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R-09-12-03-8D2 - 12/3/2009RESOLUTION NO. R -09-12-03-8D2 WHEREAS, the Cities of Round Rock, Austin, and Cedar Park (the "Cities"), and the Lower Colorado River Authority ("LCRA"), entered into a Purchase Agreement on September 10, 2009, whereby the LCRA agreed to transfer the Brushy Creek Regional Wastewater System ("BCRWWS") to the Cities on or about December 8, 2009, and WHEREAS, the City Council of the City of Round Rock wishes to authorize the Mayor to execute any and all documents required for said transfer, 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 any and all documents required for the transfer of the BCRWWS from LCRA to the Cities, including but not limited to an Agreement Terminating the Wastewater Disposal Contract and a Termination of Interceptors Contract, copies of same being attached hereto as Exhibits "A" and "B" respectively. 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. O:\wdox\SCC1nts\0112\0905\MUNICIPAL\R91203D2.DOC/rmc RESOLVED this 3rd day of December, 2009. ATTEST: 7/V144A--- SARA . WHITE, City Secretary 2 ALAN MCGRAW, Mayor City of Round Rock, Texas TERMINATION OF WASTEWATER DISPOSAL CONTRACT WHEREAS, the Brazos River Authority ("Brazos"), the Lower Colorado River Authority ("LCRA"), the City of Round Rock ("Round Rock"), the City of Cedar Park ("Cedar Park") and the City of Austin ("Austin") entered into that certain "Wastewater Disposal Contract" dated October 1, 2000, as amended ("Contract"), for the purpose of providing wastewater services through the Brushy Creek Regional Wastewater System ("System"); EXHIBIT a 'An 3 WHEREAS, LCRA, Round Rock, Cedar Park and Austin entered into the "Purchase Agreement for the Brushy Creek Regional Wastewater System" dated September 10, 2009 ("Purchase Agreement"), by which LCRA agreed to sell the System to Round Rock, Cedar Park and Austin; WHEREAS, Brazos, LCRA, Round Rock, Cedar Park and Austin desire to terminate the Contract because of the sale of the System effective December 8, 2009, in accordance with the Purchase Agreement, provided that Brazos acknowledges receipt from LCRA of payment of operation and maintenance fees due to Brazos under the Contract for the entire month of December 2009 ("December Payment"); and, WHEREAS, Brazos, Round Rock, Cedar Park and Austin propose to enter into a new agreement by which Brazos shall operate the System ("New Operations Agreement"), but the drafting and execution of the New Operations Agreement is not yet complete; TI-IEREFORE, it is hereby agreed between Brazos, LCRA, Round Rock, Cedar Park and Austin that the Contract is terminated effective December 8, 2009, and each of the undersigned parties, respectively, fully releases and discharges the other undersigned parties from any further obligations under the Contract; provided that Brazos agrees to continue operation of the System for the month of December in consideration of the December Payment and further agrees that operations and maintenance fees under the New Operations Agreement will not take effect until January 1, 2010; and further provided that Brazos agrees to continue operation of the System after January 1, 2010, if necessary, on a month to month basis until the approval and execution of the New Operations Agreement for the payment of operation and maintenance fees calculated for such months pursuant to the Purchase Agreement and under the same standard of care provided in the Purchase Agreement and as it has been providing since its commencement of operations of the Brushy Creek Regional Wastewater System. BRAZOS RIVER AUTHORITY By: Phil Ford, General Manager/CEO Termination of Wastewater Disposal Contract Attest: Attest: LOWER COLORADO RIVER AUTHORITY By: Thomas G. Mason, General Manager THE CITY OF ROUND ROCK, TEXAS By: Name: Title: By: Name: Title: THE CITY OF CEDAR PARK, TEXAS By: Name: Title: By: Name: Title: Termination of Wastewater Disposal Contract 2 Attest: THE CITY OF AUSTIN, TEXAS By: Name: Title: By: Name: Title: Termination of Wastewater Disposal Contract 3 TERMINATION OF INTERCEPTORS CONTRACT WHEREAS, Brazos River Authority ("Brazos"), the Lower Colorado River Authority ("LCRA"), the City of Round Rock ("Round Rock") and the City of Austin ("Austin") entered into that certain "Interceptor Line Acquisition, Construction and Transportation Service Contract" dated July 1, 2001, as amended ("Interceptors Contract"), for the purpose of providing wastewater services through the Brushy Creek Regional Wastewater System ("System"); WHEREAS, LCRA, Round Rock and Austin and also the City of Cedar Park ("Cedar Park") entered into the "Purchase Agreement for the Brushy Creek Regional Wastewater System" dated September 10, 2009 ("Purchase Agreement"), by which LCRA agreed to sell the System to Round Rock, Cedar Park and Austin; WHEREAS, Brazos, LCRA, Round Rock and Austin desire to terminate the Interceptors Contract because of the sale of the System effective December 8, 2009, in accordance with the Purchase Agreement; and, THEREFORE, it is hereby agreed between Brazos, LCRA, Round Rock and Austin that the Interceptors Contract is terminated effective December 8, 2009, and Brazos, Round Rock and Austin fully release and discharge LCRA from any further obligations under or related to the Interceptors Contract. BRAZOS RIVER AUTHORITY By: Phil Ford, General Manager/CEO LOWER COLORADO RIVER AUTHORITY By: Thomas G. Mason, General Manager Termination of Interceptors Contract 2 Attest: THE CITY OF ROUND ROCK, TEXAS By: Name: Title: By: Name: Title: Termination of Interceptors Contract 3 Attest: THE CITY OF AUSTIN, TEXAS By: Name: Title: By: Name: Title: Termination of Interceptors Contract 4 DATE: November 24, 2009 SUBJECT: City Council Meeting — December 3, 2009 ITEM: 8D2. Consider a resolution authorizing the Mayor to execute any and all documents required for the closing of the purchase of the Brushy Creek Regional Wastewater System, including but not limited to a Termination of Interceptors Contract and an Agreement Terminating the Wastewater Disposal Contract with the LCRA. Department: Staff Person: Justification: Water and Wastewater Utilities Michael Thane, P.E., Director of Utilities In October 2000, the Cities of Round Rock, Austin, and Cedar Park, the Lower Colorado River Authority (LCRA), and the Brazos River Authority (BRA) entered into a Wastewater Disposal Contract for the ownership and operation of the Brushy Creek Regional Wastewater System (BCRWWS). Over the past two years, the Cities have been in negotiations with the LCRA on the transfer of the BCRWWS back to the Cities. On September 10, 2009, the LCRA and the Cities of Round Rock, Cedar Park, and Austin entered into a Purchase Agreement by which the LCRA agreed to sell the BCRWWS. The closing of the purchase of the BCRWWS by the Cities is set to occur on December 8, 2009. At closing, the LCRA shall transfer the BCRWWS to the Cities and the Cities agree to fully release and discharge LCRA from any further obligations or liability related to the BCRWWS. Because a new Master Contract for the Cities of Round Rock, Austin, and Cedar Park will be entered into for the ownership and operation of the BCRWWS, it is necessary to terminate the existing Wastewater Disposal Contract and an Interceptors Contract. Strategic Plan Relevance: Public Health and Safety Strategic Initiative Goal No. 27.0 "Ensure there is an adequate, affordable and safe water supply." Funding: Cost: N/A Source of funds: N/A Outside Resources: LCRA, BRA, City of Cedar Park, and City of Austin Public Comment: N/A