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<br />132 <br /> <br />AMENDMENT NO.1' TO AGREEMENT BETWEEN CITY OF SAN MARCOS AND <br />GUADALUPE-BLANCO RIVER AUTHORITY FOR <br />SAN MARCOS REGIONAL WATER SUPPLY PROJECT <br /> <br />This Amendment No. 1 (this "Amendment") to the Agreement between the <br />~ity of San Marcos and the Guadalupe-Blanco River Authority for the San <br />[arcos Regional Water Supply Project is made and entered into as of March 11 <br />.998. <br /> <br />Recitals <br /> <br />The City of San Marcos (the "City") and the Guadalupe-Blanco River <br />Authority C'GBRA") entered into an agreement dated July 11 1997 (the <br />"Agreement") for the development of the San Marcos Regional Water Supply <br />Project (the "Project"). The parties wish to amend the Agreement with regard <br />to payments to be made by GBRA to the City for water treatment and delivery <br />from the City'S water treatment plant. <br /> <br />The City'S budgetary and rate-making policies provide for the City'S <br />General Fund to charge a fee (the "Franchise Fee") to the City'S Water and <br />Wastewater Fund for the use of City real property, streets I alleys and <br />utility easements by the City'S water and wastewater utility systems. The <br />amount of this fee is 8% of the revenues of the Water and Wastewater Fund. <br /> <br />In order to encourage participation in the proj ect by other water <br />utility systems in the San Marcos area, the City is willing to provide a <br />temporary waiver of the Franchise Fee in rates charged by the City for water <br />treatment and delivery under the Agreement. <br /> <br />Agreement <br /> <br />For and in consideration of the mutual promisesl covenants I obligations <br />and benefits described in this Amendment, the City and GBRA agree to amend <br />the Agreement as follows: <br /> <br />1. Section 23 is amended as follows (italics indicate added wording) <br /> <br />Section 23. Payments for Water Treatment and Delivery. <br /> <br />Rates charged to GBRA for treatment and delivery of treated water, <br />if anYI to GBRA at the Point of Delivery shall be set by the City in <br />accordance with accepted rate-making practices and billed on a monthly <br />basis; providedl that the rate charged to GBRA for treated water to be <br />supplied by GBRA to a GBRA Customer shall not, during the first year of <br />participation in the Project by the GBRA Customerl include the amount of <br />any franchise fee or similar fee charged by the City's General Fund to <br />