Res 2023-038/Approving agreement providing for the City to sell potable treated water on a wholesale basis to the county line special utility district.

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This Water Supply Agreement (the "Agreement") is entered into as of the Effective Date defined below between County Line Special Utility District ("CLSUD"), a Texas special utility district and the City of San Marcos, Texas, ("SMTXU"), a Texas municipal corporation. Recitals WHEREAS, SMTXU maintains a reserved raw water capacity that currently exceeds its current and near future water needs; and WHEREAS, in order to preserve such reserved water capacity to meet future long-term water demands, SMTXU pays for such excess and unused capacity; and WHEREAS, CLSUD is in need of additional water supplies to meet its current and near term demands and seeks to purchase water from SMTXU's excess and unused water capacity; and WHEREAS, without impairing its ability to meet current and near-term needs, SMTXU has sufficient raw water capacity to supply the amount of water requested by CLSUD; and WHEREAS, SMTXU's groundwater production facilities and the San Marcos Surface Water Treatment Plant (collectively, the "SWTP") are capable of producing and treating such water; and WHEREAS, it is understood that SMTXU does not intend and by this Agreement will not be obligated to sell to CLSUD any amount of water other than what is contemplated by the terms and conditions of this Agreement; and WHEREAS, SMTXU and CLSUD desire to enter into this Agreement for SMTXU to assist CLSUD to meet its water supply needs, as provided in more detail, herein. NOW, THEREFORE, in consideration of the foregoing and the following mutual promises, covenants, benefits and agreements contained herein, SMTXU and CLSUD agree as follows: Article 1. Supply of Treated Water by SMTXU Section 1.01. Quantity of Water to be Supplied. SMTXU agrees to provide to CLSUD, and CLSUD agrees to purchase from SMTXU, potable water treated at the SWTP (the "Treated Water") on a wholesale basis and in such varying amounts as needed by CLSUD, but not to exceed one million gallons per day. SMTXU will make available to CLSUD up to 1,000,000 gallons of Treated Water each day (the "Maximum Daily Quantity"), which may be taken in smaller quantities at CLSUD's sole discretion without reducing the Maximum Daily Quantity available for any subsequent day. The Treated Water shall be delivered in a consistent delivery pressure range, at a flow rate of up to 694 gallons per minute per day, unless otherwise agreed by CLSUD and SMTXU. Higher flow rates may be allowed by SMTXU, in its sole and absolute discretion, Version 2023.02.15