition • JCI shall provide ltron Cloud Services for the ltron Security Manager Software for up to 25,000 ERT's and will provide one (1) year of hosting fees.

The following applies to the water meters listed above under Small Meter Improvements, Intermediate Meter Improvements, and Large Meter Improvements

Basis of Proposal • The Customer has selected the Badger Meter M-Series nutating disk, positive displacement water metering system manufactured by Sensus. The Customer has selected the ltron ChoiceConnect AMI system with 100W+ ERT and Leak Sensor. • Quantities and conditions are based upon information provided to JCI by the Customer and the JCI large water meter survey completed on December 5, 2013. Any new material leftover after the completion of the project will be turned over to the Customer to be used as stock. • Existing conditions of the water distribution system that affect JCI's ability to complete the Scope of Work may require additional compensation.

Miscellaneous Meter Scope of Work: • Newly installed gate valves shall be approved by Customer prior to installation. • JCI shall document the End User account number, service address, existing serial number and size, and the final reading from the existing register and outside meter. • For new water meters, JCI shall document the serial number, meter size, initial register reading, and ltron c 1OOW+ ERT radio transmitter serial number. • JCI shall provide and install couplings, connectors, gaskets, and accessories as required excluding shut off valves. • JCI shall provide the commissioning of water meters and the AMI system. • Manufacturer product warranties will be transferred directly to the Customer upon installation • System performance measure for route sign-off: a minimum of 98% of the billing reads shall be obtained for installed meters, within a route and within a 3-day read window and containing the billing determinants needed to generate a bill. For the remaining 2%, the Customer will receive an It ron MC3 Mobile Collector Small Market Edition with FC300SR handheld computer and mobile collector that will enable those meters to be read remotely. If the mobile collector cannot obtain a reading, there is a need to troubleshoot the endpoint. • Quantities and conditions are based upon information provided to JCI by the Customer and the JCI large water meter survey. • JCI does not accept responsibility for existing conditions of the water distribution system that affects JCI's ability to complete the Scope of Work. • JCI shall be responsible for coordinating installation activities with both the End User and the Customer. JCI shall also provide digital photographs of meter installations included in this improvement measure. The photographs shall include the final register reading on meters just prior to their retrofit or replacement. • JCI will provide necessary data and support for the data integration from the ltron Fixed Network software into the Customer's existing utility billing system. • JCI shall provide an interface to the existing billing system and shall be responsible for new data entry included with this project into the existing billing system. The interface will be in the form of a Microsoft Excel "flat data" file.

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Pertorrnance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 31 Schedule 1 • JCI shall provide equipment and service manuals to the Customer. This shall include training of equipment provided in the above scope lor the Customers employees as described below: ltron shall provide the ChoiceConnect product and system level training. ltron ChoiceConnect training sessions are held on a ( scheduled basis ideally at the end of the route install.

( ASSURED PERFORMANCE GUARANTEE- UTILITY METERS

I. PROJECT BENEFITS

A. Certain Definitions. For purposes of this Agreement, the following terms have the meanings set forth below:

Annual Project Benefits are the portion of the projected Total Project Benefits to be achieved in any one year of the Guarantee Term.

Annual Project Benefits Realized are the Project Benefits actually realized for any one year of the Guarantee Term.

Annual Project Benefits Shortfall is the amount by which the Annual Project Benefits exceed the Annual Project Benefits Realized in any one year of the Guarantee Term.

Annual Project Benefits Surplus is the amount by which the Annual Project Benefits Realized exceed the Annual Project Benefits in any one year of the Guarantee Term.

Baseline is the mutually agreed upon data and/or usage amounts that reflect conditions prior to the installation of the Improvement Measures as set forth in Section IV below.

Guarantee Term will commence on the first day of the month next following the Substantial Completion date and will continue through the duration of the M&V Services, subject to earlier termination as provided in this Agreement.

Installation Period is the period beginning on JCI's receipt of Customer's Notice to Proceed and c ending on the commencement of the Guarantee Term.

Measured Project Benefits are the increased meter accuracy benefits calculated in accordance with the methodologies set forth in Section Ill below.

Non-Measured Project Benefits are identified in Section II below. The Non-Measured Project Benefits have been agreed to by Customer and will be deemed achieved in accordance with the schedule set forth in the Total Project Benefits table below. Customer and JCI agree that: (i) the Non Measured Project Benefits may include, but are not limited to, future capital and operational costs avoided as a result of the Work and implementation of the Improvement Measures, (ii) achievement of the Non-Measured Project Benefits may be outside of JCI's control, and (iii) Customer has evaluated sufficient information to conclude that the Non-Measured Project Benefits will occur and bears sole responsibility for ensuring that the Non-Measured Project Benefits will be realized. Accordingly, the Non-Measured Project Benefits shall not be measured or monitored by JCI at any time during the Guarantee Term, but rather shall be deemed achieved in accordance with the schedule set forth in the Total Project Benefits table below.

Project Benefits are the Measured Project Benefits plus the Non-Measured Project Benefits to be achieved for a particular period during the term of this Agreement.

Total Project Benefits are the projected Project Benefits to be achieved during the entire term of this Agreement.

B. Project Benefits Summary. Subject to the terms and conditions of this Agreement, JCI and Customer agree that Customer will be deemed to achieve a total of $14.621.001 in Non-Measured Project

Benefits and JCJ guarantees that Customer will achieve a total of $470.083 in Measured Project ( Benefits during the term of this Agreement, for Total Project Benefits of $15.091 ,084.

Total Project Benefits

5 $98,115 $443,877 $2,648,732 $3,190,724 Total $470,083 $2,126,672 $12,494,329 $15,091,084

*Increased Meter Accuracy Benefit is a Measured Project Benefit. **Mutually-Agreeable Project Benefit and Operations & Maintenance Cost Avoidance are Non-Measured Project Benefits. Operations & Maintenance Cost c Avoidance and Future Capital Cost Avoidance figures in the table above are based on a mutually agreed fixed annual escalation rate of three percent (3.0%).

Within sixty (60) days of the commencement of the Guarantee Term, JCJ will calculate the Measured Project Benefits achieved during the Installation Period plus any Non-Measured Project Benefits applicable to such period and advise Customer of same. Any Project Benefits achieved during the Installation Period may, at JCJ's discretion, be allocated to the Annual Project Benefits for the first year of the Guarantee Term. Within sixty (60) days of each anniversary of the commencement of the Guarantee Term, JCJ will calculate the Measured Project Benefits achieved for the applicable year plus any Non-Measured Project Benefits applicable to such period and advise Customer of same.

Customer acknowledges and agrees that if, for any reason, it (i) cancels, or terminates receipt of M& V Services, (ii) fails to pay forM& V Services in accordance with Schedule 4, (iii) fails to fulfill any of its responsibilities necessary to enable JCI to complete the Work and provide the M& V Services, or (iv) otherwise cancels, terminates or materially breaches this Agreement, the Assured Performance Guarantee shall automatically terminate and JCI shall have no liability hereunder.

C. Project Benefits Shortfalls or Surpluses.

(i) Project Benefits Shortfalls. If an Annual Project Benefits Shortfall occurs for any one year of the Guarantee Term, JCJ shall, at its discretion and in any combination, (a) set off the amount of such shortfall against any unpaid balance Customer then owes to JCJ, (b) where permitted by applicable Jaw, increase the next year's amount of Annual Project Benefits by the amount of such shortfall, (c) pay to Customer the amount of such shortfall, or (d)

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

subject to Customer's agreement, provide to Customer additional products or services, in ( the value of such shortfall, at no additional cost to Customer.*

(ii) Project Benefits Surpluses. If an Annual Project Benefits Surplus occurs for any one year of the Guarantee Term, JCI may, at its discretion and in any combination, (a) apply the amount of such surplus to set off any subsequent Annual Project Benefit Shortfall during the Guarantee Term, or (b) bill Customer for the amount of payments made pursuant to Section C(i)(c) above and/or the value of the products or services provided pursuant to clause C(i)(d) above, in an amount not to exceed the amount of such surplus.*

(iii) Additional Improvements. Where an Annual Project Benefits Shortfall has occurred, JCI may, subject to Customer's approval (which approval shall not be unreasonably withheld, conditioned, or delayed), implement additional Improvement Measures, at no cost to Customer, which may generate additional Project Benefits in future years of the Guarantee Term.

*In the event JCI is providing an Assured Performance Guarantee under Schedule 2, Annual Project Benefits Shortfalls and Annual Project Benefits Surpluses under each such Schedule shall be reconciled against one another.

( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Pertorrnance Contract (Rev t5) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 35 Schedule 2 c II. NON-MEASURED PROJECT BENEFITS Galveston, TX- Non-Measured Benefits 1st Year Annual Source of Non-Measured Project Benefits Project Escalation Benefits Automated leak Detection $207,090 3.0% Intermediate Water Meter Typing $29,665 3.0% large Water Meter Typing $52,295 3.0% Reduction in Theft of Service & Tampering Events $23,379 3.0% Under-Billed Account Correction $317 3.0% Candle Wood Suites Hotel Billing Error Correction $29,178 3.0% large Meter Reading & Billing System Issue Resolution $52,455 3.0% Failed ORION CE Endpoint Benefits $199,000 3.0% Meter Reading Avoided labor Costs $115,828 3.0% Meter Reading Avoided Vehicle Costs $43,361 3.0% Meter Replacement labor $3,183 3.0% Disconnects & Reconnects $3,200 3.0% lost Revenue from Estimated Readings $600,000 3.0% Reduction in Customer Complaint Calls $28,080 3.0% Reduction in Accounts Receivable $550,712 3.0% Reduction in Credits for Customer Complaints $810,000 3.0% c . Total Non-Measured Project Benefits $2,747,743 ~

Customer has furnished the foregoing information to JC/, which information forms the basis of the Non Measured Project Benefits. Customer agrees that the Non-Measured Project Benefits are reasonable and that the installation of the Improvement Measures will enable Customer to take actions that will result in the achievement of such Non-Measured Project Benefits.

1. Automated Leak Detection

This project includes the permanent installation of leak noise loggers throughout the distribution system to record vibrations on the water distribution lines. The frequency histories from each ltron Leak Sensor are uploaded daily to the ltron mlogonline website via the ltron ChoiceConnect AMI system and then analyzed by ltron to identify areas with probable and possible leaks as well as areas in which no leaks are likely. The AWWA Water Audit, which is based upon data provided by the Customer, indicates that the total volume of real water losses in the base year is 1,078.567 million gallons.

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

AWWA WLCC Free Water Audit Software: ------Water Balance Water Audit Report For: Report Yr: Copynght C 2010, Amencan Water Works Assoc1allon. AU A1ghts Reserwd W AS v4 2 Galveston TX 2012

Water Exportecl Billed Water Exported 83.588 Billed Metered Consumption (inc. water Revenue Water Billed Authorized Consumption exported) 3,932.709 Authorized Own Sources Billed Urunetered Consumption 3,932.709 Consumption 3,932. 709 (Adjustecl for 0.000 known errors) 4,020.529 Unbilled Metered Consumption Non-Revenue Water Unbilled Authorized Consumption 22.224 (NRW) 0.000 87.820 Unbilled Unmetered Consumption 65.596 Water Suppliecl Unauthorized Consumption 1,314.942 Apparent LOsses 13 . 119 5,247.652 148.556 CUstomer Metering Inaccuracies 122.318 Systematic Data Handling Errors

Water Losses 13.119 Leakage on Transmission and/or Water Imported 1,227. 122 Distribution Mains Real Losses Not broken down Leakage and Overflows at Utility's 5,331 . 240 1,078.567 Storage Tanks Not broken down Leakage on Service Connections Not broken down

Industry standards and JCI experience indicate that it is economically justifiable to find and repair about 75% of all leaks. Moreover, current technology is only capable of locating about 80% of all leaks and ( breaks.

To calculate the financial benefit from an automated leak detection system, the annual volume of real losses is reduced by those factors and then multiplied by the variable production cost for producing the water. The wholesale cost of water was reported to JCI as $640.00 per million gallons (MG).

1, 078.57 MG X 75% = 808.93 MG which is economically recoverable 808.93 MG x 80% 647.16 MG which is traceable 647.14 MG X $ 640.00 /MG $414,170 potential annual benefit from leak detection

As a conservative estimate, the benefits calculated for this project include only 50.0% of the potential annual benefit from leak detection or $414,170 x 50.0% which equals $ 207,090 per year in guaranteed benefit from reacting to leaks quicker and thus losing fewer gallons of water each year. *

It is important to note that advanced notification of leaks will only be a benefit if the Customer is prompt in responding to identified leaks. If the Customer is either unable or unwilling to correlate and repair identified leaks, the benefit will be reduced accordingly.

The Customer agrees to escalate this benefit at a rate of three percent (3.0%) during each year of the term.

Johnson Controls, Inc. Initials: _____ Customer Initials: _ _ ___

2. Intermediate Water Meter Typing ( A review of the billing system extract and a meter survey revealed that there are numerous 2" services that are grossly oversized for the application. Consequently, the existing meter is not designed to accurately register usage at the low flow rates that are common to that particular service. The Customer therefore experiences high apparent water loss, decreased billable usage, and decreased billable water and sewer revenue.

At each of the services listed in the table below, JCI was able to install demand recording devices for a minimum of seven (7) consecutive days in order to determine the actual flow profile through the meter. The demand recording devices sampled the flow rate through the water meter every ten seconds. From this data, JCI was able to determine the maximum flow rate through the meter and the volume of flow that passed through the service at a rate below that for which the existing meter was designed to accurately measure.

Intermediate Meter Typing Logging Results

Proposed Converted Total Meter Serial %Increase Location Customer Name Service Address Annual Size No. in Billed No. Benefit Usage G.I.S.D. (Austin Middle 353612 1524 42nd St. 1.5 70379280 4.21% $291.52 Magnet School) ( 666370 MOTEL6 7404 AVE J 2 5022083 1.92% $297.69 669098 TARGET STORE T1535 6128 AVE J 2 5022944 5.03% $404.06 014800 EBB TIDE APARTMENTS 100 AVE D 2 9072067 2.63% $521.60 016510 LOASISAPT. 61 0 FERRY ROAD 2 5022151 3.68% $413.12 VILLA MARINA 016520 400 FERRY ROAD 2 5022152 0.33% $101.26 APARTMENTS,LP 016970 CAREL TON COURTYARD 215AVED 2 6098529 0.39% $149.59 (CAREL TON COURTYARD) 016980 PORT HOLIDAY 215 AVE D 2 6098098 0.45% $165.83 APARTMENTS 074360 BEACH SIDE VILLAS LLC 217 AVE F 2 5022114 1.50% $214.24 081452 PHI CHI ASSOC 606 UNIVERSITY BLVD 2 5022060 9.32% $712.26 092140 THE THREE 0 FOUR CORP 711 HOLIDAY DRIVE 2 5022159 0.50% $110.58 322682 G.I.S.D. 180441STST 2 5022100 1.76% $96.66 323200 G.I.S.D. 4115 Avenue 0 2 4.75% $182.51 590860 QUALITY INN & SUITES 5924 SEAWALL BLVD 2 6124193 0.54% $146.89 595140 SOMMERSET RETIREMENT 2828 61ST ST 2 5022104 0.29% $105.39

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Converted Total Meter Serial %Increase Location Customer Name Service Address Annual ( Size No. in Billed No. Benefit

5022091 4.97%

Total $5,638.84

JCI maintains a database of all intermediate water meter typing results. Each record is assigned to a descriptive category {i.e., "Hotel," "Apartment Complex," "School," etc ... ). The services in the table below appeared to be grossly oversized for the application but were not logged. To determine the benefit from intermediate meter typing for those accounts that were not logged, JCI applied the average proposed percent increase in billable usage from the appropriate type of service in the JCI intermediate water meter typing database to each account in the table below.

For each month in the base year, JCI multiplied the existing billed usage by the proposed increase in billed usage from intermediate meter typing. The base year billed water and sewer rate structure was then applied to that product in order to determine the increase in billed water and sewer revenue from intermediate meter typing.

Intermediate Meter Typing Calculated Results

Proposed Converted Total c Meter %Increase Location Customer Name Service Address Serial No. Annual Size in Billed No. Benefit Usage 000214 COMFORT INN & SUITES 6302 SEAWALL BLVD 2 05009289H 0.62% $142.99 TRANSITIONAL LEARNING 6444 CENTRAL CITY 000720 CENTER-RESIDENTIAL 2 5022105 3.64% $443.88 BLVD HOUSING C VILLA MARINA 016400 320 AVE B 2 5022941 0.49% $145.42 APARTMENTS,LP VILLA MARINA 016530 300AVEB II 2 5022150 0.49% $145.43 APARTMENTS,LP PORT AUX PRINCES 7000 NORTH HOLIDAY 017080 2 6098095 2.55% $519.41 CONDOMINIUMS DRIVE PORT AUX PRINCES 7000 NORTH HOLIDAY 017110 2 6098103 0.54% $146.40 CONDOMINIUMS 11 DRIVE 017190 HARBOR VIEW INN II 928 FERRY ROAD 2 5022149 4.75% $298.73 021930 UTMB BLDG #75 328 AVEC 2 5022127 2.48% $520.11 500 HARBORSIDE·- 025100 UTMB 2 7280542 3.53% $460.88 TEMP KITCHEN LANDRY'S SEAFOOD 3502 SEAWALL 031630 2 10259310 3.28% $489.30 HOUSE BLVD/BRICK HOUSE LANDRY'S SEAFOOD 031631 3502 SEAWALL BLVD 2 7280538 3.05% $505.36 HOUSE

Proposed Converted Total Meter %Increase ( Location Customer Name Service Address Serial No. Annual Size in Billed No. Benefit Usaae 032770 CROCKETT COURT MOTEL 4214AVE U 2 5291478 4.75% $293.04 032920 GAIDOS HOTEL 3702 SEAWALL BLVD 2 6098093 3.99% $379.47 FOUR SEASONS ON THE 033010 4000 AVE U 2 6098100 3.12% $499.63 GULF 033190 GAl DO'S 3828 SEAWALL BLVD 2 6098532 3.90% $398.26 MAHALAXMI ENT. INC. C/0 033270 3924AVE U 2 5022110 3.75% $426.58 SUPER 8 MOTEL RONALD MC DONALD 052920 30114TH ST 2 4360159 4.50% $300.54 HOUSE OF GALVESTON 070570 THE SUNFLOWER BAKERY 506 14TH ST 2 5022070 3.50% $465.35 SILVER WOLF (WITHERS, 074170 327 AVE E 2 12134441 2.97% $511.65 KENNETH) 074380 YISHLAM INC 325 AVE F 2 5022094 3.50% $464.82 CARRIAGE HOUSE 083000 615 HOLIDAY DRIVE 2 5022009 3.19% $497.45 CONVERSION LLC 092150 THE THREE 0 FOUR CORP 711 HOLIDAY DRIVE 2 5022072 3.12% $502.70 AMSALEM & SEGAL 161610 2115AVEG 2 6098102 4.18% $339.31 INVESTMENTS 201 171355 SANDPIPER MOTEL 2 10259307 4.06% $362.82 SEAWALUMOTEUPOOL BRINKER INTERNATIONAL 173690 500 SEAWALL CHILl'S 2 5022950 3.77% $422.41 CHILl'S EIBAND'S LUXURY 2201 AVE E UP 24- 181100 CONDOMINIUM 2 5014208 3.70% $434.39 UNITS ASSOCIATION.,INC 184020 ARTIST LOFTS 2223 AVE D 2 5022146 3.78% $421.28 c 211120 MOTEL9,1NC 1002 SEAWALL BLVD 2 5022154 3.90% $395.87 263200 COUNTRY INN SUITES 2818 AVER 1/2 2 8506908 3.19% $496.89 TEXAS SAl ENTERPRIZES 403640 4429 AVE J 2 5022907 2.88% $515.88 INC GALVESTON COUNTY 410001 600 59TH ST 2 4036219 4.16% $341.36 COURTHOUSE GALVESTON COUNTY 410011 600 59TH ST 2 4036218 4.45% $300.39 COURTHOUSE B&G FOOD 415400 5701 AVE J 2 7280545 4.75% $298.91 ENTERPRISES/TACO BELL 553180 MCDONALDS 5223 AVEJ 2 7280541 4.06% $366.68 594100 MCDONALDS 2912 61ST ST 2 8506909 4.25% $322.77 596200 KROGER 5730 SEAWALL BLVD 2 5022068 2.72% $520.05 604900 GREIG, ROBERT 6028 HEARDS LANE 2 5022844 4.17% $340.38 609990 GANDHI, ANDY 2826 63RD ST 2 5022090 0.44% $140.99 614620 BACK BAY TOWN HOMES 7210 HEARDS LANE 2 5022062 3.51% $460.32 29 PIER 21/WILLIE G'S/ 631660 MBP CORP 2 8506927 2.81% $517.50 BLDG A 643100 GANDHI, ANDY 28251/2 61ST ST 2 5022862 3.23% $491.28 1859 HISTORIC HOTELS, 643150 2525 JONES DRIVE 2 6097415 2.91% $514.41 LTD. 643255 MAFRIGE, DON 6600 SEAWALL 2 5014210 4.56% $306.08

Converted Total Meter %Increase Location Customer Name Service Address Serial No. Annual Size in Billed No. Benefit HEALTHY CHINESE 6125 CENTRAL CITIES 643510 2 5022900 4.19% $300.03 BUFFET BLVD LANDRY'S SEAFOOD 5310 SEAWALL BLVD 2 6098094 0.42% $139.62 643640 HOUSE I LANDRY'S I

647500 7200 WILLIAMS DRIVE 2 6098097 3.39% $476.48

647640 6900 WILLIAMS DRIVE 2 5022890 2.55% $520.10

648100 5022885 3.23% $492.61

652180 5022134 2.98% $510.51

664320 6098101 0.51% $145.70

666820 6107 AVE J 2 5022135 2.40% $515.38 c 6128 AVE J 5022073 4.13% $349.26

3100 75TH ST 2 03116434H 4.02% $297.62

The total annual benefit from intermediate meter typing is $5,638.84 + $24,026.95 = $29.665

Because of how demand recording device operate, it is not possible to install these devices to the Badger Meter E-120 and E-170 transit time ultrasonic water meters. Therefore, all intermediate water meter typing benefits shall be deemed as mutually agreeable. The Customer agrees to escalate this benefit at a rate of three percent (3.0%) during each year of the term.

3. Large Water Meter Typing

The large meter survey revealed that there were numerous services that have the wrong type of meter for the application. Specifically, the existing meter is not designed to accurately register usage at the low flow rates that are common to that particular service. Consequently, the Customer experiences high apparent water loss, decreased billable usage, and therefore decreased billable water and sewer revenue.

At each of the services listed in the table below, JCI was able to install demand recording devices for a minimum of seven {7) consecutive days in order to determine the actual flow profile through the meter. The

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

demand recording devices sampled the flow rate through the water meter every ten seconds. From this ( data, JCI was able to determine the maximum flow rate through the meter and the volume of flow that passed through the service at a rate below that for which the existing meter was designed to accurately measure.

JCI then entered the meter logging data, the Customer's water and sewer rate schedule, and the existing and proposed meter performance specifications into the MeterSizer© software (Version 1.4.0) from F.S. Brainard and Company in order to determine the optimal meter size and type for each service shown in the table below and the associated benefit from implementing the change. In the table below, "Accounted-For Water" means the total percentage of the recorded flow that the meter is able to register, and "In Normal Range" means the total percentage of the recorded flow that the meter is able to measure accurately, which is defined as 100% ± 1.5% accuracy.

The base year benefit from this improvement measure is $52,295 as seen in the tables below. The Customer agrees to escalate this benefit at a rate of three percent (3.0%) during each year of the term.

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Badger TSM Meter TSM-Omni C2 Meter Total Annual Maximum Water Sewer Account Meter Benefit from Customer Name Service Address Flow Rate % %In- % %In- Rate Rate No. Model Changing (CFM) Accounted Normal Accounted Normal ($/CCF) ($/CCF) For HzO Range For HzO Range Meter Type Badger 662600 Four Brothers Boats 7500 Harborside 25.56 94.77% 93.79% 98.17% 98.73% $3.45 $0.00 $725 TSM450

4" Meter Typing Results

Badger TSM Meter TSM-Omni C2 Meter Total Annual Maximum Water Sewer Account Meter Benefit from Customer Name Service Address Flow Rate % %In- % %In- Rate Rate No. Model Changing (CFM) Accounted Normal Accounted Normal ($/CCF) ($/CCF) For HzO Range For HzO Range Meter Type GALVESTON ISLAND Badger 5600 SEAWALL 000850 CONVENTION TSM 11.82 93.07% 91.85% 98.18% 98.30% $3.54 $3.81 $2,918 BLVD CENTER ---- 1000

6" Meter Typing Results

Badger TSM Meter TSM-Omni C2 Meter Total Annual Maximum Water Sewer Benefit Account Meter % %In- % %In- Customer Name Service Address Flow Rate Rate Rate from No. Model Accounted Normal Accounted Normal (CFM) ($/CCF) ($/CCF) Changing For H20 Range For H20 Range Meter Type Badger GALVESTON 630910 2200 AVE A TSM 75.05 97.02% 98.26% 97.98% 6.83% $3.45 $0.00 $1,406 WHARVES 2000 SEAWOLF PARK Badger C/0 PARK 100SEAWOLF TSM 631790 64.33 96.40% 97.01% 98.38% 99.26% $3.45 $0.00 $1,781 BOARD PARK 2000 TRUSTEES Badger UTM B BLDG 021703 800 AVEC TSM 32.00 97.99% 98.31% 98.50% 100.00% $3.45 $3.81 $1,281 #44 2000 Badger US Army Corps 2201 Fort Point 630022 TSM 22.51 73.74% 57.59% 97.90% 96.40% $3.45 $3.81 $12,593 of Engineers Highway 2000 Galveston Badger 5600 Seawall 000810 Convention TSM 19.48 87.46% 81.33% 98.40% 97.61% $3.45 $3.81 $9,700 Blvd. Center 2000 Badger 646340 Moody Gardens 1 Hope Blvd. TSM 130.62 61.45% 57.71% 87.26% 72.86% $3.24 $3.81 $1,075 2000 Badger 1101 Harborside 022750 UTMB BLDG #17 TSM 7.30 38.02% 14.57% 98.50% 97.13% $3.45 $3.81 $17,782 Drive 2000 Total $48,651 -·

JohnsonControls, Inc. Initials: ____ _ CustomerInitials: ____ _

During the large meter survey, JCI discovered three (3) services with Badger Meter Fire Series Meter ( Assemblies (FSAA-01) at which the isolation ball valves for the bypass meter had been closed. Thus, the meter assembly at these four locations that served either condominiums or apartment complexes was physically incapable of registering any usage at flow rates of less than 45 gallons per minute. A fourth service had an open bypass line. Upon discovery, JCI immediately brought these incidences to the attention of the City staff, and JCI has photographs documenting the incidences of theft of service and tampering.

Working with the Customer's staff, JCI determined that these incidences of theft of service and tampering were costing the Customer at least $23,739 a year in unbilled water and sewer revenue. As detailed in Schedule 1, JCI shall replace the existing bypass meter isolation ball valve handles at all services with Badger Meter Fire Series Meter Assemblies (FSAA-01) with stainless steel handles that can be locked. The Customer shall be responsible for providing the locks so that the Customer will have ready access to either the key or the combination.

Projected I s· I Increase in I Ac~~~ntI Customer Name I Address lze Total Billed Notes Revenue

Both Genny Kovacevich and Robert Diaz from the THE YACHT 438 YACHT Customer's staff confirmed that this account is a 630693 I 6" $1,529.54 I BASIN INC I BASIN I I regular offender, and the billed usage data supports that statement. ,,, ...... 767200 I 11945 FM 3005 6" $1,945.56 Method #2 Billed Usage used in calculations BEACH GRAND I THE LANDINGS 7302 HEARDS Revenue based on Revised Monthly Average 615300 6" $17,832.83 APARTMENTS LANE Consumption for Sep-Dec 2012, Jan, Mar & April 2013

,...... : ...... h ...... ,.,...... "': ...... : ...... 1 hill ...... ! ...... ~ 017230 I ~ . I 500 Ferry Road

Account No. 630693- The Yacht Basin, Inc.

! Jan Feb Mar Apr M~_ Jun Jul AUQ Sep Oct Nov Dec Total 2010 47,500 47,800 38,300 68,000 201 ,600 2011 87,500 83,900 17,200 19,900 33,700 25,300 26,200 32,900 34,500 36,700 8,000 5,600 411 ,400 2012 16,000 15,700 17,500 15,700 15,500 16,300 16,800 1,000 700 42,000 41,500 38,100 236,800 2013 32,100 0 0 0 9,800 10,000 12,700 13,500 0 26,200 92,200 0 196,500 0 0 2014 ' Average 45,200 49,800 17,350 17,800 24,600 20,800 18,567 23,200 . 41 ,000 . 42, 167 39,900 37,23\ Diff. to Base 13,100 49,800 17,350 17,800 14,800 10,800 5,867 9,700 40,300 167 (1 ,600) (867) Craig C Hannah: Year Survey found 2" bypass -- - meter valves cbsed on this % Diff. to 6" x 2" Badger FSAA-01 fre -4.01 % -2.33% Base 28.98% 100.00% 100.00% 100.00% 60.16% 51.92% 31.60% 41.81% 98.29% 0.40% servi:e meter. No fbw Year bebw 40 gpm was beng registered by the meter .. 9/10 - 10/ 11 Billed Usage 528,200 assemb~. .. 9/11 - 10/12 Billed Usage 199,300 .. 9/12 - 10/13 Billed Usage (Base Year) 200,400

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 41,000 42,167 39,900 37,233 2013 32,100 49,800 17,350 17,800 24,600 20,800 18,567 23,200

.. 364,517 Proposed total billed usage in base year 164,117 Proposed total increase in billed usage in base year 81.89% % increase in billed usage over base year

JohnsonControls , Inc. Initials: ____ _ Customer Initials:___ _ _

Actual Estimated Tier2 Tier3 Calculated Converted Actual Base Tier 2 Tier3 Customer Name Service Address Billed Billed Volume Volume Total Billed Increased LocNo. Charges Charge Usage Usage Usage Usage Charge Charge Revenue Revenue THE YACHT BASIN 438 YACHT 630693 41,000 $752.63 $752.63 23,200 3,800 $116.66 14,000 $457.80 $1,327.09 INC BASIN $574.46 THE YACHT BASIN 438 YACHT 630693 49,800 $794.02 $794.02 23,200 3,800 $123.12 22,800 $786.60 $1,703.74 $909.72 INC BASIN THE YACHT BASIN 438 YACHT 630693 17,350 $794.02 $794.02 17,350 0 $0.00 0 $0.00 INC BASIN $794.02 $0.00 THE YACHT BASIN 438 YACHT 630693 17,800 $794.02 $794.02 17,800 0 $0.00 0 $0.00 $794.02 $0.00 INC BASIN THE YACHT BAS IN 438 YACHT 630693 24,600 $794.02 $794.02 23,200 1,400 $45.36 0 $0.00 $839.38 $45.36 INC BASIN THE YACHT BAS IN 438 YACHT 630693 20,800 $794.02 $794.02 20,800 0 $0.00 0 $0.00 $794.02 $0.00 INC BASIN I TH E YACHT BAS IN 438 YACHT 630693 18,567 $794.02 $794.02 18,567 0 $0.00 0 $0.00 $794.02 $0.00 INC BASIN I THE YACHT BAS IN 438 YACHT I 630693 23,200 $794.02 $794.02 23,200 0 $0.00 0 $0.00 $794.02 $0.00 INC BASIN Total 213,117 $6,310.77 $6,310.77 167,317 $7,840.31 illl:ml:l

JohnsonControls , Inc. Initials:___ _ _ Customer Initials: ___ _ _

c /""'\ Schedule 2

Account # 767200 - The West Beach Grand Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total I

2010 20,600 10,500 8,200 2,900 42,200 ! 2011 3,500 2,600 4,200 5,100 3,400 3,200 5,900 6,500 4,200 6,200 3,500 13,300 61 ,600 i 2012 17,800 4,900 4,400 4,200 3,200 2,500 4,700 5,600 5,700 3,600 3,200 3,400 63,200 ' 2013 3,200 3,400 4,100 3,800 5,700 5,100 0 0 25,300 2014 --- - - Average 3,350 3,633 4,233 4,367 4,100 3,600 5,300 6,050 4,950 4,900 3,350 3,150 Dill. to 150 233 133 567 (1,600) (1,500) 5,300 6,050 (750) 1,300 150 (250) Base Year %D ill. to 4.48% 6.42% 3.15% 12.98% -39.02% -41.67% 100.00% 100.00% -15.15% 26.53% 4.48% -7.94% Base Year

9/10- 8/11 Billed Usage 76,600 9/11 - 8/12 Billed Usage 74,500 9/12- 8/13 Billed Usage (Base Year) 41,200

Proposed Base Year Billed Usage - Method #1 Dec 3,400

52,550 Proposed total billed usage in base year 11,350 Proposed total increase in billed usage in base year 27.55% % increase in billed usage over base year

Proposed Base Year Billed Usage - Method #2 I I Jan I Feb I Mar I Apr 1 May I Jun 1 Jul 1 Aug I Sep Oct Nov Dec I 2012 I I I I I I I I I 10,136 6,402 5,690 6,046 l 2013 1 5,69o 1 6,046 1 7,291 1 6,757 11o,136 1 9,069 __.L 9.425 1 w,7ss T

93,446 Proposed total billed usage in base year 52,246 Proposed total increase in billed usage in base year 55.91% % increase in billed usage over base year

39,300 Total billed usage, 9/2010- 11/2010 22,228 Total billed usage, 9/2012- 11/2012, using Method #2

JohnsonControls, Inc . Initials: ___ _ _ CustomerInitials : __ _ _ _

Actual Tier2 Calculated Converted Service Rate Meter Actual Base Base Tier 2 Increased Customer Name Billed Volume Total Billed Lac. No. Address Code Size Charges Charge Usage Usage Revenue Usage Charge Revenue THE WEST BEACH 11945 FM 767200 010SEW 6 10,136 $203.98 $17.82 500 9,636 $344.97 $362.79 $158.81 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 6,402 $128.80 $17.82 500 5,902 $211.29 $229.11 $100.31 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 5,690 $120.38 $18.98 500 5,190 $197.74 $216.72 $96.34 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 6,046 $129.48 $18.98 500 5,546 $211.30 $230.28 $100.80 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 5,690 $121.85 $18.98 500 5,190 $197.74 $216.72 $94.87 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 6,046 $129.47 $18.98 500 5,546 $211.30 $230.28 $100.81 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 7,291 $156.14 $18.98 500 6,791 $258.74 $277.72 $121.58 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 6,757 $144.71 $18.98 500 6,257 $238.39 $257.37 $112.66 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 10,136 $217.10 $18.98 500 9,636 $367.13 $386.11 $169.01 GRAND 3005 THE WEST BEACH 11945FM 767200 010SEW 6 9,069 $194.24 $18.98 500 8,569 $326.48 $345.46 $151.22 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 9,425 $18.98 $18.98 500 8,925 $340.04 $359.02 $340.04 GRAND 3005 THE WEST BEACH 11945 FM 767200 010SEW 6 10,758 $18.98 $18.98 500 10,258 $390.83 $409.81 $390.83 GRAND 3005 THE WEST BEACH 11945FM 767200 070WAT 6 10,136 $752.63 $752.63 10,136 0 $0.00 $752.63 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 6,402 $752.63 $752.63 6,402 0 $0.00 $752.63 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 5,690 $785.75 $794.02 5,690 0 $0.00 $794.02 $8.27 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 6,046 $794.02 $794.02 6,046 0 $0.00 $794.02 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 5,690 $794.02 $794.02 5,690 0 $0.00 $794.02 $0.00 GRAND 3005

JohnsonControls, Inc. Initials: ____ _ CustomerInitials: ____ _

Actual Tier 2 Calculated Converted Service Rate Meter Actual Base Base Tier 2 Increased Customer Name Billed Volume Total Billed Loc. No. Address Code Size Charges Charge Usage Usage Revenue Usage Charqe Revenue THE WEST BEACH 11945 FM 767200 070WAT 6 6,046 $794.02 GRAND 3005 $794.02 6,046 0 $0.00 $794.02 $0.00 THE WEST BEACH 11945 FM 767200 070WAT 6 7,291 $794.02 $794.02 7,291 0 $0.00 $794.02 GRAND 3005 $0.00 THE WEST BEACH 11945 FM 767200 070WAT 6 6,757 $794.02 $794.02 6,757 0 $0.00 $794.02 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 10,136 $794.02 $794.02 10,136 0 $0.00 $794.02 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 9,069 $794.02 $794.02 9,069 0 $0.00 $794.02 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 9,425 $794.02 $794.02 9,425 0 $0.00 $794.02 $0.00 GRAND 3005 THE WEST BEACH 11945 FM 767200 070WAT 6 10,758 $794.02 $794.02 10,758 0 $0.00 $794.02 $0.00 GRAND 3005 Total $11,021.30 $12,966.86 •':i -=EI•1t•1;11

JohnsonControls, Inc. Initials: ____ _ CustomerInit ials: ___ _ _

c m ~ ~~~ - · ~ ! +- ~

\l ,r--. ' (\ Schedule 2

Account # 615300 - The Landings Apartments

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 0 6,300 7,000 0 0 13,300 201 1 0 282,600 84,400 5,700 2,700 375,400 2012 2,100 3,300 2,200 7,600 1,300 8,200 9,900 17,400 12,400 11,800 10,600 13,900 100,700 2013 12,400 65,300 11,400 15,800 55,600 67,900 54 700 54,700 0 122,800 5,000 465,600 2014 5,800 26,500

,. 386,500 ,. Total billed usage in base year ,. 32,208 Average monthly usage in base year 5 Months in base year with billed usage >20,000 CF 59,640 Average monthly usage in base year when billed usage >20,000 CF

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 55,000 55,000 55,000 50,000 2013 50,000 65,300 55,000 55,000 55,600 67,900 54,700 54,700 ------

673,200 Proposed total billed usage in base year 286,700 Proposed total increase in billed usage in base year 74.18% %increase in billed usage over base year

12,400 20.79% 11,800 19.79% 10,600 17.77% 13,900 23.31% 12,400 20.79% 11,400 19.11% 15,800 26.49% Average 21.15%

JohnsonControls , Inc. Initials: ____ _ Customer Initials:____ _

Actual Tier 2 Tier 3 Calculated Converted Service Rate Meter Actual Base Base Tier 2 Tier3 Increased Customer Name Billed Volume Volume Total Billed Loc. No. Address Code Size Charges Charge Usage Usage Usage Revenue Usage Charge Charge Revenue THE LANDINGS 7302 615300 010SEW 6 55,000 $443.84 $17.82 500 54,500 $1,951 .10 0 $0.00 $1,968.92 $1,525.08 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 55,000 $422.36 $17.82 500 54,500 $1,951.10 0 $0.00 $1,968.92 $1,546.56 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 55,000 $396.40 $18.98 500 54,500 $2,076.45 0 $0.00 $2,095.43 $1 ,699.03 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 50,000 $529.52 $18.98 500 49,500 $1,885.95 0 $0.00 $1 ,904.93 $1,375.41 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 50,000 $472.37 $18.98 500 49,500 $1 ,885.95 0 $0.00 $1,904.93 $1,432.56 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 55,000 $434.27 $18.98 500 54,500 $2,076.45 0 $0.00 $2,095.43 $1 ,661.16 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 010SEW 6 55,000 $601.91 $18.98 500 54,500 $2,076.45 0 $0.00 $2,095.43 $1,493.52 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 55,000 $752.63 $752.63 23,200 3,800 $1 16.66 28,000 $915.60 $1,784.89 $1 ,032.26 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 55,000 $752.63 $752.63 23,200 3,800 $1 16.66 28,000 $915.60 $1 ,784.89 $1,032.26 I APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 55,000 $859.63 $794.02 23,200 3,800 $123.12 28,000 $966.00 $1,883.14 $1 ,023.51 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 50,000 $794.02 $794.02 23,200 3,800 $123.12 23,000 $793.50 $1,710.64 $916.62 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 50,000 $794.02 $794.02 23,200 3,800 $123.12 23,000 $793.50 $1,710.64 $916.62 APARTMENTS HEARDS LN I THE LANDINGS 7302 615300 070WAT 6 55,000 $794.02 $794.02 23,200 3,800 $123.12 28,000 $966.00 $1,883.14 $1,089.12 APARTMENTS HEARDS LN THE LANDINGS 7302 615300 070WAT 6 55,000 $794.02 $794.02 23,200 3,800 $123.12 28,000 $966.00 $1 ,883.14 $1 ,089.12 APARTMENTS HEARDS LN Total 750,000 $8,841 .64 $5,605.90 $26,674.47 1111111111

JohnsonControls , Inc. Initials:__ _ _ _ Customer Initials: ____ _

Account #017230 - Harbor East Condominiums Association

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 9,400 15,700 11,100 8,700 10,600 9,500 7,800 9,500 8,700 5,800 6,700 6,900 110,400 2011 9,000 7,400 7,300 11,400 8,200 8,800 11,900 14,800 13,100 13,100 4,300 2,500 111,800 2012 3,100 2,500 2,500 2,600 2,800 3,200 3,400 2,700 3,000 4,400 4,300 3,600 38,100 2013 3,800 5,900 6,200 2,400 6,400 4,500 5,200 6,200 5,400 3,000 1,100 2,400 52,500 2014 3,600 13,900 10,100 Average 9,200 12,333 9,500 10,050 9,400 9,150 9,850 12,150 10,900 9,450 6,700 6,900 Diff. 5,400 6,433 3,300 7,650 3,000 4,650 4,650 5,950 7,900 5,050 2,400 3,300 % Diff 58.70% 52.16% 34.74% 76.12% 31.91% 50.82% 47.21% 48.97% 72.48% 53.44% 35.82% 47.83%

9/10- 8/11 Billed Usage 106,900 9/11- 8/12 Billed Usage 55,800 Mtliff:l Mutually-agreeable percent accuracy 9/12 - 8/13 Billed Usage (Base Year) 55,900 Difference 52.29%

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 8,700 5,800 4,300 2,500 2013 9,000 12,333 9,500 8,700 8,200 8,800 7,800 9,500

95,133 Proposed tota l billed usage in base year 39,233 Proposed tota l increase in billed usage in base year 70.18% %increase in billed usage over base year

JohnsonControls, Inc. Initials:____ _ CustomerIn itials: ____ _

Projected Actual Tier2 Converted Rate Meter Actual Base Base Tier 2 Increase Customer Name Service Address Billed Volume Lac. No. Code Size Charges Charge Usage Usage in Billed Usage Charge Revenue HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 3,000 $107.32 $17.82 500 2,500 $89.50 $95.28 AS SOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 4,400 $157.44 $17.82 500 3,900 $139.62 $148.63 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 4,300 $162.86 $17.82 500 3,800 $136.04 $154.40 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 3,600 $137.10 $18.98 500 3,100 $118.11 $125.75 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 3,800 $144.71 $18.98 500 3,300 $125.73 $133.85 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 5,900 $224.72 $18.98 500 5,400 $205.74 $219.02 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 6,200 $236.15 $18.98 500 5,700 $217.17 $231.19 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 2,400 $91.37 $18.98 500 1,900 $72.39 $77.06 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 6,400 $243.77 $18.98 500 5,900 $224.79 $239.30 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 4,500 $171.38 $18.98 500 4,000 $152.40 $162.24 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 5,200 $198.05 $18.98 500 4,700 $179.07 $190.63 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 010SEW 4 6,200 $236.15 $18.98 500 5,700 $217.17 $231.19 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 3,000 $376.33 $376.33 3,000 0 $0.00 $0.00 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 4,400 $376.33 $376.33 4,400 0 $0.00 $0.00 AS SOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 4,300 $434.66 $376.33 4,300 0 $0.00 $62.10 AS SOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 3,600 $397.03 $397.03 3,600 0 $0.00 $0.00 AS SOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 3,800 $397.03 $397.03 3,800 0 $0.00 $0.00 AS SOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 5,900 $397.03 $397.03 5,900 0 $0.00 $0.00 ASSOC ROAD HARBOR EAST CONDO 500 FERRY 017230 060WAT 4 6,200 $397.03 $397.03 6,200 0 $0.00 $0.00 ASSOC ROAD

JohnsonControls, Inc. Initials: ____ _ CustomerInitials: ____ _

Projected Actual Tier 2 Converted Rate Meter Actual Base Base Tier 2 Increase Customer Name Service Address Billed Volume Loc. No. Code Size Charges Charge Usage Usage in Billed Usage Charge Re HARBOR...... EAST CONDO 500 FERRY 017230 __ --·r"''o. 060WAT 4 2,400 $397.03 $397.03 2,400 0 $0.00 $0.00

I l I L.J' I I VVV I '-1_.. 11 1 I 017230 I r>l '-'1 ...... L...r\ ...... __ --· 'I LJ ..._, I __..... I 060WAT I 4 I 6,400 $397.03 $397.03 6,400 0 $0.00 $0.00

I l r\1 ILI'\..J I I L..T""'\'U I \..J'\..J I 'ILJ"-' VVV __I L-11111_._ 017230 I ...... __ I I 060WAT I 4 I 4,500 $397.03 $397.03 4,500 0 $0.00 I $0.00

I IT""'\ I I LJ'-'l I L...T""'\o.J I '""'-'' 'I L.I'-' VVV I L-1 1111 017230 I ...... _ ..... I ---- I 060WAT I 4 I 5,200 $397.03 $397.03 5,200 0 $o.oo 1 $0.00

I ._ , II l I I 1r-.1 lLJ'-'1 ...... I '-,-,.._, __ I --· 'ILJ'- VVV 017230 I I --·- I 060WAT I 4 I 6,200 $397.03 $397.03 6,200 0 $o.oo I $0.00

JohnsonControls, Inc. Initials:____ _ Customer Initials: ____ _

The meter serving location number 764590 was being billed as a 4" meter. During the large water meter survey, JCl discovered that this was in error and that a 6" meter was installed at this service. This is a water-only service, so the total annual increase in base water revenue to the city from correctly billing for a 6" meter is $317.

Existing Billing System Extract for Location Number 764590

Meter : Location Cycle. Route Meter Meter Billed I Meter Base Customer Name Servlte Address ACCT Service Size MFR Serial No. Install Date Meter Location Bill Date Curr Mtr Read Charges No ,Code! Status Code''" 'Registration Multiplier,! Usage "' Updated I Info i Multiplier

J~ 5_~~-~-.t!()~_EOWN_E_!IS__ _t_U_IS~fl.Sli _:_!_~55<1::(:!,1_~-~-NI!_~ll~~r- 06_Q_WAT, : _?_6_.,?90.. _; 76 __ ~SN1QI!_l1 ~N 4 ____s_a dg~r: Q§:!O:

· 764590 lA 76 SEASCAPEHOMEOWNERS ASSN 10811 SAN tuiS PASS 77554. CURRENT' Water 060WAT,. 4 8 i }.6959_0 , -lA 76 _ :_SE,ASCAPEHOMEOWNERS ASSN io8l1sAN i.UIS PP.SS 7Jss4;·ci.iRRef.n::Wate~ :·iJGcii;vi;T,."4 -: :~~::~ :~-:}~~!:-:~ :~~~~i~~~-~~~ci: ~{;::~-6~-~*:~~:~i~l1% !}z~~A ~~~~:-i~}-----j:-i~~- ----~~~ :------}~&-_~-_~i!~-~-~j: ~~~;_!:~j-1~§!~]--~i~

'_7~4?9_0:_s~-~~E __I:!_O_M_~O"'!NE_RS 10_811_~NJ75S~: CURRENTI'•'(~ter o~owA_T_:"~ : _lA '_?_!i_ ASSN L!JJSPASS , : B_a~ger:_q6~Q4_5:4?_H __3/J/200fl Q:Q_O_2_2~8_"~_0F_[)RI_y_~A'y' 1_2f!ononQ:ap_:_2_~6______3_6_63? ~ __ cu ft ___!OQ __ ---f-~_z.()p_Q_;_ S___ _ll_2_9_3_? __Lll!="':fi<:T_;. ____ 1_ 1

76_4590 lA j _7_6 SEASCAPE_HOM_EOWNERS_ASSN '1081_1 SAN_lUISPASS '?!SS4_; CURRENT!Water '060WAT' _ 4 _Badger:06104548H :311/_200_60:00' 22'8"EASTOF DRIVEWAYI 1/14/2013 0:00 : 256 3_6798 cu f_t 100 ___; 16,300' $ ?5_1_.20_1ACJACT; 1 -76459_0_ -1A 16 -·-sEAsCAPE-H-o-MEOWNERS AsSN ioBli SANtu-1s PAss 77554 cuRRENT!water o6oWATr 4 i . Badger: 06104~4_8H:3/1/2006 __0:0_0: 22'_8:EAST_c)f_DR)VE!.VA_Yi 2/J!n_l;Jl_3 _0:;_1!_0_; _264__ _ 371.2!1_:_ _cu__ft - : _1_l;)_O_- i____~3,!1_~0_ j :s_ -~•_1_S_8_.

?645_9_~-~~ __7§: ;_~f!IS~~!'-HO_~E_q_.....Ngi!S ~N _:1!1_8_1_1SAN__L_!JIS_!'_ASS_ 7_7_?S

,--764590 . 1A 76 SEASCAPEHOMEOWNERS ASSN : 1081_1SAN lUIS PASS . 775S4: CURRENTWater 060WAT,. 4 ~adg!Or;_06_!Q_4_~~-~1-:1_;_3/.1/20_0~_0~00i_2_2'_8_"~0~_!lRIY~AY;-~/_10/_~qp_o_,oq_?J3 38404. _cu_ft _ _1_QO___ _3_~.§_Qp_)_s__1,!_8__?,.~:fl_gflg_~ ______!

SEAS~PEHo/l,olE_mv_NERS_~sN _1~8ll -Wate~ · 764590_-·1A- 76 i SANlUIS_ PASS · 775S4_:cuRRENT: : 06-0WAT-" - 4 Badger:o6104548H ·3/1/2006 0:00; ~2'8"~0FDRIV£1.VAY_ _7/Sn_o_g()_;Q_Q_ _274 __3_9_Q~~ ~ _cu ft )0()_ 69,100 ,;.S_ p?_6_,~5JA_gAq_~___1_ -764590 · 1A 76 sEAS-cAPEHOMEOWNERs ASsN' ioiiu SANLUIS PASs 77554 :cuRRENT water 'o60WAT" 4 Badger· 06104548H · 3/1/2006 Q:OO'22'8"EASTOF DRIVEWAYB/12/2013 0:00 280 39934 cu ft 100 84,600 1 $_ 2,919.1S i ACTACT: :_47_4,100.: $16,_06?_.84_i

Verification of Billing Data for Location Number 764590

Date Size Rate Code Rate1 Usage1 RateZ/100d Us~gez Rate3/100d Usage3 Rate4/100d Usage4 RateS 100d Usal!:e5 11 1 2011 4" 060SPK,060WAT $ 376.33 11600 $ 0.0307 15,400 $ 0.0327 61,400 $ 0.0332 1,011,400 $ 0.0399 > 1011400 10/1 2012 4" 060SPK,060WAT $ 397.03 11600 $ 0.0324 15,400 $ 0.0345 61,400 $ 0.0350 1,011,400 $ 0.0421 > 1011400

Tier 2 Volume Tier 3 Volume Tier4 Volume Total Volume Calculated Total Delta Base Charge Base Usage Tier2 Usage lier3 Usage lier4 Usage Total Tier Usage Charge Charge Charge Charge Billed Revenue Billed vs Calc

$ 376.33 11,600 3,800 $ 116.66 46,000 $ 1,504.20 2,700 $ 89.64 64,100 $ 1,710.50 $ 2,086.83 $0.01 $ 376.33 11,600 3,800 $ 116.66 10,400 $ 340.08 $ 25,800 $ 456.74 $ 833.07 $0.01 $ 397.03 11,600 3,800 $ 123.12 9,500 $ 327.75 $ 24,900 $ 450.87 $ 847.90 ($8.93) $ 397.03 11,600 3,800 $ 123.12 11,600 $ 400.20 $ 27,000 $ 523.32 $ 920.35 $0.00 $ 397.03 11,600 3,800 $ 123.12 900 $ 31.05 $ 16,300 $ 154.17 $ 551.20 $0.00 $ 397.03 11,600 3,800 $ 123.12 18,500 $ 638.25 $ 33,900 $ 761.37 $ 1,158.40 $0.00 $ 397.03 11,600 3,800 $ 123.12 5,000 $ 172.50 $ 20,400 $ 295.62 $ 692.65 $0.00 $ 397.03 11,600 3,800 $ 123.12 26,900 $ 928.05 $ 42,300 $ 1,051.17 $ 1,448.20 $0.00 $ 397.03 11,600 3,800 $ 123.12 15,700 $ 541.65 $ 31,100 $ 664.77 $ 1,061.80 $0.00 $ 397.03 11,600 3,800 $ 123.12 19,200 $ 662.40 $ 34,600 $ 785.52 $ 1,182.55 $0.00 $ 397.03 11,600 3,800 $ 123.12 46,000 $ 1,587.00 7,700 $ 269.50 69,100 $ 1,979.62 $ 2,376.65 $0.00 $ 397.03 11,600 3,800 $ 123.12 46,000 $ 1,587.00 23,200 $ 812.00 84,600 $ 2,522.12 $ 2,919.15 $0.00 $ 4,722.96 474,100 $ 11,355.79 $ 16,078.75 $ {8.91)

Benefit Calculations for Location Number 764590

Water Size Rate Code Rate1 Usa2e1 Rate2/100cf Usage2 Rate3/100cf Usage3 Rate4/ 100cf Usal!;e4 RateS/100cf UsageS I 11/1/2011 6" 070WAT $ 752.63 23 200 $ 0.0307 27 000 $ 0.0327 73 000 $ 0.0332 1 023 000 $ 0.0399 > 102300 0 I 10/1/2012 6" 070WAT $ 794.02 23,200 $ 0.0324 27,000 $ 0.0345 73,000 $ 0.0350 1,023,000 $ 0.0421 > 102300 0 ner2 ner4 Tier 3 Volume Total Volume Calculated Total Delta Billed vs Base Charge Base Usage Tier2 Usage Volume Tier3 Usage Tier4 Usage Volume Total Tier Usage Charge Charge Billed Revenue Calc Charge Charge $ 752 .63 23,200 3,800 $ 116.66 37,100 $ 1,213.17 $ 64,100 $ 1,329.83 $ 2,082.46 $ 4.38 $ 752 .63 23,200 2,600 $ 79.82 $ $ 25,800 $ 79.82 $ 832.45 $ 0.63 $ 794.02 23,200 1,700 $ 55.08 $ $ 24,900 $ 55.08 $ 849.10 $ (10.13) $ 794.02 23,200 3,800 $ 123.12 $ $ 27,000 $ 123.12 $ 917.14 $ 3.21 $ 794.02 16,300 $ $ $ 16,300 $ $ 794 .02 $ (242.82) $ 794.02 23,200 3,800 $ 123.12 6,900 $ 238.05 $ 33,900 $ 361.17 $ 1,155.19 $ 3.21 $ 794.02 20,400 $ $ $ 20,400 $ $ 794.02 $ (101.37) $ 794 .02 23,200 3,800 $ 123.12 15,300 $ 527.85 $ 42,300 $ 650.97 $ 1,444.99 $ 3.21 $ 794.02 23,200 3,800 $ 123.12 4,100 $ 141.45 $ 31,100 $ 264.57 $ 1,058.59 $ 3.21 $ 794.02 23,200 3,800 $ 123.12 7,600 $ 262.20 $ 34,600 $ 385 .32 $ 1,179.34 $ 3.21 $ 794.02 23,200 3,800 $ 123.12 42,100 $ 1,452.45 $ 69,100 $ 1,575.57 $ 2,369.59 $ 7.06 $ 794.02 23,200 3,800 $ 123.12 46,000 $ 1,587.00 11,600 $ 406.00 84,600 $ 2,116.12 $ 2,910.14 $ 9.01 $ 9,445.46 474,100 $ 6,941.57 $ 16,387.03 $ (317.19}

6. Candle Wood Suites Hotel Billing Error Correction

The large water meter survey revealed that the account serving the Candle Wood Suites Hotel was not created correctly. The hotel is served by a 3" Badger CSM compound meter, which has two registers-one for the bypass meter that registers usage at flow rates of below 9 gallons per minute and another for the main (turbine) meter that registers usage above 15 gallons per minute. Both meters are reg istering usage during the cross-over period. For some reason, only one register (probably the main meter) at this meter has ever been billed since the account was created. To determine the benefit from correctly billing this account, we researched the billed usage at other hotels in Galveston of similar size and then applied the difference to the existing base year billed usage. At a minimum, this billing system error costs the City of Galveston $29,178 in unbilled water and sewer revenue in the base year.

JohnsonControls, Inc . Initials:____ _ Customer Initials: _ ___ _

Base Year Monthly Billing from Reasonably Similar Hotels on Galveston Island

Account No. . 122750 . 173570 . 595800 . 652380 000721 641041 644430 J 66188 MeterS/N 05013403 04178498 05013414 05013440 06103139 06567087 5022111 8034638 Service Address 2302 Seawall 102 East Seawall Blvd. 5914 Seawall 5002 Seawall 6431 Central Cities Blvd. Bldg. 3606-89th St. 2825·61st St. 808-61st St. Customer Name Four Points Comfort Inn & Suites Best Western Beach Front Inn Holiday I nn Express Hampton Inn & Suites Comfort Suites I Hospitality Hotel's, Inc. Candle Wood Suites Meter Size 6" X 2" 3" 6" X 2" 6" X 2" 3" 3" 2" 3" Meter Model FSAA-01 CSM FSAA-01 FSAA-01 CSM CSM PO CSM I Meter Description 6" TSM 2000 x 2" M170 400 6" TSM 2000 x 2" Ml70 6" TSM 2000 x 2" M170 400 400 M170 400 I #of Rooms 125 62 150 178 104 57 95 N/A Avg. Use per Room 3,147.20 5,429.03 4,748.00 7,049.44 2,901.92 3,831.58 6,174.74 N/A Bill Date Billed Usage Bill Date Billed Usage Bill Date Billed Usage Bill Date Billed Usage Bill Date Billed Usage Bill Date Billed Usage 8i11Date Billed Usage Bill Date Billed Usage 41,176 63,400 9/10/2012 0:00 26,700 9/24/2012 0:00 103,000 9/24/2012 0:00 162,400 9/24/2012 0:00 36,200 9/24/2012 0:00 29,300 9/24/2012 0:00 88,300 9/24/2012 0:00 3,400 41,204 21,500 10/8/2012 0:00 33,600 10/22/2012 0;00 62,400 10/22/2012 0:00 74,800 10/ 22/2012 0:00 26,200 10/ 22/2012 0:00 15,100 10/22/2012 0:00 60,100 10/22/2012 0:00 2,200 41,239 22,000 11/12/2012 0:00 7,200 11/26/2012 0:00 57,700 11/26/ 2012 0:00 100,700 12/7/2012 0:00 26,600 11/26/2012 0:00 14,600 11/26/ 2012 0:00 28,600 11/26/2012 0:00 2,900 41,262 18,700 12/27/2012 0:00 27,900 1/3/2013 0:00 41,200 12/19/2012 0:00 78,100 1/3/ 2013 0:00 24,700 12/19/2012 0:00 14,400 12/19/2012 0:00 38,200 12/ 19/2012 0:00 0 41,306 23,400 1/14/2013 0:00 27,900 1/24/2013 0:00 40,900 1/24/2013 0:00 74,500 1/24/2013 0:00 23,600 1/ 24/2013 0:00 8,500 1/24/2013 0:00 27,500 1/24/2013 0:00 0 41,334 25,500 2/11/2013 0:00 16,800 2/20/2013 0:00 59,800 2/20/2013 0:00 90,100 2/20/ 2013 0:00 18,900 2/20/2013 0:00 12,500 2/20/ 2013 0:00 29,900 2/20/2013 0:00 0 41,354 28,200 3/11/2013 0:00 25,400 3/21/2013 0:00 6,700 3/21/2013 0:00 81,100 3/21/2013 0;00 14,500 3/21/2013 0:00 19,100 3/ 21/2013 0:00 51,700 3/21/2013 0:00 0 41,386 31,500 4/8/2013 0:00 30,600 4/22/2013 0:00 61,600 4/22/2013 0:00 114,400 4/22/2013 0:00 25,500 4/22/2013 0:00 14,600 4/22/2013 0:00 48,000 4/22/2013 0:00 0 41,428 12,500 5/13/2013 0:00 18,000 5/23/2013 0:00 46,200 5/23/ 2013 0:00 90,100 5/23/2013 0:00 19,900 5/23/ 2013 0:00 19,900 5/ 23/2013 0:00 33,300 5/23/2013 0:00 0 41,449 41,800 6/10/2013 0:00 38,300 6/24/2013 0:00 73,800 6/24/2013 0:00 101,300 6/24/2013 0:00 22,400 6/24/2013 0:00 19,300 6/24/2013 0:00 48,000 6/24/2013 0:00 0 41,477 52,300 7/8/2013 0:00 31,800 7/22/2013 0:00 57,000 7/22/2013 0:00 124,600 7/22/2013 0:00 27,700 7/22/ 2013 0:00 18,900 7/22/2013 0:00 58,800 7/22/2013 0:00 0 41,512 52,600 8/12/2013 0:00 52,400 8/23/2013 0:00 101,900 8/23/2013 0:00 162,700 8/23/2013 0:00 35,600 8/23/ 2013 0:00 32,200 8/23/2013 0:00 74,200 8/23/2013 0:00 0 Total 393,400 Total 336,600 Total 712,200 Total 1,254,800 Total 301,800 Total 218,400 Total 586,600 Total 8,500

Summary of Base Year Monthly Billing from Reasonably Similar Hotels on Galveston Island

Total Billed Hotel #of Rooms Usage Comfort Suites I 57 218,400 Comfort Inn & Suites 62 336,600 Hospitality Hotel's, Inc. 95 586,600 Hampton Inn & Suites 104 301,800 Four Points 125 393,400 Best Western Beach Front Inn 150 712,200 Holiday Inn Express 178 1,254,800

JohnsonControls, Inc. Initials:_ _ __ _ CustomerInitials: ____ _

~chedule2

Projected Monthly Billed Usage for Location Number 661808 Had the Account Been Billed Correctly

Proposed Total Billed Usage 450,609 Proposed Total Billed Usage 450,609 Proposed Proposed Pro posed Proposed Bill Date Billed Usage %of Total Monthly Monthly Billed Bill Date Billed Usage % of Total Monthly Monthly Billed Billed Usage Usage Billed Usage Usage 9/10/12 26,700 7.93% 35,743 35,743 9/24/12 88,300 15.05% 67,829 67,829 I 10/8/12 33,600 9.98% 44,981 44,981 10/22/12 60,100 10.25% 46,167 46,167 11/12/12 7,200 2.14% 9,639 9,639 11/26/ 12 28,600 4.88% 21,970 21,970 12/27/12 27,900 8.29% 37,350 37,350 12/19/12 38,200 6.51% 29,344 29,344 1/14/13 27,900 8.29% 37,350 37,350 1/24/13 27,500 4.69% 21,125 21,125 2/11/13 16,800 4.99% 22,490 22,490 2/20/13 29,900 5.10% 22,968 22,968 3/11/13 25,400 7.55% 34,003 34,003 3/21/13 51,700 8.81% 39,714 39,714 4/8/13 30,600 9.09% 40,964 40,964 4/22/13 48,000 8.18% 36,872 36,872 1 5/13/13 18,000 5.35% 24,097 24,097 5/23/13 33,300 5.68% 25,580 25,580 6/10/13 38,300 11.38% 51,273 51,273 . 6/24/13 48,000 8.18% 36,872 36,872 7/8/13 31,800 9.45% 42,571 42,571 7/22/13 58,800 10.02% 45,168 45,168 8/12/13 52,400 15.57% 70,148 70,148 I 8/23/13 74,200 12.65% 56,998 56,998 Total 336,600 100.00% 450,609 450,609 I Total 586,600 100.00% 450,609 450,607

JohnsonControls , Inc. Initials:__ _ _ _ CustomerInitials : _ ___ _

Total Billed Usage vs. Total No. of Rooms

180 1400000

170 / 1300000 160 / v . 1200000 150 / I / I 1100000 140 I-'

130 / I 1000000 ... 120 / J -u / 900000 .!::!. t / I ... s 110 I "'Ql 0 > 0 800000 Ql a: 100 I "' ~ 110 0 "' ... Ql 700000 .: ~ 90 - r-- Ql E bO ::;, / / "' 80 :::1"' z 600000 ;; "'C 70 / ~ v ' ~ ~ iii 500000 ;; 60 / / / -- .... ~ 50 / - "'"- ./ 400000 ""' ----~ 40 v ~ 300000 30 -· ..~ ""'---- 200000 20 100000 10 I 0 L - r- 0 Comfort Suites I Comfort Inn & Suites Hospitality Hotel's, Hampton Inn & Four Points Best Western Beach Holiday Inn Express Inc. Suites Front Inn

-+- #of Rooms ~ TotalBilled Usage

JohnsonControl s, Inc. Initials: CustomerInitials: ____ _

Existing Billing System Extract for Location Number 661808

:·"-- ·~:·:-·--- ~------,---·- - -- , Meter , --- --·- TC~~;r------. i : ' locat1on! Cycle 1 ACCT , Rate , : . : Meter Meter Billed : ! Meter 1 Base !

' N ; C d Route' Customer Name Service Address ZIP Service' C d Size ,,· MFR Serial No lnstaiiDate Bii!Date ' Mtr 'I . . . . . ~ Charges 1 1 . . 1 : o. i o e,1 5tatus ' o e d d. d Reg1strat1on j Mu 1t1p 1 1er Usage : : In1 o Mu 1t1p 1 ter 1 1 i .. ---···---· , ' _J.Jp ___ a!_~ _1 --~'!.___!.______; ______------i-______,______i

' 66.1808 ; 48 1 66 CANDLEWOOD SUITES 808 61?! ?T BUILDING 77553 CURRENT Sewer i OlOSEW; 3 9/24/2012 0.00 963 cu ft ' __67,829 "': $121.64 : ACT ! _ 1__ I

!i~?_g_~_:~!~L~~ --~_f'!D,t,_E_~Q.QR_~lJti~i~80_8-~isrsT BliiiO,-NG-+77ss3 ·-~u-RRENi.se~eri oiO~~w: 3 _ _ ___ -t-- ______}Og2/191J~o"'Q_O_,f}ss=-r-~c~ft -_j=- -~~~J~.-!~.!~T~;-~-~?~~~s .. ~-C-~9:1.~.}_--~~ 1 i __I?§.~Q-~_: ___~1!- 6§_ · ~-~-r.J-~~-~_Q9_Q_?_IJ!]l5_! ~08_61~TST Bl,liLQI_~G . 775?3J C_UR~ENT Se:wer__ i OfOS~IoY, 3 _1!(2_~_L?_Q_1_2_9_:Q9_'---!_Q_!_4_l____c;~ _ft__ ;___ ~.~_?_Q_~I __$1__08.4~_-L/'-:0 .. !... _____ L _ __!

1 i GG1_808__'_4B __i G~ _CANDLEWOOD SUITES:808_E)1ST ?!BUILDING 77SS3: CURRENT:Sewer ._ql()SEW: 3 · 12/19/_2012 0:00' 1014 I __ c_uft : _ _ 29,344 ~ $18.99 ! _ACT i _1

!:§~1:~~8_ 4~--~-~~~~-~:-~~Q~EWOQD-Su-ri-Es-. Bas GisT ST s-Uilql~~:77s~3-!CURRENT·s~w-~r_; Q!QS~~~- ~-______· 1/2_4/iQ_ii{i:_Qp_-:-~qi_.t---cl! f~----~-_--:1---~ij,i~?__j~{~~~~~~-~q:~: _--_--1

i_§§.!_~O_B_!_ 4_B__ : §~j_~~-I?L§l/!OD_IJ:_SU_!'f.ES_ B()BG1ST S! BUl!-DI_N§_77SS_3_ ~CURREr.JJ Sewer : 010SEW; __ ~ ·-- __j_ 2f~Q/2_ol_~..Q:QO_ i 1_D._14 :. c;~_ft .... L ____ ! _2_?. •.9.fi.B ..l ...~.1-~-~~? ___: ___ ~_g: --~---~-

:_fi§1BO_B_;__~_B _____§§__:_f_~Q_L~~QQ_I?_ ~!JJ]J~-!-~Q~_GJ§T_SI_BIJI_LO_lNG: 77_SS~ ;_CU~J~ENT_; Se~~'-i D_10S_~W_- 3 _3_/?.1/2_0~~-Q:Q_O__f_f_Q_~-i- -~u_f!___ : i__ ~,7141___ $18.~ __i__~q_-~ _____!__

[_G~BOB;__ _±~_~_G_G_ t;~l)__!,_~l,oVq9_[)_.~!,!!IE~ :_B_()_~_Ei1_~T_S1_BIJ_ILIJ!N_G_J???~_)_Q.J~RENT_j -~e~er· 010~-~'# 3 ...... _4/_2_2/?,.0J?..O.~Q_()__j 1!J_!_'!_; __ --~!.!-~-__!______••.• L.~§,_?.!?._1.___$fJ!~9_.?._: __~Q__-----~~ 1 i _ ·-- 1 1 ! GG1BOB: 4B : GG :CANDLEWOOD SUITES BOBG1ST ST BUILDING: 77SS3 CURRENT'Sewer i 010SEW 3 _5/23/201_3 0:00 .: 1014: cu ft ' _! 25,_580 , $18.9_8 · _ACT ; 1

[~61~~~;~4-B-:---6~-'cANDLEwo-OD-suiTES· BOBG1ST ST BUILDING-! 77SS3: CURRENI;_s~er. 0_!_0~~~---~~_ · f)/_~4/:iQ_!_3~;ci~l_i],O_~~--·_~c-~~ri:-·- ;. _i_~i6.?Jil:=S:ii~i~-~:.:_.Ag~_:! i----

1 l 6G_~BOB, 4B GG _C-'¥'JQLE_Vo!OOR_?_UJ:~ES_-~()§__~}~J'ST_BUILJ?!N~ :_77_SS_~_:C_URR~r-JT:_Sewer : 01_0SEVIJ .. ~ ?(22/?0~~-0~0_0:~Q~~:CL}ft . _,_ j 4_~.~-~-8-~:__ .$1~~~~ ___;___ ~q_ __. ___ j __

; GG1BOB: 4B GG ! CANDLEWOOD SUITES:SOB G1ST ST BUILDING, 775S3: CURRENT'Sewer : 010SEW 3 ; 8/23/2013 0:00 ~1014: cu ft ; SG,99B , $18.9B ACT 1

! -~-~1:?_0_~-)4B !)G__ i C~Dl~--~QOp_Sl!lTE~.:.BOB 1?1ST_ST_BUILO~~-~_77SS_3i.!=l!~R~J'!T_i}!o/_a_te_r ~Q_?O_\oY~T_' -~---:-~~51g~~j_~Q3_tl§~_B_: ?/~/J~Q!i __Q;Q!)~_J!/~~/]O}l__Q:Q_Q_j.f}!i}_ ~ _c_l:!..f..L_ ... i .....1_(!0 ___ _j __ §?.?.2_~- t_$!~.?_,~7_ _ _.1\Q_j______J_____ .

i.§Gl.?OB • 4~... · GG. ! ~-~PL~W09_~S~)T~S~08_G_1STS:I: Blll\-f?ING :_?_7~?_3I_<;_I)_Rfl._~~T-~ '!j_~!~r:Q~Oyo.'~T3 _:_~~~ger:_~_9_~~G-~B_;_?/~&_Q_(l~_o_:_9_Q ~l.Q/?2/2_Q1-_~.9~9Q~.-~8.s __~-- .5~..fL_f____ }-_Q_Q___ ~~,lG7_ , ___$__!~-~~?__ _ _;__.1\Q __ : --~--__ 1 i 1

~G_Ei_1_B_Q_.?._: __4_(! ___ __t?!i~-

1 ! GG1BOB: 4B i GG . CANDLEWOOD SUITES BOBG1ST ST BUILDING, 77SS3: CURRENTiWater OSOWAT! 3 i Badger: B034G3B: 7/3/2008 0:00! 12/19/2012 0:00 J1014 · cu ft ; 100 : 29,344 I $19B.S2 : ACT [ 1 -;. ·---~--·--·------'------~------~----'------'- ··------1-.---' ------·-- --· ----- , ______, ------·------•- ...... --,------,-----.,.------,------

; 6§_!_?08: 4B GG CANDLEWOOD SUITES BOBGlSTST BUILDING_77S53_, CURR~NTy.Jater_ OS_9W~T____3 _____ !_~a~ger: ~0_3_4:.~~~7./?_/2Q_Q_~_O_;Q_Q_: _1/~~/_2_91_~_()_;Q!)j_!_QH: ______~_f! ______!QQ _____: __?_~._~?.?_~_~$_1J_~~?-~- _LACT j _L______j 1 i [ __

i GG1_BOBi 4B · _GG ~CANDLEWOOD SUITES BOBG1STST BUILDING 77SS3 CURRENTI Water OSOWAT 3 I Badger i B()34G3B!7/3/200~_0:00_1 _2/20/2013 0:00 j 1014_~ ____cu _ft. _: _. 100 _:__ 22.9GB i __$_19B._S2 i Ac::T 1 __ 1 I

CU~R_;_Nr_T< -~--~=---=r~-~t!g~~-:~9-~.i~i~:.?J~hQQS --l~~ci:l_---~ ·;---=-~~ :~6is0BT46-'~j~_[ CAND!EWO_Q_D SUIT~S ~BD? GiST ST BUILaiNG 1 77SS3 y.Jat~,OS_Q~~T ti0Q_jj5_ij2Q13O:OQ__j)0i4 c:._ii~=-~~T. -~iQQ-·=[~,714-~_:s_i98.52

i:m:~tt~i~~=~~-c~:1~~~~0,L~~,:~tijJm~~~:~~.:m~i~~~:~i~~~-~::~i~~~~~i:::~l···_t:_!:~i :~1:~j·ii~ii~~i6:~~~{g1~t:-~]&Ji6:~::1~~··==i==~~ _,::i~:m:j3li~tj· ;~f:::::t=~ i..§!>_~_()_~_LiB_t_ji~J_f_~_f!~!!_":Y_QQ_p_~_!!!TES_L~D.I!§_l_?I.~IJ~!!Ll,l;l~N~--l77S~_lftli!!!~J!f_l__y./~!~_r:_J_Q_?_O~~I_j 3 --4~'!dg~ L~Q34G3B,1/]/200[_Q_Q__QJ_§[2~/2013 _Q:()Q__!l-_0)._5_]c:u ft ' 100 I 3G,B72 ~~--~1981i1___"_A__CTR=t=,

!_§_§!BOBL.5!L,_.§!> -,C_!\.!:IDLI __WOOD_SU!T~ i BOB§1~TSJ¥Ul!-QIN_§ I77S5!1 CUI!_REtfT'water ~_f)SQ_'t{ATj - 3_ J (!a~ger_[BO}j~Ji:J/3/20~ Q.OQ. .Jt?:'l:/2_0!~ _9:00 II_!Ql~~ __fU ft __ J __ l._Q!)_I- 45,JG~~_$19B.S2~-~q_~_...!__ -1 1 1 GG1808 I 4B GG CANDLEWOOD SUITES• 808 GlSTST BUILDING: 77S53 fCURRENT Water OSOWATI 3 I Badger' 8034G3B' 7/3/200B 0 00 I B/23/2013 0.00 1014 c:u ft ' 100 5G,998 1 $19B.52 ACT 1

.. L______--~______l______.______...... ! ·- ___ ------~______! ______----· ____I _____ L_~ __ _;_~____ ;.. _~p_'!_.3_1~_l. ___$2!_!'o.so i_~_J _____ .. ...J

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

Benefit Calculations for Location Number 661808

Tier 2 Tier3 Tier4 Calculated Base Tier2 Tier3 Tier4 Total Tier Total Volume Base Charge Volume Volume Volume Total Billed Delta Usage Usage Usage Usage Usage Charge Chare:e Chare:e Charge Revenue 17.82 ' - $ 500 : 67,329 ' $2,410.38 • - $ - - ---$ ------. 6],829_:_~.2,41()38 ·-~_2,.428,>c() ' $ _(>c,306~5§J.

$. __g82_ .500 .. 45,667 ,$1,634.88 ···~· $ 46,167! $ 1,634.88' $ 1,652.70! $ (1,574,02), s 17.82! _5oo: 21,470 s 768.§3, s -~-__ ii.i,O:!s:_:_;,§il,6iis:_ 71l.Gi,i'=$16.7Ji7J, ,_s_ 18,98 ... 5o_o_:_28,~~~$},Q98.9§_J . ··---· ~--____ ,_ .. .S...... : ...... :.... 2.9,,4.:< •.~.. 1.Q98.~6i-L!-.117.94: s l1,o98.95Jl

!t·. ~~;: ·-1i~t-t~:~t.t.!~1.~L. ···---....·, ~- .·::..=i~~~~:t~~~{ji:~~tct_i.~l;ittti.t~:~.ttt;i~!!~i1 '$ 18.98 ' soo i 36,372 $1,385.77 i ' $ .. . ' $ . 36,872 ' $ 1,385.77 ' $ 1,404.75 : $ (1,385.77Jj

• s 1B.98 1 soo' 2s)l8o $ · 955,ss : s ' · , s -- 25,58·o-- f 955:55_:_$ ___ 974.53Ts- i95s:ssJ'

i~L1~98 ?Q.o: 3~.312:s1:38sj7:. :{: -: ;::: - ~s_- - • 36.!!?2 s.!.3is,ii::s.:!:~P~~::Til:.~iS..m1 $.. 18,98_[ . soo.: 44,§68: $1,701.85_: ; $ ' $ . ... 45,1§8 ,_$ l,7Q!,8~: $_1,720.83! $(1,701.85)1 • s 18.98. 5oo: 56.498: $2,152.57- , s • s 56,998. s 2,152.57 • s 2,in.ss·:-s i2.is2.57Jl

, s 188,17 , 5,8oo 3,8oo, , s 116.66 ; 46,oo() : $1,5o4,2.Qj .12,22.9 ,_s4o6,0.0.,_67&29_,_t 2,o26,8s. 1.. s .... 2.~!'Ul3_1_LG2,()~6"86J.l

$ 188.17 ! 5,800 ' 3,8QO :.~116.6~ :3_6,567 $1,~5.74j. - :.$ - i .46,1§.7..< $_ 1,31.2,4Q_!_$_1,500.57.. i $.(1,3!2.~0)! . s. 188p s,8ooj . 3,8oo · s 116 ..66 .• 12,370 s 404,~9L ,_s_ .... ,>1,97()_1_$__ 521.16.! s 7o~.>~LL_141l1"1JlJ! . $ . 198.52 :5,800! 3,800 : $_ 123.12.. 1.9,744 $ .. 681.17 ! • ·. $ l 29,344 .. ~.804.29c $. !,002,~1[.~(80~,2~)j $ 198.52 5,800! 3,800 . $ 123.12' 11,525 i $ 397.61' ; $ : 21,125 $ 520.73,,$ ... 119.25' $ (520.73)!

·. $ 198.52 : S,800 • 3,800 _$ 123.i2 J 13.~6Jl; ~. 461,20] ... : ..s :_ . . ;. 22,~8_L s8ii2_,{ _!8,?~s4Tl~ii.it!

1 $ 198.52 : 5,_800 3_,_800 : $ 123.12 30,114 i $_1,038.93,_ i !_ $ 39,714 $__ 1,162.05 : $ 1,360.57 _i. $ (1,~62.0S)j

1 :;_;;t~~ ..•..~:~f~-· -U~~:rfi~iiL ii:f~:bt.;~tJi£: -:.-,f-~:•i--i~:~;_6~t 1~1~~~}.!·~~~'R+IIli~i~~ll [.$ _1_~852•-~·~go_:__ 3,8oo_j $_ _!2~,12_: .21 ,2_7•. , .L~~1l.s..j __ : ·-i $_ ... :.. .. 1.... .3.~,8_7_2,_$_!,Q64.Qo_:_s_ _!,_2g.S1.J.LI!,O.G_4:.00JI' . $ 198.52. 5,800 I 3,800 . $ 123.12 35,568 I $1,227.10 ' - i $ . I 45,168' $ 1,350.22 1..$...!.548.74. $ (1,350._22), ~------·--·- --~---".... ------~----.----··-···-·-"·-··j------·------j-·-····------~------~---..... ------I . $ 198.52' 5,800. 3,800 '$ 123.12 ' 46,000 $1,587.00. 1,398 '$ 48.93 ' 56,998. $ 1,759.05 ' $ 1,957.57 • $ (1.759.05)•

• $2,575.47 ' . -- . :_!101,214 $2_9,473.7)' ;$3_2,049.24_~$l29,178~44)j

7. Large Meter Reading & Billing System Issue Resolution A thorough review of the billing system extract provided by the City to Johnson Controls revealed thirteen (13) large meter accounts in which the base year billed usage was significantly less than in any year from 2009 to the present. In some months, there was no billed usage at these active services during the base year. Each of these services clearly indicated a problem with meter accuracy, the meter reading process, or with the billing system. We reviewed these findings with the Galveston staff, and they agreed that our findings and billable usage projections were reasonable based upon historical data for the account. To be conservative, Johnson Controls is only claiming benefit from ten (1 O) of the accounts in question.

JohnsonControls, Inc. Initials: ____ _ CustomerInitials: ____ _

a. Account No. 062660, UTMB, 6" meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2010 101 ,300 121,000 81,600 86,800 123,400 145,500 168,400 212,700 188,200 186,300 13,200 8,500 1,436,900 2011 17,500 9,400 71,200 52,200 11,400 582,300 582,900 65,700 38,900 32,400 68,200 49,600 1,581,700 2012 65,700 33,600 50,700 34,900 27,000 31,200 65,600 7,700 7,500 42,700 23,500 43,300 433,400 2013 43,900 33,600 20,400 7,800 31,600 32,000 55,000 8,500 7,500 56,800 43,700 0 340,800 2014 0 32,200 20,500 Average 42,367 33,133 20,450 43,550 29,300 31,600 60,300 8,100 7,500 43,967 37,150 46,450 Diff. (1 ,533) (467) 50 35,750 (2,300) (400) 5,300 (400) 0 1,267 13,650 3,150 % Diff -3.62% -1.41% 0.24% 82.09% -7.85% -1.27% 8.79% -4.94% 0.00% 2.88% 36.74% 6.78%

9/1 0 - 8/11 Billed Usage 1,788,800 9/11 - 8/12 Billed Usage 505,500 71.74% Reduction, 2012::2011 9/12-8/13 Billed Usage (Base Year) 349,800 30.80% Reduction, 2013::2012 80.44% Reduction, 2013::2011

JohnsonControls , Inc. Initials:__ __ _ CustomerIni tials: ___ _ _

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 38,900 42,700 37,150 43,300 2013 43,900 33,600 20,400 43,550 31,600 32,000 55,000 65,700

487,800 Proposed total billed usage in base year 138,000 Proposed total increase in billed usage in base year 39.45% % increase in billed usage over base year

80000 T I I T I I T 70000

I \ .~I 60000 \ i I i I I I 1 -.,~e-ll\ I I I 1 I 1 1 1 1 ! I 1 50000 ~ r--\~1 I J I I 1 I I 1- 40000 ~1 - v I t--. ~f-h~ ~I '"" I I " 1- 30000 ~ I I " I ~' ' 1 ~ I ~v 11 I 20000 ! 1 1 I I r- '" F- 1

10000 1 , 1 J J J ] l J J ~~II I ! -,__c-~ r=(1'\. sl/, I b I I I I J I 1 1 _If 1 ~r= I I I I 1 t 0 00 \!) I-" I-" I-" I-" N w .p. V1 0'> -...! 00 \!) I-" I-" I-" I-" N w .p. V1 0'> -...! 00 \!) I-" I-" I-" I-" N ...... 0 I-" N ...... 0 I-" N ...... 0 I-" N 00 00 00 00 ...... 00 00 00 00 00 00 00 00 00 ...... 00 00 00 00 00 00 00 00 00 ...... 00 00 00 ...... 00 00 00 ...... 00 00 00 N N N N ...... N N N N N N N N N ...... N N N N N N N N N ...... 0 0 0 0 0 0 0 N N N 0 0 0 0 0 0 0 0 0 N N N 0 0 0 0 N N N 0 0 I-" I-" I-" 0 0 0 I-" I-" I-" I-" 0 0 0 I-" I-" I-" I-" I-" I-" I-" I-" I-" 0 0 0 I-" I-" I-" I-" I-" I-" .p. .p. I-" I-" I-" I-" I-" N N N N N N N N N I-" I-" I-" w w w w w w w w w I-" I-" I-" I-" I-" I-" N N N w w w

JohnsonControls, Inc. Initials:_ ___ _ Customer Initials: ____ _

Existing Billing System Extract for Location Number 062660

Meter Curr Location Cycle Customer Service ACCT Rate Meter Billed Meter Base Route Service Size Bill Date Mtr Charges No Code Name Address Status Code Registration Usage Info Multiplier Updated Read 4I5 9/10/20I2 4645 62660 IB 6 UTMB UNIVERSITY CURRENT Sewer 010SEW 6 cu ft 38,900 268.42 ACTACT BLVD 0:00 94770 415 Il/I2/20I2 4646 62660 IB 6 UTMB UNIVERSITY CURRENT Sewer 010SEW 6 cu ft 37, I 50 890.37 ACT ACT BLVD 0:00 9543I 4I5 4/8/20I3 4662 62660 IB 6 UTMB UNIVERSITY CURRENT Sewer 010SEW 6 cu ft 43,550 297.II ACT ACT 0:00 96905 BLVD 4I5 8/I2/2013 4684 62660 IB 6 UTMB UNIVERSITY CURRENT Sewer 010SEW 6 cu ft 65,700 323.78 ACT ACT 0:00 98I54 BLVD 4I5 9/10/20I2 4645 62660 1B 6 UTMB UNIVERSITY CURRENT Water 070WAT 6 cu ft 38,900 752.63 ACT ACT 0:00 94770 BLVD 4I5 ll/I2/20I2 4646 62660 IB 6 UTMB UNIVERSITY CURRENT Water 070WAT 6 cu ft 37,I50 869.28 ACT ACT 0:00 9543I BLVD 4I5 4/8/20I3 4662 62660 IB 6 UTMB UNIVERSITY CURRENT Water 070WAT 6 cu ft 43,550 794.02 ACT ACT 0:00 96905 BLVD 4I5 8/I2/2013 4684 62660 IB 6 UTMB UNIVERSITY CURRENT Water 070WAT 6 cu ft 65,700 794.02 ACT ACT 0:00 98I54 BLVD 370,600 $ 4,989.63

JohnsonControls, Inc. Initials: ____ _ CustomerInitials: ____ _

Benefit Calculations for Location Number 062660

--- Tier2 Tier 3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Chargl! Revenue $ 17.82 500 38,400 $ 1,374.72 - $ - $ - 38,900 $ 1,374.72 $ 1,392.54 $ (1,124.12) $ 18.98 500 36,650 $ 1,396.37 $ - - $ - 37,150 $ 1,396.37 $ 1,415.35 $ (524.98) 1- $ 18.98 500 43,050 $ 1,640.21 - $ - $ - 43,550 $ 1,640.21 $ 1,659.19 $ (1 ,362.08) $ 18.98 500 65,200 $ 2,484.12 - $ -- $ - 65,700 $ 2,484.12 $ 2,503. 10 $ (2, 179.32} $ 752.63 23,200 3,800 $ 116.66 11,900 $ 389. 13 - $ - 38,900 $ 505.79 $ 1,258.42 $ (505.79) $ 794.02 23,200 3,800 $ 123.12 10,150 $ 350. 18 $ - ' 37,150 $ 473.30 $ 1,267.32 $ (398.04) $ 794.02 23,200 3,800 $ 123.12 16,550 $ 570.98 - $ - 43,550 $ 694. 10 $ 1,488.12 $ (694. 10) $ 794.02 23,200 3,800 $ 123.12 38,700 $ 1,335.15 - $ - 65,700 $ 1,458.27 $ 2,252.29 $ (1,458.27} $3,209.45 370,600 $ 10,026.86 $ 13,236.31 $ (8,246.68)

b. Account No. 122450, RJ Meridian Care of Galveston, LLC, 4" meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 25, 100 22,400 30,200 27,100 47,100 74,800 81,900 99,100 27,000 434,700 201 1 57,500 57,400 49,800 43,700 33,600 39,300 94,000 79,000 86,000 64,700 64,800 64,300 734,100 2012 57,100 38,700 41,700 33,700 51,000 58,200 60,000 70,200 72,700 64,400 75,800 58,800 682,300 2013 135,000 6,300 5,300 6,100 8,700 88,100 88,300 33,200 371,000 2014 Average • 46,567 • 39,50.0 . 40,567 . 34,833 . 43,900 61,867 80,767 . 74,600 77,833 70,333 79,900 61,550 Diff. (88,433) 33,200 35,267 28,733 35,200 (26,233) (7,533) 41,400 5, 133 5,933 4,100 2,750 .... % Diff -189.91 % 84.05% 86.94% 82.49% 80.18% -42.40% -9.33% 55.50% 6.60% 8.44% 5.13% 4.47%

Craig C Hannah: Hghest readi1g i1 history.

~ 9/10 - 8/ 11 Billed Usage 737,100 ~ 9/ 11 - 8/12 Billed Usage 690,400 ~ 9/12-8/13 Billed Usage (Base Year) 642,700

JohnsonControls , Inc. Initials: ____ _ CustomerInitials : ____ _

~chedule2

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 72,700 64,400 75,800 58,800 2013 135,000 6,300 5,300 6,100 8,700 88,100 88,300 74,600

684,100 Proposed total billed usage in base year 41,400 Proposed total increase in billed usage in base year 6.44% %in crease in billed usage over base year

Billing System Extract for Account No. 122450

Meter Current Location Cycle Service ACCT Meter Meter Billed Base Route Customer name Service Rate Code Size M FR Serial No Bill Date Meter Charges No Code Address Status Registration Multilllicr Usage Multiplier Updated Read

IU MERIDIAN CARE IWo 122450 3B 12 2208 AVEQ CURRENT Se\Ycr OIOSEW 8/2612013 0:00 cu fl 74600 1264.85 OF GALVESTON LLC 9999 RJ MERIDIAN CARE 12470 122450 3B 12 2208 AVE Q CURRENT Water 060WAT Badger 04 178506H 8/2612013 0:00 cu ft 100 74600 1134.25 OF GALVESTON LLC 9999 149,200 $ 2,399.10

Benefit Calculations for Account No. 122450

Tier 2 Tier 3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Delta Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Charge Usage Charge Usage Charge Billed vs Calc . Cll_arge Charge Revenue $ 18.98 500 74,100 $ 2,823.21 $ $ 74,600 $ 2,823.21 $ 2,842. 19 $ (1 ,577.34) $ 397.03 11,600 3,800 $ 123.12 46,000 $ 1,587.00 13,200 $ 462.00 74,600 $ 2,172.12 $ 2,569.15 $ (1 ,434.90) $ 416.01 149,200 4,995 $ 5,411.34 {3,012)

JohnsonControls , Inc. Initials: ____ _ Customer Initials: ____ _

Schedule 2

c. Account No. 595800, Best Western Beachfront Inn, 6" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 46,100 71,500 60,000 70,200 77,600 77,100 107,200 128,400 114,200 66,900 45,100 75,100 939,400 2011 44,200 46,100 53,700 97, 100 80,100 61,400 101,600 110,900 121,500 78,400 64,400 57,400 916,800 2012 68,500 38,900 55,700 85,700 67,500 83,600 96,800 86,800 103,000 62,400 57,700 41 ,200 847,800 ' 2013 40,900 59,800 6,700 ~61 ,600 46,200 " 73,800 57,000 e1,01 ,900 111,800 77,800 67,300 42,600 . 747,400 2014 48,000 41,300 ' 1\ ' Average 49,540 51,520 56,467 78,6q_o y 5,067 73,975 101,867 113~~3112,625 71,375 58,625 54,075

DifL 8,640 (8,280) 49,767 17,050 \ ~8,867 175 \ 44,867 11,833 9,625 8,975 925 12,875 ~ % Diff 17.44% -16.07% 88.13% 21.68% '\ 8.45% 0.24% \"44.04% 10.40%\ 8.55% 12.57% 1.58% 23.81%

~ Craig C Hannah: ICraig C Hannah: I ICraig C Hannah: Craig C Craig C Sight~underbiled. Underbilled. Underbiled. Hannah: t ~ Hannah: Underbilled. - Underbilled. 9/10 - 8/11 Billed Usage 896,400 . t 9/11- 8/12 Billed Usage ,. 905,200 9/12 - 8/13 Billed Usage (Base Year) ,. 712,200

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 103,000 62,400 57JOO 54,075 2013 40,900 59,800 56,467 78,650 75,067 73,800 101,867 101,900

865,625 Proposed total billed usage in base year 153,425 Proposed total increase in billed usage in base year 21.54% % increase in billed usage over base year

JohnsonControls, Inc. Initials:__ __ _ Customer Initials: _ ___ _

Billing System Extract for 595800

Meter Current Location Cycle Seniei! ACCT Rate Meter Meter Billed B~ Route Customer Name Service Size MFR Serial No Bill Date Meter Charges No Codo Address Status Cod• Registration Multiplier Usage Multiplier Updated Read

BEST WES1ERN 5914 11312013 139 595800 59 BEACHFRONT SEAWALL CURRENT Sewer OIOSEW 6 oon 54075 1569.65 0:00 81694 '" INN BLVD BEST WESJERN 5914 3121/2013 140 595800 4B 59 BEACHFRONT SEAWALL CURRENT Sewer OIOSEW 6 oon 56467 255.2 0:00 82767 INN BLVD BEST WESTERN 5914 412212013 140 595800 59 BEACHFRONT SEAWALL CURRENT Sewer OIOSEW 6 cu ft 78650 2346.89 0:00 83383 '" INN BLVD BEST WESlERN 5914 5/2312013 141 595800 59 BEACHFRONT SEAWALL CURRENT Sewer OIOSEW 6 75067 1760.15 0:00 83844 '" n '" INN BLVD BEST WESTERN 5914 7/22/2013 14I 595800 4B BEACHFRONT SEAWALL CURRENT Sewer OIOSEW 6 oon 101867 2171.63 59 0:00 85152 INN BLVD BEST WESTERN 5914 1/312013 139 SEAWALL CURRENT Water 070WAT 6 Badger 05013414H 100 54075 1407.04 595HOO 59 BEACHFRONT 0:00 81694 con '" INN BLVD BEST WESTERN 5914 3!2112013 140 CURRENT Water 070WAT 6 Badger 05013414H oon 100 56467 794.02 595800 4B 59 BEACHFRONT SEAWALL 0:00 82767 INN BLVD BEST WESTERN 5914 412212013 140 4B BEACH FRONT SEAWALL CURRENT Water 070WAT 6 Badger 05013414H cu ft 100 78650 2110.84 595800 59 0:00 83383 INN BLVD BE."iTWESTERN 5914 5!23/2013 14I 070WAT Badger 05013414H con 100 75067 1579.54 595800 4B 59 BEACH FRONT SEAWALL CURRENT Water 6 0:00 83844 INN BLVD BEST WESTERN 5914 7/2212013 14I Water 070WAT 6 Badger 05013414H con IOO 101867 1952.14 595800 4B 59 BEACHFRONT SEAWALL CURRENT 0:00 85152 INN BLVD 732,252 $ 15,947.10

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

Benefit Calculations for Account No. 595800

$ 18.98 500 . 55,967 $ 2,132.34 . _$ $ ... 5§,4(37JL_g,~1_32,34::!.2,151.32 ! $ _ (1_,896,12), $ 18.98 500 78,150- 1 2,977.52 $ l 7B,6(50,_$_2,_9_77_.(5g c.$ 2,99(3,5()i .l _(64_9c61Jj . __lj; $ 18.98 • -~ 500 • 74,567 2,841.00: ~ !~~ . $ ~--1B~98• 500. 101,367 $ 3,862.08 : $ $ ·· 1~U~}il ;:~i~:~~:l ;:~~~:8~ il ~~:~b~~~~l i $ 794.02 . 23,200 3,800 $ 123.12 . 27,075 $ 934.09 ' !51,Q7!5~iJ,Q57,g1J.~$ ~_1,fl.51.23 ·l .. __ ll>.. LL_~(444.19JI :-$~794:62 3,~00 23,2()Q $ _123.12 . 29,467 _s;!,016,131. - s;,, _ ~--_L ___!5(3.467_!_$~1 ,1_39.73_Lli>J ,_933.75 ~'....L

~~!1,065.00~! ... !~2.~52_j J;~2M6J •.B9 L$_2§,526.89 _i_$_(1.Q,f1.7_!1,7:!1)I

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

d. Account No. 181642, Moody National Bank, 4" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep ex t Nov Dec Total 2010 31 ,200 54,900 37,300 24,500 50,900 41'100 44,100 47,400 43,100 47,100 33,000 27,500 482,100 2011 22,500 22,600 28,300 19,400 28,300 68,100 44,100 41,300 47,400 38,600 30,000 24,900 415,500 2012 22,900 34,500 89,700 27,300 23,300 34,200 39,400 44,900 44,700 34,200 35,700 33,500 464,300 2013 31,400 22,200 23,300 20,500 29,200 42,100 6,300 31,600 29,800 31,900 54,800 6,400 329,500 2014 32,600 47,100 Average 28,120 36,260 29,633 22,925 . 26,933 39,133 . 42,533 . 44,533 . 45,067 . 37,950 . 32,900 . 28,633 Diff. to Base (3,280) 14,060 6,333 2,425 (2,267) (2,967) 36,233 12,933 367 3,750 (2,800) (4, 867) Year % Diff. to Base -11.66% 38.78% 21.37% 10.58% -8.42% -7.58% 85.19% 29.04% 0.81 % 9.88% -8.51 % -17.00% Year '

9/1 o- 8/11 Bi lled Usage r' 425,300 9/11 - 8/12 Billed Usage r' 457,100 9/12 - 8/13 Billed Usage (Base Year) r' 354,700

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul AuQ Sep O:;t Nov Dec 2012 44,700 34,200 35,700 33,500 2013 31,400 36,260 29,633 20,500 29,200 42,100 42,533 44,533

424,260 Proposed total billed usage in base year 69,560 Proposed total increase in billed usage in base year 19.61% % increase in billed usage over base year

Billing System Extract for 181642

JohnsonC ontrols, Inc. Initials: ____ _ CustomerIniti als: ____ _

Meter Current Location Cycle Customer Service ACCT Meter Meter Billed Meter Route Service Size MFR Serial No Bill Date Meter Charges No Code N•~ Address Status Registration Multiplier Usage Info Multiplier·~ Coo•""" Updated Read MOODY 2/20/2013 2210 181642 3B 18 NATIONAL 2310AVEE CURRENT Sewer OIOSEW 4 36260 845.75 ACI'ACT BANK 0:00 8437 '"" MOODY 3/2112013 2223 181642 30 18 NATIONAL 23lOAVEE CURRENT Sewer OIOSEW 4 29633 887.66 ACfACf 0:00 8657 BANK '"" MOODY 7/2212013 2316 181642 3B 18 NATIONAL 2310AVEE CURRENT Sewer 010SEW 4 cu ft 42533 239.96 ACfACf 0:00 9545 BANK MOODY 812612013 2337 181642 30 18 NATIONAL 2310AVEE CURRENT Sew~r 010SEW 4 eu Ji 44533 1203.89 ACI'AL'T 9840 BANK 0:00 MOODY 212012013 2210 181642 3B 18 NATIONAL 2310AVEE CURRENT Water 060WAT 4 Badger 05012268H cu 1\ 100 36260 754.75 ACfACf 0:00 8437 BANK MOODY 312112013 2223 181642 30 18 NATIONAL 2310AVEE CURRENT Water 060WAT 4 Badger 05012268H cu 1\ 100 29633 792.7 ACfACf 0:00 8657 BANK MOODY 7/2212013 2316 2310AVEE CURRENT Water 060WAT 4 Badger 05012268H 100 42533 397.D3 ACfACf 181642 3B 18 NATIONAL 0:00 9545 BANK '"" MOODY 8n6/2013 2337 2310 AVE E CURRENT Water 060WAT 4 Badger 05012268H cu ft 100 44533 1079.05 ACfACf 181642 3B 18 NATIONAL 0:00 9840 BANK 305,918 • 6,200.79 Benefit Calculations for Account No. 181642

Tier2 Tier3 Calculated Base Tier2 Total Tier Total Volume Delta Base Usage Volume Tier3 Usage Volume Tier4 usage ·Tier 4 Volume Total Billed Charge Usage Charge Usage Charge Billed vs Calc I Charge Charge Revenue

I i i $ - · 36,260 : $ 1 ,362A6 i $ 1,381.44 ! $ (535.69) l $ 18.98 ' 500 ! 35,760 $ 1,362A6 $ -- -- ____ , ------1------;--~------.... _, li ji98_+~_ ~ ~~5o()' 29,133! $ 1,109.97 .$ $__ , __ ?!J,633_i.! _!,!Q~._sz_-~L 1_.1_28,9_~.!_ __J?41:_2_9)j

~ 9,~!1?~!!!U_~_JJ,o59.!14_i_~_J>l:,B59.1!;)j i__$__1,§~Q4 __L_ L_aoS,!IJB :

JohnsonControls, Inc. Initials:____ _ CustomerInitials.:· ____ _

e. Account No. 191850, Waverly Holding Co., 3" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 16,000 16,800 16,900 13,400 22,300 35,600 44,000 35,400 28,100 23,500 25,500 277,500 2011 16,400 15,400 18,600 11,400 7,700 20,800 40,900 30,000 39,500 30,600 29,400 15,200 275,900 2012 11,700 8,700 7,700 20,100 20,300 22,800 22,900 72,800 4,100 22,300 19,300 19,400 252,100 2013 14,400 3,700 8,100 8,300 8,200 71,300 "· 25,400 25,500 17,100 55,000 14,600 14,300 265,900 2014 22,800 19,100 Average 16,325 16,833 17,700 16,133 12,400 21,967 31,200, 33,167 37,450 27,000 21,700 18,600 Diff. to Base 1,925 13,133 9,600 7,833 4,200 (49,333) 5,800 7,667 33,350 4,700 2,400 (800) Year % Diff. to ~

Base 11.79% 78.02% 54.24% 48.55% 33.87% -224.58% 18.59% 23.12% 89.05% 17.41% ~1.06% -4.30% Year ----~--. -- - Craig C Hannah: Craig C Hannah: 9/1 o- 8/11 Bi lled Usage ,. 273,700 Assume estimated readings in Feb, Assume Sept. is an estimated 9/11 - 8/12 Billed Usage ,. 301,700 Mar, Apr, and May since June is reading since Oct. is 28,000 9/12 - 8/13 Billed Usage (Base Year) ,. 230,000 50,000 CF higher than usual. CF higher than usual.

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul AuQ Sep Oct Nov Dec 2012 37,450 22,300 19,300 19,400 2013 14,400 3,700 8,100 8,300 8,200 71,300 25,400 33,167

271,017 Proposed total billed usage in base year 41,017 Proposed total increase in billed usage in base year 17.83% % increase in billed usage over base year

JohnsonControls , Inc. Initials: ____ _ Customer Initials: __ __ _

Billing System Extract for Account No. 191850

Meter Current Location Cycle Customer Service ACCT Rate Meter Meter Billed Meter Route Service Size MFR Serial No Bill Date Meter Charges No. Code No~ Address Status Code Registration Multiplier Usage Info Multiplier Updated Read ·~' WAVERLY 2200 9/24/2012 4020 191850 4A 19 HOLDING CURRENT Sewer OIOSEW 3 37450 146.7 ACTACT co AVED 0:00 201 '"" WAVERLY 2200 8126/2013 5119 191850 4A 19 HOLDING CURRENT Sewer OIOSEW 3 33167 971.48 ACTACf co AVED 0:00 1361 '"" WAVERLY 2200 9/2412012 4020 191850 4A 19 HOLDING CURRENT Water OSOWAT 3 Badger 05009393H cu ft 100 37450 188.17 ACTACT co AVED 0:00 201 WAVERLY 2200 8/2612013 5119 191850 4A 19 HOLDING CURRENT Water OSOWAT 3 !Jadgcr 05009393H 100 33167 870.19 ACTACT co AVED 0:00 1361 '"" 141,234 $ 2,176.54

Benefit Calculations for Account No. 191850

Tier2 Tier3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Charge Revenue ' --- n I$ $ I$ ( 1_,1f):3,!J.?) i 1 $ 17.82 500 36,950 $ 1,322.81 $ l 37,450-f---L322,B1 , _ . _1,£4:0.§.3, ___ 1 -$ 18.98 500 32,667 $ 1,244.61 $ $ 33,167 i $ 1,244.61 : $ 1,263.59: $ (292.11)! :_ _$_ 1!)8, 17 5,800 3,800 j)__ 116.66 27,850 I $ 910.70 $ - 37,1§0_j_$ .1.0~7.36_$__1,215~:3~$ _ _(1_,927,:36)' ! I $ 198.52 5,800 3.800 $ 123.12 23,567 -$ 813.06 $ 33,167' $ 936.18' $ 1,134.70: $ (264.51); il423.49 !41,23~_L$_4,5~().!16_.:_L_.1,9§<1,~i_l_(2.,777.!!.1)j

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

f. Account No. 192310, MBP Corp, 6" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 19,800 20,500 10,500 11,300 62, 100 2011 10,000 2,000 3,000 3,000 18,700 14,200 14,200 21,100 24,400 20,500 13,800 13,800 158,700 2012 7,900 7, 100 4,000 6,800 6,900 16,100 17,500 9, 100 21,800 18,800 15,800 14,900 146,700 2013 14,900 4,300 1,900 5,800 4,500 4,800 17,100 6,300 21,800 26,300 29,600 0 137,300 2014 12,200 14,900 Average 11,250 7,075 2,967 5,200 10,033 11,700 16,267 12,167 21,950 21,525 17,425 13,333 Diff. to Base (3,650) 2,775 1,067 (600) 5,533 6,900 (833) 5,867 150 2,725 1,625 (1,5 67) Year % Diff. to -32.44% 39.22% 35.96% -11 .54% 55.15% 58.97% -5.12% 48.22% 0.68% 12.66% 9.33% -11.75% Base Year , 9/10 - 8/11 Bi lled Usage , 148,300 9/11 - 8/12 Bi lled Usage , 147,900 9/12 - 8/ 13 Billed Usage (Base Year) 130,900

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 21,950 18,800 15,800 14,900 201 3 14,900 7,075 2,967----- 5,800 4,500 11,700 17,100 12,167

147,658 Proposed total billed usage in base year 16,758 Proposed total increase in billed usage in base year 12.80% % increase in billed usage over base year

JohnsonControls, Inc. Initials:____ _ CustomerInitials : ____ _

Billing System Extract for Account No. 192310

Cycl Meter Current Locatio Rout Custome Service ACCT Rate Meter Meter Meter Billed e Service Size MFR Serial No Bi ll Date Meter Charges Meter Base n No. e rnam e Address Status Code Location Registration Multiplier Code Updated Read Usage In fo Mulli(Jiier MBI' 1/2412013 147 192310 4A 19 2209 AVE ll CURRENT Sewer OIOSEW 6 cu fl 7075 153.86 CORP 0:00 13369 ACT ACT 192310 MBI' 2/20/2013 147 4A 19 2209 AVE IJ CURRENT Sewer OIOSEW 6 cu ft 2967 67.94 ACT CORP 0:00 13388 ACT MllP 512312013 147 192310 4A 19 2209 AVE U CURRENT Sewer OIOSEW 6 cu ft 11700 171.76 CORP 0:00 13539 ACTACT MUP 7/22/2013 153 192310 4A 19 2209 AVE U CURRENT Sewer OIOSEW 6 cu ft 12167 239.96 CORP 0:00 13767 ACTAC T IO FJ'WO F Mill' 1124120 13 147 192310 4A 19 2209 AVE U CURRENT Water 070\VAT 6 Badger 05!113390H SECT OF cu ft 1 7075 CORP 0:00 13369 00 794.02 ACTAC...'T BLDG. IO FTWOF MIJP 2/20120 13 147 192310 4A 19 2209 AVE U CURRENT \Vater 070\VAT 6 Uadgcr 05013390H SECT OF cu 100 2967 794.02 ACT CORP 0:00 13388 n ACT BLDG. Mill' IOFJ'WOF 192310 4A 19 2209 AVE ll 5/2312013 147 CORP CURRENT Water 070WAT 6 Badger 05013390H SECT OF cu n 100 11700 794.02 ACTACT BLDG. 0:00 13539 10 FJ'W OF MIJP 7/22/2013 153 192310 4A 19 2209 AVE U CURRENT Wat 070\VAT 6 Badger CORP er 050 133901·1 SECT OF cu n 100 12 167 794.02 ACTACT III.DG. 0:00 13767 67,8 18 $ 3,809.60

Benefit Calculations for Account No. 192310

Tier 2 Tier3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Charge Revenue $ 18.98 500 6,575 $ 250.51 - $ - - $ - 7,075 $ 250.51 $ 269.49 $ (115.63) $ 18.98 500 2,467 $ 93.99 - $ - - $ - 2,967 $ 93.99 $ 112.97 $ (45.03) $ 18.98 500 11,200 $ 426.72 - $ - - $ - 11,700 $ 426.72 $ 445.70 $ (273.94) ~ $ 18.98 500 11,667 $ 444.51 - $ - $ - 12,167 $ 444.51 $ 463.49 $ {223.53} $ 794.02 7,075 - $ - - $ - - $ - 7,075 $ - $ 794.02 $ $ 794.02 2,967 - $ - $ - - $ - 2,967 $ - $ 794.02 $ $ 794.02 11,700 - $ - $ ,. - $ - 11,700 $ - $ 794.02 $ ' $ 794.02 12,167 - $ - - $ - $ - 12,167 $ - $ 794.02 $ $3,252.00 67,818 $ 1,215.73 $ 4,467.73 $ (658.13)

JohnsonControls , Inc. Initials: ____ _ CustomerInitials: ___ _ _

g. Account No. 630242, UTMB, 3" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 63,900 72,900 55,200 41,000 233,000 2011 51' 100 49,200 32,300 52,000 54,800 57,600 81,400 106,500 119,200 111,500 93,200 39,200 848,000

2012 54,300 40,300 45,900 41,500 45,900 59,800 62,000 70,400 89,300 89,500 54,300 61,000 714,200 I 2013 28,500 37,600 15,700 37,500 29,200 44,000 56,000 43,400 66,700 79,300 17,100 37,400 492,400 2014 20,300 20,500 31,800 Average 38,550 36,900 36,667 43,667 50,350 53,800 66,467 73,433 84,775 88,300 67,567 44,650 Diff. to Base 10,050 (700) 20,967 6,167 21 '150 9,800 10,467 30,033 (4,525) (1,200) 13,267 (16,350) Year % Diff. to Base 26.07% -1 .90% 57.18% 14.12% 42.01% 18.22% 15.75% 40.90% -5.34% -1 .36% 19.63% -36.62% Year ~~-~

9/10- 10/ 11 Billed Usage " 717,900 783,200 209.10% Increase, 2012::201 1 9/11 - 10/12 Billed Usage ",. 9/12- 10/ 13 Billed Usage (Base Year) 586,000 25. 18% Reduction, 2013::2012 18.37% Reduction, 2013::2011

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 89,300 89,500 54,300 61,000 2013 38,550 37,600 36,667 37,500 50,350 44,000 56,000 73,433

668,200 Proposed total billed usage in base year 82,200 Proposed total increase in billed usage in base year 14.03% %increase in billed usage over base year

JohnsonControls , Inc. Initials: ____ _ Customer Initials: ___ _ _

Billing System Extract for Account No. 630242

Meter Current Location Cycle Customer Service ACCT Rate Meter Meter Billed Meter Route Service Size MFR Serial No Bill Date Meter Charges No. Code Name Address Status Code Registration Multiplier Usage Inro Multiplier Updated Read ·~' 1902 1/1412013 12466 630242 lA 89 UTMIJ CURRENT Sewer OIOSEW 3 cu ft 38550 1085.78 ACJ'ACT AVEA 0:00 3806 1902 311112013 12539 630242 lA 89 UTMll CURRENT Sewer OIOSEW 3 cu [t 36667 598.1 ACT ACT AVEA 0:00 4266 1902 5/1312013 12691 630242 lA 89 UTMB CURRENT Sewer OIOSEW 3 50350 1112.45 ACTACl' AVEA 0:00 4781 1902 8f1212013 13000 '"" 630242 lA 89 UTMll CURRENT Sewer OIOSEW 3 cu ft 73433 1653.47 ACT ACT AVEA 0:00 5906 1902 1/14/2013 12466 630242 lA 89 UTMB CURRENT Water OSOWAT 3 Badger 05009403H 100 38550 973.69 A(."TACT AVEA 0:00 3806 1902 3/1112013 12539 '"" 630242 lA 89 UTMB CURRENT Water 050WAT 3 Badger 05009403H 100 36667 532.09 ACfACf AVEA 0:00 4266 1902 5113/2013 12691 '"" 630242 lA 89 UTMB CURRENT Water 050WAT 3 Badger 05009403H 100 50350 997.84 ACfACf AVEA 0:00 4781 1902 8112/2013 13000 '"" 630242 lA 89 UTMB CURRENT Water 050WAT 3 Badger 050094038 100 73433 1487.74 ACfACf AVEA 0:00 5906 '"" 3?8,000 ' 8,441.16 Benefit Calculations for Account No. 630242

Tier2 Tier3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Revenue Charge -

I (31J2_,_~1li l~__ 18~!J8 ! 500 38,050 $1 ..449.71 $ $ __3_8,§§0_$ __ 1,44!J-7_1 L1.468.69 $

! $_ 18.98 500 36,167 $ 1,377.96 $ __jji_ . 36~66]_,_$.. 1,3_77.9f:l__ $ _1,39§.!)J_jJ> _ _(7!)13,8~)j 500 49,850 $ 50,350: $ 1,899.29. $ 1,918.27! $ (805.82)! $ 18.98 $ 1,899.29_ - _L~-- ··-- -·'·--·-·--·· ····-··...... ·------1---·-· ---· .. ! •$--18.98 500 72,933 $ 2,778.75 $ $ 73,433. $ 2,778.75. $ 2,797.73 $ (1,144.26)1

_l_J.~~§2 28,950 ' $ 998.78 38,.§.50_(J> __!,1?_1,!)() j ~--1&20,4_?_i.l___ (~~~?~)j ___ 5.13oo __3,800 .ll>... 123.12 +·ll> _$_ _j98.52 . 3,800 zi,o6i $ 933.B1- I 36,667 ! $ 1,056.93 • $ 1,255.45 ! $ (723.36) i 5,800 L 123.12 $ ------j------··-··- ---;--·----~------~------·- -·------i _$. 198.52 5,800 3,800 $. 123.12 40,750 _$ 1.405.88: $ §0.~50, $ .M?9.0Q •.~ .... 1 .• 72].5.?_j_~ __ (/'29.68): $ 198.52 5,800 3,800 $ 123.12 46,000 $ 1,587.00 17,833 I $ 624.16 73,433 $ 2,334.28 1 $ 2,532.80 I $ (1,045.06) i __t. 870.00 39_8,00() $ J~,§

JohnsonControls, Inc. Initials:____ _ CustomerInitials.:· ____ _

h. Account No. 644190, A S C Versailles I The Victorian, 6" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 129,200 104,200 70,200 77,500 381,100 2011 74,900 38,800 66,500 139,400 109,100 118,900 147,000 168,600 140,100 94,300 91,300 80,300 1,269,200 2012 46,700 48,500 75,700 100,100 90,400 121,300 165,000 159,700 120,700 70,900 57,600 75,500 1'132, 100 2013 30,700 90,600 72,400 95,000 75,000 92,500 132,900 184,600 121 ,700 129,200 140,800 74,600 1,240,000 2014 - 97, 100 103,400 Average 62,350 70,325 71,533 111,500 99,750 110,900 148,300 170,967 127,925 89,800 89,975 76,975 Diff. to Base 31,650 (20,275) (867) 16,500 24,750 18,400 15,400 (13,633) 7,225 18,900 32,375 1,475 Year % Diff. to Base 50.76% -28.83% -1 .21% 14.80% 24.81% 16.59% 10.38% -7.97% 5.65% 21.05% 35.98% 1.92%

Year ___ _._____ ~ , 9/1 0 - 10/11 Billed Usage , 1,244,300 9/11 - 10/12 Billed Usage , 1,213,400 9/12- 10/13 Billed Usage (Base Year) 1,098,400

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 120,700 89,800 89,975 75,500 2013 62,350 90,600 72,400 95,000 99,750 92,500 132,900 184,600

1,206,075 Proposed total billed usage in base year 107,675 Proposed total increase in billed usage in base year 9.80% % increase in billed usage over base year

JohnsonControls, Inc. Initials:____ _ CustomerIn itials: _ ___ _

Billing System Extract for Account No. 644190

Meter Current Location Cycle Customer Service ACCT Meter Meter Billed Route Service Size MFR Serial No Bill Date Meter Meter B~ No. Code Name Address Status Codo Registration Multiplier Usage Charges """ Updated Read Info Multiplier ASC 6300 VERSAILLES/ 10{22/2012 644190 4B 64 SEAWALL CURRENT OIOSEW 6 1666 THE Sewer '"n 70900 2538.14 ACTACT BLVD 0:00 97612 VICTORIAN ASC 6300 VERSAILLES/ 11/26/2012 1667 644190 48 64 SEAWALL CURRENT s~wcr OIOSEW THE 6 '"n 57600 2167.1 ACTACT BLVD 0:00 98187 VICTORIAN ASC 6300 VERSAILLES/ 1124/2013 644190 48 64 SEAWALL CURRENT 1671 THE Sewer OIOSEW 6 30700 1169.6 ACT ACT BLVD 0:00 99245 '" n VICTORIAN ASC 6300 VERSAILLES/ 512312013 1688 644190 48 64 SEAWALL CURRENT Sewer OIOSEW THE 6 '"n 75000 2857.43 ACfACT BLVD 0:00 2558 VIC'TOIUAN ASC 6300 VERSAILLES/ 1012212012 1666 644190 48 64 SEAWALL CURRENT Water 070WAT 6 Badger 05013442H 100 70900 2304.82 ACTACT THE 0:00 97612 BLVD VIC..IORIAN '"" ASC 6300 VERSAILLES/ 11126/2012 I667 644190 48 64 SEAWALL CURRENT Water 070WAT 6 Badger 05013442H 100 57600 1952.02 ACfACT THE 0:00 98187 BLVD VICTORIAN '"" ASC 6300 VERSAILLES/ 112412013 1671 644190 48 64 SEAWALL CURRENT Water 070WAT 6 Badger 05013442H cu n 100 30700 1044.79 ACfACf THE 0:00 99245 BLVD VICfORIAN ASC 6300 VERSAILLES/ 5/23/2013 1688 644190 48 64 SEAWALL CURRENT Water 070WAT 6 Badger 05013442H 100 75000 2574.14 ACfACf THE 0:00 2558 BLVD VlCfORIAN '"" 468,400 $ 16,608.04

JohnsonControls, Inc. Initials:____ _ CustomerInitials:· ____ _

Benefit Calculations for Account No. 644190

Tier2 Tier3 Calculated Base Tier2 Tier4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Charge Revenue -- $ 17.82 . 500- --- "' 70,400. ------·-.I·------; $ 2,520.32 $ J $ 7_o,9oo :1. 2_,52Q,32__$ 2,§:38.14 LL ___ ~-- -1s.9a $- i __ 500 57,100 ,$_2,175.51 . J ·--4 5l.6QQ J; __2_,J7'5._s_1L$ 2, 1_94.49_~_1{27_,3_f)Ji $ 18.98 i 500 . 30,200 $ 1,150.62 $ ~- _ ~O,JQ

I $ 752.63 ; 2:3,_200_! _ 3,8_()0 $ 116.66 I 43,900- -t_1 ,435,53 .... 7_0,_f)OO: .$ .. 1_,5!;2,19_J_$ __ 2,:3_0'!,B2!_$__ -~--~ ,------~---- .l.. _ _ _$ ::- _"$ ______794.02 -·-- ····- 1--·' 23,20_0 3,800 $ 123.12 30,§00 1 , 055,70 $ -· §7_!_60Q_i_J_1,17'8"82_!_ $ ... _1,_fl7'2_.84j_$_ [email protected])j i __ . $ 30,700 : $ 250.77 ! $ 1,044.79 : $ - ! $ 794.02 : _23,200, -- 3,80D_. ~- 1g3.12 ··-- 3,70() $ 127,®__ ------· ------___ , __ ------1------, ------i-f-794.02! 23,200 1 3,800 I $ 123.12 : 46,000 . $ 1 ,587.00 . 2,000 $ 70.00 75,000 I$ 1,780.12 ~$ 2,574.14! $ - ' I I ' .I i $~,2Q!I,1§_l - --- L~B,~O_Q,j- 1;!,4_~!;,1!()..Lt JE;,!l?!l-~5: __$_, ,_('1_8.21 )j

JohnsonControls, Inc. Initials: ____ _ CustomerInitials ..-____ _

i. Account No. 652510, Seaside Village, 4" Meter

Jan Feb Mar Apr May Jun Jul AuQ Sep Oct Nov Dec Total 2010 63,700 57,300 61,500 74,100 256,600 201 1 56,000 54,500 37,500 55,100 50,200 53,700 74,000 89,700 104,200 78,500 86,600 105,100 845,100 2012 57,400 52,600 42,300 73,700 68,200 79,800 93,600 100,100 120,900 68,600 56,400 36,100 849,700 2013 31,000 30,000 2,600 13,100 11,000 52,400 56,300 91,500 287,900 2014 -- - Average 48,133 45,700 39,900 64,400 59,200 61,967 74,633 93,767 96,267 62,950 68, 167 71,767 Diff. to Base 17,133 15,700 37,300 51,300 48,200 9,567 18,333 2,267 (24,633) (5,650) 11,767 35,667 Year % Diff. to Base 35.60% 34.35% 93.48% 79.66% 81.42% 15.44% 24.56% 2.42% -25.59% -8.98% 17.26% 49.70% Year ,. 9/10- 8/11 Billed Usage ,. 727,300 9/11 - 8/12 Billed Usage ,. 942,100 9/12- 8/13 Billed Usage (Base Year) 569,900

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 120,900 68,600 56,400 71,767 2013 48,133 45,700 39,900 55,100 50,200 52,400 56,300 91,500

756,900 Proposed total billed usage in base year 187,000 Proposed total increase in billed usage in base year 32.81% %i ncrease in billed usage over base year

JohnsonControls, Inc . Initials: __ __ _ CustomerIn itials: ____ _

Billing System Extract for Account No. 652510

Meter Current Location Cycle Customer Senice ACCT Meter Meter Billed Meter B~ Route Senicc .... Size MFR Serial No Bill Date Meter Charges No Code Name Address Status Code Registration Mulliplier Usage Inro Multiplier Updated Read SEASIDE 4925 FORT 12/19/2012 5401 652510 4B 65 CURRENT Sewer OIOSEW 4 71767 1375.35 ACfACf VILLAGE CROCKETT 0:00 8232 SEASIDE 4925FORT t/24nol3 5711 '"" 652510 4B 65 CURRENT Sewer OlOSEW 4 cu ft 48133 1181.03 VILLAGE CROCKEIT 0:00 8232 ACfACf SEASIDE 4925FORT 2/2Dn013 601l 652510 4B 65 CURRENT Sewer OIOSEW 4 cu fi 45700 1142.93 ACTACT VILLAGE CROCKETI 0:00 8232 SEASIDE 4925FORT 3121/2013 6037 652510 4B 65 CURRENT Sewer OIOSEW 4 39900 98.99 ACfACf VILLAGE CROCKETI 0:00 8232 SEASIDE 4925FORT 4/22/2013 6168 '"" 652510 4B 65 CURRENT Sewer OIOSEW 4 55100 499.04 ACT ACT VILLAGE CROCKI.:IT 0:00 8232 SEASIDE 4925 FORT 5/23/2013 6278 '"" 652510 4B 65 CURRENT Sewer OlOSEW 4 50200 419.03 At.'TACT VILLAGE CROCKE1T 0;00 8232 SEASIDE 4925 FORT 7/2212013 6395 '"" 652510 4B 65 CURRENT Sewer 010SEW 4 56300 2144.96 ACT ACT VILLAGE CROCKE1T 0:00 9202 SEASIDE 4925H)RT 12119/2012 5401 "" 652510 4B 65 CURRENT Water 060WAT 4 Ba!.lger 05011220H 100 71767 1234.3 At.'TA(.'T VILLAGE CROCKEIT 0:00 8232 SEASIDE 4925 FORT I/2412013 5711 '"" 652510 4B 65 CURRENT Water 050WAT 4 Ba!.lger 05011220H 100 48133 1058.35 ACT ACT VILLAGE CROCKEIT 0:00 8232 '"" SEASIDE 4925 FORT 2120/2013 50ll 652510 4B 65 CURRENT Water 060WAT 4 Ba!.lger 05011220H 100 45700 1023.85 ACT ACT VILLAGE CROCKEIT 0:00 8232 '"" SEASIDE 4925FORT 3/21/2013 6037 652510 4B 65 CURRENT Water 060WAT 4 Badger 05011220H cu ft 100 39900 397.03 ACT ACT VILLAGE CROCKEIT 0:00 8232 SEASIDE 4925FORT 4/2212013 6168 652510 4B 65 CURRENT Water 060WAT 4 Badger 05011220H 100 64400 445.63 ACT ACT VILLAGE CROCKEIT 0:00 8232 '"" SEASIDE 4925 FORT 5/23/2013 6278 652510 4B 65 CURRENT Water 060WAT 4 Ba!.lger 05011220H 100 59200 397.03 ACT ACT VILLAGE CROCKEIT 0:00 8232 '"" SEASIDE 4925 FORT 7/2212013 6395 652510 4B 65 CURRENT Water 060WAT 4 Ba!.lgcr 05011220H 100 74633 1931.2 A(.'TA(.'T VILLAGE CROCKEIT 0:00 9202 '" ft 770,833 $ 13,348.72

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

Benefit Calculations for Account No. 652510

Tier2 Tier3 Calculated Base Tier2 Tier4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Charge Revenue

L_L_~.98j__ _ 500_ 71,267 • $ 2,715.27 ' . . $ _ _$____ - __ i__ ]'1_."7()L:Ls?_1_().g_7 l$_~.J34.25)_L(1_.~!38c!l_O)_! 1 I $ 18.98 ! I -- - - : . $ 18.98 ' ~~6! ~:~6~< l ~:~~i:ii:- - •-~ - ---~- i- - :~:~%6'}-+:~ii:~il~+~~~:~-~-~---(~~~:WI r- - : · -- --;--·-··- -- +- ---···- ····-- .... ----., . ------·i- ... ------"------,----(~__ )1 ' $ 18.98 ' 500. 39,400. $ 1,501.14: $ $ : 39,900. $ 1,501.14: $ 1,520.12' $ (1,421.13), 5oo : 54.6oo $ 2,o8o.26 - $ - ·--- -- r-- - -55.1aalT-2.o80~26r$2.o99.24 i $ -cl.6oo~2o)l 1-B~~-s~-_;- $- __ i~~~-=-~···---· ---,------·------·------,------+------•------,------· : $ 18.98 I 500 i 49,700. $ 1,893.57, . $ , $ 1 50,200 i $ 1,893.57 I$ 1,912.55 I$ (1,493.52)1 ------·------. ·-- . ---- . ------...... ------"---- -.------;------_, ____ ------1 !$~--i8.98 500 : 55,800 $ 2,125.98 • $ $ I 56,300 I $ 2,125.98 I $ 2,144.96 ! $ ' i ! 1-$------397.03----- 11,600 3)300 $ _ 123.12' 46,000!$_1,§_8TQO 1Q,367 _$ 362.§5 71,767!§ 2,072.9J(Lg,_4,7Q.OO_[J>(1,235.70); ,1 ...... $ 397.03 ·--+ ' 11,6oo 3,8oo $ 123.12 32,733 $ 1,1g_9.29 - 1_$ __ 4_8,139L$ 1,.2!J.2.41L$ 1,649_,44_l_$ __(591._@)_i ! $ 397.03 ' 11,600 3,800 $ 123.12 30,300 $ 1,045.35 - $ · .. _ L 45,700' $ 1,168.47 I$ 1,565.50 I$ (541.65) ! $--39i()3_;_ 1i,6o(l 3,8oo $ 123.12 24,500 $ 845.25 __ - i$ -- -39.9cio:$ - 96B.37-: $ 1-;-365.40: $ -- (968.37)' r---··------· -··; ' $ 397.03 : 11c6oii 3,800 $ 123.12 - 46.6oo $ 1,587.o0::. _ _ ~~oo()_ j _ 105.o~J ;:: _ _6_.4,1o_o; j_:-1,8J5.12 Cr-:::2~2:12, 1s i.j" (:1.766.-52)~

:T39]]li _11,600_j_ 3,800. $ .. 123.12 _ 43,800 $ 1,511JO, __ -__ $ _ - __ 5_9,_gOO1 $ __1,6~.22_,J>_~ 2,031"~-"-:-~ (1,634.22Jt $ 397.03 11,600: 3,800 '$ 123.12 46,000 $ 1,587.00' 13,233 $ 463.16:1 74,633! $ 2,173.28 $ 2,570.31 : $ (639.11)1

: $ ?.. s_1 :z.m: .. ------···· _!7(),1j~_3__U;_~.~3Z.9_!1ij:!7,11lj(),_(l_6_j_t_{1_.4,501.34)!

JohnsonControls, Inc. Initials:~---- CustomerInitials:~----

j. Account No. 761133, The Villas of Pointe West Condo Association, Inc., 6" Meter

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2010 100 0 400 15,500 16,000 2011 10,300 100 0 26,900 0 31 '100 0 29,900 57,600 29,900 14,900 9,000 209,700 2012 10,700 11 ' 100 100 19,000 14,200 15,400 29,100 29,900 25,700 26,400 50,400 71800 2391800 2013 0 0 100 200 61700 7,400 81600 541000 771000 2014 Average 101500 111100 67 221950 10,450 17,967 12,567 29,900 41,650 281150 32,650 101767 Diff. to Base 10,500 111100 (33) 221750 31750 10,567 31967 (2411 00) 151950 1,750 (17,750) 2,967 Year % Diff. to Base 100.00% 100.00% -50.00% 99.13% 35.89% 58.81% 31.56% -80.60% 38.30% 6.22% -54.36% 27.55% Year .- ,. 9/1 o- 8/11 Billed Usage ,. 114,300 9/11 - 8/12 Billed Usage ,. 240,900 9/12-8/ 13 Bi lled Usage (Base Year) 1871300

Proposed Base Year Billed Usage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 25,700 26,400 50,400 7,800 2013 10,500 11,100 100 19,000 6,700 15,400 8,600 54,000 -

235,700 Proposed total billed usage in base year 48,400 Proposed total increase in billed usage in base year 25.84% % increase in billed usage over base year

JohnsonControls, Inc. Initials:_ ___ _ CustomerIni tials: __ __ _

Billing System Extract for Account No. 761133

Meter Current Location Cycle Customer Service ACCT Rate Meter Meter Billed Meter Route Service Size MFR Serial No Bill Date Meter Charges No Code Name Address Status Code Registration Multiplier Usage Updated Read Info Multiplier·~· THE VILLAS OF 26555 A- POINTE 761133 lA 76 JETTY DR 1/14/2013 3R6 WEST CURRENT Sewer OJOSEW 6 10500 18.98 ACfACT BUILDING 0:00 8962 CONDO '"" ASSOC., INC. THE VILLAS OF 26555 A- POINTE 761133 76 JETTY DR 2/11/2013 386 lA WEST CURRENT Sewer OIOSEW 6 11100 18.98 ACTACT BUILDING 0:00 8962 CONDO '"" ASSOC., INC. THE VILLAS OF 26555 A- POINTE 761l33 JETTY DR CURRENT 4/8n013 3R9 lA 76 WEST Sewer OIOSEW 6 19000 18.98 ACTACT BUILDING 0;00 8962 CONDO '"" ASSOC., INC. THE VILLAS OF 26555 A- POINTE S!l3/2013 391 761133 lA 76 JETITDR CURRENT Sewer O!OSEW 6 C\1 ft 6700 255.2 ACTACT WEST 9027 BUILDING 0:00 CONDO ASSOC., INC. THE VILLAS OF 26555 A- POINTE 6/1012013 391 761133 lA 76 JETI'YDR CURRENT Sewer OIOSEW 6 15400 281.87 ACT ACT WEST 9101 BUILDING 0:00 CONDO '"" ASSOC., INC. THE VILLAS OF 26555 A- POINTE J/1412013 386 761l33 76 JE1TYDR CURRENT Water 070WAT 6 Badger 04178476H 100 10500 794.02 ACT ACT lA WEST 0:00 8962 '"n BUILDING CONDO ASSOC., INC.

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

THE VILLAS or 26555 A- POINTE 2/11/2013 386 761133 !A 76 JETTY DR CURRENT Water 070WAT 6 Badger 04178476H 100 11100 794.02 ACfAL'T WE..'iT BUILDING 0:00 8962 CONDO ~· ASSOC., INC. THE VILLAS OF 26555 A- POINTE 4/8/2013 389 761133 !A 76 JETIYDR CURRENT Water 070WAT 6 Badger 04178476H WEST 100 19000 794.02 ACTACT BUILDING 0:00 8962 CONDO ~· ASSOC., INC. THE VILLAS OF 26555 A· POINTE 5113/2013 391 761133 lA 76 lETfYDR CURRENT Water 070WAT 6 Badger 04178476H 100 6700 794.02 ACTACf WEST 0:00 9027 BUILDING ~· CONDO ASSOC., INC. THE VILLAS OF 26555 A- l'OINTE 6/1012013 391 761133 !A 76 JETIYDR CURRENT Water 070WAT 6 Badger 04178476H 100 15400 794.02 ACTACf WEST 0:00 9101 ft BUILDING '" CONDO ASSOC., INC. 125,400 $ 4,564.11

JohnsonControls, Inc. Initials:____ _ CustomerInitials:_~---

~chedule2

Benefit Calculations for Account No. 761133

Tier2 Tier3 Calculated Base Tier2 Tier 4 Volume Total Tier Total Volume Base Usage Volume Tier3 Usage Volume Tier4 Usage Total Billed Delta Charge Usage Charge Usage Charge Charge Charge Revenue L.$.. 1_f!,98 i 500~10,000, $ 381.00 ... _____ · ~ ... l. - _10,500]$_ 381.00! $ 399.98 L$___ (:38_1.()0)] LL 18.98L 500 . 10,600:$ 403.86 ,.. $ $ 11,1_0()j_$__ 403.8~_$___ 4.2g,84 1_$___ (4_()_?.86)i

1 1 794 ~~--1~~~-~-~~6,·· ::~66: ·~~~t:, : - •: · -- --~:~~H--~~~~~H~~~-~~~!}j ~B?lj i$--1-8.98'- -u 5oo-:--i4.9oo -$-567.69""1 - -- ... '$ . -- -- - ~ : $ -·· ' ...... i5.4ooT$ 567:69'$ 586:67.. $ "(3ci4.8C>J! i $ 794.02 ' 10,500 ! ' $ ' $ . - . $ . 10,500 : $ - : $ 794.02 ! $ - ! r·-··------·------,------' -·-- ' -- - ' ------' --- ...... -- --· ·-·--·-·-·-:------·- ~--- ··------....-... ---·---+------·--.... -- ...·----~-·- --·--·-·-·----··---·--·.,·------..··-··---·--··-----:

' $ 794.02 ' 11,100 i - I $ - ' - ' $ - ~ - ' $ - I 11,100 ! $ ' $ 794.02 I $ - I ~---·------;··------·--·------·-·----,-----·------···----r--·------:------:------r------1.-·---r----~--~--' --r-~-~ . $ 794.02 ' 19,000 ' - ' $ - - i $ - ' $ - i 19,000 $ - i $ 794.02 ' $ - l:i=j_9_;1:6_2T_-~.:_---=6.z0.6L _ -: -~i:.:- . -- :--- - _:. --_:-$ -- __ .... _ ._ =-=~:=l];:_===:.-~.:_-.:c_-:~= ~:_s,z

1 : $ 794.02 : 15,400 1 $ . $ - ' $ 15,400 ! $ I $ 794.02 l $ - ' i_$4,QE;5.00L .i... - L ' ..... •. __ _1g_5,400L1_1,_2!}~.§?!_L!l.:l!;B.f)?__UU1,794.5_1)[

JohnsonControls, Inc. Initials:____ _ CustomerInitials: ____ _

6867 Total number of failed ORION CE endpoints 400 Average number of endpoints that a crew can replace in a week 17.1675 Weeks required to complete task 4 Months required to complete task $19,900 Cost for manual meter reading per month $79,600 Estimated cost for manual meter reading during installation $119,400 Estimated cost for manual meter reading, December 2013 through May 2014 $199,000 Total estimated cost for manual meter reading (First Year Benefit Only).

9. Meter Reading Avoided Labor Costs

According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Meter Reading Labor Avoided Costs Item Value Number of full-time meter readers 5 Average hourly pay for a meter reader $14.21 Benefits as a percentage of salary 35.853% Number of full-time meter readers to be reassigned to 3 complete deferred maintenance and leak/break repair 3 staff x $14.21/hour x 40 hours/week x 50 weeks/year= $85,260.00 c $85,260 in sa lary x 1.35853 burden rate $115,828.27 Total Benefit from Meter Reading labor Avoided Costs $115,828

10.R Meter eading Avoided Vehicle Costs

According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Meter Reading Fleet Expense Avoided Costs Item Value Number of vehicles used for meter reading 5 Annua l operating cost per vehicle used for meter reading $28,907.00 Number of vehicles used for meter reading that w ill be 3 reassigned for other purposes 3 vehicles x $28,907 /year= $86,721.00 Guarantee Factor 50.00% Claimed Benefit from Meter Reading labor Avoided Costs $43,361

11 . Meter Replacement Labor

JCI revi ewed the utility billing system extract provided by the Customer and determined that the following quantity of small and intermediate-sized water meters had reached the end of their respective design life

based upon the last register reading in the extract. The quantity of water meters by size that merit replacement is provided in the table below:

Small & Intermediate Water Meters that Have Reached the End of Their Design Life Meter Size Quantity 0.625" 231 1" 105 1.5" 54 2" 58 Total number of water meters that have reached 448 the end of their respective design lives

According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Meter Replacement Labor Expense Avoided Costs Item Value Average time required to replace a small or 0.5 intermediate size water meter in hours Average hourly pay for a water meter technician $14.21 448 meters x 0.5 hours/meter x $14.21/hour = $3,183.04 ( Total benefit from avoided labor costs realized through replacing water meters that have reached $3,183 the end of their design life

12. Disconnects & Reconnects

According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Johnson Controls, Inc. Initials: _ ___ Customer Initials: ___ _

Virtual Disconnect & Reconnect Avoided Labor Costs Item Value Average number of disconnects & reconnects per year 400 Average amount of combined customer service and meter technician hours spent involved with a 0.5 disconnect & reconnect work order Average aggregate hourly salary of a customer service $16.00 representative and meter technician 400 Events/year x 0.5 hours/event x $16.00/hour = $3,200.00 Total benefit from virtual disconnect & reconnect $3,200 avoided labor costs

13. Lost Revenue from Estimated Readings

The Customer provided JCI with a report of one hundred and fifty-eight (158) accounts have received continuous estimated readings since January 1, 2012. According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Recovery of Lost Revenue from Estimated Readings Item Value Number of estimated meter readings per month 5,000 Average customer billed water revenue lost $10.00 c because of estimated meter readings per month Average cu stomer billed sewer revenue lost $10.00 because of estimated meter readings per month 5,000 estimated meter readings/month x ($10.00 lost water revenue+ $10.00 lost sewer revenue) x $1,200,000.00 12 months/year Guarantee Factor 50.00% Claimed Benefit from Recovery of Billed Water $600,000 and Sewer Lost Revenue from Estimated Readings

14. Reduction in Customer Complaint Calls

According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Johnson Controls, Inc. Initials: ___ _ Customer Initials: ____

Reduction in Customer Calls Avoided Labor Costs Item Value Average numbers of customer service calls per day 50 Average number of work days per year 240 Average cost per customer service call $2.60 Percentage of customer service calls to be reduced because of a 90.00% customer web portal Existing Customer Call Cost: 50 calls/day x 240 days/year x $2 .60/call = $31,200.00 Projected Customer Call Cost: 50 calls/day x (100%- 90% reduction) x $3,120.00 240 days/year x $2 .60/call = Cost Benefit from Reducing Customer Calls: $31,200- $3,120 = $28,080.00 Avoided Labor Cost from Reducing the Number of Customer Calls $28,080 because of a Customer Web Portal

15. Reduction in Accounts Receivable

The Customer believes that if the existing mobile AMR system were replaced with a new AMI system that accurately read the water meters, the amount of water and sewer accounts receivable would decrease by twenty percent (20.00%). According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Reduction in Accounts Receivable through an AMI System c Item Value Average Water & Sewer Accounts Re ceivable as of April 29, 2014 $5,507,122.00 Reduction in Accounts Receivable through an AMI System 20.00% $5,507,122 X 20% = $1,101,424.40 Guarantee Factor 50.00% Claimed Benefit in Accounts Receivable Realized by Installing an $550,712 AMI System

16. Reduction in Credits for Customer Complaints

The Customer believes that if the existing mobile AMR system were replaced with a new AMI system that accurately read the water meters, the amount of water and sewer accounts issued each month would decrease by ninety percent (90.00%). According to information provide to JCI on April 29, 2014, by Michael Abner, Comptroller for the City of Galveston:

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

Reduction in Credits Issued because of a New AMI em Item Value Approximate number of estimated meter readings per month 5,000 Approximate number of customers who receive a credit from 25.00% an estimated meter reading credit issued to a customer $120.00 Percentage reduction in credits issued per month through the 90.00% installation of a new AMI system Existing Cost of Issuing Credits: 5,000 estimated reads/month x 12 months/year x 25% customers who receive credits x $1,800,000.00 $120 credit/call= Projected Cost of Issuing Credits: 5,000 estimated reads/month x (100%- 90% reduction in credits $180,000.00 issued/month) x 12 months/year x 25% customers who receive credits x $120 credit/call=

Total projected benefit to be realized from reducing the number of credits issued per year through the installation of a $1,620,000.00 reliable, accurate meter reading and billing process brought about through a new AMI system c Guarantee Factor 50.00% Claimed benefit to be realized from reducing the number of credits issued per year through the installation of a reliable, $810,000 accurate meter reading and billing process brought about through a new AMI system

Johnson Controls, Inc. Initials: _ ___ Customer Initials: ____

( Ill. MEASUREMENT AND VERIFICATION METHODOLOGY Based upon JCI's and Customer's investigation of the existing condition of certain of Customer's large water meters, Customer has concluded that a significant percentage of such meters do not accurately measure billable consumption, and Customer is losing potential billable consumption revenue due to this inaccuracy. By replacing inaccurate meters with more accurate meters, it is expected that Customer will increase the volume of water registered by such meters and thereby increase measured billable consumption, assuming the same consumption levels prior to and after the Work has been performed. By applying accuracy increases to the Baseline water billing amounts supplied to JCI by Customer and set forth in Section IV below, it is expected that the impact of billing for the additional billable consumption would have resulted in increased billable consumption of $87,174 in the Baseline year. Customer recognizes, however, that the amount of actual revenues achieved in future periods will depend on other factors besides improved meter accuracy, such as, by way of example, collections ratio, consumption, and water utility rates, among others.

The pre-retrofit accuracy of meter sizes 3" and larger has been calculated by testing the accuracy of the meter population set forth in Schedule 1 (Scope of Work). Weighted average accuracy is based on the American Water Works Association (AWWA) guidelines as set forth in the Manual of Water Supply Practices- M6, Fifth Edition, Water Meters- Selection, Installation, Testing and Maintenance. ©2012 American Water Works Association, ISBN 9781583218624, as may be updated or revised from time to time by AWWA. The post-retrofit accuracy of new meters will be tested using the same AWWA guidelines.

JCI's guarantee relating to meters is limited solely to the accuracy of the meters, operating under normal conditions, which have been replaced pursuant to this Agreement and are set forth in the table of meter sizes and quantities in Section V below. No guarantee, express or implied, is provided with respect to any other matters, including, without limitation, the following items (and effects thereof): • water system revenue • water usage trends c/ • water rationing programs • demographic and/or population shifts • changes in the industrial or commercial base • regulatory changes • droughts, floods, rainfall, or other weather or climatic conditions • water system pressure variations • non-metered water usage • failure to collect amounts due for billable consumption • changes in monthly base charges, monthly allowable minimum base consumption, or monthly volume charges • changes to water and sewer rate schedules • water quality • failure of the water system to meet governmental requirements • improper maintenance or unsound usage of the Improvement Measures or any related equipment • performance of automatic meter reading equipment

IV. BASELINE CALCULATIONS & POST-RETROFIT INCREASED METER ACCURACY ( BENEFIT

Annual Water Consumption, Revenue, and Related Data from September 2012 to August 2013

Projected Projected Projected Post- Increase in Account Tested Increase in Increase in Customer Name Address Size Retrofit Total No. Accuracy Sewer Water Accuracy Billed Revenue Revenue Revenue

284110 Galveston College 4000 AveR 3" 91.30% 98.50% $1,889.03 $1,540.80 $3,429.83

668890 Inland Southwest Management 6228Ave J 3" 33.31% 98.50% $492.32 $78.24 $570.56

648590 Antigua Apartment 8008 Seawall Blvd 3" 48.31% 98.50% $21,158.94 $16,887.42 $38,046.36

410004 Galveston County 5800 Ave H site plant 6" 47.68% 98.50% $22.473.57 $10,773.00 $33,246.58

122910 RJ Meridian Care of Galveston 2228 Seawall Blvd 6" 49.47% 98.50% $10,612.07 $1,268.76 $11,880.84

Totals $56,625.94 $30,548.23 $87,174.17

The unit utility costs for the Baseline period are set forth below as "Utility Rates" and shall be used for all calculations made under this Schedule. The Utility Rates shall be escalated annually by the actual utility rate escalation but such escalation shall be no less than the mutually agreed "floor'' escalation rate of three percent (3.0%).

The water and sewer rate schedule in effect is provided on the following pages. c~

( ORDINANCE NO. 12-___

AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, AMENDING CHAPTER 36, "WATER, SEWERS, Al"JD SEW AGE DISPOSAL" OF "THE CODE OF THE CITY OF GALVESTON 1982, AS AMENDED" BY INCREASING SEWER RATES BY SIX AND ONE HALF PERCENT (6.5%); EFFECTIVE OCTOBER 1, 2012; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT.

WHEREAS, on September 24, 2012, City Council adopted the fiscal year 2012-2013 Budget which included an increase in the sewer rate; and,

WHEREAS, a six and one half percent (6.5%) increase in sewer rates is necessary to achieve sustainable service levels; and,

WHEREAS, the Council deems it in the City's interest to increase sewer rates to pay for critical sewer operations and various capital improvements without the necessity to budget for the use of reserve funds;

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALVESTON, TEXAS:

SECTION 1. The findings and recitations set out in the preamble to this Ordinance arc found to be true and correct and they are hereby adopted by the City Council and made a part c hereof for all purposes. SECTION 2. Section 36-180, "User charge rates; base charge" of Chapter 36, "Water, Sewers, and Sewage Disposal" of The Code of the City of Galveston 1982, as amended, is hereby amended to read and provide as follows:

"Sec. 36-180. User charge rates; base charge.

Residential, commercial, and industrial users shall pay a monthly sanitary sewer service charge based on the following rates per each one hundred (I 00) cubic feet of user's metered water consumption. For a monthly billing, the rate on the first five hundred (500) cubic feet or fraction thereof shall be seYeRteeR dollars aRd eigfity ffi•o eeRts ($17.82) eighteen dollars and ninety-eight cents ($18.98). For all water usage over five hundred (500) cubic feet, the billing rate shall be tHree aellaFS ruul tifty eigfit eeRts ($3.58) three dollars and eight-one cents ($3.81 l per each additional one hnndred (I 00) cubic feet."

SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance arc severable and, if any phrase, clause, sentence, paragraph or section of this Ordinance should be declared invalid by the final judgment or decree of any court of competent jurisdiction, such invalidity shall not

Johnson Controls, Inc. Initials:~~~- Customer Initials:~~~-

affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Ordinance.

SECTION 4. All Ordinances or parts thereof in conflict herewith are repealed to the extent of such conflict only.

SECTION 5. In accordance with the provisions of Sections 12 and 13 of Article ll of The City Charter this Ordinance has been publicly available in the office of the City Secretary for not less than 72 hours prior to its adoption; that this Ordinance may be read and published by descriptive caption only.

SECTION 6. This Ordinance shall be and become effective October I, 2012, from and after its adoption and publication in accordance with the provisions of The City Charter of the City of Galveston.

APPROVED AS TO FORM:

DOROTHY PALUMBO CITY ATTORNEY c !, Douglas Godinich, Secretary of the City Council of the City of Galveston, do hereby certify that the foregoing is a true and correct copy of an Ordinance adopted by the City Council of the City of Galveston at its special meeting held on the 24th day of September, 2012, as the same appears in records of this office.

IN TESTIMONY WHEREOF, I subscribe my name hereto officially under the corporate seal of the City of Galveston this day of , 2012.

Secretary for the City Council of the City of Galveston

Sewer Rate Increase 2012-2013 2 ( Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Performance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 101 Schedule 2

ORDINANCE NO. 12-___

AN ORDINANCE OF THE CITY OF GALVESTON, TEXAS, AMENDING CHAPTER 36, "WATER, SEWERS, AND SEWAGE DISPOSAL" OF "THE CODE OF THE CITY OF GALVESTON 1982, AS AMENDED" BY INCREASING WATER RATES BY FIVE AND ONE HALF PERCENT (5.5%); EFFECTIVE OCTOBER 1, 2012; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO TI-lE SUBJECT.

WHEREAS, on September 24, 2012, City Council adopted the fiscal year 2012-2013 Budget which included an increase in the water rate; and

WHEREAS, a five and one half percent (5.5%) increase in water rates is necessary to achieve sustainable service levels; and

WHEREAS, the Council deems it in the City's interest to increase water rates to pay for critical water operations and various capital improvements without the necessity to budget for the use of reserve funds; and

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALVESTON, TEXAS:

SECTION 1. The findings and recitations set out in the preamble to this Ordinance are c fotmd to be true and correct and they are hereby adopted by the City Council and made a part hereof for all purposes.

SECTION 2. Subsection (a) of Section 36-64, "Generally" of Chapter 36, "Water, Sewers, and Sewage Disposal" of The Code of the City of Galveston 1982, as amended, is hereby amended to read and provide as follows:

Sec. 36-64. Generally.

(a) Based on consumption. For water supplied to consumers, the rates charged per one hundred (I 00) cubic feet shall be as follows:

Quantify Inside City Limits Outside City Limits

First 200 cubic feet or $ 23A7 fraction thereof Next 3,800 cubic feet Next 46,000 cubic feet Next 950,000 cubic feet All over 1,000,000 cubic feet

Quantity Inside City Limits Outside City Limits

First 200 cubic feet or $ 12.39 $24.76 fraction thereof Next 3,800 cubic feet 6.47 Next 46,000 cubic feet 6.89 Next 950,000 cubic feet 7.04 All over 1,000,000 cubic feet 7.68

SECTION 3. Section 36-65, "Minimum bill" of Chapter 36, "Water, Sewers, and Sewage Disposal" of The Code of the City of Galveston 1982, as amended, is hereby amended to read and provide as follows:

Sec. 36-65. Minimum bill.

The minimum monthly water bill on each connected meter shall be as follows:

Size of Meier Minimum Inside City Outside City (inches) Consumption Limits Limits (Ccf*)

5/8 2 $ 11.74 $ ::>3.47 1 5 23.§2 47.07 1-1/2 13 47.05 94.07 c~ 2 29 94.()7 188.16 3 58 188.17 376.3<1 4 116 376.33 752.63 6 or over 232 752.63 1.505.31

Size of Meter .At/inimum Inside City Outside City (inches) Consumption Limits Limits (Ccf')

5/8 2 $ 12.39 $ 24.76 1 5 24.81 49.66 1-1/2 13 49.64 99.24 2 29 99.24 198.51 3 58 198.52 397.04 4 116 397.03 794.02 6 or over 232 794.02 1.588.10

Water Rate Increase 2012-2013 2

Customer Initials: ____ Johnson Controls, Inc. Initials: ____

SECTION 4. It is hereby declared to be the intention of the City Council that the sections. paragraphs, sentences, clauses, and phrases of this Ordinance are severable and, if any phrase, clause, sentence, paragraph or section of this Ordinance should be declared invalid by the tina! judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Ordinance.

SECTION 5. All Ordinances or parts thereof in conflict herewith are repealed to the extent of such conflict only.

SECTION 6. In accordance with the provisions of Sections 12 and 13 of Article II of the City Charter this Ordinance has been publicly available in the office of the City Secretary for not less than 72 hours prior to its adoption; that this Ordinance may be read and published by descriptive caption only.

SECTION 7. This Ordinance shall be and become effective October I, 2012, from and after its adoption and publication in accordance with the provisions of The City Charter of the City of Galveston.

APPROVED AS TO FORM:

DOROTHY PALUMBO CITY A"n'ORNEY

l, Douglas Godinich, Secretary of the City Council of the City of Galveston, do hereby certify that the foregoing is a true and correct copy of an Ordinance adopted by the City Council of the City of Galveston at its special meeting held on the 24th day of September, 2012, as the same appears in records of this office.

TN TESTIMONY WHEREOF, I subscribe my name hereto ofiicially under the corporate seal of the City of Galveston this day of . 2012.

Secretary for the City Council of the City of Galveston

Water Rate Increase 2012-2013 3

Customer Initials:~~~~ Johnson Controls, Inc. Initials:~~~~

v. MEASUREMENT & VERIFICATION SERVICES ( JCI will provide the M&V Services set forth below in connection with the Assured Performance Guarantee.

1. During the Installation Period, a JCI Performance Assurance Specialist will track Measured Project Benefits. JCI will report the Measured Project Benefits achieved during the Installation Period to Customer within 60 days of the commencement of the Guarantee Term.

2. Within 60 days of each anniversary of the commencement of the Guarantee Term, a JCI Performance Assurance Specialist will undertake the following testing activities to verify the accuracy of the meters set forth in the table below.

A. clean meter location/setting; B. visually inspect location/setting for indications of water leakage; C. conduct large water meter testing in accordance with AWWA Manual M6 standards; D. If the meter does not meet AWWA Manual M6 Minimum New Meter Accuracy Standards, the meter will be repaired (if possible) and then re-tested to confirm that the repairs were made correctly.

Account No. Customer Name Address Size 284110 Galveston College 4000Ave R 3" 668890 Inland Southwest Management 6228 Ave J 3" 648590 Antigua Apartment 8008 Seawall Blvd 3" 410004 Galveston County 5800 Ave H site plant 6" c 122910 RJ Meridian Care of Galveston 2228 Seawall Blvd 6" 3. Within 60 days of each anniversary of the commencement of the Guarantee Term, JCI will provide Customer with an annual report containing:

A. an executive overview of the project's performance and Project Benefits achieved to date; B. a summary analysis of the Measured Project Benefits accounting; and C. a detailed analysis of the Measured Project Benefits calculations.

0 WATER METER PERFORMANCE CONSULTING SERVICES

For the additional fee set forth in Schedule 4, JCI will provide the performance consulting services set forth below.*

1 . Site visits as necessary to review status and operation of Improvement Measures.

2. Monthly review of the water pumped and billable water and sewer usage with performance period comparison to that of target values derived from Baseline year performance. Based upon trending results, a billable consumption evaluation and recommended corrective actions plan will be provided as required. Customer will be responsible for implementing any corrective actions.

3. Monthly evaluations of the billed data to assess the metering system and recommend a benefit optimization strategy to maximize value. The report will include:

A. accounts that failed to register any consumption; B. accounts with minimal consumption as compared to past periods; C. accounts with abnormally high consumption as compared to past periods; D. accounts whose registered consumption is approaching the manufacturer's warranted usage limits; E. a review of the billed consumption and revenue of up to one hundred (1 00) accounts that have historically generated the highest billable consumption for Customer; and F. verification that the water and sewer rate structures are being applied correctly. *In order for JCI to provide the consulting services, Customer must have a billing system that is capable of providing billing data extracts to JCI with all billing information in a file format that will permit performance analysis of the water system. Such billing information must be suitable for use in a Microsoft Access database and be available on a monthly basis in an ASCII Comma or Tab delimited format with the first line of the file being a header line to denote the data in each column. Monthly information with respect to each account includes the following:

• Account Number • Account Status • Account Sequence- (if applicable) • Serial Number • Meter Sequence- (if applicable) • Meter Size • Cycle Code- (if applicable) • Meter Manufacturer • Route Code- (if applicable) • Meter Location Information • Sequence- (if applicable) • Billing Date • Customer Name • Current odometer reading • Customer Address • Usage I consumption • Rate Code - Water, Sewer, Irrigation • Bill Amount (for each rate code item) (please provide one line of data per rate code)

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

( CUSTOMER RESPONSIBILITIES

In order for JCI to perform its obligations under this Agreement with respect to the Work, the Assured Performance Guarantee, and the M&V Services, Customer shall be responsible for:

1. Customer is responsible for the regular operations of the water system, including the reduction in water utility operating costs as agreed to in this contract. 2. Customer is responsible for the continued maintenance of the Improvement Measures upon route acceptance and substantial completion, including all water meters and AMI system endpoints. This includes the continuance of all hardware and software annual maintenance agreements and hosting fees. 3. Customer is responsible for providing to JCI notice of any significant changes in schedules, operating hours, conditioned areas, personnel levels, changes in population, commercial, industrial, wholesale account base, credits to water bills, imposed water rationing programs, or any other item which may have an impact on utility consumption and other operating costs. 4. Customer is responsible for the replacement of the Sensus Omni-series measuring chambers for meter sizes 2" and greater. 5. Customer shall notify JCI within forty-eight (48} hours of the failure of any equipment, controls or strategies that might significantly impact this performance contract. 6. Customer assumes responsibility for any damage to the water meters by foreign objects as well as any intentional damage to the water meters by others than JCI personnel or their subcontractors. The Customer assumes responsibility for authorizing any non-metered water usage. 7. Customer accepts responsibility for aggressive degradation in meter accuracy due to water quality issues including, but not limited to, freezing, the presence of sand or other debris, the addition of sequestration agents to the water, damage caused by pressure transients (water hammer}, and the presence of scale caused by hard water. Likewise, Customer accepts responsibility for aggressive degradation in meter accuracy due to changes in the water treatment process after project installation. 8. Customer assumes responsibility for maintaining the average system pressure that was present during the baseline consumption period. A decrease in system pressure may cause subsequent decreases in both billed consumption and water and sewer billable usage. 9. Customer acknowledges that weather may affect water consumption. Changes in the number of degree days and/or annual rainfall amounts may serve to either increase or decrease billed consumption and its associated water and sewer billable usage. 10. Customer acknowledges that demographic shifts (population growth or shrinkage) and changes in commercial business, industrial business and wholesale accounts may affect water consumption and its associated water and sewer billable usage. 11. The baseline consumption shall be defined as the sum of the annual billed consumption as provided to JCI by the Customer and agreed to in this Schedule and the agreed to increase in billed consumption due to improving the accuracy of the water meters. In the event that the post-installation billed consumption does not increase, the Customer acknowledges that the agreed to increase in consumption was not realized may be due to factors beyond the control of JCI, such as changes in weather, demographic shifts, or usage patterns, as applicable. 12. Customer assumes responsibility for complying with any government mandates regarding water source regulations and permits. Should a conflict arise between Customer responsibilities as established by this contract and State of Texas Commission on Environmental Quality or US EPA legal or system operating requirements then the State of State of Texas Commission on Environmental Quality or US EPA legal or system operating requirements will prevail and be followed without penalty to the Customer. 13. Customer assumes responsibility for providing the monthly billing extract as specified in Schedule 3 to JCI in a timely fashion. 14. Customer assumes responsibility for any damage resulting from acts of war and terrorism. 15. Customer agrees to provide data required for the Water Meter Performance Consulting Services to JCI in a timely manner. c Johnson Controls, Inc. Initials: ____ Customer Initials: ____ Pertormance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 107 Schedule3

16. Customer shall be responsible for the following items: a. Providing support to the acoustic leak survey team as requested c b. Promptly making the necessary repairs to the distribution system when correlated by the acoustic leak survey team. c. Providing both photographs and physical dimensions of all leak orifices or breaks along with photographs of the repairs to JCI.

SYSTEM MAINTENANCE PROCESS

4. JCI will respond to 100% of initial service calls on any meter installed as part of this contract, and not signed off/accepted, where the route was entered (opened). Once the meter has been installed properly per the contract and route acceptance has been completed, Customer will be the initial responder to the call. JCI will only be called out to a meter if a problem consists in item 2 below. 5. If the problem has anything to do with workmanship from an installation (during the warranty period), the problem is the responsibility of JCI. Workmanship examples include anything that has not been completed per the contract (e.g. the water meter was not installed per manufacturer and AWWA guidelines). 6. As stated in Section 7 (Warranty) of this contract and expanded upon in Section 1 of Schedule 1, upon sign-off of each route, all responsibility for warranty coverage of installed equipment will be transferred from JCI to the Customer. Further, meters that are "faulty'' due to non-wear related failure such as but not limited to a broken freeze plate, register errors or failure, any End User damages and/or a meter that stops recording water flow after it has already recorded flow are Customer's responsibility.

USE OF, AND ACCESS TO PROJECT CRITICAL EQUIPMENT AND SOFTWARE

Customer agrees to provide unrestricted and timely access to all equipment, software and hardware that is provided through the meter manufacturer as part of this project. This equipment is inclusive of {but not limited to) the following items:

• Handheld Programming Device (FC300SR or the like) • Fixed Base Advanced Metering Infrastructure (AMI) Hardware and Software • Meter programming and interrogation devices • Remote access and administrative privileges to AMI system management software • Any other manufacturer equipment that is critical to installation

UTILITY INTERRUPTIONS AND CUSTOMER SUPPORT

WEEKLY UTILITY DATABASE REFRESH

Customer shall provide a refresh file of entire water utility database as requested by JCI. On a weekly basis the refresh file shall be provided in electronic format and posted to an FTP server mutually agreed to in advance of project Notice to Proceed. The file should be either comma delimited or fixed-width and contain (at minimum) the following fields:

• Service Type (water) ( • Account ID (Location ID) • Address • Cycle/Zone (if applicable) • Route/Book • Reading Sequence • Radio ID (Smartpoint) • Register ID (e.g., AMI#, Register ID, MIU ID) • Meter Number (e.g., Serial#) • Meter Make (Sensus, Badger Meter, etc ... ) • Meter Model (not required) • Meter Size (3/4, 1, 1.5, 2, 3, and 4)

Notes: • The quantities of existing water meters with "Active" accounts are based upon data provided to JCI by the Customer in a billing system extract dated December 11, 2013. Any excess materials will be left with the Customer to be used as bench stock. If JCI is requested to install additional quantities of water meters to complete this project, the total installed unit price per meter will be negotiated at that time. • Meter Access Program: Customer support will be required during implementation to obtain access to meters and to coordinate utility interruptions. When Customer confirms access with building owner JCI shall respond as required to meet the installation schedule and the Customer will not be held responsible for any delays associated with those accounts. JCI personnel will be responsible for adequate notification and coordination with appropriate Customer personnel and end users to facilitate access and minimal disruption. • JCI shall follow the following Access Program: o Written attempt one: JCI will proceed with meter replacement per a scheduled implementation plan. If the installer cannot gain access to the meter (inaccessible), a door hanger with the installer contact phone number to make an arrangement for access, will be left. o Written attempt two: On a second occasion, JCI will attempt to reschedule and access the meter in an attempt to complete the work. If JCI still cannot gain access to the meter, another door hanger will be left. o If access cannot be obtained via "cold-calls", JCI will attempt to contact the end user via telephone to gain access to the meter. A valid telephone attempt is: a) when the End User can be reached; or, b) when a message is left on an answering machine or voice mail. JCI will make a minimum of three telephone attempts utilizing the telephone number supplied by the Customer via the work order data and any other reasonable means available to JCI. A minimum of one telephone call must be attempted on Saturday or on a weekday after 5:00pm. o Written attempt three: On a third occasion, JCI will call for an appointment, and then visit the premise in an attempt to complete the work. If JCI still cannot gain access to the meter, another door hanger will be left. o If 10 business days after JCI delivers the third written attempt, the work order has not been completed and an appointment has not been established, the work order will be returned to the Customer as a "Cannot Complete" order. For project tracking purposes, such orders will be considered complete. A weekly "Cannot Complete" list will be returned to the Customer in an Excel format and at a minimum will contain the following information: o Name o Address o Phone numbers called o Dates door hanger left for each of three written attempts o Dates of written attempts o Dates and time of each of three valid telephone attempts

• Hard to access accounts -Accounts that do not respond to the above attempts process shall be listed by ( JCI on a weekly basis and submitted back to the Customer, and the Customer will then be responsible for gaining access to these accounts; JCI may participate in the scheduling (with the Customer) and shall participate in the meter change-out of these accounts. • Faulty plumbing or abnormal conditions- If the JCI installer identifies a condition in a residence or business that would prevent the meter from being replaced, that account will be submitted by JCI in a list of accounts to return to the Customer, and the Customer will be responsible for repairing the identified problem within a reasonable time period such that repair will not cause a delay in the implementation of this Scope of Work. Examples of abnormal conditions for water meters include but are not limited to: o Faulty curb stop o Broken isolation valve or isolation valve that will not shut-off. o Broken crocks o Corroded plumbing

Johnson Controls, Inc. Initials: ____ Customer Initials: ____

( PRICE AND PAYMENT TERMS

Customer shall make payments to JCI pursuant to this Schedule 4.

1. Work. The price to be paid by Customer for the Work shall be $7,892.803.00. Payments (including payment for materials delivered to JCI and work performed on and off-site) shall be made to JCI as follows:

Contract Contract Contract

c Contract Twelfth Contract Thirteenth Contract

A. Draw Schedule may be escalated, based on the actual Project Installation. B. Payments shall be made to JCI based upon (POC) Percent of Completion. JCI shall bill for materials stored on site or materials stored in a bonded warehouse. JCI shall bill for all work performed pursuant to this contract. C. Payments to JCI are due within 30 days of receipt of invoice by the City of Beaumont. D. The terms of this agreement are based upon Percent of Completion; therefore this agreement shall exclude Retention. E. Upon the securing of funding, the City shall issue JCI a "Notice to Proceed". Work shall commence upon issuance of said Notice.

2. M&V Services. The total price for JCI's M&V Services, as detailed on Schedule 2A of this Agreement, is $1,422,157. This amount will be paid to JCI in annual installments of $254,750. These payments will be due and payable when Customer receives JCI's invoice and in advance of the services JCI is to provide, and shall be made throughout the Guarantee Term. Annual amount due: $254,750 Due Date: First payment due:

( NOTICE TO PROCEED

Johnson Controls, Inc. 3021 West Bend Drive Irving, TX 75063 ATTN: Mrs. Denise Malloy

Re: Notice to Proceed for City of Galveston

Dear Mrs. Malloy:

This Notice to Proceed is being issued by City of Galveston ("Customer'') to Johnson Controls, Inc. ("JCI") pursuant to that certain Performance Contract entered into between Customer and JCI for the purpose of notifying JCI to commence work under such contract.

In the event that this Notice to Proceed is delivered by Customer prior to the execution of the Performance Contract by Customer and JCI, Customer understands and expects JCI will incur significant costs and expenses in complying with this Notice to Proceed. In the event the Performance Contract is not executed by the parties, for any reason, Customer agrees to pay JCI for its costs and fees incurred in complying with this Notice to Proceed on a time and material basis. Customer also agrees JCI shall be entitled to a reasonable markup thereon for profit and overhead. Customer agrees to pay amounts billed by JCI no later than five (5) days after Customer receives JCI's payment application. JCI will continue to submit payment applications to Customer until the Performance Contract is executed. Once the Performance Contract is executed, JCI will begin submitting its payment applications to Customer in accordance with the terms and conditions set forth therein. Any amounts already paid by Customer will be credited towards the Performance Contract price. c By signing and dating this Notice to Proceed, the parties hereto agree to these terms and represent and warrant they have the authority to execute this Notice to Proceed on behalf of their respective organizations.

CITY OF GALVESTON

Signature: ______

Printed Name: ______

Title: ______

Date: ______

ACKNOWLEDGED & AGREED TO:

JOHNSON CONTROLS, INC.

Signature: ______

Printed Name: ______

Title: ______

Date: ______

Pertormance Contract (Rev 15) Johnson Controls, Inc. -Proprietary © 2008 Johnson Controls, Inc. 1 Attachment 2 c CHANGE ORDER Performance Contract dated '20 between Johnson Change Order No. Date (mo/day/yr) Controls, Inc. and Customer

Customer nnselt clls!oiilei Namel

The above referenced Performance Contract is hereby modified to the extent described below in accordance with the Terms and Conditions of the CHANGE ORDERS section thereof.

Scope of Work changed as follows:

$ Total amount of this Chanqe Order ......

$ Total Performance Contract amount as revised by this Change Order ......

The time for completion is: D increased, D decreased, D unchanged. (rna, day, yr) c The new completion date resulting from this Change Order is: [check if applicable] Assured Performance Guarantee changed as follows:

Unless specifically changed by this Change Order, all terms, conditions and provisions of the above referenced Performance Contract remain unchanged and in full effect.

JOHNSON CONTROLS, INC. CUSTOMER

Signature: Siqnature:

Printed Name: Printed Name:

( CERTIFICATE OF SUBSTANTIAL COMPLETION

PARTIES: JOHNSON CONTROLS, INC. ("JCI") 3021 West Bend Drive Irving, TX 75063

City of Galveston ("Customer'') 823 Rosenberg Galveston, TX 77553

PROJECT: City of Galveston; Performance Contract dated ______, 20_ between JCI and Customer

By executing this Certificate of Substantial Completion, Customer acknowledges the following:

a. The work set forth in the Performance Contract is substantially complete.

b. Customer has received the manuals, warranty information, and training required under the Performance Contract.

c. The following punch list items must be completed by JCI (check as applicable):

D punch list attached D punch list complete

d. Upon completion of the punch list items, or if such punch list items are complete, JCI and Customer c shall sign the Certificate of Final Completion attached hereto. Dated ' 20

CUSTOMER: JOHNSON CONTROLS, INC.

Signature: ______Signature: ______

Printed Name :. ______Printed Name:. ______

Title:______Title: ______

( Attachment 4 CERTIFICATE OF FINAL COMPLETION

( PARTIES: JOHNSON CONTROLS, INC. ("JCI") 3021 West Bend Drive Irving, TX 75063

and

City of Galveston ("Customer") 823 Rosenberg Galveston, TX 77553

PROJECT: City of Galveston; Periormance Contract dated ~===== _, 20_ between JCI and Customer

By executing this Certificate of Final Completion, Customer acknowledges the following:

a. The work set forth in the Periormance Contract has been reviewed and determined by Customer to be fully complete.

b. Customer accepts the work as complete and hereby releases JCI's obligations under any periormance and payment bonds posted for the project as of the date set forth below.

Dated , 20 c CUSTOMER: JOHNSON CONTROLS, INC. Signature:______Signature: ______

Printed Name: ______Printed Name: ______

Title:______Title:______

Project Selection

Rev. July 23, 2014

Presented by:

A Denise Malloy Craig Hannah Agenda

1. History 2. Proposed Scope of Work 3. Benefits 4. Proposed Guarantee Measurement & Verification 5. Business Case 6. Questions & Answers 7. Next Steps History History

 AMI Fixed Based System  System-wide Leak Detection System  Large Meter Typing  Large Meter Accuracy  Intermediate Meter Typing  Corrected Billing System  Greatly Enhanced Customer Service

4 Proposed Scope Proposed Scope of Work

AMI System • Fixed-network across the entire island • Hosted network (Itron Cloud Services) • Reuse 24,208 water meters and registers • Full-time AMI system supervisor • Mobile AMR capable Proposed Scope of Work

Itron Data Analytics Software Package Proposed Scope of Work

Data Analytics – Customer Service Proposed Scope of Work

Data Analytics – Revenue Assurance Proposed Scope of Work

Customer Web Portal Proposed Scope of Work

Leak Detection System • Permanently deployed across the island • mlogonline analysis • 80-hour per month on-site services • Leak Sensor management • Leak correlation • Asset location and field data collection • Training • Correlator and ground microphone Proposed Scope of Work

mlogonline web site Proposed Scope of Work

Water Meter Replacement • Replace 2” and smaller water meters that have reached the end of their design life • (231) Badger M25 0.625” x 0.75” meters • (105) Badger M70 1” meters • (54) Badger M120 1.5” meters • (58) Badger M170 2” meters • Refreshes metering system • Use AMI system to track remaining life Proposed Scope of Work

Intermediate Meter Typing • Most 2” meters are grossly oversized • Maintains base revenue, increases volume revenue • Example • 2” Badger M170 • Low Flow Rate Accuracy (95%) = 1.5 gpm • Low Normal Flow Rate Accuracy (100%) = 2.5 gpm • 2” Badger E-Series • Low Flow Rate Accuracy (95%) = 0.5 gpm • Low Normal Flow Rate Accuracy (100%) = 1.5 gpm • One (1) 1.5” account and eighty-two (82) 2” accounts Proposed Scope of Work

Large Meter Typing • Turbine meters (Badger TSM-series) are not designed to measure usage at low flow rates • Sensus Omni C2 measuring chamber • Accurately measures usage at low flow rates • Fits into existing Badger TSM meter body • One (1) 3” meter, two (2) 4” meters, and seven (7) 6” meters Proposed Scope of Work

Miscellaneous Items • New meter boxes and lids for: • 3” meter serving account number 354110 • 3” meter serving account number 610901 • 4” meter serving account number 645680 • 3” meter serving account number 022640 • 3” meter serving account number 646530 • New vault lids for: • 6” meter serving account number 631790 • 0.75” meter serving account number 572972 • 0.75” meter serving account number 000721 Proposed Scope of Work

Miscellaneous Items • Replaced failed meter isolation valves for: • 3” inlet and outlet valves serving account number 543770 • 2” inlet valve serving account number 014800 • 4” inlet valve serving account number 161140 • 4” outlet valve serving account number 652510 • 3” inlet valve serving account number 610901 • 6” inlet valve serving account number 595800 • Relocate backflow prevention device downstream of meter for: • Account number 631470 • Account number 022180 • Cut-in new bypass lines for: • 3” line at account number 630242 (UTMB – Shriner’s Hospital) • 6” line at account number 062660 (UTMB – Rebecca Sealy Hospital) Proposed Scope of Work

Miscellaneous Items • New meter vault and lid for account • New meter vault and lid for account number 667510 number 631240 Proposed Scope of Work

Miscellaneous Items • Rework entire setting for account number 631800 • Existing backflow prevention device is leaking and located upstream of meter • No strainer or test port • Solution • Cut-in new 10” plate strainer • Install a new spool piece with a test port and valve downstream of meter • Install new backflow prevention device 50” downstream of new spool piece with test port Benefits Benefits – Water Loss Study

Source • Automated leak detection = $207,090 (50% Guarantee Factor) • 1.5” & 2” meter typing = $29,607 • Large meter typing = $52,295 • Theft of service and tampering = $23,379 • Large meter accuracy = $87,174 • Under-billed account = $317 • Candle Wood Suites Hotel billing error = $29,178 • Large meter reading & billing system issues = $52,455 Project Benefit

Percentage Amount Item Description Total Amount Claimed Claimed Failed ORION CE Endpoint Benefits $199,000 100.00% $199,000 Account No. 021983, UTMB, 600 St. - Chilling $202,551 0.00% $0 Account No. 021723, UTMB Bldg. #4, 1000 Ave. B $101,783 0.00% $0 Account No. 022180, UTMB Bldg. #21, 600 Ave. B $35,336 0.00% $0 I. Meter Reading Avoided Labor Costs $115,828 100.00% $115,828 II. Meter Reading Avoided Vehicle Costs $86,721 50.00% $43,361 III. Meter Replacement Labor $3,183 100.00% $3,183 IV. Badger ORION CE Maintenance Fee $1,000 0.00% $0 V. Disconnects & Reconnects $3,200 100.00% $3,200 VI. Lost Revenue from Estimated Readings $1,200,000 50.00% $600,000 VII. Reduction in Customer Complaint Calls $28,080 100.00% $28,080 VIII. Rebills/Adjustments to Bills $0 0.00% $0 IX. Reduction in Accounts Receivable $1,101,424 15.00% $165,214 X. Reduction in Credits for Customer Complaints $1,620,000 12.00% $194,400 XI. Lost Revenue from Theft of Service $0 0.00% $0 Total $4,698,107 $1,352,265

23 Benefits – O & M

Percentage Amount Description Total Amount Claimed Claimed Failed ORION CE Endpoint Benefits $199,000 100.00% $199,000 Account No. 021983, UTMB, 600 St. - Chilling $202,551 0.00% $0 Account No. 021723, UTMB Bldg. #4, 1000 Ave. B $101,783 0.00% $0 Account No. 022180, UTMB Bldg. #21, 600 Ave. B $35,336 0.00% $0 Meter Reading Avoided Labor Costs $115,828 100.00% $115,828 Meter Reading Avoided Vehicle Costs $86,721 50.00% $43,361 Meter Replacement Labor $3,183 100.00% $3,183 Badger ORION CE Maintenance Fee $1,000 0.00% $0 Disconnects & Reconnects $3,200 100.00% $3,200 Lost Revenue from Estimated Readings $1,200,000 50.00% $600,000 Reduction in Customer Complaint Calls $28,080 100.00% $28,080 Rebills/Adjustments to Bills $0 0.00% $0 Reduction in Accounts Receivable $1,101,424 50.00% $550,712 Reduction in Credits for Customer Complaints $1,620,000 50.00% $810,000 Lost Revenue from Theft of Service $0 0.00% $0 Total $4,698,107 $2,353,364 Proposed Measured Savings Plan

• Automated Leak Detection System • $207,090 guaranteed annual benefit (50% guarantee factor applied) • 80 hours on-site per month leak system consulting services for years 1 & 2; 40 hours on-site per month for year 3 and following • Mutually agreeable benefit

• 1.5” & 2” Meter Typing • $29,607 guaranteed annual benefit • Badger M170 is 95% accurate at 1.5 gpm; Badger E-165 is 95% accurate at 0.50 gpm. • Badger E-Series meters cannot be logged; Mutually agreeable benefit • AMI system monitors usage of these services Proposed M & V Plan

• Large Meter Typing • $52,295 guaranteed annual benefit • One-time post-retrofit measurement with the data loggers and MeterSizer software analysis

• Theft of Service and Tampering • $23,379 guaranteed annual benefit • New locking, stainless steel bypass meter isolation valve handles • City to provide locks • One-time post-retrofit inspection to confirm that locking handles and locks have been installed; Smashed register replaced • AMI system monitors bypass meter usage at these and other services Proposed M & V Plan

• Large Meter Typing • $52,295 guaranteed annual benefit • One-time post-retrofit measurement with the data loggers and MeterSizer software analysis

• Large Meter Accuracy • $87,174 guaranteed annual benefit • Annual testing and repair of these large water meters • Annual testing and repair of 1/3 of the large meters

• Under-billed Account (Acc. # 765590) • $317 guaranteed annual benefit • 6” meter billed as a 4” meter • One-time post-retrofit verification to confirm that the change has been made in the billing system Proposed M & V Plan

• Candle Wood Suites Hotel Billing Error • $29,178 guaranteed annual benefit • Compound meter, only main (turbine) meter billed • No billed usage since November 2012 • Mutually agreeable benefit

• Large Meter Reading & Billing System Issues • $52,455 guaranteed annual benefit • 10 accounts with substantial decreases in billed usage since 2009 • 3 accounts at UTMB with $392,125 in calculated benefit not claimed • Mutually agreeable benefit • AMI system monitors usage at these accounts Proposed M & V Plan

Amount Description Claimed Failed ORION CE Endpoint Benefits $199,000 Meter Reading Avoided Labor Costs $115,828 Meter Reading Avoided Vehicle Costs $43,361 Meter Replacement Labor $3,183 Disconnects & Reconnects $3,200 Lost Revenue from Estimated Readings $600,000 Reduction in Customer Complaint Calls $28,080 Reduction in Accounts Receivable $550,712 Reduction in Credits for Customer Complaints $810,000 Total $2,353,364

All O&M benefits are mutually agreeable Business Case Business Case Financial Summary Option 1 Project Investment: $ 7,892,802 Guaranteed Annual Savings: $ 1,750,806 Simple Project Payback: 5 Years Project Term: 5 Years Preliminary Interest Rate Quote: 2.65% Business Case Financial Summary Option 2 Project Investment: $ 7,892,802 Guaranteed Annual Savings: $ 950,475 Simple Project Payback: 8 Years Project Term: 8 Years Preliminary Interest Rate Quote: 2.65% Business Case Financial Breakdown Scope Cost Savings Operations Simple & Maintenance Payback (O&M) Savings AMI $ 5,840,673 $105,329 $881,939 5.9 years Leak $ 1,709,581 $207,090 $0 8.2 years Detection Large Meter $ 342,548 $169,076 $0 2.0 years Right Size/Right Typing

Highly skilled Water Operation Solutions Leader included. Questions & Answers Next Steps?

Tested but Not in Database Account Meter Number Address Customer Install Date Model Type Size SN 642B00WT 04178494 5100 Port Industrial Main WWTP 1/19/2005 400 Compound 3" 04178494 001680WT 05022166 11745 FM 3005 Escapes 2/3/2005 450 Turbine Horizontal 3" 05022166

192300WT 05022168 2312 Avenue C The Tremont House 2/28/2005 450 Turbine Horizontal 3" 05022168

022280WT 05022170 1000 Avenue D UTMB Parking Garage 5/4/2005 450 Turbine Horizontal 3" 05022170 022150WT 05009404 1316 Avenue C UTMB Materials Management 8/6/2005 400 Turbine Horizontal 3 05009404

667510WT 04196499 5100 Port Industrial Main WWTP 1/20/2005 1000 Turbine Horizontal 4" 04196499

645680WT 04178504 5200 Industrial Main WWTP 2/11/2005 800 Compound 4" 04178504

120503WT 04196501 2100 Avenue P 1/2 Beach CentraL 2/15/2005 1000 Turbine Horizontal 4 04196501

182710WT 04196500 621 - 21st Jackson Square 3/1/2005 1000 Turbine Horizontal 4" 04196500 645850WT 05022163 7312 Seawall The Palms Condominiums 3/9/2005 1000 Turbine Horizontal 4" 05022163 021771WT 05012261 400 Avenue B UTMB Unit D M 37 9/17/2005 800 Compound 4" 05012261 022430WT 05012262 Waverly PAV Jeannie Sealy UTMB Sealy Smith Building 9/17/2005 800 Compound 4" 05012262 163042WT 05012265 815 - 25th Street City of Galveston 10/29/2005 800 Compound 4" 05012265 585240WT 04196490 302 29th Street City of Galveston (Meter Shop) 1/18/2005 2000 Turbine Horizontal 6" 04196490

In Database but Not Tested overted LocNo. SerialNo ServiceAddress Cname InstallDate Service Size U ACCT Status 000721 06103139H 6431 CENTRAL CITIES BLVD BUILDHAMPTON INN & SUITES 08/26/2009 Water 3 CURRENT 021780 5021999 700 AVE D U T M B BLDG #12 05/10/2005 Water 3 CURRENT 021800 05012257H 1716 AVE B U T M B BLDG #39 12/10/2005 Water 3 CURRENT 021910 PULLED114 728 AVE B MARINE, BIOMEDICAL 02/06/1986 Water 3 FINAL 022310 05009402H 1200 AVE B U T M B BLDG #20 05/06/2005 Water 3 CURRENT 022520 2212320H 1716 AVE B UTMB 07/24/1989 Water 3 FINAL 022640 06100115H 500 AVE A U T M B 03/21/2006 Water 3 CURRENT 064100 04030685H 1200 MARKET (AVE D) U T M B 07/02/2004 Water 3 CURRENT 160770 06100116H 920 23RD ST GALVESTON HISTORICAL FOUNDA 03/06/2006 Water 3 CURRENT 172702 5022186 1110 21ST ST G.I.S.D. 01/17/2006 Water 3 CURRENT 173360 5022901 200 STEWART BEACH STEWART BEACH PAVILLON 01/18/2006 Water 3 CURRENT 173570 04178498H 102 EAST SEAWALL BLVD COMFORT INN & SUITES 02/28/2005 Water 3 CURRENT 284120 05009298H 4100 AVE Q 1/2 GALVESTON COLLEGE 03/11/2008 Water 3 CURRENT 312805 08184589H 4101 AVE P GALVESTON ISD / BALL HIGH SCHO 06/28/2012 Water 3 CURRENT 323200 5022849 4115 AVE O GALVESTON IND SCHOOL DIST 12/19/2005 Water 3 CURRENT 353612 5021998 1524 42ND STREET G.I.S.D. 12/20/2005 Water 3 CURRENT 572972 114531 2700 AVE E CENTERPOINT ENERGY 07/12/2006 Water 3 CURRENT 603680 06566892H 6327 STEWART ROAD WHAT A BURGER #81 02/26/2008 Water 3 CURRENT 631910 5022171 0 WESTERN GEOPHYSICAL CHOVEST SOUTHWEST HOLDING, 02/21/2006 Water 3 CURRENT 633100 11409410H 200 SEAWOLF PARK--SOUTH CAMTEXAS A & M UNIV AT GALVESTON 10/13/2011 Water 3 CURRENT 633300 11409411H 200 SEAWOLF PARK--NORTH CAMTEXAS A & M UNIV AT GALVESTON 10/13/2011 Water 3 CURRENT 640101 06101517H 9420 SEAWALL BUILDING 54 UNIOCEAN GROVE CONDOMINIUM O12/04/2006 Water 3 CURRENT 640131 08033942H 8027 AIRPORT BLVD INN AT THE WATER PARK 03/24/2009 Water 3 CURRENT 641041 06567087H 3606 89TH ST BUILDING COMFORT SUITES I 08/21/2007 Water 3 CURRENT 642630 5022172 1601 AVE B GALVESTON HOUSING AUTHORITY 02/09/2005 Water 3 CURRENT 642642 05012258H 1601 AVE B {MAGNOLIA HOMES}GALVESTON HOUSING AUTHORITY 10/25/2005 Water 3 CURRENT 644430 5022111 2825 61ST ST HOSPITALITY HOTEL'S INC. 01/27/2006 Water 3 CURRENT 644670 05009398H 7312 SEAWALL BLVD THE PALMS CONDOMINIUM ASSO 02/20/2006 Water 3 CURRENT 646631 12522917H 9550 SEAWALL BLVD COURTYARD BY MARRIOTT 08/31/2012 Water 3 CURRENT 646632 12522918H 9540 SEAWALL BLVD MARRIOTT TOWN PLACE SUITES 08/31/2012 Water 3 CURRENT 649500 5291433 2929 83RD STREET G.I.S.D. 01/19/2006 Water 3 CURRENT 661760 06103140H 6303 AVE J OMKAR GROUP GALVESTN LLC 03/03/2008 Water 3 CURRENT 661808 8034638 808 61ST ST BUILDING CANDLE WOOD SUITES 07/03/2008 Water 3 CURRENT 668800 04029391H 6202 AVE J INLAND SOUTHWEST MANAGEME 04/08/2004 Water 3 CURRENT 668890 04029390H 6228 AVE J INLAND SOUTHWEST MANAGEME 04/12/2004 Water 3 CURRENT 180060 05009305H 621 21ST ST JS ACQUISTION GROUP, LP 02/10/2005 Water 3 CURRENT 020015 5014672 102 6TH SPRINKLER U T M B 07/28/2006 Sprinklers 4 CURRENT 020065 3049098 6TH & MARKET SPRINKLER U T M B 07/28/2006 Sprinklers 4 CURRENT 120170 5114222 2024 SEAWALL FIRELINE GALVEZ HOTEL 05/24/2006 Water 4 CURRENT 410002 04029748H 601 54TH STREET LAW CENTER GALVESTON COUNTY 01/18/2006 Water 4 CURRENT 470730 6097413 4818 AVE R 1/2 WILLIAM B TRAVIS APARTMENTS 05/17/2006 Water 4 CURRENT 631270 4196502 0 PELICAN ISLAND LAREDO CONSTRUCTION 02/02/2005 Water 4 CURRENT 631410 5022847 0 PIER 9 BEATTY STREET PROPERTIES INC 01/24/2006 Water 4 CURRENT 644260 05012264H 5310 SEAWALL BLVD LANDRY'S AT SAN LUIS 02/16/2006 Water 4 CURRENT 649070 5022913 7310 SEAWALL BLVD BY THE SEA 02/13/2006 Water 4 CURRENT 652510 05011220H 4925 FORT CROCKETT SEASIDE VILLAGE 06/30/2005 Water 4 CURRENT 764590 06104548H 10811 SAN LUIS PASS SEASCAPE HOMEOWNERS ASSN 03/01/2006 Water 4 CURRENT 870118 05011522H 27020 ESTUARY DRIVE BUILDING BAYWATER CONDOMINIUM ASSO06/19/2006 Water 4 CURRENT 870119 05368097H 26540 MANGROVE DR BUILDING BAYWATER CONDOMINIUM ASSO06/21/2006 Water 4 CURRENT 000810 3049081 5600 SEAWALL BLVD GALVESTON CONVENTION CENTER 08/26/2009 Water 6 CURRENT 001550 04031073H 11743 FM 3005 ESCAPES! TO GALVESTON/ORANG 02/25/2012 Water 6 CURRENT 016585 11237023H 444 BARRACUDA U T M B 01/30/2012 Water 6 CURRENT 017160 06104550H 921 MARINE MARINA POINTE CONDOS 02/27/2006 Water 6 CURRENT 020010 05219434H 102 6TH--BLDG 45 U T M B 07/28/2006 Water 6 CURRENT 020060 05021910H 6 TH & MARKET U T M B 07/28/2006 Water 6 CURRENT 021735 05013400H 1000 AVE B U T M B BLDG #54 05/02/2005 Water 6 CURRENT 022260 05013409H 1106 AVE C U T M B BLDG #57 05/03/2005 Water 6 CURRENT 022440 26024556 0 WAVERLY PAV JENNIE S U T M B BLDG #47 09/01/1992 Water 6 CURRENT 022750 3049080 1101 HARBORSIDE DRIVE (BLDG U T M B 01/19/2005 Water 6 CURRENT 173671 07050751H 500 SEAWALL (141-UNITS) EMERALD BY THE SEA CONDOMIN09/29/2009 Water 6 CURRENT 173741 04178486H 801 EAST BEACH DR BUILDING TRADE WINDS/THE BEACH CLUB C07/29/2010 Water 6 CURRENT 182670 7003703 2020 AVE E .1894 INC 08/03/1981 Water 6 FINAL 192220 1154631 2115 AVE C .MITCHELL, GEORGE 07/22/1997 Water 6 FINAL 231514 7376566 1500 AVE N 1/2 FIRE LINE G.I.S.D. 01/04/2008 Water 6 CURRENT 231515 7354989 1500 AVE N 1/2 FIRE LINE G.I.S.D. 01/04/2008 Water 6 CURRENT 384820 (blank) 4400 AVE N THE PARK AT CEDAR LAWN (blank) Water 6 FINAL 403600 5833 2618 AVE J .2618 BROADWAY 08/17/1989 Water 6 FINAL 410003 4034973 5700 AVE H JAIL GALVESTON COUNTY 01/18/2006 Water 6 CURRENT 410004 04029749H 5800 AVE H SITE PLANT GALVESTON COUNTY 01/18/2006 Water 6 CURRENT 630000 10018684H 602 PENNZOIL RD BJ SERVICES/BAKER HUGHES 03/17/2010 Water 6 CURRENT 630700 09111300H 2929 TODD ROLLS ROYCE COMMERCIAL MARI 04/29/2009 Water 6 CURRENT 631360 5012211 0 MAG COBAR MIDSTREAM FUEL SERVICE, LLC 01/04/2006 Water 6 CURRENT 631465 43638534H 3800 JACK H. FIELD BLVD--B GALVESTON TERMINALS INC 03/01/2012 Water 6 CURRENT 635550 04031383H 602 SEAWOLF BLVD UNIVERSITY APARTMENTS-GALVES 03/19/2008 Water 6 CURRENT 640040 04178481H 2026 LOCKHEED SCHLITTERBAHN WATER PARK 02/03/2006 Water 6 CURRENT 425340 (blank) 4400 AVE N THE PARK AT CEDAR LAWN (blank) Water 6 FINAL 643755 08762321H 10327 SEAWALL BLVD DIAMOND BEACH HOMEOWNER'S 04/24/2009 Water 6 CURRENT 644120 7026405 3002 69TH ST STEWARTS LANDING APTS 04/03/1998 Water 6 FINAL 644160 09496378H 601 51ST ST THE SALVATION ARMY 03/03/2011 Water 6 CURRENT 644760 1160765 6100 CENTRAL CITIES BLVD--FIRERANDALL'S 12/31/1997 Water 6 FINAL 644770 06104549H 5400 SEAWALL BLVD (HILTON HOSAN LUIS HOTEL 03/23/2006 Water 6 CURRENT 761133 04178476H 26555 A-JETTY DR BUILDING THE VILLAS OF POINTE WEST CON09/06/2006 Water 6 CURRENT 769115 05250212H 4040 13 MILE ROAD GALVESTON ISLAND STATE PARK 08/01/2011 Water 6 CURRENT 870017 04177558H 4161 POINTE WEST DR BEACH CLTHE VILLAS OF POINTE WEST CON03/15/2006 Water 6 CURRENT 880110 9105460 13 MILE ROAD GALVESTON COUNTY MUD #29 07/03/1991 Water 6 FINAL 074320 5022011 410 AVE F THE COURTLANDS APARTMENTS 12/05/2006 Water 1.5 CURRENT

1 # of 1.5" Meters 36 # of 3" Meters N 13 # of 4" Meters N 36 # of 6" Meters N 86 Total Not Teste Survey Notes Comparison Notes Did not find in DB Did not find in DB backflow upstream of meter Did not find in DB built in strainer Did not find in DB Did not find in DB built in strainer, needs vault lid Did not find in DB Did not find in DB backflow upstream of meter Did not find in DB built in strainer Shows Current Address with Acct# 180060, SN 05009305H and 3" meter size, JS ACQUISTION GROUP, LP Shows Current Address with Acct# 644670, SN 05009398H and 3" meter size, Palms Condos Shows Current Address with Acct# 016503, SN 05012266H and 4" meter size, UTMB Did not find in DB Did not find in DB Did not find in DB

Comparison Notes

Survey shows meter pulled, but still in DB Survey shows meter pulled, but still in DB Survey shows meter pulled, but still in DB

Survey shows meter inactive, but still in DB

Survey shows meter pulled, but still in DB