19-R-89 - Agreement with Hanson Aggregates LLC for the lease of 200 acre/feet of Edwards Aquifer permitted waterRESOLUTION NO. 19 -R -89
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER
INTO AN AGREEMENT WITH HANSON AGGREGATES LLC FOR
THE LEASE OF 200 ACRE /FEET OF EDWARDS AQUIFER
PERMITTED WATER.
WHEREAS, the City of Schertz is permitted for 1,768.08 acre /ft of water from the
Edwards Aquifer; and
WHEREAS, the City of Schertz traditionally reserves 1,000 acre /ft of water for
emergency use for the City and makes available the rest for one -year leases to others; and
WHEREAS, Hanson Aggregates has requested from the City of Schertz to lease 200
acre /ft of water for the calendar year 2019; and
WHEREAS, the City of Schertz has leased water to Hanson Aggregates LLC, in the past
years; and
WHEREAS, the City and Hanson Aggregates LLC, desire to enter into this agreement to
lease excess City permitted water; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
enter into this agreement to lease this excess water to Hanson Aggregates LLC; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the City Manager to enter into an
agreement with Hanson Aggregates LLC, for the lease of 200 acre /ft of Edwards Aquifer
permitted water for calendar year 2019.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 23rd day of July, 2019.
CITY OF SCXTZ, TEXAS
ichael R. Carpenter
ATTEST:
City Secretary, Brenda Dennis
50506221.1 - 2 -
LEASE OF GROUND WATER
(Beginning July 1, 2019)
This Lease of Ground Water rLease) is entered into to be effective July 1, 2019, between City of Scheitr,
a Texas municipal corporation ("Lessor") and Hanson AMegetes LLC (the "Lessee"). Subject to the
adjustment set out in paragraph 4 below, Lessor hereby leases to lessee 200 acre-feet of water (the "Water
Rights") for one year as set out in the Team, as defined below, on the following terms and conditions:
1. JeAll. The term of this Lease shall commence July 1, 2019 and continue through
December 31, 2019.
2. ti Lessee shall pay to Lessor the sum of $12,049.07 or as shown on the quote, per
month commencing August 1, 2019 (the "Lease Payment's The Lease Payment foreaeh month of the Term
shall be made to Lessor on or before the fast day of each month during the Team as shown on the Quote_
3. Water Rights Aduustment. In the event any applicable laws, regulations, or governmental
action provide that Lessor may not lease to Lessee all of the Water Rights pursuant to this Lease, the amount
of the water Rights leased by Lessor to Lessee shall automatically adjust to reduce the water Rights to the
maximum amount which can be so leased.
4. Lease Payment Adi nstment The Lease Payment is based upon 200 acre -feet of water
actually permitted by the Edwards Aquifer Authority ( the -EAA -) to Lessor and leased to Lessee. N the
Water Rights leased to Lessee are decreased during the Term, the Lease Payment during the Term shall be
decreased proportionately to the decrease in Water Rights.
S. jam' . The Lessor has paid or shall pay aquifer management fees to the EAA for the
Water Rights. Lessee shall have the right to pursue, to initiate, and to prosecute gay proceedings relating to
the water Rights and, at its election, as may be necessary for the protection of the water Rights, including
but not limited to (i) contesting the validity or amount of fees assessed to or levied upon the Water Rights
(h) protecting, defending, and/orpaeswing the rights to withdraw water from the Edwards Aquifer. Lessor
shall cooperate with Lessee's efforts in connection therewith. Lessor shall not take any action or omit to
take any actions which will adversely affect the Water Rights. If required by law, Lessee may take any each
action in the name of Lessor. In no event shall Lessee be required to take any such action with respect to
the Water Rights on behalf of Lessor in connection with such actions, and Lessee shall in no event be
deemed to be the agent of Lessor or as having any duty or responsibility to Lessor or to act on behalf of
Lessor. To the extent Lessee elects to act in connection withhhe Water Rights inaccmdance with the above,
Lessor appoints Lessee as Lessor's attorney -m -fact to take such action. The Lessor pays all fees to Edwards
Aquifer Authority and those fees are reimbursed to the Lessorby the Lessee. If Edwards Aquifer Authority
increases the fee, the lease payment and I5°1e Administration Fee will be automatically adjusted for such.
6. Continued Operation. From the date of this L ease, Lessor shall not take any actions (or
omit to take any actions) which will harm or diminish the Water Rights. In this regard, Lessor agrees that
it has leased the water Rights to Lessee, and Lessor shall not transfer (by operation of law or otherwise) f )
any portion of the Water Rights (unless such transfer is expressly subject to this Lease) or (it) any other
portion of this Lease if such transfer would reduce the Water Rights leased to Lessee pursuant to this Lease.
For the team of this Leese, Lessor agrees that it will utilize for its own use only that amount of groundwater
which is equal to the amount of acre -feet of Edwards Aquifer water permitted under Lessor's Proposed
Initial Regular Permit with the EAA less (i) the amount of acre-feet of Edwards Aquifer water pertaining
to the Water Rights leased hereunder, and (ii) the amount of acre -feet of Edwards Aquifer water pertaining
to the remainder of the water leased to other third parties. A transfer of the water shall not be prohibited,
if the transferee expressly assumes all of the obligations and conditions of this Lease.
7. Owlet Eniovmeat. Lessor hereby warrants and represents to Lessee that it has good title to
the water, including the Water Rights leased to Lessee hereunder, and hereby covenants to provide to Lessee
quiet enjoyment, without restriction or limitation, of the Water Rights during the full tam of this Lease.
S. Proceeds From Awards. Lessor assigns to Lessee all interest of Lessor in and to any
condemnation awards or umurance proceeds which would otherwise be payable to Lessor relating to the
Water Rights.
9. Coormigion . Lessor will use its best efforts, take such actions and execute and deliver
such documents as Lessee determines necessary to fully vest Lessee with the Wader Rights and make
dlwdve all of the terms of this Lease.
10. Assignability. The Lessee shall have the right to sublease or assign this Lease upon the
written consent of Lessor, which consent shall not be unreasonably withheld.
$07131212
of this Lease. Lessor agrees to execute a Memorandum of Lease in substantially the same form as attached
hereto as Exhibit "B" and fully incorporated herein.
21. Bntire Agreement. This Lease contains all agreements, between the parties hereto, and any
agreement not contained herein shall not be recognized by the parties. All amendments must be in writing
and signed by both parties. The captions used herein are for convenience only and shall not be used to
construe this Lease. Words of gender shall be consumed to include any other gender, and words in the
singular number shall include the plural and vice versa unless the context requires, otherwise.
[&Vwtww o- follawingpaSe]
707131212
Eahibt! "A"
Appiinden do Transfer —Lease
507191215
PAR* A -]
LESSOR:
CnV OF SCIIO% M
By:
Name: Mark Browne
Its: City Manager
STATE OF TEXAS
COUNTY OF GUADALLTE
_ day of ��' 2019, by Mark
This instrument was acknowledged before me an the Elbe City.
Browa�
OW Manager of the City of schertz oo behalf
Notary Publ:c, sState of Texas
STATE OF TE!
COUN'T'Y OF &L
This
was acknow edged before me c
'
LESSEE:
HANSON AAT
By:
Name:
Its: R'+�
m the day of , 2019, by
on behalf of
TAMMIE L. JIMENEZ
:Notary Public, State of Texss
Comm. Expires 11 -16 -2022
+4j....�`+��• Notary ID 11342479
sMI31212 Exhibit B-2
APPLICATION e
WE Quahay. SanAnknk, Texas M15 r------------ - - - - --I
lDWAR9a AOUIrlR Tekph —(210) 222 -221M ' T ;
•etxoxn� Few(210)222 -9869 'Check$ '
�WN1Y. cM L -----------------
-�
PART I - TRANSFEROR AND TRANSFEREE INFOPJAAMN
A. Tranahror bidonnatlorc
Name of pawA Holder: City of ScherM
Mating Address 1400 Scherfz Parkway
ScheAz
TX
78154
(ShacrPOW4
Ph
{O)
(8)
phi A .10 CMn,nw eel Place, Bldg. 2
Scheriz
TX
78154
Telephone: 2104319 -1800
E-mM A*ftr jhooks@schertz com
Autlaabzd Repmentollm James A. Hooke
Water and wastewater Manager
(210) 619 -1800
Pftm1
)
{rdaphoee)
Mdktg Address Same as stave
(8hdarP064
(Cif1y
tom)
lap)
Has any of the above hrfartnatial recently d= VV
a Yes * No
B. Tranateree hdonna0mr.
NomeofTr�css#ei Hanson AgWO091eslLC.
Ong Address: 300 E. John Carpenter Freeway, Suke 1845 Irving
Texas
75602
(arredarposos}
W
RM)
ON
py*d Addrese Same as Above
ion
la2b)
Talepha w (972) 653 -3735 E-mM Addmss:
Autlariaed Representative: Lallt (LB) Shatnager Reglonel ohecw Envinmment. Safety B.Heahh (972) 8533735
P—) (Rea mdo) (ice)
MaGhlg Address: Same as above
{StrealaPOama)
Has any of the above bdmrrrefjon recelttip chenged4 a Yea n No
PART 11— WATER USE INFORMATION
A. Orarndwdw Use bftmdon WTrwwfw r (Leaaor): Idd Regular Pod pRPyRegubrr Pamdt (RP) No: P 8 1
Current purpose of use: a Municipal Use a Indusllw use a kill" use
Aawu t of groundwater used to dme: aaeieat
MMer Serial Number 26414 824699 Ong: 376AMODD R 623,497.000
Dalw 630.2019
B. Qraundwda Use hdarmatfon for Tranderee (I sw» If apptia:able, In@bl Regular Pemdt (IRPjfRegutar P enn1(RP) No: P
rmpoead purpose of use: a Munblpel Uso a bdusbiai use a kdgatiml use
Do you intend to vrNukew this water? a Yea a No
if YES, ptema desail a what this wader wE be used for? __
At what mb? a gelbna per minute
Meter readhrgs (Note: readings must be taken wilt one week of submission of alo a den):
a Not Applicable (now*
ag Matter Serial Number Sae Paul Aton RndnF Dabs:
Meter Sorw Number. R Dada:
Pdoch addWonef sh" ffeeeded)
July 9, 2019
Hanson Materials
Description:
Water Lease 2019
Quote
CITY OF SCHERTZ
PUBLIC WORKS DEPT.
10 COMMERCIAL PLACE
SCHERTZ, TX 78154
PHONE # 619 -1822
FAX # 619 -1849
Description
#Acres Feet I
Unft Price
Total Price
WATER LEASE TRANSFER
200
$138.50
$27,700.00
EAA MANAGEMENT FEE`
200
$84.00
$16,800.00
CITY OF SCHERTZ ADM. FEE 15%
$3,671.25
$3,671.25
EAA TRANSFER FEE
$25.00
$25.00
Total Due 1 $46,196.25 J
Monthly Pavments
August 2019- Due upon execution of agreement
$12,049.07
8e tember 2019 - Due September 1, 2019
$12,409.06
October 2019 - Due October 1, 2019
$12,409.06
Novemeber 2019 - Due November 1, 2019
$12409.06
Contact. James A. Hooks, City of Schertz Public Works
Lease for -,nary 1, 2019 - December 31, 2019
r
Accept e /�.
Name"
Date - -- _ —