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<br />B. San Marcos and Kyle may designate substitute or additional points of delivery by mutual <br />agreement of the City Managers of the parties. The points of delivery designated in this manner, <br />or otherwise identified in this Agreement are collectively referred to as the "Points of Delivery". <br /> <br />Section 2. Meters. Line Extensions and Connections. <br /> <br />A. Kyle shall furnish, and San Marcos shall install and maintain, the necessary meters, <br />equipment and devices, of a type approved by San Marcos, to measure the quantity of treated <br />water delivered by San Marcos to Kyle under this Agreement. These meters and other <br />equipment shall be the property of San Marcos. Kyle shall have access to the equipment at all <br />reasonable times, but the reading, calibration and adjustment thereof shall be done only by <br />employees or agents of San Marcos. The results of each reading of the meter or meters shall be <br />recorded and maintained in San Marcos' office, and representatives of Kyle may inspect this <br />information during reasonable business hours. <br /> <br />B. San Marcos will have the right to calibrate the meters at any time. Kyle shall have the right <br />to request San Marcos to calibrate the meters not more than once in each 365 day period in the <br />presence of a representative of Kyle. If a test shows a meter to be inaccurate in excess of 5%, <br />San Marcos shall repair or replace the meter, and will make an adjustment to Kyle's account for <br />a period extending back to when the inaccuracy began, if it can be ascertained; and if it cannot be <br />ascertained, then for a period extending back one-half of the time elapsed since the last date of <br />calibration. Adjustment in any event will not go back more than six months. No adjustment will <br />be made for an inaccuracy of 5% or less. If a meter is out of service or out of repair for any <br />reason so that the amount of water delivered through it cannot be measured, the water delivered <br />in the period the meter is out of service or out of repair shall be estimated and agreed upon by the <br />parties on the basis of any check meter that has been installed and is accurately registering. <br />Otherwise, the amount of water delivered may be estimated either by 1) correcting the error if <br />the percentage of the error is ascertainable by calibration tests or mathematical calculation, or 2) <br />estimating by reference to deliveries during the preceding period under similar conditions when <br />the meter was registering accurately. The unit of measurement for all water delivered hereunder <br />shall be 1,000 gallons of water, U.S. Standard Liquid Measure. <br /> <br />C. Kyle will construct a water line extension for the initial Point of Delivery from the nearest <br />suitable point of the water line serving the Champions Business Park subdivision to the Point of <br />Delivery. Kyle will also construct the connection at each Point of Delivery. All such <br />construction will be in accordance with plans and specifications that are subject to approval by <br />San Marcos. The connections will be of a nature that prevents the backflow of water from <br />Kyle's water system to San Marcos' water system. <br /> <br />Section 3. Compensation. <br /> <br />A. Kyle shall pay San Marcos 42~ for each thousand gallons of water measured through the <br />meters at the Points of Delivery. This rate shall be subject to change as of each anniversary of <br />the date of this Agreement by the amount of the change in the Consumer Price Index for All <br />Urban Consumers, published by the U.S. Department of Labor, for the 12 month period <br />preceding the month in which the anniversary date occurs. <br /> <br />2 <br />