Powerpoint Water Rights Sub-Lease Agreements

1. ADMINISTRATION
Presented by:
Phil Laney
Assistant City Manager
RESOLUTION TO PROCURE ADDITIONAL WATER
RIGHTS FOR 2023
ITEM # 4
JANUARY 22, 2024

2. SUMMARY
 City’s sole potable groundwater source, Edwards
Aquifer Authority (EAA), regulates usage & enacts
restrictions when capacity low due to drought or
usage
 In 2023, City water system exceeded revised
authorized amount of water
 Resolution to negotiate sub-lease agreements to
obtain 360.3 acre-feet (AF) of water to apply to
2023’s use

3. BACKGROUND
 Edwards Aquifer Authority (EAA) exclusive
provider of City potable groundwater
 EAA provides water to 2.5 million people &
includes 8 counties, including all of Bexar Co.
 City mandated to follow EAA guidelines on
pumping capacity & when necessary, restrictions

4. 2023 PERMITTED WATER CAPACITY
2023 Water Capacity Amount (in Acre Ft.)
EAA Authorized Pumping 2,822
Revised Authorized Pumping 1,811
Total 2023 Consumption 2,043
Overage (Consumption – Revised Authorized) 232
Sub-Lease Needs (Overage + Reduction %) 360.3
 City water capacity purchased from EAA – 2,822 Acre Feet
 2023 drought stages reduced authorized water use by 35.8%, or
revised total of 1,811 AF
 Pumping overage requiring acquisition of 360.3 AF

5. BACKGROUND
 Negotiating sub-lease agreements with two
permit holders for unused water in 2023
1. Redbird Hondo, LP for 150.0 AF
2. Redbird Hondo, LP for 40.0 AF
3. L. Carper Capt for 170.3 AF
 Total cost for all sub-leases is $45,039.38
 Sub-lease offsetting 2023 overages only; not
increasing capacity in 2024

6. POLICY ANALYSIS
 Resolution consistent with City’s agreement with
Edwards Aquifer Authority to abide by pumping
restrictions during drought periods
 Sub-lease agreements more cost effective than
paying for fines/penalties imposed by EAA

7. COORDINATION
 City Attorney
 City Manager

8. FISCAL IMPACT
 Total cost of all sub-lease agreements for Edwards
Aquifer water for 2023 municipal use is $45,039.38
 150.0 & 40.0 AF agreements with Redbird Hondo, LP for
$23,750.00
 170.315 AF agreement with L. Carper Capt for
$21,289.38
 Expenses to be paid from FY 2024 Utility Fund
Budget