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THE STATE OF TEXAS § <br />COUNTY OF HAYS § <br />TRI -PARTY <br />INTERLOCAL AGREEMENT <br />This Interlocal Agreement ( "Agreement ") is made and entered into and effective as of the 21st day of <br />February, 2012 ( "Effective Date ") pursuant to the Texas Interlocal Cooperation Act, Chapter 791 of the <br />Texas Government Code (the "Act "), by and between the CITY OF SAN MARcos, TEXAS ( "San Macos "), a <br />political subdivision and Municipal Government of the State of Texas and Home Rule City formed <br />pursuant to Chapter 26 of the Texas Local Government Code, the CITY OF KYLE, TEXAS ( "Kyle "), a political <br />subdivision and Municipal Government of the State of Texas and Home Rule City formed pursuant to <br />Chapter 26 of the Texas Local Government Code and the Texas State University — San Marcos, a <br />component university in The Texas State University System and a political subdivision of the State of <br />Texas (the "University ") jointly referred to as the "Parties ". This Agreement is intended to further the <br />purpose of governmental functions in which the parties are mutually Interested per the Act, which is to <br />increase the efficiency and effectiveness of the parties In operating a public transit system within the <br />parties' urbanized jurisdictional boundaries. <br />RECITALS <br />WHEREAS, the University currently operates an extensive shuttle system for students and other <br />constituents supported through student fees and other resources; <br />WHEREAS, San Marcos and Kyle are likely to become a new "small urbanized area" when the <br />results of the 2010 U.S. Census become official in the spring of 2012; <br />WHEREAS, San Marcos, Kyle, and the University have the desire to expand the University's <br />existing student shuttle system into a public transit system to support transit access within the new <br />designated urbanized area and take advantage of the federal and state funding available to Urban <br />Transit Districts; <br />WHEREAS, this census designation would enable the City of San Marcos, the University or the <br />Urban Transit District, to become a new Federal Transit Administration (FTA) designated recipient and or <br />sub - recipient grantee with direct access to FTA Section 5307 formula funding to support transit; <br />WHEREAS, San Marcos, Kyle, and the University desire to create a new Urban Transit District, <br />pursuant to the provisions of Chapter 458 of the Texas Transportation Code, to facilitate the planning, <br />development, and funding of public transit improvements, and stakeholder involvement and consensus <br />in achieving overall public transit service objectives; <br />WHEREAS, San Marcos is currently developing a Pedestrian — Transit Master Plan to qualify <br />pedestrian- transit access and other infrastructure for federal eligibility; <br />