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R-08-10-23-12E4 - 10/23/2008RESOLUTION NO. R -08-10-23-12E4 WHEREAS, the City of Round Rock ("City"), the Bureau of Reclamation, Lower Colorado River Authority, Brazos River Authority, City of Georgetown, City of Cedar Park, and City of Leander ("Parties") agree to enter into a regional partnership to plan, design, and construct permanent facilities to reclaim and reuse water in Williamson County, and WHEREAS, the City wishes to enter into a Memorandum of Understanding with the Parties for the Williamson County Water Reuse Project, 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 Memorandum of Understanding with the Parties, a copy of same being attached hereto as Exhibit "A" and incorporated herein. 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 23rd day of October, 2008. ALAN MCGRAW, Mayor ATTEST•�,�, A re ();,-,E--t City of Round Rock, Texas SARA L. WHITE, City Secretary 0:\WDOX\RESOLUTI\R81023E4.DOC/rmc U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS This Memorandum of Understanding is between the Bureau of Reclamation, Lower Colorado River Authority, Brazos River Authority, City of Round Rock, City of Georgetown, City of Cedar Park, and City of Leander. These parties agree to enter into a regional partnership to plan, design, and construct permanent facilities to reclaim and reuse water in Williamson County, Texas under the authority of Public Law (P.L.) 102-575, as amended by P.L. 108-316. The purpose of this MOU is to (1) identify the overall scope of work and responsibilities of participating partners, (2) provide an overview of Reclamation Title XVI Program requirements, and (3) describe the specific methods by which Reclamation will be distributing appropriated Federal funds. The parties hereby agree to abide by the terms and provisions expressed or referenced herein. 1 EXHIBIT 5 vie I. BACKGROUND AND OBJECTIVE The Bureau of Reclamation's (Reclamation) water reclamation and reuse program was authorized by the Reclamation Wastewater and Groundwater Study and Facilities Act of 1992 (Title XVI of Public Law 102-575). Also known as Title XVI, the Act directs the Secretary of the Interior to undertake a program to investigate and identify opportunities for water reclamation and reuse. The Act also provides authority to conduct research and to develop technologies for desalting and reclamation of naturally impaired ground and surface waters. As well, the Act authorized Reclamation to participate in the construction of five recycling projects. Congress has since amended Title XVI several times with other pieces of legislation; currently, there are about 45 projects authorized for construction in nine states. The Williamson County Water Recycling Act of 2004 (P.L. 108-316) amended P.L. 102-575 and authorized Reclamation to participate in the planning, design, and construction of permanent facilities to reclaim and reuse water in Williamson County. To date, four municipalities have expressed interest obtaining Federal funds under this authority. These include the cities of Round Rock, Georgetown, Cedar Park, and Leander. These entities, along with representatives from the Lower Colorado River Authority (LCRA) and Brazos River Authority (BRA), met with Reclamation in June 2008 to discuss Reclamation's Title XVI Program requirements. The parties have since agreed to form a partnership under the purview of a Memorandum of Understanding (MOU) for implementation of the Williamson County Water Reuse Project. The purpose of the MOU is to identify (1) the overall scope of work and responsibilities of participating partners, (2) Reclamation Title XVI Program requirements, and (3) the specific methods by which Reclamation will be distributing appropriated Federal funds. II. SCOPE OF WORK The Williamson County Water Reuse Project (Project) is defined as the planning, design, and construction activities associated with facilities to reclaim and reuse water in Williamson County, Texas. The Williamson County Water Reuse partnership (partnership) consists of Reclamation, LCRA, BRA, and all cities in Williamson County wishing to obtain Federal funds under authority of P.L. 102- 575, as amended by P.L. 108-316. III. RESPONSIBILITIES OF PARTIES The terms and conditions of each party's cost-sharing agreement (cooperative agreement) will outline the specific roles and responsibilities associated with each City's project. For the purposes of the MOU, the parties agree to the following: 2 The U.S. Bureau of Reclamation agrees to be a cooperating partner and to manage, administer, and distribute Federal funding pursuant to requirements set forth under P.L. 102-575, and amendments thereof, including P.L. 108-316. The Lower Colorado River Authority agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. The Brazos River Authority agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. The City of Round Rock agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. This may include sharing project information, such as planning, design, and construction costs with other participating partners in order to facilitate implementation of the regional Williamson County Water Reuse Project. The City of Georgetown agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. This may include sharing project information, such as planning, design, and construction costs with other participating partners in order to facilitate implementation of the regional Williamson County Water Reuse Project. The City of Cedar Park agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. This may include sharing project information, such as planning, design, and construction costs with other participating partners in order to facilitate implementation of the regional Williamson County Water Reuse Project. The City of Leander agrees to be a cooperating partner and to provide technical or administrative assistance on Title XVI program implementation when requested. This may include sharing project information, such as planning, design, and construction costs with other participating partners in order to facilitate implementation of the regional Williamson County Water Reuse Project. Note: This MOU may be amended at any time to include additional cities in Williamson County wishing to receive Federal funding under the Title XVI Program. See Terms of Agreement (Section VI). IV. TITLE XVI PROGRAM REQUIREMENTS Section 1631 of P.L. 102-575 states that funds may not be appropriated for the construction of any authorized project until after: 3 1. The Secretary has approved a cooperative agreement with the non -Federal project sponsor which commits the sponsor`to funding its proportionate share of project costs. 2. An Appraisal Investigation and Feasibility Study that complies with the provisions of Sections 1603 and 1604 have been completed by the Secretary or the non -Federal project sponsor. 3. The Secretary has determined that the non -Federal project sponsor is financially capable of funding its proportionate share of project costs. Note: Reclamation's approval of Federal funds for construction of a Title XVI project constitutes a Federal action, and is therefore subject to compliance with the National Environmental Policy Act (NEPA). NEPA compliance requirements are also outlined in this MOU. Cooperative Agreement Requirements Project sponsors have the option of entering into a cooperative agreement with Reclamation for planning studies only (i.e., Appraisal and/or Feasibility Report), or for combined activities associated with planning, design, and construction. Either option will depend on the project's status, as well as the level of commitment each City is willing to make to fund its proportionate share of project costs. It is important to note that the cooperative agreement for the planning phase in no way obligates the project sponsor to enter into an agreement for the construction phase of the project. Similarly, the sponsor may discontinue the planning and/or construction agreements at any time as long as it contributes 75 percent of accrued costs to date. Project partners have agreed that the most efficient method of funding distribution would be through multiple cooperative agreements between Reclamation and each participating entity for its proportionate share of planning, design, and construction expenses. In other words, Reclamation would enter into a cooperative agreement with the City of Round Rock for activities associated only with Round Rock's Title XVI project. Separate cooperative agreements would be executed for projects with other cities. Overall, Title XVI cooperative agreements will follow the same general structure and format and contain similar mandates and stipulations. It is the responsibility of each sponsor to meet the requirements of its particular agreement. Appraisal Investigation and Feasibility Study Requirements Title XVI projects that have not been authorized for construction are required to undertake both Appraisal Investigation and Feasibility Studies. However, Title XVI projects that do have construction authority (as is the case with Williamson County projects authorized under P.L. 108-316) are not required to undertake an 4 Appraisal Investigation and should proceed directly to a Feasibility Study. In order to accommodate this course of action, Reclamation designed the Feasibility Study requirements to include all Appraisal requirements set forth in Section 1603 of P.L. 102-575. A Feasibility Study contains a detailed analysis of the preferred alternative, including cost -benefits relative to the no action alternative and a justification of why the preferred alternative is selected in terms of meeting objectives, demands, needs, cost-effectiveness, etc. Under P.L. 102-575, Reclamation's share of Feasibility Study costs is no more than 50 percent, the cost of which count towards the total project cost. Generally, Reclamation applies the 50 percent cost - share to unauthorized projects or for authorized projects where sponsors are unsure as to whether the project will proceed towards construction. However, if these projects are eventually constructed under Title XVI authority, Reclamation will reduce its proportionate share of construction costs by any amount incurred during Feasibility that would cause Reclamation to exceed its maximum authorized share of 25 percent. Following this rationale, in the case where a sponsor is authorized but is certain that construction activities will occur after Feasibility, Reclamation will limit its share of Feasibility Study costs to 25 percent. Reclamation has strict requirements on the content and review of Feasibility Studies. These are outlined in Reclamation's Directives and Standards (WTR 11- 01), Title XVI Water Reclamation and Reuse Program Feasibility Study Review Process. The Feasibility Study may be conducted by the project sponsor or their designated third party contractor. The Feasibility Study process will conclude only when Reclamation has notified a City that the Feasibility Report is complete and meets all requirements established in WTR 11-01 and P.L. 102-575. Determination of Financial Capability Reclamation will not provide funds for construction of an authorized Title XVI project until it has determined that the project sponsor has adequately demonstrated its financial capability of paying for its proportionate share of project costs. If a sponsor is preparing a Feasibility Report, the minimum requirements to show financial capability are: 1. Proposed schedule for project implementation; 2. A statement or discussion on the willingness to pay for its share of capital costs and the full operation, maintenance, and replacement costs; 3. A Funding Plan that outlines the project's construction, operation, maintenance, and replacement costs, including an analysis of how the project sponsor will pay for these costs; 4. Description of all Federal and non -Federal sources of funding and any restrictions on such sources. 5 If a sponsor wishes to proceed directly to design and construction after Feasibility, then a more complete analysis of financial capability would need to be provided in the Feasibility Report itself, or as an appendix. A more detailed analysis of financial capability would include an evaluation of debt, general indicators of economic well-being, fmancial management indicators, and the impact of alternatives on water/wastewater rates. Some specific examples are provided below. Two debt indicators, bond rating and overall net debt, are useful for assessing the current debt burden and the ability to issue new debt. Overall net debt is debt repaid by property taxes in the water user service area. This indicator includes debt directly issued by local jurisdictions and by overlapping entities, such as school districts, but excludes debt repaid by special user fees. The level of debt owed by the service area population is compared to the full market value of real property used to support that debt. This ratio serves as a measure of financial wealth in the community's service area. Socio-economic indicators can be used to assess general economic well-being of the community. General indicators include income, poverty rate, population growth, and employment projections. The financial management indicators include property tax revenues as a percentage of full market property value and the property tax revenue collection rate. Together these are indicators of the property tax burden. The collection rate is a measure of the efficiency of the tax collection system and the acceptability of given tax levels to residents. Finally, the effect of alternatives considered on water or wastewater rates and average bills paid compared to current rates and costs can be used to evaluate the potential for rate shock on water users. Reclamation will notify each City on whether it has determined it financially capable of funding its proportionate share of project costs. NEPA Compliance Requirements: An Overview Reclamation's approval of Federal funds for construction of a Title XVI project constitutes a Federal action, and is therefore subject to compliance with the National Environmental Policy Act (NEPA). NEPA and accompanying Council on Environmental Quality (CEQ) regulations require Reclamation to determine and disclose the environmental impacts of its proposed actions prior to implementing the proposed actions. CEQ regulations for implementing NEPA also require integration with other environmental review procedures required by law. These include, but are not limited to, Endangered Species Act (ESA), Fish and Wildlife Coordination Act (FWCA), Clean Water Act (CWA), National 6 Historic Preservation Act (NHPA), and other environmental or cultural requirements, as well as Native American and environmental justice requirements. The level of NEPA documentation typically depends on the scope of the project. Most Title XVI construction projects will require, at a minimum, an Environmental Assessment (EA). An EA should contain a brief discussion of the purpose and need for the Title XVI project, alternatives to the proposal, the environmental impacts of the proposed Title XVI project and other alternatives, and a list of agencies and persons consulted. Most importantly, the EA should provide sufficient evidence and analysis for a determination on whether to prepare an Environmental Impact Statement (EIS). An EIS provides a more in depth analysis of significant environmental impacts and informs decision -makers and the public of alternatives which would avoid or minimize adverse impacts or enhance the quality of the environment. If an EIS is not required, then Reclamation will prepare a Finding of No Significant Impact (FONSI), which briefly explains the reasons why the Title XVI project would not have a significant effect on the environment and, therefore, why an EIS will not be prepared. If an EIS is required, which may be the case with more complex Title XVI projects, or those projects resulting in potential uncertain or controversial impacts, Reclamation must file a Notice of Intent in the Federal Register informing the public of its decision to prepare an EIS. An EIS culminates in a Record of Decision (ROD), whereby Reclamation informs the public of its decision on whether to implement the proposed action. Cities are encouraged to contact Reclamation for further information on NEPA requirements and the level of NEPA documentation needed for their Title XVI project. NEPA Compliance Requirements: Feasibility Reports Reclamation will not provide funds for construction of an authorized Title XVI project until NEPA compliance documentation has been completed. If a sponsor wishes to proceed directly to construction after Feasibility, NEPA documentation must be provided in full within the Feasibility Report itself. If a sponsor is not ready to proceed towards construction, then NEPA documentation may be prepared at a later date, but before construction. In this particular case, the Feasibility Report must include sufficient information on each alternative to allow Reclamation to assess the potential measures and costs that may be necessary to comply with NEPA and any other applicable Federal laws. Reclamation's Directive and Standard (WTR 11-01), Title XVI Water Reclamation and Reuse Program Feasibility Study Review Process, provides a summary of environmental considerations that must be taken into account as part of the Feasibility Report. NEPA Compliance Requirements: Construction Reclamation will not provide funds for construction until all NEPA and other environmental requirements have been met. If a project sponsor proceeds with construction prior to the completion of NEPA compliance, and without Reclamation's approval, Reclamation may disallow any associated costs that the project sponsor incurs from Federal funding. Certain non -construction activities carried out prior to the completion of NEPA compliance documentation may be eligible for funding provided that these activities will not adversely affect the human and/or natural environment or selection of the preferred alternative. Project sponsors are advised to consult with Reclamation prior to proceeding with such activities to determine whether they will adversely affect the human and/or natural environment or the selection of the preferred alternative. Consultation can only reduce the risk of such activities becoming ineligible for Federal funding. Reclamation cannot formally review the eligibility of such activities until NEPA compliance has been completed. Construction Initiation: A Title XVI project sponsor may not complete final design or initiate construction activities until it has been notified in writing by Reclamation that all Title XVI Program requirements have been met. Exhibit A illustrates the Title XVI process for projects authorized by P.L.108-316. Exception In some cases, project sponsors may be approved by Reclamation to incur "Preaward" construction costs before the execution of a construction cooperative agreement. This is only an option for those sponsors wishing to enter into separate cooperative agreements for planning and design/construction. The benefit is that construction may begin while the cooperative agreement paperwork is being prepared and processed. However, in order to qualify for reimbursement of Preaward costs, all of the following criteria must be met: (1) all other Title XVI requirements must be met, including completion of a Feasibility Report, NEPA compliance, and financial capability; (2) the cost of such activities does not exceed 25 percent of the total cost of construction; and (3) Reclamation provides advance approval. Once approved, the estimated Preaward costs will be included as part of the construction cooperative agreement. Project modifications Reclamation understands that project scopes may change in the future. Reclamation will work with project sponsors to expeditiously modify either agreements to include any such modifications. Project modifications would necessarily reflect any subsequent budgetary changes and cost commitments, and have to address compliance with NEPA. Substantial changes to the project scope 8 as defined in the final NEPA document must be approved by Reclamation before initiating any such changes. V. DISTRIBUTION OF FEDERAL FUNDS Pursuant to P.L. 102-575, as amended by P.L. 108-316, Reclamation is authorized to provide up to 25 percent of the total project cost or $20 million, whichever is less. Reclamation will not provide funds for the operations and maintenance of any authorized project. Title XVI Cost -Ceiling The $20 million Federal cost -ceiling applies to the cumulative total for all Title XVI projects authorized under P.L. 108-316. Based on initial cost estimates provided by cities in the MOU, Reclamation does not foresee reaching the $20 million ceiling. However, if in the future a City (either new or existing under the MOU) wishes to obtain Federal funds for a project under P.L. 108-316, and Reclamation's proportionate share would result in exceeding the $20 million cost - ceiling, then Reclamation would have to renegotiate its proportionate share of costs with all other project sponsors that have executed cooperative agreements. At that time, in cooperation with MOU partners, Reclamation will develop a funding distribution process that accommodates the addition of future projects while maintaining the Federal cost -share below $20 million. Federal Reimbursement Reclamation will administer the Title XVI Program on a reimbursement basis, with each City submitting quarterly requests for payment pursuant to stipulations outlined in each City's cooperative agreement. If appropriations are made by Congress in advance of project expenditures, Reclamation will obligate enough funds each quarter to pay reimbursement requests that are submitted to Reclamation. If multiple agreements are in place, Reclamation will rank those agreements based on the date of agreement execution; the earlier the date of execution, the higher the rank. Reimbursement requests from higher ranked agreements will be paid first, with no more than two thirds any one year's available funding paid to any one City. The next highest ranked requests would then be paid until all reimbursement requests have been paid in full or until funds have been exhausted, whichever comes first. However, if no other reimbursement requests from other City's have been submitted, or if at the end of the fiscal year all other quarterly requests have been paid and funds remain, the funding limit will be lifted. If funds still remain after paying all outstanding reimbursement requests, those funds may be carried over to the next fiscal year (if possible) or obligated based on projections outlined in each sponsor's Work Plan and Budget'. ' Under terms of each construction cost-sharing agreement, sponsors are required to submit an Annual Work Plan and Budget, which identifies the anticipated work accomplishments and estimated expenditures for each reporting period for that fiscal year. 9 If project expenditures "outpace" Federal funding, and Reclamation is unable to repay its proportionate share of project costs for a particular quarter(s) (this may occur for multiple quarters, depending on funding levels), then sponsors have two options: (1) discontinue activities until further appropriations are made or (2) pay 100 percent of all project costs, in advance, up until the project is completed. Once appropriations are made by Congress, Reclamation will pay each individual quarterly reimbursement request, beginning with the oldest, highest ranking request, with no more than two-thirds of any one year's available funding will be paid to any one City. Again, if no other reimbursement requests from other City's have been submitted, or if at the end of the fiscal year all other quarterly requests have been paid and funds remain, the funding limit will be lifted. If appropriated funds are not sufficient to pay all reimbursement requests for a particular quarter, Reclamation will resume payment of that quarter's requests before moving to the next quarter (if or when funds become available). Appropriation of Federal Funds Reclamation's ability to reimburse project costs is contingent upon the appropriation of funds by Congress. It is impossible to speculate how long, if ever, Congressional appropriations may take, so there is a level of risk associated with a sponsor incurring advanced expenditures with the intent on being reimbursed by Reclamation. VI. TERMS OF AGREEMENT Period This MOU will expire on September 30, 2018 or upon termination of all cost share agreements with all sponsors, whichever comes first. Termination Before terminating the cost share agreement, Reclamation will verify that construction is complete and that the funds were used for the authorized purpose. Amendments This MOU may be extended or amended at any time by written consent of the designated representatives of the parties hereto, provided justification is given to the other parties and accepted. This MOU is renegotiable upon agreement of all parties. Exception Reclamation reserves the right to unilaterally modify the MOU to allow participation of other entities in Williamson County wishing to obtain Federal 10 funds under the authority of P.L. 108-316. This would be done in coordination with existing MOU partners. Liability Effective on the date of conveyance, the Cities will hold the United States harmless and will indemnify the United States for any and all claims, costs, damages, and judgments of any kind arising out of any act, omission, or occurrence related to the Projects, except for such claims, costs, or damages arising from acts of negligence committed by the United States or by its employees, agents, or contractors prior to the date of conveyance for which the United States is found liable under the Federal Tort Claims Act, 28 U.S.C. 2671. VII. REQUIRED CLAUSES During the performance of this MOU, the participants agree to abide by the terms of Executive Order 11246 on nondiscrimination and will not discriminate against any person because of race, color, religion, sex, or national origin. No member or delegate to Congress, or resident Commissioner, shall be admitted to any share or part of this MOU or to any benefit arising from it. However, this clause does not apply to this MOU to the extent that this MOU is made with a corporation for the corporation's general benefit. VIII. CONFIDENTIALITY Partners agree to make information available to one another that would assist in implementation of the Williamson County Water Reuse Project. This may include sharing information related to project work plans, budget, and costs. 11 EXHIBIT A Ready to Proceed with Construction Execute Cooperative Agreement for Planning, Design, and Construction Appraisal Investigation Report (optional) Feasibility Report that includes NEPA Compliance and Financial Capability • / 1 Notification from Reclamation that all Title XVI Requirements have been met. • J • Construction May Begin Title XVI Process for Projects Authorized by P.L. 108-316 Not Ready to Proceed with Construction Execute Cooperative Agreement for Planning Only Appraisal Investigation Report (optional) /OR\ Feasibility Report that includes NEPA Compliance and Financial Capability Feasibility Report NEPA Compliance Financial Capability • "Preaward" Construction Activities May Begin, if Approved • Execute Cooperative agreement for Design and Construction 12 Notification from Reclamation that all Title XVI Requirements have been met \ Construction May Begin U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS Alan McGraw, Mayor City of Round Rock 221 East Main Street Round Rock, Texas 78664 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS Mark Trevino, Area Manager U.S. Bureau of Reclamation 5310 Highway 290 West, Suite 510 Austin, Texas 78735 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS George G. Garver, Mayor City of Georgetown P.O. Box 409 Georgetown, Texas 78627 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS Anthony Johnson, City Manager City of Leander P.O. Box 319 Leander, Texas 78646 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS Robert S. Lemon, Mayor City of Cedar Park 600 North Bell Boulevard Cedar Park, Texas 78613 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS Phil Ford, General Manager/CEO Brazos River Authority P.O. Box 7555 Waco, Texas 76714 Signature Date U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MEMORANDUM OF UNDERSTANDING NO. 09AG602350 FOR WILLIAMSON COUNTY WATER REUSE PROJECT, TEXAS 999 Lower Colorado River Authority 999 Austin, Texas 78735 Signature Date DATE: October 16, 2008 SUBJECT: City Council Meeting — October 23, 2008 ITEM: 12E4. Consider a resolution authorizing the Mayor to execute a Memorandum of Understanding between the Bureau of Reclamation, City of Round Rock, Lower Colorado River Authority, Brazos River Authority, and other cities in the Williamson County Water Reclamation and Reuse Project. Department: Staff Person: Justification: Water and Wastewater Utilities Michael Thane, P.E., Director of Utilities The City of Round Rock has plans to expand the existing reuse water system. By entering into this Memorandum of Understanding (MOU) with the Bureau of Reclamation, LCRA, BRA, and other Williamson County Cities, each individual Williamson County City is responsible for obtaining an agreement with the Bureau of Reclamation to fund their reuse projects. In the initial Federal Legislation (Public Law 102-575, Title XVI, Section 1621, as amended), LCRA was named as the contract administrator. LCRA has agreed as stated in the MOU) to turn the responsibility of managing the agreements over to the individual cities that have projects with the Bureau of Reclamation. Funding: Cost: N/A Source of funds: Self Financed Utility Fund Outside Resources: United States Federal Bureau of Reclamation Background Information: The City Council approved the funding agreement with the Bureau of Reclamation at the September 25, 2008 council meeting. The agreement establishes the City of Round Rock as the direct manager for working with the Bureau of Reclamation for recovering up to 25% of the qualified project expenses for reimbursement. The agreement also spells out the requirements for qualifying a project for reimbursement. Public Comment: N/A