R-84-662 - 12/27/1984WHEREAS, the Brazos River Authority ( "BRA ") has the right to
utilize a portion of the storage space in Stillhouse Hollow Lake
as a source of water supply for various cities, and
RESOLUTION NO. 64p/
WHEREAS, the City of Round Rock would like to secure a depend-
able source of water for future needs, and
WHEREAS, the BRA has submitted a Water Supply Agreement to the
City, whereby the BRA grants to the City the right to withdraw
12.915 million gallons per day of water from Stillhouse Hollow
Lake with an option for additional water as it becomes available,
and
WHEREAS, the Council deems it in the best interests of the
City to contract with the BRA for the water, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS
That the Mayor is hereby authorized and directed to execute
on behalf of the City a Water Supply Agreement with the BRA, a
copy of which is attached hereto and incorporated herein for all
purposes.
RESOLVED this 27th day of December, 1984.
ATTEST:
MIKE ROBINSON, Mayor
City of Round Rock, Texas
1. Background and Planning Status:
WILLIAMSON COUNTY WATER RESOURCES
AGENDA
A. Secure surface water supply source
B. Evaluate regional treatment and transmission system
C. Needs and desires of participants change regional concept
2. Surface Water Supply Contracts:
A. Changes to contract mailed on November 5, 1984:
B. Return Executed Copies By January 4, 1985.
C. Questions
3. Future Planning For Transportation, Treatment And Distribu-
tion:
A. What Regional Facilities Does Each Participant Want?
B. Treatment System: (only treated water at plant)
C. Distribution System:
D. Raw Water Line Transportation System:
(1) System incorporates use of Lake Georgetown storage
space with entities water supply available in Lake
Stillhouse Hollow.
(2) Two phase plan:
(a) Preliminary design, layout, and right -of -way
acquisition.
(b) Final design and construction.
(3) Entities signify participation
E. Time Schedule:
F. Study Costs:
CO
S Postmark or Date
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RECEIPT FOR CERTIFIED MAIL
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Restricted Delivery Fee
Return Receipt Showing
to whom and Date Delivered
Return receipt showing to whom,
Date, and Address of Delivery
TOTAL Postage and Fees
CHANGES TO WATER SUPPLY CONTRACTS
TRANSMITTED NOVEMBER 5, 1984
1. Change to distribution of current and option water (see
attached table showing final allocations)
2. The following wording change has been made in Paragraph
No. 9, "INTEREST ON PAST DUE PAYMENTS ", to provide an
interest on past due payments at the lesser of the highest
lawful rate or 18% annum.
3. Under Paragraph No. 19, "TERM OF AGREEMENT" the term has been
changed to 50 years rather than 35 years.
4. The following provision has been added to the Contract:
"SALES. It is the understanding of the parties hereto that
City is entering into this Contract to obtain a supply of
surface water to be treated by City and delivered to City's
customers as potable water. City may not, without written
consent of Authority, sell to others the water agreed to be
supplied to it under this contract except as potable treated
water."
5. If applicable, the following provision may be added:
"TRANSPORTATION OF WATER. City and Authority understand that
City must make arrangements for the transportation of water
made available under this Contract from Stillhouse to Lake
Georgetown. If within two years from January 1, 1985 City
has been unable to make arrangements which in its opinion
will allow City to transport water from Stillhouse to Lake
Georgetown, City may at its option cancel this contract by
written notice to Authority effective on December 31, 1986.
After cancellation of this Contract City and Authority are
released of all obligations under this Contract. If written
notice of cancellation by City has not been received by
Authority on or before December 31, 1986 the provisions of
this Paragraph No. 20 expire."
0 1.6
WATER SUPPLY AGREEMENT BETWEEN
BRAZOS RIVER AUTHORITY AND CITY OF ROUND ROCK
AGREEMENT made this day of , 1985,
by and between BRAZOS RIVER AUTHORITY ( "Authority "), a river
authority of the State of Texas, and THE CITY OF ROUND ROCK
( "City "), of Williamson County.
1. RECITALS. Authority has entered into contracts with the
United States of America by virtue of which it has obtained the
right to utilize a portion of the storage space in Stillhouse
Hollow Lake ( "Stillhouse ") in Bell County, Texas, constructed by
the United States Army Corps of Engineers on the Lampasas River.
Under said contract Authority has the right to supply water from
Stillhouse to various cities and others having need for water.
The purpose of this Agreement is to provide for Authority to make
available to City from Stillhouse water which City needs and for
City to purchase and pay for such water.
2. WATER SUPPLY. Beginning in January, 1985, City shall
have the right to begin withdrawals from Stillhouse and shall
thereafter pay at the rate specified in Paragraph 4, below, for
the water which it has the right to withdraw whether it is ac-
tually being withdrawn or not, in the amount of 11,753 acre -feet
per year (10.494 million gallons per day averaged over the period
of one year).
3. OPTION. Authority grants unto City an option, contingent
upon development of sufficient additional sources of supply in
Authority's basin - wide water system to enable Authority to make
such additional water available, to purchase an additional 787
acre -feet of water per year (0.703 million gallons per day aver-
aged over a period of one year) over and above that agreed to be
made available under Paragraph 2, above. At such time, now esti-
mated to be January 1, 1989, as Authority shall have completed
definitive studies of the costs and feasibility of construction
of facilities which will provide additional sources of supply of
water in Authority's basin -wide water system, the Authority will
notify City in writing of the "Completion Year" (now anticipated
to be 1993), which is defined as the year in which Authority must
begin payments for the capital cost of the additions to its
basin -wide reservoir system necessary to provide additional water
which will enable it to fulfill its obligations under this Para-
graph 3 and in which it is expected that such additional water
will be available, and of the then estimated price that will be
charged for all water made available under this Agreement begin-
ning with the Completion Year. The date on which such notice is
given is hereinafter called "Notification Date ". On or before
ninety (90) days following Notification Date, City will notify
Authority in writing of how much, if any, of the option provided
in this Paragraph it elects to exercise and how much, if any,
water in addition to the amount available to it under Paragraph
2, above, and under the option provided in this Paragraph 3, it
wishes to contract for. At the end of such ninety (90) day peri-
od, City's option with respect to water as to which it shall have
failed to notify Authority of its election to take and pay for
under the option provided in this Paragraph 3, shall terminate.
Should City notify Authority that it desires to have water made
available to it in excess of the amounts provided in Paragraph 2,
above, and under the option provided in this Paragraph 3, Author-
ity will, on or before 210 days following Notification Date, in-
dicate the amount of water in addition to that provided in Para-
graph 2, above, and under the option already described in this
Paragraph 3, it can make available to City on account of the
failure of others (including parties who do not have rights simi-
lar to those provided in Paragraph 2, above) having agreements
similar to this Agreement to exercise the options provided in
said agreements. The amount which can thus be made available
shall be the product of multiplying the amount sought by City by
the quotient obtained by dividing the number of acre -feet of
water with respect to which the parties having such similar
agreements shall have failed to have exercised their options by
Page 2
the total number of acre -feet of water sought under provisions
similar to this by others with contracts similar to this Agree-
ment. Further, Authority will, in the same written notice,
identify the then anticipated Completion Year and update its
estimate of the price for water that will be in effect beginning
with the Completion Year. On or before 270 days following Noti-
fication Date, if City shall elect to take the additional water
available to it as a result of failure of others to exercise
their options it will give Authority written notice of such elec-
tion. Failure to give such notice shall result in termination of
City's right to receive such additional water. Election by City
to exercise the option provided in this Paragraph shall commit
Authority to undertaking its best efforts to complete by or be-
fore the Completion Year the additions to its basin -wide water
supply system required to make water available to City in addi-
tion to that committed under Paragraph 2, above. However, City
and Authority understand that Authority's ability to make water
available to City pursuant to this Paragraph 3 is contingent upon
the exercise by parties to other agreements similar to this of
the options for additional water granted in such agreements.
Water to be made available to City pursuant to this Paragraph 3,
shall be supplied from Stillhouse and will be available for
diversion by City as soon as water can be supplied from other
sources as a substitute for water now committed from Stillhouse
to others. Authority will give written notice to City when water
committed to City pursuant to this Paragraph 3 is available for
diversion from Stillhouse.
4. PRICE. City shall give Authority written notice ( "Elec-
tion Notice ") not less than 90 days prior to the date when it
elects to have Authority begin to make available for diversion
from Stillhouse all or part of the water committed to it under
Paragraph 2, above. Each Election Notice shall specify the total
amount of water per year in acre -feet which City elects to have
made available for diversion as well as the date on which it
elects that such availability shall begin. City will make
Page 3
payments to Authority for the water committed to City under this
contract as follows:
(a) Prior to Completion Year, water which is committed under
Paragraph 2, above, but not yet made available for diver-
sion pursuant to an Election Notice, will be paid for at a
price which is established at $23.64 per acre -foot in 1984
and which shall thereafter be escalated annually in accord-
ance with the procedure hereinafter set forth. Notification
of price for year 1985 and subsequent years will be in ac-
cordance with Paragraph 4(g), below.
(b) Prior to the Completion Year, water which is committed
under Paragraph 2 and made available for diversion from
Stillhouse pursuant to an Election Notice will be paid for
at a price which is established at $115.00 per acre -foot in
1984 and which shall thereafter be escalated annually in
accordance with the procedure hereinafter set forth. Noti-
fication of the price for year 1985 and subsequent years
will be in accordance with Paragraph 4(g), below.
(c) Beginning with the Completion Year, all water committed
to City under this Agreement will be paid for, whether or
not diverted or available for diversion, at a price which
will be established by Authority's Board of Directors for
Completion Year on the basis of the costs associated with
increasing the supplies of water available from Authority's
basin -wide system of water supply reservoirs by an amount
equal to or greater than the total of the amounts committed
to City as a result of City's exercise of the option grant-
ed to it under Paragraph 3 of this Agreement and /or to
others as a result of the exercise of options similar to
that granted to City under Paragraph 3 of this Agreement.
Such price will be escalated annually in accordance with
the procedure hereinafter set forth. Notification of price
for subsequent years will be in accordance with Paragraph
4(g), below.
Page 4
(d) Where it is provided above in this Paragraph 4 for esca-
lation of specified prices, the procedure for such escala-
tion shall be as follows:
Let P = the price established as set forth in the applica-
ble subparagraphs above;
Let A = the adjusted price after escalation;
Let X = the Consumer Price Index ( "Index ") for Urban Wage
Earners and Clerical Workers (1967 = 100) for the
following months:
then
(i) for price adjustment for any year prior to and in-
cluding Completion Year, the month of November 1983;
(ii) for price adjustment for any year after Comple-
tion Year, the month of November of the Completion
year;
Let Y = the Consumer Price Index for Urban Wage Earners and
Clerical Workers for the month of November immedi-
ately preceding the date on which the adjusted price
for water is established;
A=P x Y
X.
Should Index cease to be published, Authority shall select
another index published by an agency of the United States
goverment as being as similar as possible to Index as sub-
stitute for Index in making the computation provided for in
this subparagraph.
(e) Once City has given Authority an Election Notice it
shall thereafter pay for the amount of water which it
elects in said notice to have made available to it for
Page 5
diversion at the price specified herein for water made
available for diversion pursuant to an Election Notice,
as distinguished from the price for water committed but
not yet made available for diversion, whether or not such
water is actually diverted. Once established, the amount
considered to be available for diversion by City shall
not be reduced. Actual use by City of an amount of water
during a calendar year of an amount in excess of the amounts
for which it shall then have given Election Notice shall
constitute the giving of an Election Notice to have made
available for diversion during such calendar year and
thereafter the amount used in such calendar year.
(f) The giving of an Election Notice on a date other than
January 1 shall result in City's being charged for the
amount of water specified in the Election Notice to be made
available for diversion at the price specified herein for
water available for diversion, as distinguished from com-
mitted water, for the calendar year in which the notice is
given.
(g) Authority shall determine prices to be paid by City for
water committed under this Agreement under the formulas set
forth in this Paragraph 4 for each calendar year on or be-
fore February 1 of such calendar year and shall notify City
in writing of the price thus determined on or before such
date.
The amount payable for the calendar year shall be paid by
City to Authority on or before February 15 following such
February 1. Should the amount of City's use, or the amount
of water made available to City pursuant to an Election No-
tice, increase during such calendar year above the amount
for which payment is made on February 15, City will pay the
increased amount of money due Authority on account of such
increase at the time when its next subsequent payment is due
to be made to Authority.
Page 6
(h) All payments to be made under this Agreement shall be
made at Waco, McLennan County, Texas.
5. IMPOSED COSTS. In addition to the adjustments in price
for the water as described in Paragraph 4, above, any additional
direct cost(s) or expense(s) which may be imposed on Authority in
connection with fulfillment of its obligations under this Agree-
ment by taxation or as the result of regulations or requirements
lawfully imposed by the State, the United States or any State or
Federal agency subsequent to execution of this Agreement shall be
passed through Authority to City in like amount(s) and shall be
included in the adjusted price for water made available by
Authority to City under the terms of this Agreement.
6. RATE. The water to be made available to City under this
Agreement may be diverted from Stillhouse at daily rates desired
by City, provided that Authority does not covenant to make water
available for diversion by City at a daily rate in excess of five
times the average daily rate which would result in diversion dur-
ing a calendar year of the total number of acre -feet of water per
year then agreed to be made available for diversion by City.
7. COMPLIANCE WITH STATE RULES. Authority and City agree
that the effectiveness of this Agreement is dependent upon
Authority's and /or City's compliance with Rules 156.02.50.003,
156.02.50.004, 156.02.50.005 and 156.02.50.006 of the Rules of
the Texas Water Development Board (Texas Administrative Code Sec-
tions 303.112 - 116).
8. CONSERVATION OF WATER. It is the intent of the parties
to this Agreement to provide to the maximum extent practicable
for the conservation of water, and City agrees that it is a
condition of this Agreement that it shall maintain and operate
Page 7
its facilities in a manner that will prevent unnecessary waste of
water.
9. INTEREST ON PAST DUE PAYMENT. In the event of failure of
City to make any payment to Authority provided to be made in this
Agreement at the time when same shall be due, the past due pay-
ment shall bear interest at the rate of 18% per annum.
10. CANCELLATION FOR NONPAYMENT. Should City fail to make
payment to Authority when due hereunder, Authority may, by writ-
ten notice of such nonpayment delivered to City on or before 30
days before the date specified in said notice for cancellation,
provided that the nonpayment with respect to which notice has
been given shall not be cured by the date thus specified in such
notice, cancel this Agreement. In the absence of cancellation of
this Agreement by Authority, the obligation of City to make the
payments for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
11. FORCE MAJEURE. Neither party hereto shall be under any
liability or be deemed in default with respect to its obligations
under this Agreement for any failure to perform or for delay in
performing such party's obligations hereunder where such failure
or delay is due to acts of God, fire, storm, flood, war, riots,
sabotage, drought, low inflows of water to Stillhouse, strikes or
other differences with labor (whether or not within the power of
the parties to settle same), decrees or orders of the courts or
other governmental authority, or other similar or dissimilar
causes not within the reasonable control of such party and not
due to negligence of such party, while and to the extent that the
performance is prevented by such cause (Force Majeure) and due
diligence is being used to resume performance at the earliest
practicable time. Notwithstanding the provisions of this para-
graph for Force Majeure, the obligation of City to make payments
for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
Page 8
12. WAIVER. Any waiver at any time by any party of its
rights with respect to default under this Agreement shall not be
deemed a waiver of such rights with respect to any subsequent de-
fault or matter.
13. REMEDIES. Nothing in this Agreement shall be construed
as, in any manner, to abridge, limit or deprive either party
hereunto of any means which it would otherwise have of enforcing
any right or remedy either in law or in equity for breach of any
of the provisions hereof.
14. ARBITRATION. Disputes between the parties arising under
this Agreement shall be submitted to arbitration under the rules
of the American Arbitration Association.
15. WITHDRAWAL FACILITIES. The provision of facilities for
diversion from Stillhouse of the water agreed to be made avail-
able by Authority to City hereunder shall be the responsibility
of City. Authority shall assist City in obtaining an easement
for right -of -way for City's diversion facilities across United
States Government lands at Stillhouse at no cost to City subject
to the conditions that the design and location of such facilities
shall be approved by the District Engineer, Fort Worth District,
U.S. Army Corps of Engineers, that City shall prepare and furnish
all documentation necessary for obtaining the easement including
a map of convenient size locating the point of diversion by
course and distance from a survey corner or other identifiable
points, which map shall at that time be made a part of this
Agreement as Appendix I, and that City shall operate the facil-
ities located on United States Government lands in a manner ac-
ceptable to the District Engineer, Fort Worth District, U.S. Army
Corps of Engineers.
16. METERING. City agrees that it shall install, operate and
maintain meters for the accurate measuring of all water diverted
Page 9
from Stillhouse. Further, such meter or meters shall be tested
and calibrated for accuracy by and at the expense of City once
each calendar year at intervals of approximately 12 months, and a
report of such test and calibration shall be furnished to Author-
ity. Authority shall be given at least two days prior notice of
the time of any test and calibration of City's meters, or any of
them, and Authority shall have the right to have a representative
present at each test to observe the test and any calibrations
found thereby to be necessary. Authority shall have the right to
inspect and check the accuracy of City's meters at any time dur-
ing usual business hours after not less than one nor more than
five days notice. In the event any question arises at any time
as to the accuracy of any such meter, such meter shall be tested
promptly upon demand of the Authority, the expense of such test
to be borne by Authority if the meter is found to be correct and
by City if it is found to be incorrect. Readings within 2% of
accuracy, plus or minus, shall be considered correct. If, as a
result of any test, any meter is found to be registering in-
accurately (i.e., in excess of 2% of accuracy, plus or minus),
the readings of such meter shall be corrected at the rate of its
inaccuracy for any period which is definitely known and agreed
upon, but in case the period is not definitely known and agreed
upon, then the shorter of the following periods shall be used as
the basis for correction:
(a) a period extending back either 60 days from the date
of demand for the test or, if no demand for the test was
made, 60 days from the date of the test;
(b) a period extending back half of the time elapsed since
the last previous test;
and the records of readings shall be adjusted accordingly. Fol-
lowing each test of a meter, the same shall be calibrated by City
to register accurately.
Page 10
17. REPORTING. City agrees that it will keep accurate
records of the daily readings from the meter or meters installed
pursuant to Paragraph 16, above. These records shall be subject
to inspection by Authority at reasonable times and places. City
shall submit reports to Authority by the 10th day of each month
showing the amount of water pumped each day during the preceding
month.
18. SURPLUS WATER. City may not cancel this Agreement nor
reduce the amounts of water it is obligated to pay for under the
terms of Paragraphs 2 and 3, above. However, should City deter—
mine after the Completion Year that it has water surplus to its
anticipated needs from water to be supplied by the Authority
under this Agreement, and upon City's notification to Authority
of the quantity of water City designates as surplus water,
Authority will use its best efforts to find another party who is
able and willing to purchase such surplus water upon terms and at
a price not less favorable to Authority than the price and terms
under this Agreement. Should Authority succeed in finding such a
party and enter into a contract for sale of the surplus water at
such price and upon such terms, then City's obligation to pay for
such surplus water shall be cancelled, and the parties shall
thereupon have no further obligations to one another with respect
to such surplus water; otherwise, the provisions and obligations
of this Agreement shall remain unchanged.
19. TERM OF AGREEMENT. The term of this Agreement shall be
for a period of 35 years from January 1, 1985, and the Agreement
shall be extended at the written request of City for so long as
Authority continues to have the right to use storage in Still —
house for water supply purposes.
20. NOTICES AND CERTIFICATIONS. Notices and certifications
provided for in this Agreement shall be in writing. The same
shall be delivered by mailing certified mail, postage paid,
Page 11
return receipt requested, to the respective parties at the fol-
lowing addresses:
ATTEST:
ATTEST:
Authority:
City of Round Rock:
Either party may change its address as shown above by writ-
ten notice to the other party. Notices shall be deemed to have
been delivered on the business day following their deposit in the
United States mail, postage paid and properly addressed and
certified.
DATED THIS THE
Assistant Secretary
City Secretary
Brazos River Authority
P.O. Box 7555
Waco, Texas 76714 -7555
City of Round Rock
214 East Main Street
Round Rock, Texas 78664
day of , 1985.
BRAZOS RIVER AUTHORITY
By
Carson H. Hoge, General Manager
CITY OF ROUND ROCK
By
Mayor
Page 12
FINAL DISTRIETION FOR CURRENT AND OPTION WATER
FOR STILLHOUSE HOLLOW WATER SUPPLY CONTRACTS
FINAL FINAL FINAL
I I REVISED I TOTAL ALLOCATION I CURRENT WATER I OPTION 04712 I
I I ALLOCATION I I 1 I
I PARTICIPANTS 1 PERCENT I (11600 I IFF/YE1 I IMD) I (AFTYRI I (092) I (AF/04) I
1 I I I 1 I I 1 I
I I I 1 I I 1 I I
I CEDAR PAU I 19.44 I 6.639 I 7436 I .000 1 0 I 0.0391 7430 1
1 1 1 1 1 1 I 1 I
I GEORGETOWN I 14.24 I 4.864 I 5448 I 2.848 I 3190 I 2.016 I 225B I
1 1 I , I 1 I I I
I HIGH GABRIEL I .11 I .277 I 310 I .089 I 100 1 .189 1 210 I
I I I I I I I 1 I
1 JONAH WSC I 3.24 I 1.106 I 1239 I .648 1 726 I .458 I 513 1
1 I I I 1 I 1 1 1
1 LEANDER I 10.79 1 3.682 I 4124 I 3.000 I 3:60 I .682 I 764 1
I 1 I I I 1 I I I
I ROUND ROCK I 45,00 I 15.369 I 17214 1 12.915 1 14465 1 7 .44 I 2749 1
I 1 11 1 ' I I I
1 SCB CORP. I 6,4? I 2.217 I 2483 I .500 I 560 I 1.717 I 1423 I
I I I I I I 1 I I
I 1 I I I 1 0 I 1
I T0T1LS: I 100.00 I 34.154 I 38254 1 20.000 1 22401 I 14.154 I 15153 1
1 1 1 1 1 0 1 1 0
WATER SUPPLY AGREEMENT BETWEEN
BRAZOS RIVER AUTHORITY AND CITY OF ROUND ROCK
AGREEMENT made this day of , 1985,
by and between BRAZOS RIVER AUTHORITY ( "Authority "), a river
authority of the State of Texas, and THE CITY OF ROUND ROCK
( "City "), of Williamson County.
1. RECITALS. Authority has entered into contracts with the
United States of America by virtue of which it has obtained the
right to utilize a portion of the storage space in Stillhouse
Hollow Lake ( "Stillhouse ") in Bell County, Texas, constructed by
the United States Army Corps of Engineers on the Lampasas River.
Under said contract Authority has the right to supply water from
Stillhouse to various cities and others having need for water.
The purpose of this Agreement is to provide for Authority to make
available to City from Stillhouse water which City needs and for
City to purchase and pay for such water.
2. WATER SUPPLY. Beginning in January, 1985, City shall
have the right to begin withdrawals from Stillhouse and shall
thereafter pay at the rate specified in Paragraph 4, below, for
the water which it has the right to withdraw whether it is ac-
tually being withdrawn or not, in the amount of 11,753 acre -feet
per year (10.494 million gallons per day averaged over the period
of one year).
3. OPTION. Authority grants unto City an option, contingent
upon development of sufficient additional sources of supply in
Authority's basin -wide water system to enable Authority to make
such additional water available, to purchase an additional 787
acre -feet of water per year (0.703 million gallons per day aver-
aged over a period of one year) over and above that agreed to be
made available under Paragraph 2, above. At such time, now esti-
mated to be January 1, 1989, as Authority shall have completed
definitive studies of the costs and feasibility of construction
of facilities which will provide additional sources of supply of
water in Authority's basin -wide water system, the Authority will
notify City in writing of the "Completion Year" (now anticipated
to be 1993), which is defined as the year in which Authority must
begin payments for the capital cost of the additions to its
basin -wide reservoir system necessary to provide additional water
which will enable it to fulfill its obligations under this Para-
graph 3 and in which it is expected that such additional water
will be available, and of the then estimated price that will be
charged for all water made available under this Agreement begin-
ning with the Completion Year. The date on which such notice is
given is hereinafter called "Notification Date ". On or before
ninety (90) days following Notification Date, City will notify
Authority in writing of how much, if any, of the option provided
in this Paragraph it elects to exercise and how much, if any,
water in addition to the amount available to it under Paragraph
2, above, and under the option provided in this Paragraph 3, it
wishes to contract for. At the end of such ninety (90) day peri-
od, City's option with respect to water as to which it shall have
failed to notify Authority of its election to take and pay for
under the option provided in this Paragraph 3, shall terminate.
Should City notify Authority that it desires to have water made
available to it in excess of the amounts provided in Paragraph 2,
above, and under the option provided in this Paragraph 3, Author-
ity will, on or before 210 days following Notification Date, in-
dicate the amount of water in addition to that provided in Para-
graph 2, above, and under the option already described in this
Paragraph 3, it can make available to City on account of the
failure of others (including parties who do not have rights simi-
lar to those provided in Paragraph 2, above) having agreements
similar to this Agreement to exercise the options provided in
said agreements. The amount which can thus be made available
shall be the product of multiplying the amount sought by City by
the quotient obtained by dividing the number of acre -feet of
water with respect to which the parties having such similar
agreements shall have failed to have exercised their options by
Page 2
the total number of acre -feet of water sought under provisions
similar to this by others with contracts similar to this Agree-
ment. Further, Authority will, in the same written notice,
identify the then anticipated Completion Year and update its
estimate of the price for water that will be in effect beginning
with the Completion Year. On or before 270 days following Noti-
fication Date, if City shall elect to take the additional water
available to it as a result of failure of others to exercise
their options it will give Authority written notice of such elec-
tion. Failure to give such notice shall result in termination of
City's right to receive such additional water. Election by City
to exercise the option provided in this Paragraph shall commit
Authority to undertaking its best efforts to complete by or be-
fore the Completion Year the additions to its basin -wide water
supply system required to make water available to City in addi-
tion to that committed under Paragraph 2, above. However, City
and Authority understand that Authority's ability to make water
available to City pursuant to this Paragraph 3 is contingent upon
the exercise by parties to other agreements similar to this of
the options for additional water granted in such agreements.
Water to be made available to City pursuant to this Paragraph 3,
shall be supplied from Stillhouse and will be available for
diversion by City as soon as water can be supplied from other
sources as a substitute for water now committed from Stillhouse
to others. Authority will give written notice to City when water
committed to City pursuant to this Paragraph 3 is available for
diversion from Stillhouse.
4. PRICE. City shall give Authority written notice ( "Elec-
tion Notice ") not less than 90 days prior to the date when it
elects to have Authority begin to make available for diversion
from Stillhouse all or part of the water committed to it under
Paragraph 2, above. Each Election Notice shall specify the total
amount of water per year in acre -feet which City elects to have
made available for diversion as well as the date on which it
elects that such availability shall begin. City will make
Page 3
payments to Authority for the water committed to City under this
contract as follows:
(a) Prior to Completion Year, water which is committed under
Paragraph 2, above, but not yet made available for diver-
sion pursuant to an Election Notice, will be paid for at a
price which is established at $23.64 per acre -foot in 1984
and which shall thereafter be escalated annually in accord-
ance with the procedure hereinafter set forth. Notification
of price for year 1985 and subsequent years will be in ac-
cordance with Paragraph 4(g), below.
(b) Prior to the Completion Year, water which is committed
under Paragraph 2 and made available for diversion from
Stillhouse pursuant to an Election Notice will be paid for
at a price which is established at $115.00 per acre -foot in
1984 and which shall thereafter be escalated annually in
accordance with the procedure hereinafter set forth. Noti-
fication of the price for year 1985 and subsequent years
will be in accordance with Paragraph 4(g), below.
(c) Beginning with the Completion Year, all water committed
to City under this Agreement will be paid for, whether or
not diverted or available for diversion, at a price which
will be established by Authority's Board of Directors for
Completion Year on the basis of the costs associated with
increasing the supplies of water available from Authority's
basin -wide system of water supply reservoirs by an amount
equal to or greater than the total of the amounts committed
to City as a result of City's exercise of the option grant-
ed to it under Paragraph 3 of this Agreement and /or to
others as a result of the exercise of options similar to
that granted to City under Paragraph 3 of this Agreement.
Such price will be escalated annually in accordance with
the procedure hereinafter set forth. Notification of price
for subsequent years will be in accordance with Paragraph
4(g), below.
Page 4
(d) Where it is provided above in this Paragraph 4 for esca-
lation of specified prices, the procedure for such escala-
tion shall be as follows:
Let P = the price established as set forth in the applica-
ble subparagraphs above;
Let A = the adjusted price after escalation;
Let X = the Consumer Price Index ( "Index ") for Urban Wage
Earners and Clerical Workers (1967 = 100) for the
following months:
then
(i) for price adjustment for any year prior to and in-
cluding Completion Year, the month of November 1983;
(ii) for price adjustment for any year after Comple-
tion Year, the month of November of the Completion
year;
Let Y = the Consumer Price Index for Urban Wage Earners and
Clerical Workers for the month of November immedi-
ately preceding the date on which the adjusted price
for water is established;
A = P x Y
X .
Should Index cease to be published, Authority shall select
another index published by an agency of the United States
goverment as being as similar as possible to Index as sub-
stitute for Index in making the computation provided for in
this subparagraph.
(e) Once City has given Authority an Election Notice it
shall thereafter pay for the amount of water which it
elects in said notice to have made available to it for
Page 5
diversion at the price specified herein for water made
available for diversion pursuant to an Election Notice,
as distinguished from the price for water committed but
not yet made available for diversion, whether or not such
water is actually diverted. Once established, the amount
considered to be available for diversion by City shall
not be reduced. Actual use by City of an amount of water
during a calendar year of an amount in excess of the amounts
for which it shall then have given Election Notice shall
constitute the giving of an Election Notice to have made
available for diversion during such calendar year and
thereafter the amount used in such calendar year.
(f) The giving of an Election Notice on a date other than
January 1 shall result in City's being charged for the
amount of water specified in the Election Notice to be made
available for diversion at the price specified herein for
water available for diversion, as distinguished from com-
mitted water, for the calendar year in which the notice is
given.
(g) Authority shall determine prices to be paid by City for
water committed under this Agreement under the formulas set
forth in this Paragraph 4 for each calendar year on or be-
fore February 1 of such calendar year and shall notify City
in writing of the price thus determined on or before such
date.
The amount payable for the calendar year shall be paid by
City to Authority on or before February 15 following such
February 1. Should the amount of City's use, or the amount
of water made available to City pursuant to an Election No-
tice, increase during such calendar year above the amount
for which payment is made on February 15, City will pay the
increased amount of money due Authority on account of such
increase at the time when its next subsequent payment is due
to be made to Authority.
Page 6
(h) All payments to be made under this Agreement shall be
made at Waco, McLennan County, Texas.
5. IMPOSED COSTS. In addition to the adjustments in price
for the water as described in Paragraph 4, above, any additional
direct cost(s) or expense(s) which may be imposed on Authority in
connection with fulfillment of its obligations under this Agree-
ment by taxation or as the result of regulations or requirements
lawfully imposed by the State, the United States or any State or
Federal agency subsequent to execution of this Agreement shall be
passed through Authority to City in like amount(s) and shall be
included in the adjusted price for water made available by
Authority to City under the terms of this Agreement.
6. RATE. The water to be made available to City under this
Agreement may be diverted from Stillhouse at daily rates desired
by City, provided that Authority does not covenant to make water
available for diversion by City at a daily rate in excess of five
times the average daily rate which would result in diversion dur-
ing a calendar year of the total number of acre -feet of water per
year then agreed to be made available for diversion by City.
7. COMPLIANCE WITH STATE RULES. Authority and City agree
that the effectiveness of this Agreement is dependent upon
Authority's and /or City's compliance with Rules 156.02.50.003,
156.02.50.004, 156.02.50.005 and 156.02.50.006 of the Rules of
the Texas Water Development Board (Texas Administrative Code Sec-
tions 303.112 -116).
8. CONSERVATION OF WATER. It is the intent of the parties
to this Agreement to provide to the maximum extent practicable
for the conservation of water, and City agrees that it is a
condition of this Agreement that it shall maintain and operate
Page 7
its facilities in a manner that will prevent unnecessary waste of
water.
9. INTEREST ON PAST DUE PAYMENT. In the event of failure of
City to make any payment to Authority provided to be made in this
Agreement at the time when same shall be due, the past due pay-
ment shall bear interest at the rate of 18% per annum.
10. CANCELLATION FOR NONPAYMENT. Should City fail to make
payment to Authority when due hereunder, Authority may, by writ-
ten notice of such nonpayment delivered to City on or before 30
days before the date specified in said notice for cancellation,
provided that the nonpayment with respect to which notice has
been given shall not be cured by the date thus specified in such
notice, cancel this Agreement. In the absence of cancellation of
this Agreement by Authority, the obligation of City to make the
payments for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
11. FORCE MAJEURE. Neither party hereto shall be under any
liability or be deemed in default with respect to its obligations
under this Agreement for any failure to perform or for delay in
performing such party's obligations hereunder where such failure
or delay is due to acts of God, fire, storm, flood, war, riots,
sabotage, drought, low inflows of water to Stillhouse, strikes or
other differences with labor (whether or not within the power of
the parties to settle same), decrees or orders of the courts or
other governmental authority, or other similar or dissimilar
causes not within the reasonable control of such party and not
due to negligence of such party, while and to the extent that the
performance is prevented by such cause (Force Majeure) and due
diligence is being used to resume performance at the earliest
practicable time. Notwithstanding the provisions of this para-
graph for Force Majeure, the obligation of City to make payments
for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
Page 8
12. WAIVER. Any waiver at any time by any party of its
rights with respect to default under this Agreement shall not be
deemed a waiver of such rights with respect to any subsequent de—
fault or matter.
13. REMEDIES. Nothing in this Agreement shall be construed
as, in any manner, to abridge, limit or deprive either party
hereunto of any means which it would otherwise have of enforcing
any right or remedy either in law or in equity for breach of any
of the provisions hereof.
14. ARBITRATION. Disputes between the parties arising under
this Agreement shall be submitted to arbitration under the rules
of the American Arbitration Association.
15. WITHDRAWAL FACILITIES. The provision of facilities for
diversion from Stillhouse of the water agreed to be made avail—
able by Authority to City hereunder shall be the responsibility
of City. Authority shall assist City in obtaining an easement
for right —of —way for City's diversion facilities across United
States Government lands at Stillhouse at no cost to City subject
to the conditions that the design and location of such facilities
shall be approved by the District Engineer, Fort Worth District,
U.S. Army Corps of Engineers, that City shall prepare and furnish
all documentation necessary for obtaining the easement including
a map of convenient size locating the point of diversion by
course and distance from a survey corner or other identifiable
points, which map shall at that time be made a part of this
Agreement as Appendix I, and that City shall operate the facil—
ities located on United States Government lands in a manner ac—
ceptable to the District Engineer, Fort Worth District, U.S. Army
Corps of Engineers.
16. METERING. City agrees that it shall install, operate and
maintain meters for the accurate measuring of all water diverted
Page 9
from Stillhouse. Further, such meter or meters shall be tested
and calibrated for accuracy by and at the expense of City once
each calendar year at intervals of approximately 12 months, and a
report of such test and calibration shall be furnished to Author-
ity. Authority shall be given at least two days prior notice of
the time of any test and calibration of City's meters, or any of
them, and Authority shall have the right to have a representative
present at each test to observe the test and any calibrations
found thereby to be necessary. Authority shall have the right to
inspect and check the accuracy of City's meters at any time dur-
ing usual business hours after not less than one nor more than
five days notice. In the event any question arises at any time
as to the accuracy of any such meter, such meter shall be tested
promptly upon demand of the Authority, the expense of such test
to be borne by Authority if the meter is found to be correct and
by City if it is found to be incorrect. Readings within 2% of
accuracy, plus or minus, shall be considered correct. If, as a
result of any test, any meter is found to be registering in-
accurately (i.e., in excess of 2% of accuracy, plus or minus),
the readings of such meter shall be corrected at the rate of its
inaccuracy for any period which is definitely known and agreed
upon, but in case the period is not definitely known and agreed
upon, then the shorter of the following periods shall be used as
the basis for correction:
(a) a period extending back either 60 days from the date
of demand for the test or, if no demand for the test was
made, 60 days from the date of the test;
(b) a period extending back half of the time elapsed since
the last previous test;
and the records of readings shall be adjusted accordingly. Fol-
lowing each test of a meter, the same shall be calibrated by City
to register accurately.
Page 10
17. REPORTING. City agrees that it will keep accurate
records of the daily readings from the meter or meters installed
pursuant to Paragraph 16, above. These records shall be subject
to inspection by Authority at reasonable times and places. City
shall submit reports to Authority by the 10th day of each month
showing the amount of water pumped each day during the preceding
month.
18. SURPLUS WATER. City may not cancel this Agreement nor
reduce the amounts of water it is obligated to pay for under the
terms of Paragraphs 2 and 3, above. However, should City deter-
mine after the Completion Year that it has water surplus to its
anticipated needs from water to be supplied by the Authority
under this Agreement, and upon City's notification to Authority
of the quantity of water City designates as surplus water,
Authority will use its best efforts to find another party who is
able and willing to purchase such surplus water upon terms and at
a price not less favorable to Authority than the price and terms
under this Agreement. Should Authority succeed in finding such a
party and enter into a contract for sale of the surplus water at
such price and upon such terms, then City's obligation to pay for
such surplus water shall be cancelled, and the parties shall
thereupon have no further obligations to one another with respect
to such surplus water; otherwise, the provisions and obligations
of this Agreement shall remain unchanged.
19. TERM OF AGREEMENT. The term of this Agreement shall be
for a period of 35 years from January 1, 1985, and the Agreement
shall be extended at the written request of City for so long as
Authority continues to have the right to use storage in Still -
house for water supply purposes.
20. NOTICES AND CERTIFICATIONS. Notices and certifications
provided for in this Agreement shall be in writing. The same
shall be delivered by mailing certified mail, postage paid,
Page 11
return receipt requested, to the respective parties at the fol-
lowing addresses:
Either party may change its address as shown above by writ-
ten notice to the other party. Notices shall be deemed to have
been delivered on the business day following their deposit in the
United States mail, postage paid and properly addressed and
certified.
ATTEST:
ATTEST:
Authority:
City of Round Rock:
DATED THIS THE
Assistant Secretary
City Secretary
Page 12
Brazos River Authority
P.O. Box 7555
Waco, Texas 76714 -7555
City of Round Rock
214 East Main Street
Round Rock, Texas 78664
day of , 1985.
BRAZOS RIVER AUTHORITY
By
Carson H. Hoge, General Manager
CITY OF ROUND ROCK
By
Mayor
Honorable Mike Robinson
Mayor, City of Round Rock
214 East Main Street
Round Rock, Texas 78664
Dear Mayor Tonn:
BRAZOS RIVER AUTHORITY
4400 COBBS DRIVE • P. 0. BOX 7555 • TELEPHONE AREA CODE 817776 -1441
I have enclosed four (4) copies of the revised WATER SUPPLY
AGREEMENT BETWEEN THE BRAZOS RIVER AUTHORITY AND CITY OF ROUND ROCK
( "Agreement "), previously transmitted to you by Mr. Roy Robert's
letter dated November 5, 1984. The changes to the Agreement include
the following:
1. The distribution of the City's Current and Option Water
under Paragraphs 2 and 3 has been changed in accordance with
each Participant's instructions.
2. In Paragraph 9, additional wording has been added to
limit the interest rate on past due accounts to the lesser
of the highest legal rate or 18 Z per annum.
3. In Paragraph 19, the term of the Agreement has been
changed from 35 years to 50 years.
4. A new Paragraph 20 has been added entitled: "TRANSPOR-
TATION OF WATER ".
5. A provision dealing with the sale of water provided
under the Agreement has been added as Paragraph 21.
The revised Agreement must be reviewed and executed by the City and
returned to the Authority by January 4, 1984.
If you have any questions regarded the Agreement or any other
aspects of the project, please contact me.
JTR:bb
Encls.
cc: Mr. Bob Bennett, City Manager
Sincerel
J. TOM RACY
Planning Director
WACO, TEXAS 76714 -7555
December 6, 1984
Honorable Mike Robinson
Mayor, City of Round Rock
214 East Main Street
Round Rock, Texas 78664
Dear Mayor Robinson:
RAR:bb
BRAZOS RIVER AUTHORITY
d - A
11
4400 COBBS DRIVE • P 0 BOX 7555 EPHONE AREA CODE 817776 -1441
Re: Brazos River Authority
Water Supply Agreement
WACO, TEXAS 76714 -7555
Very truly yours,
"1c -c
ROY A. ROBERTS
Assistant General Manager
November 7, 1984
In my letter to you dated November 5, 1984, on page 3, paragraph
2, the third sentence reads as follows: "The Agreement will be
presented to the Board of Directors of the Brazos River Authority
at its January 14, 1984 meeting for approval and authorization
for execution by the Authority's General Manager." This sentence
should read: "The Agreement will be presented to the Board of
Directors of the Brazos River Authority at its January 14, 1985
meeting for approval and authorization for execution by the
Authority's General Manager."
Honorable Mike Robinson
Mayor, City of Round Rock
214 East Main Street
Round Rock, Texas 78664
Dear Mayor Robinson:
BRAZOS RIVER AUTHORITY
4400 COBBS DRIVE • P. 0. BOX 7555 • TELEPHONE AREA CODE 817776 -1441
WACO, TEXAS 76714 -7555
November 5, 1984
As requested in the "Resolution Concerning Water Supply Contract With
The Brazos River Authority" (Resolution No. 1) adopted by your city in
October 1984, I have enclosed four (4) copies of WATER SUPPLY AGREE-
MENT BETWEEN BRAZOS RIVER AUTHORITY AND CITY OF ROUND ROCK ( "Agree-
ment") for your review and execution.
Please note that water which is currently available for withdrawal
from Lake Stillhouse Hollow ( "Stillhouse ") and previously referred to
as "Currently Available Water" is made available to Round Rock in
Paragraph 2. of the enclosed Agreement, and hereafter referred to in
this letter as "Current Water ". The water which is to be made
available to Round Rock as a result of expansion of the Authority's
basin -wide water supply system and previously referred to as "Future
Available Water" is made available to Round Rock in Paragraph 3. of
the enclosed Agreement, and is hereafter referred to in this letter as
"Option Water ".
Also, please note that the quantities of water available in Paragraph
2. and Paragraph 3. of the Agreement are different than the quantities
shown in Round Rock's above referenced Resolution No. 1. There are
two reasons for these changes.
First, when the entities in Bell, Lampasas and Williamson Counties
were first informed that 55,899 acre -feet of water per year (AF /Yr)
could be freed -up in Stillhouse by future expansion of the Authority's
basin -wide water system, an existing 1979 Authority contractual com-
mitment to make available 5,000 AF /Yr from future basin -wide system
sources to Central Texas Water Supply Corporation (CTWSC) for with-
drawal from Stillhouse was not deducted. CTWSC recently advised the
Authority that it wishes to make use of this 5,000 AF /Yr from
Stillhouse. The entities in Williamson County were originally allo-
cated 42,011 acre -feet per year of the above referenced 55,899 acre -
feet per year. The following table shows this original total alloca-
tion (42,011 AF /Yr) and the reduced total allocation (38,253 AF /Yr) of
water to be made available to the Williamson County participating
entities:
City of Round Rock - cont'd
Entity
City of Cedar Park
City of Georgetown
High Gabriel WSC
Jonah WSC
City of Leander
City of Round Rock
SCB Development Corp.
Totals
Entity
City of Cedar Park
High Gabriel WSC
Jonah WSC
City of Leander
City of Round Rock
SCB Development Corp.
Totals
Annual Amounts of Water in Ac.Ft.
Original Total
Allocation
8,168 (7.29 mgd)
5,983 (5.34 mgd)
336 ( .30 mgd)
1,363 (1.22 mgd)
4,529 (4.04 mgd)
18,905(16.89 mgd)
2,727 (2.43 mgd)
42,011(37.51 mgd)
"Current
Water"
Allocation
(Para. 2)
(mgd)
November 5, 1984
Page 2
Reduced Total
Allocation
7,436 (6.64 mgd)
5,447 (4.86 mgd)
306 ( .27 mgd)
1,240 (1.11 mgd)
4,127 (3.68 mgd)
17,214(15.37 mgd)
2,483 (2.22 mgd)
38,253(34.15 mgd)
Second, the City of Georgetown recently advised the Authority that
Georgetown is only interested in being presented an Option Water
contract from the Authority for its total allocated quantity of water
(5,447 AF /Yr). This does not affect the total amount available to
each entity but does increase the Current Water available and commen-
surately reduce the Option Water available to other entities than
Georgetown. Therefore, the 22,400 AF /Yr (20 million gallons of water
per day) which is currently available in Stillhouse has been reallo-
cated on a pro -rata basis to the remaining six (6) entities. The
following table shows the individual allocations of "Current Water"
and "Option Water ":
Annual Amounts of Water in Acre -Feet
"Option Total
Water" Water
Allocation Allocation
(Para. 3) (Para. 2. +
(mgd) Para. 3.)(mgd)
5,078 (4.534) 2,358 (2.105) 7,436 (6.639)
208 (0.186) 98 (0.087) 306 (0.273)
847 (0.756) 393 (0.351) 1,240 (1.107)
2,818 (2.516) 1,309 (1.169) 4,127 (3.685)
11,753(10.494) 5,461 (4.876) 17,214(15.370)
1,696 (1.514) 787 (0.703) 2,483 (2.217)
22,400(20.00) 10,406 (9.291) 32,806(29.291)
City of Round Rock - con't November 5, 1984
Page 3
Although the first change resulted in an overall decrease in the total
quantity of water available to Round Rock the second change increased
the total quantity of Current Water available for allocation to Round
Rock from 10,080 to 11,753 acre -feet per year and decreased the Option
Water from 8,825 to 5,461 acre -feet per year. If the redistribution
of the revised total quantity of water available to Round Rock between
Current Water and Option Water, as shown in Paragraph 2. and 3. of the
enclosed Agreement, is not satisfactory please advise me immediately.
If I have not received a written request for Round Rock by November
21, 1984 to reduce its Current Water allocation and increase its
Option Water allocation, all allocations will remain as indicated in
the above table.
Please contact me if you have any questions concerning the Agreement
or the quantities of water allocated. You are requested to sign and
return three (3) copies of the Agreement to me not later than January
4, 1985. The Agreement will be presented to the Board of Directors of
the Brazos River Authority at its January 14, 1984 meeting for
approval and authorization for execution by the Authority's General
Manager.
The Authority's staff and our engineers are continuing to work on the
next phase of planning for a regional system to transmit, treat and
distribute surface water to the participating entities. You will be
contacted within the next two weeks concerning additional engineering
studies and the scheduling of a meeting of all participants.
RAR:bb
Encl.
Very truly yours,
ROY A. ROBERTS
Assistant General Manager
WATER SUPPLY AGREEMENT BETWEEN
BRAZOS RIVER AUTHORITY AND CITY OF ROUND ROCK
AGREEMENT made this day of , 1985,
by and between BRAZOS RIVER AUTHORITY ( "Authority "), a river
authority of the State of Texas, and THE CITY OF ROUND ROCK
( "City "), of Williamson County.
1. RECITALS. Authority has entered into contracts with the
United States of America by virtue of which it has obtained the
right to utilize a portion of the storage space in Stillhouse
Hollow Lake ( "Stillhouse ") in Bell County, Texas, constructed by
the United States Army Corps of Engineers on the Lampasas River.
Under said contract Authority has the right to supply water from
Stillhouse to various cities and others having need for water.
The purpose of this Agreement is to provide for Authority to make
available to City from Stillhouse water which City needs and for
City to purchase and pay for such water.
2. WATER SUPPLY. Beginning in January, 1985, City shall
have the right to begin withdrawals from Stillhouse and shall
thereafter pay at the rate specified in Paragraph 4, below, for
the water which it has the right to withdraw whether it is ac-
tually being withdrawn or not, in the amount of 11,753 acre -feet
per year (10.494 million gallons per day averaged over the period
of one year).
3. OPTION. Authority grants unto City an option, contingent
upon development of sufficient additional sources of supply in
Authority's basin -wide water system to enable Authority to make
such additional water available, to purchase an additional 787
acre -feet of water per year (0.703 million gallons per day aver-
aged over a period of one year) over and above that agreed to be
made available under Paragraph 2, above. At such time, now esti-
mated to be January 1, 1989, as Authority shall have completed
definitive studies of the costs and feasibility of construction
of facilities which will provide additional sources of supply of
water in Authority's basin -wide water system, the Authority will
notify City in writing of the "Completion Year" (now anticipated
to be 1993), which is defined as the year in which Authority must
begin payments for the capital cost of the additions to its
basin -wide reservoir system necessary to provide additional water
which will enable it to fulfill its obligations under this Para-
graph 3 and in which it is expected that such additional water
will be available, and of the then estimated price that will be
charged for all water made available under this Agreement begin-
ning with the Completion Year. The date on which such notice is
given is hereinafter called "Notification Date ". On or before
ninety (90) days following Notification Date, City will notify
Authority in writing of how much, if any, of the option provided
in this Paragraph it elects to exercise and how much, if any,
water in addition to the amount available to it under Paragraph
2, above, and under the option provided in this Paragraph 3, it
wishes to contract for. At the end of such ninety (90) day peri-
od, City's option with respect to water as to which it shall have
failed to notify Authority of its election to take and pay for
under the option provided in this Paragraph 3, shall terminate.
Should City notify Authority that it desires to have water made
available to it in excess of the amounts provided in Paragraph 2,
above, and under the option provided in this Paragraph 3, Author-
ity will, on or before 210 days following Notification Date, in-
dicate the amount of water in addition to that provided in Para-
graph 2, above, and under the option already described in this
Paragraph 3, it can make available to City on account of the
failure of others (including parties who do not have rights simi-
lar to those provided in Paragraph 2, above) having agreements
similar to this Agreement to exercise the options provided in
said agreements. The amount which can thus be made available
shall be the product of multiplying the amount sought by City by
the quotient obtained by dividing the number of acre -feet of
water with respect to which the parties having such similar
agreements shall have failed to have exercised their options by
Page 2
the total number of acre -feet of water sought under provisions
similar to this by others with contracts similar to this Agree-
ment. Further, Authority will, in the same written notice,
identify the then anticipated Completion Year and update its
estimate of the price for water that will be in effect beginning
with the Completion Year. On or before 270 days following Noti-
fication Date, if City shall elect to take the additional water
available to it as a result of failure of others to exercise
their options it will give Authority written notice of such elec-
tion. Failure to give such notice shall result in termination of
City's right to receive such additional water. Election by City
to exercise the option provided in this Paragraph shall commit
Authority to undertaking its best efforts to complete by or be-
fore the Completion Year the additions to its basin -wide water
supply system required to make water available to City in addi-
tion to that committed under Paragraph 2, above. However, City
and Authority understand that Authority's ability to make water
available to City pursuant to this Paragraph 3 is contingent upon
the exercise by parties to other agreements similar to this of
the options for additional water granted in such agreements.
Water to be made available to City pursuant to this Paragraph 3,
shall be supplied from Stillhouse and will be available for
diversion by City as soon as water can be supplied from other
sources as a substitute for water now committed from Stillhouse
to others. Authority will give written notice to City when water
committed to City pursuant to this Paragraph 3 is available for
diversion from Stillhouse.
4. PRICE. City shall give Authority written notice ( "Elec-
tion Notice ") not less than 90 days prior to the date when it
elects to have Authority begin to make available for diversion
from Stillhouse all or part of the water committed to it under
Paragraph 2, above. Each Election Notice shall specify the total
amount of water per year in acre -feet which City elects to have
made available for diversion as well as the date on which it
elects that such availability shall begin. City will make
Page 3
payments to Authority for the water committed to City under this
contract as follows:
(a) Prior to Completion Year, water which is committed under
Paragraph 2, above, but not yet made available for diver-
sion pursuant to an Election Notice, will be paid for at a
price which is established at $23.64 per acre -foot in 1984
and which shall thereafter be escalated annually in accord-
ance with the procedure hereinafter set forth. Notification
of price for year 1985 and subsequent years will be in ac-
cordance with Paragraph 4(g), below.
(b) Prior to the Completion Year, water which is committed
under Paragraph 2 and made available for diversion from
Stillhouse pursuant to an Election Notice will be paid for
at a price which is established at $115.00 per acre -foot in
1984 and which shall thereafter be escalated annually in
accordance with the procedure hereinafter set forth. Noti-
fication of the price for year 1985 and subsequent years
will be in accordance with Paragraph 4(g), below.
(c) Beginning with the Completion Year, all water committed
to City under this Agreement will be paid for, whether or
not diverted or available for diversion, at a price which
will be established by Authority's Board of Directors for
Completion Year on the basis of the costs associated with
increasing the supplies of water available from Authority's
basin -wide system of water supply reservoirs by an amount
equal to or greater than the total of the amounts committed
to City as a result of City's exercise of the option grant-
ed to it under Paragraph 3 of this Agreement and /or to
others as a result of the exercise of options similar to
that granted to City under Paragraph 3 of this Agreement.
Such price will be escalated annually in accordance with
the procedure hereinafter set forth. Notification of price
for subsequent years will be in accordance with Paragraph
4(g), below.
Page 4
(d) Where it is provided above in this Paragraph 4 for esca-
lation of specified prices, the procedure for such escala-
tion shall be as follows:
Let P = the price established as set forth in the applica-
ble subparagraphs above;
Let A = the adjusted price after escalation;
Let X = the Consumer Price Index ( "Index ") for Urban Wage
Earners and Clerical Workers (1967 = 100) for the
following months:
then
(i) for price adjustment for any year prior to and in-
cluding Completion Year, the month of November 1983;
(ii) for price adjustment for any year after Comple-
tion Year, the month of November of the Completion
year;
Let Y = the Consumer Price Index for Urban Wage Earners and
Clerical Workers for the month of November immedi-
ately preceding the date on which the adjusted price
for water is established;
A = P x Y
X.
Should Index cease to be published, Authority shall select
another index published by an agency of the United States
goverment as being as similar as possible to Index as sub-
stitute for Index in making the computation provided for in
this subparagraph.
(e) Once City has given Authority an Election Notice it
shall thereafter pay for the amount of water which it
elects in said notice to have made available to it for
Page S
diversion at the price specified herein for water made
available for diversion pursuant to an Election Notice,
as distinguished from the price for water committed but
not yet made available for diversion, whether or not such
water is actually diverted. Once established, the amount
considered to be available for diversion by City shall
not be reduced. Actual use by City of an amount of water
during a calendar year of an amount in excess of the amounts
for which it shall then have given Election Notice shall
constitute the giving of an Election Notice to have made
available for diversion during such calendar year and
thereafter the amount used in such calendar year.
(f) The giving of an Election Notice on a date other than
January 1 shall result in City's being charged for the
amount of water specified in the Election Notice to be made
available for diversion at the price specified herein for
water available for diversion, as distinguished from com-
mitted water, for the calendar year in which the notice is
given.
(g) Authority shall determine prices to be paid by City for
water committed under this Agreement under the formulas set
forth in this Paragraph 4 for each calendar year on or be-
fore February 1 of such calendar year and shall notify City
in writing of the price thus determined on or before such
date.
The amount payable for the calendar year shall be paid by
City to Authority on or before February 15 following such
February 1. Should the amount of City's use, or the amount
of water made available to City pursuant to an Election No-
tice, increase during such calendar year above the amount
for which payment is made on February 15, City will pay the
increased amount of money due Authority on account of such
increase at the time when its next subsequent payment is due
to be made to Authority.
Page 6
(h) All payments to be made under this Agreement shall be
made at Waco, McLennan County, Texas.
5. IMPOSED COSTS. In addition to the adjustments in price
for the water as described in Paragraph 4, above, any additional
direct cost(s) or expense(s) which may be imposed on Authority in
connection with fulfillment of its obligations under this Agree-
ment by taxation or as the result of regulations or requirements
lawfully imposed by the State, the United States or any State or
Federal agency subsequent to execution of this Agreement shall be
passed through Authority to City in like amount(s) and shall be
included in the adjusted price for water made available by
Authority to City under the terms of this Agreement.
6. RATE. The water to be made available to City under this
Agreement may be diverted from Stillhouse at daily rates desired
by City, provided that Authority does not covenant to make water
available for diversion by City at a daily rate in excess of five
times the average daily rate which would result in diversion dur-
ing a calendar year of the total number of acre -feet of water per
year then agreed to be made available for diversion by City.
7. COMPLIANCE WITH STATE RULES. Authority and City agree
that the effectiveness of this Agreement is dependent upon
Authority's and /or City's compliance with Rules 156.02.50.003,
156.02.50.004, 156.02.50.005 and 156.02.50.006 of the Rules of
the Texas Water Development Board (Texas Administrative Code Sec-
tions 303.112 -116).
8. CONSERVATION OF WATER. It is the intent of the parties
to this Agreement to provide to the maximum extent practicable
for the conservation of water, and City agrees that it is a
condition of this Agreement that it shall maintain and operate
Page 7
its facilities in a manner that will prevent unnecessary waste of
water.
9. INTEREST ON PAST DUE PAYMENT. In the event of failure of
City to make any payment to Authority provided to be made in this
Agreement at the time when same shall be due, the past due pay-
ment shall bear interest at the rate of 18% per annum.
10. CANCELLATION FOR NONPAYMENT. Should City fail to make
payment to Authority when due hereunder, Authority may, by writ-
ten notice of such nonpayment delivered to City on or before 30
days before the date specified in said notice for cancellation,
provided that the nonpayment with respect to which notice has
been given shall not be cured by the date thus specified in such
notice, cancel this Agreement. In the absence of cancellation of
this Agreement by Authority, the obligation of City to make the
payments for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
11. FORCE MAJEURE. Neither party hereto shall be under any
liability or be deemed in default with respect to its obligations
under this Agreement for any failure to perform or for delay in
performing such party's obligations hereunder where such failure
or delay is due to acts of God, fire, storm, flood, war, riots,
sabotage, drought, low inflows of water to Stillhouse, strikes or
other differences with labor (whether or not within the power of
the parties to settle same), decrees or orders of the courts or
other governmental authority, or other similar or dissimilar
causes not within the reasonable control of such party and not
due to negligence of such party, while and to the extent that the
performance is prevented by such cause (Force Majeure) and due
diligence is being used to resume performance at the earliest
practicable time. Notwithstanding the provisions of this para-
graph for Force Majeure, the obligation of City to make payments
for water called for in Paragraph 4, above, shall be un-
conditional and absolute.
Page 8
12. WAIVER. Any waiver at any time by any party of its
rights with respect to default under this Agreement shall not be
deemed a waiver of such rights with respect to any subsequent de-
fault or matter.
13. REMEDIES. Nothing in this Agreement shall be construed
as, in any manner, to abridge, limit or deprive either party
hereunto of any means which it would otherwise have of enforcing
any right or remedy either in law or in equity for breach of any
of the provisions hereof.
14. ARBITRATION. Disputes between the parties arising under
this Agreement shall be submitted to arbitration under the rules
of the American Arbitration Association.
15. WITHDRAWAL FACILITIES. The provision of facilities for
diversion from Stillhouse of the water agreed to be made avail-
able by Authority to City hereunder shall be the responsibility
of City. Authority shall assist City in obtaining an easement
for right -of -way for City's diversion facilities across United
States Government lands at Stillhouse at no cost to City subject
to the conditions that the design and location of such facilities
shall be approved by the District Engineer, Fort Worth District,
U.S. Army Corps of Engineers, that City shall prepare and furnish
all documentation necessary for obtaining the easement including
a map of convenient size locating the point of diversion by
course and distance from a survey corner or other identifiable
points, which map shall at that time be made a part of this
Agreement as Appendix I, and that City shall operate the facil-
ities located on United States Government lands in a manner ac-
ceptable to the District Engineer, Fort Worth District, U.S. Army
Corps of Engineers.
16. METERING. City agrees that it shall install, operate and
maintain meters for the accurate measuring of all water diverted
Page 9
from Stillhouse. Further, such meter or meters shall be tested
and calibrated for accuracy by and at the expense of City once
each calendar year at intervals of approximately 12 months, and a
report of such test and calibration shall be furnished to Author-
ity. Authority shall be given at least two days prior notice of
the time of any test and calibration of City's meters, or any of
them, and Authority shall have the right to have a representative
present at each test to observe the test and any calibrations
found thereby to be necessary. Authority shall have the right to
inspect and check the accuracy of City's meters at any time dur-
ing usual business hours after not less than one nor more than
five days notice. In the event any question arises at any time
as to the accuracy of any such meter, such meter shall be tested
promptly upon demand of the Authority, the expense of such test
to be borne by Authority if the meter is found to be correct and
by City if it is found to be incorrect. Readings within 2% of
accuracy, plus or minus, shall be considered correct. If, as a
result of any test, any meter is found to be registering in-
accurately (i.e., in excess of 2% of accuracy, plus or minus),
the readings of such meter shall be corrected at the rate of its
inaccuracy for any period which is definitely known and agreed
upon, but in case the period is not definitely known and agreed
upon, then the shorter of the following periods shall be used as
the basis for correction:
(a) a period extending back either 60 days from the date
of demand for the test or, if no demand for the test was
made, 60 days from the date of the test;
(b) a period extending back half of the time elapsed since
the last previous test;
and the records of readings shall be adjusted accordingly. Fol-
lowing each test of a meter, the same shall be calibrated by City
to register accurately.
Page 10
17. REPORTING. City agrees that it will keep accurate
records of the daily readings from the meter or meters installed
pursuant to Paragraph 16, above. These records shall be subject
to inspection by Authority at reasonable times and places. City
shall submit reports to Authority by the 10th day of each month
showing the amount of water pumped each day during the preceding
month.
18. SURPLUS WATER. City may not cancel this Agreement nor
reduce the amounts of water it is obligated to pay for under the
terms of Paragraphs 2 and 3, above. However, should City deter-
mine after the Completion Year that it has water surplus to its
anticipated needs from water to be supplied by the Authority
under this Agreement, and upon City's notification to Authority
of the quantity of water City designates as surplus water,
Authority will use its best efforts to find another party who is
able and willing to purchase such surplus water upon terms and at
a price not less favorable to Authority than the price and terms
under this Agreement. Should Authority succeed in finding such a
party and enter into a contract for sale of the surplus water at
such price and upon such terms, then City's obligation to pay for
such surplus water shall be cancelled, and the parties shall
thereupon have no further obligations to one another with respect
to such surplus water; otherwise, the provisions and obligations
of this Agreement shall remain unchanged.
19. TERM OF AGREEMENT. The term of this Agreement shall be
for a period of 35 years from January 1, 1985, and the Agreement
shall be extended at the written request of City for so long as
Authority continues to have the right to use storage in Still -
house for water supply purposes.
20. NOTICES AND CERTIFICATIONS. Notices and certifications
provided for in this Agreement shall be in writing. The same
shall be delivered by mailing certified mail, postage paid,
Page 11
return receipt requested, to the respective parties at the fol-
lowing addresses:
ATTEST:
ATTEST:
Authority:
City of Round Rock:
Either party may change its address as shown above by writ-
ten notice to the other party. Notices shall be deemed to have
been delivered on the business day following their deposit in the
United States mail, postage paid and properly addressed and
certified.
DATED THIS THE
Assistant Secretary
City Secretary
Brazos River Authority
P.O. Box 7555
Waco, Texas 76714 -7555
City of Round Rock
214 East Main Street
Round Rock, Texas 78664
day of , 1985.
BRAZOS RIVER AUTHORITY
By
Carson H. Hoge, General Manager
CITY OF ROUND ROCK
By
Mayor
Page 12
l( r
Afioi(
Honorabl.- Mike Robinson
Mayor, Ci of Round Rock
214 East M.'n Street
Round Rock, exas 78664
Dear Mayor Rob. son:
BRAZOS RIVER AUTHORITY
4400 COBBS DRIVE • P. 0. 80X 7555 • TELEPHONE AREA CODE 817 776-1441
This letter is to confirm a meeting of all participants
in the Regional Treatment and Transmission System (RTTS)
scheduled for Wednesday, December 5 1984 at 7:0Q Pd—in the
Authority's Central Ofrne located at 4400 Cobbs Drive
in Waco. I have enclosed a Waco map showing the location of the
Authority offices.
The RTTS project has reached another critical point and
this meeting is needed to discuss not only the water supply
contracts but also the future steps in the development of the
project. At the meeting each participant will receive the final
version of its water supply contract. This contract will reflect
the final distribution of "current use water" and "option water"
available from Stillhouse Hollow Reservoir. The Authority staff
will review the contract provisions and answer any questions
about them. The project engineer with Henningson, Durham and
Richardson (HDR) will discuss the next step in the project which
will be to evaluate several modifications or alternative
approaches to the RTTS recommended plan of treating and
delivering water to the various participants. The cost and
schedule for completing these modifications will be presented by
the engineer. Finally, the Authority staff will explain the
future agreements that will be needed with the RTTS participants
to continue with the project.
If you or any member of the City's staff have any
questions regarding this meeting, please contact me.
Sincerely yours,
j J. TOM R
v / Planning Director
JTR ;bb
Encl.
cc: Mr. Bob Bennett, City Manager
WACO, TEXAS 76714-7555
November 27, 1984
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