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12 -12 -13 <br />INTERLOCAL AGREEMENT <br />ARTICLE 1 <br />PARTIES <br />1.01. Parties. This Interlocal Agreement (the "Agreement ") is made by and between <br />the City of San Marcos, Texas (the "City "), acting through the City Manager and approved by <br />the City Council on December 17, 2013, and the Lone Star Rail District, acting by and through <br />its Executive Director (the "Rail District "). The City and the Rail District may be referred to <br />collectively as the "Parties" and individually as a "Party." This Agreement is made pursuant to <br />Transportation Code, Chapter 173, Section 173.256 and Government Code Chapter 791 <br />( Interlocal Cooperation Act) for the participation of the City and the Rail District in funding <br />transportation services and facilities that are to be provided in the City by the Rail District (the <br />"Project "). <br />1.02. Addresses of the Parties. The initial addresses of the Parties are listed herein. <br />Each Party may designate a different address for receiving notice under this Agreement by <br />giving the other Parties at least ten (10) days prior written notice. <br />ARTICLE 2 <br />DEFINITIONS <br />As used in this Agreement, the following terms shall have the meanings set out below: <br />2.01. "Administrative Costs" means reasonable costs directly incurred by the Rail <br />District related to the Zone, as described in this Agreement. These costs include, but are not <br />limited to, costs and expenses incurred after this Agreement becomes effective and include the <br />following: <br />(a) accounting <br />(b) fund security and disbursement <br />