AGENDA CAPTION:
Title
Consider approval of Resolution 2026-195R, approving an amended agreement providing for the city to sell additional potable treated water on a temporary wholesale basis to the County Line Special Utility District, extending the current contract 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 amended agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: November 17, 2026
Department: Utilities - Ekaterina Fitos, Director
Amount & Source of Funding
Funds Required: N/A
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Fiscal Note:
Prior Council Action: 2023-38R, 2024-98R
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Background Information:
County Line Special Utility District (CLSUD) has requested an additional water supply for two years of up to 1.125 million gallons a day (MGD), which is a 0.375 MGD decrease over the existing agreement. The City has the capacity to provide the requested capacity during this one-year period with a possible one-year extension and is willing to do so. 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. The connection point is at Hwy 21 and William Pettus Rd. The terms of the agreement will net the City between $2,800,000-$5,700,000 over the one year and one-year extension depending on actual CLSUD usage. The amended agreement reduces the level of supplied water depending on the Guadalupe Blanco River Authority (GBRA) Drought Response Stage in effect each month. This agreement is technically achievable, offers financial benefit to our existing ratepayers, and leaves sufficient reserve capacity for our needs over the term of the agreement.
Council Committee, Board/Commission Action:
NA
Alternatives:
NA
Recommendation:
The Utilities Department recommends approval of the amended agreement.