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Ordinance No. 10,798Published in the Baytown Sun on January 21, 2008 ORDINANCE NO. 10,798 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, C)PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS, FOR A LIMITED PURPOSE ONLY TO INCLUDE (I) A 90.2384 -ACRE TRACT NORTH OF NEEDLEPOINT ROAD, EAST OF SH 146 AND SOUTH OF I-10, ALSO KNOWN AS TRACT ONE OF CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 (II) AN APPROXIMATE 500 FOOT STRIP OF LAND ADJACENT TO THE EASTERN RIGHT-OF-WAY LINE OF SH 146 AND BEING A PART OF 150.5783 -ACRE TRACT OF LAND LOCATED SOUTH OF ABBE SUBDIVISION, NORTH OF WALLACE ROAD AND EAST OF SH 146 AND WHICH SUCH 150.5783 -ACRE TRACT BEING ALSO KNOW AS TRACT 3 OF THE CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1; AND (I11) AN APPROXIMATE 500 FOOT STRIP OF LAND ADJACENT TO THE WESTERN RIGHT- OF-WAY LINE OF SH 146 AND BEING A PART OF A 31.5718 -ACRE TRACT OF LAND LOCATED SOUTH OF LYNNWOOD SUBDIVISION, NORTH OF UNION PACIFIC RAILROAD AND WEST OF SH 146 AND WHICH SUCH 31.5718 -ACRE TRACT BEING ALSO KNOW AS TRACT 4 OF THE CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1, WHICH SAID TERRITORIES LIE ADJACENT TO AND ADJOIN THE PRESENT BOUNDARY LIMITS FOR THE CITY OF BAYTOWN, TEXAS. **************************************************************************************** WHEREAS, there being no request for an "on-site" hearing, two public hearings before the City Council of the City of Baytown, Texas, where all interested persons were provided with an opportunity to be heard on the proposed limited purpose annexation of the property described in Section 1 of this ordinance, were held, during the City Council meetings on the 19`h day of November, 2007 and the 13`h day of December, 2007, in the City Council Chamber of the City Hall of the City of Baytown, Texas, which date is not more than forty (40) nor less than twenty (20) days prior to the institution of annexation proceedings; and WHEREAS, notices of such public hearings were published in a newspaper having general circulation in the City of Baytown, Texas, and in the below described territories on the 291h day of October, 2007, and on the 2151 day of November, 2007, which dates are not more than twenty (20) nor less than ten (10) days prior to the dates of the respective public hearings; and WHEREAS, a notice of such public hearings was posted on the City ofBaytown's website on the 26`h day of October, 2007 and on the 2151 day of November, 2007, which dates are not more than twenty (20) nor less than ten (10) days prior to the dates of the respective public hearings and remained posted until the date of the applicable hearings; and WHEREAS, the total corporate area of the City of Baytown, Texas, on the 1 st day of January, 2008, was 34.5 square miles; and WHEREAS, the population of the City of Baytown, Texas, is approximately 71,359 inhabitants; and WHEREAS, the below described territories lie within the extraterritorial jurisdiction of the City of Baytown, Texas; and WHEREAS, the below described territories lie adjacent to and adjoin the City of Baytown, Texas; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the following described land and territories lying adjacent to and adjoining the City of Baytown are hereby added and annexed to the City of Baytown, Texas, for a limited purpose pursuant to the Strategic Partnership Agreement No. 2 between Chambers County Municipal Utility District No. 1 and the City of Baytown, and shall be subject to the terms and conditions of said agreement: SEE EXHIBIT "A" Section 2: This ordinance shall be published and passed in the manner provided in Article 1, Section 9, of the Charter of the City of Baytown, Texas. AYTOy,� RODUCED, READ and PASSED on the FIRST READING i 10`h day of January, 2008. Ci;7y EP . DONCARLOS ayor A : : cn A* . AUF, Oteri'm City C APPROVED AS TO FORM: L CIO �RAMIREZ,ASR., City orney INTRODUCED, READ and PASSED on the SECOND AND FINAL I�'ADING this the day of � �r, 2008. /X\ APPROVED AS TO FORM: dnMCIO RAMIREZ, SR., City ttorney H. DONCARLOS, C� RAKaren\FilesiCity CouncihOrdinances.2008Uanuary 10\Annexation4LimitedPurposesChambersCountyMUDNol.doc 2 ISU60 STRATEGIC PARTNERSHIP AGREEMENT NO.2 CBETWEEN THE CITY OF BAYTOWN, TEXAS, AND THE CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 c THE STATE OF TEXAS § COUNTY OF HARRIS § This STRATEGIC PARTNERSHIP AGREEMENT (this "Agreement") is made and entered into as of the Effective Date by and between the CITY OF BAYTOWN, TEXAS, a municipal corporation situated in Harris and Chambers Counties, Texas, acting by and through its governing body, the City Council of the City of Baytown, Texas (the "City"), and THE CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 (the "District"), a conservation and reclamation district created pursuant to Article XVI, Section 59, Texas Constitution and operating pursuant to Chapters 49 and 54, Texas Water Code. RECITALS WHEREAS, Texas Local Government Code, §43.0751 (the "Act") authorizes the City and certain utility districts to negotiate and enter into a strategic partnership agreement by mutual consent, and the City and the District wish to enter into such an agreement; and WHEREAS, this Agreement provides for the annexation of a tract of land in the District, as more specifically described in Exhibit "A," by the City for the limited purposes of applying certain of the City's ordinances to the Tract; and WHEREAS, as required by the Act, the City held public hearings on November 19, 2007, and December 13, 2007, at City Council Chamber, City Hall, 2401 Market Street, Baytown, Texas 77520, and the District held a public hearing on October 30, 2007, at 7711 Highway 146, Baytown, Chambers County, Texas, and another public hearing on November 19, 2007, at 1415 Louisiana, 5th Floor, Houston, Texas 77002, at which members of the public were given the opportunity to present testimony or evidence regarding the proposed Agreement, and the City and the District made copies of the proposed Agreement available, and gave notice of the hearings prior to the public hearings in accordance with the terms of the Act; and WHEREAS, the City and the District wish to enter into a strategic partnership agreement to provide the terms and conditions under which services will be provided by the City and the District and under which the District will continue to exist for an extended period of time after the Tract is annexed for limited purposes; NOW, THEREFORE, THE PARTIES CONTRACT AND AGREE AS FOLLOWS: Strategic Partnership Agreement," Page I ARTICLE I. FINDINGS The City and the District hereby find and declare: The Act authorizes the City and the District to enter into this Agreement to define the terms and conditions under which services will be provided to the District and under which the District will continue to exist after the Tract is annexed for limited purposes pursuant to this Agreement; 2. This Agreement does not require the District to provide revenue to the City solely for the purpose of an agreement with the City to forgo annexation of the District; 3. This Agreement provides benefits to the City and the District, including revenue, services, and/or regulations which are reasonable and equitable with regard to the benefits provided to the other Party; 4. All the terms and conditions contained in this Agreement are lawful and appropriate to provide for the provision of municipal services; and 5. The City and the District negotiated this Agreement by mutual consent; the terms and conditions of the Agreement are not a result of the City's Annexation Plan or any arbitration between the City and the District. �r ARTICLE II. DEFINITIONS Unless the context requires otherwise, and in addition to the terms defined above, the following terms and phrases used in this Agreement shall have, solely for the purposes of this Agreement, the meanings set out below: "Act" means Texas Local Government Code, §43.0751 (Vernon Supp. 2002) and any amendments thereto. "Agreement" means this strategic partnership agreement by and between the City and the District. "Applicable Ordinances" shall include the following chapters, articles and/or sections of the Code of Ordinances, Baytown, Texas, along with all amendments thereto: ➢ Chapter 4 "Adult Commercial Establishments," ➢ Chapter 42 "Health and Sanitation," ➢ Chapter 82 "Secondhand Goods," Article III "Junk and Automotive Wrecking and Salvage, ➢ Chapter 118 "Signs," Article III "Regulations," Division 4 "Location," Subdivision IV "Off -Premise Signs" along with all other provisions regulating Off -Premise Signs, Strategic Partnership Agreement, Page 2 0 ➢ Chapter 114 "Sewer and Water Line Extensions," Article IV "Impact Fees," and ➢ Chapter 130 Zoning." "Board" means the Board of Directors of the District. "City" means the City of Baytown, Texas, a municipal corporation situated in Harris and Chambers Counties, Texas. "City Charter" means the Charter of the City and any amendments thereto. "City Code" means the Code of Ordinances of the City and any amendments thereto. "City Council" means the City Council of the City or any successor governing body. "City Manager" means the City Manager of the City or his designee. "Comptroller" means the Comptroller of Public Accounts of the State of Texas. "Consent Resolution" means resolutions, including all attachments and exhibits passed by the City Council consenting to the creation of and inclusion of land in the District. "District" means Chambers County Municipal Utility District No. 1. "EDU's" or Equivalent Dwelling Units" means a standardized measure of consumption of water and wastewater systems capacity which is equal to the average flow rate for a single family dwelling unit in the City, as determined by the City Council. "Effective Date" means the date the City Manager signs this Agreement. "Government Code" means the Texas Government Code and any amendments thereto. "Impact Fee" means a charge or assessment imposed by the City against new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development in accordance with Chapter 395 of the Texas Local Government Code. "Implementation Date" means the date the limited -purpose annexation ordinance is passed by City Council pursuant to Section 3.01. "Landowner" means a person that owns real property in the District. "Local Government Code" means the Texas Local Government Code and any amendments thereto. Strategic Partnership Agreement, Page 3 C - "Party" or "Parties" means a party or the parties to this Agreement, being the City and the District. "Resident" means a person that resides in the District. "Sales and Use Tax" means the sales and use tax authorized to be imposed within the corporate limits of the City lying within Chambers County, including, but not limited to, the sales and use tax authorized to be imposed by Chapters 321 and 327 of the Tax Code, Chapters 344 and 363 of the Texas Local Government Code and those imposed by any other district or entity which may be subsequently created by the City which imposes a sales and use tax within the corporate limits of the City lying within Chambers County. "Service Area" means the property within the boundaries of the District as described in Section 6.02 of this Agreement. "Tax Code" means the Texas Tax Code and any amendments thereto. "Tract" means the following property within the boundaries of the District described in Exhibit "A" to this Agreement, which is attached hereto and incorporated herein for all intents and purposes. "Water Supply and Waste Disposal Agreement" shall mean that certain agreement entitled "Water Supply and Waste Disposal Agreement between the City of Baytown, Texas, and Chambers County Municipal Utility District No. 1," dated the 4th day of March, 1996, as last amended on the 14th day of July, 2004. ARTICLE III. LIMITED -PURPOSE ANNEXATION Section 3.01. Generally As soon as practicable following the approval of this Agreement by City Council, as authorized by the Act, the City shall annex the Tract for the limited purposes of applying the Applicable Ordinances within the Tract. The Applicable Ordinances will be applicable to and enforceable in the Tract upon the date of limited -purpose annexation. Section 3.02. Property Taxes and District Liability for Debts of the City During the term of this Agreement, except as provided in Article IV, ad valorem taxes levied by the City will not be levied on taxable property within the Tract. Section 3.03. Municipal Court's Jurisdiction Upon the limited -purpose annexation of the Tract, the City's municipal court shall have jurisdiction to adjudicate cases filed under the Applicable Ordinances arising from actions occurring within the Tract. Strategic Partnership Agreement, Page 4 Section 3.04. Powers and Functions Retained by the District 1 Except as limited by the Consent Resolution, the District is authorized to exercise all powers and functions of a municipal utility district provided by existing law or any amendments or additions thereto. The District's assets, liabilities, indebtedness, and obligations will remain the responsibility of the District during the period preceding any full -purpose annexation. Disposition or acquisition of additional assets, liabilities, indebtedness, and obligations will be governed by the Consent Resolution. ARTICLE IV. SALES AND USE TAX AGREEMENT Section 4.01. Imposition of the Sales and Use Tax The City and all special districts or entities created or hereinafter created by the City having within its boundaries the corporate limits of the City lying within Chambers County shall impose a Sales and Use Tax within the Tract upon the limited -purpose annexation of the Tract and upon the imposition of any Sales and Use Tax hereinafter adopted. The Sales and Use Tax shall be imposed on the receipts from the sale and use at retail of taxable items at the same rate as such tax is imposed on the receipts from the sale and use at retail of taxable items within the corporate limits of the City lying within Chambers County. The Sales and Use Tax shall take effect on the date described in Tax Code §321.102 or such other applicable law. Section 4.02. Notification of Comptroller The City shall send notice of this Agreement and the limited -purpose annexation of the District to the Comptroller within three days of the Implementation Date in the manner provided by Tax Code §321.102. The City shall send to the District a copy of any notice from the Comptroller delaying the effectiveness of the Sales and Use Tax in the Tract. Section 4.03. City Audit Rights The District is required by law to prepare an annual audit within 120 days after the close of the District's fiscal year. The District shall provide a copy of its annual audit to the City within 30 days after the audit is completed. ARTICLE V. SERVICES PROVIDED BY THE DISTRICT Section 5.01 Water, Sewer and Drainage Services. The District shall continue to develop, to own, and to operate and maintain a water, wastewater, and drainage system in the District and the Tract. The District agrees to operate and maintain water, wastewater, and drainage service at the same level as the District has operated and maintained them before the Implementation Date; provided that upon development of the Tract, the District shall provide a uniform level of services in the Tract as in other developed areas within the District. The City may periodically inspect the District's water, wastewater, and drainage facilities. Strategic Partnership Agreement, Page 5 G ARTICLE VI. SERVICES PROVIDED BY THE CITY Section 6.01. Enforcement of Applicable Ordinances The City shall apply and enforce the City's Applicable Ordinances within the Tract as more particularly provided in Section 3.01 of this Agreement. Section 6.02. Utility Services. (a) The City shall provide water and wastewater services to the District only for the applicable Service Area in accordance with the Water Supply and Waste Disposal Agreement, as amended in this Section and as follows: 1. Article I "Definitions," Section 1.08 of the Water Supply and Waste Disposal Agreement is hereby amended to read as follows: 1.08 "Service Area" shall mean the area located within both the boundaries of the District as they currently exist on the day of execution of this Agreement and as further described in Exhibit "B 2. Article I "Definitions" of the Water Supply and Waste Disposal Agreement is l hereby amended by adding a new Section 1. 14, which shall read as follows: 1.14 "Tract" has the same definition as contained in the Strategic Partnership Agreement executed on even date. 3. Article III "Ownership, Operation and Maintenance of Systems," Section 3.07 of the Water Supply and Waste Disposal Agreement is hereby amended to read as follows: 3.07 Seepage and Infiltration. The District agrees that it will adopt and enforce written rules, regulations, and provisions to ensure that connections to the System will be such as to prevent as much as feasibly possible the discharge into said System of anything except sewage; and in particular, but without limitation thereto, that no drains shall be installed or connected in such a manner that any rainwater or other surface waters are permitted to enter the District's System; and, in addition, that adequate safeguards will be taken to prevent any abnormal seepage or infiltration or discharge of any solid matter into said System. The District agrees that throughout the term of this Agreement the District will promulgate and enforce an active program to reduce the inflow and infiltration into the City's System. Additionally, the District shall tender to the City a report at least annually on the progress of such program. Prior to the execution of this Contract by the City, the District shall supply the Director with a copy of such Strategic Partnership Agreement, Page 6 rules, regulations, and contracts, including statement of measures designed to enforce such provision. The District shall initiate whatever lawful actions are necessary to disconnect any customer who, following reasonable notice, refuses to remove noncompliant connections. The District will inspect all connections at the time made and continue to monitor the District's System as a whole to detect infiltration and unpermitted connections at least one (1) time per month or as otherwise may be ordered by the Director. The District further agrees to continuously maintain the District's System so as to prevent any abnormal seepage or infiltration or discharge of any solid matter into said System. Failure to do so shall be an Event of Default notwithstanding any payments pursuant to the following paragraph. 4. Article IV "Quantity and Capacity," Section 4.01 of the Water Supply and Waste Disposal Agreement is hereby amended to read as follows: 4.01 General. a. Water. Subject to the terms and conditions of this contract, City agrees to sell and deliver (or cause to be delivered) to the District the District's water requirements of treated water, and the District agrees to purchase from City, the District's treated water requirements, not to exceed 900,000 gallons per day average daily flow, for resale during the term of this contract for water services to be supplied in the Service Area, 0 which consists of a total of 2566 Equivalent Dwelling Units. b. Waste. In consideration of the compensation stated herein, the City shall accept and treat waste from the District and the District shall have the privilege of discharging: 1. waste into the City's System, not to exceed 285,600 gallons per day average daily flow, representing 816 anticipated equivalent dwelling units within the following subdivisions: (a) Sections 1, 2, 3, 4, 5, 6, and 7 of Country Meadows Subdivision, (b) Block A Addition to Section 4 of Country Meadows Subdivision, (c) Block A Addition to Section 5 of Country Meadows Subdivision, (d) Block B Addition to Section 5 of Country Meadows Subdivision, and (e) Sections 1, 2, 3, and 4 of Hunters Chase Subdivision. The District expressly understands and agrees that the City will NOT accept and/or treat waste from the District for Sections 1 and 2 of Pine Meadows Subdivision or any part of the Service Area other than those Strategic Partnership Agreement, Page 7 subdivisions referenced in subsections (a) through (e) above ("Remaining CService Area"), except as provided hereinbelow. Any discharge or attempted discharge of waste from such subdivisions into the City's System, as determined by the City, shall be deemed an Event of Default unless such discharge is in accordance with Section 4.01 (b)(2) hereof; and 2. waste into the City's System, not to exceed 625,000 gallons per day average daily flow, representing the following anticipated connections: Residential Commercial Units Units Sections 1 & 2 Pine Meadows Subdivision 191 EDU's 31 EDU's Remaining Service Area 513 EDU's 1016 EDU's ONLY AFTER the City's completion and acceptance of the Northeast District Wastewater Treatment Plant; provided that the District: ➢ within 365 calendar days of receipt of notice that the Northeast District Wastewater Treatment Plant is complete, to cease operations of the District's wastewater package treatment plant serving the Service Area; ➢ constructs, at its own cost and expense, the necessary appurtenances to connect the wastewater facilities to the City's wastewater treatment plant, including, but not limited to, extending the sewer line from the District's wastewater system in a manner approved by the City Engineer to a point designated by the City Engineer; and ➢ removes its wastewater package treatment plant located on Needlepoint Road within 6 months after the date the Service Area is tied into the City's wastewater treatment plant. 5. Article IV "Quantity and Capacity," Section 4.03 of the Water Supply and Waste Disposal Agreement is hereby deleted in its entirety. 6. Article IV "Quantity and Capacity," Section 5.01 of the Water Supply and Waste Disposal Agreement is hereby amended to read as follows: 5.01 Impact Fees. The District shall pay to the City impact fees, which shall be charged against new development within the Service Area in order to generate revenue for funding or recouping the cost of capital improvements or facility expansions necessitated by and attributable to the new development, pursuant to Article IV, Chapter 114 of the Code of Ordinances, as hereinafter amended. The impact fees may be adjusted from time to time by the City Council and the District shall be required to pay the rate in effect at the time payment is due. Strategic Partnership Agreement, Page 8 7. Article IV "Quantity and Capacity," Section 5.02 of the Water Supply and Waste Disposal Agreement is hereby deleted in its entirety. 8. Article VII "Miscellaneous Provisions," Section 7.13 "Term" of the Water Supply and Waste Disposal Agreement is hereby amended to read as follows. 7.13 Term, This Agreement shall be in force and effect from the date of execution until March 3, 2021; provided that (i) City's contract with the Baytown Area Water Authority for the purchase of treated water in sufficient quantities to supply the District under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged; and (ii) the Baytown Area Water Authority's contract with the City of Houston for the purchase of raw water in sufficient quantities to supply the Baytown Area Water Authority under the terms and conditions in effect at the time of the execution of this Agreement remain unchanged. This Agreement shall be automatically extended for additional five (5) year terms if, and only if, both of the conditions, numbered (i) and (ii), contained in the preceding sentence are satisfied, unless either party gives written notice of termination two (2) years prior to the date of any such automatic extension. However, both parties expressly understand and agree that should any portion of the property involved in this Agreement become annexed for full purposes by the City of Baytown, this Agreement may terminate with respect to such area at the sole option of the City. Additionally, should the City's contract with the Baytown Area Water Authority or the Baytown Area Water Authority's contract with the City of Houston be terminated for any reason or should the City become legally unable to supply the District, then this Agreement shall terminate automatically at the time of such termination or inability. 9. Nothing contained herein or in the Water Supply and Waste Disposal Agreement shall be deemed to allow the District to resell water or wastewater utility services outside the Service Area. The District understands and agrees that any such resell or attempted resell shall be a material breach of the Water Supply and Waste Disposal Agreement. (b) The District agrees that should any portion of the Service Area, that is not included in the Tract as defined by this Agreement or the `Tract' as defined by that certain Strategic Partnership Agreement between the City and the District dated effective June 27, 2005," be developed at any time as commercial property, the District shall within thirty (30) days of the commencement of the development request that: 1. this Agreement be amended to expand the definition of Tract to include such area; and 2. the City annex such area for a limited purpose. (c) The District agrees that should any portion of the Tract, be developed at any time as residential property, the District shall within thirty (30) days of the commencement of the development request that: Strategic Partnership Agreement, Page 9 1. this Agreement be amended to revise the definition of Tract to exclude such area; and 2. the City disannex such area from its limited purpose annexation. (d) All services to be provided by the City herein shall be expressly subject to the payment of the appropriate impact fees, monthly service charges, and all other applicable fees specified in the Water Supply and Waste Disposal Agreement, this Agreement and the City Code. The District shall pay water and wastewater impact fees to the City based upon equivalent dwelling units in accordance with Article IV of Chapter 114 of the City Code, and as may be hereinafter amended. The wastewater services to be provided to Pine Meadows Sections 1& 2 and the Remaining Service Area are subject to the completion of the City's Northeast Wastewater Treatment Plant, which is a capital improvement identified in the City's capital improvement plan. The City has committed to the construction of such plant within two years and to have service available within a reasonable period of time, as determined by the City, which period of time shall not exceed five years. Section 6.03. No Further Services The Parties expressly understand and agree that the City will only provide those services listed in Sections 6.01 and 6.02 during the term of this Agreement. The City shall have no obligation to provide or extend any City municipal services not expressly agreed to herein. ARTICLE VII. FULL -PURPOSE ANNEXATION Section 7.01. No Full Purpose Annexation During Term of Agreement The City agrees that it will not annex all or part of the District or commence any action to annex all or part of the District for full purposes during the term of this Agreement, except by mutual agreement of the Parties. Section 7.02. Full Purpose Annexation Option at Termination of Agreement On or before the third month prior to the expiration of the term or any extended term hereof, the City Manager shall evaluate whether the City should negotiate a new strategic partnership agreement with the District, annex the District for full purposes upon the termination of this Agreement, or allow this Agreement to expire. The City Manager shall make a recommendation to the City Council regarding the negotiation of a new strategic partnership agreement, the full -purpose annexation of the District, or the expiration of this Agreement. If the City Manager recommends that the City negotiate a new strategic partnership agreement or annex the District and the City Council approves such recommendation, the City shall begin proceedings to enter into a new strategic partnership agreement or to annex the District for full purposes at the end of the term of this Agreement as applicable. If the City Manager Strategic Partnership Agreement, Page 10 recommends that the City neither negotiate a new strategic partnership agreement nor annex the District for full purposes, and the City Council agrees or if the City Council rejects the City Manager's recommendation to negotiate a new strategic partnership agreement or to annex the District for full purposes, the City may begin proceedings to disannex the Tract for limited purposes if authorized under the applicable provision of the Local Government Code. If the City decides to disannex the Tract, the City may institute proceedings to accomplish such disannexation to be effective upon the termination of this Agreement. ARTICLE VIII. BREACH, NOTICE AND REMEDIES 8.01. Notice of District's Default A. The City shall notify the District in writing of an alleged failure by the District to comply with a provision of this Agreement, describing the alleged failure with reasonable particularity. The District shall, within 30 days after receipt of the notice or a longer period of time as the City may specify in the notice, either cure the alleged failure or, in a written response to the City, either present facts and arguments in refutation or excuse of the alleged failure or state that the alleged failure will be cured and set forth the method and time schedule for accomplishing the cure. B. The City shall determine (i) whether a failure to comply with a provision has occurred; (ii) whether the failure is excusable; and (iii) whether the failure has been cured or will be cured C by the District. The District shall make available to the City, if requested, any records, documents or other information necessary to make the determination. C. If the City determines that the failure has not occurred, or that the failure either has been or will be cured in a manner and in accordance with a schedule reasonably satisfactory to the City, or that the failure is excusable, the determination shall conclude the investigation. D. If the City determines that a failure to comply with a provision has occurred and that the failure is not excusable and has not been or will not be cured by the District in a manner and in accordance with a schedule reasonably satisfactory to the City, then the City may exercise the applicable remedy under Section 8.03(A). Section 8.02. Notice of City's Default A. The District shall notify the City Manager in writing specifying any alleged failure by the City to comply with a provision of this Agreement, describing the alleged failure with reasonable particularity. The City shall, within 30 days after receipt of the notice or the longer period of time as the District may specify in the notice, either cure the alleged failure or, in a written response to the District, either present facts and arguments in refutation or excuse of the alleged failure or state that the alleged failure will be cured and set forth the method and time schedule for accomplishing the cure. Strategic Partnership Agreement, Page 1 1 B. The District shall determine (i) whether a failure to comply with a provision has occurred; (ii) whether the failure is excusable; and (iii) whether the failure has been cured or will be cured by the City. The City shall make available to the District, if requested, any records, documents or other information necessary to make the determination. C. If the District determines that the failure has not occurred, or that the failure either has been or will be cured in a manner and in accordance with a schedule reasonably satisfactory to the District, or that the failure is excusable, the determination shall conclude the investigation. D. If the District determines that a failure to comply with a provision has occurred and that the failure is not excusable and has not been or will not be cured by the City in a manner and in accordance with a schedule reasonably satisfactory to the District, then the District may exercise the applicable remedy under Section 8.03(B). Section 8.03. Remedies A. If the City determines that the District has committed a breach of this Agreement, the City may, and the District explicitly recognizes the City's right to, terminate service under this Agreement and to seek all remedies at law or in equity necessary to enforce the provision(s) violated. Termination of service pursuant to this article shall not limit the City's remedies at law or in equity. B. If the District determines that the City has committed a breach of this Agreement, the District may file suit in a court of competent jurisdiction in Harris County, Texas, and seek any C/ relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act in addition to the monetary awards as may be appropriate. ARTICLE IX. BINDING AGREEMENT, TERM, AND AMENDMENT Section 9.01. Beneficiaries This Agreement binds and inures to the benefit of the Parties, their successors and assigns, as well as special districts created by the City and imposing a sales and use tax within that portion of the City lying within Chambers County. The District shall record this Agreement with the County Clerk in the Official Records of Chambers County, Texas. This Agreement binds each owner and each future owner of land included within the Tract in accordance with Subsection (c) of the Act. Section 9.02. Term This Agreement commences and binds the Parties on the Effective Date and continues until March 3, 2021, unless earlier terminated. This Agreement shall be automatically extended for additional five (5) year terms unless either party gives written notice of termination three months prior to the date of any such automatic extension. However, both parties expressly understand and agree that should any portion of the property involved in this Agreement become Strategic Partnership Agreement, Page 12 annexed by the City of Baytown for full purposes, this Agreement may terminate with respect to 01 such area at the sole option of the City. Section 9.03. Amendment The Parties by mutual consent may amend the terms and conditions of this Agreement at any time. ARTICLE X. MISCELLANEOUS PROVISIONS Section 10.01. Force Majeure. In the event any party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, it is agreed that on such party's giving notice and full particulars of such force majeure in writing or by telegraph to the other party as soon as possible after the occurrence of the cause relied upon, then the obligations of the party giving such notice, to the extent it is affected by force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability but for no longer period. Such cause shall as far as possible be remedied with all reasonable dispatch. The term "force majeure" as used herein, shall include, but not be limited to acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, war, blockades, insurrections, riots, epidemics, landslides, lightening, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions, breakage or damage to machines or pipelines and any other inabilities of either party, whether similar to those enumerated or otherwise and not within the control of the parties claiming such inability, which by the exercise of due diligence and care such party could not have avoided. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the party having the difficulties, and the above -referenced requirement that any force majeure be remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to demands of the opposing party when such course is inadvisable in the discretion of the party having the difficulty. Section 10.02. Approval. Whenever this Agreement requires or permits approval or consent to be hereinafter given by any party, such approval or consent shall not be unreasonably withheld. Such approval or consent on behalf of a party shall be evidenced by an ordinance or resolution adopted by the governing body of the party, or by an appropriate certificate executed by a person, firm or entity previously authorized to determined and give such approval or consent on behalf of the party pursuant to an ordinance or resolution adopted by the governing body, unless stated otherwise herein. Strategic Partnership Agreement, Page 13 CSection 10.03. Notice Any formal notices or other communications ("Notice") required to be given by one Party to another by this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below for such Party, (i) by delivering the same in person, (ii) by depositing the same in the United States Mail, certified or registered, return receipt requested, postage prepaid, addressed to the Party to be notified, (iii) by depositing the same with Federal Express or another nationally recognized courier service guaranteeing "next day delivery," addressed to the Party to be notified, or (iv) by sending the same by telefax with confirming copy sent by mail. Notice deposited in the United States mail in the manner herein above described shall be deemed effective from and after the date of such deposit. Notice given in any other manner shall be effective only if and when received by the Party to be notified. For the purposes of notice, the addresses of the Parties, until changed as provided below, shall be as follows: All Notices required or permitted hereunder shall be in writing and shall be served on the Parties at the following address: City: City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax: (281) 420-5891 District: Chambers County Municipal Utility District No. C, Young & Brooks 1415 Louisiana, 5th Floor Houston, TX 77002 Fax: (713) 951-9605 The Parties shall have the right from time to time to change their respective addresses, and each shall have the right to specify as its address any other address within the United States of America by giving at least five days' written notice to the other Parties. If any date or any period provided in this Agreement ends on a Saturday, Sunday, or legal holiday, the applicable period for calculating the notice shall be extended to the first business day following such Saturday, Sunday or legal holiday. Section 10.04. Time Time is of the essence in all things pertaining to the performance of this Agreement. Section 10.05. Severability All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. Strategic Partnership Agreement, Page 14 Section 10.06. Waiver Any failure by a Party hereto to insist upon strict performance by the other Party of any material provision of this Agreement shall not be deemed a waiver thereof or of any other provision hereof, and such Party shall have the right at any time thereafter to insist upon strict performance of any and all of the provisions of this Agreement. Section 10.07. Applicable Law and Venue The construction and validity of this Agreement shall be governed by the laws of the State of Texas without regard to conflicts of law principles. Venue shall be in Harris County, Texas. Section 10.08. Reservation of Rights To the extent not inconsistent with this Agreement, each Party reserves all rights, privileges, and immunities under applicable laws. Section 10.09. Further Documents The Parties agree that at any time after execution of this Agreement, they will, upon request of another Party, execute and deliver such further documents and do such further acts and things as the other Party may reasonably request in order to effectuate the terms of this 0 Agreement. c Section 10.10. Incorporation of Exhibits and Other Documents by Reference All Exhibits and other documents attached to or referred to in this Agreement are incorporated herein by reference for the purposes set forth in this Agreement. Section 10.11. Effect of State and Federal Laws Notwithstanding any other provision of this Agreement, the District shall comply with all applicable statutes, rules, regulations, and ordinances of the United States and the State of Texas, Chambers County as well as the City , as such statutes, rules, regulations and ordinances now exist or as may be hereinafter amended. Section 10.12. Entire Agreement This Agreement, including the exhibits hereto, contains all the agreements between the parties hereto with respect to the strategic partnership and may not be modified orally or in any other manner other than by an agreement in writing, signed by all the parties hereto or their respective successors in interest. Strategic Partnership Agreement, Page 15 Section 10.13. Headings The headings as to contents or particular articles or sections herein are inserted only for convenience, and they are in no way to be construed as a part of this Agreement or as a limitation on the scope of the particular sections to which they refer. Section 10.14. Ambiguities In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. Section 10.15. Agreement Read The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. It is specifically agreed and understood by the parties hereto, that the Water Supply and Waste Disposal Agreement between the City and the District is hereby superseded by this Agreement and shall have no further force and effect. Section 10.16. Multiple Originals It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. C' Section 10.17. Authority for Execution C The City hereby certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with the City Charter and City Ordinances. The District hereby certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted by the Board. IN WITNESS WHEREOF, the parties have executed this Agreement in multiple copies, each of which shall be an original, as of the date signed by the City Manager of the City of Baytown. Strategic Partnership Agreement, Page 16 CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 I5A Signature Richard E. Greer President ATTEST: By: Signature Harold R. Scarborough Secretary STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me this day of , 20_, by Richard E. Greer as President, and Harold R. Scarborough, as Secretary, of Chambers County Municipal Utility District No. 1, a political subdivision of the State of Texas, on behalf of said political subdivision. CNotary Public in and for the State of Texas (NOTARY SEAL) CITY OF BAYTOWN, TEXAS By: Garrison C. Brumback, City Manager ATTEST: Kelvin Knauf, Interim City Clerk APPROVED AS TO FORM: Ignacio Ramirez, Sr., City Attorney Strategic Partnership Agreement, Page 17 STATE OF TEXAS § C § COUNTY OF HARRIS § c This instrument was acknowledged before me this day of , 20_, by Garrison C. Brumback, as City Manager of the City of Baytown, Texas, a municipal corporation, on behalf of said municipal corporation. Notary Public in and for the State of Texas R:IKarenlFileslContractslLinuted Annexation ContractlSPA4AdditionalPropertyNChambersCountyMUDClean 10072007R.doc Strategic Partnership Agreement, Page 18 Ci C. Exhibit "A," Page Solo Exhibit A Tract CJune 20, 1980 CXAM = CDONT7 MUNICIPAL 0:-:..':S DISTtIC:' N0. 1 ,RAC- 1 being 90.2384 acres of land out of and a part at that certain 102.264 ace tract aituatAd in the williaa Bloodgood League, Abstract No. 4, Paga 138 tbru 143, of the Deed Rs=rda of Chambers County, Texas, said 102.264 acre tract being originally a part of a 100 acre and a 2`2.3 acre tract of land that were deeded to L.M. Fitzgerald by John Shearer in a Deed dated May 1. 1916 and recorded in Volume 6, Page 575 of the Deed Aeoarda of Chaaoat7 County, Setas, said 90.2384 acres of land being more particularly described by metes and bounds as follows - COMMENCING at an iron rod found for the northeast tamer of the aforementioned 102_264 acre tract, said point being in the south R.O_W. line of Interstate Higbway No. 10 and being the east line Of said William Bloodgcod League Abstract No. 4 and the west line of the W1111am Bloodgood Augu- mentation Survey, Abstract No. 5, thence S 75.13112' W, 225.00 feet along the south R.O.W. line of Inter- state Highway No. 10 to the Point of Beginning; THENCE 5 12'.'71'14' E. 2323.66 feet to a point for the southeast corner of this tract, in the north R.O.W. line of Needle Point Road and the south line of said 222.3 ace tract; SBENCE S 78'07.32' W, with the south line of this t=act, being the south line of said 222_3 acre tract and nor --b R.O.W. line of Needle Point Road,a dis- tance of 7311.24 feet to a 1' i -nn pipe in the east R.O.w. line of State Highway No. 146lbeing the southwest corner of this t=act; THENCE N 22"55133' E, with the west line of this tract and the east R.O.W. line of said State High- way No. 146, a distance of 1405.00 feet to a con - trete R_O.W. monument far an angle point; l� :HENCE N 35'59'39' E, continuing with the west line of this tract and the east R. O.W. line of said State Richway No. 146'a distance of 179.06 :est to a concrete R.O.W. monument for an angle point; %M M4CP N 15'24'09' E, continuing With the West line of toss tract and the east R.O.H. line of said State Higbway No. 1461a distance of 828.71 feet to an i=on pipe and being the southwest corner of the r Busole Oil and Relining Co. 0.8931 acre tract of land; SBENCI N 75'06118' Z. with Nortb line of this tract and being the south line of said 0.8931 acre tract, a distance of 300.37 feet to an iron rod set in concrete for an interior corner, said corner being the southeast corner of the aforementioned 0_8931 acre tract; TREHCL N 15'16118' E, with the east 1£ne of the said 0.8931 ar_e tract, a distance of 150.54 feet to an iron rod act in concrete for the northwest corner of Ibis tract of land and the northeast corner of said 0.8931 acre tract, said corner being in the South R.O.W. line of Interstate High- way No. 10; SBEN(-T N 75'13'12' E, with the north line of Chia t=act and hems the south R.O.H. line of Interstate Bignway No. 10, ■ distance of 8:2_30 feet to the Point o: Beginning and containing 90.23B4 acres, more or less. Page I of TRACT 2 DESCRIPTION OF A TRACT OF LAND CONTAINING 6.0151 ACRES (262,017 SQUARE FEET) SITUATED IN THE WILLIAM BLOODGOOD AUGUMENTATION SURVEY, A-5. CHAMBERS COUNTY, TEXAS Bcmg a tract of land containing 6.0151 acres (262,017 square feet) situated in the W.Iliam Blood good Augumentation Survey, A-5 in Chambers County, Texas being all of Restricted Reserve "A", Restricted Reserve "B" and a portion of Future County Road (120 feet wide) ofSurnmerficld Section One, a subdivision plat recorded under Document No. XXXXXX of the Map Records of Chambers County, Texas. Said 6.0151 -acre tract being more particularly described by metes and bounds as follows: BEGINNING at a found 5 8 -inch iron rod located in the east right-of-way line of State Highway 146, for the southwest comer of Abbe Subdivision, a subdivision plat recorded under Volume 2, Page 104 of the Map Records of Chambers County, Texas, for the northwest comer of said Summerfield Section One, Restricted Reserve "A" and said tract herein described; THENCE North 77° 17' 55" East with the south line of said Abbe Subdivision and the north line of said Summerfield Section One and said Restricted Reserve "A", a distance of 337.11 feet to a point for corner, for the northwest corner of Block 1, and the northeast comer of said Restricted Reserve "A" of said Summerfield Section One and for the northeast comer of said tract herein described; THENCE South 100 31' 05" West continuing with the east line of said Restricted Reserve "A" and the west line of said Block 1, a distance of 375.08 feet to a point for comer located in the north right -of --way line of said Future County Road, for the southwest comer of said Block 1 and the southeast corner of said Restricted Reserve "A"; THENCE North 78° 34' 59" West with the north right-of-way line of said Future County Road and the south line of said Restricted Reserve "A", a distance of 11.62 feet to a point for comer; THENCE South 100 51' 22" West crossing the right-of-way of said Future County Road, at 120.07 feet pass the south right-of-way line of said Future County Road, for the northeast corner of said Restricted Reserve "B" and the northwest comer of Block 5 of said Summerfield Section One, for a total distance of 637.78 feet to a point for comer located in the south line of said Summerfield Section One, for the southwest comer of said Block 5, the southeast corner of said Restricted Reserve "B" and said tract herein described; THENCE North 510 53' 04" West with the south line of said Summerfield Section One and said Restricted Reserve "B", a distance of 349.25 feet to a point for comer located in the cast right-of-way line of said State Highway 146 and being in a curve to the left, for the most westerly southwest corner of said Summerfield Section One, said Restricted Reserve "B" and said tract herein described; THENCE in a northeasterly direction continuing with the cast right-of-way line of said State Highway 146 and the west line of said Summerfield Section One, said Restricted Reserve "B" and said curve to the left whose radius is 5,789.58 feet with a central angle of 07 06' 41" (Chord bears North 1 I ° 43' 20" East, a distance of 718.13 feet) at an arc length of 346.06 feet pass the south right-of-way line of said Future County Road, at an arc length of 496.06 pass the north right-of-way line of said Future County Road, for a total arc length of 718.60 feet to the POINT OF BEGINNING and containing 6.0151 acres (262,017 square feet) of land, more or less. GP;igc 2 u f 2 Mote: This metes and bounds description is referenced to it survey drawing prepared by Cobb, Fendley & Associates, Inc. dated January 8, 2008, titled "LAND TITLE SURVEY OF Al 6,.0151 ACRE TRACT SITZ X PED IN THE WILLI;1�m I3l.00D000D AUGUNIENTATION SL RVEY, A-5, IN CHA-MBERS COUN"fY, 'fExAS", Cobb, Fendley & Associates, Inc. 13430 Northwest Freeway, Suite 1 100 Houston, Texas 77040 Phone: (713) 462-3242 Job No. 5310 -101 -DI -OI January 8, 2008 M G G c Exhibit "B," Page Solo Exhibit B Service Area C I Exhibit "B" Fcn $�ASSOCIATE January 29, 2004 Chambers County Municipal Utility District No. 1 Boundary Map Revision Chambers County Municipal Utility District No. 1, lying totally within the boundaries of Chambers County, Texas, and being 478.6193 acres, more or less, out of the William Bloodgood League, A-4, the William Bloodgood Augmentation, A-5 and the Chamber School Land Survey No. 3, A-321 and being described by metes and bounds prepared in four (4) separate tracts as listed below and attached in the following pages: Tract 1 90.2384 acres Tract 2 206.2848 acres Tract 3 150.5783 acres ^ (v; Tract 4 31.5178 acres Total 478.6193 acres The information herein is includes the annexation of a 42.3089 -acre tract located north of and adjacent to Tract 2 described herein. The information attached was prepared an eproduced from documents provided by Chambe ou u rict No. 1. f c A ^ r r F�q� FLAW 4 a e A. Funk'.` ^�. Regi Bred Professional Land Surv��or alp. 3.35 Note: The documents attached were prepared under 22 TAC 663.21 and do not reflect the results of an on the ground survey, and are not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. 5300 Hollister, Suite 4001 Houston, Texas 77040-61381 Voice 713.462.32421 Fax 713.462.32621 www.cobfen.com (� TRACTS DESCRIPTION OF A TRACT OF LAND CONTAINING 10.2881 ACRES (448,149 SQUARE FEET) SITUATED IN THE WILLIAM BLOODGOOD AUGUMENTATION SURVEY, A-5, CHAMBERS COUNTY, TEXAS Being a tract of land containing 10.2881 acres (448,149 square feet) situated in the William Bloodgood Augumentation Survey, A-5 in Chambers County, Texas being out of a 31.5178 -acre tract comprised of three tracts of land as recorded in Volume 294, Page 215, Volume 13, Page 597, Volume 319, Page 356, and Volume 282, Page 451 of the Deed Records of Chambers County, Texas. Said 10.2881 -acre tract being more particularly described by metes and bounds as follows: BEGINNING at a point for comer located in the west right-of-way line of State Highway 146, for the northeast corner of said 31.5178 -acre tract and said tract herein described for the beginning of a curve to the left; THENCE in a southwesterly direction continuing with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract and with said curve to the left whose radius is 11,518.16 feet with a central angle of 02° 28' 11" (Chord bears South 07° 32' 08" Wcst, a distance of 496.49 feet) for an arc length of 496.53 feet to a point for comer; THENCE South 06° 18' 03" West with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract, a distance of 291.40 feet to a point for comer, for the beginning of a tangent curve to the right; THENCE in a southwesterly direction continuing with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract and with said curve to the right whose radius is 5,669.75 feet with a central angle of 02° 42' 56" (Chord bears South 07° 39'31" West, a distance of 268.69 feet) for an arc length of 268.72 feet to a point for comer, for the southeast corner of said tract herein described THENCE South 77° 18' 56" West, a distance of 151.87 feet to a point for corner; THENCE South 771 38' 48" West, a distance of 296.57 feet to a point for corner, for the southwest corner of said tract herein described; THENCE North 07° 05' 29" East, a distance of 1,063.71 feet to a point for corner located in the north line of said 31.5178 -acre tract for the northwest comer of said tract herein described; THENCE North 78° 30' 22" East with the north line of said 31.5178 -acre tract, a distance of 448.44 feet to the POINT OF BEGINNING and containing 10.2881 acres (448,149 square feet) of land, more or less. Cobb, Fendley & Associates, Inc. 13430 Northwest Freeway, Suite 1100 Houston, Texas 77040 Phone: (713) 462-3242 Job No. 5310-101-01-01 January 10, 2008 0 TRACT4 �) DESCRIPTION OF A TRACT OF LAND CONTAINING 0.7520 ACRES (32,759 SQUARE FEET) SITUATED IN THE WILLIAM BLOODGOOD AUGUMENTATION SURVEY, A-5, CHAMBERS COUNTY, TEXAS Being a tract of land containing 0.7520 acres (32,759 square feet) situated in the William Bloodgood Augumentation Stuvey, A-5 in Chambers County, Texas being out of a 31.5178 -acre tract comprised of three tracts of land as recorded in Volume 294, Page 215, Volume 13, Page 597, Volume 319, Page 356, and Volume 282, Page 451 of the Deed Records of Chambers County, Texas. Said 0.7520 -acre tract being more particularly described by metes and bounds as follows: COMMENCING FOR REFERENCE at a point located in the west right-of-way line of State Highway 146, for the northeast corner of said 31.5178 -acre tract and for the beginning of a curve to the left; THENCE in a southwesterly direction continuing with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract and with said curve to the left whose radius is 11,518.16 feet with a central angle of 020 28' 11" (Chord bears South 070 32' 08" West, a distance of 496.49 feet) for an arc length of 496.53 feet to a point for corner; THENCE South 060 18' 03" West with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract, a distance of 291.40 feet to a point, for the beginning of a tangent curve to the right; THENCE in a southwesterly direction continuing with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract and with said curve to the right whose radius is 5,669.75 feet with a central angle of 02° 42' 56" (Chord bears South 070 39' 31" West, a distance of 268.69 feet) for an arc length of 268.72 feet to a point; OTHENCE South 77° 18' 56" West, a distance of 151.87 feet to a point; THENCE South 77° 38' 48" West, a distance of 296.57 feet to a point; THENCE South 121 09' 36" East, a distance of 417.86 feet to the POINT OF BEGINNING and the northwesterly corner of said tract herein described; THENCE North 77° 49' 48" East with the north line of said tract herein described, a distance of 265.78 feet to a point for the northeast comer of said tract herein described and for the beginning of a curve to the right; THENCE in a southwesterly direction continuing with the west right-of-way line of said State Highway 146 and the east line of said 31.5178 -acre tract and with said curve to the right whose radios is 5,669.75 feet with a central angle of 02° 31' 42" (Chord bears South 14° 54' 36" West, a distance of 250.17 feet) for an arc length of 250.19 feet to a point for comer for the most southerly corner of said 31.5178 -acre tract and said tract herein described; THENCE North 51 ° 40' 50" West with the south line of said 31.5178 -acre tract, a distance o1' 238.76 feet to a point for corner; THENCE North 120 09'36" West, a distance of 38.54 feet to the POINT OF BEGINNING and containing 0.7520 acres (32,759 square feet) of land, more or less. Cobb, Fendley & Associates, Inc. 13430 Northwest Freeway, Suite 1100 Houston, Texas 77040 Phone: (713) 462-3242 Job No. 5310-101-01-01 January 10, 2008 MMT. ^� 0 INTERSTATE HIGHWAY 10 (R. 0. W. VARIES) r EXHIBIT A TRACTS SUBJECT TO STRATEGIC PARTNERSHIP AGREEMENT NO. 2 CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 CHAMBERS COUNTY, TEXAS 1 41 LE LEND FUTURE TRACTS SUBJECT TO PROPOSED SPA NO. 2 NEW LIMITED PURPOSE Soa.: N.T.S. ® ANNEXATION AREA CITY OF BAYTOWN CITY LIMITS;..._F, ; DISTRICT BOUNDARY' & SERVICE AREA 13430 N.W. FRWY.. SUITE 1100 HOUSTON. TEXAS 77040 (713) 462-3242 JULY, 2007 EXHIBIT A TRACTS SUBJECT TO STRATEGIC PARTNERSHIP AGREEMENT NO. 2 CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 CHAMBERS COUNTY, TEXAS 1 41 c June 20, 1.980 HMMHERS C00NT7 MUNICIPAL CTILIST aISSRICT No. 1 TRACT 1 Doing 90.2334 acres of land out of and a part of that certain 102.264 arse tract situated in the William Bloodgood League. Abstract No. 4. Pages.l33: thru 143, of the Dead Records of Chambers County, sews, said 102.264 nese tract being originally a part of a 100 acre and a 222.3 acre tract of land that were deeded to L_M. Fitzgerald by John Shearer in a Dead dated Xay 1.. 1916 and recorded in Volume 6. Page 575 of the Deed Records of Chambers County, Texas. said 90.2384 acres of land being more particularly described by metes and bounds as follows: COMMENCING at an iron rod found for the northeast corner of the aforementioned 102.264 acre tract, said point being in the south R.O.N, line of Interstate Highway No. 10 and being the east line of said William Bloodgood League Abstract No. 4 and the vest line of the William Rloodgood Augu- mentation Survey, Abstract No. S. thence S 75.13112' W, =.Do fact along the south R.O.M. line of Inter- state Highway No. 10 to the Point of Beginning; THENCE 5 12121114• E, 2323.66 fast to a point for the southeast corner of this tract, is the north R.O.W_ line of Needle Point Road and the south line of said 222.3 acre tract; THENCE 5 78'07.32' N, with the south line of this tract, being the south line of said 222.3 acre tract and north R.O.N. line of Needle Point Road,a dis- tance of 2311.24 feet to a 1' iron pipe in the east R.O.N. line of State Highway No. 1461being the southwest corner of this tract; THENCE N 12'55'32' E. with the vest line of this tract and the east R.O.N. line of said State High- way No. 146, a distance of 1405.00 feat to a con- crete R.O.U. monument for an angle point; THENCE N 35'59'38• E, continuing with the west line of this tract and the east R. O.W. line of said state Highway No. 146,a distance of 179.06 feet to a concrete R.O_W_ monument for an angle point; TSENC.E N 15'24'09' E, continuing vitt the Hest line of this tract and the east R.O.W. line of said State Highway No. 1461a distance of 828.71 feet to an iron pipe and being the southwest corner of the Burble oil and Relining Co. 0.8931 acre tract of land; THENCE N 75'06'18' E. with North line of this tract and being the south line of said 0.8931 acre tract, a distance of 300.37 feet to an iron rod set in concrete for an interior corner, said corner being the southeast corner of the aforementioned 0.8931 acre tract; THENCE N 15'16.18' E, with the east line of the said 0.8931 acre tract, a distance of 150.54 feet to an iron rod set in concrete for the northwest corner of this tract of land and the northeast corner at' said 0.8931 acre -tract. said corner being in the South R.O.w_ line of Interstate High- way No. 10; THENCE N 75'13'12' E, with the north line of this tract and being the south R.O.H. line of Interstate Highway No. 10, a distance of 822_30 feet to the Point of beginning and containing 90.2384 acres, more or less. January 29, 2004 Page 1 of 2 CHAMBERS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 TRACT 2 Being 206.2848 acres of land out of and part of the William Bloodgood League, Abstract No. 4, and the William Bloodgood Augmentation Survey, Abstract No. 5, Chambers County, Texas, also being comprised of three tracts of land as recorded in Volume 13, Page 567, Volume 13, Page 598, Volume 10, Page 359 and Volume 577, Page 45 of the Deed Records of Chambers County, Texas, said tract of land being more particularly described as follows: BEGINNING at a concrete highway monument in the east right-of-way of State Highway 146, said right-of-way line being the west property line of this tract; THENCE along the east right-of-way of State Highway 146, N 12° 55' 32" E, 200.00 feet to a 1" iron pipe found for an angle point in the west line of this tract, and the aforementioned tract recorded in Volume 13, Page 567 of the Deed Records of Chambers County, Texas; said point being the southwest corner of a 5.0 acre tract; THENCE along the south line of said 5.0 acre tract N 77° 22' 11" E, 1041.60 feet to a 1" iron pipe found for the southeast corner of said 5.0 acre tract and an interior corner of this tract; THENCE along the east line of said 5.0 acre tract N 110 25' 51" E, 209.09 feet to a 1" iron pipe found for the northeast corner of said 5.0 acre tract the �) most northwest corner of this tract; THENCE S 770 09' 44" W, 1041.83 feet to a point located in the east right-of-way line of said State Highway 146 for the northwest corner of said 5.0 acre tract, the southwest corner of a 42.3089 acre tract and for an angle point in the west line of this tract and; THENCE N 120 03' 06" E along the east right-of-way line of said State Highway 146, 690.17 feet to a point for the northwest corner of said 42.3089 acre tract and for the northwest corner of this tract; THENCE N 770 17' 46" E along the north line of said 42.3089 acre tract, 2790.51 feet to a point for the northeast corner of said 42.3089 acre tract and for the northeast corner of this tract; THENCE S 11' 37' 26" E along the east line of said 42.3089, 631.53 feet to a point for the southeast corner of said 42.3089 acre tract for an angle point in the east line of this tract; THENCE S 11' 46' 53" E, 2139.70 feet to a point for the southeast corner of this tract; THENCE S 770 37' 06" W, 1480.58 feet to a 2" iron pipe found for an angle point; THENCE S 770 30' 56" W, 894.59 feet to a 2" mill shaft found for an angel uoint: THENCE S 770 30' 10" W, 1005.43 feet to a 5/8" iron -f rod found for the southeast corner of a 4.0 acre tract and an interior corner of this tract; THENCE N 120 34' 49" W, 300.24 feet along the east line of said 4.0 acre tract to a 2" iron pipe found for the northeast corner of said 4.0 acre tract and an interior corner of this tract; THENCE S 770 45' 00" W, 463.92 feet along the north line of said 4.0 acre tract to an iron rod found on the east right-of-way line of State Highway 146, said iron rod being the northwest corner of said 4.0 acre tract and the southwest corner of this tract and also on a curve to the right having a chord bearing N 11° 02' 02" E, 159.20 feet; THENCE along the arc of said curve to the right subtending a central angle of 001 48' 01", a radius of 11399.16 feet, an arc distance of 159.20 feet to a 5/8" iron rod w/cap; THENCE continuing along the east right-of-way line of State Highway 146 N 11° 09' 41" E, 1421.38 feet to the POINT OF BEGINNING and containing 206.2848 acres of land, more or less.. E9 January 29, 2004 Page 2 of 2 Tract 2 c- .7wne 20, 19s0 C8AMBMM CWUNTS MUNICIPAL UTILITY DIS=CT No. 1 TRACT 3 Being 150.5713 acres of land .'prised of three tracts situated in the William Bloodgood Augumentation survey, Abstract No. 5. and the Chambers County School Land Survey, Abstract No. 321 in Chambers County, Texas as recorded in Volume 13. Page 569, volume 13, Page 568 and the Annie Busch Zzute residual 52.539 acres of the original 261 acre tract of land and being more particularly described as follows: BEGINNING at a point in the east R.O.H. line of State Highway Wo. 146, for the aortbwest corner of this tract and the Southwest corner of the Abbe Subdivision, thence N 77'08'38' E. with the north line of this tract and the south line of said At, Subdivision, a distance of 1938.76 feet to a 2' iron pipe for the southeast corner of said Abbe Subdivision and an angle point in the north line of this tract, said point also being the southwest corner of the S.S. Fitzgerald Estate Tract of land; THENCE N 77.14113' E, with the north line of this tract and the south line of said Fitzgerald Estate tract 897.71 feet to a 2' iron pipe for the southeast corner of said Fitzgerald Estate Tract and an angle point in the north line of this tract,said point also being the southwest corner of the Rvy C. Donnelly Tract; THENCE N 77'15147' E, with the north line of this tract and the south line of said Donnelly Tract,a distance of 3,606.53 tent to the northeast corner of this tract and the southeast corner of said Donnelly Tract; TMENCL N 12'40-04'4,witb the vest line of this tract, being the east line of said road tract a distance of 40.00 feet to an iron rod for the northeast corner of said road tract and an interior corner of this tract; THENCE S 77'19'56' i;, with the south line of this tract and the north line of said toad tract a distance of 2071.86 feet to a point for a corner of this tract and a corner of said road tract; THENCE N 51'59157' W, with the south line of this tract and the north line of said road tract ■ distance of 232.90 feet to an iron rod for the soutnvest corner of this tract and the northwest corner of said road tract, said point being in the east R.O.W. line of State Highway No. 146; THEM= with the west line of this tract and said east R.O.w. line of State Highway We. 146 following the chord of a 01100100' curve, X 12114145' E, a distance of 853.52 feet to the Point of beginning and containing 150.5783 acres,aore or less. - TuEHCr S 12147144' E, with the east line of this tract, ■ distance of 1004.52 feet to an iron shatt set in con- crete for the southeast corner of this tract and the �^ northeast corner of the S.B.S. and C.R.A. Co. Survey, 1 Abstract No. 61; -� THENCE S 77'18126` N, with the south line of this tract being the south line of said William Bloodgood Augumen- tation Survey and the north line of said R.R. Survey a distance 4462.60 feet to an angle point in the south line of this tract; THENCE S 77119156• W, with the south line of this tract a distance of 122.70 feet to the southeast corner of the United Gas Pipelipe Co. Road Tract and a corner for this tract; TMENCL N 12'40-04'4,witb the vest line of this tract, being the east line of said road tract a distance of 40.00 feet to an iron rod for the northeast corner of said road tract and an interior corner of this tract; THENCE S 77'19'56' i;, with the south line of this tract and the north line of said toad tract a distance of 2071.86 feet to a point for a corner of this tract and a corner of said road tract; THENCE N 51'59157' W, with the south line of this tract and the north line of said road tract ■ distance of 232.90 feet to an iron rod for the soutnvest corner of this tract and the northwest corner of said road tract, said point being in the east R.O.W. line of State Highway No. 146; THEM= with the west line of this tract and said east R.O.w. line of State Highway We. 146 following the chord of a 01100100' curve, X 12114145' E, a distance of 853.52 feet to the Point of beginning and containing 150.5783 acres,aore or less. - June 20,19210 camBERS COONT7 MUNICIPAL OTTLITT DISTIRCT M0. 1 TAACT 4 Being 31.5178 acres of land out of and a part of the Wi11£an Bloodgood Augu.entation Survey, Abstract No. 5 in the Chambers County, Tesas and being casprised at three tracts of land as recorded in Volume 294, Page 215, Volume 13, Page 597, Volume 319, Page 356, and Volume 202, P'age 451 of the Deed Records of Chambers Councy, Texas, and being mare particularly described as follows: HC=RNING at an iron rod for the northeast corner of this tract, said point being on a curve in the vest R.O.W. line of State Highway No. 146 and on the south line of the William Bloodgood League. Abstract No. 4 and the north line CC the William Sloodgood Augumentation Survey, Abstract No. 5v thence following said curve having a central angle of 02'23'11' and a chord bearing S 07.32408' W, a distance of 496.49 fact to a concrete R.O.W. monument found at the point of tangency of said curve; THENCE S 06'13'03' W, along the wast R.O.W. of State High— way No. 146.a distance of 291.40 fast to the point of curvature for a curve to the right on the said west R.O.W. line; THENCE follovinq along the are of said curve to the right having a central angle of 02.42'56• an are distance of 268.72, said curve having a chord beating 5 07'39'31' W, 268.69 feet to an iron rod For the southeast corner of this tract; THENCE S 77'18156' W, a distance of 351.87 feet to a 3/4' iron rod for an angle point; THENCE S 77.38142' N, a distance of 296.57 feet to an axle for an interior corner; THENCE S 12.09'36' E, a distance of 417.86 feet to a 2' ' iron pipe at a fence corner; THENCE N 77'49.48' E, a distance of 265.78 feet to an 1 iron rod in the curve of the west R.O.W. line of State II Bighvay No. 146= THENCE along the are of said R.O.W. curve having a central angle of 02.31'42' a distance of 250_19 fact, said curve having a chord bearing S 14'54'36' W, a distance of 250.17 feet, to a point being the south— east corner of this tract, said point being the north line of the T i N.O. Railroad Company Tract as recorded in volume 187, Page 316 of the Deed Records of Chambers County, Texas; THENCE N 51'40'50' W. with the north line of the T c N.O. Railroad Company :Pact, a distance of 1853.27 feet to an iron rod in the fence Line of the south line of the Antone Busch Estate; THENCE N 76'47.43' E, a distance of 726.06 feet to a point for a corner; THENCE N 22'24'30' W, a distance of 213.39 test to a point for a corner,- THENCE orner;THENCE N 78'30.22' E, a distance of 1138.63 fest to the Point of Beginning and containing 31.5176 acres, more or less.