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

4. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

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

6. HAYS CALDWELL PUBLIC UTILITY AGENCY 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.

7. HAYS CALDWELL PUBLIC UTILITY AGENCY Timing & Phasing

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

10. HAYS CALDWELL PUBLIC UTILITY AGENCY Pop Quiz: Water Supply Sources 1. What are the 3 common sources of water supply for the Agency members? 2.What do they have in common? Water SourcesStatus

11. HAYS CALDWELL PUBLIC UTILITY AGENCY Pop Quiz: Water Supply Sources 1. What are the 3 common sources of water supply for the Agency members? 2.What do they have in common? Water SourcesStatus Edwards Aquifer (EAA) Barton Springs Edwards Aquifer (BSEACD) Canyon Lake Reservoir (GBRA)

12. HAYS CALDWELL PUBLIC UTILITY AGENCY Pop Quiz: Water Supply Sources 1. What are the 3 common sources of water supply for the Agency members? 2.What do they have in common? Water SourcesStatus Edwards Aquifer (EAA)Cap and Trade System (no new permits) Barton Springs Edwards Aquifer (BSEACD) Over permitted by 1,087 acre- feet per year Canyon Lake Reservoir (GBRA) Fully allocated – no new rights

13. HAYS CALDWELL PUBLIC UTILITY AGENCY 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!

14. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

15. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

16. HAYS CALDWELL PUBLIC UTILITY AGENCY Target Area

17. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

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

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

20. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

21. HAYS CALDWELL PUBLIC UTILITY AGENCY 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

22. HAYS CALDWELL PUBLIC UTILITY AGENCY 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?

23. HAYS CALDWELL PUBLIC UTILITY AGENCY Competition

24. HAYS CALDWELL PUBLIC UTILITY AGENCY 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.)

25. HAYS CALDWELL PUBLIC UTILITY AGENCY 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.

26. HAYS CALDWELL PUBLIC UTILITY AGENCY 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