R-85-699 - 3/28/1985RESOLUTION NO. Z99,(''
WHEREAS, the Fern Bluff Municipal Utility District (Fern Bluff
MUD) is proposed to be formed on property located within the City's
proposed certificated area for water service, and
WHEREAS, Fern Bluff MUD has requested that the City sell water
service to it, and
WHEREAS, the Council wishes to sell water to Fern Bluff MUD in
accordance with the terms and conditions contained within the
attached agreement, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
That the Mayor is hereby authorized and directed to execute on
behalf of the City an agreement with Fern Bluff MUD for the sale of
water.
RESOLVED this 28th day of March, 1985.
ATTEST:
JO iNE LAND, City Secretary
J004RES
MIKE ROBINSON, Mayor
City of Round Rock, Texas
WATER SUPPLY AGREEMENT BETWEEN
THE CITY OF ROUND ROCK, TEXAS AND
FERN BLUFF MUNICIPAL UTILITY DISTRICT
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF WILLIAMSON:
This Agreement is made and entered into as of the date last
herein written by and between the CITY OF ROUND ROCK, TEXAS
( "City "), a home rule city located in Williamson County, Texas;
BILL MILBURN, INC., a Texas corporation, acting by and through
its duly authorized president ( "Milburn "); and THE FERN BLUFF
MUNICIPAL UTILITY DISTRICT ( "District "), a conservation and
reclamation district created pursuant to Article XVI, Section 59
of the Texas Constitution and operating under the provisions of
Chapter 54 of the Texas Water Code.
W I T N E S S E T H:
WHEREAS, the City operates a water treatment and
distribution system serving areas within and adjacent to the
City; and
WHEREAS, Milburn is the owner of a majority in value of the
land comprising the District, which consists of approximately
694.866 acres; and
WHEREAS, the District and Milburn desire to obtain access to
the City's water supply in order to provide a dependable supply
of potable water for the District; and
WHEREAS, the District is authorized by Chapter 54 of the
Texas Water Code to purchase, construct and acquire, within or
without its boundaries, works, improvements, and facilities
helpful or necessary to supply water for municipal uses, domestic
uses, and commercial purposes and to collect, transport, and
dispose of waste; and
WHEREAS, the Board of Directors of the District has
determined that it is in the best interest of the District to
cooperate with the City in the acquisition and construction of
extensions to the City's water supply facilities; and
WHEREAS, the City has determined that it is appropriate to
provide water service within said area in order to protect the
health and welfare of present and future residents of the area
and portions of the City in proximity thereto; and
WHEREAS, the City and the District are authorized to execute
this Agreement by Article 1109j of the Texas Revised Civil
Statutes, as amended;
NOW THEREFORE, for and in consideration of the premises and
the mutual obligations and benefits herein contained, the City
and the District hereby agree as follows:
SECTION I
Definitions
1.01 The terms and expressions used in this Agreement,
unless the context clearly indicates otherwise, shall have
meanings as follows:
a. "Project" means the water mains, elevated storage
tank, and appurtenances, and other water improvements more fully
described in Section X, the Fern Bluff Preliminary Engineering
Report dated November, 1984 and revised February 1984 attached
hereto as Exhibit "A ", and which Section is incorporated herein
for all purposes.
b. "Board" and "Board of Directors" means the Board
of Directors of the District.
c. "Bonds" means the bonds or notes issued by the
District for acquiring, by purchase and /or construction, the
Project, whether in one or more series or issues.
d. "Bond Resolution" means any resolution of the
Board of Directors authorizing the issuance of Bonds and
providing for their security and payment, as such resolution may
be amended from time to time as therein permitted.
e. "Force Majeure" means acts of God, strikes,
lockouts, or other industrial disturbances, acts of public enemy,
orders of any kind of the Government of the United States or the
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State of Texas or any civil or military authority, insurrection,
riots, epidemics, landslides, lightning, earthquake, fires,
hurricanes, storms, floods, washouts, droughts, arrests,
restraint of government and people, civil disturbances,
explosions, breakage or accidents to machinery, pipelines, or
canals, or other causes not reasonably within the control of the
party claiming such inability.
f. "Water" means potable water meeting the
requirements of the Texas Department of Health for human
consumption and other domestic causes.
SECTION II
Construction
2.01 Subject to the limitations set forth herein, the
District will acquire, by purchase and /or construction, the
Project. The Consulting Engineers for the Project shall be
Haynie & Kallman, Inc. It is agreed that the Consulting
Engineers may be changed, but only by agreement of both the
District and the City. The District shall pay all actual costs
of acquiring its pro -rata share of the Project through the
issuance of Bonds to provide the money for such payment, all in
the manner hereinafter described. The District agrees to proceed
promptly to obtain the necessary approvals to issue the Bonds and
acquire the Project. Upon obtaining said approvals, the District
will proceed promptly to issue and sell the Bonds and thereafter
to purchase and /or construct the Project as soon as practicable,
but shall not be liable for any damages occasioned by delays in
completion of the Project.
2.02 The proceeds from the sale of the Bonds will be used to
pay all of the District's expenses and costs in connection with
the Project and the Bonds, including, without limitation, all
financing, legal, printing, and other expenses incurred in
connection with the issuance, sale, and delivery of the Bonds.
Such Bonds will be issued in an amount sufficient to cover the
costs of the Project and all the aforesaid expenses and to
provide for the payment of interest on the Bonds for a period not
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to exceed two (2) years. A substantial draft of each Bond
Resolution of the District, showing the principal amount,
maturities, funds created, and other pertinent features with
respect to the Bonds authorized thereby, shall be delivered to
the City prior to the delivery to the purchaser of any Bonds
authorized by such Bond Resolution.
2.03 The District may enter into such contracts as are
necessary to provide for purchase and construction of the entire
Project, and said contracts shall be approved and executed as
required by the laws and regulations applicable to municipal
utility districts and shall be awarded by competitive bidding as
directed by the State. In addition, each such contract must be
submitted to and approved by the District prior to execution by
the District. The District shall deposit all proceeds from the
sale of Bonds (after deducting therefrom any amounts required to
be deposited to any fund created by a Bond Resolution and the
amount of all expenses of issuing the Bonds) into a Construction
Fund, at a depository of the District. The District shall draw
on and use such Construction Fund to pay the costs of acquiring
the Project, provided that expenditures from the Construction
Fund must be for Project costs recommended for payment by the
Consulting Engineers. Any Bond Proceeds remaining in the
Construction Fund after completion of the Project shall be
deposited into the Debt Service Fund created by the Bond
Resolution.
2.04 Upon completion of the purchase and construction of the
portion of the Project outside the boundaries of the District,
the City shall become the owner of that portion of the Project
after final acceptance by the City and will thereafter operate
and maintain that portion of the Project at its own expense. The
City hereby reserves the oversize capacity of those certain water
improvements within the boundaries of the District, as described
on Exhibit "B" attached hereto and incorporated herein for all
purposes, to be owned by the District. The City shall at all
times reserve sufficient capacity within that portion of the
Project dedicated to the City for the District's water needs.
2.05 During such time as the District or its contractors
engage in construction work in relation to the Project, the
District agrees to require all contractors performing work to
provide adequate insurance in relation to the Project and work
being performed as it is usually carried by contractors
constructing like properties and also require all contractors to
carry worker's compensation insurance. Upon completion of
construction of the Project and the dedication thereof to the
City under the terms hereof, the City agrees to carry insurance
on the portion of the Project accepted by the City of a kind and
in an amount which is customarily carried by municipal
corporations in relation to the ownership and operation of
similar utility properties.
2.06 The obligation of the District to acquire the Project
shall be conditioned upon and subject to the following:
a. Approval of the Project by the Texas Department of
Water Resources, Texas Department of Health, and any and all
other local, state or federal agencies having jurisdiction; and
b. Sale of Bonds in an amount sufficient to pay the
costs of acquisition of the Project and the expenses of issuing
the Bonds; and
c. The District's ability, or the ability of its
contractors, to obtain all material, labor, and equipment
necessary for the Project.
2.07 By these presents, the City authorizes use by the
District of any and all real property, streets, alleys, public
ways and places, and general utility or water easements of the
City for acquisition and construction of the Project, so long as
such use by the District does not interfere with any lawful use
by the City. The City further agrees that it will provide right
of way for the Project and assist with acquisition of any
necessary right of way by purchase, contract, or condemnation.
The City's costs of acquiring such right of way shall be
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considered Project costs and will be reimbursed by the District
out of Bond Proceeds.
2.08 If, by reason of Force Majeure, any party hereto shall
be rendered unable, wholly or in part, to carry out its
obligations under this Agreement, then such party shall give
notice and full particulars of such Force Majeure in writing to
the other party within a reasonable time after occurrence of the
event or caused relied upon, and the obligation of the party
giving such notice, so far as it is affected by such Force
Majeure, shall be suspended during the continuance of the
inability then claimed, except as hereinafter provided; but for
no longer period, and any such party shall endeavor to remove or
overcome such inability with all reasonable dispatch. The
settlement of strikes and lockouts affecting this Agreement shall
be entirely within the discretion of the party having the
difficulty, and the above requirement that any force majeure
shall be remedied with all reasonable dispatch shall not require
the settlement of strikes and lockouts by exceeding to the
demands of the opposing party or parties when such settlement is
unfavorable in the judgment of the party incurring the
difficulty.
SECTION III
Water Services
3.01 The City shall sell and deliver water to the boundaries
of the District, for commercial and domestic uses, to be supplied
from the City's water distribution system as extended by the
District pursuant to this Agreement. The exact point or points
of delivery of water to the District shall be agreed upon by the
City engineer and the District engineer. The City presently has
or will obtain an adequate water supply with which to provide
service to the District; provided, however, that the supply of
water to the District may be reasonably limited by the City on
the same basis and to the same extent as the supply of water to
any other customers within the City. Retail water service within
the District shall be provided by the District to individual
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customers. Water meters for customers of the District shall be
purchased by the District from the City at cost. The District
shall promote compliance with the City's water conservation
ordinances, as amended from time to time. The City shall be the
sole source of water to the District and the District shall not
seek to develop its own wells, except in the event that the City
is no longer able to provide water service as contemplated
hereby.
3.02 The sale of water shall be by master meters at all
connections to the City water distribution system. The rates
charged by the City to the District for bulk water actually
delivered pursuant to this Agreement shall be as follows:
The District shall pay the City per month the minimum
monthly water charge plus one dollar $1.00 times the number of
water meter connections with the District. In addition the
District shall pay for actual water used an amount based upon the
following formula:
1. For the first 20,000 gallons usage per month times the
number of water meter connections there shall be
charged the in -city rate for 0 to 20,000 gallons per
month multiplied by the below described appropriate
Multiplier Factor.
2. For the next 55,000 gallons usage per month times the
number of water meter connections there shall be
charged the in -city rate for 20,001 to 75,000 gallons
per month multiplied by the below described appropriate
Multiplier Factor.
3. For over 75,001 gallons usage per month times the
number of water meter connections there shall be
charged the in -city rate for 75,001 and over gallons
per month multiplied by the below described appropriate
Multiplier Factor.
The Multiplier Factor which shall be used to determine the
rate charged for bulk water by the City to the District shall be
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increased from year to year until the fifth year of service as
follows:
First year of service
Second year of service
Third year of service
Fourth year of service
Fifth year of service
and thereafter
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1.65
1.70
1.80
1.90
2.00
The "years of service" shall be twelve (12) month increments of
service rather than calendar years.
It is understood that the City water rates are based upon a
processive formula which increases the rate for water sales at
certain levels of consumption. Attached as an example for
illustrative purposes only is Exhibit "C ", which sets forth
potential water rates based upon measured flow through the master
meter(s). It is understood and agreed the number of connections
used as a multiplier to determine the monthly charge for water
shall be increased each month by the number of meters connected
the previous month. The District agrees that the rates set by
the City and charged to the District may be amended from time to
time as in - City rates are amended from time to time so as to
maintain the equivalent relationship between the district bulk
rate and the in -city rates as set forth above.
3.03 Metering equipment and related facilities, a meter
house or pit, and standard -type devices required for properly
measuring the quantity of water delivered to the District, shall
be installed at each point of delivery of water to the District
by the City. The District, at its expense, shall install and
provide the meter house or pit. The City, at the District's
expense, shall provide and install the meter at cost. The City,
at its expense, shall operate and maintain the metering
equipment, provided, however, that the cost of calibrating the
metering equipment shall be borne by the District if requested
more frequently than once every twelve (12) months. Any meter
registering not more than three percent (3%) above or below the
test result shall be deemed to be accurate. If any meter fails
to register for any period, the amount of water furnished during
such period shall be deemed to be the amount of water delivered
during the corresponding period immediately preceding such
failure, subject to reasonable adjustments for seasonal and
climatic considerations, unless the City and the District
otherwise agree. The metering equipment shall be read once each
City billing cycle.
3.04 During construction of all public improvements and
construction of all private structures, the District shall sell
water at in- District bulk rates to contractors and subcontractors
through appropriately identified and metered fire hydrants.
3.05 The District agrees to set and maintain water rates
sufficient to pay the following:
a. To pay for water delivered by the City pursuant to
this Agreement at rates and in amounts equal to or greater than
that hereinabove set forth.
b. For all operation and maintenance expenses in an
amount sufficient enough to meet such expenses as they come due.
c. For debt service, in combination with other
District Funds, on any Bonds issued by the District in an amount
deemed appropriate by the Board of Directors.
3.06 The District agrees to supply the City with a copy of
each action by the District setting water rates pursuant to
Paragraph 3.06 within seven (7) days of such action.
3.07 Any Bonds issued by the District may be secured by a
pledge of the Net Revenues from the operation of the District's
water and sewer and /or drainage systems, and the City covenants
to cooperate with the District and assist in the computation of
revenue and expenses of such systems.
3.8 This Agreement shall not relieve Milburn or the District
from the payment of any applicable development fees associated
with provision of water as those fees may be amended from time to
time. Provided, however, Milburn and the District shall not be
prohibited from receiving any applicable offsets or other credits
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as may be agreed upon by the parties. Such fees shall be paid at
the time land plans or plats are submitted to the City for review
under Section 5.04.
SECTION IV
Drainage Improvements
4.01 The District and the City agree that on -site run -off
detention facilities shall be constructed by the District.
Provided, however, if a reasonable and feasible plan for regional
detention is finalized prior to approval of a final subdivision
plat for property within the District, Milburn may choose to
participate in the regional detention system.
SECTION V
Governmental Approvals
5.01 Plans and specifications of off -site water facilities
outside the boundaries of the District shall be subject to
approval by the City of Round Rock.
5.02 All street and drainage improvements will be subject to
approval by the City of Austin through its subdivision approval
process. Copies of all plans and specifications relating to
street and drainage improvements which are submitted to the City
of Austin shall be submitted in duplicate form to the City of
Round Rock.
5.03 That portion of the District which is within the extra
territorial jurisdiction ( "E.T.J. ") shall remain in the City's
E.T.J.
5.04 All land plans and plats of the District shall be
subject to administrative review by the City of Round Rock.
5.05 No industrial land use shall be allowed within the
boundaries of the District.
SECTION VI
Miscellaneous
6.01 The City shall not be liable to the District or any
customer of the District for the failure of the City to provide
water service where the failure results from Force Majeure.
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6.02 The District and the Round Rock Independent School
District (RRISD) have agreed that 12 acres within the boundaries
of the District shall be sold to RRISD at the lower of the
following costs:
1. The cost of raw land at fair market value, or
2. The development cost of all utilities and adequate
ingress and egress, for use of the twelve (12) acres as
a school site. An additional three (3) acres adjoining
the school site shall be dedicated as a joint use
parkland facility to the District for joint use by the
District and RRISD.
6.03 This Agreement and the acquisition of the Project,
shall be subject to all valid rules, regulations, and laws
applicable thereto, past or promulgated by the United States of
America, the State of Texas, or any governmental or regulatory
body having lawful jurisdiction.
6.04 This Contract shall be for the sole and exclusive
benefit of the City,the District, and Milburn and shall not be
construed to confirm any benefit or right upon any other parties.
6.05 This Agreement may be amended by consent of all the
parties.
6.06 The provisions of this Contract are severable, and if
any word, phrase, clause, sentence, paragraph, section or other
part of this Agreement or the application thereof to any person
or circumstance shall ever be held by any court of competent
jurisdiction to be invalid or unconstitutional for any reason,
the remainder of this Agreement shall be construed as if such
invalid provision was not contained herein.
6.07 This Agreement shall be in force and effect until the
Project is completed and accepted in whole by the City pursuant
to the terms hereof, at which time this Agreement shall
terminate, provided that in no event shall the terms of this
Contract exceed forty (40) years.
6.08 This Agreement may be executed by the City prior to the
creation of the District and shall be binding upon the City for a
period of two (2) years, pending creation and confirmation of the
District. Upon said creation and approval and execution of this
Contract by the Board of Directors, it shall thereafter be
binding upon all parties in accordance with its terms.
6.09 The above and foregoing agreement, including the
exhibits which are attached hereto and made a part hereof,
contain the entire agreement between the parties hereto and shall
in no way be conditioned, modified, or supplemented except by
written agreement executed by both parties.
6.10 The City reserves the right to inspect the construction
of all portions of the Project outside the District's boundaries
which will be owned and operated upon completion by the City.
Milburn, the District, or their assigns will be responsible for
reimbursing the City the costs for inspection.
IN WITNESS WHEREOF, the City, Milburn, and the District,
acting under authority of their respective governing bodies, have
caused multiple copies of this Agreement to be duly executed,
each of which to be of equal dignity, all as of the � �day of
OIr n , 1985.
ATTEST:
CITY OF ROUND ROCK, TEXAS
By:
BILL MILBURN, INC.,
a Texas corporation
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Bv:
ike Robinson, Mayor
ill Milburn, President
rsc6.12
FERN BLUFF MUNICIPAL UTILITY
DISTRICT
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By:
President,
Board of Directors
EXHIBIT B
Fern Bluff M.U.D.
Water Transmission Mains
and Storage Facilities
Fern Brushy Round
Item Total Bluff Creek Rock
1. 24" Waterline (w /i Fern
Bluff) $ 316,800 $ 203,702 $ 113,098 $ - --
2. 16" Waterline (w /i Fern
Bluff) 264,000 264,000
3. 1,500,000 Gallon Elevated
Water Storage Tank 1,125,000 348,750 452,250 324,000
SUBTOTAL 1,705,800 816,452 565,348 324,000
4. Engineering (10%) 170,580 81,645 56,535 32,400
5. Contingencies (10 %) 170,580 81,645 56,535 32,400
TOTAL $2,046,960 $979,742 $678,418 $388,800
FERN1 /8:1r
Num. of Water 0- 20,000 20,001- 75,000 75,001 -over
Meter In -City Rate* In -City Rate* In -City Rate*
Year Connections Gallon Usage Gallon Usage Gallon Usuage
85 50 0- 1,000,000 1,000,000- 3,750,000 3,750,000+
86 143 0- 2,860,000 2,860,000- 10,725,000 10,725,000+
87 430 0- 8,600,000 8,600,000- 32,250,000 32,250,000+
88 894 0- 17,880,000 17,880,000- 67,050,000 67,050,000+
89 1318 0- 26,360,000 26,360,000- 98,850,000 98,850,000+
90 1728 0- 34,560,000 34,560,000- 129,600,000 129,600,000+
91 2197 0- 43,940,000 43,940,000- 164,775,000 164,775,000+
* Current In -City Rates by Step are:
0- 20,000 gallons - $1.20 per 1000 gals.
20,001 - 75,000 gallons - $1.45 per 1000 gals.
75,001 and over $1.70 per 1000 gals.
Note:
EXHIBIT "C"
TABLE I
The minimum City charge plus one dollar ($1.00) multiplied by the number of
water meter connections shall be charged in addition to the amounts set forth
in this Table. The number of units per year set forth in the Table are for
demonstrative purposes only and are not limitations or minimums for actual
connections. Current minimum City charge is $5.50.
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