After an executive-session briefing council directed city staff to prepare a term sheet and draft agreement to acquire groundwater rights associated with approximately 22,788 acres in San Patricio County, contingent on appraisal, city approval of the final agreement and appropriation of funds. Councilman Hernandez made the motion to authorize staff negotiations and the city moved to a record vote; the motion carried.

In his motion Councilman Michael Hernandez said the directive was to prepare a purchase agreement for the acreage and water-rights package at an amount up to $7,437 per acre, totaling roughly $169,491,700 — subject to final terms, appraisal and appropriation. City staff and the city manager outlined funding intent: the city's plan would use revenue bonds to finance the purchase and related infrastructure debt, to be repaid from water rate revenues; staff said the city would pursue state and federal grants and low‑interest loans where eligible to offset rate impacts.

Council members asked clarifying questions about funding mechanisms and timeline for construction and delivery of water; staff committed to returning with a formal contract and implementation schedule. Ending: Council’s direction authorizes staff to negotiate terms and return a detailed agreement to council for appropriation and final approval.