R-96-10-10-14H - 10/10/1996WHEREAS, the City of Round Rock, ( "City "), Brushy Creek
Municipal Utility District ( "BCMUD "), and Hy -Land Joint Venture and
Cat Hollow Associates (collectively referred to as "Developers ")
have been negotiating in an attempt to settle certain disputes
involving water and wastewater service to BCMUD, and
WHEREAS, the aforesaid parties wish to set out in a "letter
of intent" their current understandings in contemplation of
continued negotiations to finalize an agreement or agreements
settling all disputes involving said parties with respect to water
and wastewater service to BCMUD, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the City Manager is hereby authorized and directed to
execute a letter of intent with respect to the City's, BCMUD's and
the Developers' current understandings in contemplation of
continued negotiations to finalize an agreement or agreements
settling all disputes involving said parties with respect to water
and wastewater service to BCMUD.
RESOLVED this 10th day of Octob 1996.
ATTEST:
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RESOLUTION NO. R- 96- 10- 10 -14H
E LAND, City Secretary
CHARLES CUr1PEP/PER, Mayor
City of Round Rock, Texas
RE: LETTER OF UNDERSTANDING
October 9, 1996
This letter is intended to summarize the discussions among the
representatives of the City of Round Rock ( "Round Rock "), the
Brushy Creek Municipal Utility District (the "District "), and the
developers in the District (the "Developers ") regarding agreements
for long -term water and wastewater between Round Rock and the
District.
It is the intent of the parties that the following constitutes
only a general outline of the parties' discussions, which shall be
incorporated into definitive contracts among the parties to be
executed on or before January 1, 1997. It is the further intent of
the parties that the understandings discussed below are subject to
the following conditions: (a) the District's resolution of its
dispute with the Southland Corporation regarding the contamination
of the District's groundwater wells; (b) completion by the District
and acceptance by Round Rock of an audit of the District's water
and wastewater systems; (c) resolution of all issues raised by the
control and ownership of certain of the District's water and
wastewater facilities, including but not limited to any issues
involving the District's bond documents; and (d) resolution of the
amounts that would be charged to Round Rock by the LCRA /BRA
Alliance (the "Alliance ") for provision of wastewater service to
the District.
Water
1. Round Rock shall provide water service to the District
sufficient to serve full build -out of the District at Round Rock's
in -city retail water rates. Round Rock understands that the
District has outstanding contractual obligations to Williamson
County Water Supply Corporation and King of Kings Lutheran Church.
2. Round Rock shall assume the operation and maintenance of
the District's water system. Round Rock shall not assume any
outstanding debt on the water system. Round Rock shall provide all
operation and maintenance services that it currently provides to
its own customers, including but not limited to billing of the
District's customers.
3. At the time of the execution of the definitive contract,
the District shall pay over to Round Rock a sum of money equal to
the number of existing water meters in the District's water system
times Round Rock's present in -city water capital recovery fee
( "CRF "). The sources of this money may include: (1) water CRFs
that the District previously paid to Round Rock that are presently
being held by Round Rock; (2) water CRFs that the Developers have
paid to the District that the District has not paid over to Round
Rock; (3) moneys presently deposited in registry of the court in
Highland Management, Inc., et al. v. The City of Round Rock, et
al., No. 91- 257 -C26, 26th District Court, Williamson County, Texas;
(4) moneys that the District has overpaid to Round Rock; (5) moneys
available to the District from the resolution of its dispute with
the Southland Corporation over the contamination of the District's
water wells; and (6) other moneys available to the District and the
Developers.
4. After the execution of the definitive contract, for each
new water connection added to the District's water system Round
Rock shall receive its in -city water CRF at the time of connection.
5. Round Rock shall bill, collect and forward to the District
a surcharge established by the District, which shall be reflected
on each customer's bill as a separate charge made by the District.
In return, the District shall pay Round Rock a sum based on the
expenses incurred by Round Rock for providing this service.
6. The term of the definitive contract shall be forty years
from the date of execution.
Wastewater
1. Round Rock shall provide wastewater service to the
District sufficient to serve full build -out of the District. The
rate is expected to be based upon the amount charged to Round Rock
by the Alliance for the provision of wastewater service to the
District. The parties' goal is to achieve a wastewater rate for
the District that is identical to Round Rock's in -city retail base
and usage wastewater rate. However, this is subject to the
resolution of the amount charged to Round Rock by the LCRA /BRA
Alliance for the provision of wastewater service. Round Rock
cannot agree to subsidize the District's wastewater rate. Round
Rock understands that the District has outstanding contractual
obligations to Ring of Kings Lutheran Church.
2. Round Rock shall assume the operation and maintenance of
the District's wastewater system. Round Rock shall not assume any
outstanding debt on the wastewater system. Round Rock shall
provide all operation and maintenance services that it currently
2
provides to its own customers, including but not limited to billing
of the District's customers.
3. At the time of the execution of the definitive contract,
the District shall pay over to Round Rock a sum of money equal to
the number of the District's existing wastewater customers times
Round Rock's present in -city wastewater CRF less a Credit Amount
that shall be defined by agreement. The sources of this money have
not yet been fully determined but will include: (1) moneys
available to the District and the Developers; and (2) wastewater
CRFs that have been paid to the City of Austin.
4. After the execution of the definitive contract, for each
new wastewater connection added to the District's wastewater system
Round Rock shall receive an amount expected to be based on Round
Rock's in -city wastewater CRF at the time of connection. The
parties' goal is to achieve a CRF for new wastewater connections in
the District identical to Round Rock's in -city wastewater CRF, but
Round Rock cannot agree to subsidize the District's wastewater CRF.
5. The term of the definitive contract shall be forty years
from the date of execution.
6. The parties understand that the District is presently a
party to a wholesale wastewater contract with the City of Austin,
and this letter is entered into with that understanding.
If this letter correctly reflects the parties' understandings,
please sign in the space provided below.
By
CITY O 7'O i K, TEXAS
Robert L. .= nnett, Jr.,
City Man
BRUSHY CREEK MUNICIPAL UTILITY DISTRICT
By
` %m r Gri d ith,
President
3
HY -LAND JOINT VENTURE, HY -LAND NORTH
JOINT VENTURE, and HIGHLAND MANAGEMENT,
INC.
By
David Bodenman, Agent and
Attorney -in -Fact
CAT HOLLOW ASSOCIATES LIMITED
PARTNERSHIP., S.V.W. BRUSHY CREEK LIMITED
PARTNERSHIP and GREAT OAKS DEVELOPMENT
LIMITED PARTNERSHIP
By
41 v, A
Ed Wendler, Jr., r sident,
E.W. Development Co., General Partner
4
DATE: October 8, 1996
SUBJECT: City Council Meeting, October 10, 1996
ITEM: 14.H Consider a resolution authorizing the
City Manager to execute a letter of
intent regarding the Highland Management,
Inc. et al vs. City of Round Rock
lawsuit.
STAFF RESOURCE PERSON: Jim Nuse and Steve Sheets
STAFF RECOMMENDATION: Approval of the resolution
A presentation will be made in executive session and at the
regular meeting.
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