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Consider recommendation from the Permits/Enforcement Committee to approve leases of permitted Edwards groundwater rights with Texas By Anderson Family Properties, LP; CHARLESHANER LP, a Texas Limited Partnership; Kelling Farms Ltd. & Kelling Trust; Linda Susan Mechler and Carol Jean Mechler, Individually; Alamo Concrete Products Company; Harlach Farms; East Medina County Special Utility District; Deborah Ann Benke; Malcolm R. Vogt Testamentary Trust, Gail Kluth, Trustee; W. Michael Humphreys and Candace P. Humphreys; Malvern J. Benke and Deborah Keller Benke, husband and wife; William L. Bippert; Roy M. Kothmann and Carol C. Kothmann; Cynthia A. Keller; Lena Jo Davenport, as Trustee of the Lena Jo Davenport Revocable Trust; and Virginia A. Swart for the Aquifer Storage and Recovery Project of the San Antonio Water System, in support of the Edwards Aquifer Habitat Conservation Plan, in the total amount of $1,173,324.00.
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RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 02-16-834 of the Edwards Aquifer Authority Board of Directors to approve leases of permitted Edwards groundwater rights from the permit holders as listed herein, to the EAA for the Aquifer Storage and Recovery Project of the San Antonio Water System in support of the Edwards Aquifer Habitat Conservation Plan, and authorizing the General Manager to execute the leases.
SUMMARY:
The purpose of this agenda item is for the board to consider a Permits/Enforcement Committee recommendation to approve leases of permitted Edwards groundwater rights for the Aquifer Storage and Recovery (ASR) Project of the San Antonio Water System in support of the Edwards Aquifer Habitat Conservation Plan (EAHCP). The EAHCP includes several measures intended to minimize and mitigate the impact of the use of Edwards groundwater on federally-listed threatened and endangered species associated with the Edwards Aquifer. A significant component of the EAHCP as a conservation and springflow protection measure is the use of the SAWS ASR project as a long-term conservation measure to replace SAWS pumping from the Edwards Aquifer and maintain a minimum spring flow at Comal and San Marcos Springs. Through this effort, the EAA has been tasked with acquiring 50,000 acre-feet of permitted Edwards Aquifer groundwater rights through leases and lease options to be stored in the ASR project.
The EAA has secured leases of groundwater rights of 2,736.050 acre-feet from the permit holders listed below, with one lease beginning in 2017. EAA staff has completed its technical review of the transfer documents and has confirmed the accuracy of these leases, as summarized below:
Permit: P101-212
Permit Holder: Texas By Anderson Family Properties, LP
Transfer Amount: 250.000 acre-feet
Term: 10 year (Beginning in 2017)
Annual Lease Cost: $40,000.00 (Beginning in 2017)
Total Lease Cost: $400,000.00
Permit: P100-521
Permit Holder: CHARLESHANER LP, a Texas Limited Partnership
Transfer Amount: 192.600 acre-feet
Term: 10 year
Annual Lease Cost: $30,816.00
Total Lease Cost: $308,160.00
Permit: P101-921
Permit Holder: Kelling Farms Ltd. & Kelling Trust
Transfer Amount: 250.000 acre-feet
Term: 5 year
Annual Lease Cost: $35,000.00
Total Lease Cost: $175,000.00
Permit: P104-763
Permit Holder: Linda Susan Mechler and Carol Jean Mechler, Individually
Transfer Amount: 77.500 acre-feet
Term: 5 year
Annual Lease Cost: $10,850.00
Total Lease Cost: $54,250.00
Permit: P100-376
Permit Holder: Alamo Concrete Products Company
Transfer Amount: 1,200.000 acre-feet
Term: 1 year
Annual Lease Cost: $144,000.00
Total Lease Cost: $144,000.00
Permit: P100-362
Permit Holder: Harlach Farms
Transfer Amount: 150.000 acre-feet
Term: 1 year
Annual Lease Cost: $18,000.00
Total Lease Cost: $18,000.00
Permit: P101-318
Permit Holder: East Medina County Special Utility District
Transfer Amount: 150.000 acre-feet
Term: 1 year
Annual Lease Cost: $18,000.00
Total Lease Cost: $18,000.00
Permit: P101-031
Permit Holder: Deborah Ann Benke
Transfer Amount: 143.000 acre-feet
Term: 1 year
Annual Lease Cost: $17,160.00
Total Lease Cost: $17,160.00
Permit: P100-508
Permit Holder: Malcolm R. Vogt Testamentary Trust, Gail Kluth, Trustee
Transfer Amount: 122.000 acre-feet
Term: 1 year
Annual Lease Cost: $14,640.00
Total Lease Cost: $14,640.00
Permit: P102-675
Permit Holder: W. Michael Humphreys and Candace P. Humphreys
Transfer Amount: 65.000 acre-feet
Term: 1 year
Annual Lease Cost: $7,800.00
Total Lease Cost: $7,800.00
Permit: P101-225
Permit Holder: Malvern J. Benke and Deborah Keller Benke, husband and wife
Transfer Amount: 57.000 acre-feet
Term: 1 year
Annual Lease Cost: $6,840.00
Total Lease Cost: $6,840.00
Permit: P101-095
Permit Holder: William L. Bippert
Transfer Amount: 32.380 acre-feet
Term: 1 year
Annual Lease Cost: $3,885.60
Total Lease Cost: $3,885.60
Permit: P103-810
Permit Holder: Roy M. Kothmann and Carol C. Kothmann
Transfer Amount: 18.820 acre-feet
Term: 1 year
Annual Lease Cost: $2,258.40
Total Lease Cost: $2,258.40
Permit: P101-245
Permit Holder: Cynthia A. Keller
Transfer Amount: 16.500 acre-feet
Term: 1 year
Annual Lease Cost: $1,980.00
Total Lease Cost: $1,980.00
Permit: P101-869
Permit Holder: Lena Jo Davenport, as Trustee of the Lena Jo Davenport Revocable Trust
Transfer Amount: 10.000 acre-feet
Term: 1 year
Annual Lease Cost: $1,200.00
Total Lease Cost: $1,200.00
Permit: P104-100
Permit Holder: Virginia A. Swart
Transfer Amount: 1.250 acre-feet
Term: 1 year
Annual Lease Cost: $150.00
Total Lease Cost: $150.00
Attached to this item are the ASR lease agreement templates and Resolution and Order No. 02-16-834 that have been reviewed by legal counsel. As outlined above, the lease agreements were signed and returned by the applicants. If these leases are approved, the total amount of groundwater rights secured by the EAA in 2016 ASR leases is 12,335.271 acre-feet, the lease for P101-212 (250 acre-feet) beginning in 2017 is not included. A spreadsheet summarizing 2016 ASR leases approved to date is also attached.
At the January 26 meeting, the Permits/Enforcement Committee voted to recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors to approve leases of permitted Edwards groundwater rights from the permit holders as listed herein, to the EAA for the Aquifer Storage and Recovery Project of the San Antonio Water System in support of the Edwards Aquifer Habitat Conservation Plan, and authorizing the General Manager to execute the leases.
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.
STRATEGIC PLAN REFERENCE:
This agenda item supports the EAA’s policy direction as set forth in the EAA 2016-20 Strategic Plan: Goal A, Sustain Federally Protected Aquifer-Dependent Species.
Acquisition of 50,000 acre-feet of water for the ASR program is required of the Edwards Aquifer Authority to maintain compliance with the Incidental Take Permit issued by USFWS on March 18, 2013. Specifically, this item is related to the obligations of Section 5.5.1 of the Edwards Aquifer Habitat Conservation Plan.
FISCAL IMPACT:
Funding in the amount of $312,580.00 is available in the 2016 EAHCP budget, the annual cost of the lease for P101-212 ($40,000) beginning in 2017 is not included. The total cost of these leases over the total lease term is $1,173,324.00.