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to the city's utility connection policies. Operation and maintenance of existing public water and wastewater facilities in the area of the annexed property are the responsibility of the City of San Marcos. Should the owner of this property elect to further develop this property at some point in the future, the City of San Marcos will provide water and wastewater service to the property in accordance with the city's development ordinances and utility extension policies in place at the time of development. Upon completion and dedication of the new facilities to the city, the city shall provide on-going maintenance and operation of those facilities. 6. Operation and Maintenance of Roads and Streets Maintenance of existing public roadways in the annexed areas will begin on the effective date of the annexation. Approximately 4540 linear feet of McCarty Lane right-of-way will be taken into "the city limits as part of this annexation. As land is developed within the annexed area, property owners will be required to construct streets in accordance with the city's existing subdivision policy. Upon completion and dedication of new facilities to the city, the city shall provide on-going operation and maintenance for those facilities. Roads not dedicated to the city shall be considered private roads and shall be maintained by the owner of the property. 7. Electric Service Tract 1, as indicated on the attached Map 1, is located in the San Marcos Electric Utility service area. Service will be provided to the tract in a manner consistent with existing policies for the extension of electrical service to new developments. Tract 2, as indicated on the attached Map 1, is located in the Bluebonnet Electric Cooperative service area and will be subject to the service and extension policies of that company. 8. Operation and Maintenance of Parks, Playgrounds, and/or Swimming Pools No parks, playgrounds and/or swimming pools exist within the proposed annexation area. The same standards and policies now established and in force within the city limits will be followed in maintaining and expanding recreational facilities to serve the annexed area. Upon annexation, the owners and residents of property located within the annexed area shall be entitled to the use of all municipal parks and recreational facilities, subject to the same restrictions, fees and availability that pertains to the use of those facilities by other citizens ofthe city. 9. Operation and Maintenance of Other Public Facilities, Buildings and Services No other public facilities, buildings or services exist within the annexed area. The same standards and policies now established and in force within the city limits will be followed in maintaining and expanding other public facilities, building and services. Upon annexation, the owners and residents of property located within the annexed area shall be entitled to the use of all municipal facilities, buildings and services, subject to the same restrictions, fees and availability that pertains to the use of those facilities and services by other citizens of the city. McCarty Lane Annexation (AN-OI-OI) Service Plan PAGE 2 of 2 of EXHIBIT B October 24, 2000