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R-92-1742 - 8/27/1992WHEREAS, the Cities of Georgetown and Round Rock, the Jonah Water Supply Corporation and the Brazos River Authority ( "BRA ") have previously entered into the Williamson County Regional Raw Water Line Agreement ( "Agreement "), and WHEREAS, the Agreement provided in part that the BRA would begin and diligently pursue the issuance of bonds to obtain funds to begin work under the Agreement, and WHEREAS, BRA issued bonds in the amount of $1,953,122 to fund the Preliminary Design Phase of the Agreement, and WHEREAS, the above -named parties have reached an understanding regarding the repayment to BRA for the advances made, 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 For Repayment To Brazos River Authority For Advances Made In Redeeming Bonds For City of Georgetown, City of Round Rock and Jonah Water Supply Corporation, a copy of said Agreement being attached hereto and incorporated herein for all purposes. RESOLVED this 27th day of August, 1992. ATTEST: RS08272D E LAND, City Secretary RESOLUTION NO. I t x �� MIKE ROBINSON, Mayor City of Round Rock, Texas AGREEMENT FOR REPAYMENT TO BRAZOS RIVER AUTHORITY ' FOR ADVANCES MADE IN REDEEMING BONDS FOR CITY OF GEORGETOWN, CITY OF ROUND ROCK AND JONAH WATER SUPPLY CORPORATION The City of Georgetown, the City of Round Rock, Jonah Water Supply Corporation (Participants) and Brazos River Authority, (Authority) are parties to the "Williamson County Regional Raw Water Line Agreement" (Agreement), the purpose of which is to provide for Authority to design, construct and operate facilities for transporting water from Lake Stillhouse Hollow for Participants. The Agreement directed in part that immediately upon execution, the Authority would begin and diligently pursue the work necessary for the issuance of Bonds, if that is determined by Authority to be the best means for obtaining funds to begin work on the Preliminary Design Phase. In early 1986, the Authority was in the process of issuing Brazos River Authority Variable Rate Demand Bonds, Series 1986, to fund another project and the decision was made to increase that issue by $1,953,112 to fund the Preliminary Design Phase of the Williamson County Regional Raw Water line. The Agreement contemplated that permanent financing would be in place before July 1, 1991, the maturity date of the 1986 Bonds; however, this did not take place and the Authority redeemed the Bonds on July 1, 1991. The purpose of this Agreement is to formalize arrangements between each Participant and Authority for Participant to repay to the amount advanced for such Participant by the Authority (i.e., City of Georgetown, $100,910.35; City of Round Rock, $318,850.11; and Jonah Water Supply Corporation, $22,945.45). It is agreed that the respective amount is due upon signing this Agreement. Repayment of the principal amount will be made over a five -year period beginning July 1, 1991 with equal annual payments (the first being due July 1, 1992). Interest will be paid each July 1 on the average monthly balance over the period following the previous principal payment at an annual interest rate equal to that offered for a one -year certificate of deposit under the Authority's depository agreement with its servicing bank as determined on the first day of each month and averaged over the period following the previous principal payment. In the absence of such depository agreement, the rate will be the average of the "asked" yield as quoted in the Wall Street . Journal for one -year U.S. Treasury Bills plus 10 basis points. The Participant may, at any time, pay the balance owed plus interest as described above. By: 7 4 Title: City of Round Rock Attest: 2 By: 2'.- .4 General Manager Brazos River Authority Attest: 9A/ , DATE: August 25, 1992 SUBJECT: City Council Meeting, August 27, 1992 ITEM: 12.D. Consider a resolution authorizing the Mayor to enter into a payment agreement for completion of the preliminary phase of Lake Stillhouse Raw Water Line: STAFF RESOURCE PERSON: Nuse /Kautz STAFF RECOMMENDATION: The preliminary design of the RTTS (Stillhouse Hollow Water Line Project) provided for the routing plan and required easement to construct the project. The project consists of approximately 33 miles of water line from Stillhouse Hollow Reservoir to Lake Georgetown. To date more than 90% of the easements have been acquired, the balance should be obtained by January 1, 1993. Early estimates showed need for this line by about 1995. Current estimates indicate the need to be at about 2010. Detailed design will be completed in the future. The cost of the preliminary design phase through completion is estimated as follows: Costs to participants (Round Rock, Georgetown, Jonah) $890,036 Less amounts paid to date (447,330) Balance due Total Round Rock Share $641,030 (322,180) $442,706 $318,850 The method of payment of the balance due ($318,850) is the secondary purpose of the attached agreement. Upon approval, the City agrees to pay the balance over 5 years at a certificate of deposit index rate plus 10 basis points. First year financing equates to 5.01 %. . Any future project costs will be handled through the budgetary process.