Res 2024-078 approving an agreement with Clint Jones, owner of Fleming Farms, Highlander S M Two, Rattler Ridge, LP., and JLBC 710 Investments, LLC, owner of Sedona South, to provide for the sharing of costs for the construction

Home Browse Search

5. City Consent to Districts. If any Developer elects not to opt out of the City's ETJ and is required by State law to obtain the City's consent to create a municipal utility district ("MUD") within which such Developer's Tract is to be located, in whole or in part, or to annex adjacent property into an existing District (or in the case of Fleming to be annexed into any existing District that is not adjacent), and the Developer's petition for such consent submitted to the City meets the requirements of Section 54.016(a) of the Texas Water Code, the City agrees to provide such consent, by ordinance or resolution, and without conditions or contingencies,within sixty (60) days after receipt of such petition for such consent from the Developer. The City's consent ordinance or resolution furnished to a Developer under this Section 5 shall: (i) be duly approved by the City's City Council; (ii) meet all requirements of Section 54.016(a) of the Texas Water Code and Section 42.042 of the Local Government Code;and (iii)consent to the District's issuance of bonds for any and all purposes authorized by law, including water, sewer, drainage and road facilities and improvements. 6. Contractual Capacity Right. In accordance with Title 30, Section 293.44(b)(3) and (b)(7)of the Texas Administrative Code, (i)the Parties acknowledge and agree that the LUE Fees paid under the terms of this Agreement constitute payment for the proportionate share of the costs of developing a regional wastewater collection and treatment system to serve the Districts and the Tracts, and obtaining or reserving a contractual capacity right in the Facilities. The City agrees the payment of the LUE Fees entitles the Developers, on behalf of the Districts, to hold and maintain the contractual capacity rights in the Facilities to provide service to the Districts and the Tracts. As such, each of the Developers shall have the right to seek reimbursement from the respective Districts for the costs of all such contractual capacity right financed by Tracts or Districts consistent with the Absorption Schedule. It is specifically acknowledged and agreed that the foregoing contractual capacity right shall in no manner give the Developers or the Districts any right to own or operate the Facilities, or to impair or limit in any manner whatsoever the City's right to own and operate the Facilities in its sole and absolute discretion. The City does not object to the Developers seeking reimbursement from the Districts for any eligible costs incurred by the Developers under this Agreement, including, but not limited to, LUE Fees, costs associated with the design and construction of the Improvements, and all land and easement acquisition costs, including the Developers' Proportionate Share of the cost of the Plant Site, all as paid by Developers for and on behalf of the Districts pursuant to this Agreement. This Section 6 shall survive the termination of this Agreement; provided however, that this Section 6 shall terminate on the date the bonds issued by the Districts to pay for or finance the construction of the Facilities, LUE Fees, and other eligible costs, or to reimburse Developers for eligible costs, or both, are retired in full by the District. Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 24 of 47