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R-12-12-06-F6 - 12/6/2012RESOLUTION NO. R-12-12-0646 WHEREAS, St. David's Round Rock Medical Center ("St. David's") is currently receiving wastewater services from the City of Round Rock ("City") and is billed for such services utilizing the winter average method in accordance with Chapter 44, Round Rock Code of Ordinances, and WHEREAS, the City Council wishes to enter into an Alternative Wastewater Service Billing Agreement with St. David's to provide an alternative method of calculating the amount of water that St. David's discharges into the City's wastewater 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 said Agreement with St. David's, 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 Govermnent Code, as amended. RESOLVED this 6th day of December, 2012. ALA MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA L. WHITE, City Clerk 0.h d. 1SCC1.t 0112A204WLTNICIPAL\00263343_DOC/— EXHIBIT „A» ALTERNATIVE WASTEWATER SERVICE BILLING AGREEMENT THIS ALTERNATIVE WASTEWATER SERVICE BILLING AGREEMENT (hereinafter the "Agreement"), is hereby entered into on the day of December, 2012 by and between the St. David's Round Rock Medical Center, a Texas corporation with offices at 2400 Round Rock Avenue, Round Rock, Texas (hereinafter "St. David's"), and the City of Round Rock, Texas (hereinafter "City"), a home -rule municipality and political subdivision of the State of Texas with offices at 221 East Main Street, Round Rock, Texas 78664. In this Agreement, the City and St. David's are sometimes referred to individually as "a Party" and collectively as "the Parties." WHEREAS, St. David's is the owner of the St. David's Round Rock Medical Center which is located at 2400 Round Rock Avenue, Round Rock, Texas 78681, (hereinafter the "Property"); and WHEREAS; St. David's currently is billed for wastewater services utilizing the winter average method in accordance with Chapter 44, Round Rock Code of Ordinances, 2010 Edition; and WHEREAS, St. David's utilizes a cooling tower air-conditioning system that results in a significant amount of water being lost to evaporation that does not get discharged into the City's wastewater system; and WHEREAS, St. David's desires to enter into this A greement with the City for the purpose of more accurately calculating St. David's monthly wastewater usage as a result of the aforesaid evaporation loss; and WHEREAS, the City is agreeable to enter into this Agreement with St. David's to provide an alternative method of calculating the amount of water that St. David's discharges into the City's wastewater system; NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained in this Agreement, the Parties agree as follows: ARTICLE I. PURPOSE OF THIS AGREEMENT Pursuant to Chapter 44, Section 44-30(c) Round Rock Code of Ordinances, 2010 Edition, wastewater usage is generally determined by averaging the monthly water usage for the months of December, January, and February of each fiscal year. St. David's utilizes a water cooling tower for its air-conditioning system that utilizes a significant amount of water that is lost through evaporation and is therefore not discharged into the City's wastewater system. The purpose of this Agreement is to provide an agreed alternative 00261498.DOC method of calculating wastewater usage by St. David's that takes into account the water that is lost through evaporation. In order to utilize this alternative method of calculation, the amount of water lost through evaporation must be determined. To assist in this determination, St. David's has installed a Blow -Down Meter and a Make-up Meter on its cooling tower system. The Make-up Meter measures the amount of water flowing into the cooling tower system. The Blow -Down Meter measures the amount of water discharged from the cooling tower to the City's wastewater collection and treatment system. The difference is the amount of water that is lost through evaporation. The amount of water lost through evaporation shall be calculated by determining the total water usage measured by the Blow -Down Meter less the amount of water measured by the Make-up Meter. The calculated amount of water lost to evaporation is referred to herein as the "Cooling Tower Water Usage." ARTICLE II. ALTERNATE METHOD OF CALCULATING WASTEWATER USAGE From the effective date of this Agreement until Aprill, 2014, the Cooling Tower Water Usage is agreed by the Parties to be 693,535 gallons per month. On or before April 1, 2014 and for each succeeding year of this Agreement, St. David's shall provide the City with the monthly meter readings for the Blow -Down Meter and the Make- up Meter for the previous twelve month period beginning with the previous March and ending with the following February. Using this data, the City shall determine the average monthly Cooling Tower Water Usage for the previous twelve month period. Beginning in April of each year, the City shall calculate St. David's monthly wastewater usage by deducting St. David's average monthly Cooling Tower Water Usage for the previous twelve month period from St. David's total monthly water usage. The result of the foregoing calculation will be the basis for determining St. David's monthly wastewater bill. ARTICLE III METER CALIBRATION St. David's shall cause the Make-up Meter and the Blow -down Meter to be calibrated annually between October 1 and December 1 of each year. The annual calibration shall be by an independent, outside contractor who has been approved in writing and in advance by the City. 2 ARTICLE IV METERING AND REPORTING In addition to the historical meter reading data described in Article II above, St. David's agrees to provide the City with the monthly meter readings from the Make-up Meter and the Blow -down Meter. The City shall have the right to enter onto St. David's Property at all reasonable times to take readings from the Make-up Meter and Blow -down Meter. ARTICLE V. EFFECTIVE DATE AND TERM The term of this Agreement shall be until December 31, 2013, provided however, it shall renew automatically for successive twelve (12) month periods unless one of the Parties gives notice to the other Party on or before December 1 that it does not wish to renew the Agreement. ARTICLE VI TERMINATION If St. David's defaults in the undertaking of any of its obligations under this Agreement or breaches any of its provisions, the City shall have the right to terminate this Agreement by giving St. David's thirty (30) days written notification of its decision to terminate. City has the right to terminate this Agreement, in whole or in part, for convenience and without cause, at any time upon ninety (90) days' written notice to St. David's. ARTICLE VII REVERSION TO WINTER AVERAGE In the event that either Party elects to not renew this Agreement or the City elects to terminate this Agreement as provided in Article VI above, the Parties shall discontinue all obligations in connection with the performance of this Agreement, and the wastewater usage shall be determined in accordance with the winter average method set forth in the Round Rock Code of Ordinances, 2010 Edition, as amended. ARTICLE VII NOTICE Notice to St. David's: Deborah Ryle Chief Executive Officer St. David's Round Rock Medical Center 2400 Round Rock Ave Round Rock Texas 78681 Notice to City: Steve Norwood City Manager 221 East Main Street Round Rock, TX 78664 with copy to: Stephan L. Sheets City Attorney 309 E. Main St. Round Rock, TX 78664 IN WITNESS WHEREOF, the City and St. David's have executed this Agreement on the dates indicated below. CITY OF ROUND ROCK, TEXAS Alan McGraw, Mayor Dated this day of , 2012 ST. DAVID'S ROUND ROCK MEDICAL CENTER By: , r Deborah Ryle, Chief executive Officer Dated this 1 ;, day of Lilombcv2012 4 ROUND ROCK, TEXAS City Council Agenda Summary Sheet PURPOSE. PASSION. PROSPERITY. Agenda Item No. F6. Consider a resolution authorizing the Mayor to execute an Alternative Wastewater Agenda Caption: Service Billing Agreement with St. David's Round Rock Medical Center. Meeting Date: December 6, 2012 Utilities and Environmental Services Staff Person making presentation: Michael Thane, P.E. Utilities Director Item Summary: St. David's Round Rock Medical Center is a water and wastewater utility customer of the City of Round Rock. They have a cooling tower serving their buildings with two water meters installed on it. One meter, the make-up water meter, measures the amount of potable water flowing into the cooling tower. The other one, the blow -down water meter, measures the amount of water leaving the cooling tower and then flowing into the City's wastewater collection system. The difference between the readings of these two meters represents evaporative loss. Since the evaporated water goes out into the atmosphere and does not enter the City's wastewater collection system, they have requested that it be accounted for when calculating their wastewater bill. This agreement formulates a straight -forward method for accounting for the evaporation loss, and more fairly allocates the number of gallons per month that St. David's Round Rock Medical Center should pay for wastewater. We only offer this type of an agreement to businesses that have large cooling tower systems where they lose a lot of water through evaporation. The amount of revenue the City receives is reduced on the wastewater side, but it is fair to the business since they are actually over paying as it is today. This agreement will also represent a deviation from the City's Ordinance for wastewater billing under Chapter 10, Section 10.202 of the City's Code of Ordinances. Cost: N/A — No cost to the City to execute this agreement Recommended Action: Approval EXECUTED ORIGINAL DOCUMENT FOLLOW ALTERNATIVE WASTEWATER SERVICE BILLING AGREEMENT THIS ALTERNATIVE WASTEWATER SERVICE BILLING AGREEMENT (hereinafter the "Agreement"), is hereby entered into on the _(a I& day of December, 2012 by and between the St. David's Round Rock Medical Center, a Texas corporation with offices at 2400 Round Rock Avenue, Round Rock, Texas (hereinafter "St. David's"), and the City of Round Rock, Texas (hereinafter "City"), a home -rule municipality and political subdivision of the State of Texas with offices at 221 East Main Street, Round Rock, Texas 78664. In this Agreement, the City and St. David's are sometimes referred to individually as "a Party" and collectively as "the Parties." WHEREAS, St. David's is the owner of the St. David's Round Rock Medical Center which is located at 2400 Round Rock Avenue, Round Rock, Texas 78681, (hereinafter the "Property"); and WHEREAS; St. David's currently is billed for wastewater services utilizing the winter average method in accordance with Chapter 44, Round Rock Code of Ordinances, 2010 Edition; and WHEREAS, St. David's utilizes a cooling tower air-conditioning system that results in a significant amount of water being lost to evaporation that does not get discharged into the City's wastewater system; and WHEREAS, St. David's desires to enter into this A greement with the City for the purpose of more accurately calculating St. David's monthly wastewater usage as a result of the aforesaid evaporation loss; and WHEREAS, the City is agreeable to enter into this Agreement with St. David's to provide an alternative method of calculating the amount of water that St. David's discharges into the City's wastewater system; NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained in this Agreement, the Parties agree as follows: ARTICLE I. PURPOSE OF THIS AGREEMENT Pursuant to Chapter 44, Section 44-30(c) Round Rock Code of Ordinances, 2010 Edition, wastewater usage is generally determined by averaging the monthly water usage for the months of December, January, and February of each fiscal year. St. David's utilizes a water cooling tower for its air-conditioning system that utilizes a significant amount of water that is lost through evaporation and is therefore not discharged into the City's wastewater system. The purpose of this Agreement is to provide an agreed alternative 00261498.DOC method of calculating wastewater usage by St. David's that takes into account the water that is lost through evaporation. In order to utilize this alternative method of calculation, the amount of water lost through evaporation must be determined. To assist in this determination, St. David's has installed a Blow -Down Meter and a Make-up Meter on its cooling tower system. The Make-up Meter measures the amount of water flowing into the cooling tower system. The Blow -Down Meter measures the amount of water discharged from the cooling tower to the City's wastewater collection and treatment system. The difference is the amount of water that is lost through evaporation. The amount of water lost through evaporation shall be calculated by determining the total water usage measured by the Blow -Down Meter less the amount of water measured by the Make-up Meter. The calculated amount of water lost to evaporation is referred to herein as the "Cooling Tower Water Usage." ARTICLE II. ALTERNATE METHOD OF CALCULATING WASTEWATER USAGE From the effective date of this Agreement until Aprill, 2014, the Cooling Tower Water Usage is agreed by the Parties to be 693,535 gallons per month. On or before April 1, 2014 and for each succeeding year of this Agreement, St. David's shall provide the City with the monthly meter readings for the Blow -Down Meter and the Make- up Meter for the previous twelve month period beginning with the previous March and ending with the following February. Using this data, the City shall determine the average monthly Cooling Tower Water Usage for the previous twelve month period. Beginning in April of each year, the City shall calculate St. David's monthly wastewater usage by deducting St. David's average monthly Cooling Tower Water Usage for the previous twelve month period from St. David's total monthly water usage. The result of the foregoing calculation will be the basis for determining St. David's monthly wastewater bill. ARTICLE III METER CALIBRATION St. David's shall cause the Make-up Meter and the Blow -down Meter to be calibrated annually between October 1 and December 1 of each year. The annual calibration shall be by an independent, outside contractor who has been approved in writing and in advance by the City. 2 ARTICLE IV METERING AND REPORTING In addition to the historical meter reading data described in Article II above, St. David's agrees to provide the City with the monthly meter readings from the Make-up Meter and the Blow -down Meter. The City shall have the right to enter onto St. David's Property at all reasonable times to take readings from the Make-up Meter and Blow -down Meter. ARTICLE V. EFFECTIVE DATE AND TERM The term of this Agreement shall be until December 31, 2013, provided however, it shall renew automatically for successive twelve (12) month periods unless one of the Parties gives notice to the other Party on or before December 1 that it does not wish to renew the Agreement. ARTICLE VI TERMINATION If St. David's defaults in the undertaking of any of its obligations under this Agreement or breaches any of its provisions, the City shall have the right to terminate this Agreement by giving St. David's thirty (30) days written notification of its decision to terminate. City has the right to terminate this Agreement, in whole or in part, for convenience and without cause, at any time upon ninety (90) days' written notice to St. David's. ARTICLE VII REVERSION TO WINTER AVERAGE In the event that either Party elects to not renew this Agreement or the City elects to terminate this Agreement as provided in Article VI above, the Parties shall discontinue all obligations in connection with the performance of this Agreement, and the wastewater usage shall be determined in accordance with the winter average method set forth in the Round Rock Code of Ordinances, 2010 Edition, as amended. ARTICLE VII NOTICE Notice to St. David's: Deborah Ryle Chief Executive Officer St. David's Round Rock Medical Center 3 2400 Round Rock Ave Round Rock Texas 78681 Notice to City: Steve Norwood City Manager 221 East Main Street Round Rock, TX 78664 with copy to: Stephan L. Sheets City Attorney 309 E. Main St. Round Rock, TX 78664 IN WITNESS WHEREOF, the City and St. David's have executed this Agreement on the dates indicated below. CITY OF ROUND ROCK, TEXAS By: Alan McGraw, Mayor Dated this 61" day of AkO4&— , 2012 ST. DAVID' �SROUND ROCK MEDICAL CENTER By: (� �— Deborah Ryle, ChiefTxecutive Officer Dated this 1A day o d X012 4