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HomeMy WebLinkAboutAgenda_GUS_04.10.2015Notice of Meeting for the Georgetown Utility System Advisory Board of the City of Georgetown April 10, 2015 at 2:00 PM at Georgetown Municipal Complex, 300-1 Industrial Avenue, Georgetown TX The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711. Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A Call to Order The Board may, at any time, recess the Regular Session to convene in Executive Session at the request of the Chair, a Board Member, the City Manager, Assistant City Manager, General Manager of Utilities, City Council Member, or legal counsel for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551, and are subject to action in the Regular Session that follows. B Introduction of Visitors Employee Recognition C -- Discussion regarding the Project Progress Report, timelines including projects and Council Actions. – Michael Hallmark, Project Manager D Industry Updates Legislative Regular Agenda E Review and possible action to approve the minutes from the regular GUS Board meeting held on March 13, 2015. - Sheila K. Mitchell, GUS Board Liaison F Review of City Council approved Bylaws. -- Sheila Mitchell, GUS Board Liaison G Consideration and possible recommendation related to execution of a Wholesale Water Agreement and a Wholesale Wastewater Agreement between the City of Leander and the City of Georgetown for service to the Lively Tract. -- Glenn W. Dishong, Utility Director H Consideration and possible recommendation of an Offsite Wastewater Utility Construction Agreement with Sentinel Land Company, LLC (Texas) and the West Williamson County Municipal Utility District No. 2 for the Lively Tract. -- Wesley Wright, P.E., Systems Engineering Director I Discussion and presentation of the draft 2015-2016 Capital Improvement Plan -- Wesley Wright, P.E., Systems Engineering Director Adjournment CERTIFICATE OF POSTING I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the ______ day of __________________, 2015, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. ____________________________________ Jessica Brettle, City Secretary City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Call to Order The Board may, at any time, recess the Regular Session to convene in Executive Session at the request of the Chair, a Board Member, the City Manager, Assistant City Manager, General Manager of Utilities, City Council Member, or legal counsel for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551, and are subject to action in the Regular Session that follows. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: -- Discussion regarding the Project Progress Report, timelines including projects and Council Actions. – Michael Hallmark, Project Manager ITEM SUMMARY: GUS Projects: EARZ 2013-14 EARZ 2014-15 Public Training Facility Offsite Wastewater Sequoia Spur Elevated Storage Tank (EST) Snead Drive Streets and Wastewater Improvements Council Actions FINANCIAL IMPACT: N/A SUBMITTED BY: Michael Hallmark ATTACHMENTS: Description Type Project Progress Reports and Council Actions Backup Material City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Review and possible action to approve the minutes from the regular GUS Board meeting held on March 13, 2015. - Sheila K. Mitchell, GUS Board Liaison ITEM SUMMARY: Board to review, revise and/or approve the minutes from the regular meeting held on March 13, 2015. FINANCIAL IMPACT: N/A SUBMITTED BY: Sheila K. Mitchell/GUS Board Liaison ATTACHMENTS: Description Type GUS March 13 2015 DRAFT Minutes Backup Material Notice of Meeting of the Georgetown Utility Systems Advisory Board and the Governing Body of the City of Georgetown, Texas March 13, 2015 at 2:00PM at Georgetown Municipal Complex, 300-1 Industrial Avenue, Georgetown, TX The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participation at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upo n request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512)930-3652 or City Hall at 113 East 8th Street for additional information: TTY users route through Relay Texas at 711. Board Members Present: Bill Stump– Chair, Robert Kostka, Steve Fought, Ed Pastor, Mike Cunningham, Patty Eason (arrived at 2:04) Board Members Absent: Joyce Mapes Staff Present: Mike Babin, Glenn Dishong, Wesley Wright, Michael Hallmark, David Munk, Chris Foster, Leticia Zavala, David Thomison, Jimmy Sikes, Skye Masson, Trina Bickford, Chelsea Solomon, Sheila Mitchell Others Present: Michael Newman & Trae Sutton/KPA Engineers, Chris Pousson, Ryan Wolf Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order – Called to order at 2:02PM by the Chairman Stump The Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the Chair, a Board Member, the City Manager, Assistant City Manager, General Manager of Utilities, City Council Member, or legal counsel for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551, and are subject to action in the Regular Session that follows. B. Introduction of Visitors – Michael Newman and Trae Sutton/KPA Engineers, Mike Cunningham (new board member) Employee Recognition (presented by Thomison) – Ryan Wolf and Chris Pousson. Thomison introduced Pousson as newest member of management team; recent promotion to Water Services Supervisor. Has been with City for over eleven years and has worked his way up to position. Thomison introduced Wolf, recognizing him for achieving his Class A Water license. Only about 550 operators in Texas hold license. Wolf was presented with a plaque for his achievement. Wolf originally came from Brushy Creek and also worked for City of Bastrop. Dishong noted Wolf has achieved highest license in water and will be working on license in wastewater. Board congratulated Wolf and thanked both he and Pousson for their dedication to the City. Thomison, Wolf and Pousson departed at 2:04PM C. Discussion regarding the Project Progress Report, timelines including projects and Council Actions. – Michael Hallmark, Project Manager Discussion: Hallmark presented reports and answered any questions. Kostka asked about Snead Drive and Hallmark explained currently going through easement process. Wright explained easement is for water quality pond; expected to bid in April. Stump asked about Sequoia EST and Hallmark explained on hold for possible cost savings. Wright noted possible MUD partnership for proposed development; under negotiations. Stump asked and Foster provided update on solar contract which has been signed; press release coming out soon. D. Industry Updates Discussion: Babin stated hearing date regarding Chisholm Trail CCN transfer scheduled around July 20-22. Staff will be involved with hearing. On the Legislative front – a bill has been introduced to make contracts between municipal utilities and water districts to be open records contracts. These are not generally open to the public. We will be opposed to that. The CCN transfer public notices went out; meeting filing deadline will be end of next week. Dishong stated this is a re-notice required by PUC. Hearing and CCN transfer approval will finalize the process. Another legislative bill introduced regarding congestion rights and revenues; this is transmission congestion (purchase options we buy ahead of time). Bill would reallocate rights to a pool to cover transmission costs. Foster explained further. We will likely oppose this bill. Since the last GUS Board meeting, City Council of Killeen took up matter of the merger with CTSUD. They introduced the subject for consideration to possibly intervene. The matter was discussed at additional Killeen Council meetings to clarify details. Babin further explained all procedures have been followed and recognized as a legal transaction and the time period to intervene in the CCN transfer has passed. Subsequent to those Council meetings, Jim has met with City Manager of Killeen and will be setting up future joint planning meetings to discuss options and future plans for Bell Co and areas around Killeen ETJ. Williamson Co Raw Water Line is not flowing now since our lake has reached the level to not run the pumps. Kostka asked how this affects Round Rock and Babin stated there is none. Cunningham asked if Brushy Creek is drawing from lake; Dishong stated yes. Legislative Regular Agenda The Board will individually consider and possibly take action on any or all of the following items: E. Nominations and election of Vice-Chair of the GUS Board. – Bill Stump, GUS Board Chair Discussion: Nominations – Eason nominated Kostka; Kostka declined. Kostka nominated Pastor. Pastor accepted nomination. Motion by Kostka, seconded by Fought to elect Pastor as Vice- Chair of the GUS Board. Approved 6-0-1 (Mapes absent) F. Nominations and election of Secretary of the GUS Board. – Bill Stump, GUS Board Chair Discussion: Nominations – Kostka nominated Cunningham. Cunningham accepted nomination. Motion by Fought, seconded by Kostka to elect Cunningham as Secretary of the GUS Board. Approved 6-0-1 (Mapes absent) G. Review and possible action related to the Day and Time of GUS Board Meetings. – Bill Stump, GUS Board Chair Discussion: Stump reviewed list of 2015-16 meeting dates provided in board packet. No further discussion. Motion by Kostka, seconded by Pastor to approve the Day and Time of GUS Board meetings as presented to the board. Approved 6-0-1 (Mapes absent) H. Review and possible action to approve the minutes from the Regular GUS Board meeting held on February 13, 2015 and the Special GUS Board meeting held on February 18 , 2015. – Sheila K. Mitchell, GUS Board Liaison Discussion: Kostka suggested clarifying motion from February 13th Executive session and revise minutes to reflect. Mitchell will make correction to read “seconded by Stump to recommend to Council to move forward with the SunEdison Solar Power Purchase Agreement.” Board agreed with suggested language. Motion by Kostka, seconded by Fought to approve the minutes from the Regular GUS Board meeting held on February 13, 2015 and the Special GUS Board meeting held on February 18, 2015. Approved 6-0-1 (Mapes absent) NOTE: Stump returned to item after approval of Item ‘I” to formally approve the minutes from the Special GUS Board meeting held on February 18, 2015. Discussion: None. Motion by Kostka, seconded by Eason to approve the minutes from the Special GUS Board meeting held on February 18, 2015. Approved 6-0-1 (Mapes absent) I. Consideration and possible recommendation to approve Task Order KPA-15-003 with Kasberg, Patrick & Associates, LP of Georgetown, Texas, for professional services related to the Shell Road Waterline Improvements in the amount of $534,998.00. – Wesley Wright, P.E., Systems Engineering Director/Michael Hallmark, Project Manager Discussion: Hallmark noted 16” waterline on Shell Road providing locations of connections. Capability for secondary feed into Sun City EST. Hallmark provided details of scope of work. Pastor asked and Hallmark stated close proximity to Williamson County Raw Water Line (WCRWL). Will be in a private utility easement. Cunningham asked about engineer’s estimate and time and Hallmark stated approximately one year. Wright noted CIP last year Board and council approved design and property acquisition. Next month’s meeting we will discuss CIP and look at construction funds. Pastor asked about tying into EST project; Wright stated possibly but leaning towards not putting on same line. Hallmark noted different pressure plain so no anticipated issues. Motion by Cunningham, seconded by Kostka to approve Task Order KPA- 15-003 with Kasberg, Patrick & Associates, LP of Georgetown, Texas, for professional services related to the Shell Road Waterline Improvements in the amount of $534,998.00. Approved 6-0-1 (Mapes absent) NOTE: Board returned to item ‘H’ above for approval of the Special Board meeting minutes. After approval, Board returned to item ‘J’ for discussion and approval. J. Consideration and possible recommendation to award the contract for Electric System Substation Maintenance to M&S Power Systems of Spring Branch, Texas, with a five year contract total of $93,239.00. – Jimmy Sikes, T&D Services Supervisor/Glenn W. Dishong, Utility Director Discussion: Sikes noted four bids were received in February. Bid out on a five year cycle. Requirements vary each year so each individually bid. Total each year was less than $50,000 to be considered by Board and Council but total overall estimate is $93,239.00 therefore bringing forward for review and consideration. Stump asked what is performed in maintenance and Sikes provided details such as testing of relays, sequences, correct currents, test under frequency protection, all equipment, etc. Everyone in the state adheres to the same policies for testi ng. Stump stated most all testing instead of maintenance. Sikes noted all is preventative maintenance. Kostka asked if City has used company before and Sikes stated M&S Engineering currently performs our substation engineering. This is a new testing division of their company. Sikes noted they are fairly new in business but staff has 10-20 year’s experience performing the work; wanting to get their name out in business. Cunningham asked and Sikes explained his staff wrote specs for work to be performed; based on LCRA Maintenance requirements and NERC approved. Motion by Kostka, seconded by Cunningham to award the contract for Electric System Substation Maintenance to M&S Power Systems of Spring Branch, Texas, with a five year contract total of $93,239.00. Approved 6-0-1 (Mapes absent) Adjournment Motion by Eason, seconded by Fought to adjourn meeting. Approved 6-0-1 (Mapes absent) Adjourned at 2:31PM __________________________ _____________________________ Bill Stump – Board Chair Mike Cunningham – Secretary _________________________________ Sheila K. Mitchell, GUS Board Liaison City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Review of City Council approved Bylaws. -- Sheila Mitchell, GUS Board Liaison ITEM SUMMARY: On November 11, 2014, City Council approved updates to Chapter 2.109 of the Code of Ordinances regarding the GUS Board. On February 24, 2015, City Council approved a Resolution amending the GUS Board Bylaws in order to conform with updates to the GUS Board Ordinance with Council direction to amend certain provisions of the Code of Ordinances Chapter 2.36 regarding Board appointments, terms, and organization. On March 24, 2015, City Council approved the amendments to Chapter 2.36 and the Board Bylaws have been revised and approved in accordance with City Council’s direction. This item is a review of the Council-approved bylaws for the Board’s information. FINANCIAL IMPACT: N/A SUBMITTED BY: Sheila K. Mitchell, Board Liaison ATTACHMENTS: Description Type GUS Bylaws rev March 2015 Backup Material City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Consideration and possible recommendation related to execution of a Wholesale Water Agreement and a Wholesale Wastewater Agreement between the City of Leander and the City of Georgetown for service to the Lively Tract. -- Glenn W. Dishong, Utility Director ITEM SUMMARY: Part of the CTSUD CCN settlement agreement between Leander, CTSUD, and Georgetown provided for Leander to be the retail provider of water service to the Lively Tract located within the Leander ETJ. The proximity of Georgetown water and wastewater infrastructure provides an opportunity for Leander to contract with Georgetown for 1) Short term wholesale water service until permanent Leander infrastructure is available to service the tract some time in 2021, and 2) Long term wholesale wastewater service via Goergetown's South San Gabriel Interceptor. The short term wholesale water service agreement provides for wholesale service to the Lively Tract. Leander will provide retail service at its water service rates including customer meter reading, billing, and on-site line maintenance. Georgetown will provide water from its water system via a master meter at its normal out-of-city non-residential rate. The term of the agreement is until August 8, 2021, the same term as the Leander, CTSUD, and Georgetown Settlement Agreement. The long term wholesale wastewater agreement provides for wholesale service to the Lively Tract. Leander will provide retail service at its wastewater service rates including billing and on-site line maintenance. Georgetown will provide service via the South San Gabriel Interceptor at its normal out of city residential rate (less an amount attributed to retail service for billing, on-site line maintenance, etc) multiplied by the number of residential connections that exist during the billing month. The term of the agreement is for 40 years. Leander will collect Georgetown's Wastewater Impact Fee and remit monthly to Georgetown. FINANCIAL IMPACT: Both contracts involve the use of standard residential or non-residential rate structure for revenues. Contracts will result in net revenues to the Water Fund. SUBMITTED BY: Glenn W. Dishong, Utility Director ATTACHMENTS: Description Type Wholesale Water Agreement Backup Material Wholesale Wastewater Agreement Backup Material Exhibit A (for both agrmnts) Backup Material Exhibit B (for both agrmnts) Backup Material Exhibit C (Water Agrmnt) Backup Material Exhibit C (for WW Agrmnt) Backup Material Exhibit D (Water Agrmnt) Backup Material FINAL 4/4/2015 TEMPORARY WHOLESALE WATER SERVICES AGREEMENT BETWEEN CITY OF GEORGETOWN AND CITY OF LEANDER This TEMPORARY WHOLESALE WATER SERVICES AGREEMENT (this “Agreement”) is made and entered into by and between the CITY OF GEORGETOWN, home rule municipality located in Williamson County, Texas (“Georgetown”) and the CITY OF LEANDER, home rule municipality located in Williamson County, Texas (“Leander”). WHEREAS, this Agreement governs the provision of temporary wholesale water services by Georgetown to Leander for approximately 437.05 acres of land described by metes and bounds on the attached Exhibit A and by sketch attached as Exhibit B (the “Land”); and WHEREAS, Georgetown and Leander are parties to that certain “Settlement Agreement” in the Matter of the Application from the City of Georgetown, Certificate of Convenience and Necessity (“CCN”) No. 12369, to Acquire Facilities and Transfer and Cancel CCN No. 11590 Held by Chisholm Trail Special Utility District in Bell, Burnet, and Williamson Counties (SOAH Docket No. 582-14-3380; TCEQ Docket No. 2014-0437-UCR) (the “Settlement Agreement”), and the “Agreement Regarding Release of the Lively Tract” (the “Release Agreement”), and WHEREAS, the Settlement Agreement and the Release Agreement contemplate, among other things, that Leander will file an application with the TCEQ seeking to transfer the Land into Leander’s water CCN, and that in the interim Georgetown and Leander will coordinate as to who will provide water service to the Land; and WHEREAS, the Land has not yet been transferred into Leander’s water CCN and Leander does not yet have the necessary capital improvements in place to provide water service to the Land; and WHEREAS, on a temporary basis Georgetown can provide a daily wholesale potable water supply up to the Connection Limit (defined herein) and not to exceed the Annual Water Supply (defined herein) on an interim basis until the Leander Completion Date (defined herein), and Leander desires Georgetown to deliver said wholesale potable water to Leander on the terms and conditions set forth herein. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Georgetown and Leander agree as follows: ARTICLE I DEFINITIONS 1.01 Definitions of Terms. In addition to the terms otherwise defined elsewhere in this Agreement, the following terms and phrases used in this Agreement will have the meanings set forth below. 2 (a) “Active Connection” means a connection for which there is an open utility account with Leander during any portion of a monthly billing period. (b) “Agreement” means this Temporary Wholesale Water Services Agreement between Georgetown and Leander. (c) “Annual Water Supply” means potable water in an amount not to exceed 153.3 million gallons per annum to be delivered by Georgetown to Leander under the terms and conditions of this Agreement. (d) “AWWA” means the American Water Works Association. (e) “BRA” means the Brazos River Authority. (f) “BRA System Agreements” means, collectively the System Water Availability Agreements entered into by Georgetown and BRA pursuant to which Georgetown is entitled to divert water from the BRA River Basin. (g) “Connection” means an Active Connection to the Leander System on the Land (defined herein), the cumulative number of which shall not exceed the Connection Limit (defined herein). For the purposes of this Agreement, a ¾” meter is equivalent to one Connection. The number of Connections associated with multifamily structures or meters larger than ¾” in size shall be the same as the number of “Service Units” calculated using Georgetown’s meter equivalency standards set forth in Section 13.32.050 of Georgetown’s Code of Ordinances , as said ordinance may be amended from time to time by Georgetown. Only residential Connections shall be allowed on the Land. Non-residential Connections are prohibited on the Land; provided that Georgetown and Leander acknowledge that an amenity center is proposed to be constructed on the Land and an appropriately-sized Connection for such amenity center shall not be prohibited, as long as the Connection Limit and the Annual Water Supply amount are not exceeded. (h) “Connection Limit” means the cumulative number of Connections on the Land, which shall not exceed twelve hundred (1,200). (i) “Cure Period” shall have the meaning set forth in Section 8.02(c). (j) “Customers” means those persons owning or using a Connection on the Land. (k) “Delivery Point” means the Master Meter, which shall be installed in the approximate location depicted on Exhibit C. (l) “Effective Date” means the later of (1) June 1, 2015, or (2) the date when one or more counterparts of this Agreement, individually or taken together, bear the signatures of Georgetown and Leander. (m) “Emergency” means a sudden unexpected happening; an unforeseen occurrence or condition; exigency; pressing necessity; or a relatively permanent condition or insufficiency of service or of facilities resulting from causes outside of the reasonable control of Georgetown. 3 The term includes Force Majeure and acts of third parties that cause the Georgetown System to be unable to provide the Wholesale Water Services agreed to be provided herein. (n) “Force Majeure” means acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of any governmental entity other than Georgetown or Leander or any civil or military authority, acts, orders or delays of any regulatory authorities with jurisdiction over the Parties, insurrections, riots, acts of terrorism, epidemics, landslides, lightning, earthquakes, fires, hurricanes, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, or any other conditions which are not within the control of a Party. (o) “Georgetown System” means the facilities owned and operated by Georgetown, together with all extensions, expansions, improvements, enlargements, betterments and replacements to provide the Wholesale Water Services including, without limitation, the Master Meter after it is installed by Leander and accepted by Georgetown. The Georgetown System does not include any improvements on Leander’s side of the Delivery Point or any facilities on any other wholesale customer’s side of its delivery point and, for purposes of this Agreement, does not include any facilities used by Georgetown solely to provide retail potable water service, such as retail distribution lines and related valves, pressure reducing devices, pressure boosting facilities and improvements; retail meters and taps and individual retail customer service lines. (p) “Interim Connection Infrastructure” means the capital improvements on the Leander side of the Delivery Point necessary to allow Georgetown to commence providing the Wholesale Water Services to the Land. The Interim Connection Infrastructure is generally shown on Exhibit D. (q) “Land” means approximately 437.05 acres of land, described by metes and bounds on Exhibit A and by sketch on Exhibit B. (r) “Leander Completion Date” means August 8, 2021. (s) “Leander System on the Land” means the facilities owned and operated by Leander, including water transmission, distribution and delivery systems located on the Land, or that connect the Interim Connection Infrastructure to the Land, that provide water service to Leander’s retail customers within the Land, together with all extensions, expansions, improvements, enlargements, betterments and replacements to provide retail water service or wholesale water service to Customers with Connections within the Land. The Leander System on the Land includes the Interim Connection Infrastructure, but does not include the Master Meter or any facilities or improvements on Georgetown’s side of the Delivery Point. (t) “Leander Water Utility System” means the facilities owned and operated by Leander, including water transmission, distribution and delivery systems, together with all extensions, expansions, improvements, enlargements, betterments and replacements, that as of the Effective Date provide service to Leander’s retail customers outside of the Land, which will, after construction of the Permanent Connection Infrastructure, provide water service to customers on the Land. 4 (u) “Master Meter” means the water meter to be placed at the Delivery Point which shall be used to measure the quantity of Annual Water Supply delivered by Georgetown to Leander for the purposes of this Agreement. (v) “Permanent Connection Infrastructure” means the capital improvements to the Leander Water Utility System necessary to allow Georgetown to discontinue providing the Wholesale Water Services so that Leander via the Leander Water Utility System, the Permanent Connection Infrastructure, and the Leander System on the Land is the sole source of water service to the Land, and Georgetown is no longer providing Wholesale Water Services to Leander for the Land. (w) “Related Agreements” means the “Agreement Regarding Release of the Lively Tract” among Leander, Georgetown, and Chisholm Trail Special Utility District; the “Agreement Regarding the Extraterritorial Jurisdiction Boundary Adjustment” by and between Georgetown, Leander, Donald H. Lively Family Partnership, Ltd., a Texas limited partnership, and Sentinel Land Company, LLC related to the Lively Tract”; the “Offsite Wastewater Utility Construction Agreement for the ‘Lively Tract’ a/k/a West Williamson County Municipal Utility District No. 2” among Georgetown, Sentinel Land Company, LLC and West Williamson County Municipal Utility District No. 2; and the “Wholesale Wastewater Services Agreement” between Leander and Georgetown. (x) “Retail Water Services” means the provision of water services by Leander to Customers with residential Connections on the Land as further described in Section 2.03 of this Agreement. (y) “TCEQ” means the Texas Commission on Environmental Quality or its successor agency. (z) “Wholesale Water Services” means the temporary diversion or production of water, the transmission thereof to a place or places of treatment, the treatment of the water into potable form, and the transmission of the potable water to the Delivery Point by Georgetown to Leander in a quantity not to exceed the Annual Water Supply and not to exceed the Connection Limit for use by Customers with Connections on the Land under the terms and conditions specified in this Agreement. 1.02 Captions. The captions appearing at the first of each numbered section or paragraph in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement. ARTICLE II PROVISION OF WATER SERVICES 2.01 Wholesale Water Services. (a) General. Georgetown agrees to provide the Wholesale Water Services to Leander on the terms and conditions set forth herein. 5 (b) Conditions Precedent. Georgetown shall have no obligation to commence providing the Wholesale Water Services to any portion of the Land until all of the following events have occurred, and Georgetown will commence the provision of Wholesale Water Service after all of the following occur: (1) The Related Agreements are fully executed by the parties thereto and Leander is not in default of its obligations under the “Agreement Regarding Release of the Lively Tract” among Leander, Georgetown, and Chisholm Trail Special Utility District; the “Agreement Regarding the Extraterritorial Jurisdiction Boundary Adjustment” by and between Georgetown, Leander, Donald H. Lively Family Partnership, Ltd., a Texas limited partnership, and Sentinel Land Company, LLC, related to the Lively Tract”; or the “Settlement Agreement” in SOAH Docket No. 582- 14-3380; TCEQ Docket No. 2014-0437-UCR; and (2) The Interim Connection Infrastructure and the Master Meter have been constructed in accordance with plans approved by Georgetown and Leander has provided written notice of same to Georgetown; and (3) Construction plans for the portion of the Land to be provided with the Wholesale Water Services have been approved by Leander and Leander has provided Georgetown with a copy of the approved plans; and (4) Wastewater service is available to a residential structure before Wholesale Water Services will be provided to such residential structure and Leander has provided Georgetown with written confirmation of same. (c) Georgetown System. Georgetown shall be responsible for operating, maintaining, repairing, replacing, extending, improving and enlarging the Georgetown System, including the Master Meter after its initial installation by Leander, and keeping same in good working condition and shall promptly repair any leaks or breaks in the Georgetown System. (d) Limits on Wholesale Water Services. Georgetown shall have no obligation to provide the Wholesale Water Services in excess of the Annual Water Supply, in excess of the Connection Limit, after the Leander Completion Date, or any time that Leander is in default of this Agreement after the expiration of a Cure Period . (e) Quantity and Pressure. Subject to the terms and conditions of this Agreement, Georgetown agrees to deliver potable water to Leander for the Land, up to the Connection Limit and in an amount not to exceed the Annual Water Supply, for residential Connections on the Land. Georgetown agrees that the water supply shall be delivered at a minimum delivery pressure of 35 psi as measured at the Delivery Point. (f) Quality of Water Delivered to Leander. The water delivered by Georgetown at the Delivery Point shall be potable water of a quality conforming to the requirements of any applicable federal or state laws, rules, regulations or orders, including requirements of the TCEQ applicable to water provided for human consumption and other domestic use. Each Party agrees to provide to the other Party, in a timely manner, any information or data regarding the quality of 6 treated water provided through this Agreement as required for reporting to the TCEQ or other state and federal regulatory agencies. 2.02 Wholesale Service Commitment Not Transferable. Georgetown’s agreement to provide Wholesale Water Services is solely to Leander. Leander may not assign or transfer in whole or in part the Wholesale Water Services without Georgetown’s prior written approval. 2.03 Retail Water Services. (a) General. Subject to the terms and conditions of this Agreement, Leander will provide the Retail Water Services. (b) Limits. Leander agrees that it shall not authorize, approve, make or allow Connections in excess of the Connection Limit; usage in excess of the Annual Water Supply; or nonresidential Connections on the Land; provided that Georgetown and Leander acknowledge that an amenity center is proposed to be constructed on the Land and an appropriately-sized Connection for such amenity center shall not be prohibited, as long as the Connection Limit and the Annual Water Supply amount are not exceeded. Leander further agrees that noncompliance with this Section shall be a material default of this Agreement after expiration of the Cure Period. (c) Delivery to Connections. Leander shall be solely responsible for conveying potable water from the Delivery Point to the Connections. (d) Leander System on the Land. Leander will be responsible for operating and maintaining the Leander System on the Land in good working order; for making all needed replacements, additions and improvements as required for the operation of the Leander System on the Land; for performing all inspections; for reading meters, billing and collecting from all Customers on the Land; and for performing all other usual and customary services and administrative functions associated with retail water utility systems. Leander will be solely responsible for applying Leander’s ordinances, standards, and specifications to the design, construction, and acceptance for operation and maintenance of the Leander System on the Land and installation of the Connections. Leander shall be responsible for initially installing the Master Meter and for operating, maintaining, repairing, replacing, extending, improving and enlarging the Leander System on the Land in good working condition and shall promptly repair any leaks or breaks in the Leander System on the Land. (e) Exclusive Provider. Leander agrees that Georgetown shall be the exclusive provider of the Wholesale Water Services and that no other person or entity shall be allowed to provide same; provided that Georgetown is not in default of this Agreement. 2.04 Water Source (a) BRA System Agreements. The Parties acknowledge that the source of the Annual Water Supply is from the water secured by Georgetown in the BRA System Agreements. In the event that the amount of water supplied by BRA in the BRA System Agreements is reduced, the Annual Water Supply shall be reduced on a pro rata basis. 7 (b) No Rights to Water Source. Leander agrees that it shall never have or claim any interest in the Annual Water Supply, the BRA System Agreements, or any other potable or raw water owned or controlled by Georgetown, regardless of the source of the water. Leander is prohibited from selling any of the water provided to Leander under this Agreement to anyone other than those Customers having authorized Connections within the Land. 2.05 Title. Title to the water diverted, treated and transported to Leander by Georgetown under this Agreement shall remain with Georgetown at all times until it reaches the Delivery Point. At the Delivery Point, title to the water shall pass to Leander. 2.06 Rights and Responsibilities in Event of Leaks or Break s. Leander shall be responsible for paying for all water delivered to it under this Agreement at the Delivery Point even if such water passed through the Delivery Point as a result of leaks or breaks in the Leander System on the Land. 2.07 Conservation and Drought Planning. Leander, by signing below, certifies that it has adopted and implemented a water conservation plan and a drought contingency plan in compliance with applicable TCEQ rules. 2.08 Curtailment of Service. If water service is curtailed by Georgetown to its wholesale or retail water customers due to the need to conduct maintenance operations or due to an emergency, Georgetown shall provide notice of same to Leander and Leander shall curtail retail service to the Customers on the same basis and for the same duration. Georgetown will impose such curtailments in a nondiscriminatory fashion. The Parties agree that they will not construe this Agreement to prohibit Georgetown from curtailing service completely in the event of a maintenance operation or Emergency for a reasonable period necessary to complete such maintenance operations or repairs or to respond to an Emergency. 2.09 Cooperation During Maintenance or Emergency. Leander will cooperate with Georgetown during periods of Emergency, replacement of facilities, or required maintenance. If necessary, upon prior notice, Leander will discontinue use of, cycle, test, inspect or otherwise operate and maintain the Leander System on the Land at its expense in a manner reasonably necessary for the safe and efficient completion of repairs or the replacement of facilities, the restoration of service, and the protection of the public health, safety, and welfare. ARTICLE III METERING PROVISIONS 3.01 Master Meter Sizing and Installation. Leander shall be responsible for properly sizing and initially installing the Master Meter. Prior to installation of the Master Meter at the Point of Delivery, Leander shall submit the plans and specifications for the Master Meter to Georgetown for its review and approval. 3.02 Master Meter Accuracy. The Master Meter shall meet accuracy standards required by the AWWA with calibration maintained as described in Section 3.03. 3.03 Meter Calibration. 8 (a) Annual Calibration. The Master Meter shall be calibrated each calendar year by Georgetown at Georgetown’s sole cost and expense. Georgetown shall provide prior notice of each such calibration, and a representative of Leander may be present to observe each calibration. (b) Testing. In the event any question arises at any time as to the accuracy of the Master Meter, then the Master Meter shall be tested by Georgetown promptly upon demand of Leander. The expense of such tests shall be borne by Leander. (c) Corrections. If, as a result of any test, the Master Meter is found to be registering inaccurately (in excess of AWWA and manufacturer’s standards for the type and size of meter), the readings of the Master Meter shall be corrected at the rate of inaccuracy for any period which is definitely known or agreed upon. If no such period is known or agreed upon, the readings of the Master Meter shall be corrected at the rate of inaccuracy for the shorter of a period extending back either sixty (60) days from the date of demand for the test or, if no demand for the test was made, sixty (60) days from the date of the test. The records of the Master Meter readings, and all payments made on the basis of such readings for the applicable period, shall be adjusted accordingly. ARTICLE IV WHOLESALE WATER RATE AND CHARGES 4.01 Wholesale Water Rates and Charges. The monthly wholesale water rate shall consist of two components: the monthly Base Charge and the monthly Volumetric Charge each as calculated as set forth in this Agreement (collectively, the “Wholesale Water Rate”). Except as otherwise provided in this Agreement, no other rates, fees or charges shall be owed by Leander to Georgetown for the Wholesale Water Services. The provisions of this Article IV shall survive termination of this Agreement; provided that Leander shall have no obligation to continue to pay the Wholesale Water Rate after the Permanent Connection Infrastructure is completed and Leander no longer receives Wholesale Water Services from Georgetown. 4.02 Base Charge. The monthly Base Charge component of the Wholesale Water Rate shall be calculated as follows: (a) If the Master Meter is eight (8) inches or less in size, the Base Charge shall be equal to the rate corresponding to the size of the Master Meter set forth in Section 13.04.120(B)(1) of the City of Georgetown Code of Ordinances (“Outside City Limits/Monthly Customer Base Charge”), as the same may be amended from time to time by Georgetown. (b) If the Master Meter is greater than eight (8) inches but less than or equal to twelve (12) inches in size, the Base Charge shall be calculated by using the conversion table in Section 13.32.050 of the City of Georgetown Code of Ordinances (“Conversion of Service Units”) to calculate the number of service units corresponding to the meter size, and multiplying the result by the rate corresponding to the rate for three-fourth (3/4) inch meters set forth in Section 13.04.120(B)(1) of the City of Georgetown Code of Ordinances (“Outside City Limits/Monthly Customer Base Charge”), as said ordinances may be amended from time to time by Georgetown. 9 (c) If the Master Meter is greater than twelve (12) inches in size, the Base Charge shall be calculated on the same basis as set forth in Section 4.02(b) of this Agreement using AWWA principles. 4.03 Volumetric Charge. The monthly Volumetric Charge component of the Wholesale Water Rate shall be the rate set forth in Section 13.04.120(B)(3) of the City of Georgetown Code of Ordinances (“Monthly Nonresidential Customer Volumetric Charge”), which is currently _______, as the same may be amended from time to time by Georgetown. 4.04 Revisions. Georgetown may adjust the Base Charge and the Volumetric Charge from time to time in its sole discretion. Georgetown shall give Leander at least sixty (60) days prior written notice of any increases in the Base Charge or the Volumetric Charge before such adjustments become effective as to Leander. The charges shall be established in accordance with standard AWWA principles. Notwithstanding anything to the contrary herein, commencing on the Leander Completion Date and continuing for every day thereafter that Georgetown continues to deliver potable water to the Delivery Point, the Wholesale Water Rate shall be as set forth in Section 7.03 of this Agreement. 4.05 Leander’s Retail Water Rates and Charges. During the term of this Agreement, Leander will fix and collect rates and charges for retail water service that are, in the opinion of its governing body, sufficient, together with any other revenues available to Leander, to produce the amount necessary to construct, operate, repair, and maintain the Leander System on the Land and the Leander System (including the Interim Connection Infrastructure and the Permanent Connection Infrastructure), install the Master Meter, pay the Wholesale Water Rate to Georgetown, and perform its obligations under this Agreement. Leander will be solely responsible for ensuring that its retail rates and charges are determined and collected in accordance with applicable law. 4.06 Impact Fees. The water impact fees for the Land shall be those assessed and collected by the governing body of the City of Leander. ARTICLE V BILLING AND PAYMENT 5.01 Billing Statement. Leander shall pay the Wholesale Water Rate in the time and manner described in this Section. For each billing period, Georgetown will provide to Leander a detailed statement of the Wholesale Water Rate due for that billing period calculated on the basis of readings of the Master Meter for the previous billing period that enables Leander to determine how the Wholesale Water Rate shown on the statement was calculated, and a statement of any amounts due under Section 5.03 of this Agreement, if applicable. Leander shall not be charged the Wholesale Water Rate until after the Leander commences receiving water through the Point of Delivery. Leander shall give Georgetown at least thirty (30) days’ written notice at such time that Leander wishes Georgetown to commence Wholesale Water Service. Leander agrees to pay such rates and charges to Georgetown by check or bank-wire no later than the date that is thirty (30) days after the date of the invoice (the “Due Date”) in order not to be considered delinquent; provided that Leander may dispute a bill as set forth in Section 5.02 and payment of an invoice 10 in full shall not constitute a waiver of Leander’s right to dispute said invoice. Payment made by check must be received on or before the Due Date at the following address: City of Georgetown Attn: Utility Billing Department 300-1 Industrial Ave. Georgetown, TX 78626 Leander shall request wiring instructions from Georgetown prior to remitting payment by bank wire. 5.02 Billing Disputes. If Leander at any time disputes the amount to be paid by it to Georgetown, Leander shall nevertheless promptly make the disputed payment or payments, but Leander shall have the right to seek a judicial determination whether the rates charged by Georgetown are in accordance with the terms of this Agreement. If it is subsequently determined by agreement or court decision that the disputed amount paid by Leander should have been less or more, Georgetown shall promptly revise the amount in a manner such that Leander or Georgetown shall recover the amount due. Disputed charges shall first attempt to be resolved using the procedures described in Section 8.02(a) or Section 8.04 of this Agreement before filing a petition with the administrative agency or court having jurisdiction. 5.03 Late Charges. Any amount billed to Leander that is not paid by the Due Date shall accrue an immediate ten percent (10%) penalty. Leander further agrees to pa y all costs of collection, including attorney’s fees. 5.04 Effect of Nonpayment. If Georgetown has not received payment from Leander of all amounts due under this Article V (including late charges and costs of collection) on or before the Due Date for the next monthly billing period immediately following the original Due Date, then Leander shall be in default of a material obligation under this Agreement . In the event of any such default, Georgetown may, in its discretion, restrict service to volumes sufficient to service only existing Connections until payment in full is made. Leander agrees that it shall not make or allow any new Connections on the Land until it has cured the default in full by paying all amounts owed under this Article V and confirming Georgetown’s receipt and acceptance of same. ARTICLE VI REGULATORY COMPLIANCE 6.01 Agreement Subject to Applicable Law. This Agreement will be subject to all valid rules, regulations, and applicable laws of the United States of America, the State of Texas and/or any other governmental body or agency having lawful jurisdiction or any authorized representative or agency of any of them. 6.02 Cooperation to Assure Regulatory Compliance. Since the Parties must comply with all federal, state, and local requirements to obtain permits, grants, and assistance for system construction, studies, etc., each Party will cooperate in good faith with the other Party at all times 11 to assure compliance with any such governmental requirements where noncompliance or non - cooperation may subject the Parties to penalties, loss of grants or other funds, or other adverse regulatory action in the performance of this Agreement. ARTICLE VII PERMANENT CONNECTION INFRASTRUCTURE 7.01 Request for Use of Easements. Leander may request Georgetown to consider use of any easements that Georgetown owns and controls that are located between the Leander Water Utility System and the Land to install the Permanent Connection Infrastructure. Georgetown shall promptly review such requests and advise Leander in writing whether use of such easements by Leander is acceptable to Georgetown and if so the terms and conditions of such use. 7.02 Completion of Permanent Connection Infrastructure. Not later than the Leander Completion Date, Leander shall complete, or cause completion of, construction of the Permanent Connection Infrastructure and shall provide Georgetown written notice that construction of the Permanent Connection Infrastructure is complete, Leander is able to serve the Land with potable water through the Leander System on the Land using the Permanent Connection Infrastructure and the Leander Utility System, and Georgetown can discontinue providing the Wholesale Wastewater Services (the “Notice of Completion”). Failure of Leander to complete construction of the Permanent Connection Infrastructure and/or to provide to Georgetown the Notice of Completion not later than the Leander Completion Deadline, shall be a material default of this Agreement. If the default remains uncured after the expiration of the Cure Period, Georgetown shall be entitled to pursue the rights and remedies allowed herein. . 7.03 Rate Adjustment After Leander Completion Date. If Leander fails to complete or cause completion of construction of the Permanent Connection Infrastructure on or before the Leander Completion Date, or fails to provide Georgetown the Notice of Completion on or before the Leander Completion Date, then for each day on and after the Leander Completion Date that Georgetown provides Wholesale Water Service to Leander, the Wholesale Water Rate shall be calculated as follows: (1) Monthly Base Charge – same as provided in Section 4.02 of this Agreement. (2) Monthly Volumetric Charge – the highest rate then set forth in Section 12.04.120(B)(2) of the City of Georgetown Code of Ordinances (“Monthly residential customer Volumetric charge, per 1,000 gallons”), as said ordinance may be amended from time to time by Georgetown. The provisions of this Section 7.03 shall survive termination of this Agreement. 7.04 Prohibition Against New Connections. If Leander fails to complete or cause completion of construction of the Permanent Connection Infrastructure on or before the Leander Completion Date, or fails to provide Georgetown the Notice of Completion on or before the Leander 12 Completion Date, then Leander shall not approve or allow installation of any new Connections on the Land as of the Leander Completion Date. ARTICLE VIII TERM, TERMINATION, DEFAULT, REMEDIES 8.01 Term and Termination. (a) This Agreement shall become effective upon the Effective Date and shall continue until terminated by either Party as allowed herein. In the event that the Related Agreements are not fully executed on or before June 1, 2015, then this Agreement shall becom e null and void for all purposes as of June 1, 2015. (b) In the event that any agreement included in the definition of “BRA System Agreements” is terminated or expires, this Agreement shall be terminated and be of no further force or effect. Either Party shall use good faith efforts to give adequate prior written notice of an anticipated termination or expiration of any agreement included in the definition of “BRA System Agreements.” 8.02 Leander Default. (a) Default for Delinquent Bills. The default procedure for non-payment of bills shall be as set forth in Article V of this Agreement, and, to the extent not remedied or addressed by those procedures, shall be as set forth in Section 8.02(c) of this Agreement. (b) Default for Permanent Infrastructure Connection. The default procedures for failure to complete the Permanent Infrastructure Connection on or before the Leander Completion Date shall be as set forth in Sections 7.02 through 7.04 of this Agreement. In addition, Georgetown shall have the remedies available to it as are set forth in Section 8.02(c) of this Agreement. (c) General Default Procedures. In addition to the remedies provided elsewhere in this Agreement, and except as otherwise provided in Sections 8.02(a) and (b) of this Agreement, in the event Leander fails to perform any of its obligations under this Agreement, Georgetown shall also have the right, after providing Leander written notice and a thirty (30) day opportunity to cure, which may be extended as provided in this Section 8.02(c) (the “Cure Period”), to pursue any remedy available at law or in equity, including but not limited to, the right to curtail or wholly discontinue providing Wholesale Water Services for any new and existing Connections and/or terminating this Agreement; the right to obtain a writ of mandamus or an injunction against Leander requiring Leander to immediately comply with its obligations under this Agreement without the necessity of showing irreparable harm or inadequate remedies at law; and/or enjoining Leander from providing retail or wholesale water service outside the Land. If the default cannot be cured within the Cure Period, but Leander commences the cure within the Cure Period and diligently pursues same, Leander shall have an additional period of time, not to exceed ninety (90) calendar days from the initial default notice, within which to complete the cure. The Cure Period, and any extension thereto allowed by this Section, must pass before 13 Georgetown may initiate any remedies available to it due to such breach. If Leander cures the breach to Georgetown’s satisfaction, Georgetown may not initiate any such remedies. In addition, and notwithstanding Section 8.05 of this Agreement, if any administrative or judicial action or other legal proceeding is filed or threatened against Georgetown related to or arising from Leander’s default under or breach of this Agreement, Leander shall pay all of Georgetown’s reasonable attorney’s fees, court costs, and expenses (even if not recoverable by law as court costs), and administrative, civil or criminal penalties or fines incurred in that action or proceeding and all appellate proceedings, only to the extent such fees, costs, expenses, penalties, or fines are due to Leander’s breach of this Agreement. For the purposes of this section, the term “attorney’s fees” includes, without limitation, paralegal fees, investigative fees, testifying or consulting expert fees, administrative costs, disbursements, and all other charges incurred by Georgetown and the attorneys representing Georgetown. 8.03 Georgetown Default. In the event a default by Georgetown shall remain uncured thirty (30) days after receipt by Georgetown of written notice from Leander of the alleged default , Leander shall have the right to pursue any remedy available at law or in equity, provided, however, that if the default cannot be cured within the thirty (30) day period, but Georgetown commences the cure within the thirty (30) day period and diligently pursues same, Georgetown shall have an additional period of time, not to exceed ninety (90) days from the date of the initial default notice, within which to complete the cure. The cure period, and any extension thereto allowed by this Section, must pass before Leander may initiate any remedies available to it due to such breach. If Georgetown cures the breach to Leander’s satisfaction, Leander may not initiate any such remedies. Notwithstanding anything to the contrary in this Agreement, in no event shall Leander be entitled to pursue or recover on any action for damages. Such remedies that Leander may pursue include, without limitation except for the limitation on non-recovery of damages, the right to obtain a writ of mandamus or an injunction against Georgetown requiring Georgetown to comply with their respective obligations under this Agreement, including the obligation to provide Wholesale Water Services to the Land in accordance with this Agreement, or Leander may terminate this Agreement for any such uncured default. 8.04 Good Faith Negotiations. The Parties agree that they will attempt to negotiate in good faith to resolve any disputes arising under this Agreement prior to filing a petition with a court or administrative agency having jurisdiction, and may engage in non-binding or binding mediation, arbitration or other alternative dispute resolution methods as allowed by the laws of the State of Texas and as they may mutually agree. 8.05 Attorneys’ Fees. If either Party institutes legal proceedings to seek adjudication of an alleged default under this Agreement, the prevailing Party shall be entitled to recover reasonable and necessary attorneys’ fees from the non-prevailing Party. ARTICLE IX GENERAL PROVISIONS 9.01 Assignment. The rights and obligations of a Party under this Agreement are not assignable in whole or in part without the prior written consent of the other Party. 14 9.02 Amendment. This Agreement may be amended or modified onl y by written agreement duly authorized by the respective governing bodies of Leander and Georgetown and executed by duly authorized representatives of each. 9.03 Cooperation. (a) The Parties shall cooperate with each other as reasonably and necessary to carry out the intent of this Agreement, including but not limited to the execution of such further documents as may be reasonably necessary. (b) In the event of any third party lawsuit or other claim relating to the validity of this Agreement or any actions taken hereunder, the Parties agree to cooperate in the defense of such suit or claim, and to use their respective best efforts to resolve the suit or claim without diminution in their respective rights and obligations under this Agreement. 9.04 Notices. Any notice given under this Agreement must be in writing and may be given: (i) by depositing it in the United States mail, certified, with return receipt requested, addressed to the Party to be notified and with all charges prepaid; or (ii) by depositing it with Federal Exp ress or another service guaranteeing “next day delivery”, addressed to the Party to be notified and with all charges prepaid; or (iii) by personally delivering it to the Party. Notice is effective when received. For purposes of Notice, the addresses of the Parties will, until changed as provided below, be as follows: City of Leander: City of Leander Attn: City Manager 200 W. Willis Leander, TX 78641 With copy to: Paige Saenz Knight & Partners 223 W. Anderson Lane, Suite A105 Austin, Texas 78752 City of Georgetown: City of Georgetown Attn: City Manager 113 E. 8th Street Georgetown, Texas 78626 With copy to: City of Georgetown Attn: City Attorney 113 E. 8th Street 15 Georgetown, Texas 78626 The Parties may change their respective addresses to any other address within the United States of America, and may designate a different or additional person to receive Notice, by giving at least five (5) days’ written Notice to the other Party. 9.05 Severability; Waiver. (a) If any part, term or provision of this Agreement is held by the courts to be illegal, invalid or otherwise unenforceable, such illegality, invalidity or unenforceability shall not affect the validity of any other Party, term or provision, and the rights of the Parties will be construed as if the part, term or provision was never part of this Agreement. (b) Any failure by a Party to insist upon strict performance by the other Party of any material provision of this Agreement will not be deemed a waiver thereof or of any other provision, and such Party may at any time thereafter insist upon strict performance of any and all of the provisions of this Agreement. 9.06 Applicable Law and Venue. This Agreement will be construed under and in accordance with the laws of the State of Texas. All obligations of the Parties created in this Agreement are performable in Williamson County, Texas, and venue for any action arising under this Agreement will be in Williamson County, Texas. 9.07 Entire Agreement. This Agreement and the “Agreement Regarding Release of the Lively Tract” among Leander, Georgetown, and Chisholm Trail Special Utility District; the “Agreement Regarding the Extraterritorial Jurisdiction Boundary Adjustment” by and between Georgetown, Leander, Donald H. Lively Family Partnership, Ltd., a Texas limited partnership, and Sentinel Land Company, LLC related to the Lively Tract”; or the “Settlement Agreement” in SOAH Docket No. 582-14-3380; TCEQ Docket No. 2014-0437-UCR, as the same may be amended from time to time, constitute the entire agreement of the Parties. There are no other agreements or promises, oral or written, between the Parties regarding the subject matter of this Agreement. This Agreement and the Related Agreements supersede any prior or contemporaneous oral or written understandings or representations of the Parties concerning the subject matter. 9.08 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer upon any person or entity, other than to the Parties, any rights, benefits, or remedies under or by reason of this Agreement. 9.09 Duplicate Originals; Multiple Counterparts. This Agreement may be executed in duplicate originals each of equal dignity. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which will together constitute the same instrument. 9.10 Records. Georgetown and Leander each agree to preserve, for a period of at least five years after this Agreement is terminated or fully performed, all books, records, test data, charts 16 and other records and documents pertaining to this Agreement. Georgetown and Leander shall each have the right, respectively, during reasonable business hours to inspect such records and documents. 9.11 Exhibits, Headings, and Construction. All schedules and exhibits referred to in or attached to this Agreement are incorporated into and made a part of this Agreement for all purposes. The paragraph headings contained in this Agreement are for convenience only and do not enlarge or limit the scope or meaning of the paragraphs. Wherever appropriate, words of the masculine gender may include the feminine or neuter, and the singular may include the plural, and vice-versa. The Parties acknowledge that each of them have been actively and equally involved in the negotiation of this Agreement. Accordingly, the rule of construction that any ambiguities are to be resolved against the drafting Party will not be employed in interpreting this Agreement or any exhibits hereto. This Agreement will become effective as of the Effective Date only if one or more counterparts, individually or taken together, bear the signatures of all of the Parties. 9.12 State Approval; Compliance with TCEQ Rules. Anything herein to the contrary notwithstanding, it is the intention of the Parties that this Agreement fully comply with the requirements of the TCEQ applicable to public drinking water systems which receive water through a sole-source water supply contract. The Parties each agree to provide any information which may be requested by the other Party in order to respond to any inquiries or reports required by the TCEQ. If, at any time, it is determined that this Agreement does not comply with all applicable TCEQ requirements, the Parties agree to amend this Agreement in order to effect such compliance. 9.13 Force Majeure. If any Party is rendered unable, wholly or in part, by Force Majeure to carry out any of its obligations under this Agreement, other than an obligation to pay or provide money, then such obligations of that 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. Such cause, as far as possible, shall be remedied with all reasonable diligence. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the affected Party, and that the above requirements that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing Party or Parties when such settlement is unfavorable to it in the judgment of the affected Party. 9.14 Authority of Parties Executing Agreement, Validity. Georgetown certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with its City Charter and City ordinances. Leander certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with its City Charter and City ordinances. 9.15 Time is of the Essence. Time is of the essence with respect to Leander’s obligation to substantially complete the Permanent Connection Infrastructure before the Leander Completion Date. In computing the number of days for purposes of this Agreement, all days will be counted, including Saturdays, Sundays and legal holidays; however, if the final day of any time period 17 falls on a Saturday, Sunday or legal holiday, then the final day will be deemed to be the next day that is not a Saturday, Sunday or legal holiday. 9.16 Exhibits. The following exhibits are attached to and incorporated into this Agreement for all purposes: Exhibit A- Metes and Bounds Description of the Land Exhibit B- Sketch of the Land Exhibit C- Map Showing Delivery Point Exhibit D - Interim Connection Infrastructure CITY OF GEORGETOWN By:___________________________________ Dale Ross, Mayor Date:__________________________________ ATTEST: Jessica Brettle, City Secretary APPROVED AS TO FORM: Bridget Chapman, City Attorney STATE OF TEXAS § § COUNTY OF WILLIAMSON § This instrument was acknowledged before me the ____ day of ____________________, 20__, by Dale Ross, Mayor of the City of Georgetown, Texas, a home-rule city, on behalf of the city. ________________________________ Notary Public Signature 18 CITY OF LEANDER, TEXAS By:___________________________________ Christopher Fielder, Mayor Date:__________________________________ ATTEST: ________________________________ Debbie Haile, City Secretary APPROVED AS TO FORM: ____________________________________ ________________________, City Attorney STATE OF TEXAS § § COUNTY OF WILLIAMSON § This instrument was acknowledged before me the ____ day of ____________________, 20__, by Christopher Fielder, Mayor of the City of Leander, Texas, a home-rule city, on behalf of the city. ________________________________ Notary Public Signature 19 CONSENT BY CHISHOLM TRAIL SPECIAL UTILITY DISTRICT: Chisholm Trail Special Utility District has no obligations under this Agreement and is not a party hereto. Chisholm Trail Special Utility District is executing this Agreement solely for purposes of evidencing its consent to the provision of the retail water service by Leander to and within the Land. CHISHOLM TRAIL SPECIAL UTILITY DISTRICT BY: NAME: TITLE: DATE: DISTRICT SECRETARY 20 Exhibit “A” Land – Metes and Bounds 21 Exhibit “B” Land – Sketch 22 Exhibit “C” Delivery Point 23 Exhibit “D” Interim Connection Infrastructure 24 Exhibit E Permanent Connection Infrastructure 25 FINAL 4.4.2015 WHOLESALE WASTEWATER SERVICES AGREEMENT CITY OF GEORGETOWN AND CITY OF LEANDER This WHOLESALE WASTEWATER SERVICES AGREEMENT (“Agreement”) is between the CITY OF GEORGETOWN (“Georgetown”), a home-rule city located in Williamson County, Texas, and the CITY OF LEANDER (“Leander”), a home-rule city located in Williamson County, Texas, WHEREAS, this Agreement governs the provision of wholesale wastewater services by Georgetown to Leander for approximately 437.05 acres of land described by metes and bounds on the attached Exhibit A and by sketch attached as Exhibit B (the “Land”); and WHEREAS, when developed, the Land will be in the Leander ETJ; and WHEREAS, Georgetown can provide wholesale wastewater service to Leander for the Land as provided herein, and Leander and Georgetown desire to enter into an agreement memorializing the terms and conditions under which Georgetown will provide wholesale wastewater service to Connections (defined herein) on the Land up to the Connection Limit (defined herein), and Leander will provide retail sewer service to the Land. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Georgetown and Leander agree as follows: ARTICLE I. DEFINITIONS Section 1.01 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms and phrases used in this Agreement will have the meanings set out below: (a) “Agreement” means this Wholesale Wastewater Services Agreement between Georgetown and Leander. (b) “Active Connection” means a connection for which there is an open utility account with Leander during any portion of a monthly billing period. (c) “Connection” means an Active Connection to the On-Site Wastewater Facilities (defined herein) on the Land, the cumulative number of which shall not exceed the Connection Limit (defined herein). For the purposes of this Agreement, the physical sewer connection into the On-Site Wastewater Facilities that corresponds to the number of water service connections with a ¾” meter shall represent one (1) Connection. The number of Connections associated water service connections represented by water meters larger than ¾” in size shall be the same as the number of water “Service Units” calculated using Georgetown’s meter equivalency standards set forth in Section 13.32.050 of Georgetown’s Code of Ordinances, as said ordinance may be amended from time to time by Georgetown. 2 (d) “Connection Limit” means the cumulative number of Connections on the Land, which shall not exceed one thousand two hundred (1,200). (e) “Cure Period” shall have the meaning set forth in Section 6.01(c). (f) “Customers” means those persons or entities owning or using a Connection on the Land. (g) “Deduction” means the amount subtracted from Georgetown’s out-of-city residential rate, as it may be amended from time to time, that represents the portion of said rate that is attributable to Georgetown’s cost of retail customer service, billing, and line maintenance. The parties agree that the initial Deduction shall be $5.80 per Connection per month. Whenever Georgetown amends its out-of-city residential rates, the Deduction shall be recalculated by Georgetown consistent with the rate study supporting the rate amendment, and a copy of the rate study shall be provided to Leander when the Deduction is recalculated. (h) “Delivery Point” means the manhole to be placed at the terminus of the SSGI Extension (defined herein) in the location on the Land generally shown on Exhibit C. (i) “Domestic Sewage” has the meaning set forth in Section 13.24.010 of the Georgetown Code of Ordinances, as said ordinance may be amended from time to time by Georgetown in its sole discretion. (j) “Effective Date” means the later of (1) June 1, 2015, or (2) the date when one or more counterparts of this Agreement, individually or taken together, bear the signatures of Georgetown and Leander. (k) “Emergency” means a sudden unexpected happening; an unforeseen occurrence or condition, exigency, or pressing necessity resulting in insufficiency of services or of facilities, and includes Force Majeure and acts of third parties that cause Georgetown to be unable to provide the services contemplated by this Agreement, as well as any blockage in a li ne or lift station, and/or a malfunction of the Georgetown System that could result in a spill or regulatory or permit excursion. (l) “Force Majeure” means acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy orders of any governmental entity (other than one of the Parties) or any civil or military authority, acts, orders or delays of any regulatory authorities, with jurisdiction over the Parties, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals or any other conditions that are not within the control of a Party. (m) “Georgetown System” means the SSGI Extension (defined herein) and all other wastewater facilities owned and operated by Georgetown, together with all extensions, expansions, improvements, enlargements, betterments and replacements necessary to provide the Wholesale Wastewater Services (defined herein). The Georgetown System does not include any facilities or improvements at or constituting the Delivery Point or at and on Leander’s side of the Delivery Point 3 (n) “Industrial Waste” has the meaning set forth in Section 13.24.010 of the Georgetown Code of Ordinances, as said ordinance may be amended from time to time by Georgetown in its sole discretion. (o) “Land” means approximately 437.05 acres of land, described by metes and bounds on Exhibit A and by sketch on Exhibit B. (p) “Leander System” means the On-Site Wastewater Facilities (defined herein) and all other wastewater facilities owned and operated by Leander, together with all extensions, expansions, improvements, enlargements, betterments and replacements necessary to provide the Retail Wastewater Services (defined herein). The Leander System includes the manhole at the Delivery Point, and the other facilities and improvements at the Delivery Point, but does not include any facilities or improvements on Georgetown’s side of the Delivery Point. (q) “Monetary Cure Period” shall have the meaning set forth in Section 6.01(a) of this Agreement. (r) “Off-Site Wastewater Utility Construction Agreement” means the “Offsite Wastewater Utility Construction Agreement for the Lively Tract a/k/a West Williamson County Municipal Utility District No. 2,” by and between Georgetown, Sentinel Land Company LLC, and West Williamson County Municipal Utility District No. 2 pertaining to construction of the SSGI Extension (defined therein). (s) “On-Site Wastewater Facilities” means the public wastewater infrastructure on the Land necessary to provide wastewater service to the Land to be constructed by others and dedicated to Leander, including all internal wastewater collection lines, piping, valves, manholes, pumps, grinders, lift stations, and related facilities, equipment, and appurtenances that are necessary for the provision of retail wastewater collection services by Leander to Customers on the Land. (t) “Prohibited Discharges” means and includes all waste or wastewater from the sources listed in Section 13.20.050 of the Georgetown Code of Ordinances, as the same may be amended from time to time by Georgetown in its sole discretion. (u) “Prohibited Wastes” means and includes the substances, materials, waters and wastes described in Section 13.24.040 of the Georgetown Code of Ordinances, as the same may be amended from time to time by Georgetown in its sole discretion. (v) “Rates and Charges” means the amount that is the product of the number of Active Connections multiplied by the sewer rates and charges set forth in Chapter 13.04 of the Georgetown Code of Ordinances applicable to residential retail sewer customers located outside of the Georgetown city limits, as said ordinance may be amended by Georgetown from time to time in its sole discretion, minus the Deduction. For example, the initial Rates and Charges as of the Effective Date is $ 27.80 per Connection, which is the current out-of-city residential rate ($33.60) minus the current Deduction ($5.80). (w) “Related Agreements” means the “Agreement Regarding Release of the Lively Tract” among Leander, Georgetown, and Chisholm Trail Special Utility District; the “Agreement 4 Regarding the Extraterritorial Jurisdiction Boundary Adjustment” by and between Georgetown, Leander, Donald H. Lively Family Partnership, Ltd., a Texas limited partnership, and Sentinel Land Company LLC related to the Lively Tract”; the “Offsite Wastewater Utility Construction Agreement for the ‘Lively Tract’ a/k/a West Williamson County Municipal Utility District No. 2” among Georgetown, Sentinel Land Company, LLC and West Williamson County Municipal Utility District No. 2; and the “Wholesale Water Services Agreement” between Leander and Georgetown. (x) “Retail Wastewater Services” means the provision of wastewater collection services by Leander to Customers with residential Connections on the Land as further described in Section 2.02 of this Agreement. (y) “SSGI Extension” means that portion of the South San Gabriel Interceptor (“SSGI”) to be constructed and dedicated to Georgetown pursuant to the Offsite Wastewater Utility Construction Agreement consisting of a pipeline of various widths extending from the Current Terminus (as that term is defined in the Offsite Wastewater Utility Construction Agreement) and ending at the Delivery Point. (z) “TCEQ” means the Texas Commission on Environmental Quality, or its successor agency having jurisdiction over the matters addressed in this Agreement. (aa) “Wastewater Impact Fee” means the impact fee established by Georgetown in accordance with Chapter 395, Texas Local Government Code and in effect at the time of final platting for an area that includes the Land, as the same may be amended from time to time by Georgetown in its sole discretion. (bb) “Wastewater Standards” means, collectively, (1) Chapters 13.20 and 13.24 of the Georgetown Code of Ordinances, as the same may be amended from time to time by Georgetown in its sole discretion; (2) all applicable TCEQ laws, rules and regulations pertaining to wastewater discharges, including but not limited to the TCEQ rules at 30 T.A.C. ch. 213 pertaining to the Edwards Aquifer in Williamson County; and (3) the applicable terms and conditions of Georgetown’s wastewater treatment permits issued to Georgetown for the Georgetown System by the TCEQ, as the same may be amended from time to time. Wastewater generated from privies, dry closets, or on-site sewer systems (e.g., septic systems); discharges of Industrial Wastes that have not received prior written approval from Georgetown and been pretreated to make said discharges acceptable to Georgetown; Prohibited Wastes; Prohibited Discharges; wastewater that is corrosive, unacceptably odorous, or otherwise injurious to the Georgetown System; and any materials, substances, waste or wastewater or hauled and dumped or discharged into the Georgetown System are hereby deemed not to comply with the Wastewater Standards. (cc) “Wholesale Wastewater Services” means the treatment by Georgetown of wastewater meeting the Wastewater Standards generated by Connections up to the Connection Limit received at the Delivery Point. 5 Section 1.02 Captions. The captions appearing at the first of each numbered section or paragraph in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement. ARTICLE II. PROVISION OF WASTEWATER SERVICE TO THE LAND Section 2.01 Wholesale Wastewater Services. (a) General. Georgetown agrees to provide the Wholesale Wastewater Services to Leander on the terms and conditions set forth herein. (b) Conditions Precedent. Georgetown shall have no obligation to commence or continue providing the Wholesale Wastewater Services to any portion of the Land until all of the following conditions precedent have been fully satisfied, and Georgetown will commence the provision of Wholesale Wastewater Service after all of the following occur: (1) The Related Agreements have been fully executed by all parties thereto; and (2) Construction of the SSGI Extension has been substantially completed and accepted by Georgetown for operation and maintenance; and (3) Construction of the On-Site Wastewater Facilities has been substantially completed and accepted by Leander for operation and maintenance for the portion of the Land to be provided with Wholesale Wastewater Services; and (4) A final plat has been recorded in the Official Records of Williamson County for the portion of the Land to be provided with the Wholesale Wastewater Services and Leander has provided Georgetown with a recorded copy of said plat(s); and (5) A wastewater connect permit or similar permit has been issued by Leander for the Connection. (c) Georgetown System. Subject to the terms and conditions of this Agreement, Georgetown will be responsible for operating and maintaining the Georgetown System in good working order; and for making all needed replacements, additions, and improvements as required for the operation of the Georgetown System. (d) Limits on Wholesale Wastewater Services. After the expiration of a Cure Period or a Monetary Cure Period (as applicable), Georgetown shall have no obligation to provide the Wholesale Wastewater Services in excess of the Connection Limit, to unapproved nonresidential Connections, when the Wastewater Standards are not met at the Delivery Point, in excess of Connections for which Wastewater Impact Fees have been paid, or any other time that Leander is in default of this Agreement. (e) Georgetown shall not permit other retail or wholesale customers except Leander to deliver wastewater to the Delivery Point. 6 Section 2.02 Retail Wastewater Services. (a) General. Subject to the terms and conditions of this Agreement, Leander will provide the Retail Wastewater Services and Georgetown agrees that Leander will be the retail wastewater service provider to the Land. Subject to the terms and conditions of this Agreement, Georgetown will not object to or oppose the inclusion of the Land in Leander’s certificate of convenience and necessity. (b) Limits. Leander agrees that it shall not authorize, approve, make or allow Connections in excess of the Connection Limit; unapproved nonresidential Connections on the Land; on-site sewer facilities (e.g., septic systems) on the Land; or delivery of wastewater to the Delivery Point that is not in compliance with the Wastewater Standards. Georgetown and Leander acknowledge that an amenity center is proposed to be constructed on the Land; Georgetown agrees that an appropriately-sized Connection for such amenity center shall not be prohibited as long as the Connection Limit is not exceeded and the Wastewater Standards are met. Leander further agrees that noncompliance with this Section after expiration of a Cure Period shall be a material default of this Agreement. (c) Delivery to Delivery Point. Leander shall be solely responsible for conveying wastewater from the Connections to the Delivery Point. (d) Leander System. Leander will be responsible for operating and maintaining the Leander System in good working order; for making all needed replacements, additions and improvements as required for the operation of the Leander System; for ensuring that wastewater delivered to the Delivery Point is in compliance with the Wastewater Standards; for performing all inspections; for reading meters, billing and collecting from all Customers on the Land; and for performing all other usual and customary services and administrative functions associated with retail wastewater utility systems. Leander shall be solely responsible for applying Leander’s ordinances, standards and specifications to the design, construction, and acceptance for operation and maintenance of the Leander System and installation of the Connections. Without limitation on generality of the foregoing, Leander shall construct, operate and maintain the Leander System in compliance with the requirements of the regulations at 30 T.A.C. ch. 213, as the same may be amended from time to time. (e) Construction and Inspection Requirements for Connections. The physical connection of each service line to the Leander System shall be the responsibility of Leander and will not be left to the discretion of a plumber or contractor unless the plumber or contractor is under the direct supervision of or the work is inspected by Leander’s authorized representative. Leander will maintain strict supervision and maintenance the Leander System so prevent connections such as roof drains, air conditioning condensate, or any other connections that allow surface drainage to enter the Leander System and then be discharged into the Georgetown System. Leander will inspect all Connections to the Leander System. (f) Georgetown as Exclusive Provider. Leander agrees that Georgetown shall be the exclusive provider of the Wholesale Wastewater Services and that no other person or entity shall be allowed to provide same; provided that Georgetown is not in default of this Agreement. 7 Section 2.03 Title to and Responsibility for Wastewater and Effluent (a) Title. Subject to Section 2.05 of this Agreement, title to wastewater collected, transported and treated under this Agreement shall be with Leander through the Delivery Point. After the Delivery Point, title to the wastewater shall pass to Georgetown. (b) Rights to Treated Effluent. Leander agrees that it shall never have or claim any interest in or right to treated effluent or reclaimed/reuse water generated from Connections on the Land, and shall never use or sell such water, regardless of the source of the water. Section 2.04 Cooperation During Emergency. Leander will cooperate with Georgetown during periods of Emergency, replacement of facilities, or required maintenance. If necessary, upon prior notice, Leander will discontinue use of, cycle, test, inspect, or otherwise operate and maintain the Leander System at its expense in a manner that reasonably determined by Georgetown to be necessary for the safe and efficient completion of repairs or replacement of facilities, the restoration of service, and the protection of the public, health, safety and welfare. Section 2.05 Liability for Wastewater. Liability for damages to third persons arising from the reception, transportation, delivery and disposal of wastewater under this Agreement shall remain with Leander on its side of and up to and including the Delivery Point. With the exception of wastewater that does not meet the Wastewater Standards, liability to third persons arising from and responsibility for the reception, transportation, delivery and disposal of wastewater will pass to Georgetown after passing through the Delivery Point. Leander shall remain responsible for all wastewater that it delivers to Georgetown that does not meet the Wastewater Standards prior to and/or at the Delivery Point. ARTICLE III. WASTEWATER QUALITY Section 3.01 Condition of Wastewater Delivered. Leander agrees to use diligent efforts to operate and maintain the Leander System so as to ensure that the wastewater delivered to the Georgetown System shall meet the Wastewater Standards. Section 3.02 Establishment and Enforcement of Wastewater Standards. Leander acknowledges that Georgetown may establish and amend from time to time the Wastewater Standards and other ordinances, rules and regulations applicable to the Georgetown System relating to wastewater quality, including but not limited to Prohibited Wastes, Prohibited Discharges, Industrial Wastes, pretreatment, monitoring, measures, and other requirements pertaining to wastewater discharged into the Georgetown System. Georgetown shall give Leander at least forty-five (45) days prior written notice of any amendments to such Wastewater Standards and other ordinances, rules and regulations before such amendments become effective as to Leander; provided however, that failure of Georgetown to provide prior notice to Leander of any such amendments shall not affect the applicability of such amendments to Leander that were approved by the Georgetown City Council at an open meeting. Leander shall require Customers desiring to discharge wastewater into the Georgetown System to comply with the Wastewater Standards. Failure of Leander to comply with the terms and conditions of this Section after the expiration of a Cure Period shall constitute a material default of this Agreement. 8 Section 3.03 Preapproval of Industrial Waste or Prohibited Discharges. Leander shall not cause, suffer or allow discharges of Industrial Waste or Prohibited Discharges into the Georgetown System without the prior written consent of Georgetown, which consent may be withheld by Georgetown in its sole discretion, Leander shall submit all plans for projects involving Industrial Waste or Prohibited Discharges to Georgetown for approval before the connection is made. Georgetown will determine, in its sole discretion, whether Leander’s codes and standards will adequately provide for pretreatment of the Industrial Waste or Prohibited Discharge. If not, Leander shall be prohibited from making the connection or allowing discharge into the Georgetown System. Georgetown agrees that, for the purpose of this Section, Leander’s codes and ordinances will be sufficient if they are at least as stringent as the Wastewater Standards. Section 3.04 Leander Enforcement of Wastewater Standards. Upon Georgetown’s request, Leander shall seek injunctive or other appropriate relief to prohibit discharge of wastewater from the Land that does not meet the Wastewater Standards into the Georgetown System, or wastewater from the Land that will otherwise damage the Georgetown System, pass through the Georgetown System without adequate pretreatment, interfere with Georgetown’s treatment system, interfere with Georgetown’s compliance with its TCEQ permits, or otherwise pose an imminent danger to public health, or if a specific Customer is not making sufficient progress toward implementing an approved pretreatment system. Section 3.05 Reimbursement. Leander will reimburse Georgetown for any reasonable legal, engineering or other consultant expense, and any administrative, civil or criminal fines or penalties that Georgetown incurs to the extent due to the quality of wastewater that it receives at the Delivery Point from the Land that does not meet the Wastewater Standards, or the receipt of wastewater in excess of the Connection Limit. Section 3.06 Sampling and Testing. Leander agrees that Georgetown shall have the right, at its option and expense, to sample wastewater discharges within the Leander System. Leander will make necessary arrangements for and provide assistance to Georgetown in obtaining lawful access to sampling points within the Leander System. Leander agrees that its rules will provide that any of its individual Customers found to be in violation of the Wastewater Standards or Leander’s ordinances and regulations pertaining to the Leander System or who refuse access for the purpose of sampling, may be disconnected from the Leander System, subject to compliance with applicable legal requirements of the TCEQ. ARTICLE IV. WASTEWATER RATES, FEES AND CHARGES Section 4.01 Wholesale Wastewater Rates and Charges. (a) Rates and Charges. The monthly wholesale wastewater rate shall be the Rates and Charges (defined herein), as may be adjusted from time to time by Georgetown in its sole discretion; provided that Georgetown shall give Leander at least sixty (60) days’ prior written notice of any increases in the Rates and Charges before such adjustments become effective as to Leander. Leander shall pay the Rates and Charges in the time and manner described in this Section. For each billing period, Georgetown will forward to Leander a detailed statement of the 9 Rates and Charges due for that billing period that enables Leander to determine how the Rates and Charges shown on the invoice were calculated. Leander shall not be charged Rates and Charges until after the first Connection is made to the Leander System. Leander shall give Georgetown prompt written notice when the first Connection has been made. Leander agrees to pay the Rates and Charges shown on each invoice, plus any amounts due under Section 4.01(c) of this Agreement, by check or bank wire no later than the date that is thirty (30) days after the date of the invoice (the “Due Date”) in order not to be considered delinquent; provided that Leander may dispute a bill as set forth in Section 4.01(b) of this Agreement and payment of an invoice in full shall not constitute a waiver of Leander’s right to dispute said invoice. Payment of the Rates and Charges made by check must be received on or before the Due Date at the following address: City of Georgetown Attn: Utility Billing Department 300-1 Industrial Ave. Georgetown, TX 78626 Leander shall request wiring instructions from Georgetown prior to remitting payments of the Rates and Charges by bank wire. (b) Billing Disputes. If Leander at any time disputes the amount to be paid by it to Georgetown, Leander shall nevertheless promptly make the disputed payment or payments, but Leander shall have the right to seek a judicial determination whether the rates charged by Georgetown are in accordance with the terms of this Agreement. If it is subsequently determined by agreement or court decision that the disputed amount paid by Leander should have been less or more, Georgetown shall promptly revise the amount in a manner such that Leander or Georgetown shall recover the amount due. Disputed charges shall first attempt to be resolved using the procedures described in Section 6.03 of this Agreement before filing a petition with the administrative agency or court having jurisdiction. (c) Late Charges. Any amount billed to Leander that is not paid by the Due Date shall accrue an immediate ten percent (10%) penalty. Leander further agrees to pay all costs of collection, including attorney’s fees. (d) Effect of Nonpayment. If Georgetown has not received payment from Leander of all amounts due under Section 4.01(a) and (c) of this Agreement (including any late charges and costs of collection) on or before the Due Date for the next monthly billing period immediately following the original Due Date, then Leander shall be in default of a material obligation under this Agreement. In the event of any such default, Georgetown may, in its discretion, restrict service to volumes sufficient to service only existing Connections until payment in full is made. Leander agrees that it shall not make or allow any new Connections on the Land until after it has cured the default by paying all sums due under Section 4.01(a) and (c) of this Agreement in full and confirming Georgetown’s receipt and acceptance of same. (e) Monthly Report. Each calendar month, Leander shall deliver to Georgetown the number of Active Connections on the Land. Georgetown shall use the number of Connections stated in the report to calculate the Wholesale Water Rate for the billing period within which the 10 date the report was filed. Georgetown shall have access to Leander’s utility records for the Land during reasonable business hours for the purpose of verifying the number of Connections reported; provided that Georgetown maintains the confidentiality of any personally identifiable information that is confidential pursuant to Section 182.052 Texas Utility Code and that is specifically identified by Leander as confidential. Section 4.02 Wastewater Impact Fees. (a) General. Leander agrees that it shall impose and collect the Wastewater Impact Fee for each Connection on the Land. Leander shall collect such Wastewater Impact Fee at the time that the Connection is first made to the Leander System and shall pay such Wastewater Impact Fee to Georgetown monthly as provided in this Section. The Wastewater Impact Fees received during a calendar month shall be delivered to Georgetown within ten (10) days after the last day of such calendar month, together with a detailed statement showing the Customer service address and date of each Connection. All Wastewater Impact Fees, interest, and late fees will be retained by Georgetown. (b) Late Charges. Wastewater Impact Fees that are not paid when and as required by Section 4.02(a) of this Agreement shall accrue an immediate ten percent (10%) penalty. Leander further agrees to pay all costs of collection, including attorney’s fees. (c) Effect of Nonpayment. If Georgetown has not received payment from Leander of all amounts due under Sections 4.02(a) and (b) of this Agreement when and as required thereby, then the amounts will be considered delinquent and Leander shall be in default of a material obligation under this Agreement after expiration of the Monetary Cure Period. In the event of any delinquency, Georgetown may, in its discretion, restrict service to volumes sufficient to service only existing Connections until payment in full is made. Leander agrees that it shall not make or allow any new Connections on the Land until after it has cured the default in full by paying all sums due under Sections 4.02(a) and (b) of this Agreement in full and confirming Georgetown’s receipt and acceptance of same (d) Effect of Payment. Georgetown agrees to guarantee capacity in the Georgetown System in an amount equal to the number of Connections for which Wastewater Impact Fees have been paid in full. Nothing in this Agreement shall be construed as reserving capacity for Leander, or the Land in the Georgetown System prior to the payment of the Wastewater Impact Fees required by this Agreement. Section 4.03 Leander’s Retail Wastewater Rates and Charges. During the term of this Agreement, Leander will fix and collect rates and charges for retail wastewater service that are, in the opinion of its governing body, sufficient, together with any other revenues available to Leander, to produce the amount necessary to operate, repair, and maintain the Leander System and to pay the Rates and Charges and Wastewater Impact Fee to Georgetown as required by this Agreement. Leander will be solely responsible for ensuring that its retail rates and charges are determined and collected in accordance with applicable law. ARTICLE V. AUTHORITY, TERM, ASSIGNMENT; REMEDIES 11 Section 5.01 Authority. This Agreement is entered into, in part, under the statutory authority of Section 552.001 of the Texas Local Government Code. Section 5.02 Term. The term of this Agreement will commence on the Effective Date and continue until the date that is forty (40) years after the Effective Date, unless terminated earlier in accordance with this Agreement. In the event that the Related Agreements are not fully executed on or before June 1, 2015, then this Agreement shall become null and void for all purposes as of June 1, 2015. At the end of the Term, this Agreement shall automatically renew for additional one-year terms, unless terminated in accordance with this Agreement. Section 5.03 Termination. In addition to the other provisions of this Agreement relating to termination, in the event that the SSGI Extension has not been substantially completed and accepted by Georgetown for operation and maintenance as of August 8, 2021, or in the event the “Offsite Wastewater Utility Construction Agreement for the ‘Lively Tract’ a/k/a West Williamson County Municipal Utility District No. 2” among Georgetown, Sentinel Land Company, LLC and West Williamson County Municipal Utility District No. 2 is terminated without completion and Georgetown’s acceptance of the SSGI Extension, then Leander or Georgetown may terminate this Agreement. Section 5.04 Agreement Subject to Applicable Law. This Agreement will be subject to all valid rules, regulations, and applicable laws of the United States of America, the State of Texas and/or any other governmental body or agency having lawful jurisdiction or any authorized representative or agency of any of them. Section 5.05 Cooperation to Assure Regulatory Compliance. Since the Parties must comply with all federal, state, and local requirements to obtain permits, grants, and assistance for system construction, studies, etc., each Party will cooperate in good faith with the other Party at all times to assure compliance with any such governmental requirements where noncompliance or non - cooperation may subject the Parties to penalties, loss of grants or other funds, or other adverse regulatory action in the performance of this Agreement. ARTICLE VI. DEFAULT; REMEDIES Section 6.01 Leander Default. (a) Monetary Defaults. In addition to the remedies provided elsewhere in this Agreement related to the failure of Leander to pay money, if Leander fails to perform any of its monetary obligations set forth in Sections 4.01(a) and (c) and Sections 4.02(a) and (b) under this Agreement, Georgetown shall also have the right, after providing Leander written notice and a fourteen (14) day opportunity to cure (the “Monetary Cure Period”), to pursue any remedy available at law or in equity, including, without limitation, the right to obtain a writ of mandamus or an injunction against Leander requiring Leander to immediately comply with its obligations under this Agreement without the necessity of showing irreparable harm or inadequate remedies at law (b) Default for Wastewater Quality. The default procedures for delivery to the Delivery Point of wastewater that does not meet the Wastewater Standards shall be as set forth in 12 Article III of this Agreement, and to the extent not remedied by those procedures, shall be as set forth in Section 6.01(c) of this Agreement. (c) General Default Procedures. In addition to the remedies provided elsewhere in this Agreement, in the event Leander fails to perform any of its obligations under this Agreement, except for the obligation to pay money for which the default procedures are set forth in Section 6.01(a), Georgetown shall also have the right, after providing Leander written notice and a thirty (30) day opportunity to cure, which may be extended as provided in this Section 6.01(c), (the “Cure Period”), to pursue any remedy available at law or in equity, including, without limitation, the right to obtain a writ of mandamus or an injunction against Leander requiring Leander to immediately comply with its obligations under this Agreement, and/or commence pumping and hauling of wastewater from the Connections and cease delivery of wastewater to the Delivery Point, all without the necessity of showing irreparable harm or inadequate remedies at law, and the right to terminate this Agreement. If the default cannot be cured within the Cure Period, but Leander commences the cure within the Cure Period and diligently pursues same, Leander shall have an additional period of time, not to exceed ninety (90) days from the date of the initial default notice, within which to complete the cure. The Cure Period must pass before Georgetown may initiate any remedies available to it due to Leander’s breach. If Leander cures the breach to Georgetown’s satisfaction, Georgetown may not initiate any such remedies. The time periods contained in this section shall not apply to sewer system overflows, and the parties agree that they each shall respond to sewer system overflows promptly following notice thereof. In addition, and notwithstanding Section 6.04 of this Agreement, if any administrative or judicial action or other legal proceeding is filed or threatened against Georgetown arising from Leander’s default under or breach of this Agreement, Leander shall pay all of Georgetown’s reasonable attorney’s fees, court costs, and expenses (even if not recoverable by law as court costs) and administrative, civil or criminal penalties or fines incurred in that action or proceeding and all appellate proceedings only to the extent such fees, costs, expenses, penalties, or fines are due to Leander’s breach of this Agreement . For the purposes of this section, the term “attorney’s fees” includes, without limitation, paralegal fees, investigative fees, testifying or consulting expert fees, administrative costs, disbursements, and all other charges incurred by Georgetown and the attorneys representing Georgetown. Section 6.02 Georgetown Default. In the event a default by Georgetown shall remain uncured thirty (30) days after receipt by Georgetown of written notice from Leander of the alleged default, Leander shall have the right to pursue any remedy available at law or in equity, provided, however, that if the default cannot be cured within the thirty (30) day period, but Georgetown commences the cure within the thirty (30) day period and diligently pursues same, Georgetown shall have an additional period of time, not to exceed ninety (90) days from the date of the initial default notice, within which to complete the cure. The cure period and any extensions thereof must pass before Leander may initiate any remedies available to it due to Georgetown’s breach. If Georgetown cures the breach to Leander’s satisfaction, Leander may not initiate any such remedies. Notwithstanding anything to the contract in this Agreement, in no event shall Leander be entitled to pursue or recover on any action for damages . Such remedies that Leander may pursue include, without limitation except for the limitation on non- recovery of damages, the right to obtain a writ of mandamus or an injunction against Georgetown requiring Georgetown to comply with its obligations under this Agreement, 13 including the obligation to provide Wholesale Wastewater Services to the Land in accordance with this Agreement, or Leander may terminate this Agreement for any such uncured default. Section 6.03 Good Faith Negotiations. The Parties agree that they will attempt to negotiate in good faith to resolve any disputes arising under this Agreement prior to filing a petition with a court or administrative agency having jurisdiction, and may engage in non-binding or binding mediation, arbitration or other alternative dispute resolution methods as allowed by the laws of the State of Texas and as they may mutually agree. Section 6.04 Attorneys Fees. If either Party institutes legal proceedings to seek adjudication of an alleged default under this Agreement, the prevailing Party shall be entitled to recover reasonable and necessary attorneys’ fees from the non-prevailing Party. ARTICLE VII. GENERAL PROVISIONS Section 7.01 Assignment. The rights and obligations of a Party under this Agreement are not assignable in whole or in part without the prior written consent of the other Party. Section 7.02 Amendment. This Agreement may be amended or modified only by written agreement duly authorized by the respective governing bodies of Leander and Georgetown and executed by duly authorized representatives of each. Section 7.03 Cooperation. (a) The Parties shall cooperate with each other as reasonably and necessary to carry out the intent of this Agreement, including but not limited to the execution of such further documents as may be reasonably necessary. (b) In the event of any third party lawsuit or other claim relating to the validity of this Agreement or any actions taken hereunder, the Parties agree to cooperate in the defense of such suit or claim, and to use their respective best efforts to resolve the suit or claim without diminution in their respective rights and obligations under this Agreement. Section 7.04 Notice. Any notice given under this Agreement (“Notice”) must be in writing and may be given: (i) by depositing it in the United States mail, certified, with return receipt requested, addressed to the Party to be notified and with all charges prepaid; or (ii) by depositing it with Federal Express or another service guaranteeing “next day delivery”, addressed to the Party to be notified and with all charges prepaid; or (iii) by personally delivering it to the Party. Notice is effective when received. For purposes of Notice, the addresses of the Parties will, until changed as provided below, be as follows: Georgetown: City of Georgetown 113 E 8th Street Georgetown, Texas 78626 Attn: City Manager 14 With Required Copy to: City of Georgetown 113 E 8th Street Georgetown, Texas 78626 Attn: City Attorney Leander: City of Leander 200 W. Willis Leander, TX 78641 Attn: City Manager With Required Copy to: Knight & Partners 223 W. Anderson Lane, Suite A105 Austin, TX 78752 Attn: Paige Saenz The Parties may change their respective addresses to any other address within the United States of America, and may designate a different or additional person to receive Notice, by giving at least five (5) days’ written Notice to the other Party. Section 7.05 Severability; Waiver. (a) If any part, term or provision of this Agreement is held by the courts to be illegal, invalid or otherwise unenforceable, such illegality, invalidity or unenforceability shall not affect the validity of any other Party, term or provision, and the rights of the Parties will be construed as if the part, term or provision was never part of this Agreement. (b) Any failure by a Party to insist upon strict performance by the other Party of any material provision of this Agreement will not be deemed a waiver thereof or of any other provision, and such Party may at any time thereafter insist upon strict performance of any and all of the provisions of this Agreement. Section 7.06 Applicable Law and Venue. The interpretation, performance, enforcement and validity of this Agreement is governed by the laws of the State of Texas. All obligations of the Parties created in this Agreement are performable in Williamson County, Texas, and venue for any action arising under this Agreement will be in Williamson County, Texas. Section 7.07 Entire Agreement. This Agreement, as the same may be amended from time to time, constitute the entire agreement of the Parties. There are no other agreements or promises, oral or written, between the Parties regarding the subject matter of this Agreement. This Agreement supersedes any prior or contemporaneous oral or written understandings or representations of the Parties concerning the subject matter. Section 7.08 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer upon any person or entity, other than to the Parties, any rights, benefits, or remedies under or by reason of this Agreement. 15 Section 7.09 Duplicate Originals; Multiple Counterparts. This Agreement may be executed in duplicate originals each of equal dignity. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which will together constitute the same instrument. Section 7.10 Records. Georgetown and Leander each agree to preserve, for a period of at least five years after this Agreement is terminated or fully performed, all books, records, test data, charts and other records and documents pertaining to this Agreement. Georgetown and Leander shall each have the right, respectively, during reasonable business hours to inspect such records and documents. Section 7.11 Exhibits, Headings, and Construction. All schedules and exhibits referred to in or attached to this Agreement are incorporated into and made a part of this Agreement for all purposes. The paragraph headings contained in this Agreement are for convenience only and do not enlarge or limit the scope or meaning of the paragraphs. Wherever appropriate, words of the masculine gender may include the feminine or neuter, and the singular may include the plural, and vice-versa. The Parties acknowledge that each of them have been actively and equally involved in the negotiation of this Agreement. Accordingly, the rule of construction that any ambiguities are to be resolved against the drafting Party will not be employed in interpreting this Agreement or any exhibits hereto. This Agreement will become effective as of the Effective Date only if one or more counterparts, individually or taken together, bear the signatures of all of the Parties. Section 7.12 Force Majeure. If any Party is rendered unable, wholly or in part, by Force Majeure to carry out any of its obligations under this Agreement, other than an obligation to pay or provide money, then such obligations of that 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. Such cause, as far as possible, shall be remedied with all reasonable diligence. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the affected Party, and that the above requirements that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demand of the opposing party or parties when such settlement is unfavorable to it in the judgment of the affected Party. Section 7.13 Authority for Execution; Validity. Georgetown certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with its City Charter and City ordinances. Leander certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with its City Charter and City ordinances. Section 7.14 Time. Time is of the essence of this Agreement with respect to payment of Rates and Charges and Wastewater Impact Fees. In computing the number of days for purposes of this Agreement, all days will be counted, including Saturdays, Sundays and legal holidays; however, if the final day of any time period falls on a Saturday, Sunday or legal holiday, then the final day will be deemed to be the next day that is not a Saturday, Sunday or legal holiday. 16 Section 7.15 Exhibits. The following exhibits are attached to this Agreement, and made a part hereof for all purposes: Exhibit A - Land – metes and bounds Exhibit B - Land - sketch Exhibit C - Delivery Point location map [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. SIGNATURE PAGES FOLLOW.] 17 IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement on the dates indicated below. CITY OF GEORGETOWN By:___________________________________ Dale Ross, Mayor Date:__________________________________ ATTEST: Jessica Brettle, City Secretary APPROVED AS TO FORM: Bridget Chapman, City Attorney STATE OF TEXAS § § COUNTY OF WILLIAMSON § This instrument was acknowledged before me the ____ day of ____________________, 20__, by Dale Ross, Mayor of the City of Georgetown, Texas, a home-rule city, on behalf of the city. ________________________________ Notary Public Signature 18 CITY OF LEANDER, TEXAS By:___________________________________ Christopher Fielder, Mayor Date:__________________________________ ATTEST: ________________________________ Debbie Haile, City Secretary APPROVED AS TO FORM: ____________________________________ ________________________, City Attorney STATE OF TEXAS § § COUNTY OF WILLIAMSON § This instrument was acknowledged before me the ____ day of ____________________, 20__, by Christopher Fielder, Mayor of the City of Leander, Texas, a home-rule city, on behalf of the city. ________________________________ Notary Public Signature FINAL 4.4.2015 Exhibit A Page ___ of ___ EXHIBIT A [Metes and Bounds Description of the Land] Exhibit B Page ___ of ___ EXHIBIT B [Sketch of Land] Exhibit C Page ___ of ___ EXHIBIT C [SSGI Extension Map showing Approximate Delivery Point Location] EXHIBIT A Page 1 of 13 EXHIBIT A Page 2 of 13 EXHIBIT A Page 3 of 13 EXHIBIT A Page 4 of 13 EXHIBIT A Page 5 of 13 EXHIBIT A Page 6 of 13 EXHIBIT A Page 7 of 13 EXHIBIT A Page 8 of 13 EXHIBIT A Page 9 of 13 EXHIBIT A Page 10 of 13 EXHIBIT A Page 11 of 13 EXHIBIT A Page 12 of 13 EXHIBIT A Page 13 of 13 EXHIBIT B to Offsite Wastewater Utiility and Construction Agreement for the 'Lively Tract' a/k/a Wes Williamsonc County MUD No. 2 - the "Land" O A K G R O V E HOLLOW TREE JACK NICKLAUS BLVD !(29 CHAPAR R A L R D W SH 29 VP RANCH DR C E D A R H O L L O W R D GREEN- THREAD LA PATRONA ECIM MARON HILLS DR BLUE HERON CHARM- STONE I N D I G O L N S T A M P E D E T R L E S T A N C I A WAY WATEROAKPKWY TURNING LEAF TRL LAZY OAKS DR CANTERA WAY HIGHLAND RD G R D V I S T A H G H T S R D T E R R A C E V I E W D R Lively Tract Service Delivery Points 0 1,250 2,500625 Feet F Existing WW Te rmin us Point Delivery Point (W) Delivery Po int (WW) Lively Tract #*#*#*#*#* #* #* #* 15 in, approx. 1950 ft 18 in, approx. 3200 ft 21 in, approx. 4950 ft 24 in, approx. 3800 ft Final Terminus(manhole) Current Terminus(manhole) W SH 29 D R V W LEANDER R D V P R A N C H D R I N D I G O L N LAKE SID E D R C H A P A R R A L R D E S T A N C I A W A Y O L D C R E E K S I D E R D C E D A R H O L L O W R D PA R K P L A C E D R R I D G E V I E W D R CHADW I C K D R G A B R I E L F O R E S T C R O S S C R E E K R D O A K M E A D O W D R WATERFO R D L N MARCO S D R MONTEL L D RMARSHALL C T O A K P L A Z A D R PALOMA PT B A R T L E Y D R ESCAL E R A P K W Y SSGI Extension: Sizes and Alignment Existing SSGI Existing SSGI Parcels (2012) Proposed Development SSGI Extension Diameter (in) 15 18 21 24 ­ 2,000 Feet Donald H. LivelyFamily Partnership, Ltd.a/k/a WWCMUD No. 2 Water Oak Cresent Bluff Chapman Note: SSGI Extension and Manhole locations approximate EXHIBIT C to "Offsite Wastewater Utility Construction Agreement for the 'Lively Tract' a/k/a West Williamson County MUD No. 2 "- South San Gabriel Interceptor ("SSGI") EXHIBIT C Page 1 of 1 EXHIBIT D Interim Connection Infrastructure The Interim Connection Infrastructure shall consist of the construction of a twelve-inch (12”) water transmission line that will connect to Georgetown’s existing 24 -inch water transmission line adjacent to the Land along Highway 29, together with a meter vault, meter and all related appurtenances. City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Consideration and possible recommendation of an Offsite Wastewater Utility Construction Agreement with Sentinel Land Company, LLC (Texas) and the West Williamson County Municipal Utility District No. 2 for the Lively Tract. -- Wesley Wright, P.E., Systems Engineering Director ITEM SUMMARY: The Lively Tract is consists of over 430 acres and is proposed to develop into approximately 1,200 residential lots. The tract is contained entirely within the Leander Extraterritorial Jurisdiction (per separate agreement). Water will initially be provide through Georgetown, but ultimately, the development will be served by Leander (per separate agreement). Wholesale wastewater will be provided by the City of Georgetown (per separate agreement). This agreement is proposed to facilitate the construction of an extension of the South San Gabriel Wastewater Interceptor to provide wholesale wastewater capacity to the Lively Tract. All direct and indirect costs will be the responsibility of the developer. After a good faith effort, if the developer is ultimately unable to obtain the necessary wastewater easements, the city may be required to assist. However, again, all costs will be paid by the developer. Staff is in agreement with the proposed alignment and it matches our current Wastewater Master Plan. In addition to the Lively Tract, the proposed interceptor extension will also provide wastewater capacity to a currently under-served area along the SH 29 corridor. Downstream facilities are in place, and the city is able to accept and treat the expected flow. FINANCIAL IMPACT: This agreement contains no direct costs to the city. All costs of design, construction, and easement acquisition will be the responsibility of the developer. SUBMITTED BY: Wesley Wright, P.E., Systems Engineering Director ATTACHMENTS: Description Type SSGI Construction Agreement- FINAL 4.4 Backup Material Exhibit A Backup Material Exhibit B Backup Material Exhibit C Backup Material Exhibit D Backup Material Exhibit E Backup Material Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 1  STATE OF TEXAS § OFFSITE WASTEWATER UTILITY   § CONSTRUCTION AGREEMENT   § FOR THE “LIVELY TRACT”  § A/K/A WEST WILLIAMSON COUNTY COUNTY OF WILLIAMSON § MUNICIPAL UTILITY DISTRICT NO. 2       The parties to this Offsite Wastewater Utility Construction Agreement for the  “Lively Tract” a/k/a West Williamson County Municipal Utility District No. 2 (the  ʺAgreementʺ) are the CITY OF GEORGETOWN, a Texas Home Rule Municipal  Corporation (the “City”), Sentinel Land Company, LLC, a Texas limited liability  company (the “Developer”), and, upon confirmation of its creation, West Williamson  County Municipal Utility District No. 2, a municipal utility district to be created by the  Texas Commission on Environmental Quality (“TCEQ”) under Chapters 49 and 54 of the  Texas Water Code (the “District”).  Recitals  WHEREAS, Developer has a contract to purchase and develop approximately  437.04 acres of land which is described by metes and bounds on Exhibit A and by sketch  on Exhibit B (the “Land”); and  WHEREAS, the majority of the Land is located within the extraterritorial  jurisdiction of the City of Leander, Developer has requested and the City has agreed to  the balance of the Land being released from the extraterritorial jurisdiction of the City  and, following such release, the Land will be entirely within the extraterritorial  jurisdiction of the City of Leander.   Following the transfer of all of the Land into the City  of Leander’s extraterritorial jurisdiction, the City of Leander intends to execute a consent  and development agreement with Developer setting forth the terms, conditions and  requirements relating to the operation of the District and development of the Land; and  WHEREAS, the City of Leander has adopted a Consent Resolution pursuant to  which the City of Leander has consented to the creation of the District on that portion of  the Land located inside the City of Leander’s extraterritorial jurisdiction and an  application for creation of the District is pending at TCEQ; and  WHEREAS, wholesale wastewater service to the City of Leander for the Land will  be provided by the City pursuant to the “Wholesale Wastewater Agreement” to be  entered into between Leander and the City; and  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 2  WHEREAS, the City’s Unified Development Code requires the extension of  wastewater lines that satisfy the City’s current Wastewater Master Plan (herein so  called); and  WHEREAS, the City’s Wastewater Master Plan contemplates construction and  installation of a wastewater gravity collection main of various diameters originating at  the current terminus of an existing wastewater gravity interceptor located on land  owned by Laredo W.O., Ltd. at the approximate location shown on Exhibit C (the  “Current Terminus”), and continuing in a westerly direction parallel to and within  portions of the South San Gabriel River, and is currently planned to terminate at the  eastern boundary of the Land at the approximate location shown on Exhibit C (the  “Final Terminus”), the entire length of said gravity main being referred to herein as the  South San Gabriel Interceptor (the “SSGI”); and  WHEREAS, the City has entered into agreements with others to extend the SSGI  from the Current Terminus to the approximate location shown on Exhibit C (the  “Interim Terminus”); and  WHEREAS, Developer anticipates that it will need service from the SSGI prior to  the time that others are anticipated to construct that portion of the SSGI from the Current  Terminus to the Interim Terminus; therefore, this Agreement provides for the design  and construction by Developer of the SSGI Extension from the Current Terminus to the  Final Terminus (the “SSGI Extension”); and   WHEREAS, the Developer desires to fund and construct the SSGI Extension in  order to serve the Land; and  WHEREAS, as of the Effective Date (defined herein), the cost of the SSGI  Extension is not included in the City’s capital improvements plan or wastewater impact  fee; and  WHEREAS, after considering the factors set forth in Section 13.10 of the City Code  of Ordinances and Section 13.09 of the City Unified Development Code, the City Council  finds and determines that it would be appropriate to enter into this Agreement  providing for the design and construction of the SSGI Extension; and  WHEREAS, this Agreement is necessary to protect the health, safety, and general  welfare of the community and to limit the harmful effects of substandard subdivisions;  to facilitate the Developer’s development of the Land and satisfy the infrastructure  improvements regarding wastewater to service the Land; and to protect the City from  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 3  bearing any unnecessary expense of constructing or completing utility improvements;  and  WHEREAS, this Agreement is authorized by and consistent with state law and  the Cityʹs other ordinances, regulations and other requirements governing development  of subdivisions and provision of utility services to other similarly situated wastewater  customers of the City.  NOW, THEREFORE, IN CONSIDERATION of the foregoing recitals and the  mutual covenants, promises, and obligations by the parties set forth in this Agreement,  the Parties agree as follows:  Definitions    1. Definitions.  For the purposes of this Agreement, the following terms have the  meanings set forth below when used herein:  a. Applicable Laws means all of the following:  all federal, state and local laws,  ordinances, orders, specifications, standards, and regulations pertaining  and applicable to design and construction of the SSGI Extension (defined  herein), including, without limitation, this Agreement, the Texas  Commission on Environmental Quality laws and rules for construction  over the Edwards Aquifer Recharge Zone; the City’s Code of Ordinances,  Unified Development Code, Construction Specifications and Standards,  Drainage Criteria Manual, Building Codes, Fire Codes, Inspection  Guidelines, and Development Manual; the Approved Plans (defined  herein), and this Agreement.  b. Approved Plans means, collectively, the plans and specifications for the  SSGI Extension prepared by Engineer in accordance with the Applicable  Law and approved by the City in its regulatory capacity.  c. City has the meaning set forth in the first paragraph of this Agreement.   d. Commencement of Construction occurs, ʺConstruction Commencesʺ on, and/or  Developer will be deemed to ʺCommence Constructionʺ of the SSGI  Extension at such time as the Developer has:  (i) obtained all necessary permits and approvals from the City and any  other governmental body having jurisdiction over the construction  of the SSGI Extension to allow the construction thereof; and  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 4  (ii) entered into a contract with a construction contractor which  requires such contractor to construct the entirety of the SSGI  Extension on or before the Completion Deadline, which  construction may be done in phases to allow City approval of each  phase as completed; and  (iii) issued a ʺNotice to Proceedʺ to the contractor authorizing the  contractor to commence and pursue all of the work necessary to  complete the SSGI Extension on or before the Completion Deadline;  and  (iv) delivered materials and equipment to, mobilized contractors on, or  otherwise started substantial site work for the SSGI Extension  pursuant to the Approved Plans.    e. Commencement Date means the date on which Commencement of  Construction occurs, which date shall occur no later than five (5) years  after the Easement Acquisition Date.  f. Completion of Construction with regard to the SSGI Extension will be  deemed to have occurred when:  (i) construction of the SSGI Extension is substantially complete such  that all pipes, lines, appurtenances, and equipment are capable of  being fully operational following approval by the City; and   (ii) the SSGI Extension can be used for its intended purpose and only  punch list items that do not adversely affect the capability of the  SSGI Extension to operate and function safely in the ordinary course  of business remain to be completed, and those items can be  completed within thirty (30) days or such additional time as is  determined reasonably necessary to complete the work, subject to  Force Majeure, and   (iii) the design Engineer has certified in writing to the City that the SSGI  Extension is substantially complete;  and  (iv) all required line testing and any other approvals and inspections  applicable to the SSGI Extension has been successfully conducted  and all final approvals required for operation and use have been  obtained from all authorities with jurisdiction over the SSGI  Extension.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 5  g. Completion of Design will be deemed to have occurred when the Approved  Plans for the SSGI Extension have been prepared by or on behalf of the  Developer or the District in accordance with the Applicable Laws and  approved by the City in its regulatory capacity.   h. Completing Party means the person or entity (including the City, Developer  or District) that constructs and causes completion and acceptance by the  City of a segment of the SSGI up to the Final Terminus.  i. Completion Notice shall have the meaning set forth in Section 10 of this  Agreement.   j. Completion Deadline means the date that is 365 days after the  Commencement Date, but not later than August 8, 2021, which  Completion Deadline shall be subject to Force Majeure.  k. Current Terminus has the meaning set forth in the recitals of this  Agreement.  l. Customers means those persons or entities owning or using wastewater  service connections located on the Land.  m. Design Deadline means the date that is five (5) years after the Effective Date.  n. Developer means Sentinel Land Company, LLC, a Texas limited liability  company, and its authorized assignees, including the District.  o. District means West Williamson County Municipal Utility District No. 2, a  municipal utility district to be created pursuant to Chapters 49 and 54 of  the Texas Water Code and that certain Consent Agreement between  Leander, Developer, and (upon its creation) the District.  p. Easement Acquisition Date means the date that all Required Easements have  been received by the City.  q. Effective Date means latest of the dates that this Agreement is executed by  both the City and Developer.  r. Engineer means a licensed professional engineer retained by Developer or  District registered to do business in the State of Texas to perform the  design work for the SSGI Extension as contemplated under this  Agreement.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 6  s. Final Terminus has the meaning set forth in the recitals of this Agreement.   t. Final Terminus Easements means the Required Easements located between  the Interim Terminus and the Final Terminus.  u. Force Majeure  means any inability on the part of either (i) Developer to  perform its obligations in accordance with the terms, conditions, standards  and requirements of this Agreement on account of any cause not  reasonably within the control of Developer, including acts of God and  inability to obtain access to the South San Gabriel River and adjacent areas  due to requirements of any governmental authority or any permit granted  for the construction of the SSGI; or (ii) City for whatever reason to perform  its obligations in accordance with the terms, conditions, standards and  requirements of this Agreement on account of any cause not reasonably  within the control of City, including without limitation, and by way of  example only, the following:  acts of God, strikes, lockouts, or other  industrial disturbances, acts of a public enemy or terrorist, orders or  actions of any kind of the government of the United States, the State of  Texas or any local government or political subdivision or regulatory  agency or body, or any civil or military authority, insurrections, riots,  terrorist act or incident, epidemics, landslides, lightning, earthquakes,  fires, hurricanes, storms, floods, washouts, droughts, other weather events;  arrests, restraints of government and people, civil disturbances,  explosions; provided, however, that the inability to make payments  contemplated by this Agreement shall never constitute an event of Force  Majeure.  In the event of Force Majeure, a party’s obligations hereunder  shall be suspended for the duration of the Force Majeure event.  v. Interim Terminus has the meaning set forth in the recitals of this Agreement.  w. Interim Terminus Easements means the Required Easements located between  the Current Terminus and the Interim Terminus.    x. Land has the meaning set forth in the recitals of this Agreement.  y. Leander means the City of Leander, Texas.  z. Maintenance Period shall have the meaning set forth in Section 12 of this  Agreement.  aa. Notice has the meaning set forth in Section 29 of this Agreement.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 7  bb. On‐Site Wastewater Facilities means the public wastewater infrastructure on  the Land to be constructed by Developer or District and dedicated to  Leander by separate agreement, including all internal wastewater  collection lines, piping, valves, manholes, pumps, grinders, lift stations,  and related facilities, equipment, and appurtenances that are necessary for  the provision of retail wastewater collection services by Leander to  Customers.    cc. Required Easements means all easements within and outside of the Land  specified in this Agreement for the placement, construction, ownership,  operation, maintenance, repair and replacement of the SSGI Extension  including, without limitation, temporary construction easements,  permanent and temporary access easements from public roads, and  permanent easements. The Required Easements shall consist of the Interim  Terminus Easements and the Final Terminus Easements.    dd. SSGI or South San Gabriel Interceptor has the meaning set forth in the recitals  of this Agreement.  ee. SSGI Extension Easement Area means the 100‐foot wide easement area  depicted in the exhibit attached hereto as Exhibit “F”.  ff. SSGI Extension has the meaning set forth in the recitals of this Agreement.  gg. Wastewater Impact Fee means a fee in effect at the time of assessment of said  fee established by the City in accordance with Chapter 395 of the Texas  Local Government Code to recoup costs of capital improvements to the  City’s wastewater utility system.   hh. Wholesale Wastewater Agreement means the separate agreement to be  entered into between the City and Leander pursuant to which the City  shall provide wholesale wastewater collection, treatment and disposal  services to Leander for the Land upon completion of construction of the  SSGI Extension pursuant to the terms contained therein.  SSGI Extension Easements    2. Final Terminus Easements.    a. Final Terminus Easements.  Developer shall obtain all Final Terminus  Easements at no cost to the City.  All Final Terminus Easements shall be on  forms substantially similar to the forms of easements attached hereto as  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 8  Exhibit “D” and approved by the City Attorney.  The Final Terminus  Easements shall be one hundred (100) feet in width and shall encumber  that portion of the SSGI Easement Area located between the Interim  Terminus and the Final Terminus.    b. If Developer is unable to obtain the Final Terminus Easements by  September 1, 2015 after using good faith efforts to do so and after  providing the City with written notice confirming its intent construct the  SSGI Extension, the City shall acquire the Final Terminus Easements, using  its powers of eminent domain if necessary, at Developer’s sole cost and  expense; subject to the terms and conditions set forth herein.  In connection  therewith, the City agrees to use good faith efforts to acquire interim  possession and use rights that allow Developer (on behalf of the City) to  access the properties and proceed with construction of the SSGI Extension.   Within sixty (60) business days after receipt of the written request from  Developer requesting that the City acquire the Final Terminus Easements,  documenting their good faith efforts to secure the Final Terminus  Easements (including but not limited to offers, counteroffers, positions of  the parties, valuation documentation, etc.), and confirming its intent to  construct the SSGI Extension, City shall provide a preliminary written  estimate to Developer of projected costs and expenses related to  acquisition of the SSGI Extension Easements.  Developer shall provide  payment in the full amount of the written estimate to the City within thirty  (30) days after receipt of the written estimate. Developer shall pay all costs  and expenses incurred by the City relating to the acquisition of the Final  Terminus Easements, including, without limitation, costs of negotiating  easements with landowners, preparation of easement instruments and  surveys, payment of a negotiated sum for purchase of an easement, and  purchase or condemnation costs incurred by the City, including any  litigation related thereto (including legal fees, witness costs, and court  costs).  In the event that the actual costs of easement acquisition exceed the  original estimate, Developer shall provide payment of the additional  amount within fifteen (15) days of receipt of a written request for payment  from the City.  In the event that the actual costs of easement acquisition are  less than this sum, the City shall promptly refund the excess amount to  Developer.    c. Developer acknowledges and agrees that the City will not authorize its  employees, representatives, agents or consultants to acquire the Final  Terminus Easements until the foregoing payments are received by the City  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 9  in full.  Failure by Developer to timely pay any invoice in full shall  constitute a material breach of this Agreement.  3. Interim Terminus Easements.  On Developer’s written request, the City shall  provide executed copies of the Interim Terminus Easements, if any.  City agrees that the  Interim Terminus Easements will be those that encumber that portion of the SSGI  Extension Easement Area located between the Current Terminus and the Interim  Terminus.  In the event the City does not possess any of the Interim Terminus Easements  as of September 1, 2015, then Developer shall secure such easements in the same manner  described in Section 2 above relating to the acquisition of the Final Terminus Easements;  provided, however, that Developer shall not be responsible for any costs of the City  associated with condemnation or other acquisition of Interim Terminus Easements for  landowners with whom the City has a prior contractual relationship obligating the  landowner to convey such easement to the City before September 1, 2015.    4. City Right of Entry.  To the extent that access is not reasonably available under  the Required Easements, Developer hereby agrees to permit the City, its agents,  employees, representatives and assigns, to enter the Land as necessary for, and limited  to, inspecting the SSGI Extension.    5. Revision of Easement Area.  The Parties acknowledge that unanticipated  conditions encountered during construction may require installation of the SSGI  Extension outside of the SSGI Extension Easement Area, and the City agrees that the  terms of the Required Easements may be revised to allow for such relocation of the  easement area due to such conditions, provided that revisions to the form of easement  attached hereto as Exhibit “D” must be approved in advance by the City in writing.   Upon final completion of construction, and prior to the City’s acceptance of the SSGI  Extension for ownership and maintenance, the Developer shall prepare at its sole cost  and expense a final survey and metes and bounds description of the permanent and final  SSGI Extension Easement Area and, after the City’s approval of same, shall cause the  easement to be filed in the Official Property Records of Williamson County.  Design and Construction     6. SSGI Extension.  At no cost to the City, Developer shall cause Engineer to  complete design drawings, specifications, bid documents and design documents for the  construction of the SSGI Extension in compliance with the Applicable Laws (the “SSGI  Extension Plans”).  The SSGI Extension shall be designed to be located in the general  location depicted on the attached Exhibit “C”, which general location was previously  approved by the City’s representatives.  The City shall provide comments on the final  proposed SSGI Extension Plans within twenty (20) business days after receipt thereof.  If  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 10  the City disapproves any element of the final SSGI Extension Plans, it shall so advise  Engineer and the process shall be repeated until the SSGI Extension Plans are approved  by the City.  The final, City‐approved SSGI Extension Plans are referred to herein as the  Approved Plans.  With regard to the SSGI Extension Plans, the Parties agree:  a. The SSGI Extension shall be of varying diameters ranging from  twenty‐four (24) to fifteen (15) inches in diameter, as generally shown on  Exhibit “C” and as will be finally determined during the design phase.  b. Developer shall cause Completion of Design of the SSGI Extension to occur  on or before the Design Deadline.   c. Developer shall obtain the insurance and bonds described in Exhibit “E”  and provide copies of same to the City prior to Commencement of  Construction of the SSGI Extension.     d. Developer shall cause Substantial Completion of Construction of the SSGI  Extension to occur on or before the Completion Deadline, subject to Force  Majeure.  7. Commencement of Construction; Notice; Inspections. Following City approval  of the Approved Plans, and prior to Commencement of Construction, Developer shall  give written notice to the City’s Utility Director of its intent to Commence Construction  in order to allow the City to assign an inspector for the SSGI Extension.  At Developer’s  sole cost, the City will periodically inspect the SSGI Extension for compliance with the  Approved Plans, and, upon receipt of a Completion Notice (defined below), shall  conduct the final inspection.  The Parties agree that the City will provide the inspections  contemplated by this Section for a fee of FIFTEEN THOUSAND U.S. DOLLARS  ($15,000.00) (the “Inspection Fee”), and Developer hereby agrees to pay such fee to the  City prior to, and as a condition of, acceptance by the City of the completed SSGI  Extension.  The City will retain copies of all inspection reports for the City’s applicable  records retention period, and provide them to the Developer upon request.  8. Stop Work Orders.  The City shall have the right to inspect, from time to time, the  construction of the SSGI Extension.  If the City determines that the SSGI Extension is not  being constructed in compliance with the Applicable Laws and Developer fails to correct  or cause correction of the non‐compliance to occur within a reasonable period of time  after Notice thereof, the City shall have the right to enforce compliance and to stop new  work on the SSGI Extension by the issuance of a “stop‐work order” until the  non‐compliance is corrected to the reasonable satisfaction of the City.   Nothing in this  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 11  Section shall create any liability of the City to determine whether the SSGI Extension is  constructed in accordance with the Applicable Laws.  Insurance and Bonds    9. Insurance and Bonds. Prior to and as a condition of Owner’s, Developer’s or the  District’s issuance of notice to proceed with construction of the SSGI Extension,  Developer shall post, or cause the contractor to post, performance and payment bonds in  the full amounts of the cumulative contract prices of the SSGI Extension and insurance in  accordance with the requirements set forth in Exhibit “E” to this Agreement.  Post Construction Matters    10. Completion Notice.  Within thirty (30) days after Completion of Construction,  Developer shall deliver to the City written Notice that Completion of Construction of the  SSGI Extension has occurred and the improvements are ready for final inspection (the  “Completion Notice”)  The Completion Notice must include the following items:  a. One (1) complete set of construction plans certified as “as‐built” by the  Engineer in the format requested by the City; and  b. Copies of all documents evidencing transfer or assignment of all  contractor, subcontractor, consultant, and manufacturer and all other  contractual rights, warranties, guarantees, assurances of performance, and  maintenance bonds related to the SSGI Extension; and  c. Certifications that there are no liens or other encumbrances on the SSGI  Extension, including copies of lien releases in form and substance  acceptable to the City; and  d. A final survey and metes and bounds description of the SSGI Extension  Easement Area and an executed easement for same in a form acceptable to  the City and for recordation in the Official Records of Williamson County;  and  e. Payment of the Inspection Fee.     11. City Acceptance.  Within fourteen (14) business days after the City’s receipt of a  Completion Notice, the City shall respond by either submitting a list of items still  requiring completion or modification, or by accepting the SSGI Extension and issuing a  Letter of Acceptance.  Final acceptance shall not be valid unless and until the  Maintenance Bond required by Section 12 of this Agreement is in place.  The City’s  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 12  failure or delay of issuance of a Letter of Acceptance shall not constitute acceptance of  the SSGI Extension.    12. Maintenance Period and Maintenance Bond.  Developer hereby warrants that  the SSGI Extension shall be free from defects for a period of two (2) years from the date  the City accepts it for ownership, operation and maintenance (the “Maintenance  Period”).  Developer or the District shall correct and repair, or cause to be corrected and  repaired, any defects in materials or workmanship of the SSGI Extension that occurs  before and during the Maintenance Period due to any cause, other than those arising  solely out of the gross negligence or willful misconduct of the City. To secure the  warranty obligations during the Maintenance Period and to satisfy their warranty  obligations hereunder, Developer or District shall furnish a Maintenance Bond required  by Exhibit “E“ of this Agreement for the Maintenance Period.  The SSGI Extension must  meet the requirements of the Applicable Laws and the final, City‐approved plans at the  end of the Maintenance Period in order for the City to release the Maintenance Bond.   Upon release of the Maintenance Bond, Developer and District shall have no further  obligations or responsibility for the SSGI Extension.    13. Ownership, Operation and Maintenance of Major Wastewater Facilities.  Upon  completion of the SSGI Extension, Developer or District shall convey the SSGI Extension  to the City for ownership, operation and maintenance, subject to: (i) Developer’s right to  reimbursement from the District for the cost of such facility in accordance with the rules  of the Texas Commission on Environmental Quality; and (ii) the reservation of a capacity  interest for up to one thousand two hundred (1,200) units in the SSGI Extension for  service to the Land.  Developer and District acknowledge that, upon acceptance of the  SSGI Extension by the City, the City will utilize the SSGI Extension as part of the City’s  overall wastewater utility system; however, such service will not be provided in a  manner that impairs the City’s ability to provide wastewater service to the Land in  accordance with the terms of this Agreement and the Wholesale Wastewater Agreement.    14. Reimbursement from Other Landowners.  City acknowledges that Developer  intends to enter into contracts (i) with other landowners who have previously agreed by  contract with the City to construct of the SSGI Extension from the Current Terminus to  the Interim Terminus, and (ii) with other landowners who own land between the Interim  Terminus and the Final Terminus, and in each case pursuant to which such other  landowners shall reimburse a pro rata share of the costs incurred by Developer.  Such  contracts are not subject to review or approval by City, nor shall City be required to  ensure or enforce payment of any sums due thereunder.  City acknowledges that  nothing in this Agreement shall alter or impair Developer’s right to receive  reimbursement from such landowners in accordance with said agreements, and such  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 13  reimbursement right shall survive conveyance of the SSGI Extension to City.  City  further agrees that it shall not (i) seek to recover from the City of Leander in the  Wholesale Wastewater Agreement or otherwise, any portion of the SSGI Extension costs,  or (ii) from third persons the costs of the SSGI Extension funded by Developer under this  Agreement unless City pays to Developer the portion of the amounts so collected from  said third persons that reflect the cost of the SSGI Extension.   Fees    15. Plan Review Fees.  Review of the Approved Plans shall be subject to payment to  the City of the reasonable fees and charges applicable to the City’s review of plans and  specifications for infrastructure to be dedicated or conveyed to the City according to the  fee schedule adopted by the City Council and in effect on the date of submittal of each  set of plans and specifications.  16. Wastewater Impact Fees.    a. General.  The Parties agree that the City’s wastewater Impact Fees shall be  assessed and collected in accordance with the Wholesale Wastewater  Agreement.  b. Wastewater Impact Fee Credit.  The Parties acknowledge that a portion of  the SSGI Extension (known as “Phase C‐2”) is included within the City’s  Wastewater Impact Fee.  With respect to any costs of the SSGI Extension  included in the City’s Wastewater Impact Fee, the following provisions  shall apply:  If Developer or the District designs and constructs the SSGI  Extension pursuant to the terms of this Agreement and at no cost to the  City, then as consideration for same, commencing after final acceptance by  the City of the SSGI Extension, the City shall grant a credit against the  City’s wastewater Impact Fee on a per connection basis for all connections  on the Land for which a final plat is recorded after the final acceptance by  the City of the SSGI Extension and which is equal to the portion of the  City’s Wastewater impact fee associated with the portion of the SSGI  Extension that is included in the City’s wastewater impact fee (but not  including costs associated with replacement or refurbishment), which  credit may only be applied to the City’s Wastewater Impact Fees payable  for development within the Land.  Notwithstanding anything to the  contrary in this Agreement, the total amount of the wastewater Impact Fee  credit granted for the SSGI Extension (w) shall be reduced as necessary to  ensure that City does not grant wastewater Impact Fee credit to multiple  parties for the same costs; (x) shall not exceed the actual design and  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 14  construction cost (including permitting, land acquisition, engineering,  surveying, and other costs) of the SSGI Extension; (y) shall not be given to  more than one thousand two hundred (1,200) single family residential  wastewater service connections on the Land; and (z) shall only be given for  connections on the Land.    Wastewater Service    17. Wastewater Service to the Land.  Upon completion of the On‐Site Wastewater  Facilities and the SSGI Extension, wholesale wastewater service to Leander for the Land  shall be provided through On‐Site Wastewater Facilities connecting to the SSGI  Extension in an amount up to but not exceeding one thousand two hundred (1,200)  single family residential connections in accordance with the Wholesale Wastewater  Agreement.     18. Wastewater Service to Third Parties.  Developer and District acknowledge that  the Wholesale Wastewater Agreement shall prohibit Leander from providing retail  wastewater service under said agreement to any land other than the Land.  The City  further agrees that, upon the payment of the City’s Wastewater Impact Fees as required  by the Wholesale Wastewater Agreement, the City will guarantee service from the City’s  wastewater utility system for the wastewater connections within the Land for which  impact fees have been paid in accordance with the Wholesale Wastewater Agreement.  Breach or Default    19. Notification of Breach. If any Party commits a breach of this Agreement, the  non‐breaching Party shall give Notice to the breaching Party that describes the breach in  reasonable detail.  20. Cure of Breach. The breaching Party shall be allowed thirty (30) days after the  date of the Notice to cure any breach that can be cured by the payment of money  (“Monetary Breach”). For any breach that is not a Monetary Breach, the breaching Party  must commence the cure of any non‐Monetary Breach specified in the Notice within  thirty (30) days after the date of the Notice, and thereafter diligently pursue such cure to  completion but in no event longer than ninety (90) days after the date of the Notice.  21. Wholesale Service Contingent Upon Completion of Construction.  Developer  acknowledges that the City shall have no obligation to provide wholesale wastewater  service to the Land unless and until the SSGI Extension is completed in accordance with  the terms of this Agreement.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 15  22. Remedies for Breach. If the breaching Party does not cure the breach within the  stated period of time, the non‐breaching Party may, in its sole discretion, and without  prejudice to any other right under this Agreement, seek any relief available at law or in  equity. Provided, however, damages, if any, to which any non‐breaching Party may be  entitled shall be limited to actual damages and shall not include special or consequential  damages.  NOTWITHSTANDING ANY PROVISION HEREIN TO THE CONTRARY,  CITY ACKNOWLEDGES THAT CITY’S SOLE AND EXCLUSIVE REMEDIES FOR  FAILURE BY DEVELOPER TO COMPLETE CONSTRUCTION OF THE SSGI  EXTENSION BY THE COMPLETION DATE SHALL BE AS STATED IN SECTION 23  BELOW AND TERMINATION OF THIS AGREEMENT AFTER NOTICE AND  REASONABLE OPPORTUNITY TO CURE, AND CITY SHALL BE RELIEVED OF ANY  AND ALL OBLIGATION TO PROVIDE WHOLESALE WASTEWATER SERVICE TO  LEANDER FOR THE LAND.  23. Limitations on Actions During Cure Period.  In addition to the provisions of  Section 22 of this Agreement, no bonds shall be issued by District relating to the SSGI  Extension and no wastewater connections to Customers shall be made during any cure  period described in Section 20 of this Agreement without the City’s prior written consent  and the City shall have the right to enjoin same without the necessity of showing  irreparable harm or inadequate remedies at law.  Notwithstanding any provision in this  Agreement to the contrary, Developer may terminate this Agreement at any time by  providing not less than thirty (30) days prior written notice to City.  In the event of such  termination, all parties shall be without further duty or obligation to each other;  provided, however, the following obligations shall survive termination:  (i) Developer  shall be responsible for payment of all costs and expenses that accrue under this  Agreement prior to termination; (ii) Developer shall provide a copy of the plans and  specifications for the SSGI Extension to City within  seven (7) days after termination; and  (iii) City shall refund to Developer any monies previously tendered by Developer to City  for acquisition of the Final Terminus Easements that have not been spent as of the date of  termination.  24. Cooperation. In the event of any third party lawsuit or other claim relating to the  validity of this Agreement or any actions taken hereunder, the City, the Developer, and  the District agree to cooperate in the defense of such suit or claim, and to use their  respective best efforts to resolve the suit or claim without diminution in their respective  rights and obligations under this Agreement.  25. Information Transfer.  If Developer fails to comply with the terms and conditions  of this Agreement, Developer shall, within seven (7) days after the date of receipt of  Notice from the City, provide the City the following:  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 16  (i) in electronic and hard copy form, all current design documents  including but not limited to surveying files, engineering files,  design calculations, temporary and permanent easements, field  notes, construction easements, and access easements; and  (ii) copies of any and all recorded or unrecorded easements in existence  as of the date of the Notice in a form acceptable to the City; and  (iii) the executed Required Easements accompanied by then existing  metes and bounds descriptions and surveys.    General Provisions    26. Remedies.  Except as otherwise provided herein, the remedies available under  this Agreement and the laws of Texas are cumulative in nature.  27. Third Party Rights.  No person or entity who or which is not a party to this  Agreement shall have any right of action under this Agreement.  28. No Waiver.  No waiver of any provision of this Agreement will be deemed or  constitute a waiver of any other provision, nor will it be deemed or constitute a  continuing waiver unless expressly provided for by a written amendment to this  Agreement; nor will the waiver of any default under this Agreement be deemed a  waiver of any subsequent defaults of the same type. The failure at any time to enforce  this Agreement or covenant by a Party or their respective heirs, successors or assigns,  whether any violations thereof are known or not, shall not constitute a waiver or  estoppels of the right to do so.  29. Assignability.    a. The terms of this Agreement will run with the Land, and will be binding  upon the Developer and its permitted assigns, and shall survive judicial or  non‐judicial foreclosure, for so long as it remains in effect.  b. Neither the District nor the City may assign this Agreement without the  written consent of the other Parties.  c. Developer has the right, from time to time, to assign this Agreement,  including any obligation, right, title or interest of Developer under this  Agreement, to the District after the creation of the District has been  confirmed at an election for that purpose.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 17  d. Developer has the right, from time to time, to assign this Agreement to a  non‐lender person or entity (“Assignee”) provided the following  conditions are met:  (1) Assignee is a successor owner of all or any part of  the Land; (2) Assignee expressly assumes in the assignment all obligations  and expressly agrees in the assignment to observe, perform, and be bound  by this Agreement; and (3) a copy of the executed assignment is provided  to the City within fifteen (15) days after execution (collectively, the  “Assignment Conditions”) with documentation evidencing compliance  with the Assignment Conditions.  From and after the date a copy of the  executed assignment is provided to the City, and if the Assignment  Conditions are each satisfied, the City agrees to look solely to Assignee for  the performance of all obligations assigned to Assignee and agrees that  Developer shall be released from performing the assigned obligations and  from any liability that results from the Assignee’s failure to perform the  assigned obligations.  No assignment by Developer shall release Developer  from any liability that resulted from an act or omission by Developer that  occurred prior to the effective date of the assignment unless Assignee  accepts such liability as part of the assignment.  e. Developer has the right, from time to time, to assign this Agreement, in  whole but not in part, to a holder of any obligation or debt of Developer or  any successor owner of all or any part of the Land or this Agreement  secured by any mortgage, deed of trust, collateral assignment, security  interest, lien or other encumbrance, any amendment or modification of the  terms thereof, including without limitation any extension, renewal or  refinancing thereof (a “Lender”) without the City’s prior written consent.   Developer shall provide notice to the City of any Lender assignment  within fifteen (15) days after execution of the assignment with a copy of the  documents and instruments created and governing Lender’s interests and  rights.  No assignment by Developer to a Lender shall release Developer  from any of Developer’s obligations under this Agreement.  f. Developer shall maintain written records of all assignments made by  Developer (including, for each Assignee and Lender, the documentation  demonstrating compliance with the Assignment Conditions, and including  a copy of each executed assignment) and, upon written request from any  party, Assignee, or Lender shall provide a copy of such records to the  requesting person or entity.    Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 18  g. This Agreement is not intended to be binding upon, or create any  encumbrance to title as to, any ultimate consumer who purchases a fully  developed and improved lot within the Land, nor is it intended to confer  upon such person the status of a third party beneficiary.  30. Notice.  Any notice given under this Agreement (“Notice”) must be in writing  and may be given: (i) by depositing it in the United States mail, certified, with return  receipt requested, addressed to the party to be notified and with all charges prepaid; or  (ii) by depositing it with Federal Express or another delivery service guaranteeing “next  day delivery”, addressed to the party to be notified and with all charges prepaid; or (iii)  by personally delivering it to the party, or any agent of the party listed in this  Agreement.  Notice will be effective when received.  For purposes of notice, the  addresses of the parties, until changed as provided below, will be as follows:  City:  City Manager  City of Georgetown  P.O. Box 409  Georgetown, Texas 78627    With Required Copy to: City of Georgetown  P. O. Box 409  Georgetown, Texas  78627  Attn: City Attorney    Developer: Sentinel Land Company, LLC  9111 Jollyville Road, Suite 212  Austin, Texas  78759  Attn:  David Nairne    With Required Copy to: Sentinel Land Company LLC  4910 Campus Drive  Newport Beach, CA  92660  Attn:  Tom Rielly    District: Anthony S. Corbett  Freeman & Corbett  8500 Bluffstone Cove, Suite B‐104  Austin, Texas 78759    Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 19  31. Change of Address for Notice.  The parties may, from time to time, change their  respective addresses listed above to any other location in the United States for the  purpose of notice under this Agreement. A partyʹs change of address shall be effective  when notice of the change is provided to the other party in accordance with the  provisions of Section 30, above.  32. Severability.  If any part, term or provision of this Agreement is held by the  courts to be illegal, invalid or otherwise unenforceable, such illegality, invalidity or  unenforceability shall not affect the validity of any other party, term or provision, and  the rights of the parties will be construed as if the part, term or provision was never part  of this Agreement.  33. Jurisdiction and Venue.  Personal jurisdiction and venue for any civil action  commenced by any party to this Agreement will be deemed to be proper only if such  action is commenced in District Court of Williamson County, Texas, or the United States  District Court for the Western District of Texas, Austin Division.  34. Captions Immaterial.  The numbering, order and captions or headings of the  sections of this Agreement are for convenience only and shall not be considered in  construing this Agreement.  35. Entire Agreement.  This Agreement and the Exhibits contain the entire agreement  between the parties and correctly sets forth the rights, duties, and obligations of each to  the other as of the Effective Date.  Any oral representations or modifications concerning  this Agreement shall be of no force or effect excepting a subsequent written modification  executed by both parties.  36. Binding Agreement.  The execution and delivery of this Agreement and the  performance of the transactions contemplated thereby have been duly authorized by all  necessary corporate and governmental action of the City and the Developer.  This  Agreement, when duly executed and delivered by each party, constitutes a legal, valid  and binding obligation of each party enforceable in accordance with the terms as of the  Effective Date hereof.  37. Recording.  The parties agree that this Agreement may be recorded in the Real  Property Records of Williamson County, Texas, at the expense of the Developer.  38. Further Assurances.  The City and the Developer agree to take such actions and  execute and deliver such documents as may be reasonably necessary or appropriate to  effect the provisions of this Agreement.  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 20  39. Effective Date.  This Agreement will be effective as of the Effective Date, and  shall be effective as to the District when signed by the District as required by Section 40  of this Agreement.  40. Term.  This Agreement shall automatically terminate upon (i) final completion of  the SSGI Extension and (ii) acceptance thereof and receipt of the maintenance bonds by  the City.  41. Execution of this Agreement.  Provided the District is created and conducts its  organizational meeting prior to completion of construction of the SSGI Extension by  Developer, the District’s Board of Directors must approve this Agreement at its  organizational meeting, cause this Agreement to be signed by a duly authorized  representative of the District’s Board, and return a fully executed, certified copy of this  Agreement to the City Attorney within thirty (30) days after the date of the District’s  Board meeting.  EXHIBIT LIST:  Exhibit A Land – metes and bounds  Exhibit B Land – sketch  Exhibit C SSGI (showing Current Terminus, Interim Terminus; Final Terminus,  diameters, etc.)  Exhibit D Final Terminus Easement Forms  Exhibit E Insurance and Bond Requirements      [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]  Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 21  EXECUTED by the parties on the dates indicated below:      CITY:  CITY OF GEORGETOWN, TEXAS            By: ____________________________________         Dale Ross, Mayor          Date: ____________________________________    Attest:          Jessica Brettle, City Secretary      Approved as to Form:             Bridget Chapman, City Attorney        THE STATE OF TEXAS  §       §  COUNTY OF WILLIAMSON §       This instrument was acknowledged before me on the _________ day of  _____________________, 2015, by Dale Ross, Mayor of the City of Georgetown, a Texas  home rule municipal corporation, on behalf of said City.                  ______         Notary Public in and for          the State of Texas   Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 22  Developer:    SENTINEL LAND COMPANY, LLC  By:        Name:        Title:            THE STATE OF TEXAS  §       §  COUNTY OF ________________ §       This instrument was acknowledged before me on the ________ day of  ____________, 2015, by ___________________________________, _____________________  of Sentinel Land Company, LLC, a Texas limited liability company, on behalf of said  limited liability company.                            Notary Public in and for          the State of Texas       Final 4/4/2015  SSGI Extension Agreement ‐ Lively Tract  Page 23  DISTRICT:  WEST WILLIAMSON COUNTY MUNICIPAL  UTILITY DISTRICT NO. 2      By: ____________________________________        Name: ____________________________________        Title: ____________________________________        Date: ____________________________________      ATTEST:    ________________________________  Name: __________________________  Title:  ___________________________          STATE OF TEXAS    §       §  COUNTY OF WILLIAMSON §     This instrument was acknowledged before me the ____ day of ____________________,  201_, by ________________________, President of West Williamson County Municipal Utility  District No. 2, a special district formed and operating under Chapters 49 and 54 of the Texas  Water Code.             ________________________________         Notary Public Signature  Printed Name:      My Commission Expires:     Final 4/4/2015  24 EXHIBIT A    LAND SKETCH     Final 4/4/2015  25 EXHIBIT B    LAND   (PROPERTY DESCRIPTION)     Final 4/4/2015  26 EXHIBIT C    SSGI EXTENSION     Final 4/4/2015  27 EXHIBIT D    FORM OF FINAL TERMINUS EASEMENTS     Final 4/4/2015  28 EXHIBIT E  FORM SSGI EXTENSION FISCAL SECURITY     Final 4/4/2015  29    Final 4/4/2015  30   EXHIBIT A Page 1 of 13 EXHIBIT A Page 2 of 13 EXHIBIT A Page 3 of 13 EXHIBIT A Page 4 of 13 EXHIBIT A Page 5 of 13 EXHIBIT A Page 6 of 13 EXHIBIT A Page 7 of 13 EXHIBIT A Page 8 of 13 EXHIBIT A Page 9 of 13 EXHIBIT A Page 10 of 13 EXHIBIT A Page 11 of 13 EXHIBIT A Page 12 of 13 EXHIBIT A Page 13 of 13 EXHIBIT B to Offsite Wastewater Utiility and Construction Agreement for the 'Lively Tract' a/k/a Wes Williamsonc County MUD No. 2 - the "Land" #*#*#*#*#* #* #* #* 15 in, approx. 1950 ft 18 in, approx. 3200 ft 21 in, approx. 4950 ft 24 in, approx. 3800 ft Final Terminus(manhole) Current Terminus(manhole) W SH 29 D R V W LEANDER R D V P R A N C H D R I N D I G O L N LAKE SID E D R C H A P A R R A L R D E S T A N C I A W A Y O L D C R E E K S I D E R D C E D A R H O L L O W R D PA R K P L A C E D R R I D G E V I E W D R CHADW I C K D R G A B R I E L F O R E S T C R O S S C R E E K R D O A K M E A D O W D R WATERFO R D L N MARCO S D R MONTEL L D RMARSHALL C T O A K P L A Z A D R PALOMA PT B A R T L E Y D R ESCAL E R A P K W Y SSGI Extension: Sizes and Alignment Existing SSGI Existing SSGI Parcels (2012) Proposed Development SSGI Extension Diameter (in) 15 18 21 24 ­ 2,000 Feet Donald H. LivelyFamily Partnership, Ltd.a/k/a WWCMUD No. 2 Water Oak Cresent Bluff Chapman Note: SSGI Extension and Manhole locations approximate EXHIBIT C to "Offsite Wastewater Utility Construction Agreement for the 'Lively Tract' a/k/a West Williamson County MUD No. 2 "- South San Gabriel Interceptor ("SSGI") EXHIBIT C Page 1 of 1 Wastewater Easement Page 1 of 3 WASTEWATER EASEMENT STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF WILLIAMSON § This Agreement (this “Agreement”) is made on the _____ day of ____________, 20__, at Georgetown, Texas, between _________________, a __________________________, whose address is ___________________________________ (hereinafter referred to as "Grantor”), and the City of Georgetown, a Texas home-rule municipal corporation, whose address is P.O. Box 409 Georgetown, Texas 78627, ATTN: Georgetown City Secretary (herein referred to as “Grantee”). 1. For the good and valuable consideration described in Paragraph 2 below, Grantor hereby GRANTS, SELLS and CONVEYS to Grantee, its successors and assigns, an exclusive one hundred (100)-foot wide easement and right-of-way (the “Easement”) for the placement, construction, operation, repair, maintenance, replacement, upgrade, rebuilding, relocation and/or removal of utility lines and related facilities for sanitary sewer service (collectively, the “Facilities”) on, over, under, and across the following described property of the Grantor, to wit: Being all that certain tract, piece or parcel of land lying and being situated in the County of Williamson, State of Texas, being more particularly described by metes and bounds in Exhibit A and by diagram in Exhibit B attached hereto and made a part hereof for all purposes (herein sometimes referred to as the “Easement Area” or the “Property”). 2. The Easement and the rights and privileges herein conveyed, are granted for and in consideration of the sum of One and No/100 Dollars ($1.00) and other good and valuable consideration to Grantor in hand paid by Grantee, the receipt and sufficiency of which is hereby acknowledged and confessed. 3. The Easement, with its rights and privileges, shall be used only for the purpose of placing, constructing, operating, repairing, maintaining, rebuilding, replacing, upgrading, relocating, and/or removing the Facilities. 4. The duration of the Easement is perpetual. 5. Grantor and Grantor’s heirs, personal representatives, successors, and assigns are and shall be bound to WARRANT and FOREVER DEFEND the Easement and the rights conveyed in this Agreement to Grantee and Grantee’s successors and assigns, against every person lawfully claiming or to claim all or any part thereof. 6. The Easement, and the rights and privileges granted by this Agreement, are EXCLUSIVE to Grantee, and Grantee’s successors and assigns, and Grantor covenants that Grantor shall not convey any other easement, license, or conflicting right to use in any manner, the area (or any portion thereof) covered by this grant. 7. This Agreement contains the entire agreement between the parties relating to its subject matter. Any oral representations or modifications concerning this Agreement shall be of no force and effect. Any subsequent amendment or modification must be in writing and agreed to by all parties. 8. The terms of this Agreement shall be binding upon Grantor, and Grantor’s heirs, personal representatives, successors, and assigns; shall bind and inure to the benefit of the Grantee and any successors or assigns of Grantee; and shall be deemed to be a covenant running with the land. IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on this ___ day of _____________, 20__. Wastewater Easement Page 2 of 3 GRANTOR: Printed Name: APPROVED AS TO FORM: ______________________________ Bridget Chapman, City Attorney STATE OF TEXAS § § COUNTY OF WILLIAMSON § This instrument was acknowledged before me on this the ___ day of _________________, 20__, by ____________________________________________________. Notary Public, State of Texas AFTER RECORDING, RETURN TO GRANTEE: Georgetown City Secretary P.O. Box 409 Georgetown, Texas 78627 Wastewater Easement Page 3 of 3 Consent and Subordination by Lienholder ___________________________________, of _____________________________ [address] (“Lienholder”), as the holder of [a] lien[s] on the Property subject to the Easement, consents to the above grant of an Easement, including the terms and conditions of the grant, and Lienholder subordinates its lien[s] to the rights and interests of Grantee, so that a foreclosure of the lien[s] will not extinguish the rights and interests of Grantee. __________________________________________ [Name of Lienholder] STATE OF ____________ § § COUNTY OF _______________ § This instrument was acknowledged before me on this the ___ day of _________________, 20__, by _______________________, ____________ of ________________________, a _________________________, on behalf of said ____________. Notary Public, State of ___________ Exhibit E Page 1 of 6 EXHIBIT E I. INSURANCE REQUIREMENTS FOR SSGI EXTENSION 1. CONTRACTOR1 shall purchase and maintain insurance in the types and amounts indicated below for the duration of the Agreement (unless a longer duration is specified), which shall include items owned by or to be transferred to the City of Georgetown, Texas (“OWNER”) in the care, custody and control of CONTRACTOR prior to and during the term of the Contract2 and all warranty periods. Failure to purchase and maintain the required insurance shall be grounds for Termination of the Agreement 3or Suspension of the Work by OWNER. Except for the Worker’s Compensation policy, the other insurance policies required by the Agreement to be obtained by CONTRACTOR must state that OWNER, its officials, directors, employees, representatives, and volunteers are added as additional insureds with regard to operations and activities by or on behalf of the named insureds performed under contract with OWNER. The additional insured status must cover completed operations as well, and the policy covering completed work must remain in effect until the expiration of the statue of repose. 2. CONTRACTOR must complete and forward the required Certificates of Insurance to OWNER before the Agreement is executed as verification of coverage required below. CONTRACTOR shall not commence Work until the required insurance is obtained and until such insurance has been reviewed by OWNER. Approval of insurance by OWNER shall not relieve or decrease the liability of CONTRACTOR hereunder and shall not be construed to be a limitation of liability on the part of CONTRACTOR. CONTRACTOR must also complete and forward the required Certificates of Insurance to OWNER whenever a previously identified policy period has expired as verification of continuing coverage. 3. Contractor’s insurance coverage is to be written by companies licensed to do business in the State of Texas at the time the policies are issued and shall be written by companies with A.M. Best ratings of B+VII or better, except for hazardous material insurance which shall be written by companies with A.M. Best ratings of A- or better. 4. All endorsements naming the OWNER as additional insured, waivers, and notices of cancellation endorsements as well as the Certificate of Insurance shall indicate: City of Georgetown, 113 E. 8th Street, Georgetown, Texas 78626, ATTN: Contract Manager. 5. The “other” insurance clause shall not apply to the OWNER where the OWNER is an additional insured shown on any policy. It is agreed that the CONTRACTOR’s insurance shall be considered primary with respect to any insurance or self-insurance carried by OWNER. The CONTRACTOR’S insurance shall apply separately to each insured against whom a claim is made and/or lawsuits brought, except with respect to the limits of insurer’s liability. 6. If insurance policies are not written for amounts specified below, CONTRACTOR shall carry Umbrella or Excess Liability Insurance for any differences in amounts specified. If Excess Liability Insurance is provided, it shall follow the form of the primary coverage. 1 CONTRACTOR means the Contractor retained by Developer or District to construct the South San Gabriel Interceptor (“SSGI”) Extension. 2 CONTRACT means the contract between or among Developer and/or District as parties of the first part, and the CONTRACTOR as the party of the second part. 3 Agreement means the Offsite Wastewater Utility Construction for the ‘Lively Tract’ a/k/a West Williamson County Municipal Utility District No. 2” among City, Developer, and District. Exhibit E Page 2 of 6 7. OWNER shall be entitled, upon request and without expense, to receive certified copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modification of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law or regulations binding upon either of the parties hereto or the underwriter on any such policies. 8. OWNER reserves the right to review the insurance requirements set forth during the effective period of the Agreement and to make reasonable adjustments to insurance coverage, limits, and exclusions when deemed necessary and prudent by OWNER based upon changes in statutory law, court decisions, the claims history of the industry or financial condition of the insurance company as well as CONTRACTOR. 9. CONTRACTOR shall not cause any insurance to be canceled nor permit any insurance to lapse during the term of the Agreement or as required in the Agreement. 10. CONTRACTOR shall be responsible for premiums, deductibles and self-insured retentions, if any, stated in policies. All deductibles or self-insured retentions shall be disclosed on the Certificate of Insurance. 11. The policies must contain the following language: “This policy shall not be cancelled, materially changed, or not renewed until after thirty (30) days prior written notice has been given to OWNER.” In addition, CONTRACTOR shall provide OWNER thirty (30) days written notice of erosion of the aggregate limits below occurrence limits for all applicable coverages indicted within the Agreement. 12. If OWNER-owned property is being transported or stored off-Site by CONTRACTOR, then the appropriate property policy will be endorsed for transit and storage in an amount sufficient to protect OWNER’s property. 13. The insurance coverages required under this contract are required minimums and are not intended to limit the responsibility or liability of CONTRACTOR. 14. Without limiting any of the other obligations or liabilities of the CONTRACTOR, the CONTRACTOR shall require each Subcontractor performing work under the Agreement, at the Subcontractor’s own expense, to maintain during the term of the Agreement, the same stipulated minimum insurance including the required provisions and additional policy conditions as shown above. As an alternative, the CONTRACTOR may include its Subcontractors as additional insureds on its own coverage as prescribed under these requirements. The CONTRACTOR’s certificate of insurance shall note in such event that the Subcontractors are included as additional insureds and that CONTRACTOR agrees to provide Workers’ Compensation for the Subcontractors and their employees. The CONTRACTOR shall obtain and monitor the certificates of insurance from each Subcontractor in order to assure compliance with the insurance requirements. The CONTRACTOR must retain the certificates of insurance for the duration of the Agreement plus five (5) years and shall have the responsibility of enforcing these insurance requirements among its subcontractors. The OWNER shall be entitled, upon request and without expense, to receive copies of these certificates. B. Business Automobile Liability Insurance. Provide coverage for all owned, non-owned and hired vehicles in an amount not less than $1,000,000 combined single limit per accident for bodily injury and property damage. The policy shall contain the following endorsements in favor of OWNER:  Waiver of Subrogation endorsement TE 2046A; Exhibit E Page 3 of 6  30 day Notice of Cancellation endorsement TE 0202A; and  Additional Insured endorsement TE 9901 B.  Provide coverage in the following types and amounts:  A minimum combined bodily injury and property damage limit of $1,000,000 per occurrence. No aggregate shall be permitted for this type of coverage. Such insurance shall include coverage for loading and unloading hazards. C. Workers’ Compensation and Employers’ Liability Insurance. Coverage shall be consistent with statutory benefits outlined in the Texas Workers’ Compensation Act (Section 401). CONTRACTOR shall assure compliance with this Statute by submitting two (2) copies of a standard certificate of coverage (e.g. ACCORD form) to Owner’s Representative for every person providing services on the Project as acceptable proof of coverage. The required Certificate of Insurance must be presented as evidence of coverage for CONTRACTOR. Workers’ Compensation Insurance coverage written by the Texas Workers Compensation Fund is acceptable to OWNER. CONTRACTOR’s policy shall apply to the State of Texas and include these endorsements in favor of OWNER:  Waiver of Subrogation, form WC 420304; and  30 day Notice of Cancellation, form WC 420601. The minimum policy limits for Employers’ Liability Insurance coverage shall be the minimum amounts required to meet the statutory requirements of Texas Labor Code, Section 401.011(44), or the following, whichever is greater:  $1,000,000 bodily injury per accident, and  $1,000,000 bodily injury by disease policy limit; and  $1,000,000 bodily injury by disease each employee; and  $1,000,000 Employer’s Liability. CONTRACTOR has the option to self-insure in accordance with applicable law and OWNER approval. D. Commercial General Liability Insurance. The Policy shall contain the following provisions (to the extent available):  Blanket contractual liability coverage for liability and indemnifications assumed under the Agreement and all contracts relative to this Project.  Completed Operations/Products Liability until the end the statute of repose period.  Explosion, Collapse and Underground (X, C & U) coverage.  Independent Contractor’s coverage.  Aggregate limits of insurance per project, endorsement CG 2503. Exhibit E Page 4 of 6  OWNER listed as an additional insured, endorsement CG 2010.  30 day notice of cancellation in favor of OWNER, endorsement CG 0205.  Waiver of Transfer of Recovery Against Others in favor of OWNER, endorsement CG 2404 fully insuring CONTRACTOR’S or Subcontractor’s liability for bodily injury and property damages with a combined bodily injury (including death) and property damage minimum limit of: $1,000,000 per occurrence $2,000,000 general aggregate $2,000,000 products and completed operations aggregate Coverage shall be on an “occurrence” basis. E. Intentionally omitted. F. Umbrella Liability Insurance. The CONTRACTOR shall obtain, pay for, and maintain umbrella liability insurance during the contract term, insuring the CONTRACTOR (or subcontractor) for an amount not less than $1,000,000 that provides coverage at least as broad and applies in excess of and follows the form of the primary liability coverages required hereunder. The policy shall provide “drop down” coverage where underlying primary insurance coverages limits are insufficient or exhausted. G. Iintentionally omitted. II. PERFORMANCE AND PAYMENT BOND REQUIREMENTS A. General. 1. Bonds, when required by the Agreement or by Chapter 2253 of the Texas Government Code, shall be executed on forms furnished by or acceptable to OWNER. All bonds signed by an agent must be accompanied by a certified copy of such agent’s authority to act. 2. If the surety on any bond furnished by CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in the State of Texas or it ceases to meet the requirements of the preceding paragraph, CONTRACTOR shall within ten (10) days thereafter substitute another bond and surety, both of which must be acceptable to OWNER. 3. When Performance Bonds and/or Payment Bonds are required, each shall be issued in an amount of one hundred percent (100%) of the estimated construction cost of the South San Gabriel Wastewater Interceptor as security for the faithful performance and/or payment of all CONTRACTOR’s obligations under the Agreement. Performance Bonds and Payment Bonds shall be issued by a solvent surety company authorized to do business in the State of Texas, and shall meet any other requirements established by law or by OWNER pursuant to applicable law. Any surety duly authorized to do business in Texas may write Performance and Payment Bonds on a project without reinsurance to the limit of ten (10) percent of its capital and surplus. Such a surety must reinsure any obligations over ten (10) percent. B. Performance Bond. Exhibit E Page 5 of 6 1. If the estimated cost of constructing the South San Gabriel Interceptor (“SSGI”)Extension 4 exceeds $100,000, CONTRACTOR shall furnish OWNER with a Performance Bond in the form set out by OWNER. The Performance Bond shall be effective for the term of the Agreement and through all warranty period(s). 2. If the estimated cost of constructing the South San Gabriel Interceptor Extension exceeds $25,000 but is less than or equal to $100,000, CONTRACTOR shall furnish OWNER with a Performance Bond in the form set out by OWNER, unless the original estimated time for completion of construction is 60 Calendar Days or less, in which case CONTRACTOR can agree to the following terms and conditions for payment in lieu of providing a Performance Bond: no money will be paid to CONTRACTOR until completion and acceptance of the Work by OWNER; CONTRACTOR shall be entitled to receive 95% of the estimated cost of construction of the South San Gabriel Wastewater Interceptor following Final Completion, and the remaining 5% of the Contract Amount following the one year warranty period. 3. If the estimated cost of constructing the South San Gabriel Interceptor Extension is less than or equal to $25,000, CONTRACTOR will not be required to furnish a Performance Bond. 4. If a Performance Bond is required to be furnished, it shall extend for the two year warranty period, or longer if the warranty periods are longer. C. Payment Bond. 1. If the estimated cost of constructing the South San Gabriel Interceptor Extension exceeds $25,000, CONTRACTOR shall furnish OWNER with a Payment Bond in the form set out by OWNER. 2. If the estimated cost of constructing the South San Gabriel Wastewater Interceptor is less than or equal to $25,000, CONTRACTOR will not be required to furnish a Payment Bond; provided that no money will be paid to CONTRACTOR until completion and acceptance of the Work by OWNER. D. Power of Attorney. Each bond shall be accompanied by a valid Power of-Attorney (issued by the surety company and attached, signed and sealed with the corporate embossed seal, to the bond) authorizing the attorney in fact who signs the bond to commit the company to the terms of the bond, and stating any limit in the amount for which the attorney can issue a single bond. E. Bond Indemnification. The process of requiring and accepting bonds and making claims thereunder shall be conducted in compliance with Tex. Gov’t Code, Chapter 2253. IF FOR ANY REASON A STATUTORY PAYMENT OR PERFORMANCE BOND IS NOT HONORED BY THE SURETY, THE CONTRACTOR SHALL FULLY INDEMNIFY AND HOLD THE OWNER HARMLESS OF AND FROM ANY COSTS, LOSSES, OBLIGATIONS OR LIABILITIES IT INCURS AS A RESULT. F. Furnishing Bond Information. OWNER shall furnish certified copies of the payment bond and the related Agreement to any qualified person seeking copies who complies with Tex. Gov’t Code, §2253.026. G. Claims on Payment Bonds. Claims on payment bonds must be sent directly to the CONTRACTOR and his surety in accordance with Tex. Gov’t Code § 2253.041. All Payment Bond claimants are cautioned that no lien exists on the funds unpaid to the CONTRACTOR on such Contract, and that 4 As the term “SSGI Extension” defined in the Agreement. Exhibit E Page 6 of 6 reliance on notices sent to the OWNER may result in loss of their rights against the CONTRACTOR and/or his surety. The OWNER is not responsible in any manner to a claimant for collection of unpaid bills, and accepts no such responsibility because of any representation by any agent or employee. H. Payment Claims when Payment Bond not Required. The rights of Subcontractors regarding payment are governed by Tex. Prop. Code, §§53.231 – 53.239 when the estimated cost of constructing the South San Gabriel Interceptor Extension is less than $25,000.00. These provisions set out the requirements for filing a valid lien on funds unpaid to the CONTRACTOR as of the time of filing the claim, actions necessary to release the lien and satisfaction of such claim. I. Minimum Standards for Sureties. Sureties shall be listed on the US Department of the Treasury’s Listing Approved Sureties stating companies holding Certificates of Authority as acceptable sureties on Federal Bonds and acceptable reinsuring companies (Department Circular 570). City of Georgetown, Texas Utility System Advisory Board April 10, 2015 SUBJECT: Discussion and presentation of the draft 2015-2016 Capital Improvement Plan -- Wesley Wright, P.E., Systems Engineering Director ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Wesley Wright, P.E., Systems Engineering Director