The document summarizes a proposed ordinance to amend the City of Alamo Heights' groundwater conservation code. The ordinance would add indicators for the city's groundwater use reduction program stages, revise reduction measures, and enact groundwater use surcharge fees. The city relies solely on the Edwards Aquifer for its water supply and must comply with pumping restrictions imposed by the Edwards Aquifer Authority during drought conditions. The proposed changes are intended to help the city meet its pumping reduction goals.

1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Phil Laney, Assistant City Manager
SUBJECT: Ordinance amending Chapter 19 – Water and Sewers, Article III – Conservation of
Groundwater to amend the groundwater use reduction program and adopt
groundwater use surcharge fees
DATE: August 28, 2023
SUMMARY
An Ordinance amending Chapter 19 – Water and Sewers, Article III – Conservation of
Groundwater to add stage indicators for groundwater use reduction program, revise groundwater
use reduction measures, and enact groundwater use surcharge fees. The groundwater use reduction
measures and groundwater use surcharge fees are intended to assist City efforts to mitigate water
consumption to ensure compliance with the Edwards Aquifer Authority requirements.
BACKGROUND INFORMATION
The City of Alamo Heights pumps potable water exclusively from the Edwards Aquifer Authority
(EAA). The EAA provides water to 2.5 million people and covers more than 8,000 square miles
across eight counties. These include all of Bexar, Medina and Uvalde counties and portions of
Atascosa, Caldwell, Comal, Guadalupe, and Hays counties. Under the agreement with the Edwards
Aquifer Authority, the City has 2,822 permitted acre feet. The City code follows EAA guidelines
when aquifer conditions drop below certain capacity thresholds. The City entered Stage IV water
restrictions on July 31st
, 2023; prior to that, Stage III water restrictions have been in place for most
of the time since June 2022. Both stages enact mandated pumping reductions by EAA. City code
requires 35% pumping reduction in Stage III and 40% pumping reduction in Stage IV, and if
necessary, 44% pumping reductions in Stage V.
The City has adopted restrictions established by the EAA in City Code Chapter 19 – Water and
Sewer, Article III – Conservation of Groundwater. Currently, the groundwater use reduction
program in the code has conditions for critical period (reduction) stages I, II, III, and IV. However,
EAA includes conditions for stage V, when the 10-day average for Index Well J-17 level reaches
less than 625 feet. If stage V is reached, EAA users such as Alamo Heights are required to reduce
withdrawal from the aquifer by 44%. The ordinance under consideration would incorporate the
reduction criteria for stage V.
The Code references specific groundwater use reduction measures residents, businesses and
institutions in a separate document. To eliminate the need to retrieve a second document, the latest
reduction measures are included in the ordinance and, if adopted, will be incorporated within the
Code. Moreover, additional groundwater use reduction measures are under consideration for stages
IV and V. Measures to reduce groundwater use at critical drought stages IV and V include the
following:

2.  Filling of new pools or refilling of existing pools is prohibited unless at least 100% of the
water is obtained other than the Edwards Aquifer. In addition, refilling is allowed only if
the pool has been drained for repairs.
 Permits for new irrigation systems and swimming pools will not be issued.
 Residential landscape watering by means of an automatic or manual irrigation system
shall not be eligible for variances, unless approved by the city council and payment of
$2,000 drought application fee.
 Applications for new, additional, or increased-in-size water service connections, meters
and service lines shall not be issued. The restriction does not apply to new construction
projects or to properties that have submitted payment of the $2,000 drought application
fee.
 Penalties for any person who violates the provisions of this stage shall be issued with
minimal to no warnings.
 Permits for water wells for residential landscape watering will not be issued.
 Residential landscape watering by means of an automatic or manual irrigation system
may be prohibited by declaration of the mayor or city council.
In addition to the proposed reduction measures, a groundwater surcharge fee would be established
based on the drought stage and amount of groundwater consumed by residents, businesses and
institutions. Sec. 19-51(c)(3) authorizes city council to impose the fee during any groundwater use
reduction stage as an additional measure to deter water use to aid in achieving pumping restriction
goals. No specific fees have been adopted. The following surcharge fees would be established for
residential, multi-family, and institution water accounts:
Residential, Multi-Family & Institutional
Consumption
in Cubic Feet
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
(cf) Per 100 cf Per 100 cf Per 100 cf Per 100 cf Per 100 cf
500 or less $0.00 $0.00 $0. 00 $0.00 $0.00
501 to 1,000 $0.00 $0.00 $0.00 $0.00 $0.00
1,001 to 2,300 $1.00 $2.00 $3.00 $5.00 $8.00
2,300 or more $2.00 $3.00 $5.00 $10.00 $15.00
The following fees would be established for commercial and irrigation water accounts:
Commercial & Irrigation
Consumption
in Cubic Feet
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
(cf) Per 100 cf Per 100 cf Per 100 cf Per 100 cf Per 100 cf
500 or less $0.00 $0.00 $0. 00 $0.00 $0.00
501 to 1,000 $0.00 $0.00 $0.00 $0.00 $0.00
1,001 to 2,300 $2.00 $3.00 $4.00 $7.00 $10.00
2,300 or more $3.00 $4.00 $6.00 $12.00 $17.00
If the proposed surcharge fees are enacted, the fees would be in addition to the current charges
on water and sewer bills. Depending on the stage, fees would be assessed for every 100 cubic

3. feet of water consumed in four different consumption tiers. Proceeds collected from the
surcharge fee would be deposited in the Utility Fund.
If the proposed changes are adopted by Council, the reduction measures would go into effect
immediately, with the exception of the groundwater use surcharge fee. If adopted, the surcharge
fee would be assessed on the second month’s billing statement after adoption, in order to notify
customers of the new fee. Residents would be informed of the fee’s adoption via the water and
sewer bill prior to it going into effect.
POLICY ANALYSIS
The ordinance is consistent with the City’s agreement with the Edwards Aquifer Authority to abide
by pumping restrictions during periods of drought. The amount of groundwater the City may
withdraw from the Edwards Aquifer, the City’s sole source of water, is reserved through contract
between the City and EAA. When pumping restrictions are imposed, it is consistent with City
policy to comply with the terms of existing agreements, be good stewards of natural resources, and
may factor into consideration if penalties are issued by EAA if the City withdraws more water than
the revised permitted amount.
COORDINATION
Staff has reviewed the proposed amendment with the Mayor and City Council at a staff briefing at
the City Council meeting on August 14, 2023. In addition, the amendment has been reviewed by
the City Attorney and City Manager.
FISCAL IMPACT STATEMENT
There is no fiscal impact to City expenditures. General Fund revenues associated with the issuance
of permits may be negatively impacted when in effect. Revenues collected through the
establishment of the groundwater use surcharge fee would be deposited in the Utility Fund.
ATTACHMENTS
Attachment A – Ordinance
_____________________
Phil Laney
Assistant City Manager
______________________
Buddy Kuhn
City Manager