Edwards Water Rights Reverse Auction
(4/16/03)
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Bid No. 03-3026
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Reverse Auction
Quick Links |
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| San Antonio Water System will be buying water rights from interested EAA permit holders through a reverse auction. SAWS invites all Edwards permit holders to join in the bidding to sell water rights through this auction.
WHEN?
The AUCTION will be held on April 22, 2003, 7 AM to 8 PM at your nearest computer with an Internet connection.
Bids may also be submitted by fax at 210 576-0760.
WHERE?
Information demonstrations will be held on April 10 at:
- Hondo Community Center from 9 AM to11 AM
- Uvalde Texas A&M Research and Extension Center from 2 PM to 4 PM
HOW?
Orbis Online Inc., an auction house, will assist the online bidding.
Additional details are available at the Orbis auction site: www.orbisonline.com/saws or by calling 210 477-9069.
One-on-one demonstrations are available.
Frequently Asked Questions and Answers
What is a "Reverse Auction"?
A reverse auction is a means of collecting bids for the procurement of products and services. Instead of going through the traditional sealed bid process it allows the buyer (SAWS) to define the product they want (in this case acre-feet of Edwards groundwater) and then receive bids online from pre-approved bidders for the best price and terms in the market. The transparency of reverse auctions enables the bidder (seller) to place competing bids, creating an online competitive bidding event that ultimately results in the true market price.
The auction takes place in real-time (live) via the Internet. Instead of the bidder (seller) making a "best guess" bid as in the sealed bid process, bidders can reevaluate and adjust a bid in response to other bidders' offerings during the auction. They will know what price others are bidding but they will not know the identity of who has placed the bid nor the exact number of acre-feet.
Reverse auctions are totally web-based, and create an online version of the sealed bid process with the competitive edge of an auction.
What is the process for submitting a bid?
1. Getting started:
- You must register and get an I.D. number prior to the auction.
- Registration is free. To register, go online to www.orbisonline.com/saws or call the Orbis specialists, Robin Dwyer at 210 477-9069 or Gil Lozano at 210 477-9076, toll free at 1-877-580-8949. They are there to help you with registration.
- All bidders must register and get an I.D. number by close of business on April 21, 2003.
- Proxy bidders and online bidders both need an I.D. number.
2. Offering a bid:
There are two ways to bid. You can bid by PROXY or enter your own bid ON LINE via the Internet.
- PROXY: To bid by proxy you may FAX your bid by dialing 210 576-0760 or 210 477-9240 and your bid will be entered for you. You may change your bid by fax throughout the auction period.
- ONLINE: To bid online go to the Web site at www.orbisonline.com/saws and follow the instructions to enter your bid.
All electronic and faxed bids must be received by 7:55 p.m. April 22, 2003. The online bidder may change the bid during the auction period on April 22.
3. Help:
If you would like an online bidding demonstration you may phone Jimmy McLaughlin at 210 576-7600 or 210 477-9077 and he will be happy to assist you.
4. Auction day:
All bids must be received on April 22, 2003 between 7 a.m. and 7:55 p.m.
5. Really Important: The Proposal
Permit holders who submitted a bid proposal must fill out a Proposal sheet to complete the offer. This is the 1st page in your bid packet that states FORMAL INVITATION, BID at the top of the page.
The Proposal sheet must have:
- Permit number for the water right to be sold,
- The quantity of water rights to be sold, and
- The price per acre-foot requested.
- All owners of the water rights must sign the document with signature notarized by a Notary Public.
- Signed and notarized proposals are to be sealed in a single envelope and plainly marked "Proposal for Sale of Edwards Ground Water Rights."
- The Proposal must be returned to SAWS within 72 hours of the close of the auction. Send to:
Norene L Hutchinson
Edwards Groundwater Acquisitions
San Antonio Water System
PO Box 2449
San Antonio, TX 78298-2449
How much water can a permit owner sell to SAWS?
For irrigation permits the State statutes and EAA transfer rules allow that one half of the permitted amount of water must stay with the land, and one half may be transferred (through sale, lease, gift etc). The rule does not apply to owners of Municipal or Industrial permits.
What if the owner already leases the irrigated land?
The owner must attest that there are no commitments obligating the use of the water.
If the water rights are leased to SAWS they may be converted immediately to a sale to SAWS. Proration of lease payments will be adjusted at closing.
Can a tenant with a lease on irrigated land submit a proposal to sell water to SAWS?
No. Offers will only be accepted from water rights owners or their designated proxy holder.
Will a sale to SAWS affect any of the owner's rights to his/her real property?
No. SAWS has no right of access or any other right concerning the land itself.
What if a permit owner has a protest to the permit or has not received a permanent permit from EAA?
Each case will be considered on an individual basis. SAWS will assess the permit holder's situation and determine if a purchase is feasible.
What are the terms of payment for the water right?
The seller will be paid in full at the time of closing. The Seller will be responsible for a groundwater warranty deed guaranteeing clear title.
Does a sale of water rights to SAWS mean the land no longer can be irrigated?
No. One half of the permitted amount of ground water is owned by the permit holder and must stay with the land. Often irrigators find that one-acre foot per acre of land is sufficient to farm as usual, but the owner may acquire additional water rights by leasing them to accomplish production demands.
How does the purchase of groundwater rights fit into SAWS' long-range plans?
The SAWS has a Long Range Water Plan. The Plan acknowledges that the Edwards Aquifer is not sufficient to meet long-term demands for San Antonio, but it will continue to be a key component of a balanced, diversified water supply portfolio. SAWS policy is to balance its appetite for Edwards groundwater to meet immediate requirements of the system and provide an excess for short-term growth.
SAWS is currently pursuing a number of water supply sources through the Aquifer Storage and Recovery (ASR) project in south Bexar County, recycling and conservation as well as projects outside the EAA boundaries. Bringing new water resources into the region from non-Edwards sources is a key part of SAWS' long-range water acquisition policy.
Will SAWS hold another auction for water rights?
SAWS hopes to acquire enough permanent water rights with this effort. If we meet our goal we will not actively seek more Edwards water rights.
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