O-91-2559 - 12/19/1991ORDINANCE NO. 2559
AN ORDINANCE DETERMINING AND EXPRESSING THE CITY COUNCIL'S
INTENTION TO NOT RENEW OR EXTEND THE WATER SUPPLY AGREEMENT
BETWEEN THE CITY OF ROUND ROCK AND BRUSHY CREEK MUNICIPAL
UTILITY DISTRICT; PROVIDING A SAVINGS CLAUSE AND REPEALING
CONFLICTING ORDINANCES.
WHEREAS, in 1985 representatives of Williamson County Municipal
Utility District No. 2, now known as Brushy Creek Municipal Utility
District ("BCMUD") approached the City of Round Rock ("City") with a
proposal to amend a then existing water supply agreement between BCMUD
and the City to significantly increase the volume of water which could
be purchased from the City by BCMUD, and
WHEREAS, throughout the resulting negotiations BCMUD represented
that (1) it needed substantial amounts of water to continue its
development, (2) it would actually consume the amounts of water it
needed and (3) it would pay for the water contracted for, thereby
resulting in significant sums of money to the City, and
WHEREAS, BCMUD specifically represented to the City that BCMUD
would consume 690,899,000 gallons in 1991, representing annual
revenues for water usage of $1,122,709, and
WHEREAS, in reliance upon the representations of BCMUD regarding
its need for an expanded water supply, the City entered into that
certain Agreement Between The City of Round Rock and Williamson County
Municipal Utility District No. 2 For the Sale of Potable Water
("Agreement") with BCMUD on October 14, 1986, and
WHEREAS, the Agreement provides that the City shall furnish to
BCMUD such quantities of water as may be required by BCMUD, not to
exceed 3 mgd average nor 9 mgd peak, and
OR11
WHEREAS, partially to provide the water capacity claimed to be
needed by BCMUD, the City issued $7,450,000 in utility system bonds to
expand the City's water treatment and transmission capacity, and
WHEREAS, in spite of its representations and the execution of the
Agreement, BCMUD has continued to develop and expand its own system of
water supply wells, and
WHEREAS, in spite of its usage representations, in fiscal year
1991, BCMUD consumed not 690,899,000 gallons, but only 5,086,000
gallons, resulting in annual revenues of not $1,122,709, but only
$10,199, and
WHEREAS, BCMUD has testified under oath that its present
intentions are to utilize its own wells to the absolute maximum and to
consume City water for only emergency purposes and to meet peak demand
requirements which cannot be supplied by its wells, and
WHEREAS, such usage patterns result in minimal revenues to the
City while putting tremendous peak demands on the City's utility
system, and
WHEREAS, in 1988 the City sought to have the area within the
boundaries of BCMUD included within the City's Certificate of
Convenience and Necessity (CCN) for planning purposes, and
WHEREAS, BCMUD objected to being included within the City's CCN,
and as a result the Texas Water Commission excluded BCMUD from the
CCN, and
WHEREAS, the vast majority of BCMUD is located outside of the
City's extraterritorial jurisdiction (ETJ), and therefore can never be
annexed into the City, and
2.
WHEREAS, BCMUD's pattern of water usage results in a significant
portion of the cost of providing capacity to BCMUD being unfairly
borne by in -City customers and wholesale customers, and
WHEREAS, it has been determined by the City Council that it is
not in the best interests of the City of Round Rock, its citizens,
taxpayers, ratepayers, and other wholesale water customers to extend
the Agreement when it expires on October 13, 2006, and
WHEREAS, the City desires to afford BCMUD ample notice of this
decision in order to give BCMUD adequate opportunity to contract for
and/or develop an alternate long term supply of water, Now Therefore;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS, THAT
I.
The City Council hereby determines that the extension of the
Agreement Between The City of Round Rock And Williamson County
Municipal Utility District No. 2 For the Sale of Potable Water would
not be in the best interest of the City, and hereby expresses its
intention to not renew or extend said Agreement when it expires on
October 13, 2006.
II.
The City Secretary is hereby directed to provide a certified copy
of this Ordinance to Brushy Creek Municipal Utility District and to
any other person or entity requesting a copy of said Agreement or
making an inquiry as to the City's intention respecting the supply of
water to Brushy Creek Municipal Utility District.
3.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this ordinance
shall not invalidate other sections or provisions thereof.
READ and APPROVED on first reading this the day of
LniGU41\i6,0\J
of
, 1991.
READ, APPROVED and ADOPTED on second reading this the 19±----hday
laCkinfthejt 1
ATTEST:
, 1991.
J NNE LAND, City Secretary
4.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
DATE: December 17, 1991
SUBJECT: City Council Meeting, December 19, 1991
ITEM: 8.C. Consider an ordinance expressing the Council's intention
concerning the renewal of the Brushy Creek MUD Water Contract.
(Second Reading)
STAFF RESOURCE PERSON: Steve Sheets
STAFF RECOMMENDATION:
This ordinance officially expresses the Council's position regarding the
extention in renewal of the Water Supply Contract with Brushy Creek MUD.
Staff recommends that the ordinance be passed on second reading.
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 above and
foregoing is a true and correct copy of an ordinance passed and
adopted by the City Council of the City of Round Rock, Texas, at
at a meeting held on the '�.
% `%t� day of �k' ;' � -inti
19 `// , which is recorded in the minutes of the City of Round
Rock in book
WITNESSED by my hand and seal of the City of Round Rock,
Texas on this 6( 7 `11-) day of �c? � 19 9/
nine' /ra"
ANNE LAND
A sistant City Manager/
City Secretary
ORDINANCE NO. a 559
AN ORDINANCE DETERMINING AND EXPRESSING THE CITY COUNCIL'S
INTENTION TO NOT RENEW OR EXTEND THE WATER SUPPLY AGREEMENT
BETWEEN THE CITY OF ROUND ROCK AND BRUSHY CREEK MUNICIPAL
UTILITY DISTRICT; PROVIDING A SAVINGS CLAUSE AND REPEALING
CONFLICTING ORDINANCES.
WHEREAS, in 1985 representatives of Williamson County Municipal
Utility District No. 2, now known as Brushy Creek Municipal Utility
District ("BCMUD") approached the City of Round Rock ("City") with a
proposal to amend a then existing water supply agreement between BCMUD
and the City to significantly increase the volume of water which could
be purchased from the City by BCMUD, and
WHEREAS, throughout the resulting negotiations BCMUD represented
that (1) it needed substantial amounts of water to continue its
development, (2) it would actually consume the amounts of water it
needed and (3) it would pay for the water contracted for, thereby
resulting in significant sums of money to the City, and
WHEREAS, BCMUD specifically represented to the City that BCMUD
would consume 690,899,000 gallons in 1991, representing annual
revenues for water usage of $1,122,709, and
WHEREAS, in reliance upon the representations of BCMUD regarding
its need for an expanded water supply, the City entered into that
certain Agreement Between The City of Round Rock and Williamson County
Municipal Utility District No. 2 For the Sale of Potable Water
("Agreement") with BCMUD on October 14, 1986, and
WHEREAS, the Agreement provides that the City shall furnish to
BCMUD such quantities of water as may be required by BCMUD, not to
exceed 3 mgd average nor 9 mgd peak, and
0E211
WHEREAS, partially to provide the water capacity claimed to be
needed by BCMUD, the City issued $7,450,000 in utility system bonds to
expand the City's water treatment and transmission capacity, and
WHEREAS, in spite of its representations and the execution of the
Agreement, BCMUD has continued to develop and expand its own system of
water supply wells, and
WHEREAS, in spite of its usage representations, in fiscal year
1991, BCMUD consumed not 690,899,000 gallons, but only 5,086,000
gallons, resulting in annual revenues of not $1,122,709, but only
$10,199, and
WHEREAS, BCMUD has testified under oath that its present
intentions are to utilize its own wells to the absolute maximum and to
consume City water for only emergency purposes and to meet peak demand
requirements which cannot be supplied by its wells, and
WHEREAS, such usage patterns result in minimal revenues to the
City while putting tremendous peak demands on the City's utility
system, and
WHEREAS, in 1988 the City sought to have the area within the
boundaries of BCMUD included within the City's Certificate of
Convenience and Necessity (CCN) for planning purposes, and
WHEREAS, BCMUD objected to being included within the City's CCN,
and as a result the Texas Water Commission excluded BCMUD from the
CCN, and
WHEREAS, the vast majority of BCMUD is located outside of the
City's extraterritorial jurisdiction (ETJ), and therefore can never be
annexed into the City, and
2.
WHEREAS, BCMUD's pattern of water usage results in a significant
portion of the cost of providing capacity to BCMUD being unfairly
borne by in -City
WHEREAS, it
customers and wholesale customers, and
has been determined by the City Council that it is
not in the best interests of the City of Round Rock, its
taxpayers, ratepayers, and other wholesale water customers
when it expires on October 13, 2006, and
the City desires to afford BCMUD ample notice
the Agreement
WHEREAS,
citizens,
to extend
of this
decision in order to give BCMUD adequate opportunity to contract for
and/or develop an alternate long term supply of water, Now Therefore;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS, THAT
I.
The City Council hereby determines that the extension of the
Agreement Between The City of Round Rock And Williamson County
Municipal Utility District No. 2 For the Sale of Potable Water would
not be in the best interest of the City, and hereby expresses its
intention to not renew or extend said Agreement when it expires on
October 13, 2006.
II.
The City Secretary is hereby directed to provide a certified copy
of this Ordinance to Brushy Creek Municipal Utility District and to
any other person or entity requesting a copy of said Agreement or
making an inquiry as to the City's intention respecting the supply of
water to Brushy Creek Municipal Utility District.
3.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this ordinance
shall not invalidate other sections or provisions thereof.
01)
READ and APPROVED on first reading this the day of
READ, APPROVED and ADOPTED on second reading this the 1th�
day
of 1 �h f , 1991.
ATTEST:
J�%NNE LAND, City Secretary
4.
MIKE ROBINSON, Mayor
City of Round Rock, Texas