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RES 1527 01/26/2016 P,Ou,T Illi,`�''.�0 g. L ,i` 7' ext, s "City of Choice" RESOLUTION NO. 15 27 A RESOLUTION OF THE CITY COUNCIL OF CIBOLO, TEXAS, APPROVING THE MUTUAL TERMINATION OF A WATER PURCHASE CONTRACT WITH BEXAR METROPOLITAN WATER DISTRICT AND A PARTIAL SHORT-TERM ASSIGNMENT OF INTEREST IN WATER ALLOCATION AGREEMENT WITH SPRINGS HILL WATER SUPPLY CORPORATION, AND RATIFYING THE CITY MANAGER'S EXECUTION OF SAID AGREEMENTS WHEREAS, the City of Cibolo and Berar Metropolitan Water District ("BexarMet") were parties to that one certain Regional Tax-Exempt Water Supply Contract dated August 1, 1998, with Canyon Regional Water Authority "CRWA") and others, as amended, for the purchase by each participating party of an allocation of treated potable water from CRWA; and WHEREAS, BexarMet and Cibolo entered into that certain Water Purchase Contract Between Bexar Metropolitan Water District and City of Cibolo Approved by Canyon Regional Water Authority("Contract") effective April 6, 2005,which was approved by CRWA; and WHEREAS, pursuant to the Contract, BexarMet agreed to furnish, and Cibolo agreed to purchase, a portion of BexarMet's allotment of treated potable water in the amounts and on the terms described in the Contract; and WHEREAS, the governing bodies of San Antonio Water System, as successor in interest to BexarMet, and CRWA have approved the termination of the aforementioned agreement and a Short Term Assignment of Interest Agreement with Springs Hill Water Supply Corporation. NOW, THEREFORE BE IT RESOLVED by the CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS,THAT: SECTION 1. The Mutual Termination Water Purchase Contract between Bexar Metropolitan Water District and City of Cibolo as approved by Canyon Regional Water Authority, as attached hereto as Exhibit"A" is hereby approved. 9 SECTION 2. The Partial Short-Term Assignment of Interest in Water Allocation Agreement by and between San Antonio Water System, as successor in interest to the Bexar Metropolitan Water District, Springs Hill Water Supply Corporation, Canyon Regional Water Authority and the City of Cibolo, as approved by the Guadalupe-Blanco River Authority, as attached hereto as Exhibit "B" is hereby approved. SECTION 3. The City Manager's execution of the aforementioned Mutual Termination Water Purchase Contract and Partial Short-Term Assignment of Interest in Water Allocation Agreement on INSERT DATE, is hereby ratified. SECTION 4. This resolution shall be in full force and effect from and after its final adoption. APPROVED AND ADOPTED on this the 26th day of January,2015. , Mayor Attest: X77 Peggy Cimics, City Secretary , EXHIBIT"A" MUTUAL TERMINATION WATER PURCHASE CONTRACT WATER PURCHASE CONTRACT BETWEEN-BEXAR METROPOLITAN-WATERDISTRICT AND GITY-OF-CIBOLO EXECUTED IN 4 (FOUR) DUPLICATE ORIGINALS N OF4 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIB OLO Approved by CANYON REGIONAL WATER AUTHORITY (with attached Exhibit A) 1 WATER PURCHASE CONTRACT - - BETWEEN BEXAR METROPOLITAN WATERDISTRICTAND CITY OF CIBOLO TABLE OF CONTENTS ARTICLE I. RECITALS .4-6 ARTICLE II. CONTRACT TERMS AND CONDITIONS 1 Term 6 2. Annual Commitment 6 3. Additional Water .7 4. Payment Terms 7 5. Points of Delivery 8 6. Title to and Responsibility for Water - 8 7. Commitment for Delivery Completion 8 8. Purpose of Use 9 9. Obligations of BEXAR MET • 9 10. Obligations of CITY OF CIBOLO 9 11. Metering and Reporting .9-10 12. Conservation 10 13. Approvals and Modification of Contract 10 14. Other Contracts 10-11 15. Mortgage of Contract 11 16. Assignment 11 17. Captions 11 2 WATER PURCHASE CONTRACT BETWEEN BEXAR-METROPOLITAN WATER-DISTRICT AND-CITY OF CIBOLO 18. Termination 11-12 19. Remedies .12 20. Notices 12 21. Severability 13 22. Indemnification 13 23. Venue ..15 24. Entire Water Purchase Contract 15 25. App1",' w 15 26. —i parts 15 27. flttachments 15 -2-8. P - - - - - - - - - - --- - -- 15 --- - - Signature Pages 16 Exhibit A-Delivery Point 17 3 WATER PURCHASE CONTRACT -BETWEEN-BEXAR METROPOLITAN-WATER DISTRICT AND CITY OF CIBOLO WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO Approved by CANYON REGIONAL WATER AUTHORITY (with attached Exhibit A) This Medium-Term Water Purchase Contract("the Contract") is entered into as of the date reflected on the signature page. BEXAR METROPOLITAN WATER DISTRICT ("BEXAR MET") and THE CITY OF CIBOLO ("CITY") are collectively identified as the "Parties". Canyon Regional Water Authority approved this medium term water purchase contract on the day of , 2009. WITNESSETH ARTICLE I. RECITALS WHEREAS,BEXAR MET is a governmental agency of the State of Texas, a water conservation district, a body politic and corporate, a municipal corporation, which was created and operates pursuant to Article XVI, Section 59 of the Constitution,Texas Revised Civil Statues,Article 8280-126, as amended, and the applicable general laws of the State of Texas; and WHEREAS,The CITY OF CIBOLO, is a duly incorporated home rule city created and validly existing under applicable general laws of the State of Texas with all inherent powers and authority to enter into this contract; and 4 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND-CITY OF CIBOLO WHEREAS,both Parties are authorized and empowered by applicable law, including the Interlocal Cooperation Act, Tex. Gov't Code, ch. 791,to enter into this Contract as a mutually beneficial and binding legal obligation of the Parties; and WHEREAS,both BEXARMET and CITY are among the "Participating Members" in a Regional Water Supply Contract between Canyon Regional Water Authority ("CRWA") dated December 10, 1992,for the purchase by each Participating Member of an allocation of treated water from CRWA. Pursuant to the 1992 Regional Water Supply Contract, BEXAR MET has obtained prior approval from the Board of CRWA to provide for the temporary sale of BexarMet's allocation of 500 acre feet to CITY; and WHEREAS,BexarMet and CITY recognize that the intent of this Contract is for BEXAR MET to supply to CITY a certain amount of treated potable water, which supply of treated potable water, by and through CRWA, will be delivered by BEXAR MET to CITY for ultimate distribution to CITY retail customers; and WHEREAS,BEXAR MET and CITY enter into this Contract to further the public purposes for which the Parties were created and operate, and WHEREAS, the treated water provided pursuant to this Contract is not required for the retail use of the Seller, BEXAR MET for the nine (9) years duration of the Term of this Contract, and, in order to accomplish the above delivery of treated potable water, BEXAR MET is willing to sell to CITY its Annual Commitment of treated potable water from CRWA, for the term of this Contract on a firm basis, supplied to CITY at a point of delivery as reflected on Exhibit A, attached hereto; and WHEREAS,the Parties further recognize and agree that the source for the supply of water hereunder is CRWA-treated state surface water sold to CRWA by the Guadalupe-Blanco River Authority pursuant to contract, and 5 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO WHEREAS, the Parties further acknowledge that any water rights involving the sale of state surface water are subject to all applicable sections of the Texas Water Code, particularly, Chapter 11, Subchapter B, Section 11.036 (b). NOW,THEREFORE,for and in consideration of the mutual promises, obligations, and benefits set forth, the receipt and legal sufficiency of which are acknowledged, the Parties agree as set forth below. ARTICLE II. CONTRACTS TERMS AND CONDITIONS .1. Term. 1.1 This Contract shall be for a nine(9) year term, commencing on the Effective date and shall terminate on the last day of the one hundred eighth (108th) month of this Contract, unless it is terminated earlier pursuant to the provisions hereof. This Contract may be renewed at the option of both Parties and upon the mutual approval of both parties as to the renewal terms, provided however,that notice of intent to exercise the option must be provided not later than October 31st of the year prior to the expiration of this Contract(i.e., 2018). The Parties further hereby acknowledge and agree that entering into and performance under the term of this Contract constitute valuable and legally binding consideration for the exercise of the option to extend the Contract for a term of years to be agreed to by the parties at a later date. 2. Annual Commitment. 2.1 BEXARMET shall furnish and deliver at the Point of Delivery, as defined specifically in attached Exhibit A, during the term of this Contract, a firm supply of treated potable water in the amount of five hundred (500) acre feet annually (the "Annual Commitment"), supplied in a quantity not to exceed four hundred forty six thousand three hundred and seventy one (446,371) gallons per day. 6 WATER PURCHASE CONTRACT - -BETWEEN BEXAR METROPOLITAN WATER-DISTRICT AND-CITY OF CIBOLO 2.2 The"Annual Commitment" shall mean the quantity of potable water to be taken or paid for, whether taken or not, on-an annual basis to commence on the date the treated potable water by BEXARMET is actually available, as identified in section 7.1 of this Contract as the Availability Date, and continuing throughout the term of this Contract. 3. Additional Water. 3.1 BEXARMET may provide Additional Water, over and above the required Annual Commitment, at the actual cost charged to BEXARMET by CRWA,to the extent available for delivery from time to time, unless otherwise subsequently agreed by the parties. 3.2 BEXARMET shall coordinate with CRWA to arrange for the invoicing of CITY Additional Water only after BEXARMET has delivered water in excess of the Annual Commitment, as set forth in Section 2. 4 Payment Terms. 4.1 Monthly payments shall begin with the initial delivery of treated potable water (i.e., on the Availability Date) to the Point of Delivery as defined in Exhibit A, or as agreed to by the Parties. 4.2 CRWA, on behalf of BEXARMET, agrees to invoice CITY directly, on a monthly basis for the water delivered to CITY each month pursuant to this Contract, subject to the terms of section 4.3 below. CITY shall remit payment to CRWA, at the CRWA offices whose mailing address is 850 Lakeside Pass, New Braunfels,Texas 78130-8233, no later than the 10th working day following the date of said monthly invoice. 4.3 BEXARMET, through CRWA, agrees to deliver and CITY agrees to pay a minimum of one-twelfth (1/12) the Annual Commitment each month, whether actually taken or not. 7 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY-OF_CIBOLO 5.Points of Delivery. 5.1 All treated potable water supplied by BEXARMET under this Contract shall be delivered to CITY at the Point of Delivery, as defined specifically at Exhibit A. 6. Title to and Responsibility for Water. 6.1 Title to and responsibility for all water delivered under this Contract shall be in CRWA and/or BEXARMET to the Point of Delivery at which point title to and responsibility for said water shall pass CITY. CITY shall be responsible for all wastewater disposal and shall be entitled to rights for re-use for continued use. 6.2 The Parties hereby agree to save and hold each other harmless from all claims, demands, and causes of action which may be asserted by anyone on account of the transportation, delivery, processing and handling of said water while title to and responsibility for the water remains in that respective Party. 7. Commitment for Delivery Completion. BEXARMET recognizes CITY's requirement for treated potable water to be delivered by CRWA for the benefit of meeting the needs of CITY's customers and CITY's duty to provide adequate and continuous service within its CCN. In consideration of these requirements, BEXARMET is willing to commit to deliver a daily firm supply of four hundred forty six thousand three hundred and seventy one (446,371) gallons per day of treated potable water in such quantity as required by this Contract to meet the Annual Commitment not later than 30 days after execution of this Contract, or at another date to be mutually established (the "Availability Date"). CRWA's testing and sanitary approval shall occur in the regular course of business in connection with daily delivery of treated potable water. 8 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN-WATER-DISTRICT AND CITY OF-CIBOLO 8. Purpose of Use. 8.1 All potable water supplied under this Contract by BEXARMET to CITY OF CIBOLO may be used for any lawful purpose. 9. Obligations of BEXAR MET. 9.1 BEXARMET shall cause to be delivered treated potable water to CITY in required daily quantities and CRWA shall measure on a daily basis same at the Point of Delivery, as provided in this Contract, or as the parties may otherwise subsequently agree in writing. 9.2 BEXARMET shall, as a CRWA contracting party, continue to maintain its obligation to CRWA regarding the payment for treatment and distribution facilities. 9.3 CRWA shall maintain, at the point of delivery the minimum disinfectant residual and pressure to meet the standards of TCEQ. 10. Obligations of City. 10.1 CITY agrees to make payments in accordance with Section 4 of this Contract and accept delivery as provided in Section 5. 11. Meter and Reporting. 11.1 All measuring devices shall be subject, at all reasonable times, to inspection, examination and testing by BEXAR MET and CITY, and shall be within 5% or less variation upon testing. Routine testing shall be accomplished annually unless either Party desires a more frequent interval. Any measuring device which fails to function [within 5% +1-tolerance] or which otherwise functions incorrectly, shall promptly be adjusted, repaired or replaced by CRWA with a device performing with the required accuracy. 9 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND.CITY.OF CIBOLO 11.2 BEXARMET and CITY shall have the right to inspect the accurate daily measure of treated potable water delivered. CRWA will inspect and maintain the water meters, and will record and provide BEXARMET with a copy of the invoice sent to CITY for metered water delivery. The Parties do hereby agree to one joint metering location between BEXARMET and CITY, with concurrence of CRWA. Because of regulatory requirements, each party maintain cumulative records of all potable water delivered. 11.3 BEXARMET, through CRWA or separately, shall furnish CITY on the first day of each month a monthly cumulative tabulation indicating the total amount of treated potable water delivered by BEXARMET during the previous month. 12. Conservation. 12.1 It is the intent of the Parties to provide, to the maximum extent practicable, for water efficiency and conservation of potable water. CITY and BEXARMET each agree that it will operate and maintain its system facilities in a manner that will minimize unaccounted for water, ensure conservation, prevent waste and ensure beneficial use. 12.2 CITY agrees to implement a water conservation and drought management program, applicable to the use of delivered potable water as required by applicable law or regulation, or by any requirements imposed on BEXAR MET, as seller, by law. 13. Approvals and Modification of Contract. 13.1 The provisions of this Contract may be modified or altered only by written instrument, by either party, with like process used for adoption of this Contract. Each party warrants to the other that it has secured approval of its Board, lenders and any other party entitled to notices prior to approval of this contract. 10 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER.DISTRICT AND CITY.OF.CIBOLO 14. Other Contracts. 14.1 Nothing in this Contract shall in any way limit or restrict the right of BEXARMET or CITY to enter into other contracts with respect to the development, supply and/or treatment of any other type or kind of water. 15.Mortgage of Contract. 15.1 Nothing in this Contract may be construed as a limitation on any Party hereto to hypothecate its interests nor shall this Contract preclude either Party from obtaining financing necessary for that Party's activities, whether such activity may be related or unrelated to this Contract. Each Party shall timely cooperate with the other in providing any necessary approvals and shall not unreasonably withhold such requests. 16. Assignment. 16.1 This Contract shall not be assignable by either Party without the prior written consent of the other Party which shall not be unreasonably withheld or delayed. 17. Captions 17.1 All titles of the sections of this Contract have been inserted for reference only and shall in no way affect the interpretation of any provisions of this Contract. 18. Termination 18.1 If CITY fails to pay BEXARMET any amounts payable to CRWA under this Contract, when due and payable, BEXARMET may give written notice of such delinquency to CITY, and if amounts due and unpaid, including interest thereon, from the date payment was due at maximum legal rates, are not paid within thirty days (30) after electronic or mail delivery of such notice, then BEXARMET may, at its option, cause counsel to institute suit for collection thereof and utilize such other remedies as may exist at law to collect any amounts due and unpaid, together with interest thereon, at the maximum legal rate. 11 WATER PURCHASE CONTRACT BETWEEN BEXAR-METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO 18.2 In addition to all other remedies, BEXARMET may, at its option, if such amounts are not paid within said thirty day (30) period, and to the extent permitted by law, suspend the delivery of potable water to CITY, and shall not resume delivery of water while CITY remains delinquent. 19. Remedies 19.1 The respective parties hereto shall have available all contract and all remedies at law or in equity, existing at the time of claim or institution of suit. 20. N 20.1 Any notice provided for herein to either BEXARMET or CITY shall be by Certified/RRR,United States mail and/or fax or E-mail, addressed to that party at the address set out below: IF TO BEXARMET to: BEXAR METROPOLITAN WATER DISTRICT Attention: General Manager 2047 W. Malone San Antonio, Texas 78225 Fax: (210) 922-5152 IF TO City to: CITY OF CIBOLO Attention: City Manager P.O. Box 99 Cibolo, Texas 78124 Fax: (210) 658-1687 12 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO Each Party shall have the duty to timely notify the others of any change of street address or electronic address. 21.Severability. 21.1 The provisions of this Contract are severable, and if any provision or part of this Contract or subsequent memoranda or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Contract, or memoranda, and the application of such provision shall not be affected. The parties hereby contractually stipulate that each requests that in the event of dispute, in a court of competent jurisdiction, pursuant to the Texas Declaratory Judgment Act, shall declare the rights and obligations of the Parties and give effect to the public utility and governmental purposes of this Contract, and any provisions not declared invalid. In the event that a portion of this Contract is declared invalid,the court is requested to declare whether remaining portions of this Contract, or modification, are capable of implementation, and so decree. In-the-event.that.a portion-declared invalid shall frustrate the purpose of this Contract, the Court shall declare the entire Contract invalid. 22. Indemnification - 22.1 To the extent allowed by law,BEXARMET and City, each agree to defend, indemnify and hold harmless the other Party and their respective directors, officers, employees, agents and consultants against and from, any and all claims, demands, cause of action, indemnifications, suits, or litigation (including all costs, expenses, and attorney's fees incurred with respect to any such matters) of every kind and character,brought or asserted for injuries or death of any persons, or for damaged property, or for any other damage, fine or penalty whatsoever, arising out of, resulting from, or in connection with the actions of the respective Party in the fulfillment of their duties and obligations contained in this Contract. The covenant to defend, indemnify and hold harmless contained in this Section, includes, without limitation, any injury, death, damage, fine or penalty which in any part arises out of, results from, or occurs in connection with the negligence or fault of the respective Party or their respective directors, officers, employees, agents or consultants. The Parties may perform their respective duties under 13 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO this Section by insurance contracts, contracts for indemnity, or other legal means of providing risk allocation or self insurance. 23. Force Majeure 23.1 In case by reason of Force Majeure, either party hereto shall be rendered unable wholly or in part to carry out is obligations under this Agreement,then if such party shall give notice and full particulars of each Force Majeure in writing to the other party within a reasonable time after occurrence of the event or cause relied on, the obligation of the party giving such notice, so far as it is affected by such Force Majeure shall be suspended during the continuance of the inability then claimed,but for no longer period, and any such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein, shall mean acts of God, strikes,lockouts, or other industrial disturbances, acts of public enemy, war, orders, changes in existing or future laws or regulations of any kind of the courts of Government of the United States of Texas or any civil or military authority, imposition of present or future limitations in laws or regulations of any kind of the courts of Government of the United States of the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides,lightning, earthquake, fires, hurricanes, storms, floods washouts, chemical spills, introduction of hazardous substances, droughts, arrests,restraint of government and people, civil disturbances, explosions,breakage or accidents to machinery,pipelines, wells or canals,partial or entire failure of water supplies and inability on part of BEXARMET to deliver water hereunder, or of City receive water hereunder, on account of any other causes not reasonably within the control of the party claiming such inability. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty, and that the above requirement that only Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts as according to the demands of the opposing party or parties when such course is unfavorable in the judgment of the party having the difficulty. In the event of an extended shortage of water, or the supply of water available to BEXARMET is otherwise diminished over a period time, the supply of water to the CITY shall be reduced or diminished in the sum ration or proportions as the supply to 14 WATER PURCHASE CONTRACT BET-WEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO BEXARMET non-potable consumers is reduced or diminished. Payment under this contract shall be reduced in the same proportion. 24.Venue 24.1 In the event that any legal proceeding is brought to enforce this Contract, or any provisions hereof,the same may be brought in the country of the headquarters of either party. 25. Entire Water Purchase Contract. 25.1 This Contract, consisting of 16 pages, constitutes the entire understanding between the Parties at the date of its approval. 26.Applicable Law. 26.1 This Contrast shall be governed by and construed in accordance with the laws of Texas, except for any applicable federal laws, rules and regulations. 27. Counterparts. 27.1 This Contract shall be executed in four (4) counterparts, each of which shall be deemed an original. BEXARMET, CITY, and CRWA shall respectively receive an original, with the fourth to be filed with the TCEQ. 28. Attachments. 28.1 Exhibit A referenced below is integral to this Contract, and defines the point of delivery and method and physical means of metering for the nine (9) year term of this contract. 29. Recording. 29.1 A copy of this Medium-Term Water Purchase Agreement shall be filed with TCEQ. 15 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF-CIBOLO IN WITNESS WHEREFORE,the Parties hereto, action upon lawful public agenda notice and meeting of the respective Boards duly constituted, under the authority of the respective governing bodies, have caused this Contract to be duly executed in multiple counterparts, each of which shall constitute an original. This Contract is effective on the G day of -'/ , zoo S, and delivery shall commence on or after s I G , wa% and shall terminate on the 31st day of Dca.m cr , BEXAR METROPOLITAN WATER DISTRICT e Director of Finance 2047 West Malone s wino ow nsw San Antonio,TX 78225 BEITlA6"D CITY OF CIBOLO BY Ci y Manager P.O.Box 99 • Cibolo, Texas 78124 16 WATER PURCHASE CONTRACT BETWEEN BEXAR METROPOLITAN WATER DISTRICT AND CITY OF CIBOLO ATTACHMENTS: Exhibit A- "Point of Delivery" 17 MATCH LINE STA 118E400 MATCH LINE ETA 171+00 — -r,---- I j ..� t • I , a „�1 a Q 1 f I 1aI A �i pt-� II a �l w 1 1 a .° i a re mr.31i i till I 1:11 i IN gal a 1 I I i II,a.a.I i i i `'J I I 1m a % N I I 41 I I S ii I 1 te zi A ). n.) 1 IH ' -1- I /A g I > '-` o I v v Z !-4• 61 G I ; , ____�______ v 11.1.3 I. 1/1 °I c 1 th 1 --..... 1 i..... 3 •C Old I. 11-1 '°"' ' III i `G ' aCM.wI , /u•.r.no. 1 .. 1 uu..w 1II I , 1 1 a ' _5'I-I? 0.1.110 3 :o 3 512I P ' 1431121 ° @ p a i Pr' .IN xi `0pp o I5® a1 �i p 1 N i g ne D f031... v B0 i" F 114 ' ' 1 l' i c i tti t 511i 81Vi i i 4 Mgr 3 0 , i �hi WI 3 MATkI L 4> 't18►BT• o 0 i II" MATCH LINE STA 200+00 !S "3 CANYON REGIONAL WATER AUTHORITY -var.", Bryn crrY 7.'....) — R LAKE DUNIAP WTP EXPANSION ENGMETU NG, LTD. .:=_e••„• YID.CITIES TRANSMISSION SYSTEM =Nom=o.a uiw® �R:'!fl t 11h 1�^I!?�h'„:1F�It IW PHASE II IMPROVEMENTS MEW. �” C: STA: 171+00 TO STA: 200+00 •„/�'r .,,,,m ���9'i'^w ,u. ®®®... • • r— — --1 11 J.P , k F in '..---4 Pilio _op. MATCH LINE STA 212+00 " `� ----,_t -- D a a q 14 q : , a a x —) i L___ 1, n m.o. \I \\ '� ;L< HAECKERNLLE ROAD(G.".JT7) lei / —� .I \\ o .T..- 0 I�n ,,'''l I 9—'14——1 4 i hi lig 1 G I N I+ R 1'I � G $1 F I I �1 1 'T+r�.-.�o i ► ► z � I 1 L Z v I I 1 A� � 1 0 i I ' �r1J 6\ ril 071�, — �:111 1 ; cr 1t ,,, . 9-) A ' I a I .o i I �� o I Av tv I A 4 A 1 tip f �i p I w _ j I i ,.. -a O r 1 4 - O• Am A3•2 tI'iI = 1 g _ 1' I tm r 1• �' I I '' d b 1 I , I II CD I q 1. A , II ,---- ,� I 3j I 1 I—' e a cea �o1 4 II I I j ii!�'si�i; P I I I YI 1 i CPs) F' laili iya9 n �o Ill •a IA iogs'�5 D I' x I4 I MATCH LINE STA 212+00 1 C) F N _ � 1 I --J- •— MATCH LINE STA 228+00 s?f %RIvER •47CANYON REGIONAL WATER AUTHORITY CITY a MOW. rf F, •Iwila Mt WS .�... LAKE DUNLAP WTP • EXPANSION 1,ENOINEMIDIC. LTD, gil � -ittf.".Iblifi '— YO3.0T0EB TMBSYI8810H 8V$TEY .\ NIM 4an. {1-_ It 18 PHASE II IMPROVEMENTS m --.. - STA: 200+02 TO STA: 228+00 •-Ni ,�.•„�„ 4�� "'�°^—"" ,--w.m ... r,• a. .. Exhibit A- "Point of Delivery" k , ,� I • -C; ,r0 I IG„ cls��1, VIII; /n ''� I 24' WATER MAIN I T _ -�ti I��� I've- a ° '- RW�,. v«,i.0 r..n. --. 1 }x(78 — - - - - v art ST,VTIVTILIO • IMTALL• ..r. �� - �� __ a.+ MAIM ISM _ �a •r�raQ __— 3 E Iiiiiiik n.• ii u w.at _ �- s.. tl � G am' v ...�.v rr ! 4 ` Ll��� \v UMW av �a L 0 VIVA,--__. ter. TM ST.ILTO ,mac V! .TVLLT run•..® 05111111. I IQ Q' I"=•`- � '+ ` „F per, `pO X at'{'.,g di } S o� — _0°�;5�� 830' ! II 1. 9: rta aaunR. FY 7°�giE t. l1 i ,,F.,z..,..\,1:I HT VI AS NO % . , Ar- 1-,-kt11' ,L, \ , \\., , ...,,t,4,.,A , lia , 0 8:i'A +� 4.-!,00 3Ig0 y —IO i i i i- MO RECORD DRAWING ' :.W;..�a a.a To. fay..., oma.aaa®oma aTIVVRATED IV,*TM ER enmmPriam COMMVW u r TGI.a.TPLI TT VTIV CT WOK Ans... T aiy va-- eri �` s.0 15 RIVER am Dana...LTD. a 41 EXHIBIT"B" PARTIAL SHORT-TERM ASSIGNMENT OF INTEREST IN WATER ALLOCATION AGREEMENT Short-Term Partial Assignment of Interest This Short-Term Partial Assignment of Interest("Short-Term Partial Assignment") is made and entered into by and between the City of San Antonio, Texas, acting by and through its San Antonio Water System Board of Trustees ("System")on behalf of itself and its District Special Project, as successor in interest to the Bexar Metropolitan Water District("BexarMet"); the Springs Hill Water Supply Corporation ("SHWSC");the City of Cibolo, Texas ("Cibolo") and the Canyon Regional Water Authority("CRWA"); and approved by the Guadalupe-Blanco River Authority("GBRA"). RECITALS WHEREAS, BexarMet was a statutory retail public utility providing water service to residential and commercial customers in Bexar, Medina, Comal and Atascosa Counties, Texas; and WHEREAS, CRWA is a statutory district dedicated to the acquisition and development of potable water supplies on a wholesale basis to various entities; and WHEREAS, CRWA,BexarMet, Cibolo, and SHWSC were parties to that one certain Water Purchase Contract Among Guadalupe-Blanco River Authority and Canyon Regional Water Authority and City of Cibolo, City of Marion, East Central Water Supply Corporation, Green Valley Special Utility District, Springs Hill Water Supply Corporation, and Bexar Metropolitan Water District entered into as of the 18th day of October, 1998, as amended ("the GBRA Water Purchase Contract"),whereby GBRA agreed to sell untreated water to CRWA for treatment and subsequent resale to the other parties on the terms and conditions described _ therein; and WHEREAS,the GBRA Water Purchase Contract establishes and has different conditions for a Long-Term Annual Commitment encompassing the contract term and a Short-Term Annual Commitment with a Short-Term Termination Date, as amended, of December 31, 2023; and WHEREAS, CRWA, BexarMet and Cibolo were parties to that one certain Regional Tax-Exempt Water Supply Contract dated August 1, 1998, between Canyon Regional Water Authority and Green Valley Special Utility District,Bexar Metropolitan Water District, City of Cibolo, Texas; and City of Marion, Texas, as amended ("the Regional Tax-Exempt Water Supply Contract") for the purchase by each participating party of an allocation of treated potable water from CRWA derived from the water sold to CRWA under the GBRA Water Purchase Contract; and WHEREAS,the 82nd Regular Texas Legislature enacted Senate Bill 341 whereby certain rights, duties, and obligations of BexarMet, including the GBRA Water Purchase Contract and the Regional Tax-Exempt Water Supply Contract,were transferred to and assumed by the System, and BexarMet was dissolved; and 1 WHEREAS,pursuant to Senate Bill 341 and Ordinance No. 2011-10-20-0845 of the City of San Antonio,Texas,the System is temporarily operating the former BexarMet as a special project under the System's existing senior lien revenue bond ordinances and other applicable law; and WHEREAS, CRWA and SHWSC were parties to that one certain Regional Taxable Water Supply Contract dated August 1, 1998, between Canyon Regional Water Authority and Crystal Clear Water Supply Corporation,East Central Water Supply Corporation, and Springs Hill Water Supply Corporation, as amended ("the Regional Taxable Water Supply Contract") for the purchase by each participating party of an allocation of treated potable water from CRWA derived from the water sold to CRWA under the GBRA Water Purchase Contract; and WHEREAS,pursuant to both the GBRA Water Purchase Contract and the Regional Tax- Exempt Water Supply Contract,BexarMet was allocated the right and obligation to purchase 4,000 acre-feet of treated potable water annually from CRWA until December 31, 2023 ("the BexarMet Short-Term Annual Quantity")for use exclusively within the then-existing service area of BexarMet; and WHEREAS,pursuant to both the GBRA Water Purchase Contract and the Regional Tax- Exempt Water Supply Contract, Cibolo was allocated the right to purchase 1,350 acre-feet of treated potable water annually from CRWA until December 31, 2039 ("the Cibolo Long-Term Annual Quantity")for use within the then-existing service area of Cibolo; and WHEREAS,pursuant to the GBRA Water Purchase Contract, SHWSC was allocated the right and obligation to purchase 1,925 acre-feet of treated potable water annually from CRWA until December 31, 2039 ("the SHWSC Long-Term Annual Quantity") for use exclusively within the then-existing service area of SHWSC; and WHEREAS,pursuant to the Regional Taxable Water Supply Contract, SHWSC was allocated the right and obligation to purchase 1,950 acre-feet of treated potable water annually from CRWA until December 31, 2039 ("the Revised SHWSC Long-Term Annual Quantity") for use exclusively within the then-existing service area of SHWSC; and WHEREAS,pursuant to the Regional Tax-Exempt Water Supply Contract and Regional Taxable Water Supply Contract, CRWA has constructed infrastructure known as the Mid-Cities Pipeline to transport treated potable water from CRWA's treatment facility on Lake Dunlap to various delivery points as part of the Mid-Cities Project financed by the$27,910,000 Canyon Regional Water Authority Tax-Exempt Contract Revenue Refunding Bonds (Mid-Cities Project) Series 2006 with Delivery Date of June 6, 2006; and WHEREAS, Cibolo has a short-term need for Pipeline Capacity to transport 500 acre-feet of water per annum in the Mid-Cities Pipeline (Mid-Cities Pipeline Capacity), but has no need for additional treated potable water to transport in the Mid-Cities Pipeline; and 2 WHEREAS, SHWSC has a short-term need for an additional 500 acre-feet of treated potable water annually for use within the service area of SHWSC,but it has no need for the Mid- Cities Pipeline Capacity to transport such additional water; and WHEREAS, the System, as successor to BexarMet,has 500 acre-feet of short-term excess water capacity annually within the BexarMet Short-Term Annual Quantity'treated potable water allocation from CRWA and associated Mid-Cities Pipeline Capacity under the GBRA Water Purchase Contract and the Regional Tax-Exempt Water Supply Contract; and WHEREAS, SHWSC desires that the System assign 500 acre-feet annually of the BexarMet Short-Term Annual Quantity of treated potable water allocation from CRWA under the GBRA Water Purchase Contract and the Regional Tax-Exempt Water Supply Contract("the Assigned Water Allocation")to SHWSC for a period of eight(8)years without any associated Mid-Cities Pipeline Capacity to transport the water; and WHEREAS, Cibolo desires that the System assign to Cibolo a portion of Mid-Cities Pipeline Capacity sufficient to transport 500 acre-feet of water per annum at a delivery rate not to exceed four hundred forty six thousand three hundred and seventy one (446,371) gallons per day from the point of origin of the Mid-Cities Pipeline at Lake Dunlap to the Cibolo Points of Delivery as depicted on Exhibit B ("the Assigned Pipeline Capacity Allocation")without any associated water; and WHEREAS,the System desires to make the Assigned Water Allocation and the Assigned Pipeline Capacity Allocation subject to mutual performance by both SHWSC and Cibolo; and WHEREAS, CRWA desires to approve and effectuate this Short-Term Partial Assignment; and WHEREAS, GBRA desires to approve this Short-Term Partial Assignment; NOW,THEREFORE, in consideration of the foregoing and other valuable consideration,the receipt and sufficiency of which are hereby acknowledged, and the covenants and agreements hereinafter contained,the System, SHWSC, Cibolo and CRWA hereby mutually agree,with the approval of GBRA, as follows: 1. Except as otherwise provided herein,the System hereby assigns to SHWSC for the term of this Agreement the System's rights and obligations in connection with the Assigned Water Allocation under the GBRA Water Purchase Contract. The System is not assigning to SHWSC the System's rights and obligations in connection with the Mid-Cities Pipeline Capacity under the GBRA Water Purchase Contract or the Regional Tax-Exempt Water Supply Contract. 2. Except as otherwise provided herein, SHWSC hereby accepts the assignment of the System's rights and obligations in connection with the Assigned Water Allocation for the term of this Agreement to be used within the service area of SHWSC. All parties to this Agreement agree that SHWSC can use the Assigned Water Allocation within the service area of 3 SHWSC, and that the service area of SHWSC is considered in the"GBRA Area" as defined under the GBRA Water Purchase Contract. 3. SHWSC's obligations hereunder shall include,without limitation, the obligation under the GBRA Water Purchase Contract to directly make all payments due and owing to CRWA and GBRA in connection with the Assigned Water Allocation in this Short-Term Partial Assignment. CRWA agrees that it will not charge SHWSC the"Out-of-District Rate," as such term is defined under the GBRA Water Purchase Contract, for the Assigned Water Allocation so long as such water is used in SHWSC's service area. SHWSC's obligations hereunder shall not include the obligation to directly make all payments due and owing to CRWA and GBRA in connection with the Assigned Pipeline Capacity Allocation. 4. Except as otherwise provided herein,the System hereby assigns to Cibolo for the term of this Agreement the System's rights and obligations in connection with the Assigned Pipeline Capacity Allocation. 5. Except as otherwise provided herein, Cibolo accepts the assignment of the System's rights and obligations in connection with the Assigned Pipeline Capacity Allocation for the term of this Agreement. 6. Cibolo's obligations hereunder shall include,without limitation,the obligation to directly make all payments due and owing to CRWA and GBRA in connection with the Assigned Pipeline Capacity Allocation. 7. CRWA hereby approves this Short-Term Partial Assignment and agrees to take all action necessary to effectuate this Short-Term Partial Assignment in accordance with the terms of the GBRA Water Purchase Contract and the Regional Tax-Exempt Water Supply Contract. 8. CRWA's obligations hereunder shall include, without limitation: a. the obligation to deliver the Assigned Water Allocation to SHWSC at the Points of Delivery identified in Exhibit A; b. the obligation to bill SHWSC directly, on a monthly basis, for all payments due and owing to CRWA and GBRA in connection with the Assigned Water Allocation under this Short-Term Partial Assignment, in accordance with the GBRA Water Purchase Contract; c. the obligation to make the Assigned Pipeline Capacity Allocation to Cibolo as described herein; d. the obligation to bill Cibolo directly, on a monthly basis, for all payments due and owing to CRWA and GBRA in connection with the Assigned Pipeline Capacity Allocation. 9. The System agrees that, subject to the prior assigned obligations of SHWSC and Cibolo hereunder to make all payments due and owing to CRWA and GBRA in connection with the 4 Assigned Water Allocation and the Assigned Pipeline Capacity Allocation in place of the System,the System will continue to maintain its obligation to CRWA regarding CRWA bond payments for water,treatment and distribution facilities associated with the Assigned Water Allocation and the Assigned Pipeline Capacity Allocation in the event of default by SHWSC and Cibolo. 10. The right during the term of this Short-Term Partial Assignment to receive from GBRA and accept any notice of extension of the Short-Term Availability Date or to convert the Short- Term Annual Quantity to a long-term commitment by GBRA in connection with the Partial Short-Term Allocation is specifically retained by the System and not assigned hereunder. 11. Each party hereto agrees to provide the other party any additional documentation as may be reasonably necessary to evidence and effectuate the terms of this Short-Term Partial Assignment, including notice to the Texas Commission on Environmental Quality. 12. This Short-Term Partial Assignment shall not be assignable by any Party without the prior written consent of all other Parties. 13. If either SHWSC or Cibolo fails to pay CRWA any amounts payable to CRWA, GBRA or any other entity hereunder when due and payable, CRWA shall within three (3) days give written notice of such delinquency to SHWSC, Cibolo and the System. Subject to Cibolo's right to cure under this Section, if all amounts due and unpaid are not paid within thirty(30) days after electronic or mail delivery of such notice,then this Short-Term Partial Assignment shall immediately terminate and all rights and obligations in connection with both the Assigned Water Allocation and Assigned Pipeline Capacity Allocation shall simultaneously revert to the System as if this Short-Term Partial Assignment had not been executed, and the System shall be responsible for any arrearages unpaid. It is the specific agreement of the parties that uncured default by either SHWSC or Cibolo shall constitute default by both and shall entitle the System to immediate recovery of both the Assigned Water Allocation and the Assigned Pipeline Capacity Allocation. In the event that SHWSC fails to pay CRWA all • amounts due to CRWA for the Assigned Water Allocation within thirty(30) days after electronic or mail delivery of past due notice; Cibolo shall be notified by electronic or mail delivery of SHWSC's failure to pay and shall have ten days after such notice to pay the amount owed by SHWSC and upon such payment by Cibolo SHWSC's rights under this Assigned Water Allocation shall terminate and Cibolo shall assume all rights to SHWSC's Assigned Water Allocation and retain all rights to Assigned Pipeline Capacity Allocation; provided further,that Cibolo continues to timely make payments for such to CRWA, GBRA or any other entity hereunder. 14. This Short-Term Partial Assignment shall terminate on December 31,2023. 15. This Short-Term Partial Assignment is contingent upon execution by the System and the City of Cibolo, Texas, and approval by CRWA, of that one certain Mutual Termination of Water Purchase Contract Between Bexar Metropolitan Water District and City of Cibolo Approved by Canyon Regional Water Authority effective December 31,2015. 5 16.The Effective Date of this Short-Term Partial Assignment is January 1, 2016. 17. To facilitate execution,this Short-Term Partial Assignment may be executed in multiple counterparts, each of which will constitute an original, and all of which will constitute a single instrument. 18. Written notices required under this Short-Term Partial Assignment will be deemed effective on the date sent if forwarded to a Party by hand-delivery to the address indicated below with a copy deposited with the U.S.Postal Service,postage prepaid,to the address indicated below. Any Party may notify the other party of changes in contact information by written notice given in accordance with this Agreement: City of Cibolo Attn: City Manager 200 South Main P. O.Box 826 Cibolo, TX 78108 Springs Hill WSC Attn: General Manager 5510 S. St. Hwy 123 -Bypass Seguin,TX 78155 San Antonio Water System Attn:President/CEO 2800 U.S. Hwy.281 North San Antonio, TX 78212 Canyon Regional Water Authority Attn: General Manager 850 Lakeside Pass New Braunfels,TX 78130-8233 Guadalupe-Blanco River Authority Attn: General Manager 933 East Court Street Seguin, TX 78155 IN WITNESS WHEREOF, this Short-Term Partial Assignment is executed to be effective as of the Effective Date. 6 City of San Antonio,Texas,Acting by and Through its San Antonio Water System Board of Trustees ("System") on Behalf of Itself and its District Special Project as Successor in Interest to the Bexar Metropolitan Water District("BexarMet") By: Robert R.Puente President/Chief Executive Officer POSTED on ,20 , and APPROVED on ,20_,pursuant to Agenda Item_by the San Antonio Water System. Springs Hill Water Supply Corporation By: James Martin President, Board of Directors POSTED on , 20 , and APPROVED on , 20 ,pursuant to Agenda Item_by the Springs Hill Water Supply Corporation. City of Cibolo By: Robert T.Herrera City Manager POSTED on ,20_, and APPROVED on , 20_,pursuant to Agenda Item_by the City of Cibolo. Canyon Regional Water Authority By: David Davenport General Manager POSTED on , 20 , and APPROVED on , 20_,pursuant to Agenda Item_by the Canyon Regional Water Authority. Upon motion made by Trustee second by Trustee ,the Short-Term Partial Assignment of Interest was approved by the Canyon Regional Water Authority by a vote of_in favor, opposed,_abstaining, and absent. 7 APPROVED: Guadalupe-Blanco River Authority By: William E. West,Jr. General Manager POSTED on ,20_, and APPROVED on , 20 ,pursuant to Agenda Item_by the Guadalupe-Blanco River Authority. 8 Exhibit A Point of Delivery from Canyon Regional Water Authority to Springs Hill Water Supply Corporation Canyon Regional Water Authority—Lake Dunlap Water Supply Water Treatment Plant and Delivery Point ■ ■ _ a- *Y4P. ,,,,,.. . / ‘,„ t '. ' �r ' , " :. r DELIVERY POINT I2120Souh H v40 ,fyv r ` • ! [ /.tv. tiN. a fir'{ , .y `, , skv {�` 6 ,,,-4,.` y ,\ • iiii.o. Y: 'yef - kt:‘,,,, x. � r • 's ; WATER TR EATM ENT PLANT .$ / •:* { • SCALE I Mix R 9 Exhibit B Points of Delivery from Canyon Regional Water Authority Mid=Cities Pipeline to City of Cibolo • F.M.78 F.M.78 \ Cibolo Delivery Point . / Wagner Road F.M.78 Booster Station Cibolo Transmission Mains Haeckerville Road / • • Arizpe Road Cibolo Delivery Point Haeckerville Road CRWA Mid-Cities •: Metering Station Pipeline j Lower Seguin Road Google earth Cibolo Water Delivery Points 10