The ordinance amends Chapter 19 of the City Code concerning water and sewers to adopt 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 surcharge fees will be assessed on monthly water use exceeding thresholds for different account types when the City is in Stages 1-5 of pumping restrictions to encourage conservation and help the City meet its required reductions.

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 adopt groundwater use surcharge fees
DATE: December 11, 2023
SUMMARY
An Ordinance amending Chapter 19 – Water and Sewers, Article III – Conservation of
Groundwater to enact groundwater use surcharge fees. The groundwater use surcharge fees are
intended to assist City efforts to mitigate water consumption to ensure compliance with Edwards
Aquifer Authority requirements and encourage water resource conservation.
BACKGROUND INFORMATION
The City of Alamo Heights pumps potable water exclusively from the Edwards Aquifer, overseen
by the Edwards Aquifer Authority (EAA). The Edwards Aquifer 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 has been in at least Stage II water restrictions for the entirety of 2023,
requiring mandated pumping reductions by EAA. The City entered Stage III on November 1st
after
spending 103 consecutive days in Stage IV. 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. If the EAA remains in Stage III for the remainder of the year, the cumulative pumping reduction
for 2023 is 35.8%.
The proposal under consideration establishes a groundwater surcharge fees 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 excessive water use to aid in achieving pumping restriction goals.
No specific fees have been adopted. Staff presented different groundwater surcharge fee proposals
at the City Council meetings on August 28, 2023 and September 11, 2023. At the September
meeting, direction was provided for staff to meet with a Council committee consisting of
Councilmembers Blake Bonner and Karl Baker to finalize the surcharge fees proposal. The
proposal under consideration reflects the feedback provided by this committee.
The proposed surcharge fees would be assessed to monthly water use above a threshold unique to
the different account type (residential, commercial and multi-family, institutional, and irrigation).
The threshold is the average monthly use for the top 25% of water customers, with the exception
of irrigation accounts, which are not used for human consumption or daily living needs.

2. The following surcharge fees would be established for residential, commercial & multi-family,
institutional, and irrigation water accounts:
Monthly groundwater use surcharge fees above consumption threshold
Account Type 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
Residential 2,500 or more $0.25 $0.50 $1.25 $2.00 $3.00
Commercial &
Multi-Family
3,500 or more
$0.25 $0.50 $1.25 $2.00 $3.00
Institutional
10,000 or
more
$0.25 $0.50 $1.25 $2.00 $3.00
Irrigation 1,000 or more $0.25 $0.50 $1.25 $2.00 $3.00
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
feet of water consumed above the account threshold. Proceeds collected from the surcharge fees
would be deposited in the Utility Fund and could be used to obtain additional water rights, pay
for fines or penalties related to over-consumption, contribute to drought management and water
conservation measures, or other water-related purposes.
If the proposed changes are adopted by Council, the surcharge fees 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
consider actions to mitigate potential penalties issued by EAA if the City withdraws more water
than the revised permitted amount.
COORDINATION
Staff has reviewed the proposed amendment with a Council Committee consisting of
Councilmember Blake Bonner and Councilmember Karl Baker. 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. Revenues collected through the establishment of
the groundwater use surcharge fees would be deposited in the Utility Fund. Use of surcharge fee
proceeds will be authorized by City Council, when appropriate.
ATTACHMENTS
Attachment A – Ordinance

3. _____________________
Phil Laney
Assistant City Manager
______________________
Buddy Kuhn
City Manager

4. Attachment A
ORDINANCE NO. 2217
AN ORDINANCE AMENDING CHAPTER 19 – WATER AND
SEWERS, ARTICLE III – CONSERVATION OF GROUNDWATER
TO INCLUDE STAGE INDICATORS FOR GROUNDWATER USE
REDUCTION PROGRAM AND GROUNDWATER USE REDUCTION
MEASURES, AND ADOPT GROUNDWATER USE SURCHARGES;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Alamo Heights (the “City”) is a Texas municipality that is an authorized
water purveyor and provides a public potable water system to the public within its City limits; and
WHEREAS, the City intends to comply with State of Texas regulations to enhance the health,
safety, and general welfare of its residents and the general public; and
WHEREAS, the protection and maintaining of the public water supply contributes to the health,
safety and general welfare of its residents and the general public; and
WHEREAS, the City utilizes water resources overseen by the Edwards Aquifer Authority that are
shared with other municipal and privately-managed water users; and
WHEREAS, the Edwards Aquifer Authority regulates usage and enacts restrictions when the
capacity is low due to drought or usage; and
WHEREAS, the City intends to comply with Edwards Aquifer Authority regulations and use
restrictions by adopting withdrawal reduction measures that require amendment of the Reduction
Stages within Chapter 19 – Water and Sewers of the Code of Ordinances; and
WHEREAS, the capacity of the Edwards Aquifer has been impacted by sustained periods of
drought and continued use to warrant additional groundwater use reduction measures and require
amendment of the reduction measures within Chapter 19 – Water and Sewers of the Code of
Ordinances; and
WHEREAS, Chapter 19 – Water and Sewers of the Code of Ordinances authorizes the City to
enact groundwater use surcharges during any groundwater use reduction stage as an additional
measures to deter water use to aid in achieving pumping reduction goals within; and
WHEREAS, the City may adopt groundwater use surcharge fees requiring amendment within
Chapter 19 – Water and Sewers of the Code of Ordinances.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ALAMO HEIGHTS, TEXAS THAT:
SECTION 1. Findings. The recitals are hereby found to be true and correct and are hereby
incorporated as part of this Ordinance.

5. Attachment A
Ordinance No. 2217 2
SECTION 2. Amendments. Section 19-51 – Groundwater management rules for water demand
reduction stages declared by the Edwards Aquifer Authority shall hereinafter be amended at
subsections 19-51(c) to add the underlined text and delete the strike through text to read as follows:
Sec. 19-51. – Groundwater management rules for water demand reduction
stages declared by the Edwards Aquifer.
(c) Groundwater use reduction program.
(3) Restricting the use of groundwater.
a. Groundwater use surcharges may shall be imposed by the city council during
any groundwater use reduction stage as an additional measure to deter water
use to aid in achieving pumping restriction goals. The groundwater use
surcharge shall be established as follows:
Monthly groundwater use surcharge fee for initial consumption threshold*
Account Type 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
Residential 2,500 or more $0.25 $0.50 $1.25 $2.00 $3.00
Commercial &
Multi-Family
3,500 or more
$0.25 $0.50 $1.25 $2.00 $3.00
Institutional 10,000 or more $0.25 $0.50 $1.25 $2.00 $3.00
Irrigation 1,000 or more $0.25 $0.50 $1.25 $2.00 $3.00
* During critical drought stages, the groundwater use surcharge fees are applied to every
100 cubic feet (cf) of water consumed above the account type threshold.
SECTION 3. Conflicting Ordinances or Resolutions. All resolutions or ordinances or parts
thereof conflicting or inconsistent with the provisions of this ordinance as adopted and amended
herein, are hereby REPEALED to the extent of such conflict. In the event of a conflict or
inconsistency between this ordinance and any other resolution, code or ordinance of the City, or
parts thereof, the terms and provisions of this ordinance shall govern.
SECTION 4. Severability. If any section, subsection, clause, phrase, or word of this ordinance is
declared unconstitutional or invalid for any purpose, the remainder of this ordinance shall not be
affected thereby and to this end the provisions of this ordinance are declared to be severable.
SECTION 5. Open Meetings. It is hereby officially found and determined that the meeting at
which this ordinance is passed was open to the public as required and that public notice of the
time, place, and purpose of said meeting was given as required by the Open Meetings Act.
SECTION 6. Effective Date. This ordinance shall be effective from and after its approval and
passage in accordance with the Texas Local Government Code and the city charter.
PRESENTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALAMO
HEIGHTS, TEXAS THIS 11th DAY OF DECEMBER, 2023.

6. Attachment A
Ordinance No. 2217 3
BOBBY ROSENTHAL, MAYOR
ATTEST:
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
FRANK J. GARZA, CITY ATTORNEY