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R-10-08-12-9E10 - 8/12/2010RESOLUTION NO. R -10-08-12-9E10 WHEREAS, the City of Round Rock ("City") and the Brazos River Authority ("BRA") desire to resolve their dispute regarding competing interests in the use or reuse of groundwater based return flows from the Brushy Creek Regional Wastewater System; and WHEREAS, the City and BRA wish to enter into a Settlement Agreement in regard to the Application by BRA for Water Use Permit No. 5851, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City a Settlement Agreement with Brazos River Authority, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 12th day of August, 2010. ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA L. WHITE, City Secretary 0:\wdox\SCC1nts\0112\1005\MUNICIPAL\0o1994os.DOc/nnc SETTLEMENT AGREEMENT This Settlement Agreement is entered into by the City of Round Rock ("City") and the Brazos River Authority ("BRA"), collectively referred to as the "Parties," in order to establish a resolution regarding competing interests in the use or reuse of groundwater based return flows from the Brushy Creek Regional Wastewater System. WHEREAS, BRA has filed Application No. 5851 with the Texas Commission on Environmental Quality ("TCEQ“) seeking, among other things, the authorization to divert, appropriate and use current and future surface water based and groundwater based return flows, including the City's groundwater based return flows; WHEREAS, the draft permit prepared by TCEQ staff for Application No. 5851 incorrectly states that the owners of the Brushy Creek Regional Wastewater System are BRA and the Lower Colorado River Authority; WHEREAS, the City intends to file with TCEQ an application seeking, among other things, authorization to convey its groundwater based return flows through the watercourses of the Brazos River Basin for subsequent diversion and use; WHEREAS, the City has protested BRA's Application No. 5851 and BRA plans to protest the City's application and request a contested case hearing; WHEREAS, the City and BRA desire to resolve their disputes regarding the right to appropriate, divert and use or reuse the City's groundwater based return flows by agreement without the delay and expense of litigation; NOW, THEREFORE, based on the terms herein, which constitute good and valuable consideration, the Parties agree as follows: 1. BRA agrees that it will not divert or use the City's groundwater based return flows that are subject to a bed and banks authorization granted to the City by the TCEQ pursuant to Texas Water Code § 11.042(b). 2. BRA will refrain from protesting the City's future application, insofar as it seeks authorization to discharge, transport, divert and use the City's groundwater based return flows. 3. BRA will continue to take the position regarding Application No. 5851 that it does not seek to divert, appropriate or use return flows that are subject to a bed and banks authorization granted by the TCEQ pursuant to Texas Water Code § 11.042(b). 4. BRA agrees that it will use its best efforts to obtain modification of any draft permit that authorizes BRA to divert, appropriate or use return flows that are subject to a § 11.042(b) authorization. 5. BRA agrees that it will use its best efforts to obtain modification of any draft permit for Application No. 5851 to reflect that the Brushy Creek Regional Wastewater System is owned by the City, the City of Austin, and the City of Cedar Park. 1 of 2 EXHIBIT HA” SETTLEMENT AGREEMENT 6. The City agrees to withdraw its protest to BRA's Application No. 5851 and to limit its participation in the contested case proceeding to monitoring and seeking to ensure that the permit ultimately issued to BRA does not authorize BRA's diversion, appropriation or use of return flows that are subject to a § 11.042(b) authorization. 7. The City and BRA agree that no compensation is due either party under this Settlement Agreement and that each party shall bear its own costs in terms of complying with this Settlement Agreement. 8. This Settlement Agreement contains the entire agreement between the Parties and supersedes any and all prior agreements, arrangements or understandings between the Parties relative to the subject matter contained herein. No oral understandings, statements, promises, or inducements contrary to the terms of this Settlement Agreement exist. This Settlement Agreement cannot be changed or modified verbally, as any amendment or modification must be in writing and agreed to and executed by the Parties or their authorized representatives. 9. This Settlement Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors, and assigns. 10. By their signature below, the individuals signing represent and warrant that they have the full authority to bind and otherwise compromise the interests of the party they represent. CITY OF ROUND ROCK Date: By: Alan McGraw, Mayor APPROVED AS TO FORM: ATTEST: Stephan L. Sheets, City Attorney Sara White, City Secretary BRAZOS RIVER AUTHORITY Date: i �Lat02q, l t.1 By: Phil Ford, General Manager/CEO ATTEST: 2of2 ROUND ROCK, TEXAS PURPOSE. PASSION PROSPERITY City Council Agenda Summary Sheet Agenda Item No. 9E10. Consider a resolution authorizing the Mayor to execute a Settlement Agreement with BRA Agenda Caption: regarding its Application No. 5851 with TCEQ for a basin -wide permit. Meeting Date: August 12, 2010 Department: Infrastructure Development and Construction Management Staff Person making presentation: Michael D. Thane, P.E. Director of Infrastructure Management Item Summary: This Settlement Agreement establishes a resolution between the Brazos River Authority (BRA) and the City regarding competing interests in the use or reuse of the City's groundwater based return flows from the Brushy Creek Regional Wastewater System (BCRWWS). BRA filed Application No. 5851 with the Texas Commission on Environmental Quality (TCEQ) seeking the authorization to divert and use or reuse the City's groundwater based return flows. The City has protested BRA's application and plans to file a bed and banks application with the TCEQ for authorization to convey its groundwater based return flows for subsequent diversion and use. This agreement between the City and BRA sets forth the terms in which both parties are able to resolve their disputes without the delay and expense of litigation. Strategic Plan Relevance: Goal 28.0 "Protect public health and protect the environment through proper waste disposal." Cost: N/A Source of Funds: N/A Date of Public Hearing (if required): N/A Recommended Action: EXECUTED DOCUMENT FOLLOWS SETTLEMENT AGREEMENT This Settlement Agreement is entered into by the City of Round Rock ("City") and the Brazos River Authority ("BRA"), collectively referred to as the "Parties," in order to establish a resolution regarding competing interests in the use or reuse of groundwater based return flows from the Brushy Creek Regional Wastewater System. WHEREAS, BRA has filed Application No. 5851 with the Texas Commission on Environmental Quality ("TCEQ") seeking, among other things, the authorization to divert, appropriate and use current and future surface water based and groundwater based return flows, including the City's groundwater based return flows; WHEREAS, the draft permit prepared by TCEQ staff for Application No. 5851 incorrectly states that the owners of the Brushy Creek Regional Wastewater System are BRA and the Lower Colorado River Authority; WHEREAS, the City intends to file with TCEQ an application seeking, among other things, authorization to convey its groundwater based return flows through the watercourses of the Brazos River Basin for subsequent diversion and use; WHEREAS, the City has protested BRA's Application No. 5851 and BRA plans to protest the City's application and request a contested case hearing; WHEREAS, the City and BRA desire to resolve their disputes regarding the right to appropriate, divert and use or reuse the City's groundwater based return flows by agreement without the delay and expense of litigation; NOW, THEREFORE, based on the terms herein, which constitute good and valuable consideration, the Parties agree as follows: 1. BRA agrees that it will not divert or use the City's groundwater based return flows that are subject to a bed and banks authorization granted to the City by the TCEQ pursuant to Texas Water Code § 11.042(b). 2. BRA will refrain from protesting the City's future application, insofar as it seeks authorization to discharge, transport, divert and use the City's groundwater based return flows. 3. BRA will continue to take the position regarding Application No. 5851 that it does not seek to divert, appropriate or use return flows that are subject to a bed and banks authorization granted by the TCEQ pursuant to Texas Water Code § 11.042(b). 4. BRA agrees that it will use its best efforts to obtain modification of any draft permit that authorizes BRA to divert, appropriate or use return flows that are subject to a § 11.042(b) authorization. 5. BRA agrees that it will use its best efforts to obtain modification of any draft permit for Application No. 5851 to reflect that the Brushy Creek Regional Wastewater System is owned by the City, the City of Austin, and the City of Cedar Park. 1 of 2 SETTLEMENT AGREEMENT 6. The City agrees to withdraw its protest to BRA's Application No. 5851 and to limit its participation in the contested case proceeding to monitoring and seeking to ensure that the permit ultimately issued to BRA does not authorize BRA's diversion, appropriation or use of return flows that are subject to a § 11.042(b) authorization. 7. The City and BRA agree that no compensation is due either party under this Settlement Agreement and that each party shall bear its own costs in terms of complying with this Settlement Agreement. 8. This Settlement Agreement contains the entire agreement between the Parties and supersedes any and all prior agreements, arrangements or understandings between the Parties relative to the subject matter contained herein. No oral understandings, statements, promises, or inducements contrary to the terms of this Settlement Agreement exist. This Settlement Agreement cannot be changed or modified verbally, as any amendment or modification must be in writing and agreed to and executed by the Parties or their authorized representatives. 9. This Settlement Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors, and assigns. 10. By their signature below, the individuals signing represent and warrant that they have the full authority to bind and otherwise compromise the interests of the party they represent. Date: CITY OF ROUND ROCK By: %-t / l_ --- Alan McGraw, Mayor APP OVED AS TO FORM: ATTEST: 41w., Stephan' . Sheets, City Attorney Date: ct9, iQ C519'14+�t„I.c.Qult Sara White, City Secretary BRAZOS RIVER AUTHORITY By: Phil Ford, General Manager/CEO ATTEST: 2 of 2