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<br />DRAFT AGREEMENT Page 2 <br /> City's Extraterritorial Jurisdiction of said develop- <br /> ments. Relinquishment and transfer of property to be <br /> effective not less than three (3) years from city's <br /> notification, in writing to Maxwell that city is <br /> proceeding with annexation of said area where improve- <br /> ments are located. No transfer or relinquishment of <br /> service area will be effective until annexation of <br /> properties into the city of San Marcos. <br />5. Co-operate with the City on the maintenance of the <br /> parts of the Maxwell system to be transferred during <br /> the notice period. <br />6. Allow the City to add customers to city's system (not <br /> Maxwell's) 1n the proposed annexation area during the <br /> notice period provided said customers are served, <br /> wholly by the city's system and allow City to collect <br /> from such new customers during the notification period. <br />7. Provide a copy of proposed commercial and/or resident- <br /> ial developments in the City's Extraterritoral Jursi- <br /> diction for review and recommendations. <br />The City agrees to: <br />1. Develop standards and specification for water utility <br /> system improvements in the City's extraterritorial <br /> jursidiction, and deliver a copy of said standards and <br /> specification to the Office of Maxwell and make timely <br /> inspections of the installation of such water utility <br /> system. <br />2 Develop a utility Master plan for areas in the City's <br /> affected extraterritorial jurisdiction. <br />3. Negotiate in good faith with Maxwell to determine <br /> compensation for those facilities and customers <br /> annexed into the city and added to the city water <br /> system who Maxwell has served prior to this agreement. <br />4. Relinquish for a minimum three (3) year period, and in <br />