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INTERLOCAL COOPERATION AGREEMENT BETWEEN <br />THE CITY OF SAN MARCOS AND TEXAS STATE UNIVERSITY CONCERNING <br />EXCHANGE OF RECLAIMED WATER FOR SURFACE WATER RIGHTS <br />This Interlocal Cooperation Agreement (the "Agreement ") is made and effective as of <br />, 2015 (the "Effective Date ") by and between the City of San Marcos, Texas (the <br />"City "), 630 East Hopkins Street and Texas State University ( "Texas State "), 601 University <br />Drive, San Marcos, Texas 78666. The City and Texas State are each referred to hereinafter as a <br />"Party" and collectively as the "Parties." <br />ARTICLE I <br />RECITALS <br />1. The Parties are participants in the Habitat Conservation Plan which was <br />implemented to protect endangered species in the San Marcos River. <br />2. Enhancing stream flows through the San Marcos River will advance the purposes <br />of the Habitat Conservation Plan. <br />3. The Parties recognize that one means of enhancing stream flows through the most <br />sensitive sections of the San Marcos River is for Texas State to reduce the amount of water it <br />withdraws form the river. <br />4. Texas State is willing to forego exercising its rights to withdraw surface water from <br />the San Marcos River provided a suitable substitute quantity of reclaimed water is made available <br />to it at a comparable cost. <br />5. The City operates a reclaimed water system that serves third party users and Texas <br />State is willing to allocate a portion of its surface water rights to the City to enhance stream flows <br />in the San Marcos River in exchange for reclaimed water from the City. <br />6. Texas State previously participated with the City in the cost to construct a segment <br />of pipeline intended to connect Texas State's main campus to the City's reclaimed water system. <br />1 <br />