SUBJECT: Payment approval in the sum of $1,218,373.77 to the Harris-Galveston Subsidence District for the purchase of 29,916,100,000 gallons of groundwater over conversion credits.
RECOMMENDATION: It is recommended that City Council approve a Motion for payment of $1,218,373.77 to the Harris-Galveston Subsidence District for the purchase of 29,916,100,000 gallons of groundwater over conversion credits.
SPECIFIC EXPLANATION: The Harris-Galveston Subsidence District (the District) is a special purpose district created by the 64th Texas Legislature in 1975 to provide for the mitigation of subsidence through the regulation of groundwater withdrawals.
The District’s regulatory plan is divided into three areas, with the majority of Houston and its ETJ existing within Area II and Area III. Currently Area III requires that 30% of a groundwater permittee’s total water demand be from an alternative source of water, limiting groundwater withdrawals to 70%. In 2025 groundwater withdrawals must be limited to 60% of total water demand, and in 2035 groundwater withdrawals must be limited to 20% of total water demand. Permittees that violate this groundwater reduction requirement must pay disincentive fees.
Houston has consistently reduced groundwater usage by more than what is required by the District’s regulatory plan. As a result, Houston has the opportunity to purchase 29,916,100,000 gallons of groundwater over conversion credits for the 2011-2017 permit terms. These credits never expire and can be used to offset groundwater usage in excess of the District’s groundwater reduction requirements that would otherwise be subject to disincentive fees (disincentive fees are currently $9.24 per thousand gallons). These credits ensure that the city can withdraw groundwater supplies beyond regulatory limits, without penalty, when other surface water supplies are not available, such as in times of drought.
Houston Public Works is requesting that City Council approve a total payment of $1,218,373.77 to the Harris-Galveston Subsidence District for the purchase of 29,916,100,000 gallons of groundwater over conversion credits.
This matter was presented to the Transportation, Technology, and Infrastructure Committee on October 1, 2020.
FISCAL NOTE: Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Polices.
_______________________________
Carol Ellinger Haddock, P. E.
Director
Houston Public Works
ESTIMATED SPENDING AUTHORITY
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Department
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FY21
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Out-Years
|
Total Amount
|
|
Houston Public Works
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$1,218,373.77
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$0
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$1,218,373.77
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