R-2025-321 - 12/4/2025 RESOLUTION NO. R-2025-321
WHEREAS, the City of Round Rock ("City") and Fern Bluff Municipal Utility District ("Fern
Bluff') previously entered into that one certain Water Supply Agreement dated the 22nd day of August,
1991, which 1991 Agreement has since expired; and
WHEREAS, the City and Fern Bluff now wish to renew their agreement for the City to supply
Fern Buff with wholesale water service,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, Wholesale
Water Agreement Between the City of Round Rock, Texas and Fern Bluff Municipal Utility District, a
copy being attached hereto as Exhibit "A" and incorporated herein for all purposes.
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 4th day of December, 2025.
/,A Z
CRAI OR N, Mayor
City of Round ock, Texas
ATTE T:
AN FRANKLIN, City Clerk
0112.20252;4900-2920-7419
EXHIBIT
A
WHOLESALE WATER AGREEMENT
BETWEEN THE CITY OF ROUND ROCK,TEXAS AND
FERN BLUFF MUNICIPAL UTILITY DISTRICT
This Wholesale Water Agreement (this "Agreement') is entered into as of the day of
, 2025 between the CITY OF ROUND ROCK, TEXAS (the "CLty"), a home rule
municipality located in Williamson County, Texas, and FERN BLUFF MUNICIPAL UTILITY
DISTRICT ("Fern Blu '), a conservation and reclamation district created under Article XVI,
Section 59 of the Texas constitution and operating under the provisions of Chapters 49 and 54 of
the Texas Water Code. In this Agreement, the City and Fern Bluff are sometimes referred to
individually as "a Par " and collectively as "the Parties."
WITNESSETH:
WHEREAS, the City owns and operates a water treatment and distribution system serving
territory within the City's corporate boundaries; and
WHEREAS, Fern Bluff is located within the City's extraterritorial jurisdiction and was
created to provide, among other services, retail water and wastewater services to the land within
its boundaries; and
WHEREAS, the Parties previously entered into that one certain Water Supply Agreement
Between the City of Round Rock, Texas and Fern Bluff Municipal Utility Agreement dated the
22"d day of August, 1991,which 1991 Agreement has since expired; and
WHEREAS, the Parties now wish to renew their agreement for the City to supply Fern
Bluff with wholesale water service;
NOW, THEREFORE, for and in consideration of the premises and the mutual obligations
and benefits herein contained, the Parties agree as follows:
ARTICLE I.
Definitions
1.01 In addition to the terms defined in the preceding paragraphs of this Agreement, the
following terms, when used in this Agreement, have the following meanings:
a. "Board'or"Board of Directors"means the Board of Directors of Fern Bluff.
b. "Director"means the Director of the City's Water and Wastewater Utility.
C. "Force Majeure" means acts of God, strikes, lockouts, or other industrial
disturbances; acts of a public enemy; orders of the government of the United States
or the State of Texas or any civil or military authority other than the Parties;
insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes,
storms, floods, washouts, and droughts; restraint of government and people; civil
FBMUD CoRR Wholesale Agreement;Clean Final 10.20.25(002).docx
disturbances; explosions, breakage or accidents to machinery, pipelines, or canals
or other causes not reasonably within the control of the Party claiming the inability.
d. "Impact Fees" means the amounts charged by the City to pay for a portion of the
capital costs of the City's water supply and treatment system necessary to provide
fresh water supply to Fern Bluff.
e. "Living Unit Equivalent" or "LUE" means the amounts of water and wastewater
service required to serve a service unit, as determined under City Ordinances.
f. "Ordinances"means City ordinances, as amended from time to time.
g. "Commission" means the Texas Commission on Environmental Quality, or its
successor agency.
ARTICLE II.
Impact Fees
2.01 Fern Bluff is a"developed district" as the term is defined under Section 49.23602,
Texas Water Code.Therefore, Fern Bluff does not anticipate making any new water or wastewater
connections during the term of this Agreement. However, if Fern Bluff must make any such new
connections, Fern Bluff will collect the City's standard water Impact Fees on behalf of the City
prior to initiation of service to any new water connection within Fern Bluff. Fern Bluff will not
provide service to any new connection until the City's Impact Fees have been paid by the customer
requesting the connection. Impact Fees collected by Fern Bluff during each month will be remitted
to the City by the 15`h day of the following month. The City will give written notice to Fern Bluff
of any change in the City's Impact Fees at least 30 days prior to the change becoming effective,in
order to allow Fem Bluff adequate time to amend its rate order and adjust the amounts which it is
collecting on behalf of the City under this Section.
2.02 Upon the payment of each water Impact Fee described in this Article 2.02, Fern
Bluff will have a guaranteed reservation and commitment of capacity in the City Systems for the
amount of capacity (in LUEs) for which a water Impact Fee has been paid.
2.03 All other fees required by the City will be paid as required by City Ordinances.
ARTICLE III.
Water Services
3.01 The City will sell and deliver water, which will be supplied from the City's water
distribution system to the boundaries of Fern Bluff. The point or points of delivery of water to Fern
Bluff are shown on Exhibit "A." The City presently has an adequate water supply with which to
provide water service to Fern Bluff at the same level that water services are provided to other retail
customers within the City; however, the supply of water to Fern Bluff may be reasonably limited
by the City on the same basis and to the same extent as the supply of water to any other customers
within the City. The City will provide potable water meeting the standards of the Commission for
human consumption and other domestic uses at a minimum pressure of 35 psi at each customer
meter and a minimum flow rate of 0.6 gallons per minute per LUE, and in compliance with all
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applicable requirements for wholesale contracts for purchased water systems, including Section
290.45(f), Texas Administrative Code, and any other applicable regulatory requirements. Service
by the City to Fern Bluff will be nondiscriminatory and consistent with the City's standard service
policies and regulations, as established by the Round Rock City Council. The City will be the sole
source of potable water to Fern Bluff,and Fern Bluff will not seek to develop its own potable wells
or alternate supplies, except in the event that the City is no longer able to provide potable water
service as contemplated hereby. The preceding sentence notwithstanding, the City acknowledges
and consents to the fact that Fern Bluff maintains water and wastewater system interconnections
with the water and wastewater systems of Brushy Creek Municipal Utility District ("Brushy
Creep'),which is immediately adjacent to Fern Bluff.Fern Bluff and Brushy Creek may from time
to time provide emergency or otherwise urgent supplies of water and wastewater services to one
another; however, these interconnection services are not intended to, and shall not, impinge upon
the City's or Fern Bluff's obligations and rights under this Agreement.
3.02 Retail water service within Fern Bluff will be provided by Fern Bluff.Water meters
meeting City specifications for customers of Fern Bluff will be provided by Fern Bluff at Fern
Bluff's cost. Fern Bluff will adopt a water conservation and drought management plan which is at
least as stringent as the City's, as amended from time to time and will amend its plan from time to
time to correspond with any amendments adopted by the City,provided that the City shall provide
notice to Fern Bluff of any such amendments and allow Fern Bluff 30 days to amend Fern Bluff's
drought contingency plan. Fern Bluff will provide the City with a copy of said water conservation
and drought management plan within forty-five (45) days after the effective date of this
Agreement. In addition, Fern Bluff will implement water rationing and water conservation
measures under its water conservation and drought management plan when those measures are
activated by the City. The City will give Fern Bluff notice of any activation of water rationing and
water conservation measures. Fern Bluff may not sell or deliver water to any customer outside the
boundaries of Fern Bluff without the City's approval.
3.03 Water delivered to Fern Bluff will be measured by a master meter or meters at all
connections to the City water distribution system. Metering equipment and related facilities,
including a meter vault and standard-type devices required for properly measuring the quantity of
water delivered to Fern Bluff have been installed at each point of delivery at Fern Bluff's cost. The
City will operate and maintain the metering equipment. Fern Bluff will calibrate the master meters
annually, or more frequently at the City's request. Fern Bluff will provide the City with a copy of
the calibration report within ten (10) days of Fern Bluff's receipt of same. If the City requests
calibration of a master meter more frequently than once every 12 months and, upon calibration,
the master meter in question proves to be accurate, then the cost of the calibration will be borne
by the City. Any master meter registering within three percent (3%) accuracy will be deemed to
be accurate. If any master meter tests to be inaccurate by more than three percent(3%), all testing
and calibration costs will be borne by Fern Bluff,the master meter will be recalibrated or replaced,
and a billing adjustment will be made based on the degree of the meter's inaccuracy,as determined
by the test. If the Parties can reasonably estimate the time at which the master meter became
inaccurate,the City will make a billing adjustment based on that time period. If the Parties cannot
reasonably estimate the time at which the master meter became inaccurate,then the City will make
a billing adjustment to no more than the previous six months' billings. If a master meter is out of
service or under repair so that the amount of water delivered cannot be ascertained or computed
from the readings, the water delivered during the period the master meter was out of service or
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repair will be estimated and agreed upon by the Parties based on the best data available. Fern Bluff
will read all master meters on a daily basis, except on weekends and state and federal holiday and
will keep accurate records of all measurements of water passing through the master meters. Such
records will be open to the City for inspection or copying at all times during Fern Bluff's regular
business hours. Both Fern Bluff and the City will be entitled to access the master meters at all
times, and the City will read the master meters once each City billing cycle, for billing purposes.
3.04 The rate to be charged by the City to Fern Bluff for water supplied under this
Agreement will include a monthly base charge of$27,443.00 and a volume charge of$3.00 per
1,000 gallons delivered to Fern Bluff. The rates set by the City and charged to Fern Bluff may be
reviewed and/or amended annually based on a cost-of-service study performed by the City. The
City may include a reasonable rate of return in its rates.
3.05 Fern Bluff agrees to pay the City in accordance with City Ordinances, to bill users
of potable water within Fern Bluff and to set and maintain and rates sufficient to pay the following:
a. For water delivered by the City pursuant to this Agreement.
b. For all utility operation and maintenance expenses as they come due.
3.06 Fern Bluff agrees to provide the City with a copy of each resolution or order
adopted by Fern Bluff setting water rates within seven days of adoption. The City agrees to give
written notice to Fern Bluff at least 30 days prior to approval of any wholesale rate change in order
to allow Fern Bluff to (i) review and comment upon the proposed change and (ii) adjust its own
rates to its customers based on the increase in wholesale costs.
ARTICLE IV.
Miscellaneous
4.01 If, by reason of Force Majeure, a Party is rendered unable, wholly or in part, to
carry out its obligations under this Agreement, such Party will give written notice and the full
particulars of such Force Majeure to the other Party within a reasonable time after occurrence of
the event or cause relied upon, and the obligation of the Party giving such notice, to the extent it
is affected by such Force Majeure, will be suspended during the continuance of the inability then
claimed, but for no longer period, and any such Party will endeavor to remove or overcome such
inability with all reasonable dispatch.
4.02 The City will not be liable to Fern Bluff or any customer of Fern Bluff for the failure
of the City to provide water or wastewater treatment service where the failure results from Force
Majeure.
4.03 This Agreement is subject to all valid rules,regulations,and laws applicable thereto
promulgated by the United States of America, the State of Texas, or any agency thereof or
regulatory body having lawful jurisdiction.
4.04 This Agreement will be for the sole and exclusive benefit of the City and Fern Bluff
and will not be construed to confirm any benefit or right upon any other parties.
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4.05 This Agreement may be amended only by consent of both of the Parties.
4.06 The provisions of this Agreement are severable and, if any word, phrase, clause,
sentence,paragraph,section or other part of this Agreement or the application thereof to any person
or circumstance is ever held by any court of competent jurisdiction to be invalid or unconstitutional
for any reason, the remainder of this Agreement will be construed as if such invalid provision was
not contained herein.
4.07 This Agreement will be in force and effect from the date of execution by both
Parties and will continue in effect for 40 years thereafter. The foregoing notwithstanding, if all of
the land within Fern Bluff is annexed and Fern Bluff is dissolved, this Agreement will terminate
on the date of dissolution of Fern Bluff.
4.08 This Agreement will be construed under and in accordance with Texas law. Venue
for any action arising hereunder will be in Williamson County, Texas.
4.09 Any notice given under this Agreement must be in writing. Notice may be given:
(i)by depositing the notice in the United States Mail,postage paid, certified, and addressed to the
Party to be notified with return receipt requested; (ii) by delivering the notice to the Party, or an
agent of the Party or(iii) by confirmed facsimile, provided that a copy of the notice is also given
in one of the manners specified in(i) or(ii). Notice deposited in the mail in the manner specified
will be effective three days after deposit. Notice given in any other manner will be effective only
if and when received by the Party to be notified. For the purposes of notice, the addresses of the
parties will, until changed as provided below, be as follows:
CITY: City of Round Rock
221 East Main Street
Round Rock,Texas 78664
Attn: City Manager
Email: bbennett@roundrocktexas.org
With copy to:
Stephen L. Sheets
Sheets& Crossfield, PLLC
309 E. Main St.
Round Rock, Texas 78664
FERN BLUFF: Fern Bluff Municipal Utility District
7320 Wyoming Springs Drive
Round Rock, TX 78681
Email: arnAfembluffmud.org
With copy to:
Law Office of Zachariah T. Evans
2900 W. Anderson Lane, Ste. C-200, #354
Austin, Texas 78757
Email: zac(&ztevanslaw.com
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The Parties may change their respective addresses for purposes of Notice by giving at least five
days written notice of the new address to the other party.
4.10 If any date or any period provided in this Agreement ends on a Saturday, Sunday
or legal holiday,the applicable period will be extended to the next business day.
4.11 Each party has been represented by legal counsel who have participated equally in
the formulation, drafting, and approval of this Agreement. Therefore, in the event of any
ambiguity,the provisions of this Agreement will not be construed for or against either party based
on draftsmanship.Wherever appropriate,the masculine gender may include the feminine or neuter,
and the singular may include the plural, and vice versa.
IN WITNESS WHEREOF, the City and Fern Bluff, acting under the authority of their
respective governing bodies, have caused multiple counterparts of this Agreement to be duly
executed, each of which will be of equal dignity,all as of the_day of 52025.
SIGNATURES ON FOLLOW PAGES
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CITY OF ROUND ROCK,TEXAS
By:
CRAIG MORGAN, Mayor
Date:
ATTEST:
Ann Franklin, City Clerk
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FERN BLUFF MUNICIPAL UTILITY
DIST
By:
GEORGE S ATINO, President, Board of
Directors { 29�1 ,202K
Date: OC/ -
ATTEST:
JessicAtempko, Secretary, Board of Directors
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EXHIBIT A
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°Date:11/12/2025
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Fern Bluff MUD - Water Supply Agreement
ROUND ROCK TEXAS