Res 2018-040/approving a contract with TXI Operations, LP, d/b/a Martin Marietta for the sale of reclaimed water

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RECLAIMED WATER SUPPLY CONTRACT This Retail Water Supply Contract ("Contract") is entered into on 2018 (the "Effective Date") between TXI Operations, LP, a Delaware limited partnership doing business as Martin Marietta (hereinafter, "Martin Marietta") and the City of San Marcos, Texas, a municipal corporation (the "City"). Recitals WHEREAS, Martin Marietta operates a cement manufacturing facility and an adjacent limestone quarry, crushing, and processing facility (the "Martin Marietta Facility") in Comal County, Texas that requires a supply of water for operating purposes; and WHEREAS, the City owns and operates a wastewater treatment plant (the "WWTP") with a capacity capable of supplying to Martin Marietta the amount of reclaimed water specified in this Contract-, and WHEREAS, Martin Marietta has investigated the suitability of using reclaimed water from the WWTP in the Martin Marietta Facility for operating purposes, and has satisfied itself as to this suitability; and WHEREAS, the City desires to sell and Martin Marietta desires to purchase reclaimed water under the terms and conditions specified in this Contract; and NOW, THEREFORE, in consideration of the foregoing and the following mutual promises, covenants, benefits, and agreements contained herein, the City and Martin Marietta agree as follows: Article 1. Provision of Reclaimed Water by the, City Section 1..01. Quantity of Water to be Supplied. The City agrees to provide to Martin Marietta, and Martin Marietta agrees to purchase from the City, reclaimed water produced each day at the WWTP'for use at the Martin Marietta Facility for operating purposes. The reclaimed water will be delivered at a location (the "Point of Delivery") on the Martin Marietta property boundary to be designated by mutual agreement of the City and Martin Marietta. The City will make available to Martin Marietta up to 700,000 gallons of reclaimed water each day (the "Maximum Quantity"), which may be taken in smaller quantities at Martin Marietta's sole discretion without lessening the guaranteed amount for any subsequent day, through the delivery facilities to be constructed under this Contract (the "Delivery Facilities"), at the rate described in Section 3.0 1, subject to Section 4.04 related to uncontrollable circumstances. Martin Marietta may purchase additional quantities of reclaimed water from the City in excess of the Maximum Quantity at the same price to the extent they are available from production at the WWTP and deliverable through the Delivery Facilities. The water, shall be delivered in a consistent delivery pressure range, at a flow rate of up to 487 gpm., Higher flow rates may be allowed by the City if system conditions permit,