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R-90-1475 - 6/28/1990RESOLUTION NO. / l' WHEREAS, representatives of the Meadows at Chandler Creek Municipal Utility District have approached the City Council with a request to renegotiate the existing contract for the provision of water by the City to the residents of the MUD, and WHEREAS, the City Council has expressed its willingness to consider renegotiating the contract on mutually beneficial terms, and WHEREAS, the MUD has presented an Interim Service Agreement to the City for its consideration, and WHEREAS, said Interim Service Agreement is not acceptable to the City because it contains terms and provisions not in the best interests of the City and its citizens and because certain necessary terms and provisions have been omitted, and WHEREAS, although the letter from the president of the board of directors of the MUD indicates that the deadline for the City's approval of the Interim Service Agreement is June 28, 1990, the City Council is willing to continue to renegotiate the existing contract, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Interim Service Agreement presented to the City Council is hereby rejected as not being in the best interests of the City, and C- RS06280D BE IT FURTHER RESOLVED that the City will continue the negotiations if that is the desire of the MUD board of directors. ATTEST: RESOLVED this 28th day of June, 1990. 1/JL/1 JO E LAND, C ty Secretary 2. MIKE ROBINSON, Mayor City of Round Rock, Texas THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT P.O. BOX 200728 AUSTIN, TEXAS 78720 June 13, 1990 Mayor and Members of City Council City of Round Rock 221 E. Main Avenue Round Rock, Texas 78664 RE: City of Round Rock Water and Wastewater Service to the Meadows at Chandler Creek Municipal Utility District Dear Mayor and Councilmembers: In accordance with the request we received from your City Manager, Robert Bennett, there is enclosed for each of you the proposed Interim Service Agreement between the City and the District providing for the implementation of wholesale water and • wastewater services and rates to the District, pending a final resolution of the rates to be charged to the District. As you will note, this Agreement provides that further negotiations between the City and the District will go forward on the water and wastewater rates to be charged by the City to the District and the other contractual arrangements between the District and the City. We trust this Agreement can be considered and acted upon favorably by the Round Rock City Council at your meeting on June 28, 1990. If this cannot be accomplished by that date, the District intends to initiate a water and wastewater rate complaint at the Texas Water Commission to seek.an adjustment in the rates being charged to the District. Enclosure cc: Members, Board of Directors Mr. Bill Long, General Manager Mr. Don Hayes, P.E. Ms. Mickey Fishbeck Mr /Jim Tolles Bob Bennett 4/Mr. Steve Sheets Mr. Bert Hooper Very truly yours, oug Eastwood, President S -MCC#1 MCC AGREE THE STATE OF TEXAS § COUNTY OF WILLIAMSON INTERIM SERVICE AGREEMENT BETWEEN THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DISTRICT AND THE CITY OF ROUND ROCK - 1 - 6- 13 -90. This Interim Service Agreement (the "Interim Agreement ") is between The Meadows at Chandler Creek Municipal Utility District of Williamson County, Texas (the "District "), and the City of Round Rock, of Williamson County, Texas (the "City "). For and in consideration of the mutual obligations of the parties hereto and the mutual benefits which will accrue, the parties hereto mutually contract and agree as follows: I. RECITALS A. The District and the City entered into that certain agreement entitled "Agreement Between the City of Round Rock and The Meadows at Chandler Creek Municipal Utility District" (the "Original Agreement "), providing for the City to furnish water and wastewater services, fire protection services and garbage services to the residents of the District, setting the rates and charges for such services and containing other provisions related thereto. B. By Ordinance No. 2440 adopted by the City Council of the City on December 28, 1989, the City established rates for wholesale water and wastewater services to governmental entities served by the City. The District and the City have agreed to proceed as provided herein to establish wholesale water and wastewater services and rates to the District as the customer of the City, in place of the present arrangement whereby the City provides retail water and wastewater services to the residents of the District as customers of the City. C. The District and the City desire to continue the present arrangements for the City to furnish fire protection and garbage services to the residents of the District in the manner provided in the original Agreement. D. The parties recognize and agree that this Interim Agreement is intended to be a transitional arrangement so the District may take over the responsibility for water and wastewater services within its boundaries; that the District is continuing its study of the water and wastewater rates established by City Ordinance No. 2440; that the City and the District intend to continue negotiations on the water and wastewater rates to be charged to the District based on the separate rate studies conducted for the City and the District; and that the parties intend to enter into a more comprehensive and definitive agreement or agreements on the contractual arrangements governing the relations between the City and the District, as contemplated under the Interlocal Cooperation Act, Article 4413 (32c), V.T.C.S. — 2 — II. BASIC CHANGES IN WATER AND WASTEWATER SERVICE ARRANGEMENTS A. The City agrees to provide water supply and wastewater services to the District as a wholesale customer of the City. The District - is expressly authorized to resell the water delivered to the District hereunder to its retail customers and to accept and deliver to the City wastewater generated by such customers. Such retail customers shall no longer be customers of the City. Without the prior approval of the City, the District shall not sell or deliver water to, accept wastewater from or provide wastewater service to any party outside the District's boundaries except where water is transmitted to or wastewater is received from customers of the City outside the District's boundaries through water and wastewater mains of the District in which the City has an interest. B. The City and the District agree to work cooperatively and in good faith to complete forthwith the transition in the service arrangements between the City and the District provided for herein. In this regard, it is recognized that the dates of transfer of certain of the functions from the City to the District and other actions will of necessity be staggered as a result of operational and administrative considerations affecting both the City and the District. Accordingly, the City and the District hereby authorize their respective staffs to develop jointly the process by which the various actions required for the transition will be accomplished within the guidelines and requirements established by this Interim Agreement. - 3 - C. The operation, maintenance, repair and administration of the District's water and wastewater facilities (the "Facilities "), including new connections, disconnections, reconnections, terminations and start -ups of service, shall be assumed by the District and the customers' water and wastewater service deposits shall be turned over to the District within ten (10) days after the date of execution of this Interim Agreement. Until that time, the City shall continue to be responsible for these functions and the deposits and shall be entitled to reimbursement by the District for costs associated with these functions as provided in the Original Agreement. D. The City shall turn over to the District within ten (10) days after the date of execution hereof all data, information and records, including billing, collection, financial and accounting records, concerning the design, construction, operation, maintenance, repair, condition, administration and management of the Facilities as are reasonably required by the District to carry out its functions and responsibilities hereunder. E. The final monthly readings of water meters of customers of the District by the City will be made on or about June 21, 1990. The District will be responsible for monthly meter readings thereafter. The District will be responsible for billing and collecting for water and wastewater services in the District from the date the City completes the mailing of its - 4 - final bills for services based on the meter readings conducted on or about June 21, 1990. All revenues from the final billing by the City shall belong to the City, subject to necessary payments to the District required by the Original Agreement, and, if collected by the District, shall be paid over to the City less the payments to which the District is entitled under the Original Agreement. The staffs of the District and the City shall account for and adjust the revenues received from billings for water and wastewater services by either party to assure that the City receives the revenues to which it is entitled for such services up to the date the District becomes responsible for reading water meters and that the District receives the revenues from such services from that date forward. In adjusting the revenues between the parties, the staffs may settle the division of any delinquent accounts where this will serve economy of administration for both parties. F. Until the water meter system (the "Water Meter System ") that will account for the Net Amount of Water (as hereafter 13 defined) delivered to the District is installed, as provided in Paragraphs IV.A. and IV.B., and becomes operational, total water consumption in the District for purposes of determining the City's charges to the District for water supply and wastewater services (the "City Charges ") shall be determined on the basis of total metered water usage by the individual customers of the District. When the Water Meter System becomes operational, total - 5 - water consumption in the District for purposes of determining the City Charges shall be the net amount of water furnished to the District by the City as computed in accordance with a formula to be developed by the staffs of the District and the City based on tie readings of the Water Meter System meters (the "Net Amount of Water "). G. The interim water and wastewater rates charged to the District shall be those established and computed as provided in City Ordinance No. 2440 for wholesale services to governmental entities. These interim rates to the District shall take effect from the date of the City's final meter readings for the customers in the District for water and wastewater services provided by the City for the month of June, 1990, which readings will occur on or about June 21, 1990. The minimum or flat rates now being charged by the City to the individual customers in the District for retail water and wastewater services shall likewise terminate as of the date of such final meter readings and will not be a part of the wholesale rate charged to the District under this Interim Agreement. Until the Water Meter System becomes operational, the interim water and wastewater rates charged to the District shall be applied and computed in accordance with City Ordinance No. 2440 at the point of delivery of the water by the City to the individual customers in the District, as if each individual customer were a wholesale customer. Thereafter, the interim water and wastewater rates shall be applied on the basis - 6 - of the Net Amount of Water delivered to the District by the City, and the charges to the District for water and wastewater services shall be computed as provided in City Ordinance No. 2440. The District is free to establish and charge its customers whatever rates it deems appropriate, without respect to the rates the City charges the District. H. The water and wastewater rates to the District specified in Paragraph II.G. shall continue in effect until the matter of the wholesale water and wastewater rates which may be charged by the City to the District is resolved, as provided in Paragraph III.A. III. CONTINUATION OF NEGOTIATIONS BETWEEN PARTIES A. The City and the District agree to continue to negotiate in good faith for a period of 45 days from the date of execution of this Interim Agreement on the wholesale water and wastewater rates to be charged to the District, which shall not exceed the rates established in City Ordinance No. 2440 for wholesale services to governmental entities, based on the separate rate studies being conducted for the City and the District. If agreement on such rates is not reached by the City and the District within such 45 -day period of time, either party may pursue other procedures for establishing rates, including the initiation of rate review proceedings at the Texas Water Commission. - B. During the 45 -day negotiation period provided for in Paragraph III.A., the City and the District agree to negotiate in - 7 - good faith to assign the responsibility and the cost for the operation, maintenance, repair and administration of the water storage tank, water transmission mains, wastewater force main and wastewater lift station constructed for the benefit of the District and jointly owned or used by the District and the City. C. During the 45 -day negotiation period, the staffs of the City and the District shall inspect the District's water and wastewater facilities that have been operated and maintained by the City pursuant to the Original Agreement to identify any maintenance and repairs needed to place the facilities in good operating condition, as reasonably determined by the District. The City agrees promptly to carry out any maintenance and repair work reasonably required as a result of such inspections, and except for repairs or maintenance required by negligence, neglect, damage or misuse of the facilities by the City, the City shall be entitled to reimbursement for the cost of such work in the manner and to the extent provided in the Original Agreement. IV. ADDITIONAL ACTIONS REQUIRED FOR SERVICE ARRANGEMENT CHANGES A. It is agreed that a six -inch master water meter and vault would be adequate to measure the volume of water that would need to be delivered to the District by the City to meet the District's needs. However, because the water system serving the District is designed so that water stored in the District's storage reservoir can flow back to the City system to meet - 8 - service requirements of other City customers, a dual water metering system to measure inflow to and backflow out of the District is required to account accurately for the Net Amount of Water, as defined in Paragraph II.F., delivered to the District. Also, because a larger volume of water than is needed by the District must be transmitted through the water system in the District to serve customers of the City beyond the District's boundaries, the meters for the dual metering system, the meter vault and other required devices must be oversized. Accordingly, the City agrees to pay the cost of oversizing the meter beyond the cost of a six -inch meter and any required devices to measure the volume of water flowing into the District, the full cost of the meter and any required devices to measure backflow to the City, and the cost of oversizing the meter vault beyond the cost to house a six -inch meter. The District agrees to proceed forthwith to prepare and make application to the Texas Water Commission-for approval to use surplus bond funds of the District to pay toward the cost of installing the dual metering system an amount equivalent to the cost of installing a six -inch master water meter, vault and required devices. The District agrees to pay for such share of the cost of the dual meter installation out of surplus bond funds approved by the Texas Water Commission for expenditure by the District for such purpose. B. There shall be installed at the City's expense at any point where water passes from facilities owned by the District to - 9 - other facilities, for delivery to other customers of the City, the necessary metering equipment and required devices of standard type to properly measure the quantity of water delivered from the District's facilities to such other facilities. C. The District shall be responsible for designing, taking bids for, purchasing, installing and constructing the metering equipment, meter vaults and required devices (the "Metering Facilities ") provided for in Paragraphs IV.A. and IV.B. All plans for the installation and construction of such Metering Facilities shall be submitted to the Texas Water Commission and the City for review and approval prior to the start of such work. The City's approval shall not delayed. District After bids have been shall send notice to be unreasonably withheld or taken by the District, the the City of the estimated engineering, purchase, contract, construction and other costs (the "Costs ") for the installation in question. Within five (5) working days after such notice is sent to the City, the City shall escrow for the benefit of the District in a bank mutually agreeable to the District and the City in the City of Round Rock the estimated City share of the Costs, in the case of the dual metering system provided for in Paragraph IV.A., and the full amount of the Costs, in the case of meters provided for in Paragraph IV.B. The District shall not be obligated to let the contract or go forward with the project until the Costs to be paid by the City are escrowed. After the construction contract - 10 - is let, the District shall be authorized to draw against the escrow account to pay for the Costs to be paid by the City. Construction draws shall be made as the work progresses. All change orders for the project shall be submitted to the City for review and approval prior to their implementation. The City's approval shall not be unreasonably withheld or delayed. Upon completion of a particular project, a final settlement shall be made by the parties as to the total amount each shall pay for the project. D. From the time the Water Meter System (as defined in Paragraph II.F.) is installed, the City's charges to the District for water supply and wastewater services shall be based on the Net Amount of Water Used (as defined in Paragraph II.G.) as computed from the readings taken of such meters pursuant to the following paragraph. E. The City at its expense shall maintain the water meters required by Paragraphs IV.A. and IV.B. in good operating condition and shall read them as required for billing or other purposes. The City shall keep accurate records of such readings. These records shall be subject to inspection by the District at reasonable times and places. The City shall calibrate the water meters at a reasonable time after a request to do so by the District, but not less frequently than once every twelve (12) months. The City shall notify the District at least three (3) days prior to any such calibrations, and the District shall have the right to have a representative present during such calibrations. A meter registering not more than three percent (3 %) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate and a statement of charges for water furnished to or wastewater received from the District shall be corrected for the three (3) months previous to such test in accordance with the percentage of inaccuracy found by such test. If the meter fails to register for any period, the amount of water furnished and wastewater received during such period shall be based on the amount of water delivered in the corresponding period immediately prior to the failure, unless the City and the District agree upon a different amount. The water meters shall be read on or about the first day of each month during normal business hours. The District shall have the right to be present when the meters are read by the City and shall have access to the meters at all, times. V. PROCEDURES FOR BILLINGS AND IMPACT FEES A. During the term of this Interim Agreement, the District shall be billed for water and wastewater services on a monthly basis. B. Upon receipt of an itemized statement from the City of the amount of water and wastewater services provided to the District, and the charges therefor, the District shall pay the amount due within thirty (30) days from the date the bill is sent - 12 - by the City. If the District disputes the amount of water or wastewater service stated to have been provided or the charges therefor, it shall pay the charges due and seek relief in any legal manner available to it, including the remedy of recalibration of water meters under this Interim Agreement. In the event that the quantities stated, or the charges therefor, are found to be in error, any overages shall be credited to future billing statements by the City. C. Before the District makes any new connections to its water or wastewater system, the District shall require a person requesting a new connection to present evidence from the City that any and all applicable water or wastewater impact fees adopted by the City Council of the City for service provided through the City's water and wastewater systems have been paid to the City. The District agrees to notify the City on a monthly basis of all new connections to the District's water and wastewater systems. VI. COMPLIANCE WITH LAWS AND REGULATIONS; SAMPLING The City and the District shall operate their respective water supply and distribution and wastewater collection, treatment and disposal systems in compliance with all applicable laws and regulations, including those of the City, the Texas Department of Health, the Texas Water Commission and the Federal Environmental Protection Agency. This includes the requirements for maintaining the quality of water within both the City water - 13 - system and the District water system. The City and the District agree to submit samples of such water in accordance with the requirements of the Texas Department of Health and other governmental agencies having jurisdiction, and each agrees to make the results of such samples available to the other party. VII. FIRE PROTECTION AND GARBAGE SERVICES The City agrees to continue to furnish fire protection and garbage services to the residents of the District in the manner and in accordance with the terms and provisions of the Original Agreement. VIII. TERM; OTHER CONTRACTS A. Term of Interim Agreement. This Interim Agreement . shall remain in effect until it is superseded by a new agreement between the City and the District executed after the issue of the water and wastewater rates to be charged to the District by the City has been resolved, as provided in Paragraph III.A. B. Status of Original Agreement. Except as amended or supplemented in this Interim Agreement, the terms and provisions of the Original Agreement shall remain in full force and effect. In the event of a conflict between this Interim Agreement and the Original Agreement, the terms and provisions of this Interim Agreement shall prevail. C. Negotiations on Other Contracts. The parties agree to undertake and continue with the negotiations on amendments to the several contracts between the City and the District, with a view - 14 - toward maintaining a mutually satisfactory arrangement between the City and the District for public services, as contemplated by the Texas Interlocal Cooperation Act. IX. GENERAL PROVISIONS A. Any 'notice or communication from either party to the other may be given in writing and deposited in the United States mail, registered or certified, postage prepaid, and addressed to the party to be notified, with return receipt requested, or by delivering the same to an officer of the other party. Notice deposited in the mail in the manner provided above shall be conclusively deemed to be effective from and after the third mail delivery day after it is so deposited. Notice given in any other manner shall be effective only if and when received by the party being notified. For the purpose of notice, the addresses of the parties shall, until changed by notice as herein provided, be as follows: If to the City, to: City of Round Rock 221 E. Main Street Round Rock, TX 78664 Attention: City Manager with copy to: Stephan L. Sheets 309 E. Main Street Round Rock, Tx 78664 If to the District, to: The Meadows at Chandler Creek Municipal Utility District c/o ECO Resources, Inc. P.O. Box 200728 Austin, TX 78720 Attention: General Manager - 15 - ATTEST: ATTEST: (SEAL) with copy to: Elbert Hooper Hooper & Haag P.O. Box 9469 Austin, TX 78766 -9469 B. This Interim Agreement may not be assigned or transferred, in whole or in part, by either party hereto without the prior written consent of the other party. This agreement is binding on and inures to the benefit of the parties hereto and their respective successors and assigns. EXECUTED this day of June, 1990. City Secretary (SEAL) Tony Loera, Secretary /Treasurer CITY OF ROUND ROCK By: Name: Title: THE MEADOWS AT CHANDLER CREEK MUNICIPAL UTILITY DIS RICT By: - 16 - T.ug :t7_twoo., President DATE: June 26, 1990 SUBJECT: City Council Meeting, June 28, 1990 ITEM: 8D. Consider a resolution concerning the proposed Interim Service AGreement between the Meadows at Chandler Creek MUD and the City of Round Rock. STAFF RESOURCE PERSON: Jim Nuse and Steve Sheets STAFF RECOMMENDATION: Staff reconmPnds that the City of Round Rock should not enter into this agreement. Please see the attached contract and letter. ECONOMIC IMPACT: