§ 47-62. Groundwater reduction plan agreements.

(a)

The Harris-Galveston Subsidence District ("subsidence district") has established requirements for the reduction of groundwater production in Harris and Galveston counties. Groundwater producers within the subsidence district are required to formulate ground water reduction plans ("GRP") to reduce their production of groundwater as provided in their GRP in order to abate land subsidence. According to the district regulatory plan, two or more groundwater producers may enter into agreements to share costs and cooperate to reduce groundwater production and jointly produce a GRP to attain the percentage reduction of groundwater production required by the subsidence district ("GRP agreement"). The city has acquired sufficient surface water rights and constructed facilities for the treatment and transmission of surface water to become the manager of a GRP for itself and other groundwater producers ("GRP participants") such that they jointly comply with the subsidence district's regulatory plan.

(b)

The monthly charge for GRP participants not purchasing water from the city is:

R × P × Q, where

R is the base rate for contract treated water customers receiving water through an airgap.

P is the percentage reduction for groundwater production required for the GRP participant under the subsidence district regulatory plan, or the percentage required under the GRP agreement, whichever percentage is the greater.

Q is the quantity of groundwater produced by the GRP participant during the month.

(c)

GRP participants purchasing treated water from the city are subject to the minimum purchase requirements of their contracts. Standard treated water rates and rate classifications apply to GRP participants that purchase treated water from the city.

(d)

The city council has approved standard contract forms for wholesale and retail GRP agreements for groundwater producers in area three of the subsidence district. All other GRP agreements are subject to individual approval by the city council.

(e)

Each application for a GRP agreement shall include the nonrefundable processing fee stated for this provision in the city fee schedule.

(f)

The department shall provide application forms for GRP agreements and administer the GRP program on behalf of the city. Prior to transmittal of the GRP agreement to the mayor for signature, the department shall review the application to ensure that the GRP agreement is consistent with both the city's GRP and with the department's projection for future surface water availability and surface water demand. Money collected under the GRP agreements shall be considered gross revenue of the water and sewer utility system.

(Ord. No. 08-630, §§ 1, 6, 7-9-08, eff. 9-1-08; Ord. No. 2011-1168, § 13, 12-14-2011)