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hereby agrees to allow the extension, improvement of, and connection to City water facilities to <br />provide water service to the District. At the time of execution of this Agreement, the City agrees <br />that it has sufficient capacity to serve the District. Upon completion of each phase of the water <br />facilities constructed by or on behalf of the District, to serve the District, the District shall <br />convey such water facilities to the City for ownership, operation, and maintenance, which <br />facilities shall become part of the City's water system in accordance with the Utility Agreement. <br />Users within the District receiving water service from the City shall be customers of the City. <br />Rates and charges for such customers shall be equal and uniform to those charged to other <br />similar classifications of City users 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 <br />wastewater facilities to provide service to the District. At the time of execution of this <br />Agreement, the City agrees that it has sufficient capacity to serve the District. Upon completion <br />of each phase of the related wastewater collection and transportation facilities constructed by or <br />on behalf of the District, to serve the District, the District shall convey such wastewater facilities <br />to the City for ownership, operation, and maintenance, which facilities shall become part of the <br />City's wastewater system in accordance with the Utility Agreement. Users of wastewater service <br />within the District will be customers of the City. Rates and charges for such customers shall be <br />equal and uniform to those charged to other similar classifications of City users that are not <br />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 <br />Local Government Code and Chapter 70 of the City Code. The requirements of Chapter 70 of the <br />City Code, as modified by this Agreement, the Development Agreement, the Strategic <br />Partnership Agreement, and/or the Utility Agreement, have been or will be satisfied. The Parties <br />intend this Agreement to guarantee the continuation of the extraterritorial status of the Property, <br />authorize certain land uses and development on the Property, provide for infrastructure for the <br />Property, and provide other lawful terms and consideration. Except as expressly set forth in this <br />Agreement, the Development Agreement, the Strategic Partnership Agreement, and the Utility <br />Agreement, no additional documents, materials, information, payment of fees, or other actions <br />shall be required to comply with Chapter 70 of the City Code. To the extent there is a conflict <br />between this Agreement, the Development Agreement, the Strategic Partnership Agreement, or <br />the Utility Agreement and Chapter 70 of the City Code, the terms of this Agreement, the <br />Development Agreement, the Strategic Partnership Agreement, or the Utility Agreement, as <br />applicable, shall 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 />3 <br />964507_3 <br />