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2003-240ORDINANCE NO. 2003 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN ADDENDUM TO CONTRACT BETWEEN THE CITY OF DENTON, UPPER TRINITY REGIONAL WATER DISTRICT AND CITY OF LEWISVILLE CONCERNING REUSE OF WATER FROM COOPER (CHAPMAN) LAKE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR: AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on August 24, 1998 the City of Denton, Texas, Upper Trinity Regional Water District ("UTRWD"), and the City of Lewisville, Texas ("Lewisville") entered into a certain "Contract" in order to enable UTRWD to pass its contracted share of Lake Chapman Water through Lewisville Lake to existing intake structures owned by UTRWD and Lewisville, for subsequent treatment of water treatment plants owned by UTRWD and Lewisville; and WHEREAS, both Denton and Dallas are the existing water right holders in Lake Lewisville; and WHEREAS, since entering into this Contract, UTRWD has formulated a proposed water reuse strategy, which culminated in UTRWD filing an application with the State of Texas for a water rights permit that was based upon the proposed reuse strategy; said application was protested, both by the Cities of Dallas and Denton, as the proposed reuse strategy proposed by UTRWD was objectionable to both cities; and WHEREAS, protracted negotiations ensued, which resulted in UTRWD and the City of Dallas entering into an agreement entitled "Agreement Between City of Dallas and Upper Trinity Regional Water District Regarding Use of Lake Lewisville For Pass-Through of Chapman Lake Water" (the "DallasiUTRWD Agreement'), dated June 19, 2003, which agreement provides for a revision to the UTRWD reuse strategy, and includes specific accounting system requirements for reporting water use, reuse and water purchases by UTRWD from both Denton and Dallas, and said agreement provides for mutual agreement by both Denton and Dallas for approval of the water accounting system; and WHEREAS, Denton, UTRWD and Lewisville desire to execute this Addendum to the existing Contract to incorporate the provisions, terms, understandings, covenants and conditions in the later Dallas/UTRWD Agreement related to both the reuse permit (and its revised contents) and the water accounting system; NOW THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SFCTTON 1. That the above Preamble to this ordinance be, and it is, hereby ratified, confirmed, and incorporated as being the true and correct factual background for this transaction, which recitations are set forth and are included as a part of, and the subject of this ordinance. 1 SF.CTTON ? The City Manager is hereby authorized to execute on behalf of the City, an "Addendum to Contract Between The City of Denton, Upper Trinity Regional Water District, and City of Lewisville - Concerning Reuse of Water From Cooper (Chapman) Lake", a copy of which Addendum is attached hereto and incorporated by reference herein. SECTION 3. The expenditure of funds as set forth in the Agreement is hereby authorized. SF.CTTON 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the NIX day of 12003. Z oIjt- EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY By: ! V' 5:\Our Documents\Ordinances\03\UTRWD Addendum - Ordinance [UTRWD-Lewisville-Denton] 2003.doc ADDENDUM TO CONTRACT BETWEEN CITY OF DENTON UPPER TRINITY REGIONAL WATER DISTRICT AND CITY OF LEWISVILLE CONCERNING REUSE OF WATER FROM COOPER (CHAPMAN) LAKE State of Texas County of Denton This Addendum (the "Addendum") to an existing contract (the "Contract") entitled UPPER TRINITY REGIONAL WATER DISTRICT AGREEMENT WITH CITY OF DENTON AND CITY OF LEWISVILLE CONCERNING WATER FROM COOPER (CHAPMAN) LAKE, dated August 24, 1998 by and between UPPER TRINITY REGIONAL WATER DISTRICT, (the "District"), a conservation and reclamation district created pursuant to Article XVI, Section 59 of the Constitution of the State of Texas, and the CITY OF DENTON ("Denton"), a municipal corporation, and the CITY OF LEWISVILLE ("Lewisville"), a municipal corporation: is made and approved as of the JqM day of 0& , 2003 (the "Date of Addendum"). WHEREAS, Denton, District and City of Lewisville ("Lewisville") entered into the August 24, 1998 Contract Concerning Water From Cooper (Chapman) Lake to enable the District to pass its contracted share of Chapman water through Lewisville Lake to existing intake structures owned by Lewisville and the District for subsequent treatment at water treatment plants owned by the District and Lewisville, respectively: and WHEREAS, said Contract provides in Section 5.0 thereof that: "District agrees to make reasonable efforts to obtain permission from the State of Texas for reuse of water imported into the Trinity River Basin by District from Cooper Lake. Within the framework of this Agreement, Denton and Lewisville will assist the District in development and implementation of a Proposed Reuse Strategy to make full use of District's water from Cooper Lake, avoiding any adverse impact on Denton's water and storage rights in Lewisville Lake. Nothing in this Agreement shall ever be construed as granting to the District any storage rights in Lewisville Lake. Prior to the District making application for such reuse, District shall develop said Proposed Reuse Strategy for approval by the City Manager of Denton and City Manager of Lewisville or their respective designees, which approval will not be unreasonably withheld. Denton and Lewisville agree to cooperate with the District in making and supporting applications to obtain permission for such reuse of water diverted from Cooper Lake, after initially used by the parties and treated and returned to waters of the State of Texas." WHEREAS, after the Contract was approved by the cities of Denton and Lewisville, and the District, the District provided the City of Denton and the City of Dallas (the existing water storage and water right holders within Lewisville Lake) with a Proposed Reuse Strategy that included provisions that were objectionable to both parties; and WHEREAS, the District provided Denton and Lewisville with a Proposed Reuse Strategy for approval by the respective City Manager as provided in the contract; and WHEREAS, after considerable effort, a revised Proposed Reuse Strategy was developed and approved by Lewisville; however, Denton maintained certain objections and did not approve the revised Proposed Reuse Strategy; and WHEREAS, the District thereafter filed an application with the State of Texas for a water rights permit that was based upon the Proposed Reuse Strategy, which application was protested by the City of Denton and the City of Dallas, but which protests indicated that negotiations were under way to resolve the objectionable elements of the District's application; and WHEREAS, the ongoing negotiations between Denton, Dallas and District were successful in resolving the elements of the District's Reuse application that were objectionable to Dallas and Denton; and WHEREAS, the District subsequently entered into a contract with the City of Dallas on the 19th day of June, 2003 entitled AGREEMENT BETWEEN CITY OF DALLAS AND UPPER TRINITY REGIONAL WATER DISTRICT REGARDIING USE OF LAKE LEWISVILLE FOR PASS THROUGH OF CHAPMAN LAKE WATER (the "Dallas/District Agreement" - EXHIBIT I hereto); and WHEREAS, the Dallas/District Agreement outlines specific terms and conditions for the City of Dallas' support of the District's reuse permit application that includes specific accounting system requirements for reporting water use, reuse and water purchases by the District from Denton and Dallas (the existing water rights holders in Lewisville Lake), and includes provisions for mutual agreement by both Dallas and Denton for approval of the water accounting system; and WHEREAS, Denton, Lewisville and the District desire to add this Addendum to the existing Contract to incorporate the provisions, terms and conditions in the Dallas/District Agreement related to the reuse permit and water accounting system. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties agree to supplement the Contract with this Addendum as set forth, to-wit: AGREEMENT Section 1.0 Preamble Incorporated That the matters stated in the Preamble hereof are true and correct and are incorporated into the body of this Addendum as if copied in their entirety. Section 1.1 Scope of Addendum That the provisions of the Contract shall remain in full force and effect as supplemented by this Addendum. Further, Denton, Lewisville and the District agree to add the following provisions to provide for mutual agreement of the revised Reuse Strategy and water rights permit application by the District: a) Acknowledgement and acceptance of the terms and conditions for the District's Reuse Strategy for Chapman Lake Water as outlined in the Dallas/District Agreement. b) The District hereby agrees to revise their water rights permit application with the State of Texas to comply with the terms and conditions outlined within the Dallas/District Agreement and this Addendum. c) City of Denton hereby agrees to withdraw its protest of the District's water rights permit application contingent upon a review by Denton of the District's proposed revised water rights permit application and consistency with the terms and conditions outlined in the Dallas/District Agreement and this Contract Addendum. Section 1.2 Term of Addendum This Addendum shall be effective on and from the Date of Addendum. The Addendum shall continue for the Primary Term of the Contract and for any renewals thereof. IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this Addendum to be duly executed in several counterparts, each of which shall constitute an original, all as of the day and year first above written, which is the Date of Addendum. UPPER TRINITY REGIONAL WATER DISTRICT Y/t G, ~2 D E ecutive Director CITY OF DENTON 7M7, ,0/ City Manager CITY OF LEWISVILLE Manager