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Ord. 0859 08-10-98ORDINANCE NO. 859 AN ORDINANCE GRANTING THE CONSENT OF THE CITY OF PEARLAND, TEXAS, TO THE CREATION OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 17 WITHIN THE CITY'S CORPORATE BOUNDARIES. WHEREAS, the City of Pearland, Texas, received a Petition for Consent to the Creation of a MUNICIPAL UTILITY DISTRICT (to be known as Brazoria County Municipal Utility District No. 17) for 293.401 acres located in the City's corporate boundaries, a copy of which petition is attached hereto and incorporated herein as Exhibit "A"; and WHEREAS, Section 54.016 of the Texas Water Code provides that land within a city's corporate boundaries may not be included within a district without the city's written consent; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: That the City Council of the City of Pearland, Texas, gives its written consent to the creation of Brazoria County Municipal Utility District No. 17 on 293.401 acres of land, as described in the attached petition and the consent conditions attached thereto. That the City Council of the City of Pearland, Texas, authorizes and directs the City Manager to execute the Utility Agreement (as defined in the consent conditions attached to the petition attached hereto) on behalf of and as the duly authorized act of the City of Pearland, Texas. The importance of this ordinance and the impending creation of Brazoria County Municipal Utility District No. 17 create an emergency and an imperative public necessity, so that this ordinance shall be effective as of the date below upon its first and final reading. PASSED AND APPROVED on the'/ day of ATTEST: Mayor, City of Pearland APPROVED: ice:, H. CalL City Attorney Exhibit A PETITION FOR CONSENT TO THE CREATION OF A MUNICIPAL UTILITY DISTRICT TO THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: The undersigned (herein the "Petitioners"), acting pursuant to the provisions of Chapters 49 and 54, Texas Water Code, respectfully petition the City Council of the City of Pearland, Texas, for its written consent to the creation of a municipal utility district and would show the following: The name of the proposed District shall be BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 17 (the "District"). 11. The District shall be created and organized under theterms •arid. provisions of Article XVI, Section 59 of the Constitution of Texas and Chapters 49 and 54, Texas Water Code. 111. r: • The District Shall contain an area of 293.401 acres of land, more or less, Situated in Brazoria County, ,Texa- ot,thq land,tc beincluded in the pistcigt IS wPiithfrIP,Ocy!.-t1.,,jesPf,,the Pt.1449! !,eariand, Texas ,All of tneiadd proposed to,be,inciuded may properly be includedipit4 c4triotThe landproposed ,t99,,i4C.Iyd0 within the bi,s014pcmsi,04,11re tracts described by metes and bounds in Exhibit "A", which is attached hereto and incorporated herein for all purposes (the "Land"). Sunlake Limited, a Texas limited partnership ("Sunlake") and one of the Petitioners, holds fee simple title to 79.5241 acres of the 138.696 acre tract which comprises a portion of the Land, which 79.5241 acre tract is described more particularly on Exhibit "B," attached hereto and incorporated herein (the "surilee,.!-;.#90:)-iJl#PRYPITE POte*,,14tclo # TW#'111/10.di-ParP)PPPRCH,PPPY41q9c0P.8t9fPq Petitioners, nods regsypplppliaw14§:7i7acre ,traqwhiOhs,ornOisesa portion of the Land, which tract is described more particularly on Exhibit "C," attached hereto and incorporated herein (the "Hannover Land"). Amvest Properties, Inc., a Texas corporation ("Amvest") and one of the Petitioners, holds fee simple title to the 68.958 acre tract which comprises a portion of the Land, which tract is deScribed Tore. particulank,,Cn.Exhibit: 'D,7 attached hereto - and, incorporated herein (the "invest Petlibnerkheretaxreptesept ttitfht§yniake Land?; the Hannover Land and the Arr,rt,jiian4 collectively as indip9ted,by,thefaiF,roRS of Orapipa ,COUnty,79),caS:OnititUle,a majority in value of the LandWniOnjeproppeeditoslie included in the . ' V. Sunlake represents that attached hereto as.Exhibit "E" are the consents of all lienholders, on the Sunlake Land and that there are no residents on the Sunlake Land. Hannover represents that attached • , hereto as Exhibit 7F", are ih.consenta of all,lienholders:on the Hannover Land ancithatthereare.ng /9 .1 ' s. • . h,.: 1,.,7P1'.4A‘§oFTA9119,11wEIPPPR\60979.,i; , •1 . : residents on the Hannover Land. Amvest represents that attached hereto as Exhibit "G" are the consents of all Iienholders on the Amvest Land and that there are no residents on the Amvest Land. VI. The general nature of the work to be done by the District at the present time is the design, construction, acquisition, maintenance and operation of a waterworks and sanitary sewer system for domestic and commercial purposes, and the construction, acquisition, improvement, extension, maintenance and operation of works, improvements, facilities, plants, equipment and appliances helpful or necessary to provide more adequate drainage for the District, and to control, abate and amend local storm waters or other harmful excesses of waters, and such other construction, acquisition, improvement, maintenance and operation of such additional facilities, systems, plants and enterprises as shall be consonant with all of the purposes for which the District is created. VII. There is, for the following reasons, a necessity for the above -described work. The area proposed to be within the District is urban in nature, is within the growing environs of the City of Pearland, Texas, and is in close proximity to populous and developed sections of Brazoria County, Texas. There is not now available within the area, which will be developed for single family residential and commercial uses, an adequate waterworks system, sanitary sewer system, or drainage and storm sewer system. The health and welfare of the present and future inhabitants of the area and of the territories adjacent thereto require the purchase, design, construction, acquisition, ownership, operation, repair, improvement and extension of an adequate waterworks system, sanitary sewer system, and drainage and storm sewer system. A public necessity, therefore, exists for the creation of the District, to provide for the purchase, design, construction, acquisition, ownership, operation, repair, improvement and extension of such waterworks system, sanitary sewer system, and drainage and storm sewer system, to promote the purity and sanitary condition of the State's waters and the public health and welfare of the community. VIII. Petitioners, by submission of this Petition, requests the City's consent to the creation of the District containing the Land under the same conditions set forth in Exhibit"H" which is attached hereto and incorporated herein for all purposes. IX. A preliminary investigation has been made to determine the cost of the proposed District's project, and it is now estimated by the Petitioners, from such information as it has at this time, that such cost will be approximately $12,555,000. WHEREFORE, Petitioners pray that this petition be heard and that your Honorable Body duly pass and approve an ordinance or resolution granting the consent to the creation of the District and authorizing the inclusion of the land described herein within the District. ODMA\SOFTSOLV 1 I\VEH0009\60977\0 RESPECTFULLY SUBMITTED this 5th day of August , 1998. SUNLAKE LIMITED, a Texas limited partnership By: AMERIFIRST CORPORATION, a Texas corporation, its general partner ATTEST: By: Name: Title: Sef �%G�- THE STATE OF TEXAS § COUNTY OF BRAZORIA § By: Name: Title: This instrument was acknowledged before me on the 5th day of August 1998, by C t- i tT%'l G . tart, P2,E5, ET of Amerifirst Corporation, a Texas corporation, as the general partner of Sunlake Limited, a Texas limited partnership, on behalf of said corporation. tate of Tex: s ::ODMA\SOFTSOLU I I WE HOU09\60977\0 HANNOVER ESTATES, LTD., a Texas limited partnership By: AMVEST CORPORATION, a Texas corporation, its general partner By: Name: Title: ATTEST: By: J /' Y Name: Title: THE STATE OF TEXAS § COUNTY OF BRAZORIA § Wow This instrument was acknoxvIedged before me on the 5th day of August 1998, by && rf,TrONI F, c ,.l ES , E,j- of Amvest Corporation, a Texas corporation, the general partner of Hannover Estates, Ltd., a Texas limited partnership, on behalf of said corporation. Ir:fil KELLYD.FANS (SEA} a_ MY COMMISSION EXPIRES .. January 16, 2002 ,pN ::ODMA\SOFTSOLU I I \ V EHOU09\60977\0 No ary PubP , State of Texas ATTEST: BY Name: l/,p/' c Title: THE STATE OF TEXAS § COUNTY OF BRAZORIA § AMVEST PROPERTIES, INC., a Texas corporation By: Name: � GJ o Title: fie e-"S /21 e r This instrument was ackno y edged before me on the 5th day of August 1998, by & , Arih,.J L, G-kik AE.itr of Amvest Properties, Inc., a Texas corporation, on behalf of said corporation. KELLY D. REANS MY COMMISSION EXPIRES January 16, 2002 ::ODMA\SOFTSOLU 11 \VEHOU09\60977\0 Nota Pu State of Texas Exhibit "A" METES AND BOUNDS DESCRIPTION 138.696 ACRES LOCATED IN THE JOHN W. MAXEY SURVEY, A-721 AND THE H.T.& B.R.R. CO. SURVEY, A-304 BRAZORJA COUNTY, TEXAS Being a tract of land containing 138.696 acres, more or Tess, located in the John W. MaxeySurvey, 721, and the H.T.& BR.R. Co. Survey, Abstract 304, Brazoria County, Texas, beingg a 1046Abstract which is a part of a called 208.1008 acre tract described in Volume 1107, Page 859 of the 4e acre tract of Brazoria County, Texas, and also being a called 12.3716 acre tract being part of Lots 49 andRecords Allison Richey Gulf Coast Home Company Subdivision, of record in Volume 2, Page 23 of the Plat of the of Brazoria County, Texas, and a called 26.3201 acre tract being Lots 48 and 58 andpart of said Records of the said Allison Richey Subdivision, said 138.696 acres beingmore Lot 49 bearings referenced to the Texas State Plane Coordinate System. South particularly NADescrbed 9s follows (all NAD 1983): COMMENCING at the south southeast comer of aforesaid 208.1008 acre tract in the north right -of - of Farm to Market Road 518 (120 foot right-of-way); g way THENCE, South 87 degrees 25 minutes 33 seconds West, along the north right-of-way line of aforesaid to Market Road 518, a distance of 1,478.23 feet to a 5/8 inch iron rod found in concrete for the P Farm OF BEGINNING of the herein described tract, Farm THENCE, South 87 degrees 25 minutes 33 seconds West, along the north right-of-way line of aforesaid Farm to Market Road 518, a distance of 483.00 feet to a 5/8 inch iron rod found in concrete at an angle oin and also being the southeast comer of aforesaid 100.0046 acre tract; g p t THENCE, South 50 degrees 26 minutes 48 seconds West, along the northwest right-of-way line of Farm to Market Road 518 a distance of 891.82 feet to the beguning of a curve to the ri ht; aforesaid g- THENCE, along the arc of aforesaid curve to the right and the northwest right-of-way line of afor to Market Road 518, through a central angle of 11 degrees 46 minutes 15 esad radius Farm seconds,a 1,849.86 feet, an arc length of 380.03 feet, and a long chord bearing South Gdegrees v 19 tof seconds West, a distance of 379.37 feet to the end of said curve and the southwest corner s 56 esa 100.0046 acre tract in the west line of aforesaid John W. Maxey Survey and the east line of the H.T.&id B R Co. Survey, Abstract 304;R. THENCE, North 03 degrees 22 minutes 45 seconds West, along the common Tine of aforesaid Maxey and H.T.& B.R.R. Co. Surveys a distance of 1,125.11 feet to the southeast corner of Lot 58 of aforesaid Allison Richey Subdivision and also being the east southeast corner of aforesaid 26.3201 acre tract and also being the northeast corner of a tract to Jon G. Hawk, Trustee of record in Volume 14, Pa a 56 of the Records of Brazoria County. Texas. g Official Page 1 of 7 THENCE, South 86 degrees 29 minutes 15 seconds West, a distance of 880.61 feet to the common corners of lots 48,49,58 and 59 of aforesaid Allison Richey Subdivision and the northwest comer of aforesaid Hawk tract; THENCE, South 03 degrees 22 minutes 45 seconds East, along the common line of Lots 49 and 59 of aforesaid Allison Richey Subdivision a distance of 318.68 feet to the intersection with the north Tine of a 50 foot wide Houston Pipeline Company Right -of -Way and Easement of record in Volume 1222, Page 534 of the Deed Records of Brazoria County, Texas and also being the south southeast corner of aforesaid 26.3201 acre tract and the northeast comer of a tract to Bobby L. Stevener of record in Clerk's File Number 98- 000130 of the Official Records of Brazoria County, Texas; THENCE, South 87 degrees 15 minutes 46 seconds West, along the north Tine of aforesaid Houston Pipeline Company Easement a distance of 300.00 feet to the northeast corner of aforesaid 12.3716 acre tract and the northwest comer of aforesaid Stevener tract; THENCE, South 03 degrees 22 minutes 21 seconds East, along the a distance of 975.95 feet to the southeast comer of aforesaid 12.3716 acre tract and the southwest corner of aforesaid Stevener tract in the north right-of-way Tine of aforesaid Farm to Market Road 518; THENCE, South 86 degrees 18 minutes 41 seconds West, along the north right-of-way Tine of aforesaid Farm to Market Road 518 a distance of 520.01 feet to the east corner of a called 0.010 acre tract to the State of Texas for right-of-way, of record in Volume 1416, Page 467 of the Deed Records of Brazoria County, Texas; THENCE, North 48 degrees 32 minutes 02 seconds West, along the northeast hne of aforesaid 0.010 acre tract a distance of 42.31 feet to the north corner of said 0.010 acre tract in the east right-of-way line of County Road 93 (60 foot right-of-way); THENCE, North 03 degrees 22 minutes 45 seconds West, along the east right-of-way line of aforesaid County Road 93 a distance of 955.09 feet to the north Tine of aforesaid Houston Pipeline Company Easement and also being the northwest comer of aforesaid 12.3716 acre tract: THENCE, South 87 degrees 15 minutes 46 seconds West, a distance of 30.00 feet to the centerline of aforesaid County Road 93 and also being the southwest corner of aforesaid 26.3201 acre tract, THENCE, North 03 degrees 22 minutes 45 seconds West, along the centerline of aforesaid County Road 93 a distance of 801.62 feet to the northwest corner of Lot 48 of aforesaid Allison Richey Subdivision and the northwest corner of aforesaid 26.3201 acre tract and the southwest corner of a tract to Aron Brooks of record in Volume 776, Page 597 of the Deed Records of Brazoria County, Texas; Page 2 of 7 THENCE, North 86 degrees 29 minutes 15 seconds East, at a distance of 30.00 feet pass the east right-of- way line of aforesaid County Road 93, at a distance of 880.00 feet pass the called common corner of Lots 47,48,57 and 58 of aforesaid Allison Richey Subdivision, the southeast corner of aforesaid Brooks tract and the southwest corner of a tract to John M. Sheesley and Delmer Q. Bowman of record in Volume 885, Page 135 of the Deed Records of Brazoria County, Texas, and continue for an overall distance of 1,760.71 feet to the northeast comer of said Lot 58 and of aforesaid 26.3201 acre tract, and also being the southeast comer of said Sheesley/Bowman tract in the west line of aforesaid 100.0046 acre tract and also being in the west line of aforesaid Maxey Survey and the east line of aforesaid H.T.& B.R.R. Co. Survey; THENCE, North 03 degrees 22 minutes 45 seconds West, along the common line of aforesaid Maxey and H.T.& BR.R. Co. Surveys a distance of 1,687.58 feet to the northwest corner of aforesaid 100.0046 acre tract; THENCE, North 86 degrees 51 minutes 03 seconds East, a distance of 1,530.45 feet to the northeast corner of aforesaid 100.0046 acre tract; THENCE, South 03 degrees 22 minutes 45 seconds East, along the east line of aforesaid 100.0046 acre tract a distance of 2,590.46 feet to the POINT OF BEGINNING and containing 138.696 acres, more or less.; McClendon & Reno Job No. 63-9703 Revised: May 4, 1998 December, 1997 4, Page 3 of 7 METES AND BOUNDS DESCRIPTION 85.747 ACRES LOCATED IN THE H.T.& B.R.R. CO. SURVEY, SECTION 11, A-239 BRAZORIA COUNTY, TEXAS Being a tract of land containing 85.747 acres, more or less, located in the H.T.& B.R.R. Company Survey, Section 11, Abstract 239, Brazoria County, Texas, being that same tract described in Clerk's File Numbers 93- 01944 and 93-0147 of the Official Records of Brazoria County, Texas, said 85.747 acres being more particularly described as follows (all bearings referenced to the Texas State Plane Coordinate System, South Central Zone, NAD 1983): BEGINNING at the southwest corner of aforesaid 85.747 acre tract and also being the southeast corner of Willowick Section 2 Subdivision, of record in Volume 19, Page 207 of the Plat Records of Brazoria County, Texas, in the north line of a tract to the City of Pearland, of record in Volume 84, Page 964 of the Official Records of Brazoria County, Texas, from which the southwest corner of aforesaid Section 11 bears, South 87 degrees 19 minute 15 seconds West, a distance of 968.05 feet and South 02 degrees 40 minutes 45 seconds East, a distance of 2,638.88 feet; THENCE, North 02 degrees 44 minutes 43 seconds West, along the east line of aforesaid Wilowick Section 2 a distance of 1,195.00 feet to the southeast corner of said Wilowick Section 2 and also being in the south line of Wllowick Section 1, of record in Volume 16, Page 99 of the Plat Records of Brazoria County, Texas; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south line of aforesaid Willowick Section 1 a distance of 238.89 feet to the southeast corner of said Willowick Section 1; THENCE, North 02 degrees 40 minutes 45 seconds West, along the east Tine of aforesaid Willowick Section 1 a distance of 1,168.88 feet to the northeast corner of said Willowick Section 1, and also being the southwest comer of a tract to the Pearland Masonic Lodge of record in Volume 1206, Page 727 of the Deed Records of Brazoria County, Texas; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south line of aforesaid Pearland Masonic Lodge tract a distance of 150.00 feet to a 3/4 inch iron rod found at the southwest corner of said Pearland Masonic Lodge tract; THENCE, North 02 degrees 40 minutes 45 seconds West. along the east line of aforesaid Pearland Masonic Lodge tract, at a distance of 219.54 feet pass the south right-of-way line of Walnut Street (right-of-way varies) and continue for an overall distance of 275.00 feet to the northwest corner of the herein described tract in the north line of aforesaid Section 11, and also being the south line of the H.T.& B.R.R. Company Survey, Section 3, Abstract 232; Page 4 of 7 THENCE, North 87 degrees 19 minutes 15 seconds East,- along the north line of aforesaid Section 11 and the south line of Section 3 a distance of 1,169.89 feet to the northeast corner of the herein described tract within the right-of-way of South Veterans Drive, and also being the northwest corner of the Pearland Industrial Park of record in Volume 16, Page 171 of the Plat Records of Brazoria County, Texas; THENCE, South 02 degrees 40 minutes 45 seconds East, along the west Tine of aforesaid Pearland Industrial Park a distance of 1,979.17 feet to the southwest corner of said Pearland" Industrial Park; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south line of aforesaid Pearland Industrial Park a distance of 30.14 feet to the northwest corner of a tract to John Schneider of record in Volume 1110, Page 177 of the Deed Records of Brazoria County, Texas; THENCE, South 02 degrees 40 minutes 45 seconds East, along the west line of aforesaid John Schneider tract a distance of 285.56 feet to a 1/2 inch iron rod found at an angle point of the herein described tract; THENCE, South 06 degrees 23 minutes 15 seconds West, along the west line of aforesaid John Schneider tract a distance of 378.89 feet to the southeast corner of the herein described tract, the southwest corner of said John Schneider tract in the north line of aforesaid City of Pearland tract; THENCE, South 87 degrees 19 minutes 15 seconds West, along the north line of aforesaid City of Pearland tract a distance of 1,527.83 feet to the POINT OF BEGINNING and containing 85.747 acres, more or less. McClendon & Reno Job No. 63-9703 December, 1997 Page 5 of 7 METES AND BOUNDS DESCRIPTION 68.958 ACRES LOCATED IN THE A.C.H.& B.R.R. CO. SURVEY, SECTION 2, A-507 BRAZORIA COUNTY, TEXAS Being a tract of land containing 68.958 acres, more or Tess, located in the A.C.H.& B.R.R. Company Survey, Section 2, Abstract 507, Brazoria County, Texas, being out of and a part of a called 104.401 acre tract to Charles F. Alexander, of record in Volume 86268, Page 586 of the Official Records of Brazoria County, Texas, and also being a part of Lots 3 thru 8, and 13 of the L.W. Murdock Subdivision, of record in Volume 29, Page 174 of the Deed Records of Brazoria County, said 68.958 acres being more particularly described as follows (all bearings referenced to the Texas State Plane Coordinate System, South Central Zone, NAD 1983): BEGINNING at the southwest comer of the herein described tract in the south line of aforesaid 104.401 acre tract, from which the southwest corner of said 104.401 acre tract in the northeast right-of-way line of State Highway 35 (100 foot right-of-way) bears, South 86 degrees 38 minutes 00 seconds West, a called distance of 285.41 feet, which comer is also the northwest comer of a tract to the Pearland Independent School District, of record in Volume 88552, Page 385 of the Official Records of Brazoria County, Texas; THENCE. North 32 degrees 12 minutes 42 seconds West, along the east line of the herein described tract a distance of 329.57 feet to the south Tine of a called 3.933 acre tract to the Alvin Community College Foundation (1/4 interest), of record in Volume 1665, Page 179 of the Deed Records of Brazoria County, Texas, to Patricia Alexander Wood (1/4 interest), Elizabeth Alexander (1/4 interest), and Sue Alexander Morrison, Trustee (1/4 interest). all of record in Volume 684, Page 132 of the Deed Records of Brazoria County, Texas; THENCE, North 86 degrees 34 minutes 09 seconds East, along the south line of aforesaid 3.933 acre tract a distance of 112.71 feet to the southeast corner of said 3.933 acre tract; THENCE, North 03 degrees 19 minutes 19 seconds West, along the east line of aforesaid 3.933 acre tract a distance of 347.58 feet to the northeast comer of said 3.933 acre tract; THENCE, South 86 degrees 34 minutes 09 seconds West, along the north line of aforesaid 3.933 acre tract a distance of 304.30 feet to an angle point of the herein described tract; THENCE, North 32 degrees 12 minutes 42 seconds West, a distance of 564.22 feet to a comer of the herein described tract; THENCE, South 57 degrees 47 minutes 18 seconds West, a distance of 250.00 feet to the northeast right-of- way line of aforesaid State Highway 35; THENCE, North 32 degrees 12 minutes 42 seconds West, along the northeast right-of-way Tine of aforesaid State Highway 35 a distance of 100.00 feet to a corner of the herein described tract; Page6of7 THENCE, North 57 degrees 47 minutes 18 seconds East, a distance of 250.00 feet to a corner of the herein described tract; THENCE, North 32 degrees 12 minutes 42 seconds West, a distance of 544.27 feet to the northwest comer of the herein described tract in the south right-of-way line of John Lizer Road (70 foot right-of-way at this point); THENCE, North 86 degrees 38 minutes 01 second East, along the south right-of-way Tine of aforesaid John Lizer Road a distance of 1,914.97 feet to a transitional right-of-way comer; THENCE, South 03 degrees 21 minutes 59 seconds East, along aforesaid transitional right-of-way line of John Lizer Road a distance of 10.00 feet to the south right-of-way line of said John Lizer Road; THENCE, North 86 degrees 38 minutes 01 second East, along the south right-of-way line of aforesaid John Lizer Road a distance of 299.70 feet to a 5/8 inch iron rod found at the northeast comer of the herein described tract in the west right-of-way line of Peariand Parkway (140 foot right-of-way); THENCE, South 01 degree 47 minutes 04 seconds East, along the west right-of-way line of aforesaid Peariand Parkway a distance of 448.49 feet to a 5/8 inch iron rod found marking the beginning of a curve to the left; THENCE, along the arc of aforesaid curve to the left and the west right-of-way line of Peariand Parkway, through a central angle of 25 degrees 54 minutes 51 seconds, having a radius of 2,070.00 feet, an arc length of 936.24 feet and a long chord bearing South 14 degrees 44 minutes 30 seconds East, a distance of 928.28 feet to the end of said curve in the southeast line of aforesaid 104.401 acre tract and also being in the northwest line of the W.D.C. Hall Survey, Abstract 70, THENCE, South 42 degrees 02 minutes 15 seconds West, along the northwest line of aforesaid W.D.C. Hall Survey and the southeast line of aforesaid 104.401 acre tract a distance of 135.46 feet to the west comer of said Hall Survey; THENCE, South 48 degrees 27 minutes 34 seconds East, along the west line of aforesaid W.D.C. Hall Survey and an east line of aforesaid 104.401 acre tract a distance of 327.38 feet to the southeast comer of said 104.401 acre tract and also being the northeast comer of aforesaid Peariand Independent School District tract; THENCE, South 86 degrees 38 minutes 00 seconds West, along the south line of aforesaid 104.401 acre tract and the north line of aforesaid Peariand Independent School District tract a distance of 1,587.42 feet to the POINT OF BEGINNING and containing 68.958 acres, more or less. McClendon & Reno Job No. 63-9703 December, 1997 Page 7 of 7 Exhibit "B" Theme, l ,. l rtv+-tC rrtraa dcr•q tflo ce cf a arw to thr ><fC o '- 25.g7 hot to a podcf , tv.Ty t�.p 1 .�f �6'�CUft•tadeem* of tau foot __ciNt of _ Thor a. Z2>.54 fret dot; tt.e ae d a dove to Ito ri t, it,..t,Q 0 rada of 04f.-X7 feet •, V3S Thence fJ CO' 2.-Y4ta' E a • tlet..re. of S.t.q feet to a poi ftr o car+a of tfb tract:,' Vie. too pont of ta% rrcy. r;:5Neci 79,2,741 arts *if of tt•a .kro N. flaeai g.."414. 121. at co a >y.yq are trot as 9 POI of all f t of 'o Co - Texas. SAS•! 13,445r 000rdod t� "g u- a- .1ai t tries �. b d or facto. �R anti p� ilaij . c xi'q at a d' taj •(' ea•Refe trot -anent Mutat Si act the srst Ccrrer of Lot 22 tkvs 1Jor!'saflt Ccrntir of the t.K Ceoat Nano . 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VI. of flee oar ....rrreryd too •e5' ..ea cSerod .y m„ f ct XJ.o7 fart aY'4 - end !h` - its of _ i�q c �✓oro !•;.� rot s.-t :c: foot f o a 3✓4 tor. rod set fa the 9art}vasi Cosmos h t• a to'd cbtanee of.r....4.5.4... of ttt! h`oCt, -. . .. to Theme fl t7 N. o oblate of 7IX740 foot to a poled fa fly Pia-throst Caw of .:' datoriied toot: Ths-ice, 5 oo'27.t?' E o chtare of 5-4.9 foot to .0 Foist Of htvotrit Thsres 161,35 Fart efaeq tie a t of a aryls to the eft a b o tit of , loth; rroda of 1W.t70 foat••7k ': r 5 !NS '.� c ' E o dato•a of Kr.125.4 teat to a pa-t of arvatrvt trtirz� '1r1- �37 Fc ct • • . !� a K of n ttw art of o are* to ttb 4f I t•o*.tt; a ranee c t ??.co, �t . ,b •• -` �T?¢ ) the No' th r+'cit -of -,-0y t-s of HK JFdr • • The c'� 9 :•� r 03 i l csa-.? L •r roc C= t,r of Fri :46 o dstc� of Do.Cp ivat ;a pd-t of orvc+4ro: t°r e7'r�! • • Thence fi Bel .5617 -t o 6'aerce of -1:30,58 feet to o 3/4"4 ton rod oat J7 Mew best Ltb a th..7�-er, t-1 t'ts•ul `-+rMay the Wit he of of t+. I�,Q, t -4 n r Coast t the ►ttot b. P.M &Pny; the Bat roost f 1 tcrl P.�h 1 CIA Ccrrar of o$ Orro Carron) %hot ba, Q t Fast t . of a Xi . tracts Theme tt t70' : ,.� d - �iT 9 the t•Se•,t U .r d Ife JOY. a real `S.rw W. East for tie $.T4 B. R.A. `sr`^r•3 t`,. eat! 11-*. of th•ocacn Foray .C.01 Coast tie Cor .a-J _ - • ra' rod sty icet Ire Of 0 Jl7 .ea road. - at 55140 foot q.fel' R+rft) peomfq o 9/8'y 1•on rod ta,+d fer the Wrwiueet C•or.• m or Lot 4 N t�+m pCut C.00,S tone Goriy rpe y Sbda1 __ - at 14/37.5t Not ties Fort rosetq a 5/6b kr' nod Ford for to bbrtlrwt •• Correct of Lot 51 of u err r Ca* Cc+at Kane Corrtxxv Comer -. a t.ot7� a �.tkwr., 7$ R - posers; q o 5✓aro t v. rod foes Axt'+otat ct 7.07t ?t K.! e0 hsai CIA C•voe! flare Cor.pory ry,� .. -.- Correa et L.et 7? yr butt t rt 1 J pa...beg 0 t/6' t-an rod t� far the Wurt{c3.t : d a ta6o cL - J2 of227301 0-$4 Goad p -. end a•+�. - 3 h : �.'tdiae�4 ry �. Net to the PCSirt' CO tSC•G• ad q �vm r.•.t t7414?dt axed. Exhibit "C" METES AND BOUNDS DESCRIPTION 85.747 ACRES LOCATED IN THE H.T.& B.R.R. CO. SURVEY, SECTION 11, A-239 BRAZORIA COUNTY, TEXAS Being a tract of land containing 85.747 acres, more or Tess, located in the H.T.& B.R.R. Company Survey, Section 11, Abstract 239, Brazoria County, Texas, being that same tract described in Clerk's File Numbers 93- 01944 and 93-0147 of the Official Records of Brazoria County, Texas, said 85.747 acres being more particularly described as follows (all bearings referenced to the Texas State Plane Coordinate System, South Central Zone, NAD 1983): BEGINNING at the southwest corner of aforesaid 85.747 acre tract and also being the southeast corner of Willowick Section 2 Subdivision, of record in Volume 19, Page 207 of the Plat Records of Brazoria County, Texas, in the north Tine of a tract to the City of Pearland, of record in Volume 84, Page 964 of the Official Records of Brazoria County, Texas, from which the southwest comer of aforesaid Section 11 bears, South 87 degrees 19 minute 15 seconds West, a distance of 968.05 feet and South 02 degrees 40 minutes 45 seconds East, a distance of 2,638.88 feet; THENCE, North 02 degrees 44 minutes 43 seconds West, along the east line of aforesaid Walowick Section 2 a distance of 1,195.00 feet to the southeast corner of said Walowick Section 2 and also being in the south line of Walowick Section 1, of record in Volume 16, Page 99 of the Plat Records of Brazoria County, Texas; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south Tine of aforesaid Willowick Section 1 a distance of 238.89 feet to the southeast corner of said Walowick Section 1; THENCE, North 02 degrees 40 minutes 45 seconds West, along the east line of aforesaid Walowick Section 1 a distance of 1,168.88 feet to the northeast comer of said Walowick Section 1, and also being the southwest comer of a tract to the Pearland Masonic Lodge of record in Volume 1206, Page 727 of the Deed Records of Brazoria County, Texas; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south line of aforesaid Pearland Masonic Lodge tract a distance of 150.00 feet to a 3/4 inch iron rod found at the southwest corner of saki Pearland Masonic Lodge tract; THENCE, North 02 degrees 40 minutes 45 seconds West, along the east line of aforesaid Pearland Masonic Lodge tract, at a distance of 219.54 feet pass the south right-of-way line of Walnut Street (right-of-way varies) and continue for an overall distance of 275.00 feet to the northwest corner of the herein described tract in the north line of aforesaid Section 11, and also being the south line of the H.T.& B.R.R. Company Survey, Section 3, Abstract 232; Page 1 of 2 THENCE, North 87 degrees 19 minutes 15 seconds East,- along the north line of aforesaid Section 11 and the south line of Section 3 a distance of 1,169.89 feet to the northeast corner of the herein described tract within the right-of-way of South Veterans Drive, and also being the northwest comer of the Peariand Industrial Park of record in Volume 16, Page 171 of the Plat Records of Brazoria County, Texas; THENCE, South 02 degrees 40 minutes 45 seconds East, along the west Tine of aforesaid Pearland Industrial Park a distance of 1,979.17 feet to the southwest corner of said Pearland Industrial Park; THENCE, North 87 degrees 19 minutes 15 seconds East, along the south line of aforesaid Pearland Industrial Park a distance of 30.14 feet to the northwest corner of a tract to John Schneider of record in Volume 1110, Page 177 of the Deed Records of Brazoria County, Texas; THENCE, South 02 degrees 40 minutes 45 seconds East, along the west line of aforesaid John Schneider tract a distance of 285.56 feet to a 1/2 inch iron rod found at an angle point of the herein described tract; THENCE, South 06 degrees 23 minutes 15 seconds West, along the west Tine of aforesaid John Schneider tract a distance of 378.89 feet to the southeast corner of the herein described tract, the southwest corner of said John Schneider tract in the north the of aforesaid City of Pearland tract; THENCE, South 87 degrees 19 minutes 15 seconds West, along the north line of aforesaid City of Pearland tract a distance of 1,527.83 feet to the POINT OF BEGINNING and containing 85.747 acres, more or less. McClendon & Reno Job No. 63-9703 December, 1997 Page 2 of 2 F. RENO :.41 4408 Exhibit "D" METES AND BOUNDS DESCRIPTION 68.958 ACRES LOCATED IN THE A.C.H.& B.R.R. CO. SURVEY, SECTION 2, A-507 BRAZORIA COUNTY, TEXAS Being a tract of land containing 68.958 acres, more or less, located in the A.C.H.& B.R.R. Company Survey, Section 2, Abstract 507, Brazoria County, Texas, being out of and a part of a called 104.401 acre tract to Charles F. Alexander, of record in Volume 86268, Page 586 of the Official Records of Brazoria County, Texas, and also being a part of Lots 3 thru 8, and 13 of the L.W. Murdock Subdivision, of record in Volume 29, Page 174 of the Deed Records of Brazoria County, said 68.958 acres being more particularly described as follows (all bearings referenced to the Texas State Plane Coordinate System, South Central Zone, NAD 1983): BEGINNING at the southwest corner of the herein described tract in the south line of aforesaid 104.401 acre tract, from which the southwest corner of said 104.401 acre tract in the northeast right-of-way line of State Highway 35 (100 foot right-of-way) bears, South 86 degrees 38 minutes 00 seconds West, a called distance of 285.41 feet, which comer is also the northwest comer of a tract to the Pearland Independent School District, of record in Volume 88552, Page 385 of the Official Records of Brazoria County, Texas; THENCE, North 32 degrees 12 minutes 42 seconds West, along the east line of the herein described tract a distance of 329.57 feet to the south line of a called 3.933 acre tract to the Alvin Community College Foundation (1/4 interest), of record in Volume 1665, Page 179 of the Deed Records of Brazoria County, Texas, to Patricia Alexander Wood (1/4 interest), Elizabeth Alexander (1/4 interest), and Sue Alexander Morrison, Trustee (1/4 interest), all of record in Volume 684, Page 132 of the Deed Records of Brazoria County, Texas; THENCE, North 86 degrees 34 minutes 09 seconds East, along the south line of aforesaid 3.933 acre tract a distance of 112.71 feet to the southeast corner of said 3.933 acre tract; THENCE, North 03 degrees 19 minutes 19 seconds West, along the east line of aforesaid 3.933 acre tract a distance of 347.58 feet to the northeast corner of said 3.933 acre tract; THENCE, South 86 degrees 34 minutes 09 seconds West. along the north Tine of aforesaid 3.933 acre tract a distance of 304.30 feet to an angle point of the herein descrbed tract; THENCE, North 32 degrees 12 minutes 42 seconds West. a distance of 564.22 feet to a comer of the herein described tract: THENCE, South 57 degrees 47 minutes 18 seconds West, a distance of 250.00 feet to the northeast right-of- way line of aforesaid State Highway 35; THENCE, North 32 degrees 12 minutes 42 seconds West, along the northeast right-of-way line of aforesaid State Highway 35 a distance of 100.00 feet to a comer of the herein described tract; Page 1 of 2 THENCE, North 57 degrees 47 rninutes 18 seconds East, a distance of 250.00 feet to a corner of the herein described tract; THENCE, North 32 degrees 12 minutes 42 seconds West, a distance of 544.27 feet to the northwest comer of the herein described tract in the south right-of-way line of John Lizer Road (70 foot right-of-way at this point); THENCE, North 86 degrees 38 minutes 01 second East, along the south right-of-way line of aforesaid John Lizer Road a distance of 1,914.97 feet to a transitional right-of-way corner; THENCE, South 03 degrees 21 minutes 59 seconds East, along aforesaid transitional right-of-way line of John Lizer Road a distance of 10.00 feet to the south right-of-way line of said John Lizer Road; THENCE, North 86 degrees 38 minutes 01 second East, along the south right-of-way line of aforesaid John Lizer Road a distance of 299.70 feet to a 5/8 inch iron rod found at the northeast comer of the herein described tract in the west right-of-way line of Pearland Parkway (140 foot right-of-way); THENCE, South 01 degree 47 minutes 04 seconds East, along the west right-of-way line of aforesaid Pearland Parkway a distance of 448.49 feet to a 5/8 inch iron rod found marking the beginning of a curve to the left; THENCE, along the arc of aforesaid curve to the left and the west right-of-way Tine of Pearland Parkway, through a central angle of 25 degrees 54 minutes 51 seconds, having a radius of 2,070.00 feet, an arc length of 936.24 feet and a long chord bearing South 14 degrees 44 minutes 30 seconds East, a distance of 928.28 feet to the end of said curve in the southeast line of aforesaid 104.401 acre tract and also being in the northwest line of the W.D.C. Hall Survey, Abstract 70; THENCE, South 42 degrees 02 minutes 15 seconds West, along the northwest line of aforesaid W.D.C. Hall Survey and the southeast line of aforesaid 104.401 acre tract a distance of 135.46 feet to the west comer of said Hall Survey; THENCE, South 48 degrees 27 minutes 34 seconds East, along the west line of aforesaid W.D.C. Hall Survey and an east line of aforesaid 104.401 acre tract a distance of 327.38 feet to the southeast comer of said 104.401 acre tract and also being the northeast comer of aforesaid Pearland Independent School District tract; THENCE, South 86 degrees 38 minutes 00 seconds West, along the south line of aforesaid 104.401 acre tract and the north line of aforesaid Pearland Independent School District tract a distance of 1,587.42 feet to the POINT OF BEGINNING and contang 68.958 acres, more or less. McClendon & Reno Job No. 63-9703 December, 1997 Page 2 of 2 Exhibit "E" (Consent of All Lienholders on the Sunlake Land - 79.5241 acres) : DDMMSOFTSOW I IWEHOU09 \ 6097710 Exhibit "F" (Consent of All Lienholders on the Hannover Land - 85.747 acres) ::ODMA\SOFTS0L\311 \V EH0009\60977\0 Exhibit "G" (Consent of All Lienholders on the Amvest Land - 68.958 acres) ::ODMMSOFTSOLU 11 \ VEHOU09\60977\0 EXHIBIT "H" (a) The City of Pearland, Texas (the "City"), by execution of its City Manager, and various developers on behalf of the District shall enter into and execute a utility agreement, in substantially the form attached hereto as Exhibit "H-1," to specify the terms and conditions for providing water and sewage treatment services to the District (the "Utility Agreement"). Upon the District's creation and confirmation, the District shall assume all the rights, obligations, and interests of the developers under the Utility Agreement, as set forth therein. (b) The District will issue bonds only for the purposes authorized by law, including but not limited to, purchasing, designing and constructing, or purchasing, designing, and constructing or otherwise acquiring waterworks systems, sanitary sewer systems, storm sewer systems, and drainage facilities, or parts of such systems or facilities, and to make any and all necessary purchases, constructions, improvements, extensions, additions, and repairs thereto, and to purchase or acquire all necessary land, right-of-way, easements, sites, equipment, buildings, plants, structures, and facilities therefor, and to operate and maintain same, and to sell water, sanitary sewer, and other services within or without the boundaries of the District. Such bonds must provide that the District reserves the right to redeem said bonds on any interest -payment date subsequent to the fifteenth (15th) anniversary of the date of issuance without premium, and none of such bonds, other than refunding bonds, will be sold for less than 95% of par; provided that the net effective interest rate on bonds so sold, taking into account any discount or premium as well as the interest rate borne by such bonds, will not exceed two percent (2%) above the highest average interest rate reported by the Daily Bond Buyer in its weekly "20 Bond Index" during the one -month period next preceding the date of the sale of such bonds. The resolution authorizing the issuance of the District's bonds will contain a provision that the pledge of any revenues from the operation of the District's water and sewer and/or drainage system to the payment of the District's bonds will terminate when and if the City annexes the District, takes over the assets of the District and assumes all of the obligations of the District. (c) Before the commencement of any construction within the District, its directors, officers, or developers and landowners will submit to the City, or to its designated representative, ail plans and specifications for the construction of water, sanitary sewer and drainage facilities to serve such District and obtain the approval of such plans and specifications therefrom. All water wells, water meters, flushing valves, valves, pipes, and appurtenances thereto, installed or used within the District, will conform to the specifications of the City. All water service lines and sewer service lines, lift stations, and appurtenances thereto, installed or used within the District will comply with the City's standard plans and specifications as amended from time to time. Prior to the construction of such facilities within or by the District, the District or its engineer will give written notice by registered or certified mail to the City, stating the date that such construction will be commenced. The construction of the District's water, sanitary sewer, and drainage facilities will be in accordance with the approved plans and specifications and with applicable standards and specifications of the City; and during the progress of the construction and installation of such facilities, the City may make periodic on -the -ground inspections. (d) Prior to the sale of any lot or parcel of land, the owner or the developer of the land included within the limits of the District will obtain the approval of the Planning and Zoning Commission of the City of a plat which will be duly recorded in the Official Records of Brazoria County, Texas, and otherwise comply with the rules and regulations of the Engineering Department and the Department of Public Works of the City of Pearland. ::ODMA\SOFTSOLV I I\VEH0009\60977\0 -13- Exhibit H-1 UTILITY AGREEMENT This UTILITY AGREEMENT (the "Agreement), is made and entered into as of the day of , 1998, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and home -rule city of the State of Texas (the "City"), and SUNLAKE LIMITED, a Texas limited partnership, HANNOVER ESTATES, LTD., a Texas limited partnership, and AMVEST PROPERTIES, INC., a Texas corporation (the "Developers"), on behalf of proposed BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 17, to be created as a body politic and corporate and a governmental agency of the State of Texas organized under the provisions of Article XVI, Section 59 of the Texas Constitution (the "District"). RECITALS The District was created within the City's corporate limits for the purposes of, among other matters, providing water distribution, wastewater collection, and drainage facilities to serve development occurring within and near the District inside the City limits. Under the authority of Texas Local Government Code Section 402.014, as amended, the City and the District may enter into an agreement under the terms of which (i) the District will acquire for the benefit of and conveyance to the City the water distribution, wastewater collection, and drainage facilities needed to serve lands being developed within and near the boundaries of the District and (ii) in order to enhance the economic feasibility of the District and more equitably distribute among the taxpayers of the City and the District the burden of ad valorem taxes to be levied from time to time by the City and the District, the City will make annual tax and monthly water and sewer revenue rebate payments to the District in consideration of the District's financing, acquisition, and construction of such facilities. The City and the District have determined that they are authorized by the Constitution and laws of the State of Texas to enter into this Agreement and have further determined that the terms, provisions, and conditions hereof are mutually fair and advantageous to each. AGREEMENT For and in consideration of these premises and of the mutual promises, obligations, covenants, and benefits herein contained, the City and the District contract and agree as follows: ARTICLE I DEFINITIONS The capitalized terms and phrases used in this Agreement shall have the meanings as follows: "Annual Payment" means the annual payment to be made by the City to the District, as defined in Section 6.01 hereof. "Approved Plans" means plans and specifications approved in accordance with Section 2.01. vehou09.62844 8-5-98 "Approving Bodies" means any or all of the following entities, as appropriate in a particular context: the City; Brazoria County, Texas; Harris County, Texas; the TNRCC; the Attorney General of Texas; the Comptroller of Public Accounts of Texas; the United States Department of Justice; and all other federal, state, and local governmental authorities having regulatory jurisdiction and authority over the financing of the Facilities, the construction of the Facilities, or the subject matter of this Agreement. "Bonds" means the District's bonds, notes, or other evidences of indebtedness issued from time to time for the purpose of purchasing, constructing, acquiring, operating, repairing, improving, or extending the Facilities, payment of Connection Charges, and for such other purposes permitted or provided by state law, whether payable from ad valorem taxes, the proceeds of one or more future bond issues, or otherwise, and including any bonds, notes, or similar obligations issued to refund such bonds. "City" means the City of Pearland, Texas, a municipal corporation and home -rule city of the State of Texas. "City Manager" means the City Manager of the. City or the City Manager's designee. "Connection Charge" means the amount to be paid to the City for water and wastewater capacity for each improvement within the District at the time of connection of the improvement to the Facilities, as defined in Section 5.04. "Consent Ordinance" means the ordinance or resolution to be adopted by the City evidencing the City's consent to the inclusion of land within the District in accordance with Texas Local Government Code Section 42.042 and Texas Water Code Section 54.016, each as amended. "Construction Costs" means costs associated with any particular construction project under the terms of this Agreement, including, but not limited to, costs of construction, acquisition, and installation; engineering fees and expenses; costs of advertising; costs of acquiring necessary licenses, permits, waste control orders, discharge permits or amendments thereto; fiscal, legal, and administrative costs; material -testing costs; site, easement, and permit costs; and all other costs and expenses directly relating to the foregoing, together with an amount for contingencies or estimated Construction Costs of not more than fifteen percent (15%) of the foregoing, provided that no contingency amount shall be included in "Construction Costs" regarding a particular construction project once that project is complete. "Developers" means SUNLAKE LIMITED, a Texas limited partnership, HANNOVER ESTATES, LTD., a Texas limited partnership, and AMVEST PROPERTIES, INC., a Texas corporation. "District" means Brazoria County Municipal Utility District No. 17, a body politic and corporate and a governmental agency of the State of Texas organized under the provisions of Article XVI, Section 59 of the Texas Constitution. The term "District" shall be construed to include both the Developers and the District, as it is the intention of the parties to this Agreement that all rights, benefits, and obligations pursuant to this Agreement shall ultimately be assigned by the Developers to the District upon its creation. "District Assets" means (i) all rights, title, and interests of the District in and to the Facilities, (ii) any Bonds of the District which are authorized but have not been issued by the District, (iii) all vehou09.62844 8-5-98 page 2 rights and powers of the District under any agreements or commitments with any persons or entities pertaining to the financing, construction, or operation of all or any portion of the Facilities and/or the operations of the District, (iv) all cash and investments, and amounts owed to the District, and (v) all books, records, files, documents, permits, funds, and other materials or property of the District. "District Engineer" means Ferro-Saylors, Inc., or such other engineering firm as the District may engage from time to time. "District Obligations" means (i) all outstanding Bonds of the District, (ii) all other debts, liabilities, and obligations of the District to or for the benefit of any persons or entities relating to the financing, construction, or operation of all or any portion of the Facilities or the operations of the District, and (iii) all functions performed and services rendered by the District for and to the owners of property within the District and the customers of the services provided from the Facilities. "Financing and Reimbursement Agreement" means the District's agreement, if any, as defined in Section 3.04. "Facilities" means and includes the water distribution, wastewater collection, and drainage systems constructed or acquired or to be constructed or acquired by the District to serve lands within and near its boundaries, and all improvements, appurtenances, additions, extensions, enlargements, or betterments thereto, together with all contract rights, permits, licenses, properties, rights -of -way, easements, sites, and other interests related thereto. "Monthly Revenue Payments" means the monthly payments to be made by the City to the District, as defined in Section 6.04 hereof. "Oversized Facilities" means water, sewer, and/or drainage facilities sized to serve areas outside the District or constructed to serve areas outside the District, as defined in Section 2.04. "Payment Date" means the date each year when the Annual Payments are due, as defined in Section 6.02. "TNRCC" means the Texas Natural Resource Conservation Commission, or any successor or successors exercising any of its duties and functions related to water conservation and reclamation districts. ARTICLE II DESIGN AND CONSTRUCTION OF THE FACILITIES 2.01. Design. The Facilities shall be designed by the District Engineer in accordance with sound engineering principles and in compliance with all applicable requirements of the Approving Bodies. The plans and specifications for the Facilities shall be subject to review and approval by the City, the District, and the Approving Bodies with jurisdiction (the "Approved Plans"). The District shall not make any changes to the Approved Plans without the approval of the City. The City shall not require that the Facilities be designed to requirements more stringent than the City's requirements applicable to the design of similar facilities outside the District but within the City's jurisdiction. The District shall design the Facilities in such phases or stages as the District from time to time, in its sole discretion, may determine to be necessary and economically feasible. vehou09.62844 8-5-98 page 3 2.02. Construction. When the District determines, in its sole discretion, that it is necessary and economically feasible to construct the Facilities, the District shall proceed to award a construction contract for the Facilities based upon the Approved Plans. The Facilities shall be constructed, and all easements, equipment, materials, and supplies required in connection with the Facilities shall be acquired in the name of the District so that the District is the owner; provided, however, the District may enter financing arrangements with a third party or parties to advance funds on behalf of the District for the construction of the Facilities. The Facilities shall be installed, construction contracts shall be awarded, and payment and performance bonds obtained all in accordance with the general law for municipal utility districts and in full compliance with the applicable requirements of the Approving Bodies. In addition to any other construction contract provisions, any construction contract for the Facilities shall include the contractor's two (2) year warranty of work performed under the contract. The District Engineer shall serve as project engineer for the District for the Facilities construction, shall make a recommendation regarding award of the construction contract, shall make monthly reports to the District Board of Directors on the progress of construction, shall review and approve all pay estimates submitted for the District Board of Directors' approval, shall submit all change orders to the District Board of Directors for approval and to the City for its records, shall provide appropriate inspection during construction of the Facilities, and shall recommend final acceptance of the Facilities to the District's Board of Directors when appropriate. The District Engineer shall file all required documents with the TNRCC. 2.03. Acceptance of Facilities. Upon completion of the Facilities, the District Engineer shall certify that the Facilities have been completed in substantial compliance with the Approved Plans; the District shall certify that all bills and sums of money due in connection with the construction and installation of the Facilities have been fully paid and that the Facilities are free of any and all liens and claims, all according to the certification of the construction contractor. The District Engineer shall provide three (3) copies of construction drawings of the Facilities to the District. The District shall accept the construction of the Facilities in writing from the construction contractor. The District shall then convey the Facilities to the City in accordance with the City's procedure for acceptance of such facilities in areas outside the District and within the City and the provisions of Article IV below. 2.04. Oversized Facilities. In conjunction with the District's design and construction of the Facilities, as described in this Article II, the City may determine from time to time that certain Facilities should be sized to serve areas outside the District, as well as areas within the District, or the City and the District may determine that the District should construct certain water, sewer, and/or drainage facilities outside the District to serve areas outside the District (in either case, facilities sized or constructed to serve areas outside the District shall be referred to in this Agreement as the "Oversized Facilities"). Subject to the terms and conditions of this Section 2.04, the District hereby agrees that, in conjunction with the District's design and construction of the Facilities as set out in this Agreement, the District shall cooperate with the City to include the Oversized Facilities as required by the City. The City, in turn, hereby agrees that as between the District and the City, the City shall fund its share of the Construction Costs of the Oversized Facilities. In order to carry out the design and construction of Oversized Facilities, the City and the District agree to enter a development agreement in the form attached to this Agreement, and incorporated for all purposes, as Exhibit "A." If the Oversized Facilities are designed and constructed by the District as part of the design and construction of Facilities (collectively, the Oversized Facilities and the Facilities, the "Project"), the Construction Costs of the Oversized Facilities shall be determined in accordance with TNRCC rules and regulations so that Project Construction Costs will be shared by the City and the District on the basis of benefits received, which are generally the design capacities in the Project for the City and the District respectively. vehou09.62844 8-5-98 page 4 ARTICLE III FINANCING OF THE FACILITIES 3.01. Authority of District to Issue Bonds. The District shall have authority to issue, sell, and deliver Bonds from time to time, as deemed necessary and appropriate by the Board of Directors of the District, for the purposes, in such forms and manner, and as permitted or provided by federal law, the general laws of the State of Texas, and the Consent Ordinance. The District shall not be authorized to sell Bonds until it has provided the City with a certified copy of the TNRCC order approving each bond issue in which the TNRCC concludes that a District debt service tax rate of $1.50 or less per $100 of assessed valuation is feasible in accordance with the TNRCC's rules in effect at the time of such determination. The District's obligation to provide a certified copy of the TNRCC order including such conclusion shall not be construed as a limitation on the District's authority to levy an unlimited tax rate, it being understood and acknowledged that the District's bonds shall be payable from and secured by a pledge of the proceeds of an ad valorem tax, without legal limitation as to rate or amount. The District shall provide the City with copies of the Official Statement and the District's resolution authorizing the issuance of the Bonds for each issue prior to the delivery of the Bonds to the initial purchaser. 3.02. Distribution of Bond Proceeds. The proceeds of Bonds issued by the District shall be used and may be invested or reinvested, from time to time, as provided in the order or orders of the District authorizing the issuance, sale, and delivery of such Bonds and in accordance with the federal, state, and local laws and regulations governing the proceeds of the District's sale of its Bonds. 3.03. Bonds as Obligation of District. Unless and until the City shall dissolve the District and assume the District Assets and District Obligations, the Bonds of the District, as to both principal and interest, shall be and remain obligations solely of the District and shall never be deemed or construed to be obligations or indebtedness of the City; provided, however, that nothing herein shall limit or restrict the District's ability to pledge or assign all or any portion of the Annual Payments or Monthly Revenue Payments, to be made by the City to the District as provided in this Agreement, to the payment of the principal of, the redemption premium, if any, or interest on the Bonds or other contractual obligations of the District relating to the financing, acquisition, or use of the Facilities. 3.04. Financing by Third Parties. From time to time, the District may enter into one or more agreements (the "Financing and Reimbursement Agreement") with landowners or developers of property located within or near the District whereby such landowners or developers will advance funds to or on behalf of the District for the acquisition and construction of the Facilities. The construction of any Facilities financed under the terms of a Financing and Reimbursement Agreement shall be subject to all the terms and conditions of this Agreement. Each Financing and Reimbursement Agreement will provide for the District's reimbursement of the person or entity advancing funds for the Facilities (i) from the proceeds of the District's sale of its Bonds, subject to all the terms and conditions of such Financing and Reimbursement Agreement, including, among other conditions, the approval of the TNRCC of the sale of the Bonds and the use of sale proceeds for such purpose; (ii) from District funds lawfully available for such purpose. vehou09.62844 8-5-96 page 5 ARTICLE IV OWNERSHIP, OPERATION. AND MAINTENANCE OF FACILITIES 4.01. District Conveyance. As the Facilities are constructed and accepted by the District in accordance with Article II, the District shall convey the Facilities to the City, reserving, however, a security interest therein for the purpose of securing the performance of the City under this Agreement. At such time as the Bonds issued to acquire and construct the Facilities have been discharged, the District shall execute a release of such security interest, and the City shall own the Facilities free and clear of such security interest. When the District conveys Facilities to the City under this Article IV, the District shall also assign to the City the construction contractor's two (2) year warranty of its work, as required under Section 2.02 above. 4.02. City Acceptance. As the Facilities are constructed and completed by the District, representatives of the City shall inspect the same and, if the City finds that the Facilities have been completed in substantial compliance with the approved plans and specifications, the City will accept the conveyance of the Facilities from the District, and the Facilities so conveyed shall be operated. maintained, and repaired by the City at its sole expense as provided in this Agreement. The City shall accept ownership of the Facilities under this Section 4.02 in accordance with the City's procedure for acceptance of such facilities in areas outside the District and within the City. If the Facilities have not been completed in substantial compliance with the approved plans and specifications, the City will immediately advise the District in what manner the Facilities do not comply, and the District shall immediately correct the same; whereupon the City shall again inspect the Facilities and accept the same if the non -complying items have been corrected. In conjunction with the City's acceptance of the Facilities, the District shall provide the City with one (1) set of the construction drawings for such Facilities. 4.03. Operation of the Facilities by the City. Upon the acceptance of the Facilities by the City from the District, the City will operate the Facilities and provide services from the Facilities to users within the District without discrimination. The City shall at all times maintain the Facilities, or cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical manner at a reasonable cost and in accordance with sound business principles, and the City will comply with all the terms and conditions of this Agreement and with all applicable federal, state, and local laws and regulations. (a) The City shall provide competent, trained personnel, licensed or certified as necessary by the appropriate regulatory authority, to operate, inspect, maintain, and repair the Facilities. The City shall inventory and maintain a listing of all of the equipment comprising the Facilities as required to provide relevant information for the scheduled maintenance and repair or replacement of the equipment comprising the Facilities. The City shall implement a scheduled maintenance program for the Facilities and shall ensure that the Facilities are maintained in the same fashion and with the same frequency as similar facilities owned and operated by the City to serve areas outside the District. (b) The City shall maintain all customer information and records necessary to provide monthly billings to customers served by the Facilities. The City shall coordinate with the District's consultants, such as attorneys, engineers, auditors, tax assessors, and financial advisors as necessary to maintain efficient operation of the Facilities. The City shall respond to inquiries or vehou09.62844 8-5-98 page 6 correspondence from governmental or regulatory authorities and the District's directors, customers, or consultants. (c) The City shall provide a monthly written report to the District indicating the total number of service connections within the District. If requested by the District, the City may provide a City representative to attend a District meeting to discuss any operating and maintenance information regarding the Facilities. 4.04. Rates and Conditions of Service. The connection of improvements to the Facilities shall be made by the City, in the same manner, by the same procedures, and for the same charges as the City makes other water and wastewater connections. Water and wastewater customers within the District shall pay rates and charges for such services to the City, on the same basis and conditions as the City provides such services to similar City customers who do not receive services from the Facilities; provided, however, in addition to the rates and charges imposed by the City on its water and wastewater customers outside the District, the City shall impose on and collect from each customer of the Facilities within the District a monthly surcharge of five dollars ($5.00) per equivalent single family residential connection. The equivalent number of single family residences attributable to any particular connection shall be computed in accordance with the service unit factors set forth in Exhibit "A," as such factors may be amended from time to time by the City in its sole discretion, provided that the City shall always apply the same service unit factors within the District as it applies to other areas within the City. The City shall bill and collect charges from the customers of the Facilities, calculated in accordance with this Section 4.04, in the same manner and under the same procedures as it bills and collects from other customers of the City that are not served by the Facilities. 4.05. Repair of the Facilities. After its acceptance of the Facilities, the City shall provide all personnel and equipment necessary to perform repairs on, and shall bear sole cost responsibility for repair of, the Facilities, including, but not limited to, service line leaks, leaks at water meters, water main breaks, repairs to valves and fire hydrants, manhole repairs, and sewer line repair and cleaning, as needed. The City shall not, however, bear cost or responsibility for initial repair of any equipment or facilities identified by the City as in need of correction prior to the City's acceptance of the Facilities under Section 4.02 above. The cost of all materials and supplies used to operate, maintain, and repair the Facilities shall be borne solely by the City. ARTICLE V CITY PLANT CAPACITY AND FINANCING 5.01. Water Supply and Distribution Facilities. The City shall provide the District with its ultimate requirements for water supply and distribution capacities. The City shall provide such capacities at the District's boundaries. The number and location of the points of connection between the City's water distribution system and the Facilities shall be mutually agreed upon by the District and the Director. The City acknowledges its obligation to provide water supply and distribution capacities for the actual requirements of the development within the District's boundaries. Any water supply and distribution capacities so required by the District shall be reserved and allocated by the City exclusively to serve the property within the District and the City shall not use such capacities to serve any other property. The City shall at all times manage the capacities in its water supply and distribution facilities so that capacity to serve development within the District is available at the time such improvements are to be connected to the Facilities. The City's obligation shall specifically include the obligation to expand, enlarge, and modify its water vehou09.62844 8-5-98 page 7 supply and distribution facilities and to secure all necessary approvals of the Approving Bodies as necessary to have capacity available to serve new improvements within the District. To enable the City to effectively manage its water system capacities in compliance with the City's obligation under this Section 5.01, the District shall provide to the City, by December 31 of each year during the term of this Agreement, a written projection of the new improvements within the District expected to be connected to the Facilities within the coming year, and such other related information as the City may reasonably require. 5.02. Wastewater Collection and Treatment Facilities. The City shall provide the District with its ultimate requirements for wastewater collection and treatment capacities. The number and location of the points of connection between the City's wastewater collection system and the Facilities shall be mutually agreed upon by the District and the Director. The City acknowledges its obligation to provide wastewater collection and treatment capacities for the actual requirements of the development within the District's boundaries. Any wastewater collection and treatment capacities so required by the District shall be reserved and allocated by the City exclusively to serve the property within the District and the City shall not use such capacities to serve any other property. The City shall at all times manage the capacities in its wastewater collection and treatment facilities so that capacity to serve development within the District is available at the time such improvements are to be connected to the Facilities. The City's obligation shall specifically include the obligation to expand, enlarge, and modify its wastewater collection and treatment facilities and to secure all necessary approvals of the Approving Bodies as necessary to have capacity available to serve new improvements within the District. To enable the City to effectively manage its wastewater system capacities in compliance with the City's obligation under this Section 5.02, the District shall provide the City no less than annually a written projection of the new improvements within the District expected to be connected to the Facilities within the coming year, and such other related information as the City may reasonably require. 5.03. Letter of Capacity Assurance; Assignability. The City agrees that the City Manager shall, upon reasonable request from the District, issue a letter of assurance to the owner of platted property within the District confirming water and wastewater utility availability for such platted property, based upon the standard City criteria published by the City regarding the calculation of water and wastewater requirements for various types of improvements. 5.04 Financing City Water and Wastewater Capacities. In consideration of the City's provision of water supply and distribution capacity and wastewater collection and treatment capacity, the District agrees to pay to the City one thousand nine hundred ninety-seven dollars ($1,997.00) per equivalent single-family residential connection to the Facilities (the "Connection Charge"). Equivalent single-family residential connections shall be computed in accordance with the service unit factors as set forth in Exhibit "A," as such factors may be amended from time to time by the City in its sole discretion, provided that the City shall always apply the same service unit factors within the District as it applies to other areas within the City. The Connection Charge shall be paid to the City by or on behalf of the District before the connection of each particular improvement to the Facilities at the same time and manner as such fees are paid for improvements in other areas of the City outside the District. The City shall not allow connection of any improvement to the Facilities for which the appropriate Connection Charge has not been paid. The City may amend the Connection Charge from time to time in accordance with the requirements of state law; provided, however, the Connection Charge shall be the same as the connection charge required outside the District and within the City limits. The District acknowledges and agrees that, besides the Connection Charge, any new connection to the Facilities will be subject to the fees, vehou09.62844 8-5-98 page 8 charges, and costs routinely collected by the City in regards to any new connection to the City's utilities whether inside or outside the District. ARTICLE VI ANNUAL PAYMENTS, MONTHLY REVENUE PAYMENTS, AND DISTRICT TAXES 6.01. Calculation of Annual Payment. In consideration of the development of the land within the District and the related increase in the taxable value of such land to the City through the acquisition of and construction of the Facilities by the District and in order to enhance the economic feasibility of the District and more equitably distribute among the taxpayers of the City and the District the burden of ad valorem taxes to be levied from time to time by the City and the District, the City agrees to collect and pay to the District a portion of the ad valorem taxes collected by the City in future years on the land and improvements within the District (the "Annual Payment"). That portion of the City property tax which will be returned to an in -city water district, including the District, shall be at a rate of $0.15 per $100 of assessed valuation. The Annual Payment shall be a payment of a portion of the City's tax revenues actually collected and received by the City, exclusive of any interest and penalties paid by the taxpayer to the City and exclusive of any collection costs incurred by the City. All Annual Payments received by the District from the City shall be deposited by the District into a debt service fund of the District and shall be applied solely to the payment of the Bonds and other debts, liabilities, and obligations of the District to or for the benefit of any persons or entities relating to the financing, construction, and acquisition of all or any portion of the Facilities. 6.02. Payment of Annual Payment. The Annual Payment shall begin on May 1 in the calendar year following the calendar year for which the District initially receives a tax roll from the Brazoria County Appraisal District and shall be payable each May 1 thereafter (the "Payment Date"), with each such Annual Payment being applicable to the calendar year preceding the calendar year of each such May 1 (e.g., if the District receives a tax roll for the calendar year 1998, the Annual Payment for such year will be due May 1, 1999). Each Annual Payment that is not paid on or before the Payment Date shall be delinquent and shall incur interest at the rate of one percent (1%) of the amount of the Annual Payment per month, for each month or portion thereof during which the Annual Payment remains unpaid. On September 1 of each calendar year, the City shall cause to be paid to the District those portions of the Annual Payment which reflect collections made by the City subsequent to the Payment Date. The obligation of the City to make Annual Payments to the District shall terminate upon the termination of this Agreement in accordance with Section 9.15 below. 6.03. Supplemental Tax Rolls: Correction Tax Rolls: Adjustment to Annual Payment. The parties recognize and acknowledge that, from time to time, the Brazoria County Appraisal District may submit to the District one or more supplemental tax rolls and/or correction tax rolls and that each such supplemental tax roll and/or correction tax roll may affect the total value of taxable properties within the District for a particular year and therefore the Annual Payment due and payable by the City for such year. The District agrees that promptly upon receiving a supplemental tax roll and/or correction tax roll, the District shall deliver such supplemental tax roll and/or correction tax roll to the City. Promptly upon receiving a supplemental tax roll and/or collection tax roll from the District, the City shall recalculate the amount of the Annual Payment pertaining thereto and shall notify the District of the amount of such recalculated Annual Payment. Within forty-five (45) days from the date on which the District receives notice of a recalculated Annual Payment, the City shall pay to the District the amount, if any, by which the recalculated Annual Payment exceeds vehou09.62844 8-5-98 page 9 the amount of the Annual Payment previously paid by the City to the District for the year in question, or the District shall pay to the City the amount, if any, by which the recalculated Annual Payment is Tess than the amount of the Annual Payment previously paid; provided, however, that if such amount in either instance is less than $1,000.00, rather than payment within such 45 days, the next Annual Payment shall be adjusted accordingly. 6.04. Payment of Monthly Revenue Payments. In addition to the Annual Payment, the City shall make a payment each month to the District ("Monthly Revenue Payment") equal to $5.00 per equivalent single-family connection located within the District; equivalent single-family connections shall be computed in accordance with the service unit factors as set forth in Exhibit "B," attached to this Agreement and incorporated for all purposes, as such factors may be amended from time to time by the City in its sole discretion, provided that the City shall always apply the same service unit factors within the District as it applies to other areas within the City. The Monthly Revenue Payment shall be paid by the City to the District within thirty (30) days of the last day of the month for which the Monthly Revenue Payment applies (the "Due Date"). Each Monthly Revenue Payment that is not paid on or before the Due Date shall be delinquent. If the City fails or refuses to pay a delinquent Monthly Revenue Payment for a period in excess of sixty (60) days from the receipt of written notice from the District regarding same, then each Monthly Revenue Payment included in such notice shall incur interest at the rate of one per cent (1%) of the amount of the Monthly Revenue Payment per month, for each month or portion thereof during which a Monthly Revenue Payment remains unpaid upon expiration of such sixty (60) day period. The obligation of the City to make Monthly Revenue Payments shall terminate upon the termination of this Agreement in accordance with Section 9.15 hereof. The City and the District acknowledge and agree that the District is dependent upon the Monthly Revenue Payments in order that development within the District may be competitive with development in surrounding areas. 6.05. Access to Records for Verifying Calculation of Annual and Monthly Revenue Payments. The City shall maintain proper books, records, and accounts; shall provide the District with an accounting together with each Annual and/or Monthly Revenue Payment, and shall afford the District or its designated representatives reasonable access to its books, records, and accounts for purposes of verifying the amounts of each Annual Payment and/or Monthly Revenue Payment or recalculated Annual Payment and/or Monthly Revenue Payment which is or becomes due and payable by the City hereunder. The District shall maintain proper books, records, and accounts of all Bonds and the District's debt service requirements and shall afford the City or its designated representatives reasonable access thereto for purpose of verifying the amounts of Annual and/or Monthly Revenue Payments relative to the District's debt service requirements and general operating requirements. 6.06. District Taxes. The District is authorized to assess, levy, and collect ad valorem taxes upon all taxable properties within the District to provide for (i) the payment in full of the District Obligations, including principal, redemption premium, if any, or interest on the Bonds and to establish and maintain any interest and sinking fund, debt service fund, or reserve fund and (ii) for maintenance purposes, all in accordance with applicable law. The parties agree that nothing herein shall be deemed or construed to prohibit, limit, restrict, or otherwise inhibit the District's authority to levy ad valorem taxes as the Board of Directors of the District from time to time in its sole discretion may determine to be necessary. The City and the District recognize and agree that all ad valorem tax receipts and revenues collected by the District, together with all Annual Payments and Monthly Revenue Rebate Payments shall become the property of the District and may be applied by the District to the payment of all proper debts, obligations, costs, and expenses of the District and may be pledged or assigned to the payment of all or any designated portion of vehou09.62844 8-5-98 page 10 the principal or redemption premium, if any, or interest on the Bonds or otherwise in accordance with applicable law. Each party to this Agreement agrees to notify the other party as soon as is reasonably possible in the event it is ever made a party to or initiates a lawsuit for unpaid taxes. 6.07. Pledge of Payments. The parties acknowledge and agree that the District may pledge the Annual Payments, the Monthly Revenue Payments, and/or any portion of either in connection with the District's issuance of its Bonds. ARTICLE VII DISSOLUTION OF THE DISTRICT 7.01. Dissolution of District. The City and District recognize and agree that the City may, pursuant to the procedures and provisions and subject to the limitations set forth in the general laws of the State of Texas including, but not limited to, Section 43.074, Texas Local Government Code, abolish and dissolve the District and assume the District Assets and District Obligations upon a vote of not less than two-thirds (2/3) of the entire membership of the City Council to adopt an ordinance to such effect, if the City Council finds: (a) that the District is no longer needed, (b) that the services and functions performed by the District can be served and performed by the City, and (c) that it would be in the best interests of the citizens and property within the District and the City that the District be abolished. In order to ensure that the property owners and inhabitants of the City and the District are afforded sufficient time and opportunity to realize the benefits and public utility to be derived from the creation and operation of the District and the financing, construction and implementation of the plan of improvements for the District, and in order to contribute to the financial stability and feasibility of the District by ensuring a sufficient longevity of the District's existence to permit the District to reach a satisfactory level of financial maturity, the City agrees that the District shall not be abolished until such time as the District is fully developed and has sold all Bonds necessary to finance the costs of the Facilities and has reimbursed all developers and landowners within the District in accordance with the Financing and Reimbursement Agreements previously entered into by the District. 7.02. Transition upon Dissolution. In the event all required findings and procedures for the dissolution of the District have been duly, properly, and finally made and satisfied by the City, and unless otherwise mutually agreed by the City and the District pursuant to then existing law, the District agrees that its officers, agents, and representatives shall be directed to cooperate with the City in any and all respects reasonably necessary to facilitate the dissolution of the District and the transfer of the District Assets to and the assumption of the District Obligations by the City. ARTICLE VIII REMEDIES IN EVENT OF DEFAULT The parties hereto expressly recognize and acknowledge that a breach of this Agreement by either party may cause damage to the nonbreaching party for which there will not be an adequate remedy at law. Accordingly, in addition to all the rights and remedies provided by the laws of the State of Texas, in the event of a breach hereof by either party, the other party shall be entitled to the equitable remedy of specific performance. vehou09.62844 8-5-98 page 11 ARTICLE IX MISCELLANEOUS PROVISIONS 9.01. Permits. Fees, Inspections. The District understands and agrees that all City ordinances and codes, including applicable permits, fees, and inspections, shall be of full force and effect within its boundaries the same as to other areas within the City's corporate limits. 9.02. Force Majeure. In the event either party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, except the obligation to pay amounts owed or required to be paid pursuant to the terms of this Agreement, then the obligations of such party, to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, the party whose contractual obligations are affected thereby shall give notice and full particulars of such force majeure to the other party. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term "force majeure," as used herein, shall include without limitation of the generality thereof, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, drought, arrests, restraint of government, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply resulting in an inability to provide water necessary for operation of the water and wastewater systems hereunder, and any other inabilities of any party, whether similar to those enumerated or otherwise, which are not within the control of the party claiming such inability, which such party could not have avoided by the exercise of due diligence and care. 9.03. Approvals and Consents. Approvals or consents required or permitted to be given under this Agreement shall be evidenced by an ordinance, resolution or order adopted by the governing body of the appropriate party or by a certificate executed by a person, firm or entity previously authorized to give such approval or consent on behalf of the party. Approvals and consents shall be effective without regard to whether given before or after the time required for giving such approvals or consents. 9.04. Address and Notice. Any notice to be given under this Agreement shall be given in writing, addressed to the party to be notified as set forth below, and may be given either by depositing the notice in the United States mail postage prepaid, registered or certified mail, with return receipt requested; by messenger delivery; or by telefacsimile. Notice deposited by mail shall be effective three (3) days after posting. Notice given in any other manner shall be effective upon receipt by the party to be notified. For purposes of notice, the addresses of the parties shall be as follows: If to the City, to: City of Pearland Attn: City Manager 3519 Liberty Dr. Pearland, Texas 77581 Telefacsimile No. 281-485-7992 vehou09.62844 8-5-98 page 12 If to the District, to: Brazoria County Municipal Utility District No. 17 c/o Vinson & Elkins L.L.P. 2300 First City Tower 1001 Fannin Houston, Texas 77002-6760 Attn: James A. Boone Telefacsimile No. 713-615-5523 The parties shall have the right from time to time to change their respective addressees by giving at least fifteen (15) days' written notice of such change to the other party. 9.05. Assignability. This Agreement shall not be assignable by either party; provided, however, that, upon the creation and confirmation of the District, the District's written assumption of the Agreement, in the form attached to this Agreement, and incorporated for all purposes, as Exhibit "C," duly delivered to the City, in accordance with the provisions of Section 9.05, shall effectively convey all the rights and obligations of the "District" under this Agreement to the District and the Developers shall no longer have any rights or obligations under this Agreement. Other than such unique assignment from the Developers to the District, this Agreement shall not be assignable by either party. 9.06. No Additional Waiver Implied. The failure of either party to insist upon performance of any provision of this Agreement shall not be construed as a waiver of the future performance of such provision by the other party. 9.07. Reservation of Rights. All rights, powers, privileges and authority of the parties hereto not restricted or affected by the express terms and provisions hereof are reserved by the parties and, from time to time, may be exercised and enforced by the parties. 9.08. Parties in Interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third parties. 9.09. Merger. This Agreement embodies the entire understanding between the parties and there are no representations, warranties, or agreements between the parties covering the subject matter of this Agreement other than the Consent Ordinance between the City and the District. If any provisions of the Consent Ordinance appear to be inconsistent or in conflict with the provisions of this Agreement, then the provisions contained in this Agreement shall be interpreted in a way which is consistent with the Consent Ordinance. 9.10. Modification: Exhibit. This Agreement shall be subject to change or modification only with the mutual written consent of the City and the District. The exhibit attached to this Agreement is incorporated by this reference for all purposes. 9.11. Captions. The captions of each section of this Agreement are inserted solely for convenience and shall never be given effect in construing the duties, obligations or liabilities of the parties hereto or any provisions hereof, or in ascertaining the intent of either party, with respect to the provisions hereof. vehou09.62844 8-5-98 page 13 9.12. Interpretations. This Agreement and the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of this Agreement. 9.13. Severability. If any provision of this Agreement or the application thereof to any person or circumstances is ever judicially declared invalid, such provision shall be deemed severed from this Agreement and the remaining portions of this Agreement shall remain in effect. 9.14. Term and Effect. This Agreement shall remain in effect until the earlier to occur of (i) the dissolution of the District by the City or (ii) the expiration of forty (40) years from the date hereof. Further, this Agreement shall automatically terminate in the event that the TNRCC does not adopt an order creating the District on or before December 31, 1999. [EXECUTION PAGES FOLLOW] vehou09.62844 8-5-98 page 14 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies, each of equal dignity, as of the date first given above. THE CITY OF PEARLAND, TEXAS By: ATTEST: City Manager By: City Secretary (SEAL) APPROVED AS TO FORM: By: City Attorney vehou09.62844 8-5-98 page 15 ATTEST: By: Name: Title: (SEAL) ATTEST: By: Name: Title: (SEAL) SUNLAKE LIMITED, a Texas limited partnership By: AMERIFIRST CORPORATION, a Texas corporation, its general partner By: Name: Title: HANNOVER ESTATES, LTD., a Texas limited partnership By: AMVEST CORPORATION, a Texas corporation, its general partner By: Name: Title: vehou09.62844 8-5-98 page 16 ATTEST: By: Name: Title: (SEAL) AMVEST PROPERTIES, INC., a Texas corporation By: Name: Title: vehou09.62844 8-5-98 page 17 EXHIBIT "C" ASSUMPTION OF AGREEMENT Brazoria County Municipal Utility District No. 17, a conservation and reclamation district created under the authority of Article XVI, Section 59 of the Texas Constitution by the Texas Natural Resource Conservation Commission to provide water supply, sanitary sewer, and drainage facilities to serve the area within its boundaries (the "District"), has assumed, and by these presents does assume, the terms of the Utility Agreement (the "Agreement"), dated , 1998, a copy of which is attached and incorporated into this document for all purposes. Specifically, the District has accepted and does accept all the rights, title, interest, obligations, liabilities, and responsibilities of the "District" as defined in the Agreement and the Developers, as defined in the Agreement, shall have no further rights, title, interest, obligations, liabilities, or responsibilities under the Agreement. All notices to the District pursuant to the Contract shall be addressed to: Brazoria County Municipal Utility District No. 17 c/o Vinson & Elkins L.L.P. 2300 First City Tower 1001 Fannin Houston, Texas 77002-6760 Attn: James A. Boone EXECUTED AND DELIVERED ON ATTEST: By: Name: Title: (SEAL) BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 17 By: Name: Title: vehou09.62844 8-5-98 page 18 Exhibit A DEVELOPMENT AGREEMENT (EXHIBIT "A" TO RESOLUTION R_^ J This Agreement is entered into this day of , 199_, by and between the CITY OF PEARLAND, TEXAS, (hereinafter "City"), and a Texas general partnership (hereinafter "Developer'). , WHEREAS, Developer petitioned City for the creation of an In -City Munidpal Utility District (hereinafter "MUD") and City consented to the creation of the MUD on 199_, encompassing acres, generally located at ; and WHEREAS, Developer plans to construct a water main, sanitary sewer main, and appurtenances necessary for the City to provide water and sanitary sewer service to the MUD and to dedicate said water main, sanitary sewer main, and appurtenances to the City for operation and maintenance; and WHEREAS, City desires to cooperate with Developer to provide water and sanitary sewer service to the MUD, and at the same time, increase and improve City's capacity to serve other properties in the vicinity of the MUD; and WHEREAS, City and Developer desire an agreement to set forth their respective responsibilities with regard to providing water and sanitary sewer service to the MUD. WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed as follows: 1. A -inch sanitary sewer gravity main and an -inch water main are needed to serve Developer's requirements for the MUD and are required to be extended to the MUD from the existing termination points of the utilities in the vicinity of 2. To serve additional tracts, the City has requested that Developer construct a -inch sanitary sewer gravity main and a -inch water main. 3. The estimated costs for the water and sanitary sewer main extensions to serve Developer's requirements are $ . The estimated costs for the water and sanitary sewer main extensions as requested by the City are $ . Therefore, the estimated oversizing cost is $ and the engineering allocation for the oversizing is $ . The total estimated oversizing cost to be reimbursed by City to Developer is $ as described in Exhibit A. 1