Res 2026-004 approving a compromise and agreement with Jaime Lynn Harper providing for the city to purchase a 2.331 acre water, wastewater, and recycled water easement located along San Marcos Highway, also known as State Highway 80

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Tract No. 16.0003 COMPROMISE AND SETTLEMENT AGREEMENT This Compromise and Settlement Agreement (the "Agreement") is made effective as of , 2025 (the "Effective Date"), by and between City of San Marcos, Texas ("City"), and Jaime Lynn Harper ("Landowner," whether one or more), (City and Landowner being referred to herein either individually and/or collectively as "Party" or "Parties," unless otherwise required by the context). I. RECITALS 1. WHEREAS, Landowner is the legal owner of the property (the "Pro er ") more particularly described in Condemnor's Original Petition in Condemnation (the "Petition") in Cause No. 24CV-07635, City of San Marcos, Texas v. Jaime Lynn Harper, in the County Court at Law of Caldwell County, Texas (the "Lawsuit"), wherein City sought certain water, wastewater, and recycled water pipeline rights set forth in the Petition; and 2. WHEREAS, through the Petition, City sought to acquire easements on, in, over, under, through and across the Property necessary for the construction, installation, and operation of the City water, wastewater and recycled water system, with the easement and temporary workspace area being more particularly described and depicted in the exhibits attached to the Petition, which shall be referred to herein collectively as the "Easement"; and 3. WHEREAS, the Parties acknowledge the costs, hazards, uncertainties, and pitfalls of continued litigation and desire to enter into this Agreement in order to settle and lay to rest certain controversies in order to avoid further costs, litigation and risks; and the Parties have agreed to settle the Lawsuit pursuant to the terms and conditions as set forth herein. NOW, THEREFORE, AS MATERIAL CONSIDERATION AND INDUCEMENTS TO THE EXECUTION OF THIS AGREEMENT AND IN CONSIDERATION OF THE MUTUAL PROMISES AND COVENANTS MADE, INCLUDING THE RECITALS SET FORTH ABOVE AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS ACKNOWLEDGED, THE PARTIES HEREBY CONTRACT, COVENANT AND AGREE AS FOLLOWS: II. AGREEMENT 4. Landowner and City agree to enter into the City of San Marcos Utility Easement Agreement in the form attached hereto as Exhibit "A" (the "Easement Agreement"). 5. As consideration for this Agreement, and the Easement Agreement, City shall pay to Landowner the difference between $259,000.00 which was the amount of the Special Commissioners' Award deposited into the registry of the court and $412,000.00, which difference is $153,000.00, as total compensation (the "Settlement Sum"). The Settlement Sum shall be paid as follows: a) This transaction will be closed at the following title company ("Title Company"): COMPROMISE AND SETTLEMENT AGREEMENT — Page I of 5