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104. RESOLUTION NO. 2004- 1 26 R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, APPROVING FIRST AMENDMENTS TO THE AMENDED AND RESTATED RETAIL WATER SUPPL Y, WASTEWATER SERVICES, AND TAX ABATEMENT AGREEMENTS BETWEEN THE CITY AND HAYS ENERGY LIMITED PARTNERSHIP; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENTS; AND DECLARING AN EFFECTIVE DATE. RECITALS: 1. The City entered into amended and restated tax abatement, retail water supply, and wastewater service agreements in July of 2000 with Hays Energy Limited Partnership ("Hays Energy") regarding a new electric generation plant (the "Facility"). The tax abatement agreement requires Hays Energy to use reclaimed water for cooling purposes at the Facility. 2. In late 2003, Hays Energy deactivated the Facility, and there has been no use of reclaimed water since that time, and the City Council has considered declaring a default by Hays Energy. 3. The City staffhas negotiated contract amendments that would provide more security to the City with respect to reclaimed water revenue, while providing flexibility to Hays Energy for its current operations situation, and the City Council wishes to approve these amendments. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. The First Amendment to Amended and Restated Retail Water Supply Contract, the First Amendment to Amended and Restated Wastewater Treatment Services Contract, and the First Amendment to Amended and Restated Tax Abatement Agreement, all as attached to this resolution, are approved. PART 2. The City Manager of the City of San Marcos, Dan O'Leary, is authorized to execute the amendments attached to this resolution. PART 3. This Resolution is in full force and effect immediately upon its passage. ADOPTED on July 26, 2004. ~~ ' Susan Narv~~ Mayor A~~N,~~ JI(!!{. wom~ ~ City Clerk