May 6, 2025 – A state district judge in Austin today ruled that the San Antonio Metropolitan Health District must release details of a settlement it negotiated in secret with Lennar Corp.’s proposed wastewater operator for the controversial Guajolote Ranch development in northwest Bexar County.
The development would include 2,900 homes on about 1,100 acres west of Scenic Loop and Babcock roads, and release an average of 1 million gallons per day of treated sewage into the Helotes Creek watershed, which recharges up to 15% of the Edwards Aquifer.
Just last year, Metro Health, the city’s public health agency, was granted standing by the Texas Commission on Environmental Quality to contest a permit for the wastewater operator, Municipal Operations LLC, arguing it had statutory authority to prohibit potential pollution of San Antonio’s water supply. It was to have joined the Greater Edwards Aquifer Alliance (GEAA), the city of Grey Forest and landowner Ann Toepperwein in a contested-case hearing before the state on Feb. 18-20.
Instead, Metro Health quietly settled with Municipal Operations in December, without the knowledge of San Antonio Mayor Ron Nirenberg and city council, and it refused to make details public. Both GEAA and the San Antonio Express-News filed open records requests, and on March 21, the state attorney general’s office ruled for the settlement’s release.
The city let six days go by before Municipal Operations filed for the temporary restraining order on March 27 – with the attorney general’s office and, ironically, Metro Health as defendants. GEAA filed a plea for intervention in the case.
In a hearing today, 250th State District Court Judge Cory Liu denied the temporary restraining order. Had he ruled to sustain it, a trial on a permanent injunction would have taken place on Oct. 27 – well after the TCEQ is expected to rule on the permit, which likely would have rendered the issue moot.
Here’s a link to the full settlement agreement, which the court released shortly after the decision: Signed_Settlement_Agreement.pdf.
“While proponents argue that this agreement resolves outstanding disputes, we maintain that it sets a troubling precedent and fails to ensure accountability for public health, environmental protection and regulatory enforcement,” said Randy Neumann, chair of the steering committee of nonprofit Scenic Loop-Helotes Creek Alliance, a neighborhood group supporting and raising funds for the fight. “Our opposition has been rooted in the belief that transparency, fairness and proactive safeguards should be prioritized in any resolution. Unfortunately, this settlement does not meet those standards.” (See the alliance’s full statement and analysis of the settlement at the end of this release.)
“Furthermore,” he said, “placing a high-density development containing 3,000 houses on approximately 600 acres (of the total acreage) above a karst geology over the aquifers that provide water to millions of Central Texans is not only inadvisable but that the persons within Metro Health who agreed to settle this issue should be held accountable for placing the sanctity of our water supply at risk and for forfeiting the city’s right to standing in the contested-case hearing through either negligence, ignorance or both.”
“GEAA and our partners in this cause were gratified by the ruling that denied a motion from Municipal Operations LLC for a temporary restraining order to remain in effect until October 2025,” said Annalisa Peace, executive director of GEAA. “For GEAA and the city of Grey Forest to have access to this information is essential as we navigate our way through this contested-case process.”
Land application still would be bad
The contested-case hearing proceeded with Municipal Operations’ application to discharge effluent directly into Helotes Creek, which recharges the Trinity Glen Rose Aquifer, the primary water source for the immediate area. The creek also flows across the contributing zone leading to the recharge zone of the Edwards Aquifer.
However, during the hearing, an attorney for Municipal Operations said at various times that once the discharge permit is approved, the operator would file to “reuse” the effluent. Typically, that involves applying the effluent to the land’s surface. Approval of the discharge permit still would be required first.
Neumann said that land application of 1 million gallons per day of treated sewage would still degrade groundwater in the Trinity and Edwards Aquifers, as it would seep through the porous karst limestone formation and into the aquifers below, and likely still collect in Helotes Creek.
He pointed to a study by Southwest Research Institute, funded through the city of San Antonio’s own Edwards Aquifer Protection Plan, finding that any wastewater treatment type from residential development in the Helotes Creek watershed, including land application, would “significantly degrade the watershed and the quality of water recharging the Edwards Aquifer.”
Analysis of a longstanding Trinity Glen Rose Aquifer monitoring well just downstream of the Guajolote property has indicated dramatic rises in water levels after rainfall, indicating that what falls on the surface in the area is quickly transferred to groundwater, just as scientists say.
A study of a similar karst limestone formation in Canada – recounted in a presentation to Alamo Area Master Naturalists by geoscientist George Veni and mentioned prominently in an editorial by the Express-News editorial board – showed how contaminants from effluent applied to the surface of a farm reached area wells in a matter of days, killing seven people and making 2,300 others gravely ill.
Just two months ago, similar circumstances in Johnson County, Texas, led to groundwater contamination with so-called “forever chemicals” or PFAS, including livestock deaths and PFAS found in animal tissues.
Likewise, here, Neumann said, “Many people could get extremely sick from E. coli poisoning, and some of those could die. Others could suffer long-term effects from forever chemicals and pharmaceuticals that wouldn’t be removed in the wastewater treatment process. We’re not willing to risk that.”
And he noted there still would be an issue with stormwater runoff down Helotes Creek. Pesticides, herbicides, automotive waste, household chemicals, pet waste, lawn waste and other pollution that would wash down the creek from the upgradient development would add to well pollution, flooding and the ruination of recreational spaces.
TCEQ’s abysmal monitoring, enforcement
Any agreement for monitoring in the settlement would be suspect at best, based on TCEQ’s abysmal record of monitoring for and enforcing wastewater permit effluent exceedances.
During the pandemic, the Save Barton Creek Association accessed publicly available data from the TCEQ to study just how well the 48 Texas Hill Country municipal sewer plants that discharge to streams, creeks and rivers were doing.
They found that 81% had exceeded at least one pollutant limit since 2017. The average number of exceedances over all the plants was 8.6 – and the plants averaged 188 days with exceedances.
And yet, of seven plants with 500 or more days of exceedances, only four received formal enforcement action and monetary penalties. Of 15 with 50-500 days of exceedances, only six were sanctioned; and of 16 with 1-50 days of exceedances, just one was sanctioned. Just nine plants had no effluent exceedances, though two of those faced sanctions. One other plant received a formal action, but no penalty.
In May 2024, and despite threats to sue the central Texas city of Liberty Hill to come into compliance with permit limits after five years of exceedances, TCEQ actually doubled the city’s daily allowed discharge to a local river, but set phosphorus limits its mayor said would be impossible to achieve.
Below is a link to the settlement the San Antonio Metropolitan Health District negotiated in secret with Municipal Operations LLC, the proposed wastewater treatment operator for Florida-based Lennar Corp.’s proposed controversial development Guajolote Ranch in northwest Bexar County — all without the knowledge of the San Antonio mayor and city council. A state district court in Austin ruled for its release yesterday.
Statement and analysis of the settlement agreement
Scenic Loop-Helotes Creek Alliance expresses deep concern over the just-disclosed settlement agreement between the San Antonio Metropolitan Health District and Municipal Operations. From the outset, we have opposed this agreement, believing it does not serve the best interests of local residents who depend upon Trinity Aquifer well water as well as 1.7 million Texans in 13 counties who depend upon water drawn from the Edwards Aquifer.
The previously “confidential” agreement, deemed public by the Texas Attorney General and now made public by an Austin judge, includes provisions that:
· SA Metro Health will drop its contested case hearing against Municipal Operations, with prejudice, effectively ending all legal efforts to challenge the case.
· Municipal Operations will hire a Class A wastewater plant operator only after the permit is issued, rather than beforehand, raising concerns about oversight and operational readiness.
· Sewer effluent will be cleaned to a higher standard (Type 1) for reuse and applied to the common areas in the proposed subdivision, a measure that requires careful monitoring to ensure compliance and environmental safety. Type 1 sewer effluent is cleaned to a higher standard for human contact according to 30 TAC, Chapter 210, which raises the concern that sewer effluent the developers previously planned to dump into Helotes Creek and which the TCEQ said was safe for recreational use may not have been safe at all.
· The subdivision will comply with all cross-connection regulations, which are essential for protecting water quality and preventing contamination risks. This is City Code and not a concession.
Four inches of soil will be added to the common areas to filter the reused water, a step intended to enhance environmental protection but requiring ongoing oversight to ensure effectiveness. (see attached Job Description.) The addition of soil levels acceptable to SAWS was a condition for the developer to receive city water should they pivot to a Texas Land Application Permit or Beneficial Reuse. In this Agreement they have chosen four inches of soil. We believe that the mere addition of a scant four inches of soil over karst geography overlying two aquifers (Trinity and Edwards) is cause for extreme caution. The Texas Commission on Environmental quality, on its website says the following about the area:
“The Edwards Aquifer is a home to diverse fauna and is a drinking water source for the city of San Antonio and surrounding central Texas communities. Because it is a karst aquifer, fractures, caves, sinking streams, and sinkholes act as conduits to the aquifer from the surface. While this means that the aquifer recharges quickly after a rain event, it also means that any surface pollution from stormwater runoff or spills will directly impact the water quality of the aquifer, possibly impairing drinking water and affecting the sensitive ecosystem.”
The presence of caves, solution cavities, sinkholes and other karst features render beneficial reuse a flaccid response to responsible wastewater management. The plain truth is that the environmental sensitivity of the area renders the land unsuitable for high density development placing the drinking water sources of millions of Texans at risk.
Even IF the beneficial reuse scheme would solve the wastewater issues of this proposed development, the stormwater runoff from impervious cover associated with roadways, rooves, sidewalks, driveways, patios as well as land and natural feature disturbances will generate enormous amounts of stormwater runoff carrying with it herbicides, fertilizers, insecticides, pet waste, automotive waste and a host of household chemicals all of which will wash down Helotes and Chiminea creeks to the Edwards Aquifer Recharge Zone, degrading the water recharging the aquifer. This is simply not a practical location for a housing development if one is concerned about the water supply of San Antonio and the 12 other counties that rely on the Edwards Aquifer.
· Municipal Operations will monitor the wastewater plant and lift stations via monitoring systems, which is a necessary safeguard but requires transparency and accountability to ensure proper function and responsiveness. This is also the first time we have been apprised of the presence of lift stations on the property. One of the key reasons connection to city sewer was not considered was the need for lift stations which even SAWS conceded are troublesome and unreliable, especially above a karst geography.
· A 24-hour answering service will be maintained, ensuring that residents and stakeholders have a point of contact for emergencies or concerns, though the effectiveness of this service will depend on timely and adequate responses. Obviously, Municipal Operations did not intend to provide this service when they were contemplating dumping one million gallons of sewer effluent treated to a lesser standard down Helotes Creek.
· Field vehicles will be supplied for transportation, which is intended to support operational efficiency but requires proper management to ensure accessibility and effectiveness.
· Municipal Operations will provide a one-hour response time to emergencies, a commitment that must be upheld consistently to ensure public safety and operational reliability. Again, not proposed when Municipal Operations was planning to send a million gallons per day of sewer effluent, treated to a lesser standard down Helotes Creek.
· Municipal Operations will construct wet wells to manage the 60-minute peak flow of reuse water, a necessary infrastructure improvement that must be properly maintained to prevent system failures and ensure efficiency. We question that this is even allowed by the TCEQ as no “ponds” were allowed on the property under the previous permit scheme.
· Municipal Operations will provide emergency contact information to SA Metro Health and SAWS, ensuring that key regulatory agencies have direct access to critical personnel in case of urgent situations. This is a major issue regarding this permit that was NOT addressed by Municipal Operation, specifically, how were well owners in the immediate vicinity of the treatment plant and release area to be notified in the event that an ”accidental” release of toxic material was to occur. There was no mechanism. This desperate attempt to remove a hurdle to their project may have satisfied the Director of San Antonio Metropolitan Health but is signifies bad faith on the part of Municipal Operations and the local residents who rely upon well water.
While proponents argue that this agreement resolves outstanding disputes, we maintain that it sets a troubling precedent and fails to ensure accountability for public health, environmental protection, and regulatory enforcement. The decision to drop the contested case hearing removes an important avenue for scrutiny, and the delayed hiring of a qualified wastewater operator raises fundamental questions about compliance and operational integrity.
Additionally, while commitments to treating sewer effluent to a higher standard, ensuring cross-connection compliance, adding soil for filtration, implementing monitoring systems, maintaining a 24-hour answering service, supplying field vehicles, guaranteeing a one-hour emergency response time, constructing wet wells for peak flow management, and providing emergency contact information to regulatory agencies are positive steps, these measures demand rigorous oversight and transparency to prevent unintended consequences. When the focus became dumping the sewer effluent upon their own property more rigorous measures were proposed but when dumping the effluent down Helotes Creek, potentially negatively impacting the health, safety and welfare of millions of Texans, these measures were not considered.
Our opposition has been rooted in the belief that transparency, fairness and proactive safeguards should be prioritized in any resolution. Unfortunately, this settlement does not meet those standards. Furthermore, we believe the foregoing underscores the reality that placing a high-density development containing three thousand houses on approximately 600 acres above a karst geology over the aquifers that provide water to millions of Central Texans is not only inadvisable but that the persons within San Antonio Metropolitan Health Department who agreed to settle this issue should be held accountable for placing the sanctity of our water supply at risk and for forfeiting the city’s right to standing in the Contested Case Hearing through either negligence, ignorance, or both.
We urge regulatory authorities, our state legislators, the governor of Texas, county judges and commissioners, mayors and city councils, stakeholders, and the citizens and Bexar, Kendall, Comal, Kerr, Medina, Uvalde, Atascosa, Caldwell, Guadalupe, Hays, Travis, Williamson and Blanco counties who depend upon the purity of the Trinity and Edwards Aquifers to scrutinize the details of this agreement and consider its long-term implications. The Scenic Loop-Helotes Creek Alliance remains committed to advocating for transparency, stronger oversight responsible environmental management and fair regulatory practices and will continue to push for solutions that truly serve the interests of Texans who rely upon the Trinity and Edwards Aquifers as their primary water source.
The United Nations considers access to clean, pure water to be a basic human right. So should we.
The Scenic Loop – Helotes Creek Alliance represents the largest neighborhood by square mile recognized by the San Antonio Neighborhood & Housing Services Department, a wide corridor along Scenic Loop Road from Bandera Road to north of Babcock Road.
CONTACT:
Scenic Loop – Helotes Creek Alliance
Randy Neumann, 210-867-2826, uhit@aol.com
Stuart Birnbaum, 210-355-9974, stuart.birnbaum@sbcglobal.net
Michael Wm. Schick, 571-296-9601, mschick@aol.com
Lynette Munson (daughter of Ann Toepperwein, with property abutting Guajolote Ranch), 210-317-8415, aniton2000@aol.com
Steve Lee, 210-415-2402, slee_78023@yahoo.com
Grey Forest
Mayor Paul Garro, 210-710-0742, mayor@greyforest-tx.gov
Councilman Michael Phillips, 301-910-9235, mphillips@greyforest-tx.gov
OTHER RECENT PRESS RELEASES:
3/24 — Legislative resolution urges TCEQ to take ‘immediate and decisive action’ to protect the Edwards Aquifer from development: https://www.scenicloop.org/legislative-resolution-to-protect-the-edwards-aquifer-from-development/
3/14 — TCEQ’s Office of Public Interest Counsel recommends denying a permit for Guajolote Ranch: https://www.scenicloop.org/OPIC-Recommends-Denying-Guajolote-Permit/
2/2 — Million Gallon March draws about 300, Nirenberg urges residents to fight on: https://www.scenicloop.org/post/1483/million-gallon-march/