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~~ ~ • B. As to these units, Developer designates the following as production units and as custom lots: Production Units: 43 Custom Units: II. CONTRIBUTIONS A. Existing Fees Developer shall pay the City all fees in effect at the time each building permit or subdivision approval is issued, including any school impact fee which may then be in force. B. Public Needs In order to meet public improvement needs made necessary by ongoing residential development, Developer shall pay a growth management fee of $750 per dwelling unit at the time a building permit is issued for each such unit. C. Capital Improvements In addition to the fees set forth above, Developer shall pay City a capital improvements fee of $2,330 per dwelling unit, in order to meet capital improvements needs made necessary by residential growth. This fee is payable at the time a building permit for each unit is issued, shall be increased $100 per unit every year hereafter, and may be replaced if the City adopts a comprehensive capital facilities fee. III. SEWAGE CAPACITY AND WATER AVAILABILITY A. City shall use its best efforts to reserve sewer capacity for the Project, but this Agreement does not guarantee the availability of sewage treatment capacity to serve the Project; building permits may be withheld if the City determines that sewage treatment capacity is not available at the time building permits the Project are applied for. B. This Agreement also does not guarantee the availability of sufficient water to serve the Project. The City shall withhold building permits for the Project if, at the time building permits are applied for, mandatory water rationing is in effect, unless the City has adopted a water offset program and unless the Developer is participating in the program. Notwithstanding the Developer`s participation in such program, the City may withhold building permits if the City determines that sufficient water is not available at the time building permits for the Project are applied for. - 2 -