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~ffice of the City Manager <br /> <br />126. <br /> <br />December 9, 2003 <br /> <br />Bill West <br />General Manager <br />Guadalupe-Blanco River Authority <br />933 East Court Street <br />Seg~in, TX 78155 <br /> <br />Re: Amendments to Water Purchase, Regional Water Supply Project, and Water <br />Treatment Plant Operations Agreements <br /> <br />Dear Mr. West: <br /> <br />This letter, upon countersignature below by you, will constitute an agreement (the "Letter <br />Agreement") between the City of San Marcos (the "City") and the Guadalupe-Blanco River <br />Authority ("GBRA") to amend the following agreements between the City and GBRA: 1) the <br />Water Purchase Contract dated October 10, 1989 (the "Water Purchase Contract"), 2) the <br />Agreement between the City of San Marcos and Guadalupe-Blanco River Authority dated July 1, <br />1997 (the "Regional Project Agreement"), and the San Marcos Regional Surface Water <br />Treatment Plant Operation Contract dated May ll, 1999 (the "Operation Contract"). In <br />consideration of the mutual benefits to be received by the City and GBRA as a result of the <br />continuation of the Water Purchase Contract, the Regional Project Agreement, and the Operation <br />Contract, as amended in this Letter Agreement, the City and GBRA agree as follows: <br /> <br />1) The GBRA Reservation in Section 7 of the Regional Project Agreement is extended until <br /> January 31, 2007. <br /> <br />2) <br /> <br />The GBRA Reservation in Section 7 of the Regional Project Agreement shall be increased <br />from 1.5 MGD to 2.0 MGD, such increase to be effective upon TCEQ's approval of re-rating <br />of the capacity of the San Marcos Water Treatment Plant to approximately 9.0 MGD, or July <br />1, 2005, whichever is later. <br /> <br />3) <br /> <br />GBRA agrees that commencing on January 1, 2004 and ending on the termination date of the <br />Operation Contract, GBRA will reduce the amount of the Service Fee as defined in Section <br />6.01 of the Operation Contract to a fixed am~ual charge of $615,000, billed in monthly <br />increments of $51,250. Changes to the Service Fee for subsequent years will be subject to <br />adjustment based on CP! changes as described in Section 6.10 of the Operation Contract. <br /> <br />City Hall · 630 East Hopkins · San Marcos, Texas 78666 · 512/393-8100 · FAX 512/396-4656 <br /> <br /> <br />