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R-01-07-26-14E6 - 7/26/2001RESOLUTION NO. R- O1- 07- 26 -14E6 WHEREAS, on October 1, 2000 the City of Round Rock entered into a Wastewater Disposal Contract with the Brazos River Authority, the Lower Colorado River Authority, and the City of Austin for regional wastewater disposal services, and WHEREAS, the City Council wishes to enter into an Interceptor Line Acquisition, Construction and Transportation Service Contract with the Brazos River Authority, the Lower Colorado River Authority, and the City of Austin for the construction, acquisition, maintenance and operation of the Southwest Interceptor Line and the Round Rock South Interceptor Line, 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 Interceptor Line Acquisition, Construction and Transportation Service Contract with the Brazos River Authority, the Lower Colorado River Authority, and the City of Austin, a copy of said agreement being attached hereto 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 O.\ WPOOCS \RSSOLOTI \81071686.NP0/6c upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. RESOLVED this 26th day of July, 2001. E LAND, City Secretary 2 ROBERT A. STLUKA, R., Mayor City of Round Rock, Texas INTERCEPTOR LINE ACQUISITION, CONSTRUCTION AND TRANSPORTATION SERVICE CONTRACT This "Interceptor Line Acquisition, Construction and Transportation Service Contract" (the "Service Agreement ") is entered into among the Brazos River Authority ( "BRA "), the Lower Colorado River Authority ( "LCRA "), the City of Round Rock ( "Round Rock ") and the City of Austin ( "Austin "). Round Rock and Austin are hereafter sometimes referred to as the "Customers." RECITALS BRA, LCRA, Austin and Round Rock are also parties, together with the City of Cedar Park ( "Cedar Park") to that certain Wastewater Disposal Contract dated October 1, 2000 (the "Wastewater Disposal Contract ") pursuant to which BRA and LCRA, acting as an Alliance, provide regional wastewater disposal services to Round Rock, Cedar Park, Austin and LCRA itself from the Brushy Creek Regional Wastewater Disposal System (hereafter, the "System," as defined in the Wastewater Disposal Contract). The purpose of this Service Agreement is to provide for the construction, acquisition, maintenance and operation of those two certain wastewater interceptor lines and related facilities generally described on Exhibit A hereto (respectively, the "Southwest Interceptor Line" and the "Round Rock South Interceptor Line" or, collectively, the "Interceptor Lines ") to be connected with and flow to the System to provide wastewater transportation services to Round Rock and Austin but not to Cedar Park or LCRA. NOW, THEREFORE, IT IS HEREBY AGREED AMONG BRA, LCRA, ROUND ROCK AND AUSTIN AS FOLLOWS: Agreement Section 1. Purpose of Service Agreement. The purpose of this Service Agreement is to provide for construction, acquisition, maintenance and operation of the Interceptor Lines which are to be connected to and flow into the System but which will not benefit Cedar Park or LCRA and for which the parties agree Cedar Park and LCRA should not bear any cost responsibility. This Service Agreement does not amend or change in any way the Wastewater Disposal Contract or the rights and obligations of BRA, LCRA, Round Rock, Austin or Cedar Park thereunder. The Interceptor Lines shall not become part of the System unless and until BRA, LCRA, Round Rock, Cedar Park and Austin so agree. This Service Agreement is for Wastewater transportation services only, not Wastewater treatment and disposal services. Section 2. Definitions; Incorporation. Capitalized terms used herein have the meanings ascribed to them in the Wastewater Disposal Contract except as otherwise provided herein. The provisions of the Wastewater Disposal Contract are incorporated in this Service Agreement to the extent applicable as provided by this Service Agreement; provided, however, Sections 1.01(b), (f), (g), (h), (f), (jjj) and (mmin); 2.03; 2.04; 2.07; 3.01(b); 4.01(a); 5.04(b) and (e); Article VI; and 7.23 are inapplicable hereto. Section 3. Acquisition of Existing Portions of the Interceptor Lines. Contemporaneously with execution of this Service Agreement, LCRA and Round Rock are entering into that certain "Agreement for Acquisition of Wastewater System Assets (Southwest Interceptor Line and Round Rock South Interceptor Line)" (the "Interceptor Line Acquisition Agreement ") pursuant to which LCRA will acquire for the benefit of Austin and Round Rock certain existing portions of the Interceptor Lines currently owned by Round Rock. Section 4. Construction of Southwest Interceptor Line. LCRA agrees to construct and acquire the Southwest Interceptor Line and acquire appropriate easements or rights -of -way for the Southwest Interceptor Line in conformity with the requirements of Section 2.01 of the Wastewater Disposal Contract, including retaining the services of BRA to provide inspection during construction. All actions of LCRA, Round Rock and Austin heretofore undertaken or accomplished in connection with this Section 4 are hereby in all respects ratified, approved and confirmed by the parties. Notwithstanding anything herein to the contrary, the parties agree that the Southwest Interceptor Line may be constructed and acquired in phases. Section 5. Applicability of Provisions of Wastewater Disposal Contract. Notwithstanding the provisions of Section 1 of this Service Agreement that the Interceptor Lines shall not be part of the System, the parties agree nonetheless that the terms and provisions of the Wastewater Disposal Contract (other than those terms declared to be inapplicable pursuant to Section 2 hereof) shall be applicable to their rights and responsibilities in regard to the use, financing and operation of the Interceptor Lines such that as between them, the Interceptor Lines shall be considered as if they were part of the System to be owned by LCRA, operated by BRA, and used to provide Wastewater transportation services to Round Rock and Austin as Customers of the Interceptor Lines as if they were the "System" as defined in the Wastewater Disposal Contract; provided, however, Round Rock and Austin shall be the only "Customers" for the Reserved Capacity in the Interceptor Lines; shall be entitled to the portions of the Reserved Capacity of same as described in Exhibit B hereto; shall share 100% of the Annual Operation and Maintenance Expense Requirement of the Interceptor Lines on the basis of their respective flows into those lines pursuant to the methodology described in Section 5.05 of the Wastewater Disposal Contract; and shall share in the Annual Project Requirement for the Interceptor Lines on the basis described in Exhibit C hereto. Section 6. Commencement of Wastewater Transportation Services. Notwithstanding any other provisions of this Service Agreement, or the Wastewater Disposal Contract, BRA shall commence provision of Wastewater transportation services to Round Rock and Austin from the Southwest Interceptor Line and Round Rock South Interceptor Line upon acquisition of the existing portions of each of those lines from Round Rock pursuant to the Interceptor Line Acquisition Agreement. 2 Section 7. Effective Date. This Service Agreement shall become effective upon execution by BRA, Round Rock and Austin. Section 8. Term of Service Agreement. This Service Agreement shall continue in force and effect from the Effective Date hereof for a period ending July 17, 2037, and thereafter, shall continue in effect until any Bonds, or Bonds issued to refund same, if any, have been paid in full. Round Rock and Austin hereunder shall have the right to the continued performance of services provided hereunder for the useful life of the Southwest Interceptor Line and the Round Rock South Interceptor Line to the extent of Round Rock's and Austin's Reserved Capacity in each of those lines after amortization of LCRA's investment in those facilities, upon payment ofjust and reasonable charges by them. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies have caused this Service Agreement to be duly executed in several counterparts, each of which shall constitute an original, all as of the day of 2001. ATTEST: By: Name: Title: BRAZOS RIVER AUTHORITY By: Name: Philip Ford Title: General Manager LOWER COLORADO RIVER AUTHORITY By: Name: Paul E. Thornhill, P.E. Title: Manager, WaterCo 3 ATTEST: By: Name: Title: ATTEST: By: Name: Title: ATTEST: By: Name: Title: Exhibits: CITY OF ROUND ROCK By: Robert Stluka Mayor CITY OF AUSTIN By Roger Chan Assistant City Manager Exhibit A - Interceptor Lines (including portions to be acquired from Round Rock and the two phases of the Southwest Interceptor Line to be constructed by LCRA). Exhibit B - Reserved Capacity Table for Interceptor Lines Exhibit C - Allocation Factors for Annual Project Requirement 4 t 'Exhibit A Southwest Interceptor and Round Rock South Interceptor pi • 1% 1.11/ MAX 01 FEET r" F t \ Phase A \ t } 7 1 =1 SOU West _ ; ' \Intercc s '"n } , ; � F , , EXHIBIT A TO INTERCEPTOR LINE ACQUISITION, CONSTRUCTION AND TRANSPORTATION SERVICE CONTRACT ck ceptor — ^ 1 Interceptor Line Austin Reserved Capacity Round Rock Reserved Capacity Southwest Interceptor Line 1412 LUEs ** All Other LUEs ** Round Rock South Interceptor Line 1551 LUEs ** All Other LUEs ** EXHIBIT B Interceptor Line Acquisition, Construction and Transportation Service Contract RESERVED CAPACITIES* *Reserved Capacities in initial Interceptor Lines described on Exhibit A. Future Expansions to those Interceptor Lines beyond those described on Exhibit A will be agreed upon as the Expansions are designed. ** 1 LUE equals 350 gallons of Wastewater per day on a 30 -day average. 6 Interceptor Line EXHIBIT C Southwest Interceptor Line and Round Rock South Interceptor Line Acquisition, Construction and Transportation Service Contract Annual Project Requirement Allocation Percentages* Austin Cost Share Round Rock Cost Share Southwest Interceptor Line A. Acquired from Round Rock 100% 0% B. Constructed by LCRA 44.05% 55.95% Round Rock South Interceptor Line N /A % ** N /A % ** *Cost Shares in initial Interceptor Lines described on Exhibit A. Future Extensions to those Interceptor Lines beyond those shown on Exhibit A will be agreed upon as the Expansions are designed. * *Currently, no Annual Project Requirement to be allocated. Allocations will be agreed upon before any Expansions of the Round Rock South Interceptor Line are constructed. 7 DATE: July 20, 2001, 2001 SUBJECT: City Council Meeting — July 26, 2001 ITEM: 14.E.6. Consider a resolution authorizing the Mayor to execute an Interceptor Line Acquisition, Construction and Transportation Service Contract with the Brazos River Authority, the Lower Colorado River Authority, and the City of Austin. In order to provide service to the southwest portion of Round Rock a sewer line was constructed by the LCRA for use of both Round Rock and Austin. This agreement covers the construction, acquisition and transportation service for this line. Resource: Jim Nuse, Public Works Director History: In order to provide service to the southwest portion of Round Rock a sewer line was constructed by the LCRA for use of both Round Rock and Austin. This agreement covers the construction, acquisition and transportation service for this line. Funding: Cost: Phase A- Southwest Interceptor: $1,124,870 Phase B and C — Lake Creek and Rubio: $ 746,117 Source of funds: Utility Account Outside Resources: BRA, LCRA and City of Austin Impact: This project provides wastewater service to the southwest portion of town. Benefit: Efficient sewer service. Public Comment: N/A Sponsor: N/A INTERCEPTOR LINE ACQUISITION, CONSTRUCTION AND TRANSPORTATION SERVICE CONTRACT This "Interceptor Line Acquisition, Construction and Transportation Service Contract" (the "Service Agreement ") is entered into among the Brazos River Authority ( "BRA "), the Lower Colorado River Authority ( "LCRA'), the City of Round Rock ( "Round Rock ") and the City of Austin ( "Austin "). Round Rock and Austin are hereafter sometimes referred to as the "Customers." RECITALS BRA, LCRA, Austin and Round Rock are also parties, together with the City of Cedar Park ( "Cedar Park ") to that certain Wastewater Disposal Contract dated October 1, 2000 (the "Wastewater Disposal Contract ") pursuant to which BRA and LCRA, acting as an Alliance, provide regional wastewater disposal services to Round Rock, Cedar Park, Austin and LCRA itself from the Brushy Creek Regional Wastewater Disposal System (hereafter, the "System," as defined in the Wastewater Disposal Contract). The purpose of this Service Agreement is to provide for the construction, acquisition, maintenance and operation of those two certain wastewater interceptor lines and related facilities generally described on Exhibit A hereto (respectively, the "Southwest Interceptor Line" and the "Round Rock South Interceptor Line" or, collectively, the "Interceptor Lines ") to be connected with and flow to the System to provide wastewater transportation services to Round Rock and Austin but not to Cedar Park or LCRA. NOW, THEREFORE, IT IS HEREBY AGREED AMONG BRA, LCRA, ROUND ROCK AND AUSTIN AS FOLLOWS: Agreement Section 1. Purpose of Service Agreement. The purpose of this Service Agreement is to provide for construction, acquisition, maintenance and operation of the Interceptor Lines which are to be connected to and flow into the System but which will not benefit Cedar Park or LCRA and for which the parties agree Cedar Park and LCRA should not bear any cost responsibility. This Service Agreement does not amend or change in any way the Wastewater Disposal Contract or the rights and obligations of BRA, LCRA, Round Rock, Austin or Cedar Park thereunder. The Interceptor Lines shall not become part of the System unless and until BRA, LCRA, Round Rock, Cedar Park and Austin so agree. This Service Agreement is for Wastewater transportation services only, not Wastewater treatment and disposal services. Section 2. Definitions; Incorporation. Capitalized terms used herein have the meanings ascribed to them in the Wastewater Disposal Contract except as otherwise provided herein. The provisions of the Wastewater Disposal Contract are incorporated in this Service Agreement to the 1e- 01- 07- 026 - /4'E6 S: ! • extent applicable as provided by this Service Agreement; provided, however, Sections 1.01(b), (f), (g), (h), (ff), (jjj) and (mmin); 2.03; 2.04; 2.07; 3.01(6); 4.01(a); 5.04(b) and (e); Article VI; and 7.23 are inapplicable hereto. Section 3. Acquisition of Existing Portions of the Interceptor Lines. Contemporaneously with execution of this Service Agreement, LCRA and Round Rock are entering into that certain "Agreement for Acquisition of Wastewater System Assets (Southwest Interceptor Line and Round Rock South Interceptor Line)" (the "Interceptor Line Acquisition Agreement ") pursuant to which LCRA will acquire for the benefit of Austin and Round Rock certain existing portions of the Interceptor Lines currently owned by Round Rock. Section 4. Construction of Southwest Interceptor Line. LCRA agrees to construct and acquire the Southwest Interceptor Line and acquire appropriate easements or rights -of -way for the Southwest Interceptor Line in conformity with the requirements of Section 2.01 of the Wastewater Disposal Contract, including retaining the services of BRA to provide inspection during construction. All actions of LCRA, Round Rock and Austin heretofore undertaken or accomplished in connection with this Section 4 are hereby in all respects ratified, approved and confirmed by the parties. Notwithstanding anything herein to the contrary, the parties agree that the Southwest Interceptor Line may be constructed and acquired in phases. Section 5. Applicability of Provisions of Wastewater Disposal Contract. Notwithstanding the provisions of Section 1 of this Service Agreement that the Interceptor Lines shall not be part of the System, the parties agree nonetheless that the terms and provisions of the Wastewater Disposal Contract (other than those terms declared to be inapplicable pursuant to Section 2 hereof) shall be applicable to their rights and responsibilities in regard to the use, financing and operation of the Interceptor Lines such that as between them, the Interceptor Lines shall be considered as if they were part of the System to be owned by LCRA, operated by BRA, and used to provide Wastewater transportation services to Round Rock and Austin as Customers of the Interceptor Lines as if they were the "System" as defined in the Wastewater Disposal Contract; provided, however, Round Rock and Austin shall be the only "Customers" for the Reserved Capacity in the Interceptor Lines; shall be entitled to the portions of the Reserved Capacity of same as described in Exhibit B hereto; shall share 100% of the Annual Operation and Maintenance Expense Requirement of the Interceptor Lines on the basis of their respective flows into those lines pursuant to the methodology described in Section 5.05 of the Wastewater Disposal Contract; and shall share in the Annual Project Requirement for the Interceptor Lines on the basis described in Exhibit C hereto. Section 6. Commencement of Wastewater Transportation Services. Notwithstanding any other provisions of this Service Agreement, or the Wastewater Disposal Contract, BRA shall commence provision of Wastewater transportation services to Round Rock and Austin from the Southwest Interceptor Line and Round Rock South Interceptor Line upon acquisition of the existing portions of each of those lines from Round Rock pursuant to the Interceptor Line Acquisition Agreement. 2 2001. ATTEST: Section 7. Effective Date. This Service Agreement shall become effective as ofJuly 1, Section 8. Term of Service Agreement. This Service Agreement shall continue in force and effect from the Effective Date hereof for a period ending July 17, 2037, and thereafter, shall continue in effect until any Bonds, or Bonds issued to refund same, if any, have been paid in full. Round Rock and Austin hereunder shall have the right to the continued performance of services provided hereunder for the useful life of the Southwest Interceptor Line and the Round Rock South Interceptor Line to the extent of Round Rock's and Austin's Reserved Capacity in each of those lines after amortization of LCRA's investment in those facilities, upon payment of just and reasonable charges by them. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies have caused this Service Agreement to be duly executed in several counterparts, each of which shall constitute an original, all as of the 1" day ofJuly, 2001. By: 511,.;/..,21 C. V,. Name: M;c..A, Title: E %c MU& COwlit t BRAZOS RIVER AUTHORITY By: Philip Ford Title: General Manager LOWER COLORADO RIVER AUTHORITY By: Name: Roddy J. tfioss, P.E. Title: Executive Manager, Water and Wastewater Utilities 3 ATTEST: By: Name: Title: ATTEST: By: Name Title: By: 1 JDAN,t+IE LAND /557 any 1J4 ,eye. ATTEST: Name: B1E rrY G • 8.104.0 Title: AO Peer Y c, r Y c t E .f.e Exhibits: CITY OF RSUND ROCK B Mayor CITY OF AUSTIN By ger Chan ssistant Exhibit A - Interceptor Lines (including portions to be acquired from Round Rock and the two phases of the Southwest Interceptor Line to be constructed by LCRA). Exhibit B - Reserved Capacity Table for Interceptor Lines Exhibit C - Allocation Factors for Annual Project Requirement 4 Exhibit A Southwest Interceptor and Round Rock South Interceptor EXHIBIT A TO INTERCEPTOR LINE ACQUISITION, CONSTRUCTION AND TRANSPORTATION SERVICE CONTRACT Interceptor Line Austin Reserved Capacity Round Rock Reserved Capacity Southwest Interceptor Line 1412 LUEs ** All Other LUEs ** . Round Rock South Interceptor Line 1551 LUEs ** All Other LUEs ** EXHIBIT B Interceptor Line Acquisition, Construction and Transportation Service Contract RESERVED CAPACITIES* *Reserved Capacities in initial Interceptor Lines described on Exhibit A. Future Expansions to those Interceptor Lines beyond those described on Exhibit A will be agreed upon as the Expansions are designed. ** 1 LUE equals 350 gallons of Wastewater per day on a 30 -day average. 6 Interceptor Line EXHIBIT C Southwest Interceptor Line and Round Rock South Interceptor Line Acquisition, Construction and Transportation Service Contract Annual Project Requirement Allocation Percentages* Southwest Interceptor Line A. Acquired from Round Rock 100% 0% B. Constructed by LCRA 44.05% 55.95% Round Rock South Interceptor Line N /A % ** N /A % ** *Cost Shares in initial Interceptor Lines described on Exhibit A. Future Extensions to those Interceptor Lines beyond those shown on Exhibit A will be agreed upon as the Expansions are designed. * *Currently, no Annual Project Requirement to be allocated. Allocations will be agreed upon before any Expansions of the Round Rock South Interceptor Line are constructed. Austin Cost Share Round Rock Cost Share 7 SCANNED #1(.2. LAW OFFICES OF RONALD J. FREEMAN PHONE(512)451-6689 2304 Hancock, Suite 6 FAX (512) 453 -0865 Austin, Texas 78756 Mr. John Tresnicky City of Austin 114 West Seventh Norwood Tower PO Box 1546 Austin, TX 78767 -1546 Mr. Stephan Sheets Brown McCarroll & Oaks Hartline Sheets & Crossfield, P.C. 309 E. Main Street Round Rock, Texas 78664 -5246 RJF:jjs Enclosure cc: Jim Clarno. Madison Jechow August 23, 2001 )';t-r)" -''t 1'' e-mail TXWATERRES@aol.com (512) 797 -6649 MOBILE Re: Interceptor Line Acquisition, Construction and Transportation Service Contract Dear John and Steve: Enclosed are executed originals of the referenced agreement for your clients' files. By copy of this letter I am forwarding LCRA's executed original to Madison Jechow for LCRA's files. Very truly yours, Ronald J. Freeman