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Res 176-2008 12/16/2008 • ; RESOLUTION NO. I�� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A RENEWAL TO AN AGREEMENT WITH AETC HOUSING L.P. THAT PROVIDES MUNICIPAL SERVICES AS PART OF THE MILITARY HOUSING PRIVATIZATION INITIATIVE; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, SAFB has hired AETC Housing Limited to own, operate, improve, and manage the military housing developments at SAFB known as Capehart, Bunker Hill, and Wherry Housing Communities; and WHEREAS, in February 2007, AETC Housing and the City entered into an agreement for providing certain municipal services to these housing communities in exchange for certain fees; and WHEREAS, the initial term of this agreement expires on December 31, 2008; and WHERAS, the City and AETC Housing desire to renew this agreement for an additional five year term. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. The City Manager is hereby authorized to execute a five-year contract renewal with AETC Housing L.P. for providing municipal services to military housing communities being managed by AETC Housing, a copy of which is attached hereto and made a part of this resolution. SECTION 2. It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 16th day of December, 2008. � MAYOR ATTEST: i Clerk � l AGREEMENT AETC HOUSING LP AND THE CITY OF WICHITA FALLS, TEXAS (First Five Year Renewal Term) THIS AGREEMENT, made this day of December, 2008, by and between AETC Housing LP a Delaware limited partnership ("AETC Housing"), and The City of Wichita Falls, Texas (the "Municipality"). WITNESSETH: WHEREAS, the United States Congress, through Subtitle A-Military Housing Privatization Initiative of the 1996 Defense Authorization Act, P.L. 104-106 110 Stat. 186 (the "Military Housing Initiative"), provided alternative authorities for acquisition and improvement of military housing; and WHEREAS, AETC Housing, LP, (AETC Housing) is a public-private entity whose mission and operations will be governed by an operating agreement entered into by the Air Force and GMH (the "Operating Agreement") and whose purpose will be to own, operate, improve and manage the military housing supporting certain Air Force installations associated with the Air Education Training Command referred to as AETC Group I including military housing developments known as Capehart, Bunker Hill and Wherry in the City of Wichita Falls (the "Base"); and WHEREAS, the Air Force has (i) leased certain land (the "Land") pursuant to a fifty-year ground lease (the "Ground Lease") and (ii) transferred title to certain housing improvements and ancillary facilities currently existing at or otherwise servicing the Base (the "Improvements") to AETC Housing, and, AETC Housing will contract for all necessary services, including architectural, engineering and construction services, obtain financing from a private lender, and supervise renovation or demolition of existing housing and construction of new housing and ancillary facilities in accordance with specifications and plans approved by the Air Force; and WHEREAS, AETC Housing will operate, manage and maintain the resulting residential units and related ancillary facilities primarily for military family housing units for military personnel (the "Military Housing"); and WHEREAS, the legal description of the Land is more particularly set forth on Exhibit A attached hereto and incorporated herein by reference (the Land � together with the Improvements and any improvements constructed thereon in the future, sometimes referred as the "Property"); and WHEREAS, AETC Housing, in exchange for certain fees, desires to reimburse the Municipality for certain services from the Municipality, specifically police, fire, first responder emergency medical services, street maintenance, water services, environmental health services, and refuse collection and disposal services. WHEREAS, AETC Housing and the Municipality entered into an initial agreement on February 7, 2007 for these services, which term expires on December 31, 2008; and WHEREAS, AETC Housing and the Municipality desire to renew this agreement for an additional five year term. NOW, THEREFORE, in consideration of the premises and the mutual agreement herein contained, AETC Housing and the Municipality, hereby agree as follows: l. SERVICES TO BE RENDERED. From and after January 1, 2009, the Municipality agrees to furnish with respect to the Military Housing, subject to the limitations hereinafter provided, the services that are described in E�chibit B(the "Services"). AETC Housing agrees to receive and pay for the Services and that the Services shall be exclusively for the benefit of the Military Housing and AETC Housing's operations in connection with the Military Housing. 2. TERM and RENEWAL TERM. (a) Unless otherwise agreed upon by the Municipality and AETC Housing, or sooner terminated pursuant to Paragraph 6 below, the term of this Agreement (the "Term"') shall commence on January 1, 2009 and shall continue through the expiration date of December 31, 2013. (b) This Agreement may be renewed upon the consent of both parties for one or more additional five (5) year terms. At least three (3) months prior to the end of the initial term and any renewal term, the Municipality and AETC Housing will commence good faith negotiations on the renewal of this Agreement. In the event this Agreement is renewed for one or more additional terms, the provisions of this Agreement shall remain in full force and effect far each such renewal term except and only to the extent that any provisions hereof are specifically amended by the renewal agreement. 3. PAYMENTS. (a) AETC Housing agrees to pay the Municipality, as consideration for the provision of the Conventional Services, an annual fee ("the Annual Services Fee") at the rates and under the terms and conditions set forth on Exhibit B. It is hereby acknowledged and agreed that the Annual Services Fee to be paid by AETC � � Housing hereunder shall in no way be construed as a tax or payment in lieu of a tax, but shall instead be a payment in exchange for the Services. (b). AETC Housing agrees to pay to the Municipality, as consideration for the provision of Refuse Collection and Disposal Services an annual fee ("the Annual Refuse Collection and Disposal Services Fee") at the rates and under the conditions set forth in Exhibit B. (c). AETC Housing agrees to pay to the Municipality, as consideration for the provision of Water Services a monthly fee at the rates and under the terms and conditions set forth in Exhibit B. (d). AETC Housing shall not be responsible for late fees, interest or other penalties arising out of the Municipality's late or incomplete payments to its third party providers unless such penalties result from or are directly attributable to AETC Housing's failure to pay for Municipal services as and when due. 4. PROVISION OF SERVICE. The Municipality agrees to perform the Services in a manner that meets or exceeds the level of similar services generally provided by or on behalf of the Municipality to other properties located within the Municipality's jurisdiction. AETC Housing agrees that, in providing the conventional municipal services of police, fire, first responder emergency medical services, environmental health services, and street maintenance under this agreement, the Municipality is obliged to no more than the standard duty of care in its public function, and is entitled to the defenses provided in law for the delivery of conventional municipal services of this type to any other member of the public. 5. INFORMATION (a) AETC Housing shall notify the Chief Fiscal Officer of the Municipality ("CFO") of any material addition to the Property as soon as feasible, but in no event later than thirty (30) days after the effective date of any such event. (b) AETC Housing shall notify the CFO of any sale, transfer or assignment of the Property or any portion thereof as soon as feasible, but in no event later than thirty (30) days after the effective date of any such event. (c) AETC Housing shall notify the CFO of any termination of the Ground Lease, or any portion thereof as soon as feasible, but in no event later than thirty (30) days after the effective date of any such event. (d) AETC Housing shall notify the CFO in the event that the Military Housing is no longer being maintained and operated as contemplated by the Military Housing Initiative and the Ground Lease as soon as feasible, but in no event later than thirty (30) days after the effective date of any such event. (e) With respect to operational issues, party contacts are as follows: For the Municipality: Streets, Sanitation, Water and Sewer Services Director of Public Works City of Wichita Falls 1300 7`'' Street Wichita Falls, TX 76301 Telephone (940) 761-7477 Police Services Police Chief City of Wichita Falls 610 Holliday Wichita Falls, TX 76301 Telephone (940) 761-7732 Fire and First Responder Services Fire Chief City of Wichita Falls 1005 Bluff Wichita Falls, TX 76301 Telephone (940) 761-7901 Environmental Health Services Director of Health Wichita Falls/Wichita County Public Health District 1700 3rd Street Wichita Falls, TX 76301 Telephone (940) 761-7804 � � For AETC Housing LP: Ro��t Rulli GMH MM�1litary Hou�ing LLC l� �pus Bl�rd N�;�utown Square, FA 19073 Telephone (401)432-4330 6. TERMINATION. (a) If the Property is no longer materially maintained and operated as contemplated by the Military Housing Initiative and this Agreement, this Agreement may be terminated by either party upon ten (10) days written notice provided that if the events giving rise to this right to terminate are such that they may be cured, both parties shall be afforded thirty (30) days in which to comply with the Military Housing Initiative or this Agreement as applicable; (b) This Agreement may be terminated by either party upon ninety (90) days written notice upon the happening of any of the following: (i) Any breach or default by either party of any of the material provisions of this Agreement, which breach or default is not cured within thirty (30) days from the date of notice default or breach from the other party . In the event a cure of any such default is not capable of being completed within said thirty (30) day period, the defaulting party will not be deemed in breach or default if a good faith effort to cure is commenced within said thirty (30) day period; or (ii) The Air Force transfers the fee title to the real property being leased to AETC Housing pursuant to the terms of the Ground Lease, but only if such transferee is a person or entity that is not a governmental or quasi governmental entity. 7. SUBSTANTIAL CHANGE IN THE PROPERTY. If there is a material change in the Property due to a material addition to the Property or a disposition of a material portion of the Property, the parties agree to negotiate in good faith to make any necessary adjustments to the scope of the Services provided to such addition to the Property or to account for such disposition of a portion of the Property. 8. ADDITIONAL TERMS AND PROVISIONS. The parties hereto agree to any additional terms as may be particularly set forth on Exhibit "C" attached hereto and incorporated herein by this reference. In the event that any provision contained on Exhibit "C" attached hereto shall be in conflict with or otherwise inconsistent with any other provision or provisions of � this Agreement, the terms contained on Exhibit "C" shall control. 9. MUNICIPAL APPROVAL. The Municipality hereby represents and warrants to AETC Housing that the Municipality has taken all requisite action to authorize and approve the execution and delivery of this Agreement and the provision of the Services as contemplated herein and that that no additional approvals are required. 10. AETC HOUSING APPROVAL. AETC Housing hereby represents and warrants to the Municipality that AETC Housing has taken all requisite corporate action to authorize and approve the execution and delivery of this Agreement and that that no additional approvals are required. ll. AMENDMENT. This Agreement may not be amended, altered or modified except by an amendment executed by the Municipality and AETC Housing. 12. GOVERNING LAW This Agreement and the rights and obligations of the parties hereto and any claims or disputes thereto shall be governed by and construed in accordance with the laws of the State of Texas. 13. AGREEMENT TO RLJN WITH THE LAND. The parties acknowledge and agree that this Agreement is to run with the Land and shall be appurtenant to and shall run with the title to the Property and shall inure to the benefit of subsequent owners of the Property. 14. INDEMNIFICATION. The Municipality shall indemnify and save harmless AETC Housing, its Agents and Employees, from and against all claims, damages, losses and expense (including, but not limited to, attorneys' fees), arising out of or resulting from the performance of the work or purchase of the services, sustained by any person or persons, provided that any such claim, damage, loss or expense is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of property caused by the tortious act or negligent act or omission of Municipality or its agents or employees as authorized by law. AETC Housing shall indemnify and save harmless the Municipality, its Agents and Employees from and against all claims damages, losses and expense (including, but not limited to, attorneys' fees), arising out of or resulting from the performance of the work or purchase of the services, sustained by any person or persons, provided that any such claim, damage loss or expense is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of property caused by the tortious act or negligent act or omission of AETC Housing or its agents, employees or subcontractors. ` 15. ENTIRE AGREEMENT. This Agreement embodies the complete agreement and understanding by and among the parties and supercedes and preempts any prior understandings, agreements, or representation by, between, or among, the parties, written or oral, which may have been related to the subject matter hereof in any way. 16. COiJNTERPARTS. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in their respective names by their respective authorized officers and their corporate seals to be affixed, duly attested on this Agreement, on the day and year first hereinabove written. WIT'NESS: AETC HOUSING LP By: It's Authorized Officer WITNESS: THE CITY OF WICHITA FALLS By: EXHIBIT "A" LEGAL DESCRIPTION PARCEL 1 LEGAL DESCRIPTION: A tract of land in Wichita County, Texas and a part of the LEWIS WELLS SURVEY ABSTRACT NO. 323, being more particularly described as follows: COMMENCING at the Southwest corner of said LEWIS WELLS SURVEY; THENCE South 89°48'S7" East, along the south line of said LEWIS WELLS SURVEY, a distance of 29.64 feet to a point; THENCE North 00°11'S9" East a distance of 25.00 feet to a set 1/2" iron pin with RPLS 5735TX cap for corner and the POINT OF BEGINNING; THENCE continuing North 00° 11'S9" East a distance of 2182.73 feet to a set mag nail with RPLS 5735TX tag for corner; THENCE South 89°52'39" East, passing a found cut "X" at a distance of 1192.60 feet for the Southwest corner of Lot 16, Block 4, NORTHRIDGE ESTATES SECTION 2, and continuing for a total distance of 2571.41 feet to a found 1/2" iron pin with Corlett cap for corner; THENCE South 00°25'S3" West a distance of 1530.11 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner and a point of curvature; THENCE Southeasterly along a curve to the left having a radius of 572.96 feet (said curve being subtended by a chord which bears South 11°29'S6" East a chord distance of 236.89 feet) an arc distance of 238.61 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 23°25'44" East a distance of 462.14 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 89°48'S7" West a distance of 2798.48 feet to the POINT OF BEGINNING. Said tract contains 5,670,630 square feet or 130.1797 acres more or less. PARCEL 2 LEGAL DESCRIPTION: A tract of land in Wichita County, Texas and a part of the THOMAS CURRY ABSTRACT NO. 344 and the LEWIS WELLS SURVEY ABSTRACT NO. 323, being more particularly described as follows: COMMENCING at the Northwest corner of said THOMAS CURRY SURVEY; THENCE South 89°48'S7" East, along the north line of said THOMAS CURRY SURVEY, a distance of 1008.02 feet to set 1/2" iron pin with RPLS 5735TX cap for corner and the POINT OF BEGINNING; THENCE North 23°18'S1" West a distance of 156.09 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 19°39'45" West a distance of 241.82 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner and a point of curvature; THENCE Northerly, Northeasterly and Easterly along a curve to the right having a radius of 196.15 feet (said curve being subtended by a chord which bears North 33°04'S6" East a chord distance of 334.99 feet) an arc distance of 401.50 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°26'S5" East a distance of 803.05 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South O1°20'1 l" West a distance of 254.49 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 89°39'31" East a distance of 544.29 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 00°30'37" West a distance of 149535 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°59'S0" East a distance of 403.87 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 00°24'06" West a distance of 30932 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 90°00'00" West a distance of 365.97 feet to a set 1/2" iron pin with RPLS 4769TX cap in concrete for corner; THENCE South 00°24'S6" West a distance of 99.66 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 52°56'S4" West a distance of 159.75 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°36'33" West a distance of 580.71 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 23°18'S1" West a distance of 1754.94 feet to the POINT OF BEGINNING. Said tract contains 2,593,744 square feet or 59.5441 acres more or less. PARCEL 3 LEGAL DESCRIPTION: A tract of land in Wichita County, Texas and a part of the THOMAS CURRY ABSTRACT NO. 344, being mare particularly described as follows: COMMENCING at the Northwest corner of said THOMAS CURRY SURVEY; THENCE South 89°48'S7" East, along the north line of said THOMAS CURRY SURVEY, a distance of 952.97 feet to a point; THENCE South 23°25'44" East a distance of 3217.84 feet to a point; THENCE South 89°45'48" East a distance of 431.55 feet to a point; THENCE South 00°03'17" East a distance of 700.00 feet to a point; THENCE South 07°36'26" West a distance of 105.57 feet; THENCE South 65°50'14" West a distance of 63.12 feet; THENCE South 23°25'44" East a distance of 542.51 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner and the POINT OF BEGINNING; THENCE North 66°32'44" East a distance of 1171.61 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 73°30'31" East a distance of 90.24 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 84° I S'44" East a distance of 9133 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°20'13" East a distance of 473.35 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 00°17'35" West a distance of 229.45 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 21 °27'30" West a distance of 168.84 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 32°34'O1" West a distance of 222.36 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 57°19'13" East a distance of 576.08 feet to a found 2" steel monument in concrete for corner; THENCE South 89°O1'11" East a distance of 114.67 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 11°44'S0" West a distance of 17536 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 88°13'48" East a distance of 149.46 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 12°14'24" West a distance of 1569.72 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 89°49'S6" West a distance of 1017.00 feet to a found 2" steel monument in concrete for corner; THENCE North 23°26'S6" West a distance of 2277.61 feet to the POINT OF BEGINNING. Said tract contains 3,848,824 square feet or 883568 acres more or less. PARCEL 5 LEGAL DESCRIPTION: A tract of land in Wichita County, Texas and a part of the THOMAS CURRY ABSTRACT NO. 344, being more particularly described as follows: COMMENCING at the Northwest corner of said THOMAS CURRY SURVEY; THENCE South 89°48'S7" East, along the north line of said THOMAS CURRY SURVEY, a distance of 952.97 feet to a point; THENCE South 23°25'44" East a distance of 3217.84 feet to a point; THENCE South 89°45'48" East a distance of 431.55 feet to a point; THENCE South 00°03'17" East a distance of 700.00 feet to a point; THENCE South 07°36'26" West a distance of 105.57 feet; THENCE South 65°50'14" West a distance of 63.12 feet; THENCE South 23°25'44" East a distance of 542.51 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 66°32'44" East a distance of 445.56 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner and the POINT OF BEGINNING; THENCE North 23°25'S2" West a distance of 555.19 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 13°39'46" West a distance of 155.39 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 00°59'24" East a distance of 105.96 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 22°47'47" East a distance of 117.33 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 54°56'34" East a distance of 135.42 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°39'33" East a distance of 147.28 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 00°00'00" East a distance of 138.85 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 89°38'03" East a distance of 1316.35 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South Ol°34'20" West a distance of 764.21 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE North 89°20'13" West a distance of 499.87 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 84°15'44" West a distance of 9133 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 73°30'31" West a distance of 90.24 feet to a set 1/2" iron pin with RPLS 5735TX cap in concrete for corner; THENCE South 66°32'44" West a distance of 726.05 feet to a set U2" iron pin with RPLS 5735TX cap in concrete for corner to the POINT OF BEGINNING. Said tract contains 1,305,565 square feet or 29.9716 acres more or less. EXHIBIT "B" DESCRIPTION OF SERVICES, COMPUTATION AND PAYMENT OF SERVICES FEE 1. Conventional Services Conventional services include municipal police, fire, first responder emergency medical services (not including emergency medical transport services), routine street maintenance (limited to pot hole maintenance and crack sealing), and environmental health services provided solely within the Capehart Housing Community as described in E�ibit A. Nothing in this Agreement shall be construed as an agreement by the Municipality to provide private services of any kind to AETC Housing or to provide any services other than those provided for in this agreement and in the manner provided to all properties in the Municipality. 2. Annual Services Fee: During the first year of the Services Agreement the Annual Services Fee for providing conventional services shall be $625.93 per living unit within the Capehart Housing Community that is managed by AETC Housing. During each of the following years of the term of the Services Agreement the Annual Services Fee shall be the prior year's per unit Services Fee increased by three percent (3%) per annum. 3. Pa�ment Audit and Adjustment: The Annual Services Fee for conventional services will be paid in quarterly installments, on the first day of each calendar quarter, with the first installment being due on the first day of the calendar quarter following the date of this Agreement. The prorated Annual Services Fee for any partial calendar quarter falling between the Effective Date and the first day of the calendar quarter following the Effective Date shall be paid together with the first full quarterly payment. Each installment of the Annual Services Fee shall be accompanied by an audit showing the census of the average number of housing units in the Capehart Community managed by AETC Housing during the preceding calendar quarter and the installment of the Annual Services Fee then being paid shall be adjusted and prorated to reflect that census. 4. Renewal and Annual Service Fee: The Municipality and AETC Housing agree that the basis of the calculation of the Annual Services Fee for the first year of each renewal term shall be the general calculation used to arrive at the Annual Services Fee for this Agreement. This will provide the per-household cost for services. To determine the total cost for services, multiply the per-household cost by the number of units under the management of AETC Housing on the first day of the renewal term. 5. Refuse Collection and Disposal Services. The Municipality shall furnish all labor, tools, materials, equipment, transportation, and supervision to manage and perform all operations for the collection, transportation, and the off-base disposal at an approved sanitary landfill of all refuse within the three AETC HOUSING communities as described in E�ibit A. The work shall include individual garbage/refuse containers and an organic recycling program. RESIDENTIAL REFUSE LJNITS The Municipality shall provide residential refuse collection twice per week for each residential unit included as part of the AETC Housing communities. At least one 96 gallon (minimum) container will be provided per residence. Special circumstances may require two containers per unit and shall be approved by AETC Housing on a case-by-case basis. Containers shall be new or serviceable at the commencement of the contract and shall be the same size and color. The containers will have attached lids which close completely preventing spills during high winds or inclement weather. In addition, each container shall be mounted on wheels and marked with a serial number in such a manner that it does not detract from normal appearance. The Municipality shall maintain and provide AETC Housing with an inventory listing of all containers used within the housing area within 1 week of contract commencement. Unserviceable containers identified by AETC Housing will be replaced/repaired within 72 hours of notification to the Municipality. The Municipality shall provide bulk item pick-up as part of the residential service to collect those items too large for the normal containers (i.e. mattresses, furniture, barbeque grills, etc.) Bulk pick-up items will be collected at curbsides on an appointment basis with the Municipality. RESIDENTIAL ORGANIC RECYCLING PROGRAM The Municipality shall provide a residential organic recycling collection once per week on a voluntary basis to residential units included in the three AETC Housing communities. One 96 gallon container will be provided to those residences choosing to participate in the program. Containers shall be new or serviceable at the commencement of the contract and shall be the same size and color (different color from regular refuse containers). The containers will have attached lids which close completely preventing spills during high winds or inclement weather. In addition, each container shall be mounted on wheels and marked with a serial number in such a manner that it does not detract from normal appearance. The Municipality shall maintain and provide AETC Housing with an inventory listing of all recycling containers used within the housing area within 1 week of contract commencement and continue to update that inventory on a monthly basis. Unserviceable containers identified by AETC Housing will be replaced/repaired within 72 hours of notification to the Municipality. COLLECTION TIMES. All refuse and organic recycling must be on the curb before 7:00 a.m. on the day of pickup and empty garbage cans must be removed from the curb no later than 7:00 p.m. that day. The regular pickup schedule will be as follows: 1. Bunker Hill (Section 1) and Wherry will be picked up on Monday and Thursday. Bunker Hill (Section 1) includes: Millennium Court, Ream Ave, Neptune Court, Mercury Court, Mars Court and Lunar Court. 2. Capehart and Bunker Hill (Section 2) will be picked up on Tuesday and Friday. Bunker Hill (Section 2) includes: Galaxy Court, Venus Court, Solar Court, Saturn Court, Pluto Court and Orion Court. 3. For the organic recycling program, containers will be picked up once a week on Wednesdays. The regular pickup schedule will be altered during the weeks that include the following holidays (New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day). On these holiday weeks, regular refuse will not be collected on the recognized wark holiday, but will continue to be collected twice during that week. The Wednesday organic recycling pickup will be canceled during all of these weeks to allow for regular refuse collection. If the holiday falls on a Wednesday, regular refuse will continue to be picked up on the regular schedule, but the organic recycling program will be canceled. The Municipality will provide modified collection schedules for these holiday weeks on its website and the Municipality's Public Access Television Channel. RECREATIONAL AREAS. The Municipality shall provide refuse collection containers for all recreational facilities within the confines of AETC Housing and service them twice a week. At a minimum, one 35 gallon container for each playground shall be provided. AETC Housing will identify those recreational areas requiring more than one refuse receptacle. Each container shall meet the same specifications as those outlined in the Residential Unit paragraph above and shall be designed for public spaces (without wheels). AETC Housing will locate these containers in areas that are accessible to the Municipality's collection vehicles. HOUSEHOLD HAZARDOUS WASTE DISPOSAL GUIDELINES. Paint: Paint that is still in liquid form may not be disposed of in the regular trash. Aerosol Cans: Empty aerosol cans may be disposed of with the regular refuse. Minimize waste by completely using aerosol-packaged products prior to disposal. Motor Oil: Motor oil may not be disposed of in the regular trash. Refrigerators/Freezers/Air Conditioners: These items may not be disposed of through this contract. Drugs: Prescription drugs should be thrown in the trash and the trash should be immediately secured in an area out of the reach of children. Lamps: Incandescent light bulbs may be disposed of with regular trash. Batteries: Small flashlight or calculator-type batteries may be disposed of with the regular trash. REFUSE COLLECTION AND DISPOSAL FEES During the first year of the Services Agreement the Annual Refuse Collection and Disposal Services Fee shall be $152.77 for each container used within the three AETC Housing Communities that are managed by AETC Housing. During each of the following years of the term of the Annual Refuse Collection and Disposal Services Fee shall be the prior year's per unit Services Fee increased by three percent (3%) per annum. Payment Audit and Adjustment: The Annual Refuse Collection and Disposal Services Fee will be paid in quarterly installments, on the first day of each calendar quarter, with the first installment being due on the first day of the calendar quarter following the date of this Agreement. The prorated Annual Refuse Collection and Disposal Services Fee for any partial calendar quarter falling between the Effective Date and the first day of the calendar quarter following the Effective Date shall be paid together with the first full quarterly payment. Each installment of the Annual Refuse Collection and Disposal Services Fee shall be accompanied by an audit showing the census of the average number of refuse and organic recycling containers actively used by AETC Housing during the preceding calendar quarter and the installment of the Annual Refuse Collection and Disposal Services Fee then being paid shall be adjusted and prorated to reflect that census. Renewal and Annual Refuse Collection and Disposal Services Fee: At least three (3) months prior to the end of and any renewal term, the Municipality and AETC Housing will commence good faith negotiations on the renewal of this Agreement for an additional five (5) year term. The Municipality and AETC Housing agree that the basis of the calculation of the Annual Refuse Collection and Disposal Services Fee for the first year of each renewal term shall be the general calculation used to arrive at the Annual Refuse Collection and Disposal Services Fee for this Agreement. 6. Water Services. The Municipality shall provide wholesale water service through the Capehart Water Meter exclusively to the Capehart Housing Community. Water service shall not include maintenance of water lines within the Capehart Housing Community. AETC Housing shall be responsible for maintenance of water lines up to the fire hydrant assembly. The Municipality shall be responsible for maintaining and replacing fire hydrants for fire protection services. However, if water lines servicing the fire hydrants are not adequate to ensure a minimum of 600 gallons per minute of discharge, AETC Housing shall be responsible for repairing or replacing that water line to meet this minimum discharge standard. The Municipality will bill AETC Housing for water services on its monthly utility bill based on the then current Wholesale Water Rate for Treated Water Transmitted Customers. As of the effective date of this agreement, Treated Water Transmitted Customers are charged $1.9550 per 100 cubic feet (748 gallons) of water consumed. This rate may change periodically as new wholesale water rate studies are performed and wholesale rates are adjusted by the Municipality. AETC Housing will be notified of such changes at least 30 days prior to a change to the Wholesale Treated Water Transmitted rate. EXHIBIT "C" ADDITIONAL TERMS AND PROVISIONS 1. So long as the U.S. Air Force or other agency or office of the United States government is the owner of the land that is subject to the Ground Lease, the land and improvements thereon will not be subject to ad valorem taxation, special taxes and/or municipal levy, assessment, charge and impact fees, whether in the nature of taxes or otherwise, for any purpose. 2. So long as the U.S. Air Force or other agency or office of the United States government is the owner of the land that is subject to the Ground Lease, the land and the improvements thereon shall not be subject to municipal zoning, land use, occupancy, leasing, demolition, renovation, new construction, permitting and other regulatory ordinances and regulations in effect in the City of Wichita Falls and administered by the City of Wichita Falls. 3. AETC Housing agrees that all structures and improvements constructed during this Agreement shall be constructed and maintained according to applicable state and local building and fire codes. The Municipality will rely on the review of building code compliance by AETC Housing's lender.