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Addendum to Interlocal Agreement between City of San Marcos and City of Kyle for <br /> Edwards Aquifer Water Rights Assignment <br /> This Addendum is entered into between and among the City of San Marcos ("San Marcos") and <br /> the City of Kyle ("Kyle") (Collectively referred to herein as "the Parties")and shall amend that <br /> certain Interlocal Agreement between City of San Marcos and the City of Kyle for Edwards <br /> Aquifer Water Rights Assignment("the Assignment")previously executed by the Parties on <br /> May 10, 2024, under which SMTXU committed and made available its Edwards Aquifer water <br /> permitted by the Edwards Aquifer Authority("EAA")to Kyle on a temporary basis via Kyle's <br /> existing facilities and four wells associated with Kyle's EAA permits. <br /> The Parties hereto, in exchange for the mutual covenants and conditions and other consideration <br /> stated herein hereby agree that the following section shall be added to the Assignment: <br /> O. At San Marcos' request, and as mutually agreed by both parties, Kyle may commit and <br /> make available its Edwards Aquifer water permitted by the EAA for any year 2024—2026. <br /> San Marcos will compensate Kyle for the agreed amount of water through a corresponding <br /> reduction in Minimum Monthly Payments up to 250 AF, or at the rate as provided herein for <br /> water over 250 AF. In this instance, San Marcos will work with Kyle to request and secure <br /> all necessary authorizations from EAA to allow the transfer contemplated in this agreement, <br /> and all application fees for transfer will be paid by San Marcos. The City Manager, or <br /> designee, of each City is authorized to administratively approve the amount of EAA water <br /> that is made available to San Marcos under this agreement. <br /> This Addendum shall become effective upon execution by both Parties below and any provisions <br /> in the Assignment in conflict herewith shall be read such that this Addendum shall have full <br /> force and effect. <br /> [SIGNATURE PAGE FOLLOWS] <br /> Page 1 of 2 <br />