Res 2016-153/approving a Water Supply agreement for the sale of treated water to the City of Kyle

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allowed by San Marcos, in its sole and absolute discretion, if not detrimental to operations, service pressures or flows in the San Marcos water distribution system. The unit of measurement for all Treated Water delivered hereunder shall be 1,000 gallons of water, U.S. Standard Liquid Measure. San Marcos does not guarantee the delivery of the quantities of water under this paragraph and its obligation to supply water hereunder is subject to Section 4.02 or any other limitations on San Marcos' ability or obligation to supply water as may be provided in this Agreement. Section 1.02. Additional Quantities of Water. Kyle may request to purchase, and San Marcos may supply additional quantities of Treated Water in excess of the Annual Limit and Maximum Quantity at the applicable rate established under this Agreement and, subject to availability and capacity of San Marcos' water distribution facilities as determined by San Marcos, in its sole and absolute discretion. San Marcos, may, but is in no manner obligated to, supply all or any portion of such additional amounts of Treated Water requested. Section 1.03. Other Users of San Marcos Water Distribution and Treatment Facilities. San Marcos will endeavor to ensure that any connections made to the San Marcos Treatment Plant and/or its water distribution facilities to serve other users are equipped and operated in such a way that San Marcos is able to comply with its supply obligations to Kyle under this Agreement. In the event of a circumstance set forth in Section 4.02 which reduces available Treated Water below the Annual Limit or Maximum Daily Quantity, San Marcos shall not reduce Kyle's supply under this Agreement by a percentage greater than reduced for any other wholesale purchaser of water from San Marcos. Section 1.04. Point of Delivery. The Treated Water will be delivered at such point of delivery (the "Point of Delivery") designated in that certain Amended and Restated Water Transportation Agreement entered into between Kyle and San Marcos in 2002 (the "Amended and Restated Water Transportation Agreement"), which, as of the date of this Agreement is designated as a Ground Storage Tank constructed by Kyle at a point approximately 1,000 feet east of the intersection of Interstate Highway 35 and an eight-inch tap into the San Marcos water main at the northwestern perimeter of the Champions Business Park Subdivision along Yarrington Road, Hays County, Texas. The parties may mutually agree in writing to designate a new Point of Delivery or other future points of delivery. Section 1.05. Quality of Water to be Supplied. San Marcos agrees that the Treated Water supplied under this Agreement will be of the same quality as potable water made available by San Marcos within all areas covered by its Certificate of Convenience and Necessity (the "Delivered Water Quality"). Kyle shall be solely responsible for improving or otherwise altering the Delivered Water Quality to meet any inconsistent standards it deems suitable for its needs. Section 1.06. Operation and Maintenance of Facilities. This Agreement is subject to the requirements for the operation and maintenance of all existing facilities, equipment, meters, pipelines and connections necessary for the delivery of water to Kyle under the Amended and Restated Water Transportation Agreement. No new construction or installation of additional facilities, equipment, meters, pipelines or connections by either party shall be mandated by this Agreement, it being the understanding of the parties that such facilities, equipment, pipelines, 2