HomeMy WebLinkAboutC2012-041 - 2/28/2012 - ApprovedCITY OF CORPUS CHRISTI — LAVACA NAVIDAD RIVER AUTHORITY
COLORADO RIVER WATER PROJECT
MEMORANDUM OF UNDERSTANDING ( "MOU ")
1. PARTIES: City of Corpus Christi ( "City ") and Lavaca Navidad River Authority ( "LNRA ")
2. PROJECT: Develop alternative proposals for the interim We of at least 10,000 AF and up to
35,000 AF of Colorado River Water by existing or potential customers of the City and LNRA,
which may include the construction of a water supply pipeline and related facilities (Mary
Rhodes Phase II Pipeline Project) from a diversion site on the Colorado River near Bay City,
Texas to a point on LNRA property where it will connect to the LNRA facilities that service the
City's Mary Rhodes pipeline.
3. MOU INTENT: This MOU is intended as a non - binding expression of the general terms,
conditions, and principles upon which a detailed agreement ( "Project Agreement ") for the lease
of water rights or sale of raw water on a term basis, including the construction and operation of
necessary infrastructure ( "Interim Project "), if the Parties elect to proceed with joint
implementation of the City's Mary Rhodes Phase II Pipeline Project. This MOU will also guide
the development of the Project until the Project Agreement is signed or until this MOU is
terminated.
4. PURPOSE / SCOPE: During the term of this MOU, the Parties will:
a. Determine the feasibility of providing untreated Colorado River water to wholesale
and industrial customers, such as Formosa Plastics, within the Colorado- Lavaca Coastal,
Navidad River, Lavaca River, and Lavaca - Guadalupe Coastal basins on a term basis not
to exceed 40 years.
b. Develop proposed agreements, including a pricing structures, for raw water sales to
wholesale and industrial customers, such as Formosa Plastics. The pricing structures
should reflect indirect costs for general overhead, direct capital and operating costs for
operation, maintenance, renewal, replacement, and expansion of the Interim Project.
c. Address the rights and responsibilities of the Parties related to the design, permitting,
construction, financing, phasing, ownership, use, payment, expansion, operation,
maintenance, renewal, and replacement of the City's Mary Rhodes Phase 11 Pipeline
Project.
d. Develop various water supply scenarios that would include a combination of water
management strategies that would satisfy future demands needs and weigh them against
metrics established by a team consisting of not less than three (3) representatives of the
City and three (3) representatives of LNRA.
WOM-11
5. INTERIM COST SHARING: Prior to the effective date of the Project Agreement, costs
incurred for the Project will be shared by the Parties on a 50 150 basis or in such other proportion
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Final MOU by LNRA Colorado River Water Project
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as may be agreed. It is anticipated the initial costs that will be jointly incurred during the period
this MOU is in effect will not exceed $100,000.
6. TERMINATION / TERM: The Parties will use best efforts to complete the tasks under item
4 within 60 days of the effective date of this MOU. This MOU may be terminated for
convenience by either Party in its sole discretion upon 60 days written notice and payment of any
outstanding amounts due from the terminating Party. During the term of this MOU, the City
agrees that if it conducts any independent discussions of the sale or lease of the Colorado River
Water with a party other than LNRA, the City will coordinate with LNRA at the outset of any
such independent discussions.
7. WATER RIGHTS: Nothing in this MOU or in the Project Agreement will modify, share,
transfer, or otherwise affect the pre - existing or future water rights of either Party or the relative
water allocation priorities of the Parties during water shortages, which rights are and will remain
independent of this MOU.
AGREED this day of(Gc,A� , 2012
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P *rick Brzoz s . E_ Ronald L. Olson
General Mana r City Manager
Lavaca- Navidad Ri r Authority City of Corpus Christi
P. O. Box 429 P. O. Box 9277
Edna, Texas 77957 Corpus Christi, Texas 78469 -9227
BY - 2 1 Z,� 1 )2-
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SECRETAOW
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Appmod as to 1orm:._____—
i_isa Aguilar
Assistant City Attorney
For City Attorney
C47VSECREVh °-
Final MOU by LNRA Colorado River Water Project