Res 2014-163/Sale of treated water to Crystal Clear Special Utility District

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WATER SUPPLY AGREEMENT This Water Supply Agreement (the "Agreement ") is entered into as of January 1, 2015 between the Crystal Clear Water Supply Corporation ( "Crystal Clear ") and the City of San Marcos, Texas, a municipal corporation ( "City "). Recitals WHEREAS, on July 26, 2013, Crystal Clear and the City filed a sale, transfer, and merger application with the Texas Commission on Environmental Quality ( "TCEQ ") seeking to exchange certain portions of the parties' certificate of convenience and necessity ( "CCN ") areas; and WHEREAS, effective September 1, 2014, the regulatory authority relating to CCNs was transferred from the TCEQ to the Public Utility Commission ( "PUC "); and WHEREAS, Docket No. 42984 currently pending at the PUC will effectuate the amendment of CCNs currently held by Crystal Clear and the City to exchange certain service areas; and WHEREAS, Crystal Clear and the City entered into an Agreement Between the City of San Marcos and Crystal Clear Water Supply Corporation Regarding Retail Water Service Areas on July 11, 2014; and WHEREAS, this Agreement is prompted by the SH123 Wonder World Drive Water / Wastewater Relocation Project and the efficiency that will be served by the City serving the Crystal Clear customers now that will eventually become City customers upon the completion of the transfer of CCN areas; and WHEREAS, it is understood that the City does not intend and by this Agreement will not be obligated to sell to Crystal Clear any amount of water other than is available from the City's capacity in excess of what is necessary and available to meet the needs of current City customers and ensure compliance with the City's current agreements with the Guadalupe Blanco River Authority. NOW, THEREFORE, in consideration of the foregoing and the following mutual promises, covenants, benefits and agreements contained herein, the City and Crystal Clear agree as follows: Article 1. Supply of Water by San Marcos Section 1.01. Quantity of Water to be Supplied. The City agrees to provide to Crystal Clear, and Crystal Clear agrees to purchase from the City Water in such varying amounts as needed by Crystal Clear. The City will make available to Crystal Clear up to 230,400 gallons of Water each day (the "Maximum Daily Quantity "), which may be taken in smaller quantities at Crystal Clear's sole discretion without reducing the Maximum Daily Quantity available for any