AGENDA CAPTION:
Title
Consider approval of Resolution 2026-57R, approving an agreement providing for the city to sell water on a temporary basis to the City of Kyle; authorizing the City Manager, or her designee, to execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: April 21, 2026
Department: Utilities, Assistant Director - Paul Kite
Amount & Source of Funding
Funds Required: 0.00
Account Number:
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Fiscal Note:
Prior Council Action: 2022-277R, 2023-154R, and 2024-69R authorizing a similar sale.
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Background Information:
As in the past years, and until the year after Alliance Regional Water Authority Phase 1 is fully completed, the City of Kyle anticipates the need for additional water for the Edwards Aquifer Authority permit period 2027-2028 (calendar years).
San Marcos has supplies above and beyond their current needs within its EAA permit limits and is willing to commit, and make available, from its EAA-permitted water supply 500 acre-feet in calendar 2025-2026.
The revenue to SMTXU over the agreement term is a minimum of $732,624.00, and a maximum of $1,481,536.
The City has available capacity to provide this water to the City of Kyle while remaining safely below our Edwards Aquifer drought reduction requirements because of new capacity available to San Marcos from Alliance Reginal Water Authority.
There is no impact to the Aquifer because of this transaction - the City of Kyle will draw the same amount of water from the Aquifer with or without this assignment of water through this agreement. In other words, this agreement does not impact the aquifer, as the City of Kyle will withdraw the same total volume of water regardless. This agreement simply reallocates a portion of our City of San Marcos permitted groundwater rights to the City of Kyle, allowing Kyle to increase (and stay in compliance with) their maximum groundwater withdrawal limit.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
SMTXU recommends approval.