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to this Agreement; <br />2. Appoint a representative to the San Marcos' Animal Shelter Advisory Committee; <br />3. Pay San Marcos $141,881 for the provision of its core services upon execution of this <br />Agreement. Costs payable to San Marcos include all personnel, operating and <br />maintenance and facility use charges. This amount does not cover extraordinary animal <br />services such as a case of animal cruelty involving ten or more animals. Kyle will be <br />required to cover the costs of any such animal -related case; <br />4. Fully comply with the policies and guidelines of the Shelter as they now exist and as <br />they may be amended from time to time as well as any State law or agency rule <br />governing the treatment of animals. Any noncompliance with the Shelter's Operating <br />Procedures may result in termination of this Agreement. <br />5. The base fee of this agreement provides for the impoundment or intake of dogs and cats <br />not to exceed a combined total of 1,450 animals in a single fiscal year. Additional <br />animals will be received at an additional cost of $50.00 per animal. <br />SECTION 2. TERM <br />The term of this Agreement will commence upon approval of both the City of San Marcos <br />City Council and the City of Kyle City Council and execution by their representatives. The Parties <br />acknowledge that San Marcos is currently reviewing and studying its animal services efforts and <br />the Parties anticipate negotiating a new long-term agreement over the next year. This Agreement <br />will extend until a new Agreement is executed. The fee paid to the City of San Marcos will be <br />pro -rated based on the annual basic payment amount should the Agreement extend past the current <br />Fiscal Year. <br />SECTION 3. INDEMNIFICATION <br />To the extent allowed under applicable law, Kyle agrees to hold harmless, indemnify and <br />defend San Marcos and its employees, agents, officers and servants from and against any and all <br />lawsuits claims, demands and causes of action of any kind arising from the negligent or intentional <br />acts, errors or omissions of the Kyle, its officers, employees or agents with respect to the pick-up <br />and delivery of animals to the Shelter. <br />Respectively, to the extent allowed under applicable law, San Marcos agrees to hold <br />harmless, indemnify and defend Kyle and their employees, agents, officers and servants from and <br />against any and all lawsuits, claims, demands and causes of action of any kind arising from the <br />negligent or intentional acts, errors or omissions of San Marcos, its officers, employees or agents <br />with respect to the care and disposition of any animal delivered by Kyle to San Marcos for care in <br />the Shelter. <br />SECTION 4. MISCELLANEOUS PROVISIONS <br />A. Interlocal Cooperation: San Marcos and Kyle agree to cooperate with each other in good faith <br />at all times during the term of this Agreement in order to achieve the purposes and intent of <br />this Agreement. Each party to this Agreement acknowledges and represents that this <br />Agreement has been executed by its duly authorized representative. <br />B. Funding: San Marcos and Kyle acknowledge that funding under this Agreement will be made <br />from current revenues available to each party for the current fiscal year only. State statutes <br />prohibit the obligation and expenditure of public funds beyond the fiscal year for which a <br />budget has been approved. Neither party can guarantee the availability of funds, and each enters <br />into this Agreement only to the extent such funds are made available. Neither party will have <br />2 <br />