Res 2014-133/MOU between TXState, the City and EAA regarding funding for the expansion of the City’s reclaimed water system

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MEMORANDUM OF UNDERSTANDING BETWEEN THE EDWARDS AQUIFER AUTHORITY THE CITY OF SAN MARCOS, AND TEXAS STATE UNIVERSITY FOR EXPANSION OF THE CITY OF SAN MARCOS' RECLAIMED WATER SYSTEM This Memorandum of Understanding ( "MOU ") is made by and between the City of San Marcos, Texas ( "City "), Texas State University ("University ") and the Edwards Aquifer Authority ( "EAA ") (collectively the "Parties "). The City is a municipal corporation, and has its principal offices located at 630 E. Hopkins, San Marcos, Texas 78666. The University is an institution of higher education, and has its principal offices located at 601 University Dr„ San Marcos, Texas 78666. The EAA is a political subdivision of the State of Texas that was created with all the powers, rights and privileges necessary to manage, enhance, and protect the Edwards Aquifer ("Aquifer "), and has its principal offices located at 900 E. Quincy, San Antonio, Texas 78215. 1. Purpose. The Parties share a commitment to long -term sustainability of the Aquifer, which is the primary source of water for approximately two million South Texans, including the citizens of San Marcos and the students, staff, and faculty of the University. The purpose of this MOU is to establish the basis for an agreement between the City, the University, and the EAA for the expansion of the City's reclaimed water system. In so doing, a further purpose of this MOU is to document the EAA's intent to commit certain financial assistance for reclaimed water system expansion as described in this MOU and to satisfy the intent of Resolution and Order No. 12 -11 -673 of the Edwards Aquifer Authority Board of Directors adopted on December 28, 2011. 2. Background. The City developed a reclaimed water system in 1999 to provide cooling water to a power generating plant located southeast of the City. In subsequent years, the City has added other customers for its reclaimed water system. The University has identified a need for new thermal plants resulting from continued campus growth, which comes at a time when the University, the City, and others who rely on the Aquifer are focused on diversifying their water supplies, partially in support of the Edwards Aquifer Habitat Conservation Plan ( "EAHCP "), and the regional effort to meet the increasing water supply needs of the region. The City and the University have conducted a study of the feasibility of expanding the City's existing reclaimed water system to serve the needs of the City, the University, and other private sector users. The feasibility study identified and categorized existing and potential uses and developed a proposed multi -year phased plan for expanding the City's existing reclaimed water system ("Project "). The expanded use of the City's existing reclaimed water system would foster the conservation of groundwater from the Aquifer. This MOU focuses on Phase 1 of the Project. 3. Costs. The City estimates Phase 1 of the Project will cost approximately $3,036,300, to fully implement. 11212.03001/ DFRO/ MISC -1/ 1231709v. 3