HAYS CALDWELL PUBLIC UTILITY AGENCY ENSURING WATER FOR COMMUNITIES AND OUR ECONOMIC FUTURE

1. HAYS CALDWELL PUBLIC UTILITY AGENCY ENSURING WATER FOR COMMUNITIES AND OUR ECONOMIC FUTURE HAYS COUNTY HOMEBUILDERS ASSOCIATION Graham Moore, P.E. March 27, 2013 HAYS CALDWELL PUBLIC UTILITY AGENCY

2. Will there be water for new homes? - How? - From Whom?

3. You already know we’re growing ... Source: Texas State Data Center, 2012 presentation, based on U.S. Census, 2000 and 2010 HAYS CALDWELL PUBLIC UTILITY AGENCY

4. Not just as a state -- but especially in the I-35 region Hays is among state’s fastest growing counties Source: Adapted from Texas State Data Center presentation, autumn, 2012 HAYS CALDWELL PUBLIC UTILITY AGENCY

5. Various scenarios, but all show growth by leaps and bounds...

6. What happens when the people get here? • No longer enough to just hope for the best. Or even to plan for today. • HCPUA members began planning yesterday for water needs of tomorrow – and the long-term future. HAYS CALDWELL PUBLIC UTILITY AGENCY

7. Timing & Phasing HAYS CALDWELL PUBLIC UTILITY AGENCY

8. Hays Caldwell Public Utility Agency • Governmental Entity authorized under Chapter 572 of the Local Government Code. • Formed in January 2007 • Objective is to supplement current water supplies by adding groundwater supplies from the Carrizo-Wilcox aquifer to meet the future water demands of the Participants. • Board of Directors – 13 members • Executive Committee – 7 members

9. Agency Members • San Marcos • Kyle • Buda • Canyon Regional Water Authority • County Line SUD • Crystal Clear WSC • Martindale WSC • Maxwell WSC HAYS CALDWELL PUBLIC UTILITY AGENCY

10. Pop Quiz: Water Supply Sources • What are the 3 common sources of water supply for the Agency members? 2. What do they have in common? HAYS CALDWELL PUBLIC UTILITY AGENCY

11. Pop Quiz: Water Supply Sources • What are the 3 common sources of water supply for the Agency members? 2. What do they have in common? HAYS CALDWELL PUBLIC UTILITY AGENCY

12. Pop Quiz: Water Supply Sources • What are the 3 common sources of water supply for the Agency members? 2. What do they have in common? HAYS CALDWELL PUBLIC UTILITY AGENCY

13. Water Law • Rights in-situ vs. • Rule of Capture • Texas Supreme Court: EAA vs. Day – true outcome is yet to be determined There’s eastern water law, there’s western water law and then there’s Texas water law! HAYS CALDWELL PUBLIC UTILITY AGENCY

14. State Water Planning Basics REGIONAL WATER PLANNING (RWPGs) • SB-1 in 1997 established Statewide Water Planning • Divided into 16 areas based on river basins • Bottom Up process • Update plans every 5 years, resulting in a statewide plan • PUA Sponsors are mostly in Region L, with a portion of Buda in Region K HAYS CALDWELL PUBLIC UTILITY AGENCY

15. HCPUA Project History • Members independently began looking for alternative supplies in 2002 • Joint long-term water supply study concluded in March 2005 • Identified development of a groundwater project in Carrizo-Wilcox aquifer for ultimate 50-year supply • Four Corners area of Bastrop, Fayette, Gonzales & Caldwell • Best target for quality, production & proximity • Participants share existing supplies to meet interim shortages • Hays Caldwell PUA created in January 2007 HAYS CALDWELL PUBLIC UTILITY AGENCY

16. Target Area HAYS CALDWELL PUBLIC UTILITY AGENCY

17. HCPUA Leasing • Water rights are managed by Gonzales District – 1 ac-ft/year per surface acre • Leased 17,000 acres in Caldwell & Gonzales counties • 2-1/2 year process • Acreage split by two groundwater districts HAYS CALDWELL PUBLIC UTILITY AGENCY

18. Required Infrastructure $109 Million for Phase I (Today’s Prices) • Well Field in Caldwell and/or Gonzales Counties • Treatment Plant at the well field • Dual transmission mains (40-miles) • Intermediate Booster Station & Storage HAYS CALDWELL PUBLIC UTILITY AGENCY

19. Big News Sets Stage for Future HAYS CALDWELL PUBLIC UTILITY AGENCY

20. What the Permit Does • Permit for 10,300 acre-feet per year to Gonzales District in March 2010 • Applied for 15 wells • Application declared administratively complete in December 2010 • Concluded contested case hearings in May 2012 • Permit hearing was November 13, 2012 HAYS CALDWELL PUBLIC UTILITY AGENCY

21. Groundwater District Rules • Sets spacing requirements between wells based on capacity • Defines maximum allowable drawdown within the well field • Production permits issued on 5-year terms • Transportation permits issued on 30-year term HAYS CALDWELL PUBLIC UTILITY AGENCY

22. What This Means Down The Line • How much water does the permit translate into -- in homes that can be constructed? • What will water cost? • What alternatives are out there? HAYS CALDWELL PUBLIC UTILITY AGENCY

23. Competition HAYS CALDWELL PUBLIC UTILITY AGENCY

24. Agency Budget • Fiscal year runs October 1st – September 30th • Costs split based on 2060 Demand • San Marcos: 35.86% • Kyle: 28.17% • Buda: 5.08% • CRWA: 30.89% • Thru 9/30/12 projected to spend $7.4 million to date • 68% on Leasing & Landowner Payments • 10% on Staff & Engineering • 12% on Legal Counsel & Special Counsel • 10% on other (Hydrogeologist, Lobbyist, Audit, etc.) HAYS CALDWELL PUBLIC UTILITY AGENCY

25. Groundwater Planning Desired Future Conditions (DFCs) • Desired, quantified conditions of an aquifer at some time in the future (i.e. 100-feet of drawdown in 50 years) Groundwater Availability Model (GAMs) • Hydrogeological computer models developed to simulate aquifers, stream flows, springs, etc. Managed Available Groundwater (MAGs) • Outcome of the process. Tells Groundwater Districts how much groundwater is available for permitting. HAYS CALDWELL PUBLIC UTILITY AGENCY

26. QUESTIONS? HCPUA.ORG Graham Moore, P.E. Office Manager 400 W. Hopkins, Suite 203 San Marcos, TX (512) 396-4040 Ext. 5162 gmmoore@lan-inc.com HAYS CALDWELL PUBLIC UTILITY AGENCY