Loading...
R-89-1278 - 5/11/1989WHEREAS, on January 24, 1985, the City of Round Rock (City) and the Brazos River Authority (Authority) entered into a Water Supply Agreement (Agreement), and WHEREAS, the recaptured of a very significant quantity of basin - wide system water provides an opportunity for Authority to combine and share the costs of existing and future water supplies in its basin -wide system operations and to provide water to City at a substantially reduced cost when compared to the cost which would result from developing a major new reservoir to meet City's needs, and WHEREAS, the City recognizes the potential benefit of such an arrangement and desires to work toward that end, Now Therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Brazos River Authority is hereby requested to provide a proposed water supply contract to replace Agreement for the sale of raw water to the City from the Brazos River Authority's basin -wide system of current and future reservoirs generally in accordance with the attached "Outline of Water Supply Proposal" (Outline), and That the quantity of Current Use Water, as defined in Outline, needed by the City through the year 2026 is 17,214 acre -feet per year, and That the quantity of Option Water, as defined in Outline, which City wishes to have available to it during the extended term (2027 through 2040) of the proposed contract is -0- acre -feet per year. RESOLVED this A 1- day of May, 1989. ATTEST: NE G6RESBRAZOS LAND, City Secretary RESOLUTION NO. /2 74 K MIKE ROBINSON, Mayor City of Round Rock, Texas REVISED Outline of Proposed Approach For Contracting With Option Contract Holders (OCH) With Election Notice Water 4 -24 -89 I. Purpose of Contract: To commit to OCH water supplies that meet present and future water needs. II. Terms of Contract: A. Initial term: 1990 -2026. B. Extended term: Each contracting party shall have option to extend contract indefinitely after expiration of initial term, subject to conditions outlined below. III. Commitments of Water: A. For initial term of contract (1990- 2026). 1. A quantity of water (Current Use Water) equal to projected needs through the year 2026 will be made available from existing sources to each OCH beginning in 1991. 2. An option will be purchased by each OCH for the additional amount of water (Option Water) such OCH wishes to be able to choose to have made available to it during the extended term of the contract. It is assumed that the amount of Option Water desired by each OCH will be equal to the difference between the total amount presently committed to such OCH from existing and future sources in the option contracts and the quantity made available to such OCH as Current Use Water during the initial term of the contract. B. For the extended term of contract, each contracting party will have made available to it the amounts of water made available to it during the initial term of the contract, plus the amounts of Option Water with regard to which it exercises its option, plus such additional amounts which may become available to it as a result of others failing to exercise their options and for which it wishes to contract. IV. Exercise of Options: A. On or about January 1, 2022, the Authority will notify each contracting party that it must exercise or lose the options it has available to it. B. On or before April 1, 2022: 1. Each contracting party must notify the Authority of the amounts of Current Use Water then available to it that it wishes to continue to have made available to it during the extended term of the contract, or lose the option to have the contract extended. 2. Each contracting party must notify the Authority of the amount of Option Water then available to it that it wishes to have made available to it as Current Use•Water during the extended term of the contract, or lose the option to have such water made available to it during the extended term of the contract. 3. Each contracting party must notify the Authority of any amounts of water it wishes to have made available to during the extended term of the contract in addition to the total amount it will have available to it as a result of exercise of its options and furnish a fifty -year projection of water supply needs. C. On or before July 1, 2022, the Authority will notify each contracting party of the amounts of water that can be made available to it during the extended term of the contract in addition to the total amount of Current Use Water it will have available to it as a result of exercise of its options and of the portions of such additional amount of water that can be designated Current Use Water and Option Water. D. On or before January 1, 2023, each contracting party will execute a confirmation regarding the amounts of water it is contracting to have made available to it during the extended period of the contract, including both the water to which it has options under the contract and the additional water the Authority has given notice can be made available to it during the extended period of the contract as Current Use Water or Option Water. V. price of Water: A. Payments for both Current Use Water and Option Water will begin in 1991. B. The price for Current Use Water shall be as follows: 1. For 1991 and 1992 - $35.00 per acre -foot in 1989 dollars 2. For 1993 and 1994 - $65.00 per acre -foot in 1989 dollars 3. Beginning in 1995 and thereafter - $85.00 per acre -foot in 1989 dollars C. The price for Option Water will be $10.00 per acre -foot in 1989 dollars. D. Prices in 1989 dollars are firm for both the initial and extended terms of the contract for Current Use Water. The price for Option Water is firm for the initial term of the contract, but will be set by the Authority for the extended term of the contract on or before July 1, 2022. 2 E. All prices will be increased annually in proportion to any increases in the Consumer Price Index (or acceptable successor index). F. Current Use Water cannot be converted to other categories. Option Water can be converted to Current Use Water in accordance with terms of the contract relating to exercise of options. VI. Limiting Conditions: A. Terms of this water supply proposal and any subsequent contract offer shall be subject to adjustment if contracting parties with similar proposals to this outline and other OCH's contract for more or less water than what the terms of this offer are based on. - B. The obligation to make Option Water available for conversion to Current Use Water shall be contingent upon the Authority's ability to provide an additional supply source. In the event Authority is unable to make available the amounts of water required to allow full conversion of Option Water to Current Use Water, the amounts paid by contract holders for Option Water shall be refunded in proportion to the amount by which the Authority is deficient in its ability to allow complete conversion of all Option Water to Current Use Water. VII. Supplement of OCH with Election Notice Supply. A. Until 1991, each OCH which has a right on notice ( "Election Notice ") to Authority to have water ( "Election Notice Water ") supplied to it from existing sources shall continue to pay for all of its Election Notice Water at a price of $23.64 per acre -foot per year in 1984 dollars (escalated thereafter proportional to increases in the CPI), whether or not it has given an Election Notice on any or all of such Election Notice Water. B. Beginning in 1991, all Election Notice Water shall become,Current Use Water, the price for which will be as provided for in'Section V, above, modified as follows: 1. For each OCH that has made payments for Election Notice Water prior to 1991, an "Equity Account" will be established in 1991 equal to the sum of all payments such OCH has made for Election Notice Water prior to 1991 and prior to the date an Election Notice, if any, became effective with regard to such water. 2. Beginning in 1991, each OCH with an Equity Account will be given an annual rebate, to the extent funds are available in its Equity Account, on its payments for Current Use Water equal to the amount of its Current Use Water times the difference in the price for Current Use Water and $23.64 in 1984 dollars (escalated thereafter proportional to increases in the CPI). 3. Rebates to an OCH will be limited to and will cease upon depletion of the Equity Account of such OCH. 3 DATE: May 9, 1989 SUBJECT: Council Agenda, May 11, 1989 ITEM: 16H. Consider a resolution authorizing the Mayor to request water from the Brazos River Authority. STAFF RESOURCE PERSON: Jim Nuse STAFF RECOMMENDATION: As discussed in the work session, it is requested that the Mayor be authorized to submit a letter to BRA requesting water for our future needs. ECONOMIC IMPACT: This letter is for BRA's planning purposes. If accepted and contracts are to follow, Round Rock would save more than one hundred million dollars over the life of the contract.