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19-R-131 Interlocal Agreement with Cibolo Creek Municipal Authority regarding the Northcliffe wastewater plant currently operated by Guadalupe River AuthorityRESOLUTION NO. 19 -R -131 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER AN INTERLOCAL AGREEMENT FOR WHOLESALE TREATMENT OF WASTEWATER SERVICES BETWEEN THE CITY OF SCHERTZ AND THE CIBOLO CREEK MUNICIPAL AUTHORITY (CCMA) REGARDING THE NORTHCLIFFE WASTEWATER PLANT CURRENTYLY OPERATED BY GUADALUPE RIVER AUTHORITY (GBRA) AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz is a home rule municipality incorporated in Guadalupe County pursuant to the Statutes of the State of Texas, and as such is authorized to buy, sell, and lease real property; and WHEREAS, the Cibolo Creek Municipal Authority is a municipal utility district authorized to enter into contracts related to real property; and WHEREAS, the City receives wastewater service from CCMA on a wholesale basis pursuant to that certain Contract for Sewage Service, dated February 15, 1985 (the "Schertz- CCMA Contract "); and WHEREAS, the City also receives wastewater service from Guadalupe - Blanco River Authority (GBRA) on a wholesale basis pursuant to that certain Treated Wastewater Service Agreement among the City of Schertz, Cibolo Creek Municipal Authority and Guadalupe -Blanco River Authority, dated July 31, 2008, as amended (the GBRA Agreement) to provide service to the Northcliffe Service Area (as hereinafter defined); and WHEREAS, pursuant to the GBRA Agreement, GBRA provides wastewater service from the wastewater treatment plant that GBRA is authorized to own and operate pursuant to Texas Pollutant Discharge Elimination System Permit No. WQ0011751001 (the "Northcliffe Plant "); and WHEREAS, pursuant to the GBRA Agreement, the City can also divert a portion of wastewater flows from the Northcliffe Service Area to CCMA's regional wastewater treatment facilities ( "CCMA Facilities "); and WHEREAS, the City desires to divert all flows from the Northcliffe Service Area to the CCMA Facilities and cease operation of the Northcliffe Plant; and WHEREAS, GBRA does not object to closing of the Northcliffe Plant; and WHEREAS, CCMA agrees to accept all flows from the Northcliffe Plant to its CCMA Facilities WHEREAS, the City agrees to pay a one -time lump sum payment of $3,674,409.80 to CCMA's regional wastewater collection and treatment system to provide wastewater service to the City for all of the existing flows from the Northcliffe Service Area or the equivalent metered flow of wastewater as of the Effective Date; and WHEREAS, the City agrees to pay all applicable wastewater treatment fees imposed by CCMA pursuant to its rate order and the Schertz -CCMA Contract. WHEREAS, the City agrees to pay all applicable wastewater treatment fees imposed by CCMA pursuant to its rate order and the Schertz -CCMA Contract. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute the Interlocal Agreement with Cibolo Creek Municipal Authority for wholesale treatment of wastewater services as set forth in Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 24th day of September 2019. CITY OF,SWTZ, TEXAS R. Carpenter, Mayor ATTEST: INTERLOCAL AGREEMENT BETWEEN CIBOLO CREEK MUNICIPAL AUTHORITY AND THE CITY OF SCHERTZ THE STATE OF TEXAS § § COUNTY OF GUADALUPE § PREAMBLE: KNOW ALL MEN BY THESE PRESENTS: The Parties to this Agreement (the "Agreement ") are the Cibolo Creek Municipal Authority ( "CCMA ") and the City of Schertz (the "City ") (collectively referred to as the "Parties "). The Parties are authorized to enter into this Agreement pursuant to the lnterlocal Cooperation Act, Texas Government Code Chapter 791, specifically Section 791.026, Chapter 8166 of the Texas Special District Local Laws Code, Chapter 30 of the Texas Water Code, and other applicable laws. This Agreement is made for the purpose of efficient and effective use of resources and is in the best economic interests of the Parties. CCMA and the City are both political subdivisions of the State of Texas. RECITALS WHEREAS, the Parties have identified certain common, legitimate public purposes in entering into this Agreement; and WHEREAS, the governing bodies of CCMA and the City have each met in legally convened open meetings and authorized their respective representatives to enter into this Agreement; and WHEREAS, the City receives wastewater service from CCMA on a wholesale basis pursuant to that certain Contract for Sewerage Service, dated February 15, 1985 (the "Schertz- CCMA Contract "); and WHEREAS, the City also receives wastewater service from the Guadalupe - Blanco River Authority ( "GBRA ") on a wholesale basis pursuant to that certain Treated Wastewater Services Agreement among the City of Schertz, Cibolo Creek Municipal Authority and Guadalupe- Blanco River Authority, dated July 31, 2008, as amended (the "GBRA Agreement "), to provide service to the Northcliffe Service Area (as hereinafter defined); and WHEREAS, pursuant to the GBRA Agreement, GBRA provides wastewater service from the wastewater treatment plant that GBRA is authorized to own and operate pursuant to Texas Pollutant Discharge Elimination System Permit No. WQ0011751001 (the "Northcliffe Plant "); and WHEREAS, pursuant to the GBRA Agreement, the City can also divert a portion of wastewater flows from the Northcliffe Service Area to CCMA's regional wastewater treatment facilities ( "CCMA Facilities "); and 4600189.4 Page 1 of 7 WHEREAS, the City desires to divert all flows from the Northcliffe Service Area to the CCMA Facilities and cease operation of the Northcliffe Plant; and WHEREAS, GBRA does not object to closing of the Northcliffe Plant; and WHEREAS, CCMA agrees to accept all flows from the Northcliffe Plant into the CCMA Facilities; and A. WHEREAS, the City agrees to pay a one -time lump sum payment of $3,674,409.80 to reserve capacity within CCMA's regional wastewater collection and treatment system to provide wastewater service to the City for all of the existing flows from the Northcliffe Service Area or the equivalent metered flow of wastewater as of the Effective Date; and WHEREAS, the City agrees to pay all applicable wastewater treatment fees imposed by CCMA pursuant to its rate order and the Schertz -CCMA Contract. NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the sufficiency of which are hereby conclusively acknowledged, and subject to the terms and conditions hereinafter set forth, CCMA and the City mutually undertake, promise, and agree as follows: I. DEFINITIONS B. "CCMA Facilities" refers to the regional treatment facilities constructed by CCMA to receive, treat, and dispose of wastewater diverted by the City from the Northcliffe Service Area pursuant to the GBRA Agreement. C. "Diversion Facilities" refers to the lift station(s), collection pipelines and other facilities constructed by the City to convey the Northcliffe Service Area flows to the CCMA Facilities pursuant to the GBRA Agreement. D. "Effective Date" means the date the Agreement is executed by both Parties, as included on the signature page. E. "Force Majeure" means acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, orders of any kind of the Government of the United States or the State, or any civil or military authority, insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply, or on account of any other causes not reasonably within the control of the Party claiming such inability. F. "Northcliffe Service Area" the approximately 805.872 acres of land within the boundaries of the former Guadco Municipal Utility District No. 1 and Guadco Municipal Utility District No. 2. A legal description of the Northcliffe Service Area is attached hereto as Exhibits IA. 1 B. 2A, and 2B. 4600189.4 Page 2 of 7 G. "Notice" occurs upon written communication by one party to the other as specifically defined in this Agreement. Notice to the Parties is satisfied by written communication to the address designated in Section V.A., herein. H. "Party" and "Parties" mean, respectively, the City and CCMA individually and collectively. I. "System" means all of the wastewater equipment and facilities owned by CCMA, including the CCMA Facilities, which are used for the collection, transportation, treatment, or disposal of wastewater received from the City and any expansions thereof. The System shall not include any of the internal wastewater collection and pumping facilities, and associated connection facilities, such as the Diversion Facilities, that are owned by City. J. Use of the singular shall include the plural, and vice versa, where the usage permits reasonable construction of this Agreement. II. TERM OF AGREEMENT This Agreement shall commence upon the Effective Date and shall continue in force and effect until (i) February 15, 2035 or (ii) until all debt of the System has been retired, whichever shall last occur. III. WASTEWATER TREATMENT SERVICE The Parties, in consideration of the mutual promises and covenants contained in this Agreement, agree as follows: A. Upon completion of additional treatment facilities, by September 30, 2019 at the CCMA Facilities known as the "D Train," CCMA will provide the City written notice that it is capable of accepting all existing flows as of the Effective Date from the Northcliffe Service Area through the CCMA Facilities, as such facilities may be expanded from time to time. B. Upon receiving written notice from CCMA of its ability to receive all existing flows as of the Effective Date from the Northcliffe Service Area, the City agrees to pay for a portion of the CCMA Facilities known as the "D Train ", and portions of the Schertz Lift Station, Force Main, and Gravity Line accepting flows from the City of Schertz or an equivalent metered amount through the CCMA Facilities and shall deliver such flows to the CCMA Facilities through the Diversion Facilities, as such facilities may be expanded from time to time. C. CCMA shall own, operate, and maintain the CCMA Facilities at all times in accordance with applicable law. D. The City shall own, operate, and maintain the Diversion Facilities at all times in accordance with applicable law. E. The operation, maintenance, and/or expansion of the Diversion Facilities will be the responsibility of the City at no cost to CCMA. 4600189.4 Page 3 of 7 F. CCMA shall have no responsibility or liability regarding the closure of the Northcliffe Plant, including, but not limited to, complying with state and federal regulatory requirements for closure of wastewater treatment facilities. IV. FUNDING AGREEMENT A. The City shall pay a one -time lump sum payment in the amount of $3,674,409.80 for the portion of the CCMA Facilities accepting the flows from the Northcliffe Service Area. This payment amount is based on the existing metered flow from the Northcliffe Plant of 500,128 gallons, a living unit equivalent ( "LUE ") of 245 gallons per day and each LUE being assessed a fee of $1,800.00. B. Within thirty (30) days of receiving written notice from CCMA of its ability to receive all existing flows as provided in Section III.A., the City shall pay CCMA the lump sum payment. C. In addition to the lump sum payment the City shall also pay all applicable wastewater service fees in accordance with the Schertz -CCMA Contract and CCMA's rate order, as that order may be amended from time to time. After the Effective Date, any future increases in wastewater flows from the Northcliffe Service Area will be governed by, and assessed fees pursuant to, the Schertz -COMA Contract. V. MISCELLANEOUS A. Notice and Addresses. All notices required hereunder must be given by certified mail or registered mail, addressed to the proper Party, at the following addresses: To CCMA: Cibolo Creek Municipal Authority Attn: Clint Ellis, General Manager P.O. Box 930 Schertz, TX 78154 With a copy to: Sara R. Thornton, Attorney for CCMA Lloyd Gosselink Rochelle & Townsend, P.C. 816 Congress Ave., Ste. 1900 Austin, Texas 78701 To the City: City of Schertz, Texas Attn: Dr. Mark Browne, City Manager 1400 Schertz Parkway Schertz, Texas 78154 With a copy to: T. Daniel Santee, Attorney for City of Schertz Denton Navarro Rocha Bernal Hyde & Zech, P.C. 2517 N. Main Avenue San Antonio, Texas 78212 4600189.4 Page 4 of 7 Either Party may change the address to which notices are to be sent by giving the other Party notice of the new address in the manner provided in this section. Notices shall be deemed to have been received three (3) days after deposit in the mail. For ease of administration of this contract, a primary contact person has been designated for each of the Parties as follows: For the City: Charles Kelm, Assistant Citv Manauer For CCMA: Rvan Madsen, Business ManaL�er B. Parties Bound. This Agreement shall be binding upon, and inure to the benefit of, the Parties to this Agreement and their respective heirs, executors, administrators, legal representatives, successors, and assigns. C. Prior Agreement Superseded. This Agreement constitutes the sole and only agreement of the Parties regarding their responsibilities to each other concerning the work noted herein and supersedes any prior understandings or written or oral agreements between the Parties regarding the treatment of flows from the Northcliffe Service Area. This Agreement in no way modifies or supersedes any document executed by the Parties prior to this Agreement which does not involve the treatment of flows from the Northcliffe Service Area. D. Amendment. No amendment, modification, or alteration of the terms of this Agreement shall be binding unless it is in writing, dated subsequent to the date of this Agreement, and duly executed by the Parties to this Agreement. E. Hold Harmless. City will hold CCMA harmless from any claims arising from the Agreement, as each is contemplated by this Agreement (e.g., contract claims between the City and any contractors and/or any injury or property damage claims) to the extent permitted by Texas law. F. Violation of Law. The City and CCMA shall not violate any Federal, State or local laws, regulations or ordinances in the performance of this Agreement. G. Enforceability. If any provision of this Agreement proves unlawful or unenforceable by a court having jurisdiction over the Parties or the subject matter, such provision shall be severable from the other provision of this Agreement, and all remaining provisions shall be fully enforceable. H. Governing Law and Place for Performance. This Agreement shall be governed by the laws of Texas, which state shall also be deemed the place where this Agreement was entered into and the place of performance and transaction of business and Parties. In the event of litigation pertaining to the Agreement, the exclusive forum, venue, and place of jurisdiction shall also be the County of Guadalupe and the State of Texas unless otherwise agreed in writing by the Parties. The Parties acknowledge that each has had the unfettered opportunity to review, revise, and negotiate the terms of this Agreement and that if in the future there is a dispute as to the 4600189.4 Page 5 of 7 meaning of any provision herein, then no such provision shall be construed against the drafter of the Agreement. I. Recitals and Exhibits Incorporated. The recitals contained in the preamble hereof and the exhibits hereto are hereby found to be true, and such recitals and exhibits are hereby made a part of this Agreement for all purposes. J. Signature Warranty Clause. The signatories to this Agreement represent and warrant that they have the authority to execute this Agreement on behalf of the City and CCMA, respectively. K. No Waiver of Immunities. Nothing in the Agreement shall be construed to waive any immunities from suit or liability enjoyed by City, CCNIA, their past or present officers, employees, or agents or employees. L. No Third Party Beneficiary. This Agreement inures to the benefit of and obligates only the Parties executing it. No term or provision of this Agreement shall benefit or obligate any person or entity not a party to it. The Parties hereto shall cooperate fully in opposing any attempt by any third person or entity to claim any benefit, protection, release or other consideration under this Agreement. M. No Joint Venture. Nothing contained herein shall be deemed or construed by the parties hereto, or by any third party, as creating the relationship of principal and agent, partners, joint venturers or any other similar such relationship between the Parties hereto. N. Approval by Governing Bodies. This Agreement has been approved by the governing bodies of the City and of CCMA. O. Payment from Current Revenues. Each Party paying for the performance of governmental functions or services must make those payments from current revenues available to the paying Party. P. Assignment. Neither Party may assign their interests in this Agreement except upon receiving the written consent of the other Party. EXECUTED TO BE EFFECTIVE this _ day of _ , 2019. CIBOLO CREEK MUNICIPAL AUTHORITY By- Kenneth Greenwald, President ATTEST: 4600189.4 Page 6 of 7 Lm Reginna Agee, Secretary ATTEST: y: renda Dennis, ity Secretary APPROVED AS TO FORM: Denton Navarro Rocha Bernal Hyde & Zech, P.0 Im Habib H. Erkan, City Attorney CITY OF SCHERTZ Y Mark Browne, City Manager 4600189.4 Page 7 of 7 EXHIBIT 1 A COMAL COUNTY Coma] I.S.D. & GUADCO MUD No.1 Project No. 1121.GUADCO 1A September 28, 2001 DESCRIPTION OF THE GUADCO MUNICIPAL UTILITY DISTRICT NO, 11COMAL COUNTY, TEXAS 108.572 ACRE TRACT 108.572 acres of land out of the Rafael Garza Survey No. 98 and the J. F. Zepeda Survey No. 257 located in Comal County, Texas, being as follows: (1) a part of a 453.754 acre tract described in Vol. 485 page 529 of the Guadalupe County Deed Records and No. 132860 of the Comal County Deed Records; said 108.572 acre tract being described as follows: BEGINNING at a point the most Westerly West corner of said 108.572 acre tract being on the N.E. RNV line of FM 1103 and being on the Comal- Guadalupe County line. THENCE N 301D 06' 52.1" W along the S.W. boundary of said 53.124 acre tract being the N.E. RIW line of FM 1103 a distance of 728.61 ft. to a concrete monument with a brass plate marking the lower N.W. corner of said 53.124 acre tract and being on the S.E. RNV line of Interstate Highway No. 35; THENCE following along the S.E. RNV line of said Interstate Highway No. 35 the following courses and distances: N 150 27' E, 167.35 feet N 590 45' E, 338.20 feet N 540 23' E, 559.98 feet N 540 23' E, 444.42 feet N 590 45'E, 1148.80 feet N 59° 45' E, 600.30 feet S 750 07'30" E, 116.00 feet N 590 28' E, 40.20 feet N 150 09' E, 116.00 feet N 590 45' E, 999.40 feet N 700 46' E, 570.60 feet N 700 23'30" E, 192.56 feet N 590 45' E, 650.19 feet N 470 15' E, 460.27 feet N 810 58'3U' E, 47.56 feet to an iron pin marking the North corner of the above referred to 171.719 acre tract; THENCE S 291D 13' 30" E along the N.E. boundary of said 171.719 acre tract a distance of 501 feet to a point for comer; THENCE S 290 13'30" E, 100.00 feet; THENCE S 600 46'30"W, 366.65 feet; THENCE S 900 00'00"W 499.29 feet; THENCE S 650 15' 00" W, 1425.00 feet; THENCE S 590 45'00"W, 588.00 feet; THENCE S 290 55' 13.8 °, 1089.99 feet to a point on the Comal - Guadalupe County line; THENCE with the Comal- Guadalupe County line, S 660 52'04" W, 3372.43 feet to the Point of Beginning and containing 108.572 acres of land. EXHIBIT 1B GUADALUPE COUNTY Schertz- Ciboio I.S.D. & GUADCO MUD No. 1 Project No. 1121.GUADC01 B September 28, 2001 DESCRIPTION OF THE GUADCO MUNICIPAL UTILITY DISTRICT NO, 1 386.97 ACRE TRACT 386.97 acres of land out of the Rafael Garza Survey No. 98 and the James W. Gray Survey No. 255 located in Guadalupe County, Texas: being as follows: (1) a part of a 453.754 acre tract described in Vol. 485 page 529 of the Guadalupe County Deed Records and No. 132860 of the Comal County Deed Records, (2) a part of a 171.719 acre tract described in Vol. 480 page 287 of the Guadalupe County Deed Records and Vol. 214 page 23 of the Comal Co. Deed Records (3) all of a 30.647 acre tract described in Vol. 485 page 637 of the Guadalupe Co. Deed Records, (4) all of a 16.155 acre tract described in Vol. 485 page 642 of the Guadalupe County Deed Records (5) all of a 25.531 acre tract which is part of a 76.356 acre tract described in Vol. 352 page 100 of the Guadaluape Co. Deed Records, (6) all of a 55.255 acre tract which is a part of a 76.370 acre tract described in Vol. 382 page 77 and also a part of said 76.356 acre tract described in Vol. 352 page 110 of the Guadalupe Co. Deed Records, (7) 53.124 acres in Guadalupe and Comal Counties and being a part of a 63.8 acre tract described in Vol. 83 page 258 of the Comal Co. Deed Records; said 386.97 acre tract being described as follows: BEGINNING at an Iron pin marking the most Northwesterly corner of said 386.97 acre tract being on the N. E. RNV line of F. M. 1103 and being a point on the Comal — Guadalupe County Line; THENCE with the Comal — Guadalupe County Line, N 660 52'03.8" E, a distance of 3,372.43 feet to a point of the above referred to 171.719 acre tract, said point being the Northeast corner of this survey; THENCE S 290 55' 13.8" E, 1,023.07 feet along the boundary of said 171.719 acre tract; THENCE S 260 12'05" E, 200.42 feet; THENCE S 290 55' 13.8" E, 521.13 feet; THENCE N 600 04'46.2" E, 300.00 feet; THENCE N 470 45'00" E, 35.00 feet; THENCE N 350 30'00" E, 390.00 feet; THENCE S 540 30'00" E, 185.00 feet; THENCE N 350 30'00" E, 30.00 feet; THENCE S 540 30'00" E, 970.00 feet; THENCE S 350 30'00" W, 20.48 feet; THENCE S 290 55' 13.8" E, 397.14 feet; THENCE S 59° 18'00" W, 620.00 feet to a point located on said 171.719 acre tract; THENCE continuing S 5910 18'00" W along a boundary of said 171.719 acre tract a distance of 579.97 feet to an Iron pin marking the most Westerly South corner of said 171.719 acre tract; THENCE S 610 06'W, a distance of 8.08 feet to a R. R. spike marking the North comer of the said 16.155 acre tract; THENCE S 290 37' E, a distance of 699.92 feet to a R. R. spike marking the East corner of said 16.155 acre tract; THENCE S 580 52'W a distance of 15 feet to a 114" Re -Bar; THENCE S 590 07'W continuing along the S. E. line of said 16.155 acre tract a distance of 502.70 feet to an Iron stake being the North corner of the above referred to 55.255 acre tract; THENCE following along the boundaries of said 55.255 acre tract the following courses and distances; S 290 03' E, 572.43 feet; N 600 58' E, 257.70 feet; S 290 55' E, 1,642.00 feet; S 500 56' 45.1" W, 1 ,665. 97 feet; N 540 50'W, 361.00 feet; N 290 45' W, 525.91 feet to the South corner of above referred to 25.531 acre tract; THENCE N 290 45'W, along the S. W. line of said 25.531 acre tract a distance of 14.09 feet to a point; THENCE N 290 27'W, continuing along the S. W. line of said 25.531 acre tract a distance of 860.10 feet to a point; THENCE N 280 32.'W, a distance of 223.11 feet to the South corner of the above referred to 30.647 acre tract being a 1" Galvanized Iron pipe; THENCE N 290 39' 33.6" W, a distance of 1,247.68 feet to a 1" GIP marking the West corner of said 30.647 acre tract, being the lower South corner of said 453.754 acre tract; THENCE following along the boundaries of said 453.754 acre tract the following courses and distances: N 290 50'W, 789.50 feet S 600 11' W, 193.62 feet S 270 03' E, 167.71 feet S 591145'W, 895.80 feet S 861141'W, 81.85 feet N 400 32'W, 249.70 feet to the P.C. of a curve to the right having a radius of 1,870.08 feet and a central angle of 1010 18'; THENCE following along said curve to the right a distance of 336.18 feet to the P.T. of said curve; THENCE N 30° 14'W, continuing along the boundary of said 453.754 acre tract being the N. E. R/W line of said F.M. 1103, a distance of 1222.10 feet; HENCE N 300 00'03.8"W, continuing along said N. E. RAW line of FM 1103 a distance of 782.49 feet; HENCE N 300 06'52" W, continuing along said N. E. RAW line of FM 1103 a distance of 190.05 feet to the Point of Beginning and containing 386.97 acres more or less. EXHIBIT 2A COMAL COUNTY Comal I.S.D. & GUADCO MUD No. 2 Project No. 1121.GUADCO 2A September 28, 2001 DESCRIPTION OF THE GUADCO MUNICIPAL. UTILITY DISTRICT NO, 2 76.88 ACRE TRACT 76.88 acres of land out of the Rafael Garza Survey No. 98, and the J. F. Zepeda Survey No. 257, located in Comal County, Texas said 76.88 acre tract being described as follows: Beginning at a point marktng the, westerly corner of said 76.88 acre tract, said point being on the Comal - Guadalupe County Line; Thence along the boundaries of said 76.88 acre tract the following courses; N 290 55' 13.8" W 1,089.99 ft. N 590 45' 00" E 588.00 ft. N 65° 15'00" E 1,425.00 ft. N 900 00'00" E 499.29 ft. N 600 46' 30" E 366.65 ft. N 290 13' 30" W 100.00 ft. N 600 46' 30" E 138.00 ft. to a point on the upper N. E. boundary line of said 76.88 acre tract; Thence, with the east line of said 76.88 acre tract, S 290 13'3(r E, 1,158.83 ft. to a point on the Comal - Guadalupe County Line; Thence, with the Comal - Guadalupe County Line, S 66° 52' 04" W, 2,952.39 ft. to the Point of Beginning and containing 76.88 acers more or less. EXHIBIT 2B GUADALUPE COUNTY Schertz- Cibolo I.S.D. & GUADCO MUD No. 2 Project No. 1121.GUADCO 2B September 28, 2001 DESCRIPTION OF THE GUADCO MUNICIPAL UTILITY DISTRICT NO, 2 233.45 ACRE TRACT 233.45 acres of land out of the Rafael Carza Survey No. 98, and the J. F. Zepeda Survey No. 257, located in both Comal and Guadalupe Counties, Texas and also out of the Pedro San Miguel Survey No. 256, and the James W. Gray Survey No. 255, located.in Guadalupe County, Texas, said tract being a part of a 171.719 acre tract described in Vol. 480 page 287 of the Guadalupe County Deed Records and a part of a 453.754 acre tract described in Vol. 485 page 529 of the Guadalupe County Deed Records and No. 132860 of the Cornal County Deed Records, said 233.45 acre tract being described as follows: Beginning at an Iron pin marktng the, lower east corner of said 171.719 acre tract; Thence S 59038'W along the lovmr S. E. boundary of said 171.719 acre tract,1594.77 ft. to an Iron pin marking the south corner of said 171.719 acre tract; Thence N 300'13'15" W along the lower S.W, line of said 17 719 acre tract a distance of 717.50 ft. to a corner of same; Thence S 64 051'45" W a distance of 11.02 ft to a corner of said 171,719 acre tract; Thence N 30018'30" W continuing along a S.W. boundary of said 171,719 acre tract a distance of 1,302.40 ft. to a corner of said tract being a corner on a S. E. boundary of the 495.5424 acre tract referred to as Guadco Municiple District No. 1; Thence along the boundaries of said 495.5424 acre tract the following courses; N 590 18'00" E 620.00 ft. N 290 55' 13.8" W 397.14 ft. N 350 30'00" E 020.48 ft. N 540 30'000 W 970.00 ft. S 350 30'00" W 030.00 ft. N 540 30'00" W 185.00 ft. S 35° 30'00" W 390.00 ft. S 47°i45' 00" W 035.00 ft. S 600 04'46.2" W 300.00 ft. N 290 55' 13.8" W 521.13 ft. N 260 12'05" W 200.42 ft. N 290 55' 13.8" W 1,025.07 ft. to a point of intersection on the Comal — Guadalupe County Line; Thence with the Comal — Guadalupe County Line, N 660 52'04" E, 2,952.39 ft. to a point on the upper N. E. boundary line of said 171.719 acre tract; Thence following along the boundary of said 171.719 acre tract the following courses: S29 °13'30 "E S 120 00'45" E S 300 43' 00" E N 80° 39'00" E S 290 57' 00" E containing 310.3344 acers more or less. 1,481.07 ft. 2,502.99 ft. 500.00 ft. 12.91 ft. 320.55 ft. to the Point of Beginning and