BCRUA_R-10-10-20-7D RESOLUTION NO. R-10-10-20-71)
WHEREAS, the Brushy Creek Regional Utility Authority ("BCRUA") desires to enter
into an Interlocal Agreement with the Cities of Cedar Park and Leander regarding Use of
Construction Cost Savings from Phase 1A of the BCRUA Regional Water Treatment and
Distribution Project,Now Therefore
BE IT RESOLVED BY THE BRUSHY CREEK REGIONAL UTILITY
AUTHORITY,
That the Board President is hereby authorized and directed to execute on behalf of the
BCRUA an Interlocal Agreement with the Cities of Cedar Park and Leander regarding Use of
Construction Cost Savings from Phase IA of the BCRUA Regional Water Treatment and
Distribution Project, a copy of same being attached hereto as Exhibit "A" and incorporated
herein for all purposes.
The Board 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 20th day of October, 2010.
MITCH F LLER, Sident
Brushy C ek Re io Utility Authority
ES
10,Cowman, Secretary
Z:�BCRUA1Board PackeuTacket DowmentsU02010Vtes.BCRUA-iLA w-Cities of Cedar Park Leander(00205515).DOC1rmc
INTERLOCAL AGREEMENT REGARDING USE OF CONSTRUCTION COST
SAVINGS FROM PHASE 1A OF THE BCRUA REGIONAL
WATER TREATMENT AND DISTRIBUTION PROJECT
THE STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF WILLIAMSON §
THIS INTERLOCAL AGREEMENT REGARDING USE OF CONSTRUCTION
COST SAVINGS FROM PHASE 1A OF THE BCRUA REGIONAL WATER
TREATMENT AND DISTRIBUTION PROJECT ("Agreement") is entered into between
the Brushy Creek Regional Utility Authority (`BCRUA"), the City of Round Rock, Texas, a
Texas home-rule city ("Round Rock"); the City of Cedar Park, Texas, a Texas home-rule city
("Cedar Park"), and the City of Leander, Texas, a Texas home-rule city ("Leander"). In this
Agreement, BCRUA, Round Rock, Cedar Park and Leander are sometimes individually referred
to as "Party" and collectively referred to as "Parties". In this Agreement, Round Rock, Cedar
Park and Leander are sometimes collectively referred to as"Cities."
Recitals
WHEREAS, on the 2nd day of September, 2008 the Parties entered into that one certain
Master Contract for the Financing, Construction and Operation of the BCRUA Regional Water
Treatment and Distribution Project (the "Contract"), that provides terms and conditions for the
financing, construction and operation of the first phase of the new regional system consisting
generally of upgrades to Cedar Park's raw water intake, a raw water intake line, new water
treatment plant, and water transmission mains; and
WHEREAS, Exhibit D to the Contract sets out the estimated cost of the components of
the Project, the allocation of said costs among the Cities, and the Cities' reserved capacity in the
Project components; and
WHEREAS, since the date of the Contract, several of the construction projects shown on
Exhibit D have been bid and the bids have been significantly below the original estimates and
there is new information available that has resulted in reducing the estimated cost of other
projects; and
WHEREAS, on the day of . the Parties entered into that one certain
Second Amendment to the Master Contract for the Financing, Construction and Operation of the
BCRUA Regional Water Treatment and Distribution Project ("Second Amendment") for the
purpose of approving an updated Exhibit D to reflect the reductions in actual costs, as well as
future estimated costs, such updated Exhibit D being renamed "Revised Exhibit D, August
2010", referred to herein as the"Revised Exhibit D"; and
EXHIBIT
"A„
WHEREAS, the aforesaid reduction in costs reflected on the Revised Exhibit D results
in a significant amount of money being available to spend towards items and projects in addition
to those specifically listed in the original Exhibit D; and
WHEREAS, the purpose of this Agreement is to set forth the terms and conditions for
the expenditure of said cost savings by the Parties towards other items and projects Now
Therefore, the parties hereby agree as follows:
L
DEFINITIONS
1.01 All terms used herein shall have the meanings assigned to them in the Contract, unless
the context clearly requires otherwise.
II.
USE OF COST SAVINGS
2.01 The cost savings reflected in the Revised Exhibit D may be used by the Cities only for
the projects and purposes as set forth in more detail on Exhibit A, attached hereto and
incorporated herein for all purposes.
M.
GENERAL PROVISIONS
3.01 Authority.This Agreement is made in part under the authority conferred in Chapter 791,
Texas Government Code and Section 402.001, Texas Local Government Code.
3.02 Severability. The provisions of this Agreement are severable and, if any provision of this
Agreement is held to be invalid for any reason by a court or agency of competent jurisdiction, the
remainder of this Agreement shall not be affected and this Agreement shall be construed as if the
invalid portion had never been contained herein.
3.03 Payments from Current Revenues. Any payments required to be made by a Party under
this Agreement shall be paid from current revenues or other funds lawfully available to the Party
for such purpose.
3.04 Cooperation. The Parties agree to cooperate at all times in good faith to effectuate the
purposes and intent of this Agreement.
3.05 Entire Agreement. Except as otherwise expressly provided herein, this Agreement
contains the entire agreement of the Parties regarding the use of construction cost savings from
Phase lA of the BCRUA regional treatment and distribution project and supersedes all prior or
contemporaneous understandings or representations, whether oral or written, regarding the
subject matter. The Parties confirm that further agreements regarding the Regional Project are
contemplated and shall not be affected or limited by this Agreement.
2
3.06 Amendments. Any amendment of this Agreement must be in writing and shall be
effective if signed by the authorized representatives of the Parties.
3.07 Applicable Law; Venue. This Agreement shall be construed in accordance with Texas
law. Venue for any action arising hereunder shall be in Williamson County,Texas.
3.08 Notices. Any notices given under this Agreement shall be effective if(i) forwarded to a
Party by hand-delivery; (ii) transmitted to a Party by confirmed telecopy; or (iii) deposited with
the U.S. Postal Service, postage prepaid, certified, to the address of the Party indicated below:
CEDAR PARK: 600 North Bell Blvd.
Cedar Park,Texas 78613
Attn: Brenda Eivens
Telephone: (512)401-5020
Facsimile: (512)401-5021
Email: roberts(o_),ci.cedar-park.tx.us
with copy to: Charles Rowland
600 N. Bell Blvd.
Cedar Park,Texas 78768
Telephone: (512)
Facsimile: (512)
Email: Charles.Rowland@cedarparktx.us
ROUND ROCK: 221 East Main
Round Rock,Texas 78664
Attn: Jim Nuse
Telephone: (512) 218-5410
Facsimile:(512) 218-7097
Email:jnuseground-rock.tx.us
with copy to: Steve Sheets
309 E. Main Street
Round Rock,Texas 78664-5264
Telephone: (512) 255-8877
Facsimile: (512) 255-8986
Email: slsheets@sheets-crossfield.com
Leander: P.O. Box 319
Leander,Texas 78646-0319
Attn: Wayne Watts
Telephone: (512) 259-1178
Facsimile: (512) 259-1605
Email: w.wattsQci.leander.tx.us
3
with copy to: Barney Knight
Austin, Texas 78752
Telephone: (512) 323-5778
Telecopy: (512) 323-5773
Email: attomey(a-)cit atY tomeZexas.com
3.09 Force Majeure. Parties shall not be deemed in violation of this Contract if prevented
from performing any of their obligations hereunder by reasons for which they are not responsible
or circumstances beyond their control. However, notice of such impediment or delay in
performance must be timely given, and all reasonable efforts undertaken to mitigate its effects.
3.10 Counterparts. Effect of Partial Execution. This Agreement may be executed
simultaneously in multiple counterparts, each of which shall be deemed an original, but all of
which shall constitute the same instrument.
3.11 Authority. Each Party represents and warrants that it has the full right, power and
authority to execute this Agreement.
SIGNATURES APPEAR ON FOLLOWING PAGES.
4
CITY OF ROUND ROCK:
ATTEST:
By:
Sara White, City Secretary Alan McGraw, Mayor
Date:
5
CITY OF CEDAR PARK:
ATTEST:
By:
LeAnn Quinn, City Secretary Bob Lemon, Mayor
Date:
6
CITY OF LEANDER:
ATTEST:
By:
Debbie Haile, City Secretary John Cowman, Mayor
Date:
7
BRUSHY CREEK REGIONAL UTILITY
AUTHORITY
By:
Mitch Fuller, President
Attest:
By:
John Cowman, Secretary
8
Exhibit A
BCRUA Regional Water Project
Use of Construction Coat Savings from Phase 1A
Updated:September 23,2010
CONSTRUCTED I ESTIMATED CEDAR PARK ICEDARPARKILEANDER LEANDER ROUND ROCK I ROUND ROCK
DESCRIPTION CAPACITY(MGD) COST RESERVED COST RESERVED COST RESERVED COST
CAPACITY(%) CAPACITY X CAPACITY Y.
PHASE II-DEEP WATER INTAKE
Deep Water Preliminary Engineering(Completed) $ 525,000 14.18 $ 74,445 47.26 $ 248,115 38.56 $ 202,440
Deep Water Preliminary Engineering $ 475,000 27.45 $ 130,388 43.76 F$-207,860 28.79 $ 136.753
Deep Water Due Diligence Stud $ 600,000 27.45 $ 164,700 43.76 $ 262,560 28.79 $ 172,740
Deep Water Site Purchase $ 3,300,000 27.45 $ 905,850 43.76 $ 1,444,080 28.79 $ 950,070
Easements Assumes Worst Case-Site 4 $ 7,500.000 27.45 $ 2,058,750 43.76 $ 3,282,000 28.79 $ 2,159,250
PHASE II-DEEP WATER INTAKE SUB-TOTAL $ 12,400,000 $ 3,334 133 $ 5,444,615 $ 3,621,253
Coat Allocation Percentages I I 1 1 26.89% 43.91% 29.20%
PHASE 1B-WATER TREATMENT PLANT RE-RATING
WTP Re-Ratio Filters 1-5 $ 500,000 26.67 1$ 133,350 1 46.66 $ 233,300 1 26.67 $ 133,350
PHASE 18-WATER TREATMENT PLANT RE-RATING $ 500,000 1 1$ 133,350 1 1$ 233,300 1 1 $ 133,350
Cost Allocation Percentages I 26.67%j 1 46.66%1 1 25.67%
SEGMENT 2A&2B TRANSMISSION LINES-LCRA OVERHEAD
Segments 2A&28-LCRA Overhead New Hope Water Line $ 1,106,793 1 $ $ 1,106,793 $ -
SEGMENT 2A&28-LCRA OVERHEAD SUB-TOTAL 1 $ 1,106,7931 1 $ $ 1,106,7931 1$
LEANDER RESERVE FUND
Reserve Funding 1 $ 6,184,000 $ 1$ 6,184,000 1 1$
LEANDER RESERVE FUND SUB-TOTAL 1 $ 6,184,000 $ $ 6,184 000 1 1 $
UN-ALLOCATED CONSTRUCTION SAVINGS BALANCE
Un-Allocated Construction Savings Balance 1 $ 10,099,175 1 J$ 262 221 $ 1,357.2391 $ 8,479,132
UN-ALLOCATED CONSTRUCTION SAVINGS BALANCE SUB-TOTAL 1 $ 10,099,175 1 J$ 262,221 1 1$ 1,357,239 $ 8,479,132
BCRUA RE-ALLOCATED PHASE 1A CONSTRUCTION SAVINGS 1 1 $ 30,289,968 1 J$ 3,729,7041 J$ 14,325,947 1 $ i2,233,735
Note:The Construction Savings Identified herein ars from the Amended Master Contract Exhibit D dated September 2010.
EXECUTED
DOCUMENT
FOLLOWS
INTERLOCAL AGREEMENT REGARDING USE OF CONSTRUCTION COST
SAVINGS FROM PHASE IA OF THE BCRUA REGIONAL
WATER TREATMENT AND DISTRIBUTION PROJECT
THE STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF WILLIAMSON §
THIS INTERLOCAL AGREEMENT REGARDING USE OF CONSTRUCTION
COST SAVINGS FROM PHASE 1A OF THE BCRUA REGIONAL WATER
TREATMENT AND DISTRIBUTION PROJECT ("Agreement") is entered into between
the Brushy Creek Regional Utility Authority ("BCRUA"), the City of Round Rock, Texas, a
Texas home-rule city ("Round Rock"); the City of Cedar Park, Texas, a Texas home-rule city
("Cedar Park"), and the City of Leander, Texas, a Texas home-rule city ("Leander"). In this
Agreement, BCRUA, Round Rock, Cedar Park and Leander are sometimes individually referred
to as "Party" and collectively referred to as "Parties". In this Agreement, Round Rock, Cedar
Park and Leander are sometimes collectively referred to as "Cities."
Recitals
WHEREAS, on the 2"d day of September, 2008 the Parties entered into that one certain
Master Contract for the Financing, Construction and Operation of the BCRUA Regional Water
Treatment and Distribution Project (the "Contract"), that provides terms and conditions for the
financing, construction and operation of the first phase of the new regional system consisting
generally of upgrades to Cedar Park's raw water intake, a raw water intake line, new water
treatment plant, and water transmission mains; and
WHEREAS, Exhibit D to the Contract sets out the estimated cost of the components of
the Project, the allocation of said costs among the Cities, and the Cities' reserved capacity in the
Project components; and
WHEREAS, since the date of the Contract, several of the construction projects shown on
Exhibit D have been bid and the bids have been significantly below the original estimates and
there is new information available that has resulted in reducing the estimated cost of other
projects; and �,�
WHEREAS, on the ?D _day of Vd-MOthe Parties entered into that one certain
Second Amendment to the Master Contract for the Financing, Construction and Operation of the
BCRUA Regional Water Treatment and Distribution Project ("Second Amendment") for the
purpose of approving an updated Exhibit D to reflect the reductions in actual costs, as well as
future estimated costs, such updated Exhibit D being renamed "Exhibit D, BCRUA Regional
Water Project, Capacity and Cost Allocation, Phase IA, Amended: October 20, 2010," referred
to herein as the "Amended Exhibit D"; and
IL-to00204921. C
JC4D--I 0-ZO--7
WHEREAS, the aforesaid reduction in costs reflected on the Revised Exhibit D results
in a significant amount of money being available to spend towards items and projects in addition
to those specifically listed in the original Exhibit D; and
WHEREAS, the purpose of this Agreement is to set forth the terms and conditions for
the expenditure of said cost savings by the Parties towards other items and projects Now
Therefore,the parties hereby agree as follows:
I.
DEFINITIONS
1.01 All terms used herein shall have the meanings assigned to them in the Contract, unless
the context clearly requires otherwise.
IL
USE OF COST SAVINGS
2.01 The cost savings reflected in the Revised Exhibit D may be used by the Cities only for
the projects and purposes as set forth in more detail on Exhibit A, attached hereto and
incorporated herein for all purposes.
III.
GENERAL PROVISIONS
3.01 Authority. This Agreement is made in part under the authority conferred in Chapter 791,
Texas Government Code and Section 402.001, Texas Local Government Code.
3.02 Severability.The provisions of this Agreement are severable and, if any provision of this
Agreement is held to be invalid for any reason by a court or agency of competent jurisdiction, the
remainder of this Agreement shall not be affected and this Agreement shall be construed as if the
invalid portion had never been contained herein.
3.03 Payments from Current Revenues. Any payments required to be made by a Party under
this Agreement shall be paid from current revenues or other funds lawfully available to the Party
for such purpose.
3.04 Cooperation. The Parties agree to cooperate at all times in good faith to effectuate the
purposes and intent of this Agreement.
3.05 Entire Agreement. Except as otherwise expressly provided herein, this Agreement
contains the entire agreement of the Parties regarding the use of construction cost savings from
Phase IA of the BCRUA regional treatment and distribution project and supersedes all prior or
contemporaneous understandings or representations, whether oral or written, regarding the
subject matter. The Parties confirm that further agreements regarding the Regional Project are
contemplated and shall not be affected or limited by this Agreement.
2
3.06 Amendments. Any amendment of this Agreement must be in writing and shall be
effective if signed by the authorized representatives of the Parties.
3.07 Applicable Law; Venue. This Agreement shall be construed in accordance with Texas
law. Venue for any action arising hereunder shall be in Williamson County, Texas.
3.08 Notices. Any notices given under this Agreement shall be effective if(i) forwarded to a
Party by hand-delivery; (ii) transmitted to a Party by confirmed telecopy; or (iii) deposited with
the U.S. Postal Service,postage prepaid, certified, to the address of the Party indicated below:
CEDAR PARK: 600 North Bell Blvd.
Cedar Park, Texas 78613
Attn: Brenda Eivens
Telephone: (512) 401-5020
Facsimile: (512) 401-5021
Email: roberts&ci.cedar-park.tx.us
with copy to: Charles Rowland
600 N. Bell Blvd.
Cedar Park,Texas 78768
Telephone: (512)
Facsimile: (512)
Email: Charles.Rowland@cedarparktx.us
ROUND ROCK: 221 East Main
Round Rock, Texas 78664
Attn: Jim Nuse
Telephone: (512) 218-5410
Facsimile:(512) 218-7097
Email:Inuse&round-rock.tx.us
with copy to: Steve Sheets
309 E. Main Street
Round Rock, Texas 78664-5264
Telephone: (512) 255-8877
Facsimile: (512) 255-8986
Email: slsheetsLsheets-crossfield.com
Leander: P.O. Box 319
Leander, Texas 78646-0319
Attn: Wayne Watts
Telephone: (512) 259-1178
Facsimile: (512) 259-1605
Email: w.watts(&ci.leander.tx.us
3
with copy to: Barney Knight
Austin, Texas 78752
Telephone: (512) 323-5778
Telecopy: (512) 323-5773
Email: attorneys(i�cityattorneZexas.com
3.09 Force Majeure. Parties shall not be deemed in violation of this Contract if prevented
from performing any of their obligations hereunder by reasons for which they are not responsible
or circumstances beyond their control. However, notice of such impediment or delay in
performance must be timely given, and all reasonable efforts undertaken to mitigate its effects.
3.10 Counterparts. Effect of Partial Execution. This Agreement may be executed
simultaneously in multiple counterparts, each of which shall be deemed an original, but all of
which shall constitute the same instrument.
3.11 Authority. Each Party represents and warrants that it has the full right, power and
authority to execute this Agreement.
SIGNATURES APPEAR ON FOLLOWING PAGES.
4
CITY OF ROUND ROCK:
ATTEST:
Ali o.". By: 07
Sara White, City Secretary Alan McGraw, Mayor
Date: Lo
(�- 1040. /CLIPS' 5
CITY OF CEDAR PARK:
ATTEST:
By:
LeAnn Quinn, City Secretary Bob Lem n, Mayor
Date:
6
CITY OF LEANDER:
ATTEST:
1AAJ *11 � /A, IZi=G 4 k Bu � ,y:
Deb ie Haile, City Secretary Cowman, Mayor
Date: f0
7
BRUSHY CREEK REGIONAL UTILITY
AUTHORITY
By:
Mit Fuller, esident
Attest:
064
By: `
J "'—
hn Cowman, Secretary
8
Exhibit A
BCRUA Regional Water Project
Use of Construction Cost Savings from Phase 1A
Updated:September 23,2010
CEDAR PARK LEANDER ROUND ROCK
CONSTRUCTED ESTIMATED CEDAR PARK LEANDER ROUND ROCK
DESCRIPTION CAPACITY(MGD) COST RESERVED COST RESERVED COST RESERVED COST
CAPACITY % CAPACITY(%) CAPACITY
PHASE II-DEEP WATER INTAKE
Deep Water Preliminary Engineering(Completed) $ 525,000 1418 $ 74,445 47.26 $ 248,115 38.56 $ 202,440
Deep Water Preliminary Engineering $ 475,000 27.45 $ 130,388 43.76 $ 207,860 28.79 $ 136,753
Deep Water Due Diligence Stud $ 600,000 27 45 $ 164,700 43.76 $ 262,560 28.79 $ 172,740
Deep Water Site Purchase $ 3,300,000 2745 $ 905,850 43.76 $ 1,444,080 28.79 $ 950,070
Easements Assumes Worst Case-Site 4) $ 7,500,000 2745 $ 2,058,750 43,76 $ 3,282,000 28.79 $ 2,159,250
PHASE II-DEEP WATER INTAKE SUB-TOTAL $ 12,400,000 $ 3,334,133 $ 5,444,615 $ 3,621,253
Cost Allocation Percentages I 1 1 26.89% 43.91% 29.20%
PHASE 1B-WATER TREATMENT PLANT RE-RATING
WTP Re-Rating Filters 1-5 $ 500,000 1 2667 1$ 133,3501 46.66 1$ 233,300 1 26.67 1$ 133,350
PHASE 18-WATER TREATMENT PLANT RE-RATING 1 $ 500,000 1 1$ 133,350 1 1$ 233,300 1 J $ 133,350
Cost Allocation Percentages 26.67%1 46.66%1 1 26.67%
SEGMENT 2A 8 213 TRANSMISSION LINES-LCRA OVERHEAD
Segments 2A&2B-LCRA Overhead New Hope Water Line $ 1,106,793 $ $ 1,106,793 1 $ -
SEGMENT 2A&213-LCRA OVERHEAD SUB-TOTAL $ 1,106,793 1 $ $ 1,106,793 1 $
LEANDER RESERVE FUND
Reserve Funding $ 6,184,000 $ $ 6,184,000 $
LEANDER RESERVE FUND SUB-TOTAL $ 6,184,000 1 $ $ 6,184,000 1 $
UN-ALLOCATED CONSTRUCTION SAVINGS BALANCE
Un-Allocated Construction Savings Balance $ 10,099,175 $ 262,221 $ 1,357,239 $ 8,479,132
UNALLOCATED CONSTRUCTION SAVINGS BALANCE SUB-TOTAL $ 10,099,175 1$ 262,221 1 J$ 1,357,239 1 $ 8,479,132
BCRUA RE-ALLOCATED PHASE 1A CONSTRUCTION SAVINGS $ 30,289,968 1 $ 3,729,704 1 J$ 14,325,947 1 $ 12,233,735
Note:The Construction Savings identified herein are from the Amended Master Contract Exhibit D dated September 2010.
DATE: October 15,2010
SUBJECT: BCRUA Board Meeting—October 20,2010
ITEM: 7D. Consider a resolution authorizing the President to execute an Interlocal
Agreement regarding Use of Construction Cost Savings from Phase 1A of
the BCRUA Regional Water Treatment and Distribution Project with
the Cities of Cedar Park, Round Rock,and Leander,subject to the
approval of the Participating Cities.
Presenter: Michael Thane
Director of Infrastructure Management
City of Round Rock
Justification:
Amendment No. 2 to the Master Contract for the Brushy Creek Regional Utility Authority(BCRUA)
was necessary to revise the actual cost necessary to complete Phase 1A of the regional water project.
There are six construction contracts to be awarded as part of Phase 1A. Five of these projects have
already awarded construction contracts to the lowest responsible bidder. Because these construction
contracts are coming in lower than the construction cost estimate that was included in Exhibit D of
the Master Contract,the BCRUA is updating Exhibit D to show these construction cost savings. To
date,the BCRUA has saved $30,389,968 in cost for the five projects that have been recently awarded
or are under construction.
This Interlocal Agreement between the BCRUA and the Cities of Round Rock,Cedar Park,and Leander
is to set forth the terms and conditions for expenditure of the cost savings. The expenditure of the
savings as presented in Exhibit A to this Interlocal Agreement is proposed to be used for Phase 2 Deep
Water Intake preliminary engineering and analysis as well as intake site and easement acquisition. In
addition,savings are proposed to be used for Phase 113 of the Water Treatment Plant,Segment 2A
and 2B costs, and for funding the Leander Reserve Fund. Prior to being able to spend these savings
for the proposed uses, it will require approval from the Texas Water Development Board.