Title
Consider recommendation from EAA staff to approve water conservation grant contracts with: KNJK Limited Partnership; Loretta P. Sittre, W.R. Testamentary Trust; EDMRGE Farms; and Michael and Gail Saathoff in the total amount of $478,178.05, and to amend the 2026 EAA Operating Budget by increasing the General Fund appropriation by $300,000.
Body
RECOMMENDED MOTION:
Move the board: (1) approve water conservation grant contracts with: KNJK Limited Partnership; Loretta P. Sittre, W.R. Testamentary Trust; EDMRGE Farms; and Michael and Gail Saathoff in the total amount of $478,178.05; and (2) authorize the General Manager to negotiate and execute the contracts; and (3) amend the 2026 EAA Operating Budget by increasing the General Fund appropriation by $300,000.
SUMMARY:
The purpose of this agenda item is for the board to consider a staff recommendation to approve water conservation grant contracts with EAA groundwater withdrawal permit holders described below. These contracts will fund the installation of irrigation conservation equipment.
KNJK Limited Partnership requested funding for the replacement of a 244-acre center pivot sprinkler system with a new 244-acre center pivot. Staff is recommending funding in an amount not to exceed $109,598.08.
Loretta P. Sittre, W.R. Testamentary Trust requested funding for the replacement of a 270-acre linear sprinkler system with three new center pivots which will cover 255 acres. Staff is recommending funding in an amount not to exceed $175,000.00.
EDMRGE Farms requested funding for the replacement of 24 acres of flood irrigation with a new center pivot sprinkler system that will cover 10.81 acres. Staff is recommending funding in an amount not to exceed $114,329.97.
Michael J. Saathoff and Gail Saathoff, husband and wife, and E&S Farms requested funding for the replacement of a 134-acre center pivot sprinkler system with a new 134-acre center pivot. Staff is recommending funding in an amount not to exceed $79,250.00.
A draft template of the grant contract and related exhibit templates, which have been reviewed by legal counsel, are attached to this agenda item. Individual contracts based on these templates will be developed and executed following board approval.
The proposed increase of $300,000 to the 2026 EAA Operating Budget will be offset by the funds received from the Texas Water Development Board. This offset results in a $0 net impact to the 2026 EAA Operating Budget General Fund reserves as shown in the attached budget amendment document.
M/WBE PARTICIPATION:
This agenda item does not involve the procurement of goods or services by the EAA and, therefore, this section is not applicable.
FISCAL IMPACT:
The proposed amendments would increase the 2026 Operating Budget by $300,000 and increase grant revenue by this same amount, resulting in $0 net impact to the General Fund operating reserves.