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22 San Antonio Watei System Letter of Agreement and Authorization to Proceed Mr. Henry Solis Water Distribution / Wastewater Collection Manager City of San Marcos 630 Hopkins San Marcos, Texas 78666 Re: San Antonio Water System Leak Detection Program Services Dear Mr. Solis: This letter sets out the scope, procedure and costs for the provision of leak detection services, through the San Antonio Water System's Leak Detection Program (lithe Program"), for the water service area for City of San Marcos ("Purveyor"), and the roles and responsibilities of each party to this Letter of Agreement. A more specific outline and explanation of the Program is attached hereto as Leak Detection/Location Program Proposal "Exhibit A". If the terms set forth in this letter and attachment(s) are acceptable, please sign in the appropriare space below. General purpose and commitment. The San Antonio Water System ("SAWS") offers the Program's services for the purpose of contributing to conservation and management of the regional water supply from the Edwards Aquifer for the general benefit of all Edwards Aquifer users. The Program is offered to, and as a joint effort with, any purveyor of water pumped from the Edwards Aquifer within the boundaries of the Edwards Aquifer Authority. As SAWS' ratepayers cannot subsidize this program, the services are offered on a "break-even" fee basis. Given the general purpose of the Program and as SA WS has limited monetary, personnel and equipment resources available, the opportunity of Purveyor's participation in the Program is offered with the understanding and requirement that Purveyor be able and committed, financially as well as with adequate personnel and equipment, for the duration of Purveyor's participation, to repairing the leaks identified at the earliest practicable time after identification. Any significant indication that Purveyor is not willing or able to pursue such a committed program of leak repair will be grounds for rejecting or discontinuing Purveyor's participation in the Program. SAWS' role and responsibilities. In entering into this agreement, both parties acknowledge that SA WS' role is that of a leak detection consultant and service-provider to Purveyor, and that SA WS' activities will be limited to work consistent with that role. As part of the pre-survey meeting of representatives of both parties, SAWS prepared and submitted an estimate of Program charges, but it is understood that this estimate shall not be binding on the cost of service provided, which shall be on an hourly and mileage-traveled basis. 1001 E. MARKET ST. P.O. BOX 2449 SAN ANTONIO, TEXAS 78298-2449 210-704-7297