Res 2023-154R approving an agreement providing for the city to sell Edwards Aquifer Water on a temporary basis to the City of Kyle

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Interlocal Agreement between City of San Marcos and City of Kyle for Water Sharing This agreement documents the mutual understanding between and among the City of San Marcos (San Marcos) and the City of Kyle (Kyle)under which San Marcos commits and makes available its Edwards Aquifer water permitted by the Edwards Aquifer Authority(EAA)to Kyle on a temporary basis via Kyle's existing facilities and four wells associated with Kyle's EAA permits. Background San Marcos and Kyle possess EAA permits. Due to a historical drought that Central Texas is currently facing, Kyle anticipates the need for additional water during the EAA permit period for 2023. This additional water will prevent Kyle from exceeding permitted capacity. This permitting period dates January 1 to December 31, 2023. San Marcos has supplies above and beyond their current needs within the EAA permit. San Marcos is willing to commit and make available water to Kyle from their existing water portfolio of EAA-permitted water supply during the remainder of 2023. Agreements In consideration of the mutual covenants contained in this agreement,the parties agree as follows: A. Effective January 1, 2024, Kyle will reimburse San Marcos for the amount of EAA capacity necessary for Kyle to meet EAA permitting capacity restrictions put in place during the EAA permitting year 2023. B. Kyle will reimburse San Marcos, in one installment, upon receiving an invoice from San Marcos. C. Water shared under this agreement will be withdrawn solely at Kyle's existing EAA Well Nos W100-896, W100-897, W 100-898 &W105-960. The maximum total annual amount that may be pumped then under this agreement is 310 acre-feet. Kyle will operate and meter its groundwater withdrawals throughout the term of this agreement to ensure that the limit on the total annual water amount pumped then utilized is not exceeded. D. San Marcos sets the rates below for water purchased from San Marcos and sold to Kyle in a manner consistent with San Marcos' prior Water Sharing Program with County Line Special Utility District. The rates and corresponding annual adjustments are described below: 1. Monthly rates for fixed expenses at$7,745 per month will be charged for October, November, and December 2023. 2. For water pumped by Kyle, the volume rates will be $3.21/1,000.