19-R-169 - Agreement with Hanson Aggregates LLC for the Lease of 25 acre/feet of Edwards Aquifer permitted waterRESOLUTION NO. 19 -R -169
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 25 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, the City has leased Hanson Aggregates 200 acre/ ft earlier this year; and
WHEREAS, Hanson Aggregates has requested from the City of Schertz to lease an
additional 25 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 25 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any provision of this Resolution are hereby repealed to the extent of such conflict, and the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.
s
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 10th day of December, 2019.
CITY OF SCHERTZ, TEXAS
ATTEST:
W
Ciiy'Secretary, Brenda Dennis
50506221.1 - 2 -
Die. 0000khor 4, 2010
d;4s ,i /2
Henson Aggmgatn
CITY OF SCHERTZ
PUBLIC WORKS DEPT.
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MAIR OF GROUND WATER
(Begun big Deaunberl, 2019),
This Lease of Ground Water rLassel is entered into to be d&o ive December 1, 2019, between City of
gchertz, a Timms mumieipal corpora ion C emr") and Hmsoa Agg gpft LLC (the gAssbel Subject to
tha adjw tmmt sd act in pawmph 4 below, I weer hereby lessee to Lessee 2S acre-feet of water (the
"Water 7 for one your ae ad ant in elm Tom, ea defamed below, on the foihawing teems and
conditions:
1. jqj& The tams of this Lease shell comment Daxmber 1, 2019 and aontinna thmnglt
Dooember 31, 2019.
2. ZMMMI. Lessee shall pay to Laser the sum of S10 635.00 commencing at time of EAA
AppwM (the "Lease Paymean for the Tam per the invoice, attachad hereto as hl><hi>>it °C" and fully
inompaated berem (aw °favohod")
3. Wafer RWO Adivammt In the owed any applicable laws. regulations err 9--n dal
autim provide dice Leaser m9y sot leas to Lessee all of tiro water Rights pmauaat to this Lease, the emaw
of *e water Rights lcandby Leaser W Learoe a"wbuess4cetly adjust to reduce the water Rob to t?sa
un uchnnm amount which can be so leased.
4, LAsse Pgmaot Adjustatus. The Lease Payment is based upon 25 acre -fad of water
SAY permitted by &a MhoutIa Aquifer Amy (the "8AA'j to lssor and leased to Lea= If the
Water Rights lessed to Lmm are decreased doing the Term, the Lease Payment during Ste rum Ball be
decreased propottimmuly to t1m decrease is Water Rights.
S. @ The I esaor has paid or sha0 pay aquifer tawagemmt fees to the EAA for the
Water Riglr s. Lessee shun bevy ft rigid mparsne. to lnidate, and toprosecute my proceedings relating to
the WatarRights mud, at its elation, as may be necessary for the protection of ft Watt Rights, iaabrding
but not ahoited to () contesting the validity or amount of fees assessed to or levied upon the WaWRWds
QQ Inotedhis dd&Mb& erdlerlresuvieg the rightsio withdraw waterfiam the EdwatdsAgmfar. Lessor
shall cooperate with Lasso's effort in cone tiou therewith Lessor 60 not take my action or omit to
tam any actions whichwill advdsdyaffedtheWatetRighte Unegtdtal bylaw, Lessee may takeany such
action in the neme of Leeeor. In no event shall Leaece be required b take any such action with teapot to
the Water Rigbtr on behalf of Lewes in connection with each actions, and Lessee Ad a no event be
deetned bobs the agent of Leaser or as baviag any duty or responsibility to Lessur ores ant on bahaHof
Lesonr. Tothoar0mti�eesmelatsmactinamoxd�mwdtheheWetaRigMemaeaotdeacewiththeabovr;
Lessor appoints Lowe a as Iaaeor's aMaraey -ire -fact to take such action. The Lessor pays all fen to Edwards
AqufferAudutymdthaefararerehnb rwdtothe1. eaaorbydwLessee .lfFdwatdsAquifarAutbodty
increases fie fee, So lease payment and 15% Aftioistrallon Fee will be aataanadieally adjusted for an&
6 From the date of Ibis Lees% Lessor shall not take my actions (or
omit to take any adtiona) which will beam or diminiah the Water Rights. In We regard, Leaser agrees that
it has leased the Water Rights b Leases, and Lessor shell adttmsI (by operadon oflaw or otherwise) (i)
my portion of the water Rights (unless such transfer is mrpaoasly int alt to this Isaac) or (i) aw other
portionaff locasedsuehl 6 wouldtedaoedwWaRwRigbtsleewdtolmmpamwd tothisLeasa
Fortheterm oftlotsLnae, Lessoragteea dud it winuhliae for its amwe onlythatamacmt of gioundwerer
which is equal to the amount of sae -feet of Edwauda Agaifur water pemtitted under Lasaar'e Proposed
Initial Regalar Femdt with ft EAA leas () tin: mount of acre fed of Edwards Aquifer water pertaining
to tha water Rights leased. he etmder. and Q the amount ofso a -fat of Edwards Aquifer water pertaining
to the vamainderof fie water lessed to other third patdae. A 6er o4the waur ehan not be ptohbited,
ifthe uasefcree mquesalyassucuts all of ft obligations and conditions of this Lassa
7. Quid I hmebyweranta and represents to Lnsae that it has good tAle m
thewater,induit gfbo WataRtghtskssedtoLess eebermoder aodhuebyoovmanmmpmvidetoLesom
quick egjoyment, with= resuicticm or limitation, of the WdurRigbb daring the fall tam ofthis L ov.
S. gMLAvIE&. Leaaor assign to Lessee all hntcreat of Lessor in and to any
condemnation awards or hteorance proceeds whiff would otheewiae be payable to Imw relstiag m the
Water Riplft
9. Lessor will use ire beat afform, tales such actors and execute and deliver
such documents as I.aaee ddamires necessary to tally vest Lessoo with the Water RWO and make
effect[" all of the tomes of phis Lease.
10 Asmusbilb G The Lessee shall have the right to snbleaae or assign this Lease upon the
wsittco consent of Laser, whiahommint shall not be msessonably withheld.
7x7131211
11. Nod Any motion to be given hmeender sba4 be given (i) bypladeg the natice in the
Uaited.$Wes mail. certified or re&m4 properly starnped and addnased to the address shown below or
soeh other addresses art the respective Party may direct In writing to the other, (ti) by overnight dd y
service, or CHI) by personal delivery to such address Notice shell be deemed dkWve upon so& Placing in
tbemails, onthenanbuseeesdayfollawingdalivayaodacceptaeoefornuatdaydeliveryby my overnight
delivery servioe, or open actual delivery ifby peaaosel dcH—T.
City ofS dexter
1400 S hndapadcway
Sdwb6 Texas 78154
Attention CLyMsamger
Laesoe: Hanson Aggregates I.LC
300 B. John CatpentmFreeway, Hoke 1645
living, Teems 75602
Atteatim: La%Matual t , Regional Di edw
copy toe shale Zad<
Denton Navzm Roche Bernal Hyde do TEA P.C.
2517 N. Msia Ave
San Antonio, Tames 78212
11 If for acy r®soo iamat kdo to comply with say of the paovie ens of this Lease.
Lessee, at its eladico, may exercise all rights which may be available to R at law or in agdW, ire lading
tamminalron of this Lease, with a refend to Lessee of all Lases Payments far the portion of the Lease You
amreodaed by Lets& If Lence fails to comply with axy provision ofthie LOOM I edeos =W. as its solo
and exch aive a madly, terminate this Isaac andrxe[ve the LeaaPayme sts which art die andpn2ble and
have seamed thrmgh that date.
13. erg . The fa0ora an the pat of Lessee to regime the pmferuxuand by Lamm of any
portion of ihis Free &M not be deemed a waive a& or in any way affect the 1 rxme -8 rights to eafeaea
arch provision. Any welver by Lena of any provision of this Lease stall not be a waiver of any other
provision haeo(
14. $ ] The invalidity or dmeadmcabiHq' ofany provision ofthts Lam shall not of a t
the validity at aofceomhHrty ofa W other provision of this Lana
15. GaImmine Mns Lem shall be governed by the laws afthe Stan afTe <agmdvenue
aball He in Qondahrpe Convey, Tears.
16. Byg1jQjjgagl. This Lease shall be binding upon and bum to the benefit of (ba parties
and their respective mooemors and awigoa.
17. fir. Each of the persons sigoigg this Lease on behalf of Le uw and Lessee bushy
oonfimm thattheyhavethean4hority io eaacWe this Lease oubel"afthepartyindicated bythe r signat re
andhavetheasahe ymbindsochpartytbraelo.
18. $ . Baoept as act ton haaiq all sgreamcats end rdrptescotattiom in On Lase shall
survive the and of the Tam.
19. Fam Md If Lewes is denied its use of the Water Rights by eeeson of any laws,
tegandoos, or govesmneoml action or other no ontdde of the cmad ofLa M Lease shell beexcused
firm its obligations h waonderforso ling as thesecireumatsooes exist, and tasurshall rafood en alloeahic
portion of the Lesse Papmeat.
20. Further Lessor and Leeace aball tale all Sndacr actions mod shall execute and
deliverto the othcramyadw document or inehome »t which is ddemdudto bemoe=yaresefid to fiotTy
carry ant the trammtioes evidenced by this Iraq lmindieg enyamendmcula to the penah(a) 10.1821M to
the water leas aertted out In taonfimoeme with epplixahe PAA regulations. h►addW= Lesser agrees to
am®dthis Lase as n qudod by Imm in any mummer moasery to cause this I veer to be incompliance
with BAA Regulations, RAA Trm ft Progeaen RvIM and the HAA Filing and Reaarding Ragratem
for 1 Cmtrmu, %dodmg but not litre to the findsar completion of Appbmdon to Tienatra —
Lrase( the °ApplicaE n"),wMdxAppliaNam isattschedto this Low as Bxhilsr W and fixRy iamaparded
herein. Lessee shall have the anihority to Ste a copy of this Lease in accordance with EAA Reg"osa,
BA ATlra nsk? xpgeaom Ratak sadtheRAA Filing and ReawrdimgRequitamat a for TtoafaCoattraas,as
wall a reoa I a Memorandrmm of Lease inthe public record to rtdieot ks intmat a deist out wader the te®a
5otlrars
of this Lanes, Lmmagma to mmum ablummmubm afLcme in subs Untlaflythe name f= waftdbod
hereto as Wdbil "B"&ad fidlyinmqmmwd hercia.
21. Eplin This Lmw conW= allapwmaM batw=Vmpmtmh=vbc4 mdmw
swcomma not hum shall mot be ncopmd by the parties. All amcmadmeaft must be mwnbq
W dpad by bolb PntwL 7be captim used hwft we fiw conveniamm only and dwU M be used to
cmsum
thin lAaw Ww& of podar 69 be costrued to befedo my other scaults; and words in the
migular mmgwdmU m*& the plural and vim van anima the cowmect rcqww odwwia
Womb— afffW%Wftpflw4
Fl-liflip;
BF.
Names Mark Browse
Na' City Nanagar
STA7BOF7V(AS
COUNTY OP GUADALUPE
Mib imftmad was aomawl*W bdm mo an the _ day of 2019, by Mwk
Bmwna, city mamg ff oftle City ofSchmu on behalf ofthe City.
Natery pobllc, States of Texsa
LPSSE6:
HANSON 4REGATES, L C 4a
evN
STATE OF TEXAS ,
COON Y 02+
Ibis uatumol was ackwwlcdppad be6are we on &a day of _ , 2A19, by
R a /°ambehalfof8msoviAggceptaLLC.
rq,
. � Notary PaW State ofTems
21121
G r
'"'��� F�esntrguste.
SM3121.2
RXBIoff "B"
Form of Memorandum of Lean
M6MORANDUMOF IALM
Ilds Mcwmandam of Lease is made and eNaed into effooti m December 1. 2019, between the Lily of
Scharz, a Terns -umcgW capomtoo (as' Les000 and Hanson Aggregates LLC (aa'2esaoe"j.
WrMESSETH:
Laswr and I== have, offactive rho date set art above, mixed into aloes of 0mund Wata
( the "Lease') of water from Lamm to Lessee, inelndisg, subjed to the tams ofthe Least, 200 ameded
of w&wdesribed below (tha "Water Righter') an the tbllowingtamu and conditions:
1. The rights to and for the ground water which re!Muss to the bfimnzdm described co Exhibit A"
attached bent%incWding the rigbtto withdrew and rorbene5ciallyweIn Weteritightspermitted
or applied fvr: amd all sppurteaanmv6 pantile, authmi o% license. conswfs and comracts. ifany,
pataimngto all sock tights. Tba lease of rte Water Rights shall alm wWcsaly mdude all Edwards
Aquifer Anthmity CTAA") pa= rights (mcludmg rights and- application), atl 1111 1 3m and
tegdorgamit s, mdaltmodificatiom ,ammdmen%romwala,om mmsor eu commoraablum
pampa relctiag thereto 13ermitdng to the Water Rights, and Al Wpmtmences and pemtits,
authorities, limam cmamm and camttacts, N any, :elated to or Pertaining to the Water Ri&%
which Lmee ahm arm out oatain rights and obligaticm ofLessm aM Lessee
2. The Laaso am forth the memo and addresses of Lcsmr and T.mm
3. The term ofthe Lease will cod on December 31, 2019.
4. Under the tame of the Leam, Leaaor has agreed to lase the Water Rights to Lessee, and Lessee
has agreed to rases the Water Rights from lAmw in soamdaoce with the tams ofthe Lnae.
S. This Memoamdemr of] as is iwmdod toad only ae the ndim ofthe aristmm of the Lasse and
its general te®s. To the mums the te®s of this Mcmotsadam of me conflict with the terms of
ebe Lawn, the terms of the Lose sball cadmi.
(Signabues of follow6lg pages]
=33212
Mb,biLD-1
LESSOR:
CITY OF SCHERTL
By.
Nam= Meek Mwam
Ha:Chymmn w
STATE OF TEXAS
COUNTY OF GUADALUPE
ibis ioehmmeot vas eckaowWsW before me ca the _ day of _ 2019, by Maek
Browne, city]vTmnw ofthe City ofSchou oabd:elfafthe (Sty.
Notary Pabllo, Stale of Tams
LRSSES:
HANSOPi � '� GRFGATFB p
y _
Itr
STATB OF TEXAS 1
COUNTY OF
This me an titre.— 1 day of , t 2019, by
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