Ord 2022-005/Granting the Consent of the city of San Marcos to the creation of Hays County Municipal Utility District No. 8 including approx 567.663 Acreas vicinity of old Bastrop Hwy. Between Redwood Rd and San Marcos River.

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"Parties" and "Party" means collectively and individually, as the context requires, each of the City, Owners, and, upon execution of a joinder to this Agreement, the District. "Utility Agreement" means that certain utility agreement to be entered into between the District and the City governing the provision of utility service to the Property. ARTICLE II. CREATION OF DISTRICT Section 2.01 Consent to Creation of District. The City acknowledges Owners' request, in accordance with Section 54.016 of the Texas Water Code, for the creation of the District that is authorized to exercise all powers granted to municipal utility districts pursuant to Article XV1, Section 59 of the Texas Constitution, Chapters 49 and 54 of the Texas Water Code, as amended, and all other constitutional provisions, laws, and regulations presently existing or hereafter enacted. On the Effective Date, the City has approved an ordinance (the "Consent Ordinance"), the form of which is attached hereto as Exhibit C, consenting to the creation of the District and the inclusion of the Land within the District. The City agrees that the Consent Ordinance constitutes the City's consent to creation of the District within the City's extraterritorial jurisdiction. No further action will be required by the City to evidence its consent; provided, that the City will provide Owners a certified copy of the Consent Ordinance as adopted by the City. Section 2.02 Annexation. The City agrees that it will not annex the District until at least (i) all public infrastructure facilities (including, but not limited to, water, wastewater, drainage, and roadway facilities) have been completed to serve at least ninety percent (90%) of the Land within the District, and (ii) Owners, Developer, and their respective successors and assigns, have been fully reimbursed by the District to the maximum extent permitted by the rules of the Commission or other applicable laws of the State of Texas. Section 2.03 Stratel4ic Partnership Allreements. Section 43.0751 of the Texas Local Government Code provides for the negotiation and implementation of "strategic partnership agreements" between cities and municipal utility districts. The District shall approve, execute, and deliver to the City a Strategic Partnership Agreement in the form attached as Exhibit D or as otherwise allowed by law and agreed to by the City and the District. The District may not issue bonds until the District has executed a Strategic Partnership Agreement with the City. Once in effect, the terms of the Strategic Partnership Agreement shall control the City's annexation of land within the Property. Section 2.04 Records. Upon request of the City, the District shall submit its annual audit to the City when such audit is required by the Commission. All public information of the District shall be available to the public in accordance with the Texas Public Information Act. ARTICLE III. WATER AND WASTEWATER SERVICES Section 3.01 Water Services. The City will provide water service to the District. The City 964507_3