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Hondo council approves $485,000 resolution to repair downtown water tank; staff defends reallocating water-rights funds
Summary
Council approved Resolution No. 451-25 to authorize repair work on a downtown ground storage tank and discussed reallocating funds originally proposed for water-rights purchases due to rising prices. Staff said repairs are urgent to avoid low water pressure during peak season.
The Hondo City Council on March 10 approved Resolution No. 451-25 to authorize work on a downtown ground storage tank and to use emergency purchasing authority to move forward with repairs and a change order for the rehabilitation project.
Mister Neri and other staff told the council the tank remains in service and that recent inspections and an engineering letter justify immediate repairs ahead of the spring and summer peak demand. Staff presented a timeline and recommended using emergency purchase authority available under state law to avoid service disruptions. The resolution draft referenced a figure of $485,000 in the draft paperwork discussed during the meeting.
Council members questioned how reallocating funds would affect the city’s water-rights strategy. Staff explained that the city had planned to use bond funds to buy water rights (staff referenced a $1.5 million allocation in prior bond planning) but that market prices for water rights have risen — staff reported rights cost about $8,500 per acre-foot earlier in the city’s history and about $11,000 per acre-foot now. Because of that volatility, staff recommended prioritizing fixed infrastructure repairs and leasing water as a short-term contingency rather than making large purchases at current high prices. "If we don't get this tank up and running by the peak season there could be low water pressure," the city attorney or presenting staff said, summarizing the urgency discussed by the city's engineer.
A council member moved to approve Resolution No. 451-25; the motion was seconded and approved by voice vote with no recorded opposition. Staff said staff will revisit water-rights purchasing in the next budget cycle and will continue to monitor market prices and potential longer-term projects such as desalination.
The resolution authorizes the city to proceed with repairs under the emergency procurement provision discussed on the record.
