Res 2022-277R/approving an agreement providing for the City to sell Edwards Aquifer Water on a temporary basis to the City of Kyle; authorizing the City Manager, or her designee

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2. For water pumped by Kyle at the well sites described in A.1. above in excess of the capacities authorized by the EAA in permit number P 100-217 (HA00216), the volume rates of$3.21 per 1,000 gallons. C. For San Marcos to determine invoice amounts, no later than January 10, 2023, Kyle shall provide San Marcos daily meter readings for pumpage from Kyle permitted wells W 100-896, W 100-897, W 100-898 & W 105-960 for October,November, and December 2022. The meter readings shall clearly distinguish between and report(1)the volume of Edwards Aquifer water pumped under the authorization in Kyle's EAA permits and(2)the volume of Edwards Aquifer water pumped under the authorization of San Marcos's EAA permits being shared with Kyle in this agreement. D. Kyle agrees to pay the full amount billed under this agreement to San Marcos within 20 calendar days of receipt of invoice. E. San Marcos will wort-,with Kyle to request and secure all necessary authorizations from EAA to allow the transfer contemplated in this agreement. All application fees for transfers will be paid by Kyle. F. Under this agreement title to all water pumped by Kyle at their EAA wells under the authorization of San Marcos's EAA permits will pass to Kyle. G. A maximum of 125 acre-feet is available for pumping and use by Kyle,regardless as to whether Kyle's wells and infrastructure can produce and transmit this additional quantity of water. However,the cost calculations under this agreement will be based on volumes pumped rather than volumes available for pumping. If the shared water pumped is shown to be 125 acre-feet, the total cost to Kyle is $153,997.71. If the volume pumped is less than 125 acre-feet the cost to Kyle will be a lesser amount. H. This agreement is intended be an enforceable agreement and is consistent with the requirements of Title 30 Texas Administrative Code §290.45(f) applicable to Kyle's public water system. 1. This agreement will take effect on the date it is signed by San Marcos and Kyle. The water sharing authorized in this agreement shall terminate at midnight on December 31, 2022. This agreement terminates upon San Marcos' receipt of payment from Kyle of the amounts due hereunder. [Signatures on next page] Water Sharing ILA Page 2 of 3