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33 <br />• REGIONAL WATER SUPPLY CONTRACT <br />THIS REGIONAL WATER SUPPLY CONTRACT (the "Contract") is dated and <br />entered into as of the 1st day of January, 2008, by and among the Hays Caldwell Public Utility <br />Agency (the "Agency"), a non-profit constituted authority and instrumentality and political <br />subdivision of the State of Texas (the "State"), created and existing under the laws of the State, <br />including Chapter 422 as amended, Texas Local Government Code, and the City of Buda, Texas, <br />the City of Kyle, Texas, the City of San Marcos, Texas, municipalities and political subdivisions <br />of the State, and the Canyon Regional Water Authority, a conservation and reclamation district <br />and political subdivision of the State of Texas, created and existing pursuant to Article XVI, <br />Section 59 of the Texas Constitution and the laws of the State. The City of Buda, Texas, the City <br />of Kyle, Texas, the City of San Marcos, Texas, and the Canyon Regional Water Authority are <br />referred to in this Contract collectively as the "Sponsoring Public Entities" and singularly each as <br />a "Sponsoring Public Entity.". <br />RECITALS <br />WHEREAS, Chapter 422 of the Texas Local Government Code, as amended (the "Act") <br />authorizes public entities to create a public utility agency to plan, finance, construct, own, <br />operate, or maintain facilities necessary for the conservation, storage, transportation, treatment, <br />or distribution of water and wastewater, including plant sites, rights-of-way, and property, <br />equipment, or rights of any kind useful in connection with the conservation, storage, <br />transportation, treatment, or distribution of water and wastewater, and <br />• WHEREAS, the City Councils of the City of Buda, Texas, the City of Kyle, Texas, and <br />the City of San Marcos, Texas and the Board of Trustees of the Canyon Regional Water <br />Authority (collectively, the "Governing Bodies") have collectively determined to authorize and <br />approve the creation of the Agency as their constituted authority and instrumentality to <br />accomplish the specific public purpose to plan, finance, construct, acquire, own, operate, or <br />maintain facilities necessary for the conservation, storage, transportation, treatment, or <br />distribution of water and wastewater, including plant sites, rights-of-way, and property, <br />equipment, or rights of any kind useful in connection with the conservation, storage, <br />transportation, treatment, or distribution of water and wastewater, pursuant to the provisions of <br />the Act, and other applicable law; and <br />WHEREAS, the Sponsoring Public Entities, pursuant to the Act and other applicable <br />law, have authorized the creation of the Agency for the purposes set forth in the Agency's <br />Bylaws, including the issuance of bonds to finance the costs of the Project, as hereinafter <br />defined; and <br />WHEREAS, the Agency intends to own, design, construct, acquire, maintain, and <br />operate the Project in a manner that will allow the Agency to deliver its water to the Sponsoring <br />Public Entities and other potential purchasers on a regional basis; and <br />WHEREAS, the Sponsoring Public Entities and the Agency, exercising their mutual <br />authority and furthering their mutual and urgent inta sts, wish to enter into this Contract in order <br />• <br />-t-