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<br />the design and construction management for the Regional <br />facilities, both water and wastewater, shall be under the <br />direction and supervision of the respective engineer for each <br />district or developer, with such responsibility being divided <br />such that the regional facilities on the east side of IH-35 <br />including the construction of the water main across Interstate 35 <br />to the east side of the Interstate are the responsibility of the <br />district engineer or engineers of Hays County Municipal Utility <br />Districts Nos. 2 and 3 and those facilities on the west side of <br />IH-35 including the construction of the wastewater main across <br />Interstate 35 to the east side of the Interstate are the <br />responsibility of the district engineer or engineers for this <br />district and the San Marcos Municipal Utility District No. 2. <br />Subject to the consent of the District, Storm Development may <br />serve as the project manager for the construction of all regional <br />water and wastewater facilities to be constructed or acquired by <br />this District as set forth in Exhibit "B" hereto. It is also <br />understood that Storm Development and the District shall <br />construct internal water, wastewater and drainage facilities to <br />serve the needs of the District as indicated in the Service Plan, <br />and the City shall have no obligation with respect to financing <br />or paying for such construction or such facilities. Storm <br />Development or the District shall cause to be designed and <br />constructed water wells and treatment facilities, transmission <br />mains, water storage reservoirs, pumping improvements and the <br />internal distribution system in accordance with City standards, <br />specifications and utility service plans. The overflow <br />elevations of the water storage reservoirs of the District shall <br />be designed to meet the City's specifications in order that said <br />reservoirs may be integrated into the City's water system. Storm <br />Development or the District shall also cause to be designed and <br />constructed any internal wastewater treatment and disposal <br />facilities and the internal wastewater collection system in <br />accordance with the plans prepared by the engineer for Storm <br />Development or the District, which plans shall meet the <br />standards, specifications and utility service plans of the City <br />for similar facilities. Construction of any facility shall not <br />commence unless the plans and specifications therefor have been <br />approved by all governmental entities having jurisdiction. The <br />City shall have the right to inspect the facilities and to <br />require payment of its standard City fees for construction plan <br />review and construction inspection undertaken by the City. <br />Provided, however, the District and/or Storm Development shall <br />have the right to impose specifications and requirements for <br />construction and installation which exceed or are more <br />restrictive than those established by the governmental agencies. <br />Upon the issuance and sale of its bond anticipation notes or <br />bonds for such purposes, the District shall pay Storm Development <br />the cost of construction of any facilities constructed by Storm <br />Development to the extent authorized by the Texas Water <br />Commission. To the extent the District is not permitted to pay <br />Storm Development for any facility for capacity necessary to <br />serve the District, Storm Development shall dedicate such <br />facility to the District without compensation. Provided, <br />however, this obligation to dedicate without compensation shall <br />have no effect on the City's obligations in Section G below to <br />reimburse Storm Development for construction of one-half of the <br />City's pro-rata share of the 1990 utility system. It is further <br />understood and agreed by the parties that in the event a party <br />needs to construct regional facilities in advance of the schedule <br />set forth for joint participation by the parties for construction <br />of regional facilities prescribed in the Service Plan with or <br />without other persons not a party to this Agreement, the party <br />needing the additional regional facilities may cause construction <br />of such facilities to occur at its expense. Before commencing <br />such construction, such party shall 'first send written notice of <br />its intent to all other parties by certified mail, return receipt <br />requested, to allow other parties to participate in the advance <br />construction. Should any party elect within forty-five (45) days <br />of such notice to participate in advance construction that party <br />shall give written notice by certified mai I, return receipt <br />requested, to the party electing to commence construction and <br /> ~Z\: SMMUD1. 3-3 (1/22/86) <br />