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District, (i) the City agrees to allow the extension, improvement of, and connection to City water <br />facilities to provide water service to the District; (ii) the City agrees that it has sufficient capacity <br />to serve the District; (iii) upon completion of each phase of the water facilities constructed by or <br />on behalf of the District, to serve the District, the District shall convey such water facilities to the <br />City for ownership, operation, and maintenance which facilities shall become part of the City's <br />water system in accordance with the Utility Agreement; (iv) users within the District receiving <br />water service from the City shall be customers of the City; and (v) rates and charges for such <br />customers shall be equal and uniform to those charged to other similar classifications of City users <br />that are not located within the City. <br />Section 3.02 Wastewater Service. The City shall provide wastewater service to the District. <br />The City hereby agrees to allow the extension, improvement of, and connection to City wastewater <br />facilities to provide service to the District. At the time of execution of this Agreement, the City <br />agrees that it has sufficient capacity to serve the District. Upon completion of each phase of the <br />related wastewater collection and transportation facilities constructed by or on behalf of the <br />District, to serve the District, the District shall convey such wastewater facilities to the City for <br />ownership, operation, and maintenance, which facilities shall become part of the City's wastewater <br />system in accordance with the Utility Agreement. Users of wastewater service within the District <br />will be customers of the City. Rates and charges for such customers shall be equal and uniform to <br />those charged to other similar classifications of City users that are not located within the City. <br />ARTICLE IV. <br />AUTHORITY <br />Section 4.01 Authority; Conflict. This Agreement is authorized and entered into under the <br />statutory authority of Section 54.016 of the Texas Water Code, Section 212.172 of the Texas Local <br />Government Code and Chapter 70 of the City Code. The requirements of Chapter 70 of the City <br />Code, as modified by this Agreement, the Development Agreement, the Strategic Partnership <br />Agreement, and/or the Utility Agreement, have been or will be satisfied. The Parties intend this <br />Agreement to guarantee the continuation of the extraterritorial status of the Property, authorize <br />certain land uses and development on the Property, provide for infrastructure for the Property, and <br />provide other lawful terms and consideration. Except as expressly set forth in this Agreement, the <br />Development Agreement, the Strategic Partnership Agreement, and the Utility Agreement, no <br />additional documents, materials, information, payment of fees, or other actions shall be required <br />to comply with Chapter 70 of the City Code. To the extent there is a conflict between this <br />Agreement, the Development Agreement, the Strategic Partnership Agreement, or the Utility <br />Agreement and Chapter 70 of the City Code, the terms of this Agreement, the Development <br />Agreement, the Strategic Partnership Agreement, or the Utility Agreement, as applicable, shall <br />control. <br />Section 4.02 Vested Rights. Execution of this Agreement, under Section 212.172 of the Texas <br />Local Government Code, constitutes a permit under Chapter 245 of the Local Government Code. <br />ARTICLE V. <br />ISSUANCE OF BONDS AND TAX RATE <br />960913 4 <br />