Res 2024-069 approving an agreement providing for the city to sell 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 each possess EAA permits. Due to growth that Central Texas is currently facing,Kyle anticipates the need for additional water during the EAA permit period for years 2024-2026. This additional water will prevent Kyle from exceeding permitted capacity. This permitting period dates January 1, 2024,to December 31, 2026. 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. 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 EAA capacity necessary for Kyle to meet EAA permitting capacity restrictions put in place during the EAA permitting years 2024-26. B. Minimum Monthly Payment Amount.By entering into this Agreement, and effective on the date of last signature to this interlocal,Kyle will pay to SMTXU a minimum monthly amount equivalent to usage of 223,186 gallons per day, at the initial billing rate of$3.41 per 1,000 gallons, for a total of$22,832 per month,regardless of the actual amount of EAA water used by Kyle each month. C. Kyle will meet or exceed San Marcos drought restrictions throughout the duration of this agreement. The 500-acre ft.will be subject to EAA drought stage reductions and the City of Kyle is responsible for any penalties. This will be based on actual restrictions and not stage of drought. D. Initial Billing Rate. The initial rate to be paid by Kyle for EAA Water under this Agreement shall be $3.41 per 1,000 gallons of EAA water used by Kyle. E. Billing and Payment. At the end of each calendar month, San Marcos shall determine the quantity of water consumed by Kyle and furnish Kyle with an itemized monthly billing statement showing the quantity of EAA water supplied in 1,000-gallon increments and the payment amounts due based upon the minimum purchased quantity and the applicable