Ord 1985-117 - Laserfiche WebLink

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shall have an additional forty-five (45) days to post with the party commencing construction cash or an irrevocable letter of credit from a Texas financial institution for its pro-rata share of the costs of the regional facilities. Should no party contact in writing the party sending such notice of intended construction within the forty-five (45) day period, that party electing to commence construction shall be authorized to proceed. The beneficial and legal title to the regional facilities shall pass to the City at the times and under the conditions specified in Paragraph IV A ( 1). No other joint participant in the construction of the Service Plan shall be allowed to use capacity created by such regional facilities constructed in advance until such party or person has paid its pro-rata share of the costs of such regional facilities plus actual interest cost to the party or parties constructing the facilities in advance. It is expressly understood and agreed by the parties that the Service Plan of the City is subject to modification from time to time as required by changes in timing of construction, sizing, cost estimates, and types and numbers of regional facilities needed. It is specifically agreed that the need for regional facilities in advance of the anticipated schedule or the City's inability to obtain necessary permits may require such modification of the Service Plan. It is further understood and agreed by the parties that should any party be unable for any reason to meet its obligations with respect to the financing or construction of facilities as scheduled and set out in the Service Plan, the City, Storm Development or the District, after forty-five (45) days written notice by certified mai I, return receipt requested to the other parties, may, but is not obligated to, step in and assume those obligations. A party assuming such obligations shall post an irrevocable letter of credit, from a Texas financial institution, with and payable to the party electing to commence construction so as to cover the cost of the construction obligations assumed, and the party electing to commence construction may draw against the letter of credit pro-rata as the construction progresses so as to pay pro-rata the obligations assumed. If no other party assumes the obligation of the party unable to proceed, the party needing to construct facilities as scheduled may proceed to construct the scheduled facilities to the size and capaci ty to meet its needs. B. Storm Development and the District agree to cooperate and to work with the City to plan, fund and construct the Service Plan in which the District and the City will participate in the future. C. It is understood and agreed by the parties that Storm Development or the District, as appropriate, and the City intend to enter into an agreement for the operation of the District's utility systems as set forth in Article IV A below. The District and the City agree to cooperate in the establishment of water and wastewater rates and in the collection of the revenues from customers. The City shall on a monthly basis bill and collect from District customers on behalf of the District and itself. The City and the District shall agree to set and charge rates to the District's customers from time to time in an amount sufficient to cover the City's water and wastewater rates and to meet the District's revenue requirements for administration, maintenance of facilities, debt service and any other revenue needs of the District. The District's portion of the rates shall be paid to it by the City on a monthly basis. The City agrees that its records shall be open to inspection by the District's auditors in compliance with the auditing requirements of the Texas Water Commission. D. The District agrees to establish and collect water and wastewater capital recovery fees from in-district customers, which fees shall be no less than $2,000.00 per living unit equivalent. The District shall deposit in a separate escrow account in a financial institution in San Marcos, Texas said fees which may be invested as authorized by law for District funds. The funds on deposit shall be accounted for as to principal, A:SMMUDl.3-4 (1/22/86)