R-93-09-03-3A - 9/3/1993WHEREAS, the City of Round Rock ( "City ") and the Brushy
Creek Municipal Utility District ( "BCMUD ") entered into a water
supply agreement ( "Agreement ") on October 14, 1986, and
WHEREAS, the City and BCMUD have been involved in water rate
disputes for the past several years, and
WHEREAS, the City and BCMUD have been unable to agree on a
method to determine rates for water, and
WHEREAS, BCMUD has sent the City a letter offering, among
other things, to terminate the Agreement and to seek a water supply
from the City of Austin, and
WHEREAS, the City wishes to express its willingness to
accept in principle, the terms of BCMUD's offer, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Council hereby approves in principle the offer from
BCMUD contained in its letter dated August 25, 1993, a copy of
which is attached hereto as Exhibit "A" and authorizes the Mayor
and City Staff to negotiate a settlement agreement with BCMUD in
accordance with said letter.
RESOLVED this 3rd day of September, 1993.
ATTEST:
RESOLUTION NO. R-93- oq -03- 3,9
August 25, 1993
Charles Culpepper, Mayor
City of Round Rock
221 E. Main Street
Round Rock, Texas 78664
Dear Mayor Culpepper:
RECEIVED AUG Z 7. 199'.)
BRUSHY e CREEK
Municipal Utility District
901 Great Oaks Drive • Round Rock, Texas 78681 - 2506
(512) 255 -7871
Despite valiant efforts, the City and the District find themselves
unable to agree on a water rate. We have tried on many occasions,
since the City filed its first rate case at the Texas Water
Commission in July 1990, to resolve our differences by negotiation
and even mediation. Regrettably, these efforts have not produced
any agreement. Therefore, in keeping with the City's Ordinance No.
2559 and our discussions August 23, 1993, the District proposes the
following:
1) the parties agree that the water contract is terminated;
2) the District becomes a wholesale water customer of the City
of Austin as soon as practical, but in no event later than two
years (the goal would be one year, as we discussed August 23,
1993);
3) the District continues to purchase water from Round Rock in
the interim at the TWC rate;
4) the District withdraws its appeal of the TWC order in the
last rate case which is currently pending at the Third Court
of Appeals;
5) the City dismisses with prejudice its lawsuit'in Williamson
County District Court, Cause No. 93- 029 -C277; and
6) the parties agree not to appeal the TWC's order in the pending
water case.
Charles Culpepper, Mayor
August 25, 1993
Page 2
Under the circumstances, this seems like the most rational way to
terminate our status as a wholesale water customer of the City. It
has the additional advantage of ending litigation between our two
entities and saving both the District and the City enormous amounts
of litigation expense. The District would certainly appreciate any
assistance the City might wish to or be able to give in obtaining
water from Austin.
The City and the District are indeed neighbors and we would like to
see relations between us mended and improved. This proposal is made
with that goal in mind. It is our understanding that the City
still desires to sell wastewater service to the northern portion of
the District. We will continue to negotiate with you to see if that
can be accomplished to our mutual advantage. The District is
agreeable to use the wastewater contract we finalize with the City
of Austin as the basis for a wastewater service contract with Round
Rock.
It is our request that this offer to settle be held in confidence
until such time as our respective elected officials have considered
it and indicated an interest in settling our disputes along these
lines.
Yours very tpuly,
J ames M. Donaldson
President
August 31, 1993
James M. Donaldson, President
Brushy Creek Municipal Utility District
901 Great Oaks Drive
Round Rock, TX 78681 -2506
Dear Mr. Donaldson:
This letter is in response to your letter dated August 25, 1993 regarding the
rate dispute. I am willing to recommend to my fellow City Councilmembers
that we accept your offer. I would suggest that we amend the current contract
to reflect a termination date of September 1, 1995 and to specifically reflect the
rate to be charged. While I am sure that our respective staffs will have some
minor details to work out, I think that your offer is a major step in the right
direction and represents the framework to finally settle our differences. I look
forward to working with you to finalize your offer into a settlement.
Sincerely,
Charles Culpepper
Mayor
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OFFICE OF THE MAYOR
THE CITY OF ROUND ROCK
221 East Main Street
Round Rock, Texas 78664
512 - 255 -3612
CHARLES CULPEPPER
MAYOR