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HomeMy WebLinkAboutRes 2022-12-1329 Regionalization Agreement with North Texas Municipal Water DistrictCITY OF ANNA, TEXAS RESOLUTION NO. 20 A — 3 e? cj A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A REGIUONALIZATION AGREEMENT BY AND BETWEEN THE CITY OIF ANNA, TEXAS, AND THE NORTH TEXAS MUNICIPAL WATER DISTRICT, IN A FORM APPROVED BY THE CITY ATTORNEY, FOR THE DEVELOPMENT OF A REGIONAL WASTEWATER TREATMENT FACILITY KNOWN AS THE HURRICANE CREEK REGIONAL WASTEWATER TREATMENT PLANT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Anna Capital Improvement Plan includes the design and construction of a regional wastewater treatment facility located in the southwest portion of the Ciity's Extraterritorial Jurisdiction; and, WHEREAS, the proposed facility will provide wastewater treatment for the west side of Anna, east side of Weston, and West side of Van Alstyne; and, WHEREAS, the North Texas Municipal Water District and the City of Anna have reached an agreement on the terms and conditions necessary for the North Texas Municipal Water District to remove its current challenge to the discharge permit for the project; and, WHEREAS, the City Attomey shall review and approve the final draft of the regionalization agreement prior to execution by the City Manager; and, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Authorization of Agreement and Funding. That the City Council of the City of Anna hereby authorizes the City Manager to execute a regionalization agreement with North Texas Municipal Water District related to the Hurricane Creek Regional Wastewater Treatment Facility in a form approved by the City Attorney. PASSED AND APPROVED by the. City Council of the City of Anna, Texas on this 15tk day of December 2022. ATTEST: APPROVED: (/x(7rAi City Secretary, Carrie Land ne a or, Nate Pike 1913 REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) This Regionalization Agreement is entered into by North Texas Municipal Water District (the "District") and the City of Anna (the "City") (collectively, the "Parties" and individually "Party") to provide the terms and conditions by which the City will agree to provisions in its new Texas Pollutant Discharge Elimination System Permit No. WQ0016043001 for the Hurricane Creek Regional Wastewater Treatment Plant ("TPDES Permit") and to facilitate incorporation of the City's service area to the District's regional wastewater system, if feasible, in exchange for the District withdrawing its protest of the TPDES Permit, as set forth below. Recitals 1. The City has filed an application with the Texas Commission on Environmental Quality ("TCEQ") for a TPDES permit that authorizes the discharge of treated domestic wastewater at an annual average flow not to exceed 16 million gallons per day ("MGD") from a facility to be constructed by the City to serve the City's extraterritorial jurisdiction (portions of which may be annexed by the City into its corporate limits from time to time) to the west of U.S. Highway 75 in Collin County, Texas along with the City of Van Alstyne and a portion of the City of Weston (the "Project"). 2. The District is a regional wholesale wastewater provider that owns and operates a regional wastewater system throughout portions of Collin, Dallas, Kaufman, and Rockwall Counties (the "Regional System"). 3. The District is designated by TCEQ as the regional entity to collect, transport, treat, and discharge wastewater within its designated regional area, which includes the watershed area of the East Fork of the Trinity River that lies in Collin, Dallas, Kaufman, and Rockwall Counties, pursuant to 30 Texas Administrative Code § 351.32 (the "Regional Area"). 4. As the designated regional wholesale wastewater provider, the District contemplates extending its existing Regional System within its Regional Area in as such need arises and as such extensions of the Regional System become feasible. 5. The property and proposed discharge pursuant to the TPDES Permit are located within the Regional Area in Collin County. 6. The District has protested the TCEQ's proposed issuance of a TPDES Permit for the Project. NOW, THEREFORE, for and in consideration of the mutual promises and benefits as set forth in detail below, the Parties agree as follows: Agreement REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page I A. Incorporation of Recital Definitions. The terms defined in the above Recitals are incorporated into this Agreement for all purposes. B. Construction of First Phase. The District agrees and has no objection to the City's construction of the first phase of the Project up to 4 MGD ("Phase I"). References to Phase II and Phase III herein are references to permitted phases of the Project as defined in the TPDES Permit. C. Future Phases and Feasibility of Regional Options. Prior to permitting, bidding, and commencing construction on any and all phases beyond Phase I, the City agrees that it shall cooperate with the District to review the feasibility of service from the Regional System. Such feasibility review shall be prepared by the District in consultation with the City and shall consider the following factors: environmental impacts, maintenance and operational costs, construction costs, funding sources, and current and future demands of the City's service area. The feasibility review shall consider the following options: 1. Construction of a trunk sewer main from existing District Regional Facilities to the Project to accept flows greater than the 4 MGD permitted for Phase I. 2. Decommissioning of the Project if the District is able to provide wastewater treatment and disposal for the service area served by Phase I. 3. The City's sale or transfer of the Project to the District 4. Construction of Phase II of the Project (additional 4MGD) with the understanding that the City and the District will continue to work together on all available sewer solutions prior to commencement of Phase III. 5. Other options which may have not yet become apparent to the Parties. The District shall conduct the feasibility review in a time and manner that will not unreasonably delay or disrupt the City's ability to extend wastewater treatment and disposal service in its service area. If the feasibility review identifies an option available to bring the City's service area into the Regional System, the City agrees to work with the District to implement such option rather than pursue an expansion of the Project beyond Phase I. It shall not be considered feasible for the District to serve the area served and/or to be served by the City under the TPDES Permit if service by the District would unreasonably disrupt or delay any new private or public development in said area. D. Permit Language_ The City agrees to and will request from TCEQ the addition of the following language in the section entitled "Other Requirements" in the TPDES Permit: This permit is granted subject to the policy of the Commission to encourage the development of area -wide waste collection, treatment, and disposal systems, as addressed in 30 Texas Administrative Code, Chapter 351, Subchapter C. The facilities authorized by this permit are proposed to be located within the designated regional area of the East Fork Trinity River served by the North Texas Municipal Water District (NTMWD). Permittee has entered into that certain Regionalization Agreement with NTMWD effective which provides that prior to commencement of construction of future phases of the facility beyond the first REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page 2 phase, Permittee shall work with NTMWD to determine if service is available for such phase from the NTMWD regional system. The Permittee shall include in all future applications documentation of consultation and coordination with NTMWD regarding feasibility review of servicefrom the NTMWD regional system for future unbuilt phases. Based on such feasibility review, this permit may be modified or amended to accommodate integration into the NTMWD regional system. E. Return Flows. As additional consideration for the District's withdrawal of its protest of the TPDES Permit as provided in Section F below, the City agrees that it shall make no claim to or seek authorization to reuse return flows (treated effluent) from the Project once discharged in accordance with the TPDES permit. The City agrees that the District may divert and reuse such return flows generated by the Project in accordance with applicable law. F. Agreement to Withdraw Protest. The District agrees to withdraw its protest of the TPDES Permit upon completion of all of the following conditions: (1) The City's execution of this Agreement; and (2) Written confirmation, including electronic transmission, from the TCEQ Executive Director staff of agreement to include of the language at Section D above into the TPDES Permit. G. Applicable Law and Venue. This Agreement shall be construed under the laws of the State of Texas and all obligations of the Parties hereunder are performable in Collin County, Texas. Venue for any action arising under this Agreement shall be in Collin County, Texas. H. Entire Agreement. This Agreement contains the complete and entire agreement between the Parties respecting the matters addressed' herein and supersedes any prior negotiations, agreements, representations and understandings, oral or written, if any, between the Parties respecting such matters. This Agreement may not be modified, discharged, or changed in any respect whatsoever, except by a further agreement in writing duly executed by the Parties hereto. However, any consent, waiver, approval, or authorization shall be effective if signed by the Party granting or making such consent, waiver, approval, or authorization. I. Severability. If any provision of this Agreement is held to be invalid for any reason by a court or agency of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and this Agreement shall be construed as if such invalid provision had never been contained herein, and the remaining enforceable provisions of this Agreement are expressly deemed severable for this purpose. I Amendments. Any amendment to this Agreement must be in writing and shall be effective only if signed by the authorized representatives of each Party to this Agreement. K. Attorney's Fees. Attorney's fees and related expenses are recoverable if either Party seeks to enforce this agreement and is successful in its enforcement. REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page 3 L. Future Permit Applications. The District reserves the right to comment on and protest any future applications regarding the TPDES Permit not in conformance with this Regionalization Agreement. M. Assignment. This Agreement is binding upon and shall inure to the benefit of the Parties, their heirs, successors, and assigns. This Agreement shall be binding upon and inure to the benefit of all subsequent persons and entities of every description to which the final TPDES Permit may be transferred. If the TPDES Permit is transferred to another Party, this Agreement may be assigned by the City to that Party, and upon such assignment all rights and obligations under this Agreement shall pass to that Party, and the City shall be relieved of any obligations hereunder. N. Expiration. This Agreement shall terminate and be of no further force or effect if the TPDES Permit is not issued to the City within two years of the Effective Date. O. Notice. Any notice required or permitted to be delivered hereunder shall be deemed received three (3) business days thereafter sent by United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the Party at the address set forth below or on the day actually received as sent by courier or otherwise hand delivered: If intended for CITY, to: City of Anna Attn: City Manager 120 W. 7" Street Anna, Texas 75409 Wolfe, Tidwell & McCoy, LLP Attn: Clark McCoy 2591 Dallas Parkway, Suite 300 Frisco, Texas 75034 If intended for DISTRICT, to: North Texas Municipal Water District Attn: Cesar Baptista Deputy Director of Engineering, Capital Improvement Projects 501 East Brown Street Wylie Texas 75098 North Texas Municipal Water District Attn: Jerry Allen Permitting Manager 501 East Brown Street Wylie Texas 75098 REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page 4 P. Effective Date. The effective date of this Regionalization Agreement shall be the last date of execution by either Party as shown below. Uity Manager City of Anna 002 Date: REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page 5 r Je r P. Covington Executive Director North Texas Municipal Water District t%za/LOTj3 Date: REGIONALIZATION AGREEMENT (City of Anna —Hurricane Creek) Page 6