R-02-01-10-12F6 - 1/10/2002RESOLUTION NO. R- 02- O1- 10 -12F6
WHEREAS, the City of Round Rock has previously entered into a
Wastewater Disposal Contract ( "Contract ") with the Lower Colorado River
Authority for regional wastewater disposal services, and
WHEREAS, the City Council wishes to amend said Contract to allow
the Texas Water Development Board's participation in the project, 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 Amendment No. 1 to the Wastewater Disposal Contract
with the Lower Colorado River Authority, a copy of said amendment 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 10th day of Jan .ry, 2.02
ATTEST
City of Round Rock, Texas
I
CHRISTINE R. MARTINEZ, City Secretar
..00MH \WORLDO% \0: \"D
\R880LUTI \R20110F6. WPO/se
RO . STLU •, JR.,
yor
DRAFT December 11, 2001
AMENDMENT NO. 1 TO
WASTEWATER DISPOSAL CONTRACT
EXHIBIT
DRAFT December 11, 2001
AMENDMENT NO. 1 TO
WASTEWATER DISPOSAL CONTRACT
This "Amendment No. 1 to Wastewater Disposal Contract" (the "First Amendment ") is
entered into among the Brazos River Authority ("BRA"), the Lower Colorado River Authority
( "LCRA ") acting together pursuant to the Brazos Colorado Water Alliance (the "Alliance "), the
City of Round Rock ( "Round Rock "), the City of Cedar Park ( "Cedar Park ") and the City of
Austin ( "Austin "). All capitalized terms used in this First Amendment have the same meanings
as provided in the "Wastewater Disposal Contract," dated October 1, 2000, by and among the
same parties (the "Wastewater Disposal Contract ") unless the context otherwise indicates.
RECITALS
WHEREAS, the Wastewater Disposal Contract contemplates that LCRA will acquire,
construct, expand and own the System, and that BRA will operate and maintain the System, to
provide regional wastewater transportation, treatment and disposal services to the Customers.
WHEREAS, the Wastewater Disposal Contract requires LCRA to construct Phase II of
the System which is described in the Engineering Report to include the Contract 20 and Contract
21 Wastewater Interceptor Line segments (the "Contract 20/21 Wastewater Interceptor Line ").
WHEREAS, the parties to the Wastewater Disposal Contract have agreed that a portion
of the Project Costs of the Contract 20/21 Wastewater Interceptor Line should be paid for
according to an agreement between LCRA and the Texas Water Development Board (the
"TWDB ") pursuant to the authority of the TWDB and LCRA under Texas Water Code, Chapter
16, Subchapter E, for state participation in the System by the acquisition by the TWDB of an
undivided ownership interest in the Contract 20/21 Wastewater Interceptor Line.
WHEREAS, LCRA and TWDB contemporaneously with the effective date of this First
Amendment are entering into that certain "Master Agreement Between Texas Water
Development Board and Lower Colorado River Authority — Brushy Creek Regional Wastewater
System" (the "Master Agreement ") pursuant to which LCRA and TWDB will jointly construct
and finance the Contract 20/21 Wastewater Interceptor Line as provided in the Master
Agreement consistent with the terms of the Wastewater Disposal Contract and this First
Amendment.
WHEREAS, the parties desire to evidence in this First Amendment their approval of the
payment of a portion of the Contract 20/21 Wastewater Interceptor Line by TWDB participation
pursuant to the Master Agreement.
1
DRAFT December 11, 2001
WHEREAS, the Master Agreement also contemplates that TWDB will own Reserved
Capacity in the Contract 20/21 Wastewater Interceptor Line and, therefore, the relative Reserved
Capacities of the Customers in the Contract 20/21 Wastewater Interceptor Line need to be
revised accordingly, and the parties desire to do so pursuant to this First Amendment. NOW,
THEREFORE,
It is hereby agreed among BRA, LCRA, Round Rock, Cedar Park and Austin as follows:
1. The parties reaffirm the Wastewater Disposal Contract in all respects, and it shall
remain in full force and effect except as amended by this First Amendment. If
there is a conflict between the Wastewater Disposal Contract and this First
Amendment, this First Amendment shall prevail.
2. The term of this First Amendment is the same as the term of the Wastewater
Disposal Contract, and any renewals thereof as permitted therein.
3. The Reserved Capacities of the Customers set forth in Exhibit B of the
Wastewater Disposal Contract and the Engineering Report insofar as the Contract
20/21 Wastewater Interceptor Line is concerned are changed to reflect the
Reserved Capacities of the Customers and the TWDB as set forth on Exhibit A to
this First Amendment. Notwithstanding the foregoing, however, the original
Reserved Capacities of the Customers in Exhibit B of the Wastewater Disposal
Contract shall continue to be used to allocate the Annual Project Requirement for
the Capital Charges by LCRA.
4. LCRA is authorized, required and directed to purchase the TWDB's Reserved
Capacity in the Contract 20/21 Wastewater Interceptor Line from time to time as
permitted in the Master Agreement or as needed by the Customers. As LCRA
purchases the TWDB's Reserved Capacity, each Customer's Reserved Capacity
in the Contract 20/21 Wastewater Interceptor Line shall increase in direct
proportion to each other Customer's Reserved Capacity in that Line and LCRA
shall prepare and distribute a new Exhibit A to reflect each such increase.
Notwithstanding anything in Section 4.01(a) or any other part of the Wastewater
Disposal Contract to the contrary, until such time as LCRA has purchased all of
the TWDB's Reserved Capacity in the Contract 20/21 Wastewater Interceptor
Line, it is specifically agreed by the parties that regardless of their respective
Reserved Capacities in the Contract 20/21 Wastewater Interceptor Line as set
forth in Exhibit A, any Customer may discharge its Wastewater through the
Contract 20/21 Wastewater Interceptor Line in any amount that does not exceed
that Customer's original Reserved Capacity in the Contract 20/21 Wastewater
Interceptor Line as provided in Exhibit B of the Wastewater Disposal Contract.
2
DRAFT December 11, 2001
3
DRAFT December 11, 2001
ATTEST:
By:
Name:
Title:
ATTEST:
EXECUTED AND EFFECTIVE as of , 2001.
By:
Name:
Title:
BRAZOS RIVER AUTHORITY
By:
Name: Philip J. Ford
Title: General Manager
LOWER COLORADO RIVER AUTHORITY
By:
Name: Randy J. Goss, P.E.
Title: Executive Manager, Water and Wastewater
Utilities
4
DRAFT December 11, 2001
ATTEST:
Name:
Title: City Secretary
ATTEST:
By:
Name:
Title:
CITY OF ROUND ROCK
By:
Robert Stluka
Mayor
CITY OF CEDAR PARK
By:
Bob Young
Mayor
5
DRAFT December 11, 2001
ATTEST:
By:
Name:
Title:
121 I AMENDMENTNO I towwdc.wpd
CITY OF AUSTIN
By:
Name:
Title:
6
BRUSHY CREEK
REGIONAL WASTEWATER SYSTEM
CONTRACTS 20 & 21
GRAPHICS \C OUNCE AGENDA I ,EVS\ENGINEERINC \i1 .1 0 \BRU CREEK REGIONAL WASTEWATER VS RER
FINAL October 10, 2001
MASTER AGREEMENT
BETWEEN
TEXAS WATER DEVELOPMENT BOARD
AND
LOWER COLORADO RIVER AUTHORITY
BRUSHY CREEK REGIONAL WASTEWATER SYSTEM
TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS AND CONSTRUCTION 3
§1.1 DEFINITIONS 3
§1.2 TITLES AND HEADINGS 6
ARTICLE 2. STATE PARTICIPATION 6
§2.1 TWDB ACQUISITION OF OWNERSHIP 6
§2.2 VESTING AND NATURE OF TWDB OWNERSHIP 7
§2.3 CONVEYANCES 7
§2.4 CALCULATION OF TWDB OWNERSHIP INTEREST 7
§2.5 TAX - EXEMPT ASSURANCES 7
ARTICLE 3. PURCHASE OBLIGATION 8
§3.1 LCRA PURCHASE 8
§3.2 PLEDGE 8
§3.3 PRICE OF SALE 8
§3.4 SCHEDULE OF PAYMENTS 9
§3.5 EARLY PURCHASE 9
§3.6 LEASE OR PURCHASE UPON USE OF TWDB OWNERSHIP 10
§3.7 EXCLUSIVE RIGHT TO PURCHASE TWDB'S INTEREST 12
§3.8 OTHER SALE, TRANSFER OR LEASE OF TWDB INTEREST 12
§3.9 PURCHASE AND LEASE SCHEDULES 12
ARTICLE 4. PROCEDURES DURING CONSTRUCTION 13
§4.1 CONSTRUCTION SCHEDULE 13
§4.2 LCRA RESPONSIBILITIES 13
§4.3 SUPERVISION OF CONSTRUCTION 13
§4.4 TWDB INSPECTION 14
§4.5 DELIVERY OF TWDB FUNDS 14
§4.6 REPORTS COVERING CONSTRUCTION 14
§4.7 FINAL ACCOUNTING 14
ARTICLE 5. OPERATION AND MAINTENANCE 15
§5.1 OPERATION AND MAINTENANCE 15
§5.2 TWDB HELD HARMLESS 15
§5.3 BUDGETS AND REPORTS 15
§5.4 TWDB OPERATION AND MAINTENANCE 15
ARTICLE 6. SALE AND LEASE OF PROPERTY 16
§6.1 DISPOSAL AND ENCUMBRANCE OF PROJECT AND REVENUES 16
§6.2 LEASE OF LCRA PROPERTY 16
§6.3 TWDB APPROVAL OF SALES AND LEASES 16
§6.4 SALE OF CERTAIN ITEMS 16
ARTICLE 7. ACCOUNTABILITY AND METERING 17
§7.1 RATES AND CHARGES 17
§7.2 CONSTRUCTION FUND 17
§7.3 DETERMINING WASTEWATER USE 18
§7.4 ANNUAL AUDITS AND BUDGETS 18
ARTICLE 8. FURTHER COVENANTS 18
§8.1 COVENANT TO USE PROJECT 18
§8.2 CONTRACTS TO TWDB 18
§8.3 PROJECT EXPANSION 18
§8.4 ADDITIONAL CUSTOMERS 19
ARTICLE 9. LAWS GOVERNING THE AGREEMENT 19
§9.1 RULES AND APPLICATION INCORPORATED 19
§9.2 APPLICABLE LAW 19
§9.3 AMENDMENT 19
§9.4 EFFECTIVE DATE 20
MASTER AGREEMENT - BRUSHY CREEK REGIONAL WASTEWATER SYSTEM
THIS MASTER AGREEMENT ("AGREEMENT') is entered into between the Texas Water
Development Board ("TWDB") and the Lower Colorado River Authority ( "LCRA ") under the
authority of the Texas Water Code, Chapter 16, Subchapter E. This AGREEMENT relates to the
construction of, and acquisition by the TWDB of an ownership interest in, the Brushy Creek
Regional Wastewater System Contract 20/21 ( "Project "), and the subsequent purchase of the
TWDB's ownership interest in such facilities by LCRA.
By executing this AGREEMENT, TWDB and LCRA intend to define the rights and
responsibilities of TWDB and LCRA in the construction, acquisition, and purchase of the TWDB's
ownership interest in the EXCESS CAPACITY (hereinafter defined) of the PROJECT.
TWDB is an agency of the State of Texas, created pursuant to Article III, Section 49-c of the
Texas Constitution and operating according to Chapters 6, and 15 -17 of the Texas Water Code.
LCRA is a political subdivision of the State of Texas, operating pursuant to Chapter 74, Acts of the
64th Legislative, Regular Session, 1975, as amended.
LCRA has formed an alliance with the Brazos River Authority (`BRA"), the purpose of
which is to facilitate the planning and development of regional wastewater services for the
Williamson County area and other areas of mutual concern to BRA and the LCRA. As a direct result
of this agreement, the LCRA and BRA entered into contracts with Round Rock, Cedar Park, and
Austin, Brushy Creek MUD and Fem Bluff MUD to construct and operate the Brushy Creek
Regional Wastewater System in order to provide regional wastewater service in the Upper Brushy
Creek Watershed.
Portions of the Brushy Creek Regional Wastewater System have been or are currently being
constructed. The Brushy Creek Regional Wastewater Interceptor generally consists of a 17 -mile
gravity wastewater interceptor extending from the Cedar Park Wastewater Treatment Facility to the
1
Brushy Creek East Regional Wastewater Treatment Plant located adjacent to State Highway 79 east
of Round Rock. The downstream segment of the project extending from the Brushy Creek East
Regional Wastewater Treatment Facility to the Lake Creek interceptor was completed as a part of
Contract 6. Upstream segments extending from the Cedar Park Treatment Facility to near Dry Fork
Creek have been or are currently being constructed as a part of Contracts 1, 2, and 3. The Brushy
Creek Regional Wastewater System customers have now authorized LCRA to proceed with design
and construction of the PROJECT. The PROJECT will connect the upstream and downstream
wastewater interceptor lines installed in other projects and will complete the Brushy Creek Regional
Wastewater Interceptor.
On July 18, 2001, TWDB committed to provide up to $14,040,000 from the State
Participation Account of the Texas Water Development Funds to build EXCESS CAPACITY that
will provide optimum development of the PROJECT as a regional system. Funds provided through
the State Participation Account will entitle TWDB to an undivided prorated interest of up to fifty
percent (50 %) in the PROJECT. Pursuant to Texas Water Code § 16.196, TWDB grants to LCRA
a preferential right to purchase the TWDB's undivided ownership interest in the PROJECT. As
specified in this AGREEMENT, LCRA, a political subdivision of the State of Texas, agrees to
purchase TWDB's ownership interest in the PROJECT from the proceeds of a future bond issue,
from other revenue, or from any other lawful source of funds. Pursuant to this AGREEMENT, the
TWDB and LCRA agree to a specified schedule of payments and to methods for LCRA to lease or
purchase TWDB's ownership interest if LCRA begins using such ownership interest before ten years
from the effective date of this AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements as
set forth in this AGREEMENT, and in contemplation of and in accordance with the applicable laws
of the State of Texas, LCRA, acting herein by and through its undersigned officer as duly authorized
by a resolution of its Board of Directors, and the TWDB, acting herein by and through its
2
undersigned officer, as duly authorized by a resolution of its Board, enter into this AGREEMENT
and mutually agree as follows:
ARTICLE 1. DEFINITIONS AND CONSTRUCTION
§1.1 DEFINITIONS. Words and phrases as used in this AGREEMENT shall have the following
meanings:
(1) "APPLICATION" means LCRA's application to TWDB for financial assistance, together
with attachments and all amendments. The APPLICATION is incorporated into and made
a part of this AGREEMENT and attached hereto as Exhibit "D."
(2) "BRA" means Brazos River Authority.
(3)
"CONSTRUCTION COSTS" means costs of the PROJECT associated with its construction,
and all other costs and expenditures which under standard principles of accounting would
constitute a capital cost of the PROJECT, including specifically but not limited to: the cost
of engineering design, supervision and inspection; the cost of testing laboratories and other
professional services; administrative costs; permit costs; abstractors' costs; legal fees and
arbitration and court fees associated with construction; the cost of constructing the
transmission facilities; the cost of acquiring by condemnation or any means necessary all
lands and interests in land for the PROJECT, including damages to land and property; and
the cost of security and physical protection of the PROJECT. "CONSTRUCTION COSTS"
does not include any capitalized interest or reserve funds.
(4) "CONSTRUCTION FUND" means a separate bank account created under §7.2 for the
purpose of paying and accounting for expenditures associated with the construction of the
PROJECT.
3
(5)
(6) "DATE(S) OF ACQUISITION" means the date(s) that TWDB delivers funds to LCRA for
acquisition of an undivided interest in the PROJECT.
(
"CUSTOMERS" means collectively,
(a) Round Rock, Cedar Park, Austin, Brushy Creek Municipal Utility District, and Fem
Bluff Municipal Utility District, all of which have signed contracts with LCRA and
BRA for wastewater service made available to them through the PROJECT
AGREEMENTS; and/or;
(b) any entity other than the CUSTOMERS listed in subsection 1.1(5)(a), above, with
which LCRA executes a contract similar to the PROJECT AGREEMENTS for
wastewater service through the PROJECT.
"ENGINEERING REPORT' means the report by PBS&J, on behalf of the LCRA, entitled,
"BRA/LCRA Alliance Brushy Creek Regional Wastewater System Engineering Report",
dated October 2000.
(8) "EXCESS CAPACITY" means the difference between the foreseeable needs of the area to
be served by the useful life of the PROJECT, as described in the ENGINEERING REPORT,
and the projected needs for the area to be served by the PROJECT during the first ten years
of operation. EXCESS CAPACITY is calculated by subtracting a number representing the
projected quantity of wastewater to be received and treated in the tenth (10th) year of
operation, in million gallons a day ( "MGD "), from a number representing the total capacity
of the PROJECT based on the optimal PROJECT design, expressed in MGD, as set forth in
the ENGINEERING REPORT.
(9) "FINAL ENGINEERING DESIGN REPORT' — the report to be prepared by PBS&J, on
behalf of LCRA, detailing final design of the project.
4
(10) "LCRA" means the Lower Colorado River Authority or its successors or assigns which
succeed it as to any rights, powers or duties under this AGREEMENT.
(11) "LCRA REVENUES" means the Pledged Revenues of LCRA as defined and provided for
in its Resolution Number 99 -165b Master Resolution Establishing the Lower Colorado River
Authority Revenue Financing Program, and amendments thereto.
(12) "PROJECT" means the Brushy Creek Regional Wastewater System Contract 20/21
wastewater interceptor line and appurtenances which will connect the upstream and
downstream wastewater interceptor lines installed in other projects and will complete the
Brushy Creek Regional Wastewater Interceptor , all as generally set forth in the
ENGINEERING REPORT, attached hereto as Exhibit E. It is expressly understood by
TWDB and LCRA that LCRA will construct the PROJECT in order to provide sufficient
capacity to serve the existing ten -year needs of the CUSTOMERS and to provide for
EXCESS CAPACITY, as defined in §1.1(7) of this AGREEMENT, in order to allow for
state participation in the PROJECT by the TWDB and to achieve optimum regional
development as required by statute and by TWDB rules.
(13) "PROJECT ENGINEER" means LCRA's independent consulting engineer, PBS&J, Austin,
Texas, or its successor.
(14) "PROJECT AGREEMENT(S)" means the wastewater service agreements between LCRA,
BRA and the Customers as follows: (1) the wastewater service agreement with Austin,
Round Rock, Cedar Park, LCRA and BRA on behalf of Brushy Creek Municipal District and
Fem Bluff Municipal Utility District, dated October 1, 2000, as amended; (2) the wastewater
service agreement among LCRA, BRA and Fern Bluff Municipal Utility District , dated
effective as of October 1, 2000, as amended; and (3) the wastewater service agreement
among LCRA, BRA and Brushy Creek Municipal Utility District, dated effective as of
5
October 1, 2000, as amended; which are incorporated into this Agreement as Exhibits A, B
and C.
(15) "TWDB" means Texas Water Development Board or any other board, commission or agency
which succeeds it as to any rights, powers or duties under this AGREEMENT.
(16) "TWDB COST OF ACQUISITION" means the total of the payments made by TWDB to
LCRA for purchase of an undivided interest in the PROJECT pursuant to this
AGREEMENT, less any payments made by LCRA for purchases of TWDB's interest by
LCRA.
(17) "TWDB RULES" means Rules and Regulations of the TWDB, as amended.
§1.2 TITLES AND HEADINGS. The titles and headings of the articles and sections of this
AGREEMENT have been inserted for convenience of reference only and are not to be considered
a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof and
shall never be considered or given any effect in construing this AGREEMENT or any provision
hereof or in ascertaining intent, if any question of intent should arise.
ARTICLE 2. STATE PARTICIPATION
§2.1 TWDB ACQUISITION OF OWNERSHIP. TWDB agrees to participate by acquiring an
undivided interest of up to fifty percent (50 %) in the PROJECT as a whole, but not to exceed
$14,040,000. It is estimated that the CONSTRUCTION COSTS will be $28,309,589 and that
TWDB's undivided ownership interest will cost $14,040,000 to construct. After the PROJECT is
certified as complete by the PROJECT ENGINEER, TWDB and LCRA shall execute any necessary
documents to adjust TWDB's percentage of undivided ownership interest in the PROJECT.
6
TWDB's percentage of ownership shall be determined by dividing the TWDB COST OF
ACQUISITION by CONSTRUCTION COSTS.
§2.2 VESTING AND NATURE OF TWDB OWNERSHIP. Upon delivery of funds for its share of
the CONSTRUCTION COST by TWDB, there is vested in TWDB an undivided ownership interest
in the PROJECT and the right to use the PROJECT, to the extent of the TWDB's undivided interest,
together with an accompanying undivided ownership right in all applicable operating permits with
respect to the PROJECT.
§2.3 CONVEYANCES. LCRA will execute any conveyances and assignments which may be
necessary to evidence the undivided interest in title to the PROJECT in TWDB.
§2.4 CALCULATION OF TWDB OWNERSHIP INTEREST. TWDB's total undivided ownership
interest at any time shall be calculated by dividing TWDB COST OF ACQUISITION by the
CONSTRUCTION COSTS.
§2.5 TAX - EXEMPT ASSURANCES. TWDB and LCRA agree that the TWDB and LCRA intend
to finance the acquisition of their respective interests in the PROJECT by use of the proceeds of tax -
exempt obligations in compliance with Section 103(a) of the Internal Revenue Code of 1986, as
amended and the regulations issued thereunder. The TWDB and LCRA hereby agree to take such
action to assure, or to refrain from such action which would adversely affect, the excludability from
gross income for federal income tax purposes of the interest payable on such obligations to the
owners thereof. The TWDB and LCRA further agree that the proceeds of their respective
obligations issued to fund construction costs of the PROJECT will not be used in a manner that will
cause the obligations to be "private activity bonds." Additionally, at each DATE(S) OF
ACQUISITION, LCRA must submit a tax- exempt opinion of a nationally- recognized bond counsel
selected by LCRA and acceptable to TWDB regarding the use of proceeds under this
AGREEMENT.
7
ARTICLE 3. PURCHASE OBLIGATION
§3.1 LCRA PURCHASE. LCRA will purchase from time to time, in installments, TWDB's
ownership interest in the PROJECT to the end that the TWDB, at the earliest possible date, may fully
recover its investment therein.
§3.2 PLEDGE. In order to secure the ultimate purchase by LCRA of TWDB's ownership interest
in the PROJECT, LCRA pledges to the TWDB as security for the payments hereunder, the LCRA
REVENUES.
§3.3 PRICE OF SALE. TWDB agrees to sell its ownership interest to LCRA at the following price,
as established by §16.186(b) of the Texas Water Code, to-wit: the sum of the TWDB COST OF
ACQUISITION plus an amount of interest calculated by multiplying the lending rate in effect at the
DATE(S) OF ACQUISITION (and established by TWDB upon sale of its bonds used for the
acquisition) by the amount of TWDB money disbursed for the acquisition times the number of years
and fraction of a year from the DATES OF ACQUISITION to the date or dates of the sale or transfer
of any portion of TWDB's ownership interest in the PROJECT to LCRA, plus TWDB's cost, if any,
of operating and maintaining the PROJECT from the DATE(S) OF ACQUISITION to the date of
such purchase by LCRA, less any payments received by TWDB from the lease or other use of the
TWDB's undivided interest in the PROJECT. For purposes of this section, the dates of sale to
LCRA shall be the dates LCRA provides payment to TWDB to acquire part or all of the TWDB
ownership interest in the PROJECT. After all accrued interest under Schedule "A" has been paid,
LCRA's scheduled payments of principal under Schedule "A" or LCRA's partial purchases of
TWDB's ownership interest made pursuant to § §3.4 or 3.5 of this AGREEMENT shall constitute
purchase of a portion of the TWDB's ownership interest, such portion to be calculated by dividing
such principal payment by the TWDB COST OF ACQUISITION, provided LCRA also pays the
same proportion of the TWDB's cost, if any, of operating and maintaining the PROJECT to the date
of each purchase. LCRA may select the portion(s) of Schedule "A" or any lease payment schedule
8
calculated pursuant to the terms of Texas Water Code §16.189 and the provisions of this
AGREEMENT against which any payments by LCRA may apply. If LCRA does not designate the
portion(s) against which payments shall apply, the portion(s) outstanding for the longest period of
time will be used. The lending rate in effect at each DATE(S) OF ACQUISITION shall be based
upon the TWDB's adopted methodology for computing such rates.
Interest will accrue on outstanding principal based upon simple interest rate calculation on a basis
of 30-day months and 360 -day years.
§3.4 SCHEDULE OF PAYMENTS. LCRA agrees to purchase the TWDB's ownership interest in
the PROJECT beginning with the first scheduled principal payment and in accordance with all
subsequent scheduled principal payments on Schedule "A" of this AGREEMENT and any revisions
made thereto pursuant to §3.9 of this AGREEMENT. LCRA also agrees to make scheduled interest
payments prior to the first scheduled principal payment as provided on Schedule "A" and any
revisions thereto, the first payment of which will be May 15, 2002. hi exchange for having the
exclusive right to purchase the TWDB's ownership interest in the PROJECT and the right to
repurchase such interest according to Schedule "A" or lease such interest according to §3.6 of this
AGREEMENT, LCRA agrees to pay all deferred interest and accrued interest attributed to the
PROJECT prior to the transfer of any ownership interest.
§3.5 EARLY PURCHASE. Schedule "A" notwithstanding, LCRA retains the option to purchase
all or a portion of the TWDB's ownership interest associated with any particular DATE(S) OF
ACQUISITION on or after ten years from the DATE(S) OF ACQUISITION of that portion of
TWDB's ownership interest. Early purchases may be made no more than once a year, unless waived
by the TWDB. Purchases under this Section by LCRA will be made in minimum increments of
$5,000.
9
§3.6 LEASE OR PURCHASE UPON USE OF TWDB OWNERSHIP.
(1) USE PRIOR TO DATE EARLY PURCHASE ALLOWED. In the event LCRA begins using
any portion of the TWDB's ownership interest in the PROJECT prior to the dates under §3.4
of this AGREEMENT upon which LCRA is allowed an early purchase of portions of the
TWDB's ownership interest, TWDB agrees to, and LCRA shall, either: (1) lease from
TWDB that portion of the TWDB's ownership interest which LCRA is using in accordance
with *3.6(5); or (2) pay money, or upon approval of TWDB, issue revenue bonds to the
TWDB as consideration to purchase that portion of the TWDB's ownership interest that
LCRA is using.
(2) USE AFTER EARLY PURCHASE ALLOWED. In the event LCRA begins using any
portion of the TWDB's ownership interest in the PROJECT after the dates under §3.5 of this
AGREEMENT upon which LCRA is allowed an early purchase of portions of the TWDB's
ownership interest, TWDB agrees to, and LCRA will either: (1) lease from TWDB that
portion of the TWDB's ownership interest which LCRA is using in accordance with §3.6(5);
(2) upon approval of TWDB, issue revenue bonds to the TWDB as consideration to purchase
that portion of the TWDB's ownership interest that LCRA is using, or (3) purchase the
TWDB's ownership interest with money.
(3)
DETERMINATION OF LCRA USE OF TWDB OWNERSHIP. LCRA shall be considered
to be using a portion of the TWDB'S ownership interest in the PROJECT when LCRA's use
of the PROJECT's capacity between the preceding July 1 through the following June 30 of
any twelve month period exceeds a specified quantity expressed as gallons of wastewater as
determined by the FINAL ENGINEERING DESIGN REPORT. The annual usage shall be
the combined flow of all wastewater deliveries metered through the PROJECT by LCRA
pursuant to §7.3. LCRA shall report, to the TWDB, within 135 days after a 12 -month period
ending April 30 of each year, the actual use of the PROJECT's capacity during the
preceding May 1 through the following April 30 twelve -month period. Lease payments,
10
determined pursuant to §3.6(5), shall be made on each May 15 immediately following a
calculation showing that LCRA has used a portion of the TWDB's ownership interest, as
such interest is defined in §2.4 of this AGREEMENT.
(4) PROVISIONS RELATING TO PURCHASE USING REVENUE BONDS AS
CONSIDERATION. If LCRA issues revenue bonds to the TWDB as consideration to
purchase all or a part of the TWDB's ownership interest in the PROJECT, the principal
amount of the revenue bonds shall be equal to the price for purchasing all or a portion of
such ownership interest. The revenue bonds must be non - callable prior to the dates under
§3.5 of this AGREEMENT upon which LCRA is allowed an early purchase without penalty
of portions of the TWDB's ownership interest in the PROJECT. The interest rates on
revenue bonds used by LCRA as consideration for an early purchase of TWDB's ownership
interest will be identical to the lending rates associated with acquisition of TWDB ownership
interest as established in §3.3 of this AGREEMENT and reflected in Schedule "A." Terms
and maturities of such revenue bonds will be subject to TWDB approval at the time of
purchase.
(5) LEASE PAYMENTS. If LCRA leases all or a portion of TWDB's ownership interest in the
PROJECT, the lease payments will be the proportionate share that the percentage of LCRA's
use of TWDB's ownership interest bears to a lease payment schedule to be determined in
accordance with the applicable provisions of Article 3 of this AGREEMENT, and §16.189
of the Texas Water Code, or the payment amount in Schedule "A," whichever is greater. As
required by §16.189 of the Texas Water Code, such lease payment under this AGREEMENT
is calculated to ensure that any such lease payment shall not be less than the proportionate
share that the percentage of use bears to the annual principal and interest requirements
attributable to the debt incurred by the TWDB in acquiring its share of the PROJECT.
TWDB finds that it is appropriate, for the purposes of computing the annual principal and
interest requirements associated with TWDB funds used to purchase an interest in the
PROJECT, which funds are derived from the State Participation Account of the Texas Water
11
Development Funds, to use the lending rate(s) in effect for at each
DATE(S) OF ACQUISITION.
§3.7 EXCLUSIVE RIGHT TO PURCHASE TWDB'S INTEREST. Pursuant to this AGREEMENT,
LCRA will have an exclusive right to purchase TWDB's undivided ownership interest in the
PROJECT so long as LCRA remains in compliance with the terms of this AGREEMENT.
§3.8 OTHER SALE, TRANSFER OR LEASE OF TWDB INTEREST. During the term of this
AGREEMENT, so long as LCRA is making payments according to Schedule "A" and meeting all
other obligations under this AGREEMENT, TWDB may sell, transfer or lease its ownership interest
in the PROJECT as defined by §2.4 of this AGREEMENT, only with the prior written consent of
LCRA.
§3.9 PURCHASE AND LEASE SCHEDULES.
(1) PURCHASES - SCHEDULE "A." The schedule for LCRA's purchase of TWDB's
ownership interest in the PROJECT is attached as Schedule "A" and is incorporated herein.
The TWDB and LCRA agree that after each DATE(S) OF ACQUISITION by TWDB,
Schedule "A" and any lease payment schedule calculated pursuant to the terms of this
AGREEMENT will be amended to reflect the payment schedule associated with purchase
or lease of such interest acquired by TWDB. In addition, at each purchase of TWDB's
ownership interest by LCRA pursuant to §3.5 or §3.6 of this AGREEMENT, the schedule
of payments in Schedule "A" will be amended to reflect the reduction in the TWDB's
ownership interest in the PROJECT.
(2) LEASES. The schedule for LCRA's lease payments for the use of TWDB's ownership
interest in the PROJECT will be calculated pursuant to Texas Water Code §16.189 and the
terms of this AGREEMENT. The TWDB and LCRA agree that after each lease of the
TWDB's ownership interest by LCRA pursuant to §3.6 of this AGREEMENT, the schedule
12
(3)
of payments established in Schedule "A" will be amended to credit each lease payment by
LCRA as follows: first to deferred interest, then to current interest and then to principal.
REVISIONS TO SCHEDULE "A." Revisions to Schedule "A," and any lease payment
schedule calculated pursuant to Texas Water Code §16.189 and this AGREEMENT, shall
be dated and signed by a representative of the TWDB's Executive Administrator and by an
authorized representative of LCRA to indicate agreement to the revisions.
ARTICLE 4. PROCEDURES DURING CONSTRUCTION
§4.1 CONSTRUCTION SCHEDULE. LCRA shall proceed with the conduct of all studies and
planning in an expeditious manner, and provide for construction and operation of the PROJECT on
a schedule consistent with the PROJECT AGREEMENTS.
§4.2 LCRA RESPONSIBILITIES. LCRA shall perform the duties and functions required of it and
governing its operations, including such provisions of law and the PROJECT AGREEMENTS with
the CUSTOMERS, as may relate to bidding, awarding of contracts, acquisition of land and
relocation of improvements and shall provide such personnel as may be necessary to secure and
protect the property and facilities as acquired and constructed in connection with the PROJECT.
§4.3 SUPERVISION OF CONSTRUCTION. During the construction of the PROJECT, LCRA shall
provide for adequate supervision of the PROJECT to assure that all work covered by this
AGREEMENT is performed in a satisfactory manner in accordance with final plans and
specifications and approved change orders and in accordance with sound engineering principles and
practices. LCRA may delegate the supervision of the construction of the PROJECT to the BRA.
13
§4.4 TWDB INSPECTION. TWDB or its authorized agent shall have the right to inspect
construction of the PROJECT at any time to assure compliance with the final plans and
specifications. The inspections shall not subject TWDB or the State of Texas to any claims or
actions for damages.
§4.5 DELIVERY OF TWDB FUNDS. Subject to the availability of funds, TWDB shall deliver to
LCRA an amount of funds up to 50% of the projected CONSTRUCTION COSTS, but not more than
$14,040,000, after LCRA has provided the TWDB with information, satisfactory to the Development
Fund Manager of TWDB, that it has met all prerequisites for the release of TWDB funds required
by Chapter 16 of the Texas Water Code relating to the release of state funds.
§4.6 REPORTS COVERING CONSTRUCTION. After delivery of funds to LCRA by TWDB,
LCRA or BRA shall prepare and file with TWDB quarterly reports on the status of the PROJECT
construction and PROJECT land acquisition.
§4.7 FINAL ACCOUNTING. LCRA shall provide TWDB a final accounting of all
CONSTRUCTION COSTS and an evaluation of PROJECT capacity within six months of PROJECT
completion. If after such final accounting the calculation of TWDB's ownership interest under §2.4
exceeds 50%, LCRA shall remit to TWDB the amount necessary to reduce TWDB's ownership
interest to the lesser of 50% or $14,040,000 and Schedule "A" and any lease payment schedule
calculated pursuant to the terms of this AGREEMENT shall be amended to so reflect. Any revisions
of PROJECT capacity or TWDB ownership interest pursuant to this section, shall be dated and
signed by a representative of the TWDB's Executive Administrator and by an authorized
representative of LCRA to indicate agreement to the revisions.
14
ARTICLE 5. OPERATION AND MAINTENANCE
§5.1 OPERATION AND MAINTENANCE. It is understood and agreed by the parties to this
AGREEMENT that LCRA, or its designee, BRA, will be responsible for the operation and
maintenance of the PROJECT and no requirement shall be made of TWDB to share in this
responsibility or in the cost. LCRA shall take whatever measures are reasonable and prudent to
insure that the PROJECT is operated efficiently and in accordance with the laws creating and
goveming it and the general laws of the State of Texas. LCRA binds itself to take such action as
may be necessary to insure that the PROJECT is adequately maintained and protected, and shall keep
in good and operable state of repair the physical properties comprising the PROJECT.
§5.2 TWDB HELD HARMLESS To the extent permitted by law, LCRA agrees to hold TWDB and
the State of Texas harmless and free of all costs or liability for any and all claims for injuries to
persons or property arising out of or incurred in the course of construction, maintenance and
operation of the PROJECT.
§5.3 BUDGETS AND REPORTS. LCRA shall provide TWDB with a copy of its annual budget,
keep accounts, have audits made by an independent certified public accountant or a firm of
independent certified public accountants and furnish reports and copies to TWDB. The annual
budget shall reflect PROJECT maintenance and operation expenses anticipated for the next ensuing
year. LCRA agrees to deliver copies of all minutes, monthly operating statements, contracts, leases,
deeds, audit reports, and other documents concerning the operation and maintenance of the
PROJECT upon request of TWDB.
§5.4 TWDB OPERATION AND MAINTENANCE. If LCRA fails at any time to operate and
maintain the PROJECT as provided in this Article, or in any manner fails to comply with any
provisions of this AGREEMENT, TWDB, in addition to other legal remedies, may take over and
operate and maintain the PROJECT, or cause such to be done for the benefit of TWDB. LCRA shall
15
remain liable for any expenditures made by TWDB with respect to operation and maintenance of the
PROJECT. TWDB shall give 30 -days prior written notice to LCRA of intent to take over and
operate and maintain the PROJECT so as to provide LCRA with opportunity to remedy the
problem(s) identified by TWDB.
ARTICLE 6. SALE AND LEASE OF PROPERTY
§6.1 DISPOSAL AND ENCUMBRANCE OF PROJECT AND REVENUES. During the time that
TWDB owns an undivided interest in the PROJECT, LCRA will not sell, lease, or otherwise dispose
of or encumber any part of the PROJECT, except as permitted herein.
§6.2 LEASE OF LCRA PROPERTY. Subject to State law, LCRA may lease any of its property for
any purpose, if such lease or the use of such lands will not be detrimental to the operation and
maintenance of the PROJECT, as determined by LCRA. No lease shall be made which will result
in any damage to or substantial diminution of the value of other property of LCRA related to use and
operation of PROJECT.
§6.3 TWDB APPROVAL OF SALES AND LEASES. Except for the PROJECT AGREEMENTS
and short term leases of less than two years, any lease or sale of real property in which TWDB has
an interest under this AGREEMENT (i.e., the PROJECT) shall require prior approval of TWDB.
Nothing contained in this AGREEMENT shall be regarded or construed as creating a lien or
encumbrance against the title to lands now or hereafter vested in LCRA insofar as the rights of third
parties may be concerned. LCRA does, however, hereby covenant that it shall not sell or otherwise
relinquish full right to the use of all lands and facilities acquired and necessary for the construction
and operation of the PROJECT.
§6.4 SALE OF CERTAIN ITEMS. LCRA may from time to time sell any machinery, fixtures,
apparatus, tools, instruments, or other movable property and any materials used in connection with
16
the PROJECT, if LCRA shall determine that such articles are no longer needed or are no longer
useful in connection with the operation and maintenance of the PROJECT. LCRA may from time
to time sell such personal property that is not needed or serves no useful purpose in connection with
the maintenance and operation of the PROJECT. If the costs of such items were included as
CONSTRUCTION COSTS, then the value received from the sale shall be deducted from total
CONSTRUCTION COSTS, provided that the ownership interest retained by the TWDB in the value
received from the sale is remitted to the TWDB, unless otherwise agreed to by the LCRA and the
TWDB.
§7.1 RATES AND CHARGES. LCRA covenants that it will establish rates and charges which will
produce LCRA REVENUES not less than the amounts required:
(1) to pay the maintenance and operating expenses of the PROJECT;
(2) to pay debt service on LCRA debt sold to finance the PROJECT; and
(3)
ARTICLE 7. ACCOUNTABILITY AND METERING
to provide sufficient funds on a timely basis to enable the purchase of TWDB's interest in
the PROJECT in accordance with the terms and schedule provided for in this
AGREEMENT, and, specifically, to provide for amortization of any debt that may be issued
for such purchase by LCRA in the future.
§7.2 CONSTRUCTION FUND. Upon receipt of State Participation monies from TWDB, LCRA
will deposit the monies in the CONSTRUCTION FUND for the Brushy Creek System with one of
its depository banks. The CONSTRUCTION FUND will be used for the purpose of paying
CONSTRUCTION COSTS.
17
§7.3 DETERMINING WASTEWATER USE. LCRA shall determine a method to measure or
calculate flows through the PROJECT. TWDB shall have the right to approve the method developed
by LCRA. The measurement or calculation shall be done during the measurement period as
provided in §3.6(3).
§7.4 ANNUAL AUDITS AND BUDGETS. LCRA will submit to TWDB for each fiscal year
prepared by an independent certified public accountant or an independent firm of certified public
accountants, annual audits for LCRA. TWDB reserves the right to require, and LCRA agrees to
provide, annual budgets prepared by the governing board of LCRA should TWDB determine that
it is necessary.
ARTICLE 8. FURTHER COVENANTS
§8.1 COVENANT TO USE PROJECT. LCRA covenants that it will not provide wastewater
services to CUSTOMERS through any facility other than the PROJECT and other parts of the
Brushy Creek Regional Wastewater System (except through any other existing contractual
obligations of LCRA) to the extent that the PROJECT and other parts of the Brushy Creek Regional
Wastewater System can supply such wastewater services.
§8.2 CONTRACTS TO TWDB. LCRA will submit to TWDB copies of all new or amended
contracts for wastewater services from the PROJECT.
§8.3 PROJECT EXPANSION. LCRA will submit to TWDB for approval any plan for future
expansion of the PROJECT that will commence before LCRA has purchased all of the TWDB
interest in the PROJECT. TWDB will not unreasonably withhold approval of said plan submitted
by LCRA.
18
§8.4. ADDITIONAL CUSTOMERS. LCRA may contract with parties who are not now
CUSTOMERS for wastewater services through the use and operation of the PROJECT, provided
that such service can be provided without impairment or diminution of LCRA's ability to meet its
obligations to TWDB provided herein.
ARTICLE 9. LAWS GOVERNING THE AGREEMENT
§9.1 RULES AND APPLICATION INCORPORATED. TWDB and LCRA agree that TWDB
RULES and the APPLICATION of LCRA, as finally approved by TWDB, are incorporated herein
as a part of this AGREEMENT, and LCRA agrees to be bound by TWDB RULES and the
representations in its APPLICATION.
§9.2 APPLICABLE LAW. It is expressly understood by and between the parties hereto that the
provisions of this AGREEMENT are subject to the applicable provisions of the Constitution and
laws of the State of Texas. The parties hereto reserve all rights at law and in equity to enforce the
performance of this AGREEMENT, and each respectively covenants to exercise all such rights to
the extent necessary to perform or cure any default on the part of the other.
§9.3 AMENDMENT. This AGREEMENT may be amended by agreement of TWDB and LCRA
in written form. Any such amendment or extension shall be executed in the same manner as this
AGREEMENT was originally executed, and the Attorney General of the State of Texas shall
approve the legality of said amendment and the resolution of the TWDB authorizing the amendment.
19
§9.4 EFFECTIVE DATE. This AGREEMENT shall become effective upon execution by the parties
and approval by the Attorney General of the State of Texas as to legality, and shall remain in full
force and effect until the entire TWDB ownership interest in the PROJECT has been purchased.
EXECUTED as of this
TEXAS WATER DEVELOPMENT BOARD
Chairman
ATTEST:
Executive Administrator
EXECUTED as of this
LOWER COLORADO RIVER AUTHORITY
General Manager
ATTEST:
Assistant Secretary
day of 2001.
day of 2001.
20
By:
Approved as to Legality:
John Comyn, Attorney General
State of Texas
Assistant Attorney General
DATE: January 10, 2002
SUBJECT: City Council Meeting - January 4, 2002
ITEM: 12.F.6. Consider a resolution authorizing the Mayor to execute
Amendment No. 1 to the Wastewater Disposal Contract with the
Lower Colorado River Authority.
Resource: Jim Nuse, Director of Public Works
Don Rundell, Chief Utility Engineer
History: Pursuant to recommendations of the Technical Review Committee and Financial
Review Committee, the Lower Colorado River Authority (LCRA) made
application to the Texas Water Development Board (TWDB) for funding for a
portion of the cost of Contracts 20 and 21 of the Brushy Creek Regional
Wastewater System through their State Participation Fund.
On July 16, 2001, the Board of Directors of the TWDB committed up to
$15,000,000.00 to help fund Contracts 20 and 21. In order to take advantage of
this form of financing, the LCRA must enter into a Master Agreement with
TWDB.
Staff requests approval of this amendment so that the LCRA can enter into the
Master Agreement with TWDB and complete the bid and aware process for
contracts 20 and 21.
Funding:
Cost: NIA
Source of funds: N/A
Outside Resources: LCRA
Impact/Benefit: Reduces City of Round Rock's required funding.
Public Comment: N /A.
Sponsor: N/A
City of Austin
Law Department
Norwood Tower, 114 West Seventh Street, P.O. Box 1546
Austin, Texas 78767 -1546
(512) 974-2268
Writer's Direct Line Writer's Fax Line
512 / 974 -2159
September 13, 2001
Ron Freeman
Attomey at Law
2304 Hancock
Suite No. 6
Austin, Texas 78756
Re: Brushy Creek Regional WW System; Amendment No. 1 to Wastewater Disposal
Agreement.
Dear Mr. Freeman:
Enclosed for execution by the authorized representative of LCRA, BRA and the City of Round Rock
are ten (10) duplicate originals of Amendment No. 1 to the Brushy Creek Regional Wastewater
Disposal Agreement signed by the authorized representatives of Cedar Park and the City of Austin.
Please circulate the duplicate originals for execution by the authorized representatives of LCRA,
BRA and Round Rock. Upon final execution by all parties, please return two (2) of the fully
executed duplicate originals to me.
Thank you again for your assistance in concluding this matter. Please let me know if you have
any questions concerning the above.
Sincerely,
Jivu
John M. Tresnicky
Assistant City Attorney
JMT /jmt
cc: C. Lippe
M. Erdmann
512 / 974 -2912
AMENDMENT NO. 1 TO
WASTEWATER DISPOSAL CONTRACT
AMENDMENT NO. 1 TO
WASTEWATER DISPOSAL CONTRACT
This "Amendment No. 1 to Wastewater Disposal Contract" (the "First Amendment ") is
entered into among the Brazos River Authority ("BRA"), the Lower Colorado River Authority
( "LCRA ") acting together pursuant to the Brazos Colorado Water Alliance (the "Alliance "), the
City of Round Rock ( "Round Rock "), the City of Cedar Park ( "Cedar Park") and the City of
Austin ("Austin "). All capitalized terms used in this First Amendment have the same meanings as
provided in the "Wastewater Disposal Contract," dated October 1, 2000, by and among the same
parties (the "Wastewater Disposal Contract ") unless the context otherwise indicates.
RECITALS
WHEREAS, the Wastewater Disposal Contract contemplates that LCRA will acquire,
construct, expand and own the System, and that BRA will operate and maintain the System, to
provide regional wastewater transportation, treatment and disposal services to the Customers.
WHEREAS, the Wastewater Disposal Contract requires LCRA to construct Phase II of
the System which is described in the Engineering Report to include the Contract 20 and Contract
21 Wastewater Interceptor Line segments (the "Contract 20/21 Wastewater Interceptor Line ").
WHEREAS, the parties to the Wastewater Disposal Contract have agreed that a portion
of the Project Costs of the Contract 20/21 Wastewater Interceptor Line should be paid for
according to an agreement between LCRA and the Texas Water Development Board (the
"TWDB ") pursuant to the authority of the TWDB and LCRA under Texas Water Code, Chapter
16, Subchapter E, for state participation in the System by the acquisition by the TWDB of an
undivided ownership interest in the Contract 20/21 Wastewater Interceptor Line.
WHEREAS, LCRA and TWDB contemporaneously with the effective date of this First
Amendment are entering into that certain "Master Agreement Between Texas Water
Development Board and Lower Colorado River Authority — Brushy Creek Regional Wastewater
System" (the "Master Agreement ") pursuant to which LCRA and TWDB will jointly construct
and finance the Contract 20/21 Wastewater Interceptor Line as provided in the Master Agreement
consistent with the terms of the Wastewater Disposal Contract and this First Amendment.
WHEREAS, the parties desire to evidence in this First Amendment their approval of the
payment of a portion of the Contract 20/21 Wastewater Interceptor Line by TWDB participation
pursuant to the Master Agreement.
WHEREAS, the Master Agreement also contemplates that TWDB will own Reserved
Capacity in the Contract 20/21 Wastewater Interceptor Line and, therefore, the relative Reserved
Capacities of the Customers in the Contract 20/21 Wastewater Interceptor Line need to be
1
revised accordingly, and the parties desire to do so pursuant to this First Amendment. NOW,
THEREFORE,
It is hereby agreed among BRA, LCRA, Round Rock, Cedar Park and Austin as follows:
1. The parties reaffirm the Wastewater Disposal Contract in all respects, and it shall
remain in full force and effect except as amended by this First Amendment. If
there is a conflict between the Wastewater Disposal Contract and this First
Amendment, this First Amendment shall prevail.
2. The term of this First Amendment is the same as the term of the Wastewater
Disposal Contract, and any renewals thereof as permitted therein.
3. The Reserved Capacities of the Customers set forth in Exhibit B of the
Wastewater Disposal Contract and the Engineering Report insofar as the Contract
20/21 Wastewater Interceptor Line is concerned are changed to reflect the
Reserved Capacities of the Customers and the TWDB as set forth on Exhibit A to
this First Amendment. Notwithstanding the foregoing, however, the original
Reserved Capacities of the Customers in Exhibit B of the Wastewater Disposal
Contract shall continue to be used to allocate the Annual Project Requirement for
the Capital Charges by LCRA.
4. LCRA is authorized, required and directed to purchase the TWDB's Reserved
Capacity in the Contract 20/21 Wastewater Interceptor Line from time to time as
permitted in the Master Agreement or as needed by the Customers. As LCRA
purchases the TWDB's Reserved Capacity, each Customer's Reserved Capacity in
the Contract 20/21 Wastewater Interceptor Line shall increase in direct proportion
to each other Customer's Reserved Capacity in that Line and LCRA shall prepare
and distribute a new Exhibit A to reflect each such increase. Notwithstanding
anything in Section 4.01(a) or any other part of the Wastewater Disposal Contract
to the contrary, until such time as LCRA has purchased all of the TWDB's
Reserved Capacity in the Contract 20/21 Wastewater Interceptor Line, it is
specifically agreed by the parties that regardless of their respective Reserved
Capacities in the Contract 20/21 Wastewater Interceptor Line as set forth in
Exhibit A, any Customer may discharge its Wastewater through the Contract
20/21 Wastewater Interceptor Line in any amount that does not exceed that
Customer's original Reserved Capacity in the Contract 20/21 Wastewater
Interceptor Line as provided in Exhibit B of the Wastewater Disposal Contract.
2
ATTEST:
EXECUTED AND E1'FECTIVE as of , 2001.
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
BRAZOS RIVER AUTHORITY
By:
Name: Philip J. Ford
Title: General Manager
LOWER COLORADO RIVER AUTHORITY
By:
Name: Randy J. Goss, P.E.
Title: Executive Manager, Water and Wastewater
Utilities
3
ATTEST:
Name: 61e,67 16 MAe7M)E
Title: City Secretary
ATTEST:
By:
CITY OF ROUND ROCK
4
Mayor
CITY OF CEDAR PARK
1/
Bob
Mayor V
121 IAMENDMEN]NOI towwdc.wpd
CITY OF AUSTIN
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