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Kyle council approves wholesale water sale to serve Windy Hill site amid resident questions
Summary
The City of Kyle approved a 'take or pay' wholesale water agreement to supply 20,000 gallons per day to a site near I‑35 in Windy Hill at $6.42 per 1,000 gallons; council discussed conservation concerns while staff said the water will come from ARWA deliveries and can be restricted to the site. Vote: 6–1.
The City of Kyle on Nov. 19 approved a resolution authorizing a wholesale "take or pay" agreement with Texas Water Utilities LP to provide 20,000 gallons per day for property near I‑35 in the Windy Hill area.
City water director Mike Murphy told the council the contract rate is $6.42 per 1,000 gallons and that the supply would come from the Alliance Regional Water Authority (ARWA) tranches that the city is taking delivery of. "This is a take or pay contract, at the amount of $6.42 per 1,000 gallons," Murphy said. He added the first ARWA tranche is scheduled for 2025 and that the agreement limits use of the water to the specific site: "If nothing's built on that site, they will never get water."
Nut graf: The vote came after residents raised concerns about water scarcity and the placement of the item on the consent agenda. One resident noted that households remain under amended stage‑3 water restrictions and questioned why the city would approve a wholesale sale while residents face restrictions.
Council members pressed staff on safeguards. Councilor Zuniga asked whether the city had enough water while under current restrictions; staff said the ARWA deliveries and the city's storage projects create capacity that can be dedicated to the site only if development proceeds. "This agreement specifically limits the use of the water to this site," a staff member said.
Council approved the resolution 6–1, with one council member recording a nay. The motion was made by Councilor Zuniga and seconded by Councilor Heizer.
What’s next: Staff will execute the wholesale agreement and the contract terms will be implemented if and when the specified development requests service. Council members asked staff to provide additional documentation about the council’s decision to enter stage‑3 restrictions and the timing of ARWA deliveries to improve public transparency.
Sources: Presentations and statements during the Nov. 19 city council meeting.
