Relating to the San Antonio River Authority.

Contracts

• Franchise Agreements: Review all agreements for operations on navigable canals/waterways. Terms exceeding 50 years are now statutorily invalid. If your contract is silent on rate regulation, be advised that SARA now has the statutory right to regulate your fees and tolls.
• Wholesale Water: You cannot execute a wholesale water supply contract with SARA until a public notice has been published. Build a 3-week buffer into closing schedules to accommodate this statutory delay.
• Construction Bids: Contracts are awarded to the "lowest and best" bidder. If you are not the low bidder, you must provide documentation justifying why your bid offers superior value to survive a challenge.

Hiring/Training

• Accounting Staff: Finance teams for franchise holders must be trained to maintain "uniform and adequate analytic accounting systems." SARA has the right to demand these specific reports to justify your rates.
• Board Interaction: If your business interacts with SARA Directors, verify they have filed their required $5,000 bond and sworn statement. Acts by unbonded officers may be legally voidable.

Reporting & Record-Keeping

• Franchise Financials: Maintain segregated accounts for all river-derived revenue. This data will be your primary defense if SARA attempts to aggressively regulate your consumer rates.
• Pollution Control: If a "Pollution Control District" is established over your property, you must document compliance with specific discharge rules to avoid civil penalties.

Fees & Costs

• Ad Valorem Tax: The Authority is capped at 2 cents per $100 valuation, subject to voter approval.
• Ordinance Filing: Expect standard county recording fees for accessing new Authority ordinances.
• Litigation Risk: SARA is authorized to recover litigation costs in civil suits regarding rule violations.