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16l - Interlocal Agreement for Water Supply 1. Parties. The City of San Marcos ("San Marcos"), 630 E. Hopkins, San Marcos, TX 78666, and the City of Kyle ("Kyle"), P.O. Box 40, Kyle, TX 78640-0040, are the parties to this agreement, and San Marcos and Kyle or collectively refelTed to herein as the "parties". - 2. Subject and Purpose. This agreement involves the provision of potable water by Kyle ! to San Marcos for the purpose of serving the Champions Business Park (the "Subdivision"), a subdivision located at the Southwest corner of the intersection of Yarrington Road and IH-35 in Hays County, Texas. 3. Kyle to provide Water Supply. Kyle agrees to provide potable water to San Marcos through a single 3" meter (the Meter") to be located at the point where Kyle's existing 12" water supply line interseèts with the Northeast right-of-way line of Yarrington Road. Kyle will be responsible for maintaining the Meter and the water supply line on the side of the Meter leading to its water supply facilities. Kyle's obligation is limited to the provision of a maximum of 10,000 gallons per day, or 150,000 gallons per month, through the Meter. These maximum amounts will be adjusted downward in proportion to any decrease in Kyle's allowed use of Edwards Aquifer water, measured by Kyle's average annual pumping during the Edwards Aquifer Authority (EAA) historical period compared to the annual amount of Kyle's Initial Regular Permit issued by the EAA. Kyle's supply obligation will be suspended during the OCCUlTence of acts of God, strikes, insurrections, landslides, earthquakes, floods or unexpected breakage of machinery, pipelines or equipment. 4. San Marcos to Pay for Supply. San Marcos agrees to pay Kyle monthly for the water passing through the Meter in accordance with Kyle's standard retail water rates, tariff and policies. San Marcos will inspect the water system within the Subdivision, and will certify the ! integrity of the system in writing to Kyle prior to the initiation of water service under this agreement. San Marcos agrees to maintain the water. supply line on the side of the Meter leading to the Subdvision, and the water system within the Subdivision. 5. Tenn and Tennination. The tenn of this agreement is for a one year period from March 1, 1997 to March 1, 1998. This Agreement will automatically renew of successive one- year periods after that time unless one party notifies the other in writing at least 90 days in advance of a renewal date of its intention not to renew this agreement. It is specifically provided and agreed however that it is the agreement and intent of the parties that the duties,. obligations and intent of both parties, as set forth in the following paragraph 6, shall not expire and tenninate but shall remain in full force and effect as provided therein. ,