SUBJECT
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Authorizing the City Manager to sign a water rights sales agreement, a copy of which is attached hereto as exhibit a, between the City of Laredo and E & S River Farm, Ltd., a Texas limited partnership, in which the City is agreeing to purchase the right to divert and use 400 acre feet per annum of class “a” irrigation water rights to the Rio Grande, which after conversion from irrigation rights to municipal use rights amounts to 200 acre feet of municipal use rights per annum at $3,200.00 per municipal use ac./ft., for a purchase price of $640,000.00; and further authorizing the City Manager to sign and file necessary application(s) with the Texas Commission on Environmental Quality on behalf of the City requesting that said water rights be severed from certificate of adjudication no. 23-599, of the seller and combined with certificate of adjudication no. 23-3997, as amended, of the City and that the point(s) of diversion, purpose and place of use of said water rights be changed as required by the City. Funding is available in the Water Availability Fund.
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PREVIOUS COUNCIL ACTION
None
BACKGROUND
The City is in need of additional water rights to the Rio Grande to meet the City’s water requirements. E&S River Farm, Ltd. has agreed to sell the City 400 acre feet per annum a portion of which may be used for agricultural and/or mining use purposes, and the remainder for agricultural use, having a Class “A” irrigation priority of allocation.
COMMITTEE RECOMMENDATION
None
STAFF RECOMMENDATION
recommendation
To approve Resolution.
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Fiscal Impact
Fiscal Year: FY 25
Budgeted Y/N?: Y
Source of Funds: Water Availability Fund
Account #: 557-4180-535-9102
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Cost of water rights will be $640,000.00 and will be charged to 557-4180-535-9102.