Title
Consider recommendation from EAA staff to approve water conservation grant contracts with HABY 47 FARM, LLC; Scott Saathoff; Cole Yanta Farms; Texas A&M AgriLife Research Center; D'Hanis West 90, LLC; and Gregory M. and Jean Saathoff and amend the 2025 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: HABY 47 FARM, LLC ($47,525.00); Scott Saathoff ($37,000); Cole Yanta Farms ($34,509.14); Texas A&M AgriLife Research Center ($41,612.99); D'Hanis West 90, LLC ($110,000); Gregory M. and Jean Saathoff ($29,352.87) for a total amount of $300,000; (2) authorize the General Manager to negotiate and execute the contracts; and (3) amend the 2025 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.
In response to designated, donated funds acquired by the Edwards Aquifer Conservancy, the EAA allocated $300,000 in 2025 for its water conservation grant program. The EAA received nineteen applications requesting over $1.8 million in funding for equipment. EAA staff reviewed the applications and determined that the proposed projects summarized below met all requirements of the EAA Rules and would result in the most conservation of Edwards groundwater.
HABY 47 FARM, LLC requested funding for the installation of a center pivot sprinkler system to replace flood irrigation. Staff is recommending funding in an amount not to exceed $47,525.00, with a life cost of $32.50 per acre-foot conserved.
Scott F. Saathoff requested funding for the installation of a center pivot sprinkler system to replace a 27-year-old center pivot sprinkler system. Staff is recommending funding in an amount not to exceed $37,000.00 with a life cost of $24.03 per acre-foot conserved.
Cole Yanta Farms requested funding for the installation of a center pivot sprinkler system to replace a 28-year-old center pivot sprinkler system. Staff is recommending funding in an amount not to exceed $34,509.14, with a life cost of $29.67 per acre-foot conserved.
Texas A&M AgriLife Research requested funding to replace flood irrigation with a new center pivot sprinkler system. Staff is recommending funding in an amount not to exceed $41,612.99, with a life cost of $49.15 per acre-foot.
D’Hanis West 90, LLC. requested funding for the installation of a center pivot sprinkler system to replace a 22-year-old center pivot sprinkler system. Staff is recommending funding in an amount not to exceed $110,000.00, with a life cost of $35.83 per acre-foot conserved.
Gregory M. Saathoff and Jean Saathoff requested funding for the installation of a center pivot sprinkler system to replace a 26-year-old center pivot sprinkler system. Staff is recommending funding in an amount not to exceed $29,352.87 with a life cost of $58.10 per acre-foot conserved.
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 2025 EAA Operating Budget will be offset by the funds received from Microsoft Corporation (via the Edwards Aquifer Conservancy). This offset results in a $0 net impact to the 2025 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 2025 Operating Budget by $300,000 and increase grant revenue by this same amount, resulting in $0 net impact to the General Fund operating reserves.