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HomeMy WebLinkAboutResolution - 909 - Request Assistance - BRA - Developing 3Rd Major Water Supply Source - 09_10_1981RESOLUTION #909 - 9/10/81 JCR:cl RESOLUTION EXPRESSING the desire of the City Council of the City of Lubbock to solicit the assistance of the Brazos River Authority in the development of a third major water supply for the City of Lubbock, and WHEREAS, the City Council of the City of Lubbock, Texas, is desirous of developing a third major water source for the City of Lubbock, and WHEREAS, the City Council finds that the development of a third water source for the City of Lubbock is in the best interest of the citizens of the City of Lubbock, and WHEREAS, one of the major sources of supply for a new third water source for the City of Lubbock involves a tributary of the Brazos River, and WHEREAS, the Brazos River Authority has gained over the years a consid- erable amount of professional expertise in the development and managing water supply sources, and WHEREAS, the City Council is desirous of availing itself of the assistan of the Brazos River Authority, NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock does hereby officially request the assistance of the Brazos River Authority in developing a third major water supply source for the City of Lubbock, Texas. Passed by the City Council this loth_ day of , 1981. f ' B 4McALI�S�TE'R*,MAYOR _ATTEST: - Evelyn -Ga ga, 6ity 9ec y-Treasurer APPROVED AS TO FORM: 7 C. Ross, Jr., City Attorney ORAZOS RIDER AUTHORITY l j ( •' 4400 COBBS DRIVE P. O. BOX 7555 TELEPHONE AREA CODE 817 776.1441 WACO. TEXAS - 76710 November 17, 1981 City of Lubbock City Hall 916 Texas Avenue Lubbock, Texas 79457 Gentlemen: This is a proposal by Brazos River Authority to the City of Lubbock in regard to the effect of the proposed Justiceburg Reservoir on the dependable yield of Possum Kingdom Lake, compensation therefor, and the Authority's support of the City's application for a permit from the Texas Water Commission to construct, operate, impound in and make diversions from the Reservoir proposed at Justiceburg. Subject to your acceptance of this proposal by signature of an authorized party, Brazos River Authority agrees as follows: (a) The effect of construction and operation of the proposed Justiceburg Reservoir upon the dependable yield of Possum Kingdom Lake will be a reduction of 961 acre-feet per year, as estimated by your engi- neers, Freese and Nichols. (b) The Authority will accept as financial compensation for the decrease in the dependable yield of Possum Kingdom Lake the amount of $20.00 per acre-foot per year, or $19,120.00 per year, adjusted as provided in Paragraph (c), below. (c) On or before January 15 of the sixth full year during which the Justiceburg Reservoir project is operational on January 1 and on any multiple of the fifth year anniversary of January 15 of such sixth year, Author- ity may, if it shall elect to do so, adjust the an- nual payment provided hereunder to be made by City to Authority according to the following formula: City of Lubbock - cont'd. November 17, 1981 Page 2 Let a = the total annual payment ($19,120.00); Let x = the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W, 1967 equals 100) published by the Bureau of Labor Statistics of the United States Department of Labor (hereinafter re- ferred to as "Index") for the month of September immediately preceding the first year during which the project was operational on January 1; Let y = Index for the month of September immedi- ately preceding the year in which the adjustment is to be made on January 15; Then the adjusted payment shall equal 0.8a + (y/x times 0.2a). Should Index cease to be published, the parties shall select another Index which, among the incides then available for such purposes, most nearly re- sembles Index for the purpose of making the ad- justment provided in the preceding sentence. (d) The annual payments required to be made under this letter agreement shall begin on February 1 of the year following the year in which the Justiceburg Reservoir becomes operational, and an annual pay- ment shall be due on or before February 1 of each year thereafter for as long as the Justiceburg Reservoir and Possum Kingdom Lake continue to be operational for water supply purposes. All pay- ments shall be due and payable at Waco, McLennan County, Texas. (e) City shall furnish to Authority a written opinion from City's attorney respecting the City's power to make this agreement and the validity of the proceedings for its authorization. (f) In consideration of agreement by the City to make the payments to Authority required herein, Author- ity agrees that despite the priority in time of its permit for impounding water in and diverting it from Possum Kingdom Lake over the permit to be granted to City in connection with the Justiceburg Reservoir, the City may make diversions from Justiceburg Reservoir in accordance with yields estimated by your engineers, Freese and Nichols, without regard to the effect of such diversions on Possum Kingdom Lake. City of Lubbock - cont'd. November 17, 1981 Page 3 (g) Authority further agrees to support the pending ap- plication of City for a permit from the Texas Water Commission authorizing it to construct Justiceburg Reservoir to impound water therein and to make diver- sions therefrom. VerZIuyn7urs, CARSON H. HOGE General Manager CHH:gls ACCEPTED this day of _OL°1.��-(y 19 If/ By LARRY J. CUNNINGHAM CITY MANAGER Mr. Carson H. Hoge General Manager Brazos River Authority 4400 Cobbs Drive P.O. Box 7555 Waco, Texas 76710 Dear Carson: CITY OF LUBBOCK LUBBOCK, TEXAS November 24, 1981 On November 19, 1981, 1 reviewed with the Lubbock City Council the Letter of Understanding that the Brazos River Authority submitted to the City of Lubbock dated November 17 regarding the effect of the proposed Justiceburg Reservoir on the dependable yield of Possum Kingdom Lake, The City Council has authorized me to accept this Letter of Understanding and I have signed this letter and have enclosed it. In paragraph (e) of the Letter of Understanding, the City of Lubbock was asked to furnish a written opinion from the City's Attorney regarding the power to make this agreement. I have also enclosed an opinion given to me by the Lubbock City Attorney, Mr. John C. Ross, Jr. As I had mentioned to you by telephone, at a later date, we need to have a more formal agreement between the City of Lubbock and Brazos River Authority which incorporates all of the items in the enclosed Letter of Understanding that you and I are executing. As we discussed, it may be that we could incorporate this into an agreement covering many other points where the City and BRA will be working together. However, we can decide on which approach we want to take a little later on. At this time, however, the City Council has authorized, as I mentioned above, me to accept this Letter of Understanding and we will formalize the same matters in a contractual form whenever it is desired or needed. Mr. Carson H. Hoge November 24, 1981 Page 2 Thank you for helping us come to an equitable solution to the matter of yield loss of the Possum Kingdom Lake. Sincerely, Larry J. Cunningham LJC:vg enclosures xc: Lubbock City'Council N BRAZOS RIVER AUTHORITY I100 COBBS DRIVE P. O. BOX 7555 TELEPHONE AREA CODE 817 776.1441 WACO. . TEXAS • 7671 0 November 17, 1981 City of Lubbock City Hall 916 Texas Avenue Lubbock, Texas 79457 Gentlemen: This is a proposal by Brazos River Authority to the City of Lubbock in regard to the effect.of the proposed Justiceburg Reservoir on the dependable yield of Possum Kingdom Lake, compensation therefor, and the Authority's support of the City's application for a permit from the Texas Water Commission to construct, operate, impound in and make diversions from the Reservoir proposed at Justiceburg. Subject to your acceptance of this proposal by signature of an authorized party, Brazos River Authority agrees as follows: (a) The effect of construction and operation of the proposed Justiceburg Reservoir upon the dependable yield of Possum Kingdom Lake will be a reduction of 961 acre-feet per year, as estimated by your engi- neers, Freese and Nichols. (b) The Authority will accept as financial compensation for the decrease in the dependable yield of Possum Kingdom Lake the amount of $20.00 per acre-foot per year, or $19,120.00 per year, adjusted as provided in Paragraph (c), below. (c) On or before January 15 of the sixth full year during which the Justiceburg Reservoir project is operational on January 1 and on any multiple of the fifth year anniversary of January 15 of such sixth year, Author- ity may, if it shall elect to do so, adjust the an- nual payment provided hereunder to be made by City to Authority according to the following formula: City of Lubbock - cont'd. November 17, 1981 Page 2 Let a = the total annual payment ($19,120.00); Let x = the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W, 1967 equals 100) published by the Bureau of Labor Statistics of the United States Department of Labor (hereinafter re- ferred to as "Index") for the month of September immediately preceding the first year during which the project was operational on January 1; Let y = Index for the month of September immedi- ately preceding the year in which the adjustment is to be made on January 15; Then the adjusted payment shall equal 0.8a + (y/x times 0.2a). Should Index cease to be published, the parties shall select another Index which, among the incides then available for such purposes, most nearly re- sembles Index for the purpose of making the ad- justment provided in the preceding sentence. (d) The annual payments required to be made under this letter agreement shall begin on February 1 of the year following the year in which the Justiceburg Reservoir becomes operational, and an annual pay- ment shall be due on or before February 1 of each year thereafter for as long as the Justiceburg Reservoir and Possum Kingdom Lake continue to be operational for water supply purposes. All pay- ments shall be due and payable at Waco, McLennan County, Texas. (e) City shall furnish to Authority a written opinion from City's attorney respecting the City's power to make this agreement and the validity of the proceedings for its authorization. (f) In consideration of agreement by the City to make the payments to Authority required herein, Author- ity agrees that despite the priority in time of its permit for impounding water in and diverting it from Possum Kingdom Lake over the permit to be granted to City in connection with the Justiceburg Reservoir, the City may make diversions from Justiceburg Reservoir in accordance with yields estimated by your engineers, Freese and Nichols, without regard to the effect of such diversions on Possum Kingdom Lake. City of Lubbock - cont'd. November 17, 1981 Page 3 (g) Authority further agrees to support the pending ap- plication of City for a permit from the Texas Water Commission authorizing it to construct Justiceburg Reservoir to impound water therein and to make diver- sions therefrom. Ver truly yours, CARSON H. HOGE V General Manager CHH:gls a ACCEPTED this 1%d day of , 190�. By City Manager City of Lubbock CITY OF LUBBOCK LEGAL OPINION TO: Larry Cunningham, City Manager' FROM: John C. Ross, Jr., City Attorney SUBJECT: City's authority to enter into water agreement with Brazos River Authority DATE: November 20, 1981 You have asked whether or not the City of Lubbock would have legal authority to enter into an agreement with the Brazos River Authority to re- imburse them for 961 acre feet of water per year which is the acreage esti- mated by our engineers that would be lost to the Brazos River Authority as a result of the construction of the Justiceburg facility. In my opinion, the City clearly has the authority to enter into this type of agreement with the Brazos River Authority. The following citations clearly provide the authority for this type of agreement: 1. Article II, §10 - Charter of the City of Lubbock Section 10. Said City shall have the power to buy, own or con- struct, and to maintain and operate within or without the City limits, complete water system or systems, gas or electric lighting power plant or power plants, telephone or telegraph systems, street railways, sewer systems, sewage plants, fertilizing plants, abattoirs, municipal railway terminals, or any other public service utility, and to demand and receive compensation.for services furnished by the City for private purposes or otherwise, and to have the power to regulate, by ordinance, the collection of compensation for such services. Said City shall have'the power to acquire by lease, purchase or condemnation, the property of any person, firm or cor- poration now or hereafter conducting such business, for the purpose of operating such public utility or utilities and for the purpose of distributing such service within or without the City, or any portion thereof. 2. Article 1175 - V.A.C.S. Cities adopting the charter or amendment hereunder shall have full power of local self-government, and among the other powers that may be exercised by any such city the following are hereby enumerated for greater certainty: 11. To have the exclusive right to own, erect, maintain and operate water works and water works system for the use of any city, and its inhabitants, to regulate the same and have power to prescribe rates for water furnished and to acquire by purchase, donation or other- wise, suitable grounds within and without the limits of the city on which to erect any such works and the necessary right of way, and to do and perform whatsoever may be necessary to operate and maintain the said water works or water works system and to compel the owners of all property and the agents of such owners or persons in control thereof to pay all charges for water furnished upon such property and to fix a lien upon such property for any such charges. To provide that all receipts from the water works may, in its dis- cretion, constitute a separate or sacred fund which shall be used for no other purpose than the extension, improvement, operation, maintenance, repair and betterment of said water works system or water works supply, and to provide for the pledging of any such receipts and revenues for the purpose of making any of such im- provements, and the payment of the principal and providing an in- terest and sinking fund for any bonds issued therefor under such regulations as may be provided by the charter adopted by such city. 3. Article 4413(32c) - V.A.C.S. Section 5. (a) Any city, town, district, or river authority within the state may enter into a contract with any other city, town, dis- trict, or river authority created under the constitution and laws of this state for the purpose of obtaining or providing water supply or waste water treatment facilities or any interest therein. Any city, town, district, or river authority may also enter into a contract, with any other city, town, district, or river authority for the leasing or operation of water supply facilities or waste treatment facilities or any interest therein. (b) Any contract authorized by this section may provide that the city, town, district, or river authority obtaining one of the ser- vices may not obtain these same services from any other source other than the city, town, district, or river authority with which it con- tracted except to the extent provided in the contract. If any such contract so provides, payments made thereunder shall be operating expenses of the contracting party's water supply system or waste water treatment facilities, or both, as the case may be. Section 7. The provisions of this Act shall be cumulative of all other laws or parts of laws, general or special. In my opinion the aforementioned provision of the charter of the City of Lubbock and the two foregoing state statutes cited above provide ample authority to the City of Lubbock for entering into the Memorandum Agreement between the City of Lubbock and the Brazos River Authority, concerning the purchase of 961 acre feet of water per year as mentioned in said Memorandum Agreement. Please let me know if you have any further inquiries in regard to the foregoing subject. n C. Ross, Jr. JCR: js