AGENDA CAPTION:
Title
Consider approval of Resolution 2026-196R, approving an Agreement for the sale of Edwards Aquifer Authority Water Rights on a temporary basis to the County Line Special Utility District for one year with an optional one-year extension subject to availability and meeting the City’s drought mitigation requirements; authorizing the City Manager, or her designee, to execute the Agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: November 17, 2026
Department: Utilities - Ekaterina Fitos, Director
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Fiscal Note:
Prior Council Action: 2024-097R, 2024-238R
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Background Information:
In June 2024, the City and County Line Special Utility District (CLSUD) entered a water sharing agreement for the temporary assignment of Edwards Aquifer Authority (EAA) water rights for 2024-2026. The agreement was for 500 acre-feet (AF) annually at a price of $3.41/1,000 gallons with a minimum monthly payment of $23,149.00 to the City. CLSUD anticipates the need for additional EAA water under the City’s permit for 2027 and 2028. San Marcos has water supply 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 AF for one year with a potential one-year extension. CLSUD will meet or exceed San Marcos drought restrictions throughout the duration of this agreement. The 500-acre feet will be subject to EAA drought stage reductions and CLSUD is responsible for any reductions and for any associated penalties for exceeding the restrictions. This will be based on actual restrictions as established by the EAA stage of drought. Additionally, the agreement states that San Marcos may reduce or cease the supply of water if San Marcos water supplies are reduced or if the San Marcos usage increases such that San Marcos water capacity no longer exceeds its current or near-term future water needs. The extension will only occur if the City Manager confirms that San Marcos still has surplus water. As part of this amended agreement, the City will increase the price to $3.79/1,000 gallon for calendar year 2027 and $3.98/1,000 gallon for calendar year 2028. The minimum monthly amount will be dependent upon the EAA drought stage in effect every month of the term of this agreement. The revenue to the City over the agreement term will range from $370,000.00 to $1,200,000.00 depending on CLSUD usage.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
The Utilities Department recommends approval of the amended agreement.