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R-2014-1433 - 5/22/2014 RESOLUTION NO. R-2014-1433 WHEREAS, the Cities of Austin and Round Rock ("Cities") each own and operate extensive utility systems providing wastewater service to customers in Williamson and Travis Counties; and WHEREAS, Austin and Round Rock recognize that substantial benefits are derived from joint cooperation with each other in the planning, financing, construction and provisions of utilities in the region served by both parties; and WHEREAS, the Cities are interested in continuing to join together to design, construct, and operate a regional wastewater collection system to transport wastewater to the Brushy Creek Regional Wastewater Treatment Plants ("BCRWWS"); and WHEREAS, the Cities shared collection system consists of the South Interceptor, the Southwest Interceptor, and the Lake Creek Interceptor("Lake Creek Collection System"); and WHEREAS, the Cities both need additional conveyance capacity in the Lake Creek Collection System to provide for future development; and i WHEREAS, the Cities would like to set forth their agreement regarding the Lake Creek Collection System; 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 Capacity, Operation, Maintenance, and Capital Improvements to the Lake Creek z Collection System with the City of Austin, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. 0112.1404;00298848 RESOLVED this 22nd day of May, 2014. ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA E. Clerk 2 EXHIBIT "Aa AGREEMENT FOR CAPACITY, OPERATION, MAINTENANCE,AND CAPITAL IMPROVEMENTS TO THE LAKE CREEK COLLECTION SYSTEM THIS AGREEMENT (the "Agreement") is dated and entered into as of the day of , 2014, by the City of Austin, Texas ("Austin") and the City of Round Rock, Texas ("Round Rock") both home-rule municipalities and political subdivisions of Texas (individually, the"City;" collectively, the "Cities"). RECITALS 1. Austin and Round Rock each own and operate extensive water and wastewater utility systems providing utility service to customers in Williamson and Travis Counties. 2. Austin and Round Rock recognize that substantial benefits are derived from joint cooperation with each other in the planning, financing, construction and provisions of utilities in the region served by both parties. 3. Austin and Round Rock are interested in continuing to join together to design, construct, and operate a regional wastewater collection system to transport wastewater to the Brushy Creek Regional Wastewater Treatment Plants. Austin and Round Rock's shared collection system is a component of the Brushy Creek Regional Wastewater System ("BCRWWS"). The BCRWWS is owned by the cities of Austin, Round Rock, Cedar Park, and Leander. The shared collection system between Austin and Round Rock consists of the South Interceptor, the Southwest Interceptor, and the Lake Creek Interceptor (collectively the "Lake Creek Collection System"), as shown on Exhibit A. 4. The BCRWWS is currently operated and maintained by the Brazos River Authority ("BRA„) 5. Austin and Round Rock both need additional conveyance capacity in the Lake Creek Collection System to provide for future development. 6. Austin and Round Rock desire to set forth their agreement regarding the Lake Creek Collection System. 3 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the sufficiency of which are hereby conclusively acknowledged, and subject to the terms and conditions here set forth, the Cities mutually agree as follows: ARTICLE 1 DEFINITIONS r Section 1.1 Definitions. In addition to the terms defined above, the terms below will have the following meanings: (a) `BCRWWS” means, collectively, the land interests and the improvements of the Brushy Creek Regional Wastewater System described in the Master Contract. Without limitation the BCRWWS includes the facilities, mains, lift stations, and i other appurtenances as described in the Master Contract. b73ecab3-5fc9-4106-95b2-65d6566Ddbf f e (b) "Austin's Dry Weather Flow or DWF" means 1,036,840 million gallons per day which is applicable to only the Southwest Interceptor. (c) "Austin's Peak Wet Weather Flow or PWWF" means 4,147,360 million gallons per day which is applicable to only the Southwest Interceptor. (d) "Effective Date" means the last date shown of execution of this Agreement by the Cities. (e) "EPA" means the United States Environmental Protection Agency. (f) "Hard Construction Costs" mean the costs for excavation, purchase and installation of pipe and appurtenances, equipment and appurtenances for the provision of electricity and water, and construction site restoration. (g) "LUE" means Living Unit Equivalent, a capacity of 245 gallons per day (average daily flow) and a calculated instantaneous peak wet weather flow (average daily flow multiplied by four) of 980 gallons for a single-family residence. Average daily flow is the amount of Wastewater flow.averaged over a 24-hour period. (h) "Master Contract" means collectively the Amended and Restated Master Contract for the Financing, Construction, Ownership, and Operation of the Brushy Creek Regional Wastewater System (the "Contract") dated June 4, 2010 by and among the cities of Austin, Cedar Park, Leander, and Round Rock, and the First Amendment to the Amended and Restated Master Contract for the Financing, Construction, Ownership, and Operation of the Brushy Creek Regional Wastewater System dated August 1, 2011; (i) "Metering Facility" means the Wastewater flow meter, meter vault, and all metering and telemetering equipment, and telecommunication and electrical appurtenances required to measure the amount of wastewater delivered to the System by Austin. A Metering Facility that will record multiple readings averaged over 15-minute intervals (the frequency to be determined by Austin and Round Rock). (j) "Node" means a specific manhole in the interceptors that make up the System. (k) "Pipe Segment" means that portion of the System measured from one Node to another Node as shown in Exhibit B. s 3 (1) "Point of Entry" means a point at which Wastewater from each City enters the System. a (m) "Reserved Capacity" means the total quantity of Wastewater that a City is entitled to deliver into the System. 2 s #S T t 2 t (n) "Service Area" means the area within the City's corporate limits or extraterritorial jurisdiction served by its wastewater utility as it may exist from time to time. (o) "Significant Industrial Users" has the meaning for that term as defined by 40 Code of Federal Regulations 403.3(v). (p) "Soft Costs" mean the costs for preliminary engineering reports, surveying, geotechnical studies, acquisition of easements (or rights of way or fee simple title), permitting, design, project management of the construction and installation of infrastructure, governmental fees (including inspection fees), and any other consultant fees related to construction. (q) "System" means the Lake Creek Collection System consisting of the Lake Creek Interceptor 1, Lake Creek Interceptor 2, the South Interceptor and the Southwest Interceptor as shown on Exhibit A. (r) "State" means the State of Texas. (s) "TCEQ" means the Texas Commission on Environmental Quality or its successor agency. (t) "Wastewater" means liquid and water-carried waste discharged from sanitary conveniences of dwellings, business buildings, institutions and the like including garbage which has been shredded to such degree that all particles will be carried freely under flow conditions normally prevailing in public sewers, with no particle greater than one-half(1/2) inch in any dimension and the liquid wastes from industrial processes, and includes any infiltration water that has migrated from the ground into the System, or inflow water from above the ground entering the System. ARTICLE II PURPOSE AND DESCRIPTION OF THE LAKE CREEK COLLECTION SYSTEM Section 2.1 Purpose of this Agreement. The purpose of this Agreement is to set forth the terms and conditions under which the Cities will finance, acquire, construct, own, maintain, and operate the System. The System will be used for receiving and transporting of Wastewater from the Cities generated within each City's respective Service Area. The Cities will design, acquire, construct, expand, extend, enlarge, improve, and repair the System from time to time. If there are any conflicts between this Agreement and the Master Contract or other agreements related to the System executed prior to this Agreement's Effective Date, this Agreement will prevail. i 3 ARTICLE III RESERVED CAPACITIES Section 3.1 Reserved Capacities. Each City's respective capacity in the System is as shown in Exhibit B. Each City will have the exclusive right to its Reserved Capacity in each Pipe Segment. Section 3.2 Transfer of Reserved Capacity. Each City may transfer any portion of its Reserved Capacity to the other City, in exchange for mutually agreed upon consideration. Section 3.3 Exceeding Reserved Capacity. If either City exceeds its Reserved Capacity, such City will be solely responsible for any expenses necessary to adhere to its Reserved Capacity and to proceed with due diligence using its reasonable efforts to remedy the situation. Regardless of the foregoing, Round Rock agrees to solely be responsible for all Wastewater overflows and the reporting, fines, fees, findings, judgments, engineering and compliance reports, costs, and all other expenses related to the System as long as Austin does not exceed its Reserved Capacity in the System, unless said costs are attributable to actual defects (i.e. deteriorated, broken, or cracked mains or manholes) in the System or Austin's negligence. If said costs are attributable to actual defects in the System, then those costs will be shared in accordance with Reserved Capacities identified in Exhibit D. Section 3.4 Verification of Flows into the Southwest Interceptor. Austin, at its sole cost, will be responsible for verifying, through Wastewater flow monitoring, that its actual Wastewater flows do not exceed its Reserved Capacity in the Southwest Interceptor. Austin's Wastewater flows into the Southwest Interceptor will be measured by the difference in flows measured from a meter on the Round Rock Wastewater main located along FM 1325 Node LC453856 and a meter installed within Austin's service area near the Service Area boundary on the north side of State Highway 45 at Node LC453876. With the exception of Round Rock's existing Wastewater main connecting at Node LC45001 (at corner of Southwest Interceptor System and 12-inch wastewater main), the Wastewater flows between Node LC45001 and LC453876 are currently generated by Austin customers. The actual PWWF will be measured through a Metering Facility at or near Node LC453876. ARTICLE IV GENERAL Section 4.1 Wholesale Contracts. In the event that Wastewater service is sold by a City to another entity located within the City's Service Area that will contribute Wastewater to the System, the City selling the Wastewater service is solely responsible for said entities' quantity and quality of Wastewater entering the System and for all rights and obligations stated herein. Section 4.2 Title to Wastewater. Title to and interest in each City's Wastewater will remain with each City, respectively, at all times. Neither City will acquire any right or title to 4 the other City's respective Wastewater interests by virtue of this Agreement and nor will otherwise assert any ownership interest in the other City's Wastewater rights. Section 4.3 Point(s) of Entry. Each City will have the sole responsibility, at its own cost, for providing additional pipelines and other facilities required for transporting its own Wastewater to one or more Points of Entry in the System. If Round Rock connects to any Pipe Segment of the Southwest Interceptor between Node LC45001 and Node LC453876, then Round Rock agrees, at its sole cost, to design and construct a Metering Facility at this new Point of Entry, or other mutually agreed upon method to reasonable and accurately measure Round Rock's flows. Round Rock and Austin must agree to such new Point of Entry and Metering Facility prior to Round Rock's installation or introduction of new applicable Wastewater flows into this portion of the Southwest Interceptor. Section 4.4 Inflow and Infiltration. Each City will use reasonable efforts to minimize inflow and infiltration into the System. The cost of repair or replacement of portions of Austin's or Round Rock's Wastewater infrastructure prior to entry into the System, attributable to inflow and infiltration, will be borne by the applicable City. The cost of repair or replacement of portions of the System because of inflow and infiltration attributable to defects in the System will be shared proportionally for each Pipe Segment based upon the City's Reserved Capacity of such as shown in Exhibit B. Section 4.5 Discharge Quality, The Cities will have the right to discharge Wastewater into the System meeting the requirements of quality as set forth in the pretreatment program approved by EPA and TCEQ for the System and of which the System is capable of handling. Each City agrees to implement and enforce the BCRWWS pretreatment program for its Service Area. Each City also covenants that it will have in effect and will enforce a sewer use ordinance in accordance with EPA and TCEQ's regulations or regulations of other governmental agencies having jurisdiction to set standards for waste discharges. Furthermore, each City will, at any reasonable time upon request by the other City, produce pretreatment program records for its Service Area for review. Each City also agrees that no new Significant Industrial User will be allowed to connect to the City's sewer system within its Service Area without prior notification of the intent to connect being given by the City as required in the Master Contract. All Significant Industrial Users that are customers of a City and located within its Service Area and outside the City's corporate limits will also be required to obtain a sewer use permit. ARTICLE V OPERATION AND MAINTENANCE Section 5.1 Expenses. Operational and maintenance expenses, not related to Wastewater overflows or the control of inflow and infiltration of the System, will be shared proportionally for each Pipe Segment based upon the City's Reserved Capacity in accordance F with Exhibit B. Replacement expenses of Pipe Segment(s) or Nodes (i.e. through slip lining, pipe bursting, coating, or a new wastewater main or manhole, etc.) due only to the age of the pipe and associated aging conditions of the System (i.e. a replacement not caused by the need for additional capacity) will be shared proportionally for each Pipe Segment based upon the City's Reserved Capacity in accordance with Exhibit D. 5 S ARTICLE VI IMPROVEMENTS TO THE SYSTEM Section 6.1 General. Improvements, other than those stated herein, will be in accordance with the Master Contract using the proportionate Reserved Capacity stated in this Agreement as a means to identify each City's cost. The improvements stated herein derive from Austin and Round Rock projecting their respective population for the year 2050 in order to estimate the amount of additional capacity each City needs in the System. Section 6.2 System Improvements' Design and Construction. The Cities will jointly fund, in accordance with their Reserved Capacity, and make decisions concerning the design and construction of improvements to the System as described herein and through any engineering reports related to such improvements. Engineering reports may be amended and updated from time to time, to reflect final design and construction changes in the System and to reflect further actions and understandings of the Cities. The Cities agree that they will cooperate to facilitate timely municipal plan review and permitting, and other matters for construction related to the System located in the City's regulatory jurisdiction. Design specifications will be in accordance with the Master Contract. Both Cities, at their respective cost, must approve the design plans of improvements to the System. The Cities will use the bidding process as required in the Master Contract. Section 6.3 Inspection. For improvements to the System that are solely the responsibility of one of the Cities, that City may inspect its improvements so long as the inspection is in accordance with the Master Contract. For other improvements to the System, the Cities will conduct inspections and determine whether the completion of the improvements is in accordance with the approved design plans. Section 6.4 As-Built Plans. Each City and the contracted operator of the BCRWWS will be provided a copy of as-built plans within 30 days of final acceptance of the improvement. Section 6.5 Improvements to the Southwest Interceptor. Austin, at its cost, in order to access its Reserved Capacity in the Southwest Interceptor will design, bid, and construct upsized Pipe Segments between Nodes LC45013 and LC45001. When Austin's actual flows exceed 80% of its 30-day average DWF Reserved Capacity or 100% instantaneously PWWF Reserved Capacity, as measured through a Metering Facility, then Austin will reevaluate its Reserved Capacity at that time. If upon such reevaluation Austin determines that it needs additional capacity in the Southwest Interceptor between these Nodes, then Austin will initiate the design and construction of necessary improvements. Austin agrees to provide written notice of such to Round Rock. Austin agrees to complete any necessary improvements within 24 months after the Austin exceeds 80% of its 30-day average DWF Reserved Capacity or 100% instantaneous PWWF Reserved Capacity, as measured through a Metering Facility. After Austin has provided such written notice to Round Rock, Round Rock will evaluate whether to begin the design and construction of improvements between Node LC 15112 and Node 6 LC 1522A in order for Round Rock to ensure Austin's full use of its Reserved Capacity so that PWWFs within the Southwest Interceptor will not exceed two feet from the top of any manhole. If upon such reevaluation Round Rock determines that additional capacity is needed, then Round Rock will initiate the design and construction of the necessary improvements. Round Rock agrees to provide written notice of such to Austin and will complete such improvements within 27 months of Austin's notice to Round Rock. Austin, at its sole discretion, may phase the required improvements between Nodes so long as Austin does not exceed its Reserved Capacity in those Nodes not improved. Such phasing will not modify or extend the required due date of Round Rock's improvements to the Southwest Interceptor as described above. If upon reevaluation Austin determines that it does not need additional capacity in the Southwest Interceptor between Nodes LC45013 and LC45001, and Round Rock determines that it needs to make improvements to these Nodes for its Reserved Capacity needs, Austin will not be required to cost participate in those improvements. Section 6.6 Improvements to the Lake Creek Interceptor. Austin and Round Rock will jointly hire one or more third parties to bid, design, and construct improvements to the Lake Creek Interceptor portion ,of the System to allow Austin and Round Rock to utilize their respective Reserved Capacity. Austin and Round Rock will take such actions in a timely manner immediately after the Effective Date of this Agreement. The estimated completion date of the Lake Creek Interceptor improvements is April 2016. The Cities will share the costs of the improvements in the following manner: (a) Costs will include all Hard Construction Costs and Soft Costs; (b) Soft Costs will be calculated for each Pipe Segment at an average cost per foot by dividing the total Soft Costs by the total number of feet of all improved Pipe Segments; (c) Hard Construction Costs will be calculated for each Pipe Segment at an average cost per foot by dividing the total Hard Construction Costs by the total number of feet for each size of improved Pipe Segment. For example, a Pipe Segment increased from 15 inches to 18 inches will have a separate calculated average cost per foot than a Pipe Segment increased from 18 inches to 24 inches; (d) For the Pipe Segments in the Lake Creek 2, each City's share of the Soft Costs and Hard Construction Costs will be calculated by each Pipe Segment as shown on Exhibit C. As shown on Exhibit C, Austin's share of the cost is 31.2% and Round Rock's share of the cost is 68.8%. Section 6.7 How, When and Where Payments are to be Made. If either City incurs costs related to shared improvements to the System, the other City agrees to pay its share of the cost within 30 days of receipt of invoice from the other City. 7 x t i E E ARTICLE VII GENERAL PROVISIONS Section 7.1 Participation by the Cities. Each City represents to the other that it is empowered by law to participate in the acquisition, construction, and financing of the System improvements, and to execute this Agreement and other agreements and documents as are or may hereafter be required to accomplish the same; that its execution of this Agreement has been duly authorized by action of its governing body at a meeting conducted in accordance with the Texas Open Meetings Act, as amended, Chapter 551, Texas Government Code. Each City agrees to execute the contracts and other agreements as the other City may reasonably request, and to take and perform such other and further actions and execute such other agreements and documents as may be reasonably required to carry out the provisions of this Agreement. Section 7.2 Force Majeure. If by reason of"Force Majeure", either City is rendered unable wholly or in part to carry out its obligations under this Agreement, and if that City gives notice and full particulars of such "Force Majeure" in writing to the other City within a reasonable time after occurrence of the event or cause relied on, the obligation of the City giving such notice will be suspended during the continuance of the inability then claimed, but for no longer period, and such City will endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein will mean acts of God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders of any kind of the United States or the State or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of Wastewater systems or water supply and inability on the part of such City to provide water necessary for operation of its water and Wastewater system hereunder, and impossibility by operation of law. It is understood and agreed that the settlement of strikes and lockouts will be entirely within the discretion of the City having the difficulty and that the above requirement that any Force Majeure will be remedied with all reasonable dispatch will not require the settlement of strikes and lockouts by acceding to the demands of the opposing City when such settlement is unfavorable in the judgment of the City having the difficulty. Section 7.3 Term of Contract. This Agreement will be effective upon the day and year recited above, and will continue until the Master Contract is terminated. Section 7.4 Amendment and Modification. This Agreement will not be amended except in writing by the authorized representatives of the Cities hereto. Any future modifications to this Agreement, including the exhibits, will show any change of Nodes or the name of a Node, or any other change to the System. No change, amendment, or modification of this Agreement, including the exhibits, will be made or be effective which will affect adversely the prompt 8 payment when due of all money required to be paid by each City under the terms of this Agreement and no such change, amendment, or modification will be made or be effective which would cause a violation of any provisions of any bond resolution of the other City. Section 7.5 Addresses and Notice. Unless otherwise provided herein, any notice, communication, request, reply, or advice (collectively, "Notice") hereunder provided or permitted to be given, made, or accepted by any party to the other City must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the City to be notified, with return receipt requested, or by delivering the same to an officer of such City, or by prepaid telegram when appropriate, addressed to the City to be notified. Notice deposited in the mail in the manner herein described will be conclusively deemed to be effective, unless otherwise stated herein, from and after the expiration of three days after it is so deposited. Notice given in any other manner will be effective only when received by the City to be notified. For the purposes of notice, the addresses of the Cities will, until changed as herein provided, be as follows: If to Austin: Director, Austin Water Utility P.O. Box 1088 Austin, Texas 78767, If to Round Rock: City Manager 221 E. Main St. Round Rock, Texas 78664 The Cities hereto will have the right from time to time and at any time to change their respective addresses and each will have the right to specify as its address any other address by at least 15 days' written notice to the other City. Section 7.6 Severability. The Cities specifically agree that in case any part of this Agreement or the application of such part to any situation or circumstance should be held to be invalid or unconstitutional, under the laws or constitutions of the State or the United States of America, or in contravention of any such laws or constitutions, such invalidity, unconstitutionality, or contravention will not affect any other part of this Agreement or the application of such part to any other situation or circumstance, and it is intended that this Agreement will be severable and will be construed and applied as if any such invalid or unconstitutional part had not been included herein, and the rights and obligations of the Cities hereto will be construed and remain in force accordingly. Section 7.7 Remedies Upon Default. It is not intended hereby to specify an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by either City hereto and will be cumulative. Recognizing that failure in the performance of the Cities' obligations hereunder could not be adequately compensated in money damages alone, each City agrees in the event of any default on its part that the other City will have available to them the remedies of mandamus and specific performance in addition to 9 any other legal or equitable remedies (other than termination) which may also be available to them. Notwithstanding anything to the contrary contained in this Agreement, any right or remedy or any default hereunder will be deemed to be conclusively waived unless asserted by a proper proceeding at law or in equity within two years plus one day after the occurrence of such default. No waiver of any breach or default by either City hereto or of the performance by either City of any duty or obligation hereunder will be deemed a waiver thereof in the future, nor will any such waiver be deemed or construed to be a waiver of subsequent breaches or defaults of any kind under any circumstances. Section 7.8 Venue. All amounts due under this Agreement, including, but not limited to, payments due under this Agreement or damages for the breach of this Agreement, will be paid and be due in Williamson County, Texas. It is specifically agreed among the Cities that Williamson County, Texas, is the place of performance of this Agreement; and in the event that any legal proceeding is brought to enforce this Agreement or any provision hereof, the same will be brought in Williamson County, Texas. Section 7.9 Statutory Authority. In entering into this Agreement and performing all duties and obligations hereunder, the Cities exercise their authority under and in accordance with the State Constitution and laws including, but not limited to, Chapter 1371 and 1502, as amended, Texas Government Code; each City's respective Home Rule Charter; and all other laws which may authorize this Contract, all of which provisions and laws, cited or not cited herein, will cumulatively provide the authority for this Agreement. Section 7.10 Agreement for Benefit of the Cities. This Agreement is made for the exclusive benefit of the Cities only, and not for any third party or parties, and such third parties may not assert any rights or remedies under or by reason of this Agreement. Section 7.11 Succession and Assignment. This Agreement is binding on and inures to the benefit of the Cities hereto and their respective successors, representatives, and assigns. This Agreement may not be assigned by either City hereto without (i) complying with any provisions relating to the right of a City to assign this Agreement and (ii) prior written notice to and approval by the other City, which consent may not be unreasonably withheld or delayed. Section 7.12 Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Agreement for all purposes and are adopted as a part of the judgment and findings of the Cities. Section 7.13 Entire Agreement. This Agreement constitutes the entire agreement among the Cities with respect to the matters described herein. Section 7.14 Applicable Law. This Agreement will be governed by and construed in accordance with the laws of the State, and the obligations, rights, and remedies of the Cities 10 hereunder will be determined in accordance with such laws without reference to the laws of any other state or jurisdiction, except for applicable federal laws, rules, and regulations. Section 7.15 Multiple Counterparts. This Agreement may be executed in multiple counterparts, each of which will be an original and all of which together will constitute but one and the same instrument. IN WITNESS WHEREOF, the Cities hereto acting under authority of their respective governing bodies has caused this Agreement to be duly executed as of the day and year first above written. ** SIGNATURE PAGES TO FOLLOW ** 11 CITY OF AUSTIN, TEXAS By: Robert Goode, P.E., Assistant City Manager 12 CITY OF ROUND ROCK, TEXAS By: Alan McGraw, Mayor Attest: By: Sara White, City Clerk 13 EXHIBIT A MAP OF OVERALL SYSTEM 14 EXHIBIT B DETAILED MAP OF PIPE SEGMENTS FROM NODE TO NODE 15 EXHIBIT C COST PARTICIPATION METHODOLOGY AND ESTIMATED COSTS 16 EXHIBIT D OWNERSHIP OF CAPACITY BY PIPE SEGMENT s 1 { L S }E} E t t E 17 £E e\ Solr�ai�G q$q E.t � �"4i+..$ a . 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RECITALS 1. Austin and Round Rock each own and operate extensive water and wastewater utility ' systems providing utility service to customers in Williamson and Travis Counties. 2. Austin and Round Rock recognize that substantial benefits are derived from joint cooperation with each other in the planning, financing, construction and provisions of utilities in the region served by both parties. P 3. Austin and Round Rock are interested in continuing to join together to design, construct, and operate a regional wastewater collection system to transport wastewater to the Brushy Creek x Regional Wastewater Treatment Plants. Austin and Round Rock's shared collection system is a component of the Brushy Creek Regional Wastewater System ("BCRWWS"). The BCRWWS is owned by the cities of Austin, Round Rock, Cedar Park, and Leander. The shared collection system between Austin and Round Rock consists of the South Interceptor, the Southwest Interceptor, and the Lake Creek Interceptor (collectively the "Lake Creek Collection System"), as shown on Exhibit A. 4. The BCRWWS is currently operated and maintained by the Brazos River Authority ("BRA"). } i 5. Austin and Round Rock both need additional conveyance capacity in the Lake Creek Collection System to provide for future development. f 6. Austin and Round Rock desire to set forth their agreement regarding the Lake Creek Collection System. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the sufficiency of which are hereby conclusively acknowledged, and subject to the terms and conditions here set forth, the Cities mutually agree as follows: 1 ARTICLE 1 DEFINITIONS Section 1.1 Definitions. In addition to the terms defined above, the terms below will have the following meanings: (a) "BCRWWS" means, collectively, the land interests and the improvements of the Brushy Creek Regional Wastewater System described in the Master Contract. Without limitation the BCRWWS includes the facilities, mains, lift stations, and other appurtenances as described in the Master Contract. SouthwestInterceptorILA_CC5 22 14.docx `s b (b) "Austin's Dry Weather Flow or DWF" means 1,036,840 million gallons per day which is applicable to only the Southwest Interceptor. i (c) "Austin's Peak Wet Weather Flow or PWWF" means 4,147,360 million gallons per day which is applicable to only the Southwest Interceptor. (d) "Effective Date" means the last date shown of execution of this Agreement by the q Cities. (e) "EPA" means the United States Environmental Protection Agency. (f) "Hard Construction Costs" mean the costs for excavation, purchase and installation of pipe and appurtenances, equipment and appurtenances for the provision of electricity and water, and construction site restoration. (g) "LUE" means Living Unit Equivalent, a capacity of 245 gallons per day (average daily flow) and a calculated instantaneous peak wet weather flow (average daily flow multiplied by four) of 980 gallons for a single-family residence. Average daily flow is the amount of Wastewater flow averaged over a 24-hour period. (h) "Master Contract" means collectively the Amended and Restated Master Contract for the Financing, Construction, Ownership, and Operation of the Brushy Creek Regional Wastewater System (the "Contract") dated June 4, 2010 by and among the cities of Austin, Cedar Park, Leander, and Round Rock, and the First Amendment to the Amended and Restated Master Contract for the Financing, Construction, Ownership, and Operation of the Brushy Creek Regional Wastewater System dated August 1, 2011; k (i) "Metering Facility" means the Wastewater flow meter, meter vault, and all metering and telemetering equipment, and telecommunication and electrical appurtenances required to measure the amount of wastewater delivered to the System by Austin. A Metering Facility that will record multiple readings averaged over 15-minute intervals (the frequency to be determined by Austin and Round Rock). (j) "Node" means a specific manhole in the interceptors that make up the System. (k) "Pipe Segment" means that portion of the System measured from one Node to another Node as shown in Exhibit B. (1) "Point of Entry" means a point at which Wastewater from each City enters the System. (m) 'Reserved Capacity" means the total quantity of Wastewater that a City is entitled to deliver into the System. 2 E f (n) "Service Area" means the area within the City's corporate limits or extraterritorial x jurisdiction served by its wastewater utility as it may exist from time to time. (o) "Significant Industrial Users" has the meaning for that term as defined by 40 Code of Federal Regulations 403.3(v). (p) "Soft Costs" mean the costs for preliminary engineering reports, surveying, geotechnical studies, acquisition of easements (or rights of way or fee simple title), permitting, design, project management of the construction and installation of infrastructure, governmental fees (including inspection fees), and any other consultant fees related to construction. (q) "System" means the Lake Creek Collection System consisting of the Lake Creek Interceptor 1, Lake Creek Interceptor 2, the South Interceptor and the Southwest Interceptor as shown on Exhibit A. (r) "State" means the State of Texas. (s) "TCEQ" means the Texas Commission on Environmental Quality or its successor agency. (t) "Wastewater" means liquid and water-carried waste discharged from sanitary conveniences of dwellings, business buildings, institutions and the like including garbage which has been shredded to such degree that all particles will be carried freely under flow conditions normally prevailing in public sewers, with no particle greater than one-half (1/2) inch in any dimension and the liquid wastes from industrial processes, and includes any infiltration water that has migrated from the ground into the System, or inflow water from above the ground entering the System. ARTICLE H PURPOSE AND DESCRIPTION OF THE LAKE CREEK COLLECTION SYSTEM Section 2.1 Purpose of this Agreement. The purpose of this Agreement is to set forth the terms and conditions under which the Cities will finance, acquire, construct, own, maintain, and operate the System. The System will be used for receiving and transporting of Wastewater from the Cities generated within each City's respective Service Area. The Cities will design, acquire, construct, expand, extend, enlarge, improve, and repair the System from time to time. If there are any conflicts between this Agreement and the Master Contract or other agreements related to the System executed prior to this Agreement's Effective Date, this Agreement will prevail. n } 4 i; 3 i s n ARTICLE III RESERVED CAPACITIES Section 3.1 Reserved Capacities. Each City's respective capacity in the System is as shown in Exhibit B. Each City will have the exclusive right to its Reserved Capacity in each Pipe Segment. Section 3.2 Transfer of Reserved Capacity. Each City may transfer any portion of j its Reserved Capacity to the other City, in exchange for mutually agreed upon consideration. Section 3.3 Exceeding Reserved Capacity. If either City exceeds its Reserved Capacity, such City will be solely responsible for any expenses necessary to adhere to its Reserved Capacity and to proceed with due diligence using its reasonable efforts to remedy the situation. Regardless of the foregoing, Round Rock agrees to solely be responsible for all Wastewater overflows and the reporting, fines, fees, findings, judgments, engineering and compliance reports, costs, and all other expenses related to the System as long as Austin does not exceed its Reserved Capacity in the System, unless said costs are attributable to actual defects (i.e. deteriorated, broken, or cracked mains or manholes) in the System or Austin's negligence. If said costs are attributable to actual defects in the System, then those costs will be shared in accordance with Reserved Capacities identified in Exhibit D. Section 3.4 Verification of Flows into the Southwest Interceptor. Austin, at its sole cost, will be responsible for verifying, through Wastewater flow monitoring, that its actual Wastewater flows do not exceed its Reserved Capacity in the Southwest Interceptor. Austin's Wastewater flows into the Southwest Interceptor will be measured by the difference in flows measured from a meter on the Round Rock Wastewater main located along FM 1325 Node LC453856 and a meter installed within Austin's service area near the Service Area boundary on the north side of State Highway 45 at Node LC453876. With the exception of Round Rock's existing Wastewater main connecting at Node LC45001 (at corner of Southwest Interceptor ' System and 12-inch wastewater main), the Wastewater flows between Node LC45001 and LC453876 are currently generated by Austin customers. The actual PWWF will be measured through a Metering Facility at or near Node LC453876. d ARTICLE IV GENERAL k y Section 4.1 Wholesale Contracts. In the event that Wastewater service is sold by a City to another entity located within the City's Service Area that will contribute Wastewater to the System, the City selling the Wastewater service is solely responsible for said entities' quantity and quality of Wastewater entering the System and for all rights and obligations stated herein. Section 4.2 Title to Wastewater. Title to and interest in each City's Wastewater will remain with each City, respectively, at all times. Neither City will acquire any right or title to 4 the other City's respective Wastewater interests by virtue of this Agreement and nor will otherwise assert any ownership interest in the other City's Wastewater rights. Section 4.3 Point(s) of Entry. Each City will have the sole responsibility, at its own cost, for providing additional pipelines and other facilities required for transporting its own Wastewater to one or more Points of Entry in the System. If Round Rock connects to any Pipe 4 Segment of the Southwest Interceptor between Node LC45001 and Node LC453876, then Round Rock agrees, at its sole cost, to design and construct a Metering Facility at this new Point of Entry, or other mutually agreed upon method to reasonable and accurately measure Round Rock's flows. Round Rock and Austin must agree to such new Point of Entry and Metering Facility prior to Round Rock's installation or introduction of new applicable Wastewater flows s' into this portion of the Southwest Interceptor. Section 4.4 Inflow and Infiltration. Each City will use reasonable efforts to minimize inflow and infiltration into the System. The cost of repair or replacement of portions of Austin's or Round Rock's Wastewater infrastructure prior to entry into the System, attributable to inflow and infiltration, will be borne by the applicable City. The cost of repair or replacement of portions of the System because of inflow and infiltration attributable to defects in a the System will be shared proportionally for each Pipe Segment based upon the City's Reserved r Capacity of such as shown in Exhibit B. Section 4.5 Dischme Ouality. The Cities will have the right to discharge Wastewater into the System meeting the requirements of quality as set forth in the pretreatment program approved by EPA and TCEQ for the System and of which the System is capable of handling. Each City agrees to implement and enforce the BCRWWS pretreatment program for 3 its Service Area. Each City also covenants that it will have in effect and will enforce a sewer use ordinance in accordance with EPA and TCEQ's regulations or regulations of other governmental agencies having jurisdiction to set standards for waste discharges. Furthermore, each City will, at any reasonable time upon request by the other City, produce pretreatment program records for its Service Area for review. Each City also agrees that no new Significant Industrial User will be allowed to connect to the City's sewer system within its Service Area without prior notification of the intent to connect being given by the City as required in the Master Contract. All Significant Industrial Users that are customers of a City and located within its Service Area and outside the City's corporate limits will also be required to obtain a sewer use permit. ARTICLE V OPERATION AND MAINTENANCE Section 5.1 Expenses. Operational and maintenance expenses, not related to Wastewater overflows or the control of inflow and infiltration of the System, will be shared proportionally for each Pipe Segment based upon the City's Reserved Capacity in accordance ' with Exhibit B. Replacement expenses of Pipe Segment(s) or Nodes (i.e. through slip lining, pipe bursting, coating, or a new wastewater main or manhole, etc.) due only to the age of the pipe and associated aging conditions of the System (i.e. a replacement not caused by the need for additional capacity) will be shared proportionally for each Pipe Segment based upon the City's Reserved Capacity in accordance with Exhibit D. 5 E p F t ARTICLE VI IMPROVEMENTS TO THE SYSTEM Section 6.1 General. Improvements, other than those stated herein, will be in accordance with the Master Contract using the proportionate Reserved Capacity stated in this Agreement as a means to identify each City's cost. The improvements stated herein derive from Austin and Round Rock projecting their respective population for the year 2050 in order to estimate the amount of additional capacity each City needs in the System. Section 6.2 System Improvements' Design and Construction. The Cities will jointly fund, in accordance with their Reserved Capacity, and make decisions concerning the design and construction of improvements to the System as described herein and through any engineering reports related to such improvements. Engineering reports may be amended and updated from time to time, to reflect final design and construction changes in the System and to reflect further actions and understandings of the Cities. The Cities agree that they will cooperate to facilitate timely municipal plan review and permitting, and other matters for construction related to the System located in the City's regulatory jurisdiction. Design specifications will be in accordance with the Master Contract. Both Cities, at their respective cost, must approve the design plans of improvements to the System. The Cities will use the bidding process as required in the Master Contract. Section 6.3 Inspection. For improvements to the System that are solely the responsibility of one of the Cities, that City may inspect its improvements so long as the inspection is in accordance with the Master Contract. For other improvements to the System, the Cities will conduct inspections and determine whether the completion of the improvements is in accordance with the approved design plans. Section 6.4 As-Built Plans. Each City and the contracted operator of the BCRWWS will be provided a copy of as-built plans within 30 days of final acceptance of the improvement. Section 6.5 Improvements to the Southwest Interceptor. Austin, at its cost, in order to access its Reserved Capacity in the Southwest Interceptor will design, bid, and construct upsized Pipe Segments between Nodes LC45013 and LC45001. When Austin's actual flows exceed 80% of its 30-day average DWF Reserved Capacity or 100% instantaneously PWWF Reserved Capacity, as measured through a Metering Facility, then Austin will reevaluate its y Reserved Capacity at that time. If upon such reevaluation Austin determines that it needs additional capacity in the Southwest Interceptor between these Nodes, then Austin will initiate the design and construction of necessary improvements. Austin agrees to provide written notice of such to Round Rock. Austin agrees to complete any necessary improvements within 24 months after the Austin exceeds 80% of its 30-day average DWF Reserved Capacity or 100% instantaneous PWWF Reserved Capacity, as measured through a Metering Facility. After Austin has provided such written notice to Round Rock, Round Rock will evaluate whether to begin the design and construction of improvements between Node LC 15112 and Node 6 =' a §f§ t z LC1522A in order for Round Rock to ensure Austin's full use of its Reserved Capacity so that PWWFs within the Southwest Interceptor will not exceed two feet from the top of any manhole. If upon such reevaluation Round Rock determines that additional capacity is needed, then Round Rock will initiate the design and construction of the necessary improvements. Round Rock agrees to provide written notice of such to Austin and will complete such improvements within 27 months of Austin's notice to Round Rock. Austin, at its sole discretion, may phase the required improvements between Nodes so long as Austin does not exceed its Reserved Capacity in those Nodes not improved. Such phasing will i not modify or extend the required due date of Round Rock's improvements to the Southwest Interceptor as described above. 3 If upon reevaluation Austin determines that it does not need additional capacity in the Southwest Interceptor between Nodes LC45013 and LC45001, and Round Rock determines that it needs to make improvements to these Nodes for its Reserved Capacity needs, Austin will not be required to cost participate in those improvements. Section 6.6 Improvements to the Lake Creek Interceptor. Austin and Round Rock will jointly hire one or more third parties to bid, design, and construct improvements to the Lake §` Creek Interceptor portion of the System to allow Austin and Round Rock to utilize their respective Reserved Capacity. Austin and Round Rock will take such actions in a timely manner immediately after the Effective Date of this Agreement. The estimated completion date of the Lake Creek Interceptor improvements is April 2016. The Cities will share the costs of the improvements in the following manner: (a) Costs will include all Hard Construction Costs and Soft Costs; k. (b) Soft Costs will be calculated for each Pipe Segment at an average cost per foot by dividing the total Soft Costs by the total number of feet of all improved Pipe Segments; (c) Hard Construction Costs will be calculated for each Pipe Segment at an average cost per foot by dividing the total Hard Construction Costs by the total number of feet for each size of improved Pipe Segment. For example, a Pipe Segment increased from 15 inches to 18 inches will have a separate calculated average cost per foot than a Pipe Segment increased from 18 inches to 24 inches; (d) For the Pipe Segments in the Lake Creek 2, each City's share of the Soft Costs f and Hard Construction Costs will be calculated by each Pipe Segment as shown on Exhibit C. As shown on Exhibit C, Austin's share of the cost is 31.2% and Round Rock's share of the cost is 68.8%. Section 6.7 How. When and Where Payments are to be Made. If either City incurs costs related to shared improvements to the System, the other City agrees to pay its share of the cost within 30 days of receipt of invoice from the other City. 7 s- z x 4 3 ARTICLE VII GENERAL PROVISIONS z r Section 7.1 Participation by the Cities. Each City represents to the other that it is empowered by law to participate in the acquisition, construction, and financing of the System improvements, and to execute this Agreement and other agreements and documents as are or may hereafter be required to accomplish the same; that its execution of this Agreement has been duly authorized by action of its governing body at a meeting conducted in accordance with the Texas Open Meetings Act, as amended, Chapter 551, Texas Government Code. Each City agrees to execute the contracts and other agreements as the other City may reasonably request, and to take and perform such other and further actions and execute such other agreements and documents as may be reasonably required to carry out the provisions of this Agreement. Section 7.2 Force Majeure. If by reason of "Force Majeure", either City is rendered unable wholly or in part to carry out its obligations under this Agreement, and if that City gives notice and full particulars of such "Force Majeure" in writing to the other City within a reasonable time after occurrence of the event or cause relied on, the obligation of the City giving such notice will be suspended during the continuance of the inability then claimed, but for no longer period, and such City will endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein will mean acts of God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders of any kind of the United States or the State or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of Wastewater systems or water supply r' and inability on the part of such City to provide water necessary for operation of its water and Wastewater system hereunder, and impossibility by operation of law. It is understood and F agreed that the settlement of strikes and lockouts will be entirely within the discretion of the City having the difficulty and that the above requirement that any Force Majeure will be remedied with all reasonable dispatch will not require the settlement of strikes and lockouts by acceding to the demands of the opposing City when such settlement is unfavorable in the judgment of the City having the difficulty. d` Section 7.3 Term of Contract. This Agreement will be effective upon the day and year recited above, and will continue until the Master Contract is terminated. F Section 7.4 Amendment and Modification. This Agreement will not be amended except in writing by the authorized representatives of the Cities hereto. Any future modifications to this Agreement, including the exhibits, will show any change of Nodes or the name of a Node, or any other change to the System. No change, amendment, or modification of this Agreement, including the exhibits, will be made or be effective which will affect adversely the prompt 8 I 7 3 y3y F payment when due of all money required to be paid by each City under the terms of this Agreement and no such change, amendment, or modification will be made or be effective which would cause a violation of any provisions of any bond resolution of the other City. Section 7.5 Addresses and Notice. Unless otherwise provided herein, any notice, s k" communication, request, reply, or advice (collectively, "Notice") hereunder provided or permitted to be given, made, or accepted by any party to the other City must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the City to be notified, with return receipt requested, or by delivering the same to an officer of such City, or by prepaid telegram when appropriate, addressed to the City to be notified. Notice deposited in the mail in the manner herein described will be conclusively deemed to be effective, unless otherwise stated herein, from and after the expiration of three days after it is so deposited. Notice given in any other manner will be effective only when received by the City to be notified. For the purposes of notice, the addresses of the Cities will, until changed as herein provided, be as follows: If to Austin: Director, Austin Water Utility P.O. Box 1088 Austin, Texas 78767 If to Round Rock: City Manager 221 E. Main St. Round Rock, Texas 78664 The Cities hereto will have the right from time to time and at any time to change their respective addresses and each will have the right to specify as its address any other address by at least 15 days' written notice to the other City. Section 7.6 Severability. The Cities specifically agree that in case any part of this Agreement or the application of such part to any situation or circumstance should be held to be invalid or unconstitutional, under the laws or constitutions of the State or the United States of America, or in contravention of any such laws or constitutions, such invalidity, unconstitutionality, or contravention will not affect any other part of this Agreement or the application of such part to any other situation or circumstance, and it is intended that this Agreement will be severable and will be construed and applied as if any such invalid or unconstitutional part had not been included herein, and the rights and obligations of the Cities hereto will be construed and remain in force accordingly. Section 7.7 Remedies Upon Default. It is not intended hereby to specify an exclusive remedy for any default, but all such other remedies (other than termination) existing at law or in equity may be availed of by either City hereto and will be cumulative. Recognizing that failure in the performance of the Cities' obligations hereunder could not be adequately compensated in money damages alone, each City agrees in the event of any default on its part that the other City will have available to them the remedies of mandamus and specific performance in addition to 9 n t any other legal or equitable remedies (other than termination) which may also be available to them. Notwithstanding anything to the contrary contained in this Agreement, any right or remedy or any default hereunder will be deemed to be conclusively waived unless asserted by a proper proceeding at law or in equity within two years plus one day after the occurrence of such default. No waiver of any breach or default by either City hereto or of the performance by either City of any duty or obligation hereunder will be deemed a waiver thereof in the future, nor will any such waiver be deemed or construed to be a waiver of subsequent breaches or defaults of any kind under any circumstances. Section 7.8 Venue. All amounts due under this Agreement, including, but not limited to, payments due under this Agreement or damages for the breach of this Agreement, will be h paid and be due in Williamson County, Texas. It is specifically agreed among the Cities that Williamson County, Texas, is the place of performance of this Agreement; and in the event that any legal proceeding is brought to enforce this Agreement or any provision hereof, the same will be brought in Williamson County, Texas. Section 7.9 Statutory Authority. In entering into this Agreement and performing all duties and obligations hereunder, the Cities exercise their authority under and in accordance with the State Constitution and laws including, but not limited to, Chapter 1371 and 1502, as amended, Texas Government Code; each City's respective Home Rule Charter; and all other laws which may authorize this Contract, all of which provisions and laws, cited or not cited herein, will cumulatively provide the authority for this Agreement. Section 7.10 Amement for Benefit of the Cities. This Agreement is made for the exclusive benefit of the Cities only, and not for any third party or parties, and such third parties may not assert any rights or remedies under or by reason of this Agreement. Section 7.11 Succession and Assisnment. This Agreement is binding on and inures to the benefit of the Cities hereto and their respective successors, representatives, and assigns. This Agreement may not be assigned by either City hereto without (i) complying with any provisions relating to the right of a City to assign this Agreement and (ii)prior written notice to and approval by the other City, which consent may not be unreasonably withheld or delayed. F Section 7.12 Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Agreement for all purposes and are adopted as a part of the judgment and findings of the Cities. Section 7.13 Entire Agreement. This Agreement constitutes the entire agreement among the Cities with respect to the matters described herein. Section 7.14 Applicable Law. This Agreement will be governed by and construed in accordance with the laws of the State, and the obligations, rights, and remedies of the Cities 10 3 7 1 3 3 hereunder will be determined in accordance with such laws without reference to the laws of any E other state or jurisdiction, except for applicable federal laws, rules, and regulations. ' F Section 7.15 Multiple Counterparts. This Agreement may be executed in multiple t counterparts, each of which will be an original and all of which together will constitute but one and the same instrument. e IN WITNESS WHEREOF, the Cities hereto acting under authority of their respective governing bodies has caused this Agreement to be duly executed as of the day and year first above written. ** SIGNATURE PAGES TO FOLLOW ** x x E„ 11 s `s a e t CITY OF AUSTIN, TEXAS s E t By: Robert Goo ., Assistant City Manager J r E at 4 C is F i 12 f CITY OF OUND ROCK,TEXAS By: . 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