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15-R-19 - MOU with City of Cibolo, Keli Heights SubdivisionRESOLUTION NO. 15 -R -19 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A MEMORANDUM OF UNDERSTANDING WITH THE CITY OF CIBOLO RELATING TO THE KELI HEIGHTS SUBDIVISION, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City ") has recommended that the City enter into a memorandum of understanding with the City of Cibolo relating to the yearly transfer of 350 acre feet of treated and delivered water to the City of Cibolo from the City of Schertz for the Keli Heights Subdivision; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with the City of Cibolo pursuant to the Memorandum of Understanding attached hereto as Exhibit A (the "Agreement "). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Memorandum of Understanding with the City of Cibolo in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 3rd day of March, 2015. CITY OF SCHERTZ, TEXAS Cedric Edwards, Mayor Pro -Tem ATTEST: r a nnis, City Secretary (CITY SEAL) EXHIBIT A MEMORANDUM OF UNDERSTANDING FEW COPY MEMORANDUM OF UNDERSTANDING FOR WHOLESALE WATER PURCHASE This Memorandum of Understanding is between the City of Schertz ( "the Service Provider ") and the City of Cibolo ( "the Purchaser "). Recitals The Purchaser desires to obtain potable water from Service Provider in order for Purchaser to provide retail water utility service within the Keli Heights Subdivision as outlined in Exhibit "A" (the "Service Area") in a volume, rate of delivery, and pressure to enable the Purchaser to serve the present customers of the Service Area's system and the estimated number of water users to be served by the Purchaser. The Service Provider Agrees: 1. The Service Provider will furnish the Purchaser, at the agreed point of delivery, potable treated Edwards Aquifer and/or Carrizo- Wilcox Aquifer water meeting the applicable standards of the Texas Commission on Environmental Quality ( "TCEQ ") in such quantity as may be required by the Purchaser not to exceed 350 acre -feet per year at a volumetric rate of $2.27 per thousand gallons. A meter as determined by the Purchaser rated for size based on build -out of the development will be installed at the Purchaser's cost. A base rate will be assessed for usage based on LUE's served per month. As the development grows, the base rate will increase as the number of LUEs increase based on the meter size. 2. Water pressure will be furnished at a reasonably constant pressure at the agreed point of delivery to the Purchaser. If greater pressure than that normally available at the agreed point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Service Provider from this provision for such reasonable period of time as may be necessary to restore service. 3. The Service Provider will recommend and approve the necessary equipment and required devices of standard type for measuring the quantity of water delivered to the Purchaser by means of a wholesale master meter owned and maintained by the Purchaser as well as any other related back flow prevention devices as required at meter. 4. The Service Provider will read the meter once a month and provide an invoice to the Purchaser. The Purchaser Agrees: 1. The Purchaser will purchase the wholesale meter, pay for any applicable tap, and meter set fees as well as maintain, repair and test the master meter annually. 2. The Purchaser will pay to the Service Provider by the determined due date each month for water delivered through the master meter in accordance with the established rate schedules in effect at the time of billing. 3. The Purchaser will provide meters at its cost within the development, in accordance with the Purchaser's Utility Fee schedule, to each individual customer and monitor the accuracy of these meters. 4. The Purchaser will maintain the meters within the development and lines in its service area at its cost. 5. The Purchaser will read the master meter on a daily basis and provide these readings the Service Provider at the end of each month, no later than the 5th day of the following month. The Purchaser will install an acceptable RPZ backflow assembly at the master meter and will provide proof that the assembly is tested on an annual basis. The Purchaser is responsible for notifying the Service Provider the number of connections and meter sizes each month for the development to properly determine base rate. It is Further Agreed Between the Service Provider and Purchaser as Follows: 1. The allocation of Operating and Maintenance costs for the water system shall be determined and agreed upon in a separate agreement to be signed by the Purchaser and the Service Provider when service is requested. 2. Each of the Parties agrees that it shall be responsible for the maintenance of the infrastructure which is owned by that Party. For the purpose of this Memorandum of Understanding, infrastructure is defined as all water lines, wells, towers, treatment facility and related items. Temporary or partial failures to deliver water shall be remedied with all reasonable dispatch. In the event of an extended shortage of water by the Service Provider, the supply of water to the Purchaser's customers shall be reduced or diminished in the same ratio or proportion as the supply to the Service Provider's consumers is reduced or diminished. In the event for any reason the Service Provider may become unable to supply water to the Purchaser for the prevention or suppression of fire, the Service Provider will in no manner be liable for damages by reason of any such failure to the Purchaser, any patrons of the Purchaser, or to any person or persons whose property may have been destroyed by fire, or otherwise damaged. 3. Planned trunk line extensions and the area to be served by the Purchaser must be approved by the Service Provider so as to insure a reservation of water supply for the Purchaser. When an expansion is approved, that development is entitled to be fully built and no further approvals from the Service Provider are required. 4. This Memorandum of Understanding shall be in effect from and after its adoption by the final authorizing resolution by each of the Parties. 5. This Memorandum of Understanding will be replaced by an Interlocal Agreement prior to connection. Service Provider shall be under no obligation to provide water to the Purchaser unless and until and Interlocal Agreement is approved. City of Cibolo QU--� L.. Rvu Robert T. Herrera, City Manager City of Schertz )t� - John &,kessel, pity Nlanager Attachment: Exhibit "X'— Map of Service Area Date 3 125 � IS Date J rY N- N- rt I