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<br /> 18 <br /> AGREEMENT CONCERNING CREATION AND OPERATION <br /> OF <br /> HAYS COUNTY MUNICIPAL UTILITY DISTRICT NO. 3 <br /> THE STATE OF TEXAS § <br /> § KNOW ALL PERSONS BY THESE PRESENTS: <br /> COUNTY OF HAYS § <br /> THIS AGREEMENT is made and entered into by and among the <br /> City of San Marcos, Texas (hereinafter referred to as the <br /> "City"), a municipal corporation situated in Hays County, Texas, <br /> acting herein by and through its undersigned duly authorized City <br /> Manager, as authorized by specific action of its City Council; <br /> Hays County Municipal Utility District No. 3 (hereinafter the <br /> "District"), a municipal utility district to be created by the <br /> Texas Water Commission and operating Dursuant to Chapter 54 of <br /> the Texas Water Code; and Harriet M. Sproull, Trustee for <br /> San Marcos Joint Venture, (hereinafter "Developer"), the holder <br /> of legal title to 241.551 contiguous acres situated wholly in <br /> Hays County, Texas, and lying wholly within the extraterritorial <br /> jurisdiction of the City, which land is more particularly <br /> described in Exhibit "A", attached hereto and incorporated herein <br /> by reference. <br /> For and in consideration of the premises and the mutual <br /> agreements, covenants, and conditions hereinafter set forth, the <br /> parties hereto hereby contract and agree as follows, to wit: <br /> ARTICLE I <br /> COMPLIANCE WITH CITY'S UTILITY DISTRICT ORDINANCE <br /> A. Except as otherwise provided herein, the consent to <br /> the creation of the District hereby granted by the City is <br /> subject to, and the creation and operation of the District shall <br /> be in accordance with the Utility District Ordinance adopted by <br /> -1- <br />