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HomeMy WebLinkAboutItem 13 - Water Supply AgreementITEM MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER X MEETING DATE: MARCH 6, 2001 SUBJECT: RESOLUTION WATER SUPPLY AGREEMENT WITH DALLAS COUNTY PARK CITIES MUNICIPAL UTILITY DISTRICT RECOMMENDATION: City Council consider approving a Resolution to amend an existing Contract with Dallas County Park Cities Municipal Utility District, authorize City Staff to execute the necessary documents, and take any necessary action. FUNDING SOURCE: Funds will be programmed annually in Account # 200-44598-530-2. BACKGROUND: The Grapevine City Council approved a water purchase contract with Dallas County Park Cities Municipal Utilities District (DCPCMUD) on September 17' 2001. The supply contract provides for the purchase of raw water equal to the amount discharged by the City of Grapevine Peach Street Wastewater Treatment Plant up to a maximum of 4 Million Gallons per Day. The cost of the water is to be $0.20 per thousand gallons. The contract addresses existing and future water needs of the City. The projected ultimate average -day demand for Grapevine is 14.6 mgd, excluding golf course irrigation. Grapevine will soon have two 18 hole and one 27 hole golf courses for a total of 63 holes. Although demands are higher in the summer, the average -day demand for golf course irrigation is expected to be about 1.5 mgd. Grapevine's current projected ultimate needs total 16.1 mgd ( 14.6 mgd for municipal use and 1.5 mgd for the golf courses). This contract allows for the additional water needed to meet these demands. Each Golf Course will pay for the water they utilize for irrigation and other purposes. Dallas Water Utilities protested the water supply contract and the Resolution addresses their concerns. Return flows purchased by Grapevine shall be accounted for as inflows into the DCPCMUD's storage account and water sold pursuant to this agreement shall be charged to the DCPCMUD's storage account. Staff recommends approval of the Resolution to amend the water supply contract. MS/ms February 28, 2001 (4:37PM) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, TO RATIFY TEXAS NATURAL RESOURCE CONSERVATION COMMISSION'S EXECUTIVE DIRECTOR'S MODIFICATION TO WATER SUPPLY AGREEMENT BETWEEN THE CITY OF GRAPEVINE, TEXAS AND DALLAS COUNTY PARK CITIES MUNICIPAL UTILITY DISTRICT AND PROVIDING AN EFFECTIVE DATE WHEREAS, the Texas Natural Resource Conservation Commission (TNRCC) has amended the water rights of the City of Dallas, City of Grapevine and Dallas County Park Cities Municipal Utility District (DCPCMUD) to require an accounting of water stored in and used in Lake Grapevine; and WHEREAS, the accounting system recognized DCPCMUD's senior right to store and use inflows into the reservoir, including return flows discharged by the City of Grapevine; and WHEREAS, DCPCMUD and the City of Grapevine have reached a settlement agreement that ends existing controversies concerning the right to use water from Lake Grapevine; and WHEREAS, an integral part of the settlement involves DCPCMUD's sale of its right to the City of Grapevine's return flow discharges to the City of Grapevine; and WHEREAS, the DCPCMUD and the City of Grapevine entered into a water supply agreement on September 19, 2000, whereby the DCPCMUD agreed to sell its rights to the City of Grapevine's return flow discharges to the City of Grapevine; and WHEREAS, the Water Supply Agreement between the City of Grapevine and the DCPCMUD was approved the TNRCC on December 21, 2000, subject to the condition that Section 3.6 of the Water Supply Agreement be amended in accordance with the Executive Director's directives. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. The City Council of the City of Grapevine, Texas approves and ratifies the changes to the Water Supply Agreement as made by the Executive Director of the TNRCC. Section 2. The return flows purchased by the City of Grapevine under the Water Supply Agreement will be accounted for as inflows into the DCPCMUD storage account and water diverted under the Water Supply Agreement will be charged to the DCPCMUD use account. Section 3. The Mayor of the City of Grapevine, Texas is authorized to take such other further steps as may be necessary to implement the Water Supply Agreement. Section 4. That all matters stated in the preamble are true and correct as if copied herein in their entirety. Section 5. That the Mayor of the City of Grapevine, Texas or his designee, is hereby authorized to conduct and direct legal activities on behalf of the City of Grapevine. Section 6. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 6th day of March, 2001. ATTEST: RES. NO. 2