Res 2024-097 approving an amended agreement providing for revised rates and quantities in the city’s agreement for the sale of Edwards Aquifer Water on a temporary basis to the County Line Special Utility District and extending the agreement through 2026

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Interlocal Agreement between City of San Marcos and County Line Special Utility District for Edwards Aquifer Water Rights Assignment This agreement documents the mutual understanding between and among the City of San Marcos ("SMTXU") and the County Line Special Utility District("CLSUD")under which SMTXU commits and makes available its Edwards Aquifer water permitted by the Edwards Aquifer Authority(`BAA")to CLSUD on a temporary basis via CLSUD's existing facilities and four wells associated with CLSUD's EAA permits. Background SMTXU and CLSUD each possess EAA permits. Due to growth that Central Texas is currently facing, CLSUD anticipates the need for additional water during the EAA permit period for years 2024-2026. This additional water will prevent CLSUD from exceeding permitted capacity. This permitting period dates July 1, 2024,to December 31,2026. SMTXU has supplies above and beyond their current needs within the EAA permit. SMTXU is willing to commit and make available water to CLSUD 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 July 1,2024, CLSUD will reimburse SMTXU for EAA capacity necessary for CLSUD 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, CLSUD 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$23,149 per month,regardless of the actual amount of EAA water used by CLSUD each month. C. CLSUD will meet or exceed SMTXU drought restrictions throughout the duration of this agreement. The 500-acre ft. will be subject to EAA drought stage reductions and CLSUD is responsible for any reductions. This will be based on actual restrictions and not stage of drought. D. Initial Billing Rate. The initial rate to be paid by CLSUD for EAA Water under this Agreement shall be $3.41 per 1,000 gallons of EAA water used by CLSUD. E. Billing and Payment. At the end of each calendar month, SMTXU shall determine the quantity of water consumed by CLSUD and furnish CLSUD with an itemized monthly