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MEMORANDUM OF AGREEMENT <br />BETWEEN <br />THE CITY OF SAN MARCOS AND CANYON REGIONAL WATER AUTHORITY <br />This Memorandum of Agreement (the "Agreement") is made and effective as of <br />December 5 , 2017 (the "Effective Date") by and between the City of San Marcos, Texas (the <br />"City"), and Canyon Regional Water Authority ("CRWA"). The City and CRWA are each <br />referred to hereinafter as a "Party" and collectively as the "Parties." <br />ARTICLE I <br />RECITALS <br />1.01. Pursuant to an Interlocal Agreement with Texas State University, certain rights to <br />withdraw surface water from the San Marcos River, downstream of the river's crossing with JH <br />- <br />3 5 in the City of San Marcos were allocated to the City (the "Downstream Surface Water"). <br />1.02, The City needs to treat the Downstream Surface Water to a standard suitable for <br />potable water use. Although the City operates a surface water treatment plant, the plant is not <br />ideally situated for treatment of the Downstream Surface Water. <br />1.03. CRWA operates a water treatment plant known as the Hays Caldwell Water <br />Treatment Plant, located in the City of Martindale, Texas that is better situated for withdrawal <br />and treatment of the Downstream Surface Water, <br />1.04. The Parties seek to cooperate to determine the feasibility of withdrawing and <br />treating agreed quantities of Downstream Surface Water at CRWA's Mai tindale water treatment <br />plant for delivery back to the City's potable water system (the "Project") <br />1.05. The purpose of this Agreement is to outline the responsibilities of the Parties and <br />preliminary tasks, which must be undertaken in order to enable the Parties to assess the benefits <br />and viability of entering into a final agreement for participating in the Project. <br />