R-96-09-26-13D - 9/26/1996ATTEST:
K \NPD0C8 \RBSOLVII \RS60926D.WPD /Deg
RESOLUTION NO. R- 96- 09- 26 -13D
WHEREAS, the Brazos River Authority ( "BRA ") and the City of
Round Rock ( "City ") have entered into that one certain contract
entitled Water Supply Contract By and Between Brazos River
Authority and City of Round Rock, dated April 20, 1978 ( "1978
Contract ") which provides City the right to make withdrawals of
water from Lake Georgetown, and
WHEREAS, BRA and City wish to amend the 1978 Contract to
increase the amount of water available to City from Lake
Georgetown, and
WHEREAS, an agreement entitled Third Amendment to Water
Supply Contract By and Between Brazos River Authority and City of
Round Rock ( "Third Amendment ") has been prepared to so amend the
1978 Contract, 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 the aforesaid Third Amendment, a copy of which
is attached hereto as an exhibit.
RESOLVED this 26th day of September, 1996.
CHARLES CULHEP ER, Mayor
City of Round Rock, Texas
THIRD AMENDMENT TO WATER SUPPLY CONTRACT
BY AND BETWEEN BRAZOS RIVER AUTHORITY
AND CITY OF ROUND ROCK
This THIRD AMENDMENT made and entered into this 9 day of 2 z'&
1996, by and between BRAZOS RIVER AUTHORITY ( "Authority "), a river
authority of the State of Texas, and the CITY OF ROUND ROCK ( "Round
Rock "), of Williamson County, Texas.
A.
RECITALS
Authority and Round Rock are parties to a contract entitled "Water Supply
Contract By And Between Brazos River Authority And City of Round Rock"
( "1978 Contract "), dated April 20, 1978, under which Round Rock is granted the
right to make withdrawals of water from Lake Georgetown (called "North Fork
Lake" in the 1978 Contract), built by the United States Army Corps of Engineers
on the North Fork of the San Gabriel River in Williamson County, Texas. At the
time the 1978 Contract was entered into, Lake Georgetown had not been
constructed. It has now been completed and Round Rock has been utilizing
Lake Georgetown as a water supply under the provisions of the contract for
several years. The 1978 Contract was extended and amended by an agreement
entitled "Extension And Amendment Of Water Supply Contract By And Between
Brazos River Authority And City Of Round Rock" ( "First Amendment "), dated
October 29, 1980. The 1978 Contract and the First Amendment were amended
by an agreement entitled "Amendment To Water Supply Contract By And
Between Brazos River Authority ' And City Of Round Rock" ( "Second
Amendment "), dated September 12, 1991. The purpose of this Third
Amendment is to amend the 1978 Contract, as amended, to change the amount
of water available to Round Rock from Lake Georgetown under the 1978
Contract.
At the beginning of calendar year 1995, Round Rock had a total contractual right
to 6,720 acre -feet of water per year from Lake Georgetown. Of that amount,
6,264 acre -feet of water per year was Election Use Water and 456 acre -feet of
water per year was Option Water. During calendar year 1995, Round Rock
converted all of its Option Water to Election Use Water. In addition, Round Rock
withdrew and used 529 acre -feet of water from Lake Georgetown which was a
part of the City of Georgetown's Option Water. Pursuant to the terms of the
"Williamson County Regional Raw Water Line Agreement Between Brazos River
Authority And City Of Georgetown, City Of Round Rock And Jonah Water Supply
Corporation," ( "Raw Water Line Agreement ") dated June 30, 1986, upon
Georgetown's determination that it did not wish to reacquire the activated 529
acre -feet of water per year, Round Rock now has the obligation to pay for that
amount of water at 150% of the Election Use Water price, with 50% of the
Election Use Water price to be remitted to Georgetown.
B.
AMENDMENT TO SECTION 3 OF SECOND AMENDMENT,
AVAILABILITY OF WATER TO ROUND ROCK
SECTION 3 OF SECOND AMENDMENT, AVAILABILITY OF WATER TO
ROUND ROCK, is deleted in its entirety and replaced with the following:
SECTION 3, AVAILABILITY OF WATER TO ROUND ROCK. While the 1978
Contract, as amended, remains in force, Round Rock shall have the right to
divert and use up to 7,249 acre -feet of water per year. This amount shall not be
decreased; however, should this amount of water exceed Round Rock's needs,
Authority will, upon written request from Round Rock, use reasonable efforts to
sell the water for which Round Rock has obligated itself to pay by the 1978
Contract, as amended, in excess of the amounts which it can actually use and
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will apply the proceeds of any such sale in excess of Authority's costs in making
such sale and supplying the water sold against the obligations of Round Rock to
make payments to Authority under the 1978 Contract, as amended.
In accordance with the provisions of the Raw Water Line Agreement, if Round
Rock determines that it will have need for more than the 7,249 acre -feet of water
per year committed to it under the 1978 Contract, as amended, it may file a
written request for an increased commitment at least ninety (90) days prior to the
desired date of such increase. Upon such request, the Authority will follow the
procedures and apply the pricing structure required under the Raw Water Line
Agreement, if such requested additional water or a portion thereof is available for
acquisition by Round Rock.
C.
AMENDMENT TO SECTION 4 OF SECOND AMENDMENT,
DETERMINATION OF PAYMENTS
SECTION 4 OF SECOND AMENDMENT, DETERMINATION OF PAYMENTS, is
deleted in its entirety and replaced with the following:
SECTION 4, DETERMINATION OF PAYMENTS. Round Rock shall make
payments to Authority during each year while the 1978 Contract, as amended,
remains in force for the original 6,720 acre -feet of water per year committed to it
at the Election Use Water price, as escalated pursuant to Second Amendment.
Round Rock shall make payments to Authority during each year while the 1978
Contract, as amended, remains in force for the 529 acre -feet of water per year
acquired from the City of Georgetown through this Third Amendment and for any
future water acquired from the City of Georgetown pursuant to the Raw Water
3
Line Agreement at the price of 150% of the Election Use Water price, as
escalated, as required by the Raw Water Line Agreement.
D.
AMENDMENT TO SECTION 7 OF SECOND AMENDMENT,
EMERGENCIES
SECTION 7 OF SECOND AMENDMENT, EMERGENCIES, is amended by the
deletion of the equation "P equals 6,720 (D /C)" and the addition in its place of
the equation "P equals 7,249 (D /C)."
IN WITNESS WHEREOF, this Third Amendment is executed on behalf of
Authority and Round Rock by their respective officers hereunto duly authorized,
in duplicate counterparts, each of which shall constitute an original, but both of
which when taken together shall constitute but one and the same Third
Amendment.
CITY 0 ROUND ROCK BRAZOS RIVER AUTHORITY
By:
Title:
ATTEST: ATTEST:
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By: / -Ge
Roy A. Roberts, P.E.
General Manager
9
DATE: September 24, 1996
SUBJECT: City Council Meeting, September 26, 1996
ITEM: 13.D Consider a resolution authorizing the
Mayor to execute a Third Amendment to
Water Supply Contract Between the Brazos
River Authority and the City of
Round Rock.
STAFF RESOURCE PERSON: Jim Nuse and /or Steve Sheets
STAFF RECOMMENDATION: Approval of the resolution
The Third Amendment will increase the amount of water that the
City has a right to withdraw from Lake Georgetown from 6,720 acre -
feet of water per year to 7,249 acre -feet of water per year.
C.\ WPDOCS\ ACITY\RESOLOTI \BS60926A.WPB /01e
Brazos River Authority _
Mr. Robert Bennett
City Manager
City of Round Rock
221 E. Main Street
Round Rock, Texas 78664
Dear Mr. Bennett:
MEF:it
w. \cont\ rates tetter2.doc
RECEIVED DEC 1 91996
Pursuant to the terms of Replacement Water Supply Agreement Between Brazos River
Authority And City Of Round Rock and the Water Supply Contract By and Between
Brazos River Authority And City Of Round Rock, the City of Round Rock ( "Round
Rock ") is to receive notice of any anticipated adjustment in water prices by January 1 of
each year. The Authority is also to provide the data utilized by the Authority's Board of
Directors in determining whether a price increase is justified.
The System Rate (the only rate offered by the Authority to its new customers) is set by
the Board at its July meeting. This rate is based on the cost of service to provide water to
all its customers. This last July, staff presented a proposed cost -of- service based System
Rate of $20.21. This rate reflects the actual cost to the Authority to provide one acre -foot
of water per year to a customer. Because this rate is considerably above the average price
Round Rock is paying for the Election Use Water and Option Water committed to it
under its contracts, staff will recommend that the Board escalate the price for Election
Use Water to $23.04 an acre -foot of water per year and for Option Water to $11.52 an
acre -foot of water per year pursuant to the terms of the contracts. If the Board continues
to adhere to this approach, Round Rock can anticipate having the price of its water under
its contracts escalated on an annual basis so long as the average price being paid is below
the System Rate.
To the extent the prices in its contracts are related to the System Rate, Round Rock may
wish to have a representative attend the Customer Advisory Group meeting in June of
each year at which the proposed System Rate is presented and explained.
Thank you for the opportunity to serve you as a customer.
Sincerely,
MICHAEL E. FIELD
Executive Counsel
4400 Cobbs Drive • P.O. Box 7555 • Waco, Texas 76714 -7555
817 - 776 • FAX 817
QUALITY • CONSERVATION • SERVICE
December 16, 1996