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HomeMy WebLinkAbout25-110ORDINANCE NO. 25-110 AN ORDINANCE OF THE CITY OF DENTON, TEXAS (“CITY”) AUTHORIZ[NG THE EXECUTION OF A UTILITY SERVICE AGREEMENT WITH TCCI SANCTUARY, LLC (“OWNER”) AND SANCTUARY MUNICIPAL UTILITY DISTRICT NO. 2 OF DENTON COUNTY (“DISTRICT”) CONCERNING RETAIL WATER SERVICE BY THE CITY TO FUTURE CUSTOMERS WITHIN APPROXIMATELY 562.99 ACRES OF LAND GENERALLY LOCATED SOUTH OF US 380, EAST OF GEORGE OWENS ROAD, AND NORTH OF OLD STONEY ROAD (“PROPERTY”); WASTEWATER OWNERSHIP; SALE OF GROUNDWATER RIGHTS; OTHER RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Property encompasses approximately 562.99 acres of land and is more particularly described and shown in Exhibit “A“ of the Utility Service Agreement; and WHEREAS, the Owner proposes to develop the Property with 2,117 residential lots and 5.9 acres of commercial development; and WHEREAS, Owner expects that full development of the Property will require service to a maximum of 2,2 14 equivalent single-family connections; and WHEREAS, Denton is a retail public utility that possesses certificated service areas for Water and Wastewater services under CCN Nos. 10195 and 20072, respectively; and WHEREAS, the City, Owner, and District wish to enter into the Utility Service Agreement, attached hereto as Exhibit “A“ for utility service to customers located within the Property; and WHEREAS, Owner and District desire the City to provide retail water service to customers within the Property pursuant to the terms of the Utility Service Agreement; and WHEREAS, the water infrastructure necessary to serve customers within the Property will be dedicated to the City by the District or Owner pursuant to the terms of the Utility Service Agreement; and WHEREAS, portions of the water infrastructure may be oversized to serve future growth pursuant to a separate Oversize Participation Agreement; and WHEREAS, pursuant to the Utility Service Agreement, all title and ownership to wastewater flow from the Property will belong to Denton upon discharge to a natural watercourse; and WHEREAS, the Owner wishes to convey the groundwater rights associated with the Property to the City pursuant to the terms of the Utility Service Agreement and a separate Groundwater Rights Sale Agreement; and WHEREAS, the City has determined that full development of the Property as provided herein will promote local economic development within the City and will stimulate business and commercial activity within the City, which will drive infrastructure investment and job creation and have a multiplier effect that increases both the City’s tax base and utility revenues. NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The City Manager or their designee is hereby authorized to execute the Utility Service Agreement attached hereto as Exhibit “A“ and incorporated herein for all purposes, with TCCI Sanctuary, LLC and Sanctuary Municipal Utility District No. 2 of Denton County concerning retail water service, ownership of effluent, the sale of groundwater rights, and other related matters. SECTION 3. Minor adjustments to the attached Utility Service Agreement by the City Manager or their designee are authorized, such as filling in blanks and minor clarifications or corrections, and any modifications made by City Council in the approval of this Ordinance. SECTION 4. The City Manager, or their designee, is authorized to carry out all duties and obligations to be performed by the City under the Utility Service Agreement, unless otherwise reserved in the Utility Service Agreement for City Council approval. SECTION 5. This Ordinance shall take effect immediately on its passage and approval. The motion to approve this ordinance was made by Jill Jester and seconded by Joe Holland, the ordinance was passed and approved by the following vote [ 7 - 0 ]: Aye X Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 :X X X X X X Brian Beck, District 2 : Paul Meltzer, District 3 : Joe Holland, District 4: Brandon McGee, At Large Place 5 : Jill Jester, At Large Place 6: PASSED AND APPROVED this the 4th day of February, 2025. Page 2 ATTEST: LAUREN THODEN, CITY SECRETARY t\\\tIll I III/ (yCUJ/w/K APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY Page 3 vruLrry SERVICE AGREEMENT BY AND BETWEEN TEn CITY OF DWFON AND SANCTUARY MUNICEPAL IrriLiwDIsrRicT NO. 2 OF DENTON COUNW AND TCCI SANCTUARY, LLC This unity Service Agreemeat (“AgneluenP) is made and entered into by and betw wa the City of Denton, Texas, a home rule municipality (“Denton” or the “City”} Sanctuary Municipal Utility District No. 2 of Denton County, a conservation and rwlamation district operating under the authority of Chapters 49 and 54 of the Texas Water Code ('Dis&ice), and TCCI Sane hwy, LLC, a Texas limited HabiBW company ('Owner”), each collectively referred to as the “Parties”. This Agreement is effective as of February 4, 2025, being the date by which this Agreement is exwuted by the Parties (the “Eaective Date’). REcrrAls WHEREAS, Denton is a municipality, a duly incorporated political subdivision of the State of Texas operating WIder dre Constitution and laws of the SUB of Twas, that provides retail and wholesale Water and Wastewater service to customers; and WHEREAS, Denton is a nail public utility that possesses a certificated service area for Water and Wastewater services under ceN No. 10195 and 20072, rwpectively; and WHEREAS District is a conservation and rnlamation district operating under the authority of Chapters 49 and 54 of the Texas Water Code, as amended; and WHEREAS Owner is the sole owner of the Pnpedy, possesses record tide, and intends to develop the Property for single family residential puposes; and WHEREAS, Owner expects that full development of the Property will nquin service to a maximum of 2,214 ESFCs; and WHEREAS, the Property is not located within an area subject to a CCN issued by the Public Utility Commission of Texas; and WHEREAS, Owner and District desire the City to provide retail Water service to Water Customers within the Pr@afB and WHEREAS, the City is willing and able to make retail Water s@vice available pursuant to the turns of this Agreement, and WHEREAS, the Parties agree that it is beneficial to the Parties, the Water Customers, and the region to prevent overproduction of Groundwater and the degradation of surface water quality; and WHEREAS, Owner owns and wishes to convey all Groundwater Rights associated with the Property to the City; and WHEREAS, City will ensue Gnurxlwatu is available for Dis&ict’s use for irrigation purposes, subject to the Bans of this Agnement, and WHEREAS, the Parties rwognin the importance and benefits of water conser%tion and drought contingency planning; and WHEREAS, Denton wishes to reuse Wastewater originat&lg from the Property; and WHEREAS District and the City agree that reclaimed Water provided by the City, when available, should be used for irrigation in, at a minimum, commercial and public property within the District; and City oflkatoa Utility Sma Agrwtuat Page 1 of30 0 18+51.0<}0001U93C>661&<>106.v2 WHEREAS, Ownu and District want the City to possess title and ownership of all Wagewalu flows originating &on the Property, to the extent allowable by law, after treatment and diuharBe to a natural watercowse pursuant to a permit issued WIder state and fedual law; and WHEREAS, The Partia acknowledge and agree ucb is nquind to cornply with app liable federal state, aId kx:aI laws, Hguladons, and pamitg and WHEREAS, the Parties desire, and have independently determined, that it is in their tnst interest to enter hrto this Agnmeat; and WHEREAS, Deakin, by Council Ordinanae No, authodzed its City Manager to execute this AgeemerIt; and J on February 4, 2025, approved and WHEREAS, the Disaict, at a meting of its Board ofDinctors on Fetxuary 3, 2025, has approved and authorized the President or Vice Pnsident of the Board of Directors to execute and the Snntary or Assistant Secraary of the Board ofDirwtors to aaest this Agreement; and WHEREAS, Denton and the District are authorized to enter into this Agreement pursuant to Texas Government Code Chapter 791, and other appHcable laws; and WHEREAS, Denton and District individually have the authority to perform as set forth in this Agrwment in accordance with Texas Government Code g 791.011 (c); and NOW, THEREFORE, for and in consideratial of the premises and the mutual covenants and undertaking of the Parties hereto and the mutual consideration herein stated, the sufficiency of which is hereby acknowledged and agreed upon, the Parties hereby agree as follows: AGREEMENT OF THE PARTns ARTICIE 1 DEFuqmoNS Some terms used huein are defined by the Texas Water Code or under the City ordinance. To the extent a defined term or phrase is Imd and not defined herein, mcb shall mean and refer to the de6nidoa prwrR>ed by the Texas Water Code or under the City ordhrance. If no such definitions are established by those laws, then common usage shall con bol. Accordingly, the following terms and expressions in this AgBement, unless the context clnrly shows otherwise, shall have the following meanings: “ccsr shall refer to and mean a Certiaate of Convenience and Nec%sity issued by the Public Utility Commission of Twas (“PUC’) or its pndecessor or successor agency, as pnscdbed by the Texas Water Code 'tDeaton” or “City” shall refer to and mean the City of Denton, Texas, a Texas homerule municipality. “Cost of Construction” shall refer to and mean the actual costs of design, engineering, construction, acquisition, irrspwtion, testing, surveying, staking, and other associated costs relating to the constrwcdon of the Water Facilitiw,as8ppUcable. The estimated Cost of Cons&uctionofthe Water FaciUtiesaaHbubbl8 to the Property is included in RaBbit “C” atnched tnnto and incoqnrated herein. “Day” means a 2+how pedal &un 12:00 am. to 11:59 pm. of each calendar day. “Ibn&m’s System” or “:Denton W9teu” means all wisting and future facilities utilized to provide Water services to lknton’s retail and wholesale customers including, but not limited to, Denton’s Water beatment and bansmission systems, Water storage facilities, publicly owned treatment works, and administrative and persalnel buildings. City of ChaRn Utiliry SwR:e A8re£mettt Page 2of30 018451.CX)0001W93C}66184)106.v2 “District” shall refer to and mean Sanctuary Municipal Utility District No. 2 of Denton County, a conmvation and reclamation district operating under the authority of Chapters 49 and 54 of the Texas Water Ccxie, as amended. “ESFC” shall refer to and m%n an equi%Iaa singlefamily connection. “Groundwater” means allofthe underground water, pncolating water, mtesian water, and any other water from any and all depths and rwrvoirs, formations, depths and horizons beneath the surface of the Property, excluding underflow or now in a defined subtenan uri channel. “Groundwater Rights” means (1) the legal tide to Groundwater and the right to test, explore for, drill for, develop, withdraw, capture, or otherwise beneficially use the Groundwatec (2) the right to use the swfaw of the real property for access to and to explore for, develop, treat, produce, and transport the Groundwater; md (3) an permits, licenses, or other govemmeatal authorizations relating to any of the foregoing. if a separate easement agreement is nquhed by this Agreement, the Groundwater RW include the easement rights “MaD” means million gallons per day measured as a twenty-four-hour period and is not intended as an annual average unless expressly provided to the contrary. “Yr loath” means a calendar month. “OfBite” means not located within the Property. “ORsi a Water FaciUtiw” means Water Facilities to be constructed by Owner outside the boundaries of the Proputy for the purpose of providing treated water service to Water Custorners located within the Property, particularly including those facilities described in that certain water study prepared by Kimley- Horn & Associates, Inc. attached hereto in Exhibit “B” (the “Water Study”). “Outside Customers” shall refer to and mean retail Water customers who are connected to Denton’s System and are billed as customers located outside the City’s corporate limits. “Points of Delivery” rn%as the locations where, and the Water Facilities through which, Water will enter the Water Facilities within the Property, pursuant to this Agreement. As of the Eff@tive Date of this Agrwment, the Points of Delivery are 1 mated as identified in Exhibit “A” attached hereto and incorporated herein “Property” shall refer to and mean the panel of approximately 562.99 acres, more lwticularly described and shown in Exhibit “A”. The Property shall be developed into a single.family residential development. “Wastewater or “Ealaeat” means all liquid or water4arHed waste products from whatever source derived, whether treated or untreated, which are discharged into the Wastewater Facilities, or permitted to enter into the Wastewater Facilities. “Traasni®hn System” means all of Denton’s water lines twelve (12) inches in diameter or larger used to transport Treated Water to its customers. “Wastewater FaciHda” shall refer to and mma an Wastewater facilitiw to be constructed by Owan and/or District inside or outside the boundaries of the hupeny for the purpose of providing retail Washwain service to customers located within the Property. This definition shall cover Wastewater faciHtiw utilized to provide retail Wastewatw service to customers located within the Property without regard to whether they are wholly or partially constructed or owned by the Owner and/or Distdat and without regard to whether retail service is provided by the District “Water” means raw water treated by Denton so that it is potable water meeting the minimum quality requirements for human aonsumption as prescribed by the Texas Commission on Environmental Quality or other appropriate regulatory agency. City of IRa&xI utaity Sewia Agreati£at Page3 of30 0 184SI.000001V+9306618-0106.v2 “Water Customers” shall mean and refer to Water customers that are located within the Propedy. KWater Facilities” shall man all Water corweyurce facilities to be constructed by C)wan inside w outside the boundaHesofthe Property for the pwpose of providing tr%ted water snvice to Water Customers located within the Pmlnny, paniculady hwluding those facilities descrn>ed in that aTtain water study pnpared by KimIey-Horn & Asswiates, Inc., attached hereto as Exhibit 'W ARIICLEn ADOPTIONS AND RfrERPRETATiONS Section ZI. Adoption of Recitals. All of the matters stated in the recitals of this Agreement an aw and correct and an hereby incorporated into the body of this Agreement as though fully set forth in their entirety herein Section 22. Adoption of Erhibits. The following Exhibits and their attachments nferen®d in this Agreanent are hereby incorporated into the body of this Agreement as though fully set forth in their entirety herein • • • @ Extra>it “A” PR>petty Exhibit “B” Water Study Exhibit “C” Estimated Cost ofConstrrntion Exhibit “D” Form of Easement Sectioa 23. Interpretations. TIle following principles oonaol the interpretation of this Agreement 2.3.1 . Unless 9thwwise stated, reference to any document means the document as amended or supplemented&orR time to Bme. 23.2. Refuenoe to any party to this Agreement or to a governmental regulatory agency means that entity and its successors and assigns, unless expressly provided to the contrary in this Agreement 2.33. Misspelling of one or more words in this Agreement shall not void the Agreeruent. Misspelled words shall be read to have the meaning apparently intended by the Parties, 2.3.4. Words in the singular numtnr include the plural, unless the context otherwise requires. 2.3.5. References to “Article”, 'S@tion”, Subswtion”, and “Exhibit? are to the articles, s@tions, subsections and exhibits of this Agnement unless expressly stated to the contrary. 2.3.6. Article and section headings are for convenience and reference and are not intended to define, Ihl& or expand the scope of any provision of this Agreement. ARTICIE EU WATER AND FACELrrms Section 38l+ ConstructIon. Owner, on behalf of the District, shall construct the Water Facilities rwcessary to connnt to Denton’s System at agreed upon locations. Section 3,2. lksiw. The Water Facilities shall be engineered and designed by a mas Licensed Professional Engineer chosen by Owner, who shall design such facilities in accordance with the applicable standards and specifiadoas of the City and all govemmenaI agencies having jw{sdidion, consulting with the City as needed to ensure conformance with the City specifications. Owner shall design and construct the Water Facilities in a good and workmanKke manner so they an fit for the intended purposes. Said design and construction shall be at Owner’s sole cost, except as set forth to the contrary in section 33 'Sizing” below City ofihaBIll Utility Savia A8rearlen Page 4 of30 018451.00000IU93G661&OI06.v2 Uni®s otherwise mutually agreed to in writing, (>wwt, on tnbalf of the Diskict, shall be ruponsRile for the design, cons&uctial ard financing of Water Facnitia, and compliance with any applicable state or federal requirements, including, but not limited to, for water lines to metering points, meters, meter vaults and associated valves, and for aa]uisition of any rights-of-way for additional or future Points of Delivery to which lknton may consent Section 33. Sidag. are Water Facilities shall be sized to provide continuous and adequate retail watn service to a maximum of 2,214 ESFCs on the Property. in the event the City nquins any of the Water Facilities to be oversized to serve customers located outside the boundaries of the Property, terms and conditions related to oversizing shall be governed by an oversize participation agreement executed by the City and Owner based on the City’s standard oversize lwticipation agreement form. Section 3.4. Construction of Water Facilities. The Water Facilities shall be oonstruct9d in accordance with the construction plans and specifications approved by the City pursuant to Section 3.5 and in compliance with: a. City’s applicable ordinances, rules, and regulations; and b. The rules and regulations of any governmental agaIcies having jurisdiction. Sectioa 3.5 Approval by the City’s Desjgnated Endneer. TIle Water Facilities are subject to approval by the City’s designated enginnr in accordance with the City’s standard review schedule. Construction shall not commence unless and until said plans and qmifications have tnen approved by the City’s designated engineer. To the extent there is a coaflictbetw nn any portion(s) of an appHcableoahrame, nae,ngulado& or law related to the construction of the Water Facilities, the more resaictive and/or stringent of the conflicting portion(s) shall apply. Section 3.6. Conformity. Owner agrees that Dalton’s engineers or other representatives may inspect and test the consauction of the Water Facgities at any time to determine compliance with the approved daigns, plans, and specifications. Owner must notify the City in writing of the date upon which construction is scheduled to commence on each phase so the City may assign an inspector. The City will charge reasonable fees related to inspecting the construction of the Water Facilities in accordance with applicable law. Section 3.7. Stoppage for NonConformance. Ttre City may stop wotk on any portion of the Water Facilities which are not being constructed in conformance with the City’s regulations and standards and the approved plans and spwifications until such time as Owner and Owner’s contracta© agree to construct that portion of the Water Facilities in conformance and to demonstrate future conformance as requested by the City Section 38. Aceeptaa@,Dedicatioa, Maintenance, and Repair. Upar propercornpletioa of construction of a phase of the Water Facilities, final inspection by the City, and the City’s written approval of the Water FacRities, such portion of the Water Facilities shall be dedicated to the City whlrout compensation by an appropriate legal instrument approved by the City Attorney. Thereafter, the Water Facilities shall be owned and solely operated, mahrained, and repaired by the City. The City shall maintain the Water Facilities in good repair and working condition at all times. Section 3.9B Acqujsition and Dedication of Basements for Water Faciliti©. 3.9.1.Owrnr shall be responsible for acquiring and dedicating to the District, at Owner’s sole expense, any easement encompassing areas across privately or publicly owned land or sites which the City detemrines are necessary for the cons&wtjoa, operation, and maintenance of the Water Facilities. After such %sements are dedicated to the DistHcb the District hereby agnes to assign such eauments to the City. 3.92. Owner shall use its good faith efforts to acquire non-exclusive %sements which allow for the City to install future water Ihres and other municipal utilities; provided, however, that such future facilities shall not interfere with the operation, maintenance, or use of the Water Facilities. If, however, Owner is unable City of [baton Utijity Service Agnarnnt Page 5 of30 0 l&+51.OtX>(>01\493(166184106.v2 to obtain such easements by private negotiation, District shall secure the nonexclusive %sanenB after a finding of public nnessity, through the uw of the District’s power of eminent dornain. 3.9.3. The Parties agree that any easanents acquired shall be on the form attached hereto as Exhibit 'tD” and incorporated hneh for all purposes. Unlas othuwise set forth in this Agreement to the contrary, the District shall be responsible for funding all reasonable md necessary legal pmceedinglitig8ion costs, attorney’s fms, and related wpenns; pmpetty acquisition costs; and appraiser and ocpertwitn®s fees paid or incwred in the exercise of its aninent dmrain www& Itre DistHct will use all r%sonable efforts to expedite such condemnation procedures so that the Water Facilidn can be constructed as soon as r%sarab ly practimble. 3.9.4. Owner shall obtain an governmental approvals nec®sary to construct the Water FaciHti© in public land orrightwf-way. Section 3.10, Easement FQrm. All %sements acquired by Owner or District for the Water Faciliti® shan: a. Be the widths shown in Erbibit “B” attached hereto; b. Be adequate to allow the City to install water lines and other municipal utilities; and c. Be situated in the public Hghtof-way or in existing %sements spnifically dedicated for the Water Facilities as set forth hereunder. Section 3.11. Development Contracts for PabHc Improvements and Bonds. For all Water Facilities, Owner and any contractor performing oonstruction shall execute a Development Contract for Public Improvements with the City using a contract form approved by the CiEy Attorney, Additionally, for all Water Facilities, Owner or Contractor shall obtain and tender payment bonds and performnrce bonds in the fUll amount of the construction cost The performance bonds shall be for a term of two years from the date of final acceptance of the Water Facilities by the City and shall name the City as an obligee with a surety acceptable to the City guaranteeing the work and materials of the Water Facilitia to be free Rom defects or need for repair. The bond forms and the sunties are subject to the City Attorney’s approval. Section 3.129 Copies of Plans. Owner shall furnish the City with one reproduction and two copies of the as.built or record drawings in an appropriate AutoCAD format for the Water Faci]tHes promptly upon completion of construction and acceptance by the City. The drawings must be GIS compatible. Section 3.13. No Grant of Equity or Ownership. No provision of this AgF@ment may tn inerpnted or construed to create any type of joint or equity ownership of any property or to create any lwtnership or joint venture. Neither this Agreement, nor any acts of the Parties hereunder, adr any payments, may be interpreted or construed as granting or otherwiw vesting in District or Owner any right, title, interest, or equity in the Denton System, or any element thereof. ARTICIE IV RETAEL WATER SERVICE Section 41. Aereement to Provide Retail Water Service. Denton hereby agrees, subject to the terms of this Agrnment, to provide retail Water service to the Water Customers. Section 42. Sole Provider. Denton shaH be the soleprwiderofntai I Watmsewioe to all Water Customers. Section 43, Billing and Ratu 4.3.1. The City shall bill the Water Customers for the City’s provision of retail Water service when suchservice is available. 4.3.2. Water Customers graII pay the City’s rate for retail Water swvice to Outside Customers, as the rate may tn amarded liam time to time in the City’s sole discntion. City oflkaan Utility SeIMa Agre£trtarl Page 6 of3001845 1.0C>0001V193Cb66 18<>106.v2 43.3. AU of the standard rates, few, and charges adopted by the City shall apply to retail Water service provided pwwant to this Agreement. Section 4.4. Conditions Precedeat. It is urMlentood and agreed by the Parties that the obligation of the City to provide retail Water service in the mannu contemplated by this Agrwment is subject to (D the issuance of all perlnits, certificates, or approvals nqaind to lawfully provide retail Water service by the PUC, Texas Commission on Environmental Quality, and all other govenrmartal agencies having jwisdiction, which Owner, District, and City shall use good faith efforts to thneiy acquire, ifnnessary, and (ii) completd conveyance ofGrowtdwater Rights from the Owner to the City pwstrant nAme V. Section 4.5. Service Limitations. Notwithstanding any other provisions of this Agreement, Denton’s obligation undn this Agreement to supply retail Water service is subject to and limited tv Denton’s available raw water supply and the wpabiliti% of Denton’s System, as determined by Denton in its sole discretion. Denton will use reasonable efforts consistent with prudent operation of the Denton’s System and with the terms of this Agreement, to fwrHsh and remain in position to provide service to Water Customers. Retail Watu service pwsuant @ this Agnem ntis fuRher limited punrrant to Swdoa 4.6 ofttHsAgnement. Section 4,6+ Water Coaservation and Drought Contingency. 4.6.1. City shaH develop and implment Water conservation and drought contingency plans using applicable elements of Chapter 288 of Edo 30 of the Texas Administrative Code, as may be amended from time to time. District agrees to pursue and encourage consewation for the benefit of all customers of the District and the Denton System. 4.6.2. District agrees that Ihnton may limit orcwlail Water suppHes or services pwsuant to this Agreement consistent with Denton’s duly adopted water conservation and drought contingency plans or for other reasons in the public interest. Denton agrees to impose such ns&ictions equitably and in a non- discHminatory fashion. District agrees to coordinate and cooperate with Denton coawming the implementation of any action to conserve or otherwise limit or curtail Water supplies in order to minimize adverse impact on Denton’s System operation, on adequacy of service, and to promote public understanding of the need for and terms of such limitation or curtailment. 4.6.3. To the extent Ihnton imposes ratrictions of general availability requiring curtailment or rationing of Water delivery and availability other than as provided under Ihn&)a’s duly adopted wat© conservation and drought cwtailment plans, Denton agrees to impose such rwtHcdons equitably and in a non- discriminatory fashion. Such curtailments or rationing shall be limited to the extent that such supplies and service are curtailed due to a lack of raw water supply or because of Denton Systern failure or malfunction, contamination, acts of God, civil distwbanc€s, war, regulatory delay, or o her causes beyond Denton’s control Section 4,7, No Conveyance of Water Rights. The Parties acknowledge that nothing in this Agrwrnent is intended to sell encwnbn, transfer, or convey any water rights horn Denton to !)is&ict, Own% or any other entity and no such rights are sold, encumbend, aansferred, or conveyed. No entitlement to Water supply is created other than as expressly provided in this Agreement if this Agreement is ever construed to effnt an entitlement in, or sale, encumbrance, &ansfer, or convqrance of, Water agM from Denton to Distdct or Owner, then the entirety of the Agnemmt shall be null and void. Section 4.& No Continuation of Sewica. District and Owner acknowledge there is no right to continuation of retail water service by IRa&m in the event this Agreement is terminated and that no such right(s) may be implied. Section 4.9. Temporary Dbcontinuance, Denton expressly reserves the right to temporarily discontinue the retail Water wwi a provided for in this Agreement, in the same manner as the City would tempomd ly discontinue ntail Water wwi@ provided to any of its other retail Water customers, whenever it is necessary to do so to ensure proper operation of Denton’s System or to protect the health and safety of the public. City oflhIrton Utility Sewin Agn€maa Pw 7 of30 01 &+51.0CXX301\493CK6i8{)106.v2 Section 4.10. Water Impact Fen. 4.10.1. Impact fns for connection to any Water Fa£iliti% shall be charged for ach ESFC kx:ated within the Properly (the “lmpact Fns’), subj nt to the conditions in Sections 4.10 and 4.11 and in accordance with Chapter 395 of the Twas Local Gwnnmeat Code. 4.10.2. The Impact Fen shall refer to tIn f@s dIe under this Agreement per ESFC eOIn any builder within the Property who connects to the Water Facilitia, in an amourt equal to the City’s existing Water impact fee stated on the City’s impact foe schedule in effect at the time of said connntion to the Water Facilities. The Impmt Fee shall be charged once per ESFC subject to Sections 4.10 and 4.11. 4.103. The Impact Fees shall tn due for each connection made for ach ESFC lwated within the Property at the time swh connection is made. No conn@tion to the Water Facilities may occur until the Impact Fees have tnen paid to the City for such comIeaioa. 4.10.4. The Parties hereby agree that the amount of the Impact Fee shall be based on an bnpact fee study completed by the City, as amended. Any change to the amount of the Impact Fee shall be effective upon passage of the new Impact Fee amount by the lknton City Council and shall apply to any connections made after the new Impact Fee amount becomes effective. Section 4,11, Impact Fee Credits for oasite Water Facilitiw. 4.11.1. Ibis section shall be limited to Offsite Water Facilities included in the City’s impact fee study in effect at the time the City accepts the Offsite Water Facilities. 4.11.2. Upon the City’s acceptance of any Offsite Water Facilities, Owner shall provide the City with evidarce of the Cost of Construction for the Offsite Water Facilities. 4.11.3. Owner will be eligible to receive an impact fee credit amount equal to the Cost of Cons&ue:tion for the Offsite Water Facilities in accordance with the City’s Impact Feeordinanca and regulations. However, the amount credited shall not be gnatn than the amount included in the City impact fee study in effect at the time of the City’s acceptance of the Offsite Water Facilities. The estimated Cost of Construction of the Water Facilities attributable to the Property that are included in the City’s most rwent impact fee study in effect as of the Effective Date of this Agnmrent ip attached hneto as Exhibit W’. Owner and City agree that the most recent impact fee study is subject to change and may be amended by the Denton City Council in its sole discretion. 4.1 1.4. Owner and the City agne that once Owner is credited in accordance with Section 4.11.3, the City shall collect the Impact Fees per ESFC pursuant to Section 4.10. 4.1 1.5. Nothing in this Agreement shall limit the ability of the Denton City Council to amend the City’s impact fee study or schedule. 4.11.6. Nothing in this Agreement binds the Denton City Council to include any Offsite Water Facilities in its impact fee study or capital improvement plan. Section 4.12. Wastewater Flow. District and Owner shall ensure, to the extent allowable by law and thnugtragnanents wnuted with any Wastewatusnvieeprovi&r,thattitb and ownership to Wastewater flows originating hun the Property tnlong to Denton aftm treatment and discharge to a natural watercourse via a wa$tewztu treatment fwiHty pennitted by the Texas Commission on Envimamental QmEtH or its successor agency, IInde state and federal law. District and Owner agree they are solely responsible for the oollection, delivay and 6eatment of Wastewater while they have title to such Wastewater and that liability for damages arising from the &ansportation, rweption, treatment or disposal of all Wastewater while title to such Wastewater is held by Owner and/or District shall remain with the Owner and/or District City of Ibnam unity Saviu AglunaR Page 8 of30 018451.00C)(X)IH930+618+1106v2 District and Owner will support and axxdimte with lknton in all its efforts to obtain permiB and/or regulatory authodadons nh£ed to this Section frun State and Federal agencies having judsdictioa including, without limitation, efforts by lknton involving reuse and bed and banks pemritdn& Owner and District agree to provide Denton with documents and information requested by Denton as may be nquired by lbnton for such purposes. District and Ownnhentv waive any objection orridrtofpotest to Denton’s permitting and/or audroriz&ion applications for such pwpows. Section 4.13. W48tewater Service Cbanga. TIle District and Denton County Municipal Utility District No. 16 (“MUD No. 1P) intard to entu into an agrwment pursuant to which MUD No. 16 will provide nail wastewater snvi@ to the District Owner and District shall notify the City within thirty (30) days of bwoming aware that the Property, or any customers associated with it, will not rweive wastewder service pursuant to the agreement and/or anangement(g) with VS Development, LLC and/or MUD No. 16. ARTICLE V GROUNDWATER Section 5.1. Groundwater Rjghts. Owner warrants and npr%ents that it owns the Groundwater Rights attributable to the Property in fee simple and that the Groundwater Rights have not been severed from the surface estate. Section 52. Groundwater Rights Sale Agreement Required. Owner shall enter into a Groundwater Rights Sale Agreement with the City, the form of which shall be mutrally agreed upon by Owner and the City, wherein the Owner agrees to sell the Groundwater Rights at&rl>utable to the Property to the City in fee simple. The Groundwater Rights Sale Agreement shall be accompanied by a deed, the form of which shall also be mutually agreed upon by Owner and the City, and both instruments shall be filed and rnorded in the real property rwads of Denton County. The City will not use the surface of any finished lots within the Property to access, explore for, develop, treat, produce, or Uansport the Groundwater. Section 53. Irrigation Licease. After closing on the Groundwater Rights in accordance with Section 5.2 herein, the City shall gIant the District a license, the form of which shall be mutually agreed upon by the City and District, to potluce Groundwater for irrigation purposes in amourts sufficient to ensure the maximum amount of Groundwater is conserved, based on documentation provided to the City. Conditions relating to the siting and operation of any Groundwater weBs will be addressed in the license contemplated by this Swtion 5.3, which shall be mutually agreed upon by the City and District. Sectioa 5,4. GeD ApDrov8l§ and Filinn. Owner and/or District shall obtain all the regulatory approvals from the North Texas Groundwater Conservation District ('NTGCIY'’) necessary to effectuate the sale and license contemplated by this Agrwmer£ Owner and/or District are also responsible for the filing of all documents required by NTGCD to effectuate the sale and license contemplated by this Agreement. Section 55. Other Regulatory Approvals. Owner and/or District shall be responsible for obtaining all regulatory approvalsn@wsary to produce the Groundwater allowed under the liceasenfaenced in Swtion 5.3 ARIICLE VI OPERATION AND REGULATORY APPROVALS rwognizes its riga and duty to operate £knton’s System under this Agnement in a prudent and economical manner for the benefit of its retail customers. Denton will use due diligence to comply with appmpHatewaterquamy standards and will guard carefully against all forms of contamination to Denton’s System employed in performance of this Agreement. Section 6.1. Operation and Maia Denton City of [hIlton Utility Sewia Agrearrgnt Pass 9 of 30 018451.000001 W93046181)106.v2 Sec6oa M o . This Agreement is subject to all applicable Fed©al and Stale laws and any applicable perrnits, ordinmns, nIles, orders, and regulations of any local, stab, or federal govetnmaHal authority having or asserting jurisdiction; but nothing contained herein shall be construed asawaivn of any right to question or contest any such law, ordinance, order, rule or nwhtM h any forum having jw{sdiction. Section 63. City Permits and Rewlatow Authorizations. District and Owner will support and coordinate with the City in all its efforts to obtain pumits and/or regulatory authoHa6ons related to this Agreement from State and Fedual agencies having jwisdiction includinB without IhHtation, efforts by the City involving water muse and bed and banks permitting. Section 6.4+ Certi6cata of Convenience and Necusity and Extraerrihula Jurisdiction 6.4.1. District agrees that it will not provide any Wan or Waitewater services to any customer within an area included within Denton’s single, dual, or multiple certificated areas, unless expressly approved in writing by Denton. 6.4.2. With the acception of Denton’s Wan or Wastewatu CCN, the Property shall not be located within an area subject to a CCN issued by the Public Utility Commission of Texas or suocessor agency. 6.4.3. To the extent the Property, a any portion tlienof, is not subjact to my Water CCN, Denton has the option to extend its Water CCN to cover the pnpeny at the City’s sole cost and expense. 6.4.4. The Owner agrees that it will not take any steps to include the Property in the exbaterritodal jurisdiction of any political subdivision othn than Denton. Section 65. CompUan@ with Al)pliable Laws. 6.5.1. This Agrwmalt is altered wbjnt to and conBoiled by the Chadw and Ordinances of the City of Denton, Texas and all applicable laws, rules, and regulations of the State of Texas and the United States of America (collectively, “Applicable Laws”), as amended. The Parties shall during the performance of this Agreement, comply with all applicable City codes, ordinances, and nguladons, as amended, and all applicable State nrd Federal laws, rules, and regulations, as amended. 6.52. NotwWanding any provision of this Agreement, to the extent there is a conflict between any NItion(s) of an appHable City ordinance, rule, or regulation related to service to Outside Customers and this Agreement, the provisions of this Agreement shall apply. 6.53. The Owner or Distdct shan Ek this Agrwment with the appropriate State or Federal agency, if required under State or Federal law. ARTiaLE VH A©SCELLANEOUS PROVISIONS Section 7.1. INDEMNIFICATION. 7alelo TO THE EXTENT AILOWED BY LAW, D]SIRICT AGREES TO DEFEND. nVDEAavWY, AND HOID DENTON, ns OFTICERS, AGENTS, AND EMPLOYEES: HARMIIESS FROM ANY lIABDLrw IN CLAIMS, ADMUVISTRATWE PROCWDBfGS OR LAWSUITS FOR JUDGMENTS, PENALnES, FUVES, COSTS, DEFENSES AND ATTORNEyS FEES FOR PERSONAL INJURY (INCLUDING DEATH), PROPERTy DAMAGE, OTHER HARM FOR WEHCH RECOVERY OF DAMAGES IS SOUGHt, SUFTnRnD BY ANY PERSON OR PERSONS, OR FOR VIOLATIONS OF STATE OR FEDERAL LAWS OR REGULATIONS, THAT MAY ARISE OUT OF OR BE OCCASIONED BY: (A) A BREACH OF nHS AGREEMENT BY DisiRia; (B) TW NEGLIGENT ACF OR OBHSUON OF DISTRICT DV un PHRFORMANCE OF TEns AGREEMENT OR Pg DISTRICT’S OPERATIONS; OR (C) THE CONDUCT OF DISTRICT THAT coNSTTruTES A VIOLATION OF STATE OR FEDERAL City of [Raton Uality Swia Agree:ant Page 10 of30 018151.00CXi01\493C>661&41CH.v2 LAWS OR REGULATIONS OR OF PERh£rl PROVISION& HOWEVER, THE D{DEMWW STATED ABOVE SHALL NOT APPLY TO ANY LIABBLIFY RESULTWG EXCLUSIVELY FROM THE SOLE NEGLIGENCE OF DENTON, ns OFTICERS, AGENTS, EMPLOYEES OR SEPARATE CONTRACTORS. 7.12. UV THE EVENT OFJOEW AND CONCURRRVG RESPONSEBILrw OF THE DISTRICT AND DENTON, RESPONSEBILIW, n ANY, SHAIL BE APPORTIONED COBIPARAHVELY UV ACCORDANCE wrIH TIE LAWS OF THE STAIE OF TEXAS, wrIHOur WAIVE(G GOVERNMENTAL nnruNrrY OR ANY OTHER DEFENSES OF THE PARTI®S UNDER APPLICABLE TEXAS LAW. 7.13. NOTEWG W THS SECTION 7.1 REQUIRES DENTON OR DISTRICT TO ASSESS OR COLLECT FUNDS OR TO CREATE A SB{HNG FUND. 7.1.4. OWNER AGREES TO DEFEND, n{DEBUVEFY, AND HOID DENrON, ITS OFFICERS, AGENFS3 AND EMPLOYEES9 HARMI IESS FROM ANY LIABILITY IN CLATMSI ADMQaSTRATrVE PROCEEDPiCS OR LAWSurrs FOR JUDGMENrs,PENALTWS, EWES, COSTS, E)aPHVSES AND ATTORNEYtS FEES FOR PERSONAL BVJURY (INCLUDDIG DEATH), PROPERTY DAMAGE, OTHER HARM FORwmcH RECOVERY OF DAMAGES IS SOUGW, SUFFERED BY ANY PERSON OR PERSONS, OR FOR VIOLATIONS OF STATE OR FEDERAL LAWS OR REGULATIONS, nEAT MAY ARISE OUT OF OR BE OCCASIONED BY: (A) A BREACH OF nHS AGREEMENT BY OWNER; (B) THE NEGLIGENT ACT OR o&nsslON OP OWNER, as DBRECrORS, AGENTS, EMPLOYEES, OR SEPARATE CONtRACTORS UV Tm PERFORMANCE OF TIns AGREEMENT OR DV OWNER’S OPERATIONS; OR (C) THE CONDUCT OF OWNER, ITS OFTICERS, AGENTS, EMPLOYEES OR SEPARATE CONTRACTORS THAT coNSTrrtrrES A VIOLATION OF STATE OR FEDERAL LAWS OR REGULATIONS OR OF PERMrr PROVISIONS. HOWEVER, THE BVDEB©wrY STATED ABOVE SHAIL NOT APPLY TO AIW UABBrry RESUUWG EXCLUSIVELY fROM THE SOLE NEGLIGENCE OF DENTON, ITS OFTICERS, AGENTS, EMPLOYEES, OR SEPARATE coNiRAcroRS. Section 72, Force Maiew& in the event any Party is rendered unable by force majeure to wry out any of its obligations under this Agreanerrt, in whole or in part, then the obligations of that Party, to the extent affected by the force majeure shall be suspended during the continuance of the inability, provided however, that due diligence is exercised to resume performance at the earliest practical time. As soon as reasonably possible after the occwnnce of the force majeure relied upon to suspend performance, the Party whose contmctua] oblig,ations are affected thereby shall give written notice and full lwticulars of the force majeure to the other Party, shaII provide w@kly written updates denribing its efforts to mitigate or cue the force majeure condition(s), and shall provide written notice at the time that the force majeure conditions have ceased The cause, as far as possible, shall be remedied with all reasonable diligence. The term “force majeure” includes acts of God, stHkw, lockouts or other industrial disturbances, acts of the public enemy, orders of the government of the United Stat© or the State of Twas or any civil or mHitaIy autltodty, iaswncdons, riots, epidemics, landslides, lightening, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, restraints of government and civil disturbances, explosions, breakage or accidents to equipment, pipelines or canals, lwtial or complete faihrnofwater supply, epidemic, pandemic, and any other inabilities of either Party to be able to lnrfonn, whether similar to those enunaated or otherwise, that are not within the control of the Party claiming the inability and that could not have been avoided by the ex©cise af due diligence and care Sectioa 73. Term of Agreement Ths Agreement shall commence on the Effective Date and shall end, unless terminated, when the actions necessary to effwtuate the purposes and banK of this Agnanent are completed. City of IbnkIn Utility Service Agrwmaa Page 110f30 018451.ac)o001\493(>661&oloav2 Section 7,4, Termination. 7.4.1 The City, at the City’s option and without prejudice to any odIn ranedy City may be entitled to at law, in equity, or elsewhere und© this Agreement, may terminate this Agreement in whole or in part for breach that is not cured in compEaace with Section 7.6 or for non-appnptiadon larder Section 724. 7.4.2 Notwithstanding any other provision of this Agrwment, this Agnanent shall terminate if after eight (8) ynrs eOIn the Effocdve Date Wadline’) (i) constnntion of the Water Facilitia is incomplete; (iD dedication of the Water Facilitiw to the City has not occurred; or (iiD conveyance ofGroundwatn Rights fran the Owner to the City has not occwred pwsuant to Article V. 7.4.3 if this Agreement is terminated pursuant to Swtion 7.4, all Offsite Watu Facilities consaBCted, including any portions partially constructed, shall nevatheless be dedicated to the City by Owner and/or District without comparsadoa by an appnpdate legal instrument approved by the City Attorney along with any associated easements and rights of way. 7.4.4 The Deadline under Section 7.4.2 may be extended no later than one (1) year prior to the Deadline, without &iggedng the termination of this Agreement, by written consent of Dalton’s City Manager. Sutioa 75. Addrwsa and Node& Unless otherwise provided benin, any aod®, communication, request, reply or advic8 (herein severally and collectively, for convenience, called 'Wotice”) herein provided or permitted to be given, made or accepted by any party to any other fuRy must be in writjng and may be given or be served by d€poshing the same in the United States mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested. Notice deposited in the mail in the manner dacHbed above shall be conclusively deemed to be effective upon r@eipt, unless otherwise stated herein. For the purposes of notice, the addressed of the parties shall, until changed as hereinafter provided, be as follows: If to Denton, to:City Manager City of Denton 215 E McKinney St Ihnton, Twas 76201 If to the District, to:Sanctuary Municipal Utility District No. 2 of Denton County c/o Coats Rose, P.C. 16000 North Dallas Parkway, Suite 350 Dallas, Texas 75248 Aan: Mindy L. Koehne If to the Owner, to:TCCI Sanctuary, LLC 14675 Dallas Parkway, Suite 575 Dallas, Texas 75254 AHn: Tommy Cansler The parties hereto shall have the right from time to time and at any time to change their respectiveaddressH and each shall have the right to spwi8' as its addless any other address by at least fifteen ( 15) days’ prior written notioe to the other parties hereto. Section 7.6. Bruch. If a Party br%ches any term or condition of this Agreement, the non-breaching Party shall provide the breaching Party with notice of the breach. Upon its receipt of a notice of br%ch, the brushing Party shall have sixty (60) days to cure the bruch. If the bnaching Party does not cue the breach within the sixty (60) days, the nonbreaching Party shall have all rights and remedies at law and in equity including, without limitation, the right to enforce specific performance of this Agreement by the breaching Party and the right to perform the obligation in question and to seek restitution for an damages incurrzd h Civ oflktl©n Utility Snh Ag:eanea£ PIgs 12 of30 018451.000001\493046184)106.v2 connection therewith. However, this Agreement may ally be terminated due to breach as stated in Secdon 7.4.1 Section 7.7, Survival of Certain Rjghts and Obligations. Notwithstanding any provision of this Agrument to the contrary and without limitatiaI of any other provisions of this Agrwant that q)wtO srwival of rights and obligations, all rights and obligations of the Parties urdu this Agreement which by their nature are intended to survive including, but not limited to, those listed below shall stuvtve: & Section 3.11 Development Contracts for Public Improvmrents and Bonds; b. Section 3.13. No Grant of Equity or Ownership; c. Section 4.7. No Conveyance of Water Rights; d. Section 4.8. No Continuation of Services; e. Section 6.3. City Permits and Regulatory Authodzations; t Swtion 6.4. Certificates of Convenience and Necessity and Extraterritorial Jurisdiction; g. Section 7.1. Indemnifiation; h. Section 7.9. No Third.Party Beneficiaries; i. Section 7.12. Nonwatver and Remedies; and j. Section 7.16. Venue; and k. Section 7.20. Necessary Documents and Actions. The provisions of this Agreement are sevemble, and if my word, phrase, clause, sentence, paragraph, section, or odIn part of this Agreement or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to tB invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such word, phrase, clause, sentence, paragraph, section, or other Party of this Agreement to other persons or circumstances shall not be affected thereby and this Agreement shall be construed as if such invalid or unconstitutional portion had never been contained therein. The Parties agree that they have equally participated in the drafting of this Agnement with the assistance of legal counsel, and that neither Party shall receive any benefit ofintupwtation of its terms on the basis ofwladve contribution to the drafting process. r8bili Section I.Sq MWBl=?lrtM@aaILq This Agreement is solely for the benefit of the Parties hereto, and no other person or entity has any right, interest or claim under this Agreement nor shall be considered to be a third-party beneficiary. Section 7+10, Caption& The captions of the various swtions ard paragraphs herein are intended for convenience or reference only and shall not define or limit any of the terms or provisions hereof. Section 7.11. Governmental ImmunitY Not Waived. Neither Denton or the District waives, nor shall be deemed hereby to waive, any immuliV or defense that would otherwise be available against claims made or arising from any act or omission resulting from the Agreement Section 7.12, Nonwaiver and Remedin. 7.12.1. A Party’s right in the future to demand strict compliance and performance under this Agreement is not diminished because, whether through decision or oversigrt, that Party has not enforced a provision of City oflhn&xI Utility Swin AgnanerR Page 13 of30 01 8451.OtXl€X)l\493(>661&4106.v2 this Agreement or has not enforced breach or nonpaformance in the past, whether peHodically or for long duration Also, a Party’s right in the future to demand strict compliance and performance with this Agreement is not diminished tncause, whether through decision or oversight, the other Party has not enforced tIn same or a similar provision of this Agreement or dms notenfuee the sale or a similar breach or nonperfoananc% whether periodically or for long duration. To the extent a ridit or benefit hI this Agreanent is expressly waived by a Party such waiver will not be applied other than strictly in accordance with the conditiars expressed in such express waiver and will not be implied to be continuing in natur! 7.122. Except to the extent expressly provided otherwise, all remedies exis6ng at law or in equity may be a%ned of by the City and shall be cumulative hcludiag, without limiation, specific performance, and the City shall be entitled to any reasonable attorney’s fees, costs, or othu expenses incurred in bringing or defending any action, as may be awarded by a tribunal ofcomlntent jurisdiction. Section 7.13. Entire Agreement This Agreement, including any exhibits and/or addendums attached hereto and made a part hereof, and the Ihvelopment Agr@mart effective on February 4, 2025 and its exhibits and/or addendum$ constitute the entire agnemaK between the Parties relative to the subject maRu of this Agreement. All prior agreements, covenants, representations, or warranties, whether oral or in writing, between the Parties are maged herein. Section 7.14. Amendment. No amendment of this Agreement shall be effective unless and until it is duly approved by each Party md reduced to a writing signed by the authorind representatIves of the City, District, and Owner respectively, which amendment shall irnorpomte this Agreement in every particular not othuwise changed by the amendment Section 7.15. Governing Law. This Agreement shall be construed under and in accordance with the laws of the State of Texas and all obligations of the Parties are expressly deemed performable in Denton County, Texas Section 7.16. Venae. Any action at law or in equity brought to enforce or hrteQret any provision of this Agreement shall be brought in a state court of competent jwisdiction with venue in Denton County, Texas. Section 7.17. Sue assets and Assjgns. This AgnanaR shall be binding on and shall inure to the benefit of the Parties and their successors and assigns. Section 7.1& Aninrnent The rights and obligAtions of the Owner and/or District hereunder may not be assigned without the prior written consent of Denton’s City Manager. Any assi@ment oC or attempt to assign, rights, or delegation of duties under this Agreement without the consent of Denton’s City Manager is void. No assignment by Owner or District shall release Owner or Disajet from any obligations, rights, title, or interests WIder this Agreement or fIDm any liability that resulted from any actor omission by Owner or District, unl®s the City Manager approves such a release in the written consart provided by the City Manager. Section 719. Counterparts. This Agrwment maybe executed in multiple oounterparts, which, when taken togethu, shall be deemed one original. Section 720. Necenaw Documents and Actions. Each Party agrees to execute and deliver all other and furthn instruments and undertake actions as an or mw Income necessary or convenient to efrectuate the purposes and intmt of this Agreement Section 721. AuthoritY. B' execution ofthisAgrumm on its behal£ each Party npresmts erat it has full capacity and authority to grant all rights and assume all obligations that it has granted and assumed under this Agreement, and that this Agreement has been authorized by its governing body. TIle Parties reprwent and warrant that their respectIve signatories to this Agreement have corporate or organizational authority to exwute this Agreement. Section 722. Form 1295. Submitted henwit& ifnquind by applicable law, is a completed Forin 1295 generated by the mas Ethics Cohrmission’s (“TEC”) electronic filing application in acoordance with the City of [brIton Utility SavinAgmarent Pw 14 of 30018t51.CX3(>001\493(b6618+)kH.v2 provisions of Section 2252.A)8 of the Texas Government Cale and the rules promulgated by the TEC (the Worm 1295’). The City hereby confirms rneipt of the Form 1295 from Owner, and the City agrees to acknowledge such form with the TEC through its electronic filing application not later than the 30th day after the rneipt of such form. TIle Parties understand and agree that, with the exception of information identj8ring the City and dn contract identification nunber, neither the City nor its consultants are wsporrsRile fa the information contained in the Form 1295; that the information eontailwd br the Form 1295 has been provided solely by OwneB and, rather the City not its consultants have verified such information. Section 723, Certifiutions. 7.23.1. PwsuarR to Texas Government Code Chapter 2271, as amended, Owner verifies that at the time of execution and delivery of this Agreement and for the term of this Agrwmenl nehhu Owan, its parent companies, nor its common40ntrol affiliates cwrently boycott or will boycott Israel. The term “boycott Israel” as used in this paragraph has the meaning assigned to the term “boycott Israel” in Section 808.001 of the Texas Government Code, as amended. 723.2. Pusuant to Texas Government Code, Chapter 2252, as amended, Ownn repnseats and vuifies that at the time of execution and delivery of this Agreement and for the term of this Agreement, neither Own% its parent companies, nor its common40ntrol affiliates (D engage in business with Iran, Sudan, or any foreign terrorist organization as desaibed in Chapters 806 or 807 of the Texas Government Code, or Subchapter F of Chapter 2252 of the To£as Government Code, or (iD is a company listed by the Texas Comp&o IIu of Public Accounts under Sections 806.051, 807.051, or 2252.153 of the Texas Government Code 7.23.3. Pursuant to Chapter 2276 of the Texas Government Code (as added by Senate Bill 13, 8Th Texas Legislature, Regular Session and redesignated by House Bill 4595, 88'h Texas Legislature, Regular Session), Owner certiaes that it is not a Company that boycotts energy companies and agrees it will not boycott energy companies during the term of this Agreement, The terms “boycotts energy companies” and “boycott energy companies” have the meaning assigned to the term “boycott enugy company” in Section 809.001, Texas Government Code. For purposes of this paragraph, “Company” means a for-profit sole propdetorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability pwtnership, or limited liability company, including a wholly owned subsidiaty, majority- owned subsidiary, parent company, or affiliate ofthose entities or business associations, that exists to make a profib but does not include a sole propdetorship. 7.23.4. Pursuant to Chapter 2274 of the Texas Government Code (as added by Senate Bill 19, 8Th Texas Legislature, Regular Session, “SB 19”), Owner cenifie that it is not a Company that has a practice, policy, guidarue, or directive that discriminates against a firearm entity or firearm trade association and agnes it will not diwHminate against a firearm entity or firearm trade association during the term of this Agreement. The terms “discriminates against a firearm entity or firearm trade association” and “discriminate against a firearm entity or firwm trade association” have the meaning assigned to the term “discriminate against a firearm entity or firearm trade associatiorP in Sectiar 2274.001(3), Texas Governmmt Code (as added by SB 19). For purposes of this paragraph “Company” means a for-profit organization, association, corporation, p©tnenhip, joint venture, limited paanership, limited HabiHty partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entitin or busines associations, that exists to make a profit, but does not mean a sole pmpdetonhip. 7.23.5. Owner futher certifies that, notwithstanding anything contained in this Agreement, the npnsentations and covenants contained in this Sectiar 7.22 shall survive termination of the Agreement until the statute of limitations has run. Tbe liability for breach of the npnsmtations and covenants contained in this Section 7.22 during the term of the Agreement shall survive until barred by the statute of limitations, and shall not in liquidated or otherwise limited by any provision of the Agreement, notwithstanding anything in the Agreement to the contrary. City of EhIROn Utility Sew@ Agreement Page 15 of 30 018451.000001W93066184)106.v2 Section 724 Noa.ApDr9priadon. Notwithstanding any provisions contained herein, the obligations of the City under this Agreement are expressly contingent upon the amilability of funding for ucb item and obligation contained herein. Neither the Owner or the District shall have a right of action against the City in the event the City is unable to fUlfill its obli@dons under this Agreement as a rwult of lack of sufficient fund@ for any itan or obligation from any www utiliad to &IId this Agreement or failwe to budget or authorize funding for this Agreement dwing the cwrent or future fiscal years. If the City is umble to fulfill its obligations under this Agrwment asa nsult of lack of sufficient funding, or if funds become unavailable, the City, at its sole discretion, may provide funds &on a separate source or may terminate this Agreement by written notice at the eadiwt posH)Ie time prior to the end of its fiscal yen. Section 725 Reservations of Capacjty. Any raer%tion of Water capacity by the City stated or implied by this Agrwmart shall not tn construed to extend beyond the lkadlin€, uaw the Deadline tmd© Section 7.4.2 of this Agreement is extended pusuant to Section 7.4.4 of this Agreement in which case any stated or implied reservation shall only extend for the period consented to by Denton’s City Manager. IN wrFNESS WHEREOF, the Parties hereto acting under authority of their respn6ve govaning bodies have caused this Agrwnent to te duly wwuted in several counterparts, each of which shall constitute an orighral, all as of the day and year fiN atnve written, which is the Effective Date. [SIGNATURE PAGES FOLLOWI City of Ibn&n Utility Senia AgruaM Page 16of30 018451.CX)0001\493Cb6618q)106.v2 crrY OF DaYTON Sara Hmsle% City ATTEST: hPn ,IIz@:Ik- Lauren Thodetr, Cily Secretary APPROVED AS TO FORM AND IEGALrrY: Mack Reiawand, City Attorney a CiV of [b8&n UtHity SwRs A8reama Pw 17 of30 018t51.(X)(XX)l\493t>4618<)106.v2 DISTRICT ~ President,-aoard ofDireitors',/r APPROVED AS TO FORM AND LEGALITY: D HrtVIT+ Z Attorney for the District City ofEkntan Utility Sewin ABnement Page 18 of30 018451.000001 \493(K6 18q)I06.v2 OWNER TCCI SANCTUARY, LLC, a Texas limited liability company By:TCCI Development Group, Inc., a Texas corporation its Manager Name: Tommy Cansler Title: President City of[knlon Utility Swioe Agrwmera Paw 19 of30 018451.00000 I\493h661&OI06.Y2 EXHIBIT 'W, THE PROPERTY DENTON COJ'J- y , TEVX3 54: a 3 ACRE SO .!'i:\i= ’ DESCRtoTICFl Jb , 31 :::4 Sheet : :f 3 :+ ng 562 99 nes out e' th S J. In're, Su-bef. i&5tract Plo tIljI. bang a part and $ut of a ca' += SH> 958 ea+ tna de3aIM Irl deed at Tact ! to r . young und & cattle. H>. t+cotded ll lutran ent to :OD3.:93976. OBcla' Pal €aeco rdS. Denton COU' tI -e.as ,a P.R D C T 1. a oled I! !.: acre traIt descn5ed in d++: to i yOUR: usa & cattb ro. recorded in instrument no :or&!all’. lo pea c - I ard a a' ea I1 :6 age tr&taf dex'hed in deed tar young land & cath. no. recorded in Instrument tO :3===OUT (QPR De 7 . ad 56: 99 acre tract nIng more pan':y :’ . :t::1 bed b+ mats nd tH'Jn{is as foIIo Al &tIrana; at r P- nrg ie: /. ,In:l = d stoner PCIad said WIn! being :-+ souelu3a corner Of sale no 951 A'+ t'aIt be a: the : : atFleast corner O' ths 56: 99 age tract. h:: :':= = =L:- i :'’S: 3= West a dtStJr= of 5.597 tO bet to a part Tv the Ic .? a+3 t =x=n+' c‘ ss 3 54: B14 SHe un, nra re :: ''-&a3: mrer :#eRS 3l82 GB &a+ u&e THENCE ::all C'S '15 : f' ff+st, 3 : :':tqa a4 1 365 53 re: t) 3 4ne a:rH post !:bs 3 THENCE Heal :t: 'Cl:' :: fJest 3 e f_nee 84 eco aT fe+! to 31/Z•Hh iron rod stamped ' 'QPOGF£9H c ' set: THEIICE \:=1 :': 'C' :t- ';•'+s•_ 3 c ri'lee 3+ +-5 ' 3 fee: to a 1 ':-u-i iron -o= stamped P'WCF' C : F= ;A C ' set, TH=• iCE ' all ':1: 11 :-+e ' '&": :• J C :•J = :e :+ B! ; 18 feet tD a 8+noe a>Her pOSt bsd Tq:NeE 'J='tlC+= ': • '+e- lb'est 3 c =iaN Qe StS ;'! feet in 3 1 =.ncl iron ’&aswnped -CPGGPAPH.C ' ie:. TH:FjeE : :LIb : :+t : : S : ' ;itS: 3 JIK3r nof : f 9: feet tO 3£':olnch iron loa Ze + ’ 6 THE' iCE Nun :,:"IT14' Eis: 3 dlst3n\n d ? :a: 07 4et to 3 1 &lxh -cl red bund T-:-i :: :=b'r e7'Tt's3' asl 3 c ::in:+ =f :-1 ++he: ba 1 :- a:l roared stamped -CF CCP:oH C' set, TJ:':C: SH$ C':'':' :: ='+st 3 3 :oral d ;It CO ++t :a & I ’:qneh rH rod 8 tampa -c?car;hrH C' set. THEt:!:= = =by :79l::1' €3SL I C 3:Jn :e d (I? 53 aUt DJ 1 I'll:h ron Ii I Ran Fed noDeoGRAPH CS :et THErICE Sober CO::$'53' sPjest a $sUre+ d 733 53 +++t SO a 1 :nInth reI red kuN! TH:riCE ::In? :;'5e':9' Fast 3 c une :+ A. ' e h+: b 3 %.:+ erw Ba: ':b- i THai(;E • ic :lo1'33•+e- bit 3 3 sun :+ d t .::5 := 'et tD a t ' I.IRb rel 1(XI 'oJnd b:':':E : :t=' :7':t'• !' bst 3 C s=+- :? of :H.3: feet to 3 GOOGle:e - .: -. -'+r:faJrd. THE':::E Sab:F C•'3C 3:' &43: a 3 :a' :qd 791 iS zee: :D 3 1 :•Il:h r:r ted loutH T- :':':E : :a :51 S;'$t' bst 3 c :u- :+ =f ' ye ?: h+: to 3 L :'nch i'm '3<1 hInd TH :%ICE SaLt C• ! ! ! :+' A’+st 3 d :an Hd 7:: :' 4eet Bal /:qnCh ffH red foul:d Tq:NCE 'I:'=1 331:a:7 :]it 3dsun x d +43- 01 qe$tH af+a .= T+' :cs: 'c +- : V =? It:: : :by 00'0:'33' bst 3 c 5:3- :T of +:CO 7S feel to the pont o' =+! laIn: 3IJ c= n:311ni 56: 99 Bats of land A teaanSS, dIS'Jr':+3. HI :RCS f =lies :tHU qX nefein He gad. bone bHa ++ T+ .ss CQcrdr3te $7sem ef '@3 l::Nn'€- / Teas SURe = 5-+ Ca:xlgrate Syseml. Path Generat ::c+. in US S.ney Feet City oflX:nton Utility Suviu Agreement Page 20 of 30 018+51.O£X)tX)IW930.6618{)106.v2 EXHIBIT “B” WATER STUDY Exhibit B - Water Study Sanctuary D©velopment Water Analysis - Rct;sed Denton, B3xas EMSER 202 + Prepared By: Kimley » f"§orn 8tll t'lun) Street. L nil #II. Ste. 1300 FoR \\ t>nh. [chas 76 ID: FBPL \o. F.938 NII..\ \o. 068301401 For: City of [hIlton Utility Service Agreement Page 21 of30 01 &ISI.0(X300 l\+930-6618<i106.v2 F-By©ll©]r dunn UUP TIle proposed S8ndLOrydevelOprnelt is located southwest of the US 380 ard F.M 156 htersection outsIde the wlwae IImits of the CIty of Denton (CIV-), but within City of Denton eHraterHtonal jurisdiction {ETJ Drvi80n 2). Klmley+inn (KH) performed a hydrauIIC analysIS to determine Impacts to the CIty of clanton's waer system and rnfrastrudwe required to serve the proposed Sanctuay Develo;xnent TIre devek>[xnent IS comprIsed of appnHmateFy 3 300 single famIly units and 3CX3 rruKI.bmity units. as well as 5 4 acres of retaIl and 7 S acres of amenity centers Bebw IS an ©hIDd shOWIng the location Of the proposed development The analysIS was performed n accordance WIth Ihe CIty of Denton DesIgn CrXena Manuar dated July 2024 r . Fat j \Ill. \! J ’gr #!; ,.l€'.' .': ifiFbi Ts LocatIon Map Exhibit VV/n\ltR DEMAND LOAD Pf<OJ'ECTIONS As part of tIn water analys6. Klmley.Horn assessed the Magmunl Day + Fire Flow and the Peak Hour senari® as required by the Term CaTImis310n an Enuranmerial Quality {TCEC>) Kbnley.Horn assessed the peak Rows h the water system wir8 the existing water system mtHel prov}ded by the City as part of the Legends Ranch water study in May 2019 Kbnby-Horn used the blOWIng as5umphons far water demands per the current model. IndUStry standards. and the City of Denton Water and Wastewater Crltma Manual dated July 2024 • • 3.2 people per srrBlblamity unIt 3,300 unIts in the single+amity development 160 9albrts per capIta per thy for avuage waterdanand 2.0 average day to maxrnurn day water demand lnakirB factor 1.5 maximum day to peak hour water demand peaking factor Sar'-tuar) '.' XP £ni ,,soReaseg tJS•+€nb€t + : : : XH Frcj€= F,uv: r ':? 331:al City oflknion Utility Savioc AgncmcrH Page 22 of 30 018+5 1 .0CX)(X) 1\4930461 8{)106.t2 USIng the above assumptions. Kimley Hera calculated the MowIng Table t - Water System Demands Sanctuary Development 3,300 1,278 2.556 3.834 i Baker Tract (By Others)607 216 432 !. 132 648 Legends Ranch Ph 6 [By Others) 1 73 66 198 Total 4.080 1.560 3.120 4.680 Additonally. Kimby.Horn analyzed the manmum number of connectIons of the prqrosed 30 lransrnlSSon main Dunng thIS analysis Kimby-Horn determIned the proposed W transmISSIon main can aocommaiate an additbnal GBa singh family equivalent {SFE) connnlnns Calculated deatands are show in Table 2 bebw: Table 2 - Water System Ultimate IDemands 4.740 1 ,722 3,444 S,166 Sarc:uaQ \\ae' &’a ,= = . Reused 'I . .:-' L,' 292.: <Fl ;•' :: F+LmB' :$83 . '43: City of tX:nUn Utility SeNia AgnemerR Page 23 of 30 0 18+51.O€X)00 l\493Cb6618-0106.v2 WATER ANALYSiS Based on the arnty9s. the Sanctuary Development ulllmatety win requIre the fOllOWIng imprwemenls to the ocisting water system: a One {1) 3Cblnch water IIne from Northwest EST to the Sanctuary Cbvebpment • One (1) l&Inch waler line through the Sanctuary Development Klrnley.Horn assessed two different scenarbs Pea Hour and MaxImum Day + FIre Flow The maJel receIved korn the CIty InclUded 2018_MAX_DAY_EPS and 2018_MD_FIREFLOW seen&os DIurnal patterns were appIIed to all demand nodes in the exbtlng models The exIstIng water model has three bUIlt- In dlumd curves The 2a18_DIURNAL_CENTRAL wu utdzed for this popeHed development ThIS development IS ultImately proposed to receive water from the Northwest Pressure Plane DurIng analysIS. It was 8ssurned that the Northwest Booster Pump Statnn and Northwest 36' Wbter Transrnnslan main are a:live and in.service Both praIects are currently under construct}on with an antIcipated CompletIon of Spring 2024 AdditbnaHy t was assumed that no Finished floor elevation woutd be above 760 ft if any homes or buIldIngs are constructed ot>we the 760 R elev8ton then a 24.inch water bae throqh the Sanctuary Development WIll be requIred PEAK HOUR APg,A.LYSIS For the Peak Hour scenario. Klmley.Horn added the proJected Peak Hour demand to the prqnsed nales as desert>ed above Kirnley.Horn then ran the Maximum Day Extended Phase S#nulatnn (EPS) The peakIng tndtced in the Maximun Day EPS nextel run simulates tho Peak Hour event KInky-Horn compared rnodel results both tnfb@ and after the devebprnent TCEQ requbB that a mInimum pressure of 35 psi be maintaIned in the water sySem dunng peak flow events Comparing the tnfore 8nd after ultImate Peak Hour results. there are no new additIonal nodes that drop below 35 psi in the ultrnate demand condItIons for the proposed development. the k>west pressure is 39 psi. WhICh exceeds the requIred 35 pSI IMAWWFa D.AV + FIRE FLOW ANALYSIS The exIstIng IncxIel Inclucbs a 2018_MD_FIREFLOW scenarb thaI calculates avabble IFe flow at varIOUS ncxhs IhrougraUt Ihe Cdy's water system Tbis wouU roughly gmulate a Maximum Day + FIre Flow Analysis. Kimley.Horn added the baseline demands of the proposed developmult in ncxles to the model and added these nodes to the fIre lbw IISt to calculate avaIlable fire now TCEQ reqUIres that a mlnhnum pressure of 20 pSI be maadartH in the water system durIng ire flow events After development demands are added. no addRion81 nodes fall below the required fire now threshold in the ultimate demand coalitions for the proposed development the lowest pressure wn exceed 23 psi whlle lleeting fire lbw dernands Tbese pressures meet the minirnum TCEQ criteria. Sndury Walw Andy ds . Re\IsH tIDJem3e’ = = = = (e Pa;e= 1, ,ITN' :€Bt:'4C' CIty oftknton Utility Service Agreement Page 24 of 30 0 1 8+51.C>0CX)01\4930461 8{)106.v2 cob'JIaN;S Per our analysis. Ihe proposed infrastructure satisfies the Peak Hour and the Max Day + Fire Flawscernrio s tar the proposed development The hndhgs of thiS water capacity analysIS are swnmanzed in Table 3 below Table 3 - Water System Analysis Min. Pl%gUn ' F/ - * : Th-!'gure Peak Hour MaHmurn Day + 39 23 -+ 91 88 As demonstrated in the flndwr9s d>ave. the Denton water systern and Northwest Pressure Plane can accommodate the plansed Sanctuary devekpment with the fdlavaag lnkastructure fnpmvements • 8 e CIty of Denton Northwest Booster Pwlp Station constructIon complete CRy of Denton Northwest 36.Inch water line COnStrUCtIOn complete Proposed 30.Inch water man IIam Northwest EST to Sanctuary Development construeled Proposed 1&Inch water main throughout Sanctuary Devek4rment constructed No finished fk)or elevation within the Sandu8V Dwebpmenl IS greater than 760 ft Sal£:uaV 11\’a£P Aqa )S'S • Reuse: t;=+pte' :0:1 F + P•c,ec h’.n:€• :':3337:a' City oftknton Utility Service Agrvanent Page 25 of 30 018451.tX)0001 '.493t}6618<)106.v2 UH +C :+ 1 d a • r - ' Ii 9a a f i I d City ofEknton Utility Scnioe Agreement Page 26 of 30 018t51.O€X)€X)l\49304618+)106.v2 ESTIMATED COST OF CONSTRUCTION EXHIBIT “C” Exhibit C - Estimated Cost of Construction Kimley'Horn and Assoclltes, InG.OpInIon of Probable Corr$uualon Cost !! ;} :iI: : r : h;r; TR 1C# f A t e 1151 a11iIrI ILII I e Prep,zed OF \\ a f \t::\ I 3 I 5 6 6 89 tC tt: 13 ta IS te IT le 3: 21 11 23 t ,q , : if ,J- le : i? A 3:ef : 1;e:''.}] : tI ' 14 :3: . 30 :: it bBe3tU ; ie : f 03: . 48 C3sIH ti/CXhH TnM CWi Ca 31>50:7 - 48 Cx- IIV CW: ca 33 ta 10 33 ta tO 33 C: C7 33 M 07 33 CS IS 33 l+ tO 33 14 :3 33 ll 20 33 tl 33 33 tJ la 33 14 : 1 1347 13 at 58 13 31 : f t.: 31 :( ti 31 .3 tJ = 93 CO LF LF LF LF LF : A :A EA EX LS =& LS L':, Lb LS LS LFsr SF B & LS sr 55 831)is St =B $ == usa :'': L 1+35CICOSta on :CD a) S: 83: 000 QD SHO aoc ': _ :\3 IJ 333 n 16- G3te . +ieP au \3UI F3314 33: - : ' Gate \uleaD\rat ?33144<H . 4- i .r'I. At Ree3sa t'aibe aM \ \ ' : '14 487 . FIre HJ8raI? Asseow# : 1 ' 1 3% . :+ A3ty Petaa Cawc'- J +lili ;- d:t:bx -fi q Kit . C3tlwcRaectul S,--'e'n )!!q :\)I . ++r{vI I Prqea SgIi ) 157 %)I . g --I i !'. : / / Pe,+r i :r Piin ISA’PPP ' I 3.1:{ ':II ) = SamI ;t +\ ' F J LI :r F'e eFf' tin C+9 re iF ' t i ' ,+ 31: 5 {}II ' R€axl,'e b•:dT- I +'v'3tpr PC .J 'r, if.1l4 ’' '= CNflCes FII:': GDI . S:e FT'_tl'3' .. ' : _-_ Rft3ce=€f3 ’: f 9: t = Tr tf €t : 3l++t it't-:rad leD ; ?tXt - %'r'.7+’ • \ ' ', :a iaIn: j:i:'w'erq ict. -m .Twp ' . ’ :''_t E3semen: F:i{H"ePt qC@J81t©n COFVnr S,'. ':p; toe' FiveU iii ' IF= i:+ 146 . ' : ' .' bIIners 3::f 147 . Loo:alot :. g ’$''-".'i 3?3 tO: ' 30 DIP & ate CarTer Pp s15ax3 US DOO S==) .::O C*: S tO OCD SIDON SIOg ;: ‘ !!=:Csic,Hal ST) III:$ StOCXX3 333 kB tT0800 St SC !. itS D)0 510 on S:: ax3 sin :\\ : : St ) ' ,(m :) St_ ,' m = )St43 000 C'3 SID aoc .::; St:.3 :a: :3 S: :C.: t: }: XI: SO Tr -: „'' DO St8COCQQ $ 35 acc 00 $:\X3 aK : + $33 NC '::Sl aH !.::. CO S- "71a al $]BQX C3 $ 10 ; it,: :: ) ! if ':G .:.) 33 GT 97 33 e{ }$ i: disc; ': : 3 a$3 ,/S.jqITa:1 Cib of lhIlton Utility Servia Agreement PBC 27 of 30 01845 1.ocnoolw93cb661 8{)ICh.v2 E)HUIT 'qD” FORM OF BASEMENT NOTICE OF CONFIDENTIALIW RIGHTS: RF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWHVG RiFORMATION FROM AIW nvsrRUMENr THAT TRANSFERS AN RfrERESr UV REAL PROPERTY BEFORE rr IS FrLED FOR RECORD m THE PUBLIC RECORDS: rYOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER] WATER nASEBaNI THE STATE OF TEXAS COUNTY OF DENrON § g g KNOW ALL MEN BY THESE PRESENTS: THAT , (Grantor) whose mailing address is , in consideration of the sum of ONE DOLLAR and NO CENTS ($1.00) and other good and valuable consideration in hand paid by SANC;rUARY MUNICIPAL UFILITY DigiTRia NO. 2 OF DENTON COUNTY (Grantee), the receipt of which is haeby acknowledged, does by these pnsmts grant, bargain, sell and convey unto Grantee the free and uaintem4>ted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by Grantor and situated in Denton County, Texas, in the Abstlact No. PROPERTY AREA DESaREBED IN EXHEBIT “A” AND ll:LUSTRATED IN F:XHiBrT aBn ALL ATiACmD HERETO AND MADE A PART IDEREOF And it is further agreed that Grantee, in consideration of the bene6ts above set out, will rmove from the property above described, such fanes, buildings and other obstructions as may now be found upon said property. CityoflXntur Ut$ity ServiaeAgrwtneat Rags 28 of 30 018451.00CX>01\493(X661$0106.v2 For the purlx)se of constructing, reconstructing, installing, repairing, and perpetllally maintaining water facilities and related appurtenances in, along, upon and across said preMses with the right and pdvilege at all times of the Grant% herein, his or its agents, employees, workmen and npnsentatives having ingress, egress, and ngres in, along, upon and across said premises for the purpose of making additions to, improvements on and repairs to the said water facilities or any part thermf. This instrument shall be binding on, and iaIn to the benefit of, Grantee and Grantor and their respective successors and assigns. Grantee may assign this msement to any entity maintaining any portion of the said water facilities, including the City of Denton, Texas, without the consent ofGrantor, so long as doing so does not interfere with Grantor’s rights hereunder. TO HAVE AND TO HOLD unto the said Grantee as aforesaid for the purposes aforesaid the lxemisu above described. Witness its hand, this day of , 20_. By:.9 By:. Print Name: Print Title: Cityofthraat Utility SuviuAgnanaa PBe 29 of 39 01 Bt5 1 .0CX>001U930+618<)106.v2 AC}aNOWLEDGMENT THE STATE OF couNIY OF § -g Before me, the undersigned authority, on this day personally appeared d , a Texas limited liability company, known to me to be the person whose name is subxdbed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purposes and consideration therein expressed, in the capacity therein state and as the act and deed of said Given undu my hand and seal of office on this day of .20 Notary Public, in and for the State of My Commission Expires:. Awepted this day of (Resolution No. 91.073). J 20_ for the City of Denton, Texas BY: ArrER RECORDING RETURN TO: Ihvelopment Services – Real Estate Division 401 N. Elm SUeet Denton, Toras 76201 Attention: Mark Laird City oflkatoa tIny Swiu Aw£rrtaB Page 30 of 30 018151.000901 Vt930661&4106.v2