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R-91-1656 - 9/23/1991RESOLUTION NO. 1656R WHEREAS, the Meadows at Chandler Creek Municipal Utility District (the "District") filed a rate complaint against the City requesting the Texas Water Commission to review water and wastewater rates charged by the City, and WHEREAS, bona fide disputes and controversies exist between the City and District regarding the rates and certain other matters, and WHEREAS, the City and District desire to compromise and settle all disputed issues in order to avoid the substantial time, effort and expense that would be required if these matters were resolved through administrative or judicial proceedings, and WHEREAS, the City Council wishes to authorize the execution of the settlement documents, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor is hereby authorized and directed to execute on behalf of the City a Water and Wastewater Rate Settlement Agreement and a First Supplement To Agreement Between The City of Round Rock And The Meadows At Chandler Creek Municipal Utility District, copies of said documents being attached hereto as exhibits "A" and "B" respectively. RESOLVED this 23rd day of September, 1991. MIKE ROBINSON, Mayor City of Round Rock, Texas ATTEST: J NE LAND, Ciiy'Secretary RS09231A FIRST SUPPLEMENT TO AGREEMENT BETWEEN THE CITY OF ROUND ROCK AND THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT ARTICLE I This is the first supplement (the "First Supplement") to that certain contract entitled "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"). Reference is made to the 1984 Agreement for all purposes. This First Supplement is between The Meadows at Chandler Creek Municipal Utility District (the "District") and the City of Round Rock (the "City") and is amendatory of and supplementary to the 1984 Agreement and does not repeal or supersede the 1984 Agreement or any part thereof, except as expressly provided herein. ARTICLE II 1. Paragraph 1 of the 1984 Agreement is amended to read as follows: "1. The City agrees to sell and to deliver water within the boundaries of the District for domestic and commercial uses, such water to be supplied from the City's water distribution system as extended by the District pursuant to the Construction Contract. "Water" as used in this section means potable water meeting the requirements of the Texas Department of Health for human consumption and other domestic uses. The City presently has an adequate water supply to supply service to the District. Subject to the City's right to reasonably limit the supply of water to the District residents on the same basis and to the same extent as the supply of water - 1 - to any other customers within the City, the City agrees that it will provide the District an adequate water supply to serve the District as it develops with a total of 2506 living unit equivalents of water connection rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this water service. The District shall promote compliance with the City's water conservation ordinances, as amended from time to time. The District agrees that the City will be the sole source of water to the District and that the District will not seek to develop its own wells, except in the event the City is no longer able to provide water service." 2. Paragraph 2 of the 1984 Agreement is amended to read as follows: "2. On behalf of the District, the City agrees to sell and deliver water service to the Users within the District. Said sales will be directly to the residents of the District, and no master meter will be installed for billing purposes. The rates charged by the City to the District for Users of the District for water actually delivered pursuant to this agreement shall be the same as the water rates which the City charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as such rates are established from time to time by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment, or other charge for water actually delivered that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment, or other charge for water actually delivered as a functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3. Paragraph 4 of the 1984 Agreement is amended to read as follows: 2 "4. The City agrees to receive, treat, collect and dispose of sewage generated within the boundaries of the District, such sewage to be collected into the City's sanitary sewer trunk line as extended by the District pursuant to the Utility Construction Contract. Subject to the City's right to reasonably limit the amount of sewage received from the District on the same basis and to the same extent as sewage received from any other customer within the City, the City agrees to receive, treat, collect and dispose of sewage generated within the District and in amounts sufficient to serve the District as it develops with a total of 2506 living unit equivalents of wastewater service rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this wastewater service. The District agrees that the City will be the sole source of sewage treatment service to the District and that the District will not seek to construct its own treatment facilities, except in the event the City is no longer able to provide sewage treatment service." 4. Paragraph 5 of the 1984 Agreement is amended to read as follows: "5. The City agrees to sell wastewater collection and treatment services to the Users within the boundaries of the District. The rates charged by the City to the District for such Users within the District for wastewater services pursuant to this agreement shall be the same as the wastewater rates which it charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as established from time to time, by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment or other charge for wastewater received by the City that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment or other charge for wastewater received by the City as the functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3 5. Paragraph 6 of the 1984 Agreement is amended to read as follows: "6.a. The City shall bear all responsibility to operate, manage, maintain and repair at its expense for the District all of the District Facilities (as defined below). b. For purposes of this Paragraph 6, the District Facilities shall include: (1) all water and wastewater facilities and related appurtenances located within public rights of way or dedicated easements within the District; (2) those certain water and wastewater facilities identified as Items Nos. 1-8, inclusive, of the Project as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock, Texas - The Meadows at Chandler Creek Municipal Utility District"; and (3) all water and wastewater facilities within the District which the District may construct, purchase, own or operate in the future and for which plans and specifications have been approved by the City. c. For purposes of this Paragraph 6, the responsibility of the City for the operation, management, maintenance and repair of the District Facilities includes the responsibility for all costs of operation, management and maintenance of the District Facilities including, but not limited to, repairs, upkeep and replacements, costs of utilities, supervision, engineering, accounting, legal work, auditing, insurance and any other supplies, services, administrative costs and equipment necessary for the operation, management and maintenance of the District Facilities. d. Ownership of the District Facilities described in Subparagraph 6(b) shall remain in the District, which shall have the right to inspect them at all times. The City owns or has reserved the oversize capacity in specified portions of the District Facilities as set forth in the June 26, 1986 "Utility Construction Contract Between the City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District". 4 6. Paragraph 7 shall be amended to read as follows: "7. The District agrees to set and maintain water and wastewater rates and other fees and charges and levy and collect taxes, as appropriate, sufficient to pay the following: a. For water and wastewater services delivered by the City pursuant to this Agreement, an amount equal to the amount charged by the City for comparable Users within the City, as established from time to time, by the Round Rock City Council, all as more fully provided in Paragraphs 2 and 5, above. b. All other expenses of the District which the District determines from time to time to be necessary for the operation, maintenance and administration of the District and the provision of District services. c. Debt service on any indebtedness of the District, an amount as deemed appropriate by the Board of Directors of the District. The District, or the City upon the request of the District and pursuant to such terms and conditions as may be mutually agreed to by the parties, agrees to make water and wastewater connections in the District." 7. Paragraph 8 shall be amended to read as follows: "8. The District agrees to supply the City with a copy of each action by the District setting the rates pursuant to Paragraph 7 within seven (7) days of such action. On behalf of the District, the City shall perform all services required to collect the rates referred to in Paragraph 7, above, directly from the Users, including the reading of meters, billing of Users, and collection of charges. The City may include a breakdown on the bill showing what portion of the bill is attributable to those items described in Subparagraphs 7(b) and (c), above. To the extent that additional items the District requests to be included on the bills pursuant to Subparagraphs 7(b) and (c), above, result in additional expense to the City, the District agrees to reimburse the City for any such additional actual costs associated with the computation, billing, collection and accounting for such items. Billings and payments will be rendered by the City to Users 5 in the District in substantial compliance with the procedures for comparable in -City customers established in the City of Round Rock ordinances, as now in effect or hereafter amended. The District and the City agree that the City shall act as the District's agent in the billing and collecting of such bills and shall take all necessary action pursuant to applicable law to enforce payment of such bills." 8. Paragraph 9 shall be amended to read as follows: "9. The City will retain for its own account as payment of water, wastewater, fire protection and garbage services all money collected from the Users of the District pursuant to Paragraphs 7(a), 11, and 12. All other monies collected by the City on behalf of the District shall be remitted to the District's account for use by the District and shall be hereinafter referred to as "Net Revenues." 9. Exhibit "A" is deleted. ARTICLE III Except as otherwise expressly provided herein, the provisions of the 1984 Agreement shall remain in full force and effect. EXECUTED in multiple copies, each of which shall constitute an original, this day of 1991. CITY OF ROUND ROCK By: ATTEST: City Clerk (SEAL) Name: Title: Date: ATTEST: Secretary (SEAL) THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT By: Name: Title: Date: 7 THE STATE OF TEXAS COUNTY OF WILLIAMSON WATER AND WASTEWATER RATE SETTLEMENT AGREEMENT This Water and Wastewater Rate Settlement Agreement (the "Settlement Agreement") is made between the City of Round Rock, Texas ("Round Rock") and The Meadows at Chandler Creek Municipal Utility District (the "District"). WHEREAS, the District is a political subdivision of the State of Texas, organized under the authority of Article 16, Section 59 of the Texas Constitution and Round Rock is a municipal corporation duly organized under the Constitution and laws of the State of Texas; and WHEREAS, the District receives water and wastewater service from Round Rock pursuant to the terms and conditions of the "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"); and WHEREAS, on or about July 17, 1990, the District filed a "Water and Wastewater Rate Complaint" (the "Complaint") at the Texas Water Commission (the "Commission") against Round Rock complaining of the water and wastewater rates charged by Round Rock; and WHEREAS, the Commission assigned the complaint Docket No. 8599-M, assumed jurisdiction of the Complaint on or about February 28, 1991, and consolidated the matter with Docket No. 8600-M, which docket concerns Round Rock's request that the Commission review its wholesale water rates to Brushy Creek Municipal Utility District; and WHEREAS, Round Rock claims that the District owes Round Rock approximately $25,208.62 for operation and maintenance expenses incurred by Round Rock during the years 1986-1991 for work performed by Round Rock on the District's water and wastewater system, a claim (the "Round Rock Claim") which the District denies; and WHEREAS, Round Rock claims that the District should pay an unspecified additional sum of money services provided to the District; and WHEREAS, Round Rock has challenged ("Additional Sum") for and requested a hearing (the "Challenge") on the District's application to the Texas Water Commission for authorization to levy and collect standby fees; and WHEREAS, the District owns those certain water and wastewater facilities identified as Items 1-8, inclusive, of the Project (as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock - Meadows at Chandler Creek Municipal Utility District"), including, by way of example and not in limitation, a 750,000 gallon elevated water storage tank, a wastewater lift station located adjacent to Chandler Creek at the eastern edge of the District, a 16 -inch off-site water line which connects to an existing 12 -inch water line at Sunrise Road and Country Aire Drive and extends to the aforementioned water storage tank, and a 20 -inch wastewater force main located between the aforementioned wastewater lift station and Round Rock's Brushy Creek wastewater treatment plant; and WHEREAS, Round Rock owns or has reserved oversize capacity in specified portions of the Project as set forth in the June 26, 1986 "Utility Construction Contract Between City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District"; and WHEREAS, the District claims that Round Rock should reimburse the District in an amount (the "Reimbursement Claim") equal to the amount of water and wastewater rates in excess of fair and reasonable rates charged the District by Round Rock for the time period beginning December 28, 1989, being the date on which Round Rock established new out -of -City rates, and ending on the date the Commission rules on the Complaint, a claim which Round Rock denies; and WHEREAS, the District claims that Round Rock owes the District the sum of approximately $8,544.93 for electric costs associated with the operation of the District water and wastewater facilities, attributable to services provided to Round Rock by the District through these facilities (the "District Claim"), a claim which Round Rock denies; and WHEREAS, Round Rock holds Certificates of Convenience and Necessity Nos. 11047 and 20421 which describe Round Rock's authorized water and wastewater service area; and 3 WHEREAS, the parties acknowledge and agree that the aforementioned certificated service area includes within its specified boundaries the area comprising the District; and WHEREAS, the District is not required to hold a Certificate of Convenience and Necessity to provide water and wastewater service within its boundaries; and WHEREAS, the parties agree that certificated and otherwise authorized service areas are valuable assets which should be maintained and protected; and WHEREAS, Round Rock and the District agree that it is in the best interests of both parties and the customers within the District for the customers within the District to be provided water and wastewater service in the most cost effective and efficient manner; and WHEREAS, for purposes of accomplishing this objective and settling outstanding issues which exist between the parties, Round Rock and the District agree that water and wastewater service shall continue to be provided to the customers within the District pursuant to the 1984 Agreement, as it may be amended from time to time so long as such 1984 Agreement continues in force and effect; and WHEREAS, bona fide disputes and controversies exist between Round Rock and the District and, by reason controversies, Round Rock and the District and settle various issues related to the of such disputes and desire to Complaint, compromise the Round Rock Claim, the District Claim, the Claim for the Additional Sum, 4 the Reimbursement Claim and the Challenge in order to avoid the substantial time, effort and expense that would be required if these matters were resolved through administrative or judicial proceedings; and WHEREAS, the City Council of Round Rock and the Board of Directors of the District have each authorized the undersigned to execute this Settlement Agreement; NOW, THEREFORE, for and in consideration of the mutual promises and agreements herein contained, Round Rock and the District agree as follows: 1. Beginning with the bills rendered in October 1991, Round Rock shall set and charge the District water and wastewater rates which are the same as the water and wastewater rates adopted by ordinance which Round Rock charges its retail residential and commercial customers inside the city limits of Round Rock. Round Rock shall not charge the District or the users within the District any additional fee, assessment or other charge for the provision of water and wastewater service which it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the users within the District any fee, assessment or other charge for the provision of water and wastewater service as a functional equivalent of ad valorem property taxes which customers inside the city limits may pay. 2. In further consideration for the settlement of these matters, Round Rock and the District agree to execute the "First Supplement to the Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" (the "First Supplement"), a copy of which is attached hereto as Exhibit "A", simultaneously with the execution of this Settlement Agreement. 3. Round Rock and the District agree to settle the District Claim, the Round Rock Claim, the claim for the Additional Sum and the Reimbursement Claim by the payment by the District of one lump sum payment to Round Rock in the amount of $33,000.00. Accordingly, the District agrees to pay Round Rock the sum of $33,000.00 within twenty (20) working days of the effective date of this Settlement Agreement, the payment of which Round Rock and the District agree will settle in full Round Rock's Claim, the District's Claim, the Reimbursement Claim and the Claim for the Additional Sum. 4. Round Rock shall immediately withdraw its challenge and request for hearing on the District's application to the Texas Water Commission for authorization to impose standby fees and shall not in any other way object to or challenge the application. This shall in no way prejudice Round Rock's right to object to or challenge any application to renew or increase the standby fees in the future. 5. The parties shall submit to the Commission on September 24, 1991 a proposed order of severance, a substantial copy of which is attached hereto as Exhibit "B", severing Docket No. 8599 M from Docket No. 8600 M. Further, the parties agree to simultaneously submit to the Commission a joint motion to dismiss the District's July 17, 1990 Water and Wastewater Rate Complaint. 6. There are no oral representations, understandings, stipulations, promises or inducements pertaining to this Settlement Agreement which are not incorporated into or referenced in this written Settlement Agreement. The written expressions of this Settlement Agreement contained herein, together with exhibits and other documents referenced herein, contain the entire content of this Settlement Agreement. This Settlement Agreement shall not be altered, waived or amended except by written agreement signed by both parties to this Settlement Agreement. 7. Round Rock and the District agree that they will and do hereby release any and all claims against each other relating to the provision of water and wastewater service by Round Rock to the District. 8. This inure to the Settlement Agreement shall be benefit of the parties and binding upon and their respective representatives, successors and assigns. 9. This Settlement Agreement is a compromise of disputed claims, and nothing herein shall be construed as an admission of either of the parties to this Settlement Agreement. 10. All parties agree that each provision of this Settlement Agreement is a result of the input of all the parties and their counsel. 7 11. This Settlement Agreement shall be governed by, construed and enforced in accordance with, and subject to, the laws of the State of Texas. 12. This Settlement Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. 13. This Settlement Agreement and the obligations herein shall be effective as of the last date set forth on the signatures below. ATTEST: By: CITY OF ROUND ROCK By: Name: Title: Date: City Clerk ATTEST: Secretary THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT By: Name: Title: Date: 8 EXHIBIT "A" FIRST SUPPLEMENT TO AGREEMENT BETWEEN THE CITY OF ROUND ROCK AND THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT ARTICLE I This is the first supplement (the "First Supplement") to that certain contract entitled "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"). Reference is made to the 1984 Agreement for all purposes. This First Supplement is between The Meadows at Chandler Creek Municipal Utility District (the "District") and the City of Round Rock (the "City") and is amendatory of and supplementary to the 1984 Agreement and does not repeal or supersede the 1984 Agreement or any part thereof, except as expressly provided herein. ARTICLE II 1. Paragraph 1 of the 1984 Agreement is amended to read as follows: "1. The City agrees to sell and to deliver water within the boundaries of the District for domestic and commercial uses, such water to be supplied from the City's water distribution system as extended by the District pursuant to the Construction Contract. "Water" as used in this section means potable water meeting the requirements of the Texas Department of Health for human consumption and other domestic uses. The City presently has an adequate water supply to supply service to the District. Subject to the City's right to reasonably limit the supply of water to the District residents on the same basis and to the same extent as the supply of water 1 to any other customers within the City, the City agrees that it will provide the District an adequate water supply to serve the District as it develops with a total of 2506 living unit equivalents of water connection rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this water service. The District shall promote compliance with the City's water conservation ordinances, as amended from time to time. The District agrees that the City will be the sole source of water to the District and that the District will not seek to develop its own wells, except in the event the City is no longer able to provide water service." 2. Paragraph 2 of the 1984 Agreement is amended to read as follows: "2. On behalf of the District, the City agrees to sell and deliver water service to the Users within the District. Said sales will be directly to the residents of the District, and no master meter will be installed for billing purposes. The rates charged by the City to the District for Users of the District for water actually delivered pursuant to this agreement shall be the same as the water rates which the City charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as such rates are established from time to time by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment, or other charge for water actually delivered that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment, or other charge for water actually delivered as a functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3. Paragraph 4 of the 1984 Agreement is amended to read as follows: 2 "4. The City agrees to receive, treat, collect and dispose of sewage generated within the boundaries of the District, such sewage to be collected into the City's sanitary sewer trunk line as extended by the District pursuant to the Utility Construction Contract. Subject to the City's right to reasonably limit the amount of sewage received from the District on the same basis and to the same extent as sewage received from any other customer within the City, the City agrees to receive, treat, collect and dispose of sewage generated within the District and in amounts sufficient to serve the District as it develops with a total of 2506 living unit equivalents of wastewater service rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this wastewater service. The District agrees that the City will be the sole source of sewage treatment service to the District and that the District will not seek to construct its own treatment facilities, except in the event the City is no longer able to provide sewage treatment service." 4. Paragraph 5 of the 1984 Agreement is amended to read as follows: "5. The City agrees to sell wastewater collection and treatment services to the Users within the boundaries of the District. The rates charged by the City to the District for such Users within the District for wastewater services pursuant to this agreement shall be the same as the wastewater rates which it charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as established from time to time, by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment or other charge for wastewater received by the City that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment or other charge for wastewater received by the City as the functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 5. Paragraph 6 of the 1984 Agreement is amended to read as follows: "6.a. The City shall bear all responsibility to operate, manage, maintain and repair at its expense for the District all of the District Facilities (as defined below). b. For purposes of this Paragraph 6, the District Facilities shall include: (1) all water and wastewater facilities and related appurtenances located within public rights of way or dedicated easements within the District; (2) those certain water and wastewater facilities identified as Items Nos. 1-8, inclusive, of the Project as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock, Texas - The Meadows at Chandler Creek Municipal Utility District"; and (3) all water and wastewater facilities within the District which the District may construct, purchase, own or operate in the future and for which plans and specifications have been approved by the City. c. For purposes of this Paragraph 6, the responsibility of the City for the operation, management, maintenance and repair of the District Facilities includes the responsibility for all costs of operation, management and maintenance of the District Facilities including, but not limited to, repairs, upkeep and replacements, costs of utilities, supervision, engineering, accounting, legal work, auditing, insurance and any other supplies, services, administrative costs and equipment necessary for the operation, management and maintenance of the District Facilities. d. Ownership of the District Facilities described in Subparagraph 6(b) shall remain in the District, which shall have the right to inspect them at all times. The City owns or has reserved the oversize capacity in specified portions of the District Facilities as set forth in the June 26, 1986 "Utility Construction Contract Between the City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District". 4 6. Paragraph 7 shall be amended to read as follows: "7. The District agrees to set and maintain water and wastewater rates and other fees and charges and levy and collect taxes, as appropriate, sufficient to pay the following: a. For water and wastewater services delivered by the City pursuant to this Agreement, an amount equal to the amount charged by the City for comparable Users within the City, as established from time to time, by the Round Rock City Council, all as more fully provided in Paragraphs 2 and 5, above. b. All other expenses of the District which the District determines from time to time to be necessary for the operation, maintenance and administration of the District and the provision of District services. c. Debt service on any indebtedness of the District, an amount as deemed appropriate by the Board of Directors of the District. The District, or the City upon the request of the District and pursuant to such terms and conditions as may be mutually agreed to by the parties, agrees to make water and wastewater connections in the District." 7. Paragraph 8 shall be amended to read as follows: "8. The District agrees to supply the City with a copy of each action by the District setting the rates pursuant to Paragraph 7 within seven (7) days of such action. On behalf of the District, the City shall perform all services required to collect the rates referred to in Paragraph 7, above, directly from the Users, including the reading of meters, billing of Users, and collection of charges. The City may include a breakdown on the bill showing what portion of the bill is attributable to those items described in Subparagraphs 7(b) and (c), above. To the extent that additional items the District requests to be included on the bills pursuant to Subparagraphs 7(b) and (c), above, result in additional expense to the City, the District agrees to reimburse the City for any such additional actual costs associated with the computation, billing, collection and accounting for such items. Billings and payments will be rendered by the City to Users - 5 - in the District in substantial compliance with the procedures for comparable in -City customers established in the City of Round Rock ordinances, as now in effect or hereafter amended. The District and the City agree that the City shall act as the District's agent in the billing and collecting of such bills and shall take all necessary action pursuant to applicable law to enforce payment of such bills." 8. Paragraph 9 shall be amended to read as follows: "9. The City will retain for its own account as payment of water, wastewater, fire protection and garbage services all money collected from the Users of the District pursuant to Paragraphs 7(a), 11, and 12. All other monies collected by the City on behalf of the District shall be remitted to the District's account for use by the District and shall be hereinafter referred to as "Net Revenues." 9. Exhibit "A" is deleted. ARTICLE III Except as otherwise expressly provided herein, the provisions of the 1984 Agreement shall remain in full force and effect. EXECUTED in multiple copies, each of which shall constitute an original, this day of , 1991. CITY OF ROUND ROCK By: Name: Title: Date: ATTEST: City Clerk (SEAL) ATTEST: Secretary (SEAL) THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT By: Name: Title: Date: 7 EXHIBIT "E DOCKETS NOS. 8599-M AND 8600-M THE MEADOWS AT CHANDLER CREEK § MUNICIPAL UTILITY DISTRICT § V. § § THE CITY OF ROUND ROCK, TEXAS § AND § § THE CITY OF ROUND ROCK, TEXAS § V. § § BRUSHY CREEK MUNICIPAL § UTILITY DISTRICT § BEFORE THE TEXAS WATER COMMISSION SEVERANCE ORDER On September 24, 1991, The Meadows at Chandler Creek Municipal Utility District and the City of Round Rock, Texas jointly announced through their attorneys that they have reached a settlement of the issues existing between them in Docket No. 8599-M and that they now both desire to have the Water and Wastewater Rate Complaint filed by The Meadows at Chandler Creek Municipal Utility District against the City of Round Rock on or about July 17, 1990, dismissed. In order to dismiss the said complaint which is the subject of Docket No. 8599-M, it is first necessary to sever Docket No. 8599-M (styled "The Meadows at Chandler Creek Municipal Utility District vs. The City of Round Rock, Texas") from Docket No. 8600-M (styled "The City of Round Rock, Texas v. Brushy Creek Municipal Utility District"). The Hearings Examiner finds that Severance Order - Page 1 4 1 under these circumstances a severance is appropriate and therefore ORDERS that Docket No. 8599-M be and hereby is severed from Docket No. 8600-M for all purposes. Signed this 24th day of September, 1990. DEBORAH PARKER, HEARINGS EXAMINER Severance Order - Page 2 EXECUTED DOCUMENT FOLLOWS THE STATE OF TEXAS COUNTY OF WILLIAMSON WATER AND WASTEWATER RATE SETTLEMENT AGREEMENT This Water and Wastewater Rate Settlement Agreement (the "Settlement Agreement") is made between the City of Round Rock, Texas ("Round Rock") and The Meadows at Chandler Creek Municipal Utility District (the "District"). WHEREAS, the District is a political subdivision of the State of Texas, organized under the authority of Article 16, Section 59 of the Texas Constitution and Round Rock is a municipal corporation duly organized under the Constitution and laws of the State of Texas; and WHEREAS, the District receives water and wastewater service from Round Rock pursuant to the terms and conditions of the "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"); and WHEREAS, on or about July 17, 1990, the District filed a "Water and Wastewater Rate Complaint" (the "Complaint") at the Texas Water Commission (the "Commission") against Round Rock complaining of the water and wastewater rates charged by Round Rock; and WHEREAS, the Commission assigned the complaint Docket No. 8599-M, assumed jurisdiction of the Complaint on or about February 28, 1991, and consolidated the matter with Docket No. 8600-M, which docket concerns Round Rock's request that the Commission review its wholesale water rates to Brushy Creek Municipal Utility District; and WHEREAS, Round Rock claims that the District owes Round Rock approximately $25,208.62 for operation and maintenance expenses incurred by Round Rock during the years 1986-1991 for work performed by Round Rock on the District's water and wastewater system, a claim (the "Round Rock Claim") which the District denies; and WHEREAS, Round Rock claims that the District should pay an unspecified additional sum of money ("Additional Sum") for services provided to the District; and WHEREAS, Round Rock has challenged and requested a hearing (the "Challenge") on the District's application to the Texas Water Commission for authorization to levy and collect standby fees; and WHEREAS, the District owns those certain water and wastewater facilities identified as Items 1-8, inclusive, of the Project (as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock - Meadows at Chandler Creek Municipal Utility District"), including, by way of example and not in limitation, a 750,000 gallon elevated water storage tank, a wastewater lift station located adjacent to Chandler Creek at the eastern edge of the District, a 16 -inch off-site water line which connects to an existing 12 -inch water line at Sunrise Road and Country Aire Drive and extends to the aforementioned water storage tank, and a 20 -inch wastewater force main located between the aforementioned wastewater lift station and Round Rock's Brushy Creek wastewater treatment plant; and WHEREAS, Round Rock owns or has reserved oversize capacity in specified portions of the Project as set forth in the June 26, 1986 "Utility Construction Contract Between City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District"; and WHEREAS, the District claims that Round Rock should reimburse the District in an amount (the "Reimbursement Claim") equal to the amount of water and wastewater rates in excess of fair and reasonable rates charged the District by Round Rock for the time period beginning December 28, 1989, being the date on which Round Rock established new out -of -City rates, and ending on the date the Commission rules on the Complaint, a claim which Round Rock denies; and WHEREAS, the District claims that Round Rock owes the District the sum of approximately $8,544.93 for electric costs associated with the operation of the District water and wastewater facilities, attributable to services provided to Round Rock by the District through these facilities (the "District Claim"), a claim which Round Rock denies; and WHEREAS, Round Rock holds Certificates of Convenience and Necessity Nos. 11047 and 20421 which describe Round Rock's authorized water and wastewater service area; and WHEREAS, the parties acknowledge and agree that the aforementioned certificated service area includes within its specified boundaries the area comprising the District; and WHEREAS, the District is not required to hold a Certificate of Convenience and Necessity to provide water and wastewater service within its boundaries; and WHEREAS, the parties agree that certificated and otherwise authorized service areas are valuable assets which should be maintained and protected; and WHEREAS, Round Rock and the District agree that it is in the best interests of both parties and the customers within the District for the customers within the District to be provided water and wastewater service in the most cost effective and efficient manner; and WHEREAS, for purposes of accomplishing this objective and settling outstanding issues which exist between the parties, Round Rock and the District agree that water and wastewater service shall continue to be provided to the customers within the District pursuant to the 1984 Agreement, as it may be amended from time to time so long as such 1984 Agreement continues in force and effect; and WHEREAS, bona fide disputes and controversies exist between Round Rock and the District and, by reason of such disputes and controversies, Round Rock and the District desire to compromise and settle various issues related to the Complaint, the Round Rock Claim, the District Claim, the Claim for the Additional Sum, the Reimbursement Claim and the Challenge in order to avoid the substantial time, effort and expense that would be required if these matters were resolved through administrative or judicial proceedings; and WHEREAS, the City Council of Round Rock and the Board of Directors of the District have each authorized the undersigned to execute this Settlement Agreement; NOW, THEREFORE, for and in consideration of the mutual promises and agreements herein contained, Round Rock and the District agree as follows: 1. Beginning with the bills rendered in October 1991, Round Rock shall set and charge the District water and wastewater rates which are the same as the water and wastewater rates adopted by ordinance which Round Rock charges its retail residential and commercial customers inside the city limits of Round Rock. Round Rock shall not charge the District or the users within the District any additional fee, assessment or other charge for the provision of water and wastewater service which it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the users within the District any fee, assessment or other charge for the provision of water and wastewater service as a functional equivalent of ad valorem property taxes which customers inside the city limits may pay. 2. In further consideration for the settlement of these matters, Round Rock and the District agree to execute the "First Supplement to the Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" (the "First Supplement"), a copy of which is attached hereto as Exhibit "A", simultaneously with the execution of this Settlement Agreement. 3. Round Rock and the District agree to settle the District Claim, the Round Rock Claim, the claim for the Additional Sum and the Reimbursement Claim by the payment by the District of one lump sum payment to Round Rock in the amount of $33,000.00. Accordingly, the District agrees to pay Round Rock the sum of $33,000.00 within twenty (20) working days of the effective date of this Settlement Agreement, the payment of which Round Rock and the District agree will settle in full Round Rock's Claim, the District's Claim, the Reimbursement Claim and the Claim for the Additional Sum. 4. Round Rock shall immediately withdraw its challenge and request for hearing on the District's application to the Texas Water Commission for authorization to impose standby fees and shall not in any other way object to or challenge the application. This shall in no way prejudice Round Rock's right to object to or challenge any application to renew or increase the standby fees in the future. 5. The parties shall submit to the Commission on September 24, 1991 a proposed order of severance, a substantial copy of which is attached hereto as Exhibit "B", severing Docket No. 8599 M from Docket No. 8600 M. Further, the parties agree to simultaneously submit to the Commission a joint motion to dismiss the District's July 17, 1990 Water and Wastewater Rate Complaint. 6. There are no oral representations, understandings, stipulations, promises or inducements pertaining to this Settlement Agreement which are not incorporated into or referenced in this written Settlement Agreement. The written expressions of this Settlement Agreement contained herein, together with exhibits and other documents referenced herein, contain the entire content of this Settlement Agreement. This Settlement Agreement shall not be altered, waived or amended except by written agreement signed by both parties to this Settlement Agreement. 7. Round Rock and the District agree that they will and do hereby release any and all claims against each other relating to the provision of water and wastewater service by Round Rock to the District. 8. This Settlement Agreement shall be binding upon and inure to the benefit of the parties and their respective representatives, successors and assigns. 9. This Settlement Agreement is a compromise of disputed claims, and nothing herein shall be construed as an admission of either of the parties to this Settlement Agreement. 10. All parties agree that each provision of this Settlement Agreement is a result of the input of all the parties and their counsel. 11. This Settlement Agreement shall be governed by, construed and enforced in accordance with, and subject to, the laws of the State of Texas. 12. This Settlement Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. 13. This Settlement Agreement and the obligations herein shall be effective as of the last date set forth on the signatures below. ATTEST: Secretary de,/nd_ CITY OF ROUND ROC By: Name: Mike Robinson Title: Mayor Date: September 23, 1991 THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DIS T By. Na�� Title: ouy/�� 72. 5714,4147) Date: F, 8 2 01 EXHIBIT "A" FIRST SUPPLEMENT TO AGREEMENT BETWEEN THE CITY OF ROUND ROCK AND THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT ARTICLE I This is the first supplement (the "First Supplement") to that certain contract entitled "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"). Reference is made to the 1984 Agreement for First Supplement is between The Meadows Municipal Utility Rock (the "City") 1984 Agreement Agreement herein. 1. follows: all purposes. This at Chandler Creek District (the "District") and the City of Round and is amendatory of and supplementary to the and does not repeal or supersede the 1984 or any part thereof, except as expressly provided ARTICLE II Paragraph 1 of the 1984 Agreement is amended to read as "1. The City agrees to sell and to deliver water within the boundaries of the District for domestic and commercial uses, such water to be supplied from the City's water distribution system as extended by the District pursuant to the Construction Contract. "Water" as used in this section means potable water meeting the requirements of the Texas Department of Health for human consumption and other domestic uses. The City presently has an adequate water supply to supply service to the District. Subject to the City's right to reasonably limit the supply of water to the District residents on the same basis and to the same extent as the supply of water to any other customers within the City, the City agrees that it will provide the District an adequate water supply to serve the District as it develops with a total of 2506 living unit equivalents of water connection rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this water service. The District shall promote compliance with the City's water conservation ordinances, as amended from time to time. The District agrees that the City will be the sole source of water to the District and that the District will not seek to develop its own wells, except in the event the City is no longer able to provide water service." 2. Paragraph 2 of the 1984 Agreement is amended to read as follows: "2. On behalf of the District, the City agrees to sell and deliver water service to the Users within the District. Said sales will be directly to the residents of the District, and no master meter will be installed for billing purposes. The rates charged by the City to the District for Users of the District for water actually delivered pursuant to this agreement shall be the same as the water rates which the City charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as such rates are established from time to time by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment, or other charge for water actually delivered that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment, or other charge for water actually delivered as a functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3. Paragraph 4 of the 1984 Agreement is amended to read as follows: "4. The City agrees to receive, treat, collect and dispose of sewage generated within the boundaries of the District, such sewage to be collected into the City's sanitary sewer trunk line as extended by the District pursuant to the Utility Construction Contract. Subject to the City's right to reasonably limit the amount of sewage received from the District on the same basis and to the same extent as sewage received from any other customer within the City, the City agrees to receive, treat, collect and dispose of sewage generated within the District and in amounts sufficient to serve the District as it develops with a total of 2506 living unit equivalents of wastewater service rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this wastewater service. The District agrees that the City will be the sole source of sewage treatment service to the District and that the District will not seek to construct its own treatment facilities, except in the event the City is no longer able to provide sewage treatment service." 4. Paragraph 5 of the 1984 Agreement is amended to read as follows: "5. The City agrees to sell wastewater collection and treatment services to the Users within the boundaries of the District. The rates charged by the City to the District for such Users within the District for wastewater services pursuant to this agreement shall be the same as the wastewater rates which it charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as established from time to time, by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment or other charge for wastewater received by the City that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment or other charge for wastewater received by the City as the functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 5. Paragraph 6 of the 1984 Agreement is amended to read as follows: "6.a. The City shall bear all responsibility to operate, manage, maintain and repair at its expense for the District all of the District Facilities (as defined below). b. For purposes of this Paragraph 6, the District Facilities shall include: (1) all water and wastewater facilities and related appurtenances located within public rights of way or dedicated easements within the District; (2) those certain water and wastewater facilities identified as Items Nos. 1-8, inclusive, of the Project as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock, Texas - The Meadows at Chandler Creek Municipal Utility District"; and (3) all water and wastewater facilities within the District which the District may construct, purchase, own or operate in the future and for which plans and specifications have been approved by the City. c. For purposes of this Paragraph 6, the responsibility of the City for the operation, management, maintenance and repair of the District Facilities includes the responsibility for all costs of operation, management and maintenance of the District Facilities including, but not limited to, repairs, upkeep and replacements, costs of utilities, supervision, engineering, accounting, legal work, auditing, insurance and any other supplies, services, administrative costs and equipment necessary for the operation, management and maintenance of the District Facilities. d. Ownership of the District Facilities described in Subparagraph 6(b) shall remain in the District, which shall have the right to inspect them at all times. The City owns or has reserved the oversize capacity in specified portions of the District Facilities as set forth in the June 26, 1986 "Utility Construction Contract Between the City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District". 6. Paragraph 7 shall be amended to read as follows: "7. The District agrees to set and maintain water and wastewater rates and other fees and charges and levy and collect taxes, as appropriate, sufficient to pay the following: a. For water and wastewater services delivered by the City pursuant to this Agreement, an amount equal to the amount charged by the City for comparable Users within the City, as established from time to time, by the Round Rock City Council, all as more fully provided in Paragraphs 2 and 5, above. b. All other expenses of the District which the District determines from time to time to be necessary for the operation, maintenance and administration of the District and the provision of District services. c. Debt service on any indebtedness of the District, an amount as deemed appropriate by the Board of Directors of the District. The District, or the City upon the request of the District and pursuant to such terms and conditions as may be mutually agreed to by the parties, agrees to make water and wastewater connections in the District." 7. Paragraph 8 shall be amended to read as follows: "8. The District agrees to supply the City with a copy of each action by the District setting the rates pursuant to Paragraph 7 within seven (7) days of such action. On behalf of the District, the City shall perform all services required to collect the rates referred to in Paragraph 7, above, directly from the Users, including the reading of meters, billing of Users, and collection of charges. The City may include a breakdown on the bill showing what portion of the bill is attributable to those items described in Subparagraphs 7(b) and (c), above. To the extent that additional items the District requests to be included on the bills pursuant to Subparagraphs 7(b) and (c), above, result in additional expense to the City, the District agrees to reimburse the City for any such additional actual costs associated with the computation, billing, collection and accounting for such items. Billings and payments will be rendered by the City to Users - 5 - in the District in substantial compliance with the procedures for comparable in -City customers established in the City of Round Rock ordinances, as now in effect or hereafter amended. The District and the City agree that the City shall act as the District's agent in the billing and collecting of such bills and shall take all necessary action pursuant to applicable law to enforce payment of such bills." 8. Paragraph 9 shall be amended to read as follows: "9. The City will retain for its own account as payment of water, wastewater, fire protection and garbage services all money collected from the Users of the District pursuant to Paragraphs 7(a), 11, and 12. All other monies collected by the City on behalf of the District shall be remitted to the District's account for use by the District and shall be hereinafter referred to as "Net Revenues." 9. Exhibit "A" is deleted. ARTICLE III Except as otherwise expressly provided herein, the provisions of the 1984 Agreement shall remain in full force and effect. EXECUTED in multiple copies, each of which shall constitute an original, this day of , 1991. CITY OF ROUND ROCK By: Name: Title: Date: ATTEST: City Clerk (SEAL) ATTEST: Secretary (SEAL) THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT By: Name: Title: Date: EXHIBIT "8" DOCKETS NOS. 8599-M AND 8600-M THE MEADOWS AT CHANDLER CREEK § MUNICIPAL UTILITY DISTRICT § V. § § THE CITY OF ROUND ROCK, TEXAS § § AND § § THE CITY OF ROUND ROCK, TEXAS § V. § BRUSHY CREEK MUNICIPAL § UTILITY DISTRICT § BEFORE THE TEXAS WATER COMMISSION SEVERANCE ORDER On September 24, 1991, The Meadows at Chandler Creek Municipal Utility District and the City of Round Rock, Texas jointly announced through their attorneys that they have reached a settlement of the issues existing between them in Docket No. 8599-M and that they now both desire to have the Water and Wastewater Rate Complaint filed by The Meadows at Chandler Creek Municipal Utility District against the City of Round Rock on or about July 17, 1990, dismissed. In order to dismiss the said complaint which is the subject of Docket No. 8599-M, it is first necessary to sever Docket No. 8599-M (styled "The Meadows at Chandler Creek Municipal Utility District vs. The City of Round Rock, Texas") from Docket No. 8600-M (styled "The City of Round Rock, Texas v. Brushy Creek Municipal Utility District"). The Hearings Examiner finds that Severance Order - Page 1 under these circumstances a severance is appropriate and therefore ORDERS that Docket No. 8599-M be and hereby is severed from Docket No. 8600-M for all purposes. Signed this 24th day of September, 1990. DEBORAH PARKER, HEARINGS EXAMINER Severance Order - Page 2 /65 / , FIRST SUPPLEMENT TO AGREEMENT BETWEEN THE CITY OF ROUND ROCK AND THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT ARTICLE I This is the first supplement (the "First Supplement") to that certain contract entitled "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" which was first executed on May 10, 1984 and subsequently re -executed on June 26, 1986 (the "1984 Agreement"). Reference is made to the 1984 Agreement for all purposes. This First Supplement is between The Meadows at Chandler Creek Municipal Utility District (the "District") and the City of Round Rock (the "City") and is amendatory of and supplementary to the 1984 Agreement and does not repeal or supersede the 1984 Agreement or any part thereof, except as expressly provided herein. ARTICLE II 1. Paragraph 1 of the 1984 Agreement is amended to read as follows: "1. The City agrees to sell and to deliver water within the boundaries of the District for domestic and commercial uses, such water to be supplied from the City's water distribution system as extended by the District pursuant to the Construction Contract. "Water" as used in this section means potable water meeting the requirements of the Texas Department of Health for human consumption and other domestic uses. The City presently has an adequate water supply to supply service to the District. Subject to the City's right to reasonably limit the supply of water to the District residents on the same basis and to the same extent as the supply of water - 1 - to any other customers within the City, the City agrees that it will provide the District an adequate water supply to serve the District as it develops with a total of 2506 living unit equivalents of water connection rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this water service. The District shall promote compliance with the City's water conservation ordinances, as amended from time to time. The District agrees that the City will be the sole source of water to the District and that the District will not seek to develop its own wells, except in the event the City is no longer able to provide water service." 2. Paragraph 2 of the 1984 Agreement is amended to read as follows: "2. On behalf of the District, the City agrees to sell and deliver water service to the Users within the District. Said sales will be directly to the residents of the District, and no master meter will be installed for billing purposes. The rates charged by the City to the District for Users of the District for water actually delivered pursuant to this agreement shall be the same as the water rates which the City charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as such rates are established from time to time by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment, or other charge for water actually delivered that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment, or other charge for water actually delivered as a functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3. Paragraph 4 of the 1984 Agreement is amended to read as follows: "4. The City agrees to receive, treat, collect and dispose of sewage generated within the boundaries of the District, such sewage to be collected into the City's sanitary sewer trunk line as extended by the District pursuant to the Utility Construction Contract. Subject to the City's right to reasonably limit the amount of sewage received from the District on the same basis and to the same extent as sewage received from any other customer within the City, the City agrees to receive, treat, collect and dispose of sewage generated within the District and in amounts sufficient to serve the District as it develops with a total of 2506 living unit equivalents of wastewater service rights to ultimately be provided to the District when it is fully developed. The District agrees to provide the City periodic projections of its development needs to assist the City in its planning to provide the District this wastewater service. The District agrees that the City will be the sole source of sewage treatment service to the District and that the District will not seek to construct its own treatment facilities, except in the event the City is no longer able to provide sewage treatment service." 4. Paragraph 5 of the 1984 Agreement is amended to read as follows: "5. The City agrees to sell wastewater collection and treatment services to the Users within the boundaries of the District. The rates charged by the City to the District for such Users within the District for wastewater services pursuant to this agreement shall be the same as the wastewater rates which it charges its retail residential and commercial customers (with an equivalent sized meter) inside its city limits, as established from time to time, by the Round Rock City Council. The City shall not charge the District or the Users within the District any additional fee, assessment or other charge for wastewater received by the City that it does not charge its residential or commercial customers inside its city limits and shall not charge the District or the Users within the District any fee, assessment or other charge for wastewater received by the City as the functional equivalent of ad valorem property taxes which customers inside the city limits are required to pay. It is recognized that the City will collect on behalf of the District the fees described in Paragraph 7, below." 3 5. Paragraph 6 of the 1984 Agreement is amended to read as follows: "6.a. The City shall bear all responsibility to operate, manage, maintain and repair at its expense for the District all of the District Facilities (as defined below) . b. For purposes of this Paragraph 6, the District Facilities shall include: (1) all water and wastewater facilities and related appurtenances located within public rights of way or dedicated easements within the District; (2) those certain water and wastewater facilities identified as Items Nos. 1-8, inclusive, of the Project as defined in the June 2, 1986 "Utility Construction Contract Between City of Round Rock, Texas - The Meadows at Chandler Creek Municipal Utility District"; and (3) all water and wastewater facilities within the District which the District may construct, purchase, own or operate in the future and for which plans and specifications have been approved by the City. c. For purposes of this Paragraph 6, the responsibility of the City for the operation, management, maintenance and repair of the District Facilities includes the responsibility for all costs of operation, management and maintenance of the District Facilities including, but not limited to, repairs, upkeep and replacements, costs of utilities, supervision, engineering, accounting, legal work, auditing, ,insurance and any other supplies, services, administrative costs and equipment necessary for the operation, management and maintenance of the District Facilities. d. Ownership of the District Facilities described in Subparagraph 6(b) shall remain in the District, which shall have the right to inspect them at all times. The City owns or has reserved the oversize capacity in specified portions of the District Facilities as set forth in the June 26, 1986 "Utility Construction Contract Between the City of Round Rock, Texas/The Meadows at Chandler Creek Municipal Utility District". 6. Paragraph 7 shall be amended to read as follows: "7. The District agrees to set and maintain water and wastewater rates and other fees and charges and levy and collect taxes, as appropriate, sufficient to pay the following: a. For water and wastewater services delivered by the City pursuant to this Agreement, an amount equal to the amount charged by the City for comparable Users within the City, as established from time to time, by the Round Rock City Council, all as more fully provided in Paragraphs 2 and 5, above. b. All other expenses of the District which the District determines from time to time to be necessary for the operation, maintenance and administration of the District and the provision of District services. c. Debt service on any indebtedness of the District, an amount as deemed appropriate by the Board of Directors of the District. The District, or the City upon the request of the District and pursuant to such terms and conditions as may be mutually agreed to by the parties, agrees to make water and wastewater connections in the District." 7. Paragraph 8 shall be amended to read as follows: "8. The District agrees to supply the City with a copy of each action by the District setting the rates pursuant to Paragraph 7 within seven (7) days of such action. On behalf of the District, the City shall perform all services required to collect the rates referred to in Paragraph 7, above, directly from the Users, including the reading of meters, billing of Users, and collection of charges. The City may include a breakdown on the bill showing what portion of the bill is attributable to those items described in Subparagraphs 7(b) and (c), above. To the extent that additional items the District requests to be included on the bills pursuant to Subparagraphs 7(b) and (c), above, result in additional expense to the City, the District agrees to reimburse the City for any such additional actual costs associated with the computation, billing, collection and accounting for such items. Billings and payments will be rendered by the City to Users - 5 - in the District in substantial compliance with the procedures for comparable in -City customers established in the City of Round Rock ordinances, as now in effect or hereafter amended. The District and the City agree that the City shall act as the District's agent in the billing and collecting of such bills and shall take all necessary action pursuant to applicable law to enforce payment of such bills." 8. Paragraph 9 shall be amended to read as follows: "9. The City will retain for its own account as payment of water, wastewater, fire protection and garbage services all money collected from the Users of the District pursuant to Paragraphs 7(a), 11, and 12. All other monies collected by the City on behalf of the District shall be remitted to the District's account for use by the District and shall be hereinafter referred to as "Net Revenues." 9. Exhibit "A" is deleted. ARTICLE III Except as otherwise expressly provided herein, the provisions of the 1984 Agreement shall remain in full force and effect. EXECUTED in multiple copies, each of which shall constitute an original, this .23 day ofbcr , 1991. CITY OF ROUND ROCK By: Name: Mike Robinson Title: Mayor Date: September 23, 1991 ATTEST: (SEAL) THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT By:,, Name: 2r ��� - 27. L`�fs vrnij Title: _/ �ey Date: q 2 9/ (SEAL)