Loading...
R-97-01-09-10D - 1/9/1997WHEREAS, the Brazos River Authority ( "BRA ") the City of Georgetown, the City of Round Rock ( "City "), and the Jonah Water Supply Corporation (n /k /a Jonah Water Special Utility District) entered into that one certain Williamson County Regional Raw Water Line Agreement ( "Base Agreement ") on June 30, 1986, and WHEREAS, the above named parties to the Base Agreement wish to amend same to provide that, among other things, that preliminary engineering should begin immediately, and WHEREAS, BRA has prepared a document entitled Amendment No. 1 to Williamson County Regional Raw Water Line Agreement, which the City Council wishes to approve, 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 Amendment No. 1 to Williamson County Regional Raw Water Line Agreement, a copy of which is attached hereto and incorporated herein as Exhibit A. RESOLVED this 9th day of January, 1997. ATTEST: Qm n1ei an E LAND, City Secretary K.\ WPDOCS \RRSOLUTI \RS70109D.HPD /s10 RESOLUTION NO. R- 97- 01- 09 -10D i(PZ 1 CHARLES CULLPEP_ER Mayor City of Round Rock, Texas AMENDMENT NO. 1 TO WILLIAMSON COUNTY REGIONAL RAW WATER LINE AGREEMENT AGREEMENT made and entered into this 1 - day of JANU R 1991 , 199fr, between and among BRAZOS RIVER AUTHORITY ( "Authority "), a river authority of the State of Texas, CITY OF GEORGETOWN ( "Georgetown "), CITY OF ROUND ROCK ( "Round Rock "), home rule cities of Williamson County, Texas, and JONAH WATER SPECIAL UTILITY DISTRICT ( "Jonah "), a special utility district located in Williamson County, Texas, with Georgetown, Round Rock and Jonah being hereinafter called "Customers ", amending agreement made and entered into June 30, 1986, between and among Authority, Georgetown, Round Rock and Jonah Water Supply Corporation ( "Corporation ") known as Williamson County Regional Raw Water Line Agreement ( "Base Agreement "). 1. RECITALS. Since the execution of Base Agreement, Jonah has been organized and has succeeded to the rights and obligations of Corporation. Base Agreement needs to be amended to reflect this. Base Agreement provides, among other things, that Authority will design, construct and operate Project for the purpose of transporting raw water diverted from Lake Stillhouse Hollow under Stillhouse Supply Agreements to Lake Georgetown for availability to Customers from Lake Georgetown. Authority has completed Preliminary Design Phase. Though Authority has not heretofore adopted a construction schedule specifying that Final Design and Construction Phase will begin at or before this date, the parties have determined that, because of the increasing water demands on Lake Georgetown resulting from intense population growth and the declining water level therein resulting from the recent drought, the initial stages of Final Design and Construction Phase consisting of the preliminary engineering work which is part of that Phase ( "Preliminary Part I ") should begin immediately. It is anticipated that Preliminary Part I can be completed in approximately two months. Upon such completion, a decision will be needed as to when and whether to proceed with intermediate stages of Final Design and Construction Phase consisting of the work required to bring Final Design and Construction Phase to 60% of completion. Such intermediate stages are hereinafter called Preliminary Part II. Completion of Preliminary Part II will require 5 months from the date on which work on it begins. It is possible that rainfall in the coming months may alleviate the immediacy of the need for Project. For this reason, Customers desire some flexibility in timing the issuance of Bonds to finance 2 Final Design and Construction Phase which is not provided in Base Contract in order that if inflows into Lake Georgetown during such period make it prudent to do so, work on Final Design and Construction Phase, in addition to Preliminary Part I and, if it is undertaken pursuant hereto, Preliminary Part II can be delayed with a resultant delay in the commencement of the obligation of Customers to pay Debt Service. Further, because of the timing of adoption of budgets, it may be difficult for some of Customers to pay in cash the costs incident to the work required in Preliminary Part I and Preliminary Part II. To provide the desired flexibility and delay in the commencement of Debt Service payments and to provide financing assistance to Customers, the parties have agreed that (a) Authority will begin Preliminary Part I without issuing Bonds; (b) on or before February 1, 1997, Board in consultation with the other parties will determine whether to proceed with Preliminary Part II without issuance of Bonds; (c) the cost of Preliminary Part I and Preliminary Part II allocable to each of each Customer will be paid, at the option of each Customer, either with funds advanced by such Customer or with funds of Authority; (d) costs paid with funds of Authority will be reimbursed with interest by the Customer 3 to which same are allocable in five annual installments; (e) on or before August 1, 1997, Board, in consultation with the other parties, will determine whether to proceed with the completion of Final Design and Construction Phase or to suspend work thereon until a later date determined to be appropriate under then existing conditions; and (f) and in the interim, other appropriately located entities will be offered the opportunity to become Additional Participants under Base Agreement. Subsection 15(c)(i) of Base Agreement provides for an interest rate determined with reference to the base rate of interest established by InterFirst Bank Dallas, N. A. That bank is no longer in existence. Therefore, it is appropriate that Base Agreement be amended to replace the reference to InterFirst Bank Dallas, N.A. with a reference to a bank currently in operation. The purposes of this Amendment No. 1 are to set forth the agreement of the parties regarding immediate commencement of Preliminary Part I, possible commencement of Preliminary Part II, and financing, all with the flexibility desired by the parties, and to make the amendments to Base Agreement above specified to be appropriate. 2. DEFINITIONS. Definitions set forth in Base Agreement shall apply to this Amendment No. 1. 4 3. JONAH. Jonah is substituted for Corporation as a party to Base Agreement. 4. PRELIMINARY PART I. Authority agrees to immediately proceed with and diligently pursue work on Preliminary Part I in order that same can be completed on or before January 1, 1997. 5. PRELIMINARY PART II. Prior to completion of Preliminary Part I, Board shall, in consultation with the other parties, determine whether Authority shall proceed with Preliminary Part II upon completion of Preliminary Part I. If Board determines to so proceed, Authority will diligently pursue work on Preliminary Part II in order that same can be completed on or by August 1, 1997. If Board determines that Authority shall not so proceed, further work on Design and Construction Phase will be deferred, until the time specified in a construction schedule adopted by Board in accordance with Section 8 of the Base Agreement. 6. PAYMENTS. Customers agree to pay to Authority an amount equal to the cost of Preliminary Part I, agreed to be the sum of $37,000, of which $15,868 shall be paid by Georgetown, $18,627 shall be paid by Round Rock and $2,505 shall be paid by Jonah. If Authority determines to proceed 5 with Preliminary Part II as provided in Section 5, above, Customers (and Additional Participants, if one or more entities become such within the time specified below for reallocation of the cost of Preliminary Part II as a result of any entity becoming an Additional Participant) shall pay to Authority an amount equal to the cost of Preliminary Part II. Such cost is presently estimated to be $560,000.00, of which, $240,184 is the amount estimated to be payable by Georgetown, $281,904 is the estimated amount to be payable by Round rock, and $37,912 is the estimated amount to be payable by Jonah. Unless one or more entities shall become an Additional Participant prior to the earliest date on which any amount owing by any Customer on account of the cost of Preliminary Part II becomes payable as hereinafter provided, the actual cost of Preliminary Part II shall be allocated among Customers in the proportions provided above for the allocation of the estimated cost. Should any entity become an Additional Participant before any amount becomes . payable by any Customer on account of the cost of Preliminary Part II, Board shall reallocate the cost of Preliminary Part II among Customers and such Additional Participant in a manner determined by it, in its sole discretion reasonably exercised, to be appropriate under the 6 then existing circumstances. The cost of Preliminary Part I, together with cost of Preliminary Part II of which no portion is allocated to an Additional Participant, shall be taken into consideration by Authority in determining the Equity Payment to be required of such Additional Participant. The total amount payable by each Customer under this Section 6 shall be payable either in a lump sum paid on or before the 1st day of February, 199 or, in five annual installments, the first of which shall be payable on or before the 1st day of February, 1997, and one additional of which shall be payable on or before the 1st day of each February thereafter until full payment has been made. One- Fifth of the principal amount shall be included in each installment. Interest shall be paid on the unpaid principal balance as of the date of each payment at a rate which shall be equal to ten (10) basis points above the highest yielding one -year security available to Authority (determined in the sole discretion of Board) on the 5th day before the due date of such payment. Each Customer shall elect in writing, delivered to Authority on or before the 15th day of January, 1997, whether the payments required of it by this Section 6 shall be lump sum or in installments. In the event of issuances of Bonds to obtain funds for the payment of the 7 8 cost of completion of the Final Design and Construction Phase before completion of the installment payments required of any party hereto, amounts payable to Authority under this Section 6 shall be paid from Bond proceeds. The Debt Service obligations of any Customer relieved of payment of installment obligations by such payment shall be appropriately adjusted, with the adjustment to be determined by Board in its sole discretion reasonably exercised. 7. COMPLETION OF FINAL DESIGN AND CONSTRUCTION PHASE. If the decision of Board under Section 5, above, is to proceed with work on Preliminary Part II, on or before August 1, 1997, Board shall determine, in its sole discretion reasonably exercised and after consultation with Customers, whether to immediately proceed with completion of Final Design and Construction Phase. If it determines to so immediately proceed, it will issue Bonds and otherwise proceed in accordance with provisions of Base Contract and Section 6, above. If it determines not to so immediately proceed, further work on Final Design and Construction Phase will be deferred until the time specified in a construction schedule adopted by Board in accordance with Section 8 of Base Contract. 8. BANK NAME. The reference to Interfirst Bank Dallas, N.A. in Subsection 15(c)(i) of Base Agreement is changed to read NationsBank. 9. NO TAX OBLIGATION AND OPERATING EXPENSES. Authority shall not have the right to demand payment by any Customer of any obligation undertaken by such Customer virtue of this Amendment No. 1 from funds raised by or to be raised by taxation. The obligation of each of Customers under this Amendment No. 1 shall never be construed to be a debt of either of such kind as to require either under the Constitution and laws of the State of Texas to levy or collect a tax to discharge such obligation. Payments due by each Customer shall be made from the revenues of its water system. Each of Customers represents and covenants to Authority that all payments made hereunder by it shall constitute "operating expenses" of its water system as authorized by statute. 10. RATES. Each Customer agrees to fix and collect such rates and charges for water supplied to its water distribution system as will make possible the prompt payment of monetary obligations to Authority incurred hereunder and the prompt payment of principal and interest on all other 9 obligations payable from the revenues of its water distribution system. 11. DEFAULT. Failure by any of Customers to make payments to Authority required by this Amendment No. 1 shall constitute an event of default by such Customer under Base Agreement. 12. MULTIPLE COPIES. Circulation of copies of this Amendment No. 1 among all Customers to obtain the signatures of all on the same copies hereof would be inconvenient and result in delay. Therefore, this Amendment No. 1 has been prepared in multiple copies, with two being prepared for signature on behalf of Authority on•the one hand, and on behalf of each Customer, alone, on the other hand. When all copies have been signed on behalf of Authority and each of the two copies prepared for signature by each Customer alone has also been signed by such Customer, Authority shall give written notice to such effect to all Customers and this Amendment No. 1 shall thereupon become effective. Authority shall receive one copy of this Amendment executed by it on the one hand and each Customer alone on the other hand. Each Customer shall receive one copy executed by Authority on the one hand and it alone on the other. Amendment No. 1, 10 when it becomes effective, shall be binding on Authority and all Customers and subject to enforcement by any party against the other. 13. OPINION OF COUNSEL. With the signed copies of this Amendment No. 1 to be supplied by Authority to each Customer and by each Customer to Authority, Authority and each Customer shall supply to the others the opinion of its counsel that execution of this Amendment No. 1 on its behalf by the signature of the party signing on its behalf has been duly authorized by its governing body and that as duly executed, this Amendment No. 1 is binding on it and duly enforceable according to its terms, subject to applicable bankruptcy and other debtor protection laws. BRAZOS RIVER AUTHORITY ATTEST: Z/i f / Assistant Secretary BY /4 Q� Roy A. Roberts, P.E. General Manager 11 "Authority" ATTEST: ATTEST: BY (Brozoa1Amrnd) City Secretary Joanne Land, City Secretary CITY OF GEORGETOWN CITY ROUND ROCK B G / JONAH WATER SUPPLY CORPORATION BY 12 Mayor "Georgetown" rles Culpepper, Mayor "Round Rock" President "Jonah" DATE: January 7, 1997 SUBJECT: City Council Meeting, January 9, 1997 ITEM: 10.D. Consider a resolution authorizing the Mayor to execute Amendment No. 1 to Williamson County Regional Raw Water Line Agreement STAFF RESOURCE PERSON: STAFF RECOMMENDATION: Approval of the resolution On June 30, 1986, the BRA, Georgetown, Round Rock and Jonah entered into an agreement known at the Williamson County Regional Raw Water Line Agreement. This Amendment will allow (among other things) for the immediate completion of the Preliminary Design Phase and the beginning of the preliminary engineering work of the Final Design and Construction Phase. Upon completion of said preliminary engineering, (in approximately 2 months) a decision will need to be made by the Parties as to when and whether to proceed with intermediate stages of Final Design and Construction Phase. C \HPDOCS \ACIIY \DLHHSHHE \HLDSHHH1 /ale Jim Nuse and /or Steve Sheets Mayor Charks Culpepper Mayor Pro -tem Earl Palmer Council Members Robert SAaka Rod Morgan Rkk Stewart Martha Chaves Aunty Joseph Ctt Manager Robert L Bennett, Jr. City Attorney Stephan L Sheets A CITY OF ROUND ROCK January 10, 1997 Mr. J. Tom Ray Planning & Environmental Division Manager Brazos River Authority P.O. Box 7555 Waco, TX 76714-7555 Dear Mr. Ray: The Round Rock City Council approved Resolution No. R- 97 -01- 09-10D on January 9, 1997. Enclosed is a copy of the resolution and two original agreements concerning Amendment No. 1 To Williamson County Regional Raw Water Line Agreement. Also enclosed is the requested payment in the amount of $18,627.00. Please sign both agreements, retain one for your files and return the other to Joanne Land at the above address. If you have any questions, please do not hesitate to call. Sincerely, Q David Kautz, CG PO Director of Finance Enclosures Fax: 512. 218 -7097 1. 800 - 735- 2989TDD 1- 800.735.2988 Wee 221 East Main Street Round Rock, Texas 78664 512. 218.5400 CITY OF ROUND ROCK, TEXAS P.O. NUMBER INVOICE NUMBER AMOUNT OF INVOICE 0547(17, DESCRIPTION Check: 054707 PRELIMINARY PART I THE CITY OF ROUND ROCK 221E MAIN ST. • ROUND ROCK. TEXAS 78664 P11.1512) 255.3612 93 PAY TO THE ORODFR BRAZOS RIVER AUTHORITY PO BOX 7555 ATTN: TOM RAY L WACO, TX 76714 -7555 BANK ONE. TEXAS. NA ROUND ROCK. TEXAS 011097A THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER CHECK DATE 01 -10 -97 054707 'GOOD ',WING WITH a • nDNDH *A * A* Eighteen thousand six hundred twenty - seven end 0 0/100. II•OS4 ?CI 4II• ' :LL3LOL40LI: 93200026S31I' 18627. 00 0. 00 '054707 NETAMOUNT 18627. 00 18627. 00 AMOUNT $18, 627. 00 VOID AFTER 90 DAYS K OP RATING/+CCOUNT DOLLARS Brazos River Authority Mr. Bob Bennett City Manager City of Round Rock 214 East Main Round Rock, Texas 78664 Dear Bob: Please find enclosed one original, executed Amendment No. 1 to the Williamson County Regional Raw Water Line Agreement. JTR:rp Enclosure q: \files \projects \wmco \amendment_Itr.j 97. doc 97-0/-09-/OD RECEIVED JAN 2 11997 T Thank you for your assistance. If you have any questions, please call me. Sincerely, w 44 , J. TOM RAY, P.E. Planning and Environmental Division Manager 4400 Cobbs Drive • P.O.Box7555 • Waco, Texas 76714 -7555 817.776-1441 • FAX 817 - 772 -5780 QUALITY • CONSERVATION • SERVICE January 17, 1997 1 Brazos RECEIVED JAN 0 61991 Colorado WATER ALLIANCE Mr. Bob Bennett, City Manager City Manager City of Round Rock 214 East Main Round Rock, Texas 78664 Mr. Carl Udell General Manager Jonah Water Special Utility District Rt. 1 Box 112 -B Georgetown, Texas 78626 Gentlemen: This letter is to recommend to the participants in the Williamson County Regional Raw Water Line project that they proceed with the next increment of engineering work on the Lake Stillhouse Hollow to Lake Georgetown raw water pipeline. This increment is identified as Preliminary Part II in Amendment #1 to the Williamson County Regional Raw Water Line Agreement. We believe this represents the most prudent effort at this time considering the immediate water needs of the participants and the lake level of Lake Georgetown. During the five month period required for completion of Preliminary Part II work, the Alliance will continue to evaluate the water supply options available to the residents of Williamson County. We will make cost comparisons of the available alternatives involving both Colorado and Brazos Basin supplies. We will keep you informed of our findings and will ask for your cooperation in evaluating alternatives that may involve your respective service areas. Sincerely, Manager, Water & Hydroelectric Company SEPH J. 1EAL, P.E. :.A INF 1..11 TO AMU DOM WI. Mark Rose, General Manager Lower Colorado River Authority P.O. Box 220, Austin, Texas 78767 -0220 (512)473 -3200, FAX (512)473 -3298 Mr. Bob Hart City Manager City of Georgetown 609 Main Street Georgetown, Texas 78626 G�- . TOM RAY, P.E. Planning and Environmental Division Manager January 2, 1997 Roy A. Roberts, P.E., General Manager Brazos River Authority P.O. Box 7555, Waco, Texas 76714 -7555 (817)776 -1441, FAX (817)772 -5780 Brazos River Authority Mr. Bob Bennett City Manager City of Round Rock 214 East Main Round Rock, Texas 78664 Dear Bob: AIRBORNE EXPRESS Sincerely, J. TOM RAY, P.E. JTR:rp Planning and Environmental Enclosure Division Manager q.\£les \ projects \wmco \wmcorwlpart.Itr 4400CobbsDrive • P.O. Box 7555 • Waco, Texas 76714 -7555 817-776-1441 • FAX 817-772-5780 RECEIVED DEC 2 61996 QUALITY • CONSERVATION • SERVICE December 20, 1996 HDR Engineering, Inc. has completed both the Alternatives Report and the Preliminary Engineering Report for the Williamson County Regional Raw Water Line project. As stated in the Amendment #1 to the 1986 Williamson County Regional Raw Water Agreement, the estimated cost of the initial phase to complete these two reports was $37,000. The City of Round Rock's share of this cost, using a pro rata allocation based on supplies committed from Lake Stillhouse Hollow, is $18,627. HDR has not been paid for these services because a formal agreement between the Authority and each Raw Water Line participant has not been executed. Another copy of Amendment #1 is enclosed. Please execute the amendment and return with payment indicated as soon as possible. As I explained in my letter of November 15, 1996, the Amendment will allow the Authority to proceed in the manner we discussed and agreed upon at our meetings in Salado— giving the participants flexibility in deciding when to proceed with each step of the project. Without an executed amendment, the Authority would proceed with the project under the terms of the original 1986 Agreement. The Authority's Board will consider the certified projections at its January 1997 meeting. I need to be able to report that even though the certified projections fall within the five -year window requiring the Authority to proceed with a construction schedule under terms of the 1986 Agreement, the Participants have already executed an amendment to the 1986 Agreement directing the Authority to prepare a construction schedule that proceeds in a step -by -step fashion, allowing the Participants to decide when it is appropriate to take each step. Please call me if there are any questions or if you need additional information. Thank you for your cooperation. Brazos River Authority Mr. Bob Bennett City Manager City of Round Rock 214 East Main Round Rock, Texas 78664 AIRBORNE EXPRESS 4400 Cobbs Drive • P.O.Box7555 • Waco, Texas 76714-7555 817 - 776-1441 • FAX 817-772-5780 QUALITY • CONSERVATION • SERVICE November 15, 1996 Dear Bob: Please find enclosed for your review the final draft version of Amendment No. 1 to the Williamson County Regional Raw Water Line Agreement. The initial draft of this amendment was sent to you in my letter of September 23, 1996. We need you to review this amendment and provide comments or, if the amendment is acceptable, execute it and retum to the Authority three copies. We will promptly return one fully executed original. Please note especially Section 1. Working with our General Counsel, David Kultgen, we have made several changes to more clearly define the approach we discussed at our meetings in Salado and in Mr. Roberts' letter to you dated September 9, 1996. Specifically, the segments of work are defined and flexibility is given to delay commencement of Debt Service payments and to provide for finanding assistance by the Authority. The cost allocated to each Participant will be paid, at the option of each Participant, with funds advanced by the Participant or with funds of the Authority. Costs financed by the Authority will be reimbursed, in up to five annual installments, at an interest rate equal to ten basis . oints above - .' _ . - ieldin one -year - . ity avai a. e to the Aut ority. Section 6 defines the costs of Parts I and II and allocates those costs to each Participant. The basis for this allocation is the total commitment of water supply in Lake Stillhouse Hollow to each Participant. The attached table shows the cost components and the allocation of cost. The design cost is associated with the intake structure, which will be built to ultimate capacity, and with the pipeline, which will have the same cost estimate regardless of size or staging. Therefore, I considered the total water supply commitments or the total supply that will eventually be conveyed to Lake Georgetown as a reasonable basis for the allocation of the Part II design costs. Provision is made for other local entities to become Additional Participants. If an entity becomes an Additional Participant before payments are due on Phase II design costs, the costs will be reallocated. Section 15 of the base agreement defines the terms under which the Authority can allow an entity to become an Additional Participant. By allowing an Additional Participant, the Authority cannot "... interfere with or diminish Authority's ability to fulfill its obligations ... to the Participants" or "cause the Monthly Charges to any Participant ... at any time ... to be Mr. Bob Bennett November 15, 1996 Page 2 greater than it would have been if service to such Additional Participants had not been provided." This section also provides for an Equity Payment by any Additional Participant to "prevent injustice to Participants." The preliminary engineering phase is nearing completion. HDR Engineering is drafting the final reports. The schedule for completion is attached. I am currently reviewing the initial draft of the Alternatives Report. The Preliminary Engineering Report will be in draft form by the end of November. The work, including an on- the - ground review of the right -of -way, will be complete by mid - December. If possible, I would like to meet the week of December 16, 1996, to review the reports. We will need to discuss proceeding with the Phase II design work. Any entities considering becoming Additional Participants will have to make that decision no later than January 1, 1997. Please call me if you have any questions regarding the amendment, schedule for completion, or any aspect of the project. JTR:rp Enclosure q.\files \projects \wmco \transmittal of interlocal agmt 14nov96.doc Sincerely, J. TOM RAY, P.E. Planning and Environmental Division Manager Task Name October 13 October 20 October 27 November 3 November 10 November 17 November 24 December 1 December 8 Decem SIMITNTIFIS SIMITI✓4TIFIS SIMIT}MTIFIS S MITf✓VITIFIS SIMITHTIFIS 0111 01* SIMITNTIFIS SIMITFTIFIS SIMIT}AITIFIS SIMITtAr Alternative Evaluation • i Option A - Full Size Pipeline Construction , --.__._._.-_..._.._ .....__�.__.._...,...._.. -_.... �, ------------------- --- - -- - - -,,- F ---------------- - - - - -- -; ' _._.__._......__ __.......---.-...___........__, ' Option B - Phased Pipeline Construction Interim Purchase of Water from City of Austin Water Treatment Plant No. 4 Lake Granger Reclaimed Water Reuse Water Conservation Submit Draft Alternative Evaluation to BRA BRA Review Williamson County RWLPER ® . Review ROW, in field Identify ROW Environmental concems p • II Meet with COE, CTWSC Followup meeting with CTWSC Recommended Project rr V MEMIREIMMEME al Intake Structure and Pumps Transmission Line Configuration Outlet Structure Estimate of Probable Construction Cost Construction Considerations Identify Pipeline ROW Problems Identity Permitting Requirements • 12113 Identify Project Environmental Constraints - Develop Proposed Construction Schedule I • 11129 i Submit Preliminary Engineering Report to BRA BRA Review Submit Final Preliminary Engineering Report to BRA Williamson County Raw Water Line PER Completion Schedule rt Page 1 Determination of Pro Rata Basis for Cost Allocation Assume: Basis on total commitment of Lake Stillhouse Hollow supplies Initial Design Cost (ESTIMATED) for Preliminary Part 1: Part City of Georgetown City of Round Rock Jonah SUD City of Leander Brushy Creek MUD Participant: City of Georgetown City of Round Rock Jonah SUD City of Leander Brushy Creek MUD Cost Breakdown on Phase 11 Stillhouse Hollow Commitments Ex Reguest 5,448 10,000 8,134 10,000 2,439 0 0 2,667 0 4,000 Allocation of anticipated costs to bring final design to 60% completion (Preliminary Part II): Stillhouse Hollow Commitments Exi Reguest Total 5,448 10,000 15,448 8,134 10,000 18,134 2,439 0 2,439 0 2,667 2,667 0 4,000 4,000 Engineering Environmental Aerial /survey Geo Tech Subtotal Legal BRA Administrative Total Total 15,448 18,134 2,439 2,667 4,000 42,688 42,688 $405,000 $40,000 $75,000 $30,000 $550,000 $5,000 $5 000 $560,000 w/ Add'n Participants Initial 2 -month Cost Percent Allocation 36.19 $13,390 42.48 $15,718 5.71 $2,114 6.25 $2,312 9.37 $3,467 100 $37,000 w/ Add'n Participants Initial 2 -month Cost Percent Allocation 36.19 $202,654 42.48 $237,890 5.71 $31,996 6.25 $34,987 9.37 $52,474 100 $560,000 w /out Add'n Participants Initial 2 -month Cost Percent Allocation 42.89 $15,868 50.34 $18,627 6.77 $2,505 100 $37,000 $37,000 $560,000 w /out Add'n Participants Initial 2 -month Cost Percent Allocation 42.89 $240,184 50.34 $281,904 6.77 $37,912 100 $560,000 The basis for allocation will be re- evaluated prior to beginning the construction phase; this allocation assumes the total of existing and pending commitments from Lake Stillhouse Hollow. The following costs are included in the estimate: AMENDMENT NO. 1 TO WILLIAMSON COUNTY REGIONAL RAW WATER LINE AGREEMENT AGREEMENT made and entered into this day of November, 1996, between and among BRAZOS RIVER AUTHORITY ( "Authority "), a river authority of the State of Texas, CITY OF GEORGETOWN, ("Georgetown"), CITY OF ROUND ROCK ( "Round Rock "), home rule cities of Williamson County, Texas, and JONAH WATER SPECIAL UTILITY DISTRICT ( "Jonah "), a special utility district located in Williamson County, Texas, with Georgetown, Round Rock and Jonah being hereinafter called "Customers ", amending agreement made and entered into June 30, 1986, between and among Authority, Georgetown, Round Rock and Jonah Water Supply Corporation ( "Corporation ") known as Williamson County Regional Raw Water Line Agreement ( "Base Agreement "). 1. RECITALS. Since the execution of Base Agreement, Jonah has been organized and has succeeded to the rights and obligations of Corporation. Base Agreement needs to be amended to reflect this. Base Agreement provides, among other things, that Authority will design, construct and operate Project for the purpose of transporting raw water diverted from Lake Stillhouse Hollow under Stillhouse Supply Agreements to Lake Georgetown for availability to Customers from Lake Georgetown. Authority has completed Preliminary Design Phase. Though Authority has not heretofore adopted a construction schedule specifying that Final Design and Construction Phase will begin at or before this date, the parties have determined that, because of the increasing water demands on Lake Georgetown resulting from intense population growth and the declining water level therein resulting from the recent drought, the initial stages of Final Design and Construction Phase consisting of the preliminary engineering work which is part of that Phase ( "Preliminary Part I ") should begin immediately. It is anticipated that Preliminary Part I can be completed in approximately two months. Upon such completion, a decision will be needed as to when and whether to proceed with intermediate stages of Final Design and Construction Phase consisting of the work required to bring Final Design and Construction Phase to 60% of completion. Such intermediate stages are hereinafter called Preliminary Part II. Completion of Preliminary Part II will require 5 months from the date on which work on it begins. It is possible that rainfall in the coming months may alleviate the immediacy of the need for Project. For this reason, Customers desire some flexibility in timing the issuance of Bonds to finance 2 Final Design and Construction Phase which is not provided in Base Contract in order that if inflows into Lake Georgetown during such period make it prudent to do so, work on Final Design and Construction Phase, in addition to Preliminary Part I and, if it is undertaken pursuant hereto, Preliminary Part II can be delayed with a resultant delay in the commencement of the obligation of Customers to pay Debt Service. Further, because of the timing of adoption of budgets, it may be difficult for some of Customers to pay in cash the costs incident to the work required in Preliminary Part I and Preliminary Part II. To provide the desired flexibility and delay in the commencement of Debt Service payments and to provide financing assistance to Customers, the parties have agreed that (a) Authority will begin Preliminary Part I without issuing Bonds; (b) on or before January 1, 1997, Board in consultation with the other parties will determine whether to proceed with Preliminary Part II without issuance of Bonds; (c) the cost of Preliminary Part I and Preliminary Part II allocable to each of each Customer will be paid, at the option of each Customer, either with funds advanced by such Customer or with funds of Authority; (d) costs paid with funds of Authority will be reimbursed with interest by the Customer 3 to which same are allocable in five annual installments; (e) on or before June 1, 1997, Board, in consultation with the other parties, will determine whether to proceed with the completion of Final Design and Construction Phase or to suspend work thereon until a later date determined to be appropriate under then existing conditions; and (f) and in the interim, other appropriately located entities will be offered the opportunity to become Additional Participants under Base Agreement. Subsection 15(c)(i) of Base Agreement provides for an interest rate determined with reference to the base rate of interest established by InterFirst Bank Dallas, N. A. That bank is no longer in existence. Therefore, it is appropriate that Base Agreement be amended to replace the reference to InterFirst Bank Dallas, N.A. with a reference to a bank currently in operation. The purposes of this Amendment No. 1 are to set forth the agreement of the parties regarding immediate commencement of Preliminary Part I, possible commencement of Preliminary Part II, and financing, all with the flexibility desired by the parties, and to make the amendments to Base Agreement above specified to be appropriate. 2. DEFINITIONS. Definitions set forth in Base Agreement shall apply to this Amendment No. 1. 4 3. JONAH. Jonah is substituted for Corporation as a party to Base Agreement. 4. PRELIMINARY PART I. Authority agrees to immediately proceed with and diligently pursue work on Preliminary Part I in order that same can be completed on or before January 1, 1997. 5. PRELIMINARY PART II. Prior to completion of Preliminary Part I, Board shall, in consultation with the other parties, determine whether Authority shall proceed with Preliminary Part II upon completion of Preliminary Part I. If Board determines to so proceed, Authority will diligently pursue work on Preliminary Part II in order that same can be completed on or by June 1, 1997. If Board determines that Authority shall not so proceed, further work on Design and Construction Phase will be deferred until the time specified in a construction schedule adopted by Board in accordance with Section 8 of the Base Agreement. 6. PAYMENTS. Customers agree to pay to Authority an amount equal to the cost o agreed to be the sum of $37,000, of which $15,868 shall be paid by Georgetown, $18,627 shall be paid by Round Rock and $2,505 shall be paid by Jonah. If Authority determines to proceed 5 with Preliminary Part II as provided in Section 5, above, Customers (and Additional Participants, if one or more entities become such within the time specified below for reallocation of the cost of Preliminary Part II as a result of any entity becoming an Additional Participant) shall pay o Authority an amount equal to the cost of Preliminary Part II. Such cost is presently estimated to be $560,000.00, of which, $240,184 is the amount estimated to be payable by Georgetown, $281,904 is the estimated amount to be payable by Round rock, and $37,912 is the estimated amount to be payable by Jonah. Unless one or more entities shall become an Additional Participant prior to the earliest date on which any amount owing by any Customer on account of the cost of Preliminary Part II becomes payable as hereinafter provided, the actual cost of Preliminary Part II shall be allocated among Customers in the proportions provided above for the allocation of the estimated cost. Should any entity become an Additional Participant before any amount becomes payable by any Customer on account of the cost of Preliminary Part II, Board shall reallocate the cost of Preliminary Part II among Customers and such Additional Participant in a manner determined by it, in its sole discretion reasonably exercised, to be appropriate under the 6 then existing circumstances. The cost of Preliminary Part I, together with cost of Preliminary Part II of which no portion is allocated to an Additional Participant, shall be taken into consideration by Authority in determining the Equity Payment to be required of such Additional Participant. The total amount payable by each Customer under this Section 6 shall be payable either in a lum sum 7 paid on or before the 1st day of February, 1996, or, in five annual installments, a first of which shall be payable on or before the 1st day of February, 1997, and one additional of which shall be payable on or before the 1st day of each February thereafter until full payment has been made. One - Fifth of the principal amount shall be included in each installment. Interest shall be paid on the unpaid principal balance as of the date of each payment at a rate which shall be equal to ten (10) basis points above the highest yielding one -year security available to Authority (determined in the sole discretion of Board) on the 5th day before the due date of such payment. Each Customer shall elect in writing, delivered to Authority on or before the 15th day of January, 1997, whether the payments required of it by this Section 6 shall be lump sum or in installments. In the event of issuances of Bonds to obtain funds for the payment of the cost of completion of the Final Design and Construction Phase before completion of the installment payments required of any party hereto, amounts payable to Authority under this Section 6 shall be paid from Bond proceeds. The Debt Service obligations of any Customer relieved of payment of installment obligations by such payment shall be appropriately adjusted, with the adjustment to be determined by Board in its sole discretion reasonably exercised. 7. COMPLETION OF FINAL DESIGN AND CONSTRUCTION PHASE. If the decision of Board under Section 5, above, is to proceed with work on Preliminary Part II, on or before June 1, 1997, Board shall determine, in its sole discretion reasonably exercised and after consultation with Customers, whether to immediately proceed with completion of Final Design and Construction Phase. If it determines to so immediately proceed, it will issue Bonds and otherwise proceed in accordance with provisions of Base Contract and Section 6, above. If it determines not to so immediately proceed, further work on Final Design and Construction Phase will be deferred until the time specified in a construction schedule adopted by Board in accordance with Section 8 of Base Contract. 8 8. BANK NAME.. The reference to Interfirst Bank Dallas, N.A. in Subsection 15(c)(i) of Base Agreement is changed to read NationsBank. 9. NO TAX OBLIGATION AND OPERATING EXPENSES. Authority shall not have the right to demand payment by Georgetown and /or Round Rock of any obligation undertaken by or imposed upon either of them by virtue of this Amendment No. 1 from funds raised by or to be raised by taxation. The obligation of each of such cities under this Amendment No. 1 shall never be construed to be a debt of either of such kind as to require either under the Constitution and laws of the State of Texas to levy or collect a tax to discharge such obligation. Payments due by either city shall be made from the revenues of its water system. Each of such cities and Jonah represents and covenants to Authority that all payments made hereunder by it shall constitute "operating expenses" of its water system as authorized by Statute. 10. RATES. Each Customer agrees to fix and collect such rates and charges for water supplied to its water distribution system as will make possible the prompt payment of monetary obligations to Authority incurred hereunder and the prompt payment of principal and interest on all other 9 obligations payable from the revenues of its water distribution system. 11. DEFAULT. Failure by any of Customers to make payments to Authority required by this Amendment No. 1 shall constitute an, event of default by such Customer under Base Agreement. 12. MULTIPLE COPIES. Circulation of copies of this Amendment No. 1 among all Customers to obtain the signatures of all on the same copies hereof would be inconvenient and result in delay. Therefore, this Amendment No. 1 has been prepared in multiple copies, with two being prepared for signature on behalf of Authority on the one hand, and on behalf of each Customer, alone, on the other hand. When all copies have been signed on behalf of Authority and each of the two copies prepared for signature by each Customer alone has also been signed by such Customer, Authority shall give written notice to such effect to all Customers and this Amendment No. 1 shall thereupon become effective. Authority shall receive one copy of this Amendment executed by it on the one hand and each Customer alone on the other hand. Each Customer shall receive one copy executed by Authority on the one hand and it alone on the other. Amendment No. 1, 10 when it becomes effective, shall be binding on Authority and all Customers and subject to enforcement by any party against the other. 13. OPINION OF COUNSEL. With the signed copies of this Amendment No. 1 to be supplied by Authority to each Customer and by each Customer to Authority, Authority and each Customer shall supply to the others the opinion of its counsel that execution of this Amendment No. 1 on its behalf by the signature of the party signing on its behalf has been duly authorized by its governing body and that as duly executed, this Amendment No. 1 is binding on it and duly enforceable according to its terms, subject to applicable bankruptcy and other debtor protection laws. BRAZOS RIVER AUTHORITY ATTEST: BY Secretary Roy A. Roberts, P.E. General Manager 11 "Authority" ATTEST: ATTEST: (Brazo.umead) CITY OF GEORGETOWN BY City Secretary CITY OF ROUND ROCK BY City Secretary JONAH WATER SUPPLY CORPORATION BY 12 Mayor "Georgetown" Mayor "Round Rock" President "Jonah" THE STATE OF TEXAS COUNTY OF WILLIAMSON CITY OF ROUND ROCK I, JOANNE LAND, Assistant City Manager /City Secretary of the City of Round Rock, Texas, do hereby certify that the foregoing is a true and correct copy of page 12 of Amendment No. 1 To Williamson County Regional Raw Water Line Agreement that was approved by the Round Rock City Council on January 9,1997 by Resolution No. R- 97-01-09-10D as recorded in minute book 35, pages 289 -290. CERI'LHED by my hand and seal of the City of Round Rock, Texas on this 20th day of March, 1997. 0- LAND, Assistant City Manager/ City Secretary P )DoL rncc uo ,3 1 140 7e(,0a7