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INTERLOCAL AGREEMENT NO. 12-586-AM BETWEEN THE EDWARDS AQUIFER AUTHORITY AND THE CITY OF SAN MARCOS FOR TEXAS WILD RICE PROTECTION AND EDUCATION This Agreement is made and entered into this 19th day of June, 2012, by and between the CITY OF SAN MARCOS located at 630 East Hopkins, San Marcos, Texas, 78666, and the EDWARDS AQUIFER AUTHORITY, (the "EAA "), a political subdivision of the State of Texas, with its principal place of business located at 1615 N. St. Mary's Street, San Antonio, Texas 78215. The City of San Marcos and the EAA are each referred to hereinafter as a "Party," and collectively as the "Parties." RECITALS WHEREAS, the Texas Interlocal Cooperation Act, codified at Section 791.001, et seq. of Texas Government Code Annotated (Vernon 2004 & Supp. 2011) authorizes a local government to contract with another local government to perform governmental functions and services; and WHEREAS, in January 2012, the EAA and the City of San Marcos, among others, filed an application for an incidental take permit ( "ITP ") with the U.S. Fish and Wildlife Service under Section 10(a) (16 U.S.C.A. § 1539(a)) of the federal Endangered Species Act of 1973 ( "ESA ") (16 U.S.C.A. §§ 1531 -1544 (West 2010)); and WHEREAS, a Habitat Conservation Plan ( "HCP ") was filed with and supports the application for the ITP by providing for, among other things, the implementation of various Conservation Measures intended to minimize or mitigate the impact of the use of groundwater withdrawn from the Edwards Aquifer ( "Aquifer ") on threatened and endangered species associated with the Aquifer and contribute to the recovery of such species; and WHEREAS, Section 5.4.1 of the HCP provides the City of San Marcos, in partnership with Texas State University, will undertake a program of Texas wild -rice enhancement and restoration in Spring Lake and the San Marcos River within Texas State University campus boundaries; and WHEREAS, the Texas Parks and Wildlife Department ( "TPWD ") has created a State Scientific Area in parts of the San Marcos River known to be Texas wild -rice habitat as provided for in Section 5.4 of the HCP; and WHEREAS, the EAA and the City of San Marcos desire to enforce the regulations associated with the State Scientific Area and educate the public on the importance of protection of Texas wild -rice. 1 of 7