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R-87-1045 - 9/10/1987RESOLUTION NO. ____ __ WHEREAS, the City of Round Rock has previously entered into a contract with certain other parties to construct facilities for transportation and treatment of wastewater; and WHEREAS, one of the parties experienced financial difficulties and has been unable to proceed with their share of the project; and WHEREAS, the City of Austin is willing to contract with the City of Round Rock to provide service on an interim basis to those customers who would be without adequate service; NOW THEREFORE TEXAS ATTEST: J BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, That the Mayor be and is hereby directed to execute a contract with the City of Austin for the provision of interim wastewater service according to the terms of the attached contract, said contract // incorporated herein for all purposes. RESOLVED this / Q day of Q , 1987. NNE LAND, City Secrets Y MIKE ROBINSON, Mayor City of Round Rock, Texas THE STATE OF TEXAS COUNTY OF TRAVIS AGREEMENT REGARDING WASTEWATER SERVICES BETWEEN CITY OF AUSTIN, CITY OF ROUND ROCK AND FERN BLUFF MUNICIPAL UTILITY DISTRICT KNOW ALL MEN BY THESE PRESENTS: This agreement ( "Agreement ") is entered into by and between the City of Austin ( "Austin "), Texas a home rule city acting by and through its duly authorized City Manager, the City of Round Rock, Texas, ( "Round Rock ") a home rule City acting by and through its duly authorized Mayor, and Fern Bluff Municipal Utility District ( "Fern Bluff "), a conservation and reclamation district created by the Texas Water Commission pursuant to Article 16, Section 59 of the Texas Constitution and Chapter 54 of the Texas Water Code acting by and through its duly authorized President regarding the provision of wholesale wastewater service to Fern Bluff by Austin for the purposes and consideration herein contained. W I T N E S S E T H: WHEREAS, Austin consented to the creation of Fern Bluff on August 8, 1985, pursuant to the Agreement Concerning Creation and Operation of Fern Bluff Municipal Utility District (consent agreement) and Fern Bluff was created by Order of the Texas Water Commission on June 11, 1986; and WHEREAS, Austin, Round Rock and Fern Bluff desire to provide for wastewater services to Fern Bluff through Austin's participation in a regional wastewater collection, treatment and disposal system in accordance with that certain agreement entitled "Interim Regional Agreement" by and between Austin, Round Rock, Brushy Creek Water Control and Improvement District No. 1 of Williamson and Milam Counties ( "Brushy Creek "), and Williamson County Municipal Utility District No. 3; and WHEREAS, Austin, Round Rock, Brushy Creek and others also plan to enter into agreements regarding financing and construction of facilities necessary to provide a regional system for collection, treatment and disposal of wastewater generated by themselves, Fern Bluff as well as capacity for other parties; WHEREAS, Austin, Round Rock, Brushy Creek, and others previously entered into that certain Interim Wastewater Disposal Contract executed at or near October 15, 1986, to provide interim wastewater transportation and treatment capacity and services in the Round Rock Wastewater Transportation and Treatment System; and WHEREAS, Austin, Round Rock and Fern Bluff desire to set forth their understanding and agreement for Fern Bluff's receipt of wholesale wastewater service and commitment of wastewater capacity from Austin; NOW, THEREFORE, for and in consideration of the mutual covenants and obligations contained herein and other good and ' x f valuable consideration, the receipt and sufficiency of which a11, parties acknowledge, the parties agree as follows: 3- 1087.1 - 2 (10/20/87) I. AUSTIN'S PROVISION OF WASTEWATER SERVICE TO FERN BLUFF A. Austin will provide permanent retail wastewater services in an amount not to exceed 586 Living Unit Equivalents ( "LUEs ") pursuant to that certain Agreement Concerning Creation and Operation of Fern Bluff Municipal Utility District and according to the build -out schedule attached hereto as Exhibit "A" and incorporated herein for all purposes. B. Austin will provide for billing of wastewater to Fern Bluff which shall be treated as if it were a customer of Austin, including collection of all fees associated with provision of wholesale wastewater service and collection of Capital Recovery Fees and at a rate equal to two (2) times the inside City rate for Round Rock customers as established by Chapter 10, Section 4; b, Round Rock City Code. C. Austin will escrow all wastewater Capital Recovery Fees ( "Fees ") collected pursuant to duly enacted ordinance of Austin and such Fees and the interest thereon shall remain escrowed until the occurrence of the first of any one of the following: 1. Until Austin contracts to provide wastewater service to all or a portion of Fern Bluff. At the time such a contract is executed, Austin will return Fees and the } interest thereon to Fern Bluff for any portion of wastewater service not provided by Austin. 2. Until such time, not to exceed six (6) months from the date of execution of this Agreement, as the 3- 1087.1 - 3 (10/20/87) participants in the proposed regional system determine that the construction and initial operation of a regional system within three and one -half years is not reasonably assured. If, in such event Austin contracts x to provide permanent wastewater service to Fern Bluff, Austin shall have ownership of 'escrowed Fees and interest thereon for that portion of wastewater service provided. 3- 1087.1 - 4 (10/20/87) • 3. Until such time, not to exceed six (6) months from the date of the execution of this Agreement, as the participants in the proposed regional system determine that the construction and initial operation of a regional system within three and one -half years is not reasonably assured. If, in such event Austin elects not to contract at that time to provide all of the permanent wastewater service for all of Fern Bluff's service, the escrowed Fees and the interest thereon for any portion of service not provided by Austin shall be returned to Fern Bluff for its use in securing permanent wastewater service for any portion of wastewater service not provided by Austin, or 4. The expiration of five (5) years from the date of execution of this Agreement at which time the escrowed funds with interest earned thereon shall be returned to Fern Bluff if no agreement to the contrary has been agreed to by Fern Bluff and Austin. II. ROUND ROCK'S PROVISION OF SERVICE TO AUSTIN A. Round Rock will provide 586 LUEs of permanent wastewater service to Austin for the purpose of providing service to Fern Bluff pursuant to this Agreement. B. Round Rock will bill Austin monthly for wastewater service to Fern Bluff at a rate equal to two (2) times the inside Round Rock wastewater rate as established by the Chapter 10, Section 4;,b, Round Rock City Code based on the amount of wastewater consumed provided that Austin shall deduct an amount equivalent to its cost associated with billing and administering the Fern Bluff account. C. Round Rock will pursue, to the extent practicable, the construction of a regional wastewater collection, treatment and disposal system capable of providing service to Austin, Round Rock, Fern Bluff and others in accordance with the Interim Regional Agreement. If in the event Round Rock becomes the permanent service provider for all or a portion of Fern Bluff, Fern Bluff agrees to pay those rates and fees assessed other out -of -city Round Rock customers. III. FERN BLUFF WASTEWATER SERVICE A. Fern Bluff will pay Austin for wastewater service including payment of all applicable connection fees and Capital Recovery Fees established by duly enacted ordinance of Austin as set forth in Article I, Section C above, in addition to monthly charges as established by Chapter 10, 3- 1087.1 - 5 (10/20/87) Section 4; b of the Round Rock City Code and surcharges established in the consent agreement. B. Fern Bluff agrees that this Agreement Regarding Wastewater Services amends the consent agreement only with respect to wastewater services to the extent specifically stated herein. IV. This Agreement shall remain in effect so long as service is to be provided under this Agreement unless terminated by agreement of all the parties hereto, but in no event longer than forty (40) years. V. This Agreement shall be subject to change of modification only with the mutual consent of the parties hereto. VI. This Agreement shall not be assignable by any party without the prior written consent of the other parties. FULLY EXECUTED AND EFFECTIVE this the 26th day of October, 1987. ATTEST: CITY OF AUSTIN James E. Aldridge City Clerk 3 1087.1 - 6 (10/20/87) By: w � Joh r,. Ware Acting City Manager ATTEST: By: By: 3- 1087.1 ATTEST: Gregor 0. Zaney Assists -ecret CITY OF ROUND ROCK By: Mike Robinson Mayor FERN BLUFF MUNICIPAL UTILITY DISTRICT By: 3 1087.1 - 7 (10/20/87) Prossner President EXHIBIT "A" Initial Build -Out Schedule Number of Living Unit Equivalents to be provided by a certain date Total of: Through: 90 L.U.E.s 269 L.U.E.s 512 L.U.E.s 586 L.U.E.st December 31, 1987 December 31, 1988 December 31, 1989 December 31, 1990 3- 1087.1 - 8 (10/20/87)