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R-95-04-27-11B - 4/27/1995 RESOLUTION NO. WHEREAS, Austin and Round Rock recognize the benefits to be derived by both cities from the joint cooperation in the provision of utilities to the region served by the two cities, and WHEREAS, Austin has an interest in exploring the possibility of joining with the cities of Round Rock and Georgetown and the Jonah Water Supply Corporation in constructing a raw water transmission line from Stillhouse Hollow Reservoir to provide future water service to its jurisdiction in Williamson County, and WHEREAS, Austin currently has excess water capacity available in its system from the Martin Hill storage tank and related facilities, and WHEREAS, permitting Round Rock to utilize this excess capacity on an interim basis would allow the postponement of the costly construction of the water transmission line from Stillhouse Hollow Reservoir to the Austin/Round Rock/Georgetown service areas, and WHEREAS, Austin benefits operationally and financially from the sale of excess water capacity to Round Rock on an interim basis as long as the excess capacity exists and Round Rock has a need for the excess capacity, and KS/RESOLUTION RS50427b RESOLUTION NO. eg5-04-A7-//6 WHEREAS, Austin and Round Rock recognize the benefits to be derived by both cities from the joint cooperation in the provision of utilities to the region served by the two cities, and WHEREAS, Austin has an interest in exploring the possibility of joining with the cities of Round Rock and Georgetown and the Jonah Water Supply Corporation in constructing a raw water transmission line from Stillhouse Hollow Reservoir to provide future water service to its jurisdiction in Williamson County, and WHEREAS, Austin currently has excess water capacity available in its system from the Martin Hill storage tank and related facilities, and WHEREAS, permitting Round Rock to utilize this excess capacity on an interim basis would allow the postponement of the costly construction of the water transmission line from Stillhouse Hollow Reservoir to the Austin/Round Rock/Georgetown service areas, and WHEREAS, Austin benefits operationally and financially from the sale of excess water capacity to Round Rock on an interim basis as long as the excess capacity exists and Round Rock has a need for the excess capacity, and KS/RESOLUTION RS50427b WHEREAS, the Council desires to enter into an Interim Wholesale Water Service Contract setting out the terms and conditions for the sale of excess water capacity from Austin to Round Rock; 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 an Interlocal Agreement for Interim Water Supply with the City of Austin. RESOLVED this 27th day of April, 1995 . CHARLES CJLMPPER, Mayor City of Round Rock, Texas ATTEST: 4M/YLU Zla4,ld NE LAND, City Secretary KS/RESOLUTION RS50427b INTERLOCAL AGREEMENT FOR INTERIM WATER SUPPLY THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS: COUNTY OF TRAVIS THIS INTERLOCAL AGREEMENT is made and entered into by and between the City of Austin, a Texas home rule municipal corporation ("Austin") acting by and through its duly authorized City Manager or his designee, and the City of Round Rock, a Texas home rule municipal corporation ("Round Rock") acting by and through its duly authorized Mayor. RECITALS: 1. Austin and Round Rock each own and operate extensive water and wastewater utility systems providing utility service to the majority of customers in Travis and Williamson Counties. 2. Both Austin and Round Rock recognize that substantial benefits may derived by both cities from joint cooperation in the planning, financing, construction and provision of utilities in the region served by the two cities. 3. Austin has an interest in exploring the possibility of joining with the cities of Round Rock and Georgetown and Jonah Water Supply Corporation in constructing a raw water transmission line from Stillhouse Hollow Reservoir (the "Stillhouse Hollow Line") to provide future water service to customers in Williamson County. 4. Round Rock has determined that a hydraulic constraint affects the production of potable water from its surface water treatment plant and has scheduled construction of improvements to alleviate the hydraulic constraint. 5. Subject to certain operational limitations, Austin has determined that it will, for a period of years, have varying amounts of excess water capacity available in the Northwest "A" portion of its system serviced by the Martin Hill Elevated Storage Tank and related facilities. 6. Austin and Round Rock have studied the feasibility of permitting Round Rock to utilize the excess capacity available in the Austin water system on an interim basis to allow Round Rock to complete the construction of improvements to its treatment plant, to postpone the need for construction of the Stillhouse Hollow Line and to provide Round Rock with a reliable alternate supply of water to meet anticipated short term demand. 7 . Austin will benefit both operationally and financially from the sale of its excess capacity on an interim basis to Round Rock. 8. Austin and Round Rock desire to set forth in writing the terms and conditions for the interim sale of water from Austin to Round Rock. NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and undertakings set forth below, Austin and Round Rock hereby contract and agree as follows: ARTICLE ONE DEFINITIONS 1.01. Unless the context clearly requires otherwise, the following terms shall have the meaning set forth below: (a) Agreement: this "Interlocal Agreement for Interim Water Supply. " (b) As Available Service: means that increment of interim wholesale water service in excess of Firm Service as defined below to be provided to Round Rock by Austin under this Agreement only if Austin determines that such additional increment of potable water service is available from the Austin system after meeting the potable water service requirements of its customers as hereinafter more particularly set forth. (c) Emergency: an Act of God or similar unforeseen and unpreventable catastrophic circumstance or disaster that significantly affects Round Rock's ability to provide potable water to its customers. The term shall not include service interruptions for scheduled maintenance, lapse of raw water supply contracts or other legal impediments, overcommitment of supply, or replacement or construction of facilities or similar events that are preventable by the exercise of due diligence, foresight and planning. (d) Emergency Service: potable water service to be provided to Round Rock for a temporary period only in the event of and for the duration of an emergency pursuant to the terms and conditions more particularly set forth below. (e) Engineering Report: the "Preliminary Engineering Report on the FM 1325 Water Line" dated July 1994 prepared for Round Rock by Baker-Aicklen & Associates, Inc. (f) Firm Service: the minimum assured level of potable water service, expressed in gallons per day, that Austin determines it is capable of providing to Round Rock on a consistent basis from -2- (Rev. 4/20/95) the Northwest "A" portion of its Water System, which determination shall be updated by Austin on an annual basis for a three (3) year service horizon as more particularly set forth below. (g) MGD: million gallons per day. (h) Point of Delivery: one or more locations determined by mutual agreement of the parties where Round Rock's water facilities are connected to Austin's water facilities and from which Round Rock may withdraw water from the Austin water system. (i) Project: the design, acquisition and construction by Round Rock, at its sole expense, of the following water facilities and appurtenances: (1) a 24" Water Line and appurtenances (the "Water Line") in and along the right-of-way of FM 1325 to transport potable water from the present terminus of the Northwest "A" portion of Austin's water system at the northeast corner of the intersection at FM 1325 and Shoreline Drive to Round Rock's Elevated Storage Tank No. 5; and (2) a meter vault, master meter and appurtenances to measure interim water service provided to Round Rock hereunder, the same to be located at a mutually agreed point in or near the right of way of FM 172 at or near the extraterritorial boundary of Austin and Round Rock; and (3) a rate -of -flow controller and appurtenances to monitor and control the rate of potable water flows from Austin to Round Rock in accordance with this Agreement, the same to be located with the master meter and appurtenances at a mutually agreed point in or near the right of way of FM 172 at or near the extraterritorial boundary of Austin and Round Rock; and (4) a backflow prevention device of a size, design, configuration and capacity approved by the Director of Austin's Water and Wastewater Utility (the "Director") and sufficient to meet the requirements of all regulatory agencies having jurisdiction with respect to same, the same to be located with the master meter and appurtenances at a mutually agreed point in or near the right of way of FM 172 at or near the extraterritorial boundary of Austin and Round Rock; and (5) acquisition of all easements, bonds, permits, rights, consents, inspections, and approvals required for the lawful completion of the Project with standard warranties, guaranties and other assurances of performance no less stringent than those secured in the ordinary course of business for other public works projects of the City of Round Rock. -3- (Rev. 4/20/95) (j) Water: potable water meeting those requirements for human consumption and other domestic uses promulgated by the Texas Department of Health, Texas Natural Resource Conservation Commission and other agencies of competent jurisdiction. ARTICLE TWO TERMS AND CONDITIONS FOR INTERIM WATER SERVICE 2.01. Agreement to Provide Interim Water Service. Subject to the terms and conditions of this Agreement and the requirements of applicable law, Austin agrees to provide wholesale water service to Round Rock on an interim basis ("Interim Water Service") for the term of this Agreement. The respective maximum levels of Firm Service, As Available Service and Emergency Service to be provided by Austin to Round Rock under this Agreement shall be determined in accordance with the procedures set forth below. 2.02. Construction of the Project by Round Rock. As a condition precedent to the commencement of Interim Water Service hereunder, Round Rock agrees to design and construct the Project, as defined above, at its sole expense. Round Rock shall design the Project to be compatible in all respects with those water facilities in the Northwest "A" portion of the Austin water system. 2.03. Ownership, Operation and Maintenance of the Project. The parties agree that: (a) following construction and final acceptance thereof, Round Rock shall own, operate and maintain those portions of the Project and appurtenances located in its extraterritorial jurisdiction as established on the effective date hereof; and (b) following construction and final acceptance thereof, Round Rock shall dedicate and convey to Austin for ownership, operation and maintenance those portions of the Project located in Austin's extraterritorial jurisdiction as established on the effective date hereof together with all easements, warranties, guarantees or other contract rights or assurances of performance appertaining to such facilities; (c) following construction and final acceptance thereof, Round Rock shall dedicate and convey to Austin for ownership, operation and maintenance the master meter, rate-of-flow controller, backflow prevention device and appurtenances and the vault (s) housing the same (described above as components of the Project) together with all easements, warranties, guarantees or other contract rights or assurances of performance appertaining to such facilities. -4- (Rev. 4/20/95) For those portions of the Project to be conveyed to Austin, Round Rock agrees to execute and deliver to Austin such deeds, bills of sale, assignments or other instruments as are necessary to transfer good and marketable title to the facilities to Austin with general warranty along with all easements, warranties, guarantees or other contract rights or assurances of performance appertaining to such facilities as hereinabove provided. 2.04. Austin's Use of the Project to Serve Customers in Its Extraterritorial Jurisdiction. The parties agree that Austin may utilize those portions of the Project transferred to Austin in accordance with this Agreement to serve customers within Austin's Water Service Area. Austin agrees that its use of the Project for Austin water customers shall be accomplished in a manner that does not diminish the physical capability of the Project to deliver a peak daily flow of 5.5 MGD to Round Rock at the master meter. Nothing in the foregoing sentence shall be construed to modify the maximum level of Firm Service, As Available Service or Emergency Service or the procedures for determining same under this Agreement. 2.05. Agreements Concerning Easements. Round Rock agrees that easements secured for the Project or any component thereof shall not contain any provision requiring Austin or Round Rock to provide water or wastewater service to the property owner nor any other provision requiring Austin to expend funds or provide any other service or performance as a condition of the grant of such easement. In addition, easements for the Project shall not contain a provision causing the termination of the easement or other adverse impact if Austin acquires the Project or any portion or interest therein from Round Rock. Easements for the master meter, rate -of -flow controller and backflow prevention device and appurtenances and the vault(s) to house the same and those portions of the Water Line located in Austin's extraterritorial jurisdiction shall be secured by Round Rock in the name of both Austin and Round Rock so as to allow Austin to own, operate and maintain those portions of the Project to be transferred to Austin following construction thereof by Round Rock as contemplated above. 2.05. Requirement for Austin's Approval of Plans for Certain Components of the Project. Round Rock agrees to submit for review and approval by Austin the plans and specifications for those portions of the Project located in Austin's extraterritorial jursidiction as described above together with the plans and specifications for the master meter, rate -of -flow controller and backflow prevention device and appurtenances, and the vault(s) to contain such devices, to the Director of Austin's Water and Wastewater Utility for review and approval prior to the installation of same by Round Rock. For those portions of the Project located within Austin's extraterritorial jurisdiction, Round Rock agrees to comply in all respects with City of Austin -5- (Rev. 4/20/95) ordinances applicable to the construction, inspection and approval of the Project. 2.07 . Inspection of the Project. Austin shall have the right, at all times, to inspect the construction of the Project during all phases of construction and Round Rock shall provide access to Austin's authorized representatives for this purpose. 2.08. Other Improvements to Round Rock System. Round Rock shall be solely responsible for design and construction of such other and further improvements to the Round Rock water system as are necessary for the safe transportation, storage and distribution of potable water received from the Austin water system hereunder. Austin shall not be liable for damages to the Round Rock water system or to the water facilities of Round Rock customers arising from the distribution of potable water received by Round Rock hereunder. 2.09. Establishment of Maximum Level of Firm Service. The parties acknowledge that the designed water transportation capacity of the Project is a peak day flow of approximately 5.5 MGD but that, because of known operational limitations, growth and increasing water demand on the Austin system, Austin cannot provide the entire peak day flow of 5.5 MGD on a firm or assured basis for the entire term of this Agreement. Accordingly, to provide a methodology for determining the maximum level of Interim Water Service capable of being provided to Round Rock on a firm or assured basis, the parties agree as follows: (a) Firm Service of Three (3) MGD For Initial Three (3) Year Period. Austin and Round Rock agree that, for the initial three (3) year period following the effective date of this Agreement, Austin will provide to Round Rock Interim Water Service up to a peak daily flow of three (3) MGD on a firm or assured basis ("Firm Service") . During said initial three (3) year period, Interim Water Service in excess of a peak daily flow of three (3) MGD will be provided only on an as available basis ("As Available Service") . (b) Annual Determination of Firm Capacity for Three Year Service Horizon. Prior to the end of the initial twelve (12) month period following the effective date of this Agreement and, prior to the end of each succeeding twelve (12) month period during the term of this Agreement, Austin will study its water system performance, actual and projected water demand from Austin's customers (excluding Round Rock) and update its service area growth and demand projections and make a determination of the maximum level of firm service ("Firm Service Determination") that Austin believes its system is capable of providing to Round Rock in each of the three (3) years next succeeding each such Firm Service Determination. -6- (Rev. 4/20/95) (c) Communication of Firm Service Determination. Austin shall communicate each annual Firm Service Determination to Round Rock in writing together with a statement of the reasons supporting such determination. (d) Three Year Firm Service Determination Binding. Austin and Round Rock agree that the Firm Service Determination shall establish the maximum level of Interim Water Service to be provided by Austin to Round Rock during the three (3) year service horizon covered by the Firm Service Determination. Both Austin and Round Rock agree to be bound by the annual Firm Service Determination provided hereunder. Notwithstanding the above, the parties may, by mutual agreement in writing, modify the Firm Service commitment for a particular year. 2.10. Effect of Mandatory Water Conservation Measures. Notwithstanding the level of Firm Service determined under the preceding Section, the parties agree that, if Austin institutes mandatory water conservation measures for its own customers, Austin's commitment for Firm Service to Round Rock shall be reduced automatically by a factor of one-third for the duration of such mandatory conservation measures (eg., if the Firm Service commitment is for 3 MGD, the Firm Service commitment will be reduced to 2 MGD for the duration of such mandatory conservation measures). 2.11. As Available Service. To the extent potable water service is available from the Austin system in excess of the amount of Firm Service determined hereunder, Round Rock may request and, to the extent Austin determines such additional water service is available from the Northwest "A" portion of the Austin system, Austin has agreed to provide As Available Service to Round Rock subject to the conditions set forth in this Section. All Interim Water Service which exceeds the approved level of Firm Service determined in accordance with the foregoing procedures shall be considered As Available Service. Austin may terminate or reduce such As Available Service at any time during the term of this Agreement by providing Round Rock with forty eight (48) hours written notice of such termination or reduction. Such notice shall be forwarded by hand delivery or telefax to Round Rock's notice address stipulated below and shall such notice shall contain the following: (a) a statement indicating the termination or reduction of As Available Service; (b) in the case of a reduction of As Available Service, the estimated amount of the reduction in As Available Service; (c) the estimated duration of such termination or reduction of As Available Service. -7- (Rev. 4/20/95) 1, 2.12. Maximum Level of All Forms of Interim Water Service. The parties acknowledge that the combination of Firm Service, As Available Service and Emergency Service to be provided by Austin to Round Rock under this Agreement may not exceed a peak daily flow of 5.5 MGD. 2.13. Rates For Interim Water Service. Austin and Round Rock agree that rates for Interim Water Service provided to Round Rock shall be as follows: (a) in the initial twelve (12) months of this Agreement, the rate shall be the average of the rates charged by Austin to Austin's wholesale customers for the same period; and (b) for each twelve (12) month period thereafter, the rate shall be the wholesale rate established by the Austin City Council for wholesale water service to Round Rock's customer class based on the cost-of-service study conducted by Austin's Water and Wastewater Utility. 2.14. Minimum Payment for Availability. If, based on a calculation of daily average flow during any monthly billing period [in which mandatory conservation measures are not in effect] , Round Rock takes less than one third (1/3) of the Firm Service commitment determined under the foregoing procedures, Round Rock agrees nonetheless to pay to Austin an amount equivalent to the charge for one third (1/3) of the amount of said Firm Service commitment for each day of said monthly billing period as consideration for the availability of Firm Service from Austin hereunder. 2.15. Provision of Service During Emergency. In the event of an emergency as defined hereinabove, and to the degree Austin is not already providing to Round Rock the 5.5 MGD maximum flow capable of being transported by the Project, Round Rock may request that Austin provide emergency water service for a temporary period to assist Round Rock in meeting the needs of such emergency and the provision of emergency water service shall be subject to the following conditions: (a) the availability of water in the Northwest "A" portion of the Austin water system in excess of that required to service the requirements of Austin's water system customers; (b) a determination by the Director that a bona fide emergency as defined above exists and that delivery of emergency water service to Round Rock will not endanger the public health, safety or welfare of Austin citizens; (c) emergency water service will be provided only for the shorter of the following periods: -8- (Rev. 4/20/95) (1) the reasonable duration of the emergency giving rise to the request for emergency water service; (2) the reasonable duration needed to repair damage to the Round Rock water system occassioned by such emergency; (3) the duration of Austin's ability to provide emergency water service to Round Rock as determined by the Director; or (4) two (2) weeks. In the event that the emergency exceeds the shorter of the foregoing periods, Round Rock may make written request to the Director to continue emergency water service beyond said initial period. The Director may continue or resume such emergency water service for an additional period up to two (2) weeks, or such shorter period as as the Director shall determine appropriate and necessary, but only if the Director determines that the emergency giving rise to the initial request for emergency service has not been abated, that Round Rock has exercised reasonable diligence in attempting to remove the disability giving rise to the initial request for emergency water service, and that water in excess of the needs of Austin's customers continues to be available in the Northwest "A" portion of the Austin water system to provide emergency water service to Round Rock. ARTICLE THREE GENERAL PROVISIONS 3.01. Term of Agreement. This Agreement shall be for an initial term of ten (10) years. Upon the mutual consent of both parties, the Agreement may be extended for another ten (10) year term. 3.02. Termination. Either party may terminate this Agreement upon thirty six (36) months written notice thereof to the other party. 3.03. Authority. This Agreement is made pursuant to the authority conferred by V.T.C.A. Government Code, Chapter 791, and V.T.C.A. Local Government Code Secs. 402.001 and 402.017. 3.03. Payments From Current Revenues. All payments, if any, required to be made by a governmental entity hereunder shall be payable from current revenues or other funds lawfully available for such purpose. 3.04. Force Majeure. If, by reason of Force Majeure (as hereinafter defined), any party shall be rendered wholly or partially unable to carry out its obligations under this Agreement after its effective date, then such party shall give written notice of the particulars of such Force Majeure to the other party or parties within a reasonable time after the occurrence thereof. -9- (Rev. 4/20/95) ,..A. ` The obligations of the party giving such notice, to the extent affected by such Force Majeure, shall be suspended during the continuance of the inability claimed and for no longer period, and any such party shall in good faith exercise its best efforts to remove and overcome such inability. Payment obligations shall not be considered to be affected by Force Majeure. The term "Force Majeure" as utilized herein shall mean and refer to acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders of any kind of the government of the United States, the State of Texas, or any other civil or military authority; insurrections; riots; epidemics; landslides; earthquakes; lightning; fires; hurricanes; storms; floods; washouts; or other natural disasters; arrests; restraint of government and people; civil disturbances; explosions; breakage or accidents to machinery, pipelines or canals; or other causes not reasonably within the control of the party claiming such inability. 3.05. Entire Agreement. This Agreement contains the entire Agreement of the parties and supersedes all prior or contemporaneous, understandings and representations, whether oral or written, respecting the subject matter hereof. 3.06. Amendments. Any amendment hereof must be in writing and signed by the authorized representative of each party hereto. 3.07 . No Amendment of Other Agreements. Unless otherwise expressly stipulated herein, this Agreement is separate from and shall not constitute an amendment or modification of any other agreement between the parties. 3.08. No Third Party Beneficiaries. This Agreement shall inure only to the benefit of the parties hereto and third parties not privy to this Agreement shall not, in any form or manner, be considered a third party beneficiary of this Agreement. 3.09. Assignment. The rights and obligations of a party arising under this Agreement shall not be assignable. 3.10. Applicable Law. This Agreement shall be construed under and in accordance with Texas law. 3.11. Venue. Venue for any action arising hereunder shall be in Travis County, Texas. 3.12. Notices. Notices provided hereunder shall be sufficient if forwarded to the other party by hand-delivery or via U.S. Postal Service, postage prepaid, to the address of the other party shown below: -10- (Rev. 4/20/95) CITY OF ROUND ROCK: Director of Public Works City of Round Rock 221 East Main Street Round Rock, Texas 78664 CITY OF AUSTIN Director, City of Austin Water and Wastewater Utility P.O. Box 1088 Austin, Texas 78767-1088 3.13. Duplicate Originals. This Agreement may be executed in duplicate originals each of equal dignity. 3.14. Effective Date. This Agreement shall be effective from and after the date of due execution by the authorized representative of each party to this Agreement. IN WITNESS WHEREOF, the authorized representatives of Austin and Round Rock have executed this Agreement as of the date(s) shown below. ATTEST: ATTEST: ity Secretary (Rev. 4/20/95) CITY OF AUSTIN: Title: Assistant C'ty Manager Date: By: Name: Title: Date: -11- CITY OF ROUND ROCK: CM& Cat/0/0/066 yaf, fl'?//L5 /996 THE STATE OF TEXAS ) COUNTY OF TRAVIS ) THIS INSTRUMENT was acknowledged before me on thiay of 1995, by M sNxt in as r' of the jFity of Austin, a Texas municipal corporation, on Leh&Jlf of said municipal corporation. Notary Public, State f Texas aY�� GLORIA L AGUILERA �p'`� '"' �� Printed/Typed * NOTARY PUBLIC Name of Notary State of Texas °'`•�i�e� Comm. Fxp. 0110-98 My Commission Expires THE STATE OF TEXAS ) COUNTY OF TRAVIS ) THIS INSTRUMENT was acknowledged before me on this day of M��R 1995, by &Q?,1455 WtP6P&4am , as MJ4VOR. , of the City of Round Rock, a Texas municipal corporation, on behalf of said municipal corporation. Notary Public, State of "exas s PY AU M1� t `01' `; CN;RiSTINF 8.MARTINEZ ��� I� /l , �> e7l-IVE z-' •` *l t% Notary Pub4c,Stale of Texas Printed/Typed Name of Notary x b'N Commission Expires()&(kr97 Q C 4 rel My Commission Expires: JMT/jmt -12- (Rev. 4/20/95) DATE: April 25, 1995 SUBJECT: City Council Meeting, April 27, 1995 ITEM: 11B. Consider a resolution authorizing the Mayor to enter into a contract with the City of Austin providing for the interconnection of the two cities' water systems. STAFF RESOURCE PERSON: Jim Nuse STAFF RECOMMENDATION: On Thursday, April 20 the Austin Council passed the enclosed agreement. The agreement has a 10 year term with provisions for extension. The maximum take rate will be 5.5 M.G.D. Austin will provide to Round Rock on a 3 year rolling basis, the firm yield. This amount is the amount that is guaranteed on any given year Round Rock must take or pay 1/3 of the firm yield amount.