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.' \ l l- f~, 39 DRAFT lnterlocal Agreement for Water Supply 1. Parties. The City of San Marcos ("San Marcos"), 630 E. Hopkins, San Marcos, TX 78666, and the City of Kyle ("Kyle"), P.O. Box 40, Kyle, TX 78640-0040, are the parties to this agreement. 2. Subject and Purpose. This agreement involves the provision of potable water by Kyle to San Marcos for the purpose~of serving the Champions Business Park (the "Subdivision"), a subdivision located at the Southwest comer of the intersection of Yarrington Road and IH-35 in Hays County, Texas. 3. Kvle to Provide Water Supplv. Kyle agrees to provide potable water to San Marcos through a single -" meter (the "Meter") to be located at the point where Kyle's existing -" water supply line intersects with the Northeast right-of-way line of Yarrington Road. Kyle will be responsible for maintaining the Meter and the water supply line on the side of the Meter leading to its water supply facilities. Kyle's obligation is limited to the provision of a maximum of gallons per day, or gallons per month, through the Meter. These ma."Ximum amounts will be adjusted downward in proportion to any decrease in Kyle's allowed use of Ed\.vards Aquifer water, measured by Kyle's average annual pumping during the Edwards Aquifer Authority (EAA) historical period compared to the annual amount of Kyle's Initial Regular Permit issued by the EAA. Kyle's supply obligation will be suspended during the occurrence of acts of God, strikes, insurrections, landslides, earthquakes, floods, or unexpected breakage of machinery, pipelines or equipment. 4. San Marcos to Pav for Supplv. San Marcos agrees to pay Kyle monthly for the water passing through the Meter in accordance with Kyle's standard retail water rates, tariff and policies. San Marcos will inspect the water system within the Subdivision, and will certify the integrity ofthe system in \.vriting to Kyle prior to the initiation of water service under this Agreement. San Marcos agrees to maintain the water supply line on the side of the Meter leading to the Subdivision, and the water system within the Subdivision. . 5. Term and Termination. The term of this agreement is for a two-year period from March 1, 1997 to March 1, 1999. This Agreement ""ill automatically renew for successive one-year periods after that time unless one party notifies the other in writing at least 90 days in advance of a renewal date of its intention not to renew this agreement. 6. Cooperation in Other Matters. The parties agree to cooperate regarding the following: a. Compliance with regulatory requirements of any governmental agency having jurisdiction over this agreement. b. The development of alternatives to the use of Edwards Aquifer water for water supply purposes. c. The installation of one or more interconnections between the water supply lines of the parties that are in proximity to each other, and in particular those lines existing or planned along