R-2022-029 - 1/27/2022 RESOLUTION NO. R-2022-029
WHEREAS, the City of' Round Rock ("City"), the City of Pflug,erville, the Brazos River
Authority, and the Lower Colorado River Authority wish to enter into a Memorandum offritent related
to the provision of treated wastewater effluent available pursuant to HB 1437 to the City of
Pflugerville, 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 ol. Intent with the City of Pflugerville, the Brazos River Authority, and the Lower
Colorado River Authority, a copy of sarne being attached hereto as Exhibit "A" and incorporated
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,l'he 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 27th day of January,, 2022.
CRAIG K2( t6AN ayor
11
JdR ep
, T
City ol'Ro i o , 1'exas
A'TTEST:
M1,!AbA,N SPI N�-S, City k.1erk
01 o"2022,40 :923-7001
EXHIBIT
"A„
Memorandum of Intent Related to the Provision of Treated Wastewater
Effluent From the Brazos River Basin to the City of Pfluizerville, Texas
This "Memorandum of Intent Related to the Provision of Treated Wastewater Effluent
available pursuant to HB 1437 to the City of Pflugerville, Texas" (the "MOI") is entered into by
and between the City of Pflugerville, Texas ("Pflugerville"), the City of Round Rock, Texas
("Round Rock"),the Brazos River Authority ("BRA"), and the Lower Colorado River Authority
("LCRA") to be effective on the date the last Party executes the same (the "Effective Date").
Pflugerville,Round Rock,BRA,and LCRA may collectively be referred to herein as the"Parties,"
or individually as a"Party."
RECITALS
WHEREAS, the Texas Legislature enacted House Bill 1437 in 1999 ("HB 1437") to
facilitate the interbasin transfer of up to 25,000 acre-feet of water per annum from the Colorado
River Basin for transport and use within those portions of Williamson County within the Brazos
River Basin under certain specified conditions; and
WHEREAS, BRA secured a firm water contract from LCRA for the entire 25,000 acre-
feet of water per annum authorized by HB 1437(the"HB 1437 Water");and
WHEREAS,the service area of BRA does not include the Colorado River Basin;and
WHEREAS,BRA in its role as a regional water supplier within the Brazos River Basin has
contracted to supply the HB 1437 Water to several entities in the Brazos River Basin including the
Cities of Round Rock,Texas,Georgetown,Texas and Liberty Hill,Texas in Williamson County,
Texas;and
WHEREAS, LCRA is required to collect an additional charge for water sold pursuant to
HB 1437 of not less than ten percent(10%)of the price LCRA charges for HB 1437 Water; and
WHEREAS, HB 1437 requires that the transfer of water to Williamson County result in
"no net loss" ("NNL") of water to the Colorado River watershed as determined by the LCRA
board; and
WHEREAS, all or part of the NNL requirement ("the NNL Objective") can be satisfied
with water that is imported from the Brazos River Basin to the Colorado River Basin; and
WHEREAS,water imported to the Colorado River Basin from the Brazos River Basin can
be applied to achieve the NNL Objective irrespective of the whether the water originated from the
Colorado River Basin;and
WHEREAS,water beneficially used within the Brazos Basin that is delivered to the Brushy
Creek East Regional Wastewater Treatment Plant("BCE")for treatment and purification(Treated
BCE Water)before being discharged into Brushy Creek,a watercourse located in the Brazos River
Basin, may be delivered by one or more means to the Colorado River Basin to help achieve the
NNL Objective;and
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WHEREAS,water that is imported to the Colorado River Basin with the intent to meet the
conditions of HB 1437 ("HB 1437 Imported Water") may be firm, interruptible, or any
combination thereof, and
WHEREAS,LCRA is interested in the import of Treated BCE Water to the Colorado River
Basin as HB 1437 Imported Water that can be made available for sale as firm water supply; and
WHEREAS the City of Pflugerville, Texas, is interested in augmenting its existing
municipal water supply inventory with up to an additional 25,000 acre-feet per annum of the
Treated BCE Water irrespective of its original source; and
WHEREAS, Treated BCE Water obtained by Pflugerville would be treated in
Pflugerville's surface water purification plant for use in Pflugerville's municipal public water
supply system to address projected growth in the City's demand through the year 2050 (the
"Pflugerville Objective");and
WHEREAS, in furtherance of that Objective, the Parties desire to enter this nonbinding
MOI for the purposes recited herein.
NOW, THEREFORE, in consideration of the Premises and the foregoing Recitals, the
Parties agree to work together cooperatively to achieve the following intent:
AGREEMENT OF INTENT
1. Statement of Purpose: The purpose of this MOI is to memorialize the commitment of the
LCRA,BRA,and Cities of Round Rock and Pflugerville to study the mutual benefits to the Parties
available from the development of a means to transport Treated BCE Water from BCE to the
Colorado River Basin. Specifically,the focus will be to import water to the Colorado River Basin
through sales of Treated BCE Water to Pflugerville after the Williamson County users have put
the water to beneficial use and the same has been treated at the Brushy Creek East Regional
Wastewater Treatment Plant ("BCE"), which is jointly owned by the Cities of Round Rock,
Leander,Cedar Park and Austin,and operated by the City of Round Rock,and presently authorized
for discharge pursuant to TPDES Permit No. WQ-0010264002 into Brushy Creek.
2. Obiectives: Among the specific objectives the Parties seek to accomplish pursuant to
this MOI are the following:
(a) Clarify the following issues for(i) contracting purposes and (ii) determining how
the same is treated for HB 1437 purposes:
1. Document the originating water sources (e.g., groundwater, surface water from
LORA,BRA or another source)of the Treated BCE,and
2. Determine the ownership of the Treated BCE Water at the plant and the ownership
of Treated BCE Water that has been discharged into Brushy Creek,and
3. Determine the ownership of any Treated BCE water that is derived from any portion
of the HB 1437 water contracted by LCRA to BRA and, thereafter, by BRA to
third-parties within the Brazos River Basin,and
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4. Define what Treated BCE Water is eligible for credit to meet the NNL Objective;
and
(b) Determine the feasibility of Pflugerville contracting with LCRA, BRA and one or
more of the owners of the BCE for the use of Treated BCE Water to facilitate
achieving the NNL Objective;and
(c) Determine the volume of Treated BCE Water eligible to be credited towards the
NNL Objective; and
(d) Determine the total volume of Treated BCE Water that may be available for
beneficial use by Pflugerville irrespective of HB 1437; and
(e) Determine the requirements under both HB 1437 and any applicable rules of the
LCRA, the BRA, City of Round Rock, TCEQ, and the U.S. Army Corps of
Engineers to transport Treated BCE Water from BCE to Pflugerville;and
(f) Determine the dates for phased increases in the volume of Treated BCE Water
potentially available for purchase by Pflugerville annually;and
(g) Determine which provisions, if any, of HB 1437, other than the annual cap of
25,000 acre-feet per annum,or any other law that could limit the ability to provide
Treated BCE Water from BCE to Pflugerville, and whether it is possible to amend
or modify the same; and
(h) Determine which provisions of any regulations or rules of any of the Parties limit
the ability to provide Treated BCE Water from BCE to Pflugerville,and whether it
is possible to amend or modify the same;and
(i) Determine the need or authority of LCRA to amend its NNL rules to allow for the
use of the Treated BCE Water purchased by Pflugerville for use within the
Colorado River Basin to meet the NNL Objective and the potential for reducing the
additional charge to BRA collected pursuant to HB1437;and
{j) Develop a proposed Treated BCE Water Project to help achieve the NNL
Objectives to the mutual benefit of all Parties as defined and evaluated through the
items stated above; and
(k) Identify opportunities designed to facilitate the delivery of up to 25,000 acre-feet
per annum of Treated BCE Water from BCE to the City of Pflugerville, including
supplemental treatment requirements and terminal storage; and
(1) Evaluate the pros and cons of transferring the Treated BCE Water to Pflugerville
by means of direct transport from the BCE or by subsequent diversion of Treated
BCE Water after discharge to Brushy Creek at a point downstream of the BCE;and
(m) Determine the roles and responsibilities of each Party to the proposed Treated BCE
Water Project, including project financing, permitting, water rights, contracting,
3
and design and Construction responsibilities,and to commit to timelines to initiating
and achieving those respective responsibilities; and
(n) If determined applicable,evaluate the feasibility of additional watersources Outside
of treated effluent to facilitate the return of water from the Brazos River Basin to
the Colorado River Basin to achieve a"No Net Loss" in the Colorado River Basin.
3. Term: The term of this M01 agreed upon by the Parties to investigate the items
listed in Section 2. of this MOI shall be for twelve (12) months from the date of acceptance by the
Parties, as evidenced by the date of execution of the Acknowledgement at the end of the MOI.
The M01 shall be renewable by the Parties.
4, Relationship of the Pai-ties: This MOI is a nonbinding agreement between the
Parties. Until such time as the Parties negotiate, and execute, a separate binding agreement
approved,, as necessary,,, by the respective governing body of each Party, there is no binding
contractual obligation by any Party. Furthermore, nothing in this MOI is intended to create, nor
shall it be construed as creating, any form or type of partnership, joint venture or agency
relationship between the Parties. The Parties agree that no partnership, joint venture, agency
relationship, or any similar relationship between the Parties can be, or will be, created between all
or any of them in the absence of a separately negotiated and executed written agreement.
5. Termination Rights: Any Party shall have the right to terminate the MOI without
any cause by thirty (30) days prior notice to the other Parties,
6. Cost res ponsibilitv: Unless otherwise agreed to by the Parties, all costs
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associated with the implementation and due diligence contemplated by the M01, except as
otherwise expressly provided herein, shall be borne by the Party incurring such costs.
7. Notices to :Parties; Any notice to be given hereunder by any Party to the other
Parties shall be in writing and may be accomplished by delivery via e-mail using the identified
Party representative, and e-mail address, with a copy to all other Parties to this MOI. Notice shall
be deemed given when sent by e-mail to the correct e-mail addresses set forth below.
Any notice to Pflugerville shall be addressed:
City Of Pflugerville
Attn: Amy Giannini, Assistant City Manager
P.O. Box 589
Pflugerville, Texas 78691
Ph: (512) 990-6107
E-mail: ykic.com
Any notice to Round Rock shall be addressed:
City of Round Rock
Attn: Michael Thane, Director of Utilities
221 E. Main Street
4
Round Rock, Texas 78664
Ph: (512) 218-3236
E-mail: nl0i,aw.ne(
Any notice to BRA shall be addressed:
Brazos River Authority
Attn: David Collinsworth, General Manager
P.O. Box 7555
Waco, "Texas 76714
Ph: (254) 761-31 4
E-mail:
Any notice to LORA shall be addressed:
Lower Colorado River Authority
Attn: John Hofmann, Executive V.P., Water
P.O. Box 220
Austin, Texas 78767
Ph: (5 12) 578-7083
E-mail:
Any Party may change their e-rail address, and/or point ofcontact for notice to it by giving notice
of such change in writing to all other Parties in accordance with this Section 7. Such notice of
change of address shall not become effective until ten calendar days after the date the same is
given.
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EXECUTED IN MULTIPLE COUNTERPARTS ON THE DATES SHOWN IN THE SIGNATURE BLOCKS,
EACH TO BE CONSIDERED AN ORIGINAL.
City of Pflugerville,Texas Lower Colorado River Authority
By: Sereniah Breland By: John B.Hofmann
City Manager Executive V.P., Water
Date: 12/16/21 Date:
Brazos River Authority City of Round Rock,Texas
By: David Collinsworth By: Laurie Hadley
General Manager City Manager
Date: Date:
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[l ate:413)2022 lr:iP14
Memorandum of Intent:
Treated Wastewater Effluent ��d,UND.a:�1,
Read
from the Brazos River Basin to the City of Pflugerw lle